New-to-Houston construction tech company files for Chapter 11 bankruptcy

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After relocating its headquarters to Houston, Katerra has filed for bankruptcy. Photo via Getty Images

Construction startup Katerra, which only recently moved its North American headquarters from Silicon Valley to Houston, filed for Chapter 11 bankruptcy June 6 — five days after news reports indicated the company was shutting down most of its U.S. operations.

Katerra's filings in U.S. Bankruptcy Court in Houston show the company and various affiliates have between $1 billion and $10 billion in liabilities and only $500 million to $1 billion in assets. In a June 6 news release, Katerra says it lined up $35 million in financing from a unit of Japan's SoftBank Group, the startup's largest investor.

Katerra recently notified its key stakeholders that many of its U.S. projects will be "demobilizing," according to the news release.

In an email sent June 1 to employees, Katerra said it would be winding down the majority of its U.S. operations and would lay off most of its U.S. employees. News website The Information first reported about the email. Globally, Katerra employs about 7,500 people.

Aside from letting go thousands of employees, Katerra is likely to walk away from dozens of construction projects it had agreed to build, The Information reported. As part of the bankruptcy case, Katerra plans to sell its renovation and Lord Aeck Sargent architecture businesses to unidentified buyers.

Katerra has been hemorrhaging money for months. In December, SoftBank pumped $200 million into Katerra, in addition to its previous investment of roughly $2 billion. Five months after Katerra received that cash infusion, Paal Kibsgaard stepped down as CEO, a role he'd held since July 2020. Kibsgaard is former chairman and CEO of Houston-based Schlumberger.

"The rapid deterioration of the company's financial position is the result of the macroeconomic effects of the COVID-19 pandemic on the construction industry, inability to procure bonding for construction projects following the unexpected insolvency proceedings of Katerra's former lender, and unsuccessful attempts to secure additional capital and business," according to the news release announcing the bankruptcy proceedings.

Greensill Capital, the lender referenced in the news release, filed for insolvency protection in March. Like Katerra, Greensill is backed by SoftBank.

Katerra was founded in 2015 with the intent to capitalize on technology — such as automation and robotics — in order to streamline construction. Its projects have included hotels and apartment buildings. Last year, it posted nearly $2 billion in revenue.

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West Coast innovation organization unveils new location in Houston suburb to boost Texas tech ecosystem

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Leading innovation platform Plug and Play announced the opening of its new flagship Houston-area location in Sugar Land, which is its fourth location in Texas.

Plug and Play has accelerated over 2,700 startups globally last year with corporate partners that include Dell Technologies, Daikin, Microsoft, LG Chem, Shell, and Mercedes. The company’s portfolio includes PayPal, Dropbox, LendingClub, and Course Hero, with 8 percent of the portfolio valued at over $100 million.

The deal, which facilitated by the Sugar Land Office of Economic Development and Tourism, will bring a new office for the organization to Sugar Land Town Square with leasing and hiring between December and January. The official launch is slated for the first quarter of 2025, and will feature 15 startups announced on Selection Day.

"By expanding to Sugar Land, we’re creating a space where startups can access resources, build partnerships, and scale rapidly,” VP Growth Strategy at Plug and Play Sherif Saadawi says in a news release. “This location will help fuel Texas' innovation ecosystem, providing entrepreneurs with the tools and networks they need to drive real-world impact and contribute to the state’s technological and economic growth."

Plug and Play plans to hire four full-time equivalent employees and accelerate two startup batches per year. The focus will be on “smart cities,” which include energy, health, transportation, and mobility sectors. One Sugar Land City representative will serve as a board member.

“We are excited to welcome Plug and Play to Sugar Land,” Mayor of Sugar Land Joe Zimmerma adds. “This investment will help us connect with corporate contacts and experts in startups and businesses that would take us many years to reach on our own. It allows us to create a presence, attract investments and jobs to the city, and hopefully become a base of operations for some of these high-growth companies.”

The organization originally entered the Houston market in 2019 and now has locations in Bryan/College Station, Frisco, and Cedar Park in Texas.

Uniquely Houston event to convene innovation experts across aerospace, energy, and medicine

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Every year, Houston's legacy industries — energy, medicine, and aerospace — come together to share innovative ideas and collaborate on future opportunities.

For the eighteenth year in a row, the annual Pumps & Pipes event will showcase and explore convergence innovation and common technology themes across Houston’s three major industries. The hosting organization, also called Pumps & Pipes, was established in 2007 in Houston and is dedicated to fostering collaboration amongst the city's three major industries.

With NASA in its backyard, the world’s largest medical center, and a reputation as the “Energy Capital of the World,” Houston is uniquely positioned to lead in cross-industry convergence innovation and is reflected in the theme of this year’s event – Blueprint Houston: Converge and Innovate.

Here's what you can expect to explore at the event, which will take place this year on December 9 at TMC Helix Park. Tickets are available online.

The state of Texas’ aerospace investments

How are the recent strategic investments in aerospace by the State of Texas transforming the space economy and driving growth in adjacent industries? What is the case for cultivating a more dynamic and vibrant aerospace R&D environment?

These are the key questions explored in the opening session of Pumps & Pipes, moderated by David Alexander (Director, Rice Space Institute). Joining the discussion are distinguished leaders Norman Garza, Jr., Executive Director of the Texas Space Commission (TSC); as well as two members of the TSC board of directors: Sarah “Sassie” Duggelby, CEO/Co-Founder of Venus Aerospace; and Kathryn Lueders, GM at Starbase, SpaceX.

This panel will spotlight Texas’ critical role in shaping the future of aerospace, with a focus on its cross-sector impact, from space exploration to innovation in energy and health care. We’ll explore how the state’s investments are fueling research and development, creating economic opportunities, and fostering a more interconnected, high-tech ecosystem for the future.

Real-world applications of robotics and synthetic biology

Explore the groundbreaking intersection of syntheticbiology and robotics as they reshape industries from aerospace to energy to health care. Experts from academia and industry — Rob Ambrose of Texas A&M University, Shankar Nadarajah of ExxonMobil, Shalini Yadav of the Rice Synthetic Biology Institute, and Moji Karimi of Cemvita — will discuss the real-world applications and future possibilities of these two fields, including innovative uses of robotics and drones to monitor emissions from deep-sea oil rigs, and synthetic microbes that convert carbon dioxide into valuable chemical products.

Discover how synthetic biology and robotics are paving the way for a more sustainable, autonomous, efficient, and interconnected future.

The total artificial heart – a uniquely Houston story

Heart failure affects millions globally, yet only a small fraction of patients receive life-saving heart transplants. The Total Artificial Heart (TAH), developed by BiVACOR, offers a revolutionary solution for patients with severe heart failure who are ineligible for a transplant.

Luminary leader, Dr. Billy Cohn, will discuss the groundbreaking BiVACOR TAH, a device that fully replaces the function of the heart using a magnetically levitated rotary pump. This innovative approach is part of an FDA-approved first-in-human study, aiming to evaluate its use as a bridge-to-transplant for patients awaiting heart transplants.

Moderated by Dr. Alan Lumsden (Chair Dept. of CV Surgery at Houston Methodist Hospital), join Dr. Cohn as he shares insights, and the story-behind, this pioneering technology and its potential to reshape the future of heart failure treatment, offering new hope to thousands of patients in need.

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Stuart Corr is the director of Innovation Systems Engineering at Houston Methodist and executive director of Pumps & Pipes.

Houston schools shine on annual ranking of top institutions for 2025

best in class

Several Houston elementary and middle schools are at the top of the class when it comes to educating and preparing the next generation for a successful life and career, according to U.S. News & World Report's just-released list of 2025 Elementary and Middle Schools Rankings.

One such school – T.H. Rogers School in Houston ISD – is the No. 8 best middle school in Texas for 2025.

U.S. News ranked over 79,000 public schools on the state and district level using data from the U.S. Department of Education. Schools were analyzed based on their students' proficiencies in mathematics and reading/language arts on state assessments, and tie-breakers were decided based on student-teacher ratios.

Texas' best middle schools for 2025

Three Houston middle schools achieved spots among the top 10 best Texas middle schools for 2025, according to U.S. News.

T.H. Rogers School has a total enrollment of 1,063 students, with 87 percent of the student population scoring "at or above the proficient level" in mathematics, and 90 percent proficiency in reading. The school has a student-teacher ratio of 17:1, with 62 full-time teachers.

T.H. Rogers School also topped the district-wide list as the No. 1 best middle school in HISD.

Houston Gateway Academy - Coral Campus also ranked among the statewide top 10, coming in at No. 9 with a total enrollment of 914 students. U.S. News says 82 percent of HGA students are proficient in math, and 80 percent are proficient in reading.

"Houston Gateway Academy - Coral Campus did better in math and better in reading in this metric compared with students across the state," U.S. News said in the school's profile. "In Texas, 51 percent of students tested at or above the proficient level for reading, and 41 percent tested at or above that level for math."

Right behind HGA to round out the top 10 best Texas middle schools is Houston ISD's Briarmeadow Charter School. This middle school has 600 students, 69 percent of which are proficient in math and 74 percent are proficient reading.

Briarmeadow's student-teacher ratio is 16:1, which is better than the district-wide student-teacher ratio, and it employs 38 full-time teachers.

U.S. News also ranked Briarmeadow as the second best middle school in Houston ISD.

Six additional Houston-area schools ranked among the top 25 best middle schools in Texas, including:

No. 18 – Cornerstone Academy, Spring Branch ISD
No. 19 – Mandarin Immersion Magnet School, Houston ISD
No. 21 – Smith Middle School, Cypress-Fairbanks ISD
No. 22 – Seven Lakes Junior High, Katy ISD
No. 23 – Houston Gateway Academy
No. 25 – Beckendorff Junior High, Katy ISD

The best elementary schools in Texas
Jesus A. Kawas Elementary school in Laredo was crowned the No. 1 elementary school in Texas for 2025, while two Houston-area schools made it into the top 10.Tomball ISD's Creekside Forest Elementary in The Woodlands is the No. 7 best elementary school statewide, boasting 656 students, 42 full-time teachers, and one full-time counselor. Students at this school, which U.S. News designates is situated in a "fringe rural setting," scored 90 percent efficiency in math and 94 percent efficiency in reading.Following one spot behind Creekside Forest in the statewide ranking is Sugar Land's Commonwealth Elementary School in Fort Bend ISD, coming in at No. 8. Commonwealth has a student population of 954 with 55 full-time teachers, and two full-time counselors. The school's student-teacher ratio is 17:1, and 90 percent of students are proficient in math, and 94 percent in reading.U.S. News says student success at Commonwealth is significantly higher than the rest of Fort Bend ISD."In Fort Bend Independent School District, 59 percent of students tested at or above the proficient level for reading, and 47 percent tested at or above that level for math," U.S. News said in Commonwealth's profile. "Commonwealth Elementary [also] did better in math and better in reading in this metric compared with students across the state."Other Houston-area schools that were ranked among the 25 best in Texas are:

No. 13 – Bess Campbell Elementary, Sugar Land, Lamar CISD
No. 20 – West University Elementary, Houston ISD
No. 23 – T.H. Rogers School, Houston ISD
No. 25 – Griffin Elementary, Katy ISD

"The 2025 Best Elementary and Middle Schools rankings offer parents a way to evaluate how schools are providing a high-quality education and preparing students for future success," said LaMont Jones, Ed.D., the managing editor for Education at U.S. News. "The data empowers families and communities to advocate for their children’s education. Research continues to indicate that how students perform academically at these early grade levels is a big factor in their success in high school and beyond."