South Loop Ventures just became one of Chicago’s newest venture capital firms. They’ve raised an impressive $21 million mission-funds to nourish and accelerate the tech and innovation ecosystem blossoming across Houston. Zach Ellis started the firm in 2022 and is its president. The firm focuses on seed and pre-seed investments, with a goal of supporting more founders of color. The firm hopes to have a deep impact, investing in at least 30 companies in the next few years.
New Orleans native Ellis brings a distinctive blend of military and corporate experience to the role. Ryan completed seven years of active duty in the Navy before going into the private sector, where he continues today. In all, his varied experiences have gone on to help inform his vision for South Loop Ventures. He started this initiative to address the gaps in venture capital access experienced by underrepresented groups.
Ellis said that they homegrown it was important to do a fund specifically for diverse founders in Houston. This decision is a demonstration of the city’s vibrant diversity.
Since launching, South Loop Ventures has deployed into 13 deals so far, with an average check size of $400,000. The company is equally intent on directing its capital toward industries that align with Houston’s economic competitive advantages. These sectors are epitomized by healthcare, energy, space and climate initiatives.
“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 explained. That commitment to equity is what drives South Loop’s investment strategy.
The work of raising the fund took South Loop Ventures 24 months to raise. As he served in this role, Ellis found himself contemplating his personal career and the greater implications of his work. He spoke to how things like the pandemic and the murder of George Floyd impacted him personally. These events encouraged him to reflect on his contributions in a very homogenous environment.
“It was around that time that the pandemic happened, the George Floyd murder happened, and I was able to reflect on my career and the impact I was having and the fact that I was often the only Black or brown face in any room that I was in,” Ellis shared.
Ellis was optimistic about Houston’s future as a friendly home for elite founders. “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 feel welcome and comfortable,” he stated.
The firm’s mission reaches beyond just monetary investment, as it seeks to empower the founders it works with through ongoing mentorship and support. “With South Loop’s support, we aim to ensure they feel empowered,” he added.
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