South Loop Ventures has officially closed its inaugural $21 million fund to support the growth of early-stage companies with a particular focus on diverse founders and Houston’s industrial strengths. Founded in 2022 by Zach Ellis, the Houston-based venture firm drew anchor investments from Rice Management Company and Chevron Technology Ventures, signaling strong institutional backing for its mission to build a more inclusive and vibrant tech ecosystem in Texas and beyond.
Though the fund is national in scope, South Loop Ventures intends to channel a significant portion of its investments into founders based in Houston and the broader Gulf Coast region, where innovation in healthcare, energy, space, and climate is rapidly accelerating. The firm’s average check size is $400,000, and with 13 investments already made, it plans to back at least 30 companies in total.
The fund’s intent is clear: reshape the venture capital landscape by increasing access for underrepresented founders. “We thought it was important to have a fund focused on diverse founders here in Houston, given Houston’s diversity,” said Ellis. Ranked as one of the most diverse cities in the U.S., Houston offers a fertile ground for building companies that reflect the people they serve. Asked about the political pushback against diversity, equity, and inclusion efforts, Ellis’s answer was firm:
“We strongly believe that venture capital should be accessible to everyone and that underinvested and diverse teams offer a unique opportunity for significant returns”
A New Orleans native, Ellis brings a deeply mission-driven perspective to the firm. After serving seven years of active duty in the Navy, he transitioned to the corporate world as a healthcare consultant. His journey into venture capital began through corporate innovation work, later landing him a role at PepsiCo’s venture arm, where he focused on food and agri-tech partnerships and investments. He then joined Ohio State to manage a university fund, gaining experience in investing across Midwest startups and university spinouts.
Ellis’s trajectory was punctuated by a moment of clarity during the COVID-19 pandemic and the racial justice protests that followed the murder of George Floyd. Reflecting on his career and the lack of representation in rooms he occupied, he decided to build something different. That opportunity emerged when a friend in Houston suggested that the city was ready to rally behind a fund dedicated to backing founders of color—and had already been telling others that Ellis was the person for the job.
The road to closing the fund was long and, by Ellis’s own admission, grueling. “We began just as the market started to slow down, and it continued to become more challenging,” he said. “While we had strong initial momentum, it ultimately took us 24 months to complete.” Yet, through perseverance and strategic networking—bolstered by introductions from Mercury Fund and others in the Houston innovation ecosystem—Ellis pulled it together.
Now, with Fund I fully raised, Ellis is looking ahead. Beyond capital, he wants to attract top-tier tech talent to Houston and make the city a nationally recognized hub for startup activity. “People are naturally drawn to live here, which I believe will help attract top-tier founders who will see not only the business opportunities but also feel welcome and comfortable,” he said.
“With South Loop’s support, we aim to ensure they also feel empowered”
