Houston space co. adds new adviser, startup named SXSW alternate, and more innovation news

short stories

Here's your latest roundup of innovation news you may have missed. Photo via Getty Images

Houston startup news is in full swing this year, and there might be some headlines you may have missed.

In this roundup of short stories within Houston startups and tech, Venus Aerospace makes an impressive appointment, a sportstech startup is headed to SXSW, and more.

Houston space startup names former NASA administrator to board

Jim Bridenstine, formerly NASA's administrator, has joined Venus Aerospace. Photo courtesy of Venus

A Houston-based company that's creating reusable hypersonic drones and spaceplanes has named its latest adviser. Jim Bridenstine, who served as the 13th administrator for NASA, is Venus Aerospace's latest addition to the team.

"I'm excited to be on the board of advisors for Venus Aerospace," Bridenstine says in a statement. "We have been plowing through the atmosphere at Mach 0.7 for over 70 years. This not only wastes time, but it also costs too much money and places greenhouse gasses in the atmosphere. It's time to disrupt the transportation business and Venus Aerospace has the talent to do it."

"Now we're going above the atmosphere, at hypersonic speeds, to get from one side of the planet to the other in a much cleaner way," he continues.

Founded in California in 2020 and then relocated to the Houston Spaceport, Venus is scaling after raising a $20M series A last spring.

"Jim brings a very unique perspective and capabilities from aviator to congressman to administrator," says Andrew Duggleby, CTO and co-founder, in the release. "The thing that gets me most excited is his ability to jump in, understand the context, and know exactly where he can make an immediate difference."

Houston startup snags spot as SXSW Pitch alternate

This Houston tech company has been named an alternate for the 2023 SXSW pitch. Photo via SXSW

SXSW announced 40 finalists for the 15th annual SXSW Pitch competition taking place March 11 to 12.

"Since its inception, SXSW Pitch has been front row to some of the most ambitious startups from around the world, using creative ideas to change their industry’s future," says SXSW Pitch Event Producer Chris Valentine in a news release. "We are thrilled to play a role in helping shape these early-stage ventures and connect them with the resources they need to thrive. This year’s competition will be a representation of the incredible and innovative work being done around the world."

In addition to the finalists for each category, SXSW names a handful of alternates. This year, Houston-based AiKYNETIX was included in the Artificial Intelligence, Robotics & Voice category.

AiKYNETIX, which was founded in January 2021, uses real-time video analytics technology to provide a new option for runners on treadmills. App users — runners and their coaches — then can measure running form and running performance metrics to improve training.

Houston IT and software services company claims spot on 2023 cloud tech awards

Rajasekhar Gummadapu is the CEO of Techwave. Photo via Techwave

Houston-based Techwave has won a prestigious award. The company claimed the “Best Cloud Migration or Systems Integration Solution” award at the 2022-2023 International Cloud Awards.

The award, which recognizes and honors industry leaders, innovators, and organizational transformation in cloud computing, was announced earlier this month.

"It is an honor to receive the Best Cloud Migration award at the International Cloud Awards," says Raj Gummadapu, co-founder and CEO, in a news release. "This accolade is a reflection of our relentless pursuit of innovation and delivering exceptional solutions."

Techwave is a global IT and engineering services and solutions company revolutionizing digital transformations.

Houston startup secures latest level of compliance

Koda Health has cleared a new level of compliance. Image via kodahealthcare.com

Growing Houston company Koda Health has announced that it achieved SOC 2 Type II compliance, a distinction that indicates a certain standard of securing customer data.

"This compliance demonstrates our commitment to protecting our partners and their data through enterprise-level security protocol and standards," the company announced on LinkedIn.

Koda Health was audited by Prescient Assurance, a leader in security and compliance attestation for B2B, SAAS companies worldwide, according to the company.

This energy tech startup is using tech to change the game within the exploration and production industry. Photo via Getty Images

Houston-based startup makes a splash with cloud technology for E&P in oil sector

big computing

A Houston area environmental and energy tech company offers a new pay-as-you-go SaaS application that uses chemistry, physics, artificial intelligence, and cloud technology to build simulation platforms for major exploration and production companies.

AquaNRG Consulting's new technology has already been used by major independent E&P companies, helping to increase energy production and optimization. With new products like aiRock™, it uses cloud-based technology to simulate the physical and chemical processes in natural and human-made porous media driven by data.

The company, founded in 2017 by Babak Shafei, a Ph.D. in Earth and Environmental Sciences, uses data chemistry-physics in a new scientific methodology that uses data-driven methods including machine learning to complement and enhance theoretical modeling on reactive transport modeling (RTM) principles.

"We have been working on the product while also thinking of new ways to provide services needed in the energy industry for a number of years," says Shafei.

Babak Shafei founded Houston-based AquaNRG. Photo courtesy of AquaNRG

AquaNRG has been awarded three prestigious Small Business Innovation Research grants totaling $1.4 million from the US Department of Energy and National Science Foundation.

Shafei says that his team of in the research lab continues to develop and improve the set of techniques that can optimize the oil and gas industry. The technology offers a number of solutions in the geology area, including geochemistry or petrophysical calculations, or even in the environmental area for biogeochemistry and remediation calculations.

"Our technology is oriented to big data and big computing," says Shafei. "The platform is armed machine learning and artificial intelligence that uses the chemistry-physics methodology while using a cloud-based application that is very popular and essential for the energy sector."

Shafei says that during the ongoing coronavirus crisis, the digitization of the energy industry has only increased, and helped AquaNRG grow their brand. They plan to use this upward push to their advantage, by expanding their business and thinking well into the future.

"Our team of researchers is focused on our product and our offerings," says Shafei. "There's a lot of exciting things on our mind, including different verticals in terms of new hiring and new facilities, we're looking forward to rolling forward with that."

Nicolaus Radford — CEO, CTO, and co-founder of Houston Mechatronics Inc. — joins the Houston Innovators Podcast to discuss his plans to take his cloud robotics company global. Photo courtesy of HMI

Houston robotics company founder plans to take his startup global

houston innovators podcast episode 45

What do space and the ocean have in common? Both have a lot left to explore — while also having environments that aren't so easy for human exploration. A former robotics expert at NASA, Nicolaus Radford founded his cloud robotics company six years ago to create a fleet of robots that can help better complete the tasks that offshore industries need.

Radford remembers his time at NASA and how the organization was looking for opportunities to incorporate more public-private partnerships. Through some meetings and tours, Radford began to see that there was an emerging interest in underwater robotics.

"It became evident that not only was there a huge desire and requirement for what people wanted to do under water, but Houston was likely an epicenter for it," Radford says on the Houston Innovators Podcast.

With this in mind — and an entrepreneurial itch — Radford started Houston Mechatronics Inc. in 2014. He's grown the company through a few venture capital raises and across the energy biz and into new industries. Now, he's looking to take the company global with plans for opening new offices in the United Kingdom and in the Asia Pacific region.

"We're absolutely going to be a global company," Radford says, explaining that new clients in these areas are what's calling for the new offices. "The next 12 months of this company are going to be extremely vibrant and dynamic."

Radford also discusses how the pandemic has affected his business and his challenges raising a round in the episode of the podcast. You can listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes

In a decade, there will be five times as many satellites as there is now, and we're going to need a better way of keeping track of them. Cognitive Space, lead by Guy de Carufel, has a solution. Courtesy of Guy de Carufel

Houston entrepreneur using cloud-based AI technology in space and satellite applications

Featured innovator

There are around 2,000 satellites up above our heads, but in the next 10 years, that figure will have surpassed 10,000. As the number of satellites goes up, it'll be harder for companies to manage them.

Houston-based Cognitive Space led by Founder and CEO Guy de Carufel recognizes this as an opportunity to engage artificial intelligence and cloud technology. De Carufel spoke with InnovationMap about his company, how it will grow, and the role Houston plays in the evolving space exploration industry.

InnovationMap: How did you come up with the idea for your company and technology?

Guy de Carufel: From my experience working at [JSC], I understand the traditional way of commanding spacecraft and how you interface with that from the ground station point of view. In the industry, it's changing very quickly in terms of new companies that are launching constellations of satellites. We're currently at an inflection point where the satellite industry is expected to grow up to five folds in the next 10 years because of the large companies building up these satellites. There are around 2,000 satellites active right now, and that's expected to grow to over 10,000 in the next 10 years.

With all these satellites, you're going to need to manage these assets. Having an operator look at each satellite is not going to cut it. It's not going to be enough for all these satellites. I've been investing and researching in AI technology and machine learning, and I came up with a different way of approaching the problem, and it's a cloud-based approach to [managing the satellites.]

IM: What got you interested in space initially?

GC: Just the excitement of the new frontier. It's still one of the only places that we have a lot of exploring to do, and that got me into space in general and then aerospace engineering, which I got my master's degree in.

IM: What are some of the challenges of introducing a new technology in such a rapidly changing industry?

GC: Traditionally, the aerospace industry is very conservative and doesn't adopt change very quickly. Especially from NASA's point of view and large corporations' point of view, it takes a lot of effort to implement changes — and there's reasons behind that. Space crafts are very expensive to launch and mistakes are very costly. The industry doesn't necessarily like to take too many risks, but that's changing quickly. Now, there are a lot of startups in what's called "new space." You have a lot of companies being funded by venture capital. These startups are willing to take a lot more risks.

IM: How is this growth in satellites going to affect things here on earth?

GC: One of the reasons there's been new interest in space is there are new market forces that are pushing the industry in new directions where you have new uses for space assets. One of them is obviously worldwide connectivity, so internet from space. You have a lot of companies investing billions into that.

The other market force is to have real-time insight into what's going on in the world through imagery. There's a need for tracking transportation and logistics, as well as farming and mining. All of this will have a profound impact on the economy in general.

Industrial IoT, which basically just means everything will be connected, and in order to operate these remote devices, you're going to have to have real-time knowledge of what's going on, and one of the ways to do that is with real-time imagery. It's not something that can be done with today's technology, and we want to be able to position ourselves to be able to enable that market trend.

IM: Has NASA changed with the times? Does it still have the same role in space exploration in "new space"?

GC: The role of NASA has changed over the years. It's changed from initially being a national pride to be the first on the moon and the astronauts were test pilots and the soldier type. When the space station came up and the shuttle program, astronauts became scientists and educators from all sorts of backgrounds. NASA has evolved considerably over the years, and now it is evolving again because of the changes in the industry. NASA will always be relevant, but now it does have to change in how it will play in this new economy. Commercial entities are going to be a large part of exploration, but NASA does have a role to play in setting the roadmap and logistics, as well as sharing the expertise it has from 60 years.

IM: Is Houston a good place for aerospace startups?

There's starting to be a strong startup ecosystem here, but the focus is still medical and oil and gas, much less so aerospace. I do hope that the community realizes that there's a lot of talent here for aerospace. If I were to suggest anything, it would be to have an accelerator program with a focus on space.

IM: Where is Cognitive Space at with its technology and business plan? What are some goals you have for the company?

GC: We're still very early. We're building up our product, and we have a functional prototype. We are in discussion with most major players in the industry and with various government entities.

By next year we will have major contracts, and growing our team to 15 to 20 people. We'll have a commercial product by then and servicing some commercial players. Five years from now, we'll probably be in many different verticals, spawning from what we have now to really expand and apply our systems to as many applications as possible.

IM: Who are Cognitive Space's clients?

GC: Our focus is on earth observation satellite companies — the companies that are developing small satellites with different sensors onboard to take imagery or different spectrum, say hyperspectral or optical. We're focused on that market. What we provide for them is this autonomous tasking solution for their earth observation systems.

We're starting with a niche market but it's growing very quickly. It's expected to grow to $8 billion industry in 5 years. But the technology we develop will be applicable to many different industries.

IM: What's next for Cognitive Space?

GC: We've been focused mostly on developing our prototype and validating the market, but we are looking for investment in a Seed round this year.

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Portions of this interview have been edited.

Jay Bhatty looked at how pipeline data reached traders and thought of a better way. Getty Images

Growing Houston company makes pipeline data more accessible for natural gas trading

Digital upgrade

In the energy capital of the world, Houston entrepreneur Jay Bhatty has established a rapidly growing technology hub for the natural gas industry.

Bhatty, a veteran of the natural-gas-trading business, founded Houston-based NatGasHub.com in October 2016 to streamline the traditionally complicated processes of moving natural gas from one point to another, and of unearthing data about natural gas pipelines. After only a little over two years in business, NatGasHub.com already is profitable — a rare feat in the startup world.

The NatGasHub.com platform, which runs on cloud-based software, launched in late 2017. The startup participated in the final accelerator class of the Houston Technology Center; the accelerator program shut down in early 2018.

Bhatty hatched the idea for NatGasHub.com while he was vice president of energy trading at JPMorgan Chase & Co.'s investment-banking arm, where for more than eight years he felt frustrated by the sluggish nature of natural-gas-trading activities.

First off, data about natural gas pipelines — such as whether a pipeline has capacity issues that could trigger a spike in prices — has, for years, been scattered across the web. Now, NatGasHub.com aggregates pipeline data from dozens upon dozens of websites.

Secondly, transferring natural gas from Point A to Point B has historically involved the tedious task of manually typing a "nomination" to enable the sale of natural gas. NatGasHub.com automates that job, freeing up workers' time so they can tackle meatier projects.

Bhatty compares the now-streamlined nomination process to buying an airline ticket on Expedia or booking a hotel room on Hotels.com. Like those travel websites, NatGasHub.com also serves as a one-stop shop, only in this case it offers a single dashboard for selling natural gas. Until NatGasHub.com came along, U.S. companies had relied on cadres of employees to enter natural gas nominations by hand into about 100 gas pipeline websites, and to track gas flow around the clock via spreadsheets and phone calls, Bhatty says.

In a nutshell, NatGasHub.com serves as both a data supplier and a logistics provider for the natural gas industry.

"Software automation has led to reduced costs for our clients," Bhatty says.

As of early December 2018, NatGasHub.com's customer roster featured 32 companies. Bhatty declines to identify the startup's clients, but he says they're well-known names in energy circles. Bhatty says energy producers, utilities, banks, and hedge funds are among the types of clients that benefit from NatGasHub.com.

"We're adding customers at a pretty fast rate," Bhatty says. "We're definitely in growth mode right now."

NatGasHub.com also is adding revenue at a pretty fast rate. From October 2017 to October 2018, revenue soared by 300 percent, while profit skyrocketed by 5,500 percent, according to Bhatty.

NatGasHub.com has accomplished all of that without taking one penny from outside investors, Bhatty says.

The energy industry has taken notice of NatGasHub.com's success. In August, Energy CIO Insights named it one of North America's 10 best energy technology startups for 2018.

Today, NatGasHub.com employs 18 people in Houston. Bhatty envisions the workforce growing to 30 to 35 employees by the end of 2019. Planned expansions into other segments of the energy industry, such as crude oil, and into the Canadian market could bump up that projection. Currently, NatGasHub.com operates only in the U.S.

Among the kinds of workers NatGasHub.com will be hiring over the next year are software programmers, database administrators, and sales representatives.

"It's hard to find any kind of qualified people in this economy with the unemployment rate so low," Bhatty says. "But the good part has been that there's a lot of qualified people who want to work in a startup environment — they want to leave the bigger companies and try something different."

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Houston-area VC funding sunk to 5-year low in Q3 2025, report says

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Fundraising for Houston-area startups experienced a summertime slowdown, sinking to a five-year low in the third quarter, according to the latest PitchBook-NVCA Venture Monitor.

The PitchBook-NVCA Venture Monitor shows startups in the Houston metro area attracted $204.4 million in venture capital from June through August. That’s 55 percent below the total for the previous quarter and 51 percent below the total for the third quarter of 2024.

More telling than those figures is that the third-quarter haul dropped to its lowest total for Houston-area startups since the fourth quarter of 2020, when $133.4 million in VC was raised. That was the third full quarter after health officials declared the pandemic in the U.S.

In Q3 2025, AI accounted for nearly 40 percent of VC deal volume in the U.S., Kyle Stanford, director of U.S. venture research at PitchBook, said in the report. And through the first nine months of 2025, AI represented 64 percent of U.S. deal value.

VC deal activity “has been nearly steady, emphasizing a consistent influx of companies, especially at the pre-seed and seed stages,” Stanford said. “Large deals remain the primary driver of market deal value, with almost all of these deals focused on AI.”

Bobby Franklin, president and CEO of NVCA, said that while fundraising hasn’t returned to pre-pandemic highs, deal values are going up in sectors such as AI, manufacturing, robotics and space tech, many of which have already exceeded their investment totals for all of 2024.

Meet 6 of the fastest-growing scaleup companies in Houston right now

meet the finalists

From raising funding rounds to earning FDA acceptance, some of Houston's most innovative companies have reached major milestones this year.

The 2025 Houston Innovation Awards will recognize their progress by bringing back our Scaleup of the Year category for the second year. The award honors an innovative later-stage startup that's recently reached a significant milestone in company growth.

Six breakthrough businesses have been named finalists for the 2025 award. They range from climatetech startups to a biotech company developing new drugs for neurodegenerative diseases and more.

Read more about these businesses and their impressive growth below. Then join us at the Houston Innovation Awards on Nov. 13 at Greentown Labs, when the winner will be unveiled at our live awards ceremony.

Tickets are now on sale for this exclusive event celebrating all things Houston Innovation. Corporate 10-packs, featuring reserved seating and custom branding, and individual tickets are still available. Secure your seats today.

Coya Therapeutics

Clinical-stage biotechnology company Coya Therapeutics (NASDAQ: COYA) has developed COYA-302 that enhances anti-inflammatory T cell function and suppresses harmful immune activity. The drug candidate is being advanced for several neurodegenerative diseases—including ALS, Alzheimer’s, Parkinson’s, and frontotemporal dementia—and has demonstrated promising reductions in neuroinflammation in preclinical and early clinical studies, according to the company.

Coya, founded in 2021, received FDA acceptance for its investigational new drug application for COYA-30 this summer. It closed its IPO in January 2023 for more than $15 million and added $26 million in PIPE funding that same year. Last year, the company secured an additional $15 million in PIPE funding.

Fervo Energy

Houston-based Fervo Energy is working to provide 24/7 carbon-free energy through the development of cost-competitive geothermal power. The company is developing its flagship Cape Station geothermal power project in Utah, which is expected to generate 400 megawatts of clean energy for the grid. The first phase of the project will supply 100 megawatts of power beginning in 2026. The second phase is scheduled to come online by 2028.

The company raised $205.6 million in capital to help finance the project earlier this year and fully contracted the project's capacity with the addition of a major power purchase agreement from Shell. Founded in 2017 by CEO Tim Latimer and CTO Jack Norbeck, Fervo is now a unicorn, meaning its valuation as a private company has surpassed $1 billion. In March, Axios reported Fervo is targeting a $2 billion to $4 billion valuation in an IPO.

Koda Health

Houston-based Koda Health has developed an advance care planning platform (ACP) that allows users to document and share their care preferences, goals and advance directives for health systems. The web-based platform guides patients through values-based decisions with interactive tools and generates state-specific, legally compliant documents that integrate seamlessly with electronic health record systems. The company also added kidney action planning to its suite of services for patients with serious illnesses last year.

Koda Health was founded out of the TMC's Biodesign Fellowship in 2020 by CEO Tatiana Fofanova, chief medical officer Dr. Desh Mohan, and chief technology officer Katelin Cherry. The company raised a $7 million series A earlier this year, and also announced major partnerships and integrations with Epic, Guidehealth, Medical Home Network, Privia Health and others.

Mati Carbon

Houston climatetech company Mati Carbon removes carbon through its Enhanced Rock Weathering (ERW) program that works with agricultural farms in Africa and India. Mati says the farmers it partners with are some of the most vulnerable to the impacts of climate change. The nonprofit won the $50 million grand prize in the XPRIZE Carbon Removal competition, backed by Elon Musk’s charitable organization, The Musk Foundation, earlier this year.

Mati Carbon scaled operations in India, Zambia, and Tanzania this year and has advanced its proprietary measurement, reporting and verification (MRV) platform, known as matiC, enabling seamless field data capture, chain-of-custody and carbon accounting at scale. The company was founded in 2022 by co-directors Shantanu Agarwal and Rwitwika Bhattacharya.

Molecule

Houston-based Molecule Software has developed an energy trading risk management (ETRM) platform that allows companies trading power, oil and gas, biofuels, renewables and more stay ahead as the markets evolve.

The company closed a Series B round earlier this year for an undisclosed amount. Sameer Soleja, founder and CEO of Molecule, said at the time that the funding would allow the company to "double down on product innovation, grow our team, and reach even more markets." The company was founded in 2012 by CEO Sameer Soleja and participated in the Surge Accelerator the same year.

Utility Global

Houston-based Utility Global has developed its proprietary eXERO technology that produces low-cost, clean hydrogen from water and industrial off-gases without requiring grid electricity.

First founded in 2018 by CEO Parker Meeks, the company participated in Greentown Labs and the Rice Alliance for Technology and Entrepreneurship programs. It raised a $55 million funding round earlier this year and launched commercial partnerships with ArcelorMittal Brazil and Hanwha Group in South Korea to deploy its hydrogen solutions at scale.

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Venus Aerospace picks up investment from Lockheed Martin Ventures

space funding

Venus Aerospace, a Houston-based startup specializing in next-generation rocket engine propulsion, has received funding from Lockheed Martin Ventures, the investment arm of aerospace and defense contractor Lockheed Martin, for an undisclosed amount. The product lineup at Lockheed Martin includes rockets.

The investment follows Venus’ successful high-thrust test flight of its rotating detonation rocket engine (RDRE) in May. Venus says it’s the only company in the world that makes a flight-proven, high-thrust RDRE with a “clear path to scaled production.”

Venus says the Lockheed Martin Ventures investment reflects the potential of Venus’ dual-use technology for defense and commercial uses.

“Venus has proven in flight the most efficient rocket engine technology in history,” Venus co-founder and CEO Sassie Duggleby, a board member of the Texas Space Commission, said in a news release. “With support from Lockheed Martin Ventures, we will advance our capabilities to deliver at scale and deploy the engine that will power the next 50 years of defense, space, and commercial high-speed aviation.”

Chris Moran, executive director and general manager of Lockheed Martin Ventures, said Lockheed Martin has been a longtime supporter of early-stage “transformational” technologies.

“Our investment in Venus Aerospace reflects a conviction that next-generation propulsion will define which nations lead in space and defense for decades to come,” Moran added in the release. “We are committed to helping Venus scale this technology and integrate it into critical systems.”

Since its founding in 2020, Venus has secured more than $106 million in funding. In addition to Lockheed Martin Ventures, investors include Airbus Ventures, America’s Frontier Fund, Trousdale Ventures, and Prime Movers Lab. Supporters of Venus include NASA, the Air Force Research Lab and the Defense Advanced Research Projects Agency (DARPA).
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