New Houston investment firm closes $32M fund, announces 3 portfolio companies

money moves

A new Houston firm has closed its inaugural fund to invest in health tech. Photo via Getty Images

A new firm has emerged to invest in early-stage tech bio, artificial intelligence, and life sciences.

Modi Ventures announced its inaugural fund, Tech+Bio Fund I, closed at $32 million, an oversubscribed amount. The fund targets companies "shaping the future of humanity," reads a press release from Modi.

“Investing in next generation technologies has always been very lucrative,” says Sahir Ali, general partner of Modi Ventures, in the release. “We are entering an era of software writing software (artificial intelligence), technology that can unravel our individual genetic makeup (gene sequencing), biotech that can reprogram our genes (gene editing), and a fundamental change in how medicine is practiced by leveraging all of the above (precision medicine).

"Tech Bio companies will revolutionize multiple trillion dollar industries, providing early investors with potential for great returns,” he continues.

Ali, who's career has been focused on and the intersection of oncology and AI, has a Ph.D. and has worked with Fortune 500 companies across industries. He's joined by Andrew Yang, former presidential candidate and founder of Venture for America, as an adviser.

“Modi Ventures’ goal is to find solutions for some of the world’s most vexing problems that keep people unhealthy or struggling with illnesses that we can address collectively,” Yang says in the release. “The leadership and results that Sahir and his team have already demonstrated are one reason I’m looking forward to being a part of this team as we bring life saving solutions to market and take advantage of AI and new tools to advance the human condition.”

The first three portfolio companies Modi has announced include:

  • Amsterdam-based Lapsi Health, a medical technology company that is screening, diagnosing, treating and monitoring in medicine through sound and auscultation (acquired from stethoscopes).
  • Starling Medical, a Houston-based predictive technology platform for the early detection of bladder health issues.
  • Cyberdontics, an automated dental surgery using advanced imaging, AI, and robotics, that's based in Boston.

The firm announced that it has created partnerships with other investors, including Modi Ventures Khosla Ventures, Section 32, Artis Ventures, Draper Associates, and Antler Group.

“Modi Ventures is investing in healthcare tech companies with immense potential to improve lives and I'm thrilled to be partnering with Sahir and Modi Ventures,” says Tim Draper, founder of Draper Associates, in the release. “Working together we will be able to discover unique and innovative investments to collaborate on.”

Sahir Ali is the general partner of Modi Ventures. Photo courtesy of Modi Ventures

From Your Site Articles
Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

3 fast-growing Houston scaleups named Innovation Awards finalists

meet the finalists

From IPOs to groundbreakings, some of Houston's most innovative companies reached major milestones this year.

As part of the 2026 Houston Innovation Awards, our Scaleup of the Year category honors innovative later-stage startups that have recently reached a significant milestone in company growth. Three scaleups have been named finalists for the 2026 award.

Read more about these businesses, their founders and their breakthrough technologies below. The 2026 winners will be announced on InnovationMap.com in mid-November.

Erock

Energy infrastructure company Erock, previously known as Enchanted Rock, develops dual-purpose microgrids that rely on natural gas and renewable natural gas to produce lower carbon emissions and air pollutants than diesel generators. Its products can provide bridge power before grid interconnection, backup power during outages and dispatchable capacity that supports long-term grid reliability. The company has more than 1,100 megawatts of installed capacity and over 20 years of experience serving commercial, municipal and large-scale technology customers.

Erock completed its initial public offering this year, raising approximately $600 million in gross proceeds. It also grew its contracted power system sales backlog to approximately $1.7 billion, up tenfold year-over-year, with production sold out through 2028, according to the company's application. The company secured a major equipment order from Anthropic, began construction of the 366-megawatt El Paso Electric project supporting Meta's data center campus, and started assembly operations at its Hyperion facility in Cypress, Texas.

Hertha Metals

Hertha Metals produces lower-cost, lower-emission steel and high-purity iron. The company has developed a single-step process that uses natural gas as a direct reductant instead of metallurgical coal, which cuts production costs by more than 25 percent and emissions by up to 50 percent, according to the company. The same process produces high-purity iron needed for high-purity steels and rare earth magnets. The company says it aims to "re-industrialize America’s production of critical materials."

Hertha Metals was founded by CEO Laureen Meroueh in 2022 and emerged from stealth last year with more than $17 million in venture capital funding. The company closed a $133.65 million Series A this month and also broke ground on its $100M high-purity iron factory known as Chalyx in Conroe.

Venus Aerospace

Spacetech company Venus Aerospace is developing a high-thrust rotating detonation rocket engine (RDRE) that replaces the subsonic combustion used in conventional rocket engines. The RDRE is a compact, simpler engine that can deliver up to 15 percent greater efficiency for defense and space applications. It completed its first U.S. flight test of the engine last summer.

Venus Aerospace was founded in 2020 by CEO Cassie Duggleby and CTO Andrew Duggleby. It raised a $20 million Series A in 2022 and $42 million Series A2 in 2025. It closed a $91 million Series B earlier this year and expanded its leadership team. The company is working toward longer-duration and higher-thrust testing and advancing its flight program.

Texas ranks among top 10 best states for jobs in new report

jobs report

Business boosters often describe Texas as an economic engine. A new ranking from personal finance website WalletHub underscores that assessment.

WalletHub put Texas at No. 8 on its new list of the best states for jobs. Nebraska grabbed the No. 1 spot, and West Virginia landed at No. 50.

To compile the list, WalletHub evaluated 34 metrics from two categories: job market and economic environment. It then crunched the numbers to create a score for each state. A score of 100 represents the most favorable conditions for job seekers.

Texas ranked 25th in the job market category and second in the economic environment category. Texas’ eighth-place showing was based on a score of 59.23.

“The best states for jobs make it easier for residents to find and retain jobs, and employers in these states also offer very competitive compensation and benefits,” WalletHub analyst Chip Lupo said. “In addition, the top states are great places for people looking to raise a family, ranking among the best states for working parents.”

Data released in late October shows Texas led all states for job growth during the 12-month period that ended in September. In that time, Texas added 154,300 jobs at an annual rate of 1.1 percent.

“Texas is America’s jobs leader,” Gov. Greg Abbott said in a press release. “Businesses big and small invest with confidence in Texas and in our growing and skilled workforce. That means bigger paychecks for more Texans and more opportunities for Texas families to prosper for years to come.”

Abbott noted Texas reigns as the top state for attracting job-producing businesses and creating jobs at small businesses.

The Houston metro area actually saw a decline in new jobs in September, losing 7,300 jobs compared with the previous month. On a year-over-year basis, the region added 13,500 jobs, with professional and business services, construction, and private education and health services leading the growth.

7+ can't-miss Houston business and innovation events for November

where to be

Editor's note: From life sciences to space and energy, Houston's most notable sectors will host signature conferences and opportunities to connect this month. Here’s what not to miss in November and how to register. Please note: this article may be updated to add more events.

Nov. 4 — Startup Heat Simulation

Build a team and simulate fundraising, team building, resource allocation and go-to-market decisions that real founders face in their startup journey. This in-person simulation event helps prepare participants for when the stakes are real.

This event is Wednesday, Nov. 4, from 9 a.m.-noon at the Ion. Register here.

Nov. 9 — HAN Life Science Kick-off

Houston Angel Network will host this engaging event focused on AI in the clinical space. Expect panel discussions, networking and pitches from HAN portfolio companies. Dr. Peter Pisters, former president of M.D. Anderson, will deliver a keynote address.

This event is Monday, Nov. 9, from 4-8 p.m. at the Texas A&M School of Engineering and Medicine. Register here.

Nov. 10 — Texas Life Science Forum

Rice Alliance and BioHouston will host the 15th annual Texas Life Science Forum this month, bringing together industry, emerging life science companies, academics and investors. Nearly 50 companies will present their novel concepts during the event. Michael Tores, founder and former CEO of CrossBridge Bio, will be featured in a fireside chat. Dr. Arthur Sands, president and CEO of Nurix, will present the keynote address.

This event is Tuesday, Nov. 10, from 4-5:15 p.m. at Rice University's McNair Hall. Register here.

Nov. 11 — Envision 2026: Clinical Research, Reimagined

TMCi's annual Envision conference returns this month. This year, the event will take a look at what sets Houston apart as a hub for clinical research and how TMC is exploring strategies to address the roadblocks Houston and Texas face in clinical trial efficiency.

This event is Wednesday, Nov. 11, from 3:30-6 p.m. at TMC Innovation Factory. Register here.

Nov. 11 — First Principles: Inside the Texas A&M Space Institute

Dr. Rob Ambrose, associate director of the Texas A&M Space Institute, will present on the Texas A&M Space Institute's planned 400,000-square-foot facility at NASA’s Exploration Park at the latest installment of this series. A moderated Q&A will follow.

This event is Wednesday, Nov. 11, from 3:30-6 p.m. at TMC Innovation Factory. Register here.

Nov. 12 — Technology Transfer Thursdays

Join for the third installment of Tech Transfer Thursdays, hosted by Rice University's Office of Technology Transfer. The event series focuses on how emerging university research can become commercial ventures. This month's event will focus on artificial intelligence and quantum computing. Stick around after for a community happy hour.

This event is Thursday, Nov. 12, from 5:30-7 p.m. at the Ion. Register here.

Nov. 12 — Transition on Tap

Greentown Labs’ signature networking event returns in November to foster conversations and connections within Houston's climate and energy transition ecosystem. Entrepreneurs, investors, students, philanthropists and more are invited to attend, meet colleagues, discuss solutions and engage with the growing community.

This event is Thursday, Nov. 12, from 5:30-7 p.m. at Greentown Labs. Register here.

Nov. 18-19 — American Data Centers & AI Conference and Exhibition 2026

Set to redefine the intersection of energy and digital infrastructure, the American Data Centers & AI Conference and Exhibition convenes in Houston for its second annual event. The event will address the increasing demand for high-performance computing and the sustainable development of AI infrastructure, which requires significant power. Participants can expect to learn about practical solutions in energy integration, modern data center design, and scalable approaches. The agenda includes presentations from leading experts, demonstrations of new technologies for thermal management and grid optimization, and detailed discussions on AI's environmental impact and how to reuse generated heat.

This event begins Nov. 18 at the DoubleTree Hotel at Greenway Plaza. Register here.

View All Listings