Here's what Houston startups snagged fresh funding last quarter

Q3 in review

Here's what Houston startups scored investment in Q3 of 2023. Photo via Getty Images

With Houston's business and innovation community firmly in its final leg of 2023, it's time to look back on funding from the previous quarter.

While last quarter revealed a decline in VC funding in line with the rest of the country, per PitchBook data, around 60 Houston-area companies secured venture funding in the third quarter. These deals spanned across angel and seed rounds all the way up to a monolith of a series C and unicorn status achievement.

According to InnovationMap reporting, 5 Houston-based companies announced VC funding between July and September. Here's a roundup of these second quarter deals — click on each story to read more.

Axiom's $350M series C round

Axiom Space CEO Michael Suffredini (right) has announced the company's series C round with support from Aljazira Capital, led by CEO Naif AlMesned. Photo courtesy of Axiom Space

Houston has another unicorn — a company valued at $1 billion or more — thanks to a recent round of funding.

Axiom Space released the news this week that it's closed its series C round of funding to the tune of $350 million. While the company didn't release its valuation, it confirmed to Bloomberg that it's over the $1 billion threshold. Axiom reports that, according to available data, it's now raised the second-most funding of any private space company in 2023 behind SpaceX.

Saudi Arabia-based Aljazira Capital and South Korea-based Boryung Co. led the round. To date, Axiom has raised over $505 million with $2.2 billion in customer contracts, according to the company.

“We are honored to team with investors like Aljazira Capital, Boryung and others, who are committed to realizing the Axiom Space vision,” Axiom Space CEO and president Michael Suffredini says in a news release. “Together, we are working to serve innovators in medicine, materials science, and on-orbit infrastructure who represent billions of dollars in demand over the coming decade. Read more.

VenoStent's $16M series A round

A Houston startup based out of the TMC Innovation Factory has announced funding and upcoming trials. Photo courtesy of TMC

Fueled by fresh funding in the bank, a medical device startup has announced upcoming trials.

VenoStent, Inc., a company developing an innovative tool to improve outcomes for hemodialysis patients, has closed $16 million in a series A round of financing. Two Charleston, South Carolina-based firms — Good Growth Capital and IAG Capital Partners — led the round.

The company also announced it received Investigational Device Exemption from the FDA for its United States clinical trial, SAVE-FistulaS.

“Our mission at VenoStent is to improve the quality and length of life of dialysis patients. On the heels of our very promising results in several preclinical studies and a 20-patient feasibility study that led to our Breakthrough Designation last year, this recent IDE approval is perhaps our biggest milestone to date," Tim Boire, CEO of VenoStent, says in a news release. "We now enter an exciting new epoch in our company’s development that we believe will ultimately result in FDA Approval and vastly improve the quality and length of life for patients." Read more.

CardioOne's $8 million seed round

CardioOne has fresh funding and new partners, resulting in a five-state expansion. Photo via Getty Images

With fresh funding, a Houston-based health tech platform that's less than a year old has grown its United States footprint.

CardioOne, which has created a cardiology care delivery enablement platform that serves independent cardiologists, has closed an $8 million seed round of funding and secured three new partnerships. Axios and Crunchbase report that the round has closed, and CardioOne confirms the funding and new partnerships in a press release.

The company has three new partnerships with independent cardiology clinics in New Jersey, Florida, and Pennsylvania, Cardiac Associates of New Jersey, Twin Hearts LLC, and Corrieius Cardiology. The trio joins existing partner practices in Texas and Maryland. Read more.

Industrial Daa Labs' $1.5M seed round

Industrial Data Labs announced the close of its $1.5 million seed round of funding. Photo via Getty Images

A Houston startup that's on a mission to transform and expedite data processing for its industrial clients has raised seed funding.

Industrial Data Labs announced this week that it's closed a $1.5 million seed round of funding. The company has created an applied artificial intelligence technology for the pipe, valve, fitting, and flange, or PVF, industry's inside sales team. The terms of the seed round were not disclosed.

"Our groundbreaking AI-Powered Inside Sales Copilot is transforming the way inside sales teams operate in the PVF industry," Marty Dytrych, co-founder and CEO of Industrial Data Labs, says in a news release. "By embedding our solution into existing BOM and MRO workflows, we empower teams to achieve unmatched efficiency, accuracy, and sales performance.” Read more.

Nanotech's oversubscribed funding round

NanoTech closed an oversubscribed round of funding, the company announced this week. Photo courtesy of NanoTech

A Houston startup that has developed an innovative coating material that can reduce energy consumption has raised fresh funding for its cross-country expansion.

NanoTech Inc. announced its latest funding news — an oversubscribed funding round that brings onboard a handful of new investors. The details of the round were not disclosed, but NanoTech did release that the round included participation from three institutional investors, two corporate-strategic investors, and seven family offices. These entities join initial investor, Austin-based Ecliptic Capital.

NanoTech's flagship product is a waterproof thermal coating, called the Nano Shield Cool Roof Coat, which began rolling out across the country this year. Not only does the product reduce energy costs for the building owner, but it reduces emissions as well. Read more.

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Here are the Houston startups that together raised over $222 million in venture capital investment last quarter. Photo via Getty Images

VC roundup: Here's what Houston startups raised funds last quarter

following the money

Houston startups are keeping pace when it comes to venture capital raised this year. In this roundup of funding closed in the second quarter, Houston businesses across sectors and industries close significant rounds from seed to series C.

Eleven startups raised over $222 million last quarter, according to InnovationMap reporting, which is more than in the first and second quarters. In chronological order, here's what companies snagged fresh funding recently.


Houston EV charging tech company raises $6M series A

Revterra Corp. closed a $6 million series A round led by Equinor Ventures. Photo courtesy of Revterra

Houston-based tech company Revterra Corp. has picked up $6 million in a series A funding round to propel development of its battery for electric vehicle charging stations.

Norway’s Equinor Ventures led the round, with participation from Houston-based SCF Ventures. Previously, Revterra raised nearly $500,000 through a combination of angel investments and a National Science Foundation grant.

Revterra says its kinetic flywheel battery enables quick, simple, cost-effective installation of high-powered DC chargers for electric vehicles. The technology eases the burden placed on electrical grids, the company says. Continue reading.

Houston-founded blockchain startup raises $15M series A to increase international impact

Topl's latest fundraising round includes participation from a Houston investor as well as international partners. Image via Getty Images

A blockchain technology company that was founded out of Rice University has closed its latest round of funding.

Founded in 2017, Topl is a blockchain-as-a-service company that's developing a purpose-built blockchain ecosystem to empower impact and sustainability within its userbase of businesses. The company's $15 million series A round was co-led by Houston-based Mercury, Republic Asia, and Malta-based Cryptology Asset Group.

“Topl’s blockchain was purpose built to power the next wave of supply chains and markets, that are more sustainable and inclusive,” says Chris Georgen, founder and managing director of Topl, in a news release. “Every decision we’ve made has been relentlessly focused on this problem and it’s exciting to see this approach yielding results with more than 30 different impact-forward use cases already live or approaching launch." Continue reading.

Houston-based gig economy startup raises $1.2M, launches beta platform

Madison Long, left, and Simone May co-founded Clutch to democratize side gig success on college campuses. Photo courtesy of Clutch

Two Houstonians on a mission to enable safe and equitable entrepreneurship on college campuses have launched a new beta platform and closed pre-seed funding.

Clutch, a digital marketplace startup founded by Simone May and Madison Long, closed its pre-seed round of funding at $1.2 million – led by Precursor Ventures and other partners such as Capital Factory and HearstLab. The investment from this round will support Clutch’s national open beta launch of its platform for brands and student creators nationwide and its continued investment in customer and product strategy.

“We are at this inflection point where marketing is changing,” May says in a press release. “We know that the next generation can clearly see that and I think a lot of marketing agencies are starting to catch on. We need to be prioritizing the next generation’s opinion because they are driving who is interested in what they buy. This upcoming generation does not want to be sold to and they don’t like inorganic, inauthentic advertisements. That’s why user generated content is so big, it feels authentic.” Continue reading.

Houston hydrogen startup closes $25M series B

This hydrogen company has fresh funding. Photo via utility.global

Utility Global, a Houston-based sustainable hydrogen company, has closed its series B round of funding to the tune of $25 million, Axios reports.

Houston-based private equity firm Ara Partners led the round. Other participating investors included: Samsung Ventures, NOVA, and Aramco.

Utility Global, founded in 2018, has developed a clean hydrogen solution. The proprietary tech — called the eXERO Technology Platform — includes a zero electricity process that converts sustainable waste streams into high-purity hydrogen. Additionally, the company developed its H2Gen Product Line that delivers customers reliable, low carbon, and high purity hydrogen, which offers unparalleled feedstock flexibility and highly competitive economics. Continue reading.

Industrial blockchain tech company headquartered in Houston closes $4M series C round

Houston-based Data Gumbo, an industrial blockchain-software-as-a-service company, announced that its latest round or funding. Photo courtesy of Data Gumbo

Data Gumbo, a Houston-based tech startup, has picked up $4 million in a series C round from the venture capital arms of foreign energy companies Saudi Aramco and Equinor.

The funding for Data Gumbo came from Saudi Aramco Energy Ventures, the VC subsidiary of government-owned oil and natural gas giant Saudi Aramco, and Equinor Technology Ventures, the VC subsidiary of Norwegian energy operator Equinor. The U.S. headquarters for both Saudi Aramco and Equinor are in Houston. Continue reading.

Houston company raises $138M for next-generation geothermal energy

The future of geothermal energy is here — and just got a big payday. Photo via Getty Images

Houston-based startup Fervo Energy has picked up $138 million in funding to propel its creation and operation of carbon-free power plants fueled by geothermal energy.

Fervos says the series C round will help it complete power plants in Nevada and Utah and evaluate new projects in California, Idaho, Oregon, Colorado, and New Mexico, as well as in other countries.

California-based investment firm DCVC led the round, with participation from six new investors. Continue reading.

Houston 'sneakerheads' raise $8.9M to further develop digital marketplace

Tradeblock's three co-founders have known each other since childhood. Photo via tradeblock.us

A Houston-based company is kicking it with some fresh funding with plans to expand development of its marketplace platform.

Unique sneaker trading platform, Tradeblock, has raised $8.9 million in funding from investment partners Courtside VC, Trinity Ventures, and Concrete Rose Capital. Per the news release, the company expects additional funding of around $4.5 million to its seed round.

Tradeblock — founded in 2020 by self-proclaimed "sneakerheads" and childhood friends Mbiyimoh Ghogomu, Tony Malveaux, and Darren Smith — will use the fresh funding to expand and improve its digital marketplace for shoes. Continue reading.

Health tech startup with Houston HQ raises $14M series A

Optellum, which has its United States operations based in the TMC Innovation Institute, has raised fresh funding. Photo via Getty Images

A Oxford-based health tech startup that has its United States headquarters in Houston has announced the close of its series A round of funding.

Optellum, which has created a breakthrough AI platform to diagnose and treat early-stage lung cancer, has raised $14 million in a series A funding round. The round was led by United Kingdom-based Mercia, with additional investors California-based Intuitive Ventures and New York-based Black Opal Ventures. Existing investors, including St John's College in the University of Oxford, IQ Capital, and the family office of Sir Martin & Lady Audrey Wood, also participated in the round, per a news release.

"Lung cancer is an urgent public health crisis and Optellum's groundbreaking approach utilizing AI to accelerate early detection and intervention may fundamentally alter the healthcare community's approach to combating this disease," says Dr. Oliver Keown, managing director of Intuitive Ventures, in the release. "Optellum is uniquely positioned to align and provide considerable value to patients, providers, and payers alike. Intuitive Ventures is thrilled to provide our full arsenal of financial and strategic support to Optellum as we work towards a world of better outcomes for cancer patients." Continue reading.

Houston-based biomaterials company raises $1.1M to grow team, build new HQ

BUCHA BIO has raised over $1 million to grow its team, build a new headquarters, and accelerate its go-to-market strategy. Image courtesy of BUCHA BIO

A Houston company that has created a plant-based material that can replace unsustainable conventional leathers and plastics has announced the close of its oversubscribed seed funding round.

BUCHA BIO announced it's raised $1.1 million in seed funding. The round included participation from existing partners New Climate Ventures, Lifely VC, and Beni VC, as well as from new partners Prithvi VC, Asymmetry VC, and investors from the Glasswall Syndicate, including Alwyn Capital, as well as Chris Zarou, CEO & Founder of Visionary Music Group and manager of multi-platinum Grammy-nominated rapper, Logic, the startup reports in a news release.

“I’m excited to back BUCHA BIO’s amazing early market traction," Zarou says in the release. "Their next-gen bio-based materials are game-changing, and their goals align with my personal vision for a more sustainable future within the entertainment industry and beyond.” Continue reading.

Houston-based Codenotary has expanded its series B fundraising round

Codenotary's software enables tools for notarization and verification of the software development life cycle. Photo via Getty Images

A Houston software startup that raised $12.5 million earlier this year has announced additional funding of $6 million. Codenotary, whose technology helps secure software supply chains, closed its series B round in January. The fresh funding brings the company's total investment raised to $24 million — thanks to investors Bluwat and Elaia.leaders and following a series A round that was announced in 2020.

Codenotary, formerly known as vChain, was founded in 2018 by CEO Moshe Bar and CTO Dennis Zimmer. The additional capital, which will go towards scaling up sales in the U.S. and Europe as well as entering the Asian market, was raised as an extension of the series B round. Continue reading.

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

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

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. Continue reading.

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10 years in: Houston entrepreneur reflects on lessons learned

guest column

Just as the job market is soaring, so is the state of entrepreneurship in America. And increasingly, people are launching their businesses in Houston.

As InnovationMap reported, our city is a top startup ecosystem, now ranked among the top 50 in the world. One of the fastest-growing sectors is climate tech. According to a recent analysis, the global climate tech market is expected to reach a massive $162 billion by 2033.

All those big numbers boil down to individual, hardworking people with high hopes, big dreams, and a willingness to take risks. Maybe that includes you.

This month, my company reached a milestone. We’ve been around for a decade, which means we’ve beaten the odds. An estimated two-thirds of businesses fail within 10 years. This has been nothing short of a chaotic, exhilarating, and sometimes unforgiving journey. I've been blessed and cursed, from hurricanes to a pandemic, losing my vision to filming documentaries, serving in the US Department of Energy during two administrations to an epic ringing of the closing bell on Wall Street. The successes have been sweet, but the lessons learned are the real treasure.

Here are my five biggest takeaways from a decade in the trenches of entrepreneurship.

Master your market

A deep understanding of the market is crucial to achieve success. By delving into the intricacies of how it operates, identifying gaps you can fill, and engaging with individuals and companies eager to see those gaps addressed, you lay the foundation for a viable and impactful venture. Building credibility and establishing a network over the long term opens doors. I experienced this firsthand in the oil and gas, where my market knowledge and 15 years of experience allowed me to create a business that champions the energy workforce of the future.

However, markets are constantly evolving, and even more so today than ever. It’s hard to bring things to market, so master the market, and listen to the voice of the customer to stay ahead.

Takeaway:

Embrace the power of market mastery and credibility to pave the path to success.

Grit is everything

When I think of resilience, one image stands out—the "man in the arena." (Or I should say the woman!). It's a metaphor often cited, and for good reason. What are you even doing if you're not stepping into the ring, getting your hands dirty, and taking the punches? Grit is what keeps you moving when the odds are against you. Change is inevitable; challenges will come. But grit? That’s what pushes you to stand back up and keep going. If you’re an entrepreneur, there’s no room for half-hearted effort. You're either in the ring or watching from the sidelines.

Takeaway:

The ability to endure setbacks and adapt separates those who thrive from those who fold.

You need more than you think

A hard truth I’ve learned the painful way. When I first started Pink Petro, a mentor of mine and now very successful entrepreneur turned investor told me to “Don’t take capital until you need it.” His advice helped me keep a large percentage of ownership in my company, however I learned that you will always need more time, money, and resources than anticipated. As a solo founder, it is easy to underestimate the financial and emotional cost of building something from scratch, alone. Whether it’s product development, marketing, an acquisition or hiring top talent, it all takes capital.

Takeaway:

Plan. Then, double that plan. Odds are, you’ll need it.

Ask without fear

Whether seeking investment, resources or support, learning to ask for what you need is a game-changer. This one didn’t come naturally to me—I had to lean in and push past the stubbornness of “never needing anyone’s help”. Here’s the truth: most people are afraid to ask. But asking is often what gets you one step closer to your goals. Whether it’s a pitch to an investor or a favor from a mentor, the worst someone can say is “no.” And in business, a "no" is just a chance to refine your pitch for the next opportunity.

Takeaway:

Advocating for your needs isn’t selfish—it’s essential.

The sharks are in the water

Building something meaningful attracts all kinds of attention. Over the years, I’ve dealt with doubters, copycats, and even former allies. At first, it stung. But then I realized something important -- sharks will always show up if you’re making waves. It’s a sign you’re on the right path. The key is to stay focused on your vision and not get distracted

by the noise.

Takeaway:

If you have skeptics and imitators, take it as validation that what you’re doing matters.

Bonus lesson: Put your mask on

This one is personal. Here’s the thing—if you’re running on empty, you’re no good to your business, team, or yourself. That’s when I learned the importance of self-care. It’s not selfish—it’s survival.

Takeaway:

Take care of yourself first. Your business depends on it.

Looking back, ten years feels like a lifetime. The truth is that entrepreneurship is hard. It requires grit, humility, persistence, and the courage to rise above challenges. But it’s also one of the most rewarding ventures you can take on.

If you’re out there building something, keep going. Step into the ring. Learn from every fall. Trust yourself, and never stop moving forward—you might surprise yourself with how far you can go.

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Katie Mehnert is founder and CEO of ALLY Energy, formerly Pink Petro and serves on the National Petroleum Council.

Here are the most-read energy tech stories of the year

year in review

Editor's note: As the year comes to a close, InnovationMap is looking back at the year's top stories in Houston innovation. As the energy capital of the world, Houston has its fair share of energy tech stories that trended among readers. Be sure to click through to read the full story.

Houston accelerator names inaugural cohort to propel digital transformation in energy

The NOV Supernova Accelerator will work to cultivate relationships between startups and NOV. Photo via Getty Images

Houston-based Venture Builder VC has kicked off its NOV Supernova Accelerator and named its inaugural cohort.

The program, originally announced earlier this year, focuses on accelerating digital transformation solutions for NOV Inc.'s operations in the upstream oil and gas industry. It will support high-potential startups in driving digital transformation within the energy sector, specifically upstream oil and gas, and last five months and culminate in a demo day where founders will present solutions to industry leaders, potential investors, NOV executives, and other stakeholders.

The NOV Supernova Accelerator will work to cultivate relationships between startups and NOV. They will offer specific companies access to NOV’s corporate R&D teams and business units to test their solutions in an effort to potentially develop long-term partnerships. Read more.

Promising Houston startup expands energy efficiency product to Middle East, Singapore

NanoTech is targeting new overseas markets for its energy efficiency products. Photo via Getty Images

NanoTech Materials has announced a big expansion for its business.

The Houston company, which created a roof coating using nanotechnology that optimizes energy efficiency, has partnered with Terminal Subsea Solutions Marine Service SP to bring its products to the Gulf Cooperation Council and Singapore. TSSM will become a partner of Houston’s NanoTech Materials products, which will include the Cool Roof Coat, Vehicular Coat, and Insulative Coat for the GCC countries and Singapore.

NanoTech Materials technology that ranges from roof coatings on mid- to low-rise buildings to shipping container insulation to coating trucks and transportation vehicles will be utilized by TSSM in the partnership. NanoTech’s efforts are focused on heat mitigation that can reduce energy costs, enhance worker safety, and minimize business risks in the process. Read more.

Rice University launches $12.5M climate tech accelerator

Rice University announced a new climate tech initiative backed by Woodside Energy. Photo by Natalie Harms/InnovationMap

Rice University has announced its latest initiative to advance clean energy technology into commercialization with a new partnership with a global energy company.

Woodside Energy, headquartered in Australia with its global operations in Houston following its 2022 acquisition of BHP Group, has committed $12.5 million over the next five years to create the Woodside Rice Decarbonization Accelerator.

"The goal of the accelerator is to fast track the commercialization of innovative decarbonization technologies created in Rice labs," Rice University President Reginald DesRoches says to a crowd at the Ion at the initiative's announcement. "These technologies have the potential to make better batteries, transitistors, and other critical materials for energy technologies. In addition, the accelerator will work on manufacturing these high-value products from captured and converted carbon dioxide and methane." Read more.

10 most-promising energy tech startups named at annual Houston event

Over 500 people attended the 21st annual Energy Tech Venture Forum hosted by the Rice Alliance. Photo courtesy of Rice

Investors from around the world again identified the most-promising energy tech startups at the Rice Alliance for Technology and Entrepreneurship's annual event.

"The recognition that Houston is the epicenter of energy transition is growing. It's something we are championing as much as possible so that the world can know exactly what we're doing," Paul Cherukuri, chief innovation officer at Rice University says at the 21st annual Energy Tech Venture Forum.

The event took place during the inaugural Houston Energy and Climate Startup Week, and nearly 100 startups from 23 states and seven countries pitched investors Wednesday, September 11, and Thursday, September 12. At the conclusion of the event, the investors decided on 10 companies deemed "most promising" from the presentations. Read more.

Port Houston lands $3M EPA grant to drive green initiatives, cleantech innovation

The grant, funded by the federal Inflation Reduction Act, will help promote cleaner air, reduced emissions, and green jobs. Photo via Getty Images

Port Houston’s PORT SHIFT program is receiving nearly $3 million from the U.S. Environmental Protection Agency’s Clean Ports Program.

The grant, funded by the federal Inflation Reduction Act, will help promote cleaner air, reduced emissions, and green jobs.

“With its ambitious PORT SHIFT program, Houston is taking a bold step toward a cleaner, more sustainable future, and I’m proud to have helped make this possible by voting for the Inflation Reduction Act,” U.S. Rep. Sylvia Garcia says in a news release. Read more.

Pop icon Beyoncé donates $100,000 to University of Houston Law School

h-town generous

Pop megastar Beyoncé Knowles-Carter has donated $100,000 to the University of Houston Law Center Criminal Justice Clinic through her BeyGOOD Foundation. The gift will allow the clinic to hire full-time faculty to head it, benefiting the students who study there.

“I am delighted that the BeyGOOD Foundation has made this very generous gift to the UH Law Center,” said Leonard Baynes, dean of the UH Law Center. “Not only will this funding help establish a full-time criminal justice clinic that provides pro bono legal services in our community, but it will also supercharge our already excellent criminal law and justice programming.”

The clinic is one of nine at UHLC. It helps students learn to navigate the criminal justice system, especially on behalf of clients that are underserved by skilled attorneys. People of color are affected disproportionately by a lack of good, ethical representation.

Beyoncé, the most decorated artist in Grammy history and easily the biggest musical star native to Houston, has a long history of advocating for criminal justice reform. She was a staunch supporter of the police reform following the deaths of Alton Sterling and Philando Castile, asking law enforcement to “stop killing us” in a web post. In 2020, she penned an open letter to the Kentucky attorney general asking for justice in the death of Breonna Taylor.

Through her BeyGOOD Foundation, established in 2013, Beyoncé has focused mostly on expanding the prospects of Black-owned business and offering education opportunities to students. Forwarding the cause of legal representation in Texas while also helping out marginalized communities compliments her other philanthropic work.

“At UH Law, we envision a legal profession where ‘everyone has the opportunity to prosper,’ as BeyGOOD envisions, and we will achieve this vision by providing access to strong and effective legal representation in criminal proceedings,” Baynes said. “And together, through this gift, the BeyGOOD Foundation and UHLC will shepherd the next generation of criminal justice attorneys in the city of Houston, the state of Texas and the nation.”

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This article originally ran on CultureMap.

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