3 Houston innovators to know this week

Who's who

This week's Houston innovators to know include Adam Kuspa of The Welch Foundation, Amanda Ducach of Social Mama, and Jay Rogers of IBC Bank. Photos courtesy

During this ongoing pandemic, Houston innovators are coming up with solutions and relief across every industry.

This week's three Houston innovators to know include a researcher who is helping fund scientists across the state, a Houston momtrepreneur looking out for the women wearing several hats at home, and a banker who wants to help you keep your financial information secure online.

Adam Kuspa, president of The Welch Foundation

The Welch Foundation, led by Adam Kuspa, funds basic research across the state of Texas — research that's important both in and out of pandemic. Photo courtesy of The Welch Foundation

Adam Kuspa observes the impressive work researchers across the state are doing across the chemical and biomedical disciplines as president of Houston-based Welch Foundation, but his job looks a little differently now. As COVID-19 has taken center stage in the world, people are desperate for a cure and vaccine.

However, as the race to find these solutions, Kuspa — along with other researchers and scientists — is watching carefully to see how the disease and its to-be solutions will affect research and medical innovations as a whole.

"What people forget in the rush to get a drug out is that you could also make matters worse," he says. "Drugs don't automatically cure or are neutral. They can also do harm. So, you want to be careful not to make the situation worse." Click here to read more.

Amanda Ducach, founder and CEO of SocialMama

Amanda Ducach quickly upgraded her app, SocialMama, to help increase virtual access to health care professionals for moms stuck inside during the COVID-19 crisis. Photo courtesy of SocialMama

With much of society working from home, a huge burden has been placed on parents who are juggling their careers and homeschooling their children for the rest of the academic year. In many situations, the bulk of this responsibility has weighed heavy on moms, and a Houston momtrepreneur knew how to help them out.

Amanda Ducach, founder and CEO of SocialMama, created her app to link up moms for friendship and mentorship, and she was planning on expanding the app to add in experts and professionals into the mix this summer. However, when COVID-19 hit, she realized this was something moms needed ASAP.

"We learned quickly that moms' behaviors were drastically changing throughout this process of the pandemic, but also that over a million babies were going to be born in isolation," Ducach says on this week's episode of the Houston Innovators Podcast. "That really changes the walk around maternal health." Click here to read more and stream the podcast.

Jay Rogers, chairman and CEO of IBC Bank

You are more vulnerable to financial cyber threats in a crisis. Here are some tips for staying safe. Photo courtesy of IBC Bank

You know what you might not have thought of during these unprecedented times? Cybersecurity. Lucky for you, Jay Rogers of IBC Bank has. He shared his tips for keeping your financial information safe online in a guest column for InnovationMap.

"This is a time of great need," he writes. "Unfortunately, it is also a time of great opportunity for criminals. As Houstonians respond, as they always do, be sure to protect yourself while you are helping our community." Click here to read the article.

You are more vulnerable to financial cyber threats in a crisis. Here are some tips for staying safe. Getty Images

Houston banking exec shares tips for keeping online information secure amid coronavirus threats

Guest column

While Houston residents are aware of the health and financial impacts of COVID-19, the threat to individual security due to the rise in online scams has only just begun.

Scammers have already started to prey on the unsuspecting victims who are now working, shopping and banking almost entirely online. A recent report by the Federal Trade Commission stated that due to the rise in online hacking and phishing scams, coronavirus-related frauds have already reached nearly $12 million in losses, impacting more than 15,000 Americans.

As individuals continue to become more and more dependent on technology during this extended time at home, it is important to be cautious and knowledgeable to avoid possible scams. Below are tips to consider when navigating coronavirus-related security threats.

Verify the URL

When dealing with financial matters, it is important to check the URL to ensure the site is secure and legitimate before clicking on a link provided by a third-party source or found within an email thread. Scan the link for misspellings and other abnormalities that appear to be out of place. It may also be helpful to visit the original website in a separate browser to compare the web addresses side by side. Illegitimate website links can lead to unsecure sites, viruses, and possible identity theft.

Check donation sources

Especially during this time, many Houstonians are donating to relief organizations working to fight the impacts of the coronavirus. Unfortunately, there are several faux fundraising campaigns claiming to support disaster relief, and the scammers behind these sites are preying on the goodwill of unsuspecting donors.

Consider supporting a charity that is well-known, transparent, and established, rather than a new organization with little history or information. Red flags may include sources requesting wire transfer information or a social security number, or charities applying pressure to donate immediately.

Guard financial information

It is especially important to guard financial information during this time to prevent identity theft. Many false stimulus check portals have surfaced online, encouraging visitors to provide personal information such as checking account details or credit card numbers.

The IRS encourages individuals to practice due-diligence and to be wary of details that may identify a scam. For example, noticing key words such as "Stimulus Check" or "Stimulus Payment" in place of the official term of economic impact payment.

If you have filed your taxes electronically, this payment will automatically be deposited into your bank account. For those who receive a check for the impact payment, it is important to remember that one of the best ways to protect financial assets is to be sure they are deposited in a reliable, federally insured bank account. Accounts are insured by the FDIC up to $250,000 per depositor, per insured bank, for each account ownership category, ensuring that your money is safe and protected.

Monitor accounts regularly

With the rise of online payments, it is important that individuals examine their accounts regularly to verify spending activity. While many assume that a scammer will take a large amount from a bank account, immediately triggering security functions and resulting in a text message to the account holder, this is not always the case.

Oftentimes, scammers will begin with smaller purchases, testing limits before stealing more. Additionally, it is important to check credit activity during this time to monitor for possible identity theft.

When it comes to making purchases and payments online, it is important to practice caution, even with sites that may appear to be trustworthy. By paying attention to the details and red flags that may signify a fraudulent site, individuals may be able to avoid online scams.

This is a time of great need. Unfortunately, it is also a time of great opportunity for criminals. As Houstonians respond, as they always do, be sure to protect yourself while you are helping our community.

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Jay Rogers is the chairman and CEO of IBC Bank.

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Cancer-fighting company based in Houston emerges from stealth and snags $74M in its latest round

fresh funds

A Houston-based clinical-stage biopharmaceutical company has raised millions in its latest round.

Tvardi Therapeutics Inc. closed its $74 million series B funding round led by new investors New York-based Slate Path Capital, Florida-based Palkon Capital, Denver-based ArrowMark Partners, and New York-based 683 Capital, with continued support and participation by existing investors, including Houston-based Sporos Bioventures.

"We are thrilled to move out of stealth mode and partner with this lineup of long-term institutional investors," says Imran Alibhai, CEO at Tvardi. "With this financing we are positioned to advance the clinical development of our small molecule inhibitors of STAT3 into mid-stage trials as well as grow our team."

Through Slate Path Capital's investment, Jamie McNab, partner at the firm, will join Tvardi's board of directors.

"Tvardi is the leader in the field of STAT3 biology and has compelling proof of concept clinical data," McNab says in the release. "I look forward to partnering with the management team to advance Tvardi's mission to develop a new class of breakthrough medicines for cancer, chronic inflammation, and fibrosis."

Tvardi's latest fundraise will go toward supporting the company's products in their mid-stage trials for cancer and fibrosis. According to the release, Tvardi's lead product, TTI-101, is being studied in a Phase 1 trial of patients with advanced solid tumors who have failed all lines of therapy. So far, the drug has been well-received and shown multiple durable radiographic objective responses in the cancer patients treated.

Dr. Keith Flaherty, who is a member of Tvardi's scientific advisory board and professor of medicine at Harvard Medical School, offered his support of the company.

"STAT3 is a compelling and validated target. Beyond its clinical activity, Tvardi's lead molecule, TTI-101, has demonstrated direct downregulation of STAT3 in patients," he says in the release. "As a physician, I am eager to see the potential of Tvardi's molecules in diseases of high unmet medical need where STAT3 is a key driver."

Networking with high-status colleagues isn't successful across industries, per Rice University research

houston voices

In a timeless scene from the mockumentary "This Is Spinal Tap," an 80s metal band swaggers in for a performance only to find they're billed second to a puppet show. Though the film is farce, real musicians often come to question the value of playing second fiddle to anyone – even an A-lister.

Now research by Rice Business professor Alessandro Piazza and colleagues Damon J. Phillips and Fabrizio Castellucci confirms those musicians are right to wonder. In fact, they discovered, the only thing worse than performing after a puppet may be opening up for an idol. Bands that consistently open up for groups with higher status, the researchers found, earn less money – and are more likely to break up than those that don't.

"Three cheers," The Economist wrote about the researchers, for confirming "what many people in the music industry have long suspected – that being the opening band for a big star is not a first class ticket to success."

While the findings may be intuitive for seasoned musicians, they fly in the face of existing business research. Most research about affiliations concludes that hobnobbing with high-status colleagues gives lowly newcomers a boost. Because affiliations give access to resources and information, the reasoning goes, it's linked with individual- and firm-level successes such as landing jobs and starting new ventures.

Both individuals and organizations, one influential study notes, benefit from the "sum of the resources, actual or virtual, that accrue to an individual or group by virtue of possessing a durable network of more or less institutionalized relationships."

That's largely because in many fields up and comers must fight to be taken seriously – or noticed at all. This problem is often called "the liability of newness:" In order to succeed, industry newcomers first need to be considered legitimate by the audience they're trying to woo.

Showing off shiny friends is a classic solution. In many fields, after all, linking oneself with a high-status partner is simply good branding: a shorthand signal to audiences or consumers that if a top dog has given their approval, the newcomer must surely have some of the same excellent qualities.

Unfortunately, this doesn't always hold true – especially in the creative world, Piazza's team found. In the frantic world of haute cuisine, for example, a faithful apprentice to a celebrity chef may actually suffer for all those burns and cuts in the star's hectic kitchen. Unless they can create meals that are not just spectacular, but show off a distinct style, consumers may sneer at the newcomer as a knockoff of the true master.

So what determines if reflected glory makes newcomers shine or merely eclipses them? It has to do with how much attention there is to go around, Piazza said. While partnering with a star helps in some fields, it can be a liability when success depends on interaction between audience and performer. That's because our attention – that is, ability to mentally focus on a specific subject – is finite. Consumers can only take in so much at a time.

Marketers are acutely aware of this scarcity. Much of their time, after all, is spent battling for consumer attention in an environment swamped by competitors. The more rivals for advertising attention, research shows, the less a consumer will recall of any one ad. In the world of finance, publicly traded companies also live and die on attention, in the form of analyst coverage of their stocks and angel investors' largesse.

Musicians who perform live, Piazza said, are battling for attention in a field that's gotten progressively more fierce, due to lower album sales and shorter career spans. Performing in the orbit of a major distraction such as Taylor Swift or Beyoncé, however, only reduces the attention the opening act gets, the researchers found. Though performances are just a few hours, the attention drain can do lasting harm both to revenue and career longevity.

To reach these conclusions, the researchers analyzed data about the live performances and careers of 1,385 new bands between 2000 and 2005. Supplementing this with biographical and genre information about each band along with musician interviews, the team then analyzed the concert revenue and artistic survival of each band.

They discovered that in live music, high status affiliation onstage clearly diluted audience attention to newcomers – translating into less revenue and lower chance of survival.

In part, the revenue loss also stems from the fact that even in big stadium performances, performing with superstars rarely enriches the underdogs. According to a 2014 Billboard magazine report, headliners in the U.S. typically absorb 30 to 40 percent of gross event revenues; intermediate acts garner 20 to 30 percent and opening acts for established artists bring as little as $15,000.

The findings were surprising, and perhaps dispiriting, enough for the researchers to carefully spell out their scope. Affiliation's positive effects, they said, are most often found in environments of collaboration and learning – for example academia. In these settings, a superstar not only can bestow a halo effect, but can share actual resources or information. In the music world, however, the fleeting nature of a shared performance makes it hard for a superstar band to share much with a lower-ranked band except, perhaps, some euphoric memories.

Interestingly, in many businesses it's easy for observers to quickly assume affiliations between disparate groups. In the investment banking industry, for instance, research shows that audiences infer status hierarchies among banks merely by reading "tombstone advertisements," the announcements of security offerings in major business publications. Readers assume underwriting banks to be affiliated with each other when they're listed as being part of the same syndicate – even if the banks actually have little to do with each other beyond pooling capital in the same deal.

In the music business, star affiliations mainly help an opening act a) if the audience understands there's an affiliation and b) if they believe the link is intentional. But that's not always the case because promoters and others in Big Music often line up opening bands. When possible, though, A-listers can do their opening acts a solid by making it clear that they've chosen them to perform there.

Otherwise, Piazza and his colleagues concluded, the light shed by musical supernovas typically gets lost in the darkened stadium. For the long term, business-minded bands may do best by working with peers in more modest venues – places where the attention they do get, like in Spinal Tap's classic metric, goes all the way up to 11.

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This article originally ran on Rice Business Wisdom and is based on research from Alessandro Piazza, an assistant professor of strategic management at Jones Graduate School of Business at Rice University.

Houston data management company closes $18M in fresh funding

money moves

A Houston company that's created a centralized log management solution has closed a new round in funding.

Graylog closed its $18 million growth equity round led by Richmond, Virginia-based Harbert Growth Partners, a new investor, and Minneapolis, Minnesota-based Piper Sandler Merchant Banking, the company announced today. The round also received contribution from existing investors Houston-based Mercury Fund and Integr8d Capital, as well as Germany-based HTGF.

"This investment will enable us to accelerate our global go-to-market strategies and enhancements to the award-winning solutions we deliver for IT, DevOps, and Security teams," says Andy Grolnick, CEO of Graylog, in a press release. "We're excited to have the support of new and existing investor partners to help us realize our potential."

Andy Grolnick is CEO of Graylog. Photo courtesy

Per the release, the funds will go toward growing the company's platform that allows its users the ability to capture, store, and enable real-time analysis of terabytes of machine data.

"Graylog is well-positioned to be a long-term winner in the rapidly growing market for log management and analysis solutions," says Brian Carney, general partner of Harbert Growth Partners, in the release. "With its focus on delivering a superior analyst experience coupled with a vibrant Open Source community, the company provides customers a compelling alternative to other log management solutions plagued with high complexity and high total cost of ownership (TCO). We are thrilled to partner with the Graylog team to leverage the significant opportunity that lies ahead for the company."

Over the past year, despite the challenging business climate, the company saw growth in business and even expanded its European operations, according to the release.

"As a long-standing customer, Graylog is strategic to our success. We are excited to see new investment that will enable the company to accelerate innovation and continue to deliver excellent log management and SIEM solutions," says Rob Reiner, CTO of PROS, in the release.