Here were Houston's top 5 fundraising stories in 2019

2019 IN REVIEW

Only time will tell how Houston did for startup fundraising in 2019, but in the meantime, here's what stories of venture capital tended on InnovationMap. Getty Images

Editor's note: As 2019 comes to a close, InnovationMap is looking back at the year's top stories in Houston innovation. When it came to the money raised in Houston, five stories of new funds and closed rounds trended among readers.

These 7 Houston startups closed millions in funding in September

Seven Houston startups are beginning October with fresh funding. Photo by Tim Leviston/Getty Images

September was a busy month for several Houston startups. Seven companies closed rounds throughout the month and are now beginning the fourth quarter of 2019 with fresh funds.

InnovationMap has rounded up these seven deals based on previous stories as well as new information. Scroll through to see which Houston startups are catching the eyes — and cashing the checks — of investors. To continue reading this top story, click here.

3 TMCx companies have raised funds while completing the Houston accelerator

Three companies in TMCx's current cohort are leaving the program with new funds. Courtesy of TMCx

The Texas Medical Center's accelerator program is wrapping up its Digital Health cohort this week with the culmination of its TMCx Demo Day, and, while all of the companies have something to celebrate, three have announced that they are leaving the program with fresh funds.

Meru, Roundtrip, and Sani Nudge have raised over $10 million between the three companies. All three will be presenting at the TMCx Digital Health Demo Day on June 6 with the 16 other companies in the cohort. To continue reading this top story, click here.

5 Houston startups beginning 2019 with new capital

These five companies are starting 2019 out with some cash, and here's what they plan on doing with it. Getty Images

Finding growing Houston startups is as easy as following the money, and a few local companies are starting 2019 strong with a recent round of funding closed. InnovationMap has rounded up a few recent raises to highlight heading into the new year. To continue reading this top story, click here.

Exclusive: Houston-based stadium ordering app closes near $1.3 million Seed round with plans to scale

Houston-based sEATz has closed a funding round and plans to reach more fans than ever this football season. Courtesy of sEATz

Fans across the country are headed to football stadiums this weekend to cheer on their teams, but only a few will have the luxury of ordering food, beer, and even merchandise from the comfort of their seats.

Houston-based sEATz has created a platform where fans can order just about anything their stadium has from an app. Much like any other ordering app, once the order is placed, a runner will pick up the food and deliver it to the customer for a small fee and a tip.

The startup is now preparing to scale up from seven venues to 10 before the year is over as well as launching a new version of the app thanks to an oversubscribed near $1.3 million Seed round led by Houston-based Valedor Partners. Houston-based Starboard Star Venture Capital also contributed to the round. SEATz has plans to launch its Series A round before the new year. To continue reading this top story, click here.

Female-led venture capital firm launches in Houston to move the needle on investment in women-owned companies

A new venture capital firm launched in Houston to focus on female-led startups. Courtesy of The Artemis Fund

Three powerhouse investment minds have teamed up to launch a female-focused seed and series A venture capital firm in Houston.

In its first $20 million fund, The Artemis Fund will invest in around 30 women-led companies, and will award a $100,000 investment prize at the Rice Business Plan Competition, which takes place April 4 through 6. According to the company's press release, The Artemis Fund is the first of its kind — being female-led and female-focused — in Houston.

"There is a wealth of female leadership in the Houston innovation ecosystem, and we would like to see the same representation in the investor the investor community to help female founders thrive," says Stephanie Campbell, co-founder and principal of The Artemis Fund. To continue reading this top story, click here.

Texas venture capital deals had a slow quarter, according to Crunchbase data. Getty Images

Houston sees underwhelming venture capital funds in Q3 2019, following larger Texas trend

funding fumble

The entire state of Texas saw an unimpressive third quarter of venture deals — especially compared to the second quarter's reports — and Houston was not immune.

The state reported $372.4 million fundraised by tech startups in Q3 of 2019, according to Crunchbase data, which is less than half of what was reported in Q3 of 2018 ($776.8 million) and what the state raked in the second quarter of this year ($830.6 million).

Houston brought in a measly $38.4 million last quarter, per Crunchbase, and compared to the $251 million raised by Houston companies in Q2, that drop stings. It's the lowest quarterly venture amount Houston's seen in over a year, and lower than Houston's $44.7 million reported for Q1. Zooming out a little, the city's venture reports remain a rollercoaster of sorts with strong quarters bookended by lousy ones.

Chart via InnovationMap using Crunchbase data.

Austin maintained its top spot on the Texas venture leader board with $236.4 million of Texas' total $372.4 million raised in Q3 2019, according to Crunchbase, but that's about $200 million less than the city raised in Q2. Meanwhile, Dallas — a city Houston usually competes with for the No. 2 spot — raised $70.3 million compared to its $126.7 million raised in Q2. The only region up in raises is categorized as "other Texas metros," which went from $7.3 million to $27.4 million between Q2 and Q3.

According to Crunchbase, the city's $38.4 million was raised in six deals between June and September 2019. The top deal of those six companies was raised by Axiom Space, which closed a $16 million in a seed round.

Crunchbase's Texas reporter, Mary Ann Azevedo, reminds readers that their proprietary data is subject to reporting delays.

"Actual deal counts and dollar volume totals are higher than what Crunchbase currently has on record, and the numbers we're reporting today are likely to change as more data gets added to Crunchbase over time," she writes.

Just like Crunchbase, InnovationMap doesn't get to report on every single venture deal. However, here are some of the raises we covered in the third quarter of this year.

Spruce, a service provider for apartment residents, raised a $3 million round in July. The company moved its headquarters to Austin around the same time. Read more.
Grab, a mobile software company that's designed an airport mobile ordering app, closed a multimillion-dollar series A this summer. Read more.
Fannin Partners LLC, an early-stage life science commercialization company, closed a $5.25 million round this summer. Read more.
Voyager, a bulk shipping software company, raised $1.5 million in seed funding in August. Read more.
Cemvita Factory, which created a way to mimic photosynthesis, raised an undisclosed amount from corporate partners in August and September. Read more.
Galen Data, which uses its cloud-based software to connect medical devices, closed a $1 million seed round in September. Read more.
Syzygy Plasmonics, a hydrogen fuel cell creator, closed a $5.8 million Series A round in September. Read more.
sEATz, an app that allows in-seat ordering, closed a $1.3 million seed round in September. Read more.
Sourcewater Inc., which specializes in oilfield water intelligence, closed its series A round at $7.2 million in September. Read more.
Topl, a blockchain developer, raised over $700,000 in its seed round in September. Read more.

Seven Houston startups are beginning October with fresh funding. Photo by Tim Leviston/Getty Images

These 7 Houston startups closed millions in funding last month

Venture adventures

September was a busy month for several Houston startups. Seven companies closed rounds throughout the month and are now beginning the fourth quarter of 2019 with fresh funds.

Galen Data

Houston-based Galen Data is growing its clientbase and just formed two new partnerships with medical device companies. Photo via galendata.com

Texas Halo Fund led a Houston startup's seed round last month. Galen Data, which uses its cloud-based software to connect medical devices, closed a $1 million seed round thanks to the fund's $250,000 investment. Kevin King, one of Texas Halo Fund's managing director, has also been named to the startup's board of directors.

According to the release, the Texas Halo Fund based its decision for the investment "on the large and growing addressable market of connected medical devices, the company's impressive management team, and post revenue status."

Galen Data's emergence comes as the market for internet-connected mobile health apps keeps growing. One forecast envisions the global space for mobile health exceeding $94 billion by 2023.

"We want to be at the forefront of that technology curve," DuPont tells InnovationMap in a previous interview. "We might be six months early, we might be a year early, but it's starting to happen."

Earlier this year, Galen Data formed strategic partnerships with medical device companies. Click here to read more about those.

SurfEllent

Photo via surfellent.com

SurfEllent, an anti-icing coating technology startup founded out of the University of Houston has raised $470,000 in funding. The company won the second place award and a total of $45,000 at the Texas A&M New Ventures competition before receiving an anonymous investment of $350,000 in seed funding. SurfEllent also received two grants: a $50,000 Small Business Innovation Research grant and a $24,999 Small Business Technology Transfer grant.

"Ice is a problem that will exist as long as we live on the earth. It impacts a wide range of things, including aircraft wings and engines, automobiles, buildings and bridges, ships and vessels, and power transmission systems," says SurfEllent Co-Founder Hadi Ghasemi, a Bill D. Cook Associate professor of mechanical engineering at the UH Cullen College of Engineering, says in a news release.

SurfEllent's product can be used in the de-icing of cars and airplane engines.

"The end goal is to improve the quality of human life," Ghasemi says in the release. "This recognition is another proof of the critical need for advanced anti-icing coating technologies and opens opportunities for collaboration with various industries and business partners."

Cemvita Factory

In August, Occidental Petroleum's Oxy Low Carbon Ventures LLC invested in Houston-based Cemvita Factory, and in September, BHP followed suit. While Cemvita Factory isn't able to disclose how much money its raised through these partnerships, the company confirms it has closed its round of funding.

Cemvita Factory is run by a brother-sister team. Moji and Tara Karimi built the company off of Tara's research into mimicking photosynthesis. The process is able to help reduce energy company's carbon emissions.

"We have an ambitious goal to take one gigaton of CO2 out of the carbon cycle in the next decade and are very excited about being a part of Occidental's journey to become a carbon-neutral company," says Tara, co-founder and chief scientist, in a news release.

The investments will help Cemvita Factory continue to develop its biomimicry technology for oil and gas applications to reduce the volume of greenhouse gas emissions.

Sourcewater

It might not be surprising to discover that the energy capital of the world is a hub for energy startups. Getty Images

Houston-based Sourcewater Inc., which specializes in oilfield water intelligence, closed its series A round at $7.2 million. Bison Technologies, Marubeni Corp., and major energy family offices in Houston, Midland, Dallas, and Oklahoma City contributed to the round. The funds will go toward further developing the company's technology.

"For every barrel of oil produced in the Permian Basin there are more than ten barrels of associated water that are sourced, recycled, transported, and disposed of," says Joshua Adler, founding chief executive of Sourcewater, in a news release. "When America became the world's leading energy producer last year, it also became the world's leading water producer, times ten. Water management is now the majority of upstream energy production cost, and water sourcing, recycling and disposal capacity is the primary constraint on America's energy future."

Read more about the raise here.

SEATz

Houston startup sEATz has created a platform where fans can order just about anything their stadium has from an app. Much like any other ordering app, once the order is placed, a runner will pick up the food and deliver it to the customer for a small fee and a tip.

The startup is now preparing to scale up from seven venues to 10 before the year is over as well as launching a new version of the app thanks to an oversubscribed near $1.3 million seed round led by Houston-based Valedor Partners. Houston-based Starboard Star Venture Capital also contributed to the round. SEATz has plans to launch its Series A round before the new year.

"We're building enterprise-level, scalable in-seat ordering, delivery, and pick-up software. We'll have all the data and validation we need this fall to really start to push that out," says CEO and co-founder Aaron Knape.

Syzygy

Earlier this year, Trevor Best, CEO of Syzygy Plasmonics, walked away from EarthX $100,000 richer. Now, he has an even bigger check to cash. Photo via LinkedIn

Using research that came out of Rice University, Syzygy Plasmonics has developed a hydrogen fuel cell technology that produces a cheaper source of energy that releases fewer carbon emissions.

The company just closed a $5.8 million Series A round led by MIT's The Engine and Houston-based The GOOSE Society of Texas. Evok Innovations, a previous investor in the company, and angel investors from the Creative Destruction Lab also contributed to the round.

"We're starting to solidify relationships and get customers ready," CEO Trevor Best tells InnovationMap.

Topl

Houston-based Topl can track almost anything using its blockchain technology. Getty Images

Houston-based Topl, a blockchain network with applications across industries, closed a 20 percent oversubscribed $700,000 seed round.

"Every investor that is invested now has focused on both the purpose and the profit, and I'm big on that," Kim Raath, president and co-founder of Topl, says.

The team has built six blockchain platforms that operate on the Topl network — two are live now, and four will go live later this year. The platforms are focused on four different areas: agriculture (tracking food products from the farm to the shelves), mining (diamonds, for instance), sustainability and impact (tracking a program to see how it succeeds), and carbon credits and renewables within the energy industry.

Click here to read more about the raise and what it means to Topl's technology.

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UTHealth Houston team joins NASA initiative to protect border drinking water

water watch

Climate change means far more to public health than living with hotter days. Transformations in our weather are contributing to challenges in accessing safe drinking water in some communities.

One of the most dire situations is along the US–Mexico border. The National Aeronautics and Space Administration (NASA) is seeking to address that issue with its Water Quality Applications program. An 11-researcher project led by a UTHealth Houston School of Public Health faculty member has been selected to participate.

“Drinking water is one of the most fundamental public health protections, but producing safe drinking water involves a delicate balance,” Yun Hang, assistant professor of environmental and occupational health sciences, said in a news release. Her team’s proposal was one of 93 that were submitted for funding through NASA’s Research Opportunities in Space and Earth Sciences (ROSES)-2025 program.

This is the first time that NASA has worked with a team devoted to water quality applications. The group, which includes researchers from across the nation, will use satellite observations of Earth, as well as hydrologic modeling, to potentially anticipate and act on water quality conditions as they change. Challenges addressed over the course of the three-year program, which kicked off in June, might include problems with water quality due to climate variability and increased pressure on water resources.

Hang’s team will focus on a pair of borderlands: Paso del Norte and the Rio Grande Valley.

“Working closely with El Paso Water ensures that our research addresses real operational needs while helping utilities better prepare for climate-related water quality changes and continue providing safe drinking water to communities across the Texas border region,” Hang added in the release.

She and the team will use data gathered by NASA on both past and future Earth-observing missions, which will allow them to track environmental changes that may affect source water quality. Combined with past water treatment records and hydrologic models, the team will also utilize artificial intelligence to develop predictive tools that aim to stop issues before they become larger hurdles to water safety.

Another one of the project’s goals is to create visualization tools and source water summaries that can be utilized by those without scientific expertise. The tools will be produced in English and Spanish to further broaden their accessibility.

The hope is that the materials made by the team will also go far beyond the border, with protocols that can be adapted or adopted by other areas dealing with water quality issues.

U.S. News declares Houston hospital No. 1 in Texas for the 15th year

Top of the Chart

Houston Methodist Hospital and over a dozen more Houston-area hospitals have earned bragging rights in U.S. News & World Report's newly released rankings of the Best Hospitals for 2026-2027.

Every year, U.S. News annually evaluates nearly 4,500 U.S. hospitals to determine which meet the publication's rigorous standards and offer the best care for patients across 14 adult specialties and 23 procedures and conditions. New to this year's batch of rankings, U.S. News introduced regional rankings in cancer; cardiology; heart and vascular surgery; orthopedics; and rehabilitation.

Houston Methodist Hospital was the only Texas institution named on U.S. News' Best Hospitals Honor Roll, a prestigious list of the 20 best medical centers in the country. Houston Methodist also reigns as Texas' best hospital for the 15th consecutive year.

The hospital also shines among the nation’s best in 10 specialties:

No. 5 – Gastroenterology and GI Surgery
No. 7 – Obstetrics and Gynecology
No. 10 – Cardiology, Heart, and Vascular Surgery
No. 11 – Pulmonology and Lung Surgery
No. 13 – Neurology and Neurosurgery
No. 19 – Cancer
No. 21 – Orthopedics
No. 23 – Diabetes and Endocrinology
No. 24 – Geriatrics
No. 43 – Urology

Houston Methodist also earned high performing distinctions across one regional specialty (Rehabilitation) and 21 procedures and conditions.

"This recognition reflects the remarkable dedication of our physicians and employees and their tireless focus on delivering unparalleled care to our patients," said Houston Methodist president and CEO Marc L. Boom, M.D. in a press release. "While we are honored by this recognition, its true significance lies in what it represents — an unwavering commitment to putting patients first."

Elsewhere in Houston, The University of Texas MD Anderson Cancer Center ranked as the No. 1 best cancer hospital in the nation for the 12th year in a row.

"This ranking is a tremendous honor, and it reflects our unwavering commitment to continue making progress in our mission to end cancer," said UT MD Anderson president Peter WT Pisters, M.D. "We are deeply grateful to everyone who made this recognition possible: our faculty and staff, volunteers, donors, and the patients and families we are honored to serve."

MD Anderson also earned national rankings in two specialties — Urology (No. 6) and Gastroenterology and GI Surgery (No. 16) — and it received high performing distinctions in six procedures and conditions: Colon Cancer Surgery; Ear, Nose, and Throat Surgery; Gynecological Cancer Surgery; Leukemia, Lymphoma, and Myeloma Treatment; Lung Cancer Surgery; and Prostate Cancer Surgery.

The additional Houston hospitals that ranked among the best in Texas for 2026-2027 are:

No. 3 – Houston Methodist Sugar Land Hospital (tied with Baylor University Medical Center Dallas)
No. 5 – Baylor St. Luke's Medical Center, Houston
No. 6 – Memorial Hermann Hospital, Houston
No. 7 – Houston Methodist The Woodlands Hospital
No. 10 – Memorial Hermann Greater Heights Hospital (tied with St. David's Medical Center, Austin)
No. 14 – Houston Methodist Baytown Hospital
No. 15 – Memorial Hermann Memorial City Medical Center, Houston
No. 21 – Houston Methodist Clear Lake Hospital, Nassau Bay; St. Luke's Health-The Woodlands Hospital; University of Texas Medical Branch, Galveston (also tied with six more Texas hospitals)
No. 30 – Memorial Hermann Sugar Land Hospital (tied with five other Texas hospitals)
No. 36 – HCA Houston Healthcare Kingwood (tied with Parkland Health-Dallas)

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This article originally appeared on CultureMap.com.

Houston helps power Texas’ rise as AI infrastructure hub, new report finds

eyes on ai

Houston plays a major role in Texas’ rapidly evolving AI economy, a new report indicates.

The report from Build American AI, a pro-AI advocacy group, notes Houston’s growing AI presence includes:

A factory being built by AI chipmaker NVIDIA and electronics manufacturer Foxconn that will produce AI supercomputers and infrastructure systems
Houston Methodist’s use of ambient AI to listen to health care providers’ conversations with patients, eliminating the need for manual notetaking
An abundance of AI products and services for the energy sector

Across the state, billions of dollars in new AI investments are fueling advancements in construction, manufacturing, energy production, logistics, and health care, according to the report.

“Texas is not merely a place where AI products will be used. Texas is becoming one of the places where the AI economy is being assembled,” the report says.

Particularly noteworthy are four major AI-related projects around the state representing an investment of more than $140 billion, including Google’s $40 billion buildout of AI data centers.

“While California had a headstart in building the software era, Texas will build the infrastructure era,” says the report. “That is not a slogan. Economic research has revealed for decades that innovation happens where the local conditions make building and collaboration possible, and Texas is positioned to be a central hub.”

According to the report, components of Texas’ infrastructure era include:

Energy leadership
Top-tier hospitals
Semiconductor investments
Construction capabilities
Data center growth
Major companies and universities

On the workforce front, Stanford University’s 2026 AI Index found Texas had 80,547 AI job postings in 2025, accounting for 8 percent of the national total.

“Texas no longer needs to ask whether AI will reshape the economy. It already has,” the report concludes. “The question is whether Texas will merely host part of that future or lead it.”

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