Houston-based startup secures fresh funding led by local investor to expand HVAC, plumbing platform

money moves

Houston-based Mercury backed SmartAC.com in a follow-on round. Photo via of SmartAC.com

Houston-based SmartAC.com, which provides a customer loyalty management platform for contractors, has raised a follow-on round from Mercury Fund and other investors. The dollar amount of the round wasn’t disclosed.

An October filing with the U.S. Securities and Exchange Commission (SEC) indicates SmartAC.com planned to raise $8.2 million in venture capital. Of that sum, about $4 million had already been raised, the company reported, and nearly $4.2 million remained to be raised.

SmartAC.com's platform enables contractors in the HVAC and plumbing industries monitor, manage, and optimize their maintenance memberships through advanced sensors, AI-driven diagnostics, and proactive alerts.

“Growing a business in the trades is all about customer loyalty, and loyalty is driven by optimizing the customer’s experience,” Josh Teekell, founder and CEO of SmartAC.com, says in a news release. “SmartAC.com was built to perfect the experience of home comfort through data-driven insights that bring long-term value to homeowners and contractors alike.”

SmartAC.com says the new funding will enable expansion of its platform.

“Amid rising consumer demand for ‘smart home’ innovations, SmartAC.com is addressing a critical need for more sophistication in HVAC and plumbing through a technology-driven strategy,” says Heath Butler, a partner at Mercury Fund.

In 2020, SmartAC.com emerged from stealth mode and announced a $10 million series A round. The company raised a $22 million series B round in 2023.

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Paul Frison, the founder of the Houston Technology Center, has died. Photo via dignitymemorial.com

Houston Technology Center founder dies, leaves legacy of innovation

saying goodbye

The Houston innovation ecosystem is mourning the loss of one of its early leaders, Paul Frison, who died on September 5. He was 87.

A long-time Houston businessman, Frison founded the Houston Technology Center in 1999 and served as its CEO and president. The organization evolved into Houston Exponential several years ago. Frison remained active within Houston innovation until 2020.

“Paul Frison was a visionary and energetic leader who always presented a positive outlook on what the Houston technology entrepreneurship community could become," Brad Burke, associate vice president for industry and new ventures at Rice University's Office of Innovation, remembers. "He was one of the pioneers in the community who established the Houston Technology Center as one of the early leaders of the Houston ecosystem. I admired how he helped launch the ecosystem and created the platform for many others to build upon.”

Prior to HTC, he served in various executive roles at American Hospital Supply, LifeMark, ComputerCraft, and LifeCell, spending the last 50 of his years in Houston. Born in Glendale, California, he served in the Unites States Coast Guard.

Blair Garrou, co-founder and managing director of Mercury Fund, says Frison was his first boss and mentor in the tech and entrepreneurship sector.

“When people look back to how the Houston tech community was founded, it starts with Paul Frison," Garrou says. "Paul had run multiple companies and I was lucky to have him as CEO when I worked for him at the Houston Technology Center. He quickly became a mentor, and over time, a good friend and confidant. I have Paul to thank for launching my career in tech and venture capital.

"My favorite quote of Paul’s was, 'Do not confuse effort with results,'” Garrou continues. "Despite his results-driven work ethic – which was legendary — Paul was also deeply-rooted in family and faith, and has been a role model for me over my entire professional life.”

He is preceded in death by his wife, Barbara, and his grandson, Christian David Elders. He is survived by his daughters Maryanne Elders and Jill Cortez and their families, including grandchildren Matthew Elders, Laney Elders, Max Cortez, Jake Cortez, and Sofie Cortez.

A celebration of life will be held for Frison on September 16 at 1 pm at Second Baptist Church, with a reception following in the Deacon’s Parlor. More details are available online. In lieu of flowers, Frison's wishes were for for donations to Second Baptist Church to be made in his honor.

The grant from Rice is part of "several financial commitments" the university is making to support inclusivity at the Ion District. Photo courtesy of The Ion

Houston university awards grant to Texas accelerator to support sports tech

game on

Rice University awarded DivInc. an $800,000 grant this month to support its work in sports technology.

The Texas-based company, which operates numerous accelerators, focuses on BIPOC and female founders working toward social and economic equity through entrepreneurship. The grant from Rice is part of "several financial commitments" the university is making to support inclusivity at the Ion District.

DivInc runs its Sports Tech Accelerator out of The Ion, which recently named its latest cohort for the 2024 Sports Tech Accelerator.

“We’ve been in Houston since 2021, so we’re extremely honored and grateful to partner with Rice University,” Preston James, CEO and founder of DivInc, said in a statement. “Leveraging the top university sports management program in the U.S., Rice’s highly ranked sports medicine and sport analytics programs, we’re providing exceptional value to our portfolio of companies ... Sports tech is a vast and rapidly growing industry that represents a tremendous opportunity for diverse founders.”

Among the 10 companies selected for DivInc's current 12-week sports accelerator are a cash-back powered marketplace designed for the golf industry, a scouting automation software, an artificial intelligence company that collects real-time biometrics on athletes, and others.

Selected founders can receive up to $100,000 and access to curriculum, as well as mentorship from executives from the Houston Rockets, Houston Astros, San Antonio Spurs, Rice Alliance for Technology and Entrepreneurship, Mercury Fund, The Collectiv, HTX Sports Tech and more.

“We have strategically created one of the nation’s premier accelerator programs in Houston, Texas, dedicated to supporting BIPOC and women founders driving innovation in the sports industry by leveraging best practices and insights from stakeholders within the sports tech ecosystem,” Ashley DeWalt, DivInc’s managing director of startups and programs, said in a statement.

DivInc also launched its first DWeb for Social Impact Accelerator from the Ion last fall. The 12-week intensive hybrid program sponsored by Filecoin Foundation for the Decentralized Web, supported nine companies, all of whom integrate Web3 technologies into their impact entrepreneurship, and each of the companies selected were awarded a non-dilutive $10,000 grant to use during the course of the program.

PHIOGEN, based at Texas Medical Center Innovation, is headed to Austin next month. Photo courtesy of TMC

Houston biotech startup selected to pitch at SXSW

austin bound

Houston biotech startup PHIOGEN is among 45 finalists that will present at this year’s SXSW Pitch showcase in Austin.

PHIOGEN is one of five food, nutrition, and health startups that will participate in the pitch competition, set for March 9 and 10. A panel of judges will listen to the pitches and then pick the winners. Since 2009, SXSW Pitch finalists have raised more than $23.2 billion in funding.

PHIOGEN has developed the world’s first biogenetics technology platform to harness the power of bacteriophages in the fight against serious drug-resistant infections. Bacteriophages — viruses that are found in bacterial cells — “are ubiquitous in the environment and are recognized as the most abundant biological agent on earth,” according to an article published in 2022 by StatPearls.

Founded in 2023, PHIOGEN is a spinoff of the Baylor College of Medicine’s TAILOR Labs. The startup, based at the Texas Medical Center’s Innovation Hub, has attracted more than $5 million in funding.

“Nothing about our treatments is fabricated; it boils down to creating natural environments that mimic real-life infections, driving biological changes to create ‘super phages’ against the superbugs,” Amanda Burkardt, CEO of PHIOGEN, said in 2023. “As a result, we receive high-performing phage fighters that are trained and ready to deliver safe and effective treatments for clinical applications.”

Professional services firm KPMG is the main sponsor of SXSW Pitch.

Six of this year’s SXSW Pitch judges are from Houston:

  • Heath Butler of Mercury Fund
  • Jesse Martinez of LSA Global
  • Trevor Purvis of the Houston Astros
  • Anu Puvvada of KPMG
  • Irene Tang of StartOut
  • Nate Thompson of HTX Sports Tech

“2024 is an exciting year for startups, and we are looking forward to showcasing these inspiring companies that are making waves in their respective industries and the world as a whole, as well as help connect them with the resources needed to continue advancing,” says Chris Valentine, producer of SXSW Pitch.

Fresh off a win at the Houston Innovation Awards, RepeatMD has raised funding. Photo by Emily Jaschke/InnovationMap

Houston software company raises $50M series A, plans to scale

fresh funding

Just nine months after its seed round, a Houston startup with a software platform for the aesthetic and wellness industry has secured $40 million in venture capital and $10 million in debt facility.

RepeatMD, a SaaS platform, announced today that it's secured $50 million, which includes a $10 million debt facility from Silicon Valley Bank. The round was co-led by Centana Growth Partners and Full In Partners with participation from PROOF and Mercury Fund, which also contributed to the seed round earlier this year.

The mobile ecommerce platform, launched in October 2021 by Phil Sitter, targets practices within the med spa and aesthetics industry. In the United States, the med spa market is slated to hit $19 billion in 2023, according to the company's press release, while the global aesthetics market is forecasted to reach to nearly $332 billion by 2030.

“Even though the aesthetics and wellness industry has continued to innovate a growing range of life-changing treatments, practices continue to face challenges selling treatments and services that are new and unfamiliar to patients,” Sitter, CEO of RepeatMD, says in the release. “Our goal at RepeatMD is to give these practice owners the technology to elevate their patients’ experience. Our platform serves as a med-commerce engine equipped with the same firepower as large retailers to convert sales inside and outside of practice operating hours.”

The fast-growing company, which has over 100 employees and is looking to hire 20 more according to InnovationMap data, has a client base of 2,500 med spas, dermatologists, OBGYNs, and more across all 50 states. The startup won in the Digital Solutions category at the 2023 Houston Innovation Awards, which took place earlier this month.

“Just 9 months ago Mercury provided RepeatMD’s Seed financing round. We have quickly doubled down in its Series A because of the company's massive traction, customer adoption and Phil’s leadership,” Aziz Gilani, managing director of Mercury Fund, says in the release.

In the past year, RepeatMD reports a 2,519 percent increase in Gross Merchandise Value revenue and a 130 percent increase in SaaS revenue.

“As investors in growth-stage vertical SaaS companies, we’ve closely followed the rise of platforms that not only help practitioners run their businesses, but also drive a higher ROI go-to-market motion,” Jacob Cole, principal at Full In Partners, adds. “RepeatMD stood out both for helping clinics access higher-margin, recurring revenue, and for their customer-centric mindset.”

RepeatMD will use the funding to grow its "network of strategic partners, provide further product enhancements, and integrate AI to further amplify the patient shopping experience while scaling its Inbound Revenue Platform," per the release.

Top news of the week included a Houston fund's recent raise, Houston Innovation Awards judges named, events not to miss, and more. Photo via Getty Images

Mercury's biggest round to date, awards judges named, and more trending Houston innovation news

top stories

Editor's note:Another week has come and gone, and it's time to round up the top headlines from the past few days. Trending Houston tech and startup news on InnovationMap included Mercury Fund's latest and largest raise, events not to miss this month, and more.

Houston-based VC secures oversubscribed $160M fund for early-stage startups

Originally expected to raise $150 million, Mercury's latest fund is the largest raised to date. Photo via mercuryfund.com

A Houston venture capital firm has announce big news of its latest fund.

Mercury, founded in 2005 to invest in startups not based in major tech hubs on either coast, closed its latest fund, Mercury Fund V, at an oversubscribed amount of $160 million. Originally expected to raise $150 million, Fund V is the largest fund Mercury has raised to date.

“We are pleased by the substantial support we received for Fund V from both new and existing investors and thank them for placing their confidence in Mercury,” Blair Garrou, co-founder and managing director of Mercury Fund, says in a news release. “Their support is testament to the strength of our team, proven investment strategy, and the compelling opportunities for innovation that exist in cities across America.” Read more.

10+ can't-miss Houston business and innovation events for October

From enlightening talks to networking opportunities, here's where you need to be in October. Photo via Getty Images

From networking meetups to pitch competitions, October is lined with opportunities for Houston innovators.

Here's a roundup of events you won't want to miss out on so mark your calendars and register accordingly. Read more.

Houston Innovation Awards names prestigious panel of judges for 2023 awards

Here's who's making the call for this year's Houston Innovation Awards. Photos courtesy

Ten Houstonians are in the hot seat for deciding the best companies and individuals in Houston's innovation ecosystem.

InnovationMap has announced its 2023 Houston Innovation Awards judging panel, which includes startup founders, nonprofit leaders, investors, corporate innovators, and more.

The 10 selected judges will evaluate applications from the nearly 400 nominations that were submitted this year. Read more.

Real estate giant taps downtown Houston tower for new smart building tech

Tenants of this downtown office building just got an upgrade. Rendering via 717texas.com

Houston-based real estate giant Hines is rolling out a new smart building platform with the goal of better serving workers and workplaces at its buildings across the country, including one building in Houston that's aiming to be an office building of the future.

From the employee perspective, the new Hines app will allow employees and employers to book spaces within buildings, order food from on-site cafes and restaurants, book on-site fitness classes and access the building via their smartphone or smartwatch. For employers and tenants, the app will help them gain insights into building performance, occupancy data, ESG targets and employee satisfaction, according to a statement from Hines.

“We’re committed to a people-centric experience and this investment takes that commitment to the next level,” Ilene Goldfine, chief digital strategy officer at Hines, says in a statement. “The traditional systems were managed building by building and made it difficult or impossible to track performance across a portfolio. This new digital ecosystem, which unites back-end technology with front-end experiences, will deliver long-term cost savings to our investors and clients." Read more.

Houston hospital lands $10 million grant to launch new neurological lab

The gift will create the John M. O’Quinn Foundation Neurodegenerative Disorders Laboratory at Houston Methodist. Photo via houstonmethodist.org

Houston Methodist announced that it has received a $10 million gift from the The John M. O’Quinn Foundation to support research into neurological disorders, including Alzheimer’s disease, Parkinson’s disease and others.

The gift will create the John M. O’Quinn Foundation Neurodegenerative Disorders Laboratory at Houston Methodist, which will be led by Dr. Jun Li, who chairs the department of neurology at the Houston Methodist Neurological Institute. The NIH-backed researcher and his team will provide care, clinical trial opportunities and subspecialty programs through the lab, according to a release from Houston Methodist.

The funds will also be used to recruit neurodegenerative disorders specialists to lab by creating endowed research chairs, research fellowships and funding for pilot studies. Read more.

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Houston VC funding surged in Q1 2025 to highest level in years, report says

by the numbers

First-quarter funding for Houston-area startups just hit its highest level since 2022, according to the latest PitchBook-NVCA Venture Monitor. But fundraising in subsequent quarters might not be as robust thanks to ongoing economic turmoil, the report warns.

In the first quarter of 2025, Houston-area startups raised $544.2 million in venture capital from investors, PitchBook-NVCA data shows. That compares with $263.5 million in Q1 2024 and $344.5 million in Q1 2023. For the first quarter of 2022, local startups nabbed $745.5 million in venture capital.

The Houston-area total for first-quarter VC funding this year fell well short of the sum for the Austin area (more than $3.3 billion) and Dallas-Fort Worth ($696.8 million), according to PitchBook-NVCA data.

While first-quarter 2025 funding for Houston-area startups got a boost, the number of VC deals declined versus the first quarters of 2024, 2023 and 2022. The PitchBook-NVCA Monitor reported 37 local VC deals in this year’s first quarter, compared with 45 during the same period in 2024, 53 in 2023, and 57 in 2022.

The PitchBook-NVCA report indicates fundraising figures for the Houston area, the Austin area, Dallas-Fort Worth and other markets might shrink in upcoming quarters.

“Should the latest iteration of tariffs stand, we expect significant pressure on fundraising and dealmaking in the near term as investors sit on the sidelines and wait for signs of market stabilization,” the report says.

Due to new trade tariffs and policy shifts, the chances of an upcoming rebound in the VC market have likely faded, says Nizar Tarhuni, executive vice president of research and market intelligence at PitchBook.

“These impacts amplify economic uncertainty and could further disrupt the private markets by complicating investment decisions, supply chains, exit windows, and portfolio strategies,” Tarhuni says. “While this may eventually lead to new domestic investment and create opportunities, the overall environment is facing volatility, hesitation, and structural change.”

Expert: Texas is building a cybersecurity wall — but it needs more bricklayers

Guest Column

Texas has always been a state that thinks in terms of scale. Big energy, big ambitions and now, big action in cybersecurity.

With the creation of the Texas Cyber Command under the Department of Information Resources, the state is recognizing what many of us in the industry have long understood: cybersecurity is not just an IT issue, it's a matter of public safety and economic resilience. Protecting municipal systems, schools, and critical energy infrastructure from cyber threats is no longer optional. It is essential.

For these efforts to succeed, Texas must invest as much in people as it does in technology. Without a capable, well-trained workforce to carry out the mission, even the strongest cyber strategies will struggle to hold the line.

The scope of the threat

Cyberattacks are not theoretical. In the last year alone, several cities in Texas experienced major ransomware attacks. One incident in Fort Worth took down core city systems, affecting everything from email access to permitting operations. The ripple effects were significant.

The energy sector is also under constant pressure. As a cornerstone of both the Texas and national economy, the it is a high-value target. Hackers are probing systems that manage oil, gas, and renewable energy infrastructure, looking for weaknesses that could be exploited to steal data or disrupt operations.

Texas has responded by centralizing its cyber incident response capabilities. The Texas Cyber Command is a smart step forward. It brings coordination and focus to an increasingly complex landscape. But its effectiveness will depend entirely on the professionals tasked with doing the work. And that’s where the challenge lies.

The workforce gap

Across the U.S., there are an estimated 400,000 unfilled cybersecurity positions. In Texas, more than 40,000 roles remain vacant, according to CyberSeek. These are not just numbers in a report. They represent a growing vulnerability with gaps in frontline defenses against real and persistent threats.

We cannot afford to rely solely on traditional pathways to fill this gap. Four-year degree programs are important, but they are not designed to scale fast enough or flexibly enough to meet today’s needs. Instead, we need to broaden our view of what a cybersecurity talent pipeline looks like and who it includes.

There needs to be an expanded focus on practical, skills-based training that takes high-aptitude individuals, including those from non-traditional backgrounds, and prepares them for success in cybersecurity careers through rigorous hands-on training that reflects the demands of real-world cyber roles. With the right structure and support, people from all walks of life are already proving they can become capable defenders of our digital infrastructure.

The same entrepreneurial spirit that drives innovation in other sectors can be applied to cybersecurity workforce development. We don’t have to wait years to grow the next generation of defenders. We can do it now, with the right focus and investment.

Texas has taken a critical first step by creating the Cyber Command, but if we want to build lasting resilience, we need to address the workforce bottleneck head-on. Cybersecurity needs more than tech…it needs talent.

---

Dean Gefen is theCEO, NukuDo, a San Antonio-based cybersecurity workforce development and staffing company.

Rice Business Plan Competition doles out $2M to 2025 student teams

big winners

Celebrating its 25th year, the Rice Alliance for Technology and Entrepreneurship hosted the celebrated Rice Business Plan Competition this month, doling out more than $2 million in investment and cash prizes to the top-performing teams.

“For 25 years, the Rice Business Plan Competition has helped shape how Rice Business shows up in the world by creating a platform where student-entrepreneurs can tackle some of the most complex challenges of our time in energy, in health care, in technology and beyond,” Peter Rodriguez, dean of Rice Business, the presenting sponsor of the event, said in a news release. “If we’re serious about changing the world — and I believe we are — then it’s our responsibility to open doors for students everywhere to imagine bold solutions and build what comes next.”

Over the course of the three-day event, the 42 startups competing this year from colleges or universities around the world presented their plans before more than 300 angel, venture capital, and corporate investors. The teams were selected from the event’s largest applicant pool to date and represented 34 universities across four countries, according to Rice. Winners were announced at the company showcase and awards ceremony April 12 in downtown Houston.

Seven finalists were selected, though each team left the competition with some form of funding, according to Rice. The University of Michigan's Intero Biosystems was the star of the show, bringing home both the top-place finish and the largest total investment. Rice's own Pattern Materials also had a strong showing, placing fourth in the pitch competition and also earning the fourth-highest investment total.

Here are the teams that won big in 2025. See a full list of winners and prizes here.

Intero Biosystems, University of Michigan - $902,000

The team finished in first place for its GastroScreen, the first stem cell-driven human “mini gut” that is ideal for organ function testing before testing on humans, and also claimed the largest total investments among the competition.

  • $150,000 Goose Capital Investment Grand Prize
  • $250,000 Goose Capital Investment Prize
  • $200,000 The OWL Investment Prize
  • $100,000 Houston Angel Network Investment Prize
  • $100,000 nCourage Investment Network’s Courageous Women Entrepreneur Investment Prize
  • $100,000 Investment Prize from Nancy Chang
  • $1,000 Mercury Elevator Pitch Competition - Overall Winner
  • $1,000 Anbarci Family Company Showcase Prize
  • TMC Innovation Healthcare Accelerator Bootcamp Invitation Prize

MabLab, Harvard University – $301,500

The team placed second for its rapid test capable of detecting multiple adulterants in laced drugs and spiked drinks.

  • $100,000 Investment Prize, sponsored by David Anderson, Anderson Family Fund, Jon Finger and Finger Interests
  • $100,000 The Indus Entrepreneurs (TiE) Texas Angels Investment Prize
  • $25,000 nCourage Investment Network’s Courageous Women Entrepreneur Investment Prize
  • $50,000 Valhalla Investment Network Investment Prize
  • $25,000 The Eagles Investor Investment Prize
  • $500 Mercury Elevator Pitch Competition - Life Science*
  • $1,000 Anbarci Family Company Showcase Prize

re.solution, RWTH Aachen University — $76,500

The team placed third for its water-based technology that recycles polyesters without generating salt waste, making textile recycling viable.

  • $50,000 Investment Prize, sponsored by David Anderson, Anderson Family Fund, Jon Finger and Finger Interests
  • $25,000 Pearland EDC Spirit of Entrepreneurship Cash Prize
  • $500 Mercury Elevator Pitch Competition - Energy/Cleantech
  • $1,000 Anbarci Family Company Showcase Prize

Pattern Materials, Rice University – $134,500

The Houston-based team placed fourth for its laser-induced graphene technology that can be rapidly performed, enabling low-cost, scalable production of the material.

  • $5,000 prize, sponsored by Norton Rose Fulbright
  • $50,000 Valhalla Investment Network Investment Prize
  • $25,000 Pearland EDC Spirit of Entrepreneurship Cash Prize
  • $25,000 New Climate Ventures Sustainable Investment Prize
  • $25,000 Amentum and WRX Companies Rising Stars Space Technology and Commercial Aerospace Cash Prize
  • $500 Mercury Elevator Pitch Competition - Hard Tech
  • $1,000 Anbarci Family Company Showcase Prize
  • $3,000 Venture Builder Innovation Prizes

Xatoms, Western University and University of Toronto — $30,000

The team placed fifth for its AI- and quantum-driven platform for discovering solar-activated semiconductor materials.

  • $5,000 prize, sponsored by EY
  • $25,000 nCourage Investment Network’s Courageous Women Entrepreneur Investment Prize

Mito Robotics, Carnegie Mellon University— $5,000

The team placed sixth for its automated manual cell culture with AI-powered robotic scientists for life science research

  • $5,000 prize, sponsored by Chevron Technology Ventures

FarmSmart.ai, LSU – $106,000

The team placed seventh for its AI—driven assistant that synthesizes vast agricultural research into actionable, tailored intelligence, but earned the fifth-most investments among the group.

  • $5,000 prize, sponsored by Shell Ventures
  • $100,000 The OWL Investment Prize
  • $1,000 Anbarci Family Company Showcase Prize
  • Edward H. Molter Memorial Prizes for Wildcard Round - 1st place - Advance to Finals


Other significant awards

GreenLIB Materials, University of Ottawa – $152,000

  • $150,000 Goose Capital Investment Prize
  • $2,000 Venture Builder Innovation Prizes

Microvitality, Tufts University – $26,500

  • $25,000 Southwest National Pediatric Device Consortium Pediatric Device Cash Prize
  • $1,500 Edward H. Molter Memorial Prizes for Wildcard Round - 3rd place overall in WC

Nanoborne, University of Texas at Austin - $25,000

  • $25,000 NOV Golden Ticket to Supernova Accelerator and Cash Prize

Last year, the Rice Business Plan Competition facilitated over $1.5 million in investment and cash prizes. MesaQuantum from Harvard University landed the highest total investment last year, although it was not named a finalist. Protein Pints from Michigan State University won the pitch competition.

According to Rice, 910 startups have raised more than $6.9 billion in capital through the competition over the last 25 years.

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