Overheard: Here's what experts say on the future of startup investment in Houston

eavesdropping in houston

Venture Houston brought together key innovators and investors focused on Houston — here's what they said. Photo via Getty Images

Last week, over 2,500 people registered to Venture Houston to talk about startups and venture capital in Houston for two full days.

The two-day conference, which was put on by HXVF, the Houston Angel Network, the Rice Alliance, and Houston Exponential, took place February 4th and 5th and brought together startups, investors, corporations, and anyone who cares to advance the Houston tech ecosystem.

Click here to see what companies won big in the event's startup pitch competition.

Throughout the various panels and keynote addresses, Houston innovation leaders sounded off on what the future of Houston looks like in terms of venture activity. Missed the discussion or just want a refresher on on the highlights? Here are some significant overheard moments from the virtual conference.

“The way I look at it, Houston has an opportunity to really emerge as one of the leading startup cities in the country.”

— Steve Case, chairman and CEO of Revolution Ventures and co-founder of AOL.

He makes a reference to the iconic line "Houston, we have a problem" — which now is defined by a time of opportunity. Case adds that his VC fund, Revolution, which has invested in Houston-based GoodFair, is looking for new investments in Houston.

“We were behind. We were slow to start, but in typical Houston fashion, now we are escalating with real momentum."

— Amy Chronis, Houston managing partner of Deloitte and 2021 Greater Houston Partnership board chair.

Chronis notes on the fact that VC activity in Houston is up 250 percent since 2016, and in that time the city has focused on diversifying its business. Now, the city touts its active corporate community, global diversity, and more.

"In Houston, companies and talent are looking at ways to change the world," she adds.

“I see there being a significant amount of seed capital taking off.”

— Stephanie Campbell, managing director of the Houston Angel Network and The Artemis Fund.

Campbell calls out new funds to Houston, like Golden Section Ventures and her own fund, Artemis. She adds that with over $700 million invested in Houston deals last year, the city is in a good place, and she is anticipating more angel activity.

"While this is really exciting progress, there's still a lot of work to be done in terms of seed and early-stage funding," she continues.

“I see there being billion-dollar venture funds here in Houston on the life science front over the next decade.”

— John "JR" Reale, managing director of Integr8d Capital.

Reale, who's also the executive in residence at TMC Innovation, says he's seen the growth and potential of the life science industry in Houston.

"You can see the intentionality of the infrastructure that's being built that's going to attract diverse founders and all talent," he says.

“What I really see is the trajectory for Houston has been changing over the last couple years.”

— Brad Burke, managing director for the Rice Alliance for Technology and Entrepreneurship.

Burke points to three things that have really moved the needle on Houston's progress as an innovative city. The first was the Texas Medical Center establishing its Innovation Institute a few years back, and the next is how Houston's top energy companies are making big moves to support the energy transition. Finally, he says, The Ion, which is set to open this year, is the third reflection point for progress.

“The Houston startup scene is a very special place. It’s a community I actively choose to be a part of, and it activates me every day.”

— Rakesh Agrawal, CEO and founder of SnapStream.

“We’ve got a really incredible story to tell.”

— Susan Davenport, senior vice president of economic development for the GHP.

Davenport adds that this is exactly what the GHP is doing — making Houston's story known. And she says they have talked to global business leaders and they describe the city as a modern, cosmopolitan, truly global city.

From M&A action to the development of Houston's innovation corridor, these are five Houston innovators to keep an eye on in 2020. Courtesy photos

5 Houston innovators to know in 2020

Who's who

For so many Houston innovators, 2020 will be a year of growth, execution, proof of concept, piloting, pivoting, fundraising, and more.

It's hard to narrow down the list of movers and shakers in Houston innovation, but a few have stood out for making waves in the new year. From M&A action to the development of Houston's innovation corridor, these are five Houston innovators to keep an eye on in 2020.

Rakesh Agrawal, founder and CEO of SnapStream

Photo courtesy of SnapStream

This past year has been good to SnapStream, but it's only the beginning of the company's next growth phase. The software company's technology allows its clients to easily record, search, and share video and broadcast content and has attracted clients from the likes of Saturday Night Live and Last Week Tonight.

In 2019, the company was named the transition partner for Volicon Observer, a company Verizon brought under its umbrella and then changed its mind about, Rakesh Agrawal, CEO of SnapStream, explains on an episode of the Houston Innovators Podcast. Volicon's specialty is in monitoring and compliance, and with that move, SnapStream brought on around 150 new clients. To maintain those clients and grow its services, SnapStream has rolled out a whole new department. The launch of SnapStream Monitoring and Compliance is the next step for SnapStream's takeover of Volicon, according to a news release.

The M&A activity sparked a move to hire and expand the SnapStream team as the division grows throughout 2020.

Allison Thacker, president of the Rice Management Company

Natalie Harms/InnovationMap

Houston has its eyes on The Ion, a 270,000-square-foot building innovation center being developed in the former Sears building in Midtown. Behind the project is the Rice Management Company, which is led by Allison Thacker, president of the organization.

The Ion broke ground in May, and also named its operations leader, Gabriella Rowe, CEO of Station Houston earlier this year. While the project isn't expected to deliver until 2021, next year will likely entail determining a few key things about The Ion and the surrounding innovation corridor Rice Management and the city will be developing.

The Houston Coalition for Equitable Development without Displacement, a newly formed organization, has recently expressed its concerns with the development of the property in the historic Third Ward. The community organization wants Rice Management and all parties involved with the innovation corridor to agree to a Community Benefits Agreement, which would protect local residents and provide positive initiatives for growth. The CBA is expected to be arranged in 2020 as the project moves forward.

Andrew Bruce, founder and CEO of Data Gumbo

Photo courtesy of Data Gumbo

Another Houston company that plans to grow throughout 2020 is Data Gumbo. The blockchain-as-a-service company has raised some significant funds — a $6 million series A round closed in May — and will be putting that money to work by expanding the company's footprint and services.

Earlier this year, the company announced its entrance into the construction industry — Andrew Bruce, CEO of Data Gumbo, says in a recent episode of the Houston Innovators Podcast that the funds will also take Data Gumbo to new global markets, including the Middle East.

"The whole thing for us is building this blockchain network of interconnected companies," Bruce says. "The more companies that are a part of that network, the more value that network has."

Payal Patel, director of corporate partnerships at Plug and Play Tech Center in Houston

Courtesy of Payal Patel

San Francisco-based Plug and Play Tech Center quickly established its new energy-focused Houston location — from announcing its entrance into the market in June to hiring its director of corporate partnerships, Payal Patel, in September. The first cohort of portfolio companies were named in October, and several new Houston partner corporations have been announced as well.

Next year, the local team is expected to grow and is currently hiring for a few positions, as well as announce its office space in town. Patel, specifically, will spearhead the initiatives to grow the organizations already impressive list of corporate partners.

"[Plug and Play ha] great Fortune 500 corporate partners, they work and know the best tech startups all over the world, and they have a strong investment capability," Patel previously told InnovationMap. "I'm excited that those resources and capabilities are coming to Houston."

Travis Parigi, CEO of LiquidFrameworks

Courtesy of LiquidFrameworks

Travis Parigi has always been the one to write the code for his company's software technology, but now, he's in acquisition mode thanks to new support from private equity. Last January, LiquidFrameworks entered into a partnership with private equity firm, Luminate Capital. The new financial partner has opened doors for Parigi, CEO of LiquidFrameworks, and the company as a whole — including putting merger and acquisition activity on the table.

The company has grown its team and even moved to a bigger space in Greenway Plaza. LiquidFrameworks, which has created a suite of software solutions for upstream and downstream oil and gas companies called FieldFX, is also working on key updates and new features for its software.

This week's innovators to know in Houston all have new and exciting things to announce. Courtesy photos

3 Houston innovators to know this week

who's who

Who are Houston's innovators to know? Well this week, here's who made headlines, from a well-known Houston software entrepreneur and investor rolling out a new line of business for his company to a new podcast network with Houston roots.

Gabriella Rowe, executive director of operations at The Ion

ION Accelerator ribbon cutting event, with Mayor Sylvester Turner and business partners.

Photo by Carter Smith/Station Houston

The entrepreneurial hub dubbed the Ion that's expected to premiere in Houston's innovation district in 2021 has a new operating organization and the Rice Management Company has tapped Station Houston CEO Gabriella Rowe to run it.

"To ensure that The Ion is a catalyst for the continued growth of the innovation ecosystem, we've been collaborating with Gaby and her team as well as civic leaders, Mayor Sylvester Turner, Harris County commissioners and Midtown Houston," says Allison Thacker, president and chief investment officer of the RMC, in a news release. "We know that under Gaby's leadership The Ion will become an innovation hub for not only all Houstonians, but for anybody looking to thrive and collaborate in an entrepreneur-first, tech-forward environment." Read more.

Rakesh Agrawal, founder and CEO of SnapStream

Photo courtesy of SnapStream

Houston-based SnapStream has expanded its services, and CEO and Co-founder Rakesh Agrawal appears on the third episode of the Houston Innovators Podcast to discuss his company's growth and the role he plays in the Houston innovation ecosystem.

"A lot of people go to this question of, 'What's wrong with the Houston ecosystem?' If there's anything that's a fundamental characteristic of Houston that we need to change that would really help the startup and innovation ecosystem is that often in Houston, the left hand doesn't know what the right hand is doing," Agrawal says on the podcast. Read more.

Stephanie Wittels Wachs, co-founder of Lemonada Media

Photo via Twitter

It's safe to say that Stephanie Wittels Wachs didn't have start and run a podcast network in her life's master plan. Nonetheless, the Houstonian can check that box after she launched Lemonada Media with her business partner, Jessica Cordova Kramer. The network is about creating provoking, uncensored content about life and humanity.

​"This is everything I've done in my whole life," she tells InnovationMap. "It sort of combines my writing and my education background and my artistic background and some voiceover background and my activism. It's everything." Read more.

Houston-based SnapStream's CEO, Rakesh Agrawal, is the third guest on the Houston Innovators Podcast. Courtesy of SnapStream

Software entrepreneur, investor announces new service and shares why he's bullish on Houston innovation

Houston innovators podcast episode 3

With a couple decades in the Houston innovation ecosystem under his belt, Rakesh Agrawal considers himself an optimist about his city.

Agrawal founded his company SnapStream — a software company that allows its clients to easily record, search, and share video and broadcast content — in 2000 and has gone on to not only grow and expand the company, but also create a portfolio of software startups as an investor.

In the third episode of the Houston Innovators Podcast, Agrawal shares how he's seen the city's innovation ecosystem evolve to what it is today — admittedly, he has a very positive outlook on the city. However, if he had to identify something Houston needs to work on, its communication.

"A lot of people go to this question of, 'What's wrong with the Houston ecosystem?' If there's anything that's a fundamental characteristic of Houston that we need to change that would really help the startup and innovation ecosystem is that often in Houston, the left hand doesn't know what the right hand is doing," Agrawal says on the podcast.

Agrawal says that one of the indicators of the city's success in cultivating startups is his own portfolio. About a quarter of the companies he's invested in are based in Houston.

Recently, Agrawal pulled back some of his investing activity to focus on SnapStream. The company was named the transition partner for Volicon Observer, a company Verizon brought under its umbrella and then changed its mind about, Agrawal explains in the episode.

Volicon's specialty is in monitoring and compliance, and with that move, SnapStream brought on around 150 new clients. To maintain those clients and grow its services, SnapStream has rolled out a whole new department. The launch of SnapStream Monitoring and Compliance is the next step for SnapStream's takeover of Volicon, according to a news release.

"The SnapStream Monitoring and Compliance launch builds on our depth of experience and extends SnapStream into an exciting new market," says Agrawal in the release. "The amazing SnapStream team is what differentiates us — from our engineers, who build user experiences that save our users time, to our support team, who deliver on a high standard for responding to customers and resolving issues, to our customer success team, who deliver the best onboarding experience."

Agrawal discusses the transition, his investment activity, and more in the episode. Listen to the podcast below and subscribe wherever you get your podcasts.


From making major deals to advancing future innovators, here are three Houston leaders to know this week. Courtesy photos

3 Houston innovators to know this week

Who's who

This week's movers and shakers in Houston innovation are dealmakers and leaders — from securing huge partnerships to influencing the next generation of inventors. These are the three innovators to know in Houston this week.

Rakesh Agrawal, CEO of SnapStream

Courtesy of SnapStream

A Houston tech innovator just made a deal with Verizon. Verizon Digital Media Services announced that SnapStream is the "official transition partner" for a product under Volicon Observer, a company that was acquired by Verizon in 2016. SnapStream's CEO Rakesh Agrawal says in a release that the two entities have similar products, features, and even customers, but have always had a respectful relationship.

"SnapStream is known, among other things, for the great support we provide, and we look forward to providing the same high-quality support to Volicon customers," Agrawal says in the release. "We hope to eventually earn the business of current Volicon customers by converting them into SnapStream customers." Read the full story here.

Enrico Ladendorf, founder and managing partner of Pason Power

Courtesy of Pason Power

Another Houston dealmaker is Enrico Ladendorf, founder and managing partner of Pason Power. In layman's terms, Pason Power offers an array of technologies — including AI, IoT, real-time automation — that support energy storage systems throughout a project's lifecycle. Energy storage systems is a wide umbrella that includes everything from the massive systems used to store renewable energy and biofuels, to household batteries, which store electricity.

"We have intelligent energy management system, which is an intelligent brain that sits inside an energy storage system," says Ladendorf. "We have this intelligent, fully-autonomous system that knows the physical operation of (energy storage and drill rigs), and it makes it brain-dead simple." Read the full story here.

Pam Rosen, general manager of the Shell Eco-marathon

Courtesy of Shell

Houstonian Pam Rosen lead Shell's Eco-marathon, which took place from April 3 to 6. Two student teams represented Houston in the competition — one from Rice University and James E. Taylor High School.

"We really needed to get more young people interested in technology careers," says Pam Rosen, general manager of the Shell Eco-marathon. "It [doesn't] even need to be with Shell. It's more about the method, science, and helping [students[ gravitate toward those opportunities." Read the full story here.

Houston-based SnapStream, led by CEO Rakesh Agrawal, has been selected by Verizon to provide support. Courtesy of SnapStream

Verizon taps Houston tech company for product support

Done deal

A Houston software company that enables TV and broadcast monitoring just snagged a deal with Verizon. The partnership will call for 10 new Houston employees.

Verizon Digital Media Services announced that SnapStream is the "official transition partner" for a product under Volicon Observer, a company that was acquired by Verizon in 2016. SnapStream's CEO Rakesh Agrawal says in a release that the two entities have similar products, features, and even customers, but have always had a respectful relationship.

"SnapStream is known, among other things, for the great support we provide, and we look forward to providing the same high-quality support to Volicon customers," Agrawal says in the release. "We hope to eventually earn the business of current Volicon customers by converting them into SnapStream customers."

SnapStream's technology has been used by hundreds of organizations around the world, the release says, including CBS, MLB Networks, the Daily Show, Last Week Tonight, Samantha Bee, and the U.S. Senate. While SnapStream is a software solution, Volicon is appliance based, and Verizon announced the termination of the company's solutions in January — citing the need "to focus continued development on future solutions that better align with industry trends and market needs."

Now, Volicon customers will be redirected to SnapStream support into 2020 and can transition into SnapStream's model should they like.

"Verizon Digital Media Services is committed to providing high-quality products and services for our customers," says Peter Gallagher, COO of Verizon Digital Media Services, in the release. "The partnership with SnapStream will provide Volicon Observer customers with a dedicated support team at the highest level of commitment to ensure continued success in their business operations."

SnapStream's technology is a TV broadcast monitoring software used by CBS, MLB, The Daily Show, and more.Courtesy of SnapStream

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7 finalists compete to be crowned Houston's 2026 Startup of the Year

Cast Your Vote

Each year, the Houston Innovation Awards program recognizes the best and brightest in the local innovation community. And while most of the award winners are selected by our esteemed panel of judges, one winner is determined by you.

Voting is now open for our people's choice award: 2026 Startup of the Year. Seven exceptional finalists are in the running for the title, and your votes will determine who wins.

From innovative platforms benefiting the education, commerce, health, investment and IT sectors to next-gen memory technology and improvements for robotic supply chains, these startups are making an impact in Houston and beyond.

Read about our Startup of the Year finalists and their missions and achievements below, then cast your vote. You can vote once per day through Nov. 13, so make your voice heard.

The winner, along with the winners in all other categories, will be revealed in mid-November right here on InnovationMap.com. Stay tuned.

FluxWorks

FluxWorks

Fluxworks is aiming to shape the future of the robotic supply chain with its flagship Celestial Gear. The magnetic gearbox offers a contactless design that leads to less wear, debris and maintenance. In 2026, Fluxworks closed a $5 million seed round to scale the product.

IronLattice

IronLattice

IronLattice is developing next-generation, ferroelectric memory technology for AI and high-performance computing workloads. In June 2026, the company closed a $3 million angel round. It began wafer production this fall, with its first working device targeted for completion in spring 2027.

Lumino

Lumino

Lumino is a unified commerce ecosystem and payments platform designed to provide businesses with the technology, payments infrastructure, intelligence and tools they need to grow while creating impact in their communities. Lumino publicly launched its platform in 2026 in Houston and is rolling out its next stage of global expansion.

Progress Report

Progress Report is a K-12 learning-intelligence platform designed to go beyond identifying that a student is struggling. It traces performance to learning gaps and prerequisite skills, helping educators understand where a student is struggling and what may be causing it. Progress Report recently released a fully built production platform and launched pilots with 35 educators and 200 students across Texas and Arizona.

Rosarium Health

Rosarium Health is a platform that coordinates the full process for home accessibility upgrades and modifications for seniors and people living with disabilities. In 2026, the startup announced $6 million in seed funding and scaled to a national network of 800-plus clinicians and 3,000-plus contractors.

Thread

Thread

Thread is building an AI-powered service desk platform for Managed Service Providers (MSPs). Its technology combines agentic AI, assistive AI, automation, and real-time communication to help MSPs resolve IT support requests faster and with less manual work.

TokenRoster

TokenRoster is an AI-powered assessment platform for early-stage startups, providing founders with an investor-grade evaluation of their company before the pitch and giving investors a curated roster of vetted companies. Since launch, TokenRoster has grown to 65 companies and 43 founder accounts, with 10 assessment frameworks available.

Houston Innovation Awards honor Don Kendall Jr. with posthumous​ Trailblazer Legacy Award

lasting legacy

Every year, the Houston Innovation Awards honor one Houstonian with the Trailblazer Award, whose impact is felt throughout the city's innovation and business ecosystem.

This year, the Trailblazer Legacy Award will be given posthumously to Don Kendall Jr., who died in September while on a trip to the Republic of the Congo with the Jane Goodall Institute, one of the many organizations he was deeply involved with.

Kendall's obituary puts it simply: "Don’s truest passions were conservation and his family." Many saw those passions play out in his career, particularly in the role he played in shaping Houston's clean energy sector.

Kendall served as general partner of New Climate Ventures, a Houston-based early-stage venture capital firm that invests in next-gen energy, materials and fuel technologies and startups. The firm's portfolio includes Houston-based clean energy companies like Solidec, Syzygy Plasmonics and Rheom Materials.

Kendall was also founding managing director and CEO of Kenmont Capital LP. He ran a $500 million distressed debt and credit-based hedge fund focused on the energy, power and transportation sectors and one of the top-performing private equity funds under the Kenmont umbrella.

He served on the board of Talos Energy, American Midstream Partners, Syzygy Plasmonics, Tangent Energy, Stream Energy and others. Notably, he served as Chair of the Special Committee of the SolarCity board during its acquisition by Tesla in 2016. According to his obituary, Kendall negotiated with "Elon Musk in the middle of the night on a rickety pier in Indonesia after eluding a poisonous snake."

Outside of the clean energy space, Kendall also served on the boards of the Jane Goodall Institute, Earthwatch International and Ecological Defense Group. He also served as vice chair of the Houston Zoo Inc. and chair of its Conservation Committee.

Kendall was selected by our esteemed panel of judges to receive the 2026 Trailblazer Legacy Award. The panel includes carbon removal entrepreneur and CEO of Houston-based Mars Materials Aaron Fitzgerald.

Fitzgerald shares the profound impact Kendall had on his career and those of many others.

"Honoring Don with the Trailblazer Legacy Award is a fitting tribute to a leader whose impact spanned civic work with the Houston Zoo, wildlife conservation, and the growth of our startup ecosystem," Fitzgerald says. "He paired a keen eye for potential with the relentless drive to unlock it. For Mars Materials, his early backing carried us through a critical valley when we needed belief the most, and his presence as a personal mentor is profoundly missed."

Don was an avid traveler, cyclist and collector. He is survived by his wife of 50 years, Diane S. Kendall. A celebration of life will be held early in 2027.

2 Houston suburbs rank among 5 best cities to retire, says U.S. News

Slowing Down

Houston and nine of its suburbs are earning new acclaim on U.S. News and World Report's just-released list of the best U.S. cities for retirees in 2027. Two northern suburbs, The Woodlands and Spring, are resting easy among the top five nationwide.

The 2027 Best Places to Retire list evaluated over 850 U.S. cities based on six livability metrics that best serve American retirees: quality of life, affordability, health care, retiree taxes, job market, and population and migration. The top 250 finalist cities were then ranked nationally and by city size.

Midland, Michigan topped the list for the second consecutive year and is followed by Homosassa Springs, Florida (No. 2) and Weirton, West Virginia (No. 3).

The Woodlands and Spring respectively maintained their standings as the No. 4 and No. 5 best cities for retirees for the second year in a row. The Woodlands topped the separate list of the best midsized U.S. cities to retire, while Spring landed 5th among the smallest U.S. cities.

Houston proper was declared the No. 2 best big city for retirees, and it ranked 89th overall. Elsewhere in the metro, Pearland (No. 13) and Conroe (No. 14) ranked just outside the overall top 10 but ranked 4th and 5th among the best midsized cities for retirees.

U.S. News said affordability is the "most considered factor" when it comes to picking the best place to live a low-stress retirement life, and that's what Houston and its neighbors deliver. Affordable cities also give retirees "a sense of security and comfort as they live out their golden years," according to Megan Wood, U.S. News assistant managing editor of home services and real estate.

"It’s no secret that affordability is top of mind for Americans this year, which is why U.S. News updated its weighting criteria to better align with what retirees prioritize," Wood said. "The 2027 rankings reflect key metrics used to highlight the places that
best suit retiree needs."

Sugar Land was declared the 10th best place to live in the U.S. in a separate U.S. News report earlier this year, but it doesn't quite meet the expectations for retirees. This particular suburb ranked as the 45th best overall city to retire, but it fared better in the city size ranking and landed 13th among the biggest U.S. cities.

Pasadena also surprised as the 85th best place to retire nationwide in this report, despite being hailed as the No. 3 best city to retire in Texas by RetirementLiving.com.

Three more Houston neighbors ranked among the top 100 overall best places to retire for 2027: League City (No. 25), Missouri City (No. 49), and Baytown (No. 88).

These are the top 10 best U.S. cities to retire for 2027:

  • No. 1 – Midland, Michigan
  • No. 2 – Homosassa Springs, Florida
  • No. 3 – Weirton, West Virginia
  • No. 4 – The Woodlands
  • No. 5 – Spring, Texas
  • No. 6 – Rio Rancho, New Mexico
  • No. 7 – Altoona, Pennsylvania
  • No. 8 – Paducah, Kentucky
  • No. 9 – Lynchburg, Virginia
  • No. 10 – Palm Coast, Florida
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This article first appeared on CultureMap.com.

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