Houston fintech startup acquired by California unicorn

M&A moves

Four-year-old Brassica has been acquired. Photo via brassicafin.com

A Houston fintech innovator is celebrating his latest startup's exit.

Brassica Technologies Inc., a fintech infrastructure company that's provides a platform for alternative assets, has been acquired by BitGo, a Palo Alto, California-based tech company with digital asset services. The terms of the deal were not disclosed.

"Joining forces with BitGo is a significant step towards Brassica's ultimate vision of building the financial infrastructure of the future," Youngro Lee, founder and CEO of Brassica, says in a news release. "Our strength lies in our 'one stop shop' approach of providing API-enabled infrastructure for the alternative assets industry.

"This sector is rapidly growing and bringing in new investors around the world," Lee continues. "Our technology-focused development, combined with our deep domain expertise in securities and banking laws, uniquely position us in the market, especially for sophisticated clients dealing with the complexities of private securities and digital assets."

Lee founded Brassica in 2020 after his first fintech company, NextSeed, was acquired by Republic. Brassica raised its $8 million seed round led by Houston-based Mercury last year.

The acquisition is a strategic move by BitGo, which was valued at $1.75 billion last year, according to the company after its $100 million raise. Adding Brassica's suite of technology expands on BitGo's ability to grow its customer base.

"We currently have a dichotomy in financial services — one side deals with traditional securities and the other deals with up-and-coming blockchain-based assets and cryptocurrencies," Mike Belshe, CEO of BitGo, says in the release. "With this acquisition, BitGo becomes the first major financial services firm to be able to provide comprehensive infrastructure support for both traditional private securities and blockchain-based assets, while significantly expanding our global presence."

Last year, Lee joined the Houston Innovators Podcast to discuss Brassica and his overarching mission of democratizing fintech and investment tools. He explains there hasn't been a seamless solution created for the backend of alternative asset transactions, things like custody of those assets or transferring and keeping track of them.

"The reason why I thought this was what I wanted to focus on next was exactly because it was an issue I struggled with as a founder of NextSeed," Lee says on the show. "The backend was always an issue. There's not one single vendor that we felt really understood our business, was doing it efficiently, or enabled us to deliver those services to our end clients."

A Houston fintech startup is aiming to modernize banking and investing — and has received fresh funding to do it. Photo via Getty Images

Houston fintech startup raises $8M seed round led by local VC

fresh funds

A Houston startup has raised millions for its fintech platform — and the company didn't have to go very far to find its lead investor.

Brassica Technologies Inc. closed its seed round at $8 million with Houston-based Mercury Fund leading the round. Valor Equity Partners, Long Journey Ventures, NGC Fund, Neowiz, Broadhaven Ventures, Armyn Capital, VC3DAO, Alpha Asset Management (Korea), and other global FinTech investors participated in the round as well.

The startup's platform has "institutional-grade solutions for the new era of private investing and alternative assets," per the release. Serving the alternative assets industry, Brassica's tools can easily integrate with any operating system to provide proprietary technology and unique regulatory licenses. The technology aims to modernize key banking and investing infrastructure to help enterprises safely grow their business and protect their customer assets.

With its "investment infrastructure as a service" model, Brassica was co-founded in 2021 by two familiar faces in Houston's fintech scene. CEO Youngro Lee and CTO Bob Dunton were behind NextSeed, a crowdfunding platform that allowed businesses to raise investment funding online. The startup was acquired in 2020 by Republic, where Lee currently serves as executive vice president and head of Asia.

“The future of finance will depend on the ability of trustworthy institutions to provide secure and seamless transitions between traditional financial services and web3 innovations while complying with strict regulations and still providing great customer experience,” says Lee in the news release.

“Today’s infrastructure solutions for alternative assets are often cobbled together through multiple incompatible vendors in a complex regulatory environment, which often creates unreasonable risk, errors, and single points of failure for market participants," he continues. "We started Brassica to address this fundamental problem and provide solutions to enable innovators in both traditional and web3 industries to build properly within a constantly evolving global regulatory framework.”

Along with the seed round news, the company has announced that Brassica Trust Company, its wholly-owned subsidiary, has received a Trust Charter by the Wyoming State Banking Board.

“The revolution of the private markets is here, and it is clear that the traditional, legacy infrastructure currently in place is not designed for the present and future investment world,” says Blair Garrou, managing director at Mercury Fund, in the release. “Brassica’s API-forward, institutional grade solutions make investing in private and digital assets more trustworthy, compliant, and secure than ever before, further bridging the gap between the worlds of traditional and decentralized finance. Their highly qualified and experienced senior business, legal, and technology executive team makes Brassica well-positioned to usher in this new era of alternative investments. We are proud to support Brassica on their ongoing mission to democratize finance globally.”

The company plans to use the funding to grow its product, engineering, business development, and customer success teams, per the news release, as well as develop a trust operations team in Wyoming. Current leadership includes former execs from Republic, Cleary Gottlieb, Kirkland Ellis, Morgan Stanley, Custodia Bank, LedgerX, Prime Trust, JP Morgan Chase, and M1 Finance.

Youngro Lee has announced funding for his latest fintech endeavor. Photo courtesy

Sylvia Kampshoff has launched Kanthaka's first crowdfunding campaign. Photo courtesy of Kanthaka

Houston fitness tech startup launches $1M crowdfunding campaign

money moves

Calling all cardio lovers, yogis, and strength trainers alike — a Houston fitness platform is opening up investment opportunities through a new crowdfunding campaign.

Kanthaka, a Houston-based app that connects clients to personal trainers and yoga instructors on-demand, announced it will be launching a $1 million campaign through Republic, a crowdfunding platform. Kanthaka's users and trainers — or anyone interested — now have the option to become part owners in the company.

"We are very happy at Kanthaka to have been selected by Republic for their crowdfunding campaign," says Sylvia Kampshoff, founder and CEO of Kanthaka, in a press release. "I want our users as our evangelists.

"Since we started the company I've had clients reaching out wanting to invest but it was complicated — you had to be an accredited investor or VC," Kampshoff continues. "Now through this crowdfunding campaign, clients and trainers can participate in our journey."

According to the release, Republic, which is strategically partnered with Houston-based NextSeed, only accepts less than 1 percent of applicants interested in being funded on the platform. Kanthaka has reportedly raised over $850,000 from two venture capitalists and angels investors to date.

The company provides both live in-person and virtual sessions. Between March 2020 and March 2021, Kanthaka grew over 700 percent in sessions sold, per the release, and now, with the COVID-19 vaccines, the company is seeing a new spike in sessions.

"Our vision is to become Amazon for health & fitness and the go-to provider to live a longer, happier and healthier life," Kampshoff says in the release. "We couldn't be more excited about this journey."

Frustrated with the lack of ease in booking training sessions, Kampshoff launched Kanthaka in 2017 and has grown the company and expanded into 15 markets. Kanthaka participated in Austin-based accelerator Sputnik ATX.

Image via mykanthaka.com

This week's roundup of Houston innovators includes Grace Rodriguez of Impact Hub Houston, Youngro Lee of NextSeed, and Liz Youngblood of Baylor St. Luke's Medical Center. Courtesy photos

3 Houston innovators to know this week

Who's who

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — startup development, fintech, and health care — recently making headlines in Houston innovation.

Grace Rodriguez, CEO and executive director of Impact Hub Houston

Impact Hub Houston has two new initiatives for female founders. Photo courtesy of Impact Hub Houston

Two accelerator programs were recently announced and they both are aimed at supporting female founders — and one Houston organization is behind them both. Impact Hub Houston announced that it has partnered up with Frost Bank to sponsor eight female founders to participate in Impact Hub's new Accelerate Membership Program.

Additionally, Impact Hub Houston has teamed up with MassChallenge for their own initiative supporting female founders in the Houston-Galveston region in partnership with Houston-based Workforce Solutions. The three organizations are collaborating to launch launch a bootcamp to support female founders in the greater Houston region.

"As a female founder myself, I'm incredibly excited about this opportunity to support and uplift more women entrepreneurs and women-led businesses in our region," says Grace Rodriguez, CEO and executive director of Impact Hub Houston, in a news release. "By now, it's no secret that women, and especially women of color, are under-invested in; and this is our chance to change that by helping more women strengthen their businesses and prepare to seek funding." Click here to read more.

Youngro Lee, co-founder and CEO of NextSeed and COO of Republic

What does the future of investment look like? That's something Youngro Lee thinks about daily – and he shares his thoughts on this week's episode of the Houston Innovators Podcast. Photo courtesy of NextSeed

The world of investing is changing — and the power shift is tilting from the rich elite to individuals. Youngro Lee, co-founder and CEO of NextSeed and COO of Republic, has seen the change starting several years ago.

"Investing is traditionally seen as something you can't do unless you're rich," Lee says on this week's episode of the Houston Innovators Podcast. "There was a certain understanding of what anyone (looking to invest) should do. … But now the world is so different."

Lee shares more about the future of investing and how he's watched the Houston innovation ecosystem develop over the years on the episode. Click here to read more and stream the podcast.

Liz Youngblood, president of Baylor St. Luke's Medical Center and senior vice president and COO of St. Luke's Health

As we enter year two of the pandemic, the way hospitals function now and in the future is forever changed. Photo courtesy

No industry has been unaffected by COVID-19, Liz Youngblood, president of Baylor St. Luke's Medical Center and senior vice president and COO of St. Luke's Health, observes in a guest column for InnovationMap. But hospitals — they've had a spotlight shown on them and their technology adoption since day one of the pandemic.

"The pace of innovation for hospitals has been at breakneck speed — from the evolution of new treatment protocols to the need to reconfigure physical spaces to support an influx of patients while also promoting a healing environment during this unprecedented time," she writes.

Hospitals, she says, look and feel completely different now than they did last year and the year before that. Click here to read more.

What does the future of investment look like? That's something Youngro Lee thinks about daily – and he shares his thoughts on this week's episode of the Houston Innovators Podcast. Photo courtesy of NextSeed

Houston fintech startup continues to grow to represent a new era of investing

HOUSTON INNOVATORS PODCAST EPISODE 78

When Youngro Lee and his co-founders launched NextSeed — an investment platform that allows non-accredited investors to invest in small, local businesses for as little as $100 — they were creating something that hadn't existed before. Now, Lee is actively working toward a world where this type of crowd-sourced investment is commonplace.

And the industry is changing — finally. The first change was in 2012 when the Jobs Act allowed for unaccredited investors to make small-scale investments into businesses. It was this new law change that drove Lee and his co-founders to create NextSeed as the landscape of both investors and companies that were able to get funding began to evolve.

"Investing is traditionally seen as something you can't do unless you're rich," Lee says on this week's episode of the Houston Innovators Podcast. "There was a certain understanding of what anyone (looking to invest) should do. … But now the world is so different."

And the financial world was due some changes, Lee says. If you look at the top 10 companies in the world right now, he explains on the show, most of those companies weren't on that list 20 years ago. "And that's not a coincidence," he says.

"Technologies, lifestyles, and generations change, but in the world of finance — because of regulations and old school mentality — it doesn't catch up," Lee says.

But new companies — like NextSeed on the private side of the market and Robinhood representing public investment — are putting investment power into the hands of individuals. And the new generations of investors look at investment differently.

"The future of investment is less about, 'let me maximize my ROI,'" he says, "it's going to transition to, 'I want to invest in things that make me happy and things that I value."

Last fall, NextSeed and New York-based Republic, another investment platform, entered into a strategic partnership that mutually benefits both companies and expands their horizons — both geographically and on an industry level. From Republic's perspective, the company is tapping into a new market in Houston and Texas — a region that's growing its population and attracting new businesses.

Lee shares more about the deal, the future of investing, and how he's watched the Houston innovation ecosystem develop over the years on the episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.


Rice University's annual Veterans Business Battle is calling for submissions. Courtesy of Rice University

Rice University competition to link veterans with NextSeed investors

it's on

Rice University's Business Veterans Association has helped military veteran raise more that $3.5 million in investments over the last seven years through it's annual pitch competition. And this year, the stakes are even higher.

The Veterans Business Battle — held April 23-24 — allows veterans to pitch their early-stage business or existing company to a panel of investors, as well as engage in educational opportunities and networking. Cash prizes are awarded for first, second, and third place pitches, ranging from $5,000 to $15,000

This year the VBB has also partnered with NextSeed Securities. The registered broker dealer and FINRA member will allow vetted startups invited to present at the event to raise capital from investments by the general public.

"Last year's online-only event gave us an opportunity to think of ways to engage new investors and expand our audience. We're excited to increase opportunities for our finalists and grow our network of investors," event co-chair Matt Wilson says in a statement.

Past competitors have run the gamut, including the likes of oil and gas drone operating company Trumbull Unmanned (which was named a Top 25 Veteran-Founded Startup by Forbes) as well as skin care lines, a body armor manufacturer, ready-to-wear boots, and a health-conscious sauces company. Several have gone on to represent small businesses at the White House.

Last year, YouMeMine, Capsulomics Inc, and Feildcraft were named finalists at the virtual event. In 2019, at a in-person competition, Amor Oral, Welcome Connect and FeedMe Fitness took the stage.

Other partners for the 2021 competition include the U.S. Small Business Administration, Bunker Labs, University of St. Thomas, Houston Community College, and Warrior Rising—a nonprofit for veterans and veteran families which will be hosting education, training, and one-on-one mentorships during the event.

To apply, applicants must submit a business plan on the competition website, vetbizbattle.org, by Feb. 5, according to a release. Businesses must have an honorably discharged veteran or active duty founder and equity holder who is running the venture. Finalists will be invited to make their business pitch at Rice University.
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German biotech co. to relocate to Houston thanks to $4.75M CPRIT grant

money moves

Armed with a $4.75 million grant from the Cancer Prevention and Research Institute of Texas, a German biotech company will relocate to Houston to work on developing a cancer medicine that fights solid tumors.

Eisbach Bio is conducting a clinical trial of its EIS-12656 therapy at Houston’s MD Anderson Cancer Center. In September, the company announced its first patient had undergone EIS-12656 treatment. EIS-12656 works by suppressing cancer-related genome reorganization generated by DNA.

The funding from the cancer institute will support the second phase of the EIS-12656 trial, focusing on homologous recombination deficiency (HRD) tumors.

“HRD occurs when a cell loses its ability to repair double-strand DNA breaks, leading to genomic alterations and instability that can contribute to cancerous tumor growth,” says the institute.

HRD is a biomarker found in most advanced stages of ovarian cancer, according to Medical News Today. DNA constantly undergoes damage and repairs. One of the repair routes is the

homologous recombination repair (HRR) system.

Genetic mutations, specifically those in the BCRA1 and BCRA1 genes, cause an estimated 10 percent of cases of ovarian cancer, says Medical News Today.

The Cancer Prevention and Research Institute of Texas (CPRIT) says the Eisbach Bio funding will bolster the company’s “transformative approach to HRD tumor therapy, positioning Texas as a hub for innovative cancer treatments while expanding clinical options for HRD patients.”

The cancer institute also handed out grants to recruit several researchers to Houston:

  • $2 million to recruit Norihiro Goto from the Massachusetts Institute of Technology to MD Anderson.
  • $2 million to recruit Xufeng Chen from New York University to MD Anderson.
  • $2 million to recruit Xiangdong Lv from MD Anderson to the University of Texas Health Science Center at Houston.

In addition, the institute awarded:

  • $9,513,569 to Houston-based Marker Therapeutics for a first-phase study to develop T cell-based immunotherapy for treatment of metastatic pancreatic cancer.
  • $2,499,990 to Lewis Foxhall of MD Anderson for a colorectal cancer screening program.
  • $1,499,997 to Abigail Zamorano of the University of Texas Health Science Center at Houston for a cervical cancer screening program.
  • $1,497,342 to Jennifer Minnix of MD Anderson for a lung cancer screening program in Northeast Texas.
  • $449,929 to Roger Zoorob of the Baylor College of Medicine for early prevention of lung cancer.

On November 20, the Cancer Prevention and Research Institute granted funding of $89 million to an array of people and organizations involved in cancer prevention and research.

Top Houston startups, innovators win big, space tech rolls out rover, and more trending news

top stories

Editor's note:Let's roundup the most-read Houston innovation news from the week. Trending Houston tech and startup articles from InnovationMap and its daily newsletter included the announcement of the Houston Innovation Awards winners, Intuitive Machines rolling out its rover, and more.

2024 Houston Innovation Awards winners named at annual event

This year's award recipients span industries and technologies. Photos courtesy

Houston innovators — the moment you've been waiting for. The winners of the 2024 Houston Innovation Awards were named at the annual event.

The Houston Innovation Awards honored over 40 finalists across categories, naming the 12 winners and honoring the two Trailblazer Legacy Awards at the event. Click here to see the winners.

Photos: Houston Innovation Awards celebrates city's startup, tech leaders at annual event

Over 500 members of Houston's innovation community showed up to celebrate the best and brightest of the ecosystem. Photo by Emily Jaschke/InnovationMap

The 2024 Houston Innovation Awards season has come to a close with last week's event.

With a crowd of around 500 attendees, the Houston Innovation Awards, which took place on November 14, celebrated over 40 finalists and a dozen winners across categories. Click here to view photos from the event.

Houston space tech co. rolls out futuristic lunar rover for NASA's Artemis missions

Intuitive Machine unveiled its RACER lunar terrain vehicle at Space Center Houston. Photo courtesy of Intuitive Machines

Houston-based space exploration company Intuitive Machines just unveiled its version of a lunar terrain vehicle that’s designed to be used by astronauts in NASA’s Artemis moon discovery program.

Intuitive Machine recently rolled out its RACER lunar terrain vehicle (LTV) at Space Center Houston. RACER stands for Reusable Autonomous Crewed Exploration Rover. Click here to continue reading.

Houston accelerator names inaugural cohort to propel digital transformation in energy

The NOV Supernova Accelerator will work to cultivate relationships between startups and NOV. Photo via Getty Images

Houston-based Venture Builder VC has kicked off its NOV Supernova Accelerator and named its inaugural cohort.

The program, originally announced earlier this year, focuses on accelerating digital transformation solutions for NOV Inc.'s operations in the upstream oil and gas industry. It will support high-potential startups in driving digital transformation within the energy sector, specifically upstream oil and gas, and last five months and culminate in a demo day where founders will present solutions to industry leaders, potential investors, NOV executives, and other stakeholders. Click here to continue reading.

2 Houston health innovation leaders award grants to cancer-fighting researchers

The Cancer Bioengineering Collaborative announced the projects that were selected for its first round of seed grants. Photo via Rice.edu

Five cancer-fighting research projects were named inaugural recipients of a new grant program founded by two Houston institutions.

Last summer, Rice University and The University of Texas MD Anderson Cancer Center announced they were teaming up to form the new Cancer Bioengineering Collaborative. The shared initiative, created to form innovative technologies and bioengineering approaches to improve cancer research, diagnosis and treatment, recently launched with an event at the TMC3 Collaborative Building in Helix Park. Click here to continue reading.

West Coast innovation organization unveils new location in Houston suburb to boost Texas tech ecosystem

plugging in

Leading innovation platform Plug and Play announced the opening of its new flagship Houston-area location in Sugar Land, which is its fourth location in Texas.

Plug and Play has accelerated over 2,700 startups globally last year with corporate partners that include Dell Technologies, Daikin, Microsoft, LG Chem, Shell, and Mercedes. The company’s portfolio includes PayPal, Dropbox, LendingClub, and Course Hero, with 8 percent of the portfolio valued at over $100 million.

The deal, which facilitated by the Sugar Land Office of Economic Development and Tourism, will bring a new office for the organization to Sugar Land Town Square with leasing and hiring between December and January. The official launch is slated for the first quarter of 2025, and will feature 15 startups announced on Selection Day.

"By expanding to Sugar Land, we’re creating a space where startups can access resources, build partnerships, and scale rapidly,” VP Growth Strategy at Plug and Play Sherif Saadawi says in a news release. “This location will help fuel Texas' innovation ecosystem, providing entrepreneurs with the tools and networks they need to drive real-world impact and contribute to the state’s technological and economic growth."

Plug and Play plans to hire four full-time equivalent employees and accelerate two startup batches per year. The focus will be on “smart cities,” which include energy, health, transportation, and mobility sectors. One Sugar Land City representative will serve as a board member.

“We are excited to welcome Plug and Play to Sugar Land,” Mayor of Sugar Land Joe Zimmerma adds. “This investment will help us connect with corporate contacts and experts in startups and businesses that would take us many years to reach on our own. It allows us to create a presence, attract investments and jobs to the city, and hopefully become a base of operations for some of these high-growth companies.”

The organization originally entered the Houston market in 2019 and now has locations in Bryan/College Station, Frisco, and Cedar Park in Texas.

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