Houston investor outlines how rare VCs are in Houston — and how to find them

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If you feel like it's hard to find venture capitalists in Houston, you wouldn't be wrong, according to this Houston investor. Photo via Getty Images

As a venture capitalist and former startup founder living in Houston, I get asked a lot about the best way to find and connect with a venture capitalist in Houston. My usual advice is to start with a list, and reach out to everyone on that list. But no one has a comprehensive list. In fact, VCs are such a quiet bunch that I’ve yet to meet someone who personally knows everyone on this proverbial list.

So, I got together with a couple of VC friends of mine, and we put together our own Houston venture capitalist list.

There are, by our count, 11 active venture capital funds headquartered in Houston of any size and type, and outside of corporate venture capital and angel investors, there are 30 total venture capitalists running funds.

Houston has always been quite thin on the VC fund front. I’ve jokingly introduced myself for a while as “one of the 13 venture capitalists in Houston.”

Let’s put this scale in some brutal perspective. With 7.2 million people in the Greater Houston Metro Area, the odds of finding a partner level active venture capitalist in Houston is about 1 in 240,000, if you take a most expanded definition of venture capitalist that might come down to 1 in 100,000. We’re the fifth largest metropolitan area in the country with a tremendous economic engine; there is a ton of capital in Houston, but it’s residing in things like institutional fixed income and equities, real estate, wealth management, corporate, private equity, family office, energy and infrastructure Basically, mostly everywhere but in venture capital funds for tech startups.

By comparison, there are almost as many Fortune 500 CEOs in Houston — 24, by our count — as venture capitalists and fewer venture capitalists than Fortune 1000 CEOs, of which there are 43. That means running into a VC in the checkout line at HEB is about as rare as running into the CEO of CenterPoint, ConocoPhillips, or Academy. In fact, as there are 115 cities in the Greater Houston area, you are three times more likely to be a mayor in Greater Houston Area than a partner at an investor at a VC firm, and more likely to be a college or university president. While we’re at it, you’re 400 times more likely to be a lawyer, 250 times more likely to be a CPA, and over 650 times more likely to be a medical doctor.

Our 30 venture capitalists in the Greater Houston Area are spread across 20 firms and all major venture sectors and stages. Venture capitalist is defined for this list as a full time managing director or partner-level investment professional actively running a venture capital fund with limited partners, currently investing in new venture capital deals from their fund from seed to growth stage, and residing in the Greater Houston Metro area.

To get to 31 we added in a couple of people running venture set asides for PE funds, and a number who work from Houston for funds with no office here. We excluded CVCs, as the decision making is more corporate than individual and rarely includes the committed fund and carried interest structure that defines venture capital, and excluded professionals at angel networks, accelerators, and seed funds that provide investment, but don’t manage conventional venture capital funds, as well as PE funds that do the occasional venture deal. We might be able to triple the number if we include venture capitalists at any professional level, and add in those professionals at PE and angel and seed funds, and corporate venture capital teams who are actively investing. But we’ll get to those other sources of funding in the next list.

The 11 venture capital funds headquartered in Houston are: Mercury, Energy Transition Ventures (my fund), Montrose Lane (formerly called Cottonwood), Texas Medical Center Venture Fund, Artemis, New Climate Ventures, Fitz Gate Ventures, Curate Capital, Knightsgate Ventures, Amplo Ventures,and First Bight Ventures.

Another half a dozen firms have a partner level venture capital investor here, but are headquartered elsewhere: Energy Innovation Capital, Decarbonization Partners, 1984 Ventures, Altitude Ventures, Ascension Ventures, Moneta Ventures, and MKB & Co. Two others, CSL Ventures and SCF Partners, are local private equity funds with a venture capital partner in Houston and a dedicated allocation from a PE fund.

Culling these for partner or managing director level currently in Houston, in alphabetical order by first name, LinkedIn profile and all.

We may have missed a couple of VCs hiding in plain sight, as venture capital is a pretty dynamic business.

VCs are just rare. And yes, perhaps more rare in Houston than in California. Something less than 1 in 100 VCs in the country live in Houston. Across the US there are somewhere around 1,000 to 2,000 active venture capital firms, and maybe another 1,000 to 2,000 active US based CVCs — so, plus or minus maybe at most 4,000 to 5,000 currently active partner level venture capitalists in the country excluding CVC professionals (active VCs and VC funds are really hard to count).

Perhaps in the most stunning statistic, the 7,386 elected state legislators in the US today outnumber the total number of American venture capitalists. Luckily for startup founders, the venture capitalists are more likely to return your phone call.

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Neal Dikeman is a venture capitalist and seven-time startup co-founder investing out of Energy Transition Ventures. He’s currently hosting the Venture Capital for First Time Founders Series at the Ion, where ETV is headquartered.

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Two Houston venture capitalists weigh in on the state of startup investing in an economic climate recovering from the COVID-19 crisis. Getty Images

Houston-based venture firm closes recent fund and reflects on COVID-19's effect on investing

must be the money

It's no secret that — in light of coronavirus-caused closures, market disruption, and historic unemployment — venture capitalist might be a little more hesitant to join in on a startup's investment round. Yet one Houston VC group has managed amidst the crisis — and even succeeded in closing its most recent fund.

Fitz Gate Ventures, which operates out of Houston but with the support of Princeton University, announced the closing of its Fund II on May 5. Focusing on seed and pre-seed rounds, co-founders and managing directors Mark Poag and Jim Cohen will be looking for startups across industries — usually with some revenue and customer base — to write around $500,000 checks to.

At a virtual panel event hosted by Houston Exponential, the investors say they have appreciated focusing on smaller deals in times like these — it's allowed them to work closely with their portfolio of 15 startups, two of which (Cheers and Spruce) have roots in Houston.

"We are definitely more hands-on with our founders," Cohen says on the panel, noting that it feels like they are having board meetings daily — virtually, of course.

Most of these meetings, Poag explains, are focusing on making sure the portfolio startups have enough runway with their cash reserves to make it at least through the end of the year without any new sales. Of course, that's meant cutting salaries and employees and finding other options to operate in a lean way.

Fitz Gate also has stayed in touch virtually with its Friends of Fitz group — a unique network of Princeton-related professionals (such as faculty, fellow VCs, domain experts, etc.) that give the investors and their portfolio companies a strategic advantage.

While the video conferences are useful to stay in touch with existing portfolio companies, Poag says he — as well as other VCs — might be wary of making new investments in this capacity.

"We haven't invested in any new companies since the COVID situation, but it will be interesting to see if we and other venture capital firms get comfortable with making investments without an in-person meeting," says Poag on the panel.

Generally, Cohen says he has observed a different investment environment since the beginning of March, and there's no clear indication when things will change.

"I think in the short-term, investing will be slower. Basically, people are still trying to figure out what's going on," Cohen says, noting how, in March, the tides seemed to change every 24 hours. "Now, things have started to slow down, but the ground is still shifting beneath our feet. I think most venture investors are proceeding cautiously."

Something else to keep an eye on, as the Fitz Gate founders have experienced, is that startups are making changes to their products in order to provide a more relevant offer to customers. One of the fund's portfolio companies is Houston-founded Spruce, which recently started offering disinfecting deals along with its concierge services to apartment dwellers.

"None of our companies have pivoted to change anything they are doing fundamentally to take advantage of the situation," says Cohen, citing some supply chain software startups and a charity-based startup that have also seen business success during the COVID-19 crisis.

However, approaching VCs for the first time is now a different story, amidst the crisis. While the Fitz Gate founders explain that they open and respond to every email inquiry from startups, that's not the case for most VCs who prefer a warm introduction — but maybe not even that considering the current economic climate.

"If you're approaching a venture investor today, you might get a bit of a weird look," Cohen says of startups looking to fundraise.

On the virtual panel, the duo shared some insight on their passion for venture funding, as well as some general advice for startups. One key takeaway from the investors was a reminder that most VCs are funding between 1 and 2 percent of deals that come across their table.

"Don't get discouraged," Cohen says. "Any venture fund you talk to, they're not geniuses. They are operating on very limited information about whatever it is you pitched them in a really short fashion."

While it is disheartening to hear a "no" from an investor, it doesn't mean the startup's idea or product isn't valid.

In wrapping up the call, Cohen remarks on the environment for Houston innovation. While he admits the ecosystem lacks access to funding, he observes that this will change in a matter of time.

"It's amazing how many startups in Houston — and the support infrastructure," Cohen says, noting startup development organizations like The Ion, The Cannon, and more. "So much going on in this ecosystem, so I think, in that sense, it's an incredibly vibrant place to be as a founder."

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Houston leader on building inclusive communities through innovation

Guest Column

Innovation is often celebrated for speed or curiosity, but genuine progress is about inclusion and expanding the populations that benefit from new technologies.

For example, at Yale University, nursing students are now utilizing a hyper-realistic patient mannequin with Down syndrome, which not only mimics appearance but also fosters both empathy and competence in medical professionals who will treat people of all abilities. Tools like this remind us that innovation is not only about what is new, but also about how we include everyone in progress.

Inclusive Technology: What It Means

Inclusive technology design begins with diverse users in mind, including people living with disabilities such as blindness, hearing loss, or limb loss. Additionally, neurodiverse learners and those with varied learning styles benefit from inclusive technology. The purpose is to create tools that serve everyone in their homes, classrooms, workplaces, and public spaces. Inclusive technology is not only about empathy, but also equity. Innovation bridges gaps and extends access to all people.

National and Local Innovations Advancing Inclusion

Across the country, inclusive technology is transforming access for individuals with varying abilities. Robotics adapted for visually impaired students, audio-virtual reality labs for immersive learning, and AI-based platforms that personalize lessons for students are helping students engage in ways traditional tools cannot. These innovations are not just technical; instead, they are also deeply human, designed to expand access and opportunity for every learner.

Locally, Houston-based organizations demonstrate how inclusive tech can be paired with supportive programs to amplify impact:

  • BridgingApps, a program of Easter Seals of Greater Houston, provides assistive-tech labs and mobile devices for children and adults with disabilities, helping students communicate, learn, and connect in ways they may not have thought possible before.
  • MADE Houston creates adaptive classroom environments for twice-exceptional learners (gifted students with learning differences), ensuring that both their strengths and challenges are incorporated in the curriculum and class experiences.

Both programs partner with Camp For All to provide barrier-free camp experiences to their students.

Innovative technology has the power to change student outcomes and improve the quality of life. Reports such as Inclusive Technology in a 21st Century Learning System show that students with disabilities who have access to these tools are two to three times more likely to graduate from high school than those without.

Complementing these technology-driven advances are experiential programs that create community and empowering experiences.

Camp For All, for example, offers medically safe and adaptive camp experiences for children and adults with challenging illnesses, disabilities, or special needs. Camp For All demonstrates how barrier-free environments, combined with opportunities to explore and try new activities, foster confidence and resilience in campers, such as those who benefit from Easter Seals of Greater Houston and MADE Houston camps.

Why This Matters

When tools and technologies are designed to include everyone, the impact has the potential to impact all people. Individuals with physical, sensory, or learning differences gain confidence and access to opportunities, which leads to more diverse workforces and stronger communities.

Technology, educational tools, and thoughtfully designed programs can reduce barriers, improve academic outcomes, and help prepare individuals for future employment and independent living. Conversely, failing to design inclusively can further entrench inequities related to race, income, and abilities.

For context, while the national graduation rate for students with disabilities has risen to 74%, it still lags behind the 88% rate for peers without disabilities. Technology and inclusive programs help bridge this gap, ensuring that not only more students graduate, but that individuals with disabilities also are better prepared to access higher education, participate fully in the workforce, and engage in social and civic life.

Inclusive tools, such as accessible transportation services, audible pedestrian signals, braille ballots for voting, and short-term device loan programs like TTAP, expand opportunities and promote equitable participation across all aspects of society.

Additionally, research shows that early exposure and inclusion of those living with disabilities, such as in classrooms, community spaces, and club activities, fosters a greater acceptance of differences and proclivity toward inclusive attitudes as children mature. When we begin focusing on acceptance and innovative solutions for all people from the very beginning, our communities are stronger and we increase access to participation for all.

Challenges, Opportunities, and Ripple Effects

Despite progress, obstacles to scaling inclusive technology remain. Many families and schools cannot afford high-end assistive devices, and tools are often developed without input from the users who will rely on them the most.

Although grants and pilot programs exist, systemic funding and support are still limited. Educators, healthcare providers, and city planners also require training and guidance to effectively implement these tools. Overcoming these challenges requires coordinated efforts among technology companies, educators, nonprofits, policymakers, and the communities they serve.

Houston’s rich mix of innovation, research institutions, and nonprofit networks makes it an ideal testing ground for inclusive technology, and we are seeing more advancements daily. Schools and early learning centers are piloting innovative tools, including adaptive learning software, interactive robotics, music therapy, and word prediction programs.

At the same time, medical and therapy programs use simulation labs and telehealth tools to improve treatment for children and adults with disabilities. Civic and public spaces are also becoming more accessible through smart city initiatives such as wayfinding apps, inclusive playgrounds, and sensory-friendly public areas. These examples demonstrate that inclusive technology is about creating meaningful opportunities for everyone, regardless of ability, background, or resources.

When inclusion is prioritized, the benefits extend far beyond individual users. Educational outcomes improve as more students meet learning goals and graduate successfully. Workforce readiness increases as a broader range of skills and abilities enters the labor market. Community equity grows as individuals from underserved communities gain access to tools and experiences that were previously inaccessible.

Increasing participation for students and individuals translates into stronger local and state economies. At its core, inclusive technology creates equity and resilience at both the individual and community level.

Moving Forward

Designing with empathy, investing in equitable access, and acting with urgency are essential to building communities where everyone has the opportunity to contribute. Houston, with its combination of medical research institutions, ed-tech startups, aerospace leadership, nonprofit networks, and pilot programs, is uniquely positioned to lead the nation in inclusive innovation.

By prioritizing technology and programs that serve all learners, the city can demonstrate that meaningful progress is measured not by speed or novelty, but by the number of people who benefit from it. When cities, organizations, and communities commit to inclusive design, they build stronger and more equitable places where everyone benefits and thrives.

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Pat Prior Sorrells is president and CEO of Camp For All, a Texas-based nonprofit organization. Located in Burton, Texas, the 206-acre Camp For All site was designed with no barriers for children and adults with special needs to experience the joy of camping and nature. Camp For All collaborates with more than 65 nonprofit organizations across the Greater Houston area and beyond to enable thousands of campers and their families to discover life each year. She speaks regularly on the need for inclusive design in public spaces.

7 innovative startups that are leading the energy transition in Houston

meet the finalists

Houston has long been touted as the energy capital of the world, and it's now it's also a leading player in the energy transition — home to numerous startups and innovators working toward a cleaner future.

As part of the 2025 Houston Innovation Awards, our Energy Transition Business category honors innovative startups that are providing solution within renewables, climatetech, clean energy, alternative materials, circular economy, and more.

Seven energy transition companies have been named finalists for the 2025 award. They range from a spinoff stimulating subsurface hydrogen from end-of-life oil fields to a company converting prickly pear cactus biogas into energy.

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

Anning Corporation

Clean energy company Anning Corporation is working to develop geologic hydrogen, a natural carbon-free fuel, using its proprietary stimulation approaches and advanced exploration modeling. The company said that geologic hydrogen has the potential to be the lowest-cost source of reliable baseload electricity in the U.S.

The company was founded by CEO Sophie Broun in 2024 and is a member of Greentown Labs. Last month, it also announced that it was chosen to participate in Breakthrough Energy’s prestigious Fellows Program. Anning raised a pre-seed round this year and is currently raising a $6 million seed round.

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 U.S. and Canada. 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 participated in numerous accelerators and incubators, including Greentown Labs, MassChallenge, EnergyTech Nexus LiftOff, and others. Lee is an Activate 2025 fellow.

Eclipse Energy

Previously known as Gold H2, Eclipse Energy converts end-of-life oil fields into low-cost, sustainable hydrogen sources. It completed its first field trial this summer, which demonstrated subsurface bio-stimulated hydrogen production. According to the company, its technology could yield up to 250 billion kilograms of low-carbon hydrogen, which is estimated to provide enough clean power to Los Angeles for over 50 years and avoid roughly 1 billion metric tons of CO2 equivalent.

Eclipse is a spinoff of Houston biotech company Cemvita. It was founded in 2022 by Moji Karimi (CEO and chairman of Cemvita), Prabhdeep Sekhon (CEO of Eclipse), Tara Karimi, and Rayyan Islam. The company closed an $8 million series A this year and has plans to raise another round in 2026.

Loop Bioproducts

Agricultural chemical manufacturing company Loop Bioproducts leverages the physiology of prickly pear cactus grown in Texas to produce bioenergy, food, and remediate industrial wastewater streams. The company uses its remote sensing technology, proprietary image-based machine learning model, and R&D innovation to capture raw biogas from the cactuses and is focused on scaling cactuses as an industrial crop on land.

Rhiannon Parker founded Loop Bioproducts in 2023.

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.

Solidec

Chemical manufacturing company Solidec has developed autonomous generators that extract molecules from water and air and converts them into pure chemicals and fuels that are free of carbon emissions onsite, eliminating the need for transport, storage, and permitting. The company was founded around innovations developed by Rice University associate professor Haotian Wang.

The company was selected for the Chevron Technology Ventures’ catalyst program, Greentown Labs, NSF I-Corps and was part of the first cohort of the Activate Houston program. It won first place at the 2024 startup pitch competition at CERAWeek. Solidec was founded in 2023 by Wang, who serves as chief scientist, CEO Ryan DuChanois, and CTO Yang Xia. It closed a $2.5 million seed round earlier this year.

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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.

Rice University team develops eco-friendly method to destroy 'forever chemicals' in water

clean water research

Rice University researchers have teamed up with South Korean scientists to develop the first eco-friendly technology that captures and destroys toxic “forever chemicals,” or PFAS, in water.

PFAS have been linked to immune system disruption, certain cancers, liver damage and reproductive disorders. They can be found in water, soil and air, as well as in products like Teflon pans, waterproof clothing and food packaging. They do not degrade easily and are difficult to remove.

Thus far, PFAS cleanup methods have relied on adsorption, in which molecules cling to materials like activated carbon or ion-exchange resins. But these methods tend to have limited capacity, low efficiency, slow performance and can create additional waste.

The Rice-led study, published in the journal Advanced Materials, centered on a layered double hydroxide (LDH) material made from copper and aluminum that could rapidly capture PFAS and be used to destroy the chemicals.

The study was led by Rice professor Youngkun Chung, a postdoctoral fellow under the mentorship of Michael S. Wong. It was conducted in collaboration with Seoktae Kang, professor at the Korea Advanced Institute of Science and Technology, and Keon-Ham Kim, professor at Pukyung National University, who first discovered the LDH material.

The team evaluated the LDH material in river water, tap water and wastewater. And, according to Rice, that material’s unique copper-aluminum layers and charge imbalances created an ideal binding environment to capture PFAS molecules.

“To my astonishment, this LDH compound captured PFAS more than 1,000 times better than other materials,” Chung, lead author of the study and now a fellow at Rice’s WaTER (Water Technologies, Entrepreneurship and Research) Institute and Sustainability Institute, said in a news release. “It also worked incredibly fast, removing large amounts of PFAS within minutes, about 100 times faster than commercial carbon filters.”

Next, Chung, along with Rice professors Pedro Alvarez and James Tour, worked to develop an eco-friendly, sustainable method of thermally decomposing the PFAS captured on the LDH material. They heated saturated material with calcium carbonate, which eliminated more than half of the trapped PFAS without releasing toxic by-products.

The team believes the study’s results could potentially have large-scale applications in industrial cleanups and municipal water treatments.

“We are excited by the potential of this one-of-a-kind LDH-based technology to transform how PFAS-contaminated water sources are treated in the near future,” Wong added in the news release. “It’s the result of an extraordinary international collaboration and the creativity of young researchers.”

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