Houston unicorn startup named North American Company of the Year

top honor

Fervo Energy has been named North American Company of the Year, and two other Houston companies made the Global Cleantech 100 list. Photo courtesy of Fervo.

Houston-based geothermal energy startup Fervo Energy has been named North American Company of the Year by research and consulting firm Cleantech Group.

Fervo appears on this year’s Global Cleantech 100, Cleantech Group’s annual list of the world’s most innovative and promising cleantech companies

Houston companies Syzygy Plasmonics and Vaulted Deep also made the Global Cleantech 100 list this year.

“These innovators give us reasons to be optimistic about the future. Their groundbreaking work demonstrates that progress toward net-zero remains possible and inspires us to double down on the challenge of addressing climate change,” says Richard Youngman, CEO of Cleantech Group.

Fervo was honored during a Jan. 27 awards dinner at Cleantech Forum North America, an event hosted by Cleantech Group. Co-founder and CEO Tim Latimer accepted the North American Company of the Year award on behalf of Fervo.

“We have always been honored to be part of the Global Cleantech 100,” Latimer says in a LinkedIn post. “Being recognized for the fourth consecutive year and named the ‘North American Company of the Year’ is a testament to our relentless pursuit of innovation in the energy sector. The demand for clean, firm power has never been more urgent, and we are proud to lead the way.”

Founded in 2017, Fervo is now a unicorn, meaning its valuation as a private company has surpassed $1 billion. The startup’s valuation is estimated at $1.4 billion. According to PitchBook data, the company raised $634 million in VC funding in Q4. Read more here.

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This article originally appeared on our sister site, Energy Capital.

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This week we're revisiting an episode of the Houston Innovators Podcast, which features Tim Latimer, CEO and co-founder of Fervo Energy. Photo courtesy of Fervo Energy

Play it back: Why this Houston geothermal innovator's company is set for a hot year of growth

houston innovators podcast Episode 271

Last year was one full of big wins for Fervo Energy and its CEO and co-founder, Tim Latimer. The company secured around $600 million in investment and financing across a few deals and is aiming for a 2026 delivery date of its next project.

Fervo Energy, which is built off of a unique horizontal well drilling technology, is currently scaling at around a 100x pace, as Latimer explained in May on the Houston Innovators Podcast, thanks to its latest project, Project Cape, located in Southwest Utah, that will include around 100 wells with significantly reduced drilling cost and an estimated 2026 delivery. Latimer says there are a dozen other projects like Project Cape that are in the works.

"It's a huge ramp up in our drilling, construction, and powerplant programs from our pilot project, but we've already had tremendous success there," Latimer says of Project Cape. "We think our technology has a really bright future."

Revisit the podcast episode below where Latimer talks about Fervo's fast growth and promising future.

Latimer has been bullish on geothermal as a clean energy source since he quit his job as a drilling engineer in oil and gas to pursue a dual degree program — MBA and master's in earth sciences — at Stanford University. He had decided that, with the reluctance of incumbent energy companies to try new technologies, he was going to figure out how to start his own company. Through the Stanford program and Activate, a nonprofit hardtech program that funded two years of Fervo's research and development, Latimer did just that.

"Every overnight success is a decade in the making, and I think Fervo, fortunately — and geothermal as a whole — has become much more high profile recently as people realize that it can be a tremendous solution to the challenges that our energy sector and climate are facing," he says on the Houston Innovators Podcast.

And the bet has more than paid off. In December, Fervo raised $255 million in new funding and capital availability. A $135 million corporate equity round was led by Capricorn’s Technology Impact Fund II and a $120 million letter of credit and term loan facility was granted by Mercuria, an independent energy and commodity group that previously invested in the company. Read more about the round.

Since the episode aired, Fervo has announced exciting news, including its $600M raise and being named among Time Magazine's top inventions of the year.

This week's roundup of Houston innovators includes Bobby Tudor of Greentown Labs, Tim Latimer of Fervo Energy, and Casey Brown of Evolve Houston. Photos courtesy

3 Houston innovators to know this week

who's who

Editor's note: Every week, I introduce you to a handful of Houston innovators to know recently making headlines with news of innovative technology, investment activity, and more. This week's batch includes three innovators across Houston's energy transition.

Bobby Tudor, board chair of Greentown Labs

Greentown Labs, a climatetech incubator with locations in the Houston and Boston areas, has announced it has received $4 million in funding from both of the Houston and Massachusetts locations. Houston investors included Bobby Tudor, CEO of Artemis Energy Partners and chairman of the Houston Energy Transition Initiative, who also joins the organization as board chair.

“The challenges of the energy transition are immense, and the role played by technology incubators like Greentown Labs is essential,” Tudor says in a news release. “We believe this role, which is a partnership between academia, industry, philanthropists, entrepreneurs, and governments, is the best way to get to effective, scalable solutions in a time frame that the urgency of the challenge requires. We need all hands on deck, and this partnership between Massachusetts and Texas can be a role model for others.” Read more.

Tim Latimer, CEO and co-founder of Fervo Energy

Tim Latimer of Fervo Energy has raised additional funding. Photo courtesy of Fervo Energy

A Houston company that's responding to rising energy demand by harnessing geothermal energy through its technology has again secured millions in funding. The deal brings Fervo's total funding secured this year to around $600 million.

Fervo Energy announced that it has raised $255 million in new funding and capital availability. The $135 million corporate equity round was led by Capricorn’s Technology Impact Fund II. The funding will go toward supporting Fervo's ongoing and future geothermal projects.

“The demand for 24/7 carbon-free energy is at an all-time high, and Fervo is one of the only companies building large projects that will come online before the end of the decade,” Fervo CEO and Co-Founder Tim Latimer says in a news release. “Investors recognize that Fervo’s ability to get to scale quickly is vital in an evolving market that is seeing unprecedented energy demand from AI and other sources.” Read more.

Casey Brown, executive director of Evolve Houston

Casey Brown and his team at Evolve Houston have rolled out a new program. Photo courtesy

The innovative METRO microtransit program will be expanding to the downtown area, the Metropolitan Transit Authority of Harris County announced.

The program started in June 2023 when the city’s nonprofit Evolve Houston partnered with the for-profit Ryde company to offer free shuttle service to residents of Second and Third Ward. The shuttles are all-electric and take riders to bus stops, medical buildings, and grocery stores. Essentially, it works as a traditional ride-share service but focuses on multiple passengers in areas where bus access may involve hazards or other obstacles. Riders access the system through the Ride Circuit app.

“Our microtransit service is a game-changer for connecting people, and we are thrilled to launch it in downtown Houston,” said Evolve executive director Casey Brown. “The all-electric, on-demand service complements METRO’s existing fixed-route systems while offering a new solution for short trips. This launch marks an important milestone for our service, and we look forward to introducing additional zones in the new year — improving access to public transit and local destinations.” Read more.

The deal brings Fervo's total funding secured this year to around $600 million. Photo courtesy of Fervo

Fast-growing Houston-based geothermal energy co. secures $255M in additional funding

show me the money

A Houston company that's responding to rising energy demand by harnessing geothermal energy through its technology has again secured millions in funding. The deal brings Fervo's total funding secured this year to around $600 million.

Fervo Energy announced that it has raised $255 million in new funding and capital availability. The $135 million corporate equity round was led by Capricorn’s Technology Impact Fund II with participating investors including Breakthrough Energy Ventures, CalSTRS, Congruent Ventures, CPP Investments, DCVC, Devon Energy, Galvanize Climate Solutions, Liberty Mutual Investments, Mercuria, and Sabanci Climate Ventures.

The funding will go toward supporting Fervo's ongoing and future geothermal projects.

“The demand for 24/7 carbon-free energy is at an all-time high, and Fervo is one of the only companies building large projects that will come online before the end of the decade,” Fervo CEO and Co-Founder Tim Latimer says in a news release. “Investors recognize that Fervo’s ability to get to scale quickly is vital in an evolving market that is seeing unprecedented energy demand from AI and other sources.”

Additionally, Fervo secured a $120 million letter of credit and term loan facility from Mercuria, an independent energy and commodity group that previously invested in the company.

“In surveying power markets across the U.S. today, the need for next-generation geothermal is undeniable,” Brian Falik, group chief investment officer of Mercuria, adds. “We believe in Fervo not just because their EGS approach is cost-effective, commercially viable, and already being deployed at scale, but because they set ambitious targets and consistently deliver.”

In February, Fervo secured $244 million in a financing round led by Devon Energy, and in September, the company received a $100 million bridge loan for the first phase of its ongoing project in Utah. This project, known as Project Cape, represents a 100x growth opportunity for Fervo, as Latimer explained to InnovationMap earlier this year. As of now, Project Cape is fully permitted up to 2 GW and will begin generating electricity in 2026, per the company.

Other wins for Fervo this year include moving into its new headquarters in downtown Houston, securing a power purchase agreement with California, growing its partnership with Google, and being named amongst the year's top inventions by Time magazine.


The ultimate who's who of 2024 — these are our favorite Houston Innovators Podcast guests of last year. Photos courtesy

Editor's Picks: 7 favorite Houston Innovator Podcast episodes of 2024

year in review

Editor's note: This year, recorded over 40 episodes of the Houston Innovators Podcast — a weekly discussion with a Houston innovator, startup founder, investor, and more. I've rounded up seven podcast episodes that stood out for me looking back at the year of recordings. Scroll through to see whom I selected and stream their individual episodes, and tune into the last episode of the year where I explain why I enjoyed each conversation.



Episode 220 - Better than just 'inclusive' - Denise Hamilton of WatchHerWork

Houstonian Denise Hamilton is coming out with a book she hopes helps leaders reach beyond inclusivity. Photo courtesy of WatchHerWork

Denise Hamilton says she's been used to looking around and realizing she's the only woman or African American in the room, and for the past nine years, she's been providing resources and education to trailblazing women like her. Now, she wants to prepare current and future leaders on how to go beyond inclusivity and work toward indivisibility.

Hamilton's book, "Indivisible: How to Forge Our Differences into a Stronger Future," publishes February 6 from Countryman Press. She explains that the book comes from years of her on personal experiences, as well as inspiration from the women she's met with her company, WatchHerWork, multimedia digital platform providing advice and resources for professional women.

"I've learned a lot of lessons about what skills work, what behaviors are not intuitive, and built WatchHerWork with the intention of creating a space where people can get all of that advice — and juicy goodness — so that they can learn what they needed to do to be authentically successful," Hamilton says on the Houston Innovators Podcast.

"This led to me being brought in as a speaker, and ultimately has led to me becoming an author," she continues. "It's always shocking when people want to listen to what you want to say. It's unbelievable." Continue reading the original article.

Episode 231 - Fostering a collaborative energy transition ecosystem - Barbara Burger

Houston energy leader Barbara Burger joins the Houston Innovators Podcast to discuss the energy transition's biggest challenges and her key takeaways from CERAWeek. Photo courtesy

When Barbara Burger moved to Houston a little over a decade ago to lead Chevron Technology Ventures, she wondered why the corporate venture group didn't have much representation from the so-called energy capital of the world.

“I had no companies in my portfolio in CTV from Houston, and I wondered why,” Burger says on the Houston Innovators Podcast.

Much has changed in the ecosystem since then, she says, including growth and development to what the community looks like now.

“There are a few things I’m proud of in the ecosystem here, and one of theme is that it’s a very inclusive ecosystem,” she explains, adding that she means the types of founders — from universities or corporate roles — and the incumbent energy companies. “The worst way to get people to not join a party is to not invite them.”

“No one company or organization is going to solve this. We have to get along,” she continues. “We have to stop thinking that the mode is to compete with each other because the pie is so big and the opportunity is so big to work together — and by and large I do see that happening.”Continue reading the original article.

Episode 233 - How a Houston angel earns their wings - Mitra Miller of Houston Angel Network

Mitra Miller, vice president and board member of the Houston Angel Network, joins the Houston Innovators Podcast to share her passion for growing angel investors in Houston. Photo via LinkedIn

One of the biggest components of a well-functioning startup ecosystem is inarguably access to capital, and Mitra Miller is dedicated to enhancing education around investment and growing Houston's investor base.

As vice president and board member of the Houston Angel Network, the oldest angel network in Texas and one of the most active angel networks in the country, Miller strives to provide guidance to new and emerging angel investors as well as founders seeking to raise money from them.

"Most founders have no idea or understanding of how investors think — we are not an ATM," Miller says on the Houston Innovators Podcast. "We are really partners you are getting married to for the next 5, 8, 10 years — sometimes longer. We need to bring your allies in every sense of the word." Continue reading the original article.


Episode 237 - Gearing up for 100x growth - Tim Latimer of Fervo Energy

Tim Latimer, CEO and co-founder of Fervo Energy, joins the Houston Innovators Podcast. Photo courtesy of Fervo Energy

Geothermal energy has been growing in recognition as a major player in the clean energy mix, and while many might think of it as a new climatetech solution, Tim Latimer, co-founder and CEO of Fervo Energy, knows better.

"Every overnight success is a decade in the making, and I think Fervo, fortunately — and geothermal as a whole — has become much more high profile recently as people realize that it can be a tremendous solution to the challenges that our energy sector and climate are facing," he says on the Houston Innovators Podcast.

In fact, Latimer has been bullish on geothermal as a clean energy source since he quit his job as a drilling engineer in oil and gas to pursue a dual degree program — MBA and master's in earth sciences — at Stanford University. He had decided that, with the reluctance of incumbent energy companies to try new technologies, he was going to figure out how to start his own company. Through the Stanford program and Activate, a nonprofit hardtech program that funded two years of Fervo's research and development, Latimer did just that. Continue reading the original article.

Episode 248 - Houston's beating heart - Dr. William Cohn of The Texas Heart Institute

Dr. William Cohn is the chief medical officer for BiVACOR, a medical device company creating the first total artificial heart. Photo via TMC

It's hard to understate the impact Dr. William Cohn has had on cardiovascular health as a surgeon at the Texas Heart Institute or on health care innovation as the director of the Center for Device Innovation at the Texas Medical Center. However, his role as chief medical officer of BiVACOR might be his most significant contribution to health care yet.

The company's Total Artificial Heart is unlike any cardiovascular device that's existed, Cohn explains on the Houston Innovators Podcast. While most devices are used temporarily for patients awaiting a heart transplant, BiVACOR's TAH has the potential to be a permanent solution for the 200,000 patients who die of heart failure annually. Last year, only around 4,000 patients were able to receive heart transplants.

"Artificial hearts historically have had bladders that ejected and filled 144,000 times a day. They work great for temporary support, but no one is suggesting they are permanent devices," Cohn says on the show. Continue reading the original article.

Episode 251 - Building enduring innovation ecosystems - Jon Norby of Anthropy Partners and EconWerx

Jon Nordby's career has been focused on cultivating a culture for innovation, and now he's focused on human potential technology opportunities. Photo courtesy

In his role overseeing startup accelerators for MassChallenge, Jon Nordby started noticing one industry vertical stood out in terms of success and opportunities: Human potential. Now, Nordby is a founding member of an investment firm looking for those opportunities.

Nordby, who served in various leadership roles at MassChallenge — including managing director and head of ecosystems — said he started realizing the opportunities within the organization's space and sports tech programs.

"What we realized over a couple of years running the program was that sports tech as a theme was too limiting," Nordby says on the Houston Innovators Podcast. "We were finding really great technologies, but we were limited at the market size of teams and leagues to deploy those technologies."

"Over the course of that program, we found that the things that were related more to human health and performance tended to out perform all of the other things related to sports tech — like media, entertainment, gambling," Nordby continues. "Still really great markets for those technologies, but we found a lot more traction for human performance." Continue reading the original article.

Episode 263 - Maintaining a legacy of innovation - Reginald DesRoches of Rice University

Rice University President Reginald DesRoches joins the Houston Innovators Podcast to discuss balancing tradition with growth, innovation, and global impact in education. Photo courtesy Tommy LaVergne/Rice University

How does a historic university maintain its legacy while still making room for growth and increased opportunities? That's what Rice University President Reginald DesRoches considers with every decision he makes.

"It's this idea of preserving what's special about the university, while also knowing we need to adapt to a new time, a new Rice, a new time in higher ed, and a new time in society," DesRoches says on the Houston Innovators Podcast. "There's a healthy tension between preserving what Rice is known for — the culture of care, the close-knit community — while knowing that we need to grow, have a global impact, and position Rice on a global scale. It's something that's constantly in my mind to make sure we do both." Continue reading the original article.


Fervo Energy received $100 million loan for its Utah Cape Station project. Photo via fervoenergy.com

Houston company secures $100M for 'world’s largest geothermal energy plant'

loan guaranteed

Houston-based geothermal energy company Fervo Energy has secured a $100 million bridge loan for the first phase of its ongoing project in Utah.

The loan came from an affiliate of Irvington, New York-based X-Caliber Rural Capital. Proceeds will support construction of Fervo’s Cape Station project, which is being touted as the world’s largest geothermal energy plant.

The first phase of Cape Station, which is on track to generate 90 megawatts of renewable energy, is expected to be completed in June 2026. Ultimately, the plant is supposed to supply 400 megawatts of clean energy by 2028 for customers in California.

“Helping this significant project advance and grow in rural America is a true testament to how investing in communities and businesses not only has local influence, but can have a global, long-lasting impact by promoting sustainability and stimulating rural economies,” Jordan Blanchard, co-founder of X-Caliber Rural Capital, says in a news release.

X-Caliber Rural Capital is an affiliate of commercial real estate financing company X-Caliber Capital Holdings.

Fervo says its drilling operations Utah’s Cape Station show a 70 percent reduction in drilling times, paving the way for advancement of its geothermal energy system.

Tim Latimer, co-founder and CEO of Fervo, says his company’s drilling advancements, purchase deals, transmission rights, permit approvals, and equipment acquisitions make Fervo “an ideal candidate” for debt financing. In May, Latimer joined the Houston Innovators Podcast to discuss the company's growth and latest project.

With a new office in downtown Houston, Fervo recently signed up one of the country’s largest utilities as a new customer and expanded its collaboration with Google.

To date, Fervo has raised $531 million in venture capital funding, per Crunchbase data.

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This article originally ran on EnergyCapital.

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Houston doctor aims to revolutionize hearing aid industry with tiny implant

small but mighty

“What is the future of hearing aids?” That’s the question that led to a potential revolution.

“The current hearing aid market and technology is old, and there are little incremental improvements, but really no significant, radical new ideas, and I like to challenge the status quo,” says Dr. Ron Moses, an ENT specialist and surgeon at Houston Methodist.

Moses is the creator of NanoEar, which he calls “the world’s smallest hearing aid.” NanoEar is an implantable device that combines the invisibility of a micro-sized tympanostomy tube with more power—and a superior hearing experience—than the best behind-the-ear hearing aid.

“You put the NanoEar inside of the eardrum in an in-office procedure that takes literally five minutes,” Moses says.

As Moses explains, because of how the human cochlea is formed, its nerves break down over time. It’s simply an inevitability that if we live long enough, we will need hearing aids.

“The question is, ‘Are we going to all be satisfied with what exists?’” he asks.

Moses says that currently, only about 20 percent of patients who need hearing aids have them. That’s because of the combination of the stigma, the expense, and the hassle and discomfort associated with the hearing aids currently available on the market. That leaves 80 percent untapped among a population of 466 million people with hearing impairment, and more to come as our population ages. In a nearly $7 billion global market, that additional 80 percent could mean big money.

Moses initially patented a version of the invention in 2000, but says that it took finding the right team to incorporate as NanoEar. That took place in 2016, when he joined forces with cofounders Michael Moore and Willem Vermaat, now the company’s president and CFO, respectively. Moore is a mechanical engineer, while Vermaat is a “financial guru;” both are repeat entrepreneurs in the biotech space.

Today, NanoEar has nine active patents. The company’s technical advisors include “the genius behind developing the brains in this device,” Chris Salthouse; NASA battery engineer Will West; Dutch physicist and audiologist Joris Dirckx; and Daniel Spitz, a third-generation master watchmaker and the original guitarist for the famed metal band Anthrax.

The NanoEar concept has done proof-of-concept testing on both cadavers at the University of Antwerp and on chinchillas, which are excellent models for human hearing, at Tulane University. As part of the TMC Innovation Institute program in 2017, the NanoEar team met with FDA advisors, who told them that they might be eligible for an expedited pathway to approval.

Thus far, NanoEar has raised about $900,000 to get its nine patents and perform its proof-of-concept experiments. The next step is to build the prototype, but completing it will take $2.75 million of seed funding.

Despite the potential for making global change, Moses has said it’s been challenging to raise funds for his innovation.

“We're hoping to find that group of people or person who may want to hear their children or grandchildren better. They may want to join with others and bring a team of investors to offset that risk, to move this forward, because we already have a world-class team ready to go,” he says.

To that end, NanoEar has partnered with Austin-based Capital Factory to help with their raise. “I have reached out to their entire network and am getting a lot of interest, a lot of interest,” says Moses. “But in the end, of course, we need the money.”

It will likely, quite literally, be a sound investment in the future of how we all hear the next generation.

Forbes and Fortune spotlight Houston innovators and more news to know

Trending news

Editor's note: It's time to look back at the top trending innovation news in April. Forbes and Fortune magazines put the spotlight on Houston, plus a Houston startup makes its rodeo debut and a state-of-the-art facility opens in the Energy Corridor. Here are the five most-read InnovationMap stories for the first half of April 2025.

1. Google teams up with Rice University to launch AI-focused accelerator

The new Rice Nexus is partnering with Google Public Sector and Non Sibi Ventures to support high-potential AI-focused startups. Image via Rice University.

Google Public Sector is teaming up with Rice University to drive early-stage artificial intelligence innovation and commercialization via the new Rice AI Venture Accelerator, or RAVA.

RAVA will use Google Cloud technology and work with venture capital firm Non Sibi Ventures to connect high-potential AI-focused startups with public and private sector organizations. The incubator will be led by Rice Nexus, which launched earlier this year in the Ion District as an AI-focused "innovation factory.” Continue reading.

2. State-of-the-art innovation hub opens in Houston Energy Corridor

Schneider Electric's new Energy Innovation Center can simulate various real-world scenarios in refineries, combined-cycle power plants, ethylene plants and other facilities. Getty Images

French multinational company Schneider Electric has opened a new 10,500-square-foot, state-of-the-art Energy Innovation Center in Houston. The new facility is located in Houston’s Energy Corridor and is designed to “foster increased collaboration and technological advancements across the entire value chain,” according to a release. The new Houston location joins Schneider's existing innovation hubs in Paris, Singapore and Bangalore.

The venue will serve as a training center for process control engineers, production superintendents, manufacturing managers, technical leads and plant operations personnel. It can simulate various real-world scenarios in refineries, combined-cycle power plants, ethylene plants, recovery boilers and chemical reactors. Continue reading.

3. 18 Houstonians land on Forbes world's billionaires list for 2025

Tilman Fertitta is the richest Houstonian, according to Forbes. Courtesy photo

The world’s richest people are wealthier now than they've ever been, and more billionaires have made it onto the 2025 World's Billionaires List than ever before, according to Forbes. This year, 18 Houston-based billionaires are among the richest people in the world, with hospitality honcho Tilman Fertitta leading as the richest Houstonian.

Fertitta, 67, ranked No. 220 overall with an estimated net worth of $11.3 billion, which steadily increased from his 2024 net worth of $9.4 billion. Continue reading.

4. 8 Houston companies earn spots among Fortune's most innovative for 2025

Health care companies dominated Fortune's America’s Most Innovative Companies report for 2025, with Houston’s top-rated company on the list falling into that sector. Photo via Getty Images

Eight Houston companies have been named to Fortune’s third annual list of America’s Most Innovative Companies, joining another 16 from the state of Texas. The group of 300 companies nationwide was rated based on production innovation, process innovation, and innovation culture, according to Fortune. In partnership with Statista, the magazine considered IP portfolios, employee, expert and customer opinions; and many other factors.

While many of the top-rated companies fell into the tech sector, Fortune reports that health care companies made up the largest portion of the 2025 list. Sixty-three honorees fell into the health care category, including Houston’s top-rated company, Houston Methodist. Continue reading.

5. Houston startup unveils its innovative leather alternative at the rodeo

Rheom Materials presented its bio-based alternative, Shorai, a 93 percent bio-based leather, at the rodeo and plans to scale it up this year. Photos courtesy Rheom Materials

Last month’s Houston Livestock Show and Rodeo stirred up another rootin’ tootin’ time for Houstonians and beyond. But before the annual event galloped into the sunset, there were quite a few memorable innovations on display, with one notably coming from Rheom Materials.

The Houston-based pioneer of next-generation materials presented its scalable, bio-based alternative known as Shorai, a 93 percent bio-based leather, through two custom, western-inspired outfits that showed off cowboy flair through a sustainable lens. Continue reading.

Houston VC funding surged in Q1 2025 to highest level in years, report says

by the numbers

First-quarter funding for Houston-area startups just hit its highest level since 2022, according to the latest PitchBook-NVCA Venture Monitor. But fundraising in subsequent quarters might not be as robust thanks to ongoing economic turmoil, the report warns.

In the first quarter of 2025, Houston-area startups raised $544.2 million in venture capital from investors, PitchBook-NVCA data shows. That compares with $263.5 million in Q1 2024 and $344.5 million in Q1 2023. For the first quarter of 2022, local startups nabbed $745.5 million in venture capital.

The Houston-area total for first-quarter VC funding this year fell well short of the sum for the Austin area (more than $3.3 billion) and Dallas-Fort Worth ($696.8 million), according to PitchBook-NVCA data.

While first-quarter 2025 funding for Houston-area startups got a boost, the number of VC deals declined versus the first quarters of 2024, 2023 and 2022. The PitchBook-NVCA Monitor reported 37 local VC deals in this year’s first quarter, compared with 45 during the same period in 2024, 53 in 2023, and 57 in 2022.

The PitchBook-NVCA report indicates fundraising figures for the Houston area, the Austin area, Dallas-Fort Worth and other markets might shrink in upcoming quarters.

“Should the latest iteration of tariffs stand, we expect significant pressure on fundraising and dealmaking in the near term as investors sit on the sidelines and wait for signs of market stabilization,” the report says.

Due to new trade tariffs and policy shifts, the chances of an upcoming rebound in the VC market have likely faded, says Nizar Tarhuni, executive vice president of research and market intelligence at PitchBook.

“These impacts amplify economic uncertainty and could further disrupt the private markets by complicating investment decisions, supply chains, exit windows, and portfolio strategies,” Tarhuni says. “While this may eventually lead to new domestic investment and create opportunities, the overall environment is facing volatility, hesitation, and structural change.”

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