Brittany Barreto wants Pheramor to be known for its science-based dating expertise. Karla Martin/Pheramor

Brittany Barreto was years ahead of the marketplace when she had her idea for a DNA-based dating app, now called Pheramor. At the time, online dating mostly consisted of eHarmony and sending your DNA through the mail to anyone just wasn't done.

"I had the idea at 18 — almost 10 years ago — and, at that time, 23AndMe was shut down because the FDA wasn't comfortable with it," Barreto says. "But then in 2016, everyone is using dating apps and everyone is sending their spit in the mail. It was a perfect time to introduce a techy way to find love."

Even better, now Pheramor's potential users have swiping fatigue, Barreto says, and are going on chronically bad first dates. For Pheramor, this provided an opportunity, and Barreto took it.

Since its nation-wide launch in September, Pheramor has seen over 5000 messages sent on the app, resulting in 19 happy couples to date. Pheramor has even been nominated for Best New Dating App by iDate, an international conference where Barreto recently gave a keynote speech.

Pheramor works like any other dating app — except instead of swiping through endless possibilities, you see your estimated compatibility with each person based on DNA and interests that are either data mined off your social media or you manually plug into the app. Users first download the app, create an account, and request a kit.

While the B-to-C side of things has been a great approach for Pheramor, the technology has attracted interest from other dating apps. Barreto says she looks to expand into B-to-B opportunities where establishing dating companies can use her technology across the world. She made this clear in here iDate keynote address.

"I said there that if you want to factor in DNA to your dating app, you come to us. We are a B-to-C dating app, but we can also offer our genetic testing services for your platform," she says. "We have a letter of intent with a dating app in Russia. We're speaking with high-end matchmakers."

Barreto sat down with InnovationMap to discuss Pheramor's origins and what she has up her sleeves.

InnovationMap: When did you first have the idea for Pheramor?

Brittany Barreto: I first had the idea when I was 18 at Drew University, where I did my undergraduate research in New Jersey. We were in a genetics seminar, and we were learning about genetic-based human attraction — essentially how scientists for decades can predict who's attracted to whom because of your DNA. I raised my hand and asked if I could make a gene-harmony because of this. The professor and the class kind of laughed, but I said, "No, I'm serious, could I use this science for dating?" The professor said, "I mean, I guess you could." So I thought, one day I'll make gene-harmony.

IM: How did you get involved in the Houston innovation scene?

BB: I finished college and came down here to Houston to get my PhD at Baylor College of Medicine, and I just always had this idea, and I kept thinking about it. When I was working on my PhD, I realized I just had way too much personality to work in a lab my whole life. I started taking some entrepreneurship classes and networking at startup events thinking that I could land a career at a biotech company doing sales or innovation. All of the sudden, people started telling me that I had the founder blood, and I thought well I only have one really crazy idea for a DNA-based dating app, and people told me it was a good idea.

IM: What was your first move launching the company?

BB: I joined an accelerator in the medical center through Enventure. They have about 2,000 members — a lot of PHDs and grad students with a lot of great ideas who have no clue how to start a company. So, Enventure puts on evening classes for free, networking events, brainstorming sessions, and the accelerator. I pitched my idea, and got accepted. That's where I found my co-founder Bin Huang. Between January and March of 2017 we were in the accelerator every Thursday.

IM: How did you first get funding?

BB: We did our Demo Day in March at TMCx, and we won. A few angel investors came up to us after words with the idea for an open round, and Bin and I realized this wasn't a class project any more. This was real. We closed our first round of funding in July of 2017, while Bin and I were full-time students. We met our goal, and then we had another round of funding that was oversubscribed.

IM: When did you start accepting swabs and daters?

BB: Our first swab actually came from a swab party I had at my apartment. I invited about 50 friends over, and we had a party. We had a swab station set up in my bedroom and people waited in line in the hallway. That was our first 50 swabs. It was in the spring of 2017, right after our Demo Day.

IM: So, how does Pheramor work?

BB: The science behind attraction based on your DNA is that people are attracted to one another when their immune systems are different — opposites attract is biologically true. This is what all of the animal kingdom does. When we were cavewomen and cavemen, we didn't know who was our uncle and who was our cousin, so we used our nose to figure out who is genetically diverse compared to us, and if you're genetically diverse, then you're probably not my relative, and therefore we'd have healthier children. So, that's the baseline of attraction. We have these HLA genes that make up our immune system, and your pheromones are giving off essentially like a fingerprint of what your immune system is.

At Pheramor, we look at those 11 genes of attraction — we don't look at anything else. Some people might be concerned that I'll know their ancestry or their diseases and sell their data, but we don't look at that. I actually don't even know your gender based on the swab.

My co-founder and I have written this machine-learning algorithm that looks at the genes and figures out quantitatively how likely it is for you to have physical chemistry with one another. Then, in the app, you can have a score and match report to see that.

IM: What were some of the early challenges?

BB: The biggest one when I was 18 was that the market wasn't ready. I called it "geneharmony" because eHarmony and Match were the only players in the game back then. Also, sending your spit in the mail was really weird. It's not so weird any more.

The next one was being a PhD student working in a field that expects everyone to go into academia. There's not enough academic jobs for scientists anymore. We have to start branching out — work in biotech, become consultants, work in other industries. But the issue is there's an old guard in academia. I had a mentor — a woman I worked for — who had only ever trained academics and thinks that that's what scientists do. So, I didn't experience a lot of support in school for starting a company. It's super cool and I'm successful, and it gives Baylor College of Medicine a great name, but when I was in there, I kept Pheramor a secret. I had to essentially sneak around to do it. Get to the lab really early in the mornings to start experiments so I could leave early for investor meetings or hide in the storage closet to make calls to investors.That was definitely difficult.

Another challenge was starting to pitch and being called the "student team." Right off the bat, they felt like they were doing us a favor for letting us pitch. It was cute. So, I had to start doing some strategies to make my company seem more valuable because I was going uphill. I would wear a lab coat and if any other scientist wore a lab coat to a presentation with scientists, it would be weird, but no investor ever asked me why I was in a lab coat.

IM: A year and a half later since your first swab party, how have things changed?

BB: It's funny, I was just thinking a while back about having a Halloween party and thinking, "we could swab people!" So, I'm not above swab parties. For most of 2017, we did a lot of grassroots efforts. We were at Pride Festival, swab parties at bars, Day For Night — some were successful, and others were a waste of money. It was a science of figuring out what works. There's so much education we have — what the swab is, how it works, etc. In person, we got to explain all that and hear what their questions were and take that and turn it into a FAQ section on our site.

IM: Where can people use your app?

BB: We're nationwide. We're actually downloaded in every state in the country. We did what the market told us to. One day I came into the office and asked my co-founder why we wanted to only be in Houston. He told me that people want to date other daters. And I asked him if we knew that or if we just think that. We never actually asked them. So, we surveyed our user base and asked them if they had highly compatible numbers with someone in, say, Chicago, would they want to know. And something like 89 percent said yes. We realized that our consumers are 28- to 38-year-old singles seeking commitment. They are highly educated and have really great paying jobs, and they travel a lot anyways. So, we opened it up on September 7, and in 30 days we saw over 50 percent growth in our user base.

IM: Are you marketing in specific metros?

BB: At first, we did a blanket marketing effort. Then, we looked into which cities had the lowest CAD — the cost to acquire a download. New York City and Boston are the cheapest. San Francisco, Los Angeles, and Miami are also cheaper than Houston.

IM: What are some goals for you and Pheramor?

BB: Short term, it's to continue to improve our app. We're slowly building it in response to what consumer feedback says. I also want to build our team. With the next round of funding, that's what I'm focused on. Our CMO and CFO are part time, and I want them full time. I also want to be hitting critical mass in Boston, New York, LA, Miami. We have a few hundred people in each of those cities, but I want to make those to be a really healthy number.

And something the market has asked for a lot is testing for couples. So, we have a we a website that's about to launch called "WeHaveChemistry.com" for couples to buy two kits and receive a report.

As an academic in genetics, I had to take a lot of ethics classes — for good reason. We've really taken a stance here at Pheramor saying that we will only use genetic data for good. We do not sell our data to anyone, except one organization with the user's consent. The organization is Gift of Life, a national bone marrow registry. The genes for attraction are also genes that fight leukemia and lymphoma. To register to be a bone marrow donor, you have to get your cheek swabbed and you have to get your HLA genes typed. That's what we're doing as a dating app. So through our app, you can consent to be a donor. That to me is how you could use data for good. We're finding people love, and we're finding a girl with leukemia a bone marrow donor.

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Portions of this interview have been edited.

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Houston VC funding surged in 2024, fueled by major Q4 activity

by the numbers

The venture capital haul for Houston-area startups jumped 23 percent from 2023 to 2024, according to the latest PitchBook-NVCA Venture Monitor.

The fundraising total for startups in the region climbed from $1.49 billion in 2023 to $1.83 billion in 2024, PitchBook-NVCA Venture Monitor data shows.

Roughly half of the 2024 sum, $914.3 million, came in the fourth quarter. By comparison, Houston-area startups collected $291.3 million in VC during the fourth quarter of 2023.

Among the Houston-area startups contributing to the impressive VC total in the fourth quarter of 2024 was geothermal energy startup Fervo Energy. PitchBook attributes $634 million in fourth-quarter VC to Fervo, with fulfillment services company Cart.com at $50 million, and chemical manufacturing platform Mstack and superconducting wire manufacturer MetOx International at $40 million each.

Across the country, VC deals total $209 billion in 2024, compared with $162.2 billion in 2023. Nearly half (46 percent) of all VC funding in North America last year went to AI startups, PitchBook says. PitchBook’s lead VC analyst for the U.S., Kyle Stanford, says that AI “continues to be the story of the market.”

PitchBook forecasts a “moderately positive” 2025 for venture capital in the U.S.

“That does not mean that challenges are gone. Flat and down rounds will likely continue at higher paces than the market is accustomed to. More companies will likely shut down or fall out of the venture funding cycle,” says PitchBook. “However, both of those expectations are holdovers from 2021.”

Justice Department sues to block Houston-based HPE's $14B buyout of Juniper

M&A News

The Justice Department sued to block Hewlett Packard Enterprise's $14 billion acquisition of rival Juniper Networks on Thursday, the first attempt to stop a merger by a new Trump administration that is expected to take a softer approach to mergers.

The Justice complaint alleges that Hewlett Packer Enterprise, under increased competitive pressure from the fast-rising Juniper, was forced to discount products and services and invest more in its own innovation, eventually leading the company to simply buy its rival.

The lawsuit said that the combination of businesses would eliminate competition, raise prices and reduce innovation.

HPE and Juniper issued a joint statement Thursday, saying the companies strongly oppose the DOJ's decision.

“We will vigorously defend against the Department of Justice’s overreaching interpretation of antitrust laws and will demonstrate how this transaction will provide customers with greater innovation and choice, positively change the dynamics in the networking market,” the companies said.

The combined company would create more competition, not less, the companies said.

The Justice Department's intervention — the first of the new administration and just 10 days after Donald Trump's inauguration — comes as somewhat of a surprise. Most predicted a second Trump administration to ease up on antitrust enforcement and be more receptive to mergers and deal-making after years of hypervigilance under former President Joe Biden’s watch.

Hewlett Packard Enterprise announced one year ago that it was buying Juniper Networks for $40 a share in a deal expected to double HPE’s networking business.

In its complaint, the government painted a picture of Hewlett Packard Enterprise as a company desperate to keep up with a smaller rival that was taking its business.

HPE salespeople were concerned about the “Juniper threat,” the complaint said, also alleging that one former executive told his team that “there are no rules in a street fight,” encouraging them to “kill” Juniper when competing for sales opportunities.

The Justice Department said that Hewlett Packard Enterprise and Juniper are the U.S.'s second- and third-largest providers of wireless local area network (WLAN) products and services for businesses.

“The proposed transaction between HPE and Juniper, if allowed to proceed, would further consolidate an already highly concentrated market — and leave U.S. enterprises facing two companies commanding over 70% of the market,” the complaint said, adding that Cisco Systems was the industry leader.

Many businesses and investors accused Biden regulatory agencies of antitrust overreach and were looking forward to a friendlier Trump administration.

Under Biden, the Federal Trade Commission sued to block a $24.6 billion merger between Kroger and Albertsons that would have been the largest grocery store merger in U.S. history. Two judges agreed with the FTC’s case, blocking the proposed deal in December.

In 2023, the Department of Justice, through the courts, forced American and JetBlue airlines to abandon their partnership in the northeast U.S., saying it would reduce competition and eventually cost consumers hundreds of millions of dollars a year. That partnership had the blessing of the Trump administration when it took effect in early 2021.

U.S. regulators also proposed last year to break up Google for maintaining an “abusive monopoly” through its market-dominate search engine, Chrome. Court hearings on Google’s punishment are scheduled to begin in April, with the judge aiming to issue a final decision before Labor Day. It’s unclear where the Trump administration stands on the case.

One merger that both Trump and Biden agreed shouldn’t go through is Nippon Steel’s proposed acquisition of U.S. Steel. Biden blocked the nearly $15 billion acquisition just before his term ended. The companies challenged that decision in a federal lawsuit early this year.

Trump has consistently voiced opposition to the deal, questioning why U.S. Steel would sell itself to a foreign company given the regime of new tariffs he has vowed.

Houston space company lands latest NASA deal to advance lunar logistics

To The Moon

Houston-based space exploration, infrastructure, and services company Intuitive Machines has secured about $2.5 million from NASA to study challenges related to carrying cargo on the company’s lunar lander and hauling cargo on the moon. The lander will be used for NASA’s Artemis missions to the moon and eventually to Mars.

“Intuitive Machines has been methodically working on executing lunar delivery, data transmission, and infrastructure service missions, making us uniquely positioned to provide strategies and concepts that may shape lunar logistics and mobility solutions for the Artemis generation,” Intuitive Machines CEO Steve Altemus says in a news release.

“We look forward to bringing our proven expertise together to deliver innovative solutions that establish capabilities on the [moon] and place deeper exploration within reach.”

Intuitive Machines will soon launch its lunar lander on a SpaceX Falcon 9 rocket to deliver NASA technology and science projects, along with commercial payloads, to the moon’s Mons Mouton plateau. Lift-off will happen at NASA’s Kennedy Space Center in Florida within a launch window that starts in late February. It’ll be the lander’s second trip to the moon.

In September, Intuitive Machines landed a deal with NASA that could be worth more than $4.8 billion.

Under the contract, Intuitive Machines will supply communication and navigation services for missions in the “near space” region, which extends from the earth’s surface to beyond the moon.

The five-year deal includes an option to add five years to the contract. The initial round of NASA funding runs through September 2029.