On his failed investor attempt on Shark Tank, Brooks Powell couldn't secure a shark investment for $400,000. Now, he just closed on $2.1 million for his startup. Courtesy of Cheers

Houston hangover pill startup seen on Shark Tank rebrands following multimillion-dollar raise

Three cheers for cheers

When Brooks Powell's Houston-based startup got passed over by the investors on Shark Tank last year, he didn't let it deter him. Instead, the Houston entrepreneur buckled down and started seeking investments off the screen.

It paid off, and Cheers (née Thrive+) recently closed a $2.1 million seed round. The round was lead by NextView Ventures, which has the likes of TaskRabbit, threadUP, and Letgo among its portfolio.

With the new investment, Brooks says the company is rebranding from Thrive, its original moniker, to Cheers.

"Thrive+ doesn't really say anything about what we did or who we are about," Powell says. "We knew we needed something fitting for the alcohol industry but at the same time has the connotation of fun, responsibility, and health."

The process has been daunting, but worth it, Powell says, citing companies like Ring, which changed its company name from Doorbot.

"It would be hard to imagine Amazon buying a company named Doorbot," Powell says.

It's worth noting that Doorbot rebranded also following a similar rejection on Shark Tank.

Once Cheers had its new name, Powell began the process of the transition — relabeling bottles, redoing marketing materials, etc. There's still a long road ahead for the rebranding, but Powell says he wasn't going to drag his feet, since the change would just become more expensive and more challenging. Ring, for instance, had to pay $1 million for its new domain name.

"We wanted to become Cheers as soon as possible, because it would only become harder as time went on," he says.

From student to CEO
Cheers' formula isn't new. The key ingredient, Dihydromyricetin, a natural extract — like caffeine to coffee, which made the FDA process smooth sailing. DHM started being identified as an anti-alcohol treatment in 2012 following experiments on the effects on rats.

Around that time, Powell was a sophomore at Princeton University, and he came across the science surrounding DHM and knew if he could harness the natural extract for commercial use, it'd change the game of hangover health.

"I started working with some of my professors and asking them if it was safe and would it be effective," Powell says.

At the time, there was very little amount of DHM in the United States, so the company became the first to import the ingredient on a large scale.

Powell graduated from Princeton in 2017 and moved his company to its workspace in The Cannon.

Serving up growth
Cheers has seen a tremendous amount of growth over the past year. The company's revenue increased 20 times year over year. A key determiner of success for the company, Powell says, has been strategic marketing and a working product.

"Primarily products such as this, historically, have never worked," he says. "And they've always been marketing toward binge drinkers and partiers."

Another strategy Powell has is giving the company a presence nationwide by having advisers and investors from both coasts.

"What we have tried to do is have our cake and eat it too. We set roots in Houston, but we have our hands in other markets."

In addition to rebranding, Cheers plans to continue its growth, as well as research and development of the product.

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Houston company receives FDA approval for tech that uses sound to blast away cellulite

Zip zap

Soliton, a Houston-based technology company, is using audio pulses to make waves in the med-aesthetic industry.

The company, which is licensed from the University of Texas on behalf of MD Anderson, announced that it had received FDA approval earlier this month for its novel and proprietary technology that can reduce the appearance of cellulite.

MIT engineer and doctor Christopher Capelli first developed the basis of the tool while he led the Office of Technology Based Ventures at M.D. Anderson.

Capelli uncovered that he could remove tattoos more effectively by treating the skin with up to 100 waves per second (about five to 10 times greater than other devices on the market), giving birth to the company's proprietary Rapid Acoustic Pulse (RAP) platform.

In 2012 he formed Soliton with co-founder and entrepreneur Walter Klemp, who also founded Houston-based Moleculin, and later brought on Brad Hauser as CEO. By 2019, the company had received FDA approval for using the technology for tattoo removal.

"The original indication was tattoo removal, which is what Chris envisioned," Hauser says. "The sound wave can increase in speed whenever it hits a stiffer or denser material. And tattoo ink is denser, stiffer than the surrounding dermis. That allows a shearing effect of the sound wave to disrupt that tattoo ink and help clear tattoos."

According to Hauser, the team then turned to a second application for the technology in the short-term improvement in the appearance of cellulite. With the use of the technology, patients can undergo a relatively pain-free, 40- to 60-minute non-invasive session with no recovery time.

Brad Hauser is the CEO of Soliton. Photo courtesy of Soliton

"It works similarly in the fibrous septa, which are the tethered bands that create the dimples and cellulite and the uneven skin. Those are stiffer than the surrounding fat cells in the subcutaneous tissue," Hauser says. "That allows the technology to disrupt those fibrous septa and loosen and release the dimples."

In 2021 the company plans to commercialize their product and get it into the hands of dermatologists, plastic surgeons, and other medical professionals for 25 key accounts—potentially including ones Houston—with a plan for a national rollout in 2022.

And they don't plan to stop there.

The company has already announced a partnership for a proof-of-concept study with the U.S. Navy in which Soliton will aim to use its technology to reduce the visibility of fibrotic scars, and more importantly work to increase mobility or playability of scars.

"Often the scar ends up causing restrictions in motion and discomfort with pressure of even clothing and certainly with sleeping," Hauser says. "We believe based on the reduction in volume and the increase in playability that we saw in our original proof-of-concept study that we will be able to bring benefits to these military patients."

Work on the study is slated to begin in the first half of this year.

In the meantime, the company is making headway with treatment of liver fibrosis, announcing just this week that it's pre-clinical study in animals demonstrated positive results and a reduction in effects by 42 percent seven days after the completion of carbon tetrachloride (CCL4) induction. The RAP technology was also named the best new technology by the Aesthetic Industry Association earlier this month.

"It's really targeting collagen fiber and fibroblasts on a cellular level" Hauser says. "Which we think has numerous potential uses in the future."

UH launches online MBA, plus six new digital degree programs

online ed

The University of Houston's C. T. Bauer College of Business announced this month that it will begin offering fully online Master of Business Administration and Bachelor of Business Administration programs in the upcoming fall semester.

The new offerings are part of the college's 2020-2025 Strategic Plan that focuses on becoming a leader in digital learning and affordable education options.

In addition to the online BBA and MBA degrees, Bauer is launching five other fully online business-minded graduate programs:

  • Online Master of Science in Business Analytics
  • Online Master of Science in Finance
  • Online Master of Science in Management & Leadership
  • Online Master of Science in Management Information Systems
  • Online Master of Science in Supply Chain Management

Over the summer, Paul Pavlou, dean of the Bauer School and Cullen Distinguished Chair Professor, told InnovationMap that enrollment in the Bauer College had increased by about 70 percent, as the school focused on accessibility and affordability amid the pandemic and record job losses.

According to Pavlou, these new degree programs will be an extension of that effort.

"Given the recent developments due to COVID-19, and the broader challenges for higher education, it has become imperative to enhance our ability to leverage technology to offer courses remotely," he says in a statement.

The seven programs will cost between 15 to 20 percent less than traditional degree programs at the university, according to UH. The new programs will charge in-state tuition for all students, regardless of residency, and online students will not pay additional fees.

"These new offerings demonstrate our dedication to providing students financially accessible programs that emphasize innovation, technology, and experiential learning," says Paula Myrick Short, senior vice president for academic affairs and provost at UH. "Student success is our top priority, and as the need for flexible instruction and course delivery increases, we will meet that need."

The Bauer School has long been touted as one of the top schools for entrepreneurship in the country. In late 2020, UH announced that it received a $13 million donation from the Cyvia and Melvyn Wolff Family Foundation to go toward Bauer's well-known programs, as part of the school's $1.2 billion "Here We Go" initiative.

Expert says Houston is the prime spot for creating and testing game-changing resilience solutions

HOUSTON INNOVATORS PODCAST EPISODE 72

The city of Houston, along the rest of the Lone Star State, has been hit from every direction — pandemics, hurricanes, winter storms, and more.

"We're just whipsawed," says Richard Seline, co-founder at the Houston-based Resilience Innovation Hub Collaboratory. "We've gone from back-to-back storms and hurricanes to COVID to snow and ice and its impact on energy. People are just exhausted."

Now, Seline says on this week's episode of the Houston Innovators Podcast, this exhaustion is festering into frustration and anger — and calling for change. The things that need to change, Seline says, includes growing investment and innovation in resilience solutions.

"As a fourth generation Houstonian, it's just so hard to see my hometown get hit persistently with a lot of these weather and other type of disasters," Seline says.

These unprecedented disasters — which are of course occurring beyond Houston and Texas — have also sparked a growing interest in change for insurance companies that have lost a trillion dollars on the United States Gulf Coast over the past seven years, Seline says. Something has got to change regarding preparation and damage mitigation.

Creating conversations about change is exactly what Seline and the Resilience Innovation Hub, which is based out of The Cannon Tower in downtown Houston, is focused on. Following all these catastrophic events, the industry is overwhelmed with data — and now is the time to put it to use on innovation and tech solutions.

"We are drowning in data and hungry for intelligence — actionable intelligence," Seline says, adding that now innovators and entrepreneurs are taking on this data and creating solutions.

The challenge then becomes convincing decision makers to pivot from what they know and are comfortable with to what they don't know and what they aren't comfortable with.

And, Seline says on the show, that needs to happen across the board — from public and private companies to government entities and nonprofits both locally and beyond.

"I think that it's time to flip this on its head and say to the world, 'we got it.,'" Seline says. "Because we know these challenges, we are opening the world to the best ideas to be piloted and demonstrated. All I ask is that we get elective and appointed officials who are open to ideas and solutions. That's how innovation occurs."

Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.