Houston-based e-commerce software startup and Amazon competitor raises $25M in its series A

Money moves

Houston-based Cart.com, which equips e-commerce businesses with a suite of software services, has raised $45 million in venture capital investment since its founding in September. Photo via cart.com

An end-to-end e-commerce services provider based in Houston has closed its series A round of financing led by a Houston venture capital group.

Cart.com announced the closing of its $25 million led by Houston-based Mercury Fund and Florida-based Arsenal Growth with contribution from Austin-based Moonshots Capital and Ohio-based Scarlet Venture Fund. The new round follows its $20 million Seed round led by Amsterdam-based Bearing Ventures.

The company was founded last September by two former entrepreneurs — Omair Tariq, former executive at Home Depot and COO of Blinds.com, serves as CEO and Jim Jacobsen, co-founder and former CEO of RTIC Outdoors, serves as executive chairman.

"We know the pain points brands face in the e-commerce value chain because we have experienced them firsthand. We built Cart.com to solve those problems and deliver unequaled value for brands from a single platform," Jacobsen says in a news release.

The duo wanted to create a suite of software solutions that allows brands to "grow their e-commerce capabilities with less friction than the fragmented plug-in and vendor intensive approach available today," according to the release.

"The current e-commerce offerings favor the service providers, not the brands," Tariq says in the release. "We are on a mission to flip that dynamic and put the sellers back in charge of their e-commerce journey and their customer relationships. Our team will continue to obsess over our brands' success, so they can obsess over their customers. This is what will create tremendous long term shareholder value and be the true measure of our success."

The e-commerce-as-a-service, or ECaaS, company will use the funds to grow to meet increasing customer demand and hire new team members. Per the release, Cart.com has an "aggressive growth strategy" and has already made five acquisitions to date, including storefront software platform AmeriCommerce, a storage supplies business with fulfillment services across the country, and two digital marketing agencies.

"Competition in the e-commerce market is reaching a precipice, and only those companies with the pedigree, vision, technology and the been-there-done-that perspective will be able to truly shift the surge away from market monopolies and provide power back to the brands themselves to the benefit of the businesses and their customers," says Blair Garrou, co-founder and managing director at Mercury. "Our financial commitment illustrates our confidence in the mission and strategy of Cart.com. The team assembled has incredible opportunity to be a true market leader and pioneer ECaaS in the e-commerce services space."

Ashley DeWalt, managing director of DivInc, joins the Houston Innovators Podcast to discuss diversity and inclusion, sports tech, and all things Houston. Photo courtesy of DivInc

Diversity-focused nonprofit leader announces new VC partner, calls for Houston to be sports tech hub

HOUSTON INNOVATORS PODCAST EPISODE 79

For 15 years, Ashley DeWalt has been working within the sports and entertainment industry — particularly within branding and consulting. Now, as managing director for DivInc, he's taking his business acumen and relationship-focused style to fostering startup growth for diverse founders in Houston.

DivInc, which was founded and is based in Austin, is a nonprofit focused on identifying hurdles for diverse founders as well as providing support for these founders. The organization recently announced its expansion into the Houston market, and DeWalt joined as managing director to focus on building the nonprofit's relationships with startups, corporations, universities, and more.

"I'm laser focused on identifying corporate partners aligned with our mission and vision of what we are striving to do within this ecosystem," DeWalt says on this week's episode of the Houston Innovators Podcast.

Also on his list of groups to partner with is investors — whether that's individual angel investors or venture capital funds. The very first official partner DeWalt himself has brought on is Houston-based Mercury Fund.

"I've always been about building long-term relationships with people that are meaningful relationships," DeWalt says. "With Mercury, they understood that and were willing to commit and step up to the plate."

The new partnership, which was officially announced today, includes bringing on Mercury Fund's team to provide mentorship and support from a programming perspective, but also financial support. Mercury committed to partnering on a $1 million capital campaign that will support the organization.

DivInc's first Houston cohort, which was recently announced, will be able to benefit from this partnership as well as a partnership with Verizon that is providing each company in this current cohort a $10,000 undiluted grant.

While his involvement with DivInc is fairly recent, DeWalt has been working with sports startups from all over the world for a few years through Stadia Ventures, a sports innovation hub. DeWalt shares on the show how he has been a huge advocate for Houston and the sports activity in the area. From his perspective, the city has so many coaches and athletes on both the professional and collegiate levels — and these coaches and athletes are the future sports innovators and investors.

"We have a very high concentration of current and former professional athletes that live in Houston," DeWalt says, "and I truly believe — and the data shows this — these professional athletes are going to invest in sports tech."

Fostering diverse innovators and sports tech are two separate but overlapping goals that DeWalt has and is passionate about — and he's determined to help Houston's innovation ecosystem develop in an inclusive and equitable way.

"At the end of the day, if we can't figure out that rubix cube here in Houston, no one can," he says.

DeWalt shares more about what he's focused on and where DivInc is headed on the episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

Auburn University's SwiftSku took first place in this year's virtually held Rice Business Plan Competition, but it was the second place company that went home with over half a million in cash and investment prizes. Photo via rice.edu

Over $1.4M in prizes awarded at Rice University's student startup competition

RBPC 2021

In its 21st year, the Rice Business Plan Competition hosted 54 student-founded startups from all over the world — its largest batch of companies to date — and doled out over $1.4 million in cash and investment prizes at the week-long virtual competition.

RBPC, which is put on by the Rice Alliance for Technology and Entrepreneurship, took place Tuesday, April 6, to Friday, April 9 this year. Just like 2020, RBPC was virtually held. The competition announced the 54 participating startups last month, and coordinated the annual elevator pitches, a semi-finals round, wildcard round and live final pitches. The contestants also received virtual networking and mentoring.

Earlier this week, Rice Alliance announced the seven student-led startups that then competed in the finals. From this pack, the judges awarded the top prizes. Here's how the finalists placed and what won:

SwiftSku from Auburn University, point of sales technology for convenience stores that allows for real time analytics, won first place and claimed the $350,000 grand prize from Goose Capital. The company also won the $50,000 Business Angel Minority Association Prize, the $500 Best Digital Elevator Pitch Prize from Mercury Fund, and the $500 Third Place Anbarci Family People's Choice prize, bringing the company's grand total in cash and investment prizes to $401,000. The company also won the CFO Consulting Prize, a $25,000 in-kind award.
AgZen from the Massachusetts Institute of Technology, a pesticide alternative spray and formulation technology company, won the second place $100,000 investment prize (awarded by Finger Interests, Anderson Family Fund, Greg Novak, and Tracy Druce). The startup also won a $300,000 Owl Investment Prize, the $100,000 Houston Angel Network Prize, the $500 Best Energy Elevator Pitch Prize from Mercury Fund, and the $1,500 Third Place Anbarci Family People's Choice prize, bringing the company's grand total in cash and investment prizes to $502,000. The company also won the $30,000 in-kind Polsinelli Energy Prize.
FibreCoat GmbH from RWTH Aachen University, a startup with patented spinning technology for the production of inexpensive high-performance composite fibers, won the third place $50,000 investment prize (also awarded by Finger Interests, Anderson Family Fund, Greg Novak, and Tracy Druce). The company also won the $100,000 TiE Houston Angels Prize and the $500 Best Hard Tech Elevator Pitch Prize from Mercury Fund, bringing the company's grand total in cash and investment prizes to $150,500.
Candelytics from Harvard University, a startup building the digital infrastructure for 3-D data, won the fourth place $5,000 prize.
OYA FEMTECH Apparel from UCLA, an athletic wear company that designs feminine health-focused clothing, won the fifth place $5,000 prize. The company also won the $5,000 Eagle Investors Prize, the $25,000 Urban Capital Network Prize, and the $1,000 Second Place Anbarci Family People's Choice prize, bringing the company's grand total in cash and investment prizes to $36,000.
LFAnt Medical from McGill University , an innovative and tech-backed STI testing company, won the sixth place $5,000 prize and the $20,000 Johnson and Johnson Innovation Prize, bringing the company's grand total in cash and investment prizes to $25,000.
SimpL from the University of Pittsburgh, an AI-backed fitness software company, won the seventh place $5,000 prize. The company also won the $25,000 Spirit of Entrepreneurship Prize from the Pearland Economic Development Corp., bringing the company's grand total in cash and investment prizes to $30,000.

Some of the competition's participating startups outside of the seven finalists won monetary and in-kind prizes. Here's a list of those.

Mercury Fund's Elevator Pitch Prizes also included:
- Best Life Science $500 Prize to Blue Comet Medical Solutions from Northwestern University
- Best Consumer $500 Prize to EasyFlo from the University of New Mexico
- Best Overall $1,000 prize to Anthro Energy from Stanford University
The Palo Alto Software Outstanding LivePlan Pitch $3,000 Prize went to LiRA Inc. from the University of North Carolina at Chapel Hill
The OFW Law FDA Regulatory Strategy Prize, a $20,000 in-kind award went to Paldara Inc. from Oklahoma State University.
The Silver Fox Mentoring Prize, which included $20,000 in kind prizes to three winners selected Ai-Ris from Texas A&M University, BruxAway from the University of Texas, and Karkinex from Rice University as recipients.
The first, second, and third place winners also each received the legal service prize from Baker Botts for a total of $20,000 in-kind award.
The Courageous Women Entrepreneurship Prize from nCourage — a $50,000 investment prize — went to Shelly Xu Design from Harvard University.
The SWPDC Pediatric Device Prize — usually a $50,000 investment divided its prize to two winners to receive $25,000 each
- Blue Comet Medical Solutions from Northwestern University
- Neurava from Purdue University
TMC Innovation Healthcare Prize awarded a $100,000 investment prize and admission into its accelerator to ArchGuard from Duke University
The Artemis Fund awarded its $100,000 investment prize to Kit Switch from Stanford University

The awards program concluded with a plan to host the 22nd annual awards in 2022 in person.

If you missed the virtual programming, each event was hosted live on YouTube and the videos are now available on the Rice Alliance's page.

These Houston startups are starting the year off funded. Photo via Getty Images

5 Houston startups start 2021 strong with fresh funding

following the money

Houston startups saw a tumultuous year last year when it came to funding, but some local businesses are seeing an uptick in various stages of venture funding — from a $130 million series B round to a few seed and pre-seed fundings.

In case you missed some of these headlines, InnovationMap has rounded up these seven deals based on previous reporting. Scroll through to see which Houston startups are catching the eyes — and cashing the checks — of investors.

Houston software startup closes $7.5M series A led by two Houston-area VC firms

A Houston startup has closed a $7.5 million round of funding with mostly local investment. Photo courtesy of WizeHire

A Houston B2B software startup has closed a new round of funding led by two Houston venture capital firms.

WizeHire, a tech-enabled hiring solution for small businesses, closed a $7.5 million series A funding round that was led by Houston-based Mercury Fund and Amplo, which is based just north of Houston in Spring. Additional support came from existing backers Ruchit Shah and RigUp co-founder Sandeep Jain. The company was co-founded by Sid Upadhyay, Nick Carneiro, and Jay Niblick.

According to a news release, WizeHire will use the funds to scale their business, which is centered around providing personalized hiring resources to small businesses, as well as to hire more staff and expand its partner program.

"We're a small business helping small businesses with a team of people looking out for you," says Upadhyay, who serves the company as CEO, in the release. "Hiring is complex and personal. Our customers see what we do not just as software; they see us as a trusted advisor." Click here to continue reading.

Houston B2B software company raises $3.2M in seed funding to grow team and product

DocJuris has raised its first round of venture funding to grow its team to keep up with demand for its legal software platform. Image courtesy of DocJuris

A Houston-based software-as-a-service company that is revolutionizing the contract process has closed a round of funding this week.

DocJuris, founded in 2018, raised $3.2 million in seed funding led by New York-based RTP Seed with additional support from Houston-based Seed Round Capital, California-based Watertower Ventures, Maryland-based Crossbeam, and Remote First Capital.

It's the startup's first round of venture funding and Henal Patel, CEO of DocJuris, says he was looking for funds as well as support from investors who had experience with software and could open doors to new clients for the legal software. Click here to continue reading.

Houston space tech company raises $130M series B

Houston-based Axiom Space has raised more funds for its growing commercial space business. Image via axiomspace.com

Just around a year ago, Houston-based Axiom Space Inc. closed a $100 million series A round. Now, the space tech company has announced even more financing as it grows and scales to support a NASA-commissioned project.

Axiom raised $130 million in its series B round led by C5 Capital with support from TQS Advisors, Declaration Partners, Moelis Dynasty Investments, Washington University in St. Louis, The Venture Collective, Aidenlair Capital, Hemisphere Ventures, and Starbridge Venture Capital.

"Axiom Space is a force in the space sector, and it will become a centerpiece of the C5 Capital portfolio and enhance our vision for a secure global future," says C5 operating partner Rob Meyerson, who will join the Axiom board of directors, in a news release. "The Axiom Station will be the infrastructure upon which we will build many new businesses in space, and it will serve as the foundation for future exploration missions to the Moon, Mars, and beyond." Click here to continue reading.

Houston construction staffing startup emerges from stealth with $1.5 pre-seed funding

Houston-based Buildforce is developing a technology to better connect contractors and the trade professionals they employ. Photo via Getty Images

A Houston startup has been quietly working on a tech solution for construction staffing and has now emerged from stealth mode to announce a recent funding round as well as an acquisition.

Launched in July of 2020, Buildforce is a construction staffing app that aims to more efficiently connect contractors to skilled workers in trades ranging from electrical, mechanical, and plumbing to flooring, concrete, painting, and more, according to a news release. The company raised a $1.5 million pre-seed round led by Houston-based Mercury Fund.

Co-founder and CEO Moody Heard, who previously served as senior investment analyst at Mercury, says the tech product — the Buildforce Contractor App — will have a big impact on Texas, which is experiencing growing construction volume across the state. Click here to continue reading.

Houston digital studio closes $2M seed round with local investment

Umbrage, a Houston-based developer of enterprise software, has closed its seed funding. Photo via umbrage.com

A software startup in Houston has leveled up thanks to new funding. Houston-based digital studio Umbrage has reportedly raised $2 million.

Founded in 2019 by Will Womble, Umbrage creates custom software solutions for companies within digitally transforming industries, such as oil and gas, healthcare, and supply chain.

"Umbrage is a new way that enterprises can overcome the inherent challenges of building and scaling digital solutions," Womble, who also serves as CEO, says in a news release. "Umbrage partners with internal technology teams to create scalable products that directly impact business' success. And by training our clients to effectively scale and improve these custom-built solutions, we're setting up our customers for long-term, sustainable success." Click here to continue reading.

Houston-based Buildforce is developing a technology to better connect contractors and the trade professionals they employ. Photo via Getty Images

Houston construction staffing startup emerges from stealth with $1.5 pre-seed funding

building tech

A Houston startup has been quietly working on a tech solution for construction staffing and has now emerged from stealth mode to announce a recent funding round as well as an acquisition.

Moody Heard is the co-founder and CEO of Buildforce. Photo courtesy of Buildforce

"Our key insight is that providing a superior service to construction employers starts with providing a superior experience for tradesmen and women," Heard says in the release. "Talent is the greatest finite resource in construction in Texas. In order to deliver talent to our contractor partners, we've created a job placement experience that is simple, friendly, and transparent. That's something people in the construction trades aren't used to, and has helped us grow incredibly quickly over the past several months."

In addition to emerging from stealth and raising its first funds, Buildforce has announced the acquisition of a Houston-based construction staffing business, TRIO Talent.This deal allows Buildforce to tap into TRIO's high school pre-apprenticeship programs that's among the largest in the state.

Buildforce is currently working out of a 2,500-square-foot office in Greenway Plaza, and has plans to expand later this year in both Houston and Austin, per the release. The startup's team includes members who previously worked at digital labor marketplace companies like Uber and Favor.

"Buildforce really has two serious advantages," says Vu Brown, co-founder and COO, in the release. "The first is exclusive access to newly trained skilled trades talent across the state of Texas. The second is our team. We are a unique combination of digital labor marketplace and construction experts, with decades of combined learnings from the top industry players in those two categories."

Buildforce is an app that can connect contractors with construction experts. Photo courtesy of Buildforce

The city's top power players within Houston's energy innovation ecosystem joined virtual SXSW to discuss Houston's life science innovation scene and developing an inclusive ecosystem. Photos courtesy

Overheard: Houston's innovation leaders weigh in on the city's developing ecosystem at SXSW

EAVESDROPPING ONLINE

Another day of SXSW 2021 has concluded, and just like the first day, Houston innovators logged on to discuss technology and innovation that's taking off in town.

The second of the two days of programming focused on the development of the Houston innovation ecosystem — including how the city is factoring in diversity and inclusion into development — with interviews hosted by me, Natalie Harms, editor of InnovationMap. Missed out on the fun? Catch up with a few overheard moments from Houston House or stream the full interviews below.