South Loop Ventures Launches $21 Million Fund for Urban Entrepreneurs of Color

South Loop Ventures, a Houston-based venture capital firm, has recently launched its first $21 million fund, focusing on investing in entrepreneurs of color in Houston and similar urban ecosystems. The firm, founded by Zach Ellis, a former U.S. Naval Officer, aims to support problem-solving in sectors such as healthcare, biotech, and advanced materials. The fund has received backing from Rice Management Company, Chevron Technology Ventures, Texas Capital Bank, and The Great Commission Foundation of the Episcopal Diocese of Texas.

Ellis, who previously served as a manager at CVC PepsiCo Technology Ventures and managing director at Rev1 Ventures, believes in the power of intentional innovation. He argues that investing in diverse talent is not just a matter of fairness but a strategic move to solve societal problems and generate outsized returns. South Loop Ventures' portfolio includes companies like Milkify, a breast milk freeze-drying company, PraxisPro, a life science sales AI platform, SmartWiz, an AI-powered tax software, and CircNova, an AI drug discovery platform.

Houston, with its rich talent pool and economic strength, is a key focus for South Loop Ventures. The city is home to the third-most Fortune 500 companies in the country, providing a robust ecosystem for innovation. Ellis envisions Houston as a tech hub in its own right, distinct from Austin, leveraging its diverse talent and institutional strengths. The firm's strategy is to awaken and invest in this talent, fostering a high-potential market that remains underserved.

Ellis's approach is rooted in his personal experiences and the pride he takes in his own "south side" roots. He sees the firm's name, South Loop Ventures, as a symbol of the diverse communities across the country that have been historically marginalized but are now emerging as hubs of innovation. By investing in these communities, South Loop Ventures aims to create a more inclusive and innovative future.