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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SpaceX's supersized Starship rocket launches into orbit for first time

Out in Space

SpaceX launched its enormous Starship into orbit for the first time Monday, September 28, and successfully delivered the most advanced Starlink satellites yet, but cut the flight short to ensure safety.

The spacecraft reentered over the Pacific and splashed down north of Hawaii three hours after blasting off from Texas. The company had been aiming for a 10-hour flight, spanning six full laps around Earth, to prove its readiness for NASA’s Artemis moon program.

Starship tipped over and erupted in flames upon splashdown, a dramatic end to the mission.

Elon Musk's Starship almost didn't make it to orbit when one of its engines shut down prematurely. But with everything else working well and the bad engine no longer needed, flight controllers decided, after several tense minutes, to proceed as planned.

“Starship is orbital,” Mission Control announced to cheers.

NASA Administrator Jared Isaacman congratulated SpaceX on reaching orbit and “managing every step in a safe, responsible and especially inspirational way.”

Rocket carries 26 of Musk's most advanced Starlink satellites

Musk’s showpiece rocket — the biggest and most powerful ever built — carried 26 of the latest Starlinks to join the 11,000 older models already providing internet service. They popped out of the spacecraft one by one, drawing more cheers from the SpaceX crowd at the Starbase launch site.

The decision to end the flight early came soon afterward. SpaceX said hours later in an online update that the decision was made “out of an abundance of caution” because of the early engine trouble.

It was Starship’s 14th full-scale launch from Texas’ southern tip in three years. Earlier test flights ventured no farther than the Indian Ocean halfway around the world, often crashing in flames and briefly skimming space.

This time, the intent was for SpaceX to circle the globe from an altitude of 170 miles (275 kilometers) — not just once but six times over almost 10 hours, ending with a Pacific splashdown near Chile. While Starship achieved the proper orbit, zipping along at 17,500 mph (28,000 kph), flight controllers opted to play it safe and bring it back several hours sooner, after just a couple of laps.

The first-stage booster was never meant to return to the Starbase launch site either, dropping instead into the Gulf of Mexico within minutes of the morning liftoff.

SpaceX wants to ensure that everything works before flying Starship back to Starbase. If the spacecraft breaks apart over land and rains debris onto people, “our popularity would diminish very rapidly,” Musk said at a business summit earlier this month. “That’s why we’re being extremely cautious here.”

Depending on the findings from Monday's orbital debut, the next Starship could return to the launch pad, where giant mechanical arms would grab the hovering spacecraft. If the catch works — Musk gives it even or slightly better odds — then SpaceX will refly the spacecraft by year’s end or early next year.

The 407-foot (124-meter) rocket was designed from the start to be fully reusable, a key to lowering launch costs. SpaceX managed to salvage the last Starship from the Indian Ocean in July. Engineers modified the newly launched Starship’s heat shield based on hands-on inspections of the recovered spacecraft, which is being tugged back to Starbase.

SpaceX wants Starship to be certified for orbital flight

SpaceX is pressing hard to certify Starship for orbital flight, a vital step toward moon and Mars travel.

NASA’s Artemis III mission is coming up as soon as next summer, a triple-launch docking exercise in orbit around Earth between an Orion capsule full of astronauts and competing lunar landers. Jeff Bezos’ Blue Moon would blast off first, followed by Orion — which would close in for a linkup — and then Musk’s Starship for a docking with Orion once Blue Moon is unleashed.

The next mission, Artemis IV, is slated for no sooner than 2028 and would have astronauts landing on the moon in either Blue Moon or Starship, whichever is ready first. Subsequent moonshots will alternate between the two billionaires’ landers.

Musk originally developed Starship for Mars, intending to launch scores of them with the red planet’s first settlers. For now, he plans to focus on the moon and use Starship to haul satellites into orbit by the truckload, phasing out the company’s frailer Falcon 9 rocket within several years. A second Starship launch site is nearing completion at Florida’s Kennedy Space Center and a third is planned for Louisiana.

Houston startup raises $2.4M for sleep apnea technology

sleep score

Houston-based Bairitone Health has closed an oversubscribed seed round and achieved a regulatory milestone, the company tells InnovationMap.

The healthtech startup, which is developing solutions and technology for untreated obstructive sleep apnea (OSA), raised $2.4 million, says CEO and co-founder Meagan Pitcher, exceeding its $2 million goal.

New York-based Golden Seeds, which invests in female entrepreneurs, led the round. Houston-based South Loop Ventures also participated, as well as MALIAM, Impact Invest Her and additional angel, venture, syndicate and family office investors. The company previously raised a pre-seed round of $435,000 in 2024.

Pitcher says the latest funding will go toward Bairitone's clinical site expansion, FDA-facing work and the continued product development of its SOMNAR technology.

"What I’m most excited about is what this lets us do next: expand our clinical testing, work with more patients and physicians, and keep improving based on what we learn," Pitcher said in a LinkedIn post.

SOMNAR is the company's noninvasive diagnostic platform for sleep apnea airway assessment. The platform maps users' anatomy during natural sleep using a facial patch to determine the root cause of airway obstruction. It then offers effective therapies for each patient.

SOMNAR received Breakthrough Device Designation from the Food and Drug Administration in April. It is currently for investigational use only and is still pending FDA clearance. The new designation aims to help speed up development, assessment and review for premarket approval for medical devices, according to the FDA. It will also give Bairitone more opportunities to interact directly with FDA experts to make the approval process more efficient.

Bairitone was founded in 2022 in the Texas Medical Center's Biodesign program by Pitcher, CTO Onur Kilic and chief medical officer Britt Cross. It was a member of Activate Houston's inaugural cohort and has participated in numerous accelerators and incubators.

The company was a finalist for the Houston Innovation Awards in 2025 and 2024.

Houston university to launch master’s in artificial intelligence

AI experts

Houston’s Rice University will welcome students to its new Master of Artificial Intelligence (MAI) program next fall, the college announced last week.

The program, which will begin taking applications this fall, is geared toward students with a computer science background as well as working engineers, scientists and technologists as they pursue careers that create and deploy AI. It will be part of Rice’s Department of Computer Science.

The new graduate degree comes after Rice created its Bachelor of Science in AI program in 2025.

Students enrolled in the 30-credit-hour, non-thesis professional degree program will prepare for prospective jobs as AI architects, applied AI researchers and AI and machine learning engineers, according to a news release.

“AI is rapidly moving from research laboratories into the systems that shape how we work, learn and solve complex problems,” Luay Nakhleh, Dean of the George R. Brown School of Engineering and Computing, said in the release. “The MAI will give students the technical depth and practical experience to build these systems responsibly.”

The on-campus degree program will include coursework in AI foundations and traditional, hands-on learning over its three-semester duration. Students will have easy access to faculty and have the opportunity to collaborate in small cohorts. The program includes a required internship before completion.

Chris Jermaine, chair of Rice’s Department of Computer Science, says Houston is well-positioned to connect students with industries where AI is increasingly being used, including health care, energy, aerospace, finance and technology.

“The Master of Artificial Intelligence reflects the graduate education Rice is working to advance: rigorous, forward-looking and connected to the challenges graduates will encounter in their careers,” Jermaine said in the release. “Combining strong academic foundations with practical experience will prepare students to contribute thoughtfully and responsibly as AI continues to evolve.”

Other Texas universities offer similar degrees, like Texas A&M's online Master of Science in Artificial Intelligence, Baylor’s Master of Science in Artificial Intelligence (MSAI+), University of Houston Downtown’s Master of Science in Artificial Intelligence program, and University of Texas at Austin’s online master’s in AI.

MAI works as part of Rice’s Momentous strategic plan that incorporates responsible AI use, according to the university.

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