South Loop Ventures, a private entity based in Houston, Texas, has reportedly secured $21 million to support diverse founders and emerging startups.
The fund known as Fund 1, according to officials, aims to invest in sectors reflecting Houston’s industrial strengths and attract more tech talent to the city.
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The firm, owned by Zach Ellis, seeks to invest in the energy, climate, space, sports, health, fintech, business-to-business, and software-as-a-service sectors.
South Loop Ventures says it aims to solve the challenge of inefficient distribution of capital in the United States.
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“Given Houston’s diversity, we thought it was important to have a fund focused on diverse founders here in Houston,” Company founder Mr Ellis told tech outlet, TechCrunch.
Officials say the company hopes to support entreprenuers of colour, and have so far invested in about 13 entities.
“I’ve always been a very mission-driven person, so after serving seven years active duty in the Navy, I transitioned to the corporate sector,” he noted.
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“We strongly believe that venture capital should be accessible to everyone and that underinvested and diverse teams offer a unique opportunity for significant returns,” he noted.
Ellis hails from New Orleans and began his career in the US Navy. He later worked as as a healthcare consultant, where he learnt how to use technology to help people with the mundane aspects of everyday life.
Ellis also made a stop at PepsiCo, where he performed a mix of technology scouting, corporate partnerships, and investing in food and agriculture-related funds. From there, he moved to commercialising research at Ohio State University.
