Ellis, originally from New Orleans and a former Navy officer, transitioned to venture capital after roles in healthcare consulting and corporate innovation. His journey included positions at PepsiCo and Ohio State, where he managed investments in Midwest-focused VC funds. The idea for South Loop Ventures emerged during the pandemic and following the George Floyd murder, as Ellis sought to address the lack of diversity in venture capital. Despite challenges in fundraising due to market conditions, Ellis completed the process in 24 months, aided by connections through Mercury Fund. He aims to attract tech talent to Houston and empower diverse founders to build successful ventures.
Key takeaways:
- South Loop Ventures, a Houston-based venture firm, announced a $21 million Fund I, focusing on seed and pre-seed companies, with a preference for founders of color.
- The fund is anchored by Rice Management Company and Chevron Technology Ventures, with additional participation from Texas Capital Bank and The Great Commission Foundation of the Episcopal Diocese of Texas.
- Zach Ellis, the founder, aims to invest in sectors reflecting Houston's industrial strengths, such as healthcare, energy, space, and climate, and has already made 13 investments.
- Ellis, originally from New Orleans and with a background in the military and corporate sector, was inspired to create the fund to address the lack of diversity in venture capital and support Houston's growing tech scene.