Pat Matthews of Active Capital visited Houston with a collaboration with the HX Venture Fund. Photo courtesy of Active Capital

When Houston Exponential established the HX Venture Fund, the goal was to bring out-of-town capital and investors into the city of Houston. The fund of funds invests in a portfolio of venture capital funds with the hope that those funds find a way back into the Houston startup ecosystem.

After a little over a year, HXVF has invested in five funds: Boston-based .406 Ventures, Austin-based Next Coast Ventures, Boston-based OpenView Venture Partners, Washington D.C.-based Updata Partners, and Austin-based LiveOak Venture Partners.

The fund of funds is also regularly hosting those five funds — as well as a mix of potential portfolio fund members — in Houston for what the HXVF calls "immersion days" where the venture capitalists can meet local startups, innovation leaders, and even fellow investors that they could eventually co-invest with.

"The goals of these days are to have venture capitalists travel to Houston, meet with our entrepreneurs (and the startup development organizations like Station, Cannon and WeWork that support them), and provide both capital and expertise in company building to the tech companies," says Sandy Guitar Wallis, managing partner at HXVF. "The venture capitalists also meet with HX Venture Fund corporate LPs, who can be customers or acquirers of their portfolio companies."

Just this month alone, HXVF is hosting four funds — two from their portfolio and two that they haven't yet invested in. San Antonio-based Active Capital, which has raised a $21 million fund, is among the visiting VCs this month. The fund's founder, Pat Matthews, an entrepreneur turned venture capitalist, has shared his busiest day — February 5 — as well as his perspective on Houston innovation with InnovationMap.

A morning too busy for breakfast

After waking up at the Hotel Derek, Matthews starts his second day in Houston by taking a Lyft to the Greater Houston Partnership for what he believes to be a breakfast meeting with Wallis and Guillermo Borda of HXVF, but the group has too much to discuss that a meal falls by the wayside.

Before this trip, Matthews hasn't visited Houston in a professional capacity. While Active Capital is based just down I10 in San Antonio, the firm's investments are split almost in half by deals done in Texas versus the rest of the world. Active Capital focuses on B2B SaaS investments — usually leading — in seed or series A rounds.

Matthews has called Texas home for around a decade. He founded an email marketing startup in Virginia, which was acquired by San Antonio-based Rackspace. He relocated to join Rackspace and worked on growing the organization for six years before creating Active Capital.

Following the meeting — still unfed, Matthews meets up with Serafina Lalany from Houston Exponential to carpool to The Cannon on the west side of town.

Loading up on carbs and fireside chats

Matthews forgoes his usual carb aversion to eat slices of Domino's pizza at The Cannon before beginning his first of three fireside chats with Houston innovators. Patrick Schneidau, CEO of Truss, leads the conversation at The Cannon. (Schneidau is a board member of InnovationMap's.) After the chat, Matthews has a meeting with a startup before heading back into town.

With one fireside chat down, Matthews heads into his second one of the day at Station Houston with Joe Alapat, founder of Liongard. Matthews observes that each of the entrepreneurs who interviewed him had great questions, and seemed to be far along with their companies. Meanwhile, any of the people he met before or after the chat seemed to be at a much earlier stage in their startup journey.

The last fireside chat was hosted by Rakesh Agrawal of Snapstream at WeWork's Jones Building location. Matthews and Agrawal attempted to set up a Facebook livestream for the conversation, but an issue with the technology wouldn't allow for the stream.

An evening of good food and great mentorship

With meetings and fireside chats done, Matthews heads straight to a dinner with Blair Garrou, founder and managing director of Mercury Fund. The two venture capitalists dine at Eunice and split several appetizers and a bottle of wine while discussing their own recent investments and interests. Matthews, who met Garrou in 2014, thinks of him as a great mentor in venture capital.

Matthews headed back to the hotel after dinner and crashes hard after the long day. He would head back to San Antonio on a Vonlane bus — he gets a lot of work done on his trips — the next day.

What's next for Active Capital and Houston?

Matthews says he left Houston with an overall positive opinion of the city, and says it's similar to other Texas cities, aside from Austin, in its startup presence and capacity. While he assumed he'd meet energy and space startups, he realized Houston had a lot more going on than that.

"It definitely seemed like there was a lot of passion and a lot of hustle," Matthews says. "And it seems like the city is really working to support and cultivate that and keep it in Houston. I was inspired."

Throughout the visit, Matthews handed out his business card and some conversations have developed from those connections, he says. Another representative from Active Capital who is focused on sourcing deals with startups will visit next, and Matthews says he also thinks that he'll return to Houston to continue conversations he's been having, including some with other investors.

"I could definitely see doing deals in Houston," Matthews tells InnovationMap.

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Houston wearable biosensing company closes $13M pre-IPO round

fresh funding

Wellysis, a Seoul, South Korea-headquartered wearable biosensing company with its U.S. subsidiary based in Houston, has closed a $13.5 million pre-IPO funding round and plans to expand its Texas operations.

The round was led by Korea Investment Partners, Kyobo Life Insurance, Kyobo Securities, Kolon Investment and a co-general partner fund backed by SBI Investment and Samsung Securities, according to a news release.

Wellysis reports that the latest round brings its total capital raised to about $30 million. The company is working toward a Korea Securities Dealers Automated Quotations listing in Q4 2026 or Q1 2027.

Wellysis is known for its continuous ECG/EKG monitor with AI reporting. Its lightweight and waterproof S-Patch cardiac monitor is designed for extended testing periods of up to 14 days on a single battery charge.

The company says that the funding will go toward commercializing the next generation of the S-Patch, known as the S-Patch MX, which will be able to capture more than 30 biometric signals, including ECG, temperature and body composition.

Wellysis also reports that it will use the funding to expand its Houston-based operations, specifically in its commercial, clinical and customer success teams.

Additionally, the company plans to accelerate the product development of two other biometric products:

  • CardioAI, an AI-powered diagnostic software platform designed to support clinical interpretation, workflow efficiency and scalable cardiac analysis
  • BioArmour, a non-medical biometric monitoring solution for the sports, public safety and defense sectors

“This pre-IPO round validates both our technology and our readiness to scale globally,” Young Juhn, CEO of Wellysis, said in the release. “With FDA-cleared solutions, expanding U.S. operations, and a strong AI roadmap, Wellysis is positioned to redefine how cardiac data is captured, interpreted, and acted upon across healthcare systems worldwide.”

Wellysis was founded in 2019 as a spinoff of Samsung. Its S-Patch runs off of a Samsung Smart Health Processor. The company's U.S. subsidiary, Wellysis USA Inc., was established in Houston in 2023 and was a resident of JLABS@TMC.

Elon Musk vows to launch solar-powered data centers in space

To Outer Space

Elon Musk vowed this week to upend another industry just as he did with cars and rockets — and once again he's taking on long odds.

The world's richest man said he wants to put as many as a million satellites into orbit to form vast, solar-powered data centers in space — a move to allow expanded use of artificial intelligence and chatbots without triggering blackouts and sending utility bills soaring.

To finance that effort, Musk combined SpaceX with his AI business on Monday, February 2, and plans a big initial public offering of the combined company.

“Space-based AI is obviously the only way to scale,” Musk wrote on SpaceX’s website, adding about his solar ambitions, “It’s always sunny in space!”

But scientists and industry experts say even Musk — who outsmarted Detroit to turn Tesla into the world’s most valuable automaker — faces formidable technical, financial and environmental obstacles.

Feeling the heat

Capturing the sun’s energy from space to run chatbots and other AI tools would ease pressure on power grids and cut demand for sprawling computing warehouses that are consuming farms and forests and vast amounts of water to cool.

But space presents its own set of problems.

Data centers generate enormous heat. Space seems to offer a solution because it is cold. But it is also a vacuum, trapping heat inside objects in the same way that a Thermos keeps coffee hot using double walls with no air between them.

“An uncooled computer chip in space would overheat and melt much faster than one on Earth,” said Josep Jornet, a computer and electrical engineering professor at Northeastern University.

One fix is to build giant radiator panels that glow in infrared light to push the heat “out into the dark void,” says Jornet, noting that the technology has worked on a small scale, including on the International Space Station. But for Musk's data centers, he says, it would require an array of “massive, fragile structures that have never been built before.”

Floating debris

Then there is space junk.

A single malfunctioning satellite breaking down or losing orbit could trigger a cascade of collisions, potentially disrupting emergency communications, weather forecasting and other services.

Musk noted in a recent regulatory filing that he has had only one “low-velocity debris generating event" in seven years running Starlink, his satellite communications network. Starlink has operated about 10,000 satellites — but that's a fraction of the million or so he now plans to put in space.

“We could reach a tipping point where the chance of collision is going to be too great," said University at Buffalo's John Crassidis, a former NASA engineer. “And these objects are going fast -- 17,500 miles per hour. There could be very violent collisions."

No repair crews

Even without collisions, satellites fail, chips degrade, parts break.

Special GPU graphics chips used by AI companies, for instance, can become damaged and need to be replaced.

“On Earth, what you would do is send someone down to the data center," said Baiju Bhatt, CEO of Aetherflux, a space-based solar energy company. "You replace the server, you replace the GPU, you’d do some surgery on that thing and you’d slide it back in.”

But no such repair crew exists in orbit, and those GPUs in space could get damaged due to their exposure to high-energy particles from the sun.

Bhatt says one workaround is to overprovision the satellite with extra chips to replace the ones that fail. But that’s an expensive proposition given they are likely to cost tens of thousands of dollars each, and current Starlink satellites only have a lifespan of about five years.

Competition — and leverage

Musk is not alone trying to solve these problems.

A company in Redmond, Washington, called Starcloud, launched a satellite in November carrying a single Nvidia-made AI computer chip to test out how it would fare in space. Google is exploring orbital data centers in a venture it calls Project Suncatcher. And Jeff Bezos’ Blue Origin announced plans in January for a constellation of more than 5,000 satellites to start launching late next year, though its focus has been more on communications than AI.

Still, Musk has an edge: He's got rockets.

Starcloud had to use one of his Falcon rockets to put its chip in space last year. Aetherflux plans to send a set of chips it calls a Galactic Brain to space on a SpaceX rocket later this year. And Google may also need to turn to Musk to get its first two planned prototype satellites off the ground by early next year.

Pierre Lionnet, a research director at the trade association Eurospace, says Musk routinely charges rivals far more than he charges himself —- as much as $20,000 per kilo of payload versus $2,000 internally.

He said Musk’s announcements this week signal that he plans to use that advantage to win this new space race.

“When he says we are going to put these data centers in space, it’s a way of telling the others we will keep these low launch costs for myself,” said Lionnet. “It’s a kind of powerplay.”

Johnson Space Center and UT partner to expand research, workforce development

onward and upward

NASA’s Johnson Space Center in Houston has forged a partnership with the University of Texas System to expand collaboration on research, workforce development and education that supports space exploration and national security.

“It’s an exciting time for the UT System and NASA to come together in new ways because Texas is at the epicenter of America’s space future. It’s an area where America is dominant, and we are committed as a university system to maintaining and growing that dominance,” Dr. John Zerwas, chancellor of the UT System, said in a news release.

Vanessa Wyche, director of Johnson Space Center, added that the partnership with the UT System “will enable us to meet our nation’s exploration goals and advance the future of space exploration.”

The news release noted that UT Health Houston and the UT Medical Branch in Galveston already collaborate with NASA. The UT Medical Branch’s aerospace medicine residency program and UT Health Houston’s space medicine program train NASA astronauts.

“We’re living through a unique moment where aerospace innovation, national security, economic transformation, and scientific discovery are converging like never before in Texas," Zerwas said. “UT institutions are uniquely positioned to partner with NASA in building a stronger and safer Texas.”

Zerwas became chancellor of the UT System in 2025. He joined the system in 2019 as executive vice chancellor for health affairs. Zerwas represented northwestern Ford Bend County in the Texas House from 2007 to 2019.

In 1996, he co-founded a Houston-area medical practice that became part of US Anesthesia Partners in 2012. He remained active in the practice until joining the UT System. Zerwas was chief medical officer of the Memorial Hermann Hospital System from 2003 to 2008 and was its chief physician integration officer until 2009.

Zerwas, a 1973 graduate of the Houston area’s Bellaire High School, is an alumnus of the University of Houston and Baylor College of Medicine.