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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Announcing the 2025 Houston Innovation Awards finalists

Inspirational Innovators

InnovationMap is proud to reveal the finalists for the 2025 Houston Innovation Awards.

Taking place on November 13 at Greentown Labs, the fifth annual Houston Innovation Awards will honor the best of Houston's innovation ecosystem, including startups, entrepreneurs, mentors, and more.

This year's finalists were determined by our esteemed panel of judges, comprised of past award winners and InnovationMap editorial leadership.

The panel reviewed nominee applications across 10 prestigious categories to determine our finalists. They will select the winner for each category, except for Startup of the Year, which will be chosen by the public via online voting launching later this month.

We'll announce our 2025 Trailblazer Award recipient in the coming weeks, and then we'll unveil the rest of this year's winners live at our awards ceremony.

Get to know all of our finalists in more detail through editorial spotlights leading up to the big event. Then, join us on November 13 as we unveil the winners and celebrate all things Houston innovation. Tickets are on sale now — secure yours today.

Without further ado, here are the 2025 Houston Innovation Awards finalists:

Minority-founded Business

Honoring an innovative startup founded or co-founded by BIPOC or LGBTQ+ representation:

  • Capwell Services
  • Deep Anchor Solutions
  • Mars Materials
  • Torres Orbital Mining (TOM)
  • Wellysis USA

Female-founded Business

Honoring an innovative startup founded or co-founded by a woman:

  • Anning Corporation
  • Bairitone Health
  • Brain Haven
  • FlowCare
  • March Biosciences
  • TrialClinIQ

Energy Transition Business

Honoring an innovative startup providing a solution within renewables, climatetech, clean energy, alternative materials, circular economy and beyond:

  • Anning Corporation
  • Capwell Services
  • Deep Anchor Solutions
  • Eclipse Energy
  • Loop Bioproducts
  • Mars Materials
  • Solidec

Health Tech Business

Honoring an innovative startup within the health and medical technology sectors:

  • Bairitone Health
  • Corveus Medical
  • FibroBiologics
  • Koda Health
  • NanoEar
  • Wellysis USA

Deep Tech Business

Honoring an innovative startup providing technology solutions based on substantial scientific or engineering challenges, including those in the AI, robotics and space sectors:

  • ARIX Technologies
  • Little Place Labs
  • Newfound Materials
  • Paladin Drones
  • Persona AI
  • Tempest Droneworx

Startup of the Year (People's Choice)

Honoring a startup celebrating a recent milestone or success. The winner will be selected by the community via an online voting experience:

  • Eclipse Energy
  • FlowCare
  • MyoStep
  • Persona AI
  • Rheom Materials
  • Solidec

Scaleup of the Year

Honoring an innovative later-stage startup that's recently reached a significant milestone in company growth:

  • Coya Therapeutics
  • Fervo Energy
  • Koda Health
  • Mati Carbon
  • Molecule
  • Utility Global

Incubator/Accelerator of the Year

Honoring a local incubator or accelerator that is championing and fueling the growth of Houston startups:

  • Activate
  • Energy Tech Nexus
  • Greentown Labs
  • Healthtech Accelerator (TMCi)
  • Impact Hub Houston

Mentor of the Year

Honoring an individual who dedicates their time and expertise to guide and support budding entrepreneurs. Presented by Houston Community College:

  • Anil Shetty, Inform AI
  • Jason Ethier, EnergyTech Nexus
  • Jeremy Pitts, Activate
  • Joe Alapat, Liongard
  • Neil Dikeman, Energy Transition Ventures
  • Nisha Desai, Intention

Trailblazer Recipient

  • To be announced
---------

Interested in sponsoring the 2025 Houston Innovation Awards? Contact sales@innovationmap.com for details.

Houston scientists earn prestigious geophysics career awards

winner, winner

Two Rice University professors have been recognized by the American Geophysical Union, one of the world’s largest associations for Earth and space science.

Rice climatologist Sylvia Dee was awarded the 2025 Nanne Weber Early Career Award by the AGU’s Paleoceanography and Paleoclimatology Section. Richard Gordon, a Rice professor of geophysics also received the 2025 Walter H. Bucher Medal by the AGU. They will both be recognized at the AGU25 event on Dec.15-19 in New Orleans.

The Nanne Weber Early Career Award recognizes contributions to paleoceanography and paleoclimatology research by scientists within 10 years of receiving their doctorate.

“Paleoclimate research provides essential context for understanding Earth’s climate system and its future under continued greenhouse warming," Dee said in a news release. “By studying how climate has evolved naturally in the past, we can better predict the risks and challenges that lie ahead.”

Dee’s work explores how Earth’s natural modes of variability interact with the changing climate and lead to extreme weather. It shows how these interactions can add to climate risks, like flooding and rainfall patterns all around the world.

The Bucher Medal is awarded to just one scientist for their original contributions to the knowledge of the Earth’s crust and lithosphere.

Gordon’s research has reshaped how scientists understand the movement and interaction of Earth’s tectonic plates. He helped reveal the existence of diffuse plate boundaries—areas where the planet’s crust slowly deforms across broad regions instead of along a single fault line. His work also explored true polar wander, a phenomenon in which Earth gradually shifts its orientation relative to its spin axis.

Gordon introduced the concept of paleomagnetic Euler poles, a method for tracing how tectonic plates have moved over millions of years. He also led the development of major global plate motion models, including NUVEL (Northwestern University Velocity) and MORVEL (Mid-Ocean Ridge Velocity).

“Receiving the Walter Bucher Medal is a profound honor,” Gordon said in a news release. “To be included on a list of past recipients whose work I have long admired makes this recognition especially meaningful. There are still countless mysteries about how our planet works, and I look forward to continuing to explore them alongside the next generation of scientists.”

3 Houston-area companies appear on Fortune’s inaugural AI ranking

eyes on ai

Three companies based in the Houston area appear on Fortune’s inaugural list of the top adopters of AI among Fortune 500 companies.

The three companies are:

  • No. 7 energy company ExxonMobil, based in Spring
  • No. 7 tech company Hewlett Packard Enterprise, based in Spring
  • No. 47 energy company Chevron, based in Houston

All three companies have taken a big dive into the AI pool.

In 2024, ExxonMobil’s executive chairman and CEO, Darren Woods, explained that AI would play a key role in achieving a $15 billion reduction in operating costs by 2027.

“There is a concerted effort to make sure that we're really working hard to apply that new technology to the opportunity set within the company to drive effectiveness and efficiency,” Woods told Wall Street analysts.

Hewlett Packard Enterprise is also employing AI to decrease costs. In March, the company announced a restructuring plan — including the elimination of 3,000 jobs — aimed at cutting about $350 million in annual expenses. The restructuring is scheduled to wrap up by the end of October.

Hewlett Packard Enterprise’s Catalyst cost-cutting program includes a push to use AI across the company to improve efficiency, Marie Myers, the company’s executive vice president and chief financial officer, told Wall Street analysts in June.

“Our ambition is clear: A leaner, faster, and more competitive organization. Nothing is off limits. We are focused on rethinking the business — not just reducing our costs, but transforming the way we operate,” Myers said.

At Chevron, AI tools are being used to quickly analyze data and extract insights from it, according to tech news website VentureBeat. Also, Chevron employs advanced AI systems known as large language models (LLMs) to create engineering standards, specifications and safety alerts. AI is even being put to work in Chevron’s exploration initiatives.

Bill Braun, Chevron’s chief information officer, said at a VentureBeat-sponsored event in 2024 that AI-savvy data scientists, or “digital scholars,” are always embedded within workplace teams “to act as a catalyst for working differently.”

The Fortune AIQ 50 ranking is based on ServiceNow’s Enterprise AI Maturity Index, an annual measurement of how prepared organizations are to adopt and scale AI. To evaluate how Fortune 500 companies are rolling out AI and how much they value AI investments, Fortune teamed up with Enterprise Technology Research. The results went into computing an AIQ score for each company.

At the top of the ranking is Alphabet (owner of Google and YouTube), followed by Visa, JPMorgan Chase, Nvidia and Mastercard.

Aside from ExxonMobil, Hewlett Packard Enterprise, and Chevron, two other Texas companies made the list: Arlington-based homebuilder D.R. Horton (No. 29) and Austin-based software company Oracle (No. 37).

“The Fortune AIQ 50 demonstrates how companies across industry sectors are beginning to find real value from the deployment of AI technology,” Jeremy Kahn, Fortune’s AI editor, said in a news release. “Clearly, some sectors, such as tech and finance, are pulling ahead of others, but even in so-called 'old economy' industries like mining and transport, there are a few companies that are pulling away from their peers in the successful use of AI.”

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