These are the 2 Houston startups that joined the unicorn club in 2021

money moves

In total, Texas saw seven companies reach unicorn status in 2021. Image via Getty Images

Houston welcomed a duo of unicorns in 2021, according to a new report. But these unicorns aren’t those mythical multicolored creatures. Rather, they’re startups valued at $1 billion or more.

As of December 2021, there were more than 900 unicorns around the world, according to market research company CB Insights. Former unicorns include Airbnb, Facebook, and Google.

Joining the unicorn club in 2021 were two startups based in the Houston area:

  • Solugen, currently valued at $1.8 billion, according to the company, which uses corn syrup to produce chemicals.
  • Axiom Space, valued at more than $1 billion as of February. The startup is developing the world’s first space station for commercial purposes.

Houston's other unicorn is fintech company, HighRadius, which reached the $1 billion valuation mark in January of 2020.

The Lone Star State added a few other companies to its unicorn herd. Austin had four companies claim the prestigious status — the most newly minted unicorns in Texas — and now has a total of six unicorns. Dallas added one new unicorn to its economy, making a total of three Dallas area-based unicorns, according to CB Insights.

Here are the other 2021 unicorns in Texas:

  • Austin-based Iodine Software, valued at more than $1 billion as of December. The company’s artificial intelligence offering aims to help healthcare organizations improve their operations.
  • Austin-based ZenBusiness, valued at $1.7 billion as of November. ZenBusiness provides an online platform designed to help entrepreneurs start, run, and grow their small businesses.
  • Cedar Park-based Firefly Aerospace, valued at more than $1 billion as of May. The startup makes rockets and commercial spacecraft.
  • Austin-based The Zebra, valued at more than $1 billion as of April. The Zebra runs an online marketplace that enables consumers to compare insurance quotes.
  • Irving-based Caris Life Sciences is valued at a whopping $7.83 billion as of May. Caris employs artificial intelligence to come up with targeted cancer treatments.

Startups, particularly those in the tech space, increasingly are drawn to Austin. In 2020, CompTIA, a trade group for the tech industry, placed Austin atop its Tech Town USA index. The organization cited Austin as a “favorable alternative” to the San Francisco Bay Area and New York City for startups and other companies.

Joshua Baer, founder and CEO of Austin-based Capital Factory, an accelerator for startups, told Texas Monthly in April that Austin’s status as a business magnet has risen recently.

“Suddenly, we’ve gone from us having to beat our chest and tell everybody else how great Austin and Texas are to everybody showing up here, telling us why it’s so great, and why they moved here,” Baer says.

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This article originally ran on CultureMap.
Solugen closed its Series C funding round at $357 million to grow its chemical products. Photo via Getty Images

Houston chemicals company raises $357M, claims unicorn status

money moves

Houston-based Solugen, a startup that specializes in combating carbon dioxide emitted during the production of chemicals, has hauled in $357 million in a Series C funding round. That amount eclipses the size of any Houston VC funding round this year or last year.

The Series C round lifts Solugen's pre-money valuation to $1.5 billion, according to the Axios news website. This gives Solugen "unicorn" status as a startup with a valuation of at least $1 billion.

Singapore-based GIC and Edinburgh, Scotland-based Baillie Gifford led the round, with participation from Temasek Holdings, affiliates of BlackRock, Carbon Direct Capital Management, Refactor Capital, and Fifty Years.

Since its founding in 2016, Solugen has raised more than $405 million in venture capital, according to Crunchbase.

"Solugen's vision for cleaner chemicals through synthetic biology has the potential to be a fundamental shift in how chemicals are made, to help tackle the environmental challenges we face globally. The chemical market itself is colossal, and Solugen is just getting started," Kirsty Gibson, investment manager at Baillie Gifford, says in a September 9 news release.

Solugen's patented Bioforge processes produce "green" chemicals from bio-based feedstocks. These chemicals are aimed at reducing or eliminating carbon emissions from chemical producers. The Series C funding will help Solugen expand the Bioforge platform and broaden the reach of Solugen's products.

Carbon dioxide from chemical production ranks among the greatest contributors to industrial greenhouse gas emissions.

CNBC explains that Solugen designs and grows enzymes that can turn sugar into chemicals needed to make an array products used in many industrial settings. The company's bio-based chemical offering already includes water treatments, a chemical that makes concrete stronger, another chemical that makes fertilizers more efficient, and detergents that are strong enough to clean a locker room or mild enough to be used for facial wipes, according to CNBC.

"This fundraising round allows us to continue expanding the footprint of our Bioforge technology to give industries the products they need to reduce emissions in their existing supply chains, without compromising on performance or economics," Sean Hunt, co-founder and chief technology officer of Solugen, says in the news release.

Three days before the funding announcement, Solugen made news of a different sort.

Axios reported September 7 that Solugen plans to open a new R&D facility outside Texas because many of the state's social policies — including its abortion restrictions — are making it hard to recruit employees.

Solugen employs about 115 people, most of whom work from its Houston headquarters, Axios says. The startup plans to more than double its R&D capability over the next two years, representing around 100 jobs, with most of those workers expected to be assigned to a new facility that will be set up in California or Massachusetts.

"We want to make sure we're hiring the top enzymologists and chemical engineers," Solugen CEO Gaurab Chakrabarti tells Axios. "We've come to the conclusion after talking to lots of candidates that they want to join Solugen, but they don't feel comfortable coming to Texas, so for us it's become a no-brainer to have R&D facilities elsewhere."
At a recent virtual event, experts discussed the hard tech wave that's coming for Houston. Photo via Getty Images

A hard tech revolution is coming, and Houston is primed to play a role in it

diving into deep tech

The past couple decades of innovation has been largely defined by software — and its been a bit of a boom. However, lately it's become evident that it's time for hardware innovation to shine.

At the HX Venture Fund's recent conference, Venture Houston, a few hard tech innovators joined a virtual discussion on the future of hardware — and what Houston's role will be in it.

When it comes to advancing technology for humankind, Adam Sharkawy, founder and managing partner of Boston-based Material Impact, a HXVF portfolio fund, says it's time to expand the walls of what is possible.

"Unlike other types of technologies that may facilitate the possible, deep and hard technologies expand what is in the realm of the possible," he says on the panel. "Software has caught up, and we need a new deep tech wave."

And the future looks promising, as Sharkawy says he's seen hard tech grow over the past 5 to 7 years by about 22 percent. Nic Radford, president and CEO of Houston Mechatronics agrees it's time to shift the focus to hard tech.

"The Information Age was the ubiquitous manipulation of the virtual world, but now we need to uncover the ubiquitous manipulation of the physical world is," he says. "And we need to make those investments toward that."

But investments seem, at least in the recent past, harder to come by for hard tech startups compared to software companies with quick exit strategies.

"Deep tech is traditionally thought of as requiring deep pockets," Sharkawy says.

Radford says there was over $167 billion in capital deployments last year, and only 8 percent of that went to industrial or hard tech. Hardware, he says, is tougher to evaluate, they take longer to exit and are tougher to scale.

"To me that's what makes them a gold mine," Radford adds. "It's an underserved market for sure, and that's because we're tougher to evaluate."

Something to note though, he continues, is that hard tech is going to have a bigger societal impact, but maybe it's not the one with the biggest return.

"I think corporates have an special role to play in the inevitability of hard tech," Radford says. "They aren't completely motivated by financial returns."

Gaurab Chakrabarti, CEO and co-founder of Solugen, says he's had a different experience with raising funds. The Houston entrepreneur has raised over $100 million and is planning to go public soon. He's achieved this by attracting investment from the top VC funds in the country. If you zero in on these powerful funds, you can see they are dedicating more and more funds to this arena. And, he predicts, other VC funds will follow.

"This is a unique time for hardware companies to go and and raise from the top venture capitals of the world," Chakrabarti says.

The city of Houston, with its firm footing in the energy and space industries has an important role to play in this new era.

"The Houston area has all the key ingredients to be an innovation hub — no question," Sharkawy says.

The panelists identified Houston's fine education institutions, major corporations present, access to talent, and more as indicators for success. But the innovation here needs to continue to develop intentionally.

"I'd love to see Houston not try to copycat into a general tech hub," Sharkawy says. "Instead it would be great for Houston leverage its unique position as a leader in energy and space and help its constituents of more traditional energy — big corporates, for example — transform into the new frontier."

Vanessa Wyche, deputy director at NASA's Johnson Space Center, says she's seen the space industry take off as the field becomes more and more commercialized. And locally there's a lot of potential for Houston and all the resources and infrastructure that already exists.

"It's about taking what you're good at, and making it better," she says.

Each of the panelists expressed confidence in this evolving wave of hard tech — and are keeping a close watch on the major players as well as the city of Houston.

"We're going to have to get into the world and do something," Radford says. "That next wave of innovation is specifically interacting with our environment, in my opinion."
Mobile vet business, virtual reality for space, plant-based biotech, and more — all this innovation and more is coming out of Houston startups. Courtesy photos

Editor's Picks: Top 10 Houston startup feature stories of the year

2020 in review

Editor's note: As 2020 comes to a close, InnovationMap is looking back at the year's top stories in Houston innovation. This past year, InnovationMap featured profiles on dozens of these Houston startups — from blockchain and software companies to startups with solutions in health care and oil and gas. Here are excerpts of 10 that stood out throughout 2020 — be sure to click through to read the full story.

Houston health tech startup moves into new office amid major growth

BrainCheck has moved to a new office as it grows its team and expands its product. Natalie Harms/InnovationMap

Following a series A round of fundraising, a Houston digital health startup is on a bit of a hiring spree, leading to new office space the company has room to grow into.

BrainCheck, which was founded in 2015 by neuroscientist David Eagleman, is a cognitive assessment startup that has developed a software tool for primary care doctors to use to assess their patients' cognitive health so that they can more quickly diagnose and treat them for maladies like dementia.

The 19-person company headquartered in Houston — with a secondary office in Austin focused on product development — has relocated its operations from coworking space in the Texas Medical Center to an office in the Rice Village area. The move was made possible by an $8 million series A financing round that closed in October.

"It's pretty exciting to have reached this milestone where we need more space," Yael Katz, co-founder and CEO of BrainCheck, tells InnovationMap. "We were pretty much bursting at the seams in our old office." Click here to continue reading.

Houston startup raises $30M, plans to be 'next iconic chemical company' with plant-based alternatives

Solugen, which uses plant-centered biotechnology to produce environmentally friendly chemicals, has raised an additional $30 million and is speculated to soon reach unicorn status. Photo via solugentech.com

While Forbes recently anointed Houston-based Solugen Inc. as one of the next billion-dollar "unicorns" in the startup world, Dr. Gaurab Chakrabarti shrugs off the unicorn buzz.

Chakrabarti, a physician and scientist who's co-founder and CEO of the startup, concedes he doesn't know whether Solugen will be worth $1 billion or not. But he does know that the startup aspires to be a key competitor in the emerging "climate tech" sector, whose players strive to combat climate change. Chakrabarti estimates the climate-tech chemical space alone represents a global market opportunity valued at $1 trillion to $2 trillion per year.

Solugen's overarching goal in the climate-tech market: Replace petroleum-based chemicals with plant-based substitutes.

"I'd love it if we were the poster child that drives climate tech to be the next big, sexy trend," Chakrabarti says.

Chakrabarti acknowledges Solugen's investors, executives, and employees hope the startup succeeds financially. But success, he believes, goes beyond making money and plotting an exit strategy. Instead, Chakrabarti emphasizes "a shift in thinking" on climate tech that he says promises to transform the fledgling sector into a "true niche" that'll be "good for everyone." Click here to continue reading.

Houston mobile vet company plans to roll out services statewide

A Houston vet has seen growth in business for her mobile vet company due to the pandemic. Now, she's planning major growth. Photo courtesy of Rollin' Vets

It's safe to say that the real winners of work-from-home trends that sparked due to the pandemic are our pets. Dogs and cats that were used to not seeing their owners for eight hours every work day now have 24-hour access to attention, treats, and ear scratches.

This increased attention pets are getting from their owners has also meant an increased awareness of pet health, says Katie Eick, founder of Houston-based Rollin' Vets, a startup that has mobilized veterinary services.

"People are home and observing their animals more. They're seeing and recognizing things they might not have if they were at work all day," Eick says.

That's, of course, not the only way the pandemic has affected business for Eick. She founded her company in 2016 and was seeing steady growth as delivery and on-demand services like Uber, DoorDash, etc. increased in use and awareness. Click here to continue reading.

With fresh funds, this Houston entrepreneur plans to scale his industrial e-commerce startup

Tim Neal, CEO of Houston-based GoExpedi, shares how his company plans to scale following its recent series C closing. Photo by Colt Melrose for GoExpedi

Consumers are getting more and more used to picking up their laptops or phones and ordering everyday items in just a few clicks or taps — and seeing those items delivered in just a few days. To Tim Neal, CEO of Houston-based GoExpedi, ordering parts and tools for industrial businesses should be just as easy.

GoExpedi, which just closed a $25 million series C round, has seen rising demand for its e-commerce platform focused on industrial orders, and Neal credits this demand on a change in mindset within the industrial sector. Additionally, he says he's seen clients more and more focused on cutting costs.

Neal shared his company's plans for growth and scale, as well as how fundraising during a pandemic went, in an interview with InnovationMap. Click here to continue reading.

Family-owned composting startup redesigns how Houston disposes of waste

A Houston-area family has made it their business to help Houstonians reduce waste in a convenient, sustainable way. Photo courtesy of Happy Earth Compost

Jesse Stowers has always strived to do his part for the environment. From recycling and making eco-conscious choices, the Stowers were doing everything right, but was it enough?

The family of five was throwing away two trash bags of waste a day that would later end up in landfills until Stowers stumbled on composting as a solution. In May, he launched Happy Earth Compost, a company set on making Houston more sustainable.

If you're unfamiliar with composting, get ready for a crash course. Composting is a sustainable method of decomposing organic solid wastes and turning that waste into compost, a substance that helps plants grow. Food scraps and household items like rice, pasta, meat, poultry, fish, vegetables, fruits, coffee grounds, spoiled food, and tea bags are just a few of the many things that can be composted rather than thrown away.

"Your food waste and compostable waste is anywhere from 25 to 50 percent depending on the family," explains Stowers. According to Happy Earth Compost, one human creates an estimated 1,642 pounds of trash each year. Click here to continue reading.

Houston virtual reality company collaborates with space health organization

Houston-based Z3VR has been granted $500,000 to work or virtual reality applications in space. Photo courtesy of Z3VR

Houston-based startup Z3VR received a $500,000 grant from Baylor College of Medicine's Translational Research Institute for Space Health, or TRISH, last month to continue exploring how the wide world of virtual reality can boost mental and physical health for astronauts on a mission to Mars.

Founded in 2017 by a group of emerging tech enthusiasts, Z3VR discovered its niche in what CEO Josh Ruben calls the "intersection of biosensors and VR" and began consulting with TRISH in 2018. Last year, the company received its first funding from the institution to create virtual reality platforms that promote exercise and provide additional sensory experiences for isolated Mars-bound astronauts.

This new grant, however, takes Z3VR's mission one step farther. The year-long grant will allow Z3VR, in partnership with NASA labs in California and Houston, to further develop their VR platform to use eye movement tracking to identify cognitive, psychiatric, or ophthalmological issues before they arise.

Getting out ahead of issues is more important than ever on the Mission to Mars. Because of the duration and distance of the mission, these astronauts will be uniquely isolated and will face a communication lag of up to 45 minutes between space shuttle and command center.

"What that means from a health care perspective is that pretty much everything you need to treat and diagnose these astronauts needs to be self contained on the spacecraft itself," Ruben says. "The system that we are building is sensitive enough to pick up on these cognitive, ophthalmological, and psychiatric conditions well before they become clinically relevant. It'll be long before the astronaut knows there's a problem. That's the hope." Click here to continue reading.

Houston startup — buoyed by Halliburton — plans to scale

Houston-based Nanotech was the first company to be selected for Halliburton Labs, a recently announced startup incubator. Photo via halliburtonlabs.com

A Houston-based material science startup that uses nanotechnology for thermal insulation and fireproofing has been chosen as the first participant of Halliburton Labs, an innovation incubator, announced late last month by the oil and gas giant.

Halliburton Company chose Nanotech Inc., among a round of contenders to be the first participant of their 12-month program located at their Houston headquarters. Halliburton will provide Nanotech with its own office space, access to Halliburton facilities, technical expertise, and an extensive network to accelerate their product to market.

"With Nanotech's shield material we can have fireproofing infrastructure, saving lives and helping save the planet," says Mike Francis, CEO of Nanotech. "But it's tremendously difficult to scale our small lab to take our product globally, so when we heard about this opportunity with Halliburton Labs, we jumped immediately on it."

Nanotech Inc., started with a singular technology and a simple mission to fireproof the world and reduce energy consumption globally. The base nano shield, flex shield, and forged shield products contain nanoparticles ranging from 1 micrometer to 1 nanometer in a water-based solution with other inorganic compounds. The coating is heat resistant, non-flammable, and the nontoxic properties ensure it is sustainable for the environment. Click here to continue reading.Click here to continue reading.

This Houston tech startup is helping businesses find the funds during COVID-19 crisis and beyond

Houston startup Grant Source, which helps its clients find the right grants to apply for, has seen a surge in business amid the coronavirus shutdown. Getty Images

Since 2015, Grant Source has perfected the art of helping businesses, foundations, and organizations find and secure grant funding — and now their expertise has become vital to COVID-19 response initiatives.

With the devastation caused by the novel coronavirus, America's medical organizations have been scrambling to obtain the funds required to purchase the testing kits, masks, PPE, and other life-saving products needed to help curb the effects of the global pandemic and now, thanks to the mobile and web platform, they're getting the assistance they need to accomplish that goal.

"COVID-19 response is actually our claim to fame right now," says Allen Thornton, founder and CEO of Grant Source. "We have probably done more business in the last few months than we have since we started. Simply because we are helping people find grants with the CARES Act. There's over $500 billion out there, which has created overnight a $40 billion market opportunity for us."

Grant Source has worked extensively with city, county, state, and government agencies to secure grant funding, which is why they have become a game changer for those that need emergency capital to combat COVID-19's challenges. Click here to continue reading.

Houston energy tech startup raises $11M to grow its team locally

Houston-based Datagration Solutions Inc. has raised millions in its latest round — led partially by a local VC firm — to grow its local presence. Photo via Datagration Solutions/Facebook

An $11 million round of funding will fuel national and international growth at Houston-based Datagration Solutions Inc., whose cloud-based software aggregates data to improve workflows and analytics at upstream oil and gas operators.

Houston-based venture capital firm Quantum Energy Partners LLC and New York City-based venture capital firm Global Reserve Group LLC led the round. Datagration represents the sixth investment in energy tech involving the duo of Quantum Energy Partners and Global Reserve Group.

Braxton Huggins, chief marketing officer at Datagration, says the new capital will enable the company to build a technology team in Houston; add to its operations, sales, and marketing team in Houston; and supplement its development team in Austria. These new hires will help Datagration expand its national and international market presence, he says.

Huggins says Datagration aims to more than double in size by the end of 2021. The startup currently employs more than 30 people. Click here to continue reading.

Houston startup uses artificial intelligence to bring its clients better business forecasting calculations

Houston-based Complete Intelligence was just recognized by Capital Factory as the "Newcomer of the Year." Photo via completeintel.com

The business applications of artificial intelligence are boundless. Tony Nash realized AI's potential in an underserved niche.

His startup, Complete Intelligence, uses AI to focus on decision support, which looks at the data and behavior of costs and prices within a global ecosystem in a global environment to help top-tier companies make better business decisions.

"The problem that were solving is companies don't predict their costs and revenues very well," says Nash, the CEO and founder of Complete Intelligence. "There are really high error rates in company costs and revenue forecasts and so what we've done is built a globally integrated artificial intelligence platform that can help people predict their costs and their revenues with a very low error rate."

Founded in 2015, Complete Intelligence is an AI platform that forecasts assets and allows evaluation of currencies, commodities, equity indices and economics. The Woodlands-based company also does advanced procurement and revenue for corporate clients.

"We've spent a couple years building this," says Nash. "We have a platform that is helping clients with planning, finance, procurement and sales and a host of other things. We are forecasting equity markets; we are forecasting commodity prices, currencies, economics and trades. We built a model of the global economy and transactions across the global economy, so it's a very large, very detailed artificial intelligence platform."

That platform, CI Futures, has streamlined comprehensive price forecasting and data analysis, allowing for sound, data-based decisions.

"Our products are pretty simple," says Nash. "We have our basic off the shelf forecast which is called CI Futures, which is currencies, commodities, equities and economics and trade. Its basic raw data forecasts. We distribute that raw data on our website and other data distribution websites. We also have a product called Cost Flow, which is our procurement forecasting engine, where we build a material level forecasting for clients." Click here to continue reading.
This week's roundup of innovators includes Alfredo Arvide of MAP360, Gaurab Chakrabarti of Solugen, and Stephen Ives of YMCA of Greater Houston. Courtesy photos

3 Houston innovators to know this week

who's who

Editor's note: The three innovators being called out this week for their latest news includes three leaders looking to make a difference and disrupt the norm. From innovating diversity and inclusion to making a huge splash in the chemicals industry.

Alfredo Arvide, CEO and co-founder of MAP360

This Houston startup is increasing access to marketing for other startups and small businesses

"We're here for the founders and the little guys," Alfredo Arvide says about his new venture that's redefining marketing for small businesses and startups. Photo courtesy of MAP360

Alfredo Arvide's story isn't too unfamiliar. After getting laid off amid a recession, he turned his full focus to his startup hoping to disrupt the industry he's worked in for years. The only difference here is Arvide's story is still ongoing, and the industry he's trying to disrupt is marketing for startups.

"There is a great opportunity in Houston with the accelerating innovation ecosystem," says Arvide. "When my co-founder and I were brainstorming ideas, we saw the need for a marketing program tailored specifically for startups or small businesses."

MAP360 touts a 50 percent or fewer costs of an agency with the same agency-quality talent. The services they offer range from branding, storytelling, design, to consulting. They also offer tiers or packages aimed for startups, funded or growing businesses, and established businesses. Click here to read more.

Gaurab Chakrabarti, CEO and co-founder of Solugen

Solugen, which uses plant-centered biotechnology to produce environmentally friendly chemicals, has raised an additional $30 million and is speculated to soon reach unicorn status. Photo via solugentech.com

Is Solugen going to be the next unicorn — a startup valued at $1 billion — to come out of Houston? That's what Forbes, but that's not what Gaurab Chakrabarti is focused on right now. He's got bigger goals to disrupt the entire chemicals industry.

"Quite simply, we want to become the next DowDuPont or the next iconic chemical company, but using principles of green chemistry instead of principles from petroleum chemistry," Chakrabarti says.

And he's on the right path. Recently, Solugen raised another $30 million in a bridge round after raising $36 million last year. Click here to read more.

Stephen Ives, president and CEO of the YMCA of Greater Houston

The Equity Innovation Center Powered by Reliant will have online resources as well as an interactive learning lab at Tellepsen Family Downtown YMCA. Photo courtesy of Urban Land Institute Houston

With Houston's diversity and in light of the current civil unrest, the YMCA of Greater Houston wanted to create something to help educate Houstonians and provide a space for unity and collaboration. That's why the organization is launching The Equity Innovation Center Powered by Reliant, says Stephen Ives, president and CEO of YMCA of Greater Houston.

"The YMCA of Greater Houston vows to stand with our brothers and sisters who are made to feel less safe by the many recent incidents – fighting for health equity in the face of the inequities being laid bare by the COVID-19 pandemic and unjust killings," says Ives. "The Y will continue expanding and strengthening its commitment to combat racism, bias, prejudice and inequalities while fighting for justice."

The center is coming out of a $100,000 donation from Reliant, which will be distributed in $50,000 commitments over two years. The sum is a part of Reliant and NRG's "Powering Change" initiative. Click here to read more.
Solugen, which uses plant-centered biotechnology to produce environmentally friendly chemicals, has raised an additional $30 million and is speculated to soon reach unicorn status. Photo via solugentech.com

Houston startup raises $30M, plans to be 'next iconic chemical company' with plant-based alternatives

climate tech

While Forbes recently anointed Houston-based Solugen Inc. as one of the next billion-dollar "unicorns" in the startup world, Dr. Gaurab Chakrabarti shrugs off the unicorn buzz.

Chakrabarti, a physician and scientist who's co-founder and CEO of the startup, concedes he doesn't know whether Solugen will be worth $1 billion or not. But he does know that the startup aspires to be a key competitor in the emerging "climate tech" sector, whose players strive to combat climate change. Chakrabarti estimates the climate-tech chemical space alone represents a global market opportunity valued at $1 trillion to $2 trillion per year.

Solugen's overarching goal in the climate-tech market: Replace petroleum-based chemicals with plant-based substitutes.

"I'd love it if we were the poster child that drives climate tech to be the next big, sexy trend," Chakrabarti says.

Chakrabarti acknowledges Solugen's investors, executives, and employees hope the startup succeeds financially. But success, he believes, goes beyond making money and plotting an exit strategy. Instead, Chakrabarti emphasizes "a shift in thinking" on climate tech that he says promises to transform the fledgling sector into a "true niche" that'll be "good for everyone."

"Who cares if people are all hyped up for the wrong reasons?" says Chakrabarti, referring to the unicorn speculation.

Solugen sits at the crossroads of biology and chemistry. In short, the startup taps into plant-centered biotechnology to produce environmentally friendly chemicals and "decarbonize" the chemical industry.

"Quite simply, we want to become the next DowDuPont or the next iconic chemical company, but using principles of green chemistry instead of principles from petroleum chemistry," Chakrabarti says.

If Solugen does reach the icon stratosphere, Chakrabarti envisions it doing so on a speedy schedule. In the traditional petrochemical market, it can take 10 to 20 years to put a new product on the market, he says. "I don't have that kind of time. I'm a very impatient person," Chakrabarti says.

Gaurab Chakrabarti Gaurab Chakrabarti, CEO and co-founder of Solugen, isn't paying any mind to his company's predicted unicorn status — rather he's focusing on the difference he can make on reducing carbon emissions. Photo via solugentech.com

Spurred by that restlessness, Chakrabarti seeks to propel Solugen's products from concept to commercialization in the span of two years. He says the startup already has proven the ability to do that with its sugar-derived hydrogen peroxide product.

"We're going to continue to do that, and it would be great if we can continue demonstrating new [products] coming to market once a year," says Chakrabarti, who grew up in Sugar Land.

Solugen seems to have plenty of financial fuel to make that happen. In April, Solugen raised $30 million in venture capital as an add-on to its Series B funding, which initially closed May 2019. That brings its total VC haul to $68 million since it was founded in 2016, according to Forbes. The recent funding lifted the company's valuation to $250 million, putting it $750 million away from unicorn territory.

Chakrabarti doesn't dismiss the notion of an eventual IPO for Solugen but says being acquired isn't "terribly interesting to me."

"If you want to make money, you can always go be a banker," he notes.

Chakrabarti estimates Solugen will generate $30 million to $40 million in revenue this year, up from $12 million in 2019. Profit remains elusive, though, as the company pours its gains into R&D. The company graduated in 2017 from the Y Combinator startup accelerator. Aside from Y Combinator and Unicorn Venture Partners, investors include Founders Fund, Refactor Capital, Fifty Years, and KdT Ventures.

Solugen's current lineup features fewer than a half-dozen products, which are sold to industrial and government customers. Hundreds more products are in the pipeline for use in sectors like agriculture and energy, Chakrabarti says.

"It's one of the blessings and curses of this company — there's always something to work on, always something big to scale up," says Chakrabarti, who earned his M.D. and Ph.D. from the University of Texas Southwestern Medical Center in Dallas.

Working on selling Solugen's current products and developing its new products are 70 employees, located at its headquarters in Houston and its new production facility in Lubbock. By the end of this year, the startup should employ close to 100 people, Chakrabarti says.

Chakrabarti hesitates to identify Solugen's competitors, as he believes a perceived rival very well could end up becoming a partner.

"I think everyone eventually should be a partner of Solugen, not competition," he says. "It's an ideology that's actually the competition, an ideology like, 'We've always used petrochemistry. This is just how it's been done.'"
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Houston Zoo delays new, immersive island exhibit due to supply chain issues

journey delayed

Houstonians eager to meet sea lions, giant tortoises, sharks, and Humboldt penguins at the Houston Zoo will have to wait a bit longer, the zoo announced.

Galápagos Islands, the highly immersive Houston Zoo experience showcasing one of the most pristine, ecologically rich areas in the world, will not open until early 2023.

The Galápagos exhibit is part of the zoo’s 100th anniversary celebration and was slated to open fall of this year. Zoo officials cite supply chain issues for key construction materials — such as acrylic viewing panels for the state-of-the-art sea lion habitat — as the reason for the delay.

This planned exhibit is the first of its kind to showcase the wildlife of the legendary island chain that Charles Darwin studied and made famous.Guests can dive into an environment evoking the archipelago’s unique landscapes and oceanic habitats — all meant to inspire intrigue and preservation.

One major draw should be the Galápagos penguins, which are threatened by overfishing, ocean pollution, and climate change and are highly protected by the Ecuadorian government. It is the most threatened penguin species in the world, the zoo notes, with an estimated population of less than 2,000 individuals.

The Galápagos is often heralded as the planet’s ultimate area spotlighting unique species, the delicate balance of ecosystems, and the pressing need for conservation action, the zoo notes.

“We’re disappointed that the project has been delayed, but we know we’re not alone in experiencing supply chain problems,” said Houston Zoo president and CEO Lee Ehmke in a statement. “Our commitment to conservation in the Galápagos Islands, our animal residents, and our guests here in Houston remain unwavering. A short delay in our exhibit opening will not deter us from our mission of connecting communities to animals, inspiring action to save wildlife.”

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This article originally ran on CultureMap.

3 Houston innovators to know this week

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Editor's note: In this week's roundup of Houston innovators to know — the first of this new year — I'm introducing you to three local innovators across industries — from health care innovation to energy — recently making headlines in Houston innovation.


Thomas Vassiliades, CEO of BiVACOR

BiVACOR named Thomas Vassiliades as CEO effective immediately. Photo courtesy of BiVACOR

Thomas Vassiliades has been named CEO of BiVACOR, and he replaces the company's founder, Daniel Timms, in the position. BiVACOR is on track to head toward human clinical trials and commercialization, and Vassiliades is tasked with leading the way.

Vassiliades has over 30 years of experience within the medical device industry as well as cardiothoracic surgery. He was most recently the general manager of the surgery and heart failure business at Abiomed and held several leadership roles at Medtronic. Dr. Vassiliades received his MD from the University of North Carolina, and his MBA was achieved with distinction at Emory University.

“I am excited and honored to join the BiVACOR team, working closely with Daniel and the entire team as we look forward to bringing this life-changing technology to the market,” says Dr. Vassiliades in the release. “Throughout my career, I’ve been guided by the goal of bringing innovative cardiovascular therapies to the market to improve patient care and outcomes – providing solutions for those that don’t have one. BiVACOR is uniquely well-positioned to provide long-term therapy for patients with severe biventricular heart failure.” Click here to read more.

Katie Mehnert, CEO and founder of ALLY Energy

Katie Mehnert joins the Houston Innovators Podcast to discuss the future of energy amid a pandemic, climate change, the Great Resignation, and more. Photo via Katie Mehnert

Katie Mehnert started ALLY Energy — originally founded as Pink Petro — to move forward DEI initiatives, and she says she started with building an audience first and foremost, but now the technology part of the platform has fallen into place too. Last summer, ALLY Energy acquired Clean Energy Social, which meant doubling its community while also onboarding new technology. On the episode, Mehnert reveals that this new website and platform is now up and running.

"We launched the integrated product a few weeks back," Mehnert says. "The whole goal was to move away from technology that wasn't serving us."

Now, moving into the new year, Mehnert is building the team the company needs. She says she hopes to grow ALLY from two employees to 10 by the end of the year and is looking for personnel within customer support, product developers, and sales and service. While ALLY is revenue generating, she also hopes to fundraise to further support scaling. Click here to read more.

Don Whaley, president at OhmConnect Texas

Texas is about a month away from the anniversary of Winter Storm Uri — would the state fair better if it saw a repeat in 2022? Photo courtesy

The state of Texas is about a month away from the one year anniversary of Winter Storm Uri — but is the state better prepared this winter season? Don Whaley, president at OhmConnect Texas, looked at where the state is now versus then in a guest column for InnovationMap.

"Governor Abbott has gone on record guaranteeing that the lights will stay on this winter, and I am inclined to agree. With the reinforcement of our fuel systems being mandated by the Railroad Commission, 2023 to 2025 should receive the same guarantee," he writes. "Beyond that, as the demand for electricity in Texas continues to grow, we will need to rely on the initiatives under consideration by the PUCT to attract investment and innovation in new, dispatchable generation and flexible demand solutions to ensure long-term stability in the ERCOT market.

Whaley has worked for over 40 years in the natural gas, electricity, and renewables industries, with specific experience in deregulated markets across the U.S. and Canada. He founded Direct Energy Texas and served as its president during the early years of deregulation. Click here to read more.

Texas named No. 2 state for women-led startups thanks to increased VC investment

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A more than 120 percent surge in female-focused venture capital investments helped push up Texas’ ranking in an annual study of the best states for women-led startups.

In Merchant Maverick’s 2021 report on the best states for women-led startups, Texas lands at No. 2, up from No. 6 the previous year. Colorado retains its No. 1 ranking from last year. Merchant Maverick judged each state based on several gender-specific metrics, such as VC funding.

Contributing to Texas’ better showing this year is the increase in female-focused VC investments. Merchant Maverick says the state’s five-year total for female-focused VC investments grew from the $365 million reflected in the 2020 report to $814 million in this year’s report. That’s a jump of 123 percent.

The $814 million total puts Texas in fourth place among the states in terms of female-focused VC investments over a five-year span. California leads this category ($6.7 billion), followed by New York ($4.7 billion), and Massachusetts ($1 billion).

The Lone Star State “has cultivated a business-friendly reputation that appears to be attracting a high volume of women-led organizations and startups,” says Merchant Maverick, a product comparison website for small businesses.

The state doesn’t do as well when it comes to average income, according to Merchant Maverick, but with no state income tax, women business owners can expect an average $62,945 yearly income to go further in Texas than it would in most other states.

Across the country, Merchant Maverick says that thanks to rising startup hubs like Houston, Miami, Phoenix, and Boulder, Colorado, “more funding opportunities are available to female entrepreneurs than ever before.”

Here are some of the Texas statistics cited in this year’s report:

  • 27 percent of businesses with employees are led by women, putting Texas at No. 13 among the states.
  • At 1.55 percent, Texas sits at No. 22 for the share of women business owners.
  • Texas ranks 19th for the average yearly income of women business owners ($62,945).
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