Window-retrofitting climatetech company has raised its first round of funding. Photo via inovues.com

A Houston startup that retrofits windows with smart glass innovations to reduce energy use has raised its first round of funding.

INOVUES closed its seed round at $2.75 million last month. The oversubscribed round was led by Dallas-based Paulos Holdings with participation from new and existing investors, including Houston-based VC Fuel, Saint-Gobain NOVA, Fund4SE, Momentum Glass, Lateral Capital, E8 Angels, and the Central Texas Angel Network.

"Our mission is to help cities achieve their energy efficiency and emissions-reduction targets by increasing the rate of window upgrades in existing buildings," says INOVUES founder and CEO, Anas Al Kassas, in a news release. "To achieve that, we have developed a low-carbon, high-ROI retrofit solution that makes upgrading building windows a financially attractive energy conservation measure instead of a massive capital upgrade associated with business disruptions and prohibitive payback periods."

Up to 40 percent of the energy loss in buildings comes from windows, per the release, and buildings as a whole represent the largest energy-consuming sector. The climatech company's patented Glazing Shield system provides a lower cost and less intrusive solution to complete window replacement.

"INOVUES is a game-changer in the energy efficiency market because it has developed an innovative, patented building retrofit solution that significantly reduces the energy usage and carbon emissions of existing buildings at a fraction of the cost of more expensive standard building retrofit options," says Ahmad Atwan, founder and CEO of VC Fuel, in the release. "We are excited that INOVUES has been recognized as the industry leader by winning prestigious green building awards on both domestic and international levels. At a time when cities are encouraging, and sometimes mandating, building owners to reduce energy consumption and carbon emissions, INOVUES has become the logical solution to such challenges."

The fresh funding will go toward growing the INOVUES team, expanding commercialization efforts, and scaling its technology.

"INOVUES' technology can radically shrink the carbon footprint of 20th-century buildings and help commercial real estate owners meet their sustainability and ESG goals with no tenant disruption and in many cases with payback periods of less than five years plus incentives," says John Paulos, vice president of Paulos Holdings, in the release. "It is exciting for us to be a part of the journey INOVUES is taking to mitigate climate change and accelerate the transition to a sustainable cleaner world."

This week's roundup of Houston innovators includes Pamela Singh of CaseCTRL, Ahmad Atwan of VC Fuel, and Maggie Segrich of Sesh Coworking. Courtesy photos

3 Houston innovators to know this week

who's who

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from health tech to energy venture capital — recently making headlines in Houston innovation.


Pamela Singh, co-founder and CEO of CaseCTRL

Pamela Singh joins the Houston Innovators Podcast to discuss what's on the horizon for her health tech company. Photo courtesy of CaseCTRL

When COVID-19 shutdown all elective surgeries, Pamela Singh didn't know what would happen to her startup, CaseCTRL, which uses AI to optimize surgery scheduling. But, the back and forth nature of surgeries being allowed then not made for a huge need for CaseCTRL's platform to help medical facilities get back on track.

"COVID has had some sort of silver lining for us," Singh says, explaining that surgical facilities were looking for a way to catch up. "They realized the need for automating and streamlining their practice. And they realized that, instead of spending another four hours coordinating with patients and vendors, they could literally do it with the click of a button."

Singh shares more about her entrepreneurial journey and what's on the horizon for CaseCTRL, as well as her advice for fellow female founders in the podcast. Click here to read more and stream the full interview.

Ahmad Atwan, founder and CEO of VC Fuel

Ahmad Atwan founded VC Fuel in Houston to fund the future of the energy transition. Photo courtesy of VC Fuel

When Ahmad Atwan decided he was going to launch VC Fuel, a venture capital fund focused on early-stage energy transition startups, deciding where to start was easy. While there are similar funds on each of the coasts, Atwan learned that VC Fuel's concept was going to be kind of niche for Houston.

"Houston is the undisputed energy capital of the world," he tells InnovationMap. "So to me, especially when you're looking at energy transition sectors that have to work with the energy industry, it was a no brainer."

Atwan shares more about VC Fuel and the $100 million fund, which he's still raising for while also investing in a few startups at the same time, in an interview with InnovationMap. He also discusses how his expertise as a former founder and former private equity investor with Morgan Stanley and BlackRock makes him an opportune value-add investor. Click here to read more.

Maggie Segrich, co-founder and CFO of Sesh Coworking

Maggie Segrich (right) opened Sesh with Meredith Wheeler in 2020. Photo courtesy of Sesh

Maggie Segrich co-founded Sesh Coworking and the duo opened its first space in early 2020. Now, 18 months later, Sesh is growing. The female-founded, female-focused coworking company has also launched a crowdfunding campaign to support Sesh's growth.

The new coworking space is set to be in Midtown, but Sesh hasn't yet announced the specific location. The plan is to open to members at the beginning of 2022. The move will allow Sesh to offer private offices and dedicated desks, as well as other amenities members are looking for.

"Sesh never set out to be like other coworking spaces," she says. "We are on a mission to create a work space that isn't just four walls and a door. We began in 2017 by building our community first through pop-ups and then with our current space in Montrose. This new space carries on that tradition and mission of putting community first." Click here to read more.

Ahmad Atwan founded VC Fuel in Houston to fund the future of the energy transition. Photo courtesy of VC Fuel

Houston investor launches fund to fuel early-stage energy transition startups

Q&A

When Ahmad Atwan decided he was going to launch a venture capital fund focused on early-stage energy transition startups, Houston was a no brainer. But while there are similar funds on each of the coasts, Atwan learned that VC Fuel's concept was going to be kind of niche for Houston.

"We're the only early stage climate tech or energy transition firm in Houston right now, which is really surprising," Atwan tells InnovationMap, explaining that the Bay Area is home to dozens of these funds and there are even more on the East Coast. "I'm hoping there'll be more (similar funds in Houston), but it's also kind of a nice position to be in."

Atwan shares more about VC Fuel and the $100 million fund, which he's still raising for while also investing in a few startups at the same time, in an interview with InnovationMap. He also discusses how his expertise as a former founder and former private equity investor with Morgan Stanley and BlackRock makes him an opportune value-add investor.

InnovationMap: Why did you decide to start VC fuel?

AhmadAtwan: I decided to start VC fuel because I've been in the energy industry my entire career. I've been both an entrepreneur — I started two companies in the 2000s that I sold. One was a energy technology firm and one was a Brazilian ethanol company.

After that I was on the buy side buying pretty large private energy companies — anywhere from the size of $500 million to $2 billion. And over that whole time, energy was a very exciting industry and was growing very fast.

But as I saw climate change happening more rapidly and becoming more of a reality, and as I started looking and investing in some renewable energy sources, like wind and solar, I realized that's really where my passion was and what I wanted to do. And at the same time, the world was moving towards that as well, and investors really wanted to have exposure to new energy or energy transition areas.

IM: What are you looking for in potential investment opportunities?

AA: The areas that we focus on are all decarbonized and kind of all across the board, ranging from clean agriculture, hydrogen, carbon capture and storage or carbon capture and usage, to energy efficiency, clean industrial processes, and more. And I think these are areas that they right now comprise less than 2 percent of the global energy mix, but they're going to be north of 10, 15, 20 percent over time. So, these are high growth areas, and they are either lower, zero, or even negative emissions.

We're looking specifically for companies that we call seed stage or series A, generally, sometimes series B. So, they're companies that are relatively early in their development, but have some sort of commercial traction. And ones that are looking for not only a venture capital firm, but someone that can be their partner and help guide them and help them in certain areas, like raising their next round of funding, helping them get introduced to customers.

IM: With your experience, what do you feel like you bring to the table as a hands-on investor?

AA: I think in my decade-plus in private equity, when I was an investor on the boards of a company, I always tended to be one of the most involved in helping guide operations and working with senior management. And I think that's probably because I was a founder in the past, so I really identify with founders and I try to figure out with them what's the gap in their skillset or knowledge base that needs to be filled. Sometimes it's one that I can naturally help fill, which might be on the financial side or on the commercial side. And sometimes it's just bringing in other experts to help the company out.

But I think having been both on the founder and the private equity side, I think I empathize with the founder usually. And I would give this advice to all founders out there: the most important relationship they're going to have is with their lead venture capitalist, because that's going to be the defining relationship that helps them get to legitimacy in terms of the next round of funding. It's something that I kind of learned from friends in Silicon Valley. It's not only building the relationship for VC fuel — it's building a relationship with one of the individuals in our firm, whether it's me or one of my partners, and having them be really invested in the company.

IM: Why did you decide on Houston for VC Fuel's HQ?

AA: First of all, Houston is the undisputed energy capital of the world. So to me, especially when you're looking at energy transition sectors that have to work with the energy industry, it was a no brainer. For a lot of the technologies we deal with — like carbon capture — and the businesses we deal with, it's going to be essential for them to connect with the energy world.

I think a second reason, frankly, and I didn't realize this until we really got deep into the idea is that we're a little bit unique and we have a little bit of a competitive advantage. There are over 30 climate tech firms in the Bay Area, and there are a large number as well in New York and Boston. We're the only early stage climate tech or energy transition firm in Houston right now, which is really surprising. And I'm hoping there'll be more of those, but that's also kind of a nice position to be in because, as we see opportunities come out of the energy companies, and as we try to attract talent and grow, we think we have a pretty unique offering.

IM: What has being located in Greentown Houston meant for you?

AA: It's been fantastic. I think Houston did a great job of attracting Greentown here as the second location. Working out of here, we're able to interact in real time with everything from startup companies to major corporations. You get such a diverse set of people who are passionate about energy transition. It's actually already led to some opportunities to invest in, as well as to connect with some of the bigger companies that want to invest with us. It's been just a great coincidence that we launched here when Greentown opened. We'd much rather be here than any other type of working space. So, we're very excited.

IM: What keeps you up at night as it pertains to the energy transition?

AA: I would say the first thing is commercial adoption. All of our companies so far have great management teams — especially founders — and excellent technology, but there's that bridge to actually get the technology adopted by a customer. Sometimes you can have the best technology, and it just never happens. So, I'm keeping my eye on how much progress are we making with commercial customers. A lot of these are big companies — whether it's a waste management or a tech company, like a Microsoft — are getting into energy transition. Customer adoption in that area is a key metric for us.

The second big one — and this one's a little newer to me because I didn't face it as much in the past — is regulation. So many of the areas that we look at are going to have their economics determined by regulations that are literally being written right now. For example, the Cares Act the by the Biden administration is deciding things like what the level of tax credits will be for carbon capture. The carbon capture company we've invested in suddenly sees their projects become a lot more profitable if that figure is on the higher side. It's important to keep our ear to the ground on regulation and try to anticipate where it's going. That's why we have a couple people who are ex-Department of Energy on our advisory board because we like to have that skill set.

IM: What's next for VC Fuel?

AA: Our cadence of investing is that we invest in about one company every couple of months, which is pretty fast for a venture capital firm in energy transition. What's next is for our current companies to get to the next stage of evolution. There is one that I can't talk about specifically, but it might be getting sold to a really exciting buyer — and it's very good to have that kind of exit early on in a fund's life. And for the rest of our portfolio companies it's about continuing to get customers and next rounds of funding.

We've done a really good job of building a portfolio. That's not concentrated in any one area of energy transition. We will continue to look for a diverse set of companies that compliment each other, and that can help each other out. One area we continue to look at is not just the carbon capture, but also the carbon use space where you can turn carbon into something that's actually productive. Another area that we continue to look at is the electric vehicle space, but not just traditional EVs, but the next generation EV technology.

------

This conversation has been edited for brevity and clarity.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Houston-based lunar mission's rocky landing and what it means for America's return to the moon

houston, we have a problem

A private U.S. lunar lander tipped over at touchdown and ended up on its side near the moon’s south pole, hampering communications, company officials said Friday.

Intuitive Machines initially believed its six-footed lander, Odysseus, was upright after Thursday's touchdown. But CEO Steve Altemus said Friday the craft “caught a foot in the surface," falling onto its side and, quite possibly, leaning against a rock. He said it was coming in too fast and may have snapped a leg.

“So far, we have quite a bit of operational capability even though we’re tipped over," he told reporters.

But some antennas were pointed toward the surface, limiting flight controllers' ability to get data down, Altemus said. The antennas were stationed high on the 14-foot (4.3-meter) lander to facilitate communications at the hilly, cratered and shadowed south polar region.

Odysseus — the first U.S. lander in more than 50 years — is thought to be within a few miles (kilometers) of its intended landing site near the Malapert A crater, less than 200 miles (300 kilometers) from the south pole. NASA, the main customer, wanted to get as close as possible to the pole to scout out the area before astronauts show up later this decade.

NASA's Lunar Reconnaissance Orbiter will attempt to pinpoint the lander's location, as it flies overhead this weekend.

With Thursday’s touchdown, Intuitive Machines became the first private business to pull off a moon landing, a feat previously achieved by only five countries. Japan was the latest country to score a landing, but its lander also ended up on its side last month.

Odysseus' mission was sponsored in large part by NASA, whose experiments were on board. NASA paid $118 million for the delivery under a program meant to jump-start the lunar economy.

One of the NASA experiments was pressed into service when the lander's navigation system did not kick in. Intuitive Machines caught the problem in advance when it tried to use its lasers to improve the lander's orbit. Otherwise, flight controllers would not have discovered the failure until it was too late, just five minutes before touchdown.

“Serendipity is absolutely the right word,” mission director Tim Crain said.

It turns out that a switch was not flipped before flight, preventing the system's activation in space.

Launched last week from Florida, Odysseus took an extra lap around the moon Thursday to allow time for the last-minute switch to NASA's laser system, which saved the day, officials noted.

Another experiment, a cube with four cameras, was supposed to pop off 30 seconds before touchdown to capture pictures of Odysseus’ landing. But Embry-Riddle Aeronautical University’s EagleCam was deliberately powered off during the final descent because of the navigation switch and stayed attached to the lander.

Embry-Riddle's Troy Henderson said his team will try to release EagleCam in the coming days, so it can photograph the lander from roughly 26 feet (8 meters) away.

"Getting that final picture of the lander on the surface is still an incredibly important task for us,” Henderson told The Associated Press.

Intuitive Machines anticipates just another week of operations on the moon for the solar-powered lander — nine or 10 days at most — before lunar nightfall hits.

The company was the second business to aim for the moon under NASA's commercial lunar services program. Last month, Pittsburgh's Astrobotic Technology gave it a shot, but a fuel leak on the lander cut the mission short and the craft ended up crashing back to Earth.

Until Thursday, the U.S. had not landed on the moon since Apollo 17's Gene Cernan and Harrison Schmitt closed out NASA's famed moon-landing program in December 1972. NASA's new effort to return astronauts to the moon is named Artemis after Apollo's mythological twin sister. The first Artemis crew landing is planned for 2026 at the earliest.

3 female Houston innovators to know this week

who's who

Editor's note: Welcome to another Monday edition of Innovators to Know. Today I'm introducing you to three Houstonians to read up about — three individuals behind recent innovation and startup news stories in Houston as reported by InnovationMap. Learn more about them and their recent news below by clicking on each article.

Emma Konet, co-founder and CTO of Tierra Climate

Emma Konet, co-founder and CTO of Tierra Climate, joins the Houston Innovators Podcast. Photo via LinkedIn

If the energy transition is going to be successful, the energy storage space needs to be equipped to support both the increased volume of energy needed and new energies. And Emma Konet and her software company, Tierra Climate, are targeting one part of the equation: the market.

"To me, it's very clear that we need to build a lot of energy storage in order to transition the grid," Konet says on the Houston Innovators Podcast. "The problems that I saw were really on the market side of things." Read more.

Cindy Taff, CEO of Sage Geosystems

Houston-based Sage Geosystems announced the first close of $17 million round led by Chesapeake Energy Corp. Photo courtesy of Sage

A Houston geothermal startup has announced the close of its series A round of funding.

Houston-based Sage Geosystems announced the first close of $17 million round led by Chesapeake Energy Corp. The proceeds aim to fund its first commercial geopressured geothermal system facility, which will be built in Texas in Q4 of 2024. According to the company, the facility will be the first of its kind.

“The first close of our Series A funding and our commercial facility are significant milestones in our mission to make geopressured geothermal system technologies a reality,” Cindy Taff, CEO of Sage Geosystems, says. Read more.

Clemmie Martin, chief of staff at The Cannon

With seven locations across the Houston area, The Cannon's digital technology allows its members a streamlined connection. Photo courtesy of The Cannon

After collaborating over the years, The Cannon has acquired a Houston startup's digital platform technology to become a "physical-digital hybrid" community.

Village Insights, a Houston startup, worked with The Cannon to create and launch its digital community platform Cannon Connect. Now, The Cannon has officially acquired the business. The terms of the deal were not disclosed.

“The integration of a world-class onsite member experience and Cannon Connect’s superior virtual resource network creates a seamless, streamlined environment for member organizations,” Clemmie Martin, The Cannon’s newly appointed chief of staff, says in the release. “Cannon Connect and this acquisition have paved new pathways to access and success for all.” Read more.

Texas organization grants $68.5M to Houston institutions for recruitment, research

Three prominent institutions in Houston will be able to snag a trio of high-profile cancer researchers thanks to $12 million in new funding from the Cancer Prevention and Research Institute of Texas.

The biggest recruitment award — $6 million — went to the University of Texas MD Anderson Center to lure researcher Xiling Shen away from the Terasaki Institute for Biomedical Innovation in Los Angeles.

Shen is chief scientific officer at the nonprofit Terasaki Institute. His lab there studies precision medicine, including treatments for cancer, from a “systems biology perspective.”

He also is co-founder and former CEO of Xilis, a Durham, North Carolina-based oncology therapy startup that raised $70 million in series A funding in 2021. Before joining the institute in 2021, the Stanford University graduate was an associate professor at Duke University in Durham.

Shen and Xilis aren’t strangers to MD Anderson.

In 2023, MD Anderson said it planned to use Xilis’ propriety MicroOrganoSphere (MOS) technology for development of novel cancer therapies.

“Our research suggests the MOS platform has the potential to offer new capabilities and to improve the efficiency of developing innovative drugs and cell therapies over current … models, which we hope will bring medicines to patients more quickly,” Shen said in an MD Anderson news release.

Here are the two other Cancer Prevention and Research Institute of Texas (CPRIT) awards that will bring noted cancer researchers to Houston:

  • $4 million to attract David Sarlah to Rice University from the University of Illinois, where he is an associate professor of chemistry. Sarlah’s work includes applying the principles of chemistry to creation of new cancer therapies.
  • $2 million to lure Vishnu Dileep to the Baylor College of Medicine from the Massachusetts Institute of Technology (MIT), where he is a postdoctoral fellow. His work includes the study of cancer genomes.

CPRIT also handed out more than $56.5 million in grants and awards to seven institutions in the Houston area. Here’s the rundown:

  • MD Anderson Cancer Center — Nearly $25.6 million
  • Baylor College of Medicine — Nearly $11.5 million
  • University of Texas Health Science Center at Houston — More than $6 million
  • Rice University — $4 million
  • University of Texas Medical Branch at Galveston — More than $3.5 million
  • Methodist Hospital Research Institute — More than $3.3 million
  • University of Houston — $1.4 million

Dr. Pavan Reddy, a CPRIT scholar who is a professor at the Baylor College of Medicine and director of its Dan L Duncan Comprehensive Cancer Care Center, says the CPRIT funding “will help our investigators take chances and explore bold ideas to make innovative discoveries.”

The Houston-area funding was part of nearly $99 million in grants and awards that CPRIT recently approved.