A Texas startup joins another Houston accelerator — and more Houston innovation news. Photo via Getty Images

Houston's summer has been heating up in terms of innovation news, and there might be some headlines you may have missed.

In this roundup of short stories within Houston startups and tech, a Houston accelerator program taps an Austin energy tech startup, a health tech company names a new C-level exec, and more.

Houston-founded startup raises $26M, names new CEO

Spruce has fresh funding and a new CEO. Photo via GetSpruce.com

Houston-founded multifamily service provider Spruce has raised a $26 million series B round of funding. Additionally, the company has named seasoned technology executive and board member Steven Pho as CEO. His previous experience includes Favor Delivery and RetailMeNot. Former CEO and founder, Ben Johnson, will transition to president.

“For the past two years, I’ve been able to guide Spruce as a board member and am honored to continue to do that as CEO,” says Pho in a news release. “Ben’s vision for Spruce ensured the company’s incredible growth to date, as well as the outsized positive impact on local economies and small businesses Spruce partners with across the country. I am excited to continue to partner with him as he transitions to President of the company. ”

The series B round was led by Sweat Equity Partners, with participation from SoftBank Corp., Mercury Fund, Fitz Gate Ventures, Seamless Capital, Raven One Ventures, and New Age Ventures. The funding will be used to grow the company's team to support expansion. Spruce reportedly plans to nearly double its headcount.

“We believe Spruce has established the right formula for working with local businesses, consumers, and rental properties alike,” says Manish Narula of SoftBank Corp. “We are looking forward to Spruce’s continued growth as it scales with this latest investment round.”

Spruce has raised $40 million to date, including its $8 million series A, which was led by Houston-based Mercury Fund in 2020. The company, which was founded as Apartment Butler, rebranded and relocated its HQ to Austin a couple years ago.

Texas tech startup joins Chevron Technology Ventures Catalyst Program

Houston startup aims to prepare the energy industry's future workforceFrom Rex Tillerson's thoughts on leadership and politics to Houston's role in the low-carbon energy movement, check out these powerful quotes from the 2020 KPMG Global Energy Conference. Getty Images

An innovative Austin company has doubled down on its acceleration and incubation activity in Houston.

Parasanti Inc. was selected to participate in the Houston-based Chevron Technology Ventures Catalyst Program. The company is a member of Greentown Houston and participated in Halliburton Labs. The company's edge computing technology provides secure solutions for remote work — such as off-the-grid oilfield operations.

Through CTV's Catalyst Program, which was founded in 2017 to help mature early-stage technology destined to impact the energy industry, Parasanti be tasked with further developing its software and expand into new projects.

“Parasanti is honored to receive support from a global energy technology leader like Chevron through this program,” says Carrie Horazeck, president of Parasanti’s commercial division, in a news release. “The CTV team has been incredibly helpful as we adapt our technology for the advanced energy solutions market. This program further demonstrates Chevron’s commitment to enabling the energy transition through technological advancement.”

Houston founders can apply for $100,000

Calling all diverse founders in Houston. Photo via Getty Images

Houston founders have until July 25 to apply for Founders First CDC's Job Creators Quest Grant, which will dole out $100,000 to support minority and underrepresented business owners throughout the state of Texas. The nonprofit is looking for Texas companies that:

  • are diverse-led (Black, indigenous, a person of color, LGBTQIA+, military veteran, a woman or located in a low to moderate income area)
  • employ two to 20 people
  • are located in the north, central east, or south Texas regions
  • have annual revenues between $100,000 to $3 million

The grant program was established to help business owners create premium wage jobs and reward diverse-led businesses throughout the state of Texas. Since its launch in early 2021, Founders First CDC has awarded more than $400,000 to minority and underserved business owners throughout the United States.

“With the rising cost of living, it can be challenging for families let alone business owners to stay afloat, particularly when it costs them more to provide goods and services for their consumers,” says Shaylon Scott, executive director of Founders First, in a news release. “We are happy to be able to invest money and resources in hard working business owners throughout Texas to help them thrive, even during uncertain economic times. Investing in diverse entrepreneurs is not only an impactful way to create jobs but is a pivotal way to close the general wealth gap in underserved communities.”

Qualified business owners, particularly those in the Dallas-Ft. Worth, Houston, Austin, and San Antonio markets can learn more and apply online.

Houston tech startup snags military award

This online learning platform just partnered up with a government entity. Photo via Getty Images

Houston-based UpBrainery Technologies, an online learning platform, received an award from the Department of Defense Education Activity as the premiere provider of Career Technology Education for 52 military middle Schools across the world. CTE provides middle school students with critical academic and technical skills, knowledge, and training.

"UpBrainery's skills-based training is delivered through the proprietary artificial intelligence-based technology, BrainLab," the company reports in a news release. "The blend of cutting-edge technology and skills training content provides an engaging experience for students delivered through TikTok-style videos, gamified learning, and augmented reality."

The agreement builds upon DODEA's vision of educating, engaging, and empowering military-connected student in order to ensure that "all school-aged children of military families are provided a world-class education that prepares them for post-secondary education and/or career success," the release continues.

Specific details on the partnership were not released.

Houston oncology company names new C-suite leader

Aravive Inc. has a new chief medical officer. Photo via Getty Images

A Houston-based late clinical-stage oncology company has a new C-level exec.

Aravive Inc. (Nasdaq: ARAV), which is developing targeted therapeutics to treat metastatic disease, announced its new chief medical officer, Dr. Robert B. Geller. A medical oncologist with over 30 years of drug development experience, Geller will lead all aspects of clinical and medical affairs, including commercialization preparedness and launch of novel therapeutics, according to a news release.

“I feel very fortunate and proud that I am able to join Aravive at this critical juncture, as the company nears key value inflection points,” says Geller in the release. “As a medical oncologist, I have devoted my career to caring for patients, and developing and commercializing new therapies for cancer patients. Based upon the clinical data to date on batiraxcept, I am convinced that batiraxcept has the potential to meet the high unmet medical needs of patients with advanced cancers, and potentially become a best-in-class medicine across a range of tumors, including ovarian, renal and pancreatic cancer, which require new treatment approaches.”

Geller was most recently senior vice president of medical affairs at California-based Coherus Biosciences. He's authored over 200 publications and abstracts and has served as reviewer for numerous medical journals.

Halliburton Labs has named its newest cohort — and opened applications for the next one. Photo courtesy of Halliburton

Houston clean energy lab names 4 new companies to program

new to the labs

Halliburton Labs has doubled the number of clean energy companies that are operating out of its facilities with the addition of its second cohort.

Four companies have been selected for the program, joining four existing member companies of Halliburton Labs, which originally launched last summer. The companies recently announced to the incubator are Alumina Energy, Ionada, Parasanti, and SurgePower Materials.

"We are excited to support and collaborate with this group of early-stage, clean energy companies as they continue their commercialization journey," says Dale Winger, managing director of Halliburton Labs, in a news release. "Each has demonstrated a commitment to accelerating their technologies, and we are eager to help them innovate, develop and scale each company."

The new companies join existing labs members Nanotech Inc, Enexor BioEnergy, Momentum Technologies, and OCO Inc. Nanotech was the first company to join the labs in August 2020, while the other three were added in February.

With the announcement of the new cohort, Halliburton is now accepting applications for its third cohort. Interested companies can apply via the website, and submissions are due by September 3, 2021.

Alumina Energy

Focusing on providing zero-carbon heat and power solutions, Santa Monica, California-based Alumina Energy has created a patented packed bed thermal energy storage technology that can make renewable energy resources a more reliable and cost competitive source of heat and power.

"We are very excited to join Halliburton Labs' cleantech accelerator program and collaborate with their experienced team to advance cleaner, affordable energy," says Sasha Braun Diamont, founder and CEO of Alumina Energy, in the release.

Ionada

Ionada is based in Ontario, Canada, and also has offices in London and Germany. The company has developed an exhaust gas cleaning systems that's designed to reduce emissions from the marine and power generation industries.

"We are receiving tremendous interest from industrial emitters around the world for modular carbon capture systems. Halliburton Labs' engineering, supply chain expertise and global network provide the ideal launching platform for us to scale our business to meet demand," says Edoardo Panziera, CEO of Ionada, in the release.

Parasanti

Headquartered in Austin, Parasanti is a tech company with software and hardware applications geared toward streaming analytics and production machine learning to enhance data analytics,

"Parasanti could not be more honored to be a part of the Halliburton Labs accelerator. With the domain expertise and wealth of knowledge that Haliburton Labs possesses, this accelerator will position Parasanti to leverage our edge hardware and software technologies to enable new artificial intelligence and machine learning solutions in the energy space," says Parasanti co-founders James Hancock and Joshua Seagroves in the release.

SurgePower Materials

San Marcos-based SurgePower Materials has developed a way to produce high-purity graphene from an abundant renewable raw material — a process that will allow for producing concrete, electronics, renewable energy, and batteries in a more sustainable way.

"Our goal is to make SurgePower Materials the key enabler of the forthcoming graphene age with plant-based graphene as an essential component of many new technologies. Our strategic collaboration with Halliburton Labs allows us to leverage their world-class engineering expertise to rapidly scale our production and accelerate the adoption of new graphene-based solutions," says Dr. Michael Opoku, CEO of SurgePower Materials, in the release.

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Houston e-commerce unicorn secures $130M in financing

scaling up

Houston-based Cart.com, which operates a multichannel commerce platform, has secured $105 million in debt refinancing from investment manager BlackRock.

The debt refinancing follows a recent $25 million series C extension round, bringing Cart.com’s series C total to $85 million. The scaleup’s valuation now stands at $1.2 billion, making it one of the few $1 billion-plus “unicorns” in the Houston area.

“Scaleup” refers to a startup that has achieved tremendous growth and has maintained a stable workforce, among other positive milestones. Airbnb, Peloton, and Uber are prime examples of businesses that evolved from startup to scaleup.

Cart.com says the new term loan facility from BlackRock consolidates its venture debt into one package “at competitive terms.” Those terms weren’t disclosed.

The company says the refinancing will enable it to expand into new markets and improve its technology, including its Constellation OMS order management system.

“Cart.com is one of the fastest-growing providers of commerce and logistics solutions today, and I’m excited to partner with BlackRock as we continue to aggressively invest to help our customers operate more efficiently,” Omair Tariq, the company’s founder and CEO, says in a news release.

Through a network of 14 fulfillment centers, Cart.com supports over 6,000 customers and 75 million orders per year.

"BlackRock is pleased to support Cart.com as it advances its mission to unify digital and physical commerce infrastructure," says Keon Reed, a director at BlackRock. “This latest facility underscores our confidence in the company’s differentiated product offerings and financial strategy as it enters its next stage of growth.”

Elon Musk says he's moving SpaceX, X headquarters from California to Texas

cha-cha-changes

Billionaire Elon Musk says he's moving the headquarters of SpaceX and social media company X to Texas from California.

Musk posted on X Tuesday that he plans on moving SpaceX from Hawthorne, California, to the company's rocket launch site dubbed Starbase in Texas. X will move to Austin from San Francisco.

He called a new law signed Monday by California Gov. Gavin Newsom that bars school districts from requiring staff to notify parents of their child’s gender identification change the “final straw.”

“I did make it clear to Governor Newsom about a year ago that laws of this nature would force families and companies to leave California to protect their children,” Musk wrote.

Tesla, where Musk is CEO, moved its corporate headquarters to Austin from Palo Alto, California in 2021.

Musk has also said that he has moved his residence from California to Texas, where there is no state personal income tax.

SpaceX builds and launches its massive Starship rockets from the southern tip of Texas at Boca Chica Beach, near the Mexican border at a site called Starbase. The company’s smaller Falcon 9 rockets take off from Cape Canaveral, Florida, and Southern California.

It’s just below South Padre Island, and about 20 miles from Brownsville.

Play it back: This Houston innovator is on a mission to develop tech for the moon

HOUSTON INNOVATORS PODCAST EPISODE 244

Editor's note: This week on the Houston Innovators Podcast, we’re revisiting a conversation with Tim Crain, the co-founder and CTO at Intuitive Machines, that originally ran in October of 2023.

If you haven't noticed, the moon is having a bit of a moment — and Tim Crain of Intuitive Machines is here for it.

For the past five or so years, NASA and the federal government have introduced and strengthened initiatives to support innovation of technology to be used to get to and explore the moon.

NASA, which is currently focused on its Artemis program that's sending four missions to the moon, also launched the Commercial Lunar Payload Services that's working with several American companies, including Intuitive Machines, to deliver science and technology to the lunar surface.

"Around 2018 or 2019, the moon came back into favor as a destination for American space policy, and it came back in such a way that there's a directive at the national level — at a level above NASA — to explore and develop the moon as a national priority," Crain says in the episode.



On the show, Crain explains the history of Intuitive Machines, which has taken an indirect path to where it is today. The company was founded in 2013 by Crain and co-founders CEO Steve Altemus and Chairman Kamal Ghaffarian as a space-focused think tank. Crain says they learned how to run a business and meet customers' needs and expectations, but they never fell in love with any of the early technologies and ideas they developed — from long-range drones to precision drilling technologies.

But the company answered NASA's call for moon technology development, and Intuitive Machines won three of the NASA contracts so far, representing three missions for NASA.

"We dipped our toe in the 'let's develop the moon' river and promptly got pulled all the way in," Crain says. "We left our think tank, broad, multi-sector efforts behind, and really pivoted at that point to focus entirely on NASA's CLPS needs. ... The timing really could not have been any better."

Since recording the podcast, Intuitive Machines celebrated a historic mission that landed the first lunar lander on the surface of the moon in over 50 years — and the first commercially operated mission ever. The company is also working on a $30 million project for NASA to develop lunar lander technology.

This week, Intuitive Machines announced a successful test result for engine technology to be used in the lunar lander project.