Innovative Houston-area hardtech startup closes $5M seed round

fresh funding

FluxWorks has closed its seed round and plans to commercialize its flagship magnetic gear technology. Photo via fluxworks.co

Conroe-based hardtech startup FluxWorks has closed a $5 million seed round.

The funding was led by Austin-based Scout Ventures, which invests in early-stage startups working to solve national security challenges.

Michigan Capital Network also contributed to the round from its MCN Venture Fund V. The fund is one of 18 selected by the Department of Defense and Small Business Administration to participate in the Small Business Investment Company Critical Technologies Initiative, which will invest $4 billion into over 1,700 portfolio companies.

FluxWorks reports that it will use the funding to drive the commercialization of its flagship Celestial Gear technology.

"At Scout, we invest in 'frontier tech' that is essential to national interest. FluxWorks is doing exactly that by solving critical hardware bottlenecks with its flagship Celestial Gear technology ... This is about more than just gears; it’s about strengthening our industrial infrastructure," Scout Ventures shared in a LinkedIn post.

Fluxworks specializes in making contactless magnetic gears for use in extreme conditions, which can enhance in-space manufacturing. Its contactless design leads to less wear, debris and maintenance. Its technology is particularly suited for space applications because it does not require lubricants, which can be difficult to control at harsh temperatures and in microgravity.

The company received a grant from the Texas Space Commission last year and was one of two startups to receive the Technology in Space Prize, funded by Boeing and the Center for the Advancement of Science in Space (CASIS), in 2024. It also landed $1.2 million through the National Science Foundation's SBIR Phase II grant this fall.

Fluxworks was founded in College Station by CEO Bryton Praslicka in 2021. Praslicka moved the company to Conroe 2024.

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Axiom Space and FluxWorks are the latest Houston-area companies to receive funding from the Texas Space Commission. Photo via Getty Images.

Texas Space Commission doles out $5.8 million to Houston companies

On A Mission

Two Houston-area companies have landed more than $5.8 million in funding from the Texas Space Commission.

The commission granted up to $5.5 million to Houston-based Axiom Space and up to $347,196 to Conroe-based FluxWorks.

The two-year-old commission previously awarded $95.3 million to 14 projects. A little over $34 million remains in the commission-managed Space Exploration and Aeronautics Research Fund.

Axiom Space, a commercial spaceflight company, said the new funding will go toward the development of its orbital data center capabilities. By the end of this year, Axiom plans to launch two free-flying nodes in low-Earth orbit to support its orbital data center operations. More nodes are set to go online in the coming years.

“Axiom Space is actively evaluating how our [orbital data center] architecture can enhance critical U.S. capabilities, including the proposed Golden Dome missile defense architecture,” Jason Aspiotis, global director of in-space data and security at Axiom, said in a news release. “In this context, real-time, around-the-clock availability, secure orbital processing, and AI-driven autonomy are vital for ensuring mission success.”

Founded in 2021, FluxWorks provides magnetic gear technology that was developed at Texas A&M University.

In 2024, FluxWorks was one of two startups to receive the Technology in Space Prize, funded by Boeing and the Center for the Advancement of Science in Space (CASIS), which manages the International Space Station National Laboratory.

FluxWorks is testing the performance of magnetic gear in microgravity environments, such as the International Space Station.

“Gearboxes aim to reduce the mass of motors required in a variety of applications; however, the lubricant needed to make them work properly is not designed for use in extreme environments like space,” according to a 2024 news release about the Technology in Space Prize. “Magnetic gears do not require lubricant, making them an appealing alternative.”

The Texas Space Commission granted $25 million to Houston aerospace companies Starlab Space and Intuitive Machines earlier this year. Read more here.
This week's roundup of Houston innovators includes Bryton Praslicka of FluxWorks, Sarah Hein of March Biosciences, Jerin Varkey of Offer Approved. Photos courtesy

3 Houston innovators to know this week

who's who

Editor's note: Every week, I introduce you to a handful of Houston innovators to know recently making headlines with news of innovative technology, investment activity, and more. This week's batch includes three founders across therapeutics, space, and sports tech.

Bryton Praslicka, CEO and founder of FluxWorks

FluxWorks, a hardtech startup, opened its new home-base in Conroe, Texas. Photo courtesy FluxWorks

FluxWorks, a hardtech startup, recently opened its new base of operations in Workhub Developments’ Conroe location.

Founded in College Station by CEO Bryton Praslicka, FluxWorks specializes in making contactless magnetic gears for use in extreme conditions. At 9,000 square feet, the new Conroe facility is a result of discussions with Governor Greg Abbott's office and the Greater Houston Partnership, who introduced the company’s leadership to the Conroe Economic Development Council, encouraging their move, Praslicka tells InnovationMap.

“The pieces of the puzzle were all there, and with the support of the local, state, and federal government, we were thrilled to move to Conroe,” Paslicka says. Read more.

Sarah Hein, co-founder and CEO of March Biosciences

Sarah Hein joins the Houston Innovators Podcast to discuss how the company will use its series A funding. Photo via march.bio

When cancer originates in a patient, their body fights as hard as it can against the disease, but sometimes, the cancer wins the battle. However, one Houston cell therapy startup is working on an artillery of therapeutics to help arm patients' bodies to win the war.

Founded in 2022, March Biosciences is a cell therapy company born in part out of the Texas Medical Center's Accelerator for Cancer Therapeutics, where Sarah Hein served as inaugural entrepreneur in residence. In that role, she met her co-founders Max Mamonkin and Malcolm Brenner.

Now, leading the startup as CEO, Hein tells the Houston Innovators Podcast that with March's lead product, MB-105, an autologous CD5 CAR T cell therapy, the name of the game is to zero in on advancing this particular treatment to its phase II trial next year.

"Targeted therapies are targeted. Our target is expressed on these T-cell cancers, and there are a couple other cancers, like Mantle Cell Lymphoma or Chronic Lymphocytic Leukemia," Hein says on the show. "Unfortunately, I don't think there's ever going to be a magic bullet that is going to hit a huge swath of these cancers. We're going to continue to chip away at these cancers by creating really elegantly engineered therapies against these different kinds of tumors.

"March, in general, is committed to this idea that we're going to continue to work on difficult tumors and different targets with our uniquely engineered targeting strategy against these diseases. As we expand into the next year, you'll see us speak on this a little more on how we're going to continue to work on new diseases that havent been addressed previously," she continues. Read more.

Jerin Varkey, founder and CEO of Offer Approved

Looking to score the best deal on your next game ticket? A new Houston-founded app promises to revolutionize the resale market. Photo via LinkedIn

Online platforms have long simplified the process of buying, selling, and trading event tickets. But what happens when your tickets don’t sell or when you’re stuck with costly season tickets you can’t use? You might end up giving them away or leaving them unused, leading to a financial loss either way.

This is the challenge that Houstonian Jerin Varkey is willing to address with Offer Approved, a new platform that empowers sellers and buyers, guaranteeing that no seat goes unused.

The idea took root around two years ago when Varkey, a passionate sports fan and season ticket holder, faced a new challenge. After becoming a parent, he found himself unable to attend every game. Frustrated with traditional resale platforms, he quickly realized that high fees and limited time made it difficult to sell all his tickets, causing him to lose money each time.

"I knew there was someone out there willing to pay $50," he recalls. Read more.

FluxWorks, a hardtech startup, opened its new home-base in Conroe, Texas. Photo courtesy FluxWorks

Hardtech startup moves into Houston area with new Conroe facility, eyes tests in space

LEADING TECH

FluxWorks, a hardtech startup, recently opened its new base of operations in Workhub Developments’ Conroe location.

Founded in College Station by CEO Bryton Praslicka, FluxWorks specializes in making contactless magnetic gears for use in extreme conditions. At 9,000 square feet, the new Conroe facility is a result of discussions with Governor Greg Abbott's office and the Greater Houston Partnership, who introduced the company’s leadership to the Conroe Economic Development Council, encouraging their move, Praslicka tells InnovationMap.

“The pieces of the puzzle were all there, and with the support of the local, state, and federal government, we were thrilled to move to Conroe,” Paslicka says.

CEO Bryton Praslicka founded the company in College Station. Photo courtesy FluxWorks

The enterprise recently won the MassChallenge’s technology in space prize, allowing them to test four gears at the International Space Station (ISS) National Laboratory in 2026. The prize is funded by Boeing and the Center for the Advancement of Science in Space, or CASIS which runs the ISS. Praslicka says their new offices will expand their manufacturing capacity by having all levels of production on-site.

"Since our inception, FluxWorks has been fragmented, having an office in one location, manufacturing in another location, and testing in a third location," Praslicka explains. "This is a new chapter for us to begin having the entire process, from design to testing and validation and then shipping to customers, all under one house.”

The magnetic gears FluxWorks makes are suited to space applications because they do not require lubricants, which can be difficult to control at harsh temperatures and in microgravity, to minimize friction. Through their partnership with the ISS, Praslicka says FluxWorks has strengthened their connections to other space tech companies including Axiom and Boeing, and it's opened the door to collaborations with the new Texas Space Commission.

“Now the NASA Johnson Space Center is even officially supporting our proposal to the Texas Space Commission as a proposed teaming partner,” Praslicka says.

The new facility received special security certification from the National Institute of Standards and Technology, increasing FluxWorks’ opportunities to work with NASA and defense contractors. The Texas Manufacturing Assistance Center awarded FluxWorks for “outstanding innovation” during its recent ribbon cutting ceremony.

The company, named a finalist for the 2024 Houston Innovation Awards, cleaned up in the 2023 Rice Business Plan Competition with a $350,000 investment prize from Houston group, Goose Capital.

FluxWorks has moved into its 9,000-square-foot facility in Conroe. Photo courtesy FluxWorks

FluxWorks, based down the road in College Station, has received the opportunity to test its tech in collaboration with the ISS. Photo via fluxworks.co

Innovative Texas hardtech startup secures award to test in space

ready for liftoff

A Houston-area startup and Greentown Houston member has secured a prestigious space prize.

College Station’s FluxWorks, which develops and commercializes non-contact magnetic gearboxes for use in extreme environments, was one of two startups to receive the Technology in Space Prize, which is funded by Boeing and the Center for the Advancement of Science in Space, or CASIS, manager of the International Space Station National Laboratory. Los Angeles-based Symphony Bio also received the honor.

Through the MassChallenge startup accelerator program, the two companies now get to utilize the research environment available through the ISS National Lab. CASIS and Boeing awarded Symphony Bio and FluxWorks more than $630,000 in total through the contest. Approximately $20 million has been awarded for more than 30 projects, which have already launched to the space station, since the event’s beginning.

"Boeing is excited to partner with CASIS to support the advancement of cutting-edge research using the unique environment of the orbiting laboratory,” says Scott Copeland, director for ISS research integration at Boeing, in a news release. “Enabling research that can help millions diagnosed with cancer and advancing mechanical innovations of non-contact magnetic gear technology will benefit human life in both the harsh environment of space and terrestrial environments.

"There are many smart people out there with great ideas who can leverage the space station to advance innovation, and these two companies serve as an inspiration to them all,” he continues.

FluxWorks, which won the 2023 Rice Business Plan Competition, will use the space station to test performance of a new gear. The magnetic gear will be tested to assess its startup behavior, dynamic operation, vibrational characteristics, and seal and bearing behavior in microgravity. Gearbox's goal is to reduce the mass of motors required in a variety of applications, but the lubricant needed to make them work is not designed for use in extreme environments, like space. Magnetic gears do not require lubricant, which makes them an alternative.

Symphony Bio will use the orbiting laboratory to develop a new cancer treatment that hopes to harness the immune system to fight tumors.

Want to work for one of the top startups in Houston? Some of the best in Houston are hiring. Photo by Tima Miroshnichenko from Pexels

Looking for a job? These 2023 Houston Innovation Awards finalists are hiring

calling all applicants

More than half of this year's startup finalists in the Houston Innovation Awards are hiring — who's looking for a job at one of the best startups in Houston?

When submitting their applications for the 2023 Houston Innovation Awards, which is taking place November 8 at Silver Street Studios, every startup was asked if it's hiring. Twenty-seven of the 35 startup honorees said yes, ranging from over 20 to just one positions open at each company.

Click here to secure your tickets to see which of these growing startups win.

Here's a look at which of the top startups in Houston are seeking new team members.

Double-digit growth

When it comes to the awards finalists looking to scale their team by 10 or more new hires, five finalists are growing rapidly.

Medical practice software platform RepeatMD, fresh off a $40 million raise — which included participation from Houston-based Mercury — is reportedly growing its team. The company, which has 115 employees already, is looking for over 20 new hires.

Female-owned business Feelit Technologies, which is using nanotechnology for preventive maintenance to eliminate leaks, fires and explosions, increase safety and reduce downtime, has 50 employees, and only three of which are in Houston – for now. The company hopes to grow its team by 12 to 15 employees in Houston alone.

Square Robot, an energy industry-focused robotics company that recently grew its presence in Houston, is hiring 10 to 30 new team members. It has 24 employees already in Houston.

Solugen, an alternative chemicals business, has around 140 of its 200 employees in Houston. The company, which has raised over $600 million to date, is hiring an additional 10 to 15 new hires.

Additionally, Blue People, also a finalist in last year's awards, is hiring 25 new employees. The company was founded in 2015 in Mexico and relocated its primary operations to Houston in 2020. Blue People, which develops software innovation for its clients, has over 150 employees — 10 of whom, including C-level executives, are based in Houston. Some of the company's new hires will be based in town.

Steady growth

Four Houston startups are hiring within the six to 10 team member range — all with fairly significant employee counts already.

A finalist in last year's awards too, Venus Aerospace, a hypersonics company on track to fly reusable hypersonic flight platforms by 2024, is again growing its team. With 48 on-site employees and 23 working remotely, Venus's team will add another five to 10 employees.

Syzygy Plasmonics, a deep decarbonization company that builds chemical reactors designed to use light instead of combustion to produce valuable chemicals like hydrogen and sustainable fuels, has 112 employees in Houston and plans to hire another eight to its team.

Lastly, Fervo Energy, which recently raised $10 million, has 63 full-time employees (34 in Houston, 29 outside of Houston) and looking to hire seven more.

Seeking selectively

The following awards finalists are looking to grow their teams by just a handful or so — between one and five — of new hires:

  • ALLY Energy, helping energy companies and climate startups find, develop, and retain great talent.
  • CaseCTRL, an AI-powered surgery scheduling and coordination software for optimized procedures.
  • CellChorus, using AI to evaluate immune cell function and performance to improve the development and delivery of therapeutics.
  • FluxWorks, making frictionless gearboxes for missions in any environment.
  • Helix Earth Technologies, decarbonizing the built environment and heavy industry.
  • Hope Biosciences, a clinical stage biotechnology company focused on the development and delivery of adult stem cell based therapeutics.
  • Innovapptive, empowering the deskless workers in operations, maintenance and warehouses by unlocking the power of SAP through mobility.
  • INOVUES, re-energizing building facades through its non-invasive window retrofit innovations, making building smarter, greener, and healthier for a better and sustainable future.
  • Koda Health, , a tech-enabled care coordination service to improve serious illness care planning and drive savings for value-based care at scale.
  • Molecule, an energy/commodity trading risk management software that provides users with an efficient, reliable, responsive platform for managing trade risk.
  • Rhythm Energy, 100 percent renewable electricity service for residential customers in Texas.
  • Starling Medical, bringing the future of a proactive and predictive home-based healthcare system to patients today through passive AI powered at home urine screening.
  • Taurus Vascular, pioneering a new era of aortic aneurysm treatment by developing minimally invasive catheter solutions to drive better long-term patient outcomes.
  • Tierra Climate, decarbonizing the power grid faster by helping grid-scale batteries monetize their environmental benefits and change their operational behavior to abate more carbon.
  • UpBrainery Technologies, an innovative educational technology company that provides personalized and adaptive learning experiences to learners
  • Utility Global, a technology company converting a range of waste gases into sustainable hydrogen and syngas.
  • Voyager Portal, helping commodity shippers identify root causes of demurrage, reduce risk and streamline the entire fixture process.

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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.

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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.
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