Here's your latest roundup of innovation news you may have missed. Photo via Getty Images

Houston startup news is in full swing this year, and there might be some headlines you may have missed.

In this roundup of short stories within Houston startups and tech, Venus Aerospace makes an impressive appointment, a sportstech startup is headed to SXSW, and more.

Houston space startup names former NASA administrator to board

Jim Bridenstine, formerly NASA's administrator, has joined Venus Aerospace. Photo courtesy of Venus

A Houston-based company that's creating reusable hypersonic drones and spaceplanes has named its latest adviser. Jim Bridenstine, who served as the 13th administrator for NASA, is Venus Aerospace's latest addition to the team.

"I'm excited to be on the board of advisors for Venus Aerospace," Bridenstine says in a statement. "We have been plowing through the atmosphere at Mach 0.7 for over 70 years. This not only wastes time, but it also costs too much money and places greenhouse gasses in the atmosphere. It's time to disrupt the transportation business and Venus Aerospace has the talent to do it."

"Now we're going above the atmosphere, at hypersonic speeds, to get from one side of the planet to the other in a much cleaner way," he continues.

Founded in California in 2020 and then relocated to the Houston Spaceport, Venus is scaling after raising a $20M series A last spring.

"Jim brings a very unique perspective and capabilities from aviator to congressman to administrator," says Andrew Duggleby, CTO and co-founder, in the release. "The thing that gets me most excited is his ability to jump in, understand the context, and know exactly where he can make an immediate difference."

Houston startup snags spot as SXSW Pitch alternate

This Houston tech company has been named an alternate for the 2023 SXSW pitch. Photo via SXSW

SXSW announced 40 finalists for the 15th annual SXSW Pitch competition taking place March 11 to 12.

"Since its inception, SXSW Pitch has been front row to some of the most ambitious startups from around the world, using creative ideas to change their industry’s future," says SXSW Pitch Event Producer Chris Valentine in a news release. "We are thrilled to play a role in helping shape these early-stage ventures and connect them with the resources they need to thrive. This year’s competition will be a representation of the incredible and innovative work being done around the world."

In addition to the finalists for each category, SXSW names a handful of alternates. This year, Houston-based AiKYNETIX was included in the Artificial Intelligence, Robotics & Voice category.

AiKYNETIX, which was founded in January 2021, uses real-time video analytics technology to provide a new option for runners on treadmills. App users — runners and their coaches — then can measure running form and running performance metrics to improve training.

Houston IT and software services company claims spot on 2023 cloud tech awards

Rajasekhar Gummadapu is the CEO of Techwave. Photo via Techwave

Houston-based Techwave has won a prestigious award. The company claimed the “Best Cloud Migration or Systems Integration Solution” award at the 2022-2023 International Cloud Awards.

The award, which recognizes and honors industry leaders, innovators, and organizational transformation in cloud computing, was announced earlier this month.

"It is an honor to receive the Best Cloud Migration award at the International Cloud Awards," says Raj Gummadapu, co-founder and CEO, in a news release. "This accolade is a reflection of our relentless pursuit of innovation and delivering exceptional solutions."

Techwave is a global IT and engineering services and solutions company revolutionizing digital transformations.

Houston startup secures latest level of compliance

Koda Health has cleared a new level of compliance. Image via kodahealthcare.com

Growing Houston company Koda Health has announced that it achieved SOC 2 Type II compliance, a distinction that indicates a certain standard of securing customer data.

"This compliance demonstrates our commitment to protecting our partners and their data through enterprise-level security protocol and standards," the company announced on LinkedIn.

Koda Health was audited by Prescient Assurance, a leader in security and compliance attestation for B2B, SAAS companies worldwide, according to the company.

This energy tech startup is using tech to change the game within the exploration and production industry. Photo via Getty Images

Houston-based startup makes a splash with cloud technology for E&P in oil sector

big computing

A Houston area environmental and energy tech company offers a new pay-as-you-go SaaS application that uses chemistry, physics, artificial intelligence, and cloud technology to build simulation platforms for major exploration and production companies.

AquaNRG Consulting's new technology has already been used by major independent E&P companies, helping to increase energy production and optimization. With new products like aiRock™, it uses cloud-based technology to simulate the physical and chemical processes in natural and human-made porous media driven by data.

The company, founded in 2017 by Babak Shafei, a Ph.D. in Earth and Environmental Sciences, uses data chemistry-physics in a new scientific methodology that uses data-driven methods including machine learning to complement and enhance theoretical modeling on reactive transport modeling (RTM) principles.

"We have been working on the product while also thinking of new ways to provide services needed in the energy industry for a number of years," says Shafei.

Babak Shafei founded Houston-based AquaNRG. Photo courtesy of AquaNRG

AquaNRG has been awarded three prestigious Small Business Innovation Research grants totaling $1.4 million from the US Department of Energy and National Science Foundation.

Shafei says that his team of in the research lab continues to develop and improve the set of techniques that can optimize the oil and gas industry. The technology offers a number of solutions in the geology area, including geochemistry or petrophysical calculations, or even in the environmental area for biogeochemistry and remediation calculations.

"Our technology is oriented to big data and big computing," says Shafei. "The platform is armed machine learning and artificial intelligence that uses the chemistry-physics methodology while using a cloud-based application that is very popular and essential for the energy sector."

Shafei says that during the ongoing coronavirus crisis, the digitization of the energy industry has only increased, and helped AquaNRG grow their brand. They plan to use this upward push to their advantage, by expanding their business and thinking well into the future.

"Our team of researchers is focused on our product and our offerings," says Shafei. "There's a lot of exciting things on our mind, including different verticals in terms of new hiring and new facilities, we're looking forward to rolling forward with that."

Nicolaus Radford — CEO, CTO, and co-founder of Houston Mechatronics Inc. — joins the Houston Innovators Podcast to discuss his plans to take his cloud robotics company global. Photo courtesy of HMI

Houston robotics company founder plans to take his startup global

houston innovators podcast episode 45

What do space and the ocean have in common? Both have a lot left to explore — while also having environments that aren't so easy for human exploration. A former robotics expert at NASA, Nicolaus Radford founded his cloud robotics company six years ago to create a fleet of robots that can help better complete the tasks that offshore industries need.

Radford remembers his time at NASA and how the organization was looking for opportunities to incorporate more public-private partnerships. Through some meetings and tours, Radford began to see that there was an emerging interest in underwater robotics.

"It became evident that not only was there a huge desire and requirement for what people wanted to do under water, but Houston was likely an epicenter for it," Radford says on the Houston Innovators Podcast.

With this in mind — and an entrepreneurial itch — Radford started Houston Mechatronics Inc. in 2014. He's grown the company through a few venture capital raises and across the energy biz and into new industries. Now, he's looking to take the company global with plans for opening new offices in the United Kingdom and in the Asia Pacific region.

"We're absolutely going to be a global company," Radford says, explaining that new clients in these areas are what's calling for the new offices. "The next 12 months of this company are going to be extremely vibrant and dynamic."

Radford also discusses how the pandemic has affected his business and his challenges raising a round in the episode of the podcast. You can listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes

Jay Bhatty looked at how pipeline data reached traders and thought of a better way. Getty Images

Growing Houston company makes pipeline data more accessible for natural gas trading

Digital upgrade

In the energy capital of the world, Houston entrepreneur Jay Bhatty has established a rapidly growing technology hub for the natural gas industry.

Bhatty, a veteran of the natural-gas-trading business, founded Houston-based NatGasHub.com in October 2016 to streamline the traditionally complicated processes of moving natural gas from one point to another, and of unearthing data about natural gas pipelines. After only a little over two years in business, NatGasHub.com already is profitable — a rare feat in the startup world.

The NatGasHub.com platform, which runs on cloud-based software, launched in late 2017. The startup participated in the final accelerator class of the Houston Technology Center; the accelerator program shut down in early 2018.

Bhatty hatched the idea for NatGasHub.com while he was vice president of energy trading at JPMorgan Chase & Co.'s investment-banking arm, where for more than eight years he felt frustrated by the sluggish nature of natural-gas-trading activities.

First off, data about natural gas pipelines — such as whether a pipeline has capacity issues that could trigger a spike in prices — has, for years, been scattered across the web. Now, NatGasHub.com aggregates pipeline data from dozens upon dozens of websites.

Secondly, transferring natural gas from Point A to Point B has historically involved the tedious task of manually typing a "nomination" to enable the sale of natural gas. NatGasHub.com automates that job, freeing up workers' time so they can tackle meatier projects.

Bhatty compares the now-streamlined nomination process to buying an airline ticket on Expedia or booking a hotel room on Hotels.com. Like those travel websites, NatGasHub.com also serves as a one-stop shop, only in this case it offers a single dashboard for selling natural gas. Until NatGasHub.com came along, U.S. companies had relied on cadres of employees to enter natural gas nominations by hand into about 100 gas pipeline websites, and to track gas flow around the clock via spreadsheets and phone calls, Bhatty says.

In a nutshell, NatGasHub.com serves as both a data supplier and a logistics provider for the natural gas industry.

"Software automation has led to reduced costs for our clients," Bhatty says.

As of early December 2018, NatGasHub.com's customer roster featured 32 companies. Bhatty declines to identify the startup's clients, but he says they're well-known names in energy circles. Bhatty says energy producers, utilities, banks, and hedge funds are among the types of clients that benefit from NatGasHub.com.

"We're adding customers at a pretty fast rate," Bhatty says. "We're definitely in growth mode right now."

NatGasHub.com also is adding revenue at a pretty fast rate. From October 2017 to October 2018, revenue soared by 300 percent, while profit skyrocketed by 5,500 percent, according to Bhatty.

NatGasHub.com has accomplished all of that without taking one penny from outside investors, Bhatty says.

The energy industry has taken notice of NatGasHub.com's success. In August, Energy CIO Insights named it one of North America's 10 best energy technology startups for 2018.

Today, NatGasHub.com employs 18 people in Houston. Bhatty envisions the workforce growing to 30 to 35 employees by the end of 2019. Planned expansions into other segments of the energy industry, such as crude oil, and into the Canadian market could bump up that projection. Currently, NatGasHub.com operates only in the U.S.

Among the kinds of workers NatGasHub.com will be hiring over the next year are software programmers, database administrators, and sales representatives.

"It's hard to find any kind of qualified people in this economy with the unemployment rate so low," Bhatty says. "But the good part has been that there's a lot of qualified people who want to work in a startup environment — they want to leave the bigger companies and try something different."

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Baylor College of Medicine launches VC fund to invest in biotech startups

fresh funding

Houston’s Baylor College of Medicine just unveiled a new venture capital fund that backs early-stage biotech startups—and it’s already made its first investment.

BCM Legacy Fund I, funded by philanthropies, invested an undisclosed amount in Houston biotech startup Nemea Therapeutics. Nemea, a spinout of the Baylor College of Medicine and Germany’s Lead Discovery Center, is developing an oral drug to treat metastatic triple-negative breast cancer that no longer responds to currently available therapies.

This type of aggressive cancer spreads from the breast to other areas of the body, such as the bones, liver, lungs or brain. Roughly 38,000 to 57,000 Americans are diagnosed each year with metastatic triple-negative breast cancer. One study showed about half of patients survive past the one-year mark following diagnosis and about one-third survive two years.

“Baylor College of Medicine’s laboratories produce discoveries with the potential to change patients’ lives, and too many of them stall where academic funding ends and private investment has not yet begun,” Dr. Jakub Tolar, president, CEO and executive dean of the Baylor College of Medicine, said in a press release. “The BCM Legacy Fund fills that gap, giving our scientists a path to advance their discoveries to patients.”

The National Institutes of Health awards more than $36 billion per year for biomedical research in the U.S., Baylor said. But some biomedical discoveries “never leave the starting line because they don’t yet fit the economics of venture capital,” the college said.

“The forefront of a new model”

The BCM Legacy Fund aggregates philanthropic capital from private foundations and donor-advised funds. It then invests in startups so they can move beyond that starting line and into later-stage investment rounds. The Greater Houston Community Foundation is the fund’s philanthropic partner.

“It’s exciting to be on the forefront of a new model for philanthropic capital,” said Houston entrepreneur and investor Burton Hanson, managing partner of the fund.

“Not only do we hope to solve a real problem by advancing these therapies to the patients who need them most, but we also hope this model will inspire others in the city and beyond toward philanthropic creativity and a posture of ‘I sacrifice; we win.’”

The fund expects to invest in about 15 early-stage startups over a five-year span. Baylor declined to divulge the amount of money in the fund and the size of the investment in Nemea.

Nemea’s “world-class chemistry”

Hanson oversees the Baylor fund alongside Chicago investor Steve Lehmann, who led the University of Chicago’s Innovation Fund.

Lehmann said Nemea, the fund’s first portfolio company, “has world-class chemistry, Baylor biology, and patients with no good options. Our job is to fund the experiments that carry it to the next handoff, so that industry and later-stage investors can take it from there.”

Based at Houston’s massive Texas Medical Center, Nemea plans to start clinical trials next year in collaboration with Baylor’s Lester and Sue Smith Breast Center.

Nemea previously received $9 million from the Lead Discovery Center and a $1.6 million grant from Baylor. Last year, the startup said it was seeking $25 million to $30 million in seed and Series A funding.

Debra McCoy of Houston, a former managing director at BlackRock and former partner at Bain & Co., and Paul Thomas, co-founder and CEO of Spring-based benefits manager Luscinia Health, sit on the Baylor fund’s governing board. Dr. Paul Klotman, former president, CEO and executive dean of Baylor, is a senior strategic adviser.

How does the fund find investment targets?

The Baylor Legacy Fund relies on two tools to help unearth early-stage biotech startups:

  • High-resolution “innovation maps” of research institutions. These maps surface hidden clusters of innovation, identify rising-star researchers and tie pockets of “innovation supply” at Baylor to areas of “innovation demand” in biotech.
  • AI-enhanced due diligence. AI agents assist with due diligence of early-stage biotech startups. The fund says the platform “distills the frameworks we’ve developed over a decade of teaching and investing into a flexible … diligence environment.”

MD Anderson unveils $3.4B expansion with two new Houston cancer care facilities

major expansion

The cutting edge of cancer-fighting technology and science is getting even sharper after MD Anderson announced last week that it will open two new facilities in the Texas Medical Center within the next five years. Inspiration Tower and Prism will expand MD Anderson’s annual patient load in the TMC to 250,000 annually and will incorporate a variety of new techniques.

The $3.4 billion project will add 2 million square feet to MD Anderson's TMC footprint, bringing its total campus size to 22 million square feet by 2032. Located at the corner of Fannin Street and Holcombe Boulevard, the cancer center says the two new facilities will serve as its new "front door" to the TMC.

“Every detail of these buildings, from the technology to the treatment rooms, was designed around our patients who will receive their care in them and our employees who will work in them. The facilities will serve as a physical representation of hope for the patients and their families who will walk through the doors,” Dr. Jeffrey E. Lee, president ad interim of UT MD Anderson, said in a news release. “Inspiration Tower and Prism are the future of cancer care, and we are grateful for the longstanding support and guidance we’ve received from the UT System Board of Regents to bring these projects to life. These facilities are part of the most impactful capital expansion in UT MD Anderson’s history.”

Prism is especially exciting as it will represent fully half of the linear accelerator treatment in the TMC. Linear accelerator is a radiation treatment that uses magnetically charged fields to deliver targeted external radiation therapy, like shooting cancer with a rail gun. The treatment is safer and has fewer side effects than older radiation treatments.

In addition, Prism will contain 12 MRI machines, four CT scanners, two PET-CT units, 18 radiation vaults and seven radiation simulators. Patient comfort has also been put at a premium with multiple gardens and roof overlooks.

“Every patient we treat deserves an environment that reflects the excellence of the care they receive at UT MD Anderson,” Chris McKee, executive vice president and chief strategy officer at UT MD Anderson, added in the release. “Our new facilities will be innovative, agile, adaptable and beautiful, and they will allow us to care for more patients, more effectively – in an environment that enhances healing and well-being. We are building for our future and for every patient who will be counting on us.”

Prism is slated to open in 2030.

Inspiration Tower will have 25 floors of surgical, diagnostic, and treatment services. At 1.4 million square feet, it’s currently expected to be the largest cancer-specific treatment facility in the United States. The tower will be divided into units for specific types of cancer, making it easy to integrate the advancing research being done all over Houston.

Like Prism, Inspiration Tower is specifically designed to offer comfort and reassurance, with more garden space, terraces, and beautiful scenery to ease patient distress. It is expected to open in 2032.

Tesla will pull the plug on Cybertruck production at Texas factory in 2027

Tesla Talk

Tesla’s Cybertruck, the hulking, stainless-steel pickup that inspired devotion and derision with its science-fiction looks, will cease production next year.

CEO Elon Musk announced the model’s demise Friday, November 6, with a curt post on X, his social media site, simply noting production of the vehicle “will be winding down” around the middle of 2027 at its facility outside Austin, Texas. Musk said the move was to allow increased production of its Cybercab robotaxi.

For the Cybertruck, a pet project of Musk who insisted it was Tesla’s best product, it marks an unceremonious end to one of the auto industry’s most ballyhooed debuts.

“Few vehicles in history have generated as much attention,” said Armen Hareyan, whose Torque News site covers autos. “The Cybertruck became a cultural symbol – loved, mocked and impossible to ignore.”

The Cybertruck rolled onto the scene in a dramatic unveiling in 2019, when a Tesla designer hurled a metal ball at the vehicle to demonstrate its supposedly unbreakable glass, only to see it shatter. He repeated the stunt on another window of the truck only to shatter that one, too.

Even as some critics scoffed, Musk was steadfast.

“I just wanted to make a futuristic battle tank — something that looks like it could come out of ‘Blade Runner’ or ‘Aliens’ or something like that but was also highly functional,” he told Automotive News. He called it “a better sports car than a Porsche 911” and “a better truck than an F-150.”

It struck some as the perfect vehicular reflection of the brash, convention-busting Musk.

“A really controversial vehicle unveiled by a controversial individual into a market where none of the electric trucks have been able to really capture demand,” said Spencer Penn, a former Tesla executive who left the company before the Cybertruck’s launch and now heads software developer LightSource.

Penn remembered watching the unveiling and feeling initially revolted by the sight of the Cybertruck, calling its appearance “madness.” But the more he looked at it, the more his opinion changed. He signed up for a pre-sale reservation, though ended up not getting a Cybertruck when Musk’s promises of a price tag under $40,000 went unmet and the first trucks sold for double or more. Penn called the Cybertruck part of Tesla’s adventurous spirit that drives innovation.

“Some of these bets work and some of these bets don’t,” he said.

While the decision to end Cybertruck production may be driven by sales realities, it's also a reflection of Tesla’s shift to autonomous vehicles, on which Musk is betting the company’s future.

Musk once forecast he’d make 250,000 Cybertrucks a year. Kelley Blue Book estimated Tesla sold just 20,237 of the vehicles last year, down about half from the year prior. Sales through the end of September this year were down another 28%, according to Kelley Blue Book.

If the imposing, sharp-angled, dystopian appearance of the Cybertruck weren’t enough to turn many potential buyers away, Musk did so himself by allying with a panoply of right-wing figures, most notably U.S. President Donald Trump. He alienated some customers as his image morphed from eccentric innovator to polarizing force trading his billions for political influence.

Once-passionate Tesla drivers rushed to sell off their cars, or slapped stickers on the bumper declaring, “I bought this before Elon went crazy.” Organizers staged demonstrations outside Tesla showrooms and urged investors to dump shares of the company’s stock. Anger spilled into violence, with Molotov cocktails hurled at Tesla vehicles, charging stations set ablaze, and dealerships covered in graffiti.

Lovers of the Cybertruck became targets, too, subjected to shouts of “Nazi!” and extended middle fingers.

Ross Blankenship is one of them. When he first laid eyes on the Cybertruck, he felt transported to a world from his childhood, when he would play “Halo,” the sci-fi video game. He had to have it.

“I had that sort of child in me wanting to be part of something cool that would change the future of automotive,” Blankenship said in a call from his Cybertruck as he drove through Sunnyside, Colorado. Even as Blankenship found he agreed with Musk on politics, he hated seeing a vehicle he loved turned into a political symbol. “I never bought it for any other reason than the fascination with the future technology of trucks … so that was a little heartbreaking.”

He would buy another Cybertruck again in a heartbeat, calling its end “a sad moment.”