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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Houston is poised to lead 5G growth in Texas, according to a new report

leading the stream

Based on one key measure, Houston sits at the forefront of a telecom revolution that could spark a regional economic impact of more than $30 billion.

Data published recently by the Texas Comptroller's Office points out that as of last November and December, Houston led all cities in Texas for the number of so-called "small cells." Small cells are a key component in the rollout of ultra-high-speed 5G wireless communication throughout the Houston area and the country.

As the Texas Comptroller's Office explains, small cells are low-powered antennas that communicate wirelessly via radio waves. They're usually installed on existing public infrastructure like street signs or utility poles, instead of the big communication towers that transmit 4G signals.

The comptroller's tally shows Houston had approved 5,455 small-cell sites as of the November-December timeframe. That dwarfs the total number of sites (1,948) for the state's second-ranked city, Dallas.

"Houston is in the vanguard of small cell permitting in Texas, and not just because it's the state's largest city; advocates have lauded its proactive approach to 5G. Other cities, particularly smaller ones, are lagging well behind," the Comptroller's Office notes.

According to CTIA, a trade group for the wireless communications industry, 5G holds the promise to deliver an economic impact of $30.3 billion in the Houston area and create 93,700 jobs. The group says industries such as health care, energy, transportation, e-commerce, and logistics stand to benefit from the emergence of 5G.

"Maintaining world-class communications infrastructure is a requirement for success in a rapidly changing global economy. Small cells and fiber technology are the key foundational components for network densification and robust 5G. Cities like Houston that have embraced the need for this infrastructure will see the benefits of 5G faster than others," Mandy Derr, government affairs director at Houston-based communications infrastructure REIT Crown Castle International Corp. and a member of the Texas 5G Alliance, tells InnovationMap.

Derr says leaders in Houston have embraced the importance of small-cell technology through "reasonable and effective" regulations and processes aimed at boosting 5G capabilities. Three major providers of wireless service — AT&T, T-Mobile, and Verizon — offer 5G to customers in the Houston area.

"More small cells and fiber provide greater and faster access for the masses, enabling the connectivity that is essential to our businesses today — whether it's accepting payments on a mobile card reader, completing a sale on the go, or reliably reaching consumers where they are," Derr says.

In a blog post, Netrality Data Centers, which operates a data center in Houston, proclaims that Houston is shaping up to be a hub of 5G innovation.

"Houston has always been on the frontline," Mayor Sylvester Turner said during a 5G roundtable discussion in 2019. "It is who we are. It is in our DNA. We are a leading city. We didn't wait for somebody else to go to the moon. Or to be the energy capital of the world. Or the largest medical center in the world. But you don't stay at the front if you don't continue to lead."

Houston lands on list of nation's top spots for millennials on the move

migration destination

The Bayou City is shining as an attractive destination for young people on the move.

According to the fifth-annual study from SmartAsset, millennials are fleeing cities like Los Angeles and Chicago and migrating to other areas in search of work and a better quality of life, with Houston landing as the No. 18 spot for young professionals age 25 to 39.

In order to compile the list, SmartAsset dug into U.S. Census Bureau data from all 50 states, the District of Columbia, and 180 specific cities. According to the findings, 18,035 millennials moved in to Houston in 2019, while 15,838 moved out. That makes a net migration of 2,197, per the study.

When it comes to migrating millennials, the Lone Star State is tops, landing at No. 1 for states where millennials are moving, with more than 187,000 young people heading to Texas in the pre-pandemic year. Though some 154,000 millennials left Texas during the same time period, this results in a net gain of more than 33,000 millennial residents, the biggest net gain for the group in the country, giving Texas the lead in millennial migration for the second year in a row.

In news that is hardly shocking, Austin landing as the No. 4 hot spot overall.

While Austin ranks as the top Texas city where millennials are moving, one other Texas spot landed in the top 10, the Dallas suburb of Frisco (No. 6), with a net migration of 3,516 out-of-state millennials in 2019.

Dallas just missed the top 10, landing at No. 11 on the list, with a net millennial migration of 2,525 in 2019. San Antonio (No. 22) showed a net migration of 1,865 millennials.

The top city overall for millennial migration in 2019 was Denver, followed by Seattle.

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This article originally ran on CultureMap.

5 most popular innovation stories in Houston this week

what's trending

Editor's note: Another week has come and gone, and it's time to round up the top headlines from the past few days. Trending Houston tech and startup news on InnovationMap included innovators to know, self-driving pizza deliveries launching, a Houston startup with big funding news, and more.

3 Houston innovators to know this week

This week's roundup of Houston innovators includes Grace Rodriguez of Impact Hub Houston, Youngro Lee of NextSeed, and Liz Youngblood of Baylor St. Luke's Medical Center. Courtesy photos

In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — startup development, fintech, and health care — recently making headlines in Houston innovation. Continue reading.

Self-driving pizza delivery goes live in Houston

Domino's and Nuro announced their partnership in 2019 — and now the robots are hitting the roads. Photo courtesy of Nuro

After announcing their partnership to work on pizza deliveries via self-driving robots in 2019, Dominos and Nuro have officially rolled out their technology to one part of town.

Beginning this week, if you place a prepaid order from Domino's in Woodland Heights (3209 Houston Ave.), you might have the option to have one of Nuro's R2 robot come to your door. This vehicle is the first do deliver completely autonomously without occupants with a regulatory approval by the U.S. Department of Transportation, according to a news release.

"We're excited to continue innovating the delivery experience for Domino's customers by testing autonomous delivery with Nuro in Houston," says Dennis Maloney, Domino's senior vice president and chief innovation officer, in the release. "There is still so much for our brand to learn about the autonomous delivery space. This program will allow us to better understand how customers respond to the deliveries, how they interact with the robot and how it affects store operations." Continue reading.

Over $1.4M in prizes awarded at Rice University's student startup competition

Auburn University's SwiftSku took first place in this year's virtually held Rice Business Plan Competition, but it was the second place company that went home with over half a million in cash and investment prizes. Photo via rice.edu

In its 21st year, the Rice Business Plan Competition hosted 54 student-founded startups from all over the world — its largest batch of companies to date — and doled out over $1.4 million in cash and investment prizes at the week-long virtual competition.

RBPC, which is put on by the Rice Alliance for Technology and Entrepreneurship, took place Tuesday, April 6, to Friday, April 9 this year. Just like 2020, RBPC was virtually held. The competition announced the 54 participating startups last month, and coordinated the annual elevator pitches, a semi-finals round, wildcard round and live final pitches. The contestants also received virtual networking and mentoring. Continue reading.

Houston alternative energy startup raises $23M series B with global support

Syzygy Plasmonics has raised $23 million thanks to international support. Photos via plasmonics.tech

A Houston startup founded based off research coming out of Rice University has closed its series B funding, the company announced this week.

Founded in 2017, Syzygy Plasmonics is a chemical company developing a photocatalyst-powered hydrogen fuel cell technology that produces a cheaper source of energy that releases fewer carbon emissions. As of this week, the company has $23 million more to fund its scaling and grow its team thanks to the closing of its series B financing led by Hong Kong-based Horizons Venture. Equinor Ventures, a new investor, also joined in on the round, along with previous seed and series A investors including The Engine, GOOSE Capital, and Evok Innovations.

"With renewable electricity as an energy source, our technology is cleaner, and because of the stability and activity of our photocatalysts, we can drive dozens of possibilities, tuning reactions that produce different chemicals," says Trevor Best, Syzygy Plasmonics' co-founder and CEO, in a news release. "Our initial product will focus on eliminating emissions from hydrogen production, transforming the industrial process involved in making semiconductors, LEDs and metals. Our system will also enable industries that are consumers of hydrogen fuel cells, like fuel cell vehicles." Continue reading.

Houston Climathon winning microgrid solution is more important now than ever

One of the winning teams at Climathon has an idea for a microgrid system in Houston's emerging innovation corridor. Photo via houston.org

More than 6,000 participants in 145 cities around the world gathered virtually for last year's Climathon, a global event put on by Impact Hub Houston to unite innovators and collaborate on climate solutions. When Winter Storm Uri left the Texas energy grid in a state of crisis, one Climathon Houston team's proposal for energy reliability became all the more important.

Last year, the City of Houston unveiled its first Climate Action Plan to address the city's challenges and strive to lead the energy transition. It was the perfect roadmap for Climathon Houston, a hackathon where eleven teams gathered to develop and pitch a concept to align with the city's new plan.

Of the three winning teams, one idea was prescient in its approach to energy. Six energy-focused Texans drew up plans for InnoGrid, a cost-effective strategy to build the first microgrid in Houston. What started as a pitch has become a developed proposal gaining collaborator and city interest in the wake of Uri. Continue reading.

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