Sandy Guitar, managing director of the HX Venture Fund and founder of Women Investing in VC in Houston

HX Venture Fund is co-hosting a free virtual event in partnership with Houston Exponential, Rice Alliance and Houston Angel Network for entrepreneurs and venture investors to plug into what's happening in Houston's innovation landscape. 

Venture Houston 2021, taking place February 4-5, will feature limited partner corporate CEOs and top portfolio VCs with HX Venture Fund, industry leaders, and entrepreneurs. The event will also feature live pitches on both days where judges will evaluate pre-seed through series B companies interested in venture backing and who have headquarters in the Houston region. Over $1.7 million of investment, cash and in-kind prizes will be awarded. Organizers say more than 260 Houston founders have applied to the pitch competition. 

Sandy Guitar, managing director of the HX Venture Fund, said the conference is a great example of the kind of collaboration the organization brings between venture capitalists, Houston corporations and Houston entrepreneurs. Guitar is also the founder of Women Investing in VC in Houston, a network of women who invest in venture capital.

We asked Guitar about what's happening within Houston's VC sector, as well as efforts to grow support female founders. 

How did you start your career in venture capital? 

I was actually working in the technology innovation area of a large oil and gas company when my boss said to me that she thought I’d do well in venture capital. I knew nothing about the area, but her husband ran a VC firm and was looking to add to his team. I applied for the job and have been in VC ever since. VC is a cottage industry, and there are few well-trodden career paths in, so I feel fortunate to have found an industry that I truly love. 

What prompted you to launch Women Investing in VC in Houston last year?

I’ve been living in Houston for over 15 years now, but much of that time was spent travelling back and forth to the Bay area. When in the Bay area, I had VC female role models all around me, but that wasn’t the case when [I was] in Houston.

I’ve since learned that my experience is not unique; 40% of female founders at a VC fund are in San Francisco, compared to just 5% in Houston, according to a recent Women in VC report. Given we are one of the most diverse cities in the United States, I find that astonishing. 

A few years ago, I was just not meeting women founders in Houston and I decided to fix that. A Google search led me to find a networking group called Women in VC in Austin. So, I literally cold called a woman in a related news article to find out more about that group, and, consequently, they encouraged me to form a Houston version. So, that’s what I did. I reached out to a handful of women in VC here in Houston, and invited others along. We’ve built a great informal and supportive network. Groups like this can provide incredible support, particularly in a small and highly networked industry like venture capital. It is so helpful to have a network of friends who have been through similar situations to you and are truly interested in sharing advice and insights.

What does the data tell us about female representation in the VC sector? Why do you think that’s the case?

The data says that about 5% of VC firms are led by women. That is shockingly low. It is changing, but change is slow. VC is an industry that is very network driven, and niche networks tend to breed more of the same. At first, you tend to see the change as venture firms bring in women in marketing and HR roles, an area I call the “pink ghetto”. I think it’s important for women to now move from the traditionally female roles to the investment committees of VC firms. Samantha Lewis of Mercury Fund explains bias well here.

I see change taking place, however. Men around the investment committee table are inviting women to join them, and that is what has to take place to change this dynamic.

You’re also the managing director of the HX Venture Fund. What role does this fund-of-funds play in Houston’s broader startup community?

HX Venture Fund is an exciting chapter for me. Guillermo Borda and I are building a venture capital firm that both produces strong returns for its Limited Partners (LPs), and which develops the tech ecosystem in Houston in meaningful ways. HX Venture Fund invests in VC firms that are genuinely interested in investing in the kinds of tech startups we have in Houston – from life sciences to Information technology, from seed and series A stages to growth equity stages of development. As a result, we have brought the attention of 11 venture funds representing $4 billion of dry powder to Houston. That’s a first.

What makes Houston a good place to start and grow a venture capital-backed business?

Houston is an amazing city recognized to have world-class talent in space, in energy, in the life sciences, and known as having one of the most diverse populations in the United States. Today, that talent is creating innovative tech companies solving the most important pain points in the world. In Houston, a founder can take a diverse idea, build a company on that idea with diverse talent, test the idea and find product market fit by selling into a diverse customer base - be it B2B or B2C - and collaborate with other founders within a supportive startup ecosystem, including a well-developed local angel and VC network.  

Houston has all the necessary ingredients to grow a great tech startup. We at HX Venture Fund are doing our part to bring these ingredients together. My partner Aleece Hobson is dedicated to helping any Houston-based founder find venture funding that makes sense for their company. HX Venture Fund LPs and other Houston-based corporations are ready to engage as customers to those companies, or as investors or eventually acquirers. 

Many say that Houston is a strong ecosystem, so “why not build your company in Houston.” I’d go further than that. I’d say, "where better to develop your company than Houston?"

See the Partnership's Q4/20 data on venture capital. Learn more about female-focused venture capital firms Curate Capital and The Artemis Fund.