Austin VC has its eyes on Houston with new $210M fund

money moves

Krishna Srinivasan and Venu Shamapant have been investing in Texas startups for 20 years. Now, with the latest LiveOak Venture Partners fund, the duo has more money to focus on Houston. Photos via liveoakvp.com

A venture capital firm that's focused on funding startups across the Lone Star State has closed its latest fund and is set on doubling down on Houston.

LiveOak Venture Partners has been around for almost a decade, and its third fund closed last week at $210 million. It's the firm's largest fund yet — twice its last two funds, which each closed at $105 million. Krishna Srinivasan tells InnovationMap that the original plan was to raise a similarly sized fund but interested limited partners brought even more to the table.

"There was tremendous interest from LPs for this fund," Srinivasan says, adding that the firm could have raised even more based on interest. "People love the white-hot, broad Texas market. ... It's been an exciting journey to take the firm to the next stage."

Srinivasan and Venu Shamapant, founding partners at LiveOak Venture Partners, raised the fund in just over three months — completely on video conferences. The duo has been investing in Texas technology companies for over 20 years and has seen a lot of momentum and excitement for their strategy. While the fund is bigger and brought in new LPs — some based in the Houston area — Shamapant says to expect a continuation of the fund's strategy.

"We don't really see a strong reason to change anything," Shamapant tells InnovationMap. LiveOak targets early stage tech companies in Texas. "On the edges though, the larger fund allows us to tweak (our strategy) a little bit and adapt to the market environment. We've been doing this for 20 years and this is one of the strongest markets we've seen in Texas."

Shamapant says they now have the ability to back more companies with slightly larger checks and longer term support. He also says they might make an investment or two in growth-stage companies, expanding a bit from just funding early-stage startups.

While most of the startups LiveOak has supported reside in Austin where the firm is based, the new fund is particularly geared at investing in startups across Texas.

"We are fiercely committed to adding a lot more portfolio companies in Houston," says Srinivasan. "Houston's got all the raw DNA that would constitute a great fit for the kind of deals we love to do."

LiveOak is no stranger to Houston. The firm was supported by the HX Venture Fund, a fund of funds that invests as a limited partner to VC firms based outside of Houston but with an interest in investing in local startups.

Additionally, one of the firm's early investments was in Houston-founded CS DISCO, a legal software startup that has seen great growth and success over the years. The company later relocated to Austin, which became a bit of a trend for Houston companies that needed to relocate to find success. Srinivasan says he's not seeing this trend so much anymore thanks to a more developed workforce in Houston.

"We believe there is a real depth of talent in the Houston market," Srinivasan says. "We are not at all interested in migrating companies out of Houston. I think there is enough tech strength and success locally."

Shamapant adds that the effect of the pandemic had and a rise in a distributed workforce will only benefit Houston ability to attract and retain tech talent and startups.

"A lot of the trends we talk about in terms of talent, aren't triggered by the pandemic. These are long-term trends we have seen over 20 years," Shamapant says, adding that this means the momentum is here to stay. "The pandemic probably brought it to a tipping point that has accelerated these trends."

Three non-Houston investors discussed the strengths and weaknesses of Houston's innovation ecosystem. Getty Images

3 observations about Houston's innovation ecosystem from out-of-town venture capitalists

Zooming out

You'll go cross-eyed looking at the same puzzle for too long, and sometimes it's better to take a step back and introduce some fresh perspectives and ideas from someone not so connected to the matter at hand.

At the second annual HX Capital Summit hosted by Houston Exponential at Rice University, HX gathered three out-of-town venture capital experts to discuss Houston's innovation ecosystem with Sandy Wallis, managing director at the HX Venture Fund. The fund-of-funds focuses on connecting non-local investors to Houston in order to bring new venture opportunities to town. On the panel, the experts discussed their observations about the Bayou City, which can be summed up as follows.

Community engagement and corporate interest are good signs for Houston 

Right off the bat, the panelists agreed that its much more encouraging visiting Houston nowadays than it was in the recent past. Clint Korver, managing director at San Francisco-based Ulu Ventures, has only recently played witness to the city, thanks to his firm's work with HX and the fund of funds.

"I'm just getting to know the Houston community," Korver says. "I'm really intrigued by how much community support there is."

Korver says that, not unlike Houston startups, Bay Area companies find it a challenge getting a foot in the door at major corporations. However, he's observed that Houston-based corporates want a seat at the table of Houston innovation.

"All the corporate attention that's being integrated here is super intriguing," Korver says. "That's our startups' hardest problems."

The other panelists, who are much closer to Houston, echoed Kover's interest in the role corporations play. Venu Shamapant, founding partner at Austin-based LiveOak Venture Partners, and Thomas Ball, founder and managing director at Austin-based Next Coast Ventures, have witnessed Houston evolve into what it is today over the past decade or so.

"We've both been coming to Houston over the past 20 years and been investing in startups, and it's been a dramatically different scene even in just the past five years," Shamapant says.

Houston's ecosystem is going to take time

While the panelists remarked on the evolution the city has and the support that large corporations seem to be willing to provide, Houston has other assets that's setting it up for success. The panelists mention a solid pool for talent, impressive educational institutions, and more.

"When I look at Houston, I think it has every ingredient for success, which is why I want to spend time here," Ball says.

Sure, as Ball says, Houston has the ingredients, but what it now needs is the time to cook.

"To me, it's more of just time that it's going to take. We can't bake this Houston cake by turning the thermostat up to 900 degrees in an hour. It's going to take three hours at 300," Ball says, adding that he doesn't know very much about baking. "It will take time. This won't be an overnight success. We're here for the long haul."

Houston has some challenges yet to overcome 

Wrapping up the panel, an audience member asked about the changes Houston still needs to make to really get to the point it needs to be at.

For Korver, the answer was pretty simple. Houston needs a big exit.

"There's this incredible amount of momentum that comes along with a successful company that takes a hold of everyone — the rising tide floats all boats thing," Korver says.

For Ball, particularly comparing Houston to other major innovation-focused cities, the issue is that Houston is so spread out.

"To me the one thing I struggle with in Houston is what I would call a density problem," Ball says. "I think you need density here and you need to concentrate your resources in certain places in this city."

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2 Houston suburbs rank among 10 best cities to retire, says U.S. News

Slowing Down

Houston and nine of its suburbs are earning new acclaim on U.S. News and World Report's just-released list of the best U.S. cities for retirees in 2027. Two northern suburbs, The Woodlands and Spring, are resting easy among the top five nationwide.

The 2027 Best Places to Retire list evaluated over 850 U.S. cities based on six livability metrics that best serve American retirees: quality of life, affordability, health care, retiree taxes, job market, and population and migration. The top 250 finalist cities were then ranked nationally and by city size.

Midland, Michigan topped the list for the second consecutive year and is followed by Homosassa Springs, Florida (No. 2) and Weirton, West Virginia (No. 3).

The Woodlands and Spring respectively maintained their standings as the No. 4 and No. 5 best cities for retirees for the second year in a row. The Woodlands topped the separate list of the best midsized U.S. cities to retire, while Spring landed 5th among the smallest U.S. cities.

Houston proper was declared the No. 2 best big city for retirees, and it ranked 89th overall. Elsewhere in the metro, Pearland (No. 13) and Conroe (No. 14) ranked just outside the overall top 10 but ranked 4th and 5th among the best midsized cities for retirees.

U.S. News said affordability is the "most considered factor" when it comes to picking the best place to live a low-stress retirement life, and that's what Houston and its neighbors deliver. Affordable cities also give retirees "a sense of security and comfort as they live out their golden years," according to Megan Wood, U.S. News assistant managing editor of home services and real estate.

"It’s no secret that affordability is top of mind for Americans this year, which is why U.S. News updated its weighting criteria to better align with what retirees prioritize," Wood said. "The 2027 rankings reflect key metrics used to highlight the places that
best suit retiree needs."

Sugar Land was declared the 10th best place to live in the U.S. in a separate U.S. News report earlier this year, but it doesn't quite meet the expectations for retirees. This particular suburb ranked as the 45th best overall city to retire, but it fared better in the city size ranking and landed 13th among the biggest U.S. cities.

Pasadena also surprised as the 85th best place to retire nationwide in this report, despite being hailed as the No. 3 best city to retire in Texas by RetirementLiving.com.

Three more Houston neighbors ranked among the top 100 overall best places to retire for 2027: League City (No. 25), Missouri City (No. 49), and Baytown (No. 88).

These are the top 10 best U.S. cities to retire for 2027:

  • No. 1 – Midland, Michigan
  • No. 2 – Homosassa Springs, Florida
  • No. 3 – Weirton, West Virginia
  • No. 4 – The Woodlands
  • No. 5 – Spring, Texas
  • No. 6 – Rio Rancho, New Mexico
  • No. 7 – Altoona, Pennsylvania
  • No. 8 – Paducah, Kentucky
  • No. 9 – Lynchburg, Virginia
  • No. 10 – Palm Coast, Florida
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This article first appeared on CultureMap.com.

Air taxi network to land in 'Texas triangle' of Houston, Austin, DFW next year

taking flight

San Jose, California-based aerospace company Archer Aviation is bringing its air-taxi system to the “Texas triangle” of Houston, Austin and Dallas-Fort Worth.

Currently, the planned zero-emission electric air taxi networks will use Archer’s Midnight air taxi to “turn 60- to 90-minute drives to major airports, business districts and major destinations into 10- to 20-minute flights,” the company said in a news release. Archer plans to begin flights in the Texas triangle next year.

The Midnight air taxi is an all-electric vertical takeoff and landing (eVTOL) aircraft. It can carry four passengers and a pilot and is designed for consecutive flights of about 20 miles.

Archer cites the Texas triangle as one of the busiest and fastest-growing “megaregions” in the country due to its proximity to coastal regions, major airports, and a number of business districts.

Archer Chief Commercial Officer Nikhil Goel described the air taxi experience to CW Houston as “100 times quieter than a helicopter for the price of an Uber Black.” He added that the air taxis are a combination of a helicopter, a small airplane and a drone.

In Houston, Archer’s air taxi network will aim to connect George Bush Intercontinental, William P. Hobby and Sugar Land Regional Airport with downtown destinations, including the Thompson Hotel helipad, and Galveston.

In Austin, it plans to link the city's Austin-Bergstrom International Airport and Austin Executive Airport with the F1 Circuit Helipad at the Circuit of the Americas. Archer debuted its Midnight aircraft at the F1 Prix in the Fan Zone and the F1 Paddock at Austin’s Circuit of the Americas. The Dallas-Fort Worth network is slated to include Dallas-Fort Worth International Airport, Dallas Love Field, Addison Airport, Arlington Municipal Airport, Fort Worth Meacham International Airport and Perot Field Fort Worth Alliance Airport, plus major business hubs like Frisco Station.

“Texas is setting the bar for America’s leadership in the next generation of aviation,” Adam Goldstein, founder and CEO of Archer Aviation, said in the release. “Our planned networks will make the benefits of electric air taxis real for Texans — trading hours in traffic for minutes in the air, while connecting the biggest airports, business districts and sporting hubs in ways that America’s largest megaregion needs to grow.”

Archer is working with state and local partners to develop charging infrastructure and plans to pursue Texas operations through the White House’s eVTOL Integration Pilot Program, according to the release. It recently completed its "No Roads" flight tour, which included multiple flights over the San Francisco Bay, and flew to seven cities over three days.

5 Houston deep tech startups pushing the boundaries of their industries

meet the finalists

Houston has long been at the forefront of innovation, from NASA’s Johnson Space Center to its startup ecosystem using technology to disrupt industries.

As part of the 2026 Houston Innovation Awards, our Deep Tech Business category will honor an innovative startup providing technology solutions based on substantial scientific or engineering challenges, including those in the AI, robotics and space sectors.

Five deep tech companies have been named finalists for the 2026 award.

Read more about these businesses, their founders and their breakthrough technologies below. The 2026 winners will be announced on InnovationMap.com in mid-November.

Casimir

Battery tech startup Casimir develops semiconductor chips that produce continuous electrical power straight from the quantum vacuum, without the need for a battery, cord or external charge source. The company is targeting commercialization for its first-generation MicroSparc chip by 2028.

Harold “Sonny” White founded Casimir in 2023 after nearly two decades at NASA. The company emerged from stealth with a $12 million seed round in 2026. It was also awarded an STTR Phase I contract from the U.S. Space Force's SpaceWERX to support the development of the company's solid-state generator for potential use by the Department of the Air Force earlier this year.

FocisAI

Artificial intelligence startup FocisAI helps refinery owner-operators unlock actionable insights from 3D scans and images.

FocisAI was founded by CEO Tyler Wooten, COO Colin Snell and CTO Kyle Snell in 2026. It is a member of Greentown Labs and launched a seed round in September, which is expected to close by the end of the year, according to the company's application. It has rolled out 10 pilot programs and is looking to move into recurring, facility-scale deployments and scale its team in Houston this year.

Machine Saver Inc.

Industrial tech startup Machine Saver Inc. builds wireless and wired vibration and proximity sensors to tell heavy industry when a machine is about to fail. The company's technology runs on an 8-plus-year battery life and helps operators reduce downtime, improve maintenance and extend equipment life.

Machine Saver was founded by CEO Colton Bach and Quentin Bach in 2013. Its customers and partners include Houston Methodist, Blue Bell, Genemco, as well as energy and heavy industry, food and beverage, and cold chain companies, according to its application. The company is raising a Series A.

Square Robot

Energytech startup Square Robot develops and operates submersible inspection robotics that inspect aboveground storage tanks while they remain in service. The robots reduce downtime and costs, improve worker safety and limit hydrocarbon emissions.

Square Robot launched its Houston office in 2019 and closed a Series B in 2025. It plans to complete its first U.S. Navy demonstrator tank in November and is also developing real-time inspection software.

Venus Aerospace

Spacetech company Venus Aerospace is developing a high-thrust rotating detonation rocket engine (RDRE) that replaces the subsonic combustion used in conventional rocket engines. The RDRE is a compact, simpler engine that can deliver up to 15 percent greater efficiency for defense and space applications. It completed its first U.S. flight test of the engine last summer.

Venus Aerospace was founded in 2020 by CEO Cassie Duggleby and CTO Andrew Duggleby. It raised a $20 million Series A in 2022 and $42 million Series A2 in 2025. It closed a $91 million Series B earlier this year and expanded its leadership team. The company is working toward longer-duration and higher-thrust testing and advancing its flight program.

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