Houston tech platform raises series C round backed by Mastercard

money moves

Following the round, Hello Alice is now valued at $130 million. Photo courtesy Cayce Clifford/Hello Alice

Hello Alice, a fintech platform that supports 1.5 million small businesses across the country, has announced its series C round.

The amount raised was not disclosed, but Hello Alice reported that the fresh funding has brought the company's valuation to $130 million. Alexandria, Virginia-based QED Investors led the round, and investors included Mastercard, Backstage Capital, Guy Fieri, Golden Seeds, Harbert Growth Partners Fund, How Women Invest I, LP, Lovell Limited Partnership, Tyler “Ninja” and Jessica Blevins, and Tamera Mowry and Adam Housley, per a news release from the company.

“We are thrilled to hit the milestone of 1.5 million small businesses utilizing Hello Alice to elevate the American dream. There are more entrepreneurs launching this year than in the history of our country, and we will continue to ensure they get the capital needed to grow,” Elizabeth Gore and Carolyn Rodz, co-founders of Hello Alice, say in a news release. “In closing our Series C, we welcome Mastercard to our family of investors and continue to be grateful to QED, How Women Invest, and our advocates such as Guy Fieri.”

The funding will go toward expanding capital offerings and AI-driven tools for its small business membership.

“Our team focuses on finding and investing in companies that are obsessed with reducing friction and providing superior financial services solutions to their customers,” QED Investors Co-Founder Frank Rotman says in the release. “Hello Alice has proven time and time again that they are on the leading edge of providing equitable access to capital and banking services to the small business ecosystem."

Hello Alice, which closed its series B in 2021 at $21 million, has collaborated with Mastercard prior to the series C, offering small business owners the Hello Alice Small Business Mastercard in 2022 and a free financial wellness tool, Business Health Score, last year. Mastercard also teamed up with other partners for the the Equitable Access Fund in 2023.

“With Hello Alice, we’re investing to provide support to small business owners as they look to access capital, helping to address one of the most cited business challenges they face,” Ginger Siegel, Mastercard's North America Small Business Lead, adds. “By working together to simplify access to the products and services they need when building and growing their business, we’re helping make a meaningful impact on the individuals who run their businesses, the customers they serve, and our communities and economy at large.”

While Hello Alice's founders' mission is to help small businesses, their own company was threatened by a lawsuit from America First Legal. The organization, founded by former Trump Administration adviser Stephen Miller and features a handful of other former White House officials on its board, is suing Hello Alice and its partner, Progressive Insurance. The lawsuit alleges that their program to award10 $25,000 grants to Black-owned small businesses constitutes racial discrimination. Gore calls the lawsuit frivolous in an interview on the Houston Innovators Podcast. The legal battle is ongoing.

Inspired by the lawsuit, Hello Alice launched the Elevate the American Dream, a grant program that's highlighting small businesses living out their American dreams. The first 14 grants have already been distributed, and Hello Alice plans to award more grants over the next several weeks, putting their grant funding at over $40 million.


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Graylog, a Houston SaaS company, has new fuel to scale and develop its product. Photo via Getty Images

Houston software co. secures $39M in financing, launches latest product upgrade

fresh funding

A Houston software-as-a-service company has secured $39 million in financing and announced its latest upgrade to its platform.

Graylog, which has created an innovative platform for cybersecurity and IT operations, raised equity funding with participation from new investor Silver Lake Waterman and existing investors Piper Sandler Merchant Banking and Harbert Growth Partners leading the round.

“The growth we are seeing globally is a response to our team’s focus on innovation, a superior user experience, low total cost of ownership, and strong execution from our Go-To-Market and Customer Success teams,” Andy Grolnick, CEO of Graylog, says in a news release. “We expect this momentum to continue as Graylog expands its reach and raises its profile in the security market.”

Grolnick tells TechCrunch that the financing includes $9 million in a series C extension round and $30 million in “flex debt.” The company closed its series C in 2021.

In its news release, Graylog reported a 67 percent increase in new bookings as of last quarter. The company also reported the acquisition of Resurface.io’s API security platform in July, growth in Europe and Asia Pacific, and availability on AWS Marketplace among its list of recent growth opportunities.

“Graylog’s solid growth underscores the strength of the extensible Threat Detection & Incident Response platform the team has built to help customers detect and respond to cybersecurity threats and leverage advanced log management for operational effectiveness,” Shawn O’Neill, managing director and group head of Silver Lake Waterman, says in the release. “We look forward to partnering with Graylog to help enable their continued success.”

The financing was announced October 31, and today, November 1, Graylog announced version 5.2 of its platform technology for its users.

The company plans to use its funding on product development and differentiation, scaling, and as a bridge to profitability, which Grolnick tells TechCrunch is just around the corner.

“Graylog’s product-led growth model, combined with its focus on customer success, continues to be an attractive combination that bodes well for its future," Bob Rinek, managing director with Piper Sandler Merchant Banking, says in the release. "We’re also excited about Graylog’s expansion into the API Security space to help its customers defend this vulnerable attack surface."

Originally founded in 2009 by Lennart Koopmann as an open source project, Houston-based VC firm Mercury invested in the company in 2014. Grolnick has served as CEO since 2020.

Houston-based Graylog announced new financing as well as a new version of its software this week. Photo via graylog.org

Houston-based data management startup Graylog has fresh funds to fuel its growth. Photo via Graylog.org

Houston data management company closes $18M in fresh funding

money moves

A Houston company that's created a centralized log management solution has closed a new round in funding.

Graylog closed its $18 million growth equity round led by Richmond, Virginia-based Harbert Growth Partners, a new investor, and Minneapolis, Minnesota-based Piper Sandler Merchant Banking, the company announced today. The round also received contribution from existing investors Houston-based Mercury Fund and Integr8d Capital, as well as Germany-based HTGF.

"This investment will enable us to accelerate our global go-to-market strategies and enhancements to the award-winning solutions we deliver for IT, DevOps, and Security teams," says Andy Grolnick, CEO of Graylog, in a press release. "We're excited to have the support of new and existing investor partners to help us realize our potential."

Andy Grolnick is CEO of Graylog. Photo courtesy

Per the release, the funds will go toward growing the company's platform that allows its users the ability to capture, store, and enable real-time analysis of terabytes of machine data.

"Graylog is well-positioned to be a long-term winner in the rapidly growing market for log management and analysis solutions," says Brian Carney, general partner of Harbert Growth Partners, in the release. "With its focus on delivering a superior analyst experience coupled with a vibrant Open Source community, the company provides customers a compelling alternative to other log management solutions plagued with high complexity and high total cost of ownership (TCO). We are thrilled to partner with the Graylog team to leverage the significant opportunity that lies ahead for the company."

Over the past year, despite the challenging business climate, the company saw growth in business and even expanded its European operations, according to the release.

"As a long-standing customer, Graylog is strategic to our success. We are excited to see new investment that will enable the company to accelerate innovation and continue to deliver excellent log management and SIEM solutions," says Rob Reiner, CTO of PROS, in the release.

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Houston investment firm names tech exec as new partner

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Houston tech executive Robert Kester has joined Houston-based Veriten, an energy-focused research, investment and strategy firm, as technology and innovation partner.

Kester most recently served as chief technology officer for emissions solutions at Honeywell Process Solutions, where he worked for five years. Honeywell International acquired Houston-based oil and gas technology company Rebellion Photonics, where Kester was co-founder and CEO, in 2019.

Honeywell Process Solutions shares offices in Houston with the global headquarters of Honeywell Performance Materials and Technologies. Honeywell, a Fortune 100 conglomerate, employs more than 850 people in Houston.

“We are thrilled to welcome Robert to the Veriten team,” founder and CEO Maynard Holt said in a statement, “and are confident that his technical expertise and skills will make a big contribution to Veriten’s partner and investor community. He will [oversee] every aspect of what we do, with the use case for AI in energy high on the 2025 priority list.”

Kester earned a doctoral degree in bioengineering from Rice University, a master’s degree in optical sciences from the University of Arizona and a bachelor’s degree in laser optical engineering technology from the Oregon Institute of Technology. He holds 25 patents and has more than 25 patents pending.

Veriten celebrated its third anniversary on January 10, the day that the hiring of Kester was announced. The startup launched with seven employees.

“With the addition of Dr. Kester, we are a 26-person team and are as enthusiastic as ever about improving the energy dialogue and researching the future paths for energy,” Holt added.

Kester spoke on the Houston Innovators Podcast in 2021. Listen here

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Startup funding, sportstech win and more trending innovation news for January

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Editor's note: The new year has started off with big news in the Houston innovation sector. The five most-read InnovationMap stories for the first half of January 2025 include a roundup of fresh funding for 14 startups, a Houston sportstech company's recent win, and a NASA initiative. Get the details below.

14 Houston startups start 2025 with fresh funding

Fourteen Houston startups ended 2024 with a round of investment. Photo via Getty Images

Houston startups wrapped up the last few months of 2024 with big funding news — from several seeds and series As to series C rounds and extensions. Here are 14 Houston startups that secured funding in the the last four months of last year, according to reporting by InnovationMap. Continue reading.

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

Don't miss these January events — from meetups to scale ups. Photo via Getty Images

From networking meetups to tech talks, January is filled with opportunities for Houston innovators. Here's a roundup of events you won't want to miss out on, so mark your calendars and register accordingly. Continue reading.

Houston tech company tapped by NASA for near space initiative

Intuitive Machines is among four companies awarded contracts for NASA’s Near Space Network. Photo via intuitivemachines.com

Houston-based space exploration, infrastructure, and services company Intuitive Machines has nailed down a NASA deal to expand the agency’s communications network for spacecraft. Continue reading.

Houston sportstech startup shoots, scores in Pharrell Williams competition

GRIND won second place in Pharrell Williams' Black Ambition Prize. Photo via grindbasketball.com

Anyone who's witnessed even just a minute of basketball knows how important accuracy is in sinking shots on the court. One Houston startup is getting wide attention for the device it developed to help practice make perfect in a game. Continue reading.

What to know about the new emission inspection to register your car in Texas

An inspection is no longer required to renew registration, but an emission evaluation is. Photo by Tim Leviston/Getty Images

Texas vehicle owners no longer need to obtain a safety inspection prior to vehicle registration. House Bill 3297, which went into effect January 1 and passed during the 88th Legislature in 2023, eliminates the safety inspection program for non-commercial vehicles. But there are new requirements. Continue reading.

SpaceX loses mega rocket in latest thrilling Starship test flight

Testing

SpaceX launched its Starship rocket on its latest test flight Thursday, but the spacecraft was destroyed following a thrilling booster catch back at the pad.

Elon Musk’s company said Starship broke apart — what it called a “rapid unscheduled disassembly." The spacecraft's six engines appeared to shut down one by one during ascent, with contact lost just 8 1/2 minutes into the flight.

The spacecraft — a new and upgraded model making its debut — was supposed to soar across the Gulf of Mexico from Texas on a near loop around the world similar to previous test flights. SpaceX had packed it with 10 dummy satellites for practice at releasing them.

A minute before the loss, SpaceX used the launch tower's giant mechanical arms to catch the returning booster, a feat achieved only once before. The descending booster hovered over the launch pad before being gripped by the pair of arms dubbed chopsticks.

The thrill of the catch quickly turned into disappointment for not only the company, but the crowds gathered along the southern tip of Texas.

“It was great to see a booster come down, but we are obviously bummed out about [the] ship,” said SpaceX spokesman Dan Huot. “It’s a flight test. It’s an experimental vehicle," he stressed.

The last data received from the spacecraft indicated an altitude of 90 miles and a velocity of 13,245 mph.

Musk said a preliminary analysis suggests leaking fuel may have built up pressure in a cavity above the engine firewall. Fire suppression will be added to the area, with increased venting and double-checking for leaks, he said via X.

The 400-foot rocket had thundered away in late afternoon from Boca Chica Beach near the Mexican border. The late hour ensured a daylight entry halfway around the world in the Indian Ocean. But the shiny retro-looking spacecraft never got nearly that far.

SpaceX had made improvements to the spacecraft for the latest demo and added a fleet of satellite mockups. The test satellites were the same size as SpaceX’s Starlink internet satellites and, like the spacecraft, were meant to be destroyed upon entry.

Musk plans to launch actual Starlinks on Starships before moving on to other satellites and, eventually, crews.

It was the seventh test flight for the world’s biggest and most powerful rocket. NASA has reserved a pair of Starships to land astronauts on the moon later this decade. Musk’s goal is Mars.

Hours earlier in Florida, another billionaire’s rocket company — Jeff Bezos’ Blue Origin — launched the newest supersized rocket, New Glenn. The rocket reached orbit on its first flight, successfully placing an experimental satellite thousands of miles above Earth. But the first-stage booster was destroyed, missing its targeted landing on a floating platform in the Atlantic.

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