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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Houston quantum energy chip startup emerges from stealth with $12M round

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Houston-based Casimir has emerged from stealth with a $12 million seed round to commercialize its quantum energy chip.

The round was led by Austin-based Scout Ventures. Lavrock Ventures, Cottonwood Technology, Capital Factory, American Deep Tech, and Tim Draper of Draper Associates also participated in the round. The oversubscribed round exceeded the company’s original $8 million target, according to a news release.

Casimir’s semiconductor chips can generate power from quantum vacuum fields without the need for batteries or charging. The company plans to commercialize its first-generation MicroSparc chip by 2028.

The MicroSparc chip measures 5 millimeters by 5 millimeters and is designed to produce 1.5 volts at 25 microamps, comparable to a small rechargeable battery, without degradation and no replacement cycle.

“Casimir represents exactly the kind of breakthrough dual-use technology Scout Ventures was built to back,” Brad Harrison, founder and managing partner at Scout Ventures, said in the release. “This is based on 100 years of science and we’re finally approaching a commercial product … We’re proud to lead this round and support Casimir’s journey from applied science to deployed technology.”

Casimir says it aims to scale its technology across the ”full power spectrum,” including large-scale energy systems that can power homes, commercial infrastructures and electric vehicles.

Casimir's scientific work has been supported by DARPA-funded nanofabrication research and its technology was incubated at the Limitless Space Institute (LSI). LSI is a nonprofit that works to innovate interstellar travel and was founded by Kam Ghaffarian. Technology investor and serial entrepreneur Ghaffarian has been behind companies like X-energy, Intuitive Machines, Axiom Space and Quantum Space.

Harold “Sonny” White, founder and CEO of Casimir, believes the technology can power devices for years without replacements.

“Millions of devices will operate for years without a battery ever needing to be replaced or recharged because we have engineered a customized Casimir cavity into hardware capable of producing persistent electrical power,” White added in the release. “I spent nearly two decades at NASA studying how we power humanity’s future. That work led me to the Casimir effect and the quantum vacuum, where new tools have allowed us to build on a century of scientific knowledge and bring abundant power to the world.”

Houston leads the way in innovative brain research and more news to know

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Editor's note: The top Houston innovation news for the first half of May includes an initial round of brain research grants from Rice and FDA approval for clinical trial of a Houston startup's brain implant. Below are the five most-read InnovationMap stories published May 1-14, 2026:

1. Rice Brain Institute awards seed grants for dementia, Alzheimer’s research

The recently established Rice Brain Institute awarded 12 seed grants last month to support research on dementia, Alzheimer’s disease, Parkinson’s disease and other neurological disorders. The grants are part of the Rice DPRIT Seed Grant Program, which aims to help faculty members generate preliminary data, test and teams that would be supported under the Dementia Prevention and Research Institute of Texas. Continue reading.

2. Houston startup’s brain implant for depression advances to clinical trial

Houston-based Motif Neurotech has received FDA approval to move forward with its first clinical trial for its innovative way to fight treatment-resistant depression and other mental health disorders. The company has developed a brain-computer interface technology based on research from Rice University. The blueberry-sized, wirelessly powered implantable device known as the Digitally-programmable Over-brain Therapeutic (DOT) stimulator delivers electrical stimulation to brain circuits linked to depression. The DOT stimulator sits in the skull above the dura without touching the brain and is considered an alternative to transcranial magnetic stimulation, which requires multiple treatment sessions and can cause headaches. Continue reading.

3. Houston legacy planning platform secures $2.5M investment, adds to board

Houston-based Paige, a comprehensive life planning and succession software company, has secured a $2.5 million investment to expand the AI-driven tools on its platform. The funding comes from Alabama-based 22nd State Banking Company, according to a news release. Paige says it will use the funding to expand automation, AI-driven onboarding and self-service tools, as well as add to its sales and customer success teams. Continue reading.

4. 7+ can't-miss Houston business and innovation events in May

Houston is living up to its nicknames as Space City and the Energy Capital of the World this month with a lineup of insightful talks, pitch days and industry conferences. Plus, there are opportunities to network over crawfish, learn about brain health and more. Continue reading.

5. Houston rises in 2026 ranking of best U.S. cities to start a business

Houston has reaffirmed its commitment to a business-friendly environment and now ranks as the 26th best large U.S. city for starting a business in 2026. The city jumped up eight places after ranking 34th last year. Continue reading.

Houston-based Fervo Energy bumps up IPO target to $1.82 billion

IPO update

Houston-based geothermal power company Fervo Energy is now eyeing an IPO that would raise $1.75 billion to $1.82 billion, up from the previous target of $1.33 billion.

In paperwork filed Monday, May 11 with the U.S. Securities and Exchange Commission, Fervo says it plans to sell 70 million shares of Class A common stock at $25 to $26 per share.

In addition, Fervo expects to grant underwriters 30-day options to buy up to 8.33 million additional shares of Class A common stock. This could raise nearly $200 million.

When it announced the IPO on May 4, Fervo aimed to sell 55.56 million shares at $21 to $24 per share, which would have raised $1.17 billion to $1.33 billion. The initial valuation target was $6.5 billion.

A date for the IPO hasn’t been scheduled. Fervo’s stock will be listed on Nasdaq under the ticker symbol FRVO.

Fervo, founded in 2017, has attracted about $1.5 billion in funding from investors such as Bill Gates-founded Breakthrough Energy Ventures, Google, Mitsubishi Heavy Industries, Devon Energy (which is moving its headquarters to Houston), Tesla co-founder JB Straubel, CalSTRS, Liberty Mutual Investments, AllianceBernstein, JPMorgan, Bank of America and Sumitomo Mitsui Trust Bank.

Fervo’s marquee project is Cape Station in Beaver County, Utah, the world’s largest EGS (enhanced geothermal system) project. The first phase will deliver 100 megawatts of baseload clean power, with the second phase adding another 400 megawatts. The site can accommodate 2 gigawatts of geothermal energy. Fervo holds more than 595,000 leased acres for potential expansion.

Cape Station has secured power purchase agreements for the entire 500-megawatt capacity. Customers include Houston-based Shell Energy North America and Southern California Edison.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

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