Overheard: Local innovation leaders share what they see has changed in Houston for venture investing

Eavesdropping online

"There's something magical happening in Houston, and [VCs] want a piece of it." Photo via Getty Images

Houston's seen a growth in startup and venture investment — even amid the pandemic — and a group of Houston innovators sat down for a virtual event to discuss what's lead to this evolution.

The Greater Houston Partnership hosted an installment of its Houston Industry Series focused on Digital Tech on Thursday, September 24. The panel of experts, moderated by Krisha Tracy of Google Cloud, discussed how they've observed the paradigm shift that's occurred in Houston over the past few years — and why.

Missed the discussion? Here are some significant overheard moments from the virtual event.

“I think there really is an interest for venture capital here, both locally and also welcoming it from outside of Houston. … There’s something magical happening in Houston, and [VCs] want a piece of it. I think that magical piece is a renewed interest in collaborating.”

— Stephanie Campbell, managing director of Houston Angel Network and co-founder of The Artemis Fund. "I think a lot [of this progress] is due to the GHP, Houston Exponential, and the founding of the HX Venture Fund to bring those venture funds to Houston to say, 'what's happening here?'" Campbell adds, saying that this connectivity and collaboration that's happening in Houston VC is unique.

“I think there’s a misconception around all we do is oil and gas and life science in Houston, but when you think about what VC-backable companies look like, they’re tech, they’re B2B SaaS, they’re highly scalable, and they don’t tend to be capital-intensive types of things we see corporate venture backing.”

— Campbell says, adding "the connectivity and the interest in VC is really taking off. It's an exciting time to be in Houston and Texas in general."

“Plug and Play’s ventures team is based in Silicon Valley and one thing they enjoy about meeting Houston-based founders is valuations tend to be more reasonable than in the Bay Area."

— Payal Patel, director of Plug and Play Tech Center in Houston. "There are gems to be found," she adds.

“I don’t know what it is — if it’s something in the water or just Texans being very friendly, but the investors here share deal flow. It takes a village, and I think we all understand a rising tide lifts all boats."

—Patel says on the collaborative nature of Houston. "It's really magical."

“What you’re witnessing is a city that has been waiting for industrial innovation to reach the point where it can be adopted at a really high scale, and that happened around 2017.”

— Jon Nordby, managing director at MassChallenge Texas in Houston. Nordby adds that MassChallenge in Houston hasn't been keen on consumer tech, or the "grilled cheese delivery apps," as he describes. "We like companies that are in love with problems, not so much in love with solutions. … We build really meaningful tech."

“Over the last year or two, we’ve seen that sleeping giant get awoken. Open and external innovation is newly adopted by more legacy industries where it wasn’t before — and that’s just created a mountain of opportunities for startups and investors alike.”

— Nordby says on the shift toward this meaningful, problem-solving technology, which Houston is full of, as he observes.

Plug and Play, an international accelerator and investment group with a presence in Houston, joined a panel to discuss startup investment, networking, and more during the pandemic. Photo by Zview/Getty Images

Overheard: International startup accelerator shares advice for Houston companies navigating COVID-19 era

Eavesdropping online

It's no secret that the spread of COVID-19 has greatly affected startup ecosystems by shutting down coworking and accelerator spaces and providing economic uncertainty in the venture capital world. However, organizations focused on investment and acceleration are still working to virtually guide startups virtually.

Plug and Play Tech Center, an accelerator and investment group based in Silicon Valley that recently launched its Houston presence, is still offering support and even investments to startups as the pandemic continues on. One way they've recently done so is through Houston Exponential on a virtual panel to answer questions from Houston entrepreneurs.

On the panel, Neda Amidi, partner and global head of health at Plug and Play Tech Center, Milad Malek, associate at Plug and Play Ventures, and Payal Patel, director at Plug and Play Houston, discussed concerns and questions about the organization's dedication to Houston, advice amid the pandemic, and more. If you missed it or don't have time to stream the whole conversation, here are some impactful moments of the chat.

“Timing and opportunity set up the Plug and Play Houston office. The mayor and other business leaders in Houston had seen what happens in our Silicon Valley office and with all the things that are going on in the burgeoning startup community in Houston, we saw the opportunity.”

— Patel says on how Houston snagged its very own Plug and Play location. "Given the high concentration of large companies here — as well as the growing number of investment opportunities — we moved quite quickly to open the office here," she adds.

“There’s a number of great entrepreneurs here in this city. I think a missing ingredient has been the number of early stage investments — especially in that Seed or series A stage. So, we hope to make an impact in that. Our CEO has publicly stated that he’d like to make five investments in Houston a year.”

— Patel shares about Plug and Play's investment strategy in Houston. She adds that five investments in Houston a year is the bare minimum, and they actually are striving for more.

“[Investing virtually is] kind of the same process, but we definitely try to make sure we have cameras on and distractions are away, really giving that entrepreneur that same experience as we can in a face-to-face meeting."

— Amidi says on how Plug and Play's investment team approaches investment meetings and pitches during this time. She explains that during the beginning of the pandemic, most of their investments were with companies that had existing relationships with or follow on deals. Now they have made investments in companies they've never met in person. She says Plug and Play has relied on its network to give feedback on these potential deals.

“During COVID, we’ve recommended to a lot of our portfolio companies to raise more than what they needed at the time to be able to power through what’s happening now and what will happen on the economy side as well."

— Amidi says about investment advice they've given to Plug and Play startups.

“A lot of hardware companies get too intense in terms of thinking about one avenue of fundraising. Spend a lot more time thinking about fundraising strategy.”

— Malek says on fundraising for hardware startups specifically. He adds that there are other options for generating cash flow, like grants. "Don't forget the business side of things" he adds. "I know early on, a lot of founders are focused on the technology and prototyping, but it's important as well to think about a compelling narrative for potential investors — even if you're pre-revenue."

"For SaaS, it’s important to have a unique differentiation. There are a lot of copy cats in this realm. It’s ok to be doing something that has competitors — every startup has competitors."

— Malek says about software-as-a-service startups pitching to investors. "It's a red flag when we're talking to a startup — especially one with a SaaS product — that says we don't have competitors," he adds, saying it's usually not true.

“A lot of investors out there prefer teams with multiple founders and not just one founder. It never hurts, at least in an investor’s eyes, to have two or three founders.”

— Malek explains, responding to a question about how to begin the process of bringing another co-founder on board. Investors, he says, value a team with diverse backgrounds and expertise.

“Take your time — it’s kind of like picking a spouse or partner. You want to make sure you’re compatible.”

— Amidi adds, saying it's an exceptionally difficult process nowadays. She recommends reaching out to your network for leads on a potential co-founder or even looking into sites like AngelList or LinkedIn.

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Houston femtech co. debuts new lactation and wellness pods

mom pod

Houston-based femtech company Work&, previously known as Work&Mother, has introduced new products in recent months aimed at supporting working mothers and the overall health of all employees.

The company's new Lactation Pod and Hybrid Pod serve as dual-use lactation and wellness spaces to meet employer demand, the company shared in a news release. The compact pods offer flexible design options that can serve permanent offices and nearly all commercial spaces.

They feature a fully compliant lactation station while also offering wellness functionalities that can support meditation, mental health, telehealth and prayer. In line with Work&'s other spaces, the pods utilize the Work& scheduling platform, which prioritizes lactation bookings to help employers comply with the PUMP Act.

“This isn’t about perks,” Jules Lairson, Work& co-founder and COO, said in the release. “It’s about meeting people where they are—with dignity and intentional design. That includes the mother returning to work, the employee managing anxiety, and everyone in between.”

According to the company, several Fortune 500 companies are already using the pods, and Work& has plans to grow the products' reach.

Earlier this year, Work& introduced its first employee wellness space at MetroNational’s Memorial City Plazas, representing Work&'s shift to offer an array of holistic health and wellness solutions for landlords and tenants.

The company, founded in 2017 by Lairson and CEO Abbey Donnell, was initially focused on outfitting commercial buildings with lactation accommodations for working parents. While Work& still offers these services through its Work&Mother branch, the addition of its Work&Wellbeing arm allowed the company to also address the broader wellness needs of all employees.

The company rebranded as Work& earlier this year.

5 Houston innovators who made headlines in August 2025

Featured Innovators

Editor's note: Innovators hailing from both Rice University and University of Houston made headlines in August by developing a new biomaterial that could replace plastic and deploying a new flood scale to help Houstonians stay safe. Plus, one local innovator has a big move on the horizon.

Here are five Houston innovators to know right now.

​M.A.S.R. Saadi and Muhammed Maksud Rahman, Rice University and University of Houston

A team led by M.A.S.R. Saadi and Muhammad Maksud Rahman has developed a biomaterial that they hope could be used for the “next disposable water bottle." Photo courtesy Rice University.

Collaborators from two Houston universities are leading the way in engineering a biomaterial into a scalable, multifunctional material that could potentially replace plastic. The research was led by Muhammad Maksud Rahman, an assistant professor of mechanical and aerospace engineering at the University of Houston and an adjunct assistant professor of materials science and nanoengineering at Rice University. M.A.S.R. Saadi, a materials science and nanoengineering doctoral student at Rice University, was first author on the study. The study introduced a biosynthesis technique that aligns bacterial cellulose fibers in real-time, which resulted in robust biopolymer sheets with “exceptional mechanical properties,” according to the researchers. Learn more.

Paul Cherukuri, Rice University

Paul Cherukuri, Rice’s first vice president for innovation and chief innovation officer, will leave his post next month. Photo via Rice.edu

Paul Cherukuri, Rice University's top innovation executive, responsible for some of Rice’s major innovative projects like the Rice BioTech LaunchPad and Rice Nexus, will leave the university at the end of September to accept a position at the University of Virginia. Cherukuri, Rice’s first vice president for innovation and chief innovation officer, will become the University of Virginia’s Donna and Richard Tadler University Professor of Entrepreneurship and the school's first chief innovation officer. Learn more.

Steven Paul Woods (pictured) and Natalie C. Ridgely, University of Houston

Steven Paul Woods, professor of Psychology, at UH. Photo courtesy of UH

University of Houston Professor of Psychology Steven Paul Woods and doctoral student Natalie C. Ridgely recently partnered with the Space City Weather (SCW) blog to create a new flood alert scale for the trusted weather site. “My lab does work on how people access, understand, and use health information, so I thought we could adapt some of that ongoing work and our expertise in psychological science to answer questions about weather communication, and help keep Houstonians informed and safe,” said Woods. Learn more.

Rice biotech studio secures investment from Modi Ventures, adds founder to board

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RBL LLC, which supports commercialization for ventures formed at the Rice University Biotech Launch Pad, has secured an investment from Houston-based Modi Ventures.

Additionally, RBL announced that it has named Sahir Ali, founder and general partner of Modi Ventures, to its board of directors.

Modi Ventures invests in biotech companies that are working to advance diagnostics, engineered therapeutics and AI-driven drug discovery. The firm has $134 million under management after closing an oversubscribed round this summer.

RBL launched in 2024 and is based out of Houston’s Texas Medical Center Helix Park. William McKeon, president and CEO of the TMC, previously called the launch of RBL a “critical step forward” for Houston’s life sciences ecosystem.

“RBL is dedicated to building companies focused on pioneering and intelligent bioelectronic therapeutics,” Ali said in a LinkedIn post. “This partnership strengthens the Houston biotech ecosystem and accelerates the transition of groundbreaking lab discoveries into impactful therapies.”

Ali will join board members like managing partner Paul Wotton, Rice bioengineering professor Omid Veiseh, scientist and partner at KdT Ventures Rima Chakrabarti, Rice alum John Jaggers, CEO of Arbor Biotechnologies Devyn Smith, and veteran executive in the life sciences sector James Watson.

Ali has led transformative work and built companies across AI, cloud computing and precision medicine. Ali also serves on the board of directors of the Drug Information Association, which helps to collaborate in drug, device and diagnostics developments.

“This investment by Modi Ventures will be instrumental to RBL’s growth as it reinforces confidence in our venture creation model and accelerates our ability to develop successful biotech startups,” Wotton said in the announcement. "Sahir’s addition to the board will also amplify this collaboration with Modi. His strategic counsel and deep understanding of field-defining technologies will be invaluable as we continue to grow and deliver on our mission.”

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