Houston fintech startup raises $8M seed round led by local VC

fresh funds

A Houston fintech startup is aiming to modernize banking and investing — and has received fresh funding to do it. Photo via Getty Images

A Houston startup has raised millions for its fintech platform — and the company didn't have to go very far to find its lead investor.

Brassica Technologies Inc. closed its seed round at $8 million with Houston-based Mercury Fund leading the round. Valor Equity Partners, Long Journey Ventures, NGC Fund, Neowiz, Broadhaven Ventures, Armyn Capital, VC3DAO, Alpha Asset Management (Korea), and other global FinTech investors participated in the round as well.

The startup's platform has "institutional-grade solutions for the new era of private investing and alternative assets," per the release. Serving the alternative assets industry, Brassica's tools can easily integrate with any operating system to provide proprietary technology and unique regulatory licenses. The technology aims to modernize key banking and investing infrastructure to help enterprises safely grow their business and protect their customer assets.

With its "investment infrastructure as a service" model, Brassica was co-founded in 2021 by two familiar faces in Houston's fintech scene. CEO Youngro Lee and CTO Bob Dunton were behind NextSeed, a crowdfunding platform that allowed businesses to raise investment funding online. The startup was acquired in 2020 by Republic, where Lee currently serves as executive vice president and head of Asia.

“The future of finance will depend on the ability of trustworthy institutions to provide secure and seamless transitions between traditional financial services and web3 innovations while complying with strict regulations and still providing great customer experience,” says Lee in the news release.

“Today’s infrastructure solutions for alternative assets are often cobbled together through multiple incompatible vendors in a complex regulatory environment, which often creates unreasonable risk, errors, and single points of failure for market participants," he continues. "We started Brassica to address this fundamental problem and provide solutions to enable innovators in both traditional and web3 industries to build properly within a constantly evolving global regulatory framework.”

Along with the seed round news, the company has announced that Brassica Trust Company, its wholly-owned subsidiary, has received a Trust Charter by the Wyoming State Banking Board.

“The revolution of the private markets is here, and it is clear that the traditional, legacy infrastructure currently in place is not designed for the present and future investment world,” says Blair Garrou, managing director at Mercury Fund, in the release. “Brassica’s API-forward, institutional grade solutions make investing in private and digital assets more trustworthy, compliant, and secure than ever before, further bridging the gap between the worlds of traditional and decentralized finance. Their highly qualified and experienced senior business, legal, and technology executive team makes Brassica well-positioned to usher in this new era of alternative investments. We are proud to support Brassica on their ongoing mission to democratize finance globally.”

The company plans to use the funding to grow its product, engineering, business development, and customer success teams, per the news release, as well as develop a trust operations team in Wyoming. Current leadership includes former execs from Republic, Cleary Gottlieb, Kirkland Ellis, Morgan Stanley, Custodia Bank, LedgerX, Prime Trust, JP Morgan Chase, and M1 Finance.

Youngro Lee has announced funding for his latest fintech endeavor. Photo courtesy

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Topl's latest fundraising round includes participation from a Houston investor as well as international partners. Image via Getty Images

Houston-founded blockchain startup raises $15M series A to increase international impact

money moves

A blockchain technology company that was founded out of Rice University has closed its latest round of funding.

Founded in 2017, Topl is a blockchain-as-a-service company that's developing a purpose-built blockchain ecosystem to empower impact and sustainability within its userbase of businesses. The company's $15 million series A round was co-led by Houston-based Mercury, Republic Asia, and Malta-based Cryptology Asset Group.

“Topl’s blockchain was purpose built to power the next wave of supply chains and markets, that are more sustainable and inclusive,” says Chris Georgen, founder and managing director of Topl, in a news release. “Every decision we’ve made has been relentlessly focused on this problem and it’s exciting to see this approach yielding results with more than 30 different impact-forward use cases already live or approaching launch. Through this latest fundraise and with the strong network we’ve built, we’re looking to accelerate the growth of our ecosystem and setting a goal of at least 100 applications launched by next year.”

The company, which is now headquartered in Austin but still has a presence in Houston, has raised over $20 million in investment to date. Topl announced its $3 million seed round of funding — also led by Mercury — in 2020.

“Despite broader market dynamics across the Web3 sector, Topl’s strategic and early focus on users allowed the team to build an incredibly strong foundation that can weather cycles by providing an increasingly in-demand service to companies implementing various sustainable initiatives,” says Samantha Lewis, principal at Mercury, in the release. “We are excited to support Topl in this pivotal growth period.”

The round included two new international investors in Topl. Republic Asia is a newly launched arm of private investing platform Republic that is focused on fintech and web3 solutions. Houstonian Youngro Lee leads the division as executive vice president at Republic and head of Republic Asia and will join Topl's board to assist with international expansion.

“Sustainability and climate considerations are no longer mere luxuries, but an absolute necessity for companies to contribute to global finance and commerce,” Lee says in the release. “Topl will make it easier than ever for any organization around the world to harness the power of blockchain to track and monetize their positive environmental impact.”

Cryptology, with its European operations, also brings Topl key international presence.

"It's been an honor to see Topl progress from when it first entered Iconic Lab's accelerator program back in 2018 to where it is today," says Patrick Lowry, CEO of Cryptology, in the release. "Cryptology is hyper-focused on driving crypto adoption in an impact-focused, sustainable manner. We are proud to add Topl to our portfolio of companies and excitedly await Topl's network decentralization."

In addition to increasing its international impact, Topl will reportedly continue to build out its blockchain and technology. Per the release, Topl expects to launch a traceability platform for ethically and sustainably sourced products later this year.

Topl, which launched a grant program to fund Web3 startups and developers with inclusive and sustainable solutions, plans to announce its first 20 grant awards early next year. The grant recipients will also receive development, go-to-market, and fundraising support from Topl's team and network.

Sylvia Kampshoff has launched Kanthaka's first crowdfunding campaign. Photo courtesy of Kanthaka

Houston fitness tech startup launches $1M crowdfunding campaign

money moves

Calling all cardio lovers, yogis, and strength trainers alike — a Houston fitness platform is opening up investment opportunities through a new crowdfunding campaign.

Kanthaka, a Houston-based app that connects clients to personal trainers and yoga instructors on-demand, announced it will be launching a $1 million campaign through Republic, a crowdfunding platform. Kanthaka's users and trainers — or anyone interested — now have the option to become part owners in the company.

"We are very happy at Kanthaka to have been selected by Republic for their crowdfunding campaign," says Sylvia Kampshoff, founder and CEO of Kanthaka, in a press release. "I want our users as our evangelists.

"Since we started the company I've had clients reaching out wanting to invest but it was complicated — you had to be an accredited investor or VC," Kampshoff continues. "Now through this crowdfunding campaign, clients and trainers can participate in our journey."

According to the release, Republic, which is strategically partnered with Houston-based NextSeed, only accepts less than 1 percent of applicants interested in being funded on the platform. Kanthaka has reportedly raised over $850,000 from two venture capitalists and angels investors to date.

The company provides both live in-person and virtual sessions. Between March 2020 and March 2021, Kanthaka grew over 700 percent in sessions sold, per the release, and now, with the COVID-19 vaccines, the company is seeing a new spike in sessions.

"Our vision is to become Amazon for health & fitness and the go-to provider to live a longer, happier and healthier life," Kampshoff says in the release. "We couldn't be more excited about this journey."

Frustrated with the lack of ease in booking training sessions, Kampshoff launched Kanthaka in 2017 and has grown the company and expanded into 15 markets. Kanthaka participated in Austin-based accelerator Sputnik ATX.

Image via mykanthaka.com

This week's roundup of Houston innovators includes Grace Rodriguez of Impact Hub Houston, Youngro Lee of NextSeed, and Liz Youngblood of Baylor St. Luke's Medical Center. Courtesy photos

3 Houston innovators to know this week

Who's who

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — startup development, fintech, and health care — recently making headlines in Houston innovation.

Grace Rodriguez, CEO and executive director of Impact Hub Houston

Impact Hub Houston has two new initiatives for female founders. Photo courtesy of Impact Hub Houston

Two accelerator programs were recently announced and they both are aimed at supporting female founders — and one Houston organization is behind them both. Impact Hub Houston announced that it has partnered up with Frost Bank to sponsor eight female founders to participate in Impact Hub's new Accelerate Membership Program.

Additionally, Impact Hub Houston has teamed up with MassChallenge for their own initiative supporting female founders in the Houston-Galveston region in partnership with Houston-based Workforce Solutions. The three organizations are collaborating to launch launch a bootcamp to support female founders in the greater Houston region.

"As a female founder myself, I'm incredibly excited about this opportunity to support and uplift more women entrepreneurs and women-led businesses in our region," says Grace Rodriguez, CEO and executive director of Impact Hub Houston, in a news release. "By now, it's no secret that women, and especially women of color, are under-invested in; and this is our chance to change that by helping more women strengthen their businesses and prepare to seek funding." Click here to read more.

Youngro Lee, co-founder and CEO of NextSeed and COO of Republic

What does the future of investment look like? That's something Youngro Lee thinks about daily – and he shares his thoughts on this week's episode of the Houston Innovators Podcast. Photo courtesy of NextSeed

The world of investing is changing — and the power shift is tilting from the rich elite to individuals. Youngro Lee, co-founder and CEO of NextSeed and COO of Republic, has seen the change starting several years ago.

"Investing is traditionally seen as something you can't do unless you're rich," Lee says on this week's episode of the Houston Innovators Podcast. "There was a certain understanding of what anyone (looking to invest) should do. … But now the world is so different."

Lee shares more about the future of investing and how he's watched the Houston innovation ecosystem develop over the years on the episode. Click here to read more and stream the podcast.

Liz Youngblood, president of Baylor St. Luke's Medical Center and senior vice president and COO of St. Luke's Health

As we enter year two of the pandemic, the way hospitals function now and in the future is forever changed. Photo courtesy

No industry has been unaffected by COVID-19, Liz Youngblood, president of Baylor St. Luke's Medical Center and senior vice president and COO of St. Luke's Health, observes in a guest column for InnovationMap. But hospitals — they've had a spotlight shown on them and their technology adoption since day one of the pandemic.

"The pace of innovation for hospitals has been at breakneck speed — from the evolution of new treatment protocols to the need to reconfigure physical spaces to support an influx of patients while also promoting a healing environment during this unprecedented time," she writes.

Hospitals, she says, look and feel completely different now than they did last year and the year before that. Click here to read more.

What does the future of investment look like? That's something Youngro Lee thinks about daily – and he shares his thoughts on this week's episode of the Houston Innovators Podcast. Photo courtesy of NextSeed

Houston fintech startup continues to grow to represent a new era of investing

HOUSTON INNOVATORS PODCAST EPISODE 78

When Youngro Lee and his co-founders launched NextSeed — an investment platform that allows non-accredited investors to invest in small, local businesses for as little as $100 — they were creating something that hadn't existed before. Now, Lee is actively working toward a world where this type of crowd-sourced investment is commonplace.

And the industry is changing — finally. The first change was in 2012 when the Jobs Act allowed for unaccredited investors to make small-scale investments into businesses. It was this new law change that drove Lee and his co-founders to create NextSeed as the landscape of both investors and companies that were able to get funding began to evolve.

"Investing is traditionally seen as something you can't do unless you're rich," Lee says on this week's episode of the Houston Innovators Podcast. "There was a certain understanding of what anyone (looking to invest) should do. … But now the world is so different."

And the financial world was due some changes, Lee says. If you look at the top 10 companies in the world right now, he explains on the show, most of those companies weren't on that list 20 years ago. "And that's not a coincidence," he says.

"Technologies, lifestyles, and generations change, but in the world of finance — because of regulations and old school mentality — it doesn't catch up," Lee says.

But new companies — like NextSeed on the private side of the market and Robinhood representing public investment — are putting investment power into the hands of individuals. And the new generations of investors look at investment differently.

"The future of investment is less about, 'let me maximize my ROI,'" he says, "it's going to transition to, 'I want to invest in things that make me happy and things that I value."

Last fall, NextSeed and New York-based Republic, another investment platform, entered into a strategic partnership that mutually benefits both companies and expands their horizons — both geographically and on an industry level. From Republic's perspective, the company is tapping into a new market in Houston and Texas — a region that's growing its population and attracting new businesses.

Lee shares more about the deal, the future of investing, and how he's watched the Houston innovation ecosystem develop over the years on the episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.


With the acquisition, Youngro Lee, co-founder and CEO of NextSeed, has been named the COO of Republic. Courtesy of NextSeed

Houston investment platform acquired, new partnership grows investor access

Nextseed's next phase

A growing New York-based private investment platform has acquired Houston-based NextSeed, according to announcements from both companies.

Republic announced the acquisition Monday, November 16, and appointed Youngro Lee, co-founder and CEO of NextSeed, as Republic's new COO. It's the third acquisition for Republic this year. Fig, a gaming-focused platform, and Compound, a real estate-focused platform, both joined the Republic family, allowing investors access to other industries.

"The NextSeed acquisition is just the latest milestone for Republic as we deliver the most expansive platform of marketplace offerings and investment types for private investors globally," Republic CEO Kendrick Nguyen says in a release.

Lee founded NextSeed with CMO Abe Chu and CTO Bob Dunton six years ago following the passage of the JOBS Act in 2012, that allowed smaller investments from non-accredited investors. Since then, NextSeed has facilitated $20 million in investments from 25,000 members into 75 local businesses.

It's a pivotal moment for the private investment community as just two weeks ago the SEC announced changes to Regulation Crowdfunding that included raising the fundraising caps from $1.07 million to $5 million. Between the new regulations and the new Republic deal, investing on NextSeed's platform will grow in scale.

"Now, by partnering with Republic, we believe that we can achieve so much more together for our entire business and investor community," NextSeed's executive team says in an email to investors. "We have known and worked with the Republic team for over four years, as both firms tried to strengthen and grow this industry since the very beginning of this movement."

Republic's founders are alums from AngelList and have made Republic one of the top private investing platforms in the industry with around 1 million members and more than $200 million facilitated through individual and institutional investors, according to the email.

According to NextSeed's email to its investors, little will change on the platform for investors, aside from access to new deals from Republic and its subsidiaries. Additionally, NextSeed will maintain its headquarters in Houston and the deal marks Republic's entrance into Houston and Texas.

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Houston scientists make breakthrough in hearing science and treatment research

sounds good

Researchers at Baylor College of Medicine and the Jan and Dan Duncan Neurological Research Institute at Texas Children’s Hospital have successfully mapped which cell populations are responsible for processing different types of sounds.

Working with a team at the Oregon Health & Science University, the Houston scientists have classified where in the cochlear nucleus our brains connect with various sounds, including speech and music. The research was published in the new edition of Nature Communications.

“Understanding these cell types and how they function is essential in advancing treatments for auditory disorders,” Matthew McGinley, assistant professor of neuroscience at Baylor, said in a release. “Think of how muscle cells in the heart are responsible for contraction, while valve cells control blood flow. The auditory brainstem operates in a similar fashion — different cell types respond to distinct aspects of sound.”

Though scientists have long thought that there are distinct types of cells in the cochlear nucleus, they didn’t have tools to distinguish them until now.

Lead author on the study, Xiaolong Jiang, associate professor of neuroscience at Baylor, added: “This study not only confirms many of the cell types we anticipated, but it also unveils entirely new ones, challenging long-standing principles of hearing processing in the brain and offering fresh avenues for therapeutic exploration.”

Jiang and his team have cooked up a comprehensive cellular and molecular atlas of the cochlear nucleus, which will help them to create more targeted and more effective treatments for patients struggling with their hearing.

The strategies that aided them in creating these tools included single-nucleus RNA sequencing, which made it possible to define neuronal populations on a molecular level. Phenotypic categorizations of the cells were made possible with patch sequencing.

This is a watershed moment for the development of targeted treatments for individuals with auditory disorders, including those with impaired function in the auditory nerve, for whom cochlear implants don’t work.

“If we can understand what each cell type is responsible for, and with the identification of new subtypes of cells, doctors can potentially develop treatments that target specific cells with greater accuracy,” McGinley explains. “These findings, thanks to the work of our collaborative team, make a significant step forward in the field of auditory research and get us closer to a more personalized treatment for each patient.”

Houston shines among top 10 tech metros in the South, study says

Tops in Tech

A study analyzing top U.S. locales for the tech industry ranked Houston the No. 9 best tech hub in the South.

The report by commercial real estate platform CommercialCafe examined the top 20 Southern metros across nine metrics, such as the growth rates of tech establishments and employment, median tech earnings, a quality of life index, and more.

Like other Texas metros, the study attributes Houston's tech powerhouse status to its growing presence of major tech companies. However, Houston leads the nation with the highest number of patents granted between 2020 and 2024.

"The second-largest metro by population in the South, Houston led the region with an impressive 8,691 tech patent grants in the last five years," the report said. "Once synonymous with oil, Houston is increasingly making its mark as a cleantech hub — and patents reflect this shift."

Houston also experienced an impressive 14 percent growth in tech establishments, with nearly 500 new tech companies moving to the metro. An impressive 32 percent job growth rate also accompanied this change, with over 30,500 tech jobs added between 2019 and 2023.

Here's how Houston stacked up across the remaining five rankings:
  • No. 11 – Tech establishment density
  • No. 15 – Median tech earnings
  • No. 19 – Median tech earnings growth
  • No. 20 – Tech job density
  • No. 20 – Quality of life index

In a separate 2024 report, Houston was the No. 22 best tech city nationwide, showing that the city is certainly making efforts to improve its friendliness toward the tech industry in 2025.

Other top Texas tech hubs in the South
The only other Texas metros to earn spots in the report were Austin (No. 1) and Dallas-Fort Worth (No. 4). Most notably, CommercialCafe says Austin saw a 25 percent increase in tech company density from 2019 to 2023, which is the third-highest growth rate out of all 20 metros.

"Moreover, the metro’s tech scene thrives on a diverse range of segments, including AI and green energy (bolstered by the University of Texas), as well as globally recognized events like [South by Southwest]," the report says. "Thus, with tech companies accounting for more than half of all office leasing activity in 2024, Austin remains a magnet for innovation, talent and investment."

Dallas, on the other hand, has a far greater diversity when it comes to its tech sector and its thriving economic opportunities.

"Not to be outdone, Dallas-Fort Worth moved up from sixth to fourth in this year’s rankings, driven by a 25.9 percent growth in tech company presence — the second-highest increase among the top 20 metros," the report said. "For instance, companies like iRely (which relocated to Irving, Texas) and Diversified (now in Plano, Texas) have joined homegrown successes, such as StackPath and Bestow."

The top 10 best tech metros in the South are:

  • No. 1 – Washington, D.C.
  • No. 2 – Austin, Texas
  • No. 3 – Raleigh, North Carolina
  • No. 4 – Dallas-Fort Worth, Texas
  • No. 5 – Huntsville, Alabama
  • No. 6 – Baltimore, Maryland
  • No. 7 – Durham, North Carolina
  • No. 8 – Atlanta, Georgia
  • No. 9 – Houston, Texas
  • No. 10 – Charlotte, North Carolina
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This story originally appeared on our sister site, CultureMap.com.

Houston startup, researchers awarded millions to develop Brain Mesh implant

brain health

Houston startup Motif Neurotech and several Rice research groups have been selected by the United Kingdom's Advanced Research + Invention Agency (ARIA) to participate in its inaugural Precision Neurotechnologies program. The program aims to develop advanced brain-interfacing technologies for cognitive and psychiatric conditions.

ARIA will invest $84.2 million over four years in projects that “explore and unlock new methods to interface with the human brain at the circuit level,” according to a news release.

Three of the four Rice labs will collaborate with Houston health tech startup Motif Neurotech to develop Brain Mesh, which is a distributed network of minimally invasive implants that can stimulate neural circuits and stream neural data in real time. The project has been awarded approximately $5.9 million.

Motif Neurotech was spun out of the Rice lab of Jacob Robinson, a professor of electrical and computer engineering and bioengineering and CEO of Motif Neurotech. It will be developed in collaboration with U.K.-based startup MintNeuro, which will help develop custom integrated circuits that will help to miniaturize the implants, according to a separate release.

Robinson will lead the system and network integration and encapsulation efforts for Mesh Points implants. According to Rice, these implants, about the size of a grain of rice, will track and modulate brain states and be embedded in the skull through relatively low-risk surgery.

The Rice lab of Valentin Dragoi, professor of electrical and computer engineering at Rice and the Rosemary and Daniel J. Harrison III Presidential Distinguished Chair in Neuroprosthetics at Houston Methodist, will conduct non-human primate experimental models for Brain Mesh. Kaiyuan Yang, associate professor of electrical and computer engineering who leads the Secure and Intelligent Micro-Systems Lab at Rice, will work on power and data pipeline development to enable the functional miniaturization of the Mesh Points.

“Current neurotechnologies are limited in scale, specificity and compatibility with human use,” Robinson said in a news release. “The Brain Mesh will be a precise, scalable system for brain-state monitoring and modulation across entire neural circuits designed explicitly for human translation. Our team brings together a key set of capabilities and the expertise to not only work through the technical and scientific challenges but also to steward this technology into clinical trials and beyond.”

The fourth Rice lab, led by assistant professor of electrical and computer engineering Jerzy Szablowski, will collaborate with researchers from three universities and two industry partners to develop closed-loop, self-regulating gene therapy for dysfunctional brain circuits. The team is backed by an award of approximately $2.3 million.

“Our goal is to develop a method for returning neural circuits involved in neuropsychiatric illnesses such as epilepsy, schizophrenia, dementia, etc. to normal function and maybe even make them more resilient,” Szablowski said in a news release.

Neurological disorders in the U.K. have a roughly $5.4 billion economic burden, and some estimates run as high as $800 billion annually in terms of economic disruptions in the U.S. These conditions are the leading cause of illness and disability with over one in three people impacted according to the World Health Organization.

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