South Loop Ventures closes $21M fund in Houston to build up local tech ecosystem

South Loop Ventures, a Houston-based venture firm, announced a $21 million Fund I, with Rice Management Company and Chevron Technology Ventures serving as anchor investors. The firm, which launched in 2022, focuses on seed and pre-seed companies, with $400,000 as the average check size. It also primarily hopes to focus on backing founders of color. Zach Ellis, the firm’s founder and managing director, spoke to TechCrunch about his final close. He said the fund is general and will invest in founders nationwide, though it does have a preference for sectors that “reflect the industrial strength of Houston,” such as healthcare, energy, space, and climate. Texas Capital Bank and The Great Commission Foundation of the Episcopal Diocese of Texas also participated in the round. So far, South Loop has made 13 investments and hopes to invest in a total of at least 30. “We thought it was important to have a fund focused on diverse founders here in Houston, given Houston’s diversity,” he said ... Read full article.