Houston startup raises nearly $2M to expand logistics SaaS platform

seed funding

Velostics has raised additional funding to grow its logistics software. Photo via velostics.com

A Houston company that's providing innovative unified scheduling software for the logistics industries has raised additional seed funding.

Houston-based Velostics Inc. raised $1.95 million, the company announced this week. The additional seed round follows a $2.5 million round announced in 2021. The Velostics platform optimizes scheduling for inbound and outbound trucks, saving companies money across the supply chain and resulting in fewer emissions from idling trucks.

“Scheduling is a major headache for all parties focused on reducing cost and delivering on high customer expectations — our cloud based solution is designed to go live in one day with no apps required,” Gaurav Khandelwal, founder and CEO of Velostics, says in a news release.

Houston-based Starboard Star Venture Capital led the round, and Flyover Capital and Small Ventures USA, both previous investors in Velostics, contributed too. Additionally, Mexico-based Capital Mazapil joined in as a new investor. The family office has close ties to a leading CPG company with a global footprint of manufacturing plants and distribution warehouses, per the news release.

“At a time where all costs are increasing, Velostics has a proven solution that brings real cost savings and more importantly, increased capacity to manufacturing facilities, warehouses and fuel terminals," Keith Molzer, founding partner at Flyover Capital, says in the news release.

Khandewal founded Velostics in 2019 after seeing the business opportunity through ChaiOne, a Houston software company he's run since 2009. In an episode of the Houston Innovators Podcast, he shared the story of Velostics and why he thinks the city has a great opportunity to be a leader in logistics technology.

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Velostics has fresh funding to support growing its logistics software solution. Photo courtesy of Velostics

Exclusive: Houston logistics SaaS startup raises $2.5M seed round

money moves

A Houston company that's providing software solutions for middle-mile logistics challenges has raised fresh funding.

Velostics Inc., which has an enterprise software-as-a-service model that specializes in automating inbound logistics at industrial facilities — like terminals and warehouses — announced it has raised $2.5 million. The seed round was led by Kansas-based Flyover Capital with participation from Small Ventures USA, Cultivation Capital, Starboard Star, Congress Avenue Ventures and BioUrja Ventures.

Founded by Gaurav Khandewal, Velostics targets the $37 billion inbound logistics management market, a so-called "log jam" for businesses that the company's software strives to make flow a lot more optimally.

“Flyover is incredibly excited to support the Velostics team in their mission to transform inbound logistics,” says Keith Molzer, managing partner at Flyover Capital. “This segment of the supply chain is ripe for better technology to address challenges of congestion, driver labor shortages, and the growing demands of ecommerce. Gaurav and team are an exceptional group of entrepreneurs ready to drive efficiency and a better customer experience at industrial facilities.”

The fresh funding will go toward recruiting top talent for Velostics's team, particularly in its account management, inside sales, and marketing departments, as well as continuing to develop the AI-driven product, which has an impact for both its users and the environment.

“Idling trucks waiting outside facilities emit over 42 million tons of CO2 annually — eight times the US national average. By orchestrating the movement of trucks in and out of facilities, not only do we provide tremendous supply chain benefits, we also help the environment," Khandewal says in the release. "We’re excited to partner with our customers and our investors to solve global congestion.”

Flyover Capital was founded in 2014 and has a keen interest in the Houston market, Dan Kerr, principal at the firm, previously told InnovationMap.

Houston is "one of the cities among those that fall in our region where we plan to spend a significant amount of time," Kerr said in May of last year. "We cover a lot of ground, but there are certain cities were we try to get there quarterly. Houston is definitely one of those places."

In September, Khandewal joined the Houston Innovators Podcast and discussed how he has been a champion of Houston innovation since he started ChaiOne in 2009. He shared how he thinks the city has a great opportunity to be a leader in logistics technology.

"I think that there are some trends in Houston that I'm seeing as a founder, and one of them is logistics," Khandewal says on the show.

Gaurav Khandelwal, CEO and founder of ChaiOne and Velostics Gaurav Khandelwal is the CEO and founder of Velostics. Photo courtesy

Despite the effect COVID-19 has had on Houston venture capital, this Kansas City, Missouri-based VC is looking to continue to connect with the local tech scene remotely. Getty Images

Out-of-state VC firm with eyes on Houston actively — but cautiously — continues to invest amid COVID-19

money moves

A Kansas City, Missouri-based venture capital firm has had its eyes on Houston since fall of last year, and it's not letting the pandemic slow down its immersion into the local startup ecosystem.

Flyover Capital focuses on tech startups based in the middle of the country — from Denver to Atlanta, and the Twin Cities down to Houston. Usually funding seed to series A rounds, Flyover's thesis is geared at "creating the next generation of tech success stories outside traditional tech hubs," says Dan Kerr, principal at the firm.

This region, which Crunchbase dubbed "The Mighty Middle" in a recent report, has seen a growth in venture capital invested over the past decade. Annual investment grew from $5.8 billion invested in 2010 to $20.2 billion in 2019 alone, according to the report, and Texas is leading the pack. The Lone Star State accounted for $24 billion of the region's $92.6 billion venture capital invested in the past decade, per the report.

Flyover Capital, which was founded in 2014, has connected a couple dozen Houston startups in the past six months, Kerr says, and the firm is keeping up with several of those to this day. He predicts the firm will "dive in deeper" into some of those companies in the next six months.

Houston is "one of the cities among those that fall in our region where we plan to spend a significant amount of time," Kerr tells InnovationMap. "We cover a lot of ground, but there are certain cities were we try to get there quarterly. Houston is definitely one of those places."

Kerr says his first impression of Houston was its strength as a B2B — especially as that pertains to its entrepreneurs.

"There are a lot of people who are experienced in their career, maybe with a technical background, and are looking to build a business going after some problem that they see," Kerr says.

In a similar vein, Houston's corporate involvement with its startup ecosystem has been a big indicator of opportunity.

"One of the things we've identified as a strength in a lot of the middle America ecosystems is if they get the corporations involved, then that is a good marker for success, especially if you have some of the other ingredients involved," Kerr says.

Houston Exponential, which Kerr says has been helpful in allowing Flyover to tap into the ecosystem — especially in times like these — has also demonstrated Houston's strength as a B2B community with deep corporate connections.

And Flyover isn't the only VC firm that HX has seen interest from recently. This month, HX has planned more immersion days — where it connects VCs to startup development organizations and startups across town — than it's ever had in a single month, says Harvin Moore, president of HX. The immersion days will be happening completely online.

"It's clear from the indication that we get from VCs and angel networks that people are saying, 'Okay, we need to be looking for new deals,'" Moore says.

For Flyover Capital, Kerr describes the VC as "active, but of course cautious" when it comes to investing in new deals in the current economic environment.

"We're not alone in saying we're actively investing," Kerr says. "I think I've seen some surveys that 60 or so percent of investors are saying they're staying the course."

In fact, finding a positive spin, Kerr says the pandemic has had a "moderating effect" to the investment environment. "Rounds were happening in some cases in a crazy manner," he says of pre-COVID conditions.

Plus, while he hasn't seen a huge change to valuations, the economic conditions caused by COVID-19 could correct some of the over-valuations on the coasts.

"As unfortunate as these times are for lots of people, this is where many companies ultimately find their footing and success," Kerr says.

From entrepreneur networking opportunities to thought-provoking panels, here's where you need to be in December. Getty Images

10+ can't-miss Houston business and innovation events for December

Where to be

Before everyone checks out of 2019, Houston has a couple more weeks filled with exciting entrepreneurial networking opportunities. Scroll through the curated list of innovation events you can't miss.

For a full calendar of Houston innovation events, head to Houston Exponential's page.

If you know of innovation-focused events for this month or next, email me at natalie@innovationmap.com with the details and subscribe to our daily newsletter that sends fresh stories straight to your inboxes every morning.

December 3 — Intro to the Houston Startup Scene & Ask Me Anything with Omair Tariq and Dr. Brittany Barreto

Are you new to the Houston tech startup community? Thinking about moving here? Trying to figure out how to plug in? Come hear a comprehensive overview from local community leaders and get a chance to introduce yourself and ask questions at the Intro to the Houston Startup Scene & Ask Me Anything. Tickets are $10.

Details: The event is from 4 to 7 pm on Tuesday, December 3, at The Cannon (1334 Brittmoore Road). Learn more.

December 3 — Houston Coalition for Equitable Development without Displacement community forum

The Houston Coalition for Equitable Development without Displacement is gathering for a second time to discuss securing a Community Benefits Agreement with Rice Management Company as they develop the 16-acre Innovation District around the old Sears building and Fiesta at the edge of Third Ward.

Details: The event is from 6 to 8 pm on Tuesday, December 3, at Wesley Chapel AME Church (2209 Emancipation Ave.). Learn more.

December 3-4 — InvestH2O 2019 Forum: Investing in Resiliency

With nearly $1 trillion in losses over the past 5-7 years for FEMA and other federal agencies, states-counties-cities, private insurance and reinsurance companies, industry and business operations from water- and weather-related incidents, the need for alternative investment and resource allocation could not be more obvious. The event's programming will be focused on innovating solutions.

InnovationMap readers can attend for free through this link.

Details: The event is from Tuesday, December 3, to Wednesday, December 4, at various locations. Learn more.

December 4 — The Cannon & EPIcenter - Jumpstart your innovation Happy Hour

In partnership with The Cannon, EPIcenter's Incubator and Accelerator will be hosting a six-week seminar using the Wendy Kennedy curriculum, "So what? Who cares? Why you?" for innovators in any industry. Director of the EPIcenter Energy Incubator and Accelerator and certified Business Coach Andi Littlejohn will lead participants through a proven methodology to discover, define and describe the commercial opportunities of innovations.

Details: The event is from 4 to 6 pm on Wednesday, December 4, at The Cannon (1334 Brittmoore Road). Learn more.

December 4 — The Ion Smart Cities Accelerator Demo Day

The Ion Smart Cities Accelerator will present its inaugural cohort of companies that are addressing the needs of Houston's people by deploying technology into the infrastructure and civic fabric that makes Houston so strong.

Details: The event is from 5 to 8 pm on Wednesday, December 4, at ion Accelerator and Prototyping Lab (1301 Fannin Street, Suite 2100). Learn more.

December 5 — Houston Region Economic Outlook

The Greater Houston Partnership's Annual Houston Region Economic Outlook event will feature Partnership Senior Vice President of Research Patrick Jankowski who will deliver the 2020 employment forecast for the region. ConocoPhillips Chief Economist Helen Currie will follow with a presentation on the national economy.

Details: The event is from 9:30 am to 1:30 pm on Thursday, December 5, at the Royal Sonesta (2222 West Loop S.). Learn more.

December 5 — Evening of Pediatric Device Innovation

Please join JLABS @ TMC for the 5th Annual Evening of Pediatric Device Innovation as top experts from Houston and across the country will discuss the latest in pediatric medical device innovation and updates on bringing a pediatric medical device to market.

Details: The event is from 3 to 6:30 pm on Thursday, December 5, at the TMC Innovation Institute (2450 Holcombe Blvd). Learn more.

December 5 — Meet & Greet with Flyover Capital

Meet Flyover Capital's Dan Kerr on his last night in town and learn how they are working to creating the next generation of technology success stories outside the coastal tech hubs.

Details: The event is from 6 to 7:30 pm on Thursday, December 5, at WeWork (708 Main Street, 3rd Floor). Learn more.

December 11 — ENRICH/LEAP Information Session

ENRICH and LEAP are 6-8 week fellowship programs where you and a team of your peers will work directly with established companies on one of a wide scope of projects. These invaluable programs allow people the ability to gain skills and insights that only professional work can offer. Come hear Enventure leadership discuss these programs and learn how you can get involved.

Details: The event is from 5:30 to 8 pm on Wednesday, December 11, at the TMC Innovation Institute (2450 Holcombe Blvd). Learn more.

December 12 — WeWork Labs x NextSeed Launch Event

WeWork Labs, a global acceleration program with a location in downtown Houston, and NextSeed, a Houston-based online investment platform, have announced a partnership set to begin in December. Together, the two entities will build a support system for Houston-based food entrepreneurs to provide workshops, programming, events, and more.

Details: The event is from 6 to 8:30 pm on Thursday, December 12, at WeWork (708 Main Street). Learn more.

December 14 — Smart Infrastructure Hackathon

On Saturday, December 14, join Microsoft and The Cannon for a smart infrastructure hackathon. Bring your own ideas and team, or join a team when you arrive. Everyone is welcome, regardless of skill level.

Details: The event is from to 9 am to 7 pm on Saturday, December 14, at The Cannon (1334 Brittmoore Road). Learn more.

December 14 — TEDxHoustonWomen 2019 : BOLD + Brilliant!

Connect with a locally rooted, globally connected community of people interested in leading the change they wish to see in the world; and sow the seeds to collaborate with innovative thinkers who catalyze ideas toward action.

Details: The event is from 10:30 am to 4 pm on Saturday, December 14, at Unity of Houston (2929 Unity Dr). Learn more.

December 17 — The Future of Work: Closing the Skills Gap

GA gathers Houston industry leaders to share how they approach the challenge of upskilling the workforce. In this discussion, we'll cover how to bridge the gap between current team capabilities and the skills needed to stay competitive. Whether radically reskilling existing teams or onboarding new talent, the companies who adapt fastest will stand the test of time.

Details: The event is from 8:30 to 11 am on Tuesday, December 17, at Station Houston (1301 Fannin Street, 21st Floor). Learn more.

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MD Anderson president to retire after nine years, interim successor named

retirement plan

An era is ending at The University of Texas MD Anderson Cancer Center.

On Aug. 26, Dr. Peter WT Pisters announced his plans to retire from his role as president of the comprehensive cancer center. He will work on a smooth transition of leadership with interim president Dr. Jeffrey E. Lee throughout September.

“I first arrived at UT MD Anderson 32 years ago with a passion for doing everything I could to advance our mission to end cancer. Serving as the only faculty member to become president, and now marking nine years in the role, I can say with great pride and gratitude that there is no better place than UT MD Anderson to turn hope into healing for patients and families everywhere,” Pisters said in a news release. “With a timeless strategy, a strong leadership team, unprecedented levels of financial health, and a priceless culture anchored in our deeply held Core Values, now is the right time for me to transition to other opportunities. UT MD Anderson has never been stronger, and its future has never been brighter.”

Pisters assumed the presidency in 2017 and helped launch some of the most cutting-edge new clinics in MD Anderson history. One of those was the James P. Allison Institute, named for the Nobel Laureate scientist who discovered a way to suppress immune response on tumors so that immune cells would attack cancer cells instead. As head of his titular clinic, Allison pioneered several new immunotherapies against cancer.

Pisters also oversaw the creation of the Institute for Data Science in Oncology in 2024, an innovative consortium of scientists dedicated to enhancing single-cell imaging to improve precision in cancer treatments. The institute also brought together teams to use data-driven analytics regarding safety, quality and access.

The UT System Board of Regents praised the leadership and work of Pisters in a statement, wishing him well in the next phase of his career.

“The Board of Regents and I are profoundly grateful to Dr. Pisters for his exceptional presidency over the past nine years and for thoughtfully concluding his service when UT MD Anderson is thriving at its best position of peak performance, strength and impact. We wish him our very best with his retirement and in his next chapter,” Kevin P. Eltife, chairman of the UT System Board of Regents, added in the release.

Houston e-commerce giant Cart.com launches government-focused subsidiary

government branch

Houston e-commerce and logistics unicorn Cart.com has launched a new subsidiary.

Cart Government Solutions (CGS), which was announced earlier this week, will provide supply chain and logistics services and software for the federal and state government sectors. The new subsidiary will be headquartered in Washington, D.C., and operate out of about 6 million square feet of secure warehouse space across 14 U.S. facilities, according to a news release from Cart.com. It will support both domestic and overseas logistics.

Industry veteran Gregg Zegras will lead the new entity as president. Zegras previously served as Cart.com's chief revenue officer, according to LinkedIn. Before that, he served as president of Connecticut-based Pitney Bowes Global eCommerce, a digital shipping solutions company.

Remington Tonar, Cart.com's co-founder, will serve as CGS's chief innovation officer.

“Government agencies face procurement and logistics challenges that many commercial platforms simply weren’t built to solve,” Zegras said in the news release. “Cart Government Solutions exists to change that. We’re combining the speed and innovation of a technology company with the compliance rigor, security, and operational depth that federal and state customers require, and we’re doing it with a team that has spent careers working alongside and inside these agencies.”

According to the company, CGS will focus on meeting compliance and security requirements in the public sector. Some of the services the new entity will offer include:

  • Inventory management
  • Cold-chain and specialty storage for pharmaceuticals, medical devices and regulated goods
  • Enterprise-grade supply chain software
  • Government-compliant webstores and online ordering portals
  • Cybersecurity operations

Cart.com has been serving the public sector since 2022, when the company began distributing COVID-19 health supplies nationwide, according to the news release. Through that pandemic-era contract, the company reports it moved more than 725 million units, with an average of under two days per shipment.

Cart.com was founded in Houston in 2020, though it briefly moved its headquarters to Austin. The company reached unicorn status with its $60 million Series C raise in 2023. It most recently raised $180 million in growth capital from private equity firm Springcoast Partners in March, which put the startup over the $1 billion in fundraising mark in just six years.

At the time, Cart.com said it planned to scale its logistics network, expand AI capabilities and develop workflow automation tools.

Houston-based KBR Inc. also recently launched a government services spinoff. Read more here.

2 Houston universities named best colleges of 2027 by Princeton Review

A-Plus Ratings

Back-to-school season has returned in full force, and that means it's time for college rankings. Two Houston universities in particular are being hailed as the top of the class for 2027.

The high caliber schools — Rice University and University of Houston — earned new acclaim in The Princeton Review's ranking of the "Best 392 Colleges" for 2027.

The Princeton Review's 35th annual "Best Colleges" rankings are determined by a survey of 172,000 current college students that gave "candid feedback" about their schools and their experiences. The flagship guide does not rank the schools overall, but it does rank them across 50 different categories, including best-run colleges, best quality of life, happiest students, best athletic facilities, among others.

In all, 14 Texas institutions were highlighted in the overall list of the 392 best colleges.

Schools don't pay to be included in the guide, but The Princeton Review clarified that schools could pay for a "featured" designation. No Houston university paid to be featured in this year's guide. Trinity University in San Antonio and Southwestern University, a private school in the Austin suburb Georgetown, were the only two Texas schools that paid to be "featured."

Rice and UH have been on a winning streak in separate reports of the best universities worldwide, best graduate schools, and best online degree programs.

In addition to being included in the overall list, Rice was highlighted as one of the Best Value Colleges, Colleges That Create Futures, and it earned high marks in Princeton Review's Mental Health Honor Roll 2026. The home of the Rice Owls also starred in the regional Best Southwest list that contained 41 universities across Arizona, Colorado, New Mexico, Oklahoma, and Texas.

"Rice University stands out as a leading research university where academic diversity and a wide array of interdisciplinary institutes and centers make it easy for students to explore multiple areas of interest," the school's profile says. "At Rice, 'knowledge isn’t siloed — students are constantly crossing disciplines and interests in ways that feel natural rather than exceptional.'"

Rice earned the following rankings on 14 other lists:

  • No. 1 – Lots of Race/Class Interaction
  • No. 3 – Best College Newspaper
  • No. 9 – Friendliest Students
  • No. 11 – Best Quality of Life
  • No. 13 – Great Financial Aid
  • No. 14 – Top 50 Best Value Private Colleges
  • No. 17 – Their Students Love These Colleges
  • No. 18 – Top 20 Best Value Private Colleges Without Aid
  • No. 18 – Best Student Support and Counseling Services
  • No. 19 – Best College Dorms
  • No. 21 – Students Study the Most
  • No. 24 – Best Campus Food
  • No. 24 – Best College Radio Station
  • No. 24 – Best-Run colleges
The University of Houston also appeared in the Best Southwest, Best Value Colleges, and Colleges That Create Futures lists, and it was named a top Green College, which examined schools that "share superb sustainability practices, a strong foundation in sustainability education, and a healthy quality of life for students on campus



UH earned five more accolades:

  • No. 1 – Top 50 Undergraduate Schools for Entrepreneurship Studies
  • No. 1 – Top Undergraduate Schools for Entrepreneurship Studies in the Southwest
  • No. 8 – Most Politically Moderate Students
  • No. 15 – Financial Aid Not So Great
  • No. 42 – Top 50 Best Value Public Colleges
In the school's profile, students say they had an overall positive experience thanks to UH's excellent academic offerings and dedicated faculty members.

"Students confirm that 'the research and other academic opportunities... are very accessible to students who seek it out,'" the profile says. "This includes taking advantage of UH’s vast alumni network (more than 325,000 and counting), not to mention its location in the corporate center of Houston, where 'the opportunities that are provided are immense.'"

The 12 other public and private universities in Texas included in The Princeton Review's 2027 guide are:

  • The University of Texas at Austin
  • Southwestern University, Georgetown
  • Baylor University, Waco
  • Texas A&M University - College Station
  • Trinity University, San Antonio
  • Texas State University, San Marcos
  • Angelo State University, San Angelo
  • Texas Christian University, Fort Worth
  • University of Dallas, Irving
  • Southern Methodist University, Dallas
  • The University of Texas at Dallas, Richardson
  • Austin College, Sherman
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A version of this story originally appeared on CultureMap.com.

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