Now is Houston's chance to create a modern economic cluster around health information and knowledge exchange. Photo by Dwight C. Andrews/Greater Houston Convention and Visitors Bureau

For the most part, Houstonians were either born here or came here in pursuit of economic opportunity — a job of some sort that brought us to Houston, either directly or indirectly. Economic opportunity is part of the DNA of this city. The breadth of opportunities our city affords people from all over our country and all over our world are seemingly endless.

Houston's growth in the 20th century was fueled by large, strategic, capital investments in our region's infrastructure. Railroads, Hobby and Bush airports, the Port of Houston, the Texas Medical Center, NASA's Johnson Space Center, the Astrodome, and our surrounding petrochemical facilities have all been enormous economic drivers of investment, jobs, and prosperity for our region.

We are all familiar with the names of our early city visionaries and leaders. Were it not for their vision and leadership, Houston would still be a backwater town on the bayou, 50 miles inland from the closest seaport. Many of these leaders of early Houston had both a legitimate self-interest and a sense of civic virtue that inspired them to give back to a community that nurtured their success. They strongly believed in building a better Houston both for themselves and for succeeding generations with a can-do community spirit. Much of their success in developing Houston into the international city of today was a result of employing innovative mechanisms for matching private and public funding.

Today, the Texas Medical Center located in Houston is comprised of over 50 hospitals, medical schools, and other institutions that are all dedicated to public health. The TMC itself has an intertwined and symbiotic relationship with Houston and is a case study in how public and private institutions can work together to create such a unique medical complex that has benefited so many — and will benefit so many more in the future.

The good news is that today most institutions and physicians have electronic medical records. The bad news is that there is still a problem sending a patient's data across the street to a different health care provider electronically. This problem is called a lack of "interoperability" of health records, and this remains an unsolved problem nationally.

Making the data available to enable access to the right information at the right time to deliver the right care, is a challenge for every health care community in the country. That unresolved national problem can be Houston's opportunity to offer solutions and to leverage one of its largest industries.

We can transform health care delivery by enabling access to comprehensive electronic patient information when and where needed. There is now a strong consensus that new health information and communication technologies have a critical role to play in building a twenty-first century health care system that is safe, effective, patient-centric and equitable.

Most consumers today carry a powerful computer in their pocket called a smartphone. These consumers, also known as patients, are the most underutilized member of the health care delivery team and the only constant factor in the delivery of care. Moreover, the patient should care most about effective delivery of care and outcome. Notably, the added cost to have the patient involved is essentially zero in relation to the cost of delivery so patients would get better care at less cost.

We grew up thinking that doctor knows best, but that was until Dr. Google showed up able to make virtual house calls, whenever, and on demand. How many industries have we witnessed that were disrupted by the Internet? All indications are that this transformation will increase is size, scope and speed and is set to disrupt the largest industry in the largest economy in the world. We are at the dawn of the consumerization of health care.

Because of the enormous social challenges, there is currently no community in the United States that is an economic cluster for health information technology and health information exchange. Houston has the resources to become that community and create a health care hi-tech economic cluster. This suggestion is no more bold than a proposal to dig the Ship Channel 50 miles, or creating the first domed stadium in the world, or landing a man on the surface of the moon and returning him safely to Earth.

Now is Houston's chance to create a modern economic cluster around health information and knowledge exchange. If we are successful, Houston can then not only legitimately claim to be the home of the largest medical center in the world, but also the best.

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Manfred Sternberg of Manfred Sternberg & Assoc. PC Attorneys at Law has practiced consumer and commercial law for over 30 years.

Rachel Moncton joins the Houston Innovators Podcast to share why ClassPass chose Houston for its fourth domestic hub and what the consumer tech company has on its horizon for 2021. Photo courtesy of ClassPass

Tech exec shares how she's excited to 'make a splash' in Houston with recent expansion

HOUSTON INNOVATORS PODCAST EPISODE 75

When Rachel Moncton decided she wanted to move back to the United States after years of growing consumer tech company ClassPass internationally, she had no clue where she was going to end up.

The current vice president of marketing had served in various leadership roles for the company, and the powers at be at ClassPass, a consumer-facing tech company that brings together fitness classes and wellness experiences onto one app, decided that Moncton's move would be to spearhead the company's fourth office in Houston.

ClassPass, which was founded in New York City in 2011 before quickly opening its second office in San Francisco. Moncton says a few years ago the company conducted a search for a city that would make for a great expansion and, while Houston was definitely a contender, Missoula, Montana, became the next hub for ClassPass, which has raised over $500 million in venture capital. But, Houston was top of mind for the next expansion.

"When we were thinking about our fourth U.S. office, we wanted something bigger — we're growing quickly and knew we would have to tap into a large talent pool," Moncton says on this week's episode of the Houston Innovators Podcast, noting other elements like Houston's parks, sports teams, culture, universities, and more.

"I get a lot of people saying, 'Houston? That's an interesting choice and not what we'd expect,'" Moncton says. "But that's one of the things we like about it. There's a good startup scene here but not a million different consumer tech companies, so it's nice that we are able to make a bit of a splash."

Last fall, Moncton made her move to Houston to stand up the office virtually, at first, and now the local team is 10 people strong. Currently, ClassPass is looking for its physical space somewhere inside the loop and is hoping to have it open by this summer. Likely, Moncton says, the office will start in a coworking or flexible space that will be able to grow alongside the team.

And speaking of growth, Moncton says ClassPass is still hiring in Houston for roles from sales and finance to customer service and more.

"We are hiring across the board. It's fun for the teams to get to meet people you might not be working with day to day, and it fosters a better sense of empathy and understanding of how the company works," Moncton says. "Even though I lead marketing, it's by no means a marketing hub."

As ClassPass expands its presence, Moncton says she's focused on expanding the company's partners on the app. ClassPass has historically connected users to fitness studios but now is featuring more and more health, wellness, and beauty experiences.

"The technology we've built is to help people find things to book in their city," Moncton says. "There's a lot of (fitness studios) and it can be hard to find what you're looking for. Beauty and wellness are no different."

Moncton shares more about what she's excited about for the future of ClassPass, and how she's experienced Houston so far on the episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.


Wayt is a new app that makes both sides of a shopping transaction smoother and social distancing compliant. Photo courtesy of Wayt

Houston-area student creates new app to help businesses operate safely during COVID-19

there's an app for that

A 17-year-old high school student from the Houston area stepped up to help his local community, as the coronavirus continues to keep many customers from shopping the way they used to.

The Wayt app, created during the stay-at-home order in March, presents itself as an efficient and easy-to-use platform to streamline shopping during the times of the coronavirus. The app provides businesses and their customers with a platform to communicate making curbside pickup, booking appointments, and joining a virtual line a breeze.

"The platform provides a new set of tools for both the customers and the employees of businesses," says Ethan Saadia, app developer and Wayt creator. "With the use of this app, businesses can streamline the process and remove the hassle of shopping for customers."

The app offers a new way to open businesses by using technology that can manage capacity and keep them connected as many businesses move to curbside pickup. The platform allows customers to receive notifications about their order and tap a button to tell the business they're here, removing the hassle of calling customers to tell them their order is ready.

Wayt provides businesses with the customer name and car information, it even lets them know if the customer wants the order delivered directly to their trunk or other areas of their vehicle. This instant notification system keeps businesses and clients safe allowing them to practice strict social distancing to prevent the spread of COVID-19.

"The use of this app will be able to remove a lot of the anxiousness that we have currently," says Saadia. "It will allow for a more convenient shopping experience as we continue to deal with the effects of the coronavirus pandemic in all of our lives."

The platform also allows businesses to offer shopping appointments to abide with reduced capacity mandates, letting customers pick when they can come in within the constraints customized by the business. The app also makes standing in line while keeping social distancing recommendations easy by having customers tap a button on the app to get in line.

According to Saadia, a lot of these changes — like curbside pickup and virtual lines — are here to stay.

"From my perspective and experiences from my friends and family," says Saadia. "Curbside pickup and virtual lines are definitely here to stay because even before the pandemic, popular places used to have long lines and that presented many new challenges. The pandemic is just accelerating technological change that will make our lives easier."

Saadia, a serial innovator and app developer, started his first company in 2013 called PCs for Me where he sells DIY computer kits that help kids learn computer science. While he expects to continue that venture and Wayt, Saadia says he's conscious that things can change unexpectedly as he enters his senior year.

"I know we live under a very uncertain time and I don't really know what's going to happen with school a month from now or a year from now," says Saadia. "My plan is to keep taking it day by day working on Wayt to improve the user experience and work on other apps that I have on the pipeline."

Ethan Saadia, a 17-year-old high school student, created an app to improve the user experience of shopping during a pandemic.

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KBR names C-suite duo to lead $5.3B government services spinoff

new leaders

In advance of the spinoff of its Mission Technology Solutions unit, Houston-based KBR has made two C-suite hires for the new business.

Michael LaRouche is coming aboard as president and CEO of the spinoff, currently called SpinCo, on Sept. 26. Nicholas Veasey is joining as executive vice president and chief financial officer on July 1.

“Michael and Nick bring a highly complementary combination of operational leadership, financial expertise, and mission-driven experience, and together they will accelerate our impact for stakeholders,” Stuart Bradie, chairman, president and CEO of publicly traded KBR, said in a news release.

LaRouche currently is CEO of Serco North America, a Herndon, Virginia-based government services contractor. Veasey most recently was CFO of MAG Aerospace, a Fairfax, Virginia-based defense contractor.

SpinCo, a government services contractor, will launch with more than $5.3 billion in annual revenue and 20,000 employees. KBR’s total headcount is around 36,000. Branding for SpinCo, including a formal name, will be revealed in July.

“SpinCo is positioned as a top-tier provider of differentiated technology solutions, anchored by deep mission expertise, global scale, and a relentless commitment to delivering for our customers,” LaRouche says.

After the spinoff, the slimmed-down KBR will focus on its Sustainable Technology Solutions business, a provider of energy and industrial technology that generated $2.5 billion in revenue in 2025. Bradie will remain chairman, president and CEO of the business.

Both SpinCo and the new KBR will be public companies. The spinoff is scheduled to be completed in January.

Experts: Houston's VC ecosystem has set the foundation — now we need scale

guest column

Fervo Energy went public earlier this summer. The Houston geothermal company priced its IPO at $27 per share, raised $1.89 billion, and opened the next morning at a market capitalization north of $10 billion. By most measures, it is the largest venture-backed cleantech IPO in history and an unambiguous win for Houston. It’s also a useful moment to look at where Houston's venture ecosystem stands and where it can go. The highlight: Houston's venture ecosystem has real foundations and, with increased company formation activity, can grow into the scale our city's ambitions deserve.

A Houston energy story in the national recovery

The recent uptick in Houston venture activity follows national trends. U.S. venture deal count contracted roughly 22 percent from its 2021 peak through 2024 before rebounding to about 16,700 rounds in 2025. Houston's 23 percent increase in VC funding from 2023 to 2024 is part of a national recovery of comparable magnitude over the same time window.

The energy sector is where Houston exhibits unique trends—and where the story turns clearly positive. (Houston's strong health and space sectors deserve their own separate consideration.) By deal count, energy-related rounds have accounted for 15 to 20 percent of Houston activity, roughly consistent over the past few years.

By capital, energy's share surged from about 14 percent in 2023 to over 60 percent in 2025, driven by a small number of large Houston-headquartered rounds, primarily in geothermal and related technologies. Fervo is the obvious anchor, but Sage Geosystems, Quaise Energy, Zeta Energy, Vaulted Deep, Applied Carbon and Mariana Minerals have all closed meaningful rounds. Houston is concentrated and accelerating as an energy capital market, an invaluable position to build upon.

From foundation to scale

The institutional pieces are in place. Greentown Labs, Activate, the Ion and others have built sector-specialized infrastructure most cities would struggle to assemble. Fervo itself is an alum of both Activate and Greentown Labs. Mercury Fund closed its $160 million Fund V, its largest ever. Houston Angel Network, GOOSE Capital, Fathom Fund, and broader pre-seed and seed capital coverage are here. The Houston $10 million-plus Series A list now includes 40 rounds since 2021, which break roughly into two eras. While 2021 to 2022 was biotech-heavy, with companies like Sporos Bioventures, RadioMedix, Cellenkos and Coya Therapeutics, 2024 to 2025 has tilted clearly toward energy, climate, and critical minerals, with Vaulted Deep, Applied Carbon, Mariana Minerals, Sage Geosystems and Ignis H2 Energy among them.

What’s less developed is the volume of seed-stage companies flowing into that capital. Imagine a dozen more Fervos coming out of that infrastructure over the next decade, each generating jobs, recycled founder capital, and the next wave of operators and angel investors. That is the kind of opportunity Houston has within reach if we build the company-formation pipeline to feed it. To be relevant on the national stage as a venture market, and to drive an economy the size of Houston's into the 2030s, the city needs to be doing closer to 20 Series A rounds per month rather than per year. That throughput implies roughly 1,000 seed rounds per year, feeding the funnel at a 20 percent to 30 percent graduation rate. Reaching such throughput depends on how many new founders Houston produces and how quickly our innovation ecosystem can help them achieve lift-off.

Houston in context

The comparative picture brings the scaling challenge into focus. Between 2021 and 2024, Houston-area startups closed between 126 and 153 disclosed venture rounds per year, against a national count between 9,854 and 14,125. That places Houston at a little over 1 percent of the U.S. deal count. For comparison, Austin ran about three times Houston's deal count each year.

At the Series A level, Houston closed between 12 and 24 rounds in any given year. The median Houston Series A across the period was about $10.7 million, compared with $15.4 million in San Francisco. Houston founders are raising fewer and smaller Series A rounds than founders in peer metros, which points directly to where Houston has the most room to grow.

The unicorn picture tells the same story. From 2021 through 2025, the U.S. produced 590 venture-backed unicorns. Four were Houston-based: Solugen and Axiom Space in 2021, Cart.com in 2023, and Fervo Energy in 2024. Adding HighRadius from 2020 brings Houston's all-time total to five. Austin added 19 over the same five-year window. The path from here is to make Houston's entries on lists like these less the exception and more the rule.

Where this leads

Houston has a real opportunity to become the deepest, most credible energy and climate capital market in the country, with the company formation, talent and operator density to support it. The data shows the foundation is already in place. Fervo, Solugen and the growing roster of energy-adjacent Series A graduates are proof. Fervo's IPO is the first of what should be many. Houston has not had a venture-backed cleantech liquidity event of this scale before, and the city now has one to reference, recruit against and build on. With increased company formation at the seed and pre-seed stages, a Fervo-scale outcome need not be a generational event in Houston, but instead, it can become part of a chain reaction powering the city's economy.

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Stephanie T. Schmidt, PhD, is the founder of a stealth startup, a Venture Fellow at Energy Transition Ventures, and an Executive MBA candidate at Rice University's Jones Graduate School of Business. Lawson Gow is the Chief Operating Officer of Greentown Labs. The full Houston VC landscape report is available at Energy Transition Ventures and CleanTech.Org.

Sources: Crunchbase, PitchBook-NVCA, Carta

8 can't-miss Houston business and innovation events for July

where to be

Editor's note: Summer is in full swing in Houston, but the city's innovation ecosystem isn't slowing down. This month brings AI workshops, energy and manufacturing discussions, entrepreneur-focused networking, and opportunities to connect with investors and industry leaders. Here’s what not to miss and how to register. Please note: this article may be updated to add more events.

July 7 — How Oil and Gas Professionals are Building Wealth Smarter

Hear from oil and gas professionals on how to preserve wealth at this event put on by Financial Advice Center. The conversation will touch on topics like investing, taxes and retirement planning.

This event is Tuesday, July 7, from noon-1 p.m. at the Ion. Register here.

July 7 — What AI, Cybersecurity, and Tequila Have in Common.

Join Blue People and Alpfa Houston for this engaging presentation on the advantages and risks associated with AI at the latest installment of Tech + Tequila Talk. Cybersecurity veteran Reynaldo Gonzalez will lead the conversation.

This event is Tuesday, July 7, from 5-7 p.m. at the Ion. Register here.

July 7 — Speed to Market: Houston’s Advanced Manufacturing Edge

The Greater Houston Partnership presents a forum that explores what allows advanced manufacturing projects in Houston to move from concept to operation, where delays and bottlenecks occur, and more. Industry leaders Jennifer Clement from CliftonLarsonAllen LLP and Sarah Janes from San Jacinto College will lead the discussion.

This event is Tuesday, July 7, from 11:30 a.m.-1 p.m. at the Partnership Tower. Register here.

July 9 — Capital Connections Summit

Houston City College Center for Entrepreneurship will host the Capital Connections Summit this month, with a panel discussion focused on access to capital and technical assistance for small businesses and entrepreneurs. The event will be moderated by the U.S. Small Business Administration Houston District Office and will feature lenders, nonprofit microlenders, business advisors, and entrepreneurial support organizations. A live Q&A will follow the panel.

This event is Thursday, July 9, from 11 a.m.-1:30 p.m. at Houston City College Central Campus. Register here.

July 9 — Upstream: Digital Tech Meetup at Second Draught

Join Timbergrove at this month's gathering of energy, operations and technology professionals from across the upstream ecosystem. Discuss challenges, explore new ideas and network over pizza and beer at Second Draught.

This event is Thursday, July 9, from 5:30–8 p.m. at the Ion. Register here.

July 14 — Why Networking Isn’t Turning Into Deals, And What To Do Instead

Jada Powell, founder of Powell Consulting Group, will break down why networking often fails to convert into deals and what companies can do differently to turn conversations into qualified opportunities. Powell works with oil and gas, energy, and industrial companies on business development solutions. This session is part of the monthly Pipeline Series: How Oil & Gas Companies Actually Grow Revenue.

This event is Tuesday, July 14, from noon-1 p.m. at the Ion. Register here.

July 15 — From Pilot to Performance: Building Your AI Procurement Roadmap

It's not too late to join in on the GHP's two-part AI series on moving from experimentation to implementation. In session two, explore how procurement and supply chain leaders can scale AI responsibly to create long-term business value. This event will be led by Cassye Cook Provost, founder and principal of RossGrigsby Consultancy.

This virtual event is Wednesday, July 15, from 8:30-10 a.m. Register here.

July 30 — Rice University Summer Engineering Innovation Program - Demo Day 2026

Meet the young minds and see the final team project presentations from Rice University’s Summer Engineering Innovation Program. The 10-week program challenges Rice students to solve real-world challenges using AI, digital engineering, model-based systems engineering and Industry 4.0 technologies.

This event is Thursday, July 30, from 6-8 p.m. at the Ion. Find more information here.