University of Houston spinout's smartphone COVID-19 test to head to market

Pandemic innovation

Luminostics, which was founded out of a lab at UH, received NIH grant to produce its COVID-19 rapid antigen test. Photo courtesy of Luminostics

A Silicon Valley startup with Houston roots is helping tackle the COVID-19 pandemic with its smartphone-based coronavirus test.

Milpitas, California-based Luminostics, a University of Houston spinout, is producing millions of its Clip COVID Rapid Antigen Test for U.S. consumers after receiving emergency authorization for the product in December. The emergency approval closely followed the National Institutes of Health awarding a $26.1 million contract to Luminostics to speed up development of the coronavirus test. According to a news release from UH, Luminostics is working on an affordable next generation hardware system to reach the mass over-the-counter market at scale.

Chemical engineers and UH alumni Bala Raja, the CEO, and Andrew Paterson, the chief technology officer, began forming their company in the UH lab of Richard Willson, a professor of chemical and biomolecular engineering and professor of biochemical and biophysical sciences.

The technology developed in the UH lab aims to equip consumers with rapid self-diagnostic tests for the flu, HIV, herpes, and other conditions by detecting the presence of bacteria, viruses, small molecules, hormones, and proteins. But Raja and Paterson put that strategy on hold last year and pivoted to re-engineering their technology for COVID-19 testing. The result: the Clip COVID Rapid Antigen Test.

"When we realized that COVID wasn't just a bad flu and that it was actually gonna go crazy and affect as many people as it has, we decided that everything we've done could be very quickly repurposed to make two different tests," Raja told Inc. magazine in April.

UH alumni Andrew Paterson and Bala Raja are co-founders of Luminostics. Photo via UH.edu

As UH explains, the Clip COVID test relies on a nasal swab, a smartphone clip, and glow-in-the-dark nanoparticles to detect a coronavirus infection within 30 minutes. In the phone, an image processor measures the intensity of the luminescence signal. If the signal is strong enough, the result is positive. If it's weak, the result is negative.

"We live in a world where you can have all your basic necessities delivered to your home through an app, and yet this pandemic has exposed how far behind the diagnostics industry lags compared to consumer technology and the convenience economy," Paterson tells UH.

Funding from the National Institutes of Health, venture capital firm Khosla Ventures, investment firm Lynette Capital, and startup accelerator Y Combinator has helped support the Clip COVID Rapid Antigen Test. The startup entered the Y Combinator program in 2016, a year after Raja and Paterson established Luminostics.

In April 2020, French pharmaceutical giant Sanofi said it was exploring a collaboration with Luminostics on the COVID-19 test.

"The diagnostics industry is saturated with products that cater to big, centralized labs or testing in the doctor's office," Paterson says. "There are many applications where it does make sense to do testing in a centralized lab, but there are dozens of other applications where there should be home-tests and there are not, because few companies have tried to take on the technical and regulatory challenges with developing home-testing."

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Innovative Houston-area hardtech startup closes $5M seed round

fresh funding

Conroe-based hardtech startup FluxWorks has closed a $5 million seed round.

The funding was led by Austin-based Scout Ventures, which invests in early-stage startups working to solve national security challenges.

Michigan Capital Network also contributed to the round from its MCN Venture Fund V. The fund is one of 18 selected by the Department of Defense and Small Business Administration to participate in the Small Business Investment Company Critical Technologies Initiative, which will invest $4 billion into over 1,700 portfolio companies.

FluxWorks reports that it will use the funding to drive the commercialization of its flagship Celestial Gear technology.

"At Scout, we invest in 'frontier tech' that is essential to national interest. FluxWorks is doing exactly that by solving critical hardware bottlenecks with its flagship Celestial Gear technology ... This is about more than just gears; it’s about strengthening our industrial infrastructure," Scout Ventures shared in a LinkedIn post.

Fluxworks specializes in making contactless magnetic gears for use in extreme conditions, which can enhance in-space manufacturing. Its contactless design leads to less wear, debris and maintenance. Its technology is particularly suited for space applications because it does not require lubricants, which can be difficult to control at harsh temperatures and in microgravity.

The company received a grant from the Texas Space Commission last year and was one of two startups to receive the Technology in Space Prize, funded by Boeing and the Center for the Advancement of Science in Space (CASIS), in 2024. It also landed $1.2 million through the National Science Foundation's SBIR Phase II grant this fall.

Fluxworks was founded in College Station by CEO Bryton Praslicka in 2021. Praslicka moved the company to Conroe 2024.

5 Houston scientists named winners of prestigious Hill Prizes 2026

prized research

Five Houston scientists were recognized for their "high-risk, high-reward ideas and innovations" by Lyda Hill Philanthropies and the Texas Academy of Medicine, Engineering, Science and Technology (TAMEST).

The 2026 Hill Prizes provide seed funding to top Texas researchers. This year's prizes were given out in seven categories, including biological sciences, engineering, medicine, physical sciences, public health and technology, and the new artificial intelligence award.

Each recipient’s institution or organization will receive $500,000 in direct funding from Dallas-based Lyda Hill Philanthropies. The organization has also committed to giving at least $1 million in discretionary research funding on an ad hoc basis for highly-ranked applicants who were not selected as recipients.

“It is with great pride that I congratulate this year’s Hill Prizes recipients. Their pioneering spirit and unwavering dedication to innovation are addressing some of the most pressing challenges of our time – from climate resilience and energy sustainability to medical breakthroughs and the future of artificial intelligence,” Lyda Hill, founder of Lyda Hill Philanthropies, said in a news release.

The 2026 Houston-area recipients include:

Biological Sciences: Susan M. Rosenberg, Baylor College of Medicine

Rosenberg and her team are developing ways to fight antibiotic resistance. The team will use the funding to screen a 14,000-compound drug library to identify additional candidates, study their mechanisms and test their ability to boost antibiotic effectiveness in animal models. The goal is to move toward clinical trials, beginning with veterans suffering from recurrent infections.

Medicine: Dr. Raghu Kalluri, The University of Texas MD Anderson Cancer Center

Kalluri is developing eye drops to treat age-related macular degeneration (AMD), the leading cause of vision loss globally. Kalluri will use the funding to accelerate studies and support testing for additional ocular conditions. He was also named to the National Academy of Inventors’ newest class of fellows last month.

Engineering: Naomi J. Halas, Rice University

Co-recipeints: Peter J. A. Nordlander and Hossein Robatjazi, Rice University

Halas and her team are working to advance light-driven technologies for sustainable ammonia synthesis. The team says it will use the funding to improve light-driven catalysts for converting nitrogen into ammonia, refine prototype reactors for practical deployment and partner with industry collaborators to advance larger-scale applications. Halas and Nordlander are co-founders of Syzygy Plasmonics, and Robatjazi serves as vice president of research for the company.

The other Texas-based recipients include:

  • Artificial Intelligence: Kristen Grauman, The University of Texas at Austin
  • Physical Sciences: Karen L. Wooley, Texas A&M University; Co-Recipient: Matthew Stone, Teysha Technologies
  • Public Health: Dr. Elizabeth C. Matsui, The University of Texas at Austin and Baylor College of Medicine
  • Technology: Kurt W. Swogger, Molecular Rebar Design LLC; Co-recipients: Clive Bosnyak, Molecular Rebar Design, and August Krupp, MR Rubber Business and Molecular Rebar Design LLC

Recipients will be recognized Feb. 2 during the TAMEST 2026 Annual Conference in San Antonio. They were determined by a committee of TAMEST members and endorsed by a committee of Texas Nobel and Breakthrough Prize Laureates and approved by the TAMEST Board of Directors.

“On behalf of TAMEST, we are honored to celebrate the 2026 Hill Prizes recipients. These outstanding innovators exemplify the excellence and ambition of Texas science and research,” Ganesh Thakur, TAMEST president and a distinguished professor at the University of Houston, added in the release. “Thanks to the visionary support of Lyda Hill Philanthropies, the Hill Prizes not only recognize transformative work but provide the resources to move bold ideas from the lab to life-changing solutions. We are proud to support their journeys and spotlight Texas as a global hub for scientific leadership.”

Investment bank opens new Houston office focused on energy sector

Investment bank Cohen & Co. Capital Markets has opened a Houston office to serve as the hub of its energy advisory business and has tapped investment banking veteran Rahul Jasuja as the office’s leader.

Jasuja joined Cohen & Co. Capital Markets, a subsidiary of financial services company Cohen & Co., as managing director, and head of energy and energy transition investment banking. Cohen’s capital markets arm closed $44 billion worth of deals last year.

Jasuja previously worked at energy-focused Houston investment bank Mast Capital Advisors, where he was managing director of investment banking. Before Mast Capital, Jasuja was director of energy investment banking in the Houston office of Wells Fargo Securities.

“Meeting rising [energy] demand will require disciplined capital allocation across traditional energy, sustainable fuels, and firm, dispatchable solutions such as nuclear and geothermal,” Jasuja said in a news release. “Houston remains the center of gravity where capital, operating expertise, and execution come together to make that transition investable.”

The Houston office will focus on four energy verticals:

  • Energy systems such as nuclear and geothermal
  • Energy supply chains
  • Energy-transition fuel and technology
  • Traditional energy
“We are making a committed investment in Houston because we believe the infrastructure powering AI, defense, and energy transition — from nuclear to rare-earth technology — represents the next secular cycle of value creation,” Jerry Serowik, head of Cohen & Co. Capital Markets, added in the release.

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This article originally appeared on EnergyCaptialHTX.com.

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