Houston investor outlines how rare VCs are in Houston — and how to find them

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If you feel like it's hard to find venture capitalists in Houston, you wouldn't be wrong, according to this Houston investor. Photo via Getty Images

As a venture capitalist and former startup founder living in Houston, I get asked a lot about the best way to find and connect with a venture capitalist in Houston. My usual advice is to start with a list, and reach out to everyone on that list. But no one has a comprehensive list. In fact, VCs are such a quiet bunch that I’ve yet to meet someone who personally knows everyone on this proverbial list.

So, I got together with a couple of VC friends of mine, and we put together our own Houston venture capitalist list.

There are, by our count, 11 active venture capital funds headquartered in Houston of any size and type, and outside of corporate venture capital and angel investors, there are 30 total venture capitalists running funds.

Houston has always been quite thin on the VC fund front. I’ve jokingly introduced myself for a while as “one of the 13 venture capitalists in Houston.”

Let’s put this scale in some brutal perspective. With 7.2 million people in the Greater Houston Metro Area, the odds of finding a partner level active venture capitalist in Houston is about 1 in 240,000, if you take a most expanded definition of venture capitalist that might come down to 1 in 100,000. We’re the fifth largest metropolitan area in the country with a tremendous economic engine; there is a ton of capital in Houston, but it’s residing in things like institutional fixed income and equities, real estate, wealth management, corporate, private equity, family office, energy and infrastructure Basically, mostly everywhere but in venture capital funds for tech startups.

By comparison, there are almost as many Fortune 500 CEOs in Houston — 24, by our count — as venture capitalists and fewer venture capitalists than Fortune 1000 CEOs, of which there are 43. That means running into a VC in the checkout line at HEB is about as rare as running into the CEO of CenterPoint, ConocoPhillips, or Academy. In fact, as there are 115 cities in the Greater Houston area, you are three times more likely to be a mayor in Greater Houston Area than a partner at an investor at a VC firm, and more likely to be a college or university president. While we’re at it, you’re 400 times more likely to be a lawyer, 250 times more likely to be a CPA, and over 650 times more likely to be a medical doctor.

Our 30 venture capitalists in the Greater Houston Area are spread across 20 firms and all major venture sectors and stages. Venture capitalist is defined for this list as a full time managing director or partner-level investment professional actively running a venture capital fund with limited partners, currently investing in new venture capital deals from their fund from seed to growth stage, and residing in the Greater Houston Metro area.

To get to 31 we added in a couple of people running venture set asides for PE funds, and a number who work from Houston for funds with no office here. We excluded CVCs, as the decision making is more corporate than individual and rarely includes the committed fund and carried interest structure that defines venture capital, and excluded professionals at angel networks, accelerators, and seed funds that provide investment, but don’t manage conventional venture capital funds, as well as PE funds that do the occasional venture deal. We might be able to triple the number if we include venture capitalists at any professional level, and add in those professionals at PE and angel and seed funds, and corporate venture capital teams who are actively investing. But we’ll get to those other sources of funding in the next list.

The 11 venture capital funds headquartered in Houston are: Mercury, Energy Transition Ventures (my fund), Montrose Lane (formerly called Cottonwood), Texas Medical Center Venture Fund, Artemis, New Climate Ventures, Fitz Gate Ventures, Curate Capital, Knightsgate Ventures, Amplo Ventures,and First Bight Ventures.

Another half a dozen firms have a partner level venture capital investor here, but are headquartered elsewhere: Energy Innovation Capital, Decarbonization Partners, 1984 Ventures, Altitude Ventures, Ascension Ventures, Moneta Ventures, and MKB & Co. Two others, CSL Ventures and SCF Partners, are local private equity funds with a venture capital partner in Houston and a dedicated allocation from a PE fund.

Culling these for partner or managing director level currently in Houston, in alphabetical order by first name, LinkedIn profile and all.

We may have missed a couple of VCs hiding in plain sight, as venture capital is a pretty dynamic business.

VCs are just rare. And yes, perhaps more rare in Houston than in California. Something less than 1 in 100 VCs in the country live in Houston. Across the US there are somewhere around 1,000 to 2,000 active venture capital firms, and maybe another 1,000 to 2,000 active US based CVCs — so, plus or minus maybe at most 4,000 to 5,000 currently active partner level venture capitalists in the country excluding CVC professionals (active VCs and VC funds are really hard to count).

Perhaps in the most stunning statistic, the 7,386 elected state legislators in the US today outnumber the total number of American venture capitalists. Luckily for startup founders, the venture capitalists are more likely to return your phone call.

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Neal Dikeman is a venture capitalist and seven-time startup co-founder investing out of Energy Transition Ventures. He’s currently hosting the Venture Capital for First Time Founders Series at the Ion, where ETV is headquartered.

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The ultimate who's who of 2020 — favorite Houston Innovators Podcast guests of last year. Photos courtesy

Editor's Picks: Top 7 Houston innovation interviews of 2020

2020 in review

Editor's note: With 2020 in the rearview, InnovationMap is looking back on the top stories of the year. With over 60 episodes of the Houston Innovators Podcast and about half of those being recorded in 2020, here are the top episides from the year.

Chris Buckner, co-founder and CEO of Mainline

With sports went offline, esports startup Mainline saw an opportunity for growth during the COVID-19 outbreak. Photo courtesy of Mainline

What happened when collegiate sport stadiums shut down and seasons were postponed? People started to turn to esports to get their competitive fix. And Houston-based esports tournament software company Mainline saw a huge boost to business.

"Everyone is looking for how to get sports, or esports, in front of people because everyone is just missing [sports] so much," Chris Buckner, co-founder and CEO of Mainline, says in a June episode of the Houston Innovators Podcast. "We've been very fortunate to work in the industry we do."

On campuses this past spring, colleges are looking for a way to connect with and engage students, Buckner says. And, Mainline has even been able to attract interest on the professional level.

"Our June will pretty much be the best month of our company, and a lot of that is driven by the fact that everyone is looking for a digital solution rather than an in-person solution," Buckner says.

Read more and stream the podcast episode here.

Fiona Mack, head of JLABS @ TMC

Fiona Mack joined JLABS @ TMC as head of the incubator. Photo courtesy of JLABS

Last year, JLABS @ TMC — a local health tech startup incubator under the Johnson & Johnson arm — welcomed Fiona Mack as the new head of the program. On her plate was assessing the needs of the incubator's 49 member companies in the portfolio and understanding the needs of the Texas innovation ecosystem.

"As I learn more about the history of life science sector in Texas, over the past 20 years there has been an impetuous to build up this critical mass of companies here to really make it a strong hub that competes with the energy sector to make it a pillar of the economy here," Mack says in a November episode of the Houston Innovators Podcast.

One of the things that's top of mind for Mack is a focus on diversity — both from an entrepreneurship and a representation standpoint.

"From a research perspective, there's a strong effect of having a lack of diversity in a lot of the metrics we're looking at," she shares.

Read more and stream the podcast episode here.

Joe Alapat, CEO of Liongard

Joe Alapat is the CEO of Houston-based Liongard, which just raised a $17 million series B round. Courtesy of Liongard

Despite a pandemic that at least in some ways negatively affected venture capital investment, a Houston software startup managed to persevere with a $17 million series B. Liongard's CEO Joe Alapat, who co-founded the company with COO Vincent Tran in 2015, says in a May episode of the Houston Innovators Podcast that the round was the result of ongoing relationships with advisers and investors that meant a successful round — even in light of a pandemic.

In the episode, Alapat also shares his advice for Houston startups looking to tap into the Houston innovation ecosystem — something he's watched grow over the past five years. Now, he says, when it comes to new startups in Houston, "the waves are hitting the shore."

"Houston has always been an entrepreneurial city, and this is just that next stage," Alapat says on the episode. "For me, it's the technology side that excites me even more to see technology companies really succeeding."

Read more and stream the podcast episode here.

Megan Eddings and Amanda Cotler of Accel Lifestyle

Megan Eddings and Amanda Cotler of Accel Lifestyle joined the Houston Innovators Podcast to share how they made the pivot from making T-shirts to face masks. Photos courtesy

For years, Megan Eddings, founder and CEO of Accel Lifestyle, worked on perfecting the perfect antibacterial fabric for an anti-stink athletic clothing line, but it only took her a few weeks to pivot toward using the material to make masks.

On a May episode of the Houston Innovators Podcast, Eddings and Amanda Cotler, director of operations, shared the story of how this pivot came to be and how they saw the Center for Disease Control was recommending wearing bandanas and cloth when face masks weren't available, they had an epiphany.

"Megan and I read that and immediately hopped on a call with our team," Cotler says. "We had a realization with our antibacterial fabric that a face mask made from it would be so much cleaner."

Within 24 hours, the duo had a sample in their hands, and they had 14,000 yards of their Prema fabric being shipped from California to Houston, where they had managed to find 60 local sewers ready to start making the masks.

Now, with the Houston workforce making moves to return to the workplace, Eddings says she's seen an increased interest in corporations wanting custom masks with the company logo on it for their employees.

Read more and stream the podcast episode here.

Durg Kumar and Allen Bryant,  partners at Knightsgate Ventures

Houston-founded venture capital firm heads into second fund focused on social impactDurg Kumar (left) and Allen Bryant, partners at Knightsgate Ventures, join the Houston Innovators Podcast to discuss their second fund. Photos courtesy

Durg Kumar founded Knightsgate Ventures in order to find and fund startups with a social impact and a profitable business strategy. The Houston-based firm was founded in Houston and has since expanded to add a New York partner, Allen Bryant, to the operation. The duo joined the Houston Innovators Podcast in November.

"For a very long time, there was a perceived trade off between social returns and financial returns," Bryant says on this week's episode of the Houston Innovators Podcast. "What we are seeing now is that's really not the case. You actually have businesses that are bringing impactful change and those businesses are propelled by that."

The VC's first fund invested in six startups — including Houston-based Voyager — and is now heading into its second fund. Kumar says the first fund's success was in part due to his network. Now heading into the second go around, Knightsgate's network has grown with the addition of Bryant.

The end of the year, Kumar and Bryant were focused on helping their portfolio startups focus on the next year.

"Now's a good time to retrench and focus on building product," Kumar says, "so that in 2021 when travel restrictions ease, then you've got your refined product to go out and take it to the customers."

Read more and stream the podcast episode here.

Joy M. Hutton, local leader of the Grow with Google in Houston

Joy M. Hutton leads the Grow with Google in Houston. Photo courtesy of Google

In November, when Google announced it was expanding its Grow with Google Digital Coach program to Houston, Joy M. Hutton was named the local leader. The entrepreneur and business consultant is hoping to help provide important business resources to entrepreneurs just like herself.

"In Houston, you have a lot of different resources that weren't available to startups before just within the past few years, and I think that's huge," Hutton says in a December episode of the Houston Innovators Podcast. "Being more inclusive with people who need the resources who haven't traditionally had access to those resources is a big initiative. I personally am proud to be a part of that."

Hutton specifically calls out resources like MassChallenge and Founder's Institute — both of which she serves as a mentor for — as well as DivInc, gBeta, and of course the Grow with Google program. To get involved, Houston entrepreneurs can head online to learn more and keep an eye out for monthly classes online — and hopefully, in the future, in person events as well.

Read more and stream the podcast episode here.

Kyle Judah, executive director of Rice University's Liu Idea Lab for Innovation and Entrepreneurship

Kyle Judah joins the Houston Innovators Podcast to discuss his new role. Photo courtesy of Lilie

When Kyle Judah accepted his position as executive director at Rice University's Liu Idea Lab for Innovation & Entrepreneurship, he had spent less than 48 hours in the city of Houston. In fact, his first two months in the role have been spent completely remote and out of town.

Still, his limited in-person interaction with the city and with Rice made an impact.

"One of the things I found so exciting about what's going on in Houston right now that, quite frankly, was incredibly attractive about the opportunity to come and join Lilie and Rice was that Houston has these big pillar companies in energy and health care and all these critical areas that the world, the economy, and the society needs," Judah says in a September episode of the Houston Innovators Podcast. "That's all in Houston right now."

Judah and Lilie's goal is to help identify the innovation happening on campus at Rice and bring it to the world. And, he says, Rice as a whole has a huge place in the greater Houston innovation ecosystem. The challenge is identifying what industries Houston and Rice have an opportunity to disrupt.

"We can't just copy and paste what works for the Bay Area or what works for Boston," he says. "We have to figure out what is going to be the authentic right sort of centers of excellence for Rice and for Houston — areas like energy, health care, space. It just so happens that these areas that Houston and Rice have historically done better at than anyone else — those happen to be the most grand challenges for all of humanity."

Read more and stream the podcast episode here.

This week's innovators to know roundup includes Durg Kumar of Knightsgate Ventures, Rand Stephens of Avison Young, and Shail Sinhasane of Mobisoft. Photos courtesy

3 Houston innovators to know this week

who's who

Editor's note: In today's Monday roundup of Houston innovators, I'm introducing you to three innovators across industries — from commercial real estate to venture capital.

Durg Kumar, managing partner at Knightsgate Ventures

Durg Kumar — along with his New York-based business partner Allen Bryant — join the Houston Innovators Podcast to discuss their second fund. Photos courtesy

As Durg Kumar enters into his venture capital firm's second fund, his focus is not diverted from Knightsgate Ventures' existing portfolio in this unprecedented time. Throughout the pandemic, Houston-based Knightsgate has been offering support to these startups.

"Now's a good time to retrench and focus on building product," Kumar says, "so that in 2021 when travel restrictions ease, then you've got your refined product to go out and take it to the customers."

Kumar and Allen Bryant, the VCs other partner, joined the Houston Innovators Podcast to discuss their second fund and more. Click here to read more and stream the episode.

Rand Stephens, managing director of Avison Young's Houston office

Rand Stephens discusses COVID-19's effect on office and innovation spaces. Durg Kumar (left) and Allen Bryant, partners at Knightsgate Ventures, join the Houston Innovators Podcast to discuss their second fund. Photos courtesy

Since the 1980s, Houston has been increasing focus on diversifying its economy from oil and gas. Rand Stephens has observed this and noted that new innovation centers rising — like The Ion and A&M's new hub in the TMC — are indicators of progress.

"Houston is an incredible diverse city. We have unlimited talent from an engineering standpoint, and I think those types of projects bode well for keeping and attracting top tech talent. I think that's really the key," he says.

He discusses this progress and the effect of the pandemic on CRE in a Q&A. Click here to read more.

Shail Sinhasane, CEO of Mobisoft

This Houston entrepreneur created a new tool can be used to coordinate responsible rides for passengers infected with COVID-19. Photo courtesy

As the pandemic's effects continue to reverberate into aspects of daily life, a Houston software company has pivoted its technology to create an app that can safely transport COVID-19 patients to their quarantine location.

Mobisoft announced the launch of NEMT Pulse, a non-emergency medical transportation app to be used by schools, community health centers, hospitals, and more to easily facilitate isolated rides.

"We pivoted our NEMT software that could be implemented to safely meet the needs of those affected by COVID-19," says Shail Sinhasane, CEO of Mobisoft, in a news release. "This app provides a solution to ensure individuals who have tested positive can get to their quarantine location with one less thing to worry about." Click here to read more.

Durg Kumar (left) and Allen Bryant, partners at Knightsgate Ventures, join the Houston Innovators Podcast to discuss their second fund. Photos courtesy

Houston-founded venture capital firm heads into second fund focused on social impact

HOUSTON INNOVATORS PODCAST EPISODE 56

When it comes to business, creating a social impact and a profitable business strategy aren't mutually exclusive — especially nowadays — and a Houston-founded venture capital firm is striving to invest in seed-stage tech companies that check both of those boxes.

Knightsgate Ventures was founded in Houston in 2018 by Durg Kumar and has since expanded to add a New York partner, Allen Bryant, to the operation.

"For a very long time, there was a perceived trade off between social returns and financial returns," Bryant says on this week's episode of the Houston Innovators Podcast. "What we are seeing now is that's really not the case. You actually have businesses that are bringing impactful change and those businesses are propelled by that."

The VC's first fund invested in six startups — including Houston-based Voyager — and is now heading into its second fund. Kumar says the first fund's success was in part due to his network. Now heading into the second go around, Knightsgate's network has grown with the addition of Bryant.

"We're not just one local regional network; we have a national network," Kumar says. "We're not only looking to invest or raise locally — but also start getting the connection between the two ecosystems and find what Houston can learn from New York and what New York can learn from Houston."

Of course, the other difference between the two funds is that Knightsgate will be raising and investing from fund two on the heels of a pandemic. Thankfully, Kumar says, Knightsgate's portfolio companies were in a good place financially and even made strategic pivots amid the challenges.

Now, through the end of this year, Kumar says he and Bryant are helping their portfolio startups focus on the next year.

"Now's a good time to retrench and focus on building product," Kumar says, "so that in 2021 when travel restrictions ease, then you've got your refined product to go out and take it to the customers."

In the episode, Kumar and Bryant discuss each of their thoughts on Houston's growth as an innovation ecosystems from their two different perspectives.

Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.


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9 can't-miss Houston business and innovation events for March

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Editor's note: March is here, and that means the return of some of Houston’s signature innovation events, as well as insightful talks and a Mardi Gras block party. Here are the Houston business and innovation events you can't miss in March and how to register. Please note: this article might be updated to add more events.

March 5 – SheSpace Women’s Day Open House

Connect with like-minded women during a free day of coworking at SheSpace. And while you're there, take a break and enjoy a floral arranging class, complimentary breakfast, pop-up shops, happy hour and raffle prizes. Space is limited.

The event is Wednesday, March 5, from 9 a.m.–7 p.m. Click here to register.

March 5 — Science and the American Presidency

Hear from former presidential science advisors—Kelvin Droegemeier who served under President Trump, Neal Lane who served under President Clinton and Alondra Nelson who served under President Biden—as they discuss their experiences leading the White House Office of Science and Technology Policy and how science is used to address issues from climate change and public health to national security and economic competitiveness. An exhibit inside Baker Hall will complement the event. The Baker Institute Science and Technology Policy Program and Rice Innovation will host the talk.

This event is Wednesday, March 5, from 5:30–8 p.m. at James A. Baker Hall. Click here to register.

March 6 — Ion Block Party - Mardi Gras Edition 

Let the good times roll this week while networking with potential collaborators, mentors and investors at the Ion. Food and drink will be available while supplies last and the Ion will provide drink tickets for one free drink at Second Draught upon check-in.

This event is Thursday, March 6, from 4–7 p.m. at the Ion. Click here to register.

March 10-14 — CERAWeek 2025

The foremost annual gathering in the energy sector returns to Houston March 10-14, 2025. Themed "Moving Ahead: Energy strategies for a complex world," CERAWeek 2025 will focus on the challenges ahead for energy security, supply, and climate ambitions. More than 10,000 participants from over 2,050 companies across 80 countries will convene in Houston for this ambitious event. CERAWeek comprises three platforms: the Executive Conference, the Innovation Agora, and Partner Programs. We'll dive into comprehensive CERAWeek recommendations in future articles.

This event begins Monday, March 10. Click here to register.

March 11 — Energy Venture Day at the Ion

Preview pitches from 40-plus energy ventures competing at CERAWeek's Energy Venture Day and Pitch Competition, co-hosted by the Rice Alliance, Ion, HETI, and TEX-E. This free, fast-paced pitch event offers an alternative to the CERAWeek event, which requires an Agora pass.

This event is Tuesday, March 11, from 9 a.m.–2:30 p.m. Click here to register.

March 13 — Code4Y'allMeetup

Connect with fellow coders at Code4Y’all's meetup at the Ion. Andrew Baines, Founder of No Experience Jobs, will present "How I Built a Job Board to Help Entry-Level Tech Talent (And What I Learned)." Hear from Baines and learn lessons from job seekers.

This event is Thursday, March 13, from 6–7 p.m. Click here to register.

March 17 — Women in Innovation 

Celebrate Women's History Month with an engaging panel discussion hosted by the University of Houston's Division of Energy and Innovation. UH's Tanu Chatterji, Stacey Gorniak and Chrysa Latrick will discuss the achievements of trailblazing women across various industries, as well as share challenges and experiences. Lunch will be provided.

This event is Monday, March 17, from noon–1 p.m. at UH's Faculty Cafe. Find more information here.

March 24-28 — H-Town Roundup 2025

Celebrate innovation, entrepreneurship and collaboration this month during Houston Exponential's H-Town Roundup. During the fifth-annual free event series, previously known as Houston Tech Rodeo, attendees can expect insightful talks, workshops and networking events at venues across the city like the Ion, Greentown Labs, University of Houston and more.

This event begins Monday, March 24. See the full schedule of events here.

​March 27 — NASA Tech Talks

Every fourth Thursday of the month, NASA experts, including longtime engineer Montgomery Goforth, present on technology development challenges NASA’s Johnson Space Center and the larger aerospace community are facing and how they can be leveraged by Houston’s innovation community. Stick around after for drinks and networking at Second Draught.

This event is Thursday, March 27, from 6-7 p.m. at the Ion. Register here.

Texas startup's lunar lander aces moon touchdown with special delivery for NASA

Touchdown

A private lunar lander carrying a drill, vacuum and other experiments for NASA touched down on the moon Sunday, the latest in a string of companies looking to kickstart business on Earth's celestial neighbor ahead of astronaut missions.

Firefly Aerospace’s Blue Ghost lander descended from lunar orbit on autopilot, aiming for the slopes of an ancient volcanic dome in an impact basin on the moon’s northeastern edge of the near side.

Confirmation of successful touchdown came from the company's Mission Control outside Austin, Texas, following the action some 225,000 miles away.

“You all stuck the landing. We’re on the moon,” Firefly’s Will Coogan, chief engineer for the lander, reported.

An upright and stable landing makes Firefly — a startup founded a decade ago — the first private outfit to put a spacecraft on the moon without crashing or falling over. Even countries have faltered, with only five claiming success: Russia, the U.S., China, India and Japan.

A half hour after landing, Blue Ghost started to send back pictures from the surface, the first one a selfie somewhat obscured by the sun's glare. The second shot included the home planet, a blue dot glimmering in the blackness of space.

Two other companies’ landers are hot on Blue Ghost’s heels, with the next one expected to join it on the moon later this week.

Blue Ghost — named after a rare U.S. species of fireflies — had its size and shape going for it. The squat four-legged lander stands 6-foot-6-inch tall and 11 feet wide, providing extra stability, according to the company.

Launched in mid-January from Florida, the lander carried 10 experiments to the moon for NASA. The space agency paid $101 million for the delivery, plus $44 million for the science and tech on board. It’s the third mission under NASA’s commercial lunar delivery program, intended to ignite a lunar economy of competing private businesses while scouting around before astronauts show up later this decade.

Firefly’s Ray Allensworth said the lander skipped over hazards including boulders to land safely. Allensworth said the team continued to analyze the data to figure out the lander's exact position, but all indications suggest it landed within the 328-foot target zone in Mare Crisium.

The demos should get two weeks of run time, before lunar daytime ends and the lander shuts down.

It carried a vacuum to suck up moon dirt for analysis and a drill to measure temperature as deep as 10 feet below the surface. Also on board: a device for eliminating abrasive lunar dust — a scourge for NASA’s long-ago Apollo moonwalkers, who got it caked all over their spacesuits and equipment.

On its way to the moon, Blue Ghost beamed back exquisite pictures of the home planet. The lander continued to stun once in orbit around the moon, with detailed shots of the moon's gray pockmarked surface. At the same time, an on-board receiver tracked and acquired signals from the U.S. GPS and European Galileo constellations, an encouraging step forward in navigation for future explorers.

The landing set the stage for a fresh crush of visitors angling for a piece of lunar business.

Another lander — a tall and skinny 15-footer built and operated by Houston-based Intuitive Machines — is due to land on the moon Thursday. It’s aiming for the bottom of the moon, just 100 miles from the south pole. That’s closer to the pole than the company got last year with its first lander, which broke a leg and tipped over.

Despite the tumble, Intuitive Machines' lander put the U.S. back on the moon for the first time since NASA astronauts closed out the Apollo program in 1972.

A third lander from the Japanese company ispace is still three months from landing. It shared a rocket ride with Blue Ghost from Cape Canaveral on Jan. 15, taking a longer, windier route. Like Intuitive Machines, ispace is also attempting to land on the moon for the second time. Its first lander crashed in 2023.

The moon is littered with wreckage not only from ispace, but dozens of other failed attempts over the decades.

NASA wants to keep up a pace of two private lunar landers a year, realizing some missions will fail, said the space agency's top science officer Nicky Fox.

“It really does open up a whole new way for us to get more science to space and to the moon," Fox said.

Unlike NASA’s successful Apollo moon landings that had billions of dollars behind them and ace astronauts at the helm, private companies operate on a limited budget with robotic craft that must land on their own, said Firefly CEO Jason Kim.

Kim said everything went like clockwork.

“We got some moon dust on our boots," Kim said.

Houston startup Nap Bar pivots with VR and big plans for growth

power nap

Houston’s Khaliah Guillory takes a 30-minute nap every day. She says this is how she’s so productive.

The habit also led to the founding of her white-glove, eco-friendly rest sanctuary business, Nap Bar.

Guillory launched the luxury sleep suites company back in 2019 to offer a unique rest experience with artificial intelligence integration for working professionals, entrepreneurs and travelers who needed a place to rest, recharge and rejuvenate. The company was named a Houston Innovation Awards finalist last year.

She says naps are backed by science. And by her professional network, too.

“Once I polled and surveyed my friends, most of them said that they also took naps during their lunch break, whether it be in their office or in their car,” says Guillory, former vice president of marketing strategy at Wells Fargo. “Once they overwhelmingly agreed that they would absolutely use a dedicated place for them to take naps if I created it, I got to work, and Nap Bar was born.”

Simply put, Guillory has effectively made it acceptable and, yes, even cool for working adults to take naps.

“I played D1 basketball at the University of Central Florida and that’s really where I learned the art of a power nap and the benefits of it,” Guillory says. “And I just continued to nap throughout my corporate career. So, in November of 2018, I retired from corporate America … I just knew I had a higher calling to do something else.”

Guillory first opened up shop in Rice Village as a beta test for her novel nap idea and it took off. She soon forged strategic partnerships with organizations like UT Health, where Nap Bar provided much-needed naps to postpartum mothers.

“Nap Bar showed what the benefits of a good nap was, specifically to postpartum moms in terms of mental stressors, productivity, and things of that nature,” Guillory says.

In November 2019, Guillory moved Nap Bar to The Galleria and says the business produced revenue from day one. However, in March 2020, she was forced to shut us down due to the COVID-19 pandemic.

“I promised myself that I was not going back to corporate America, so I pivoted. I moved forward by creating a better sleep box, with a vegan pillow mist and soy-based candle. I also became a certified sleep coach. And I just kept pivoting from there, reinventing Nap Bar as a company,” she says.

One pivot included adding a virtual reality sleep experience, MetaSnooze.

“MetaSnooze is a really cool technology that offers sleep therapy and relaxation that I curated myself,” Guillory says. “Basically, the user puts on the VR headset, and it escapes them. They're transported to places all over the country. For example, they're sitting in serene environments all the while listening to these rhythmic beats that are designed to help them release and relax. Visualizations have been scientifically proven to improve one’s mental health and mental stressors.”

Guillory initially rolled out MetaSnooze in 2020 at events like South by Southwest and kept improving the experience and building her business. By February 2024, she was curating a wellness experience at The Grammy Awards.

“That was huge for us,” Guillory says. “Being able to get feedback from the celebrities, with a handful of them even inquiring where they could purchase the headset. They were excited about the future of Nap Bar, so that was really, really cool.”

The widespread interest in Nap Bar has Guillory thinking big. She aims to expand to 30 locations in three years.

“When I say that, it sounds ambitious,” says Guillory. “It is, but I come from the school of thought that if you shoot for 30 and you get 25, no one's going to shake their finger at you for doing that, right? It's really aiming towards this big, hairy, audacious goal. I learned that in corporate America. So, what we're looking to do now is raise money like crazy.”

Guillory says she’s now looking to scale the business by partnering with like-minded investors with experience in the wellness space.

She envisions locations at national and international airports, which she says offer ripe scenarios for patrons needing to recharge. Additionally, Guillory wants to build on her initial partnership with UT Health by going onsite to curate rest experiences for patients, caregivers, faculty, staff, nurses and doctors. Colleges also offer an opportunity for growth.

“We’ve done some really cool pop-ups with the University of Houston, where we brought the rest experience on campus,” Guillory says. “That means we bring a portable, full-size, organic mattress with disposable sheets, as well as our virtual reality experience.”

Nap Bar will also serve companies, office buildings, and even sports venues, according to Guillory.

“We can literally go any and everywhere,” she says. “Our collected data suggests that we’ve just got to go where sleepy people are so that they can get restorative sleep.”

From a pricing standpoint, Nap Bar’s model is a dollar a minute. Depending on where the client is, the pop-up experience is based on a day rate or a half-day rate, starting at $4,000.

Add-ons include a full-size organic mattress or hosting a masseuse or massage therapist onsite.

With the Grammys already under her belt, Guillory would like to see Nap Bar utilized at the 2028 Olympics and build partnerships with other virtual reality companies to bring its licensed MetaSnooze software to the masses.

She also sees opportunities in athletic treatment, sleep apnea, and insomnia.

“We have done several studies with proven results that MetaSnooze has reduced mental stressors and anxiety,” Guillory says. “I'm excited about what the future holds for MetaSnooze. It definitely is a game-changer … We will continue to innovate sleep or provide sleep resources and tools in a very innovative way.”

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