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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$5B Austin medical center, anchored by MD Anderson, to break ground this fall

moving forward

Construction on the $1 billion first phase of the AI-native University of Texas Dell Medical Center in Austin—which will feature a hospital operated by Houston’s UT MD Anderson Cancer Center—is set to start this fall.

The UT System Board of Regents approved funding for first-phase construction on Aug. 12.

The medical center—now expected to cost $5 billion, up from the initial $2.9 billion estimate—will span about 2.5 million square feet. It will include 300 to 500 patient beds, outpatient facilities, an emergency department and specialized care for cancer patients.

MD Anderson will bring its world-renowned oncology programs to the center’s integrated health care model, Dr. Claudia Lucchinetti, senior vice president of medical affairs at UT Austin and dean of the university’s Dell Medical School, tells Health Leaders.

Earlier this year, Austin tech billionaire Michael Dell and his wife, Susan, pledged $750 million for development of the medical center. The medical center, scheduled for completion in December 2030, will be a cornerstone of the new 300-acre UT Dell Campus for Advanced Research, a medical education and research hub.

“Through this new campus and medical center, Texas will lead America in health care innovation,” Gov. Greg Abbott said when the research campus was announced in April. “The next generation of medical breakthroughs will take place in Central Texas.”

The medical center will fold AI tools and other technology into the infrastructure, rather than having them added after it’s built. Among other capabilities, the technology will monitor real-time medical data, automate data entry, and help health care professionals quickly predict and identify risks to patients, according to Health Leaders.

“We are not just building a new medical center,” Lucchinetti says. “We are building a fundamentally new model of health. It’s not just a new facility. It’s not just a new collaboration. It is a convergence of capabilities that rarely come together at the same time.”

Houston hospital ranks among 20 best in U.S. & more top innovation news

Trending News

Editor's note: August is off to a strong start with these five big innovation headlines to know. From the annual U.S. News ranking of best hospitals to a big Series A raise, here are the most-read Houston innovation stories published July 31-August 14, 2026:

1. U.S. News declares Houston hospital No. 1 in Texas for the 15th year

Houston Methodist Hospital and over a dozen more Houston-area hospitals have earned bragging rights in U.S. Houston Methodist was also the only Texas institution named on U.S. News' Best Hospitals Honor Roll, a prestigious list of the 20 best medical centers in the country. Houston Methodist also reigns as Texas' best hospital for the 15th consecutive year. Continue reading.

2. Houston startup lands $10M to power up electrician staffing platform

Houston-based Buildforce, which provides a tech-enabled staff platform geared toward electricians and electrical contractors, has raised a $10 million Series A round led by Houston’s Saepio Capital. Other investors in the round include Blue Heron Capital, Revolution’s Rise of the Rest Seed Fund, S3 Ventures and Chicago Ventures. Buildforce says the funding will help fuel its national expansion and further development of its technology. Continue reading.

3. UTHealth Houston joins NASA initiative to protect border drinking water

Climate change means far more to public health than living with hotter days. Transformations in our weather are contributing to challenges in accessing safe drinking water in some communities. One of the most dire situations is along the US–Mexico border. NASA is seeking to address that issue with its Water Quality Applications program. An 11-researcher project led by a UTHealth Houston School of Public Health faculty member has been selected to participate. Continue reading.

4. KBR unveils name, branding for new government services spinoff

Houston-based KBR Inc.'s new Mission Technology Solutions unit officially has a name. The previously announced government services spinoff, which until now has been nicknamed SpinCo, will now be known as Trinzic. The company said in a news release that the name was inspired by the word intrinsic, "reflecting essential, built-in capabilities and deep expertise operating in some of the world’s most complex and mission-critical environments." Continue reading.

5. Who are Houston's top innovators? Nominate now for 2026 Houston Innovation Awards

Calling all Houston innovators: The 2026 Houston Innovation Awards, presented by InnovationMap, return this fall to celebrate the best and brightest in the Houston innovation ecosystem right now. We're asking you to nominate Houston's top innovators and startups for this year's awards. Nominations are open through August 27 and can be made on behalf of yourself, your organization, and other influential leaders in the local innovation scene. Continue reading.

Rice lands $15M U.S. Army award to launch next-gen wireless research center

defense funding

The U.S. Army Research Office has awarded Rice University $15 million to establish a new center for next-generation sensing and communications.

The five-year research center—dubbed the Center for Large Aperture Secure Sensing, Imaging and Communications (CLASSIC)—will unite researchers from universities and national laboratories to develop advanced antenna technologies for future wireless systems. Edward Knightly, the Sheafor-Lindsay Professor of Electrical and Computer Engineering at Rice, will lead the center that “combines expertise in wireless networking, antennas, radar, artificial intelligence, circuits and physics to address growing demands on wireless systems,” according to Rice.

“The challenges we’re tackling require advances that span physics, hardware, communications and computing," Knightly said in a news release. “By combining those strengths in a single center, we can accelerate the development and demonstration of technologies that would not be possible through individual efforts alone.”

Joining Knightly will be Ashutosh Sabharwal of Rice, Sensen Li of the University of Texas at Austin, Hou-Tong Chen of Los Alamos National Laboratory, Danijela Cabric of UCLA, Josep M. Jornet and Tommaso Melodia of Northeastern University, Daniel M. Mittleman of Brown University, and Willie Padilla of Duke University.

Industry partners include Booz Allen Hamilton, Intel, Keysight, Lockheed Martin, MITRE, Northrop Grumman, Qualcomm and Raytheon.

CLASSIC researchers will investigate how large-scale antenna arrays (ELSAAs) can expand the capabilities of wireless systems where technology is limited.

ELSAAs use thousands of coordinated antenna elements to direct radio waves. Researchers aim to develop ways to use the technology to help maintain steady communication when signals are blocked or disrupted and to detect and generate detailed images of concealed objects.

Along with ELSAAs, the center will work to develop sensing techniques for threat detection, study wireless jamming and build resilient high-speed wireless networks. Researchers will ultimately validate the technology in labs and via drone-based field trials.

CLASSIC will also work on developing an AI-driven modeling framework that will simulate complex electromagnetic environments in real time.

“This award demonstrates Rice’s leadership in tackling complex national research challenges through collaboration across disciplines and institutions,” David Sholl, executive vice president for research at Rice, added in the release.

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