Overheard: Here's what experts say on the future of startup investment in Houston

eavesdropping in houston

Venture Houston brought together key innovators and investors focused on Houston — here's what they said. Photo via Getty Images

Last week, over 2,500 people registered to Venture Houston to talk about startups and venture capital in Houston for two full days.

The two-day conference, which was put on by HXVF, the Houston Angel Network, the Rice Alliance, and Houston Exponential, took place February 4th and 5th and brought together startups, investors, corporations, and anyone who cares to advance the Houston tech ecosystem.

Click here to see what companies won big in the event's startup pitch competition.

Throughout the various panels and keynote addresses, Houston innovation leaders sounded off on what the future of Houston looks like in terms of venture activity. Missed the discussion or just want a refresher on on the highlights? Here are some significant overheard moments from the virtual conference.

“The way I look at it, Houston has an opportunity to really emerge as one of the leading startup cities in the country.”

— Steve Case, chairman and CEO of Revolution Ventures and co-founder of AOL.

He makes a reference to the iconic line "Houston, we have a problem" — which now is defined by a time of opportunity. Case adds that his VC fund, Revolution, which has invested in Houston-based GoodFair, is looking for new investments in Houston.

“We were behind. We were slow to start, but in typical Houston fashion, now we are escalating with real momentum."

— Amy Chronis, Houston managing partner of Deloitte and 2021 Greater Houston Partnership board chair.

Chronis notes on the fact that VC activity in Houston is up 250 percent since 2016, and in that time the city has focused on diversifying its business. Now, the city touts its active corporate community, global diversity, and more.

"In Houston, companies and talent are looking at ways to change the world," she adds.

“I see there being a significant amount of seed capital taking off.”

— Stephanie Campbell, managing director of the Houston Angel Network and The Artemis Fund.

Campbell calls out new funds to Houston, like Golden Section Ventures and her own fund, Artemis. She adds that with over $700 million invested in Houston deals last year, the city is in a good place, and she is anticipating more angel activity.

"While this is really exciting progress, there's still a lot of work to be done in terms of seed and early-stage funding," she continues.

“I see there being billion-dollar venture funds here in Houston on the life science front over the next decade.”

— John "JR" Reale, managing director of Integr8d Capital.

Reale, who's also the executive in residence at TMC Innovation, says he's seen the growth and potential of the life science industry in Houston.

"You can see the intentionality of the infrastructure that's being built that's going to attract diverse founders and all talent," he says.

“What I really see is the trajectory for Houston has been changing over the last couple years.”

— Brad Burke, managing director for the Rice Alliance for Technology and Entrepreneurship.

Burke points to three things that have really moved the needle on Houston's progress as an innovative city. The first was the Texas Medical Center establishing its Innovation Institute a few years back, and the next is how Houston's top energy companies are making big moves to support the energy transition. Finally, he says, The Ion, which is set to open this year, is the third reflection point for progress.

“The Houston startup scene is a very special place. It’s a community I actively choose to be a part of, and it activates me every day.”

— Rakesh Agrawal, CEO and founder of SnapStream.

“We’ve got a really incredible story to tell.”

— Susan Davenport, senior vice president of economic development for the GHP.

Davenport adds that this is exactly what the GHP is doing — making Houston's story known. And she says they have talked to global business leaders and they describe the city as a modern, cosmopolitan, truly global city.

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Texas still ranks as No. 1 in U.S. for inbound moves, but growth dips

by the numbers

Texas continues to be the country’s No. 1 magnet for newcomers from other states, giving a boost to the state’s economy. However, Texas’ appeal weakened in 2024 compared with the previous year, due in large part to spiking home prices.

An analysis of U.S. Census Bureau data by self-storage platform StorageCafe shows Texas saw net interstate migration of 76,000 people in 2024. Texas’ net interstate migration dropped nearly 50 percent from 2023, according to the analysis. Net migration refers to the number of incoming residents minus the number of outgoing residents.

California remained the top source of newcomers for Texas, sending nearly 77,000 residents to the Lone Star State in 2024, the analysis says. Florida ranked second, followed by New York, Colorado and Illinois.

“These trends reveal Texas’ continued pull from both high-cost coastal markets and other large Sun Belt states, resulting in a mix of affordability-driven and job-driven relocation,” StorageCafe says.

Putting a damper on the influx of new residents: a roughly 124 percent surge in Texas home prices over the past decade, according to StorageCafe.

“While the state remains significantly more affordable than California, its top feeder state, the once-wide pricing gap has narrowed,” says StorageCafe. “For many movers, Texas is still a relative bargain, but no longer an undisputed one.”

Nonetheless, Texas keeps attracting young, highly educated people, which bodes well for the state’s long-term economic outlook, StorageCafe says. More than half of new arrivals to Texas in 2024 held at least a bachelor’s degree, and the age of newcomers averaged 32.

Where are most of these young, highly educated newcomers settling?

Lloyd Potter, former Texas state demographer, tells StorageCafe that population growth in Texas is happening most rapidly in suburban “ring counties” at the expense of slowing growth in urban cores. Ring counties are on the outskirts of major metro areas.

“Many people are moving from urban cores to suburban rings seeking lower costs, newer housing, better schools, and more space,” Potter says. “Typically, a move to a suburban county will be within commuting or hybrid‑commuting distance of major metro economies.”

Artemis II makes historic call to space station with help from Houston Mission Control

History in the making

Still aglow from their triumphant lunar flyby, the Artemis II astronauts made more history Tuesday, April 7: calling their friends aboard the International Space Station hundreds of thousands of miles away as they headed home from the moon.

It was the first moonship-to-spaceship radio linkup ever. NASA's Apollo crews had no off-the-planet company back in the 1960s and 1970s, the last time humanity set sail for deep space.

"We have been waiting for this like you can’t imagine,” Artemis II commander Reid Wiseman called out.

For Christina Koch on Artemis II and Jessica Meir aboard the space station, it marked a joyous space reunion despite being 230,000 miles (370,000 kilometers) apart. The two teamed up for the world's first all-female spacewalk in 2019 outside the orbiting lab.

Koch told her “astro-sister” that she'd hoped to meet up with her again in space “but I never thought it would be like this — it's amazing.”

“I'm so happy that we are back in space together,” Meir replied, “even if we are a few miles apart.”

Houston's Mission Control arranged the cosmic chitchat between the four lunar travelers and the space station's three NASA and one French residents.

Koch described being awe-struck by not just the beauty of Earth, “but how much blackness there was around it.”

“It just made it even more special. It truly emphasized how alike we are, how the same thing keeps every single person on planet Earth alive,” she told the space station crew. “The specialness and preciousness of that really is emphasized” when viewing the home planet from the moon.

By late Tuesday afternoon, the Artemis II astronauts had beamed back more than 50 gigabytes' worth of pictures and other data from the previous day's lunar rendezvous, which set a new distance record for humanity. The highlight: an Earthset photo reminiscent of Apollo 8's Earthrise shot from 1968.

"While they are inspirational and, I think, allow all of us to really feel a little bit of what they were feeling, there's also a lot of science hidden inside of those images," said Mission Control's lead lunar scientist Kelsey Young. “The conversations and the science lessons learned are just beginning."

During a debriefing with Young, the astronauts recounted how they spotted a cascade of pinpricks of light on the lunar surface from impacting cosmic debris. The flashes lasted mere milliseconds and coincided by chance with Monday evening's total solar eclipse.

Young said it was too soon to know whether the crew witnessed an actual meteor shower or more random, run-of-the-mill micrometeoroid hits. Either way, there were “audible screams of delight” in the science operations center, she said.

Koch described being awe-struck by not just the beauty of Earth, “but how much blackness there was around it.”

“It just made it even more special. It truly emphasized how alike we are, how the same thing keeps every single person on planet Earth alive,” she told the space station crew. “The specialness and preciousness of that really is emphasized” when viewing the home planet from the moon.

The first lunar explorers since Apollo 17 in 1972, Wiseman and his crew are aiming for a splashdown off the San Diego coast on Friday to wrap up the nearly 10-day test flight. The recovery ship USS John P. Murtha left port Tuesday for the target zone.

It sets the stage for next year's Artemis III, a lunar lander docking demo in orbit around Earth. Artemis IV will follow in 2028 with two astronauts attempting to land near the lunar south pole.

As for the Orion capsule’s pesky potty, Mission Control assured the astronauts that no maintenance was required Tuesday. The toilet has been on-and-off limits to the crew ever since last week’s launch, prompting them to rely on a backup bag-and-funnel system for urinating.

NASA Administrator Jared Isaacman told the crew following the lunar flyby Monday night: “We definitely have to fix some of the plumbing” ahead of the next Artemis mission. Engineers suspect a clogged filter in the overboard flushing system.

Aside from the toilet and other relatively minor matters, the mission has gone well, Isaacman noted at a news conference Tuesday, “but I'll breathe easier when we get through reentry and everybody's under chutes and in the water.”

AI-powered Houston startup helps restaurants boost customer loyalty

order up

It’s no secret that restaurant trends move fast and margins run thin. And with the proliferation of platforms like Uber Eats, DoorDash and Easy Cater, customer loyalty is fleeting.

The solution?

How about an AI-powered restaurant technology platform that helps restaurant brands cut back on third-party platforms in favor of driving direct discovery, conversion and loyalty?

Enter Saivory. Founded in 2025 by Stephen Klein, a software investor, and Fajita Pete’s restaurateur Hugh Guill, the Houston-based startup aims to help eateries better understand and activate guest behavior across digital channels as AI increasingly reshapes how consumers discover and engage with brands.

In less than a year, Saivory has partnered with Shipley Do-Nuts and Fajita Pete’s to bring AI-powered ordering to life.

“With Saivory, we were able to answer the question of, ‘what if the ordering process could be reduced to a single step, where customers simply tell us what they want and AI takes care of the rest?’” Klein tells InnovationMap.

The Houston-based startup made such an immediate impact that it was selected as a semi-finalist during Start-Up Alley at MURTEC, the restaurant industry’s leading technology conference, which took place last month in Las Vegas.

“Houston is a great hub for technology innovation, and we were proud to represent the city at MURTEC this year,” says Klein. “We didn’t win, but we were able to talk about some of the work that we have existing in the market for clients right now and a little bit about what we’re working on in the future.”

In the current restaurant technology ecosystem, the third-party aggregators own the customer attention that brings volume to restaurants, while also taking big commissions and having control over the end relationships with the customer.

That can often make it difficult for restaurants to grow loyalty and repeat business from customers. Saivory aims to level the playing field for restaurants, helping them stay more connected to their customers.

Take Saivory’s recent application with Shipley’s Do-Nuts, for example.

Saivory powered the donut giant’s AI-ordering and launched Shipley's website and mobile app to support its over 300 locations in Texas alone.

Shipley’s new AI-powered assistant helps users create personalized order recommendations based on individual or group preferences. And unlike standard chatbox features, the new assistant makes custom recommendations based on multiple customer factors, including budgetary habits, individual flavor preferences and order size. It can also be used for large catering orders.

“They're seeing more traffic to the site and they're seeing when customers use our AI-enabled flows,” Klein says. “And they're seeing higher basket sizes, bigger tickets, by about 25 percent.”

Klein says Saivory’s technology helps strengthen first-party digital relationships, reduce friction and cart abandonment, improve average order value, and delivers personalized, efficient experiences.

“It’s a win-win: the customer gets the right order quickly, while the restaurant gets a bigger margin,” he adds.

Additionally, the technology makes it easier for restaurants to share rewards, loyalty and discounts, ultimately growing more direct traffic and making restaurants less reliant on third-party delivery apps.

Next up for Saivory is adding new components to its platform to enhance the relationship between restaurant and customer, as well as technology around making it easier for restaurants to get found on Google.

“A lot of people are still searching for the best donuts near me,” Klein says. “Or what’s the best Mexican food near me? Customers will increasingly move to AI, where they’re going to ask where they should eat dinner and expect it to just order them dinner. They will eventually expect the technology to know how to do that. So that’s what we’re driving at.”

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