These 9 Houston startups start 2024 with fresh funding

q4 2023 vc activity

Nine Houston startups ended 2023 with a fundraise. Photo via Getty Images

Houston startups ended 2023 with a flurry of funding news — from several seeds and series As to series C rounds and extensions.

Here are nine Houston startups that secured funding in the fourth quarter of last year, according to reporting by InnovationMap. For further reading, here were 2023's top rounds raised.

Amperon Holdings Inc. closed its $20 million series B in October

It's payday for a startup that's improving analytics for its energy customers. Photo via Getty Images

A Houston startup has raised $20 million in its latest round of funding in order to accelerate its energy analytics and grid decarbonization technology.

Amperon Holdings Inc. announced today that it closed its series B round at $20 million. Energize Capital led the round and the D. E. Shaw group, Veriten, and HSBC Asset Management, an existing investor, joined in on the round. Additionally, two of Amperon's early customers, Ørsted and another strategic utility partner, participated in the series B, which brought Amperon’s total funding to $30 million.

“The energy transition is creating unprecedented market volatility, and Amperon is uniquely positioned to help market participants better navigate the transitioning grid – both in the U.S. and as we expand globally,” Sean Kelly, CEO and co-founder of Amperon, says in the release. Read more.

Velostics raised nearly $2M additional seed funding in October

Velostics has raised additional funding to grow its logistics software. Photo via velostics.com

A Houston company that's providing innovative unified scheduling software for the logistics industries has raised additional seed funding.

Houston-based Velostics Inc. raised $1.95 million, the company announced this week. The additional seed round follows a $2.5 million round announced in 2021. The Velostics platform optimizes scheduling for inbound and outbound trucks, saving companies money across the supply chain and resulting in fewer emissions from idling trucks.

“Scheduling is a major headache for all parties focused on reducing cost and delivering on high customer expectations — our cloud based solution is designed to go live in one day with no apps required,” Gaurav Khandelwal, founder and CEO of Velostics, says in a news release. Read more.

Konect.ai secured $5.5M seed funding in October

Konect.ai is using AI and natural language processing within the automotive retail industry. Image via Getty Images

A Houston startup that's using artificial intelligence and natural language processing to disrupt the retail automotive industry has raised seed funding.

Konect.ai announced a $5.5 million seed investment from Austin-based Silverton Partners. The funding will support the company's development of its software, which hopes to advance communications between auto dealerships and auto tech companies and customers.

"This investment from Silverton Partners is a strong validation of our vision and the hard work of our talented team. With this support, we are poised to accelerate our growth and continue to innovate, bringing the most advanced conversational AI products to the automotive retail industry," Cole Kutschinski, president and CEO of Konect.ai, says in a news release. Read more.

Graylog closed $9M in a series C extension round and $30M in financing in October

Graylog, a Houston SaaS company, has new fuel to scale and develop its product. Photo via Getty Images

A Houston software-as-a-service company has secured $39 million in financing and announced its latest upgrade to its platform.

Graylog, which has created an innovative platform for cybersecurity and IT operations, raised equity funding with participation from new investor Silver Lake Waterman and existing investors Piper Sandler Merchant Banking and Harbert Growth Partners leading the round.

“The growth we are seeing globally is a response to our team’s focus on innovation, a superior user experience, low total cost of ownership, and strong execution from our Go-To-Market and Customer Success teams,” Andy Grolnick, CEO of Graylog, says in a news release. “We expect this momentum to continue as Graylog expands its reach and raises its profile in the security market.” Read more.

RepeatMD raised $50M series A in November

Fresh off a win at the Houston Innovation Awards, RepeatMD has raised funding. Photo by Emily Jaschke/InnovationMap

Just nine months after its seed round, a Houston startup with a software platform for the aesthetic and wellness industry has secured $40 million in venture capital and $10 million in debt facility.

RepeatMD, a SaaS platform, announced today that it's secured $50 million, which includes a $10 million debt facility from Silicon Valley Bank. The round was co-led by Centana Growth Partners and Full In Partners with participation from PROOF and Mercury Fund, which also contributed to the seed round earlier this year.

“Even though the aesthetics and wellness industry has continued to innovate a growing range of life-changing treatments, practices continue to face challenges selling treatments and services that are new and unfamiliar to patients,” Phil Sitter, CEO of RepeatMD, says in the release. Read more.

Kahuna Workforce Solutions secures $21M series B in November

Kahuna Workforce Solutions, which provides HR software solutions, announced it has closed a $21 million series B. Photo via Getty Images

A Houston company with a software platform to enhance skills management operations has raised its series B.

Kahuna Workforce Solutions announced it has closed a $21 million series B funding round led by Baltimore-based Resolve Growth Partners. Kahuna's platform provides its users — which come the from health care, energy, field service, and manufacturing industries — with effective assessment, training and development, and staffing and deployment initiatives.

“We are thrilled to work with Resolve as Kahuna begins the next growth phase. Their expertise in enterprise software, and commitment to innovation and continuous improvement fully aligns with our mission, vision, and goals for Kahuna,” Jai Shah, CEO of Kahuna Workforce Solutions, says in a news release. Read more.

Allganize closed $20 million series B in November

Allganize recently closed a $20 million series B round of funding, bringing its total amount raised to $35 million. Graphic via allganize.ai

A Houston tech startup with an artificial intelligence technology has announced it's raised two rounds of funding as it plans to continue developing its product and IPO in Japan.

Allganize recently closed a $20 million series B round of funding, bringing its total amount raised to $35 million, according to the company. Allganize developed Alli, an all-in-one platform for enabling large language models, that's used by over 200 enterprise and public companies globally, including Sumitomo Mitsui Banking Corporation, Nomura Securities, Hitachi, Fujitsu, and KB Securities.

"This investment accelerates our journey towards global expansion and achieving a milestone of listing on the Japanese stock exchange by 2025," Changsu Lee, CEO of Allganize, says in a news release. Read more.

EndoQuest Robotics Inc. announced $42 million series C in December

Houston-based EndoQuest has closed a $42 million round. Photo via Getty Images

A Houston medical device company that's tapping into robotics technology for the operating room has just announced a major chunk of fresh funding.

EndoQuest Robotics Inc. announced that it has closed a $42 million series C to advance its robot technology that's targeting endoluminal and gastrointestinal minimally invasive procedures. Returning investors, CE Ventures Limited and McNair Interests, and new investor, Puma Venture Capital, led the round of funding.

"Our investors share our vision of leveraging robotics to redefine the possibilities in minimally invasive procedures," Kurt Azarbarzin, CEO of EndoQuest Robotics, says in a press release. Read more.

Digital Wildcatters announced $2.5M seed in December

Digital Wildcatters just raised $2.5 million in funding. Image courtesy

With $2.5 million in fresh funding, Digital Wildcatters is on its way to keep empowering the evolving energy workforce.

Digital Wildcatters, a Houston company that's providing a community for the next generation of energy professionals, has closed its seed plus funding round at $2.5 million. The round by energy industry veteran Chuck Yates, who also hosts his podcast "Chuck Yates Needs a Job" on the Digital Wildcatters' podcast network.

"Our industry's survival depends on recruiting the next generation of energy workers. We must adapt to their digital, content-rich world, as we currently lag behind, like a VHS tape in a Netflix world. Digital Wildcatters is our path to modernization," Yates says. Read more.

From Your Site Articles

Velostics has raised additional funding to grow its logistics software. Photo via velostics.com

Houston startup raises nearly $2M to expand logistics SaaS platform

seed funding

A Houston company that's providing innovative unified scheduling software for the logistics industries has raised additional seed funding.

Houston-based Starboard Star Venture Capital led the round, and Flyover Capital and Small Ventures USA, both previous investors in Velostics, contributed too. Additionally, Mexico-based Capital Mazapil joined in as a new investor. The family office has close ties to a leading CPG company with a global footprint of manufacturing plants and distribution warehouses, per the news release.

“At a time where all costs are increasing, Velostics has a proven solution that brings real cost savings and more importantly, increased capacity to manufacturing facilities, warehouses and fuel terminals," Keith Molzer, founding partner at Flyover Capital, says in the news release.

Khandewal founded Velostics in 2019 after seeing the business opportunity through ChaiOne, a Houston software company he's run since 2009. In an episode of the Houston Innovators Podcast, he shared the story of Velostics and why he thinks the city has a great opportunity to be a leader in logistics technology.

Three Houston startup founders took the stage to talk product/market fit, customer acquisition, funding, and the rest of the startup journey at a panel at SXSW. Photo courtesy of the GHP

Houston founders demystify startup journey on SXSW panel

Houston innovators podcast episode 177

Editor's note: On Monday at Houston House, a SXSW activation put on by the Greater Houston Partnership, I moderated a panel called “Demystifying the Startup Journey.” Panelists included three Houston founders: Ted Gutierrez, co-founder and CEO of SecurityGate.io, Simone May, co-founder and CTO of Clutch, and Gaurav Khandelwal, founder and CEO of Velostics. The three entrepreneurs discussed their journeys and the challenges they face — from product/market fit and hiring to fundraising and customer acquisition. Listen to the full conversation on this week’s episode of the Houston Innovators Podcast below. Thank you to SXSW and GHP for the recording.

This week's roundup of Houston innovators includes Gaurav Khandelwal of Velostics, Samantha Hepler of SeekerPitch, and Zain Shauk of Dream Harvest. Courtesy photos

3 Houston innovators to know this week

WHO'S WHO

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from logistics tech to sustainability — recently making headlines in Houston innovation.

Gaurav Khandelwal, CEO and founder of Velostics

Velostics has fresh funding to support growing its logistics software solution. Photo courtesy of Velostics

The logistics industry has a lot of room for improved optimization — and that's exactly what Gaurav Khandelwal set out to do when he founded Velostics. The company just raised its $2.5 million seed round that will go toward recruiting top talent for Velostics's team, particularly in its account management, inside sales, and marketing departments, as well as continuing to develop the AI-driven product, which has an impact for both its users and the environment.

“Idling trucks waiting outside facilities emit over 42 million tons of CO2 annually — eight times the US national average. By orchestrating the movement of trucks in and out of facilities, not only do we provide tremendous supply chain benefits, we also help the environment," Khandelwal says in the release. "We’re excited to partner with our customers and our investors to solve global congestion.” Click here to read more.

Samantha Hepler, CEO and founder of SeekerPitch

Samantha Hepler had the idea for SeekerPitch based on her own ill-fated job hunt experience. Photo courtesy of SeekerPitch

When Houstonian Samantha Hepler was trying to find a job, she couldn't even get in the door. Due to algorithms and antiquated hiring processes, she was overlooked.

"I knew if I could just get through the door, a company would see the value in me," Hepler tells InnovationMap. "I wasn't being seen, and I wasn't being heard. I didn't know a way to do that."

This experience gave her the idea for SeekerPitch, a platform that allows job seekers to create an account and tell their story — not just their job history. The platform prioritizes video content and quick interviews so that potential hires can get face-to-face with hiring managers. Click here to read more.

Zain Shauk, co-founder and CEO of Dream Harvest

Dream Harvest picked up funding to open a 100,000-square-foot indoor farming facility in Houston. Photo courtesy of Dream Harvest

Houston-based Dream Harvest Farming Co., which specializes in sustainably growing produce, has landed a $50 million investment from Orion Energy Partners to open a 100,000-square-foot indoor farming facility in Houston. The facility will enable the company to dramatically ramp up its operations.

Zain Shauk, co-founder and CEO of Dream Harvest, says his company’s method for growing lettuce, baby greens, kale, mustards, herbs, collards, and cabbage helps cut down on food waste.

“Demand for our produce has far outpaced supply, an encouraging validation of our approach as well as positive news for our planet, which is facing the rising problem of food and resource waste,” Shauk says. “While we have the yields today to support our business, we are pleased to partner with Orion on this financing, which will enable us to greatly expand our production and increase access to our produce for many more consumers.” Click here to read more.

Velostics has fresh funding to support growing its logistics software solution. Photo courtesy of Velostics

Exclusive: Houston logistics SaaS startup raises $2.5M seed round

money moves

A Houston company that's providing software solutions for middle-mile logistics challenges has raised fresh funding.

Velostics Inc., which has an enterprise software-as-a-service model that specializes in automating inbound logistics at industrial facilities — like terminals and warehouses — announced it has raised $2.5 million. The seed round was led by Kansas-based Flyover Capital with participation from Small Ventures USA, Cultivation Capital, Starboard Star, Congress Avenue Ventures and BioUrja Ventures.

Founded by Gaurav Khandewal, Velostics targets the $37 billion inbound logistics management market, a so-called "log jam" for businesses that the company's software strives to make flow a lot more optimally.

“Flyover is incredibly excited to support the Velostics team in their mission to transform inbound logistics,” says Keith Molzer, managing partner at Flyover Capital. “This segment of the supply chain is ripe for better technology to address challenges of congestion, driver labor shortages, and the growing demands of ecommerce. Gaurav and team are an exceptional group of entrepreneurs ready to drive efficiency and a better customer experience at industrial facilities.”

The fresh funding will go toward recruiting top talent for Velostics's team, particularly in its account management, inside sales, and marketing departments, as well as continuing to develop the AI-driven product, which has an impact for both its users and the environment.

“Idling trucks waiting outside facilities emit over 42 million tons of CO2 annually — eight times the US national average. By orchestrating the movement of trucks in and out of facilities, not only do we provide tremendous supply chain benefits, we also help the environment," Khandewal says in the release. "We’re excited to partner with our customers and our investors to solve global congestion.”

Flyover Capital was founded in 2014 and has a keen interest in the Houston market, Dan Kerr, principal at the firm, previously told InnovationMap.

Houston is "one of the cities among those that fall in our region where we plan to spend a significant amount of time," Kerr said in May of last year. "We cover a lot of ground, but there are certain cities were we try to get there quarterly. Houston is definitely one of those places."

In September, Khandewal joined the Houston Innovators Podcast and discussed how he has been a champion of Houston innovation since he started ChaiOne in 2009. He shared how he thinks the city has a great opportunity to be a leader in logistics technology.

"I think that there are some trends in Houston that I'm seeing as a founder, and one of them is logistics," Khandewal says on the show.

Gaurav Khandelwal, CEO and founder of ChaiOne and Velostics Gaurav Khandelwal is the CEO and founder of Velostics. Photo courtesy

This week's roundup of Houston innovators includes former city council member Amanda Edwards, Gaurav Khandelwal of Velostics, and Anshumali Shrivastava of ThirdAI. Courtesy photos

3 Houston innovators to know this week

who's who

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from logistics tech to computer science — recently making headlines in Houston innovation.

Amanda Edwards, former Houston City Council Member

Amanda Edwards worked with local female leaders to launch BEAMW. Photo via LinkedIn

A couple years ago, Houston City Council Member Amanda K. Edwards, along with entrepreneurs Carolyn Rodz and Courtney Johnson Rose, formed a task force to provide Mayor Sylvester Turner with recommendations about increasing increase access to capital for minority- and women-owned business enterprises and assisting these business owners in scaling up their businesses. The task force created the Houston Small Business Community Report, which shed light on the disparities in access to resources for women and BIPOC-founders.

In response to this report, Edwards and a cohort of female leaders have launched the Business Ecosystem Alliance for Minorities and Women, or BEAMW, to address these disparities these businesses face when seeking capital and attempting to scale their businesses.

"It is not enough to state that Houston is the most diverse city in the country; we must be the city where the challenges that diverse communities face are solved," Edwards says in a release. Click here to read more.

Gaurav Khandelwal, CEO and founder of ChaiOne and Velostics

Serial entrepreneur says he sees logistics innovation as a "massive opportunity" for Houston. Photo courtesy

Gaurav Khandelwal has been an advocate for growing Houston's innovation ecosystem since he started his company ChaiOne — an industrial software provider — in 2008. Now, with his new company, Velostics, he is passionate about making Houston a hub for logistics innovation too.

"I think that there are some trends in Houston that I'm seeing as a founder, and one of them is logistics," Khandewal says on this week's episode of the Houston Innovators Podcast.

"If you look at Chicago — it's had some crazy amount of logistics unicorns that have popped up over the past few years, and they aren't slowing down," Khandewal says on the show. "Houston, I would argue, is better positioned, because we have this massive port. I think logistics is a massive opportunity for Houston." Click here to read more and listen to the episode.

Anshumali Shrivastava, CEO and co-founder of ThirdAI

Anshumali Shrivastava is also an associate professor of computer science at Rice University. Photo via rice.edu

A seed-stage company is changing the game for data science and artificial intelligence, and the technology was developed right on the Rice University campus.

ThirdAI, founded by Anshumali Shrivastava in April, raised $6 million in a seed funding round from three California-based VCs — Neotribe Ventures and Cervin Ventures, which co-led the round with support from Firebolt Ventures.

"We are democratizing artificial intelligence through software innovations," says Shrivastava in a news release from Rice. "Our innovation would not only benefit current AI training by shifting to lower-cost CPUs, but it should also allow the 'unlocking' of AI training workloads on GPUs that were not previously feasible." Click here to read more.

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AI-powered Houston startup helps restaurants boost customer loyalty

order up

It’s no secret that restaurant trends move fast and margins run thin. And with the proliferation of platforms like Uber Eats, DoorDash and Easy Cater, customer loyalty is fleeting.

The solution?

How about an AI-powered restaurant technology platform that helps restaurant brands cut back on third-party platforms in favor of driving direct discovery, conversion and loyalty?

Enter Saivory. Founded in 2025 by Stephen Klein, a software investor, and Fajita Pete’s restaurateur Hugh Guill, the Houston-based startup aims to help eateries better understand and activate guest behavior across digital channels as AI increasingly reshapes how consumers discover and engage with brands.

In less than a year, Saivory has partnered with Shipley Do-Nuts and Fajita Pete’s to bring AI-powered ordering to life.

“With Saivory, we were able to answer the question of, ‘what if the ordering process could be reduced to a single step, where customers simply tell us what they want and AI takes care of the rest?’” Klein tells InnovationMap.

The Houston-based startup made such an immediate impact that it was selected as a semi-finalist during Start-Up Alley at MURTEC , the restaurant industry’s leading technology conference, which took place last month in Las Vegas.

“Houston is a great hub for technology innovation, and we were proud to represent the city at MURTEC this year,” says Klein. “We didn’t win, but we were able to talk about some of the work that we have existing in the market for clients right now and a little bit about what we’re working on in the future.”

In the current restaurant technology ecosystem, the third-party aggregators own the customer attention that brings volume to restaurants, while also taking big commissions and having control over the end relationships with the customer.

That can often make it difficult for restaurants to grow loyalty and repeat business from customers. Saivory aims to level the playing field for restaurants, helping them stay more connected to their customers.

Take Saivory’s recent application with Shipley’s Do-Nuts, for example.

Saivory powered the donut giant’s AI-ordering and launched Shipley's website and mobile app to support its over 300 locations in Texas alone.

Shipley’s new AI-powered assistant helps users create personalized order recommendations based on individual or group preferences. And unlike standard chatbox features, the new assistant makes custom recommendations based on multiple customer factors, including budgetary habits, individual flavor preferences and order size. It can also be used for large catering orders.

“They're seeing more traffic to the site and they're seeing when customers use our AI-enabled flows,” Klein says. “And they're seeing higher basket sizes, bigger tickets, by about 25 percent.”

Klein says Saivory’s technology helps strengthen first-party digital relationships, reduce friction and cart abandonment, improve average order value, and delivers personalized, efficient experiences.

“It’s a win-win: the customer gets the right order quickly, while the restaurant gets a bigger margin,” he adds.

Additionally, the technology makes it easier for restaurants to share rewards, loyalty and discounts, ultimately growing more direct traffic and making restaurants less reliant on third-party delivery apps.

Next up for Saivory is adding new components to its platform to enhance the relationship between restaurant and customer, as well as technology around making it easier for restaurants to get found on Google.

“A lot of people are still searching for the best donuts near me,” Klein says. “Or what’s the best Mexican food near me? Customers will increasingly move to AI, where they’re going to ask where they should eat dinner and expect it to just order them dinner. They will eventually expect the technology to know how to do that. So that’s what we’re driving at.”

Houston leads U.S. in population growth for 2025, Census says

Boomtown

Imagine that the Houston metro area swallowed a city the size of Pearland in just one year. That’s essentially what happened from 2024 to 2025, with the Houston metro ranking first in the U.S. for population growth based on the number of people.

New estimates from the U.S. Census Bureau show the 10-county Houston metro added 126,720 residents from July 1, 2024, to July 1, 2025. That’s just shy of Pearland’s roughly 133,000-resident tally.

To calculate population, the Census Bureau counts births, deaths, new residents, and moved-away residents.

Region’s population approaches 8 million

On July 1, 2025, the Houston metro’s population hovered slightly above 7.9 million, up 1.6 percent from the same time in 2024. In the very near future, the region’s population should break the eight million mark.

This follows massive growth in the past 20 years. From 2005 to 2025, the region’s population soared by 39 percent. By comparison, the growth rate from 2021 to 2025 sat at nine percent.

A forecast from the Texas Demographics Center indicates that under a middle-of-the-road scenario, the Houston metro’s population will reach nearly 8.5 million in mid-2030 and more than 9.5 million in mid-2040.

Dan Potter, director of Rice University’s Houston Population Research Center, attributes much of the region’s population surge to people moving to the area from outside the U.S. In Harris County, this means a combination of military personnel returning home, people living or working overseas coming back to the U.S., and immigrants relocating to the U.S., he tells CultureMap.

But Harris County fell short from 2024 to 2025 when it comes to people moving here from elsewhere in the U.S., according to Potter. Counties surrounding Harris County benefited from that trend, drawing new residents who preferred to settle in the suburbs.

“The incredible pull and attraction of the Houston area is its economy, its people, and its affordability, and the significant growth that was observed in 2024 and again in 2025 speaks to the magnetism of the region,” Potter says. “That pull to Houston is too strong to be turned off overnight.”

Cooling economy and immigration shifts slow down growth

Whether looking at urban or suburban places, population growth in the Houston area slowed in 2025 and appears to be slowing even more this year, Potter says.

“A cooling economy and changes to immigration policy are a one-two combination that could knock out the region’s population growth,” says Potter, citing the region’s addition of a less-than-expected 14,800 jobs in 2025 as an example.

Weaker population growth may not be felt evenly across the metro area, according to Potter.

A continuing influx of people from Houston to outlying counties such as Brazoria, Fort Bend, Liberty, Montgomery, and Waller could curb growth in Harris County, Potter said. Why? If the number of people arriving from other other countries flattens or even drops, then there could be “doughnut-style population growth for the next few years, where Harris County and Houston see declines while the suburban counties see an increase.”

Harris County represents 40 percent of region’s population lift

Houston-anchored Harris County accounted for almost 40 percent of the region’s population spike from 2024 to 2025. In one year, Harris County grew by 48,695 residents, or 1 percent, pushing its population past five million. That increase put Harris County in first place for numeric growth (rather than percentage growth) among all U.S. counties.

From 2020 to 2025, Harris County’s growth rate was 6.6 percent. It remains the country’s third largest county based on population, behind Southern California’s Los Angeles County and Illinois’ Chicago-anchored Cook County.

Harris County is on track to surpass Cook County in size in the near future. As of July 1, 2025, a nearly 150,000-resident gap separated population-losing Cook County and fast-growing Harris County.

The Texas Demographics Center predicts Harris County’s population will be 5.37 million in mid-2030 and just short of six million in mid-2040.

Suburban counties see significant population gains

Harris County isn’t the only county in the area that experienced a growth spurt from 2024 to 2025:

Waller County’s population climbed 5.69 percent, winding up at 69,858. Its growth rate ranked second among U.S. counties.
Liberty County’s population rose 4.4 percent to 121,364, putting its growth rate in eighth place among U.S. counties.
Montgomery County gained 30,011 residents, with its population landing at 781,194. That placed it at No. 4 among U.S. counties for numeric growth.
Fort Bend County picked up 24,163 residents, arriving at a total of 975,191 and positioning it at No. 8 among U.S. counties for numeric growth. Fort Bend County, the region’s second largest county based on population, is projected to break the one million-resident mark by July 2030, according to the Texas Demographics Center.

“Lower mortgage rates from 2009 to 2022 and the rise of remote work have made suburban housing more attractive, especially for families seeking affordability,” Pramod Sambidi, the Houston-Galveston Area Council’s assistant director of data analytics and research, said last year. “Additionally, suburban areas are seeing more multifamily developments than before the pandemic.”

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This article originally appeared on CultureMap.com.

5 Houston-area companies named among world's most innovative for 2026

In The Spotlight

Led by Conroe-based Hertha Metals, five organizations in the Houston area earned praise on Fast Company’s list of the World’s Most Innovative Companies of 2026.

Hertha Metals ranked No. 1 in the manufacturing category.

Last year, Hertha unveiled a single-step process for steelmaking that it says is cheaper, more energy-efficient and just as scalable as traditional steel manufacturing. It started testing the process in 2024 at a one-metric-ton-per-day pilot plant.

At the same time, Hertha announced more than $17 million in venture capital funding from investors such as Breakthrough Energy, Clean Energy Ventures, Khosla Ventures, and Pear VC.

“We’re not just reinventing steelmaking; we’re redefining what’s possible in materials, manufacturing, and national resilience,” Laureen Meroueh, founder and CEO of Hertha, said at the time.

Meroueh was also recently named to Inc. Magazine's 2026 Female Founders 500 list.

Hertha, founded in 2022, says traditional steelmaking relies on an outdated, coal-based multistep process that is costly, and contributes up to 9 percent of industrial energy use and 10 percent of global carbon emissions.

By contrast, Hertha’s method converts low-grade iron ore into molten steel or high-purity iron in one step. The company says its process is 30 percent more energy-efficient than traditional steelmaking and costs less than producing steel in China.

Last year, Hertha said it planned to break ground in 2026 on a plant capable of producing more than 9,000 metric tons of steel per year. In its next phase, the company plans to operate at 500,000 metric tons of steel production per year.

Here are Fast Company’s rankings for the four other Houston-area organizations:

Houston-based Vaulted Deep, No. 3 in catchall “other” category.
XGS Energy, No. 7 in the energy category. XGS’ proprietary solid-state geothermal system uses thermally conductive materials to deliver affordable energy anywhere hot rock is located. While Fast Company lists Houston as XGS’ headquarters, and the company has a major presence in the city, XGS is based in Palo Alto, California.
Houston-based residential real estate brokerage Epique Realty, No. 10 in the business services category. Epique, which bills itself as the industry’s first AI brokerage, provides a free AI toolkit for real estate agents to enhance marketing, streamline content creation, and improve engagement with clients and prospects.
Texas A&M University’s Nanostructured Materials Lab in College Station. The lab studies nano-structured materials to make materials lighter for the aerospace industry, improve energy storage, and enable the creation of “smart” textiles.

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

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