The Artemis Fund, which focuses on providing access to capital to women-led companies, made its first investment. Getty Images

New Houston venture capital firm makes first investment

Follow the money

The new female-founded venture capital fund that launched in Houston in April has made its first investment. The Artemis Fund led Burbank, California-based U-Nest's $2 million Seed round.

U-Nest is a user-friendly app that allows for users to create a 529 college savings plan in less than five minutes and $25. This tool provides access to financial tools that previously were only available to wealthy families who could afford financial advisers.

Syndicate partners, including The Draper Dragon Fund, Band of Angels, and Pasadena Angels, also contributed to the round.

"I'm very excited that The Artemis Fund has led my seed round because they've proven to be an amazing partner that brings a lot of value to the company beyond the money," says U-Nest founder, Ksenia Yudena, in a news release. "During the fundraising process, they made a lot of strategic introductions to the partners and advisers that helped us grow the business. They also coordinated the due diligence with other co-investors that made the process very smooth."

Prior to launching her startup, Yudena managed $1.2 bullion in business as vice president at Capital Group America Funds, and she has over 10 years of experience in financial services.

"I believe that we need more female led funds, because they understand the needs and struggles of the female founders," Yudena continues in the release. "We're on the same page in all matters related to the fundraising and building the successful company."

The Artemis Fund was founded by Stephanie Campbell, Leslie Goldman, and Diana Murakhovskaya, all of whom have years in investment experience from various institutions across the country and here in Houston. The three women wanted to provide a platform to funnel funds to female-founded startups that are constantly overlooked by other VC funds. Only 2 percent of funding from VC firms goes to women-led institutions, the release cites.

Goldman was introduced to the U-Nest team through one of the startup's advisers.

"We are thrilled to announce this as our first investment," Goldman says in the release. "We just need 14 more founders like Ksenia. With her drive, determination, deep expertise in this area, and her ability to attract top, seasoned talent, she sets the bar high for us as we look for additional portfolio companies."

U-Nest's mission of making financial information more accessible to families who need it most was especially attractive for the fund.

"Through her experience, [Yudena] saw a real world need for access to education planning and developed an incredibly impressive product to meet that need," Goldman continues in the release. "U-Nest squarely aligns with the Artemis thesis: stellar management team, traction with a product that will have tremendous impact on people's lives, scalable with a large addressable market opportunity, and a realistic exit strategy that can produce outsized returns."

Peter Mansfield serves as U-Nest's chief marketing officer and previously served as a consultant to Marqeta, which has a slew of successful clients — to the tune of Square, Affirm, DoorDash, Kabbage and Instacart — and recently closed a Series E valuation of $2 billion.

"We couldn't be more excited to have Artemis lead our round. From our first meeting it was clear that The Artemis Fund team understood our mission to eradicate the college loan crisis and shared our desire to champion women entrepreneurs," Mansfield says in the release. "The Artemis Fund is a perfect fit for U-Nest."

The Artemis Fund was founded by Diana Murakhovskaya (left), Leslie Goldman (center), and Stephanie Campbell.Courtesy of The Artemis Fund

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Houston health tech startup secures $27M in financing

money moves

A virtual health care and analytics provider startup has closed its latest round of funding for a total of $27 million in financing.

Medical Informatics Corp. closed a $17 million series B co-led by Maryland-based Catalio Capital Management and California-based Intel Capital. The financing also includes an additional $10 million in debt led by Catalio through Catalio’s structured equity strategy, according to a news release.

“We are excited to have had this round co-led by Catalio and Intel Capital," says Emma Fauss, CEO and co-founder of MIC, in the release. "Catalio brings significant financial and technical resources, while Intel Capital possesses strong operational and industry experience, and we look forward to continuing to leverage both firms’ expertise as we continue to scale.”

MIC created an FDA-cleared virtual care platform, called Sickbay, that gives health care providers and hospitals away to remotely monitor patients in any setting with vendor-neutral real-time medical device integration, workflow automation and standardization.

“We have seen an increased demand for our solution as our clients face significant staffing challenges and are looking for ways to amplify and empower their workforce," Fauss says in the release. "Some of the largest health care systems in the country are standardizing their infrastructure on our Sickbay platform while consolidating IT spend."

Other participants in the round included new investors TGH Innoventures, Tampa General Hospital’s innovation center and venture fund, and Austin-based Notley — as well as existing investors San Francisco-based DCVC, the Texas Medical Center, and nCourage, a Houston-based investment group.

As a part of the round, two individuals from Catalio will join the board at MIC. Jonathan Blankfein, principal at Catalio will join the board of directors, Diamantis Xylas, head of research at Catalio, will join as board observer.

“Health care systems’ need for high-caliber, cost-saving, data-driven technology is only going to increase, and MIC’s proprietary platform is perfectly positioned to address some of the most critical clinical challenges that health care organizations face,” says Blankfein in the release. “We look forward to continuing to support MIC’s strong team as it continues to deliver better outcomes for health care organizations and patients alike.”

Amid the pandemic and the rising need for remote care technology, MIC scaled rapidly in the past two years. The company will use the funding to continue fueling its growth, including hiring specialized talent — deep product specialists and client engagement teams — to support long-term strategic partnerships.

“One of the main barriers to advanced analytics in health care is the siloing of data and today there is a significant need for a platform to enable flexible, centralized and remote monitoring at scale and on demand,” says Mark Rostick, vice president and senior managing director at Intel Capital, in the release. “Medical Informatics is setting a new standard of health care by removing these data silos for health care providers of all sizes and transforming the way patients are monitored from hospital to home with real-time AI.”

Innovation pioneers on why Pumps & Pipes is so uniquely Houston

A Day of Discussion

Pumps & Pipes 2022, Houston’s premier innovation event, is rapidly approaching on December 5 from 8 am-3 pm at the Ion.

Leading up to this exciting event, InnovationMap spoke with several of the speakers representing various industries to ask them, "What makes Pumps & Pipes uniquely Houston?"

Here are their responses:

Dr. Alan Lumsden, chair of cardiovascular surgery at Houston Methodist and Pumps & Pipes founder:

“…What can we learn from one another? What is inside the other person’s toolkit? A lot of solutions are already out there but sometimes we don’t have the ability to see into their toolkit. This has become the driving force behind Pumps & Pipes throughout the last 15 years…”

Dr. Lucie Low, chief scientist for microgravity research at Axiom Space:

“‘Houston, we have a problem’ — everyone knows Houston as a major player in the aerospace industry as highlighted by this famous quote from Apollo 13. What people may not know and what is exciting to me about Houston are the opportunities for collaboration with other industries that can help drive our mission to build communities of healthy humans in space. With the largest medical center in the world right next to Johnson Space Center, Houston is a prime city for innovation at the intersection of medicine and space.”

David Horsup, managing director of technology at OGCI Climate Investments:

“The remarkable diversity of thought, culture, and expertise that exists in Houston creates an incredible cauldron for innovation. The city has been the leading light in pushing frontiers in energy, aerospace, and medicine for many years, and Pumps & Pipes is a powerful ‘node’ for some of the brightest minds across these industries to connect, collaborate, and innovate. I am extremely excited to see how Houston is pivoting to embrace the challenge that climate change is presenting, and the city will play a defining role going forward.”

Purchase tickets for Pumps & Pipes here and follow Pumps & Pipes on social media at LinkedIn, Twitter, and YouTube.

Houston startup founders report on clean energy tech efficacy

seeing results

A team from Rice University has uncovered an inexpensive, scalable way to produce clean-burning hydrogen fuel.

In research published this month in the journal Science, researchers from Rice’s Laboratory for Nanophotonics, in partnership with Syzygy Plasmonics Inc. and Princeton University’s Andlinger Center for Energy and the Environment, detail how they converted ammonia into carbon-free fuel using a light-activated catalyst.

The new catalyst separates the liquid ammonia into hydrogen gas and nitrogen gas. Traditional catalysts require heat for chemical transformations, but the new catalyst can spur reactions with just the use of sunlight or LED light.

Additionally, the team showed that copper-iron antenna-reactors could be used in these light-driven chemical reactions, known as plasmonic photocatalysis. In heat-based reactions, or thermocatalysis, platinum, and related precious (and expensive) metals like palladium, rhodium, and ruthenium are required.

“Transition metals like iron are typically poor thermocatalysts,” Naomi Halas, a co-author of the report from Rice, said in a statement. “This work shows they can be efficient plasmonic photocatalysts. It also demonstrates that photocatalysis can be efficiently performed with inexpensive LED photon sources.”

Halas, Rice's Stanley C. Moore Professor of Electrical and Computer Engineering, was joined on the project by Peter Nordlander, Rice’s Wiess Chair and Professor of Physics and Astronomy, and Rice alumni and adjunct professor of chemistry Hossein Robatjazi. Emily Carter, the Gerhard R. Andlinger Professor in Energy and Environment, represented Princeton University.

“These results are a great motivator," Carter added. "They suggest it is likely that other combinations of abundant metals could be used as cost-effective catalysts for a wide range of chemical reactions.”

Houston-based Syzygy, which Halas and Nordlander founded in 2018, has licensed the technology used in the research and has begun scaled-up tests of the catalyst in the company’s commercially available, LED-powered reactors. According to Rice, the test at Syzygy showed the catalysts retained their efficiency under LED illumination and at a scale 500 times larger than in tests in the lab setup at Rice.

“This discovery paves the way for sustainable, low-cost hydrogen that could be produced locally rather than in massive centralized plants,” Nordlander said in a statement.

Earlier this month, Syzygy closed its $76 million series C round to continue its technology development ahead of future deployment/

Houston is home to many other organizations and researchers leading the charge in growing the hydrogen economy.

Earlier this year, Mayor Sylvester Turner announced he's determined to position the city as hub for hydrogen innovation as one of the EPA's Regional Clean Hydrogen Hubs. Organizations in Texas, Southwest Louisiana and the surrounding Gulf Coast region, known and HyVelocity Hub, also announced this month that it would be applying for the regional funding.

And according to a recent report from The Center for Houston's Future, the Bayou City is poised to "lead a transformational clean hydrogen hub with global impact."