The new startup has acquired Birchbox and plans to relaunch the beauty subscription service with its patented health customization. Photo via birchbox.com

A Houston health tech entrepreneur who's started six businesses in his career has announced his latest endeavor.

Dr. Kimon Angelides, founder of Houston health tech startups Livongo Health and Vivante Health, launched FemTec Health, a tech-enabled women's health sciences and beauty company focused on transforming the total healthcare experience for women. The company is emerging from stealth mode this week with already 10 million members, two clinical trials in progress, and a team of over 150.

FemTec Health is building the data analytics platform to support products and services for women in every life stage. The patent-pending BiomeAI™engine uses AI and deep machine learning to translate consumer, genetic, microbiome, and biometric data into the delivery of holistic healthcare personalized for every woman, according to a news release from the company.

"Our platform can be implemented across all areas including specialty care, wellness and prevention, reproductive care, sexual wellness, mental health, chronic care, and beyond," Angelides says in the release. "It is driven by state-of-the-art genomics and digital technologies that empower women to take control of their health at every stage of their life journey, based on their individual health profiles."

Angelides serves as the new company's chairman and interim CEO. Photo via LinkedIn

FemTec has already raised more than $35 million in funding from a myriad of investors, capital, and shareholders, including Longmont Capital, Ithaca LifeSciences, Unilever Ventures, Estee Lauder, Shiseido, e.Ventures, Viking Global, and Trinity Capital.

The company, which has been in the works since May of 2020, has assembled an all-star team of experts, including Dr. Kimberly Capone, chief scientific officer (formerly with Johnson & Johnson), and Dr. Laura Clapper, COO (formerly Cigna, CVS-Aetna).

"Women's health has been under-researched and underrepresented for too long," says Capone in the release. "As a woman and a scientist, I have often been the sounding board for friends and family on their wellness journey – offering advice and feedback on skincare, vaginal care, probiotics and supplements that can help with issues in skin and vaginal health, PMS and menopause. What I hear consistently is that women do not know where to go, or what products to choose that may help."

This is exactly the need the technology will help to solve.

"This is where FemTec Health's unified and coordinated platform comes in — we provide personalized services and science-based products that are meaningful and effective for women at all stages of their lives. I believe the future is female and FemTec Health will help get us there," Capone continues.

FemTec Health's business and growth model is to expand via acquisitions — and the company has several under its belt already, including beauty subscription box Birchbox, universal beauty store Mira Beauty, and beauty industry social marketing platform Liquid Grids, which has over 1.5 million members, according to the release.

"Our first acquisitions within women's health and beauty are key to our mission to revolutionize the women's healthcare and beauty industry," says Angelides, who is the company's executive chairman and interim CEO. "Women deserve a comprehensive, all encompassing model designed specifically for them. The starting point is to really understand a woman's healthcare needs and then apply smart technology like AI and predictive analytics to translate the data into actionable outcomes."

In the near future, the company plans on re-launching Birchbox, using the BiomeAI™ platform to give subscribers curated personalized skin and healthcare products. Birchbox was sold to private equity firm, Viking Global — one of FemTec's investors, in 2018.

"I have always believed in the power of women as a community, and I believe this is a natural step in the evolution of Birchbox," says Katia Beauchamp, founder of Birchbox, in the release. "Eleven years ago, we were compelled by an ability to build deep customer relationships month after month. FemTec's vision for the future of women's healthcare was inspirational to me and I could see the opportunity for the thousands of women in the Birchbox community to extend beyond consumer beauty products to a more holistic health and wellness offering."

According to the release, more strategic partnerships with health and wellness companies will be announced soon.

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Houston expert: Here's why your top candidate turned down your job offer

guest column

One of the most disappointing (and costly) things as a hiring manager is when your top candidate declines the job offer. You spend months defining target skills and characteristics, reviewing résumés and interviewing candidates to narrow down to your finalist of choice. You put together what you believe is a strong offer, and the candidate says “no.” What went wrong?

It’s not an employer’s job market anymore. In this transformed workplace, and at a time of historically low unemployment, it is very much an employee’s market, and he/she can afford to be selective. Below are some common reasons candidates turn down job offers and what you can do to prevent them.

No. 1: The interview process took too long

It takes time to identify the right fit, and a typical hiring process will often involve 2-3 interviews with decision makers in different locations. You also want to pinpoint a candidate you like and compare him/her to other candidates. When all is said and done, you’re often looking at an interview process that can take 6-8 weeks. During this time, it’s critical to stay in touch with the candidate. A simple email with a status update will help keep them engaged. This is also a great time to check references, showing the candidate your continued interest.

While you’re focused on filling the position, it’s easy to forget candidates have deadlines, too. A lengthy interview process with periods of little interaction can make a candidate feel you don’t respect his/her time or make your company appear disorganized, something they may be leery of based on past experience. Setting expectations upfront and maintaining open lines of communication are key in this candidate-driven environment.

Equally important to an efficient hiring process is encouraging non-essential decision makers to let go after a certain point. For example, once a small sized business graduates to a midsized company, a CEO should not make the mistake of thinking they have to talk to every single prospect. They need to approve them. Delegating and trust are key.

No. 2: You didn’t ‘sell’ the opportunity enough

It’s easy to forget interviews are as much about the candidate interviewing you as you interviewing the candidate. While you want to assess the person’s skills and cultural fit, the candidate wants to know how the role will match his/her personal and professional goals. Heck, they want to know how it stacks up against other jobs for which they might be applying!

Career growth is something every candidate wants. It’s critical for the hiring manager to discuss training and personal development opportunities. This is particularly important for millennials, who are often more motivated by the ability to learn and grow than they are by an increase in financial compensation. It’s also important to talk about the company culture and what makes you stand out. Bottom line: You want the candidate to leave the interview knowing he/she will be appreciated by your company and will get an experience that can’t be found elsewhere. To this end, expressing genuine interest in their life outside of work (loved ones, what makes them tick, etc.) can make all the difference.

No. 3: Lack of employer brand appeal

Companies spend a lot of time branding their products and services but don’t always think about how they look to future employees. Your M.O. is how you show candidates what it’s like to work for you. This includes their overall interview process experience, reviews on websites like Glassdoor, as well as posts your company and employees share on social media.

Let candidates get to know your company through posts. Show your team having fun together, being involved in the community and as customer-focused professionals. Employees also give hints about their work experience in their own social content. If they’re happy, it’ll show in their online activity.

These first three reasons for why a job offer might be turned down are all about how a hirer makes a candidate feel, but the fine print matters too.

No. 4: Job duties

It may seem like a no-brainer that a job description should be well-written, but more often than not, it’s unclear what will be expected of said employee. When you do the internal work ahead of time, getting alignment on what’s required and the intricacies of the existing (or new) position, it leaves little room for misunderstanding and/or disappointment post-hire.

No. 5: Compensation and benefits

Lastly, a strong compensation and benefits package is critical in securing your top pick. For some roles, that will mean an offer heavily weighed on the salary side. For others, it will be uncapped commissions or the opportunity for equity. Make sure the package is competitive with the industry, and will appeal to your ideal candidate and make him/her want to join your team.

Remember to think “outside the box” with extra benefits like flexible work hours, the ability to work remotely, PTO/unlimited sick days or vacation. The cost to implement these perks is low, but they often mean more to the candidate than higher pay.

In today’s employee-driven job market, top candidates are looking for a comprehensive package, growth opportunities, and a welcoming work environment that will provide lasting happiness and satisfaction.

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Hazel Kassu is the managing director of Houston-based recruiting firm, Sudduth Search.

7 lessons from a Houston-based unicorn startup founder

taking notes

At a fireside chat at SXSW, a Houston founder pulled back the curtain on his entrepreneurial journey that's taken him from an idea of how to make the chemicals industry more sustainable to a company valued at over $2 billion.

Gaurab Chakrabarti, the CEO and co-founder of Solugen, joined the Greater Houston Partnership's Houston House at SXSW on Monday, March 13, for a discussion entitled, "Building a Tech Unicorn." In the conversation with Payal Patel, principal of Softeq Ventures, he share the trials and tribulations from the early days of founding Solugen. The company, which has raised over $600 million since its founding in 2016, has an innovative and carbon negative process of creating plant-derived substitutes for petroleum-based products.

The event, which quickly reached capacity with eager SXSW attendees, allowed Chakrabarti to instill advice on several topics — from early customer acquisition and navigating VC investing to finding the right city to grow in and setting up a strong company culture.

Here are seven pieces of startup advice from Chakrabarti's talk.

1. Don’t be near a black hole.

Chakrabarti began his discussion addressing the good luck he's had standing up Solugen. He's the first to admit that luck is an important element to his success, but he says, as a founder, you can set yourself up for luck in a handful of ways.

“You do make your own luck, but you have to be putting in the work to do it," Chakrabarti says, adding that it's not an easy thing to accomplish. “There are things you can be doing to increase your luck surface area."

One of the principals he notes on is not surrounding yourself with black holes. These are people who don't believe in your idea, or your ability to succeed, Chakrabarti explains, referencing a former dean who said he was wasting his talent on his idea for Solugen.

2. The co-founder dynamic is the most important thing.

Early on, Chakrabarti emphasizes how important having a strong co-founder relationship is, crediting Solugen's co-founder and CTO Sean Hunt for being his "intellectual ping-pong partner."

“If you have a co-founder, that is the thing that’s going to make or break your company,” he says. “It’s not your idea, and it’s not your execution — it’s your relationship with your co-founder.”

Hunt and Chakrabarti have been friends for 12 years, Chakrabarti says, and, that foundation and the fact that they've been passionate about their product since day one, has been integral for Solugen's success.

"We had a conviction that we were building something that could be impactful to the rest of the world," he says.

3. Confirm a market of customers early on.

Chakrabarti says that in the early days of starting his company, he didn't have a concept of startup accelerators or other ways to access funding — he just knew he had to get customers to create revenue as soon as possible.

He learned about the growing float spa industry, and how a huge cost for these businesses was peroxide that was used to sanitize the water in the floating pods. Chakrabarti and Hunt had created a small amount of what they were calling bioperoxide that they could sell at a cheaper cost to these spas and still pocket a profit.

“We ended up owning 80 percent of the float spa market,” Chakrabarti says. “That taught us that, ‘wow, there’s something here.”

While it was unglamourous work to call down Texas float spas, his efforts secured Solugen's first 100 or so customers and identified a path to profitability early on.

“Find your niche market that allows you to justify that your technology or product that has a customer basis,” Chakrabarti says on the lesson he learned through this process.

4. Find city-company fit.

While Chakrabarti has lived in Houston most of his life, the reason Solugen is headquartered in Houston is not due to loyalty of his hometown.

In fact, Chakrabarti shared a story of how a potential seed investor asked Chakrabarti and Hunt to move their company to the Bay Area, and the co-founders refused the offer and the investment.

“There’s no way our business could succeed in the Bay Area," Chakrabarti says. He and Hunt firmly believed this at the time — and still do.

“For our business, if you look at the density of chemical engineers, the density of our potential customers, and the density of people who know how to do enzyme engineering, Houston happened to be that perfect trifecta for us," he explains.

He argues that every company — software, hardware, etc. — has an opportunity to find their ideal city-company fit, something that's important to its success.

5. Prove your ability to execute.

When asked about pivots, Chakrabarti told a little-known story of how Solugen started a commercial cleaning brand. The product line was called Ode to Clean, and it was marketed as eco-friendly peroxide wipes. At the time, Solugen was just three employees, and the scrappy team was fulfilling orders and figuring out consumer marketing for the first time.

He says his network was laughing at the idea of Chakrabarti creating this direct-to-consumer cleaning product, and it was funny to him too, but the sales told another story.

At launch, they sold out $1 million of inventory in one week. But that wasn't it.

“Within three months, we got three acquisition offers," Chakrabarti says.

The move led to a brand acquisition of the product line, with the acquirer being the nation's largest cleaning wipe provider. It meant three years of predictable revenue that de-risked the business for new investors — which were now knocking on Solugen's door with their own investment term sheets.

“It told the market more about us as a company,” he says. “It taught the market that Solugen is a company that is going to survive no matter what. … And we’re a team that can execute.”

What started as a silly idea led to Solugen being one step closer to accomplishing its long-term goals.

“That pivot was one of the most important pivots in the company’s history that accelerated our company’s trajectory by four or five years," Chakrabarti says.

6. Adopt and maintain a miso-management style.

There's one lesson Chakrabarti says he learned the hard way, and that was how to manage his company's growing team. He shares that he "let go of the reins a bit" at the company's $400-$500 million point. He says that, while there's this idea that successful business leaders can hire the best talent that allows them to step back from the day-to-day responsibilities, that was not the right move for him.

“Only founders really understand the pain points of the business," Chakrabarti says. "Because it’s emotionally tied to you, you actually feel it."

Rather than a micro or macro-management style, Chakrabarti's describes his leadership as meso-management — something in between.

The only difference, Chakrabarti says, is how he manages his board. For that group, he micromanages to ensure that they are doing what's best for his vision for Solugen.

7. Your culture should be polarizing.

Chakrabarti wrapped up his story on talking about hiring and setting up a company culture for Solugen. The company's atmosphere is not for everyone, he explains.

“If you’re not polarizing some people, it’s not a culture,” Chakrabarti says, encouraging founders to create a culture that's not one size fits all.

He says he was attracted to early employees who got mad at the same things he did — that passion is what makes his team different from others.

Houston tech company to acquire IT infrastructure startup

M&A moves

Hewlett Packard Enterprise has announced its plans to acquire a San Jose, California-based startup.

HPE, which relocated its headquarters to Houston from the Bay Area a couple years ago, has agreed to acquire OpsRamp, a software-as-a-service company with an IT operations management, or ITOM, platform that can monitor, automate, and manage IT infrastructure, cloud resources, and more.

According to a news release from HPE, the OpsRamp platform will be merged with the HPE GreenLake edge-to-cloud platform, which supports more than 65,000 customers, powers over two million connected devices, and manages more than one exabyte of data with customers worldwide.

The new integrated system "will reduce the operational complexity of multi-vendor and multi-cloud IT environments that are in the public cloud, colocations, and on-premises," per the statement.

“Customers today are managing several different cloud environments, with different IT operational models and tools, which dramatically increases the cost and complexity of digital operations management,” says HPE's CTO Fidelma Russo in the release. “The combination of OpsRamp and HPE will remove these barriers by providing customers with an integrated edge-to-cloud platform that can more effectively manage and transform multi-vendor and multi-cloud IT estates.

"This acquisition advances HPE hybrid cloud leadership and expands the reach of the HPE GreenLake platform into IT Operations Management,” she continues.

HPE's corporate venture arm, Pathfinder, invested in OpsRamp in 2020. The company raised $57.5 million prior to the acquisition. Other investors included Morgan Stanley Expansion Capital and Sapphire Ventures, per TechCrunch.

“The integration of OpsRamp’s hybrid digital operations management solution with the HPE GreenLake platform will provide an unmatched offering for organizations seeking to innovate and thrive in a complex, multi-cloud world. Partners and the channel will also play a pivotal role to advance their as-a-service offerings, as enterprises look for a unified approach to better manage their operations from the edge to the cloud,” says Varma Kunaparaju, CEO of OpsRamp, in the release.

“We look forward to leveraging the scale and reach of HPE’s global go-to-market engine to deliver our unique offering and are excited for this journey ahead as part of HPE.”