Houston group launches equitable fund of funds to increase impact at a lower barrier of entry

more access to funding

Urban Capital Network have launched a fund-of-funds to allow investors to tap into later-stage startups at a much lower barrier of entry. Images via urbancapitalnetwork.com

Early stage investing has always been a tried and true way for investors to get in on the ground floor of a tech company for a smaller financial commitment — but it's risky. Urban Capital Network has created an alternative.

UCN was founded to democratize investment opportunities and help investors of color find investment opportunities all while cutting their teeth as novice investors. Lenny Saizan, co-founder of UCN, says that its Horizon Fund II allows for UCN investors to get involved in venture-backed companies at a much lower price tag.

Saizan explains that UCN members are in that lower tier of accredited investors who don't necessarily have $250,000 or $1 million to invest in a fund — but they have $15,000 to $25,000 to invest.

"We allow more people to participate in venture funds or venture-backed opportunities," Saizan tells InnovationMap. "Instead of going into one deal at a very early stage, you’re getting in a later stage where the deal is more de-risked and you have a better chance of returns."

As members start to see returns on these premium investment opportunities, Saizan says, UCN encourages their investors to look at earlier stage within their own communities.

“We recognized that there was still an issue with minority founders getting funded as well,” Saizan says of UCN's mission as a whole. “We thought the best approach would be to create wealth and income within the communities that those founders would be reaching out to.”

Horizon Fund II will deploy capital in up to five funds — each with 15 to 30 portfolio companies. The first two investment opportunities have already been secured: Pegasus Tech Ventures's Pre-IPO Fund and Mercury Fund V, a Houston VC firm. In two years, UCN has seen five exits across its six funds. It's the group's second fund of funds — the first was an investment in Mercury Fund IV.

Eric Tait, co-founder at UCN, says they are looking for variety in the funds they invest in and are targeting top-tier, and highly rated VC firms all over the country that UCN's leadership has connections with.

“We’re relatively agnostic in terms of industry,” Tait says. “We do try to have a portfolio allocation that will create a return threshold that is varied.”

Typically, Tait explains, investing in a VC fund won't garner returns for seven to 10 years. However, UCN specifically targeted Pegasus's Pre-IPO Fund because ROI is expected between years two and four.

Tait says one of the things of focus for UCN this year is to grow the network's reach.

“A big goal for us is to tap into more institutional investors — like family offices, and things of that nature,” Tait says. “What we’ve realized is what we’ve been able to do for individual investors has been locked down, and we can do the same thing on a smaller scale for institutional dollars who are interested in these opportunities but don’t want to put in $1 million.”

Saizan says his team is also looking to give members a tech upgrade when it comes to accessing information and deals on UCN's platform. Additionally, he wants to focus on strengthening the group's network of VCs and how UCN interacts with them. He says firms reach out with interest all the time, and he wants to streamline that process using technology.

“We really want to formalize our network,” Saizan says. “We’re bringing diverse deal flow, diverse investors, diverse talent, and a diverse perspective. So, a lot of times VCs tap us when they are looking for an opportunity — or maybe they have an opportunity and want to know what we think.”

This week's Houston innovators to know includes Lenny Saizan of Urban Capital Network, Katie Eick of Rollin' Vets, and Tony Loyd of AECOM. Courtesy photos

3 Houston innovators to know this week

Who's who

Editor's note: This year has made for some pivotal moments for various Houston companies across industries. For some, the pandemic has meant reevaluating their business plans or increased a need for their product or service. For others, social unrest has called for systemic change. Technology emerges for these needs. This week's Houston innovators are addressing these needs with their innovative efforts.

Lenny Saizan, co-founder and managing partner

Lenny Saizan — along with three other Houston innovation leaders — founded Urban Capital Network to increase diversity and inclusion within the venture capital space. Photo via urbancapitalnetwork.com

While venture capital firms usually operate in a similar structure, Lenny Saizan and his co-founders wanted to set up Urban Capital Network differently in order to "democratize access to premium VC-backed investments," Saizan says. UCN invests into VCs that meet their diversity and inclusion requirements as a limited partner, but then also invests directly into startups as a sort of hybrid investor.

"We take a portion of our proceeds and invest in entrepreneurs of color, and we also donate to nonprofits that provide support resources for those entrepreneurs," Saizan says on this week's episode of the Houston Innovators Podcast. "We're completing the cycle. We find that it's easier to go to a VC and offer to give them money and also help them diversify their investor portfolio."

Saizan shares more about the group in the podcast episode and discusses what they've already accomplished in just a few months. Read more.

Katie Eick, founder of Rollin' Vets

Katie Eick always wanted to be able to offer mobile services. Photo courtesy of Rollin' Vets

Katie Eick founded her mobile vet company in 2016 after years of wanting to be able to provide the type and level of service she has now at Rollin' Vets. While convenience technologies like delivery apps buoyed her company's steady growth, the pandemic really established market need for her business model.

"We were continuously growing slowly — then COVID hit. It really cemented that … all the convenience services are in the forefront of people's minds." Eick tells InnovationMap. "COVID made it clear that this was a necessary service."

Now, she plans to adopt a franchising model and is planning an expansion into San Antonio and Dallas before going national. Read more.

Tony Loyd, vice president at AECOM

Just like Hurricane Harvey, COVID-19 is causing Houstonians to rethink how they operate — and that tech and innovation inversion is opening the door to new opportunities. Courtesy Photo

COVID-19 is affecting the evolution of technology — it's as simple as that, according to Tony Loyd. And it's not the first time — nor the last — that consumer needs affect tech innovation.

"Could COVID-19 be triggering an inversion paradigm? An inversion paradigm puts needs first rather than product first," writes Loyd in a guest column for InnovationMap. "We have experienced many historic technology inversions. Remember when our televisions were air-wave dependent and telephones were tethered to the wall? Because the need evolved for a phone that was mobile, today our TV's are wired, and our telephones are untethered." Read more.

This investor is democratizing access to venture capital deals in Houston while promoting inclusion

HOUSTON INNOVATORS PODCAST EPISODE 47

The Urban Capital Network, which launched in Houston earlier this year, gets the best of both worlds. Not only is the group working with venture capital firms as a limited partner, but, operating as a hybrid investor, UCN also is funding startups directly — using both avenues to promote diversity and inclusion.

"We can be described as a hybrid between an angel investment group and a small VC firm," says Lenny Saizan, co-founder and managing partner of Urban Capital Network. "Our mission is to democratize access to premium VC-backed investments."

By forming relationships with VC funds — specifically ones that value UCN's diversity and inclusion platform — the group's network of investors can form syndicates, or group investments, to work with these funds on deals they otherwise couldn't afford to invest into. The VCs benefit in that they have access to new limited partners.

Saizan says UCN has raised $3 million in six months, and all that's been invested.

Saizan has three business partners, who each provides their own expertise to UCN: Heath Butler, network partner at Houston-based Mercury Fund; Felix Chevalier, founder of The Chevalier Law Firm; and Dr. Eric S. Tait president of Vernonville Asset Management.

Saizan discusses some of the challenges and opportunities the pandemic has provided UCN and where he and his co-founders are planning to take the investment group in the episode of the podcast. You can listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

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Houston researcher secures $1.7M to develop drug for aggressive form of breast cancer

cancer research

A University of Houston researcher has joined a $3.2 million effort to develop a new drug designed to attack a cancer-driving protein commonly found in triple-negative breast cancer.

Triple-negative breast cancer (TNBC) is one of the most difficult-to-treat forms of cancer and accounts for 10 percent to 15 percent of all breast cancer cases. The disease gets its name because tumors associated with it test negative for estrogen receptors, progesterone receptors and excess HER2 protein, making it difficult to target. Due to this, TNBC is often treated with general chemotherapy, which can come with negative side effects and drug resistance, according to UH.

UH College of Pharmacy research associate professor Wei Wang is developing a drug that can target the disease more specifically. The drug will target MDM2, a protein often overproduced in TNBC that also contributes to faster tumor growth.

Wang is working on a team led by Wei Li, director of the University of Tennessee Health Science Center College of Pharmacy’s Drug Discovery Center. She has received $1.7 million to support the research.

Wang and UH professor of pharmacology and toxicology Ruiwen Zhang have discovered a compound that can break down MDM2. In early laboratory models, the compound has shown the ability to shrink tumors.

Wang and Zhang will focus on understanding how the treatment works and monitoring its effectiveness in models that closely mirror human disease.

“We will study how the drug targets MDM2 and evaluate the most promising drug candidates to determine effective dosing, understand how the drug behaves in the body, compare it with existing treatments and assess early safety,” Wang said in a news release.

Li’s team at the University of Tennessee will be working on the chemistry and drug design end of the project.

“This work could lead to an entirely new class of therapies for triple-negative breast cancer,” Li added in the release. “We’re hopeful that by directly removing the MDM2 protein from cancer cells, we can help more patients respond to treatment regardless of their tumor type.”

10+ Houston innovation leaders in the spotlight at SXSW 2026

where to be

Houston's innovation scene will be well represented at South by Southwest (SXSW) this month.

The week-long, Austin-based conference and festival will spotlight some of the Bayou City's leaders in health care, energy, space and more. The event kicks off today, March 12, and runs through March 18. The SXSW Innovation Conference will feature keynotes, workshops, mentoring sessions and more throughout various venues in the city.

Here's who to see and when and where to find them:

March 12

Aileen Allen, venture partner at Mercury Fund

Mentor Session from 4-5:15 p.m. at Hilton Austin Downtown

Allen will host a mentoring session focused on funding, marketing, advertising, PR and the future of work.

March 13

Heath Butler, partner at Mercury Fund

SXSW Pitch-Smart Cities, Transportation, Manufacturing & Logistics from 2:30-3:30 p.m. at the J.W. Marriott

Butler will judge five innovative startups as they pitch their solutions to advance smart cities, enhance transportation systems, modernize manufacturing, transform logistics, and strengthen government infrastructure and civic operations.

Jonathan Cirtain, CEO and president of Axiom Space

The Clock is Ticking for Space - Replacing the ISS from 4-5 p.m. at the J.W. Marriott

Cirtain will discuss Axiom's pursuit of building the world’s first commercial space station.

March 14

Jesse Martinez, founder and CEO of LSA Global

SXSW Pitch-Intelligent Systems, Robotics, & Multisensory Technology from 10-11 a.m. at the J.W. Marriott

Martinez will judge five innovative startups as they pitch their technologies that aim to enhance the way people connect, communicate and share unique life experiences with those around them in a digital ecosystem.

Jennifer Schmitt, head of operations at Rhythm Energy

Powering Texas with Reliable Integrated High-Demand Energy from 10-11 a.m. at Marlow

Schmitt will join a panel to discuss how EirGrid, the state-owned electric power transmission operator in Ireland, is pioneering solutions as the country works toward 80 percent renewable integration by 2030.

Saki Sasagawa, director of business development for JETRO Houston

Now is Japan's Time: Leading the Future with Deep Tech from 10-11 a.m. at the J.W. Marriott

Sasagawa joins a panel that will share real-time insights from diverse perspectives on the forefront of Japan’s deep tech and IP businesses.

March 15

Bosco Lai, CEO and co-founder of Little Place Labs

SXSW Pitch Alumni: Where Are They Now? from 10-11 a.m. at the J.W. Marriott

Lai joins a panel of four former SXSW Pitch winners to share how they leveraged the platform to take their startups to the next level.

Tara Karimi, cofounder and chief science and sustainability officer at Cemvita

South by South America: The Rise of Southern Brazil Tech from 2:30-3:30. p.m. at The Line

Karimi will participate in a panel to discuss how Rio Grande do Sul, Brazil's southernmost state, is attracting elite talent and AI infrastructure and share insights on navigating the next wave of South American tech growth.

March 16

Dr. Pavitra P. Krishnamani, emergency medicine physician at The University of Texas MD Anderson Cancer Center

Viva La Revolution: How the Digital Age is Transforming Wellness from 11:30 a.m.-12:30 p.m. at Hilton Austin Downtown

Krishnamani will discuss the latest advancements and policies that can accelerate the digital age of health care, such as wearables, telehealth and artificial intelligence.

March 18

Charlie Childs, co-founder and CEO of Intero Biosystems

Spinning Out: What It Takes to Build a University Startup from 2:30-3:30 p.m. at The Line

Childs will join founders who spun their companies out of the University of Michigan to share the real story of navigating IP, early capital, team building, market validation and the “valley of death.”

Dr. James Allison, regental chair of immunology and director of The Allison Institute at The University of Texas MD Anderson Cancer Center

Dr. Padmanee Sharma, professor in the Department of Genitourinary Medical Oncology, Division of Cancer Medicine at The University of Texas MD Anderson Cancer Center

Beyond Checkpoints: Immunotherapy’s Next Act from 2:30-3:30 p.m. at the J.W. Marriott

Allison and Sharma will sit down with 21-year-old, Stage 4 cancer survivor Sharon Belvin and Time Magazine journalist Alice Park will discuss the future of immunotherapy and what challenges remain.

Last year, Houston startups Little Places Labs and Helix Earth won top prizes in their respective categories at the prestigious SXSW Pitch event, held this year from March 13-14. No Houston startups were named finalists to compete in this year's event.

NASA revamps Artemis moon landing program by modeling it after Apollo

To the moon

NASA is revamping its Artemis moon exploration program to make it more like the fast-paced Apollo program half a century ago, adding an extra practice flight before attempting a high-risk lunar landing with a crew in two years.

The overhaul in the flight lineup came just days after NASA’s new moon rocket returned to its hangar for more repairs, and a safety panel warned the space agency to scale back its overly ambitious goals for humanity’s first lunar landing since 1972.

Artemis II, a lunar fly-around by four astronauts, is off until at least April because of rocket problems.

The follow-up mission, Artemis III, had been targeting a landing near the moon’s south pole by another pair of astronauts in about three years. But with long gaps between flights and concern growing over the readiness of a lunar lander and moonwalking suits, NASA’s new administrator Jared Isaacman announced that mission would instead focus on launching a lunar lander into orbit around Earth in 2027 for docking practice by astronauts flying in an Orion capsule.

The new plan calls for a moon landing — potentially even two moon landings — by astronauts in 2028.

“Everybody agrees. This is the only way forward,” Isaacman said.

The hydrogen fuel leaks and helium flow problems that struck the Space Launch System rocket on the pad at NASA's Kennedy Space Center in February also plagued the first Artemis test flight without a crew in 2022.

Another three-year gap was looming between Artemis II and the moon landing by astronauts as originally envisioned, Isaacman said.

Isaacman stressed that “it should be incredibly obvious” that three years between flights is unacceptable. He'd like to get it down to one year or even less.

Isaacman, a tech billionaire who bought his own trips to orbit and performed the world’s first private spacewalk, took the helm at NASA in December.

During NASA’s storied Apollo program, he said, astronauts’ first flight to the moon was followed by two more missions before Neil Armstrong and Buzz Aldrin landed on the moon. What's more, he added, the Apollo moonshots followed one another in quick succession, just as the earlier Projects Mercury and Gemini had rapid flight rates, sometimes coming just a few months apart.

Twenty-four Apollo astronauts flew to the moon from 1968 through 1972, with 12 of them landing.

“No one at NASA forgot their history books. They knew how to do this," Isaacman said. “Now we're putting it in action.”

To pick up the pace and reduce risk, NASA will standardize its Space Launch System rockets moving forward, Isaacman said. These are the massive rockets that will launch astronauts to the moon aboard Orion capsules. At the same time, Elon Musk's SpaceX and Jeff Bezos' Blue Origin are speeding up their work on the landers needed to get the astronauts from lunar orbit down to the surface.

Isaacman said next year will see an Orion crew rendezvousing in orbit around Earth with SpaceX's Starship, Blue Origin's Blue Moon or both landers. It's similar to the methodical approach that worked so well during Apollo in the late 1960s, he noted. Apollo 8, astronauts' first flight to the moon, was followed by two more missions before Armstrong and Aldrin aimed for the lunar surface.

“We should be getting back to basics and doing what we know works,” he said.

The Aerospace Safety Advisory Panel recommended that NASA revise its objectives for Artemis III “given the demanding mission goals.” It’s urgent the space agency do that, the panel said, if the United States hopes to safely return astronauts to the moon. Isaacman said the revised Artemis flight plan addresses the panel's concerns and is supported by industry and the Trump administration.

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