Top VC Firms in Houston

Savannah Mazanowski
Top VC Firms in Houston

Though tech-centric cities like Austin and San Francisco are usually first to come to mind when you think of startup hubs, Houston’s strong business reputation has bred an active and growing startup economy that’s attracted many venture capitalists.  

As the largest city in Texas and fourth-largest in the country, “The Bayou City” has grown to become a more startup-friendly city in recent years by diversifying its economy and opening itself up to more venture capital opportunities, including following a new federal guidance that allows investment into private equity from a 401k. 

In doing so, the city looks to capitalize on its growing startup market (which saw its first unicorn, Highradius, last year) and encourage venture capital firms to invest locally. In 2020, CrunchBases’ data shows that 61 local VC firms participated in funding rounds.

There’s even a home-grown news outlet called InnovationMap that does a great job of chronicling the latest breaking news and insights related to the Houston startup ecosystem.

If your Houston startup is seeking potential investors, these are the top VC firms in Houston to have on your radar.

Mercury Fund

Mercury Fund is an early-stage VC firm that touts itself on promoting the U.S. midcontinent and is listed as the top VC firm based in Houston. With a focus on entrepreneurs and technological innovation, the firm targets SaaS, Cloud, and other data-centric startups. In the past year, Mercury Fund invested in 10 different funding rounds. The most recent investment occurred in December 2020 for Houston blockchain startup Topl.

Montrose Lane

Founded in 2017, this Houston based VC firm predominantly invests in growing tech companies to promote more affordable and safer energy. Montrose Lane (formerly Cottonwood Venture) invested in four companies in 2020, the most recent being a series A funding round for Austin-based HUVRData in October.

Chevron Tech Ventures

Looking to invest in emerging technology to assist in Chevron’s goal of providing more affordable and cleaner energy, the VC firm invested in 12 businesses last year. While specialized in its portfolio, Chevron Tech Ventures invests in a wide range of startups to achieve that goal and is listed as one of Houston’s top VC firms. Its most recent investment occurred in January 2021 for a cybersecurity firm, Mission Secure.

Texas Atlantic Capital

Listed on multiple articles as a notable Houston VC firm, TA Capital invests in all stages of growing startups. The firm focuses on investing in tech industries, specifically in e-commerce, Internet, digital life, and software, with 37 total investments, nine of which are in software companies. Despite not having any recent investments in the past year, the firm is still actively working with its partners to expand its companies.

Texas HALO Fund

A Houston VC firm that specializes in early-stage businesses, Texas HALO Fund boasts a diverse portfolio. The Texas HALO Fund invests in a wide range of markets that lie anywhere from healthcare to manufacturing. According to Crunchbase, in the past year, the VC firm had the most investments out of any Houston-based venture capital firm, with 16 investments in 2020. Their most recent occurred in January 2021 and was for Houston based online management company Your Fare.

Amnis Ventures

Founded in 2013, Amnis Ventures is a Houston VC firm that invests in a wide range of industries, from renewable energy to real estate. Amnis Ventures invested for the first time in 2019 and made two additional investments in 2020. The most recent investment was a seed round for fintech company Qredo.

The Artemis Fund

The first female-founded VC firm in Houston, The Artemis Fund was established in 2019 and made its first investment later that year. Dedicated to investing in early stage female founders, the Artemis Fund focuses its investments on a wide range of consumer markets. Its latest investment went towards a seed round for Oakland based finance company CNote.

About Avalon Funk: Avalon is a Marketing Research Analyst for Swyft, which is a top tech PR firm in Houston and Austin and a top digital marketing and tech PR agency in Denver since its founding in 2011. Swyft recently opened a satellite office where it offers tech PR in San Francisco. Swyft was also listed as one of the top tech PR agencies in Texas by the B2B services review site

Related Articles

Houston startup

Houston’s Inc. 5000 Fastest Growing Companies

Since 1982, Inc. Magazine has been producing a list of the fastest growing private companies in the United States, providing an avenue for hardworking and dedicated entrepreneurs...

Posted on by Savannah Mazanowski
VC Firm

Top VC Firms in Austin

As Austin tech startups continue to close on dozens of funding rounds worth millions of dollars it’s important to look at another aspect of the market: venture capital...

Posted on by Savannah Mazanowski