The Ion taps John Reale for startup and investor role

new hire

Houston startup and investment leader John "JR" Reale has a new role at the Ion. Photo courtesy Rice Alliance.

The Ion has named John "JR" Reale as its director for startups and investor engagement.

In his new role, Reale, a longtime leader in Houston’s startup ecosystem, will work to strengthen the innovation district's founder and investor network.

"Here’s what I’ve come to believe: the Ion is not just a building, not just a real estate play, and not just another innovation district. COVID, remote work, and shifting market dynamics changed the rules. Key ingredients like co-working, events, and community, while impactful, are no longer enough on their own," Reale shared on a LinkedIn post announcing the move. "What’s needed are advantages ... We need to intentionally design a system that repeatedly delivers advantages so founders can pull forward their visions."

Reale previously served as executive in residence and venture partner at TMC Venture Fund and co-founded Station Houston. He also serves as managing director of Integr8d Capital. He's an investor and serves on the board of directors for a number of venture-backed companies, including Cart.com, Lionguard and others.

The Ion will host "Today Is Day One – A conversation with John (JR) Reale" to welcome Reale to the role on Tuesday, Oct. 21. Reale will be joined at the event by Heath Butler, partner at Mercury, to discuss their thoughts on shaping Houston's founders ecosystem, as well as the Ion’s Founder Advantage Platform.

"On top of this connected architecture, we will build product. That product will be the Founder Advantage Platform to remove friction, compress time, and compound outcomes," Reale continued on LinkedIn. "This is the system that will drive repeatable experiences, and naturally, make these journeys so much more fun."

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Houston-based Mercury backed SmartAC.com in a follow-on round. Photo via of SmartAC.com

Houston-based startup secures fresh funding led by local investor to expand HVAC, plumbing platform

money moves

Houston-based SmartAC.com, which provides a customer loyalty management platform for contractors, has raised a follow-on round from Mercury Fund and other investors. The dollar amount of the round wasn’t disclosed.

An October filing with the U.S. Securities and Exchange Commission (SEC) indicates SmartAC.com planned to raise $8.2 million in venture capital. Of that sum, about $4 million had already been raised, the company reported, and nearly $4.2 million remained to be raised.

SmartAC.com's platform enables contractors in the HVAC and plumbing industries monitor, manage, and optimize their maintenance memberships through advanced sensors, AI-driven diagnostics, and proactive alerts.

“Growing a business in the trades is all about customer loyalty, and loyalty is driven by optimizing the customer’s experience,” Josh Teekell, founder and CEO of SmartAC.com, says in a news release. “SmartAC.com was built to perfect the experience of home comfort through data-driven insights that bring long-term value to homeowners and contractors alike.”

SmartAC.com says the new funding will enable expansion of its platform.

“Amid rising consumer demand for ‘smart home’ innovations, SmartAC.com is addressing a critical need for more sophistication in HVAC and plumbing through a technology-driven strategy,” says Heath Butler, a partner at Mercury Fund.

In 2020, SmartAC.com emerged from stealth mode and announced a $10 million series A round. The company raised a $22 million series B round in 2023.

PHIOGEN, based at Texas Medical Center Innovation, is headed to Austin next month. Photo courtesy of TMC

Houston biotech startup selected to pitch at SXSW

austin bound

Houston biotech startup PHIOGEN is among 45 finalists that will present at this year’s SXSW Pitch showcase in Austin.

PHIOGEN is one of five food, nutrition, and health startups that will participate in the pitch competition, set for March 9 and 10. A panel of judges will listen to the pitches and then pick the winners. Since 2009, SXSW Pitch finalists have raised more than $23.2 billion in funding.

PHIOGEN has developed the world’s first biogenetics technology platform to harness the power of bacteriophages in the fight against serious drug-resistant infections. Bacteriophages — viruses that are found in bacterial cells — “are ubiquitous in the environment and are recognized as the most abundant biological agent on earth,” according to an article published in 2022 by StatPearls.

Founded in 2023, PHIOGEN is a spinoff of the Baylor College of Medicine’s TAILOR Labs. The startup, based at the Texas Medical Center’s Innovation Hub, has attracted more than $5 million in funding.

“Nothing about our treatments is fabricated; it boils down to creating natural environments that mimic real-life infections, driving biological changes to create ‘super phages’ against the superbugs,” Amanda Burkardt, CEO of PHIOGEN, said in 2023. “As a result, we receive high-performing phage fighters that are trained and ready to deliver safe and effective treatments for clinical applications.”

Professional services firm KPMG is the main sponsor of SXSW Pitch.

Six of this year’s SXSW Pitch judges are from Houston:

Heath Butler of Mercury Fund
Jesse Martinez of LSA Global
Trevor Purvis of the Houston Astros
Anu Puvvada of KPMG
Irene Tang of StartOut
Nate Thompson of HTX Sports Tech

“2024 is an exciting year for startups, and we are looking forward to showcasing these inspiring companies that are making waves in their respective industries and the world as a whole, as well as help connect them with the resources needed to continue advancing,” says Chris Valentine, producer of SXSW Pitch.

Two Houston venture capitalists — Heath Butler and Stephanie Campbell — discussed how diversity and inclusion are force multipliers for investors and factoring that in is increasingly important. Photos courtesy

Houston experts: Diversity is key to venture capital success

force multiplying investments

Venture capital firms across the board have a goal of driving a return on their investments, but getting a good ROI and factoring in diversity and inclusion into the equation are not mutually exclusive.

In fact, on a panel at the HX Venture Fund's recent conference, Venture Houston, two investors focused on diversity and inclusion made the point that diversity is a key ingredient to successful investing. The panel, hosted by Michael Lipe, managing director at Insperity, consisted of Stephanie Campbell of The Artemis Fund and the Houston Angel Network and Heath Butler of Urban Capital Network and Mercury Fund.

"If you don't believe that diversity outperforms or that having diverse perspectives coming to the table helps your business outperform, then you probably have not been exposed to diverse thought," Campbell says on the panel.

And, as she continues, the proof is in the data "that diversity does outperform and can be a real force multiplier for your portfolio."

"In terms of returns, the Kauffman Fellows found that women-led teams generate 35 percent higher returns on investment than all-male-led teams," Campbell sites. "Pitchbook and All Raise found that women-led teams exit faster and at higher multiples than their all-male counterparts."

Butler recognizes that there's an emotional side of the discussion of diversity and inclusion — especially in this day and age — and that's nothing to disregard. But, he says, building onto that, VC is about discovering new opportunities — it's what VC funds' limited partners are expecting.

"From a more tangible perspective, we are in the business of finding untapped markets and opportunities to invest in and I believe our LPs expect us to leave no stone unturned," he says. "Ultimately you have to recognize that the hockey puck is moving in a direction where your LPs will require you to be looking under every stone to deliver a superior return."

Butler gives Mercury Fund as an example. At its founding, the team saw the middle of America as an untapped opportunity. The challenge is that investors tend to gravitate to ideas and people they know.

"So much of investing in early-stage innovation is intuitive, and investors will usually invest in what they know and resonates with them," Butler says. "But we have to recognize that there's a natural inefficiency in trying to relate intuitively to someone who's different from you."

The key is creating a team and mission with a clear intent and focus on measuring the impact. This goes down to hiring the right people with in your VC team as well as setting up a culture for diversity to succeed.

"If two hiring managers with similar needs," Butler says, "and one has a naturally inclusive mindset and the other feels pressure to meet a diversity quota — in the long run, which team will truly leverage and profit from a diverse perspective?"

Campbell says now is the time to invest in diversity — especially in Houston. During the pandemic, overall seed funding went up but funding for female founders reached a three-year low. Houston has a population doesn't have a racial majority — and that's what the entire country will look like in 2055, Campbell says.

"The opportunity we have in Houston to capitalize on diverse talent can really be a great opportunity to show the nation what can be done with that diverse talent pool," she says.

Houston also has an opportunity to support and invest in women or people of color who have been overlooked but have innovative solutions for society's most urgent problems.

"The more that we invest in diverse perspectives and diverse founders the more solutions, products, and services are going to come into the market for a broader populations and empower those economies to solve some of our deepest problems," Campbell says.

Both experts end on a call to action for their fellow investors: take inventory of the impact you have now and make intentional moves toward inclusion and equity — otherwise you're leaving money and talent on the table.

"If you don't have a diverse team, you don't have a diverse perspective, which means you have an incomplete perspective," Butler says. "You're missing out on opportunity to connect with people, purchasing power, and ultimately profits."

This week's roundup of Houston innovators includes Kathryn Worsham Humphries of All You Need Method, Heath Butler of Mercury Fund, and Serafina Lalany of HX. Courtesy photos

3 Houston innovators to know this week

who's who

Editor's note: In the week's roundup of Houston innovators to know, I'm introducing you to three innovators who have tons to share — from recent venture capital data and observations to public relations and marketing tips for startups.

Kathryn Worsham Humphries, co-founder of All You Need Method

What does your company plan on bringing into the new year — and how do you plan to communicate your efforts? Photo courtesy of All You Need Method

It's a new year — and it's time for a new marketing and public relations plan for your startup. Thankfully, that's exactly what Houstonian Kathryn Worsham Humphries and her Los Angeles-based business partner Carla M. Nikitaidis specialize in with their new company, All You Need Method. The duo penned a guest column for InnovationMap last week with tips for refocusing on your target audience and prioritizing authenticity.

"Remember, these challenging times will pass," they write. "There is massive opportunity for the businesses and brands who are willing to reflect, pivot, and plan for a brighter future." Read more.

Heath Butler, network partner at Mercury Fund

Mercury Fund's Heath Butler joins the Houston Innovators Podcast this week to discuss Houston, venture capital, and more. Photo via mercuryfund.com

After 14 years at human resources company Insperity, Heath Butler has a specialty when it comes to thinking about the future of work. Butler was recently promoted within Mercury and the the move represents another aspect the firm is focusing on — something Butler discusses on last week's Houston Innovators Podcast episode.

"The world continues to be shaped by how the workforce and the workplace — and the actual work gets — done, and that couldn't have been put to the forefront more than during COVID," Butler says. "The promotion really reflects my focus on building out a very broad and deep theme for the firm around the future of work." Read more and stream the episode.

Serafina Lalany, chief of staff at Houston Exponential

HX has released a report on Houston venture capital. Photo courtesy of Serafina Lalany

Serafina Lalany and her team at Houston Exponential have crunched the numbers again to look at what sort of venture capital deals Houston startups brought in last year.

According to her report based on Pitch Book data, the Bayou City dredged up $715 million across 117 VC deals in 2020 — a year marked by challenges and opportunities from the pandemic and the oil price drop.

In the report, Lalany found that 2020 VC trends in Houston included fewer, larger deals and a rise in angel investment. Read more.

Mercury Fund's Heath Butler joins the Houston Innovators Podcast this week to discuss Houston, venture capital, and more. Photo via mercuryfund.com

Houston VC fund's new partner to grow focus on the future of work and underrepresented entrepreneurs

HOUSTON INNOVATORS PODCAST EPISODE 67

When Mercury Fund was founded in 2005, the goal was to focus on funding underrepresented entrepreneurs.

"The firm was really built around looking for the underrepresented entrepreneur and 15 years ago, that was just the middle of the country, because all the VC investments were on the coasts," says Heath Butler, network partner, on the Houston Innovators Podcast. "And over the years, the firm has continued to look for the blue ocean in the VC market."

Nowadays, that means also finding and funding female entrepreneurs and entrepreneurs of color. And Butler co-founded the Urban Capital Network — a group that aims to democratize VC funding by helping connect minority entrepreneurs and VC firms — to do just that.

Butler was recently promoted within Mercury and the the move represents another aspect the firm is focusing on: the future of work. Butler spent 14 years at Houston-based human resources service company, Insperity.

Butler, who's on the board of several startups and hosts a monthly event with The Ion, is hands on with entrepreneurs and helps them make sure to keep their company culture front of mind as they grow.

"I grew up in an entrepreneurial family, led by my mother," he says. "I learned so much at such a young age around worth ethic and how the job of being an entrepreneur is."

Butler discusses more about his career and venture capital in Houston on the show. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

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Houston climbs to top 10 spot on North American tech hubs index

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Houston already is the Energy Capital of the World, and now it’s gaining ground as a tech hub.

On Site Selection magazine’s 2026 North American Tech Hub Index, Houston jumped to No. 10 from No. 16 last year. The index relies on data from Site Selection as well as data from CBRE, CompTIA and TeleGeography to rank the continent’s tech hotspots. The index incorporates factors such as internet connectivity, tech talent and facility projects for tech companies.

In 2023, the Greater Houston Partnership noted the region had “begun to receive its due as a prominent emerging tech hub, joining the likes of San Francisco and Austin as a major player in the sector, and as a center of activity for the next generation of innovators and entrepreneurs.”

The Houston-area tech sector employs more than 230,000 people, according to the partnership, and generates an economic impact of $21.2 billion.

Elsewhere in Texas, two other metros fared well on the Site Selection index:

Dallas-Fort Worth nabbed the No. 1 spot, up from No. 2 last year.
Austin rose from No. 8 last year to No. 7 this year.

San Antonio slid from No. 18 in 2025 to No. 22 in 2026, however.

Two economic development officials in DFW chimed in about the region’s No. 1 ranking on the index:

“This ranking affirms what we’ve long seen on the ground — Dallas-Fort Worth is a top-tier technology and innovation center,” said Duane Dankesreiter, senior vice president of research and innovation at the Dallas Regional Chamber. “Our region’s scale, talent base, and diverse strengths … continue to set DFW apart as a national leader.”
“Being recognized as the top North American tech hub underscores the strength of the entire Dallas-Fort Worth region as a center of innovation and next-generation technology,” said Robert Allen, president and CEO of the Fort Worth Economic Development Partnership.

While not directly addressing Austin’s Site Selection ranking, Thom Singer, CEO of the Austin Technology Council, recently pondered whether Silicon Hills will grow “into the kind of community that other cities study for the right reasons.”

“Austin tech is not a club. It is not a scene. It is not a hashtag, a happy hour, or any one place or person,” Singer wrote on the council’s blog. “Austin tech is an economic engine and a global brand, built by thousands of people who decided to take a risk, build something, hire others, and be part of a community that is still young enough to reinvent itself.”

South of Austin, Port San Antonio is driving much of that region’s tech activity. Occupied by more than 80 employers, the 1,900-acre tech and innovation campus was home to 18,400 workers in 2024 and created a local economic impact of $7.9 billion, according to a study by Zenith Economics.

“Port San Antonio is a prime example of how innovation and infrastructure come together to strengthen [Texas’] economy, support thousands of good jobs, and keep Texas competitive on the global stage,” said Kelly Hancock, the acting state comptroller.

14 Houston startups starting 2026 with fresh funding

cha-ching

Houston startups closed out the last half of 2025 with major funding news.

Here are 14 Houston companies—from groundbreaking energy leaders to growing space startups—that secured funding in the last six months of the year, according to reporting by InnovationMap and our sister site, EnergyCapitalHTX.com.

Did we miss a funding round? Let us know by emailing innoeditor@innovationmap.com.

Fervo Energy

Fervo Energy has closed an oversubscribed Series E. Photo via Fervo Energy

Houston-based geothermal energy company Fervo Energy closed an oversubscribed $462 million series E funding round, led by new investor B Capital, in December.

The company also secured $205.6 million from three sources in June.

“Fervo is setting the pace for the next era of clean, affordable, and reliable power in the U.S.,” Jeff Johnson, general partner at B Capital, said in a news release.

The funding will support the continued buildout of Fervo’s Utah-based Cape Station development, which is slated to start delivering 100 MW of clean power to the grid beginning in 2026. Cape Station is expected to be the world's largest next-generation geothermal development, according to Fervo. The development of several other projects will also be included in the new round of funding. Continue reading.

Square Robot

Houston robotics co. unveils new robot that can handle extreme temperatures

Square Robot's technology eliminates the need for humans to enter dangerous and toxic environments. Photo courtesy of Square Robot

Houston- and Boston-based Square Robot Inc. announced a partnership with downstream and midstream energy giant Marathon Petroleum Corp. (NYSE: MPC) last month.

The partnership came with an undisclosed amount of funding from Marathon, which Square Robot says will help "shape the design and development" of its submersible robotics platform and scale its fleet for nationwide tank inspections. Continue reading.

Eclipse Energy

Eclipse Energy and Weatherford International are expected to launch joint projects early this year. Photo courtesy of Eclipse Energy.

Oil and gas giant Weatherford International (NASDAQ: WFRD) made a capital investment for an undisclosed amount in Eclipse Energy in December as part of a collaborative partnership aimed at scaling and commercializing Eclipse's clean fuel technology.

According to a release, joint projects from the two Houston-based companies are expected to launch as soon as this month. The partnership aims to leverage Weatherford's global operations with Eclipse Energy's pioneering subsurface biotechnology that converts end-of-life oil fields into low-cost, sustainable hydrogen sources. Continue reading.

Venus Aerospace

Lockheed Martin Ventures says it's committed to helping Houston-based Venus Aerospace scale its technology. Photo courtesy Venus Aerospace

Venus Aerospace, a Houston-based startup specializing in next-generation rocket engine propulsion, has received funding from Lockheed Martin Ventures, the investment arm of aerospace and defense contractor Lockheed Martin, for an undisclosed amount, the company announced in November. The product lineup at Lockheed Martin includes rockets.

The investment follows Venus’ successful high-thrust test flight of its rotating detonation rocket engine (RDRE) in May. Venus says it’s the only company in the world that makes a flight-proven, high-thrust RDRE with a “clear path to scaled production.”

Venus says the Lockheed Martin Ventures investment reflects the potential of Venus’ dual-use technology for defense and commercial uses. Continue reading.

Koda Health

Tatiana Fofanova and Dr. Desh Mohan, founders of Koda Health, which recently closed a $7 million series A. Photo courtesy Koda Health.

Houston-based digital advance care planning company Koda Health closed an oversubscribed $7 million series A funding round in October.

The round, led by Evidenced, with participation from Mudita Venture Partners, Techstars and Texas Medical Center, will allow the company to scale operations and expand engineering, clinical strategy and customer success, according to a news release.

The company shared that the series A "marks a pivotal moment," as it has secured investments from influential leaders in the healthcare and venture capital space. Continue reading.

Hertha Metals

U.S. Rep. Morgan Luttrell, a Magnolia Republican, and Hertha Metals founder and CEO Laureen Meroueh toured Hertha’s Conroe plant in August. Photo courtesy Hertha Metals/Business Wire.

Conroe-based Hertha Metals, a producer of substantial steel, hauled in more than $17 million in venture capital from Khosla Ventures, Breakthrough Energy Fellows, Pear VC, Clean Energy Ventures and other investors.

The money was put toward the construction and the launch of its 1-metric-ton-per-day pilot plant in Conroe, where its breakthrough in steelmaking has been undergoing tests. The company uses a single-step process that it claims is cheaper, more energy-efficient and equally as scalable as conventional steelmaking methods. The plant is fueled by natural gas or hydrogen.

The company, founded in 2022, plans to break ground early this year on a new plant. The facility will be able to produce more than 9,000 metric tons of steel per year. Continue reading.

Helix Earth Technologies, Resilitix Intelligence and Fluxworks Inc.

Helix Earth's technology is estimated to save up to half of the net energy used in commercial air conditioning, reducing both emissions and costs for operators. Photo via Getty Images

Houston-based Helix Earth Technologies, Resilitix Intelligence and Fluxworks Inc. each secured $1.2 million in federal funding through the Small Business Innovation Research (SBIR) Phase II grant program this fall.

The three grants from the National Scienve foundation officially rolled out in early September 2025 and are expected to run through August 2027, according to the NSF. The SBIR Phase II grants support in-depth research and development of ideas that showed potential for commercialization after receiving Phase I grants from government agencies.

However, congressional authority for the program, often called "America's seed fund," expired on Sept. 30, 2025, and has stalled since the recent government shutdown. Continue reading.

Solidec Inc. (pre-seed)

7 innovative startups that are leading the energy transition in Houston

Houston-based Solidec was founded around innovations developed by Rice University associate professor Haotian Wang (far left). Photo courtesy Greentown Labs.

Solidec, a Houston startup that specializes in manufacturing “clean” chemicals, raised more than $2 million in pre-seed funding in August.

Houston-based New Climate Ventures led the oversubscribed pre-seed round, with participation from Plug and Play Ventures, Ecosphere Ventures, the Collaborative Fund, Safar Partners, Echo River Capital and Semilla Climate Capital, among other investors. Continue reading.

Molecule

Sameer Soleja is the founder and CEO of Molecule, which just closed its series B round. Photo courtesy of Molecule Software.

Houston-based energy trading risk management (ETRM) software company Molecule completed a successful series B round for an undisclosed amount, according to a July 16 release from the company.

The raise was led by Sundance Growth, a California-based software growth equity firm. Sameer Soleja, founder and CEO of Molecule, said in the release that the funding will allow the company to "double down on product innovation, grow our team, and reach even more markets." Continue reading.

Rarefied Studios, Solidec Inc. and Affekta

Houston startups were named among the nearly 300 recipients that received a portion of $44.85 million from NASA to develop space technology this fall. Photo via NASA/Ben Smegelsky

Houston-based Rarefied Studios, Solidec Inc. and Affekta were granted awards from NASA this summer to develop new technologies for the space agency.

The companies are among nearly 300 recipients that received a total agency investment of $44.85 million through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Phase I grant programs, according to NASA.

Each selected company received $150,000 and, based on their progress, will be eligible to submit proposals for up to $850,000 in Phase II funding to develop prototypes. The SBIR program lasts for six months and contracts small businesses. Continue reading.

Intuitive Machines

Intuitive Machines expects to begin manufacturing and flight integration on its orbital transfer vehicle as soon as 2026. Photo courtesy Intuitive Machines.

Houston-based Intuitive Machines secured a $9.8 million Phase II government contract for its orbital transfer vehicle in July.

The contract was expected to push the project through its Critical Design Review phase, which is the final engineering milestone before manufacturing can begin, according to a news release from the company. Intuitive Machines reported that it expected to begin manufacturing and flight integration for its orbital transfer vehicle as soon as this year, once the design review is completed.

The non-NASA contract is for an undisclosed government customer, which Intuitive Machines says reinforces its "strategic move to diversify its customer base and deliver orbital capabilities that span commercial, civil, and national security space operations." Continue reading.

NRG inks new virtual power plant partnership to meet surging energy demands

Powering Up

Houston-based NRG Energy recently announced a new long-term partnership with San Francisco-based Sunrun that aims to meet Texas’ surging energy demands and accelerate the adoption of home battery storage in Texas. The partnership also aligns with NRG’s goal of developing a 1-gigawatt virtual power plant by connecting thousands of decentralized energy sources by 2035.

Through the partnership, the companies will offer Texas residents home energy solutions that pair Sunrun’s solar-plus-storage systems with optimized rate plans and smart battery programming through Reliant, NRG’s retail electricity provider. As new customers enroll, their stored energy can be aggregated and dispatched to the ERCOT grid, according to a news release.

Additionally, Sunrun and NRG will work to create customer plans that aggregate and dispatch distributed power and provide electricity to Texas’ grid during peak periods.

“Texas is growing fast, and our electricity supply must keep pace,” Brad Bentley, executive vice president and president of NRG Consumer, said in the release. “By teaming up with Sunrun, we’re unlocking a new source of dispatchable, flexible energy while giving customers the opportunity to unlock value from their homes and contribute to a more resilient grid

Participating Reliant customers will be paid for sharing their stored solar energy through the partnership. Sunrun will be compensated for aggregating the stored capacity.

“This partnership demonstrates the scale and strength of Sunrun’s storage and solar distributed power plant assets,” Sunrun CEO Mary Powell added in the release. “We are delivering critical energy infrastructure that gives Texas families affordable, resilient power and builds a reliable, flexible power plant for the grid.”

In December, Reliant also teamed up with San Francisco tech company GoodLeap to bolster residential battery participation and accelerate the growth of NRG’s virtual power plant network in Texas.

In 2024, NRG partnered with California-based Renew Home to distribute hundreds of thousands of VPP-enabled smart thermostats by 2035 to help households manage and lower their energy costs. At the time, the company reported that its 1-gigawatt VPP would be able to provide energy to 200,000 homes during peak demand.

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This article originally appeared on EnergyCapitalHTX.com.

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