New health-focused generative AI company emerges from stealth with Houston office, $4M in funding

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Biostate AI has emerged from stealth this week — with $4 million and a mission to design AI products to predict human and animal health changes. Photo via Getty Images

A new scalable biodata foundry startup has emerged from stealth with $4 million in investment funding and two new health care artificial intelligence tools. The company is co-located in Houston and Palo Alto, California.

Biostate AI was co-founded by former Rice Professor David Zhang, who serves as the company's CEO, in 2023. With the launch, the company announced two service products: Total RNA sequencing and Copilot for RNAseq data analysis, Biostate reveals in a press release.

"The successful training of any AI well requires large quantities of relevant and high-quality data," Zhang says in the release. "Biostate AI has developed the instrumental technologies to facilitate the collection of more biological data at lower costs. We are pleased to offer these capabilities to academic and industry partners and collaborators."

The company has raised more than $4 million in venture funding. Matter Venture Partners led the initial round, with participation from Vision Plus Capital, Catapult VC, and the California Institute of Technology through the Caltech Seed Fund. Additional investors included Dario Amodei, CEO of Anthropic; Joris Poort, CEO of Rescale; Michael Schnall-Levin, CTO of 10X Genomics; and Emily Leproust, CEO of Twist Bioscience.

"AI is the next frontier and AI needs data, and biological data is a lot harder to get than text or images. We are excited about the potential for Biostate's technology to dramatically lower the cost of collecting RNAseq datasets," adds Haomiao Huang, founding partner at Matter Venture Partners, in the release. "As a US company, Biostate's affordable AI-embedded CRO services are much needed today as the supply of preclinical research services shrinks due to geopolitical tensions."

With an ultimate goal of designing AI products to predict human and animal health changes, Biostate AI is looking to partner with academic researchers, hospital biorepositories, and pharma and other biotech companies.

In addition to its two launched products, Biostate AI has filed nine pending patents on its technologies and is collaborating with Twist Bioscience and California Institute of Technology.

With its official launch, Biostate AI also debut OmicsWeb Copilot, a conversational AI that aids biologists in and visualizing data. Using large-language models, the platform provides access to over 1000 unique RNAseq datasets collected by the Biostate team.

"Bioinformatic analysis of RNAseq and other omics data is a highly complex, multi-step process that currently takes many hours of dedicated specialized programming," explains Ashwin Gopinath, co-founder and CTO of Biostate AI, in the release. "As we scaled up our RNAseq data collection in the past year, we started building OmicsWeb Copilot as an internal tool to help our scientists make sense of the data. And then we realized other people may also find this tool useful, so we're opening it up to the general public for free."

Biostate is asking those interested in collaboration to reach out at partnerships@biostate.ai.

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Houston climatetech startup raises $21.5M series A to grow robotics solution

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A Houston energy tech startup has raised a $21.5 million series a round of funding to support the advancement of its automated technology that converts field wastes into stable carbon.

Applied Carbon, previously known as Climate Robotics, announced that its fresh round of funding was led by TO VC, with participation from Congruent Ventures, Grantham Foundation, Microsoft Climate Innovation Fund, S2G Ventures, Overture.vc, Wireframe Ventures, Autodesk Foundation, Anglo American, Susquehanna Foundation, US Endowment for Forestry and Communities, TELUS Pollinator Fund for Good, and Elemental Excelerator.

The series A funding will support the deployment of its biochar machines across Texas, Oklahoma, Arkansas, and Louisiana.

"Multiple independent studies indicate that converting crop waste into biochar has the potential to remove gigatons of CO2 from the atmosphere each year, while creating trillions of dollars in value for the world's farmers," Jason Aramburu, co-founder and CEO of Applied Carbon, says in a news release. "However, there is no commercially available technology to convert these wastes at low cost.

"Applied Carbon's patented in-field biochar production system is the first solution that can convert crop waste into biochar at a scale and a cost that makes sense for broad acre farming," he continues.

Applied Carbon rebranded in June shortly after being named a top 20 finalist in XPRIZE's four-year, $100 million global Carbon Removal Competition. The company also was named a semi-finalist and awarded $50,000 from the Department of Energy's Carbon Dioxide Removal Purchase Pilot Prize program in May.

"Up to one-third of excess CO2 that has accumulated in the atmosphere since the start of human civilization has come from humans disturbing soil through agriculture," Joshua Phitoussi, co-founder and managing partner at TO VC, adds. "To reach our net-zero objectives, we need to put that carbon back where it belongs.

"Biochar is unique in its potential to do so at a permanence and price point that are conducive to mass-scale adoption of carbon dioxide removal solutions, while also leaving farmers and consumers better off thanks to better soil health and nutrition," he continues. "Thanks to its technology and business model, Applied Carbon is the only company that turns that potential into reality."

The company's robotic technology works in field, picking up agricultural crop residue following harvesting and converts it into biochar in a single pass. The benefits included increasing soil health, improving agronomic productivity, and reducing lime and fertilizer requirements, while also providing a carbon removal and storage solution.

"We've been looking at the biochar sector for over a decade and Applied Carbon's in-field proposition is incredibly compelling," adds Joshua Posamentier, co-founder and managing partner of Congruent Ventures. "The two most exciting things about this approach are that it profitably swings the agricultural sector from carbon positive to carbon negative and that it can get to world-scale impact, on a meaningful timeline, while saving farmers money."

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This article originally ran on EnergyCapital.

Rice University makes top 5 lists of best biz schools in the country

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MBA programs at Rice University’s Jones Graduate School of Business have landed two top five rankings in The Princeton Review’s annual list of the country’s best business schools.

Rice earned a No. 4 ranking for its online MBA program and a No. 5 ranking for its MBA program in finance.

“These rankings are indicative of the high-quality education offered through all of our MBA programs. Students studying finance at Rice … are taught by faculty whose research and expertise enhances core classes and hard skills, so students are not just prepared to be successful in their careers, but they are also prepared to think critically about their roles and to lead in their industry,” Peter Rodriguez, dean of the Jones Graduate School of Business, says in a news release.

“These rankings are also indicative of our broader approach: offering students flexibility in their pursuit of an MBA, while retaining the experience of studying with world-class faculty — no matter what program they choose,” Rodriguez adds.

Rice also achieved high rankings in two other MBA categories: No. 8 for “greatest resources for women” and No. 10 for “greatest resources for minority students.”

The Princeton Review’s 2024 business school rankings are based on data from surveys of administrators at more than 400 business schools as well as surveys of 32,200 students enrolled in the schools’ MBA programs.

“The schools that made our list for 2024 all have impressive individual distinctions,” Rob Franek, The Princeton Review’s editor-in-chief, says in a news release. “What they share are three characteristics that broadly informed our criteria for these rankings: outstanding academics, robust experiential learning components and excellent career services.”

Rice also ranks as the top school for graduate entrepreneurship programs, which Princeton Review released last fall. The University of Houston ranks as No. 1 for undergraduate entrepreneurship programs.

3 Houston innovators to know this week

who's who

Editor's note: Every week, I introduce you to a handful of Houston innovators to know recently making headlines with news of innovative technology, investment activity, and more. This week's batch includes a Houston chemist, a cleaning product founder, and a UH researcher.


James Tour, chemist at Rice University

The four-year agreement will support the team’s ongoing work on removing PFAS from soil. Photo via Rice University

A Rice University chemist James Tour has secured a new $12 million cooperative agreement with the U.S. Army Engineer Research and Development Center on the team’s work to efficiently remove pollutants from soil.

The four-year agreement will support the team’s ongoing work on removing per- and polyfluoroalkyl substances (PFAS) from contaminated soil through its rapid electrothermal mineralization (REM) process, according to a statement from Rice.

“This is a substantial improvement over previous methods, which often suffer from high energy and water consumption, limited efficiency and often require the soil to be removed,” Tour says. Read more.

Kristy Phillips, founder and CEO of Clean Habits

What started as a way to bring natural cleaning products in from overseas has turned into a promising application for more sustainable agriculture solutions. Photo via LinkedIn

When something is declared clean, one question invariably springs to mind: just how clean is clean?

Then it is, “What metrics decide what’s clean and what’s not?”

To answer those questions, one must abandon the subjective and delve into the scientific — and that’s where Clean Habits come in. The company has science on its side with Synbio, a patented cleaning formula that combines a unique blend of prebiotics and probiotics for their signature five-day clean.

“Actually, we are a synbiotic, which is a prebiotic and a probiotic fused together,” says Kristy Phillips, founder and CEO of Clean Habits. “And that's what gives us the five-day clean, and we also have the longest shelf life — three years — of any probiotic on the market.” Read more.

Jiming Bao, professor at University of Houston

Th innovative method involves techniques that will be used to measure and visualize temperature distributions without direct contact with the subject being photographed. Photo via UH.edu

A University of Houston professor of electrical and computer engineering, Jiming Bao, is improving thermal imaging and infrared thermography with a new method to measure the continuous spectrum of light.

His innovative method involves techniques that will be used to measure and visualize temperature distributions without direct contact with the subject being photographed, according to the university. The challenges generally faced by conventional thermal imaging is addressed, as the new study hopes to eliminate temperature dependence, and wavelength.

“We designed a technique using a near-infrared spectrometer to measure the continuous spectrum and fit it using the ideal blackbody radiation formula,” Bao tells the journal Device. “This technique includes a simple calibration step to eliminate temperature- and wavelength-dependent emissivity.” Read more.

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