Houston VC firm closes $21M fund for underrepresented founders

fresh funding

Zach Ellis, founder and general partner of South Loop Ventures, which recently closed its debut fund. Photo via LinkedIn

Houston-based South Loop Ventures recently closed its debut fund for more than $21 million, led by investments from Rice Management Company and Chevron Technology Ventures.

The funds will go toward teams with at least one underrepresented founder of color working in the energy, health, space, sports and fintech sectors. Additional investments came from The Great Commission Foundation of the Episcopal Diocese of Texas, Texas CapitalBank and others organizations.

According to South Loop Ventures, less than 3 percent of venture capital reaches underrepresented founders of color. Zach Ellis Jr., founder and general partner of South Loop, says the firm wants to address this "billion-dollar blind spot."

"Inequitable distribution of venture capital represents a clear market inefficiency—and market inefficiencies translate into exceptional opportunities," Ellis said in a release.

He added that the firm's location in Houston will help it make an impact.

"Being anchored here gives us front-row access to world-class corporations eager to engage and support innovation from founders with underrepresented voices and perspectives," he added in the release.

Ellis founded South Loop Ventures in 2022. It has funded 13 companies since August 2023 and plans to fund several more this year. Its portfolio includes Houston-based Milkify, a breast milk freeze-drying service; Lokum App, a Houston-founded platform for recruiting certified registered nurse anesthetists; and others.

Ellis' background spans the United States Military, academia, and roles at Rev1 Ventures and PepsiCo’s corporate venture team. He previously told InnovationMap that he was called to invest in founders of color after George Floyd's murder. He says he also realized how much money was being left on the table by overlooking these innovators.

"The mission of South Loop is to become the preeminent source of venture capital dollars for underrepresented, diverse teams nationally to serve as a beacon for the best underrepresented talent and to enable them to be successful through leveraging the unique resources and talent of Houston," he said on the Houston Innovators Podcast in 2024. "A big part of our mission is also to help catalyze Houston as an ecosystem for tech entrepreneurship."

Listen to the full interview with Ellis here. The recent funding news and Ellis were also featured in a profile by TechCrunch earlier this week. Click here to read more.

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TXSE Group wins SEC approval for Texas Stock Exchange to start in 2026

Trading in Texas

The U.S. Securities and Exchange Commission has given the go-ahead to the Dallas-based Texas Stock Exchange to operate as a national securities exchange, clearing the way for the TXSE to begin trading stocks and exchange-traded products by early 2026.

TXSE is the first fully integrated national securities exchange to receive SEC approval in decades. A release calls it "a milestone decision" that restores competition in America's public markets.

The organization has already laid the groundwork with an exchange platform utilizing the appropriate hardware and software that will function in an evolving trading and regulatory environment.

TXSE, which opened its headquarters in Dallas in spring 2025, will launch trading as well as ETP and corporate listings for companies that meet their standards and are fully transparent. Their goal is to compete with the NYSE and NASDAQ by building up a large roster of newly listed companies.

"Today's approval marks a pivotal moment in our effort to build a world-class exchange rooted in alignment, transparency, and partnership with issuers and investors," says TXSX founder and CEO James H Lee. "Real competition for corporate listings in the United States has finally arrived."

According to the release, TXSE's mission is to reverse a decades-long decline in the number of U.S. public companies by reducing the burden of going and staying public while maintaining high quantitative standards in the industry.

They've already pushed for legislative and legal reforms to strengthen Texas' pro-business environment and establish the state as the premier jurisdiction for corporate headquarters, listings, and exchange operators — working alongside Texas leadership to advocate on behalf of issuers and investors to reform policy.

"As the one and only national securities exchange built and headquartered in Texas, we are proud to have been the catalyst for the development of capital markets in our great state," Lee says.

TXSE's founding investors include financial institutions, retail, and institutional investment organizations, including BlackRock, Citadel Securities, and Charles Schwab, as well as major liquidity providers and corporate executives from across the U.S.

TXSE will be one of three exchanges to join Texas' so-called economic hub Y’all Street, along with the New York Stock Exchange and NASDAQ.

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This article originally appeared on CultureMap.com.

10+ can't-miss Houston business and innovation events for October

where to be

Editor's note: Houston's October calendar is packed with informative and impactful events—plus a few fun ones, too. From the fourth annual Tejano Tech Summit to the first-ever Ion Family Tech Festival, here's what not to miss and how to register. Please note: this article may be updated to include additional event listings.

Oct. 3 — Houston Methodist Joy in Medicine Initiative Symposium

The Houston Methodist Joy in Medicine Initiative Symposium will explore the power of connection in enhancing professional fulfillment for clinicians and healthcare teams, this year under the theme “The Power of We.” Hear from Dr. Shlomit Schall, Houston Methodist Physician Organization president and CEO and chief physician executive, and Dr. J. Bryan Sexton, director of the Duke Center for Advancement and Well-being Science. Stick around for a networking happy hour.

This event is Friday, Oct. 3, from 8:30 a.m.-4:30 p.m. at the InterContinental Houston. Find more information here.

Oct. 6-10 — Surgical Technology & Robotic Surgery Summit (STaRS)

Surgeons, engineers, researchers and innovators can explore the latest advancements in surgical robotics, imaging and AI-integrated technologies at this year’s Surgical Technology & Robotic Surgery Summit. They can also take in the inaugural Surgical Technology & Robotic Surgery Innovator Competition. The summit will feature live demonstrations, interactive panels and cutting-edge research.

This event begins Monday, Oct. 6, at MITIE at The Bookout Center. Find more information here.

Oct. 7 — SUPERGirlsInSTEM Summit: The Intersection of AI & Workforce

The SUPERGirls SHINE Foundation presents its SUPERGirlsInSTEM Summit, where attendees can take part in open discussions, networking and workshops while learning about AI skills that can advance college studies and entry into the workforce.

This event is Tuesday, Oct. 7, from 9 a.m.-1 p.m. at the Ion. Find more information here.

Oct. 7 — Future of Health Care: Thought Leader Series

Hear from Rice University President Reginald DesRoches, and Kristen Doyle, CEO of the Cancer Prevention and Research Institute of Texas, at the Greater Houston Partnership’s Future of Health Care: Thought Leader Series. The expert panel will discuss key topics, including the proposed Dementia Prevention and Research Institute of Texas (DPRIT), Rice's Momentous strategic plan and "critical role of public health systems and cross-sector partnerships in advancing access, equity, and workforce readiness."

This event is Tuesday, Oct. 7, from 9-10:15 a.m. at The Partnership Tower. Find more information here.

Oct 7-9 — Tejano Tech Summit Week

LSA Global will present its fourth annual Tejano Tech Summit Week. The week will feature happy hours, networking opportunities and a founders dinner, along with talks from Mariela Salas, co-founder and partner of Alma Fund; Latina in Tech Houston, Blue People, The Magnolia Fund and others.

This event starts on Tuesday, Oct. 7, with most events taking place at the Ion. Find more information here.

Oct. 8 — Digital Health Institute Launch event

Celebrate the launch of the Houston Methodist-Rice Digital Health Institute, which aims to translate “innovative ideas into scalable solutions” with a focus on engineering, digital health and artificial intelligence. The event will feature presentations from Houston Methodist clinical researchers and Rice University faculty, a startup and industry panel and a venture capital investment panel.

This event is Wednesday, Oct. 8, from 8 a.m.-6:30 p.m. at Rice University's Duncan Hall - McMurtry Hall. Find more information here.

Oct. 8 — Founders Live Houston

Founders Live Houston returns this month with its happy hour pitch event. The global competition will select five Texas founders to present 99-second pitches and participate in a four-minute audience Q&A. Voters decide the winner.

This event is Thursday, Oct. 8, from 6-8 p.m. at the Ion. Find more information here.

Oct. 14 — NASA Stories at the Ion

Dina Contella, deputy manager of NASA’s International Space Station Program, will speak at this month's NASA Stories event. Contella will share insights from her career overseeing International Space Station operations, shaping Artemis missions and guiding real-time decisions in Mission Control.

This event is Tuesday, Oct. 14, from 8:30-10:30 a.m. at the Ion. Find more information here.

Oct. 16 — Impact Hub Houston Celebrates 7 Years in Community + Open Project Night

Celebrate seven years of Impact Hub Houston with a hands-on learning experience focused on hosting. The organization will share the tools, practices and hosting frameworks that have helped it build community and support local changemakers since it launched in 2018. Afterward, participate in Impact Hub's signature Open Project Night, where developers can come together to work on solutions for some of Houston’s most pressing issues.

These events are on Thursday, Oct. 16, at the Ion. The anniversary party is from 2-5 p.m. and Open Project Night begins at 5:30 p.m. Find more information here and here.

Oct. 16 — Future of Global Energy presented by Shell

Industry leaders, academia, and government will "explore the forces shaping the future of energy" at the Greater Houston Partnership's fifth annual Future of Global Energy Conference. Andy Karsner, chief strategist for energy and innovation at X, Alphabet’s Moonshot Factory, and a former U.S. Assistant Secretary of Energy, will present the keynote address. Speakers from companies Fervo Energy, S&P Global, Bechtel and others will also be featured on panels and in fireside chats. The event will culminate in Houston's first National Labs Day, where attendees can engage with leaders and technology specialists from Argonne National Laboratory, Brookhaven National Laboratory and other institutions.

This event is Thursday, Oct. 16, from 9 a.m.-3:30 p.m. Find more information here.

Oct. 23 — NASA Tech Talks

Every fourth Thursday of the month, NASA experts, including longtime engineer Montgomery Goforth, present on technology development challenges NASA’s Johnson Space Center and the larger aerospace community are facing and how they can be leveraged by Houston’s innovation community. Stick around after for drinks and networking at Second Draught.

This event is Thursday, Oct. 23, from 6-7 p.m. at the Ion. Find more information here.

Oct. 25 — Ion Family Tech Festival

The Ion and partners will present the first-ever Ion Family Tech Fest this month, where families can participate in hands-on STEAM experiences.

This event is Saturday, Oct. 25, from 10 a.m.-1 p.m. at the Ion. Find more information here.

Abbott highlights Texas AI boom, with Houston projects on the horizon

AI investments are booming in Texas, Gov. Greg Abbott says. And Houston is poised to benefit from this surge.

At a recent Texas Economic Development Corp. gathering in the Dallas-Fort Worth area, Abbott said AI projects on the horizon in the Lone Star State would be bigger than the $500 billion multistate Project Stargate, according to the Dallas Business Journal. So far, Stargate includes three AI data centers in Texas.

Stargate, a new partnership among OpenAI, Oracle, Softbank, and the federal government, is building AI infrastructure around the country. The project’s first data center is in Abilene, and the center’s second phase is underway. Once the second phase is finished, the 875-acre site will host eight buildings totaling about 4 million square feet with a power capacity of 1.2 gigawatts. An additional 600 megawatts of capacity might be added later.

On Sept. 23, Stargate announced the development of another five AI data centers in the U.S., including a new facility in Shackelford County, Texas, near Abilene. That facility is likely a roughly $25 billion, 1.4-gigawatt AI data center that Vantage Data Centers is building on a 1,200-acre site in Shackelford County.

Another will be in Milam County, between Waco and Austin. In conjunction with Stargate, OpenAI plans to occupy the more than $3 billion center, which will be situated on a nearly 600-acre site, the Austin Business Journal reported. OpenAI has teamed up with Softbank-backed SB Energy Global to build the facility.

Abbott said several unannounced AI projects in Texas — namely, data centers — will be larger than Stargate.

“Bottom line is ... when you look at diversification, the hottest thing going on right now is artificial intelligence,” Abbott said.

The Houston area almost certainly stands to attract some of the projects teased by the governor.

In Houston, Taiwanese tech manufacturer Foxconn already is investing $450 million to make AI servers at the 100-acre Fairbanks Logistics Park, which Foxconn recently purchased for a reported $142 million. The park features four industrial buildings totaling one million square feet. It appears Foxconn will manufacture the servers for Apple and Nvidia, both of which have announced they’ll open server factories in Houston.

The Foxconn, Apple, and Nvidia initiatives are high-profile examples of Houston’s ascent in the AI economy. A report released in July by the Brookings Institution identified Houston as one of the country’s 28 “star” hubs for AI.

The Greater Houston Partnership says the Houston area is undergoing an "AI-driven data revolution."

“As Houston rapidly evolves into a hub for AI, cloud computing, and data infrastructure, the city is experiencing a surge in data center investments driven by its unique position at the intersection of energy, technology, and innovation,” the partnership says.

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