This week's innovators to know are Allie Danziger, Sylvia Kampshoff, and Brittany Barreto. Courtesy photos

This one's for the ladies. InnovationMap's weekly roundup of innovators to know features three female founders — one is offering her advice on crisis communications, one is innovating the at-home workout, and one is planning on making Houston a city for femtech.

Allie Danziger, founder and president of Integrate Agency

Photo courtesy of Integrate

Now more than ever your company's message is extremely important, says communications expert Allie Danziger, and she and her company, Integrate Agency are focused on helping businesses at this trying time.

"Practicing what we preach, we understand that as communication experts, it is our mission and responsibility during this time to help our local business community," writes Danziger in her guest column. "We are putting our money where our mouth is and for the last week have been offering free communication and marketing consultation to any business in need."

Click here to read the rest of Danziger's column.

Sylvia Kampshoff, founder of Kanthaka

Photo courtesy of Kanthaka

Big-box gyms have the potential of being a breeding ground for the coronavirus, but smaller studios aren't immune from the disease's consequences either. While most fitness spots have closed to prevent the spread of COVID-19, Houston-based Kanthaka has been using tech to enable at-home exercise before it was the only option.

That's why the app's founder Sylvia Kampshoff says she saw a huge spike in numbers last week as things began to close. Kanthaka allows users to book personal training sessions to their home. The one-on-one interaction has become really popular in this time of social distancing, and Kampshoff say soon the app will go even further in their efforts allowing its personal trainers to give virtual one-on-one training.

Click here to read more about Kanthaka's latest initiatives.

Brittany Barreto, venture associate at Capital Factory

Photo courtesy of Brittany Barreto

Brittany Barreto is passionate about femtech, helping entrepreneurs, and, despite being from the Northeast, Houston. Barreto joined the Houston Innovators Podcast this week to discuss her passions and her use to the Houston innovation ecosystem as a former founder herself.

"I actually think Houston needs to figure out how to capitalize on these recycled founders and how to get them in more mentorship and leadership positions," Barreto says on the podcast. "We're in Houston, Texas, and the second question out of everyone's mouths is, 'How can I help you?'"

Click here to stream the episode and read more about Barreto.

In this week's episode of the Houston Innovators Podcast, Brittany Barreto discusses her passion for femtech domination as well as expert info for founders looking to get involved with Capital Factory. Photo courtesy of Brittany Barreto

Former founder wants to make Houston a major femtech hub

HOUSTON INNOVATORS PODCAST EPISODE 23

Brittany Barreto has had a rollercoaster of a year. She went from a startup founder in her second round of funding to sitting on the other side of that fundraising table.

Barreto, who is the venture associate at Capital Factory, has a Ph.D in genetics and founded the first nationwide DNA-based dating app called Pheramor. Last year, she had to close down the business due to changes in Apple's App Store's rules. Now that she's shifted from founder to helping founders, she's realized Houston needs more former-founder mentors like herself.

"I actually think Houston needs to figure out how to capitalize on these recycled founders and how to get them in more mentorship and leadership positions," Barreto says on this week's episode of the Houston Innovators Podcast. "We're in Houston, Texas, and the second question out of everyone's mouths is, 'How can I help you?'"

But that willingness to help only takes mentorship so far for founders who can learn a lot from people who've been in their exact position.

While she wants to see more of these types of mentors emerging in Houston, she also wants to see more of something else: Femtech. These types of startups focus on technology that improves the health and wellness of women, and Houston is poised to be a great hub for femtech — mainly because, well, nowhere else is yet.

Femtech has a lot of potential for investors and success because it's creating technology that's an aspirin and not a vitamin, Barreto says. People won't necessarily pay for and take vitamins, but when they need that aspirin, they'll pay what they can for it.

"Whenever I hear about new femtech companies, I think, 'why doesn't this exist yet?'" Barreto says. "That's why I'm really passionate about FemTech, because it's not something that's just nice to have."

Houston has several female-focused organizations that have emerged lately, but the next steps for the city as it develops as a hub for femtech is to establish a femtech-focused accelerator program and venture fund.

Barreto shares her thoughts on Houston, plus explains what makes Capital Factory different from other organizations in Houston. She also gives her advice on pitchdecks and how she's looking to better connect the dots between entrepreneurs and startup development organizations on the podcast. Listen to the full episode below — or wherever you get your podcasts — and subscribe for weekly episodes.

This week's set of who's who include a startup founder trying to change the world, a passionate PhD with a story of failure to tell, and a biomedical engineer enhancing health tech in Houston. Courtesy photos

3 Houston female innovators to know this week

who's who

Another set of female innovation leaders are making headlines as we move into another week of innovators to know.

This week's set of who's who include a startup founder trying to change the world, a passionate PhD with a story of failure to tell, and a biomedical engineer enhancing health tech in Houston.

Ana Carolina Rojas Bastidas, founder of Orolait

orolait

A Houston mom is working hard on her startup so that next summer, breastfeeding moms can swim in style and worry free. Courtesy of Orolait

On the surface, it may seem that Houston mom Ana Carolina Rojas Bastidas has a passion for fashion, as she's created and is fundraising for a new-mom specific line of swimwear. But really, she's on a mission to give breastfeeding women back their dignity with her startup, Orolait.

"I decided to build this company to challenge and change the way we depict one's breastfeeding journey," Bastidas says on the website. "I stand on the pillars of advocacy, education, and inclusion. You will see the sizing and advertising featuring all shapes, sizes, and shades because each of us is so different and that is what makes us so incredible and I am going to unapologetically celebrate that in the most ethical way I know how." Read the story.

Brittany Barreto, venture associate at Capital Factory

Brittany Barreto

Brittany Barreto founded the first nationwide DNA-based dating app, and she shares her story of its unexpected, and unavoidable, downfall. Photo courtesy of Pheramor

After dedicating three long years to her startup that began as an idea in college, Brittney Barreto is saying goodbye to Pheramor. Barreto explains how her DNA-based dating app got pulled from the Apple app store following policy changes, and how it left her with no choice but to shutter the operation.

Now, Barreto has big plans for funding femtech, and is learning a lot in her new role at Capital Factory. She's already able to do more for other founders and create a bigger impact.

"I realized that over the past two years, I had already been ad hoc coaching and mentoring founders and loving it," Barreto says. "Now, I was doing it and getting paid for it, on a bigger scale, and with more resources. I knew it was the journey I wanted to continue down." Read the full story.

Emily Reiser, senior manager of innovation community engagement at TMC

Emily Reiser

From robots and accelerator programs to her favorite health tech startups, Emily Reiser of the TMC Innovation Institute joins the Houston Innovators Podcast. Photo courtesy of Emily Reiser

Emily Reiser has known for most of her life that she's wanted to work in health tech — in some capacity. On the Houston Innovators Podcast, she explains how she combined her early interest in health care with her affinity with engineering inspired by her parents.

Now, she continues to check both those boxes at the Texas Medical Center's Innovation Institute, which has evolved a ton over the past year.

"In 2019, we had a lot of big changes around our team and our leadership," she says on the podcast. "That enabled us to take a bigger breath and a bigger pause to say, 'How are we really doing? And how could we be doing better?'" Read the full story and stream the podcast.

Brittany Barreto founded the first nationwide DNA-based dating app, and she shares her story of its unexpected, and unavoidable, downfall. Photo courtesy of Pheramor

Exclusive: Promising Houston-born DNA dating startup shuts down; founder shares story

The Fall of Pheramor

When Brittany Baretto was 18 years old and sitting in an undergraduate genetics seminar, she raised her hand. She asked, to her professor's point, if particular DNA trait differences between two people can result in attraction, could she, based on that logic, make a DNA-based dating tool. With that question, she set in motion a series of events.

These events included teaming up with Bin Huang to start a dating app, called Pheramor, that factored in user DNA; raising millions for the company; hiring a team from across the country; and signing up users in all 50 states. Though, Pheramor's hockey stick growth came to a sudden stop this year when Apple pulled the app from its store, and there was nothing the founders or their investors could do about it.

"They are gatekeepers in innovation," Barreto learned the hard way.

InnovationMap recently spoke with Barreto to discuss the rise and fall of Pheramor and lessons learned.

Launching the first nationwide DNA-based dating app

Barreto mulled over the idea for the company through college and through her genetics PhD program before starting the company in 2017.

"I actually formed the C-Corp the same month that Accenture put out its report on Houston needing more attention on its startups and innovation," she says. "I didn't know about that report. I was really lucky with Pheramor to ride the wave of Houston growing its startup community."

She went on to fundraise $1.3 million, and, at its height, Pheramor had 10 employees working out of WeWork in the Galleria. Pheramor was the first nationwide DNA-based dating app, and for that she will always be proud, Barreto says.

"We were growing something not necessarily unicorn status growth, but we were doing something really different," she says. "And we knew we were growing something valuable. At our peak, we had 250 downloads a day."

Venture capitalists were taking note, Barreto says, and she was on her way to closing another round — this time for $2.2 million.

Getting the call

In March, Barreto and Huang attended Enventure's bioventure pitch event, where, just three years prior, the duo had pitched and won thousands of dollars. It was a real turning point, Barreto remembers.

Earlier that day, they had seen some issues with Apple's app store and filed a service request. As she left the event, Barreto's phone rang, and it was an Apple representative explaining that the Pheramor app had been pulled from the store. New rules for the App Store had been set in place — rules that forbid dating apps from procuring DNA samples from users.

Once the DNA element was removed from the app, Pheramor would be allowed back on, Barreto was told.

"That was our differentiator," she says. "That was the thing that made us Pheramor."

For the next three weeks, Barreto called every app reviewer at Apple and challenged each "no" she got.

"I had that internal founder drive. I was like, 'No, I just need to talk to someone. I'm going to hustle around this.'"

Her request went to the very top, before receiving one final, inarguable "No."

Barreto knows why Apple instituted the new policy — biohackers are the newest cyber threat in the world. But she was being dragged through the ringer while watching her startup slowly slip away, and the anonymous Apple employees on the other end of the phone had no sympathy for her inner turmoil.

"It felt like they just kept reading a script," she says, adding that it was the most painful experience for her. "The insensitivity of the app review people was salt in the wound."

Throwing a Hail Mary

The Pheramor app was still live on Google, Barreto says, but with only 10 percent of the market, and data showing that Android users are historically non-buyers, she knew she had to pivot.

Huang and his team turned around an idea for a couples' compatibility test based on DNA, and WeHaveChemistry.com was born. Barreto tapped an acclaimed relationship expert, Laura Berman, as a strategic adviser. She made a deal with her board — if they could sell 100 of these kits in 60 days, they'll make new goals and keep the testing live.

Barreto says they sold some, but ultimately in June, after not meeting that goal, she suggested to the board the company should sell its assets, if possible, to help pay back her investors.

While the investors of Pheramor's $2.2 million round had pulled out at this point, Pheramor still had $100,000 in the bank. Barreto says she budgeted about $30,000 to legally close the company. At this point, she had laid off her staff, and it was down to the co-founders. Both got new jobs — Huang is now the head data scientist at Houston-based BrainCheck, and Barreto joined Capital Factory as its Houston-based venture associate.

Since Barreto was actively trying to sell the assets, she kept quiet about Pheramor's downfall. While she had some interest, ultimately, people told her the technology was too complicated or that they wouldn't buy unless Barreto came with the company.

"I realized that over the past two years, I had already been ad hoc coaching and mentoring founders and loving it," Barreto says. "Now, I was doing it and getting paid for it, on a bigger scale, and with more resources. I knew it was the journey I wanted to continue down."

Lessons thoroughly learned

Barreto's past six months have been a rollercoaster, to say the least. Losing Pheramor felt like an identity crisis for her.

"I was very personally involved with the brand," she says. "So when Pheramor was gone, it was like, 'Who am I?'"

She had to keep most of her inner turmoil hidden from the startup community, especially since she was trying to sell Pheramor's assets. She battled an eating disorder and lost chunks of her hair, all the while she felt like she had to keep a smile on her face.

"As a female founder, I felt so much pressure to win. It felt like stakes were higher for me," Barreto says. "I felt really nervous to let my insides show."

She did find a few entrepreneurs that helped to guide her with their own perspective and careers, and Barreto says she leaned on her lawyer, Nicole Moss, a Houston-area startup lawyer, to help talk her through things. One surprising confidant was one of her investors, Jack Gill.

Barreto remembers meeting with Gill and thinking she was about to have to apologize for losing a ton of his money, but instead, he hugged her and congratulated on her first failure — that Pheramor's demise made her a real entrepreneur.

"His pride was a big turning point for me. I realized, 'Wow, this is really a jumping off point,'" she says.

This, of course, was directly contrasted by other investor's extreme disappointment. In the end, Barreto paid back investors by about 5 percent. She also realized the difference of working with investors who are new to the process.

"I learned a lesson of taking money from people who are not experienced investors will cause you headaches along the way," she says.

What's next? Funding femtech.

These investor lessons learned are especially important to Barreto, who wants her next startup to be a venture fund focused on empowering the marginalized entrepreneurs — female founders, the LGBT community, minorities, etc.

"I want to be someone of influence for social good," she says. "This crazy idea I had for a dating app was just a way to propel me to becoming that person. I felt like it did that."

Flipping to the other side of the investor table is appealing to Barreto, because she feels like she's able to make more of an impact.

"What I learned from Pheramor is I put all my eggs in one basket, and something happened and all my eggs broke," she says. "As a VC, you put your eggs in lots of baskets. If I want to make big change, I can probably do that more effectively if I'm empowering 20 different companies instead of doing only one thing."

Her idea is to raise a femtech fund that invests in startups and entrepreneurs with products or services within women's health.

"For me, as long as you're working on a technology that improves women's health and wellness, I want to invest in you," she says.

It's taken her a long time to get to this point, but ultimately, Barreto has realized that she did everything she could do, and she's better for this journey — no matter how rough it is. More importantly to Barreto, she sees this as an opportunity to share her story of failure — though, she wishes there were a better word for it — so that other entrepreneurs don't feel so alone in the process. She hopes that Pheramor's legacy can fill that need.

"We need to get comfortable with failure and support each other in the journey," she says.

From entrepreneur networking opportunities to thought-provoking panels, here's where you need to be in December. Getty Images

10+ can't-miss Houston business and innovation events for December

Where to be

Before everyone checks out of 2019, Houston has a couple more weeks filled with exciting entrepreneurial networking opportunities. Scroll through the curated list of innovation events you can't miss.

For a full calendar of Houston innovation events, head to Houston Exponential's page.

If you know of innovation-focused events for this month or next, email me at natalie@innovationmap.com with the details and subscribe to our daily newsletter that sends fresh stories straight to your inboxes every morning.

December 3 — Intro to the Houston Startup Scene & Ask Me Anything with Omair Tariq and Dr. Brittany Barreto

Are you new to the Houston tech startup community? Thinking about moving here? Trying to figure out how to plug in? Come hear a comprehensive overview from local community leaders and get a chance to introduce yourself and ask questions at the Intro to the Houston Startup Scene & Ask Me Anything. Tickets are $10.

Details: The event is from 4 to 7 pm on Tuesday, December 3, at The Cannon (1334 Brittmoore Road). Learn more.

December 3 — Houston Coalition for Equitable Development without Displacement community forum

The Houston Coalition for Equitable Development without Displacement is gathering for a second time to discuss securing a Community Benefits Agreement with Rice Management Company as they develop the 16-acre Innovation District around the old Sears building and Fiesta at the edge of Third Ward.

Details: The event is from 6 to 8 pm on Tuesday, December 3, at Wesley Chapel AME Church (2209 Emancipation Ave.). Learn more.

December 3-4 — InvestH2O 2019 Forum: Investing in Resiliency

With nearly $1 trillion in losses over the past 5-7 years for FEMA and other federal agencies, states-counties-cities, private insurance and reinsurance companies, industry and business operations from water- and weather-related incidents, the need for alternative investment and resource allocation could not be more obvious. The event's programming will be focused on innovating solutions.

InnovationMap readers can attend for free through this link.

Details: The event is from Tuesday, December 3, to Wednesday, December 4, at various locations. Learn more.

December 4 — The Cannon & EPIcenter - Jumpstart your innovation Happy Hour

In partnership with The Cannon, EPIcenter's Incubator and Accelerator will be hosting a six-week seminar using the Wendy Kennedy curriculum, "So what? Who cares? Why you?" for innovators in any industry. Director of the EPIcenter Energy Incubator and Accelerator and certified Business Coach Andi Littlejohn will lead participants through a proven methodology to discover, define and describe the commercial opportunities of innovations.

Details: The event is from 4 to 6 pm on Wednesday, December 4, at The Cannon (1334 Brittmoore Road). Learn more.

December 4 — The Ion Smart Cities Accelerator Demo Day

The Ion Smart Cities Accelerator will present its inaugural cohort of companies that are addressing the needs of Houston's people by deploying technology into the infrastructure and civic fabric that makes Houston so strong.

Details: The event is from 5 to 8 pm on Wednesday, December 4, at ion Accelerator and Prototyping Lab (1301 Fannin Street, Suite 2100). Learn more.

December 5 — Houston Region Economic Outlook

The Greater Houston Partnership's Annual Houston Region Economic Outlook event will feature Partnership Senior Vice President of Research Patrick Jankowski who will deliver the 2020 employment forecast for the region. ConocoPhillips Chief Economist Helen Currie will follow with a presentation on the national economy.

Details: The event is from 9:30 am to 1:30 pm on Thursday, December 5, at the Royal Sonesta (2222 West Loop S.). Learn more.

December 5 — Evening of Pediatric Device Innovation

Please join JLABS @ TMC for the 5th Annual Evening of Pediatric Device Innovation as top experts from Houston and across the country will discuss the latest in pediatric medical device innovation and updates on bringing a pediatric medical device to market.

Details: The event is from 3 to 6:30 pm on Thursday, December 5, at the TMC Innovation Institute (2450 Holcombe Blvd). Learn more.

December 5 — Meet & Greet with Flyover Capital

Meet Flyover Capital's Dan Kerr on his last night in town and learn how they are working to creating the next generation of technology success stories outside the coastal tech hubs.

Details: The event is from 6 to 7:30 pm on Thursday, December 5, at WeWork (708 Main Street, 3rd Floor). Learn more.

December 11 — ENRICH/LEAP Information Session

ENRICH and LEAP are 6-8 week fellowship programs where you and a team of your peers will work directly with established companies on one of a wide scope of projects. These invaluable programs allow people the ability to gain skills and insights that only professional work can offer. Come hear Enventure leadership discuss these programs and learn how you can get involved.

Details: The event is from 5:30 to 8 pm on Wednesday, December 11, at the TMC Innovation Institute (2450 Holcombe Blvd). Learn more.

December 12 — WeWork Labs x NextSeed Launch Event

WeWork Labs, a global acceleration program with a location in downtown Houston, and NextSeed, a Houston-based online investment platform, have announced a partnership set to begin in December. Together, the two entities will build a support system for Houston-based food entrepreneurs to provide workshops, programming, events, and more.

Details: The event is from 6 to 8:30 pm on Thursday, December 12, at WeWork (708 Main Street). Learn more.

December 14 — Smart Infrastructure Hackathon

On Saturday, December 14, join Microsoft and The Cannon for a smart infrastructure hackathon. Bring your own ideas and team, or join a team when you arrive. Everyone is welcome, regardless of skill level.

Details: The event is from to 9 am to 7 pm on Saturday, December 14, at The Cannon (1334 Brittmoore Road). Learn more.

December 14 — TEDxHoustonWomen 2019 : BOLD + Brilliant!

Connect with a locally rooted, globally connected community of people interested in leading the change they wish to see in the world; and sow the seeds to collaborate with innovative thinkers who catalyze ideas toward action.

Details: The event is from 10:30 am to 4 pm on Saturday, December 14, at Unity of Houston (2929 Unity Dr). Learn more.

December 17 — The Future of Work: Closing the Skills Gap

GA gathers Houston industry leaders to share how they approach the challenge of upskilling the workforce. In this discussion, we'll cover how to bridge the gap between current team capabilities and the skills needed to stay competitive. Whether radically reskilling existing teams or onboarding new talent, the companies who adapt fastest will stand the test of time.

Details: The event is from 8:30 to 11 am on Tuesday, December 17, at Station Houston (1301 Fannin Street, 21st Floor). Learn more.

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CultureMap Emails are Awesome

Houston bakery startup dishes out healthy, low-calorie treats

SWEET ON THESE SWEETS

A Houston bakery is helping Houstonians satisfy their sweet tooth and while also counting their calories. ChipMonk Baking, a local, mail-order bakery, has seen significant growth since the start of the coronavirus pandemic as people look for healthier snacks than what they might find in a typical grocery store.

Founded by David Downing and Jose Hernandez, ChipMonk makes cookies, brownie bites, and other snacks using monk fruit and allulose, a low-calorie (0.4 calories per gram) rare sugar that's found naturally in foods such as raisins, dried figs, and kiwi. Hernandez began developing ChipMonk's recipes to satisfy his taste for cookies after being diagnosed with type-2 diabetes.

"We've refined these recipes and now offer numerous different cookies, dry mixes, and brownie bites which all taste delicious and won't spike your blood sugar," Hernandez says in a statement. "While they're great for people with diabetes, Celiac disease, or those who follow a keto diet, anyone who tries them will enjoy the taste and texture."

Jose Hernandez and David Downing founded ChipMonk Bakery. Photo courtesy of ChipMonk Baking

ChipMonk offers all the usual flavors — white chocolate-macadamia, chocolate chip, lemon, snickerdoodle, etc. — as well as dry mixes for those who want to bake at home. Recently, the company introduced red velvet brownie bites that use gluten-free sunflower seed flower. All of these products, as well as sample boxes, are available via ChipMonk's website; the company does not have a brick-and-mortar storefront.

Based on samples sent to CultureMap, the cookies have a chewy, slightly under-baked texture and a mild sweetness that's similar in flavor and appearance to cookies without their low-carb credentials.

Business has grown steadily over the its first year, according to the company, which has it looking to move from a shared commercial kitchen into its own space. Slated to open this summer, the dedicated bakery would allow Downing and Hernandez to expand both their offerings and the number of people they employ.

"We've received extremely positive feedback from our customers who appreciate having delicious, low-carb treats to enjoy while at home during this difficult time," Downing says. "We're seeing more and more people order for themselves as well as sending our products to friends, relatives, and co-workers."

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This article originally ran on CultureMap.

Houston experts give advice for startups seeking financial aid from the CARES Act

from the profesisonals

The United States Congress recently passed the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, and it includes several initiatives that provide financial relief for startups and small businesses — but there are a few things these companies should know about the programs.

Houston Exponential hosted a virtual panel with Carolyn Rodz, CEO of Alice, and Aziz Gilani, managing director of Mercury Fund. They broke down some of the concerns with some of the most popular programs.

The Payroll Tax Deferral stipulation allows you to push back paying your payroll tax, which is 6.2 percent of payroll, Gilani says in the livestream. Companies will be required to pay back half that tax in a year's time and the other half in two year's time.

Small businesses can also apply for emergency Economic Injury Disaster Loans, or EIDL loans, that won't require the first payment for a full year. The interest rate is 3.75 percent for for-profit businesses and 2.75 percent for nonprofits with up to a 30-year term. Businesses could even submit to receive a $10,000 grant on their application.

Then, there's the Paycheck Protection Program, or PPP.

"The PPP program is probably the most lucrative of the three programs for startups," says Gilani, "It's the one that has the largest financial impact."

To submit for PPP, business owners look at their last year's worth of payroll and utility expenses, then average out their monthly expenses, and multiply that by 2.5. Small businesses can submit for that amount or up to $10 million. If the loan is spent on their employees and utilities, it's turned into a grant and not required to be paid back. Gilani recommends checking with the SBA for the specific details, but notes that contract workers can't benefit from PPP and must submit individually for aid.

Regarding these programs, Rodz and Gilani shared some other advice as it pertains to Houston's small businesses and tech startups.

Apply ASAP

Banks are already overwhelmed with applications, and some have paused accepting new applications from some entities. Plus, you have no excuse, Rodz says, since the application is simple and can be completed in one sitting.

"Compared to what a normal government loan application looks like, it is light years better in terms of simplicity," says Rodz.

Go to your own bank

Banks are giving priority to existing customers, Rodz explains.

"Go talk to your banker, and really take the time," Rodz says. "They are prioritizing the clients they have relationships with."

There's a technical reason too, Gilani adds. It's easier for banks to submit for a pre-existing customer, and new customers require more paperwork.

Document everything

Currently, Gilani says, the way the program is working right now is it relies on good-faith self-certification of the business owner. The banks, based on approval, will just put the federal money into your bank account. However, there are people put in roles for this act that will come back to verify that everything was honest.

"Lying to the federal government about money they grant you is a felony that comes with jail time," Gilani says. "It's very important that — after all this craziness passes by and the government comes back to audit what happened — you have a lot of documentation in place in order to show that you were fulfilling your good-faith requirement of answering these questions honestly."

Gilani recommends keeping track of how you calculated your payroll, as well as being able to show the effect of the crisis is key. Then, after you receive the funds, you need to be able to show that you used the funds on your employees.

Consult a lawyer if you have questions on eligibility

There's been a lot of discussion on whether or not venture-backed startups qualify for PPP.

"One of the challenges of the program is that it is being administered by the Small Business Administration, which traditionally hasn't worked with venture-backed and angel-backed companies," Gilani says.

Usually, the SBA requires startups to indicate their employee count, which is not to exceed 500. However, if the company is venture-backed, the SBA requires the inclusion of all the employees of all the portfolio companies. Certain legislators have expressed that this wasn't the intention of the program and are working to provide solutions, Gilani explains, and he and Mercury Fund have been working with a legal team to find immediate work arounds.

There have been lots of lawyers who have been working really hard on trying to solve this problem," Aziz "If anything, we've now created the lawyer stimulus act in the amount of billable hours we've had trying to figure out this problem."

Gilani also recommends getting your lawyer to sign a document confirming that, especially if you are a venture-backed company, that you intended to adhere to the rules of the program.

Houston-founded startup launches new COVID-19-focused sanitizing services

keeping clean

A startup that provides concierge services — like cleaning and dog walking — to apartment renters has expanded its services to outside the apartment units to help multifamily properties with sanitization and disinfection services to protect their communities from COVID-19.

Austin-based Spruce, which was founded in Houston in 2016 and still has an office locally, has a new suite of services for disinfecting common areas — like leasing offices, hallways, mail rooms, etc. — using EPA-compliant chemicals.

"Now, more than ever, it is critical for apartment communities to make sure their common areas are regularly decontaminated and disinfected to help slow the spread of the coronavirus and to prevent as many infections as possible," says Ben Johnson, founder and CEO of Spruce, in a statement.

The services include a weekly disinfectant of high-touch spots — like door handles and elevator buttons — as well as a weekly comprehensive cleaning that involves mopping, surface cleaning, and vacuuming. The startup also offers a bimonthly fogging service that can completely cover both indoor and outdoor areas with disinfectant. This solution can protect surfaces for months, according to the news release.

"This is an unprecedented public health crisis, and we worked closely with our clients to determine the biggest need and hope these services will give apartment communities one more weapon to use in the fight against COVID-19 and will help give both operators and their residents peace of mind," Johnson continues in the release.

Spruce still offers its usual suite of services for individual apartment units such as daily chores and housekeeping and pet care, but extra precautions have been added since the coronavirus outbreak. The service providers are required to go through temperature checks before entering the properties. They also wear gloves, changing them out between units, and are incorporating paper products when able.

Since its founding, Spruce, which used to be called Apartment Butler, has expanded throughout the state and into South Florida, Denver, and Salt Lake City. Spruce has raised over $6 million in venture capital, per Crunchbase data, and that includes funds from Houston institutions like Mercury Fund, the Houston Angel Network, and Fitz Gate Ventures, as well as Austin-based Capital Factory.