From exit to corporate growth — Houston founder talks scaling his sustainable tech

Houston innovators podcast episode 93

Robert Kester joins the Houston Innovators Podcast to discuss his entrepreneurial journey. Photo courtesy of Honeywell

There are several ways for a Houston startup to make an exit — it could IPO, receive massive private equity funding, or even get acquired. It wasn't always in the plan for Robert Kester to have his startup take the acquisition route, but he saw a huge opportunity to get the technology he had worked on for a decade into the field — and he took it.

Kester co-founded Rebellion Photonics in 2010. A doctoral candidate at Rice University at the time, Kester had an idea for scaling a sensor technology that can detect chemicals. The developed device could be used to automate the process and improve safety on oil and gas sites.

"When we first got going, it was an idea on a napkin. We had no idea if it could work or not," Kester says on this week's episode of the Houston Innovators Podcast. "So getting those first pilots from companies like BP — some of these major companies believing in us and deploying the technology. We grew it to a point where we'd shown value, and we were scaling the solution."

Kester says he initially saw this application benefitting onsite safety, but it quickly evolved into being a key took to promoting sustainability in a world where climate change is increasingly on everyone's mind. The company started considering a way to get its technology to scale — and fast. In 2019, Rebellion exited in an acquisition by Honeywell.

"For us it just made sense that we could team up with Honeywell and figure out how we could scale this thing globally and quickly, so that we could help be a solution for climate change," Kester continues.

Now, as president and general manager at Honeywell Rebellion, Kester still oversees his technology and, with the support of Honeywell, is able to see it be deployed at a quick pace.

Amid the pandemic, he was even able to make a pivot with his technology. Recognizing the importance of temperature reading as an early indicator of COVID-19, Kester and his team worked to develop ThermoRebellion, a temperature scanning technology that was implemented in airports — like JFK and Boston's Logan Airport — to screen travelers.

"I think the latest statistic I heard is that we've scanned over a million passengers coming in and out of the country," Kester says. "For me, I get a lot of satisfaction out of the fact that we're working on important issues in trying to keep the country safe."

Kester shares more about what he's focused on at Honeywell Rebellion on the episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

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A temperature checking technology originally created for oil and gas industry has pivoted amid the pandemic. Photo courtesy of Honeywell

Tech giant warms up to temperature monitoring system created by Houston startup

temp tech

A Houston startup's temperature monitoring system originally developed for oil and gas facilities is being used to help companies safely get their employees back into work.

The ThermoRebellion temperature software uses technology from Houston-based Rebellion Photonics, which Honeywell acquired in December of last year. The technology uses infrared imaging technology and artificial intelligence to quickly conduct non-invasive screenings of people before they enter offices, banks, airports, as businesses begin to reopen.

Robert Kester, Rebellion Photonics founder and Honeywell president and general manager, says the ongoing health crisis called for a reimagining of the AI-driven oil and gas technology, which is used to quickly detect leaks by using a real-time monitoring platform that provides automated notifications.

"The key component is our software powered by artificial intelligence," Kester tells InnovationMap. "Our imaging systems leverage a decade of experience in the most advanced imaging technologies for gas leak detection, fire detection, and intrusion monitoring applications. The system features uncooled high-resolution FPA infrared sensors allowing for each pixel to be assessed for temperature."

As states begin to lift stay-at-home orders, a return to a new normal is expected, as people begin to go back to the workplace and have to spend time in commercial buildings surrounded by others. In Houston's Memorial Hermann Hospital, temperature scanners by Austin-based Athena Security have already been installed, minimizing contact and reducing foot traffic congestion in entrances.

"Experts believe temperature checks can become more common in public spaces," says Kester. "Our system works allows for social distancing as people don't have to queue closely. Imagine an airport, for example, it wouldn't be feasible to have passengers wait in additional long lines for temperature screening."

The ThermoRebellion system can scan individuals in groups for effective screening at a wide range of sites and venues, instantly providing temperature results in an non-invasive manner, to keep employees and customers safe from introducing and spreading coronavirus.

"It's important for people to get back to work safely, whether that's an office building or a factory, or taking a flight to meet a customer," says Kester.

Honeywell is moving the technology to its piloting phase, racing against the clock to meet the demand as businesses open for business. The system, according to Kester, is intuitive and easy to use, implementing audible and visual alarms to alert if a person has elevated body temperature. Plus, it can also be easily deployed to different access points.

The fast-tracked product couldn't have been done without the team of designers and engineers who quickly pivoted from gas imaging to body temperature solutions. The team is already recruiting potential users who are interested in implementing the system in their facilities.

By Kester's and his team's estimates, the ThermoRebllion system will be ready to deploy as early as June.

"It's going to be difficult for people to go back to busy locations without knowing that companies are taking proactive steps to protect its patrons or employees," says Kester. "We're excited to be part of the set of solutions that can help improve safety."

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Houston ranks among world’s top 30 emerging startup ecosystems

Startup Status

Long known as the Energy Capital of the World, Houston also ranks among the world’s top 30 emerging startup ecosystems, according to a new report.

The report from Startup Genome, a research and advisory organization, doesn’t assign a specific numeric ranking to Houston’s startup ecosystem. Rather, it puts Houston in the ranking range of 21 to 30 for emerging ecosystems. Startup Genome weighed factors such as early-stage funding, performance and talent to identify the top emerging ecosystems.

Houston also gained notice for being one of the world’s 20 emerging ecosystems with at least four unicorn startups in the past 10 years. Houston and nine other ecosystems each had four unicorns.

According to StartupBlink, a startup research platform, Houston’s startup ecosystem grew 24 percent in 2025, with over 1,300 startups and total startup funding exceeding $808 million. StartupBlink places Houston at No. 46 among the world’s top 100 startup ecosystems.

In a recent post on LinkedIn, David Horsup, executive in residence at the Rice Alliance Clean Energy Accelerator, wrote that Houston “has all the ingredients to be wildly successful if it stays true to its differentiated pillars that drive the economy — energy, medical, and aerospace.”

Mumbai topped Startup Genome’s list of emerging ecosystems, followed by Istanbul, Madrid, Salt Lake City-Provo and Barcelona. After Salt Lake City-Provo, the top U.S. ecosystems were Phoenix, Detroit, Minneapolis and Las Vegas.

Silicon Valley led Startup Genome’s ranking of the world’s top established ecosystems, followed by New York City, London, Tel Aviv and Boston. Austin landed at No. 18 in this category and Dallas at No. 27.

“For much of the past decade, this report has chronicled the welcome dispersion of opportunity beyond the traditional hubs,” Startup Genome writes. “That trend has not died — but it has been complicated. Capital and scale are consolidating once more, particularly in the United States, and the gap between leading and emerging ecosystems is widening.”

KBR names C-suite duo to lead $5.3B government services spinoff

new leaders

In advance of the spinoff of its Mission Technology Solutions unit, Houston-based KBR has made two C-suite hires for the new business.

Michael LaRouche is coming aboard as president and CEO of the spinoff, currently called SpinCo, on Sept. 26. Nicholas Veasey is joining as executive vice president and chief financial officer on July 1.

“Michael and Nick bring a highly complementary combination of operational leadership, financial expertise, and mission-driven experience, and together they will accelerate our impact for stakeholders,” Stuart Bradie, chairman, president and CEO of publicly traded KBR, said in a news release.

LaRouche currently is CEO of Serco North America, a Herndon, Virginia-based government services contractor. Veasey most recently was CFO of MAG Aerospace, a Fairfax, Virginia-based defense contractor.

SpinCo, a government services contractor, will launch with more than $5.3 billion in annual revenue and 20,000 employees. KBR’s total headcount is around 36,000. Branding for SpinCo, including a formal name, will be revealed in July.

“SpinCo is positioned as a top-tier provider of differentiated technology solutions, anchored by deep mission expertise, global scale, and a relentless commitment to delivering for our customers,” LaRouche says.

After the spinoff, the slimmed-down KBR will focus on its Sustainable Technology Solutions business, a provider of energy and industrial technology that generated $2.5 billion in revenue in 2025. Bradie will remain chairman, president and CEO of the business.

Both SpinCo and the new KBR will be public companies. The spinoff is scheduled to be completed in January.

Experts: Houston's VC ecosystem has set the foundation — now we need scale

guest column

Fervo Energy went public earlier this summer. The Houston geothermal company priced its IPO at $27 per share, raised $1.89 billion, and opened the next morning at a market capitalization north of $10 billion. By most measures, it is the largest venture-backed cleantech IPO in history and an unambiguous win for Houston. It’s also a useful moment to look at where Houston's venture ecosystem stands and where it can go. The highlight: Houston's venture ecosystem has real foundations and, with increased company formation activity, can grow into the scale our city's ambitions deserve.

A Houston energy story in the national recovery

The recent uptick in Houston venture activity follows national trends. U.S. venture deal count contracted roughly 22 percent from its 2021 peak through 2024 before rebounding to about 16,700 rounds in 2025. Houston's 23 percent increase in VC funding from 2023 to 2024 is part of a national recovery of comparable magnitude over the same time window.

The energy sector is where Houston exhibits unique trends—and where the story turns clearly positive. (Houston's strong health and space sectors deserve their own separate consideration.) By deal count, energy-related rounds have accounted for 15 to 20 percent of Houston activity, roughly consistent over the past few years.

By capital, energy's share surged from about 14 percent in 2023 to over 60 percent in 2025, driven by a small number of large Houston-headquartered rounds, primarily in geothermal and related technologies. Fervo is the obvious anchor, but Sage Geosystems, Quaise Energy, Zeta Energy, Vaulted Deep, Applied Carbon and Mariana Minerals have all closed meaningful rounds. Houston is concentrated and accelerating as an energy capital market, an invaluable position to build upon.

From foundation to scale

The institutional pieces are in place. Greentown Labs, Activate, the Ion and others have built sector-specialized infrastructure most cities would struggle to assemble. Fervo itself is an alum of both Activate and Greentown Labs. Mercury Fund closed its $160 million Fund V, its largest ever. Houston Angel Network, GOOSE Capital, Fathom Fund, and broader pre-seed and seed capital coverage are here. The Houston $10 million-plus Series A list now includes 40 rounds since 2021, which break roughly into two eras. While 2021 to 2022 was biotech-heavy, with companies like Sporos Bioventures, RadioMedix, Cellenkos and Coya Therapeutics, 2024 to 2025 has tilted clearly toward energy, climate, and critical minerals, with Vaulted Deep, Applied Carbon, Mariana Minerals, Sage Geosystems and Ignis H2 Energy among them.

What’s less developed is the volume of seed-stage companies flowing into that capital. Imagine a dozen more Fervos coming out of that infrastructure over the next decade, each generating jobs, recycled founder capital, and the next wave of operators and angel investors. That is the kind of opportunity Houston has within reach if we build the company-formation pipeline to feed it. To be relevant on the national stage as a venture market, and to drive an economy the size of Houston's into the 2030s, the city needs to be doing closer to 20 Series A rounds per month rather than per year. That throughput implies roughly 1,000 seed rounds per year, feeding the funnel at a 20 percent to 30 percent graduation rate. Reaching such throughput depends on how many new founders Houston produces and how quickly our innovation ecosystem can help them achieve lift-off.

Houston in context

The comparative picture brings the scaling challenge into focus. Between 2021 and 2024, Houston-area startups closed between 126 and 153 disclosed venture rounds per year, against a national count between 9,854 and 14,125. That places Houston at a little over 1 percent of the U.S. deal count. For comparison, Austin ran about three times Houston's deal count each year.

At the Series A level, Houston closed between 12 and 24 rounds in any given year. The median Houston Series A across the period was about $10.7 million, compared with $15.4 million in San Francisco. Houston founders are raising fewer and smaller Series A rounds than founders in peer metros, which points directly to where Houston has the most room to grow.

The unicorn picture tells the same story. From 2021 through 2025, the U.S. produced 590 venture-backed unicorns. Four were Houston-based: Solugen and Axiom Space in 2021, Cart.com in 2023, and Fervo Energy in 2024. Adding HighRadius from 2020 brings Houston's all-time total to five. Austin added 19 over the same five-year window. The path from here is to make Houston's entries on lists like these less the exception and more the rule.

Where this leads

Houston has a real opportunity to become the deepest, most credible energy and climate capital market in the country, with the company formation, talent and operator density to support it. The data shows the foundation is already in place. Fervo, Solugen and the growing roster of energy-adjacent Series A graduates are proof. Fervo's IPO is the first of what should be many. Houston has not had a venture-backed cleantech liquidity event of this scale before, and the city now has one to reference, recruit against and build on. With increased company formation at the seed and pre-seed stages, a Fervo-scale outcome need not be a generational event in Houston, but instead, it can become part of a chain reaction powering the city's economy.

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Stephanie T. Schmidt, PhD, is the founder of a stealth startup, a Venture Fellow at Energy Transition Ventures, and an Executive MBA candidate at Rice University's Jones Graduate School of Business. Lawson Gow is the Chief Operating Officer of Greentown Labs. The full Houston VC landscape report is available at Energy Transition Ventures and CleanTech.Org.

Sources: Crunchbase, PitchBook-NVCA, Carta
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