The future of resilience innovation will require all hands on deck. Photo via Getty Images

As Houstonians know more than most, a natural disaster can set a thriving city back millions. And, as it seems, these natural disasters aren't going anywhere. The question innovators, governments, insurance companies, and affected citizens keep asking is "what can be done?"

"Over the past decade we've been in and out of several disasters in the billions of dollars of impact," says Richard Seline, managing partner at ResilientH2O Partners. "But it's not without response."

Governments are deploying billions into fixing infrastructure, and Seline gathered risk mitigation experts for a conversation and startup pitch session as a part of Houston Tech Rodeo to discuss the future of this field. The experts weighed in on how risk mitigation and disaster prevention is going to need to be supported by both local and national governments.

Pamela Williams, executive director at BuildStrong Coalition, says she's been in the industry for decades now and has observed new financial support opportunities coming in at a federal level. These entities are looking for cost effective, risk reducing technologies. Innovators can think of these resources as seed funds — with a very high return on investment.

"Investments pre-disaster to draw down risk will save us … up to $11 for every $1 invested," she says on the panel. "Pre-disaster mitigation is where it's at."

And the solutions can't just come from one office within the national government — it needs to be a collaborative effort, she adds.

"We have got to provide flexibility, consistency — and truly be able to leverage all of these resources together so that we can do these transformational unthought of projects," Williams says.

Local governments are also tasked with increasing focus and funding on disaster prevention — maybe even more so than federal agencies, says Ron Prater, executive director at Big City Offices of Emergency Management.

"All disasters are local," he explains. "Locals have to be ready. ...Feds have money and resources but they aren't going to come in and save the day."

Governmental support is going to be needed to advance risk mitigation technology and innovation, but entrepreneurs might also have to seek aid elsewhere.

"While there are funds available for entrepreneurs and innovators, the fact is it will not always come from the government," Seline says. "There are billions of dollars of insurance, reinsurance, and non-traditional financing beginning to emerge — most of it centered around insuratech."

Williams says companies have a unique role to play in the continued conversation of driving these types of inventions.

"Our private sector partners have the ability to convene people," she says, "and bring perspectives to the table that have never before been there to come up with creative solutions."

Cultivating diverse thought leadership is crucial to the equation, says panel moderator Landi Spearman, generational and change management consultant at Organized Shift, who explains that Houston is an especially strategic place for this innovation to occur, since it's the most diverse big city in the country.

"When we think about resilience and people, we get to leverage our diversity of perspective. You get to bring yourself to the solution and you get to include others," she says.

There are a few types of exciting technologies emerging in resilience innovation — from finding ways to optimize and assist brokers and carriers as well as the equipment, technology, and data that's coming out of the public-private sector. One that interests Prater in particular is the opportunity to collect data.

"AI and machine learning are going to improve how (emergency managers) get situation awareness — how accurate it is and how timely it is," he says. "One of their main goals is to share as much information as possible."

The panel concluded with three startup pitches from NanoTech, a fireproofing and insulation product; IVPAir, a device that kills COVID-19 germs right from the air; and Climaguard, a weatherproofing invention to protect cars.

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CultureMap Emails are Awesome

Here's what Houston startups have raised in funding so far in 2024

Q1 2024 VC ACTIVITY

Five Houston startups have started the new year strong with over $320 million in venture funding — most of which from one mega deal for a geothermal company.

According to InnovationMap reporting, Houston's VC activity in the first quarter of 2024 spanned industry and stage — from pre-seed to series E. It's a large chunk of money raised in Houston for one quarter — but not in terms of deals closed, at least compared to the previous quarter, in which startups raised over $170 million but across nine deals.

On the national side, it's not too different of a story. According to a quarterly report from PitchBook, the United State's VC activity for the start of the year "showed to be one of the slowest areas of the venture market during the quarter." Only $9.3 billion in capital was raised in the U.S. last quarter, which is only 11.3 percent of the total raised in the already slowed market of 2023.

"While dry powder remains high, slowed fundraising portends to LP hesitancy toward VC, and should predict a more difficult dealmaking environment down the road," reads an email from PitchBook. "During the past few years, large mega-funds drove fundraising trends, but Q1 VC fundraising shows there may be no appetite for such vehicles in today’s market."

These are the five startup VC deals closed in Houston so far this year, according to reporting on InnovationMap.

Fervo Energy raises $244M in latest funding round

Fervo Energy scored a $244 million round of funding thanks to existing and new investors. Photo via Fervo Energy

An Oklahoma-based shale oil and gas leader has backed Fervo Energy's latest round of funding, supporting the startup's geothermal technology yet again.

Fervo announced its latest round of funding this week to the tune of $244 million. The round was led by Devon Energy, a company that's previously backed the startup.

“Demand for around-the-clock clean energy has never been higher, and next-generation geothermal is uniquely positioned to meet this demand,” Tim Latimer, Fervo CEO and co-founder, says in a news release. “Our technology is fully derisked, our pricing is already competitive, and our resource pipeline is vast. This investment enables Fervo to continue to position geothermal at the heart of 24/7 carbon-free energy production.” Read more about the round.

Procyrion secures $57.7M series E

Procyrion has announced the closing of its series E round of funding. Photo via Getty Images

Houston-born and bred medical device company, Procyrion, has completed its series E with a raise of $57.7 million, including the conversion of $10 million of interim financing.

Procyrion is the company behind Aortix, a pump designed to be placed in the descending thoracic aorta of heart failure patients, which has been shown to improve cardiac performance in seriously ill subjects. The money raised will allow the company to proceed with a the DRAIN-HF Study, a pivotal trial that will be used for eventual FDA approval and commercialization.

The Aortix is the brainchild of Houston cardiologist Reynolds Delgado. According to Procyrion’s CSO, Jace Heuring, Delgado, gained some of his experience with devices for the heart working with legendary Texas Heart Institute surgeon O.H. “Bud” Frazier. He filed his first patents related to the Aortix in 2005. Read more about the round.

Sage Geosystems closes $17M series A 

Houston-based Sage Geosystems announced the first close of $17 million round led by Chesapeake Energy Corp. Photo via sagegeosystems.com

A Houston geothermal startup has announced the close of its series A round of funding.

Houston-based Sage Geosystems announced the first close of $17 million round led by Chesapeake Energy Corp. The proceeds aim to fund its first commercial geopressured geothermal system facility, which will be built in Texas in Q4 of 2024. According to the company, the facility will be the first of its kind.

The venture is joined by technology investor Arch Meredith, Helium-3 Ventures and will include support from existing investors Virya, LLC, Nabors Industries Ltd., and Ignis Energy Inc.

“The first close of our Series A funding and our commercial facility are significant milestones in our mission to make geopressured geothermal system technologies a reality,” Cindy Taff, CEO of Sage Geosystems, says in a news release. “The success of our GGS technologies is not only critical to Sage Geosystems becoming post-revenue, but it is an essential step in accelerating the development of this proprietary geothermal baseload approach. Read more about the round.

Ema raises $2M round of bridge funding

Ema, which operates as a health and wellness-focused, AI-based chat for women, has raised additional funding. Screenshot courtesy of Ema

A Houston-based startup that's improving health and wellness for women with its artificial intelligence-backed platform has raised a bridge round of funding.

Ema closed its latest bridge round, bringing its total funding to nearly $2 million. The company received investment from Kubera's Venture Capital and Victorum Capital, which joined existing investors Hearst Labs, Wormhole Capital, Acumen America, and Techstars.

Ema strives to deliver "personalized, empathetic, and evidence-based support" to its users through its generative AI technology. The platform has more than 100,000 users, and has expanded into the B2B sector with $100,000 in contracts within just 30 days after pivoting to this model, according to the company. Read more about the round.

TrueLeap Inc. raises oversubscribed $610,000 pre-seed round

The edtech company offers a comprehensive approach to shrinking the digital divide with a suite of technology including software, hardware, and more. Photo courtesy of TrueLeap

An edtech startup has just secured funding to further its mission of increasing accessibility to education.

TrueLeap Inc., global digital education startup addressing the digital divide in education, has raised $610,000, which is over its target of $500,000. The round was led by United Kingdom-based Maya Investments Limited.

"This oversubscribed funding round, led by Maya Investments Limited, is a testament to the urgent need for innovative educational technologies in emerging markets. Our commitment to providing affordable and integrated solutions is stronger than ever," says Sandip Bordoloi, CEO and Co-Founder of TrueLeap, in a news release. Read more about the round.

Greentown Labs reduces roles at Houston, Boston incubators

tough decisions

Greentown Labs has announced a reduction in its staff, which affects both of its locations.

In a letter addressed to the Greentown Labs community, the organization's CEO and President Kevin Knobloch reported that Greentown will be reducing its staff by 30 percent, eliminating 12 roles in Boston and six in Houston. Knobloch noted changes in leadership, growth of the team, and adjustments following the pandemic.

"Greentown Labs grew rapidly over the past four years in pursuit of advancing its mission to catalyze climate action through entrepreneurship, partnership, and collaboration," Knobloch writes in the letter. "This created a structural deficit where growth outpaced revenue."

The letter did not provide details of which positions were eliminated at either location.

With these resizing of the staff and reduced expenses, Knobloch writes that the organization is positioned well for its future.

"Despite this decision, I remain optimistic about the future for Greentown and the impact we will have on addressing the climate crisis," Knobloch tells the community. "Our mission is as urgent as ever and we remain committed to supporting all of you—our startups—by prioritizing core operations, member services, and strategic partner engagements."

Knobloch took the helm of Greentown last summer. He previously served as chief of staff of the United States Department of Energy in President Barack Obama’s second term.

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This article originally ran on EnergyCapital.