From credit to crowdfunding, startups have more cash flow options now than ever before. Getty Images

When it comes to raising money for your startup, there's plenty of fish in the sea, however, navigating the rough waters can be difficult.

Houston Community College put on a Small Business Summit on June 13 and gathered a group of financial professionals to represent several types of funding options, from venture capital to microlending.

Crowdfunding

The crowdfunding game has changed, says Rhian Davies, business development manager for LetsLaunch, an equity-based crowdfunding tool.

While most people think that donation-based crowdfunding — like GoFundMe or Kickstarter that give you the product or thank-you gift when you give — are the only options, that's not the case. And, investing using these platforms doesn't mean anything to you if the company sees success.

"If it makes it big, you're not going to get anything back," says Davies of these types of platforms.

But the JOBS Act in 2012 changed everything. Now, companies fundraising on crowdfunding sites can trade in equity for funds.

"Previously, investments were reserved for wealthy individuals — accredited individuals — who had a certain amount of money could invest in businesses," says Davies. "Equity crowdfunding opened that up."

With crowdfunding, you can also run other types of fundraising efforts at the same time, spreading out your options.

"It allows (the community) to invest in your business and it allows you to pass the hat and have people come on board," Davies says.

The other benefit to using the LetsLaunch platform is the team assists the startups every step of the way, from uploading a digital pitch deck onto the LetsLaunch platform and preparing paperwork to filing with the SEC.

However, one of the major challenges for startups is deciding what their funding goal is. Davies says you do have to hit a certain funding goal to be able to take that cash home, and for LetsLaunch, they look for that figure to be $10,000 minimum. Anything less than that isn't worth it — from both the LetsLaunch and the startup's perspective. The maximum value for equity crowdfunding is capped at just over $1 million — per the SEC.

Venture capital

VC funding is where most people's minds go when it comes to startup funding. And this type of funding is in an evolution phase too, says Remington Tonar, managing director at The Cannon Houston. While traditional VCs want a three-times return in five to seven years, some firms have more on their minds then just the money.

"There's a new phenomenon in venture where a lot of early stage investors and angel investors are looking at social impact investing," Tonar says. "They want to invest in women- or minority-owned businesses or companies that have a sustainability or social impact component to them. For those investors, the return demands are much more flexible."

Not only are they more flexible on returns, but VCs want more hands-on roles at the companies they invest in. Tonar says venture capitalists don't want to give passive capital.

Another way VCs differ from other types of funding is they are looking for something different in the companies they invest in — they want the next big thing.

"What venture capitalists really look for is disruptive business that are creating value in news ways," Tonar says.

And investments can be industry agnostic — VCs aren't reserved to just tech and computing industries.

"Most people would not have thought the hotel industry was a great industry for venture capital until Airbnb came along," says Tonar. "Most people would not have thought that taxis were a great industry for venture capital until Uber came along."

Fundraising through VC firms is a very personal process — they are investing in you, the founder, just as much as they are investing in the company or idea, Tonar says. You can have a horrible credit history or have declared bankrupt in the past, and while they will find that out, it's not a dealbreaker like it would be for a bank or traditional loan process.

"But if the investor feels that the idea has value and can create value and meets their risk profile, they will look at your startup and go through their due diligence process."

Microlending

A new trend in funding options is microlending — a type of loan process that caps out at $50,000. Lisa Riley is Houston market president for LiftFund, one of the largest microlenders in the United States.

Since the amount is smaller, the risk is smaller too. The type of customer LiftFund looks for is the person or company that's been denied by other banks.

"It's not always because of something negative with the customer," Riley says. "There are certain industries where it's very difficult to get finance right now."

Just like the trend in VCs, these types of lenders want to be hands on too to help secure success and a return.

"The last thing we want to be is another monthly obligation or a debt — the noose around someone's neck suffocating their small business," Riley says. "We want to make sure and walk with you and hold your hand as long as you'll hold mine so that when we give you your loan it's the right amount for your business and the right time."

Traditional loans and factoring

Of course, conventional loans is still an option, as is factoring — the process in which a business sells its accounts receivables to a third-party entity, called a factor.

Peter Ellen, senior vice president at Amegy Bank, explains the process as being pretty traditional. His bank wants to see a secure and profitable business on trach for growth.

"Typically, we look for a business that's been established for two years, that has generated a profit, and can show a clear path of repayment," Ellen says.

Again, like other funding options, Ellen says a relationship with the company is important.

"That's really what we look to do, is to form a relationship at an early stage with a company, really understand what they do, and help assist in the growth and success of their company," he says.

SBA loans

SBA loans are another lending option for startups to consider, Aziz Rahim, senior vice president at Wallis Bank, explains.

Different from a traditional loan process, SBA loans are guaranteed by the Small Business Association up to 85 percent, which lowers the risk for then lending partner.

Other benefits to SBA loans are lower down payments, generous term lengths, and caps on interest rates.

"The good thing about SBA loans compared to conventional loans is SBA loans do not balloon," Rahim says.

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5 minority-founded Houston startups shine as Innovation Awards finalists

Meet the Finalists

Houston is one of the most diverse cities in the nation, and that trend carries over into its innovation and startup ecosystem.

As part of the 2025 Houston Innovation Awards, our Minority-founded Businesses category will honor an innovative Houston startup founded or co-founded by BIPOC or LGBTQ+ representation.

Five minority-founded businesses have been named finalists for the 2025 award. The finalists, selected by our esteemed panel of judges, range from a wearable health tech device company to a clean chemical manufacturing business to a startup with a lunar mission.

Read more about these innovative businesses, their initiatives, and their inspirational founders 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 on now for this exclusive event celebrating all things Houston Innovation.

Capwell Services

Houston-based methane capture company Capwell Services works to eliminate vented oil and gas emissions economically for operators. According to the company, methane emissions are vented from most oil and gas facilities due to safety protocols, and operators are not able to capture the gas cost-effectively, leading operators to emit more than 14 million metric tons of methane per year in the US and Canada, equivalent to more than 400 million metric tons of CO2e per year. Founded in 2022, Capwell specializes in low and intermittent flow vents for methane capture.

The company began as a University of Pennsylvania senior design project led by current CEO Andrew Lane. It has since participated in programs with Greentown Labs and Rice Clean Energy Accelerator. The company moved to Houston in 2023 and raised a pre-seed round. It has also received federal funding from the DOE. Capwell is currently piloting its commercial unit with oil and gas operators.

Deep Anchor Solutions

Offshore energy consulting and design company Deep Anchor Solutions aims to help expedite the adoption of floating offshore energy infrastructure with its deeply embedded ring anchor (DERA) technology. According to the company, its patented DERA system can be installed quietly without heavy-lift vessels, reducing anchor-related costs by up to 75 percent and lifecycle CO2 emissions by up to 80 percent.

The company was founded in 2023 by current CEO Junho Lee and CTO Charles Aubeny. Lee earned his Ph.D. in geotechnical engineering from Texas A&M University, where Aubeny is a professor of civil and environmental engineering. The company has not raised VC funding, but has participated in numerous accelerators and incubators, including Greentown Labs, MassChallenge, EnergyTechNexus LiftOff and others. Lee is an Activate 2025 fellow.

Mars Materials

Clean chemical manufacturing business Mars Materials is working to convert captured carbon into resources, such as carbon fiber and wastewater treatment chemicals. The company develops and produces its drop-in chemical products in Houston and uses an in-licensed process for the National Renewable Energy Lab to produce acrylonitrile, which is used to produce plastics, synthetic fibers and rubbers. The company reports that it plans to open its first commercial plant in the next 18 months.

Founded in 2019 by CEO Aaron Fitzgerald, CTO Kristian Gubsch and lead engineer Trey Sheridan, the company has raised just under $1 million in capital and is backed by Bill Gates’ Breakthrough Energy, Shell, Black & Veatch and other organizations.

Torres Orbital Mining (TOM)

Space tech company Torres Orbital Mining aims to pioneer the sustainable extraction and processing of lunar regolith and designs and builds robotic systems for excavating, classifying, and delivering lunar material. The company aims to accelerate a permanent and ethical human presence on the Moon.

The company was founded this year by Luis Torres, a current MBA candidate at Rice Business.

Wellysis USA Inc.

Wellysis USA Inc. works to detect heart rhythm disorders with its continuous ECG/EKG monitor with AI reporting. Its S-Patch cardiac monitor is designed for extended testing periods of up to 14 days on a single battery charge. The device weighs only 9 grams, is waterproof and designed to be comfortable to wear, and is considered to have a high detection rate for arrhythmias. It is ideally suited for patient-centric clinical trials to help physicians make diagnoses faster, cheaper and more conveniently.

It was established in Houston in 2023 and participated in the JLABS SFF Program the same year. It closed a $12 million series B last year. It was founded by CEO Young Juhn, CTO Rick Kim, CFO JungSoo Kim and chief strategy officer JoongWoo Kim.

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

The Ion taps John Reale for startup and investor role

new hire

The Ion has named John "JR" Reale as its director for startups and investor engagement.

In his new role, Reale, a longtime leader in Houston’s startup ecosystem, will work to strengthen the innovation district's founder and investor network.

"Here’s what I’ve come to believe: the Ion is not just a building, not just a real estate play, and not just another innovation district. COVID, remote work, and shifting market dynamics changed the rules. Key ingredients like co-working, events, and community, while impactful, are no longer enough on their own," Reale shared on a LinkedIn post announcing the move. "What’s needed are advantages ... We need to intentionally design a system that repeatedly delivers advantages so founders can pull forward their visions."

Reale previously served as executive in residence and venture partner at TMC Venture Fund and co-founded Station Houston. He also serves as managing director of Integr8d Capital. He's an investor and serves on the board of directors for a number of venture-backed companies, including Cart.com, Lionguard and others.

The Ion will host "Today Is Day One – A conversation with John (JR) Reale" to welcome Reale to the role on Tuesday, Oct. 21. Reale will be joined at the event by Heath Butler, partner at Mercury, to discuss their thoughts on shaping Houston's founders ecosystem, as well as the Ion’s Founder Advantage Platform.

"On top of this connected architecture, we will build product. That product will be the Founder Advantage Platform to remove friction, compress time, and compound outcomes," Reale continued on LinkedIn. "This is the system that will drive repeatable experiences, and naturally, make these journeys so much more fun."

Houston's IAH soars in new ranking of U.S. airports with best dining

Flying High

Here's news that'll make a flight delay at Houston's George Bush Intercontinental Airport a bit more palatable: IAH arrives at No. 12 in a new ranking of the country’s best airports for food and beverage options.

The 2025 study by commercial furniture manufacturer Restaurant Furniture relied on Google reviews of food and beverage establishments at the busiest U.S. airports to come up with its list. The study included only those restaurants and bars with at least 20 Google reviews.

IAH earned an average Google review rating of 3.29 out of 5 stars for its food-and-beverage establishments.

The study analyzed 61 restaurants and bars at George Bush Intercontinental Airport. The Houston airport’s highest rated establishment was Pappadeaux Seafood Kitchen. That Pappadeux location garnered an average Google review rating of 4.48 out of 5. George Bush International also is home to the study’s highest-rated Chick-fil-A and Whataburger restaurants.

Several years ago, IAH made a major effort to upgrade its dining options by partnering with local chefs such as Chris Shepherd, Ryan Pera (Coltivare), and Greg Gatlin (Gatlin's BBQ) on concepts for Terminal C North. More recently, a change in the city's airport concessions contract brought local favorites such as The Annie Cafe and Common Bond to the George Bush.

“Airports aren’t usually renowned for their choices of bars and restaurants, and this is often because people just want to get through the airport and onto their final destinations as quickly as possible,” Nick Warren, head of e-commerce at Restaurant Furniture, says in a release. “However, a good airport bar or restaurant can provide a great rest stop after a long flight, and these positive experiences can go a long way towards travelers choosing which airport they will fly from in the future.”

Dallas Fort Worth International Airport soared to No. 1 in the rankings. Restaurants and bars at DFW earned an average of 3.56 out of 5 stars on Google — the highest number among 31 airports.

Just like in Houston, among 74 locations at DFW, the study found Pappadeaux Seafood Kitchen in Terminal A scored the highest average Google review rating — 4.59. DFW also boasts the top-rated IHOP, McDonald’s, Panera Bread, and Panda Express among the 31 airports that were analyzed.

Rounding out the top five airports with best food are Miami International Airport (No. 2), San Francisco International Airport (No. 3), Denver International Airport (No. 4), and Hartsfield-Jackson Atlanta International Airport (No. 5).

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A version of this story originally appeared on CultureMap.com.