Houston-based energy tech investor Neal Dikeman writes his observations on Houston's venture capital and startup community's growth — in stark comparison of Silicon Valley's recent evolution. Photo courtesy of the Ion

There's stretch of sleek low rise office buildings in Palo Alto — referred to as Sandhill Road — that has long been the center of Silicon Valley (and the world’s) venture capital sector. An investor friend of mine told me recently that Sandhill Road is a ghost town these days, with the key partners at many of the Silicon Valley venture funds largely working from home or at their second homes.

That’s disappointing if true, but not surprising. Commuting sucks, and this business is a lot more far flung and global than it used to be. The venture capital business is always a wild and fun ride, focused on founders and the next big thing, with constant movement and alliances and partnerships.

I’ve been in these waves since I began investing during the dotcom boom in 2000, making the jump from private equity to venture capital in San Francisco at a fund behind Yellowpages.com and a few others, before co-leading a prior firm I founded in San Francisco doing seed investing and advising funds and investment arms of Macquarie Bank, ConocoPhillips, and Shell. We got in on the ground floor of cleantech and did well. This is my third major VC downcycle – there is always opportunity on both sides, and the more things change, the more they stay the same in venture capital. Hubs matter, because the business is heavily a critical mass of talent and capital business, with a power curve of outcomes. Cutthroat as venture capital and startups are, it is not private equity. You do need partners.

Houston has long lacked a center of gravity at all, let alone in tech. You might try rereading the 2001 Economist headline article “The Blob that Ate East Texas” for some humorous color on that score. But in tech, that’s changing.

Rice University’s Ion Houston innovation district project came out of some of the Greater Houston Partnership work a few years ago on how to get a serious tech hub going (I briefly served on the GHP affiliated Houston Technology Center board for Royal Dutch Shell during that revamp). After a slow start, Ion has begun to fill up with tech startups and bona fide check writing investors to go with the constant barrage of startup programming on its Ion Activation Floor and adjacent Greentown Labs incubation building.

Chevron Technology Ventures opened a guest office on day one on the third floor and Houston private equity and sometime crossover VC investor Ara Partners took early space with its headquarters in the building across the hall from them. Local fund of funds HX Venture Fund, which was created out of that GHP/HTC revamp and also puts on the Venture Houston Conference, moved in on the second floor.

Our fund, Energy Transition Ventures, was the first venture capital fund to move into the Ion when we launched in 2021, is located two doors down from HXVF. My partners and I made the call to make Houston our headquarters over Austin where my partner, Craig Lawrence, is located. He’s a former energy tech and solar executive who learned venture investing leading the successful cleantech effort at Accel Partners in Palo Alto. We are both Texas educated, Bay Area venture capital alums who are doing venture capital in Texas because it’s our home. Our third partner, Q Song, moved from Korea to the US, picking Houston over Austin and our Bay Area office to join us.

Houston was not the obvious choice – it still isn’t – I got nostalgia when driving through Austin and San Francisco in the last week seeing the sheer mass of tech and venture capital names to do business with, but doing things our own way is kind of our brand. We chose the Ion, because well, venture capital and startup life is a participation not a spectator sport, and if Houston was ever going to have a shot at being an investment hub, it needed an actual hub, and founders needed a place to go meet venture capitalists, and that won’t work if venture capitalists all work out of their homes or alone in some energy corridor or downtown high rise.

In our hallway of the Ion, you pass HX Venture Fund, Decarbonization Partners, Energy Transition Ventures, and WaterLens, a water testing startup which spun out of UT many years ago, all next door to each other at one end. And at the other end BP Ventures — with a newly added ExxonMobil venture capital team guest suite adjacent — next to water and energy pipeline corrosion detection software and hardware startup INGU, a Chevron Technology Ventures-backed startup, which is adjacent to one of Houston’s largest venture-backed SaaS companies, Liongard. That’s a half a dozen tech startup founders and a dozen investors across all stages in 125 feet.

I can count approximately 20 other startups in the building now, still heavily skewed to energy. Across the floor, Artemis Energy Partners and Veriten, run respectively by Houston energy fixtures Bobby Tudor and Maynard Holt two of the three Tudor Pickering Holt founders, have their offices, with Schlumberger and hydrogen software startup Velostics which just announced its seed round sandwiched in between. The co-founder of Tierra Climate, a Rice spinout that also just announced its seed round works out of the coworking, and Eigen Controls is building GHG detection equipment around the corner a few feet from an Edtech and medtech startup, and renewable energy services startup Clean Energy Services is headquartered a few feet from the entrance.

Since we moved in, GOOSE Capital, a Houston investment group launched out of Rice at the Rice Alliance Business Competition two decades ago, put its offices in the Ion Activation Floor, and you can quietly find their Managing Director Andrew Nicholson trooping up and down the stairs. BP Ventures then pulled the trigger in 2022 – and moved its US venture capital investing team HQ to the Ion — right down the hallway from us. Chad Bown who manages the US team is sitting in a phone booth 100 feet from me and Chris Spears is listening on pitches as I type this. And this month Decarbonization Partners, the climate growth fund of BlackRock and Temasek, opened its office next door to mine in between us and HX, with three investment professionals, led by David Hayes, formerly with BP Ventures. Aramco Ventures, now led by the former Energy Ventures US head Jim Sledzik, began weekly Friday morning office hours. Jim can often be grabbed for a casual chat on his way between meetings on a regular basis, as can Luis Alcoser or Kemal Anbarci who pop in and out of the Chevron Technology Ventures visiting offices on third floor, with Veriten, which just announced an investment fund, and now Artemis joining recently.

The Houston pool of high quality founders and startups has definitely improved as well – though we still don’t have the quantity or quality of teams needed for a healthy startup market. Blair Garrou from Mercury Fund was part of a recent panel for the Texas Venture Crawl at the Ion along with BP Ventures’ Ion based Grace Chan talking about why Houston, and he remarked that in their earlier funds, Mercury was 5 to 10 percent Houston startups, having to go far afield to fill up even one fund - but his recent fund is closer to 25 percent Houston based, as local team quality has improved.

Houston venture capital is two orders of magnitude smaller than the Bay Area – it’s about like writing an article asking whether Silicon Valley is the emerging Energy Corridor. But it’s nice to have coffee and beers with next door neighbors who are actually investing in, and founders who are actually running, venture backed businesses. Founders are learning that Houston’s venture investment and tech scene has an actual home these days, and is open for business.

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Neal Dikeman is a venture capitalist and seven-time startup co-founder investing out of Energy Transition Ventures.

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Trailblazing Houston entrepreneur brings big ideas to new Yahoo Finance show

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Elizabeth Gore, co-founder and president of Houston's Hello Alice, debuted the first episode of her new video podcast series with Yahoo Finance on Thursday, April 24.

The weekly series, known as "The Big Idea with Elizabeth Gore," will focus on providing information and resources to small business owners and sharing stories of entrepreneurship, according to a news release from Yahoo Finance.

“Entrepreneurs and small business owners drive our country’s economy forward. With a record number of small businesses launching in our communities, my goal is to help every citizen live the American Dream. On the Big Idea, we will break down barriers for entrepreneurs and lift up opportunities for every person wanting to be their own boss,” Gore said in the release.

“By hosting the 'Big Idea' on Yahoo Finance, I’m looking forward to elevating business owners’ stories and providing actionable insights to small business owners at a scale like never before. I am blown away to be joining the number one finance news source that is already trusted by so many.”

Gore was joined by Hello Alice co-founder and CEO Carolyn Rodz in the premiere episode, titled "Got a big idea for a small business? Here's your first step," to discuss the steps they took when launching the business.

Gore and Rodz founded Hello Alice in 2017. The fintech platform supports over 1.5 million small businesses across the nation. It has helped owners access affordable capital and credit and distributed over $57 million in grants to businesses across various industries. The company raised a series C round backed by Mastercard last year for an undisclosed amount and reported that the funding brought the company's valuation up to $130 million at the time.

According to Yahoo Finance, Gore's experience and expertise build on its "mission to be the trusted guide of financial information to all investors, and democratize access to quality content."

“Over the past year, we invested in expanding our programming lineup with the launch of new shows and podcasts, and welcomed new financial creators and influencers into our newsroom,” Anthony Galloway, head of content at Yahoo Finance, added the release. “By diversifying our programming and talent roster, Yahoo Finance is introducing unique points-of-view that make financial topics more engaging, actionable, and personalized. Small business owners are a vital part of our audience, so we’re excited to welcome Elizabeth Gore from Hello Alice, whose insights and expertise will help us serve and connect with this important cohort in meaningful ways.”

The show is available on Spotify, Apple Podcasts, iHeart, Pandora, and Amazon Music for listening. Streamers can view it on yahoofinance.com, Amazon Prime Video, Samsung TV, Fire TV, Vizio, Haystack, DirectTV and other streaming platforms. Watch the premiere here:

7 top Houston researchers join Rice innovation cohort for 2025

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The Liu Idea Lab for Innovation and Entrepreneurship (Lilie) has announced its 2025 Rice Innovation Fellows cohort, which includes students developing cutting-edge thermal management solutions for artificial intelligence, biomaterial cell therapy for treating lymphedema, and other innovative projects.

The program aims to support Rice Ph.D. students and postdocs in turning their research into real-world solutions and startups.

“Our fourth cohort of fellows spans multiple industries addressing the most pressing challenges of humanity,” Kyle Judah, Lilie’s executive director, said in a news release. “We see seven Innovation Fellows and their professors with the passion and a path to change the world.”

The seven 2025 Innovation Fellows are:

Chen-Yang Lin, Materials Science and Nanoengineering, Ph.D. 2025

Professor Jun Lou’s Laboratory

Lin is a co-founder of HEXAspec, a startup that focuses on creating thermal management solutions for artificial intelligence chips and high-performance semiconductor devices. The startup won the prestigious H. Albert Napier Rice Launch Challenge (NRLC) competition last year and also won this year's Energy Venture Day and Pitch Competition during CERAWeek in the TEX-E student track.

Sarah Jimenez, Bioengineering, Ph.D. 2027

Professor Camila Hochman-Mendez Laboratory

Jimenez is working to make transplantable hearts out of decellularized animal heart scaffolds in the lab and the creating an automated cell delivery system to “re-cellularize” hearts with patient-derived stem cells.

Alexander Lathem, Applied Physics and Chemistry, Ph.D. 2026

Professor James M. Tour Laboratory

Lathem’s research is focused on bringing laser-induced graphene technology from “academia into industry,” according to the university.

Dilrasbonu Vohidova is a Bioengineering, Ph.D. 2027

Professor Omid Veiseh Laboratory

Vohidova’s research focuses on engineering therapeutic cells to secrete immunomodulators, aiming to prevent the onset of autoimmunity in Type 1 diabetes.

Alexandria Carter, Bioengineering, Ph.D. 2027

Professor Michael King Laboratory

Carter is developing a device that offers personalized patient disease diagnostics by using 3D culturing and superhydrophobicity.

Alvaro Moreno Lozano, Bioengineering, Ph.D. 2027

Professor Omid Veiseh Lab

Lozano is using novel biomaterials and cell engineering to develop new technologies for patients with Type 1 Diabetes. The work aims to fabricate a bioartificial pancreas that can control blood glucose levels.

Lucas Eddy, Applied Physics and Chemistry, Ph.D. 2025

Professor James M. Tour Laboratory

Eddy specializes in building and using electrothermal reaction systems for nanomaterial synthesis, waste material upcycling and per- and polyfluoroalkyl substances (PFAS) destruction.

This year, the Liu Lab also introduced its first cohort of five commercialization fellows. See the full list here.

The Rice Innovation Fellows program assists doctoral students and postdoctoral researchers with training and support to turn their ideas into ventures. Alumni have raised over $20 million in funding and grants, according to Lilie. Last year's group included 10 doctoral and postdoctoral students working in fields such as computer science, mechanical engineering and materials science.

“The Innovation Fellows program helps scientist-led startups accelerate growth by leveraging campus resources — from One Small Step grants to the Summer Venture Studio accelerator — before launching into hubs like Greentown Labs, Helix Park and Rice’s new Nexus at The Ion,” Yael Hochberg, head of the Rice Entrepreneurship Initiative and the Ralph S. O’Connor Professor in Entrepreneurship, said in the release. “These ventures are shaping Houston’s next generation of pillar companies, keeping our city, state and country at the forefront of innovation in mission critical industries.”

Houston startup Collide secures $5M to grow energy-focused AI platform

Fresh Funds

Houston-based Collide, a provider of generative artificial intelligence for the energy sector, has raised $5 million in seed funding led by Houston’s Mercury Fund.

Other investors in the seed round include Bryan Sheffield, founder of Austin-based Parsley Energy, which was acquired by Dallas-based Pioneer Natural Resources in 2021; Billy Quinn, founder and managing partner of Dallas-based private equity firm Pearl Energy Investments; and David Albin, co-founder and former managing partner of Dallas-based private equity firm NGP Capital Partners.

“(Collide) co-founders Collin McLelland and Chuck Yates bring a unique understanding of the oil and gas industry,” Blair Garrou, managing partner at Mercury, said in a news release. “Their backgrounds, combined with Collide’s proprietary knowledge base, create a significant and strategic moat for the platform.”

Collide, founded in 2022, says the funding will enable the company to accelerate the development of its GenAI platform. GenAI creates digital content such as images, videos, text, and music.

Originally launched by Houston media organization Digital Wildcatters as “a professional network and digital community for technical discussions and knowledge sharing,” the company says it will now shift its focus to rolling out its enterprise-level, AI-enabled solution.

Collide explains that its platform gathers and synthesizes data from trusted sources to deliver industry insights for oil and gas professionals. Unlike platforms such as OpenAI, Perplexity, and Microsoft Copilot, Collide’s platform “uniquely accesses a comprehensive, industry-specific knowledge base, including technical papers, internal processes, and a curated Q&A database tailored to energy professionals,” the company said.

Collide says its approximately 6,000 platform users span 122 countries.

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This story originally appeared on our sister site, EnergyCapitalHTX.com.