5 Houston startups start 2021 strong with fresh funding

following the money

These Houston startups are starting the year off funded. Photo via Getty Images

Houston startups saw a tumultuous year last year when it came to funding, but some local businesses are seeing an uptick in various stages of venture funding — from a $130 million series B round to a few seed and pre-seed fundings.

In case you missed some of these headlines, InnovationMap has rounded up these seven deals based on previous reporting. Scroll through to see which Houston startups are catching the eyes — and cashing the checks — of investors.

Houston software startup closes $7.5M series A led by two Houston-area​ VC firms

A Houston startup has closed a $7.5 million round of funding with mostly local investment. Photo courtesy of WizeHire

A Houston B2B software startup has closed a new round of funding led by two Houston venture capital firms.

WizeHire, a tech-enabled hiring solution for small businesses, closed a $7.5 million series A funding round that was led by Houston-based Mercury Fund and Amplo, which is based just north of Houston in Spring. Additional support came from existing backers Ruchit Shah and RigUp co-founder Sandeep Jain. The company was co-founded by Sid Upadhyay, Nick Carneiro, and Jay Niblick.

According to a news release, WizeHire will use the funds to scale their business, which is centered around providing personalized hiring resources to small businesses, as well as to hire more staff and expand its partner program.

"We're a small business helping small businesses with a team of people looking out for you," says Upadhyay, who serves the company as CEO, in the release. "Hiring is complex and personal. Our customers see what we do not just as software; they see us as a trusted advisor." Click here to continue reading.

Houston B2B software company raises $3.2M in seed funding to grow team and product

DocJuris has raised its first round of venture funding to grow its team to keep up with demand for its legal software platform. Image courtesy of DocJuris

A Houston-based software-as-a-service company that is revolutionizing the contract process has closed a round of funding this week.

DocJuris, founded in 2018, raised $3.2 million in seed funding led by New York-based RTP Seed with additional support from Houston-based Seed Round Capital, California-based Watertower Ventures, Maryland-based Crossbeam, and Remote First Capital.

It's the startup's first round of venture funding and Henal Patel, CEO of DocJuris, says he was looking for funds as well as support from investors who had experience with software and could open doors to new clients for the legal software. Click here to continue reading.

Houston space tech company raises $130M series B

Houston-based Axiom Space has raised more funds for its growing commercial space business. Image via axiomspace.com

Just around a year ago, Houston-based Axiom Space Inc. closed a $100 million series A round. Now, the space tech company has announced even more financing as it grows and scales to support a NASA-commissioned project.

Axiom raised $130 million in its series B round led by C5 Capital with support from TQS Advisors, Declaration Partners, Moelis Dynasty Investments, Washington University in St. Louis, The Venture Collective, Aidenlair Capital, Hemisphere Ventures, and Starbridge Venture Capital.

"Axiom Space is a force in the space sector, and it will become a centerpiece of the C5 Capital portfolio and enhance our vision for a secure global future," says C5 operating partner Rob Meyerson, who will join the Axiom board of directors, in a news release. "The Axiom Station will be the infrastructure upon which we will build many new businesses in space, and it will serve as the foundation for future exploration missions to the Moon, Mars, and beyond." Click here to continue reading.

Houston construction staffing startup emerges from stealth with $1.5 pre-seed funding

Houston-based Buildforce is developing a technology to better connect contractors and the trade professionals they employ. Photo via Getty Images

A Houston startup has been quietly working on a tech solution for construction staffing and has now emerged from stealth mode to announce a recent funding round as well as an acquisition.

Launched in July of 2020, Buildforce is a construction staffing app that aims to more efficiently connect contractors to skilled workers in trades ranging from electrical, mechanical, and plumbing to flooring, concrete, painting, and more, according to a news release. The company raised a $1.5 million pre-seed round led by Houston-based Mercury Fund.

Co-founder and CEO Moody Heard, who previously served as senior investment analyst at Mercury, says the tech product — the Buildforce Contractor App — will have a big impact on Texas, which is experiencing growing construction volume across the state. Click here to continue reading.

Houston digital studio closes $2M seed round with local investment

Umbrage, a Houston-based developer of enterprise software, has closed its seed funding. Photo via umbrage.com

A software startup in Houston has leveled up thanks to new funding. Houston-based digital studio Umbrage has reportedly raised $2 million.

Founded in 2019 by Will Womble, Umbrage creates custom software solutions for companies within digitally transforming industries, such as oil and gas, healthcare, and supply chain.

"Umbrage is a new way that enterprises can overcome the inherent challenges of building and scaling digital solutions," Womble, who also serves as CEO, says in a news release. "Umbrage partners with internal technology teams to create scalable products that directly impact business' success. And by training our clients to effectively scale and improve these custom-built solutions, we're setting up our customers for long-term, sustainable success." Click here to continue reading.
Umbrage, a Houston-based developer of enterprise software, has closed its seed funding. Photo via umbrage.com

Houston digital studio closes $2M seed round with local investment

money moves

A software startup in Houston has leveled up thanks to new funding. Houston-based digital studio Umbrage has reportedly raised $2 million.

Founded in 2019 by Will Womble, Umbrage creates custom software solutions for companies within digitally transforming industries, such as oil and gas, healthcare, and supply chain.

"Umbrage is a new way that enterprises can overcome the inherent challenges of building and scaling digital solutions," Womble, who also serves as CEO, says in a news release. "Umbrage partners with internal technology teams to create scalable products that directly impact business' success. And by training our clients to effectively scale and improve these custom-built solutions, we're setting up our customers for long-term, sustainable success."

The round was led by Rice Investment Group — which, according to the release, has been a client of Umbrage as well as an investor.

"We've utilized Umbrage's custom solutions in our portfolio companies with great success and we can attest to the customer value proposition," says Danny Rice, a Partner of Rice Investment Group. "We're thrilled to support Umbrage's growth and enable forward-thinking businesses to unlock the business potential that digital solutions from Umbrage can deliver."

According to the release, Umbrage was able to be cash-flow-positive within weeks of starting and has already grown its team to nearly 40 employees. Clients include Cold Bore Technologies, Sumitomo Corp., and cpap.com.

"Umbrage brings a product-first mindset that continues to influence our organization far beyond what is expected from a software vendor," says Edwin Suarez, vice president and chief digital officer at SC Global Tubular Solutions. "Our team has been challenged with digital business models from ideation through product development and partnering with Umbrage helps us focus on long-term strategy while ensuring delivery on our immediate needs."

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

ExxonMobil announces $100B carbon-capture hub for Houston area

greener thinking

In a move that would be a gamechanger for Houston, oil and gas giant ExxonMobil envisions creating a $100 billion carbon-capture hub along the Houston Ship Channel.

ExxonMobil foresees the Houston Ship Channel being the site of an "innovation zone" for carbon capture and storage. In a blog post on the ExxonMobil website, Joe Blommaert, the Houston-based president of ExxonMobil Low Carbon Solutions, says Houston would be "the perfect place" for the project because:

  • The ship channel is home to dozens of refineries and petrochemical plants.
  • The geological formations in the Gulf of Mexico could "safely, securely, and permanently" store tons of carbon emissions under the sea floor, according to the blog post. The U.S. Department of Energy estimates the storage capacity along the U.S. Gulf Coast could handle 500 million metric tons of CO2.

Irving-based ExxonMobil, which employs more than 12,000 people in the Houston area, says the project could capture and store about 50 million metric tons of CO2 annually by 2030. By 2040, that number could rise to 100 million metric tons.

"We could create an economy of scale where we can reduce the cost of the carbon dioxide mitigation, create jobs, and reduce the emissions," Blommaert tells the Reuters news service.

In a news release, Houston Mayor Sylvester Turner applauds the ExxonMobil plan.

"This proposal by ExxonMobil is the type of bold ambition and investment we will need to meet our climate goals and protect our communities from climate change," Turner says. "ExxonMobil's proposal represents a significant step forward for the energy industry, and I hope it brings more companies to the table to help Houston lead a global energy transition."

Turner notes that the Houston area is home to some of the largest emitters of carbon in the U.S., adding that everyone has "a responsibility and role to play in decarbonization."

Blommaert says the project would require public and private funding, along with "enhanced regulatory and legal frameworks that enable investment and innovation." According to Politico, ExxonMobil wants the federal government to kick in tax breaks or to set carbon-pricing policies to help get the project off the ground.

Politico reports that the Biden administration isn't considering ExxonMobil's idea as it prepares a climate-change package.

"Meanwhile, environmental groups and many Democrats have slammed carbon-capture proposals as a climate strategy, saying the only way to permanently reduce greenhouse gas pollution is a wholesale switch away from fossil fuels," Politico says.

Meanwhile, the International Energy Agency maintains that carbon capture and storage "are critical for putting energy systems around the world on a sustainable path." Achieving net-zero goals "will be virtually impossible" without carbon capture and storage, the group says.

ExxonMobil announced creation of its Low Carbon Solutions business unit in February as part of its push to invest $3 billion in lower-emission energy initiatives through 2025. Low Carbon Solutions initially will focus on technology for carbon capture and storage. The business unit is exploring opportunities along the Gulf Coast, as well as in Wyoming, Belgium, the Netherlands, Qatar, Scotland, and Singapore.

Last year, ExxonMobil hit the pause button on a $260 million carbon-capture project in Wyoming due to fallout from the COVID-19 pandemic, according to the Bloomberg news service.

In a December report, the Global CCS Institute, a think tank, said 65 commercial carbon-capture projects were in various stages of development around the world.

"Climate ambition, including efforts to decarbonize industry, has not been curtailed despite the adversities faced in 2020," Brad Page, CEO of the institute, says in a news release about the report. "We're continuing to see an upward trajectory in the amount of CO2 capture and storage infrastructure that is being developed. One of the largest factors driving this growth is recognition that achieving net-zero emissions is urgent yet unattainable without CO2 reductions from energy-intensive sectors."

Newly appointed innovation leader calls for more health care collaboration in Houston

HOUSTON INNOVATORS PODCAST EPISODE 80

Allison Post is a professional dot connector for the Texas Heart Institute. Located in the Texas Medical Center and founded in 1962, THI has long had a history of innovation — from Denton Cooley, THI's founder, performing the first artificial heart implementation in 1970.

Now, Post — who was appointed to a newly created position of manager of innovation partnerships — is focused on working with THI's latest generation of cardiac health innovators. She works internally to foster and support THI's brightest inventors as well as externally to make sure the institute is bringing in the best new technologies out there to its patients.

"The whole mission of the Texas Heart Institute is to help our patients. If that means that someone else has an incredible idea we want to jump onboard and bring it to people," Post says in this week's episode of the Houston Innovators Podcast.

Post, who has a bioengineering background and has worked on both sides of the table as an entrepreneur and a startup mentor, is looking to support breakthrough cardiac innovations within stem cells, pharmaceuticals, medical devices, and more. And unfortunately, the cardiac health space has an increasing need to develop new health care solutions.

"Because of the growing burden of heart disease, heart failure, coronary artery disease, the unfortunately long list of things that can go wrong with someone's heart means the pressing need for therapies is just growing," she says on the show. "We're trying to keep up and break into things that people haven't done a lot of work on, such as women's heart health."

Another factor in Post's role, which she's had since last fall, is to bring THI further into both the TMC's innovation efforts as well as the greater Houston innovation ecosystem — as well as beyond. To her, Houston has a huge opportunity to lead health care innovation.

"It makes no sense that we aren't the health care leaders yet in med tech development. It should not be Boston, San Francisco, or Minneapolis. It should be Houston," Post says. "We have everything we need to do it. We just need to bring it all together."

The key to getting there, she says, is further collaboration. If there's one thing the world has learned about health care innovation from COVID-19, it's that when experts are rallying behind and collaborating on solutions, the speed of development is much faster.

"The more minds we have the better the solutions I going to be," she says.

Post says that she hopes her work at THI can inspire other institutions to collaborate ‚ since everyone has the same goal of helping patients.

"I only see just phenomenal things for Houston, and what I really want is for the Texas Medical Center to become even more interconnected. We've got to be able to transfer ideas and thoughts and intentions seamlessly between these institutions and right now there are a lot of barriers," Post says. "And I really think Texas Heart is hopefully going to serve as an example of how to take down those barriers."

Post shares more about what she's focused on and where THI is headed on the episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

New Houston accelerator supporting BIPOC in aerospace announces inaugural cohort

out of this world

A new accelerator program that is focused on aerospace innovation and supporting entrepreneurs who are Black, Indigenous, and people of color has announced its first cohort.

The Ion's Aerospace Innovation Accelerator for Minority Business Enterprises, or AIA for MBEs, has named the four companies that well be a part of its inaugural cohort. The 12-week program will guide the entrepreneurs through the development of their innovations, the growth of their businesses, and the development of relationships with mentors, corporate partners, and stakeholder networks.

"Aerospace contains a myriad of dimensions and by demystifying the industry in the form of the AIA for MBEs, we are able to build a more inclusive innovation ecosystem," says Christine Galib, senior director of programs at The Ion, in a news release. "It's our goal to not only support participants to be successful, but to open the playing field for other minority business enterprises hoping to enter the space."

The program's existence was possible through a partnership with NASA's Johnson Space Center, DivInc, and The Ion — as well as a $1.4 million grant from the U.S. Department of Commerce's Minority Business Development Agency.

Here are the four companies to take part in the cohort, according to the release:

  • Axialnics Systems Inc., led by Vincent Mbuvi, is an aerospace technology platform developing a Disc-wing Rotor Aircraft Concept, which takes-off as a helicopter, carries as much payload as an airplane and flies just as fast beyond the range of typical helicopters. The innovation solves runway inefficiencies and enhances military efficiency.
  • Boozed Beverages LLC, led by Damyanna Cooke and Jim Luu, specializes in intelligent vending in the liquor industry. The company provides a contactless, AI-driven cocktail making and dispensing vending machine, for locations such as weddings and events, sporting venues, festivals, restaurants, and nightclubs and lounges.
  • NANCo Aero, led by Shern Peters, provides urban air vehicles and drones to commercial, small business, government, and nonprofit organizations. It is working to develop the first Hybrid Personal Air Vehicle capable of transporting a family over the city of Houston.
  • Stratos Perception LLC, led by Rube Williams, develops artificial intelligence solutions for space systems to benefit human productivity, safety, and enterprise. It is also developing an intelligent transducer, a tool that can monitor and control multiphase flow, for use in space such as lunar water extraction and waste processing.

The hub and its associated accelerator will be housed at The Ion when it opens up later this year — along with the organizations other accelerators — but the program is being launched virtually on Wednesday, April 21, at noon.

"The Aerospace Innovation Hub came from the idea that the aerospace industry is well-known in Houston but for many people, particularly underrepresented communities, there have been barriers in entering the aerospace industry," says Jan E. Odegard, executive director of The Ion, in the release. "By offering mentorship, introduction to capital and training opportunities, with significant backing from Microsoft, The Ion is working to remove the barriers."

View All Listings