Health care innovators joined Houston Methodist and Texas A&M University's ENMED program to discuss women in health care innovation and venture capital investment. Photo courtesy of Houston Methodist

Houston's health innovation community is making strides every day toward greater quality of care and technology adoption — but what challenges is the industry facing these days?

Through a partnership between Houston Methodist and Texas A&M University's ENMED program at Houston Tech Rodeo, health innovators weighed in on topics surrounding the industry, including biases and investment opportunities.

Missed the conversation? Here are seven key moments from the panels that took place at A&M's new ENMED building in the Texas Medical Center on Thursday, March 3.

“When I look at learning and understanding the priorities — how to take care of patients and also enable those who are doing that work, that’s part of understanding the culture and learning because in the 40 years that I’ve been in the industry, it’s never been the same. There are always things that continue to present challenges from unexpected places.”

​— Ayse McCracken, founder of Ignite Healthcare Network, says on the "Four Fierce Females" panel, referencing the rate of tech disruption and how new technologies, medicine, etc. can change the health care industry and practitioners need to find ways to keep up and stay ahead of the curve.

“Whenever you experience biases, what can you do? You can lean into the fact that we are in a position to help educate and make a change. And that’s going to look different for every one of us, but lean into that instead of feeling down by it.”

— Samantha Lewis, principal at Mercury Fund, says on the "Four Fierce Females" panel, explaining that women across industries should lean into being a change agent when met with bias in the workplace.

“The reason I feel so passionate is (I’m always thinking,) ‘What more can we be doing for our community? What’s working well and what’s not working well,' so I can take that back and make positive changes in our organization.”

— Michelle Stansbury, vice president of innovation and IT applications at Houston Methodist, says on the "Four Fierce Females" panel, explaining that when she's on the other side of the equation as a patient, she really considers her experience and how it could be better.

“Every time you raise money you’re telling a story. You have to figure out what adds value to that story. … I think health care is tricky too because people getting into it aren’t necessarily aware of how complex it is.”

— Dan Watkins, venture partner and co-founder at Mercury Fund, says on the "Where’s My Money At?" investor panel, adding how important it is to investors that founders have specific information — market potential, road map, etc. — when pitching to VCs.

“As a health care startup founder and CEO, you have to wear so many different hats — especially if you’re talking about diagnostics and medical devices. It starts in the science, moves to engineering, and then winds up being commercial. To expect someone to be an expert at all those fields is very difficult.”

— Tim Marx, venture partner at Baird Capital, says on the "Where’s My Money At?" investor panel, adding that, “That’s why we look for the CEOs who really understand where they are, where they’re going, and what they need.”

“One of the things we really appreciate when we engage with founders, it’s not about ‘here’s why my company is great.’ It’s more about understanding the questions your business needs to answer. … If you think about that, that’s what we want to fund. We want to invest in the vision, opportunity, and the people, but we want to fund the — the roadmap — that usually comes with being thoughtful about the questions you’re trying to answer.”

— John Reale, venture lead at TMC Venture Fund, says on the "Where’s My Money At?" investor panel, adding "That's where we get energized."

“The idea to attract talent that’s already built great companies across the US and the world to come here, hire here, and grow here — that’s starting to actually pay off. One of the things that’s big about Houston is it’s really gritty — it’s very ‘show me the data and prove it to me first.’ … We’re having those proven points.”

— Emily Reiser, associate director of innovation at the Texas Medical Center , says on the "Where’s My Money At?" investor panel about the work TMC is doing with its accelerator program.

It's all a numbers game, and Mercury Data Science is about setting up startups for success. Getty Images

Data-focused Houston company arms startups with the AI tools they need to grow

numbers game

While some say a picture is worth a thousand words, having the right data can be make or break. Houston-based Mercury Data Science is using data and artificial intelligence to paint some really specific pictures for its clients.

MDS was born out of a need for Houston-based Mercury Fund's portfolio companies that wanted a firmer handle on artificial intelligence and data science.

"Three years ago, a number of Mercury Fund portfolio companies and potential investments began to have increasingly important data science and AI components," says Dan Watkins, co-founder and managing director of Mercury Fund. "Mercury's partners wanted a deeper understanding of AI, to understand how the cutting edge meets industry use cases."

Mercury Fund's first move was to tap data scientist Angela Wilkins to lead some training, which then turned into even more workshops and advising. The companies ranged from early seed stage startups to companies that had raised over $100 million — and they wanted Wilkins' help, either with the basics of data science or execution of analytics.

"In fact, many of the more established companies were sitting on data assets with plans to build AI-enabled products but didn't have the time or people to really start that process," Wilkins says. "After helping a few companies, we realized the need was pretty deep, and bigger than the Mercury Fund portfolio."

Wilkins, who serves the company as CTO and co-CEO with Watkins, has seen her efforts grow MDS client base. InnovationMap sat down with Wilkins to see how far MDS has come — and where it's going.

InnovationMap: What sort of problems and data solutions are you providing clients?

Angela Wilkins: We love projects that have a direct impact on human health. In health, we build machine learning driven products to create new forms of digital diagnostics to help improve diagnosis in areas like cognitive functioning and depression. We have helped several therapeutics companies accelerate drug discovery and development by extracting insights from biological and imaging data. We have internal tools that use natural language processing to extract knowledge from millions of scientific publications and patents.

We have also worked quite a bit in consumer behavior and some of our physics-oriented data scientists are now working on noise reduction in geophysics technologies.

IM: What feedback do you get from clients?

AW: Company leaders in every sector are feeling the pressure to gain the advantages of AI or risk falling behind. There are many expert level teams available to Fortune 500 organizations. We are one of the very few teams that is entrepreneurial and agile enough to work with earlier stage, high growth organizations.

IM: How does MDS work with Mercury Fund? Has that relationship evolved over the years?

AW: We continue to work with the Mercury Fund portfolio companies but that is a smaller part of what we do. We are venture backed ourselves, and have now become a Mercury Fund portfolio company, with the same growth ambitions as all venture backed companies.

IM: Recently, MDS has seen some growth. How many employees have you added and are you still hiring?

AW: We are up to 20 employees, mostly data scientists, many with 5 to 8 years of experience working in AI, bioinformatics, and data science to provide insights and build products. We are always looking for great data scientists and data engineers to join our team. We also started a fellowship position for recent graduates, and so we can identify and train the next generation of data scientists

IM: What's been the biggest surprise for you as MDS has grown?

AW: We have been able to create this unique culture that thrives on diversity of thought and background. Half of our team is women. We are solving hard problems that benefit from the creativity you get from a wide variety of views.

IM: Where are MDS clients based?

AW: We have clients from San Francisco to Basel. We have learned how to build an integrated, high communication team with the client, so location is not critical.

That being said, we are active in and committed contributors to the Houston innovation ecosystem. Many of us are from a computational biology and bioinformatics background with deep roots in the Texas Medical Center institutions. Houston has amazing talent and we want to show the data scientists that they don't have to leave Houston to work on interesting problems and continue to build skills at the cutting edge while working for companies all over the world.

IM: What sort of trends are you seeing in venture capital? Are these trends happening in Houston?

We are seeing increasing investments in health AI. Fierce Healthcare reports that health AI topped all other sectors last year with $4B invested into AI startups. Andreesen Horowitz has announced their third and largest biotech and health care fund with $750 million to invest: "Machine learning and artificial intelligence [will] have an outsize impact on how we discover drugs and diagnose disease."

We see similar trends in other areas from industrial software to financial services. The upshot is that the adoption of AI creates significant opportunities for startups and significant challenges for larger companies that are not entrepreneurial and able to build their own data science skill set.

As far as Houston goes, the same trends are there but we tend to lag the major technology hubs in adoption. Efforts like TMC Innovation, Station, Rice University/The Ion and Houston Exponential are having a big impact on both the number and pace of startups and, increasingly, those have AI as a key part of their technology stack.

IM: We've talked about how MDS flies under the radar — why do you think that is? Do you think that'll change as you grow?

AW: Our initial focus was on the work for our clients and on building our team. We are ready to be noticed. Thank you for helping us tell the story with this article.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Houston startup raises $6M to scale home-based healthcare platform

fresh funding

As healthcare systems race to expand care beyond hospitals and into the home, investors are placing bigger bets on the infrastructure needed to make that shift possible.

This month, Rosarium Health announced it has raised $6 million in seed funding led by Kalos Ventures, with participation from ResilienceVC, Rock Health Capital, Symphonic Capital, Black Tech Nations Ventures and others.

The investment will help the Houston-based startup continue to build its platform, which features a national network of 800-plus clinicians and 3,000-plus contractors to coordinate home accessibility upgrades and modifications for seniors and people living with disabilities.

For founder and CEO Cameron Carter, the company’s mission grew out of firsthand caregiving experiences.

“From my own personal caregiving experiences, I realized that the benefits exist on paper, but not in reality,” Carter said in a news release. “Families are being left to figure out the paperwork and installations all on their own, which shouldn’t be how this works.”

While Medicare Advantage and Medicaid plans have expanded coverage for home-based services and accessibility modifications, the logistics behind delivering those services often remain fragmented.

Rosarium’s platform coordinates the entire process, from clinical assessments and referrals to contractor management, documentation, reimbursement and installation.

“A clinician can document that a home isn’t safe and a plan can approve a benefit, but there’s no one that’s responsible for making sure the work actually gets done,” Carter says. “We built the missing piece.”

The company was founded in 2021 as Rose Health and was a 2023 participant in the Texas Medical Center’s Accelerator for HealthTech program. It has scaled quickly, building a network of more than 800 clinicians and 3,000 contractors across 34 states.

Rosarium is currently in-network for 1.2 million Medicare and Medicaid lives, with projected coverage expected to reach nearly 4 million by the end of the year, according to the release.

“We’re excited to back Cameron because he and the team at Rosarium are building the infrastructure healthcare needs right now to make the home a safe and comfortable place of care,” Kate Ballinger, investor at Kalos Ventures, added in the release.

As part of the recent investment, Ballinger will join Rosarium’s board of directors.

With eyes on the future, Rosarium plans to grow its partnerships with Medicaid and Medicare Advantage plans, including CalViva and Community Health Plan of Imperial Valley, strengthening its presence in California while expanding access to underserved communities.

Additionally, Carter predicts that home-based healthcare will be part of a broader transformation happening across the industry.

“There’s a growing recognition that health outcomes are shaped by what happens in the home,” he said in the release. “The future of healthcare isn’t just treating people after something goes wrong. It’s creating environments that help prevent those problems in the first place.”

Houston business mogul Tilman Fertitta acquires Caesars in $17.6B deal

Money Moves

Houston billionaire Tilman Fertitta may currently be serving as America’s ambassador to Italy, but his company is as busy as ever. Fresh off its move to revive the Houston Comets WNBA franchise, his company, Fertitta Entertainment, has announced a $17.6 billion deal to acquire Caesars Entertainment, Inc.

Speculation about the deal has been circulating since at least March, according to various media reports. The deal combines Fertitta’s well-known Golden Nugget casino brand with all of the properties in the Caesars’ portfolio, including Las Vegas hotels Caesars Palace, Harrah's, Paris Las Vegas, Planet Hollywood, Horseshoe, The LINQ Hotel, Flamingo, and The Cromwell.

Overall, the combined company will include 60 domestic casino resorts and gaming facilities; online gaming including sports betting, iCasino, and Caesar’s online poker platform; retail sports betting at over 200 third-party locations through the William Hill brand; and over 550 Fertitta Entertainment outlets, including more than 450 Landry's full-service restaurants across America. The companies will combine their loyalty programs, Caesars Rewards, Golden Nugget's 24 Karat Select Club, and Landry's Select Club.

The terms will see Caesars’ shareholders receive $31 per share. Fertitta Entertainment will also acquire approximately $11.9 billion of Caesars' outstanding debt.

The transaction will be financed through a combination of equity contributed by Fertitta Entertainment, assumed Caesars' debt, and new committed debt financing arranged by a group consisting of 10 banks. It is subject to approval by Caesars’ shareholders and government regulators.

Fertitta Entertainment is the Houston-based company behind a diverse array of hospitality businesses, including The Golden Nugget, The Post Oak Hotel, River Oaks District, the Kemah Boardwalk, and Houston’s Downtown Aquarium.

It also operates a number of prominent restaurant brands, including Mastro's Restaurants, Del Frisco's Double Eagle Steakhouse, Morton's The Steakhouse, The Palm, McCormick & Schmick's, Landry's Seafood House, The Oceanaire Seafood Room, and Saltgrass Steak House.

---

This article first appeared on CultureMap.com.

4 Houston-area institutions get $8M for cancer research facilities

fighting cancer

Cancer research capabilities in the Houston area just got an $8 million boost.

On Wednesday, May 20, the Cancer Prevention and Research Institute of Texas (CPRIT) awarded $8 million in grants to institutions in Houston and Bryan for the creation or expansion of so-called “core” cancer research facilities.

“Core facilities provide shared access to advanced technology, equipment, and scientific expertise that may not be available at every institution,” CPRIT says. “These core facilities are vital to not only cancer research but also to the study of diseases beyond cancer.”

Houston-area recipients of these $2 million grants are:

  • A facility at the University of Texas Health Science Center for preclinical support of cancer researchers in Texas to evaluate new safe, effective drugs and drug combinations.
  • The Accelerator for Cancer Therapeutics, operated by Houston’s Texas Medical Center Foundation. The accelerator helps researchers and startups move innovative cancer treatments from the lab to clinical trials.
  • Rice University’s Genetic Design & Engineering Center in Houston. The center enables researchers to collaborate on studies of custom DNA for cancer treatment.
  • A facility at the Texas A&M University System’s Health Science Center in Bryan that aims to speed up the development of cancer therapies.

In addition to those grants, the University of Texas M.D. Anderson Cancer Center, Methodist Hospital Research Institute, Baylor College of Medicine, and Rice University shared $21 million to recruit cancer researchers from other institutions.

The largest of those grants—totalling $4 million—went to M.D. Anderson for the recruitment of renowned cancer researcher Andre Nussenzweig from the National Institutes of Health. His research focuses on how DNA damage and faulty DNA repairs lead to cancer.

Here are the totals for the other CPRIT grants awarded in the Houston area:

  • $12.8 million to Houston-based Indapta Therapeutics for the development of an off-the-shelf therapy that naturally kills cancer cells, combined with an immunity-targeting agent for a type of leukemia.
  • $11.1 million to MD Anderson, including $5 million for a statewide platform to improve long-term health outcomes in adolescents and young adults who survived cancer.
  • $8.4 million to Baylor College of Medicine, including $4.8 million for two training programs for cancer researchers.
  • $6.25 million to UT Health Houston, including $4 million for a biomedical informatics and genomics training program for cancer researchers.
  • $4.4 million to the Texas A&M Health Science Center’s Houston campus, including $2.4 million for a cancer therapeutics training program.
  • $2.75 million to Rice, including $250,000 for a study of ovarian cancer.
  • $2 million to Houston-based March Biosciences for the development of a targeted therapy for treating T-cell lymphoma.
  • $1.15 million to the University of Houston, including $900,000 for a platform for detection of lung cancer.
  • $900,000 to Texas A&M in Bryan to conduct clinical drug trials in rural and underserved communities around the state.
  • $800,000 to Houston- and Israel-based Xerient Pharma for the development of an oral form of a cell-protecting drug called amifostine to protect the upper GI tract from radiation damage during pancreatic cancer treatment.
  • $659,000 to Missouri City-based OmniNano Pharmaceuticals for the development of a two-drug combination to treat the most common form of pancreatic cancer.
  • $250,000 to the University of Texas Medical Branch at Galveston for a novel therapeutic to prevent colitis-related colorectal cancer.