Nine Houston startups ended 2023 with a fundraise. Photo via Getty Images

Houston startups ended 2023 with a flurry of funding news — from several seeds and series As to series C rounds and extensions.

Here are nine Houston startups that secured funding in the fourth quarter of last year, according to reporting by InnovationMap. For further reading, here were 2023's top rounds raised.

Amperon Holdings Inc. closed its $20 million series B in October

It's payday for a startup that's improving analytics for its energy customers. Photo via Getty Images

A Houston startup has raised $20 million in its latest round of funding in order to accelerate its energy analytics and grid decarbonization technology.

Amperon Holdings Inc. announced today that it closed its series B round at $20 million. Energize Capital led the round and the D. E. Shaw group, Veriten, and HSBC Asset Management, an existing investor, joined in on the round. Additionally, two of Amperon's early customers, Ørsted and another strategic utility partner, participated in the series B, which brought Amperon’s total funding to $30 million.

“The energy transition is creating unprecedented market volatility, and Amperon is uniquely positioned to help market participants better navigate the transitioning grid – both in the U.S. and as we expand globally,” Sean Kelly, CEO and co-founder of Amperon, says in the release. Read more.

Velostics raised nearly $2M additional seed funding in October

Velostics has raised additional funding to grow its logistics software. Photo via velostics.com

A Houston company that's providing innovative unified scheduling software for the logistics industries has raised additional seed funding.

Houston-based Velostics Inc. raised $1.95 million, the company announced this week. The additional seed round follows a $2.5 million round announced in 2021. The Velostics platform optimizes scheduling for inbound and outbound trucks, saving companies money across the supply chain and resulting in fewer emissions from idling trucks.

“Scheduling is a major headache for all parties focused on reducing cost and delivering on high customer expectations — our cloud based solution is designed to go live in one day with no apps required,” Gaurav Khandelwal, founder and CEO of Velostics, says in a news release. Read more.

Konect.ai secured $5.5M seed funding in October

Konect.ai is using AI and natural language processing within the automotive retail industry. Image via Getty Images

A Houston startup that's using artificial intelligence and natural language processing to disrupt the retail automotive industry has raised seed funding.

Konect.ai announced a $5.5 million seed investment from Austin-based Silverton Partners. The funding will support the company's development of its software, which hopes to advance communications between auto dealerships and auto tech companies and customers.

"This investment from Silverton Partners is a strong validation of our vision and the hard work of our talented team. With this support, we are poised to accelerate our growth and continue to innovate, bringing the most advanced conversational AI products to the automotive retail industry," Cole Kutschinski, president and CEO of Konect.ai, says in a news release. Read more.

Graylog closed $9M in a series C extension round and $30M in financing in October

Graylog, a Houston SaaS company, has new fuel to scale and develop its product. Photo via Getty Images

A Houston software-as-a-service company has secured $39 million in financing and announced its latest upgrade to its platform.

Graylog, which has created an innovative platform for cybersecurity and IT operations, raised equity funding with participation from new investor Silver Lake Waterman and existing investors Piper Sandler Merchant Banking and Harbert Growth Partners leading the round.

“The growth we are seeing globally is a response to our team’s focus on innovation, a superior user experience, low total cost of ownership, and strong execution from our Go-To-Market and Customer Success teams,” Andy Grolnick, CEO of Graylog, says in a news release. “We expect this momentum to continue as Graylog expands its reach and raises its profile in the security market.” Read more.

RepeatMD raised $50M series A in November

Fresh off a win at the Houston Innovation Awards, RepeatMD has raised funding. Photo by Emily Jaschke/InnovationMap

Just nine months after its seed round, a Houston startup with a software platform for the aesthetic and wellness industry has secured $40 million in venture capital and $10 million in debt facility.

RepeatMD, a SaaS platform, announced today that it's secured $50 million, which includes a $10 million debt facility from Silicon Valley Bank. The round was co-led by Centana Growth Partners and Full In Partners with participation from PROOF and Mercury Fund, which also contributed to the seed round earlier this year.

“Even though the aesthetics and wellness industry has continued to innovate a growing range of life-changing treatments, practices continue to face challenges selling treatments and services that are new and unfamiliar to patients,” Phil Sitter, CEO of RepeatMD, says in the release. Read more.

Kahuna Workforce Solutions secures $21M series B in November

Kahuna Workforce Solutions, which provides HR software solutions, announced it has closed a $21 million series B. Photo via Getty Images

A Houston company with a software platform to enhance skills management operations has raised its series B.

Kahuna Workforce Solutions announced it has closed a $21 million series B funding round led by Baltimore-based Resolve Growth Partners. Kahuna's platform provides its users — which come the from health care, energy, field service, and manufacturing industries — with effective assessment, training and development, and staffing and deployment initiatives.

“We are thrilled to work with Resolve as Kahuna begins the next growth phase. Their expertise in enterprise software, and commitment to innovation and continuous improvement fully aligns with our mission, vision, and goals for Kahuna,” Jai Shah, CEO of Kahuna Workforce Solutions, says in a news release. Read more.

Allganize closed $20 million series B in November

Allganize recently closed a $20 million series B round of funding, bringing its total amount raised to $35 million. Graphic via allganize.ai

A Houston tech startup with an artificial intelligence technology has announced it's raised two rounds of funding as it plans to continue developing its product and IPO in Japan.

Allganize recently closed a $20 million series B round of funding, bringing its total amount raised to $35 million, according to the company. Allganize developed Alli, an all-in-one platform for enabling large language models, that's used by over 200 enterprise and public companies globally, including Sumitomo Mitsui Banking Corporation, Nomura Securities, Hitachi, Fujitsu, and KB Securities.

"This investment accelerates our journey towards global expansion and achieving a milestone of listing on the Japanese stock exchange by 2025," Changsu Lee, CEO of Allganize, says in a news release. Read more.

EndoQuest Robotics Inc. announced $42 million series C in December

Houston-based EndoQuest has closed a $42 million round. Photo via Getty Images

A Houston medical device company that's tapping into robotics technology for the operating room has just announced a major chunk of fresh funding.

EndoQuest Robotics Inc. announced that it has closed a $42 million series C to advance its robot technology that's targeting endoluminal and gastrointestinal minimally invasive procedures. Returning investors, CE Ventures Limited and McNair Interests, and new investor, Puma Venture Capital, led the round of funding.

"Our investors share our vision of leveraging robotics to redefine the possibilities in minimally invasive procedures," Kurt Azarbarzin, CEO of EndoQuest Robotics, says in a press release. Read more.

Digital Wildcatters announced $2.5M seed in December

Digital Wildcatters just raised $2.5 million in funding. Image courtesy

With $2.5 million in fresh funding, Digital Wildcatters is on its way to keep empowering the evolving energy workforce.

Digital Wildcatters, a Houston company that's providing a community for the next generation of energy professionals, has closed its seed plus funding round at $2.5 million. The round by energy industry veteran Chuck Yates, who also hosts his podcast "Chuck Yates Needs a Job" on the Digital Wildcatters' podcast network.

"Our industry's survival depends on recruiting the next generation of energy workers. We must adapt to their digital, content-rich world, as we currently lag behind, like a VHS tape in a Netflix world. Digital Wildcatters is our path to modernization," Yates says. Read more.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Houston sportstech startup shoots, scores in Pharrell Williams competition

on the rebound

Anyone who's witnessed even just a minute of basketball knows how important accuracy is in sinking shots on the court. One Houston startup has developed a device to help practice make perfect in a game.

GRIND’s portable basketball shooting machine, the first of its kind, was created by founder and CEO Thomas Fields, former basketball phenom at Houston’s Reagan High School (now Heights High School).

“I remember being on varsity as a freshman and shooting thousands of shots every day trying to be the best,” says Fields. “My school bought a shooting machine, but they never let me use it. It was a game-changing piece of equipment, and I didn’t even have access because the gyms were always closed or closing.

“And another major problem was getting your rebounds, so we set out to make a portable basketball rebounding machine, so you could take it anywhere like home, the park, or the gym. It was also important to make it affordable, too.”

The GRIND shooting machine is available online. Photo via grindbasketball.com

At just 110 pounds, the GRIND shooting machine is 54 percent lighter than other home shooting machines, has a 12-foot net, and needs just 90 seconds to set up or take down.

“Our portable shooting machine has been on the market for about three, four years now,” says Fields. “So now it's time to kind of accelerate the growth, and that’s pretty exciting. We really have our sights on NBA Africa for a partnership there. Another one is Adidas; we are collaborating with them right now and they're also one of the sponsors of Black Hat Mission. And hopefully, we would like to land some NBA guys to invest and really get behind our sportstech company, but also make a significant impact in the community by getting kids into tech through sports.”

To that end, GRIND recently won second place in a competition from Black Ambition, an organization founded by Pharrell Williams. With the tagline, “Uninterrupted ambition. Unmatched impact,” the Black Ambition Prize celebrates underrepresented founders globally.

“When I initially heard of Black Ambition, I just kind of heard that Pharrell had started a venture fund aimed at uplifting black and brown entrepreneurs,” says Fields. “And when I read more about it, I realized that their mission perfectly aligned with GRIND. Our goal is to try to get kids into tech and STEM, but use sports as the conduit and the bridge to get them there.

“We applied for the million-dollar cash prize for first place, but took second place, which is a $250,000 investment in the company. So now that Pharrell and Black Ambition are behind us, we are going out and raising some more capital to hit that hyper stage that we're going into. We are launching our software next year and our hardware has really been growing.”

Fields pitched GRIND on Shark Tank in May of 2021, where he was offered a joint deal for $250,000 for 25 percent of the company from both Mark Cuban and Barbara Corcoran. While Fields agreed on the show, the finalized terms of the deal were not disclosed.

- YouTubeThomas Fields is seeking $250000 for a 5% stake of GRIND. From Season 12 Episode 23 Watch Now: ...

As a startup, GRIND, a consumer brand developing the world’s first smart ecosystem of sports equipment products, represents the continued uptick with sportstech innovation in Houston.

“We want to revolutionize the world of sports equipment by leveraging cutting edge technology by developing sports equipment that can seamlessly connect to software, enhancing athletic performance, and pushing athletes to achieve their peak potential,” Fields says.

As GRIND continues to push forward and expand its footprint, it’s also looking to expand its customer base.

“I think the target users are middle school and high school athletes,” says Fields. “These are the kids that are striving to be great athletes and striving to get into college. We also have colleges that have our product, as well. But mostly, the customer is the parents of those athletes. That's really who we're trying to get excited.

“And then, of course, there are the coaches and trainers. They own gyms; they own organizations and need equipment for their schools and universities. That's another target customer of ours for sure.”

Ultimately, GRIND will continue to build on Fields’ initial inspiration to design products and technologies with the athletes — especially hoopers — in mind.

“Our goal in the next few years is to really amp up the scholarships that we facilitate to funnel kids into STEM tech careers and pathways,” says Fields. “GRIND Day, which is a proclamation the City of Houston gave us for August 12 each year, is a day where we bring sports, tech, and culture all under one umbrella. Kids see us using 3D printers and lasers to cut the products that we make in our warehouse, which is in an underserved community, which hopefully makes them think it’s cool and want to get into technology.”

Houston airport cut traffic congestion by 99 percent during peak travel season

A Soaring Improvement

Years of physical improvements and other initiatives paid off this holiday season at George Bush Intercontinental Airport (IAH). Despite seeing a record number of flyers, traffic congestion at the airport dropped by an astounding amount.

“Our goal was to deliver a seamless journey during one of the busiest travel seasons of the year,” said Jim Szczesniak, director of aviation for Houston Airports. “The results show that our investments in infrastructure, technology and customer service are paying off. We are proud of our team and the traveling public for working together to make this holiday season a success. Our coordinated efforts between Houston Airports and Houston Police kept traffic flowing smoothly at our departure curbs while passengers followed instructions and used cell phones lots effectively. These efforts, paired with infrastructure improvements like the new International Arrivals Curb and expanded Terminal C garage entrance, demonstrate our commitment to delivering world-class service and efficiency.”

The holiday flying season officially lasts from December 20 to January 6. Data from Houston airports shows that between December 20 and December 30, 1.7 million passengers passed through IAH, a 21 percent increase over the same period in 2023. However, the number of heavy traffic periods fell 90 percent and periods of severe traffic fell 99 percent. To put it another way, passengers at IAH spent 4.4 hours in severe traffic during Christmas 2023. This past Christmas, it was just 2 minutes, an astounding reduction.

This was accomplished with the long-awaited new IAH International Arrivals Curb, which opened for public use on December 14. The new arrivals curb features seven lanes for dedicated drop-off and pick-up, greatly increasing the places for passengers to enter and exit the airport. IAH also opened the previously closed entry roadway lane before Thanksgiving, further reducing traffic snarl.

For those leaving their cars at the airport, a new cashless, automated system was built at HAS garages and ecoparks. New curbside agents were also hired, and Houston police helped direct traffic during the stressful and busy time.

“Our focus is always on providing a safe, stress-free experience,” said Kelly Woodward, chief operating officer for Houston Airports. “These upgrades allowed us to accommodate record passenger numbers while keeping traffic flowing. It’s a win for travelers and our city.”

IAH will continue to improve in 2025 as the new International Central Processor terminal comes fully online. As IAH becomes one of the main Gateways to Latin and South America, it will continue to serve the increasing number of flyers heading south of the border. Some time in 2025, 11 new lanes will open on the upper level, keeping traffic moving briskly.

---

This story originally appeared on our sister site, CultureMap.com.

Houston construction tech tool acquires Y Combinator-backed co.

M&A moves

A Houston-based platform that connects skilled electricians with top electrical contractors has made a strategic acquisition.

Buildforce announced it has acquired Ladder, which is a Y Combinator-backed, technology-enabled construction labor marketplace.

The acquisition is part of Buildforce’s expansion plans into the southeastern U.S. and during a time of increased demand for skilled construction talent. Buildforce will work to leverage the Ladder customer base of over 200 customers across six states, as well as its extensive electrician network of over 10,000 pre-screened electricians, which is the largest in the Southeast.

In addition to expanding to Georgia with the Ladder acquisition, Buildforce launched in Arizona in October and will expand into several additional high-construction volume states in 2025. Also in October, Buildforce launched an easier product to manage a flexible time approval process with its Activity Log and Comments for Time Entries update. Contractors in these regions will be introduced to a more “integrated, technology-driven approach to talent acquisition and workforce management that drives efficiency and delivers higher quality project outcomes,” according to Buildforce.

“There are two major problems plaguing the construction labor market,” Moody Heard, co-founder and CEO of Buildforce, says in a news release. “One, the project-based nature of construction work means tradesmen are constantly ‘working themselves out of a job’, meaning high employee turnover. And two, the industry is experiencing a secular decline in the supply of tradesmen relative to surging demand.”

Ladder Founder and CEO Alex Stewart will continue on in a leadership role as a senior executive with Buildforce.

"I am incredibly excited to join the Buildforce team to further its expansion into new markets, while staying true to its mission of helping people in the construction trades find more security and fulfillment,” Stewart said in a news release. “Buildforce is at the forefront of workforce management for the construction industry, and I look forward to working with Moody and the rest of the talented Buildforce team to drive the business towards continued growth.”

Buildforce was founded in 2019 to help close the gap in the construction labor market that affected skilled tradespeople and contractors. In 2021, the company raised a $4 million round backed by Houston-based Mercury.