HTX Labs will supply immersive training technology and content to the Air Force and its Space Force military partner. Graphic courtesy of HTX Labs

HTX Labs has won a three-year, $90 million contract to provide immersive training capabilities for the Air Force and Space Force.

Under the new contract, which is set to end in September 2026, HTX Labs will supply immersive training technology and content to the Air Force and its Space Force military partner. The Houston company says the contract culminates more than five years of collaboration with the Air Force.

HTX Labs’ EMPACT cloud-based immersive training platform enables instructors and curriculum developers to create immersive lessons within EMPACT’s digital classrooms. HTX Labs says the Air Force and Space Force will retain full ownership of digital assets that are produced and will allow in-house updates of training materials.

EMPACT’s training lessons can be consumed on tablets, laptops, and virtual reality (VR) headsets.

“HTX Labs is honored to have the confidence of the Air Force per this contract that allows us to continue our collaboration with Airmen and Guardians to deliver immersive training capabilities for the warfighter,” Scott Schneider, CEO and head of growth for HTX Labs, says in a news release.

The ties between HTX Labs and the Air Force are strong.

In May, HTX Labs said it had been awarded a Small Business Innovation Research (SBIR) contract for the Tech Training Transformation Cloud project at the Air Force. The project will let airmen access, create, share, and deliver government-owned digital assets, models, simulations, and content for technical training.

Two months later, HTX Labs said retired Air Force Gen. Craig “Pulse” Wills had joined the company as a strategic adviser. During his Air Force tenure, Wills oversaw a makeover of flight training, including the introduction of extended reality (XR) training and adult learning programs.

“HTX Labs was one of the early pioneers of our Pilot Training Next effort, and they’re dedicated to meeting the needs of our warfighters,” says Wills. “Our young military members are the treasure of this nation. We owe them the very best training and tools available to make them lethal, proficient, and prepared to defend this nation and our way of life.”

Founded in 2017, HTX Labs received $3.2 million in royalty-based equity funding last year from Dallas-based Cypress Growth Capital.

This week's roundup of Houston innovators includes Sarah Essama of Teach for America Houston, Scott Schneider of HTX Labs, and Drs. Maria Elena Bottazzi and Peter Hotez. Photos courtesy

4 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 four local innovators across industries — from health tech to software — recently making headlines in Houston innovation.

Sarah Essama, director of social innovation at Teach For America Houston

Sarah Essama of Teach For America Houston shares how she innovated a new way for students themselves to learn how to innovate. Photo courtesy of Sarah Essama

As director of social innovation at Teach For America Houston, it's Sarah Essama's job to come up with new ways for the organization to support both students and teachers. But, as she explains on the Houston Innovators Podcast this week, Essama realized a huge lesson modern students needed was to learn this innovation process themselves.

This line of thinking turned into Essama founding The Dream Lab, powered by Teach for America Houston.

"The Dream Lab is a set of immersive design spaces where young people leverage their imagination and creativity to innovate and solve problems within their community," she explains.

Last month, the new concept rolled out to high school students in partnership with DivInc Houston, a nonprofit focused on social and economic equity in entrepreneurship, and 21 ninth graders spent the day at the Ion for a mini-innovation accelerator and design showcase. Click here to read more.

Scott Schneider, CEO and founder of HTX Labs

Scott Schneider of HTX Labs has something to celebrate. Photo via htxlabs.com

A Houston-based virtual reality training provider has closed its first round of funding. HTX Labs announced last month that it has received a $3.2 million investment from Cypress Growth Capital.

“We have been looking to secure outside capital to accelerate the growth of our EMPACT platform and customer base but we hadn’t found the right partner who provided an investment vehicle that matched our needs,“ says HTX Labs CEO Scott Schneider in the release. “We found everything we were looking for in Cypress Growth Capital. They have a non-dilutive funding model that aligns with our capital expectations and have the level of experience that really makes this smart money.

The fresh funding will go toward growing and scaling the company's operations — both within the current Department of Defense and expansion opportunities into key commercial markets, like heavy industry, manufacturing, and higher education. Additionally, the funding will support increased customer adoption. Click here to read more.

​Drs. Maria Elena Bottazzi and Peter Hotez 

Two Houston health care innovators got the green light to distribute their low-cost COVID-19 vaccine in Indonesia. Photo courtesy of TMC

After months of development and testing, the Houston-born COVID-19 vaccine has gotten the go-ahead to be produced and distributed in Indonesia.

IndoVac was created by the Texas Children’s Hospital Center for Vaccine Development and Baylor College of Medicine. Drs. Peter Hotez and Maria Elena Bottazzi lead the vaccine project. Bio Farma is licensing IndoVac from BCM Ventures, the commercial group at the Baylor College of Medicine.

“Access to vaccines in the developing world is critical to the eradication of this virus,” Hotez, co-director of the Texas Children’s Hospital Center for Vaccine Development and dean of the National School of Tropical Medicine at Baylor College of Medicine, says in a news release. Click here to read more.

VR training startup, HTX Labs, has raised funding from an outside investor for the first time. Courtesy of HTX Labs

Houston-based virtual reality startup raises $3.2M in first outside capital round

fresh funding

HTX Labs, a Houston-based company that designs extended reality training for military and business purposes, announced last week that it has raised its first outside capital.

The company has received a $3.2 million investment from Cypress Growth Capital. Founded in 2017, HTX Labs — developer of the EMPACT Immersive Learning Platform — has been granted funding from the Department of Defense as well as grown its client base of commercial Enterprises. The platform uses virtual and extended reality that "enables organizations to rapidly create, deploy, measure, and sustain cost-effective, secure, and centralized immersive training programs, all within engaging, fully interactive virtual environments," per a news release.

“We have been looking to secure outside capital to accelerate the growth of our EMPACT platform and customer base but we hadn’t found the right partner who provided an investment vehicle that matched our needs,“ says HTX Labs CEO Scott Schneider in the release. “We found everything we were looking for in Cypress Growth Capital. They have a non-dilutive funding model that aligns with our capital expectations and have the level of experience that really makes this smart money.

"Cypress has a decade-long track record of success in helping emerging software and services companies achieve scale," he continues. "It is clear that the team’s collective entrepreneurial and operating experience will be of tremendous benefit to us as we focus on expanding our customer base in a very intentional way.”

The fresh funding will go toward growing and scaling the company's operations — both within the current Department of Defense and expansion opportunities into key commercial markets, like heavy industry, manufacturing, and higher education. Additionally, the funding will support increased customer adoption.

“Scott and his team have built an exceptional business that is poised for dramatic growth,” says Cypress Partner Pat McCaffrey in the release. “HTX Labs’ modern, immersive training solution provides clients with a force multiplier for modernizing training and an unmatched ROI.”

This week's roundup of Houston innovators includes Scott Schneider of HTX Labs, Adrienne Mangual of The Artemis Fund, and Derrick Morse of Rugged Robotics. 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 virtual reality to robotics — recently making headlines in Houston innovation.

Scott Schneider, CEO and founder of HTX Labs

Scott Schneider of HTX Labs joins the Houston Innovators Podcast to discuss how his VR software is helping to train Department of Defense pilots. Photo via htxlabs.com

Over the past few years, HTX Labs — a software development startup focusing on enterprise virtual reality training software — has tripled its team and is looking to hire another 20 people to support its growth — specifically looking for sales, business development, and operational positions. All this growth is to support its work with the military, which makes up about 95 percent of the startup's focus now, says Scott Schneider, CEO and founder, on last week's Houston Innovators Podcast episode.

"In 2021, we were all about building capability and building our platform," Schneider says, "and 2022 is all about adoption. It's a land grab out there for doing what we're doing. We're trying to drive adoption within the government and outside in the commercial and private sector."

Schneider shares more on what he's focused on this year and how HTX Labs has grown alongside the Houston innovation ecosystem on the podcast episode. Click here to listen to the episode and read more.

Adrienne Mangual, vice president of finance and operations at The Artemis Fund

Adrienne Mangual has a background in finance and consulting. Photo courtesy of Artemis

The Artemis Fund is celebrating a new member of its small, but mighty team focused on funding female founders within fintech, e-commerce tech, and care-tech.

Adrienne Mangual is the new vice president of finance and operations at the firm. She has her MBA from Rice University and has worked for 15 years in finance roles at J.P. Morgan and Key Energy Services. Over the past few years, she's worked in consulting positions with startups and technology.

"This is an exciting time to join The Artemis Fund as the fund is growing and our reach is expanding and continuing to make an impact on female founders," Mangual tells InnovationMap. "I am looking forward to supporting existing and future female founders and working with Diana, Stephanie, and Leslie as part of the team making investment decisions for the fund." Click here to read more recent new hires in Houston tech.

Derrick Morse, CEO and co-founder of Rugged Robotics

Rugged Robotics has created a solution that provides construction customers with an automated layout-as-a-service tool. Image via LinkedIn

Rugged Robotics, a Houston-based robotics startup working in the commercial construction field, has closed its latest round of funding. The $9.4 million series A round was led by BOLD Capital Partners and Brick & Mortar Ventures.

“We’re building better,” says Morse, who serves as CEO, in the release. “We set out to modernize the construction industry, and to build practical solutions that solve the pain points contractors struggle with every day. We believe that layout is the ideal starting point. Layout is the beachhead for construction automation. It sits at the intersection of the digital and physical world, solves a huge problem, and unlocks the ability to deploy robotics onto job sites in a very meaningful way.” Click here to read more.

Scott Schneider of HTX Labs joins the Houston Innovators Podcast to discuss how his VR software is helping to train Department of Defense pilots. Photo via htxlabs.com

Houston software startup is tapping into the military sector with VR training tools

Houston innovators podcast episode 127

For years, the idea of virtual and augmented reality has been growing in use and popularity from a consumer perspective. VR art experiences are popping up in every major city, and Snapchat and Instagram filters are flooding our phone screens daily. But one Houston company had the foresight to tap this tech in the business world.

"Our real mission around HTX Labs was to take what we felt was amazing technology — virtual reality, augmented reality, extended reality, and immersive technology in general — and take it from a primary consumer focus into enterprise," Scott Schneider says on this week's episode of the Houston Innovators Podcast.

A VR headset is different from your usual office appliance — it's not a printer or a desktop computer. So, addressing this technology and how companies deal with network security and identity management — plus the software designing itself — has been HTX Labs' bread and butter since it was founded in 2017.

"It's always been around how do we elevate training — and that's really been our mission for the past five years," Schneider says.

Over the years, the startup has had the opportunity to enter a new sector, and it's represented a pretty big pivot for the company. Now, 95 percent of HTX Labs's focus is on the Department of Defense.

"Around 2018, we were approached by the U.S. Air Force," Schneider says. "Three and a half years later, we are fully engaged with the DoD – Air Force, Navy, Army. Our big focus is around training aircraft pilots and maintainers — if you fly them or you fix them, they are using our technology."

HTX Labs has tripled its team over the past few years, and is looking to hire another 20 people to support its growth — specifically looking for sales, business development, and operational positions.

"In 2021, we were all about building capability and building our platform," Schneider says, "and 2022 is all about adoption. It's a land grab out there for doing what we're doing. We're trying to drive adoption within the government and outside in the commercial and private sector."

Schneider shares more on what he's focused on this year and how HTX Labs has grown alongside the Houston innovation ecosystem on the podcast episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.


VR training startup, HTX Labs, recently brought on Houston-based Solvay GBU Peroxides North America as a client. Trainees can work on a digitized version of the plant that looks as real as could be. Courtesy of HTX Labs

This growing Houston startup is making training programs safer and cheaper with VR applications

VR verified

Many employers are doing reality checks when it comes to workplace training. They're wondering how they can better train their workers. But they're realizing that traditional training can be dull and even unproductive, so they're enlivening and enriching their training through virtual reality.

Houston-based startup HTX Labs LLC is one of the tech companies at the forefront of the VR-infused modernization of workplace training. Among its customers are the United States Air Force, Mastercard, Rackspace, and Houston-based Solvay GBU Peroxides North America, a maker of hydrogen peroxide.

For the Air Force, HTX Labs creates software that provides immersive training for pilots on how to deal with emergency procedures in the air and on the ground. This is something that traditionally has been carried out only with expensive simulators. Mastercard and Rackspace rely on HTX Labs' technology to teach employees — through VR-generated replicas of actual workspaces — how to handle active-shooter situations, workplace violence, and fires.

Solvay turned to the company for VR-propelled help with training workers about loading and unloading hazardous materials and other aspects of maintaining safety around potentially dangerous chemicals. HTX Labs and Solvay will jointly resell their VR-based courses to other companies, says Scott Schneider, founder and CEO of HTX Labs.

At its core, the company's VR training zeroes in on the trainee, providing engaging, interactive experiences that stress "learning by doing," Schneider says.

Training programs that have been around for decades are "designed for trainers, not necessarily for trainees," he says.

"A PowerPoint presentation, a YouTube video — it's all about the message the trainer wants to convey as opposed to 'Let's think about how people actually learn.' Studies show people learn by actively doing — active learning versus passive learning," Schneider continues. "We married that idea of active learning with virtual reality and immersive technology to deliver a learning experience that increases retention and the development of muscle memory."

In a VR-based training session, participants are equipped with VR headsets and are plunged into realistic environments where they're presented with scenarios in which they, for instance, pick up a fire extinguisher and put out a blaze, or they land or eject from a military jet that's experiencing a problem such as an engine fire.

Schneider says this type of interactive training helps participants boost the amount of information they remember. According to the Society for Human Resource Management, VR learners retain 75 percent of what they've been taught, compared with a 10 percent retention rate from reading or listening to a presentation.

"It's a much better way, a much more realistic way to learn," Schneider says.

Employers big and small are catching on to this kind of advanced training. According to Schneider, software produced by companies like HTX Labs allows employers to conduct training that:

  • Avoids unsafe real-life settings in favor of safe virtual settings.
  • Does not disrupt workplaces.
  • Reduces costs.

A CNBC article says the cost-saving aspect appeals to a number of employers like Boeing, UPS, and Walmart.

"Training facilities cost hundreds of thousands, if not millions, of dollars to build. Sending out-of-town employees to them racks up travel expenses. And the lost time for training is considerable," the article reads.

By comparison, a one-time investment in VR hardware and software — technology that can be used by many workers — might cost a couple of thousand dollars per employee.

"Most companies in the private sector are dipping their toes into it a bit, maybe doing some stuff internally," Schneider says of VR-based training. "But on a larger scale, there's not a lot of players doing exactly what we're doing."

Schneider envisions HTX Labs, which was founded in 2017, expanding into training centered on augmented reality and mixed reality.

For the uninitiated, VR refers to computer-generated 3D environments that you interact with and are immersed in, according to Live Science. AR superimposes sounds, images and text onto what you see in the real world, along the lines of "Minority Report" or "Iron Man," Live Science explains.

"Mixed reality is the result of blending the physical world with the digital world," according to Microsoft. "Mixed reality is the next evolution in human, computer, and environment interaction, and unlocks possibilities that before now were restricted to our imaginations."

No matter the type of technology, HTX Labs strives to "humanize training" by putting the student at the center of the learning experience, Schneider says.

For now, HTX Labs produces VR training software under the EMPACT brand name and teams up with hardware vendors to sell turnkey offerings.

Today, the company employs 12 people, all of whom are in Houston. Schneider would like to increase HTX Labs' headcount by 50 percent before the end of 2019. Also this year, Schneider hopes to raise its first round of outside capital, but only after HTX Labs secures more private and government contracts. And he doesn't rule out enlarging the company through M&A activity.

Overall, Schneider sees tremendous potential for HTX Labs, as pretty much any employer can benefit from VR training for its workers. VR training — already part of a multibillion-dollar VR market — is expected to be so pervasive, in fact, that software review website Capterra predicts one-third of small and midsize businesses in the U.S. will be piloting VR training of employees by 2021.

"VR is … being used to enhance employee training to give workers immersive 'learning by doing' opportunities they can't find in a classroom or online course," Capterra notes. "It's a revolution in an area that's historically been static and unengaging for workers."


The U.S. Air Force also uses HTX Labs' technologies to train for emergency response procedures.Courtesy of HTX Labs

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3 Houston companies land on Deloitte’s Technology Fast 500 list

trending up

Three Houston companies have made this year’s Deloitte North America Technology Fast 500 list.

The report ranks the fastest-growing technology, media, telecommunications, life sciences, fintech, and energy tech companies in North America. The Houston companies to make the list, along with their revenue growth rates from 2021-2024, include:

  • No. 16 Action1 Corp., a provider of cybersecurity software. Growth rate: 7,265 percent
  • No. 92 Cart.com, a commerce and logistics platform. Growth rate: 1,053 percent
  • No. 312 Tellihealth, a remote health care platform. Growth rate: 244 percent

“Houston’s unique blend of entrepreneurial energy and innovation continues to strengthen the local business community, and I’m thrilled to see Houston companies honored on the 2025 Deloitte Technology Fast 500 list. Congratulations to all the winners,” said Melinda Yee, managing partner in Deloitte’s Houston office.

Action1 is no stranger to lists like the Deloitte Technology Fast 500. For instance, the company ranked first among software companies and 29th overall on this year’s Inc. 5000, a list of the country’s fastest-growing private companies. Its growth rate from 2021 to 2024 reached 7,188 percent.

Mike Walters, president and co-founder of Action1, said in August that the Inc. 5000 achievement “reflects the dedication of Action1’s global team, who continue to execute against an ambitious vision: a world where cyberattacks exploiting vulnerabilities are entirely prevented across all types of devices, operating systems, and applications.”

Atlanta-based Impericus, operator of an AI-powered platform that connects health care providers with pharmaceutical and life sciences companies, topped the Deloitte list with a 2021-24 growth rate of 29,738 percent.

“Our mission is to set the standard for ethical AI-powered physician connections to pharma resources, accelerating and expanding patient access to needed treatments,” said Dr. Osama Hashmi, a dermatologist who’s co-founder and CEO of Impiricus. “As we continue to innovate quickly, we remain committed to building ethical bridges across this vital ecosystem.”

How executive education retains your best employees + drives success

Investing in People

Hiring is tough, but retaining great people is even harder. Ask almost any manager what keeps them up at night, and the answer usually comes back to the same thing: How do we keep our best employees growing here instead of looking elsewhere?

One reliable approach has held up across industries. When people see their employer investing in their development, they’re more likely to stay, contribute, and imagine a future with the organization.

The data backs this up. Employees who take part in ongoing training are far less likely to leave, and the effect is especially strong for younger workers. One national survey found that 86% of millennials would stay with an employer that invests in their development. Companies that build a real learning culture see retention jump by 30-50%. The pattern is consistent: When people can learn and advance, they stay.

The ROI of executive education
Professional development signals value, but it also builds capability. When people have access to structured learning, they become better problem-solvers, more adaptable, and more confident leading through change.

That's the focus of Executive Education at Rice University's Jones Graduate School of Business. The portfolio is built for the realities of modern leadership: AI and digital transformation courses for teams navigating new technologies, and deeper programs in innovation and strategy for leaders sharpening long-term thinking.

“People, managers, professionals, and executives in all functional areas of business can benefit from this program,” notes Jing Zhou, Mary Gibbs Jones Professor of Management and Psychology at Rice. “We teach the fundamental principles of how to drive innovation and broaden the cognitive space.”

That perspective runs through every offering, from the Rice Advanced Management Program to the Leadership Accelerator and Leading Innovation. Each program gives participants practical tools to think strategically, work across teams and make meaningful change inside their organizations.

Building the leadership pipeline
Leadership development isn’t a perk anymore. It’s a strategic need for any organization that wants to grow and stay competitive.

Employers know this — nearly two-thirds say leadership training is essential to their success — yet employees still report feeling stalled. Reports find 74% of employees feel they aren’t reaching their potential because they lacked meaningful growth opportunities.

Rice Business designs its Executive Education programs to address that gap. The Rice Advanced Management Program, for example, supports leaders preparing for C-suite, board, or enterprise-level roles. Its format — two in-person modules separated by several weeks — gives participants space to test ideas at work, return with questions, and build on what they’ve learned. The structure fits demanding executive schedules while creating room for deeper reflection and richer peer connections.

Just as important, the program helps senior leaders align on strategy and culture. Participants develop a shared language and build stronger relationships, which translates into clearer decision-making, better collaboration, and less burnout across teams.

Houston’s advantage
Houston gives Rice Business Executive Education a distinctive edge. The city’s position in energy, healthcare, logistics, and innovation means participants are learning in the middle of a global business ecosystem. That proximity brings a mix of perspectives you don’t get in more siloed markets, and it pushes leaders to apply ideas to real-world problems in real time.

The expertise runs deep on campus, as well. Participants learn from faculty who are shaping conversations in their fields, not just teaching from a playbook. For many organizations, that outside perspective is a meaningful complement to in-house training — a chance to stretch thinking, challenge assumptions, and broaden leadership capacity.

Rice Business offers multiple paths into that experience, from open-enrollment programs like Leading Organizational Change, Executive Leadership for Women, or Driving Growth through AI and Digital Transformation to fully customized corporate partnerships. Across all formats, the focus is the same: education that is practical, relevant, and built for impact.

Investing in retention and results
When organizations make room for real development, the payoff shows up quickly: higher engagement, stronger leadership pipelines, and lower turnover. It also shapes the culture. People are more willing to take risks, ask better questions, and stay curious when they know learning is part of the job.

As Brent Smith, senior associate dean for Executive Education at Rice Business, explains, “There’s a layer of learning in leadership that’s about helping people adopt a leadership identity — to see themselves as the actual leader for their organization. That’s not an easy transition, but it’s the foundation of lasting success.”

For companies that want to build loyalty, deepen leadership capacity, and stay competitive in a fast-changing environment, investing in people isn’t optional. Rice Business Executive Education offers a clear path to do it well. Learn more here.

Check out upcoming programs:

Houston’s 10 most valuable startups revealed in new report

by the numbers

The Greater Houston Partnership has released its list of the 10 most valuable startups that are fueling the city’s growth and entrepreneurial energy, including industry giants like Axiom Space and Fervo Energy.

Currently, Houston hosts more than 1,300 startups in industries such as energy, life sciences, manufacturing and aerospace, according to the GHP. The list ranks its top 10 startups by valuation based on the company’s last private funding round, reflected in Pitchbook data, as of Oct. 20 of this year.

The top 10 list includes:

10. NXTClean Fuels

Valuation: $530 million

NXTClean Fuels builds biofuel refineries that produce renewable fuel by using feedstocks like cooking oil and recycled organic materials.

9. Homebase

Valuation: $660 million

HR tech company Homebase provides employee management software that helps manage and optimize timesheets, payroll and more, with over over 100,000 small businesses and 2 million hourly workers using its product.

8. Zolve

Valuation: $800 million

Zolve is a banking platform that provides customers with access to financial products that aim to be accessible, flexible, and affordable than other financial platforms.

7. Stramsen Biotech

Valuation: $807 million

Stramsen Biotech develops plant-based drug therapies that target both infectious and noninfectious diseases, which include cancer, diabetes, HIV, kidney disease and neurological issues.

6. Octagos

Valuation: $843 million

Healthtech company Octagos has developed a remote cardiac monitoring software driven by AI that helps consolidate patient data in real-time, assisting healthcare professionals in providing quicker, easier and more accurate care.

5. Fervo Energy

Valuation: $1.4 billion

Pioneering geothermal company Fervo Energy combines horizontal drilling and fiber-optic sensing to produce electricity. The company is developing its flagship Cape Station geothermal power project in Utah. The first phase of the project will supply 100 megawatts of power beginning in 2026

4.Cart.com

Valuation: $1.7 billion

Cart.com is an e-commerce giant and logistics solutions provider that was founded in 2020 and obtained unicorn status within just three years.

3. Axiom Space

Valuation: $2.1 billion

Axiom Space is one of the anchor tenants at the Houston Spaceport, and has completed four missions of sending commercial astronauts to the ISS since 2022. In 2027, the company expects to see the first section of its private space station, Axiom Station, launched into low-earth orbit.

2. Solugen

Valuation: $2.175 billion

Solugen replaces petroleum-based products with plant-derived substitutes through its Bioforge manufacturing platform.

1. HighRadius

Valuation: $3.2 billion

HighRadius uses advanced technology to automate and manage accounts receivable processes for businesses worldwide.

The GHP also released its State of Houston’s Tech and Innovation Landscape, which mapped Houston’s digital and innovation sectors. Read the full report here.