New Houston venture studio emerges to target early-stage hardtech, energy transition startups

funding the future

A Houston investor is looking to target high-potential hardtech startups within the energy transition with his new venture studio. Photo via Getty Images

The way Doug Lee looks at it, there are two areas within the energy transition attracting capital. With his new venture studio, he hopes to target an often overlooked area that's critical for driving forward net-zero goals.

Lee describes investment activity taking place in the digital and software world — early stage technology that's looking to make the industry smarter. But, on the other end of the spectrum, investment activity can be found on massive infrastructure projects.

While both areas need funding, Lee has started his new venture studio, Flathead Forge, to target early-stage hardtech technologies.

“We are really getting at the early stage companies that are trying to develop technologies at the intersection of legacy industries that we believe can become more sustainable and the energy transition — where we are going. It’s not an ‘if’ or ‘or’ — we believe these things intersect,” he tells EnergyCapital.

Specifically, Lee's expertise is within the water and industrial gas space. For around 15 years, he's made investments in this area, which he describes as crucial to the energy transition.

“Almost every energy transition technology that you can point to has some critical dependency on water or gas,” he says. “We believe that if we don’t solve for those things, the other projects won’t survive.”

Lee, and his brother, Dave, are evolving their family office to adopt a venture studio model. They also sold off Azoto Energy, a Canadian oilfield nitrogen cryogenic services business, in December.

“We ourselves are going through a transition like our energy is going through a transition,” he says. “We are transitioning into a single family office into a venture studio. By doing so, we want to focus all of our access and resources into this focus.”

At this point, Flathead Forge has seven portfolio companies and around 15 corporations they are working with to identify their needs and potential opportunities. Lee says he's gearing up to secure a $100 million fund.

Flathead also has 40 advisers and mentors, which Lee calls sherpas — a nod to the Flathead Valley region in Montana, which inspired the firm's name.

“We’re going to help you carry up, we’re going to tie ourselves to the same rope as you, and if you fall off the mountain, we’re falling off with you,” Lee says of his hands-on approach, which he says sets Flathead apart from other studios.

Another thing that's differentiating Flathead Forge from its competition — it's dedication to giving back.

“We’ve set aside a quarter of our carried interest for scholarships and grants,” Lee says.

The funds will go to scholarships for future engineers interested in the energy transition, as well as grants for researchers studying high-potential technologies.

“We’re putting our own money where our mouth is,” Lee says of his thesis for Flathead Forge.

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This article originally ran on EnergyCapital.

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Softeq has named three members to its executive team. Photos courtesy of Softeq

Houston tech company adds 3 members to its C-suite

growing team

A tech development company has expanded its executive suite with three new additions to its team.

Softeq Development Corp. has hired Craig Ceccanti as COO, Albert Esser as chief delivery officer, and Edwin Lemus as chief people officer. The new hires' roles were effective as of June 1. The Houston company, founded in 1997, creates hardware and software solutions for its clients. Softeq also runs a venture fund and studio for startups from around the world.

“With the significant growth of our engineering services business plus the addition of our Venture Studio and $40 million Venture Fund, we saw an opportunity to welcome new leaders with global experience and fresh thinking to continue evolving our business and scaling for the future,” says Christopher A. Howard, founder and CEO of Softeq, in a news release. “This is a huge investment in our team, and with the addition of these three leaders to our C-suite we will centralize our global leadership team in Houston while providing support and expertise to our team across 22 countries and clients worldwide.”

About the new executives:

  • Craig Ceccanti is a serial entrepreneur. He founded Pinot’s Palette and oversaw its franchise growth and exit before joining the founding team of sEATz — now Rivalry Technologies. The sports tech startup provides a mobile ordering software for stadiums, as well as hospital and hospitality destinations. Most recently, he founded and ran T-Minus Solutions, a custom software development company. As COO, Ceccanti will oversee the day-to-day operations of Softeq and work to improve internal and external processes.
  • With three decades of experience in tech and consulting at Daimler AG, GE, Emerson, Hilti, and Dell, Albert Esser will lead the delivery organization, which includes including solutions engineering, project management, and resource management. As chief delivery officer, he's tasked with expanding "the team’s capabilities and agility by adding to the global network of consultants," per the release, as well as leading Softeq's adoption of emerging new technologies like IoT, AI/ML, vision systems, industrial automation, robotics, cloud applications, and cyber security.
  • Edwin Lemus has 22 years of talent-related experience, and, as chief people officer, he will continue to grow the Softeq team and build a company culture for the workforce that stretches across 22 offices around the world.

Softeq Venture Studio launched over a year ago with its inaugural cohort in 2021, and the fund was launched last year. The latest cohort was announced in March.

Cloudbreak Enterprises is getting in on the ground level with software startups — quickly helping them take an idea to market. Photo via Getty Images

Unique Houston-based venture studio looks to double portfolio in 2021

startup support

Lauren Bahorich is in the business of supporting businesses. In February 2020, she launched Cloudbreak Enterprises — B-to-B SaaS-focused, early-stage venture studio — with plans to onboard, invest in, and support around three new scalable companies a year. And, despite launching right ahead of a global pandemic, that's exactly what she did.

Bahorich, who previously worked at Golden Section Ventures, wanted to branch off on her own to create a venture studio to get in on the ground level of startups — to be a co-founder to entrepreneurs and provide a slew of in-house resources and support from development and sales to marketing and administration.

"We start at zero with just an idea, and we partner with out co-founders to build the idea they have and the domain expertise and the industry connections to take that idea and built a product and a company," Bahorich says.

Bahorich adds that there aren't a lot of venture studios in the United States — especially in Houston. While people might be more familiar with the incubator or accelerator-style of support for startups, the venture studio set up is much more intimate.

"We truly see ourselves as co-founders, so our deals are structured with co-founder equity," Bahorich says, explaining that Cloudbreak is closer to a zero-stage venture capital fund than to any incubator. "We are equally as incentivized as our co-founders to de-risk this riskiest stage of startups because we are so heavily invested and involved with our companies."

Lauren Bahorich founded Cloudbreak Enterprises in February of 2020. Photo courtesy of Cloudbreak

Cloudbreak now has three portfolio companies, and is looking to onboard another three more throughout the rest of the year. Bahorich runs a team of 15 professionals, all focused on supporting the portfolio. While creating the studio amid the chaos of 2020 wasn't the plan, there were some silver linings including being able to start with part-time developers and transition them to full-time employees as the companies grew.

"Within the first month, we were in shutdown here in Houston," Bahorich says. "But it's been a great opportunity for us. Where a lot of companies were pivoting and reassessing, we were actually able to grow because we were just starting at zero ourselves."

Cloudbreak's inaugural companies are in various stages and industries, but the first company to be onboarded a year ago — Relay Construction Solutions, a bid leveling software for the construction industry — joined the venture studio as just an idea and is already close to first revenue and potentially new investors. Cloudbreak is also creating a commercial real estate data management software and an offshore logistics platform. All three fall into a SaaS sweet spot that Bahorich hopes to continue to grow.

"We are looking to replace legacy workflows that are still performed in Excel or by email or phone," Bahorich says. "It's amazing how many opportunities there are that fit into that bucket — these high-dollar, error-prone workflows that are still done like it's 1985."

Given the hands-on support, Bahorich assumed she'd attract mostly first-time entrepreneurs who don't have experience with all the steps needed to launch the business. However, she says she's gotten interest from serial entrepreneurs who recognized how valuable the in-house support can be for expediting the early-stage startup process.

"What I'm realizing is a selling point is our in-house expertise. These founders are looking for technical co-founders," Bahorich says. "We can both provide that role and be capital partners."

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Houston researcher secures $1.7M to develop drug for aggressive form of breast cancer

cancer research

A University of Houston researcher has joined a $3.2 million effort to develop a new drug designed to attack a cancer-driving protein commonly found in triple-negative breast cancer.

Triple-negative breast cancer (TNBC) is one of the most difficult-to-treat forms of cancer and accounts for 10 percent to 15 percent of all breast cancer cases. The disease gets its name because tumors associated with it test negative for estrogen receptors, progesterone receptors and excess HER2 protein, making it difficult to target. Due to this, TNBC is often treated with general chemotherapy, which can come with negative side effects and drug resistance, according to UH.

UH College of Pharmacy research associate professor Wei Wang is developing a drug that can target the disease more specifically. The drug will target MDM2, a protein often overproduced in TNBC that also contributes to faster tumor growth.

Wang is working on a team led by Wei Li, director of the University of Tennessee Health Science Center College of Pharmacy’s Drug Discovery Center. She has received $1.7 million to support the research.

Wang and UH professor of pharmacology and toxicology Ruiwen Zhang have discovered a compound that can break down MDM2. In early laboratory models, the compound has shown the ability to shrink tumors.

Wang and Zhang will focus on understanding how the treatment works and monitoring its effectiveness in models that closely mirror human disease.

“We will study how the drug targets MDM2 and evaluate the most promising drug candidates to determine effective dosing, understand how the drug behaves in the body, compare it with existing treatments and assess early safety,” Wang said in a news release.

Li’s team at the University of Tennessee will be working on the chemistry and drug design end of the project.

“This work could lead to an entirely new class of therapies for triple-negative breast cancer,” Li added in the release. “We’re hopeful that by directly removing the MDM2 protein from cancer cells, we can help more patients respond to treatment regardless of their tumor type.”

10+ Houston innovation leaders in the spotlight at SXSW 2026

where to be

Houston's innovation scene will be well represented at South by Southwest (SXSW) this month.

The week-long, Austin-based conference and festival will spotlight some of the Bayou City's leaders in health care, energy, space and more. The event kicks off today, March 12, and runs through March 18. The SXSW Innovation Conference will feature keynotes, workshops, mentoring sessions and more throughout various venues in the city.

Here's who to see and when and where to find them:

March 12

Aileen Allen, venture partner at Mercury Fund

Mentor Session from 4-5:15 p.m. at Hilton Austin Downtown

Allen will host a mentoring session focused on funding, marketing, advertising, PR and the future of work.

March 13

Heath Butler, partner at Mercury Fund

SXSW Pitch-Smart Cities, Transportation, Manufacturing & Logistics from 2:30-3:30 p.m. at the J.W. Marriott

Butler will judge five innovative startups as they pitch their solutions to advance smart cities, enhance transportation systems, modernize manufacturing, transform logistics, and strengthen government infrastructure and civic operations.

Jonathan Cirtain, CEO and president of Axiom Space

The Clock is Ticking for Space - Replacing the ISS from 4-5 p.m. at the J.W. Marriott

Cirtain will discuss Axiom's pursuit of building the world’s first commercial space station.

March 14

Jesse Martinez, founder and CEO of LSA Global

SXSW Pitch-Intelligent Systems, Robotics, & Multisensory Technology from 10-11 a.m. at the J.W. Marriott

Martinez will judge five innovative startups as they pitch their technologies that aim to enhance the way people connect, communicate and share unique life experiences with those around them in a digital ecosystem.

Jennifer Schmitt, head of operations at Rhythm Energy

Powering Texas with Reliable Integrated High-Demand Energy from 10-11 a.m. at Marlow

Schmitt will join a panel to discuss how EirGrid, the state-owned electric power transmission operator in Ireland, is pioneering solutions as the country works toward 80 percent renewable integration by 2030.

Saki Sasagawa, director of business development for JETRO Houston

Now is Japan's Time: Leading the Future with Deep Tech from 10-11 a.m. at the J.W. Marriott

Sasagawa joins a panel that will share real-time insights from diverse perspectives on the forefront of Japan’s deep tech and IP businesses.

March 15

Bosco Lai, CEO and co-founder of Little Place Labs

SXSW Pitch Alumni: Where Are They Now? from 10-11 a.m. at the J.W. Marriott

Lai joins a panel of four former SXSW Pitch winners to share how they leveraged the platform to take their startups to the next level.

Tara Karimi, cofounder and chief science and sustainability officer at Cemvita

South by South America: The Rise of Southern Brazil Tech from 2:30-3:30. p.m. at The Line

Karimi will participate in a panel to discuss how Rio Grande do Sul, Brazil's southernmost state, is attracting elite talent and AI infrastructure and share insights on navigating the next wave of South American tech growth.

March 16

Dr. Pavitra P. Krishnamani, emergency medicine physician at The University of Texas MD Anderson Cancer Center

Viva La Revolution: How the Digital Age is Transforming Wellness from 11:30 a.m.-12:30 p.m. at Hilton Austin Downtown

Krishnamani will discuss the latest advancements and policies that can accelerate the digital age of health care, such as wearables, telehealth and artificial intelligence.

March 18

Charlie Childs, co-founder and CEO of Intero Biosystems

Spinning Out: What It Takes to Build a University Startup from 2:30-3:30 p.m. at The Line

Childs will join founders who spun their companies out of the University of Michigan to share the real story of navigating IP, early capital, team building, market validation and the “valley of death.”

Dr. James Allison, regental chair of immunology and director of The Allison Institute at The University of Texas MD Anderson Cancer Center

Dr. Padmanee Sharma, professor in the Department of Genitourinary Medical Oncology, Division of Cancer Medicine at The University of Texas MD Anderson Cancer Center

Beyond Checkpoints: Immunotherapy’s Next Act from 2:30-3:30 p.m. at the J.W. Marriott

Allison and Sharma will sit down with 21-year-old, Stage 4 cancer survivor Sharon Belvin and Time Magazine journalist Alice Park will discuss the future of immunotherapy and what challenges remain.

Last year, Houston startups Little Places Labs and Helix Earth won top prizes in their respective categories at the prestigious SXSW Pitch event, held this year from March 13-14. No Houston startups were named finalists to compete in this year's event.

NASA revamps Artemis moon landing program by modeling it after Apollo

To the moon

NASA is revamping its Artemis moon exploration program to make it more like the fast-paced Apollo program half a century ago, adding an extra practice flight before attempting a high-risk lunar landing with a crew in two years.

The overhaul in the flight lineup came just days after NASA’s new moon rocket returned to its hangar for more repairs, and a safety panel warned the space agency to scale back its overly ambitious goals for humanity’s first lunar landing since 1972.

Artemis II, a lunar fly-around by four astronauts, is off until at least April because of rocket problems.

The follow-up mission, Artemis III, had been targeting a landing near the moon’s south pole by another pair of astronauts in about three years. But with long gaps between flights and concern growing over the readiness of a lunar lander and moonwalking suits, NASA’s new administrator Jared Isaacman announced that mission would instead focus on launching a lunar lander into orbit around Earth in 2027 for docking practice by astronauts flying in an Orion capsule.

The new plan calls for a moon landing — potentially even two moon landings — by astronauts in 2028.

“Everybody agrees. This is the only way forward,” Isaacman said.

The hydrogen fuel leaks and helium flow problems that struck the Space Launch System rocket on the pad at NASA's Kennedy Space Center in February also plagued the first Artemis test flight without a crew in 2022.

Another three-year gap was looming between Artemis II and the moon landing by astronauts as originally envisioned, Isaacman said.

Isaacman stressed that “it should be incredibly obvious” that three years between flights is unacceptable. He'd like to get it down to one year or even less.

Isaacman, a tech billionaire who bought his own trips to orbit and performed the world’s first private spacewalk, took the helm at NASA in December.

During NASA’s storied Apollo program, he said, astronauts’ first flight to the moon was followed by two more missions before Neil Armstrong and Buzz Aldrin landed on the moon. What's more, he added, the Apollo moonshots followed one another in quick succession, just as the earlier Projects Mercury and Gemini had rapid flight rates, sometimes coming just a few months apart.

Twenty-four Apollo astronauts flew to the moon from 1968 through 1972, with 12 of them landing.

“No one at NASA forgot their history books. They knew how to do this," Isaacman said. “Now we're putting it in action.”

To pick up the pace and reduce risk, NASA will standardize its Space Launch System rockets moving forward, Isaacman said. These are the massive rockets that will launch astronauts to the moon aboard Orion capsules. At the same time, Elon Musk's SpaceX and Jeff Bezos' Blue Origin are speeding up their work on the landers needed to get the astronauts from lunar orbit down to the surface.

Isaacman said next year will see an Orion crew rendezvousing in orbit around Earth with SpaceX's Starship, Blue Origin's Blue Moon or both landers. It's similar to the methodical approach that worked so well during Apollo in the late 1960s, he noted. Apollo 8, astronauts' first flight to the moon, was followed by two more missions before Armstrong and Aldrin aimed for the lunar surface.

“We should be getting back to basics and doing what we know works,” he said.

The Aerospace Safety Advisory Panel recommended that NASA revise its objectives for Artemis III “given the demanding mission goals.” It’s urgent the space agency do that, the panel said, if the United States hopes to safely return astronauts to the moon. Isaacman said the revised Artemis flight plan addresses the panel's concerns and is supported by industry and the Trump administration.

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