Houston VC firm closes $21M fund for underrepresented founders

fresh funding

Zach Ellis, founder and general partner of South Loop Ventures, which recently closed its debut fund. Photo via LinkedIn

Houston-based South Loop Ventures recently closed its debut fund for more than $21 million, led by investments from Rice Management Company and Chevron Technology Ventures.

The funds will go toward teams with at least one underrepresented founder of color working in the energy, health, space, sports and fintech sectors. Additional investments came from The Great Commission Foundation of the Episcopal Diocese of Texas, Texas CapitalBank and others organizations.

According to South Loop Ventures, less than 3 percent of venture capital reaches underrepresented founders of color. Zach Ellis Jr., founder and general partner of South Loop, says the firm wants to address this "billion-dollar blind spot."

"Inequitable distribution of venture capital represents a clear market inefficiency—and market inefficiencies translate into exceptional opportunities," Ellis said in a release.

He added that the firm's location in Houston will help it make an impact.

"Being anchored here gives us front-row access to world-class corporations eager to engage and support innovation from founders with underrepresented voices and perspectives," he added in the release.

Ellis founded South Loop Ventures in 2022. It has funded 13 companies since August 2023 and plans to fund several more this year. Its portfolio includes Houston-based Milkify, a breast milk freeze-drying service; Lokum App, a Houston-founded platform for recruiting certified registered nurse anesthetists; and others.

Ellis' background spans the United States Military, academia, and roles at Rev1 Ventures and PepsiCo’s corporate venture team. He previously told InnovationMap that he was called to invest in founders of color after George Floyd's murder. He says he also realized how much money was being left on the table by overlooking these innovators.

"The mission of South Loop is to become the preeminent source of venture capital dollars for underrepresented, diverse teams nationally to serve as a beacon for the best underrepresented talent and to enable them to be successful through leveraging the unique resources and talent of Houston," he said on the Houston Innovators Podcast in 2024. "A big part of our mission is also to help catalyze Houston as an ecosystem for tech entrepreneurship."

Listen to the full interview with Ellis here. The recent funding news and Ellis were also featured in a profile by TechCrunch earlier this week. Click here to read more.

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The Ion has announced that it is adding an additional 28,000 square feet of coworking space. Photo courtesy of the Ion

Houston innovation hub expands coworking space

more room at the Ion

The Ion has announced it will bring more coworking space to its facility.

The innovation hub in Midtown, which is owned and operated by Rice Management Company, expanded its partnership with Dallas-based Common Desk to the Ion’s fourth floor. The addition brings another 28,000 square feet of workspace to the building.

“When people work in an inspiring place that fosters community, going into work is exciting. The Ion’s experience with Common Desk proves it,” says Jan E. Odegard, executive director of the Ion. “This rapid expansion signals that the Ion is the place to be for growing organizations, and we will soon be releasing new programs that expand our value proposition for startups, investors, corporations, academic institutions, and the community.”

According to the release, Common Desk's Ion space — originally opened in August of 2021 — reached max capacity in less than a year and now has a waiting list. The new combined space will total 86,400 square feet of coworking space for Houston entrepreneurs.

"With RMC’s support, we created a thoughtful design, along with the amenities and memberships offered,” says Common Desk's Head of Real Estate Dawson Williams in the release. “One year later, this space in the Ion is a game-changer for Houston’s innovators. It’s exciting that we’re already expanding because so many rapidly growing companies want to be inside the Ion and experience everything it has to offer.”

Founded in 2012, Common Desk has grown to over 20 locations and counting in Dallas, Houston, Austin, Wilmington, and Raleigh. In Houston, the company has opened coworking space in several locations, most recently at the POST in downtown.

The Ion's Common Desk space originally opened last summer. Rendering courtesy of Common Desk

This week's roundup of Houston innovators includes Sam Dike of Rice Management Company, Barbara Burger of Greentown Labs, and Joe Alapat of Liongard. 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 — from clean energy to software — recently making headlines in Houston innovation.


Sam Dike, manager of strategic initiatives at Rice Management Company

Sam Dike of Rice Management Company joins the Houston Innovators Podcast to discuss the past, present, and future of Houston's rising Ion Innovation District. Photo via rice.edu

A few years ago, Rice Management Company saw an opportunity a few years back to make an investment in Houston's nascent innovation and tech ecosystem, and announced the plans for the Ion, a 266,000-square-foot innovation hub in an renovated and rehabilitated Sears.

"In some ways innovation is not necessarily about creating something completely new — it's oftentimes building upon something that exists and making it better," says Sam Dike, manager of strategic initiatives at Rice Management Company, on the most recent episode of the Houston Innovators Podcast. "I think that's what we've done with the building itself.

"We took something that had really strong bones and a strong identity here in Houston," he continues, "and we did something that's often atypical in Houston and preserved and repurposed it — not an easy logistical or financial decision to make, but we believed it was the best for Houston and for the project." Click here to read more and stream the podcast.

Barbara Burger, board member at Greentown Labs

Barbara Burger, former president of Chevron Technology Ventures, has been named to the Greentown Labs board of directors. Photo courtesy of CTV

Greentown Labs announced that it has appointed Barbara J. Burger — former vice president of innovation and president of Chevron Technology Ventures, Chevron's startup investment arm — to its board of directors.

In her previous role at Chevron, she spearheaded the energy company's support of Greentown Labs since 2013 and the opening of its Houston incubator. After announcing her retirement in December, she has continued being active at Greentown and hosts semi-annual Women of Greentown Houston dinners.

“I am honored and excited to join the Greentown Labs Board of Directors,” says Burger in the release. “Combatting the effects of climate change requires bringing a wide range of innovative solutions to scale. There is work for incumbents and startups alike in this enormous challenge that WE all face. Greentown Labs plays an essential role in providing facilities, tools, programs, and an inclusive community to nurture and grow innovation that matters.” Click here to continue reading.

Joe Alapat, co-founder and CEO of Liongard

Houston IT company forms new partnership

Houston-based Liongard has fresh funding to work with. Courtesy of Liongard

Liongard, an IT software provider, has raised an additional $10 million in funding, according to a news release, will go toward providing the best customer service for Liongard's growing customer base.

The technology is providing managed service providers, or MSPs, improved visibility across the IT stack and an optimized user experience.

“Since working with our first MSP partners, we’ve seen time and again the power of visibility into IT data, reducing the time they spend researching customer issues and allowing them to respond faster than their peers,” says Joe Alapat, CEO and co-founder of Liongard, in the release. “This investment enables us to continue to achieve our vision of delivering visibility into each element of the IT stack.” Click here to continue reading.

Sam Dike of Rice Management Company joins the Houston Innovators Podcast to discuss the past, present, and future of Houston's rising Ion Innovation District. Photo via rice.edu

What Houston can expect from its rising innovation district

Houston innovators podcast episode 140

Last month, the Ion Houston welcomed in the greater Houston community to showcase the programs and companies operating within the Ion Innovation District — and the week-long Ion Activation Festival spotlighted just the beginning.

The rising district — anchored by the Ion — is a 16-acre project in Midtown Houston owned and operated by Rice Management Company, an organization focused on managing Rice University's $8.1 billion endowment.

"We're chiefly responsible for stewarding the university's endowment and generating returns to support the academic mission of the university," says Samuel Dike, manager of strategic initiatives at RMC, on this week's episode of the Houston Innovators Podcast. "Part of those returns go to support student scholarships and student success — as well as many of the other academic programs."

"The university sees a dual purpose behind the investing," Dike continues, in addition to focusing on generating returns, RMC's mission is "also to be a valuable partner in Houston's ecosystem and pushing Houston as a global 21st century city."

RMC saw an opportunity a few years back to make an investment in Houston's nascent innovation and tech ecosystem, and announced the plans for the Ion, a 266,000-square-foot innovation hub in an renovated and rehabilitated Sears.

"In some ways innovation is not necessarily about creating something completely new — it's oftentimes building upon something that exists and making it better," Dike says. "I think that's what we've done with the building itself.

"We took something that had really strong bones and a strong identity here in Houston," he continues, "and we did something that's often atypical in Houston and preserved and repurposed it — not an easy logistical or financial decision to make, but we believed it was the best for Houston and for the project."

Now, the Ion District includes the Ion as the anchor, as well as Greentown Houston, which moved into a 40,000-square-foot space in the former Fiesta Mart building, just down the street. While RMC has announced a few other initiatives, the next construction project to be delivered is a 1,500-space parking garage that will serve the district.

"It is not your typical parking garage," Dike says. "The garage will feature a vegetated facade with ground-floor retail and gallery space, as well as EV charging spaces and spaces to feature display spaces for future tech. It's going to be a nice addition to the district."

The new garage will free up surface parking lots that then will be freed up for future construction projects, Dike explains.

He shares more about the past, present, and future of the Ion and the district as a whole on the podcast. Listen to the interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.



The Ion has a new partner. Photo courtesy of The Ion

ExxonMobil named founding partner of Houston innovation hub

new collab

A Texas energy giant has joined The Ion as a founding partner, the innovation hub announced recently.

ExxonMobil, which announced its new Houston HQ move from Irving, Texas, earlier this year, celebrated the announcement at the Ion Activation Festival last month. The partnership is effective immediately, according to a June 13 news release.

“ExxonMobil has been a leader in energy technology for over a century. Collaboration is essential to both augment our capabilities and accelerate the development of scalable solutions,” says Linda DuCharme, president of ExxonMobil Technology and Engineering Company, in the release. “Our partnership with The Ion will enable us to tap into the extraordinary talent in Houston.”

ExxonMobil joins existing Ion founding partners Aramco, Chevron Technology Ventures, Baker Botts, and Microsoft, as well as affiliate partners bp and Intel. The company joins the Ion "to help develop solutions for the world’s emerging energy issues," per the release.

“To have one of the strongest brands in oil and gas globally join us is a testament to the Ion’s momentum and mission,” says Jan E. Odegard, executive director of the Ion. “We’re thrilled to welcome ExxonMobil’s thought leaders and this caliber of mindshare to the Ion family. As the Ion expands its programming and footprint, we are confident in the impact we’ll create together.”

The Ion is a 266,000-square-foot building developed and managed by Rice Management Company and anchors the 16-acre Innovation District in Midtown.

The Ion has joined the ranks of an international network of hotspots for innovation. Photo courtesy of The Ion

Houston's emerging innovation district gets global recognition from prestigious program

tech hotspot

The Ion Houston has a new feather to add to its cap. Rice Management Company's Midtown innovation hub has been recognized on a global scale.

The Global Network of Innovation Districts has added The Ion District to its network of innovation hubs, and the Ion is the first district in Texas to join. Affiliated with the Brookings Institute, the global organization consists of thought leaders and innovation district developers. With the addition of the Ion, there are 22 members in the Global Network, including the Pittsburgh Innovation District, Cortex Innovation Community in Missouri, Tech Central in Sydney, and Knowledge District Zuidas in Amsterdam.

“GIID’s Global Network is utilizing best practices of world-renowned innovation districts to accelerate regional economies. Their focus on placemaking, startup services, and community engagement are some of the critical components that lead to successful districts,” says Bryson Grover, investment manager of real estate development at Rice Management Company, in a news release. “With GIID, we will continue to think creatively about how the built environment and specialized programming can inform future development and allow equitable access to an ever-changing workforce.”

The Ion, a 266,000-square-foot space in the renovated Midtown Sears building, is the anchor of the district, which also includes Greentown Labs. According to the release, the next building is under construction, with three more projects to begin in the next year. Overall, the build-out of the Ion District will deliver three million square feet of development across 16 acres over the next decade.

“The Ion and the Ion District represent a major commitment and investment in the success of Houston as a center of innovation and a foundation of Houston’s economic future. From the very beginning of our planning, we visited innovation hubs and districts around the country and around the world to make sure that we drew on their experiences and best practices,” says Rice President David Leebron in the release. “And by participating in the Global Network now, the Ion District will contribute to and benefit from a global exchange of knowledge among the very best innovation districts, which complements Rice’s broader international engagements and strategies.”

GIID is a nonprofit dedicated to research on and connecting innovation districts in new geographies of innovation, per the release. Headquartered in New York, the organization was founded in 2018 to help position innovation districts as engines of economic development and spur productive, inclusive, and sustainable environments.

“We’re thrilled for The Ion and Ion District to join our network, especially as it commences its next steps on development later this year,” says Julia Wagner, president of GIID, in the release. “Our team has extensive experience working with unique real estate ventures that aim to transform how communities learn, work, and live. We look forward to playing a part in Houston’s transformation, and as we have documented in innovation districts around the world, having a leader like Rice drive the creation of the district is a key ingredient of its continued and growing success.”

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Intuitive Machines to acquire NASA-certified deep space navigation company

space deal

Houston-based space technology, infrastructure and services company Intuitive Machines has agreed to buy Tempe, Arizona-based aerospace company KinetX for an undisclosed amount.

The deal is expected to close by the end of this year, according to a release from the company.

KinetX specializes in deep space navigation, systems engineering, ground software and constellation mission design. It’s the only company certified by NASA for deep space navigation. KinetX’s navigation software has supported both of Intuitive Machines’ lunar missions.

Intuitive Machines says the acquisition marks its entry into the precision navigation and flight dynamics segment of deep space operations.

“We know our objective, becoming an indispensable infrastructure services layer for space exploration, and achieving it requires intelligent systems and exceptional talent,” Intuitive Machines CEO Steve Altemus said in the release. “Bringing KinetX in-house gives us both: flight-proven deep space navigation expertise and the proprietary software behind some of the most ambitious missions in the solar system.”

KinetX has supported deep space missions for more than 30 years, CEO Christopher Bryan said.

“Joining Intuitive Machines gives our team a broader operational canvas and shared commitment to precision, autonomy, and engineering excellence,” Bryan said in the release. “We’re excited to help shape the next generation of space infrastructure with a partner that understands the demands of real flight, and values the people and tools required to meet them.”

Intuitive Machines has been making headlines in recent weeks. The company announced July 30 that it had secured a $9.8 million Phase Two government contract for its orbital transfer vehicle. Also last month, the City of Houston agreed to add three acres of commercial space for Intuitive Machines at the Houston Spaceport at Ellington Airport. Read more here.

Japanese energy tech manufacturer moves U.S. headquarters to Houston

HQ HOU

TMEIC Corporation Americas has officially relocated its headquarters from Roanoke, Virginia, to Houston.

TMEIC Corporation Americas, a group company of Japan-based TMEIC Corporation Japan, recently inaugurated its new space in the Energy Corridor, according to a news release. The new HQ occupies the 10th floor at 1080 Eldridge Parkway, according to ConnectCRE. The company first announced the move last summer.

TMEIC Corporation Americas specializes in photovoltaic inverters and energy storage systems. It employs approximately 500 people in the Houston area, and has plans to grow its workforce in the city in the coming year as part of its overall U.S. expansion.

"We are thrilled to be part of the vibrant Greater Houston community and look forward to expanding our business in North America's energy hub," Manmeet S. Bhatia, president and CEO of TMEIC Corporation Americas, said in the release.

The TMEIC group will maintain its office in Roanoke, which will focus on advanced automation systems, large AC motors and variable frequency drive systems for the industrial sector, according to the release.

TMEIC Corporation Americas also began operations at its new 144,000-square-foot, state-of-the-art facility in Brookshire, which is dedicated to manufacturing utility-scale PV inverters, earlier this year. The company also broke ground on its 267,000-square-foot manufacturing facility—its third in the U.S. and 13th globally—this spring, also in Waller County. It's scheduled for completion in May 2026.

"With the global momentum toward decarbonization, electrification, and domestic manufacturing resurgence, we are well-positioned for continued growth," Bhatia added in the release. "Together, we will continue to drive industry and uphold our legacy as a global leader in energy and industrial solutions."

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This article originally appeared on EnergyCapitalHTX.com.

2 Texas cities named on LinkedIn's inaugural 'Cities on the Rise'

jobs data

LinkedIn’s 2025 Cities on the Rise list includes two Texas cities in the top 25—and they aren’t Houston or Dallas.

The Austin metro area came in at No. 18 and the San Antonio metro at No. 23 on the inaugural list that measures U.S. metros where hiring is accelerating, job postings are increasing and talent migration is “reshaping local economies,” according to the company. The report was based on LinkedIn’s exclusive labor market data.

According to the report, Austin, at No. 18, is on the rise due to major corporations relocating to the area. The datacenter boom and investments from tech giants are also major draws to the city, according to LinkedIn. Technology, professional services and manufacturing were listed as the city’s top industries with Apple, Dell and the University of Texas as the top employers.

The average Austin metro income is $80,470, according to the report, with the average home listing at about $806,000.

While many write San Antonio off as a tourist attraction, LinkedIn believes the city is becoming a rising tech and manufacturing hub by drawing “Gen Z job seekers and out-of-state talent.”

USAA, U.S. Air Force and H-E-B are the area’s biggest employers with professional services, health care and government being the top hiring industries. With an average income of $59,480 and an average housing cost of $470,160, San Antonio is a more affordable option than the capital city.

The No. 1 spot went to Grand Rapids due to its growing technology scene. The top 10 metros on the list include:

  • No. 1 Grand Rapids, Michigan
  • No. 2 Boise, Idaho
  • No. 3 Harrisburg, Pennsylvania
  • No. 4 Albany, New York
  • No. 5 Milwaukee, Wisconsin
  • No. 6 Portland, Maine
  • No. 7 Myrtle Beach, South Carolina
  • No. 8 Hartford, Connecticut
  • No. 9 Nashville, Tennessee
  • No. 10 Omaha, Nebraska

See the full report here.

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