The Incubator/Accelerator of the Year finalists support startups ranging from hard-tech companies to digital health startups. Photo courtesy of TMC.

Houston is home to numerous accelerators and incubators that support founders in pushing their innovative startups and technologies forward.

As part of our 2025 Houston Innovation Awards, the new Incubator/Accelerator of the Year category honors a local incubator or accelerator that is championing and fueling the growth of Houston startups.

Five incubators and accelerators have been named finalists for the 2025 award. They support startups ranging from hard-tech companies to digital health startups.

Read more about these organizations below. Then join us at the Houston Innovation Awards on Nov. 13 at Greentown Labs, when the winner will be unveiled.

Get your tickets now on sale for this exclusive event celebrating Houston Innovation.

Activate

Hard tech incubator Activate supports scientists in "the outset of their entrepreneurial journey." The Houston hub was introduced last year, and joins others in Boston, New York, and Berkley, California—where Activate is headquartered. It named its second Houston cohort this summer.

This year, the incubator grew to include its largest number of concurrent supported fellows, with 88 companies currently being supported nationally. In total, Activate has supported 296 fellows who have created 236 companies. Those companies have raised over $4 billion in follow-on funding, according to Activate. In Houston, it has supported several Innovation Awards finalists, including Solidec, Bairitone Health and Deep Anchor Solutions. It is led locally by Houston Managing Director Jeremy Pitts.

EnergyTech Nexus

Cleantech startup hub EnergyTech Nexus' mission is to accelerate the energy transition by connecting founders, investors and industrial stakeholders and helping to develop transformative companies, known as "thunderlizards."

The hub was founded in 2023 by CEO Jason Ethier, Juliana Garaizar and Nada Ahmed. It has supported startups including Capwell Services, Resollant, Syzygy Plasmonics, Hertha Metals, EarthEn Energy and Solidec—many of which are current or past Innovation Awards finalists. This year Energy Tech Nexus launched its COPILOT Accelerator, powered by Wells Fargo Innovation Incubator (IN²) at the National Renewable Energy Laboratory (NREL). COPILOT partners with Browning the Green Space, a nonprofit that promotes diversity, equity and inclusion (DEI) in the clean energy and climatech sectors. Energy Tech Nexus also launched its Liftoff fundraising program, its Investor Program, and a "strategic ecosystem partnership" with Greentown Labs.

Greentown Labs

Climatetech incubator Greentown Labs offers its community resources and a network to climate and energy innovation startups looking to grow. The collaborative community offers members state-of-the-art prototyping labs, business resources and access to investors and corporate partners. The co-located incubator was first launched in Boston in 2011 before opening in Houston in 2021.

Greentown has seen major changes and activity this year. In February, Greentown announced Georgina Campbell Flatter as its new CEO, along with a new Board of Directors. In July, it announced Lawson Gow as its Head of Houston, a "dedicated role to champion the success of Greentown Houston’s startups and lead Greentown’s next chapter of impact in the region," according to Greentown. It has since announced numerous new partnerships, including those with Energy Tech Nexus, Los Angeles-based software development firm Nominal, to launch the new Industrial Center of Excellence; and Houston-based Shoreless, to launch an AI lab onsite. Greentown Houston has supported 175 startups since its launch in 2021, with 45 joining in the last two years. Those startups include the likes of Hertha Metals, RepAir Carbon, Solidec, Eclipse Energy (formerly GoldH2) and many others.

Healthtech Accelerator (TMCi)

The Healthtech Accelerator, formerly TMCx, focuses on clinical partnerships to improve healthcare delivery and outcomes. Emerging digital health and medical device startups that join the accelerator are connected with a network of TMC hospitals and seasoned advisors that will prepare them for clinical validation, funding and deployment.

The Healthtech Accelerator is part of Texas Medical Center Innovation, which also offers the TMCi Accelerator for Cancer Therapeutics. The Healthtech Accelerator named its 19th, and latest, cohort of 11 companies last month.

Impact Hub Houston

Impact Hub Houston supports early-stage ventures at various stages of development through innovative programs that address pressing societal issues. The nonprofit organization supports social impact startups through mentorship, connections and training opportunities.

There are more than 110 Impact Hubs globally with 24,000-plus members spanning 69 countries, making it one of the world’s largest communities for accelerating entrepreneurial solutions toward the United Nations' Sustainable Development Goals (SDGs).

---

The Houston Innovation Awards program is sponsored by Houston City College Northwest, Houston Powder Coaters, FLIGHT by Yuengling, and more to be announced soon. For sponsorship opportunities, please contact sales@innovationmap.com.



Over 500 members of Houston's innovation community showed up to celebrate the best and brightest of the ecosystem. Photo by Emily Jaschke/InnovationMap

Get your tickets to the 2025 Houston Innovation Awards today

Ticket Time

We're just one week away from the 2025 Houston Innovation Awards, and it's time to secure your seat for the annual event.

Join us on Nov. 13 at Greentown Labs for an intimate evening of networking and celebrating Houston's extensive innovation community. We'll honor the trailblazers and visionaries who are shaping the future of our city, and you'll connect with like-minded individuals, industry leaders, investors, and entrepreneurs.

From burgeoning startups to fast-growing scaleups, we'll celebrate outstanding nominees across 10 prestigious categories and unveil this year's winners during our live awards ceremony. Be in the room to see who is named 2025 Startup of the Year, 2025 Mentor of the Year, and more.

Individual tickets are available for $45 and include complimentary light bites, drinks, and non-reserved seating. A limited number of Founder Tickets are available for startup founders at a special discounted price of $35.

Bringing a group? Corporate 10-packs include light bites and drinks, as well as a full row of reserved seating for 10 guests, complete with company branding.

The event is just a week away, so secure your seats today. Then, get to know the finalists in each category via our editorial spotlights.

---

The Houston Innovation Awards program is sponsored by Houston City College Northwest, Houston Powder Coaters, FLIGHT by Yuengling, and more to be announced soon. For sponsorship opportunities, please contact sales@innovationmap.com.

Wade Pinder, pictured at the 2023 Innovation Awards. Photo by Emily Jaschke/InnovationMap

Houston Innovation Awards to honor Wade Pinder as 2025 Trailblazer

And the award goes to...

On Nov. 13, we'll gather for the 2025 Houston Innovation Awards to celebrate the best and brightest in Houston innovation right now. And, as is tradition with the annual program, we'll honor one longstanding Houston innovator with the Trailblazer Award.

The award was established to recognize an individual who has left a profound impact on Houston's business and innovation ecosystem and is dedicated to continuing to support Houston and its entrepreneurs. The recipient is selected by our esteemed panel of judges from a pool of internal and external recommendations.

The 2025 Trailblazer Award recipient is Wade Pinder of Product Houston. A familiar face to those active in Houston's innovation sector, Pinder identifies as an "Ecosystem Wayseeker" and is the founder of Product Houston.

Pinder, a former product manager at Blinds.com, arrived in Houston in 2008 and has been deeply engaged in Houston’s startup and innovation scene since 2012. Over the years, he has supported hundreds of founders, product leaders, and community builders across the Houston area.

In 2023, he was honored as Mentor of the Year in the Houston Innovation Awards. Today, he fosters collaboration, clarity, and connection through his work at Product Houston, and he helps innovators find their place in the local sector via his monthly "Houston Ecosystem Mapping" sessions.

Read below for Pinder's insightful takes on the Houston innovation scene and what it means to blaze a new trail. Then, join us as we celebrate Pinder and all of our nominees and winners at the 2025 Houston Innovation Awards on Nov. 13 at Greentown Labs. Tickets are available now.

InnovationMap: Describe the growth of the Houston innovation ecosystem from your arrival in 2008 to now.

Wade Pinder: When I first arrived in Houston in 2008, the innovation ecosystem was more fragmented than it is today. Connecting with other innovators often meant attending a lot of hit-or-miss events. Over the years, it’s been incredible to see the network take shape and grow into a true community. I’ve had the privilege of being involved with several coworking spaces and accelerator programs along the way, and it’s been especially exciting to see Station Houston evolve into what is now the Ion District. What makes the Ion unique is how it blends openness and opportunity… ideas spill into and out of the space, and anyone can walk in, participate in programming, and find themselves in proximity to people who might help them take the next steps.

Additionally, the expansion of spaces like Texas Medical Center Innovation, Helix Park, The Cannon, and many others, have broadened Houston’s innovation landscape in powerful ways.

Today, when someone new moves to Houston and wants to plug into the startup and innovation scene, it’s much easier for them to find their way than when I moved here in 2008. I think that’s something Houston can really be proud of.

IM: As someone who engages with the broader Houston innovation community on a regular basis, what are the shared characteristics and traits that you see among its members?

WP: One of the things that makes Houston’s innovation community unique is how deeply it’s rooted in industry. So many of the innovators I meet come from within Houston’s major sectors, and they’ve seen firsthand where opportunities lie, which gives their innovation a certain practicality. They’re developing solutions that solve real, often complex, business and industry problems, not chasing trends or trying to create the next flashy consumer app.

What I admire most is that this community is growing in its understanding of the value of collaboration. They work with the systems and expertise that already exist, and find better ways to make them work together. Another shared trait I see across Houston’s innovators is a deep sense of curiosity and a drive to question the status quo while looking for better ways to build, improve, and solve.

IM: You’ve said, "Houston has Houston problems, and Houston needs Houston solutions." How do you see this taking shape in the innovation sector right now?

WP: When I first started getting connected to Houston’s startup and innovation scene in 2012, I noticed folks had a tendency to look at other cities and ask, "How can we do what they did?" Back then, we saw phrases like "Silicon Bayou" pop up, and while that enthusiasm was hopeful, it often discounted the things that make Houston unique. Over time, I’ve come to believe that the better question is: "What are we already great at, and how can we innovate from there?" The flip side of that question is to reflect on the things that hold us back as an ecosystem… identifying the friction points and finding practical ways to smooth them out.

From my time wandering around our ecosystem, I’ve come to understand Houston is great at infrastructure at scale, solving life-and-death challenges in the global spotlight, and "boldly going where no one’s gone before." These three things, in my opinion, capture the essence of Houston does best: We do hard things here.

What excites me today is that we’re applying innovation to those core strengths in ways that feel authentically Houston. One area I’m especially excited about is the emergence of the “New Space Economy,” captured beautifully in Wogbe Ofori’s thought piece “The Astropreneur’s Startup Journey Map.” It's a great example of how the next wave of space-related innovation might connect to Houston’s long-standing strengths in manufacturing, logistics, and problem-solving at scale.

Another challenge Houston faces is what I call a "proximity problem." Even when events are only a few miles apart, traffic can make it difficult for people to stay connected across the city. That’s why I’m so encouraged by the rise of what I think of as "intent-based gatherings" around the city: events designed with purpose, where people know they’ll find real connection and value once they arrive.

IM: Finally, what does being a "Trailblazer" mean to you?
WP: To me, trailblazing in the Houston innovation ecosystem means being willing to wander through the many different corners of the community and look for value in places we often overlook. It’s about showing up at events, community meetings, and pitch competitions — not just to participate, but to notice how each of these "nodes" in the ecosystem connects and adds value to the others.

Sometimes the trailblazer only walks a trail once: as they are discovering it. If you can help others see a newfound trail’s purpose and potential, it becomes a path others can follow more easily in the future. That’s the real work of a trailblazer: mapping connections, framing their value, and helping people recognize how those pathways strengthen the ecosystem as a whole.

In a broader sense, trailblazing is about seeing things not just as they are, but as they could be. Then taking the steps, however small, that make that vision real.

---

The Houston Innovation Awards program is sponsored by Houston City College Northwest, Houston Powder Coaters, FLIGHT by Yuengling, and more to be announced soon. For sponsorship opportunities, please contact sales@innovationmap.com.

Houston-based Mati Carbon won the global XPRIZE Carbon Removal competition, funded by The Musk Foundation earlier this year. Photo via LinkedIn.

Meet 6 of the fastest-growing scaleup companies in Houston right now

meet the finalists

From raising funding rounds to earning FDA acceptance, some of Houston's most innovative companies have reached major milestones this year.

The 2025 Houston Innovation Awards will recognize their progress by bringing back our Scaleup of the Year category for the second year. The award honors an innovative later-stage startup that's recently reached a significant milestone in company growth.

Six breakthrough businesses have been named finalists for the 2025 award. They range from climatetech startups to a biotech company developing new drugs for neurodegenerative diseases and more.

Read more about these businesses and their impressive growth below. Then join us at the Houston Innovation Awards on Nov. 13 at Greentown Labs, when the winner will be unveiled at our live awards ceremony.

Tickets are now on sale for this exclusive event celebrating all things Houston Innovation. Corporate 10-packs, featuring reserved seating and custom branding, and individual tickets are still available. Secure your seats today.

Coya Therapeutics

Clinical-stage biotechnology company Coya Therapeutics (NASDAQ: COYA) has developed COYA-302 that enhances anti-inflammatory T cell function and suppresses harmful immune activity. The drug candidate is being advanced for several neurodegenerative diseases—including ALS, Alzheimer’s, Parkinson’s, and frontotemporal dementia—and has demonstrated promising reductions in neuroinflammation in preclinical and early clinical studies, according to the company.

Coya, founded in 2021, received FDA acceptance for its investigational new drug application for COYA-30 this summer. It closed its IPO in January 2023 for more than $15 million and added $26 million in PIPE funding that same year. Last year, the company secured an additional $15 million in PIPE funding.

Fervo Energy

Houston-based Fervo Energy is working to provide 24/7 carbon-free energy through the development of cost-competitive geothermal power. The company is developing its flagship Cape Station geothermal power project in Utah, which is expected to generate 400 megawatts of clean energy for the grid. The first phase of the project will supply 100 megawatts of power beginning in 2026. The second phase is scheduled to come online by 2028.

The company raised $205.6 million in capital to help finance the project earlier this year and fully contracted the project's capacity with the addition of a major power purchase agreement from Shell. Founded in 2017 by CEO Tim Latimer and CTO Jack Norbeck, Fervo is now a unicorn, meaning its valuation as a private company has surpassed $1 billion. In March, Axios reported Fervo is targeting a $2 billion to $4 billion valuation in an IPO.

Koda Health

Houston-based Koda Health has developed an advance care planning platform (ACP) that allows users to document and share their care preferences, goals and advance directives for health systems. The web-based platform guides patients through values-based decisions with interactive tools and generates state-specific, legally compliant documents that integrate seamlessly with electronic health record systems. The company also added kidney action planning to its suite of services for patients with serious illnesses last year.

Koda Health was founded out of the TMC's Biodesign Fellowship in 2020 by CEO Tatiana Fofanova, chief medical officer Dr. Desh Mohan, and chief technology officer Katelin Cherry. The company raised a $7 million series A earlier this year, and also announced major partnerships and integrations with Epic, Guidehealth, Medical Home Network, Privia Health and others.

Mati Carbon

Houston climatetech company Mati Carbon removes carbon through its Enhanced Rock Weathering (ERW) program that works with agricultural farms in Africa and India. Mati says the farmers it partners with are some of the most vulnerable to the impacts of climate change. The nonprofit won the $50 million grand prize in the XPRIZE Carbon Removal competition, backed by Elon Musk’s charitable organization, The Musk Foundation, earlier this year.

Mati Carbon scaled operations in India, Zambia, and Tanzania this year and has advanced its proprietary measurement, reporting and verification (MRV) platform, known as matiC, enabling seamless field data capture, chain-of-custody and carbon accounting at scale. The company was founded in 2022 by co-directors Shantanu Agarwal and Rwitwika Bhattacharya.

Molecule

Houston-based Molecule Software has developed an energy trading risk management (ETRM) platform that allows companies trading power, oil and gas, biofuels, renewables and more stay ahead as the markets evolve.

The company closed a Series B round earlier this year for an undisclosed amount. Sameer Soleja, founder and CEO of Molecule, said at the time that the funding would allow the company to "double down on product innovation, grow our team, and reach even more markets." The company was founded in 2012 by CEO Sameer Soleja and participated in the Surge Accelerator the same year.

Utility Global

Houston-based Utility Global has developed its proprietary eXERO technology that produces low-cost, clean hydrogen from water and industrial off-gases without requiring grid electricity.

First founded in 2018 by CEO Parker Meeks, the company participated in Greentown Labs and the Rice Alliance for Technology and Entrepreneurship programs. It raised a $55 million funding round earlier this year and launched commercial partnerships with ArcelorMittal Brazil and Hanwha Group in South Korea to deploy its hydrogen solutions at scale.

---

The Houston Innovation Awards program is sponsored by Houston City College Northwest, Houston Powder Coaters, FLIGHT by Yuengling, and more to be announced soon. For sponsorship opportunities, please contact sales@innovationmap.com.

It's time to vote for Houston's Startup of the Year. Graphic via Gow Media

6 finalists compete to be crowned Houston's 2025 Startup of the Year

Cast Your Vote

We're just two weeks away from the 2025 Houston Innovation Awards, and while our expert panel of judges will determine the winners in most categories, one award is up to you.

Voting is now open for our people's choice award: 2025 Startup of the Year. Six exceptional finalists are in the running for the title, and your votes will determine the winner.

From rugged humanoid robots to next-generation sustainable materials, each of these startups is making an impact on the innovation ecosystem in Houston — and beyond.

Read about our Startup of the Year finalists and their missions below, then cast your vote. You can vote once per day through November 12, so make your voice heard.

The winner, along with winners in all other categories, will be revealed live at our event on November 13 at Greentown Labs. Tickets to the 2025 Houston Innovation Awards are available now — get yours today.

Eclipse Energy

Eclipse Energy, previously known as Gold H2, is a climatetech startup converting end-of-life oil fields into low-cost, sustainable hydrogen sources. The company completed its first field trial this summer, which demonstrated subsurface bio-stimulated hydrogen production. Eclipse Energy says Its technology could yield up to 250 billion kilograms of low-carbon hydrogen.

FlowCare

FlowCare is developing a period health platform that integrates smart dispensers, education, and healthcare into one system to make free, high-quality, organic period products more accessible. FlowCare is live at prominent Houston venues, including Discovery Green, Texas Medical Center, The Ion, and, most recently, Space Center Houston, helping make Houston a “period positivity” city.

MyoStep

MyoStep is a next-generation, lightweight, soft exoskeleton developed at University of Houston for children with cerebral palsy. The soft skeleton aims to address motor impairments that impact their ability to participate in physical activities, self-care, and academics, via an affordable, child-friendly solution that empowers mobility and independence.

Persona AI

Persona AI is a humanoid robotics startup that is creating rugged, autonomous robots for skilled, heavy industry work for various "4D" (dull, dirty, dangerous, and declining) jobs. In May, the company announced a memorandum of understanding with HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Robotic, and Vazil Company to create and deploy humanoid robots for complex welding tasks in shipyards. The project will deliver prototype humanoids by the end of 2026.

Rheom Materials

Rheom Materials is a next-generation startup developing biobased materials for a more sustainable future. Its two flagship offerings are Shorai, a sustainable leather alternative that is usable for apparel, accessories, car interiors, and more, and Benree, an alternative to plastic without the carbon footprint.

Solidec

Solidec is a chemical manufacturing company developing autonomous generators that extract molecules from water and air and convert them into pure chemicals and fuels that are free of carbon emissions. The technology eliminates the need for transport, storage, and permitting.

---

The Houston Innovation Awards program is sponsored by Houston City College Northwest, Houston Powder Coaters, FLIGHT by Yuengling, and more to be announced soon. For sponsorship opportunities, please contact sales@innovationmap.com.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Rice University launches  engineering-led brain science and health institute

brain research

Rice University has announced the creation of a new interdisciplinary center known as the Rice Brain Institute (RBI).

The new hub will aim to use engineering, natural sciences and social sciences to research the brain and reduce the burden of neurodegenerative, neurodevelopmental and mental health disorders.

“The Rice Brain Institute reflects Rice’s strength in collaboration without boundaries,” Rachel Kimbro, dean of the School of Social Sciences, said in a news release. “Our researchers are not only advancing fundamental science but they’re also ensuring that knowledge reaches society in ways that promote human flourishing.”

RBI researchers will work in thematic clusters focusing on neurodegeneration, mental health, brain injury and neurodevelopment. The clusters will work toward goals such as significantly improving key brain health outcomes, reducing mortality and mental health disorders and improving quality of life for patients living with brain injuries and neurodevelopmental disorders, according to Rice.

The institute will focus on “engineering-driven innovation,” rather than traditional neuroscience, to design tools that can measure, model and modulate brain activity based around Rice’s expertise in soft robotics, neuroimaging, data science and artificial intelligence—making it unique among peer organizations, according to Rice.

Additionally, RBI will be structured around three collaborative Rice “pillars”:

  • The Neuroengineering Initiative, launched in 2018, brings together neuroscience, engineering, and related fields experts
  • The Neuroscience Initiative, a new initiative that brings together cell biologists, neurobiologists, biochemists, chemists and physicists to explore fundamental mechanisms of the brain and nervous system
  • The Brain and Society Initiative, also a new initiative, considers brain research within the broader social and policy landscape

Rice’s Neuroengineering Initiative has already garnered more than $78 million in research funding, according to Rice, and has established major partnerships, like the Rice-Houston Methodist Center for Neural Systems Restoration.

“Rice is uniquely equipped to bridge and connect scientific understanding of the brain and behavior sciences with the technologies and policies that shape our world,” Amy Dittmar, the Howard R. Hughes Provost and executive vice president for academic affairs, added in the news release. “By uniting faculty in neuroengineering, neuroscience and psychological sciences, this interdisciplinary hub embodies the kind of bold, nimble collaboration that allows Rice to turn discovery into societal impact to save lives and enhance human flourishing.”

The formation of the RBI coincides with recent support of the Dementia Prevention Research Institute of Texas (DPRIT), which landed voter approval earlier this week and aims to make Texas the center for dementia research via brain-health tech. According to the World Economic Forum, brain disorders and mental health disorders cost the global economy an estimated $5 trillion per year and could be as high as $16 trillion by 2030.

“Few areas of research have as direct and profound an impact on human well-being as brain health,” Rice President Reginald DesRoches added in the news release. “As rates of Alzheimer’s, dementia and other neurological diseases rise in our country and around the world, universities have a responsibility to lead the discovery of solutions that preserve memory, movement and quality of life. We all know someone who has been affected by a brain-related health issue, so this research is personal to all of us.”

Texas voters OK $3 billion for new dementia research institute

state funding

Texas voters on Nov. 4 overwhelmingly approved a ballot measure that provides $3 billion in state funding over a 10-year span for the newly established Dementia Prevention and Research Institute of Texas (DPRIT).

Thanks to the passage of Proposition 14, Texas now boasts the country’s largest state-funded initiative dedicated to dementia research and prevention, according to the Alzheimer’s Association. Up to $300 million in grants will be awarded during the 10-year funding period.

“This is a transformative moment for Texas and for the fight against Alzheimer’s and all other dementia,” said Joanne Pike, president and CEO of the Alzheimer’s Association. “Texans have chosen to invest in hope, innovation, and solutions for the millions of families affected by these devastating diseases. With the passage of Proposition 14, Texas is now poised to lead the nation in dementia research and prevention.”

The association says DPRIT will drive scientific breakthroughs, attract top-notch dementia researchers to Texas, and generate thousands of jobs statewide.

An estimated 460,000 Texans are living with dementia, the association says, and more than one million caregivers support them.

DPRIT is modeled after the Cancer Prevention and Research Institute of Texas (CPRIT). Since 2008, the state agency has awarded nearly $4 billion in grants to research organizations for cancer-related academic research, prevention programs, and product development.

An analysis by the McKinsey Health Institute found that investing in brain health initiatives like DPRIT could boost Texas’ GDP by $260 billion. Much of that GDP bump could benefit the Houston area, which is home to dementia-focused organizations such as UTHealth Houston Neurosciences, Baylor College of Medicine’s Center for Alzheimer’s and Neurodegenerative Diseases, the University of Texas Medical Branch at Galveston’s Collaborative Alzheimer’s Disease and Memory Disorders Program, and the Houston Methodist Research Institute’s John M. O’Quinn Foundation Neurodegenerative Disorders Laboratory.

The Greater Houston Partnership says DPRIT holds the potential “to elevate Texas — particularly Houston — as a hub for brain health research.”

State Sen. Joan Huffman, a Houston Republican, is one of DPRIT’s champions. She sponsored legislation this year to create the institute and ask Texas voters to approve the $3 billion in funding.

“By establishing the Dementia Prevention and Research Institute of Texas, we are positioning our state to lead the charge against one of the most devastating health challenges of our time,” Huffman said in May. “With $3 billion in funding over the next decade, we will drive critical research, develop new strategies for prevention and treatment, and support our health care community.”

Houston-area VC funding sunk to 5-year low in Q3 2025, report says

by the numbers

Fundraising for Houston-area startups experienced a summertime slowdown, sinking to a five-year low in the third quarter, according to the latest PitchBook-NVCA Venture Monitor.

The PitchBook-NVCA Venture Monitor shows startups in the Houston metro area attracted $204.4 million in venture capital from June through August. That’s 55 percent below the total for the previous quarter and 51 percent below the total for the third quarter of 2024.

More telling than those figures is that the third-quarter haul dropped to its lowest total for Houston-area startups since the fourth quarter of 2020, when $133.4 million in VC was raised. That was the third full quarter after health officials declared the pandemic in the U.S.

In Q3 2025, AI accounted for nearly 40 percent of VC deal volume in the U.S., Kyle Stanford, director of U.S. venture research at PitchBook, said in the report. And through the first nine months of 2025, AI represented 64 percent of U.S. deal value.

VC deal activity “has been nearly steady, emphasizing a consistent influx of companies, especially at the pre-seed and seed stages,” Stanford said. “Large deals remain the primary driver of market deal value, with almost all of these deals focused on AI.”

Bobby Franklin, president and CEO of NVCA, said that while fundraising hasn’t returned to pre-pandemic highs, deal values are going up in sectors such as AI, manufacturing, robotics and space tech, many of which have already exceeded their investment totals for all of 2024.