Top Houston-based sustainability startups share their 4 biggest challenges

houston innovation awards

The six finalists for the sustainability category for the 2023 Houston Innovation Awards weigh in on their challenges overcome. Photos courtesy

Six Houston-area sustainability startups have been named finalists in the 2023 Houston Innovation Awards, but they didn't achieve this recognition — as well as see success for their businesses — without any obstacles.

The finalists were asked what their biggest challenges have been. From funding to market adoption, the sustainability companies have had to overcome major obstacles to continue to develop their businesses.

The awards program — hosted by InnovationMap, and Houston Exponential — will name its winners on November 8 at the Houston Innovation Awards. The program was established to honor the best and brightest companies and individuals from the city's innovation community. Eighteen energy startups were named as finalists across all categories, but the following responses come from the finalists in the sustainability category specifically.

Click here to secure your tickets to see who wins.

1. Securing a commercial pilot

"As an early-stage clean energy developer, we struggled to convince key suppliers to work on our commercial pilot project. Suppliers were skeptical of our unproven technology and, given limited inventory from COVID, preferred to prioritize larger clients. We overcame this challenge by bringing on our top suppliers as strategic investors. With a long-term equity stake in Fervo, leading oilfield services companies were willing to provide Fervo with needed drilling rigs, frack crews, pumps, and other equipment." — Tim Latimer, founder and CEO of Fervo Energy

2. Finding funding

"Securing funding in Houston as a solo cleantech startup founder and an immigrant with no network. Overcome that by adopting a milestone-based fundraising approach and establishing credibility through accelerator/incubator programs." — Anas Al Kassas, CEO and founder of INOVUES

"The biggest challenge has been finding funding. Most investors are looking towards software development companies as the capital costs are low in case of a risk. Geothermal costs are high, but it is physical technology that needs to be implemented to safety transition the energy grid to reliable, green power." — Cindy Taff, CEO of Sage Geosystems

3. Market adoption

"Market adoption by convincing partners and government about WHP as a solution, which is resource-intensive. Making strides by finding the correct contacts to educate." — Janice Tran, CEO and co-founder of Kanin Energy

"We are creating a brand new financial instrument at the intersection of carbon markets and power markets, both of which are complicated and esoteric. Our biggest challenge has been the cold-start problem associated with launching a new product that has effectively no adoption. We tackled this problem by leading the Energy Storage Solutions Consortium (a group of corporates and battery developers looking for sustainability solutions in the power space), which has opened up access to customers on both sides of our marketplace. We have also leveraged our deep networks within corporate power procurement and energy storage development to talk to key decision-makers at innovative companies with aggressive climate goals to become early adopters of our products and services." — Emma Konet, CTO and co-founder of Tierra Climate

4. Long scale timelines

"Scaling and commercializing industrial technologies takes time. We realized this early on and designed the eXERO technology to be scalable from the onset. We developed the technology at the nexus of traditional electrolysis and conventional gas processing, taking the best of both worlds while avoiding their main pitfalls." — Claus Nussgruber, CEO of Utility Global

------

This article originally ran on EnergyCapital.

This week's roundup of Houston innovators includes Emma Fauss of Medical Informatics Corp., Anas Al Kassas of INOVUES, and Scott Blair of Popable. Photos courtesy

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 efficiency — recently making headlines in Houston innovation.

Emma Fauss, CEO and co-founder of Medical Informatics Corp.

A Houston startup that created a remote monitoring and care platform has raised millions in financing. Image via michealthcare.com

Houston-based Medical Informatics Corp. closed a $17 million series B co-led by Maryland-based Catalio Capital Management and California-based Intel Capital. The financing also includes an additional $10 million in debt led by Catalio through Catalio’s structured equity strategy, according to a news release.

“We are excited to have had this round co-led by Catalio and Intel Capital," says Emma Fauss, CEO and co-founder of MIC, in the release. "Catalio brings significant financial and technical resources, while Intel Capital possesses strong operational and industry experience, and we look forward to continuing to leverage both firms’ expertise as we continue to scale.”

MIC created an FDA-cleared virtual care platform, called Sickbay, that gives health care providers and hospitals away to remotely monitor patients in any setting with vendor-neutral real-time medical device integration, workflow automation and standardization. Click here to read more.

Anas Al Kassas, founder and CEO of INOVUES

INOVUES Founder and CEO Anas Al Kassas joins the Houston Innovators Podcast to discuss how he’s moving the needle on the energy transition within the construction and architectural industries. Photo courtesy of INOVUES

An architect by trade, Anas Al Kassas says he was used to solving problems in his line of work. Each project architects take on requires building designers to be innovative and creative. A few years ago, Kassas took his problem-solving background into the entrepreneurship world to scale a process that allows for retrofitting window facades for energy efficiency.

“If you look at buildings today, they are the largest energy-consuming sector — more than industrial and more than transportation,” Kassas, founder and CEO of INOVUES, says on the Houston Innovators Podcast. “They account for up to 40 percent of energy consumption and carbon emissions.”

To meet their climate goals, companies within the built environment are making moves to transition to electric systems. This has to be done with energy efficiency in mind, otherwise it will result in grid instability.

"Energy efficiency goes hand in hand with energy transition," he explains. Read more.

Scott Blair, CEO and co-founder of Popable

Walmart and Popable are teaming up just in time for the holiday shopping season. Image courtesy of Popable

With the holidays in full swing, and small businesses looking to gain back revenues lost during the COVID-19 pandemic, Walmart and Houston-based Popable are providing the opportunity to display and sell their products at Walmart can be highly beneficial to recoup profits, and unload new and extra products to a larger audience.

“Going into the holidays the timing is pretty good for a lot of brands looking to move some access inventory that they have loaded up from last year, but this (hopefully with Walmart) will be a year-round thing,” says Popable CEO and co-founder Scott Blair. “The pop-up opportunities we’ve been seeing with brands doing reach outs so far, a lot of them are looking for stuff into January and February too.”

Popable has assisted brands secure qualified spaces, get education and resources, and build community, and connections that are vital to helping small businesses expand their visibility in the marketplace. The platform simultaneously helps retail landlords find qualified retailers from a directory of tens of thousands of brands to fill vacancies and drive traffic to their shopping centers. Read more.

Houston innovator on seeing a greener future on built environment

HOUSTON INNOVATORS PODCAST EPISODE 163

"Energy efficiency goes hand in hand with energy transition," he explains.

Kassas says that he first had the idea for his company when he was living in Boston. He chose to start the business in Houston, attracted to the city by its central location, affordable labor market, and manufacturing opportunities here.

Last year, INOVUES raised its first round of funding — a $2.75 million seed round — to scale up the team and identify the best markets to target customers. Kassas says he was looking for regions with rising energy rates and sizable incentives for companies making energy efficient changes.

"We were able to now implement our technology in over 4 million square feet of building space — from Boston, Seattle, Los Angeles, New York City, Portland, and very soon in Canada," he says.

Notably missing from that list is any Texas cities. Kassas says that he believes Houston is a great city for startups and he has his operations and manufacturing is based here, but he's not yet seen the right opportunity and adaption

"Unfortunately most of our customers are not in Texas," he says. "A lot of work can be done here to incentivize building owners. There are a lot of existing buildings and construction happening here, but there has to be more incentives."

Kassas shares more about his growth over the past year, as well as what he has planned for 2023 on the podcast. Listen to the interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

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

Houston startup raises $2.75M to make buildings more energy efficient

seeing green

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."

Ad Placement 300x100

Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

World's largest student startup competition names teams for 2025 Houston event

ready, set, pitch

The Rice Alliance for Technology and Entrepreneurship has announced the 42 student-led teams worldwide that will compete in the 25th annual Rice Business Plan Competition this spring.

The highly competitive event, known as one of the world’s largest and richest intercollegiate student startup challenges, will take place April 10–12 at Houston's The Ion. Teams in this year's competition represent 34 universities from four countries, including one team from Rice.

Graduate student-led teams from colleges or universities around the world will present their plans before more than 300 angel, venture capital, and corporate investors to compete for more than $1 million in prizes. Last year, top teams were awarded $1.5 million in investment and cash prizes.

The 2025 invitees include:

3rd-i, University of Miami
AG3 Labs, Michigan State University
Arcticedge Technologies, University of Waterloo
Ark Health, University of Chicago
Automatic AI, University of Mississippi and University of New Orleans
Bobica Bars, Rowan University
Carbon Salary, Washington University in St. Louis
Carmine Minerals, California State University, San Bernardino
Celal-Mex, Monterrey Institute of Technology and Higher Education
CELLECT Laboratories, University of Waterloo
ECHO Solutions, University of Houston
EDUrain, University of Missouri-St. Louis
Eutrobac, University of California, Santa Cruz
FarmSmart.ai, Louisiana State University
Fetal Therapy Technologies, Johns Hopkins University
GreenLIB Materials, University of Ottawa
Humimic Biosystems, University of Arkansas
HydroHaul, Harvard University
Intero Biosystems, University of Michigan
Interplay, University of Missouri-Kansas City
MabLab, Harvard University
Microvitality, Tufts University
Mito Robotics, Carnegie Mellon University
Motmot, Michigan State University
Mud Rat, University of Connecticut
Nanoborne, University of Texas at Austin
NerView Surgical, McMaster University
NeuroFore, Washington University in St. Louis
Novus, Stanford University
OAQ, University of Toronto
Parthian Baattery Solutions, Columbia University
Pattern Materials, Rice University
Photon Queue, University of Illinois, Urbana-Champaign
re.solution, RWTH Aachen University
Rise Media, Yale University
Rivulet, University of Cambridge and Dartmouth College
Sabana, Carnegie Mellon University
SearchOwl, Case Western Reserve University
Six Carbons, Indiana University
Songscription, Stanford University
Watermarked.ai, University of Illinois, Urbana-Champaign
Xatoms, University of Toronto

This year's group joins more than 868 RBPC alums that have raised more than $6.1 billion in capital with 59 successful exits, according to the Rice Alliance.

Last year, Harvard's MesaQuantum, which was developing accurate and precise chip-scale clocks, took home the biggest sum of $335,000. While not named as a finalist, the team secured the most funding across a few prizes.

Protein Pints, a high-protein, low-sugar ice cream product from Michigan State University, won first place and the $150,000 GOOSE Capital Investment Grand Prize, as well as other prizes, bringing its total to $251,000.

Tesla recalling more than 375,000 vehicles due to power steering issue

Tesla Talk

Tesla is recalling more than 375,000 vehicles due to a power steering issue.

The recall is for certain 2023 Model 3 and Model Y vehicles operating software prior to 2023.38.4, according to the National Highway Traffic Safety Administration.

The printed circuit board for the electronic power steering assist may become overstressed, causing a loss of power steering assist when the vehicle reaches a stop and then accelerates again, the agency said.

The loss of power could required more effort to control the car by drivers, particularly at low speeds, increasing the risk of a crash.

Tesla isn't aware of any crashes, injuries, or deaths related to the condition.

The electric vehicle maker headed by Elon Musk has released a free software update to address the issue.

Letters are expected to be sent to vehicle owners on March 25. Owners may contact Tesla customer service at 1-877-798-3752 or the NHTSA at 1-888-327-4236.

Houston space tech companies land $25 million from Texas commission

Out Of This World

Two Houston aerospace companies have collectively received $25 million in grants from the Texas Space Commission.

Starlab Space picked up a $15 million grant, and Intuitive Machines gained a $10 million grant, according to a Space Commission news release.

Starlab Space says the money will help it develop the Systems Integration Lab in Webster, which will feature two components — the main lab and a software verification facility. The integration lab will aid creation of Starlab’s commercial space station.

“To ensure the success of our future space missions, we are starting with state-of-the-art testing facilities that will include the closest approximation to the flight environment as possible and allow us to verify requirements and validate the design of the Starlab space station,” Starlab CEO Tim Kopra said in a news release.

Starlab’s grant comes on top of a $217.5 million award from NASA to help eventually transition activity from the soon-to-be-retired International Space Station to new commercial destinations.

Intuitive Machines is a space exploration, infrastructure and services company. Among its projects are a lunar lander designed to land on the moon and a lunar rover designed for astronauts to travel on the moon’s surface.

The grants come from the Space Commission’s Space Exploration and Aeronautics Research Fund, which recently awarded $47.7 million to Texas companies.

Other recipients were:

Cedar Park-based Firefly Aerospace, which received $8.2 million
Brownsville-based Space Exploration Technologies (SpaceX), which received $7.5 million
Van Horn-based Blue Origin, which received $7 million

Gwen Griffin, chair of the commission, says the grants “will support Texas companies as we grow commercial, military, and civil aerospace activity across the state.”

State lawmakers established the commission in 2023, along with the Texas Aerospace Research & Space Economy Consortium, to bolster the state’s space industry.

View All Listings

INNOVATIONMAP EMAILS ARE AWESOME