Rice research explores how shopping data could reshape credit scores

houston voices

Everyday data like grocery store receipts can help expand access to credit and support upward mobility. Photo by Boxed Water Is Better on Unsplash

More than a billion people worldwide can’t access credit cards or loans because they lack a traditional credit score. Without a formal borrowing history, banks often view them as unreliable and risky. To reach these borrowers, lenders have begun experimenting with alternative signals of financial reliability, such as consistent utility or mobile phone payments.

New research from Rice Business builds on that approach. Previous work by assistant professor of marketing Jung Youn Lee showed that everyday data like grocery store receipts can help expand access to credit and support upward mobility. Her latest study extends this insight, using broader consumer spending patterns to explore how alternative credit scores could be created for people with no credit history.

Forthcoming in the Journal of Marketing Research, the study finds that when lenders use data from daily purchases — at grocery, pharmacy, and home improvement stores — credit card approval rates rise. The findings give lenders a powerful new tool to connect the unbanked to credit, laying the foundation for long-term financial security and stronger local economies.

Turning Shopping Habits into Credit Data

To test the impact of retail transaction data on credit card approval rates, the researchers partnered with a Peruvian company that owns both retail businesses and a credit card issuer. In Peru, only 22% of people report borrowing money from a formal financial institution or using a mobile money account.

The team combined three sets of data: credit card applications from the company, loyalty card transactions, and individuals’ credit histories from Peru’s financial regulatory authority. The company’s point-of-sale data included the types of items purchased, how customers paid, and whether they bought sale items.

“The key takeaway is that we can create a new kind of credit score for people who lack traditional credit histories, using their retail shopping behavior to expand access to credit,” Lee says.

The final sample included 46,039 credit card applicants who had received a single credit decision, had no delinquent loans, and made at least one purchase between January 2021 and May 2022. Of these, 62% had a credit history and 38% did not.

Using this data, the researchers built an algorithm that generated credit scores based on retail purchases and predicted repayment behavior in the six months following the application. They then simulated credit card approval decisions.

Retail Scores Boost Approvals, Reduce Defaults

The researchers found that using retail purchase data to build credit scores for people without traditional credit histories significantly increased their chances of approval. Certain shopping behaviors — such as seeking out sale items — were linked to greater reliability as borrowers.

For lenders using a fixed credit score threshold, approval rates rose from 15.5% to 47.8%. Lenders basing decisions on a target loan default rate also saw approvals rise, from 15.6% to 31.3%.

“The key takeaway is that we can create a new kind of credit score for people who lack traditional credit histories, using their retail shopping behavior to expand access to credit,” Lee says. “This approach benefits unbanked applicants regardless of a lender’s specific goals — though the size of the benefit may vary.”

Applicants without credit histories who were approved using the retail-based credit score were also more likely to repay their loans, indicating genuine creditworthiness. Among first-time borrowers, the default rate dropped from 4.74% to 3.31% when lenders incorporated retail data into their decisions and kept approval rates constant.

For applicants with existing credit histories, the opposite was true: approval rates fell slightly, from 87.5% to 84.5%, as the new model more effectively screened out high-risk applicants.

Expanding Access, Managing Risk

The study offers clear takeaways for banks and credit card companies. Lenders who want to approve more applications without taking on too much risk can use parts of the researchers’ model to design their own credit scoring tools based on customers’ shopping habits.

Still, Lee says, the process must be transparent. Consumers should know how their spending data might be used and decide for themselves whether the potential benefits outweigh privacy concerns. That means lenders must clearly communicate how data is collected, stored, and protected—and ensure customers can opt in with informed consent.

Banks should also keep a close eye on first-time borrowers to make sure they’re using credit responsibly. “Proactive customer management is crucial,” Lee says. That might mean starting people off with lower credit limits and raising them gradually as they demonstrate good repayment behavior.

This approach can also discourage people from trying to “game the system” by changing their spending patterns temporarily to boost their retail-based credit score. Lenders can design their models to detect that kind of behavior, too.

The Future of Credit

One risk of using retail data is that lenders might unintentionally reject applicants who would have qualified under traditional criteria — say, because of one unusual purchase. Lee says banks can fine-tune their models to minimize those errors.

She also notes that the same approach could eventually be used for other types of loans, such as mortgages or auto loans. Combined with her earlier research showing that grocery purchase data can predict defaults, the findings strengthen the case that shopping behavior can reliably signal creditworthiness.

“If you tend to buy sale items, you’re more likely to be a good borrower. Or if you often buy healthy food, you’re probably more creditworthy,” Lee explains. “This idea can be applied broadly, but models should still be customized for different situations.”

---

This article originally appeared on Rice Business Wisdom. Written by Deborah Lynn Blumberg

Anderson, Lee, and Yang (2025). “Who Benefits from Alternative Data for Credit Scoring? Evidence from Peru,” Journal of Marketing Research.

From Your Site Articles
In an interview with InnovationMap, Carolyn Rodz, CEO and founder of Hello Alice, explains how the partnership came about and how the program will significantly move the needle on equitable access to capital for small business owners. Photo courtesy of Hello Alice

How this Houston innovator is providing small businesses unprecedented access to capital

Q&A

Last month, Hello Alice — now with 1 million members in its community — announced a new program with MasterCard that provides small business owners a simpler way to unlock access to capital.

The Hello Alice Small Business Mastercard offers users expert business advice, business insights, cash back, and a rewards program that gives entrepreneurs points for completing business-advancing activities on the Hello Alice platform.

"As a small business owner myself, I've created a card that I wish I would have had," Carolyn Rodz, CEO and founder of Hello Alice, tells InnovationMap. "We really looked at where are the gaps for these business owners and the things they don't already have or are unable to access."

In an interview with InnovationMap, Rodz explains how the partnership came about and how the program will significantly move the needle on equitable access to capital for small business owners.

InnovationMap: How did this partnership come about to provide this this unique credit card for small business owners?

Carolyn Rodz: We have been looking at ways to support business owners along their capital journeys for a long time. Since we started Hello Alice access to capital has been the number one barrier for small business owners, and that's only magnified when we look at business owners of color and our new majority business owners that we focus on. And so it made natural sense as we went down a path of conversations with MasterCard initially around how do we create something, particularly in a world where accessing capital, which would be daunting for business owners.

There's a lot of talk around venture capital and getting loans and what that growth journey looks like. But the reality is most business owners understand a credit card — they understand how it works. So, that was a great starting point for us. Then we looked at what are some of the issues with cards — all business cards particularly or commodities. They're typically an afterthought from a lot of the financial institutions that offer them. We're seeing a lot of these emerging fintech companies that are rolling out cards, but even for them, the small business audience is typically an afterthought. They're really focused on tech companies and very rapid growth businesses.

It felt like mainstream small businesses were really getting lost in this conversation, so that was where we really wanted to tackle. How do we solve some of these problems — how do we create benefits that are actually meaningful to small business owners? Things like one-on-one coaching and helping them get access to workshops that will help them along their growth journey. Things that they can redeem points for experiences and opportunities that that may not otherwise be accessible through a lot of these business owners.

The other piece that we wanted to support is the large group of businesses that don't qualify for a traditional credit card. And so we, in tandem with our unsecured credit card, also launched a secured card. And the idea for that was that we could actually roll out a credit quality tool. So, in conjunction with all the education and wraparound services that we're offering, there's a six- to nine-month process that a business owner — if they have poor credit history — can go through to build up that credit with a secured credit card and then seamlessly transition into an unsecured card. It's an opportunity to take that first step toward building and growing their business and accessing the capital that they need to grow.

IM: How does this initiative target the inequality in access to capital for small business owners?

CR: Well, nine out of 10 of business owners are relying on their personal credit card when they're applying for financing. When we look at entrepreneurs of color, the rate of low credit score for them is two to three times higher for Black and LatinX entrepreneurs specifically. So for us, this is the importance of building in conjunction with our creating equitable access to credit program that is much broader, frankly, than the card itself, but offering the wraparound services around it, making sure that we are providing the secured to unsecured seamless transition plan.

We're also working with the First National Bank of Omaha, and the reason we selected them at the bank, they're the largest privately held bank in the country. This also gave us the flexibility to really look at alternative underwriting models and the the opportunity to learn through all of the insights that we're gaining around these small business owners. We're trying to figure out how do we start to look at some of these alternative data points and identify not just the financial history of a business owner.

There are a lot of circumstances that lead to poor credit scores, whether it was for a health circumstance that they endured or veteran business owners who may have no credit history because they've been overseas for a long period of time. We're looking at what are some of the data points that are indicating that a business owner is more likely to succeed and more likely to repay the credit that they've taken on. We know already through a lot of research and data points that having a business plan automatically makes you more likely to repay your your debt. Or the fact that you are getting positive feedback from mentors is a strong indicator that you're going to be more likely to pay off some of those debts. And so we're really looking at what are some of these things that may be overlooked but are frankly more indicative of who the business owner is and the potential for their for their business and their opportunities to be able to repay credit that they take off.

IM: What type of small business owners do you feel like this is a really good solution for? What all can they expect from the program?

CR: As a small business owner myself, I've created a card that I wish I would have had. When I started this company, I really looked at what was available to the market. This credit card, like many cards, offers benefits that are pretty standard in the market right now. Things like cash back, extra points, and kickers for certain spends that are relevant to small business owners. But again, we really looked at where are the gaps for these business owners and the things they don't already have or are unable to access.

What we discovered was there are lots of accelerators, programs, and workshops and things — but they're expensive. So, there's an opportunity here. We work with our network of partners that we have for Hello Alice that are traditionally paid or have a cost to roll them out and offer business owners points and earnings that can be spent toward that.

Mentorship, as you know, is a huge, huge barrier, particularly when we look at our new majority entrepreneurs, so all of our cardholders get access to one-on-one coaching for this card. And we've really focused on areas that are primary interest to them, things like business strategy, operations, and financing for their businesses.

And then the other important piece of this is leveraging our partner network. We have so many partners that we work with at Hello Alice, companies that are offering products and tools and services to small business owners. With this card, we're opening up additional discounts beyond what we've already negotiated standards for all of our community, whether it's an extra discount on things like QuickBooks, Salesforce, or different tools that they might be using. We have over 70 affiliate partners that we've already brought into the program working with more every week right now, which is really exciting.

We're also trying to find new opportunities — where can we bring the most benefit these business owners in a way that grows with their company and that, as they're spending and creating traction with their company, our team is working behind the scenes to unlock more and more opportunities every stage of that journey.

IM: Do you feel like this program is a response to the growing challenges small businesses have been facing over the past few years?

CR: I mean, our business certainly had a hell of a couple of years, and 89 percent of small business owners in our community, which is now over a million business owners strong, claim the access to capital is limiting their growth potential. Where we focus a majority of our energy as a company is unlocking those barriers.

As we dig into that, what we're seeing is access to capital — whether that's early days as a credit card or a grant funding, or later stage with loans or even venture capital — is that we need to address this by helping to unlock that journey for business owners, but also making sure that we're supporting them with the opportunities that are relevant to their own stage of growth.

The other piece is revenue generation. We always want to focus on the core and sustainable business health of a company and making sure that they're bringing in revenue and that they've created a business model that actually works and is scalable. We're working a lot on providing them not just money into their business or outside capital, but how do we actually help them generate revenue and clear capital in all the stages unless they have that capital? How do we actually help them deploy that capital in meaningful ways will help them grow their business?

All of the wraparound services that come with the core of what Hello Alice offers — and certainly with this credit card we're getting a deeper layer of insight, because we know more about the businesses, we know how they're spending, what they're doing. We're really learning about how do we additionally support this cohort of business owners with the right wraparound services, making sure that they're getting the right thing at the right time.

What's interesting is that and the reason we really started with the credit card is that 50 percent of small business owners have a personal credit score of 680 or better, and that's strong enough to apply for most business credit cards. However, that score locks them out of getting a business loan, which typically requires a score of 720 or better to qualify. So we're able to tap into a cohort and help them grow this pool of capital in the earliest stages. But really making sure that we're giving them the growth tools that ultimately free them up to go get that loan, to go walk into a main street bank and have that power of choice along their capital journey.

In general, we focus a lot on access to capital. We deployed over $37 million in small business grants to date, and we're continuing to grow that pool. We're actually working right now on an equitable access to capital fund, which will allow us to utilize those grants to actually pay the security deposit for select business owners who may not qualify for additional credit.

Ultimately, this is a really tangible way to work with financial institutions, MasterCard, and our broader partner ecosystem. We haven't seen the statistics move in decades. How do we actually open up more capital to business owners that otherwise wouldn't qualify for it? And this is our our first of many steps toward towards putting a really tangible stake in the ground.

IM: What about the challenges of the pandemic — how do you see COVID-19 and its shutdown affect small businesses?

CR: For us, like many businesses, I think the pandemic was it shook everything up. I think we had a plan and a path forward that always entailed unlocking access to capital and unlocking opportunity — that has never changed for us. But it accelerated a lot of things. We had planned to deploy grant funding in 2020 independent of the pandemic. When COVID hit and we saw these businesses struggling, we quickly pivoted. We accelerated that plan significantly. We started deploying grants within weeks of shelter in place — even before PPP had been announced and before businesses were accessing any government support. We were among the first to offer emergency grants and put us in a really strong position to grow that program and again to accelerate the rollout of that, which is now turned into a much larger program.

That really was, I would say, the acceleration of our entire early stage access to capital continuum. And what we learned from that was how much capital these business owners actually need. The process gave us a lot of information that that has really helped roll out the broader continuum of capital for us. We launched our lending marketplace with over 92 small business lenders all focused on fair and equitable funding, which is available over all as well. And so these credit cards round out that early stage access to capital.

But when we look at our new majority cohort — and even many white male businesses — we have to get business owners of all types that are struggling with access to capital. Everybody's willing to give money to business owners that have traction, that are doing well with their business, that are on a growth path. But it's very hard to get the traction that big investors need, and that's always really struggle.

The pandemic accelerated a lot in this space. It made us realize that the opportunity here is actually much greater to support these businesses and also got a lot of attention from partners. We've been having these conversations for years, frankly, prior to the pandemic. And everybody recognized there was an issue, but I don't think they realized the impact of the issue until COVID hit, and small businesses were the ones that kept operating and made sure that we were getting the resources that we needed to continue to live in a time when everything was a little bit uncertain.

------

This conversation has been edited for brevity and clarity.

Small business owners now have a new option for their credit and financial support needs, thanks to Hello Alice and Mastercard. Image via Getty Images

Houston small biz tech platform launches entrepreneur-focused credit card

hello credit

When you're a small business owner, every service you sign up for or institution you open an account at should be a helpful partner on your business journey. At least, that's how Hello Alice sees it.

The Houston company has partnered up with Mastercard and First National Bank of Omaha to provide small business owners a suite of financial services with their line of credit. The Hello Alice Small Business Mastercard will offer users expert business advice, business insights, cashback, and a rewards program that gives entrepreneurs points for completing business-advancing activities on the Hello Alice platform.

“We designed the Hello Alice Small Business Mastercard to meet the needs of small business owners where they are, breaking longstanding barriers to mentorship, access to credit, and overall financial health for those who have traditionally been denied access,” says Elizabeth Gore and Carolyn Rodz, co-founders of Hello Alice, in a statement.

“In times of economic boom and bust, access to capital remains the leading challenge for all small business owners, and particularly for New Majority owners, which is why we continue to focus our efforts on expanding the capital continuum beyond our existing grants and loans programs,” the duo continued.

Offered as a traditional credit card, the Hello Alice Small Business Mastercard provides users with credit-building opportunities. Business owners with a limited or poor credit history also have the opportunity to a secured version of the credit card that still provides full benefits from the program.

“Small businesses are the backbone of our communities, yet too often face significant obstacles in securing the resources they deserve, particularly if the owners come from underserved communities,” says Linda Kirkpatrick, president for North America at Mastercard, in the release. “The launch of the Hello Alice Small Business Mastercard is an important step in our mission to build a more inclusive digital economy by providing small businesses with the financial tools and capital they need to thrive, while also advancing our half-billion-dollar commitment to help close the racial wealth and opportunity gap for Black communities.”

This initiative is the latest announcement from Hello Alice’s Equitable Access to Capital program, which is focused on increasing access to the capital — as well as financial products, tools, and education — small businesses need to grow sustainably and power the national economy. By 2025, according to Hello Alice, approximately $70 million in grants could fund credit enhancements for approximately 30,000 business owners, unlocking up to $1 billion in credit access.

“FNBO has been committed to helping small businesses succeed for 165 years, and we are proud to partner with Hello Alice and Mastercard in this vital initiative to elevate all small businesses,” says Jerry J. O’Flanagan, executive vice president of Partner Customer Segment at First National Bank of Omaha.


The new credit card will provide credit and financial advice, support, and education to small business owners. Image via helloalice.com

Houstonians are carrying sizable debt into the new year. Photo via LivingDice.com

This is how much credit card debt the average Houstonian carries, says report

MONETARY MISFORTUNE

Residents of Houston are nursing New Year's hangovers of another kind — credit card debt.

According to a LendingTree study of the 50 largest U.S. metro areas, Houston consumers rank fourth for the highest median amount of credit card debt to ring in the new year: $3,720. In second place is Austin ($3,911), with Dallas at No. 7 ($3,560). San Antonio holds down the No. 14 spot ($3,414).

Hartford, Connecticut, claims the dubious distinction of ranking first in this category, with median credit card debt of $3,994.

Matt Schulz, LendingTree's chief credit analyst, says people with good credit and high income typically are more inclined to carry bigger credit card balances, since they usually have access to higher credit limits. But he notes that a significant number of younger consumers carry a high amount of credit card debt.

"When you're young and don't have a lot of financial experience, that scary combination can lead to more debt, especially for those living in big, expensive cities," according to LendingTree.

By another yardstick, Texas' four major metros fare much better in the LendingTree study.

Houston ranks 38th for the share of credit card users with debt (81.1 percent). Austin ranks No. 21 (84.7 percent), followed by Dallas at No. 37 (81.2 percent), and San Antonio at No. 48 (75.7 percent).

LendingTree researchers used an anonymized sample of more than 40,000 My LendingTree users from the first 15 days of December 2020 to estimate the percentage of credit card users carrying debt into 2021. They also relied on that data to compile median credit card debts.

------

This article originally ran on CultureMap.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

15+ startups fueling Houston's $1 billion funding haul for Q1-Q2 2026

cha-ching

Houston startups started 2026 strong, bringing in nearly $1 billion in venture capital in the first half of the year, Pitchbook data shows.

Here are 17 Houston companies that secured funding since January, according to reporting by InnovationMap and our sister site, EnergyCapitalHTX.com.

Did we miss a funding round? Let us know by emailing innoeditor@innovationmap.com.

Sage Geosystems

Sage Geosystems raised a $97 million Series B. Photo via sagegeosystems.com.

Houston-based geothermal energy startup Sage Geosystems closed its Series B fundraising round in January and plans to use the money to launch its first commercial next-generation geothermal power generation facility.

Ormat Technologies and Carbon Direct Capital co-led the $97 million round, according to a press release from Sage. Existing investors Exa, Nabors, alfa8, Arch Meredith, Abilene Partners, Cubit Capital and Ignis H2 Energy also participated, as well as new investors SiteGround Capital and The UC Berkeley Foundation’s Climate Solutions Fund.

The new geothermal power generation facility will be located at one of Ormat Technologies' existing power plants. The Nevada-based company has geothermal power projects in the U.S. and numerous other countries around the world. The facility will use Sage’s proprietary pressure geothermal technology, which extracts geothermal heat energy from hot dry rock, an abundant geothermal resource. Continue reading.

TrueLeap Inc.

Sandip Bordoloi and Sunny Zhang, founders of True Leap Inc. Photo via trueleapinc.com.

Houston-based edtech company TrueLeap Inc. closed an oversubscribed seed round in January.

The $3.3 million round was led by Joe Swinbank Family Limited Partnership, a venture capital firm based in Houston. Gamper Ventures, another Houston firm, also participated with additional strategic partners.

TrueLeap reports that the funding will support the large-scale rollout of its "edge AI, integrated learning systems and last-mile broadband across underserved communities." Continue reading.

Wellysis

Wellysis is known for its continuous ECG/EKG monitor with AI reporting, known as the S-Patch. Photo via wellysis.com.

Wellysis, a Seoul, South Korea-headquartered wearable biosensing company with its U.S. subsidiary based in Houston, closed a $13.5 million pre-IPO funding round in February and plans to expand its Texas operations.

The round was led by Korea Investment Partners, Kyobo Life Insurance, Kyobo Securities, Kolon Investment and a co-general partner fund backed by SBI Investment and Samsung Securities, according to a news release.

Wellysis reports that the latest round brings its total capital raised to about $30 million. The company is working toward a Korea Securities Dealers Automated Quotations listing in Q4 2026 or Q1 2027.

Wellysis is known for its continuous ECG/EKG monitor with AI reporting. Its lightweight and waterproof S-Patch cardiac monitor is designed for extended testing periods of up to 14 days on a single battery charge. Continue reading.

DexMat

DexMat plans to use its seed funding to commercially scale Galvorn, its carbon-based conductive fiber. Photo courtesy DexMat

Houston-based material science and climatech startup DexMat closed a $5 million seed round in February.

The round was led by non sibi ventures, with participation from Governance Partners, Tailwind Futures, BetterWay, Capital Factory and other investors. The company additionally announced that it has secured $3 million of non-dilutive funding.

DexMat plans to use the recent round to commercially scale Galvorn, its carbon-based conductive fiber. The high-performance copper alternative, originally developed at Rice University, is made from carbon nanotube (CNT) fibers, which are less energy- and CO2-intensive to produce. Continue reading.

Coya Therapeutics

Houston biotech co. raises $11M to advance ALS drug development

Coya Therapeutics plans to scale up manufacturing and prepare for the commercialization of COYA 302, its ALS therapy drug. Photo via Getty Images

Houston-based clinical-stage biotechnology company Coya Therapeutics (NASDAQ: COYA) closed a $11.1 million in a private investment round in February.

India-based pharmaceuticals company Dr. Reddy’s Laboratories Inc. led the round with a $10 million investment, according to a news release. New York-based investment firm Greenlight Capital, Coya’s largest institutional shareholder, contributed $1.1 million.

Coya reports that it plans to use the proceeds to scale up manufacturing of low-dose interleukin-2 (IL-2), which is a component of its COYA 302 and will support the commercial readiness of the drug. COYA 302 enhances anti-inflammatory T cell function and suppresses harmful immune activity for treatment of Amyotrophic Lateral Sclerosis (ALS), Frontotemporal Dementia (FTD), Parkinson’s disease and Alzheimer’s disease. Continue reading.

Utility Global

Utility Global’s H2Gen technology aims to decarbonize the heavy industrial sector. Photo courtesy of Utility Global

Houston-based Utility Global raised $100 million in an ongoing Series D round to globally deploy its decarbonization technology at an industrial scale, the company reported in February.

The round was led by Ara Partners and APG Asset, according to a news release. Utility plans to use the funding to expand manufacturing, grow its teams and support its commercial developments and partnerships.

Utility Global's H2Gen technology produces low-cost, clean hydrogen from water and industrial off-gases without requiring electricity. It's designed to integrate into existing industrial infrastructure in hard-to-abate assets in the steel, refining, petrochemical, chemical, low-carbon fuels, and upstream oil and gas sectors. Continue reading.

Cart.com

Cart.com raised $180 million to scale its logistics network, expand AI capabilities and develop workflow automation tools. Photo courtesy of Cart.com

Houston-based commerce and logistics platform Cart.com raised $180 million in growth capital from private equity firm Springcoast Partners, pushing the startup past the $1 billion funding mark since its founding in 2020, the company reported in March.

Cart.com says it will use the capital to scale its logistics network, expand AI capabilities and develop workflow automation tools. Continue reading.

Artemis

Houston-based Artemis, formerly Monalee, closed its latest funding round in March. Rendering courtesy Artemis.

Houston tech startup Artemis raised $6 million from 10 investors, it reported in March. The company offers an AI-supported platform that enables solar, battery storage and home improvement contractors to design, sell and finance energy projects.

Long Journey and Copec WIND Ventures co-led the round, with participation from angel investor Scott Banister, Coalition Operators, FJ Labs, Ludlow Ventures, Palm Tree Crew, Plug and Play Ventures, Shrug Capital and Tribeca Ventures.

To help propel growth, the company secured $10 million in financing last year (under its previous name, Monalee) from venture debt and growth credit provider Applied Real Intelligence. As Monalee, the company raised $16 million in venture capital. Continue reading.

Helix Earth

Helix Earth's technology is estimated to save up to half of the net energy used in commercial air conditioning, reducing both emissions and costs for operators. Photo via Getty Images

Houston-based Helix Earth Technologies closed a $12 million Seed 2 funding round to scale manufacturing of its energy-efficient commercial HVAC add-on technology in April.

Veriten, a Houston-based energy investment firm, led the round. Rua Ventures, Carnrite Ventures, Skywriter LLC and Textbook Ventures also participated.

Helix Earth—which was founded based on NASA technology, spun out of Rice University and has been incubated at Greentown Labs—is developing high-efficiency retrofit dehumidification systems that aim to reduce the energy consumption of commercial HVAC units. The company reports that its technology can lead to "healthier indoor air, lower energy bills, reduced building maintenance, and more comfortable spaces for building owners and occupants." Continue reading.

NanoTech Materials

The company has developed thermal insulation technology that improves efficiency and safety in buildings and outdoor infrastructure. Photo via LinkedIn

Houston-based NanoTech Materials closed a $29.4 million Series A in April.

The round was led by Austin-based HPI Real Estate & Investments. Houston-based Goose Capital and Austin-based Milliken & Company also participated.

Nanotech has developed its patented Insulative Ceramic Particle (ICP) technology, which reduces heat transfer in buildings and outdoor infrastructure, improving efficiency and safety. It's known for its Cool Roof Coat, Wildfire Shield and Insulative Coat: Cool Touch product lines. Continue reading.

Paige

Paige founder and CEO Emily Cisek. Photo courtesy Paige

Houston-based Paige, a comprehensive life planning and succession software company, secured a $2.5 million investment to expand the AI-driven tools on its platform this spring.

The funding comes from Alabama-based 22nd State Banking Company, according to a news release. Paige says it will use the funding to expand automation, AI-driven onboarding and self-service tools, as well as add to its sales and customer success teams.

The company was originally founded by CEO Emily Cisek in 2020 as The Postage and rebranded to Paige last year. It helps users navigate and organize end-of-life planning with features like document storage and organization, password management, and funeral and last wishes planning. Continue reading.

Ace Green Recycling

The company plans to use the funds to support its flagship Texas facility and planned merger. Photo via LinkedIn

Houston-based Ace Green Recycling raised $32 million in private investment in public equity (PIPE) financing to support its future plans for growth, the company reported in May.

The battery recycling technology company secured the financing with Athena Technology Acquisition Corp. II, a publicly traded special purpose acquisition company that Ace previously announced it plans to merge with. Once the merger is completed, Ace will become a publicly traded company on the Nasdaq Stock Exchange under the ticker symbol "AGXI."

Ace says the financing will be used to complete the merger and scale the company. Continue reading.

Casimir

Casimir’s semiconductor chips can generate power from quantum vacuum fields without the need for batteries or charging. Photo via casimir.inc

Houston-based Casimir emerged from stealth in May with a $12 million seed round to commercialize its quantum energy chip.

The round was led by Austin-based Scout Ventures. Lavrock Ventures, Cottonwood Technology, Capital Factory, American Deep Tech, and Tim Draper of Draper Associates also participated in the round. The oversubscribed round exceeded the company’s original $8 million target, according to a news release.

Casimir’s semiconductor chips can generate power from quantum vacuum fields without the need for batteries or charging. The company plans to commercialize its first-generation MicroSparc chip by 2028. Continue reading.

VoltaGrid

VoltaGrid has developed a modular power generation system that improves reliability and limits emissions. Photo via voltagrid.com

Houston-based power generation startup VoltaGrid nailed down a $1 billion equity investment from asset management heavyweight Blackstone and Houston-based oilfield services provider Halliburton in May.

The investment came in two forms:

  • A $775 million primary capital raise
  • A $225 million secondary capital purchase from existing investors

VoltaGrid, founded in 2020, provides behind-the-meter mobile power generation equipment for data centers, microgrids and industrial customers. Continue reading.

Aquanta Vision

Babur Ozden is the founder and CEO of Aquanta Vision. Photo via LinkedIn

Houston climatech startup Aquanta Vision secured pre-seed funding to accelerate the commercialization of its methane leak detection software, the company announced in May.

EIC Rose Rock participated in the round, joining investors like Marathon Petroleum Corporation, Chevron Technology Ventures, Ecosphere Ventures, and Odyssey Energy Advisors. The investment follows successful field trials for Aquanta Vision’s optical gas imaging (OGI) detection software, according to the company. Continue reading.

Axiom Space

Axiom Space closed an oversubscribed $525 million round in June. Image via NASA

Axiom Space tacked on an additional $175 million to a previously announced capital raise in June, bringing the oversubscribed round to a total of more than $525 million.

Axiom shared in February that it had secured $350 million in a financing round led by Type One Ventures and Qatar Investment Authority. In June, the company reported that Japan-based MUFG Bank Ltd. joined the round as a new investor, in addition to continued participation from existing backers.

The funding will go toward developing the company's commercial space station, known as Axiom Station, and the production of its Axiom Extravehicular Mobility Unit (AxEMU) under its NASA spacesuit contract. Continue reading.

Receipts Depositary Corporation

The company's platform makes it easier to buy and trade hard-to-access and less traditional assets. File photo

Houston-based fintech company Receipts Depositary Corporation closed a $7 million oversubscribed funding round in June and plans to scale.

The round was led by Austin-based LiveOak Ventures, with participation from Hivemind Capital, Onigiri Capital, OTC Markets Group, GTS, and Redbeard Ventures, according to a release from RDC.

RDC's platform issues depositary receipts (DRs) to qualified investors on digital and alternative assets, making it easier for investors to buy and trade hard-to-access and less traditional assets. Continue reading.

Houston healthtech startup raises $30M to scale surgical healing gel

fresh funding

Houston-based healthtech startup TYBR Health has raised a $30 million Series A round to scale its B3 GEL System, which helps protect tendons from scarring after surgery.

The round was led by Minneapolis-based Vensana Capital and Cleveland-based Mutual Capital Partners, with participation from Denver-based Neovate Capital Partners and existing investors, according to a news release from the company.

TYBR Health said it plans to use the funding to broaden the B3 GEL System's clinical applications, expand commercialization and conduct studies to evaluate its ability to protect tissue and improve healing outcomes.

"Surgeons are exceptionally good at the structural repair, but the biology that follows is what determines how it heals. That part of the equation has gone largely unaddressed ... There's a shift underway across surgical specialties, from focusing almost entirely on the mechanical repair to also weighing the biological conditions that repair needs to succeed," Tim Keane, co-founder and CEO of TYBR Health, said in the news release. "This financing lets us reach more surgeons and generate the clinical evidence to move that shift forward."

As part of the financing round, Greg Banker of Vensana Capital and Liz Todia Zambory of Mutual Capital Partners will join the TYBR board, alongside independent director Aaron Smith.

"TYBR Health is addressing a gap surgeons have lived with for a long time, with a product that fits the way they already work," Zambory, principal at Mutual Capital Partners, added in the release. "We're excited to co-lead this round and support the company's growth."

TYBR was founded in 2020 and originated from the TMCi’s Biodesign fellowship and participated in the TMC's Accelerator for HealthTech. Its B3 GEL System is a flowable extracellular matrix hydrogel designed to protect tendons, ligaments, muscles, and the surrounding soft tissue while they heal from orthopedic surgery. It received FDA 510(k) clearance last June and launched an Australian clinical trial in the fall.

The B3 GEL System has been used in hand, wrist, shoulder, foot and ankle, and sports medicine procedures since it launched, according to the company, and was first used in the clinical setting earlier this year by Dr. Tammam Hanna with Texas Tech University Health Sciences Center.

Houston space companies win NASA funding to build Mars exploration robots

mission to mars

Two Houston-area spacetech companies have landed a portion of a $17 million award from NASA to develop robots for exploring the surface of Mars, the agency announced this month.

Houston-based Inuitive Machines and Webster, Texas-based MEI Technologies, which does business as Aegis Aerospace, were among the seven companies selected to receive the funding from NASA's Science Transport and Robotic Innovation for Deployment and Exploration (STRIDE) initiative.

According to the release from NASA, the companies are tasked with creating "innovative mobility systems" that would allow future Mars missions to access more challenging terrain and difficult-to-reach regions of the planet, and to travel farther distances. NASA estimated that the work will begin this fall.

NASA solicited proposals for participants in the STRIDE initiative in January. The seven named companies are the first selected to participate in the program.

The additional five companies to receive STRIDE funding include:

"STRIDE demonstrates NASA’s commitment to strong public-private partnerships, allowing the agency to explore new approaches for Mars surface exploration while identifying key capability gaps and development needs for commercial systems that could operate and traverse realistic Martian environments," NASA shared in the announcement.

Last month, Intuitive Machines was awarded $148.3 million to deliver its Nova-C lander to the moon. The funding was part of $600 million the space agency awarded to three companies as part of its Moon Base Program and was Intuitive Machines' sixth task order under NASA's Commercial Lunar Payload Services (CLPS) program. Astrobotic was also one of the companies to land funding for the Moon Base program, as well as Austin-based Firefly Aerospace.

Around the same time, Firefly Aerospace was awarded a $13 million subcontract from NASA’s Jet Propulsion Laboratory to develop technology for NASA’s SkyFall mission to Mars. The mission aims to deploy three Mars helicopters to "perform science and demonstrate airborne subsurface mapping and resource prospecting on the planet." Read more here.

View All Listings