Houston investment firm closes $105M energy venture fund

seeing green

Veriten has closed a $105 million venture fund to support the "future energy world." Photo via Pexels.

Houston-based investment firm Veriten has announced the initial close of its second flagship energy venture fund with more than $105 million in capital commitments.

Fund II will build on Veriten’s initial fund and aim to support “scalable technology solutions for energy, power and industrial applications,” according to a company news release.

"Our differentiated network, research-driven process, and first principles approach to investing are having an impact across multiple verticals including traditional energy, electrification, and industrial technology. Fund II builds on that platform,” John Sommers, partner, investments at Veriten, added in the release. “In this environment, the differentiator isn't capital – it's all about connectivity, deep sector expertise, and an economically-driven approach. As new technologies and approaches develop at breakneck speed, the need for more reliable, affordable energy and power continues to grow dramatically. The current backdrop accentuates the need for Veriten's solution."

Veriten is supported by over 50 strategic partnerships in the energy, power, industrial and technology sectors, including major players like Halliburton and Phillips 66.

"Veriten continues to build a differentiated platform at the intersection of energy, technology and industry expertise," Jeff Miller, chairman and CEO of Halliburton, said in the release. "We were early believers in the team and their ability to identify practical solutions to real challenges across the energy value chain. As all industries increasingly adopt digital tools, automation and AI-enabled technologies to improve performance and execution, we are proud to partner with Veriten again to help accelerate high-impact solutions across the broader energy landscape."

Veriten closed its debut fund, NexTen LP, of $85 million in committed capital in October 2023. It was launched in January 2022 by Maynard Holt, co-founder and former CEO of the energy investment bank Tudor, Pickering, Holt & Co.

It has invested in Houston-based AI-powered electricity analytics provider Amperon and led a $12 million Seed 2 funding round for Houston-based Helix Technologies to scale manufacturing of its energy-efficient commercial HVAC add-on earlier this year. In the past year it has contributed to funding rounds for San Francisco-based Armada and Calgary-based Veerum.

Veriten also named Nick Morriss as its new managing director earlier this month. Morriss most recently served as vice president of business development at next-generation nuclear technology company Natura Resources and spent nearly 20 years at NOV Inc.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

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Houston-based oil field service company, Halliburton, has introduced its new startup incubator. Getty Images

Houston oil and gas giant premieres new startup incubator and names first participant

new to hou

Not intending to be left out of the energy transition, a Houston-based, multinational oil and gas services company has announced its new incubator for startups to advance cleaner, affordable energy.

Halliburton Company has introduced Halliburton Labs this week and named Houston-based Nanotech Inc., which uses nanotechnology for thermal insulation and fireproofing, as its first participant. Nanotech — along with future entrepreneurs and academics — will have access to the Halliburton facilities, the company's experts, and its network.

"Halliburton Labs reflects our commitment to the science and continued evolution of sustainable, reliable energy," says Jeff Miller, chairman, president, and CEO at Halliburton, in a news release. "We firmly believe that oil and gas will remain an affordable and reliable energy resource for decades to come. At the same time, we recognize the importance of developing alternative energy sources. We are excited to help advance solutions that have the potential for a long term, meaningful impact and that align well with our sustainability objectives."

The program will be based out of Halliburton's North Houston headquarters and will be led by executive director, Scott Gale. The primary focus of the incubator is to help advance and scale the participating startups, which includes developing and advancing products, securing financing and customers, and more.

Startups that will be considered for the program must be past the proof-of-concept phase, and a formal application process will roll out in September. According to the release, additional startup participants will be announced in the next few months. Meanwhile, Nanotech has already moved into the new lab at Halliburton.

"We also couldn't be more pleased to have Nanotech, Inc. as the first participant of Halliburton Labs," says Miller in the release. "Nanotech delivers technology that will change the way we think about energy conservation and fire safety across many sectors."

Nanotech's Nano Shield products can protect from fire damage as well as improve energy efficiency. Mike Francis, CEO and co-founder, launched Nanotech in 2019.

"We are incredibly excited to have been selected as an anchor for Halliburton Labs and help drive meaningful change and innovation in the energy sector," says Francis, in the release. "Access to Halliburton Labs' resources and world-class facilities will help accelerate our growth and deliver our transformative line of products. Through this collaboration, we intend to fundamentally shift the fireproofing and thermal insulation markets towards more effective and environmentally friendly solutions."

The Cannon hosted a B2B pitch night, and all three companies have a mission to change the world. Courtesy of The Cannon

3 Houston entrepreneurs changing the world with their B2B startups

On purpose

I think it's safe to say that most B2B startups don't have sustainability or a mission-driven purpose at the core of their business model. In fact, it's probably safe to say that about any for-profit company of any size.

Three Houston entrepreneurs pitched their companies at The Cannon's recent B2B pitch night, and they all have something in common: They're not normal B2B startups. Each company has a mission to change the way we're doing something — from hiring to construction — in a way that's better for the world.

Natalie Goodman, founder and CEO IncentiFind

Courtesy of IncentiFind

Natalie Goodman realized there was a disconnect between builders and green incentives the government provides.

"The government is strapped — they have all this money that they want to give away, but not the (marketing) money to get the word out," Goodman told InnovationMap last month. "That's where IncentiFind stepped in."

IncentiFind is a portal for green incentives and works in three steps. First, you do a search for green incentives in your area — this part is completely free to the commercial developer or home owner. Next, the user might opt to pay IncentiFind to find the exact incentives for the project and submits the applications for the project. The final step is a promise of a 10 times return on investment.

A million green projects are completed in the United States each year, and IncentiFind is getting in front of that by forming partnerships with lenders, commercial developers, architects, etc., Goodman says to the crowd. Read more about IncentiFind here.

Jeff Miller, CEO of Potentia

Courtesy of The Cannon

The facts and figures are pretty startling. One-in-40 school-age children are on the autism spectrum and one-in-five college-educated autistic individuals don't have a job when they graduate, Jeff Miller says during his pitch at The Cannon. Miller, who has a long career in staffing around the world, founded his company Potentia to help correct this growing employment problem.

"We're seeking to help employers build their 21st century workforce at the intersection of technology, leadership, and, most specifically, the autism spectrum," he says.

Potentia is a technology-focused recruitment firm with resources and opportunities for applicants on the Autism spectrum. For Miller, it's personal. His 16-year-old son has autism, and Miller wants a world where his son can have access to employment opportunities around the world.

"I think we're in a position to improve this model here in Houston, and take it to other cities," Miller says. "The reality is this is a challenge that exists in every major city."

Kim Raath, co-founder of Topl

Courtesy of Topl

Sure, blockchain is a major buzzword nowadays, but for Topl co-founder Kim Raath it means having the ability to track the sustainability of a purchase. Topl's technology is able to tell you if your diamond ring came from a war-torn country or if your coffee's farmer was paid fairly.

Raath says she's seen an increased need for sustainable and transparent businesses that can prove their impact, but it's expensive to do that.

"These businesses are spending so much money on trying to prove this impact," Raath says in her pitch at The Cannon. "We have customers spending close to 15 percent in operational expenses just to be able to trace their growth."

The company, founded by three Rice University students, is growing. In May, Raath says they have four new ventures being developed, and by 2020, they want to have 24 live ventures with a monthly revenue of over $30,000.

"At Topl, we are really going to change the world," Raath tells the crowd. "But I can prove it to you." Read more about Topl here.

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Meta to bring $115 million AI data center training initiative to Houston

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Meta and Associated Builders and Contractors have entered into a partnership to invest $115 million in training programs for the construction of AI data centers, with a portion of the project launching in Houston.

The companies announced June 8 that they would open America’s Workforce Academies at ABC chapter training centers in Houston; Indianapolis; Baton Rouge, Louisiana; and Columbus, Ohio.

The academies will offer career readiness and safety training, plus five weeks of hands-on education. Participants who complete the program will be granted a job offer from contractors working on Meta projects.

“The AI revolution is bringing change but also historic opportunities,” Dina Powell McCormick, Meta president and vice-chairman, said in a news release. “Skilled workers electrified rural America one pole at a time. They manned the factories that built the arsenal that won World War II. Now a new generation will pour the foundations and lay the fiber that secures American strength in this new age.”

Overall, the Meta and ABC aim for the academies to build a more sustainable pipeline of skilled construction workers and ensure safety and job readiness for the surging number of data center projects underway.

“This new program is an innovative talent solution that is a critical part of addressing the construction industry’s ongoing workforce shortage and creates an accelerated, new-entrant strategy for job seekers ... The sustained demand for data center construction technicians means the industry needs an all-of-the-above approach to address this shortage and grow the construction talent pool,” Michael Bellaman, ABC president and CEO, added in the release.

In Texas, Meta, the parent company of Facebook and Instagram, has launched or broken ground on data centers in El Paso, Fort Worth and Temple. The company announced in March that it planned to grow its El Paso Data center by 1 gigawatt, representing more than a $10 billion investment.

Apart from Meta, Texas has attracted data center development to power other giants like Google and Amazon in recent years. In turn, Texas has been predicted to become the biggest data center market. Commercial real estate services provider JLL reported this spring that the state could topple Northern Virginia as the world’s largest data-center market by 2030. Similarly, CBRE predicted that Houston's data center capacity could double by 2028. Read more here.

New Houston biotech co. lands $30M for pulmonary fibrosis drug

drug money

Most of us can claim a scar or two on our bodies. But when scarring develops inside the body, it’s known as a fibrotic disorder. A freshly launched Houston company, Oorja Bio Inc., is working on a treatment that can help to repair cells and reduce the damage wrought by the growth of fibrotic tissue in patients.

Late last month, Oorja Bio hit the scene with a pair of big announcements. Not only has the company raised a $30 million Series A thanks to founding investor California-based Westlake BioPartners, but it has also already paved the way for a Phase 2 study to take place this year.

Oorja Bio received Investigational New Drug (IND) clearance from the U.S. Food and Drug Administration (FDA), allowing the company to test its treatment in patients with idiopathic pulmonary fibrosis (IPF), a scarring of the lung tissue. IPF affects more than 150,000 adults in the United States and can result in a range of symptoms from shortness of breath to organ failure and death as it progresses.

Oorja Bio’s lead drug candidate, ORJ-001, was shown in a Phase 1 in-human trial to demonstrate “therapeutically relevant exposure and favorable tolerability” in 64 healthy adult volunteers in whom it was administered daily or weekly, according to a news release. Pre-clinical studies of ORJ-001 showed durable target tissue engagement and biomarker activity in bleomycin-induced lung fibrosis.

Administered subcutaneously, ORJ-001 is intended to improve and even restore function in cells that can reduce the signaling that causes IPF. It stops advancement of IPF and also allows for tissue repair. Currently available treatments for the disease can slow the development of IPF down, but do not address the declining lung function that’s inherent in its progression.

“The clinical and preclinical results from our studies to date give us confidence that ORJ-001 represents a novel treatment approach with the potential to repair and reverse fibrosis and modify disease progression in IPF,” Dr. Janethe Pena, CMO of Oorja Bio, said in the release.

“Our team is energized to deliver on our goal of redefining the future of fibrotic diseases, beginning with ORJ-001,” CEO and founder Sujay Kango added. “As we advance ORJ-001 in the clinic, we are embracing the paradigm shift in our biological understanding of IPF pathology that aligns with the central role of the alveolar epithelium. ORJ-001 was designed with this biology in mind and may provide, for the first time, a therapeutic intervention that repairs and reverses fibrosis and promotes disease modification.”

Most patients live only three to five years following their IPF diagnosis. Soon, ORJ-001 and Oorja Bio could give them a fighting chance.

Axiom Space tops $525M in oversubscribed round, announces Swiss subsidiary

funding boost

Axiom Space tacked on an additional $175 million to a previously announced capital raise, bringing the oversubscribed round to a total of more than $525 million.

Axiom shared in February that it had secured $350 million in a financing round led by Type One Ventures and Qatar Investment Authority. In the latest release from the company, Axiom reports that Japan-based MUFG Bank Ltd. joined the round as a new investor, in addition to continued participation from existing backers.

The funding will go toward developing the company's commercial space station, known as Axiom Station, and the production of its Axiom Extravehicular Mobility Unit (AxEMU) under its NASA spacesuit contract.

“Investor interest in this round outpaced what we set out to raise, which speaks to the moment we’re in,” Jonathan Cirtain, CEO and president of Axiom Space, said in the news release. “Our partners see what is possible in low-Earth orbit, and they see who is positioned to lead it.”

Axiom announced last month that it planned to open a Japanese subsidiary July 1. Earlier this week, it also shared plans to establish Axiom Space Switzerland, a wholly owned subsidiary based in Lucerne that is also expected to begin operations this summer.

The Switzerland subsidiary aims to establish Axiom's presence in Europe and help it partner with the European Space Agency and other space organizations and companies on the continent.

“Europe is a founding leader in the creation of the commercial space economy, and Switzerland is uniquely positioned to convene the government agencies, research institutions, and industrial entities that will shape its next decade,” Cirtain added in a separate release. “Axiom Space Switzerland facilitates the scaling of development and deployment of the infrastructure that will succeed the International Space Station.”

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