South Loop Ventures, a Houston-based micro-venture capital firm, is having a huge impact on the Texas investment ecosystem. Zach Ellis, a former government planner, founded and leads the firm. Their recently announced inaugural $21 million fund is further evidence of this commitment to the region’s rapidly developing innovation ecosystem. Ellis, a former U.S. Naval Officer, has recently been selected as a Kauffman Fellow. Now he is methodically hoping to leverage that diverse pool of talent and economic potential to generate world-class returns.

The firm's name, South Loop Ventures, is a direct reference to Houston's South Loop, a vibrant area that connects several historically diverse neighborhoods. This campus rests within earshot of the historically Black Third Ward, Beyoncé’s birthplace. First, Ellis wants to fully embrace and celebrate the area’s rich cultural tapestry. South Loop Ventures’ investment reach extends well past the boundaries of Houston. We are inspired by their optimism and conviction in the extraordinary possibilities awaiting Texas.

Investing in Texas' Growth

Texas is the state of the moment, growing faster than almost anywhere else, including four of the ten fastest growing counties in the United States by percent increase. This population boom not only drives economic expansion, but forms a rich landscape for innovation in many sectors. Ellis understands the special opportunity that exists in Texas. His goal is to tap into its creative talent, cultural institutions and strong economic base.

Yet none are as safe as Houston, which has been historically approached climate change as a business and industry opportunity.

Houston has the third-most Fortune 500 companies of any city in the country. - Ellis

This combination of crazily concentrated corporate giants provides a remarkably fertile ground for startups and entrepreneurs, creating opportunities for collaboration, partnership and angel investment. South Loop Ventures is strategically positioned to leverage these advantages and support the growth of promising companies in the region.

Ellis's decision to focus on Texas is driven by a belief in the region's untapped potential. He sees a goldmine of opportunities lying just beyond the horizon to identify and support those innovative companies to create enormous returns for investors. Ambrose is currently making active investments through South Loop Ventures in early-stage, for-profit ventures. Their intent is to impact the long-term direction of Texas’ economy.

Championing Diverse Founders

South Loop Ventures Their emphasis on location goes beyond just geography as they intentionally aim to fund diverse founders. Ellis has focused on making the case to invest in historically underserved communities. He knows that diverse entrepreneurs bring fresh, untested ideas and perspectives that enhance innovation.

It's not just Chicago, there are all these regions around the country where diverse communities are. - Ellis

Ellis envisions building on Texas’ world-class talent, research institutions, and economic strength to produce outsized returns. This commitment to diversity is not just about social responsibility — it’s a strategic business imperative. According to Ellis, having diverse teams improves their chances of creating innovative solutions and having a better shot at winning new markets.

I don't do this out of a sense of fairness. - Ellis

South Loop Ventures goes even further to strategically target diverse founders. By uplifting them, the organization hopes to contribute to the building of a more inclusive and equitable entrepreneurial ecosystem. This strategy strengthens the firms’ portfolio companies. It additionally improves the long-term economic vitality of the area.

Portfolio Highlights

South Loop Ventures has thus far established a wildly diverse portfolio of companies across industries and states. These strategic investments underscore the firm’s dedication to fostering advanced, disruptive startups with a propensity for explosive growth.

One particular example of interest is Milkify, a company that provides an innovative service to freeze-dry breast milk. This unique solution is a way to offer convenience and flexibility for on-the-go breastfeeding mothers, helping them store their precious milk for future usage. A second portfolio company, PraxisPro, offers a life science sales AI platform that empowers sales reps to enhance their workflows and productivity.

The firm’s portfolio has another recent addition in SmartWiz, an AI-powered tax software that makes it easier for individuals and small businesses to prepare taxes. Additionally, South Loop Ventures has invested in CircNova, an AI drug discovery platform that aims to accelerate the development of new treatments for various diseases. South Loop Ventures is dedicated to the success of companies building the future with technology. By making equitable investments, they hope to solve complex issues and create social return.