Station Houston CEO Gabriella Rowe and Rice Alliance Managing Partner Brad Burke named 10 startups to watch. Photo by Natalie Harms

Texas is booming with digital startups, and Station Houston and the Rice Alliance for Technology and Entrepreneurship hosted a meeting of the minds to discuss the digital revolution at the inaugural Texas Digital Summit at Rice University on December 6.

Thirty-nine companies presented throughout the day; among the group were 26 from the Houston area. At the conclusion of the day, Gabriella Rowe, CEO of Station Houston, and Brad Burke, managing director of the Rice Alliance, announced 10 "most promising companies" that stood out to a group of investors who attended the event.

All 10 selected were Texas-based, with eight from the Houston area. Here's who the venture capitalists and investors picked for the prize.

Houston-based SafePass

Photo via safepassglobal.com

SafePass pictures a world where visitors on school or corporate campuses can be tracked. The company's technology upends the standard paper or sticker pass you get from the front office, and provides a reusable, trackable device for visitors.

"Our tracking algorithm interacts with already existing WiFi technology — so, the routers that are already at that facility," says Ronald Huff, managing director of SafePass. "We leverage that to get that real-time tracking information."

Houston-based ScribeRule

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ScribeRule operates under the assumption that your company's data has already been breached. The software protects data from both internal and external threats so that companies don't have to worry about any type of threat. The technology is scalable and easy to use.

"The problem is very simple," says Chris Melson, president and COO. "Only allow people who are authorized to see your data, see the data. And that's the problem we've solved."

"It's very difficult to protect data in a collaborative environment."

Houston-based Sensoleak

Photo via sensoleak.com

Sensoleak is making it easier for monitors in the oil and gas industry to be alerted about leaks. Using artificial intelligence, machine learning, and internet of things combined into a software, the company is providing a revolutionary solution for a longstanding problem.

"The problem right now is there is a lot of false alarms," says Shoshi Kaganovsky, founder and CEO, "and if there is a leak, it has to leak a lot before it is caught."

The company recently opened a new round of funding.

Sugar Land-based Commtrex

Photo via commtrex.com

The only open, electronic marketplace for rail shippers and asset providers is right in Houston's backyard of Sugar Land. Commtrex makes communications and connections between these transportation entities more efficient and better executed.

"Commtrex's asset management tools and market data is based on real transactions, and benefits our member companies with engagement efficiencies and financial insights," reads the website.

Houston-based Zenus

Photo via zenus-biometrics.com

Let's face it, face recognition is the future of identification, and Zenus has an award-winning technology to move the needle. Utilizing face recognition doesn't need to compromise privacy.

"We are a leading provider of face recognition software," reads the website. "Our cloud-based service can search a database of faces within a blink of an eye and it can be seamlessly integrated into any application."

Houston-based 3GiG

Photo via 3-gig.com

3GiG is a one-stop shop software company for the "oval office" needs of oil and gas companies. Energy leaders can use the services to manage projects, prospects, and more. President and CEO Kandy Lukats compares her company's services to the trending meal kits — like Blue Apron or Hello Fresh —Americans have been crazy about — all the ingredients sent right to your door.

"We believe we've found the niche between the freezer section and doing it yourself," she says.

Austin-based Towny

Photo via towny.com

This Austin company is making it more appealing to shop local. Towny looks to work in cities with under a million residents. The tool is for small, consumer-focused businesses to market their store to consumers. The small business owners pay a flat monthly rate to utilize digital marketing tools from the convenience of their phones.

Towny is already in five towns with 500 clients, says CEO Nathan Baumeister. In January, the company's monthly revenue was $17,000, but for the last two months, the tool has raked in $90,000 monthly.

"We've built a branding, mobile-first platform, where we've taken all these technologies and tactics and put it together in one package at the affordable price of $199 per month," he says.

Dallas-based CommandHound

Photo via commandhound.com

CommandHound is a B2B software that tracks employee tasks and responsibilities. It reminds users on assigned duties and keeps a record of work outcomes for later performance reviews.

"Our ultimate solution is to turn every organization into a high-performance organization through accountability," says Rene Larrave, chairman and CEO. "It's a checklist on steroids."

Houston-based SecurityGate

Photo via securitygate.io

SecurityGate is disrupting the cyber compliance and the cyber regulation market by providing cyber risk assessments at a faster rate than a human auditor could. The software analyzes data, identifies potential cyber security risks, and communicates with the company how to address the threats.

"No matter what industry vertical you're in, every single supply chain out there is worries about supply chain cyber security," says CEO Ted Gutierrez. "And the problem with that, is everyone is doing it manually."

Houston-based DeepCast.ai

Photo via deepcast.ai

Using artificial intelligence and physics, DeepCast.ai can automate operations for industrial companies.

"We simply integrate with system solutions, try to clean and facilitate the data using AI models important to the oil and gas industry," says Arturo Klie, chief technology officer and senior software engineer. "Once the data is clean, we apply our business-informed AI models to solve and provide forecasting real time and analytics.

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8+ can't-miss Houston business and innovation events in April

where to be

Editor’s note: Houston's weeklong innovation festival kicks off April, followed by Rice University's globally recognized pitch competition returning for its 26th year. Plus, find coworking pop-ups, industry meetups, pitch battles and even a crawfish boil on the calendar. Here’s what not to miss and how to register. Please note: this article might be updated to add more events.

March 30-April 4 — H-Town Roundup

Celebrate innovation, entrepreneurship and collaboration at Houston Exponential's sixth-annual H-Town Roundup. During the free event series, previously known as Houston Tech Rodeo, attendees can expect insightful talks, workshops and networking events at venues across the city.

This event began March 30. Register here.

April 2 — Industrious Coworking Day

Enjoy a complimentary day of cowering at Industrious and network with professionals at the Ion. Breakfast, snacks, wifi and workspace tours are included. Following the cowering day, Industrious will host happy hour at Second Draught from 4-6 p.m.

This event is Thursday, April 2, from 8:30 a.m.-5 p.m. at the Ion. Register here.

April 2 — Technology Summit for Women

The fourth annual Women in Tech Cummil will feature speakers across three core tracks: Transformation + Digital strategy, Cyber + Risk + Resilience, and AI in Practice. Pearl Chu, director of technical domains and university relations at SLB, will give the opening remarks. Other panelists come from CenterPoint Energy, BP, Technip Energies and other leading companies.

This event is Thursday, April 2, from 2-5 p.m. at the Ion. Register here.

April 8 — Veterans Business Battle

Hear pitches from veterans and entrepreneurs as they compete for more than $10 million in investments at Rice Businesses' 12th annual Veterans Business Battle. This year, the two-day event will also feature a Small Business Expo, which invites Houston-based, veteran-owned businesses to participate in education, networking and the opportunity to showcase their business. Moonshots Capital and Mercury Fund will also host a fireside chat.

This event begins Wednesday, April 8, at 11 a.m. at the Ion. Click here to register.

April 9-11 — Rice Business Plan Competition

The Rice Alliance for Technology and Entrepreneurship will host the 26th annual Rice Business Plan Competition this month. Forty-two student-led teams from around the world, including one team from Rice, will present their plans before more than 300 angel, venture capital, and corporate investors to compete for more than $1 million in prizes.

This event begins Thursday, April 9. Find more information here.

April 10 — BioHouston Chili Cookoff

Connect with Houston's life sciences community at BioHouston's 21st annual chili cookout. This event is geared toward startup founders, researchers and industry veterans alike.

This event is Friday, April 10, from noon-4 p.m. at Bayou City Event Center. Register here.

April 14 — Mercury Fund Day at the Ion: Agentic Commerce

Don’t miss the latest installment of Mercury Fund Day at the Ion, previously known as Software Day. The recurring monthly event features office hours (by application), a keynote and networking opportunities. This month's topic focuses on agentic commerce.

This event is Tuesday, April 14, from 3:30-7 p.m. at the Ion. Register here.

April 19 – UH Energy Industry Crawfish Boil

Head to the UH Cullen College of Engineering Green Space for the 35th annual UH Energy Industry Crawfish Boil. The event will include a student showcase, STEM activities, a kids zone, live music, networking and, of course, crawfish. Proceeds from the event will support the multidisciplinary capstone fund that aims to increase professional readiness for Cullen College engineering and technology students.

This event is Sunday, April 19, from 1-5 p.m. at the Cullen College of Engineering Green Space. Find more information here.

April 24 — Rice Business Healthcare Conference

Leading experts, innovators and the next generation of healthcare leaders will converge at the Rice Business Healthcare Conference. Hosted by the Rice Business Healthcare Association, the conference will explore AI's potential impact on the sector.

This event is Friday, April 24, from 8 a.m.-2 p.m. at McNair Hall on Rice University's campus. Find more information here.

Houston unicorn closes $421M to fuel first phase of flagship energy project

Heating Up

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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This article first appeared on EnergyCapitalHTX.com.

Houston food giant Sysco to acquire competitor in $29 billion deal

Mergers & Acquisitions

Sysco, the nation's largest food distributor, will acquire supplier Restaurant Depot in a deal worth more than $29 billion.

The acquisition would create a closer link between Sysco and its customers that right now turn to Restaurant Depot for supplies needed quickly in an industry segment known as “cash-and-carry wholesale.”

Sysco, based in Houston, serves more than 700,000 restaurants, hospitals, schools, and hotels, supplying them with everything from butter and eggs to napkins. Those goods are typically acquired ahead of time based on how much traffic that restaurants typically see.

Restaurant Depot offers memberships to mom-and-pop restaurants and other businesses, giving them access to warehouses stocked with supplies for when they run short of what they've purchased from suppliers like Sysco.

It is a fast growing and high-margin segment that will likely mean thousands of restaurants will rely increasingly on Sysco for day-to-day needs.

Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares. Based on Sysco’s closing share price of $81.80 as of March 27, 2026, the deal has an enterprise value of about $29.1 billion.

Restaurant Depot was founded in Brooklyn in 1976. The family-run business then known as Jetro Restaurant Depot, has become the nation's largest cash-and-carry wholesaler.

The boards of both companies have approved the acquisition, but it would still need regulatory approval.

Shares of Sysco Corp. tumbled 13% Monday to $71.26, an initial decline some industry analysts expected given the cost of the deal.