Houston VC funding surged in 2024, fueled by major Q4 activity

by the numbers

Roughly half of the 2024 fundraising total for Houston-area startups came in the fourth quarter. Photo via Getty Images

The venture capital haul for Houston-area startups jumped 23 percent from 2023 to 2024, according to the latest PitchBook-NVCA Venture Monitor.

The fundraising total for startups in the region climbed from $1.49 billion in 2023 to $1.83 billion in 2024, PitchBook-NVCA Venture Monitor data shows.

Roughly half of the 2024 sum, $914.3 million, came in the fourth quarter. By comparison, Houston-area startups collected $291.3 million in VC during the fourth quarter of 2023.

Among the Houston-area startups contributing to the impressive VC total in the fourth quarter of 2024 was geothermal energy startup Fervo Energy. PitchBook attributes $634 million in fourth-quarter VC to Fervo, with fulfillment services company Cart.com at $50 million, and chemical manufacturing platform Mstack and superconducting wire manufacturer MetOx International at $40 million each.

Across the country, VC deals total $209 billion in 2024, compared with $162.2 billion in 2023. Nearly half (46 percent) of all VC funding in North America last year went to AI startups, PitchBook says. PitchBook’s lead VC analyst for the U.S., Kyle Stanford, says that AI “continues to be the story of the market.”

PitchBook forecasts a “moderately positive” 2025 for venture capital in the U.S.

“That does not mean that challenges are gone. Flat and down rounds will likely continue at higher paces than the market is accustomed to. More companies will likely shut down or fall out of the venture funding cycle,” says PitchBook. “However, both of those expectations are holdovers from 2021.”

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A Houston company has raised funding. Photo via Getty Images

Houston superconductor tech manufacturer raises $25M

fresh funding

A Houston company has closed its series B extension at $25 million.

MetOx International, which develops and manufactures high-temperature superconducting (HTS) wire, announced it closed a $25 million series B extension. Centaurus Capital, an energy-focused family office, and New System Ventures, a climate and energy transition-focused venture firm, led the round with participation from other investors.

"MetOx has developed a robust and highly scalable operation, and we are thrilled to partner with the Company as it enters this pivotal growth stage," says John Arnold, founder of Centaurus, in a news release. "The market for HTS is expanding at an unprecedented pace, with demand for HTS far outweighing supply. MetOx is poised to be the leading U.S. HTS producer, closing the supply gap and bringing dramatic capacity to high power innovations and applications. Their progress and potential are unmatched in the field, and we are proud to support their growth."

The fresh funding will go toward advancing the company's Xeus HTS wire technology for key energy transition applications by expanding MetOx's U.S.-based manufacturing capabilities to meet demand.

"This funding marks a pivotal step in our mission to revolutionize the energy and technology sectors with our advanced power delivery technology and accelerate delivery for our customers and partners. HTS is critical to enhancing the efficiency of our electric grid and enabling technological developments that, in many cases, would not be viable or even possible without superconductor technology," adds Bud Vos, CEO of MetOx. "Support from investors such as Centaurus and NSV not only provides the financial resources and strategic support required for accelerated scaleup, but also validates the broad reach of our technology across energy, data center, medical, and defense industries."

HTS wire technology is critical for the energy transition, especially amid rising data center growth, and for next generation wind turbines and interconnections.

MetOx's technology originated out of the University of Houston and was founded in 1998 by Alex Ignatiev, UH professor emeritus of physics and a fellow of the National Academy of Inventors. Last year, the company secured $3 million in funding from the U.S. Department of Energy to support the advancement of its proprietary manufacturing technology for its HTS wire.

"MetOx's HTS technology aligns with our systems-level research and offers a unique opportunity to dramatically accelerate the energy transition," says Ian Samuels, founder and managing partner at NSV. "MetOx's Xeus wire stands to be a force multiplier in clean energy generation and high-power transmission and distribution, enabling load growth and the deployment of power-dense data centers. NSV is excited to support MetOx as it scales domestic manufacturing capacity."

The fresh funding will go toward advancing the company's Xeus HTS wire technology. Photo via metoxtech.com

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Tesla poised to bring ‘megafactory’ to Houston area with 1,500 jobs

Tesla Talk

Tesla is expected to bring a “megafactory” and 1,500 manufacturing jobs to the Houston area.

According to various news reports this week, Tesla intends to spend $200 million on a facility in Brookshire, Texas. The Waller County Commissioners Court approved tax abatements on March 5 for the new plant.

“We are super excited about this opportunity—1,500 advanced manufacturing jobs in the county and in the city," Waller County Precinct 4 Commissioner Justin Beckendorff said during Wednesday’s Commissioners Court meeting.

Tesla will lease two buildings in Brookshire's Empire West Business Park. According to documents from Waller County, Tesla will add $44 million in facility improvements. In addition, it will install $150 million worth of manufacturing equipment.

As part of the deal, Tesla will invest in property improvements that involve a 600,000-square-foot, $31 million manufacturing facility that will house $2 million worth of equipment and include improvements to the venue.

The facility will produce Tesla megapacks, which are powerful batteries to provide energy storage and support, according to the company. A megapack can store enough energy to power about 3,600 homes for one hour.

Tesla can receive a 60 percent tax abatement for 10 years. According to the tax abatement agreement, Tesla has to employ at least 1,500 people by 2028 in order to be eligible for the tax break.

In addition to the employment clause, Tesla also will be required to have a minimum of $75 million in taxable inventory by January 1, 2026, which will increase to $300 million after three years.

9 innovation & networking events for Houstonians to attend at SXSW 2025

A Houstonian's Guide to SXSW

South by Southwest, Austin's signature hybrid music, film and interactive festival, returns to the Texas capital this month, running March 7 through 15.

In the business and innovation sector, the festival fuses together SXSW Edu for educators at the beginning of the week and SXSW Interactive, which is one of the largest gatherings in the world of innovators, technologists, artists, startups, investors and policy-makers. SXSW is a powerful international magnet for creators and the people who serve them.

I started coming to Austin for SXSW in 1999, a few years after the Interactive portion (nicknamed "Spring Break for Nerds") launched and when the entire conference of 6,000 attendees fit into the Austin Convention Center. Back then, you could rub shoulders with famous bloggers who challenged established tech journalists in the hallways, multimedia artists handing out bootleg CD-ROMS, and hard-core geeks setting web standards and laws related to technology that we enjoy today.

SXSW, like Austin itself, has grown up quite a bit in the last two decades and has fended off the common Austin refrain of "It was better X years ago," as everything has become more commercial, less "authentic" and more expensive. SXSW officially sells tickets or badges for $2295.00 at the Platinum level (with cheaper options as well) providing access to stand in lines with hundreds of your friends for the most popular keynotes and panels.

One critical tradition of SXSW and part of the relentless motivation to "Keep Austin Weird" is the dozens of unofficial side events that pop up during the event all across the city. These unofficial events and activations typically provide networking opportunities fueled by the draw of internet-famous speakers, free food, and free alcohol. As SXSW has grown exponentially, it still seems to retain its charm and quirkiness as not quite a music festival, like Bonnaroo or Lollapalooza, nor a film festival like Sundance or Tribeca, and certainly not a traditional tech conference like CES. I like to think of it as a Carnival with many things to do and see but without a specific agenda or outcome. Since COVID and the financial market retraction, these parties and happy hours have become a lot more restrained, but they still exist if you know where to look.

This article is designed to guide you through the highlights, both official and unofficial, of SXSW with a focus on professional business development with a strong bent toward networking with tech startups. Here's what not to miss.

Friday, March 7

Equitech Texas Welcome Breakfast
9–11 a.m.
Inn Cahoots, 1221 E 6th St.
A breakfast gathering of people involved with Impact Investing and Equity Tech, led by Laurie Felker Jones

Startup Superconnector featuring Practice Pitch
11 a.m.–4 p.m.
Funded House, 315 Lavaca St.
This is a "Pop Up Pitch" event designed to help startups with their investor pitches by putting them in the same room with investors and professional service providers.

Startup Crawl at SXSW 2025
5 p.m. for Backstage VIP
6–9 p.m.
Capital Factory, 701 Brazos St., Suite 1600

Startup Crawl is arguably the most important unofficial event during SXSW where hundreds of startups showcase their offerings in a huge trade show, party format.

Saturday, March 8

The Red ThreadX
607 W. Third Street, 29th Floor
Curated content, strategic connections and actionable insights for military and defense-oriented businesses

SXSW 2025: Dolphin Tank
8–10:30 a.m.
FQ Lounge: Waller Creek Boathouse, 74 Trinity St.
In partnership with Amazon and The Female Quotient, this event is dedicated to championing women entrepreneurs.

Sunday, March 9

2025 TXST SXSW Lab: The Bobcat Den
1:30–8:00 p.m.
The Bobcat Den @ SXSW, Q-Branch 200 E. Sixth St., Suite 310
PROMO CODE: MICHAELBESTVIP
The TXST SXSW Lab: The Bobcat Den is a dynamic, all-day event that showcases Texas State University’s cutting-edge research, industry collaborations, and student innovation.

Monday, March 10

Founded in Texas - For Women Founders
9 a.m.–12:30 p.m.
Brown Advisory, 200 W. Sixth St., Suite 1700
Project W, The Artemis Fund, HearstLab and Brown Advisory have joined forces to bring you Founded in Texas, an investor feedback session designed to support Texas-based women who are founders of B2B and B2B2C technology companies.

Inaugural Texas House
11:00 a.m. on Monday, March 10, until 11:59 p.m. on Tuesday March 11
315 Lavaca St.
More than ever, Texans are leading at the frontiers of technology, entrepreneurship, and culture. See the full agenda

Tuesday, March 11

Super Connectors Meet Up
4–5 p.m.
Hilton Austin Downtown, 500 E. Fourth St.,Room 412
*Badge-only event
"Superconnectors," tor those who seem hyper-connected to large networks of people, are naturally drawn to SXSW. They thrive in a creative and innovative environment, affording them countless opportunities to meet interesting people. Meet some here.

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This information and more can be found at Marc Nathan's VIP Insider’s Guide to SXSW.


Houston space tech co.'s lunar lander touches down on moon — condition unknown

Lunar Landing

A privately owned lunar lander touched down on the moon Thursday, but as the minutes dragged on, flight controllers could not confirm its condition or whether it was even upright near the south pole.

The last time Intuitive Machines landed a spacecraft on the moon, a year ago, it ended up sideways.

The company's newest Athena lander dropped out of lunar orbit as planned, carrying an ice drill, a drone and two rovers for NASA and others. The hourlong descent appeared to go well, but it took a while for Mission Control to confirm touchdown.

“We're on the surface,” reported mission director and co-founder Tim Crain. A few minutes later, he repeated, "It looks like we're down ... We are working to evaluate exactly what our orientation is on the surface.”

Launched last week, Athena was communicating with controllers more than 230,000 miles away and generating solar power, officials said. But nearly a half-hour after touchdown, Crain and his team still were unable to confirm if everything was all right with the 15-foot lander. NASA and Intuitive Machines abruptly ended their live webcast, promising more updates at a news conference later in the afternoon.

“OK team, keep working the problem," Crain urged.

Intuitive Machines last year put the U.S. back on the moon despite its lander tipping on its side.

Another U.S. company Firefly Aerospace on Sunday became the first to achieve complete success with its commercial lunar lander. A vacuum already has collected lunar dirt for analysis and a dust shield has shaken off the abrasive particles that cling to everything.

Intuitive Machines was aiming this time for a mountain plateau just 100 miles from the south pole, much closer than before.

This week's back-to-back moon landings are part of NASA’s commercial lunar delivery program meant to get the space agency’s experiments to the gray, dusty surface and jumpstart business. The commercial landers are also seen as scouts for the astronauts who will follow later this decade under NASA's Artemis program, the successor to Apollo.

NASA officials said before the landing that they knew going in that some of the low-cost missions would fail. But with more private missions to the moon, that increased the number of experiments getting there.

NASA spent tens of millions of dollars on the ice drill and two other instruments riding on Athena, and paid an additional $62 million for the lift. Most of the experiments were from private companies, including the two rovers. The rocket-powered drone came from Intuitive Machines — it's meant to hop into a permanently shadowed crater near the landing site in search of frozen water.

Intuitive Machines' Trent Martin said before the flight that Athena needed to land upright in order for the drone and rovers to deploy.

To lower costs even more, Intuitive Machines shared its SpaceX rocket launch with three spacecraft that went their separate ways. Two of them — NASA’s Lunar Trailblazer and AstroForge’s asteroid-chasing Odin — are in jeopardy.

NASA said this week that Lunar Trailblazer is spinning without radio contact and won’t reach its intended orbit around the moon for science observations. Odin is also silent, with its planned asteroid flyby unlikely.

As for Athena, Intuitive Machines made dozens of repairs and upgrades following the company’s sideways touchdown by its first lander. It still managed to operate briefly, ending America’s moon-landing drought of more than 50 years.

Until then, the U.S. had not landed on the moon since Apollo 17 in 1972. No one else has sent astronauts to the moon, the overriding goal of NASA’s Artemis program. And only four other countries have successfully landed robotic spacecraft on the moon: Russia, China, India and Japan.

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