Pharmaceutical giant plans $5.9B Houston facility and more news to know

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Eli Lilly is looking to Houston for a new facility. Getty Images

Editor's note: It's time to look back at the top Houston innovation news from the second half of May 2025. From exciting VC raises to major manufacturing facilities in the works, here are the most-read InnovationMap stories from May 16-30.

1. Pharmaceutical giant looks to bring $5.9 billion facility to Houston

Eli Lilly is looking to build an active pharmaceutical ingredient manufacturing facility at Generation Park. Rendering courtesy of McCord

Pharmaceutical company Eli Lilly and Company is looking to build a $5.9 billion active pharmaceutical ingredient (API) manufacturing facility in Houston, according to a recent filing with the state of Texas.

The proposal states that the project plans to employ 604 full-time direct employees at the site upon ramp-up completion. Construction is projected to begin in 2026, with a completion target of 2030 and commercial operations beginning in 2031. Continue reading.

2. Houston VC firm closes $21M fund for underrepresented founders

Zach Ellis, founder and general partner of South Loop Ventures, which recently closed its debut fund. Photo via LinkedIn

Houston-based South Loop Ventures recently closed its debut fund for more than $21 million, led by investments from Rice Management Company and Chevron Technology Ventures.

The funds will go toward teams with at least one underrepresented founder of color working in the energy, health, space, sports and fintech sectors. Additional investments came from The Great Commission Foundation of the Episcopal Diocese of Texas, Texas CapitalBank and others organizations. Continue reading.

3. Houston-founded startup raises $1.2M and moves headquarters to Detroit

ChurchSpace, founded in Houston by Day Edwards and Emmanuel Brown, is moving to Detroit. Photo courtesy ChurchSpace.

Houston-founded ChurchSpace, known as the Airbnb for churches, has formed an official partnership with the City of Detroit and will relocate its headquarters.

The announcements come as the company successfully closed a $1.2 million oversubscribed funding round. The round was led by California-based Black Ops Ventures, with participation from Michigan Rise and Dug Song of Minor Capital, who is also the founder of the Song Foundation, another Michigan-based organization. Continue reading.

4. Houston aerospace co. soars with first U.S. test flight of hypersonic engine

Venus Aerospace successfully completed the flight test of its hypersonic engine, the first of an American-developed engine of its kind. Photo courtesy Venus Aerospace

Houston-based Venus Aerospace successfully completed the first U.S. flight test of its proprietary engine at a demonstration at Spaceport America in New Mexico.

Venus’ next-generation rotating detonation rocket engine (RDRE) is supported by a $155,908 federal Small Business Innovation Research (SBIR) grant from NASA and aims to enable vehicles to travel four to six times the speed of sound from a conventional runway. The recent flight test was the first of an American-developed engine of its kind. Continue reading.

5. Houston regenerative medicine company expands lab for future trials

FibroBiologics has opened a new 10,000-square-foot Houston lab to scale up research efforts and pave the way for in-house manufacturing. Photo via Fibrobiologics.com

A Houston regenerative medicine company has unveiled new laboratory space with the goal of expanding its pioneering science.

FibroBiologics uses fibroblasts, the body’s most common type of cell, rather than stem cells, to help grow new cells. With its new space, the publicly traded company, which has more than 240 patents issued or pending, will be even better equipped to power forward with its research. Continue reading.

Venus Aerospace successfully completed the flight test of its hypersonic engine, the first of an American-developed engine of its kind. Photo courtesy Venus Aerospace

Houston aerospace co. soars with first U.S. test flight of hypersonic engine

taking off

Houston-based Venus Aerospace successfully completed the first U.S. flight test of its proprietary engine at a demonstration at Spaceport America in New Mexico.

Venus’ next-generation rotating detonation rocket engine (RDRE) is supported by a $155,908 federal Small Business Innovation Research (SBIR) grant from NASA and aims to enable vehicles to travel four to six times the speed of sound from a conventional runway. The recent flight test was the first of an American-developed engine of its kind.

"With this flight test, Venus Aerospace is transforming a decades-old engineering challenge into an operational reality,” Thomas d'Halluin, managing partner at Airbus Ventures, an investor in Venus, said in a news release. “Getting a rotating detonation engine integrated, launch-ready, and validated under real conditions is no small feat. Venus has shown an extraordinary ability to translate deep technical insight into hardware progress, and we're proud to support their bold approach in their attempt to unlock the hypersonic economy and forge the future of propulsion."

Venus’ RDRE operates through supersonic shockwaves, called detonations, that generate more power with less fuel. It is designed to be affordable and scalable for defense and commercial systems.

The RDRE is also engineered to work with the company's air-breathing detonation ramjet, the VDR2, which helps enable aircraft to take off from a runway and transition to speeds exceeding Mach 6. Venus plans for full-scale propulsion testing and vehicle integration of this system. Venus’ ultimate goal is to develop a Mach 4 reusable passenger aircraft, known as the Stargazer M4.

"This milestone proves our engine works outside the lab, under real flight conditions," Andrew Duggleby, Venus co-founder and chief technology officer, said in the release. "Rotating detonation has been a long-sought gain in performance. Venus' RDRE solved the last but critical steps to harness the theoretical benefits of pressure gain combustion. We've built an engine that not only runs, but runs reliably and efficiently—and that's what makes it scalable. This is the foundation we need that, combined with a ramjet, completes the system from take-off to sustained hypersonic flight."

The hypersonic market is projected to surpass $12 billion by 2030, according to Venus.

"This is the moment we've been working toward for five years," Sassie Duggleby, CEO and co-founder of Venus Aerospace, added in the release. "We've proven that this technology works—not just in simulations or the lab, but in the air. With this milestone, we're one step closer to making high-speed flight accessible, affordable, and sustainable."

Venus Aerospace has used a Small Business Innovation Research (SBIR) grant from NASA to develop new features of its compact rocket engine for hypersonic flights. Photo courtesy of Venus Aerospace.

Houston space tech company develops new hypersonic engine features with NASA funding

testing 1, 2, 3

Outfitted with a new type of aerospace technology, a rocket engine developed by Houston startup Venus Aerospace for hypersonic flights will undergo testing this summer.

Supported by a $155,908 federal Small Business Innovation Research (SBIR) grant from NASA, Venus Aerospace came up with a new design for nozzles — engine parts that help manage power — for its compact rocket engine. Venus Aerospace says the newly configured nozzles have “exceeded expectations” and will be incorporated into Venus’ upcoming ground-based engine testing.

“We’ve already proven our engine outperforms traditional systems on both efficiency and size,” Venus Aerospace CEO Sassie Duggleby says. “The technology we developed with NASA’s support will now be part of our integrated engine platform — bringing us one step closer to proving that efficient, compact, and affordable hypersonic flight can be scaled.”

The engine at the heart of Venus’ flight platform is called a rotating detonation rocket engine (RDRE). Venus says it’s the first U.S. company to make a scalable, affordable, flight-ready RDRE.

Unlike conventional rocket engines, Venus’ RDRE operates through supersonic shockwaves, called detonations, that generate more power with less fuel.

“This is just the beginning of what can be achieved with Venus propulsion technology,” says Andrew Duggleby, chief technology officer at Venus, founded in 2020. “We’ve built a compact high-performance system that unlocks speed, range, and agility across aerospace, defense, and many other applications. And we’re confident in its readiness for flight.”

Last fall, the company unveiled a high-speed engine system that enables takeoff, acceleration, and hypersonic cruising — all powered by a single engine. While most high-speed systems require multiple engines to operate at different speeds, Venus’ innovation does away with the cost, weight and complexity of traditional propulsion technology.

Among other applications, the Venus system supports:

  • Spacecraft landers
  • Low-earth-orbit satellites
  • Vehicles that haul space cargo
  • Hypersonic drones and missiles
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Houston foundation grants $27M to support Texas chemistry research

fresh funding

Houston-based The Welch Foundation has doled out $27 million in its latest round of grants for chemical research, equipment and postdoctoral fellowships.

According to a June announcement, $25.5 million was allocated for the foundation's longstanding research grants, which provide $100,000 per year in funding for three years to full-time, regular tenure or tenure-track faculty members in Texas. The foundation made 85 grants to faculty at 16 Texas institutions for 2025, including:

  • Michael I. Jacobs, assistant professor in the chemistry and biochemistry department at Texas State University, who is investigating the structure and thermodynamics of intrinsically disordered proteins, which could "reveal clues about how life began," according to the foundation.
  • Kendra K. Frederick, assistant professor in the biophysics department at The University of Texas Southwestern Medical Center, who is studying a protein linked to Parkinson’s disease.
  • Jennifer S. Brodbelt, professor in chemistry at The University of Texas at Austin, who is testing a theory called full replica symmetry breaking (fullRSB) on glass-like materials, which has implications for complex systems in physics, chemistry and biology.

Additional funding will be allocated to the Welch Postdoctoral Fellows of the Life Sciences Research Foundation. The program provides three-year fellowships to recent PhD graduates to support clinical research careers in Texas. Two fellows from Rice University and Baylor University will receive $100,000 annually for three years.

The Welch Foundation also issued $975,000 through its equipment grant program to 13 institutions to help them develop "richer laboratory experience(s)." The universities matched funds of $352,346.

Since 1954, the Welch Foundation has contributed over $1.1 billion for Texas-nurtured advancements in chemistry through research grants, endowed chairs and other chemistry-related ventures. Last year, the foundation granted more than $40.5 million in academic research grants, equipment grants and fellowships.

“Through funding basic chemical research, we are actively investing in the future of humankind,” Adam Kuspa, president of The Welch Foundation, said the news release. “We are proud to support so many talented researchers across Texas and continue to be inspired by the important work they complete every day.”

New Houston biotech co. developing capsules for hard-to-treat tumors

biotech breakthroughs

Houston company Sentinel BioTherapeutics has made promising headway in cancer immunotherapy for patients who don’t respond positively to more traditional treatments. New biotech venture creation studio RBL LLC (pronounced “rebel”) recently debuted the company at the 2025 American Society of Clinical Oncology (ASCO) Annual Meeting in Chicago.

Rima Chakrabarti is a neurologist by training. Though she says she’s “passionate about treating the brain,” her greatest fervor currently lies in leading Sentinel as its CEO. Sentinel is RBL’s first clinical venture, and Chakrabarti also serves as cofounder and managing partner of the venture studio.

The team sees an opportunity to use cytokine interleukin-2 (IL-2) capsules to fight many solid tumors for which immunotherapy hasn't been effective in the past. “We plan to develop a pipeline of drugs that way,” Chakrabarti says.

This may all sound brand-new, but Sentinel’s research goes back years to the work of Omid Veiseh, director of the Rice Biotechnology Launch Pad (RBLP). Through another, now-defunct company called Avenge Bio, Veiseh and Paul Wotton — also with RBLP and now RBL’s CEO and chairman of Sentinel — invested close to $45 million in capital toward their promising discovery.

From preclinical data on studies in mice, Avenge was able to manufacture its platform focused on ovarian cancer treatments and test it on 14 human patients. “That's essentially opened the door to understanding the clinical efficacy of this drug as well as it's brought this to the attention of the FDA, such that now we're able to continue that conversation,” says Chakrabarti. She emphasizes the point that Avenge’s demise was not due to the science, but to the company's unsuccessful outsourcing to a Massachusetts management team.

“They hadn't analyzed a lot of the data that we got access to upon the acquisition,” explains Chakrabarti. “When we analyzed the data, we saw this dose-dependent immune activation, very specific upregulation of checkpoints on T cells. We came to understand how effective this agent could be as an immune priming agent in a way that Avenge Bio hadn't been developing this drug.”

Chakrabarti says that Sentinel’s phase II trials are coming soon. They’ll continue their previous work with ovarian cancer, but Chakrabarti says that she also believes that the IL-2 capsules will be effective in the treatment of endometrial cancer. There’s also potential for people with other cancers located in the peritoneal cavity, such as colorectal cancer, gastrointestinal cancer and even primary peritoneal carcinomatosis.

“We're delivering these capsules into the peritoneal cavity and seeing both the safety as well as the immune activation,” Chakrabarti says. “We're seeing that up-regulation of the checkpoint that I mentioned. We're seeing a strong safety signal. This drug was very well-tolerated by patients where IL-2 has always had a challenge in being a well-tolerated drug.”

When phase II will take place is up to the success of Sentinel’s fundraising push. What we do know is that it will be led by Amir Jazaeri at MD Anderson Cancer Center. Part of the goal this summer is also to create an automated cell manufacturing process and prove that Sentinel can store its product long-term.

“This isn’t just another cell therapy,” Chakrabarti says.

"Sentinel's cytokine factory platform is the breakthrough technology that we believe has the potential to define the next era of cancer treatment," adds Wotton.

How Houston's innovation sector fared in 2025 Texas legislative session

That's a Wrap

The Greater Houston Partnership is touting a number of victories during the recently concluded Texas legislative session that will or could benefit the Houston area. They range from billions of dollars for dementia research to millions of dollars for energy projects.

“These wins were only possible through deep collaboration, among our coalition partners, elected officials, business and community leaders, and the engaged members of the Partnership,” according to a partnership blog post. “Together, we’ve demonstrated how a united voice for Houston helps drive results that benefit all Texans.”

In terms of business innovation, legislators carved out $715 million for nuclear, semiconductor, and other economic development projects, and a potential $1 billion pool of tax incentives through 2029 to support research-and-development projects. The partnership said these investments “position Houston and Texas for long-term growth.”

Dementia institute

One of the biggest legislative wins cited by the Greater Houston Partnership was passage of legislation sponsored by Sen. Joan Huffman, a Houston Republican, to provide $3 billion in funding over 10 years for the Dementia Prevention and Research Institute of Texas. Voters will be asked in November to vote on a ballot initiative that would set aside $3 billion for the new institute.

The dementia institute would be structured much like the Cancer Prevention and Research Institute of Texas (CPRIT), a state agency that provides funding for cancer research in the Lone Star State. Since its founding in 2008, CPRIT has awarded nearly $3.9 billion in research grants.

“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. “With $3 billion in funding over the next decade, we will drive critical research, develop new strategies for prevention and treatment, and support our healthcare community. Now, it’s up to voters to ensure this initiative moves forward.”

More than 500,000 Texans suffer from some form of dementia, including Alzheimer’s disease, according to Lt. Gov. Dan Patrick.

“With a steadfast commitment, Texas has the potential to become a world leader in combating [dementia] through the search for effective treatments and, ultimately, a cure,” Patrick said.

Funding for education

In the K-12 sector, lawmakers earmarked an extra $195 million for Houston ISD, $126.7 million for Cypress-Fairbanks ISD, $103.1 million for Katy ISD, $80.6 million for Fort Bend ISD, and $61 million for Aldine ISD, the partnership said.

In higher education, legislators allocated:

     
  • $1.17 billion for the University of Houston College of Medicine, University of Texas Health Science Center at Houston, UT MD Anderson Cancer Center, and Baylor College of Medicine
  • $922 million for the University of Houston System
  • $167 million for Texas Southern University
  • $10 million for the Center for Biotechnology at San Jacinto College.

Infrastructure

In the infrastructure arena, state lawmakers:

     
  • Approved $265 million for Houston-area water and flood mitigation projects, including $100 million for the Lynchburg Pump Station
  • Created the Lake Houston Dredging and Maintenance District
  • Established a fund for the Gulf Coast Protection District to supply $550 million for projects to make the coastline and ship channel more resilient

"Nuclear power renaissance"

House Bill 14 (HB 14) aims to lead a “nuclear power renaissance in the United States,” according to Texas Gov. Greg Abbott’s office. HB 14 establishes the Texas Advanced Nuclear Energy Office, and allocates $350 million for nuclear development and deployment. Two nuclear power plants currently operate in Texas, generating 10 percent of the energy that feeds the Electric Reliability Council Texas (ERCOT) power grid.

“This initiative will also strengthen Texas’ nuclear manufacturing capacity, rebuild a domestic fuel cycle supply chain, and train the future nuclear workforce,” Abbott said in a news release earlier this year.

One of the beneficiaries of Texas’ nuclear push could be Washington, D.C.-based Last Energy, which plans to build 30 micro-nuclear reactors near Abilene to serve power-gobbling data centers across the state. Houston-based Pelican Energy Partners also might be able to take advantage of the legislation after raising a $450 million fund to invest in companies that supply nuclear energy services and equipment.

Reed Clay, president of the Texas Nuclear Alliance, called this legislation “the most important nuclear development program of any state.”

“It is a giant leap forward for Texas and the United States, whose nuclear program was all but dead for decades,” said Clay. “With the passage of HB 14 and associated legislation, Texas is now positioned to lead a nuclear renaissance that is rightly seen as imperative for the energy security and national security of the United States.”

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A version of this article first appeared on EnergyCapitalHTX.com.

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