Here's how the health tech investing industry has had to rethink investing amid a global pandemic. Photo by Dwight C. Andrews/Greater Houston Convention and Visitors Bureau

The coronavirus pandemic has upset countless industries, but if you zoom in on health tech you'll find a mix of opportunities and challenges for both health tech startups and investors.

On a virtual panel hosted by TMC Innovation and Ignite Healthcare Network, four female investors or founders discussed the health tech startup landscape. From advice for getting the attention of investors amid COVID-19 to inequities in health care and innovation, here's what the panel covered.

“I never thought I’d make an investment without meeting the founder face-to-face and visiting their site. The way I got comfortable with it was the opportunity was referred to me — it was a warm lead.”

— Karen Kerr, lead partner at Portfolia Rising America Fund. Kerr says those warm leads are more important now than ever, as is sharing a network.

“The first thing you need to do is understand our fund — or whatever fund you’re trying to go after — and pitch in a way that’s personal. You have to stand out from the beginning.”

— Kyra Doolan, managing director of Texas Halo Fund, says on reaching out to investors. She adds that she looks for a strong team, an innovative solution, a market need, and the terms of the deal. Meanwhile, red flags include if a startup says it has no competition, has unreasonable projections, is led by entrepreneurs who think they know everything, has an unwillingness to be upfront about COVID challenges, and doesn't have enough money in the bank.

“It’s important for companies to be upfront about the problems they’re facing — we all know these problems exist. Addressing that head-on with investors is a good way to go because having trust in a company you’re investing in is important.”

— Doolan continues on the importance of transparency between startup and investor.

“I’m looking for great entrepreneurs that are high integrity people. I’m looking to see that they really understand the industries they are in.”

— Kerr says on what she looks for in a founder. She adds that she tries to understand how they think and the advantages and disadvantages of their leadership are.

“You have to have the art of persuasion. You have this dream and vision — and there may not be anything there yet — but you need to be able to take people on this journey with you.”

— Damayanti Dipayana, CEO and co-founder of Manatee, a member of TMCx's 2020 cohort. She adds, representing the entrepreneur side of the table, that you really have to know yourself and your shortcomings.

“Any investor will look at it like if you can’t get the right people around and sell it to them, how are you going to uproot an industry.”

— Dipayana expands on the importance of growing your team and being persuasive.

“I think the pandemic has certainly shone a bright light on the inequities that exists, so solutions to these challenges are interesting things to think through.”

— Kerr says adding that the first investment from the Rising America Fund was into a fintech startup that serves underbanked communities.

“We’re seeing lower valuations maybe than we would have before this because the effects of this are going to go on for a long time, I would guess. Even when COVID starts to come down, the economic downturn is still going to exist.”

— Doolan says on where investment is at amid the pandemic.

“Ultimately if you want to have real bargaining power over your valuation, find other people who are interested.”

— Dipayana adds to the conversation about valuations. "If only one person interested, they are going to drive the valuation."

“Picking the right partners is such an important decision — don’t take that lightly just because they have money.”

—Chantell Preston, lead partner at Portfolio, co-founder and CEO of Facilities Management Group, and moderator of the event.

From exciting local events — like the upcoming Digital Fight Club — to innovators to know, here's what news was popular on InnovationMap. Courtesy of Digital Fight Club

5 most popular innovation stories in Houston this week

What's trending

Editor's note: This week in Houston innovation news, readers saw headlines of exciting events upcoming — like the Accenture-backed Digital Fight Club coming next month — as well as recaps — like Ignite's annual Fire Pitch Competition that awarded thousands to female-led health tech companies. Plus, an out-of-state tech company opened its first Texas office in Houston. Here's what other news stories piqued InnovationMap's readers' interest.

3 Houston innovators to know this week

This week's innovators to know in Houston all have new and exciting things to announce. Courtesy photos

Who are Houston's innovators to know? Well this week, here's who made headlines, from a well-known Houston software entrepreneur and investor rolling out a new line of business for his company to a new podcast network with Houston roots. Continue reading.

Female founders win big at this Houston health tech pitch competition

Ria Health took home first place at the third annual Fire Pitch Competition. Courtesy of Ignite Healthcare

All it takes is a spark for something to ignite, and, at the third annual Fire Pitch Competition by the Ignite Healthcare Network, eight female founders set the stage on fire.

The Fire Pitch Competition first started in 2017 to shine a spotlight on female entrepreneurs in health care. With two successful events under her belt, Ayse McCracken says she knew she could do more to help these women with their business ideas.

"What we discovered is that it's not enough. Startups get to pitch all over, and they want to invest their time wisely," McCracken says. "And it's not enough for the rest of the ecosystem — the customers — and the investors want companies that actually are investable." Continue reading.

Accenture and InnovationMap team up to bring innovative high-energy event to Houston for the first time

Houston's first Digital Fight Club will be November 20 at White Oak Music Hall. Courtesy of Digital Fight Club

The Houston innovation ecosystem has seen its fair share of panels. Whether the discussion is focused on digital health care or investing, it's structured the same way. However, one organization has redesigned what a typical innovation networking and panel event needs to look like, and Houston gets to see the Digital Fight Club in action in November.

Michael Pratt came up with the idea for Digital Fight Club as a way to liven up technology-focused events and networking opportunities. They plan was to pit two specialists against one another, with a referee steering the conversation. The audience is involved too and can vote in real time for the winner of the, for lack of a better word, debate. Continue reading.

Digital supply chain tech company expands to Houston

Backed by an Austin venture group, Navegate has opened a Houston outpost. Courtesy of Navegate

A growing software company backed by Austin-based Next Coast Ventures has set its eyes on a new office in Houston.

Navegate, a digital supply chain technology and services for the middle market with headquarters in Minneapolis and offices in Chicago, Los Angeles, and Shanghai, announced its new offices in Houston and Kansas City as well as a the beta version of a new software platform. The company now has 100 employees across its six offices.

"At Navegate we have a concierge-level commitment to fulfilling our clients' needs," says Nathan Dey, CEO of Navegate, in a news release. "By establishing Kansas City and Houston offices, we're expanding our footprint to have physical locations in two critical freight hubs. These locations will provide further leverage for both existing and future Navegate clients in their efforts to build best-in-class supply chains." Continue reading.

Young professionals should focus on saving for retirement today, advises this Houston expert

It's National Retirement Security Week — and to celebrate, you need to start thinking about saving. Getty Images

National Retirement Security Week is upon us. In 2006, the United States Senate passed a resolution establishing the third week of October as a time to raise awareness about the importance of retirement savings and to encourage Americans to contribute to their retirement plans. The sponsors of the resolution hoped Americans would think about their retirement goals and assess their progress.

The Senate had good advice. Consider this: less than half of Americans have calculated how much money they will need to have in retirement. Additionally, the average person will spend a whopping 20 years in retirement. This data means you need to be proactive in your retirement planning, especially if you plan to retire early. Experts project that the average American will need 70 – 90 percent of their pre-retirement income to continue to live in their current standard of living. Even with well-funded savings, retirees will face challenges such as high costs of healthcare and the future of Medicare and Social Security. Continue reading.

Ria Health took home first place at the third annual Fire Pitch Competition. Courtesy of Ignite Healthcare

Female founders win big at this Houston health tech pitch competition

pitch perfect

All it takes is a spark for something to ignite, and, at the third annual Fire Pitch Competition by the Ignite Healthcare Network, eight female founders set the stage on fire.

The Fire Pitch Competition first started in 2017 to shine a spotlight on female entrepreneurs in health care. With two successful events under her belt, Ayse McCracken says she knew she could do more to help these women with their business ideas.

"What we discovered is that it's not enough. Startups get to pitch all over, and they want to invest their time wisely," McCracken says. "And it's not enough for the rest of the ecosystem — the customers — and the investors want companies that actually are investable."

So, this summer, McCracken and her team launched a mini accelerator. Thirteen companies participated in the Fire Pitch Customer-Partner Program that matched the companies with potential customers, pilot opportunities, and more. Participating customer organizations have included Humana, Houston Methodist, Memorial Hermann Health System, Gallagher, Texas Children's Hospital, Texas Children's Pediatrics, DePelchin, Next Level Urgent Care, University of Houston College of Medicine, VillageMD, and The Menninger Clinic.

Then, eight finalists of the group were selected to go on to pitch at the Fire Pitch.

Also new this year: More cash prizes. In previous years, the Fire Pitch has around $20,000 on the table. This year's awards doled out $265,000 in cash and investment prizes to six of the eight companies that pitched. The panel of five judges included: Babs Carryer, entrepreneur, and director of Big Idea Center for the University of Pittsburgh's Innovation Institute; Tom Luby, director of the Texas Medical Center Innovation Institute; Kerry Rupp, partner at True Wealth Ventures; Sarah Sossong, principal at Flare Capital Partners; and Andrew Truscott, managing director for Health and Public Service at Accenture.

Here's which companies took home prizes at the 2019 Fire Pitch Competition at the Texas Medical Center's Innovation Institute on October 17.

First place: Ria Health

Ria Health, a San Francisco-based elemental health practice that uses technology and care to provide treatment for Alcohol Use Disorder, was the big winner at the pitch event.

Jen Douglas, CFO of the company, took home first place and the $15,000 prize from Ignite Healthcare Network, but the company also snagged one of the new awards this year. The Texas Medical Center's Innovation Institute awarded Ria Health with a $50,000 investment prize. Ria Health previously participated in the TMCx08 digital health cohort, so the team is very familiar with Houston and the TMC.

Second place: SoundScouts

Sydney, Australia-based SoundScouts is on a mission to help early detection of hearing in school aged children. Carolyn Mee, founder and CEO, represented the company on the stage. She took home second place, which didn't come with an investment or cash prize.

Third place: Savonix

Savonix also didn't walk away with any money, but was recognized by the judges for founder and CEO Mylea Charvet's pitch. The San Francisco-based company is a digital cognitive assessment platform that can easily and cheaply gauge cognitive function.

Texas Halo Fund $100,000 award: PATH EX

The biggest winner of the night based on investment size was Houston-based PATH EX. Led by CEO and co-founder, Sinead Miller, PATH EX has a solution to hospitals' biggest killers: Sepsis. The current TMCx company has a unique pathogen extraction platform that can directly capture and eradicate bacteria.

Miller accepted a new award for this year's program that came with a $100,000 investment from the Texas Halo Fund.

Texas Halo Fund $50,000 award: PyrAmes 

One award wasn't enough for the Texas Halo Fund, which handed out a second new award to Cupertino, California-based PyrAmes. Presented by co-founder and CTO, Xina Quan, the company has created a wearable blood pressure monitor that is reliable and nonintrusive to patients. Quan accepted the $50,000 investment from the fund.

Houston Angel Network $50,000 award: Materna Medical 

San Francisco-base Materna Medical, which created a device to help protect and prepare expecting mothers' pelvic health ahead of childbirth, took home the last investment prize. President and CEO Tracy MacNeal presented the company and accepted the Houston Angel Network's $50,000 award.

This week's innovators to know are all female leaders in different industries within Houston innovation. Courtesy photos

3 female Houston innovators to know this week

Who's who

Female leaders play a huge role in the Houston innovation ecosystem. This week's innovators to know are all women — and are each representatives for different industries. From health care and nonprofits to education, meet this week's who's who of Houston innovation.

Janna Roberson, executive director of Urban Harvest

Courtesy of Urban Harvest

For the first time — thanks to Houston nonprofit Urban Harvest — Houston has caught up with the times for providing access to healthy foods in exchange for government subsidies.

"Double Up is new to Houston, this is the first time we have had a Double Up kind of program here in the metroplex, ever," says Janna Roberson, executive director of Urban Harvest. "It is something that is very common in a lot of states."

Read more about the organization here.

Beena George, chief innovation officer at the University of St. Thomas 

Courtesy of UST

Beena George is the inaugural chief innovation officer at the University of St. Thomas. The former UST business school dean takes on the role at an interesting time for higher education. In the next few years, the industry expects a sizable drop in enrollment, which means UST is tasked with positioning itself in a way that creates value for its students.

"There has been a lot of changes in the industry and in society in general that's requiring higher education institutions to react in a different way," she says. "Some of the things that we've always been doing — creating new programs, moving online, new campuses — now it's even more important to bring that to prominence and figure out how it fits with your university. Things have changed, so the rate at which you're innovating has to increase."

Read more about Beena George here.

Ayse McCracken, founder of Ignite Healthcare Network

Courtesy of Ignite

It's astounding to Ayse McCracken that, while so much of the health care industry is comprised of women, the C-suites of medical companies were mostly male. She wanted to create an organization that helps women climb those corporate ladders — and innovation and startups were a way to do it.

"As we saw this innovation economy and startup space begin to evolve in the city, it seemed that our contribution to this was that we could help incubate and find companies that had high likelihood of success," says McCracken, who is the founder of Ignite Healthcare Network — a group of female health care executives who, among other things, hosts an annual pitch competition.

Read more about Ayse McCracken here.

Ignite Healthcare Network has hosted a pitch compeition for a few years now, but this is the first year for its mini-accelerator program. Courtesy of Ignite

Houston nonprofit launches accelerator program to give women-led startup a leg up within health care

The future is female

Within health care, female consumers make 80 percent of the buying power while women hold 65 percent of the workforce's jobs, according to a recent study. However, when you look at the C-suites in the industry, those percentages fall drastically, says Ayse McCracken.

"For as many women as there are involved in health care, it's not reflected in leadership," says McCracken, founder of Ignite Healthcare Network. "That's what brought us together."

Just 30 percent of health care C-suites are women — and only 13 percent have female CEOs, per the report by Oliver Wyman. Houston-based nonprofit Ignite is an organization comprised of over 150 of these rare female health care execs and focused on clearing a path for future female leaders in the industry.

McCracken founded the network in 2016, and her team established a "Shark Tank-style" pitch competition. After three years of the annual event seeing successes, Ignite is introducing its inaugural mini-accelerator program.

"As we saw this innovation economy and startup space begin to evolve in the city, it seemed that our contribution to this was that we could help incubate and find companies that had high likelihood of success," says McCracken.

Ignite and its partners identified 13 female-led companies from all around the world were selected from over 80 applications and now will go through a 10-week program called the Customer-Partner Program. Each company is paired with a partner and potential customer — from Memorial Hermann and Texas Children's Hospital to Humana and Gallagher.

Here are the participating female-led startups:

  • iTreatMD from San Francisco
  • BabyNoggin (by Qidza) from San Francisco
  • Ria Health from San Francisco
  • Savonix from San Francisco
  • MotiSpark from Los Angeles
  • UpHold Health from Chicago
  • Sound Scouts from Sydney, Australia
  • Augment Therapy from Cleveland, Ohio
  • Oncora Medical Philadelphia
  • Materna Medical from Mountain View, California
  • Path Ex Inc Houston
  • PyrAmes Inc. from Cupertino, California
  • Spoke Health Denver

The Fire Pitch Competition will take place on October 17 at the Texas Medical Center's Innovation Institute. Hundreds of thousands of dollars in prizes is on the line for the 13 companies.

"This year's event is already receiving increased recognition from investors," says Ignite board member and event co-chair, Cheryl Stavins, in a release. "In addition to the top three finalists sharing awards that include entry into the TMCx Digital Health Accelerator, over $125,000 in professional services, and cash prizes of $10,000, Fire Pitch participants will be eligible for investment prizes."

The Texas Halo Fund will be awarding its $100,000 investment prize, called the Corona Award, along with a $50,000 prize from TMC Innovation Institute.

Beyond the new program, McCracken says she wants to expand Ignite's reach and capabilities for its members and startups — including new investment opportunities.

"I think what we're doing now is reaching out beyond Houston and looking at how we can continue to grow the opportunity to have an impact and help women-led companies and women in organizations," she says.

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The HTX TechList has launched — here's why you should get involved

Logging on

Houston Exponential has hit launch on the HTX TechList, and now startups, investors, entrepreneurial hubs, and corporations can officially opt into the data-focused and networking-enabled platform.

The HTX TechList went live yesterday, August 13, at a virtual event hosted by HX. (Note: InnovationMap was the media partner for the event.) The platform acts as a one-stop shop for Houston's innovation ecosystem. Mayor Sylvester Turner joined the stream to explain the role the platform will play in connecting the various players within the industry.

"The HTX TechList is our city's leading resource for in-depth information about Houston startups, investors, hubs, and corporations," Mayor Turner said at the event. "Within the Houston region, the HTX TechList will build the connections and density that were never before possible in such a huge spread-out city."

Another benefit to the new platform, as HX Chief of Staff Serafina Lalany says, is the data it is going to be able to provide about the ecosystem.

"We needed a centralized datasource classifying startups, investors, startup development organizations, and corporate innovators," she says on the Houston Innovators Podcast. "There was not any good resource on the internet that was verified, centralized, and adhered to a data standard."

The platform, which has derived from an initiative from Startup Nation Central in Israel, has already proven its usefulness abroad and has over 70,000 monthly users. In a panel at the event, Eran Levy of Enel Innovation Hub Israel described how the tool has benefitted him and his work in scouting startups.

"The ability to have a tool to map, in our case, 8,000 startups, when we look for specific categories or a specific tech area, it helps us a lot," he says. "It saves a lot of time and effort, and, more importantly, it makes it much more effective because I reach out to the right startups."

On the panel, Barbara Burger, president of Chevron Technology Ventures and chair of Houston Exponential, echoed the opportunity for connectivity the platform will enable — but in a specific way for her organization as an investor.

"I view the TechList as the tool that's going to enable a couple of things. One is the scouts to access even more opportunities, but I think the other piece is also for co-investors in startups to be able to find us," she says, adding that while CTV has been around for a couple decades, visibility is always something they'd like to improve on.

Now that the platform is launched, anyone can join to make a profile on the site. Startups, investors, hubs, and corporations can also launch profiles that will be vetted by HX's data team.

Nonprofit pivots to telemedical treatments and therapies amid pandemic

telehealth

Naomi West has been homebound since COVID-19 became a threat in February. Sitting in front of her computer screen, much of her time is spent pursuing her graduate degree in physics from Rice University and teaching courses through Zoom. Most of her virtual meetings are the same except for one recurring appointment. Every 90 days, West logs on her computer to sit with a Planned Parenthood Gulf Coast (PPGC) nurse practitioner and check-in on her gender-affirming hormone therapy.

West, a Houston transwoman, made her first appointment to receive hormone therapy in October, prior to the pandemic. As she embarked on her transition, she saw an immediate change within herself.

"There was absolutely no going back...it was a night and day difference within 24 hours," she explains.

West has been receiving treatment for ten months at Planned Parenthood. After being hospitalized for depression and drowning in hundred-hour work weeks, West was feeling hopeless. Inspired by her best friend's journey with hormone therapy at Planned Parenthood, West felt motivated to change her life.

"The difference [tran scare] makes is immeasurable to say the least," she says, "I couldn't imagine having it any other way. I couldn't imagine being without it."

Trans care is offered at two Houston-area Planned Parenthood locations—Prevention Park and Northville. Since the coronavirus, Planned Parenthood's services have gone virtual, allowing Texans outside of Houston to experience the service.

"COVID-19 has really changed the way we approach patient care," says Dr. Bhavik Kumar, medical director of Primary and Trans Care at PPGC.

The centers first rolled out virtual appointments on April 1, allowing them to safely serve 5,539 patients in four months.

"We've moved a lot of our care towards telehealth, which has allowed people to access care in a way that is safer for them and also protects our frontline workers," explains Dr. Kumar.

The healthcare provider has six centers in the Houston area, as well as two in Louisiana, that are providing virtual appointments with experts as well as access to curbside birth control. Trans care first became available at Planned Parenthood in 2019, and includes gender-affirming hormone therapy for patients over 18.

"We went into providing trans care knowing that a lot of folks have bad experiences accessing healthcare and perhaps bad experiences with providers," says Dr. Kumar. "There's a lot of fear and anxiety in accessing care for trans communities, whether it's being misgendered, having their dead name used, or having a number of different things that can lead to traumatic experiences," he explains.

To a transgender person, access to health isn't just a hot button political issue but a lifeline. Like West, many transgender Americans struggle with depression and feelings of hopelessness.

In a 2019 survey from The Trevor Project, 29 percent of trans and non-binary youth reported that they'd attempted suicide while 54 percent considered it. The striking statistics are a glimpse into the struggles trans and nonbinary people face daily as they experience discrimination, violence, and cohersion due to their gender identity.

West, like many in the trans community, shared the same fears prior to her first appointment.

"I've always come down with what I say is white coat syndrome, but within 10 minutes I realized it was all completely unfounded," she explains.

PPGC follows an informed consent treatment model, meaning patients are not required to receive an approval letter from a therapist to begin treatment. After speaking with a patient to explain the risks and benefits of hormone therapy, patients can make the decision to move forward.

"It was just a conversation," explained West, "I felt no judgement. It was just support for my decision to begin hormone therapy and suggestions for how to go about it, when to go about it—they were nothing if not accommodating.

Telehealth lends itself as a suitable substitution for in person care, according to West. Many of the appointments are spent discussing her psychological state and feelings regarding the treatment, and she goes for a blood test every 90 days. West, who has been very careful to prevent exposure to COVID-19, has felt at ease meeting virtually with her nurse practitioner.

Thanks to the ability telehealth has to connect us with people regardless of distance, transgender Texans have access to care at any distance. One of the core benefits of trans telehealth is that "folks who are further away from our health centers, perhaps in rural communities, don't have to make the several hour drive to the health center and then back," says Dr. Kumar.

The convenience has allowed PPGC to accommodate 240 gender-affirming hormone therapy appointments and serve 176 transgender patients.

More than cut travel time, the emergence of telemedicine also welcomes comfort. "They get to be in the safety and the comfort of their home or wherever they do feel safe," explains Dr. Kumar, "They can have other folks around them if they want, whether it's family or friends."

"We are constantly analyzing the way we provide care, but even more so in a different way during the pandemic," shares Dr. Kumar. Telehealth services include birth control consultation, emergency contraception, long-acting birth control implant consultations, PrEP follow-ups, primary care, STI treatment, and other healful visits to address problems like pelvic pain or bleeding.

Of the many services that are now remote, Depo birth control shots and oral contraceptives, are available curbside.

"Patients don't have to get out of the car; they don't have to worry about touching the door handle or anything else they have anxiety around," explains Dr. Kumar, "They're able to access the care they need without having to deal with potential exposure."

Will telehealth at PPGC become a permanent staple? Only time will tell, but Dr. Kumar has found that patients have found the service to be helpful during the COVID-19 pandemic.

"We always strive to provide as many options for our patients so that they can get the healthcare that's best for them," shares Dr. Kumar.