In total, Texas saw seven companies reach unicorn status in 2021. Image via Getty Images

Houston welcomed a duo of unicorns in 2021, according to a new report. But these unicorns aren’t those mythical multicolored creatures. Rather, they’re startups valued at $1 billion or more.

As of December 2021, there were more than 900 unicorns around the world, according to market research company CB Insights. Former unicorns include Airbnb, Facebook, and Google.

Joining the unicorn club in 2021 were two startups based in the Houston area:

  • Solugen, currently valued at $1.8 billion, according to the company, which uses corn syrup to produce chemicals.
  • Axiom Space, valued at more than $1 billion as of February. The startup is developing the world’s first space station for commercial purposes.

Houston's other unicorn is fintech company, HighRadius, which reached the $1 billion valuation mark in January of 2020.

The Lone Star State added a few other companies to its unicorn herd. Austin had four companies claim the prestigious status — the most newly minted unicorns in Texas — and now has a total of six unicorns. Dallas added one new unicorn to its economy, making a total of three Dallas area-based unicorns, according to CB Insights.

Here are the other 2021 unicorns in Texas:

  • Austin-based Iodine Software, valued at more than $1 billion as of December. The company’s artificial intelligence offering aims to help healthcare organizations improve their operations.
  • Austin-based ZenBusiness, valued at $1.7 billion as of November. ZenBusiness provides an online platform designed to help entrepreneurs start, run, and grow their small businesses.
  • Cedar Park-based Firefly Aerospace, valued at more than $1 billion as of May. The startup makes rockets and commercial spacecraft.
  • Austin-based The Zebra, valued at more than $1 billion as of April. The Zebra runs an online marketplace that enables consumers to compare insurance quotes.
  • Irving-based Caris Life Sciences is valued at a whopping $7.83 billion as of May. Caris employs artificial intelligence to come up with targeted cancer treatments.

Startups, particularly those in the tech space, increasingly are drawn to Austin. In 2020, CompTIA, a trade group for the tech industry, placed Austin atop its Tech Town USA index. The organization cited Austin as a “favorable alternative” to the San Francisco Bay Area and New York City for startups and other companies.

Joshua Baer, founder and CEO of Austin-based Capital Factory, an accelerator for startups, told Texas Monthly in April that Austin’s status as a business magnet has risen recently.

“Suddenly, we’ve gone from us having to beat our chest and tell everybody else how great Austin and Texas are to everybody showing up here, telling us why it’s so great, and why they moved here,” Baer says.

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This article originally ran on CultureMap.

Last year, HighRadius became Houston's first unicorn — a privately held startup valued at over $1 billion. Now, the fintech company has raised more funds. Image via HighRadius.com

Houston fintech unicorn raises $300M in series C

money moves

Houston's first "unicorn," fintech company HighRadius, is growing up fast.

On March 30, HighRadius, a software-as-a-service (SaaS) business, reported it raised a $300 million Series C round of funding that values the company at $3.1 billion. D1 Capital Partners and Tiger Global Management led the round, with participation from existing investors ICONIQ Growth and Susquehanna Growth Equity. Also contributing to the round were four high-profile entrepreneurs:

  • Frank Slootman, chairman and CEO of Snowflake, a cloud-computing company based in San Mateo, California. Both D1 Capital and Tiger Global invested in Snowflake, which went public in September.
  • Michael Scarpelli, chief financial officer of Snowflake.
  • Tooey Courtemanche, CEO of Carpinteria, California-based Procore Technologies, which produces software for management of construction projects. D1 Capital and Tiger Global are investors in Procore.
  • Howie Liu, co-founder and CEO of Airtable, a cloud-based collaboration platform based in San Francisco. D1 Capital is among Airtable's investors.

In a news release, HighRadius says it will spend the money to fuel product development and expand its global reach.

The $300 million funding round comes nearly 15 months after HighRadius announced it raised $125 million in a Series B round that catapulted it to unicorn status. In the fundraising world, a unicorn refers to a startup valued at $1 billion or more.

HighRadius, based in West Houston, was founded in 2006. It employs more than 1,000 people around the world. The HighRadius website listed 16 job openings as of March 30, with 10 of them in Houston.

HighRadius' AI-powered SaaS offering streamlines accounts-receivable and cash-management processes. For instance, HighRadius' Cash Application software relies on AI to comb through documents like emails and invoices to automatically match incoming payments with customer accounts. The company has over 600 customers, including more than 200 of the Forbes Global 2000.

"Our goal has always been to build a long-lasting business that outlasts all of us," Sashi Narahari, founder and CEO of HighRadius, says in the news release. "I look forward to working with [our] high-quality, long-term investors, who share a common vision of transforming the office of the CFO using a combination of artificial intelligence built on top of connected-finance workspaces and embedded analytics."

In the news release, Daniel Sundheim, founder of New York City-based D1 Capital, says CFOs and their teams have historically relied on antiquated methods to handle accounts receivable and cash management.

"HighRadius is in the opening innings of defining the next big software market for the office of the CFO," John Curtius, a partner at New York City-based Tiger Global, says in the news release. "HighRadius bears all of the signs of being a category-defining business for order-to-cash automation."

HighRadius, a SaaS fintech company and Houston's first unicorn, has expanded in Europe. Getty Images

Houston fintech software startup expands with new German office

unicorn on the move

A growing Houston fintech software-as-a-service startup has announced that it's opening an additional European office following reaching unicorn status earlier this year.

HighRadius, which has a software that automates key treasury management processes, is opening an office in Frankfurt, Germany, the company announced today.The news comes after the company has posted triple-digit year-over-year growth, according to a press release. HighRadius boasts of 25 new customers and a 250 percent increase in bookings over the past year.

"Frankfurt's position in central Germany makes other parts of the country readily accessible, and its status as the financial center of the country opens up a gateway to a deep pool of talent and relevant partnerships," says Jon Keating, HighRadius' Vice President and General Manager, EMEA, in a news release.

The company, which achieved unicorn status with a $1 billion valuation following a $125 million raise in January, opened an office in Amsterdam last year and has had its London office since 2017. According to the release, Germany, Switzerland, and Austria are territories with major market opportunities. The Frankfurt office will house sales, pre-sales, marketing, and consulting employees.

HighRadius's technology is relevant amid the COVID-19 pandemic more than ever as its clients are in need of safe and easy remote technology and automation to prevent delays in accounts receivable. Last month, the SaaS company launched new technology to help with this need: the RadiusOne A/R Suite for mid-sized businesses.

"We launched the RadiusOne B2B Network to facilitate suppliers and A/R teams to digitally connect with their buyers and A/P teams for faster processing of receivables and payments. Currently, the network has millions of active businesses," says Sashi Narahari, founder and CEO of HighRadius, in a news release. "The RadiusOne A/R Suite will provide the essential apps for A/R teams at mid-sized businesses to instantly plug their ERPs and A/R processes into this network and digitally connect with their buyers across the globe."

Houston startups have raised millions so far this year. Getty Images

Here's what 6 Houston startups have raised millions of dollars this year so far

VENTURE ADVENTURES

This year is starting strong when it comes to Houston startups receiving funding. From a $125 million raise from Houston's first unicorn to a local fund gathering up $50 million to deploy in mobility startups, Houston funding news has been pretty exciting.

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.

HighRadius Corp.

Houston-based HighRadius has reported reaching unicorn status following a $125 million raise. Photo via highradius.com

Let's start with the biggest one, shall we? Houston-based HighRadius, an artificial intelligence-powered fintech software company, closed a $125 million raise, which earned it a a new title: Unicorn.

The series B round, which achieved this status for HighRadius, was led by ICONIQ Capital, with participation from existing investors Susquehanna Growth Equity and Citi Ventures, according to a news release from the company.

The company, which offices in West Houston, was founded in 2006 founded in 2006 and employs more than 1,000 people in North America, Europe, and Asia. In November, HighRadius opened an office in Amsterdam. According to the news release, the company will use the funds to further expand its global footprint.

Read the full story here.

Proeza Ventures

Auto Driving Smart Car image

A new venture capital fund based in Houston and Monterrey, Mexico, has raised $50 million to back mobility startups. Hiroshi Watanabe/Getty Images

New fund Proeza Ventures, which is based in Houston and Monterrey, Mexico, reportedly closed its first fund Proeza Ventures I at $50 million. The fund is backed by Grupo Proeza, a Mexican portfolio management company with two global platforms operating in the mobility and agroindustry sectors, according to the fund's website.

With the fund's money, Proenza Ventures will invest in 12 to 15 early or growth-stage startups with solutions or new technology within industrial, smart components, new vehicles, MaaS, and digital data services.

Read the full story here.

Ambyint

oil and gas

Ambyint, which has offices in Calgary and Houston, has secured funding from Houston venture capital firms. Getty Images

Canada-based Ambyint, which has an office in Houston, has closed its $15 million series B funding. Houston-based Cottonwood Venture Partners led the round, and Houston-based Mercury Fund also contributed — as did Ambyint's management team, according to a news release.

The money will be used to grow both its Houston and Calgary, Alberta, offices and expand its suite of software solutions for wells and artificial lift systems. Ambyint's technology pairs artificial intelligence with advanced physics and subject matter expertise to automate processes on across all well types and artificial lift systems.

Read the full story here.

vChain Inc.

Houston-based vChain, creator of CodeNotary, has raised $7 million in a series A financing round. Pexels

Houston-based vChain, which created the CodeNotary Open Source code trust solution, has raised $7 million in a series A funding round. Paris-based Elaia Partners led the investment round, and other contributors include Zug, Switzerland-based Bluwat and Seattle-based Acequia Capital.

The software tool, which is used to ensure code is securely transmitted throughout the entire development to production process, has several platform integrations and works with languages such as JavaScript, Python, Go, Java, and more.

Read the full story here.

Vivante Health

good intestine health intestine Food for bowel Health

Vivante Health, which uses technology and at-home testing to help users treat chronic digestive health issues, has raised $5.8 million. Getty Images

Vivante Health raised $5.8 million in a series A1 round, according to a news release. The round was led by California-based Lifeforce Capital and Athens, Greece-based Big Pi Ventures. Additionally, NFP Ventures, FCA Venture Partners, and Longmont Capital contributed to the round.

With the fresh funds, Vivante will continue to develop its GI health platform, GIThrive. The digital tool has an at-home microbiome test kit for users, as well as a breath tester that monitors food sensitivities. GIThrive also connects users to on-demand support from nutritionists and experts on the GIThrive app.

Read the full story here.

Hitched Inc.

Houston-based Hitched has dug up new investment money from a local private equity firm. Pexels

Hitched Inc. raised $5.5 million in its series A funding led by Houston-based Cottonwood Venture Partners, a growth equity firm that focuses on digital tech solutions in the energy industry.

The company, which was founded in 2018, coordinates the rentals — from hosting and chartering to managing them — all on one centralized platform. Hitched has a catalogue of equipment from generators and cranes to light towers, pumps to forklifts, and the site lists out the cost per day of each piece of machinery.

Read the full story here.

Houston-based HighRadius has reported reaching unicorn status following a $125 million raise. Photo via highradius.com

Houston SaaS company achieves unicorn status following $125 million fundraising round

New unicorn

Following the closing of a $125 million series B investment round, a Houston software-as-a-service company is boosting a new title: Unicorn.

HighRadius, an artificial intelligence-powered fintech software company, has announced its unicorn status, which is defined as being valued at over $1 billion. The series B round, which achieved this status for HighRadius, was led by ICONIQ Capital, with participation from existing investors Susquehanna Growth Equity and Citi Ventures, according to a news release from the company.

"Today marks an important milestone for HighRadius and we're thrilled to have ICONIQ join us in our vision to modernize the Order to Cash space," says Sashi Narahari, founder and CEO of HighRadius, in a news release. "ICONIQ combines patient capital with a long-term vision of investing in category-defining businesses, and the firm has worked with some of the world's most successful tech entrepreneurs. We are building HighRadius into a self-sustaining, long-term category leader, and ICONIQ is a great partner for us in this journey."

The company, which offices in West Houston, was founded in 2006 founded in 2006 and employs more than 1,000 people in North America, Europe, and Asia. In November, HighRadius opened an office in Amsterdam. According to the news release, the company will use the funds to further expand its global footprint.

"We're thrilled to support HighRadius' efforts to bring innovative AI capabilities to the financial side of the enterprise," says Will Griffith, partner at ICONIQ Capital, in a news release. "As we have seen in many of our portfolio companies and past investments, including BlackLine and Coupa, digital transformation is increasingly a CFO priority."

HighRadius' AI-powered software is designed to streamline accounts-receivable and cash-management processes. For instance, HighRadius' Cash Application software relies on AI to comb through documents like emails and invoices to automatically match incoming payments with customers' accounts.

"The HighRadius platform is game-changing for CFOs and finance departments, and the company has earned tremendous customer loyalty by enabling receivables and treasury teams to perform more efficiently and effectively, and by delivering mission-critical ROI," Griffith continues in the release. "HighRadius fits squarely into our commitment to invest in best-in-class, long-term technology businesses driven by incredible teams, and we look forward to working alongside Sashi and the rest of the HighRadius team through their next phase of growth."

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Houston named a market to watch within the life science sector

h-town on the rise

Houston is receiving more kudos for its robust life sciences sector.

Bayou City lands at No. 13 in JLL’s 2022 ranking of the country’s top 15 metro areas for life sciences. JLL says Houston “is poised for further growth” in life sciences.

Here’s how Houston fares in each of the ranking’s three categories:

  • No. 12 for supply of life sciences-oriented commercial real estate
  • No. 14 for access to life sciences talent
  • No. 15 for life sciences grant funding and venture capital

Earlier this year, Houston scored a 13th-place ranking on a list released by JLL competitor CBRE of the country’s top 25 life sciences markets. Meanwhile, commercial real estate platform CommercialCafe recently placed Houston at No. 10 among the top U.S. metros for life sciences.

JLL applauds Houston for strong growth in the amount of life sciences talent along with “an impressive base of research institutions and medical centers.” But it faults Houston for limited VC interest in life sciences startups and a small inventory of lab space.

“Houston is getting a boost [in life sciences] from the growing Texas Medical Center and an influx of venture capital earmarked for life sciences research,” the Greater Houston Partnership recently noted.

Boston appears at No. 1 in this year’s JLL ranking, followed by the San Francisco Bay Area, San Diego, Washington, D.C./Baltimore, and Philadelphia.

Last year’s JLL list included only 10 life sciences markets; Houston wasn’t among them.

“The long-term potential of the sector remains materially unchanged since 2021,” Travis McCready, head of life sciences for JLL’s Americas markets, says in a news release.

“Innovation is happening at a more rapid pace than ever before, the fruits of research into cell and gene therapy are just now being harvested, and revenue growth has taken off in the past five years as the sector becomes larger, an atypical growth track.”

Texas startup developing lab-grown brisket earns national spotlight

futuristic food

Brisket, a barbecue staple in Texas, is as synonymous with the Lone Star State as the Alamo and oil wells. A Texas company recently recognized as the state’s most innovative startup wants to elevate this barbecue staple to a new high-tech level.

BioBQ is working on technology to bring its lab-created, cell-cultured brisket to the market in 2023. The Austin-based company made the Bloomberg news service’s new list of the 50 startups to watch in the U.S. — one startup for each state.

The co-founders of BioBQ are Austin native Katie Kam, a vegan with five college degrees (four from the University of Texas and one from Texas A&M University), and Janet Zoldan, a “hardcore carnivore” who’s a professor of biomedical engineering at UT. Kam is the CEO, and Zoldan is the chief science officer.

This kind of meat is genuine animal meat that’s produced by cultivating animal cells in a lab, according to the Good Food Institute.

“This production method eliminates the need to raise and farm animals for food. Cultivated meat is made of the same cell types arranged in the same or similar structure as animal tissues, thus replicating the sensory and nutritional profiles of conventional meat,” the institute says.

It turns that before becoming a vegan, Kam worked at the now-closed BB’s Smokehouse in Northwest Austin as a high school student. She’d chow down on sauce-slathered brisket and banana pudding during on-the-job breaks.

“But then over time, as I learned more about factory farming and could no longer make the distinction between my dogs and cats I loved and the animals that were on my plate, I decided to become vegan,” Kam writes on the BioBQ website.

Hearing about the 2013 rollout of the first cell-cultured hamburger set Kam off on her path toward starting BioBQ in 2018. Zoldan joined the startup as co-founder the following year.

Now, BioBQ aims to be the first company in the world to sell brisket and other barbecue meats, such as jerky, made from cultured cells rather than slaughtered animals.

According to BioBQ’s profile on the Crunchbase website, the startup relies on proprietary technology to efficiently produce meat products in weeks rather than the year or more it takes to raise and slaughter cattle. This process “allows control of meat content and taste, reduces environmental impacts of meat production, and takes BBQ to the next tasty, sustainable level consumers want,” the profile says.

In 2020, Texas Monthly writer Daniel Vaughn questioned BioBQ’s premise.

He wrote that “there is something about the idea of lab-grown brisket that keeps bothering me, and it has nothing to do with science fiction. If you could design any cut of beef from scratch, why choose one that’s so difficult to make delicious? Why not a whole steer’s worth of ribeyes?”

Kam offered a very entrepreneur-like response.

“I’m from Austin, and I know that brisket’s kind of a big deal here,” Kam told Vaughn. “It seemed like a great, challenging meat to demonstrate this technology working.”

Meanwhile, Zoldan came up with a more marketing-slanted reaction to Vaughn’s bewilderment.

“I don’t think cell-based meats will take over the market, but I think there’s a place for it on the market,” Zoldan she told Vaughn.

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This article originally ran on CultureMapCultureMap.

Why the banking biz is ripe for innovation, according to this Houston founder

guest column

After our doctor and our child’s school, a bank is an institution with which we share the relationship that is most personal and vital to our well-being in this world. Some might put a good vet third, but other than that, no private entity is more responsible for escorting us to a healthier and happier outcome over the course of our lives.

The bank vault is a traditional symbol of security and prosperity, and not just for our pennies. We safeguard possessions in banks that are so important we don’t even trust keeping them in our own houses. Wills, birth certificates, and the precious family heirlooms of countless families are held in safety deposit boxes behind those giant vault doors, and banks have been the traditional guardians not only of our wealth but our identity and future as well.

The importance of relationship banking

Faith and confidence in our banks is so fundamental to the customer relationship that it has evolved into a unique and otherwise unthinkable arrangement for any good capitalist in a healthy marketplace: banks pay us to be their customers. Imagine a doctor offering you $20 for trusting them to give you a colonoscopy and you’re on the road to understanding the sacrosanct union between bank and customer.

In fact, this trust is so deeply anchored in the American psyche that a new generation of digital banking companies has sprung up on the idea that it doesn’t need to exist in physical reality. The fintech industry has exploded in the last decade, and today, over 75 percent of Americans are engaged in online banking in one form or another. Every single one of those 200 million customers are taking for granted that they will be well served, despite having no personal guidance through any of the financial products and services that these online entities provide.

Benefits of fostering relationships with banking customers

In the late 90s and early 2000s brick-and-mortar banks realized that greater personalized care for their customers was going to be a critical point of competition. The in-person experience is an opportunity to offer advice and incentives for a wide range of products and financial management assistance. It’s rooted in an incredibly simple axiom that is taking hold in every aspect of modern society: everyone benefits if we all get along better.

There’s a lot of statistical traction behind this theory. Customers who report they are “financially healthy” are down 20 percent over the last year, which means people are looking for guidance. 73 percent of customers who visit a local bank branch report having a personal relationship with their bank, while only 53 percent say the same of their digital institution. Most importantly, although many digital banks are offering similar products and services to their real-world counterparts, customer engagement remains very low.

It starts with your products

The truth is, today’s bank customers still want that same personal relationship their great-grandparents had before they engage with deeper financial products and services. They believe it makes them more financially successful, and confirm that human connections and economic prosperity go hand-in-hand.

Products that are Challenging for Digital Markets

Residential mortgages, for example, are an $18 trillion dollar industry that deals in durations longer than most digital banking services have even existed. The perception of continuity and stability is highly valued by clients in the mortgage relationship. Today, most customers feel that only comes with a handshake and a smile from an employee who has to fit in a meeting before they pick their kids up from school.

While digital firms have proven themselves capable of offering savings and checking services, most have fallen flat on the mortgage front because of the premium on personal relationships. Loyalty is the reward for time, service, and shared experience, and financial institutions that cannot provide that package for their customers are never going to access a deeper and more meaningful portfolio of services.

Finding Well-suited Products for Digital Finance

The message for the digital finance world is as clear as it is pressing. The future of the industry will revolve around more personalized experiences, interactions, and long-term products. At the same time, the American public has embraced digital banking, and we are looking at a new generation of bank users who may never walk through a branch door in their life.

In order to compete, the digital industry will need to identify and develop a range of long-term products and services that make sense for customers in today’s environment. Mortgages may be out of the question, but the safety deposit box holds great promise for industry in-roads. Optimal services for deeper, more personal customer engagement include things like:

  • Legacy and estate planning
  • Will preparation and safeguarding
  • Preservation of cherished photos and videos
  • Important personal data storage


Because these things are product-based, they are well suited to the digital ecosystem. The cryptocurrency industry and modern online banking have solidified consumer confidence in the digital bank vault, and there is a great deal of faith in the perpetuity of electronic documents and storage.

The IRS estimates that upwards of 90 percent of Americans are E-filing their taxes and that only comes with a widespread belief that our highly sensitive information can and will be preserved and protected by digital architecture.

Secure your future

Digital banking firms that want to thrive in the upcoming decades are going to need to innovate in long-term financial planning products that bring their customers into a closer, more personal relationship with them.

The finance world will continue to change and develop, but the hopes, fears, and dreams of people trying to build and secure a better future for themselves and their children will remain the same for tomorrow’s customers as they were for their parents and grandparents.

It is up to the digital finance industry to adapt and develop to provide the customers of today—and tomorrow— with these invaluable services and securities.

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Emily Cisek is the founder and CEO of The Postage, a tech-enabled, easy-to-use estate planning tool.