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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Bristol Myers Squibb to build $2.3B Houston pharma manufacturing campus

coming soon

New Jersey-based pharmaceutical giant Bristol Myers Squibb Co. has officially named Houston as the home of its new state-of-the-art manufacturing site.

The 60,000-square-foot facility represents a $2.3 billion investment, according to a news release. It is expected to create 500 skilled jobs and will be located in Houston's Generation Park.

BMS first announced that it was considering Houston among 16 other cities for the facility in May. The new hub will manufacture small molecule, biologic and antibody-drug conjugates and is part of a $40 billion commitment to invest in the United States over five years. Construction is slated to begin next year, with the facility coming online in 2030.

"We're building the domestic manufacturing capabilities needed to deliver the next generation of medicines and support future scientific breakthroughs. Houston and the state of Texas offer the talent, infrastructure, and partnership needed to help bring that vision to life," Christopher Boerner, CEO and board chair of BMS, said in the release.

The new facility will feature a modular, multi-modal design, which will allow the company to reconfigure and add to its manufacturing capabilities over time. BMS says it expects the facility to "(grow) in scale and capability well beyond its opening configuration."

"Our decision to build this state-of-the-art manufacturing campus in Houston, Texas, reflects our confidence in the region’s ability to support a world-class, digitally advanced supply operation,” Karin Shanahan, EVP and chief supply chain and operations officer of BMS, added in the release. “This facility is designed to deliver the speed, quality, and reliability that patients depend on, combining flexible, modular manufacturing with advanced digital capabilities to ensure consistent supply across multiple modalities. It strengthens our ability to operate with resilience and positions us to reliably deliver medicines to patients today while adapting future demands.”

Texas Gov. Greg Abbott shared that the state has granted BMS a $4.89 million Texas Enterprise Fund (TEF) grant for the project. TEF grants, administered by the Texas Economic Development & Tourism Office, support business relocation or expansion projects that create "new, good-paying jobs in the community and attract significant new capital investment to the state." The development is also a qualified project under the Texas Jobs, Energy, Technology, and Innovation (JETI) program.

“Texas is a global hub for life sciences, where today’s innovations shape the future of healthcare,” Abbott said in a news release. “This $2.3 billion investment by Bristol Myers Squibb in the dynamic biotech ecosystem in Houston is a testament to the depth of our skilled workforce and the pipeline of talent coming through our nation-leading technical colleges and research universities. With lower operating costs and easy access to markets across the U.S. and the world, Texas drives affordability for consumers.”

"Bristol Myers Squibb’s announcement is a tremendous win for Texas and the Houston region, further reinforcing our position as a premier destination for life sciences and advanced manufacturing,” added Greater Houston Partnership President and CEO Steve Kean.

Last fall, Eli Lilly and Co. selected Generation Park, a 4,300-acre, master-planned commercial district near Lake Houston, for its $6.5 billion manufacturing plant. More than 300 locations in the U.S. competed for the factory. Read more here.

Texas foundation makes massive $180M donation to Galveston hospital

historic gift

The University of Texas Medical Branch in Galveston (UTMB) has accepted a staggering $130 million grant from the Sealy & Smith Foundation, which, combined with the $50 million that the foundation donated in 2025 to establish the Department of Cardiovascular Medicine, is the largest bequest in UTMB history.

The grant will go to grow cardiovascular imaging, diagnosis, and treatment at UTMB by establishing an inpatient cardiovascular hub on the sixth floor of Jennie Sealy Hospital. In honor of the donation, the department is being renamed the Sealy Heart and Vascular Institute.

“The Sealy & Smith Foundation has a long history of investing in initiatives that transform health care for the people of Galveston and beyond,” said John Kelso, president of The Sealy & Smith Foundation Board of Directors. “We believe the Sealy Heart & Vascular Institute has the potential to redefine cardiovascular care in our region by bringing together exceptional physicians, advanced technology, innovative research and a commitment to improving patient outcomes. This additional investment reflects our confidence in UTMB’s vision and our belief that the Institute will have a lasting impact for generations to come.”

The Sealy & Smith Foundation was established in 1922 by John Sealy II and his sister Jennie Sealy Smith. Bolstered by the Sealy fortune built on shipping, oil, banking, and railroads, the Foundation has donated more than $1.2 billion to UTMB over the last century, linking the family legacy to healthcare, teaching, and research. It was John Sealy Sr. who contributed the initial $50,000 to build a hospital on the island, which opened right alongside the new medical school created by the state legislator in what was then Texas's largest and most economically powerful city.

Since then, the Foundation has helped grow UTMB into a world-class hospital. The cardiovascular care especially is well-regarded, making the 2025 Newsweek/Statista List of America's Best Hospitals.

“This extraordinary investment reflects The Sealy & Smith Foundation’s unwavering commitment to improving health and advancing medical excellence,” said Dr. Jochen Reiser, UTMB president and CEO of the UTMB Health System. “The partnership between UTMB and The Sealy & Smith Foundation is very strong. Built on generations of shared vision and trust, it continues to redefine what an academic health system can achieve. Together, we are building one of the nation’s premier cardiovascular programs integrating exceptional patient care, groundbreaking research, innovation and world-class education to improve the lives of patients throughout Texas and beyond.”

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This article originally appeared on CultureMap.com.

UTHealth Houston team joins NASA initiative to protect border drinking water

water watch

Climate change means far more to public health than living with hotter days. Transformations in our weather are contributing to challenges in accessing safe drinking water in some communities.

One of the most dire situations is along the US–Mexico border. The National Aeronautics and Space Administration (NASA) is seeking to address that issue with its Water Quality Applications program. An 11-researcher project led by a UTHealth Houston School of Public Health faculty member has been selected to participate.

“Drinking water is one of the most fundamental public health protections, but producing safe drinking water involves a delicate balance,” Yun Hang, assistant professor of environmental and occupational health sciences, said in a news release. Her team’s proposal was one of 93 that were submitted for funding through NASA’s Research Opportunities in Space and Earth Sciences (ROSES)-2025 program.

This is the first time that NASA has worked with a team devoted to water quality applications. The group, which includes researchers from across the nation, will use satellite observations of Earth, as well as hydrologic modeling, to potentially anticipate and act on water quality conditions as they change. Challenges addressed over the course of the three-year program, which kicked off in June, might include problems with water quality due to climate variability and increased pressure on water resources.

Hang’s team will focus on a pair of borderlands: Paso del Norte and the Rio Grande Valley.

“Working closely with El Paso Water ensures that our research addresses real operational needs while helping utilities better prepare for climate-related water quality changes and continue providing safe drinking water to communities across the Texas border region,” Hang added in the release.

She and the team will use data gathered by NASA on both past and future Earth-observing missions, which will allow them to track environmental changes that may affect source water quality. Combined with past water treatment records and hydrologic models, the team will also utilize artificial intelligence to develop predictive tools that aim to stop issues before they become larger hurdles to water safety.

Another one of the project’s goals is to create visualization tools and source water summaries that can be utilized by those without scientific expertise. The tools will be produced in English and Spanish to further broaden their accessibility.

The hope is that the materials made by the team will also go far beyond the border, with protocols that can be adapted or adopted by other areas dealing with water quality issues.

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