Houston-based M1neral has raised $1.6 million in an oversubscribed pre-seed round. Getty Images

A Houston energy tech startup that's digitally optimizing the minerals rights buying and selling process has closed an oversubscribed pre-seed financing round to the tune of $1.6 million.

M1neral's round was co-led by Amnis Ventures and Pheasant Energy, among a few other select investors and strategic partners. The company was co-founded by Jacob Avery, Kyle Chapman, and Shawn Cutter.

"Amnis Ventures is delighted to co-lead the current round of funding in M1neral. The founders come with deep knowledge of oil and gas, coupled with proven, delivered technology implementations in the energy space," says Manuel Silva III, president of Amnis Ventures Inc., in a press release. "The M1neral platform will bring age-old upstream oil and gas processes into the technology revolution of the 21st century that we have come to expect in other sectors."

M1neral's founders believe the mineral rights transaction process — akin to the real estate market in terms of the logistics — is ripe for a tech transformation, as it's been "stuck in the dark ages," according to the release.

"The mineral and royalty market is extensive in value but highly fractionated – over $500 billion in value spread across more than 12 million owners around the country," says Chapman, who serves as CEO, in the news release. "Add to that a lack of quality information and processes that are mostly manual, and it's easy to see what makes these transactions a painful and lengthy process."

M1neral's cloud-based platform acts as a one-stop shop for buyers. They can easily research opportunities and engage with sellers and service providers. The platform optimizes artificial intelligence and workflow automation to close deals quicker than traditional methods, Chapman says in the release.

"M1neral has identified, analyzed, and addressed significant issues on the technology side of the mineral and royalty market. Pheasant Energy has always taken a technology-driven approach and a partnership with M1neral was an obvious next step," says Ryan C. Moore, CEO of Pheasant Energy, in the news release. "The executive team at M1neral is well-versed in the industry and the challenges that both professionals and individual owners face on a daily basis. As the platform develops, everyone will understand the difference in vision with the M1neral team and the efficiencies that will be achieved with their product."

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Houston health tech startup using AI in palliative care scores $256,000 grant to test its product

Med tech moves

A new Houston-based digital advanced care planning company is streamlining some of the most difficult conversations in the health care industry around palliative care.

Founded by Tatiana Fafanova, Dr. Desh Mohan, and Katelin Cherry, Koda Health uses AI to help patients create advance medical care directives and documents—such as a living will—through an easy to use web-based interface.

Koda Health uses a conversational platform where users can enter information about their values, living situations, quality of life wishes, and more while learning about different care options at their own speed. It also uses a proprietary machine learning approach that personalizes audio-video guided dialogue based on the patient's individual and cultural preferences.

The app then autogenerates legal and medical documents, which patients can notarize or electronically witness the forms through the app or on their own.

According to Fafanova, who earned her PhD in in Molecular Medicine at Baylor College of Medicine in Houston and now acts as the company's CEO, what historically has been a time consuming and expensive process, through Koda Health, takes an average of 17 minutes and is completely free of charge to the end user.

"We hope to reduce any outstanding barriers to access that might exist," Fafanova says. "It is very frequently the oldest and the poorest that are the highest utilizers of health care that don't have access to these solutions."

The app is also projected to save health care systems roughly $9,500 per patient per year, as it allows for hospitals and organizations to better plan for what their patient population is seeking in end-of-life-care.

The B2B platform was born out of the TMC's Biodesign Fellowship, which tasked Koda's founding members with finding solutions to issues surrounding geriatric care in the medical center. In March 2020, Koda incorporated. Not long after ICU beds began to fill with COVID-19 patients, "galvanizing" the team's mission, Fafanova says.

"It was no longer this conceptual thing that we needed to address and write a report on. Now it was that people were winding up in the hospital at alarming rates and none of those individuals had advanced care planning in place," she says.

After accelerating the development of the product, Koda Health is now being used by health care systems in Houston, Texas, and Virginia.

The company recently received a Phase I grant of $256,000 from the National Science Foundation, which will allow Koda to deploy the platform at Atrium Health Wake Forest Baptist and test it against phone conversations with 900 patients. Fafanova says the company will also use the funds to continue to develop personalization algorithms to improve Kona's interface for users.

"We want to make this a platform that mimics a high quality conversation," she says.

After Koda completes the Phase I pilot program it will then be eligible to apply for a Phase II award of up to $1 million in about a year.

Koda Health was founded by Tatiana Fafanova, Dr. Desh Mohan, and Katelin Cherry. Photos via kodahealthcare.com

Research: 5 mistakes Houston entrepreneurs should be making

houston voices

We all have heard "you learn from your mistakes," so, why do a lot of startup blogs warn entrepreneurs of the mistakes they shouldn't make when starting a business, but not very many tell them what mistakes they should be making? Some mistakes teach us more than our successes and some of those mistakes are bound to happen anyway, so why not embrace them?

Ben Wiener, a startup founder and managing partner of a Jerusalem-based micro-fund that invests in early-stage startups, provides a list of five mistakes startup founders should be making as early as possible during their entrepreneurial journey in an OnStartups blog post.

Ben Wiener’s Top  Mistakes When Starting a Business 

1. Get Screwed

"It's inevitable. Anyone – your partner, co-founder, employee, investor, or any other character in your unfolding plot – will mess you over. Someone will break your trust, violate a verbal or even written agreement, cut your compensation, or try to steal your equity or destroy your whole company (or all of the above, if you're me). Someone will do something stupid to scuttle your grand plan."

Wiener said to accept the inevitable. Power struggles are real, and the vision you have, someone else on your team may not see it the same way, causing friction. Prepare yourself for this problem and hope it doesn't cause too much damage.

"Upon reflection, you'll likely find that what enabled your misfortune was something you did or didn't do. The screwer-screwee relationship requires at least two people, and there are two sides to every story. Even if you clearly weren't "at fault" – you encountered a terrible, crooked person who did you in – you still need to ask yourself how you allowed yourself to do business with that person," Wiener said.

2. Seek Revenge

"This is an adjunct to the above mistake. Once bitten, your natural impulse may be to bite back. You've lost something – tangible, emotional, some future upside or all of the above – and you want to deny the perpetrator those same things or at least the satisfaction of having caused you that loss."

Wiener recommends trying this at least once. "I predict that not only won't you be successful, but most likely nothing will happen at all, or worse, it will bounce back at you. You'll just feel immature, cheap and dirty and the lingering recollection of that bad feeling probably will be enough to prevent you from playing the revenge card again," he said.

Beyonce said it best, "always stay gracious, best revenge is your paper." Translation: remain cordial, your success will be the best revenge.

3. Tell People Your Venture is in "Stealth Mode"

"It's natural to want to keep your cards close to your vest. Perhaps you're afraid someone will steal your idea, or you lack confidence that you've developed it well enough to convincingly describe it to others. The tech industry has even provided you the gift of a cool-sounding cover: "Stealth Mode," which makes you sound more like a covert spy shrouded in secrecy than an unsure rookie plagued by insecurity. Saying you're in "Stealth Mode" is almost certainly a mistake, for many reasons. First of all, it can easily be interpreted as either pompousness or insecurity, which is bad for your credibility. You're also signaling that you don't trust that person, creating a negative feeling that will likely persist even after you're able to elaborate later on."

You never know who a potential investor or costumer could be, so don't keep everything a secret. Pique people's curiosity. You may even know a potential investor or costumer personally, so "switch to 'Get Out There' mode" as Wiener recommends.

4. Believe that "If You Build It, They Will Come"

"The popularity of the phrase leads some founders to believe, and predict to investors, that they, too, need only to build their amazing new thingy, and the users will come running until the rest looks like a hockey stick. I can assure you that if you just build "it", "they" will almost certainly not come. In startup theory the "coming" of "they" is called "Market Pull" which almost never happens by itself, even among early adopters. Market Pull needs to follow an intense and iterative period of product design, customer development, Product/Market Fit and hands-on "Technology Push" into the target market, which only if successful begets the glorious Market Pull. You'll have to work hard to make the market notice and care, and probably personally engage your early users individually, and that's fine."

5. "Wiener's Favorite Mistake"

"My favorite founder mistake is not appropriately balancing confidence and humility. There's a yin/yang relationship between the two and as you pilot your rocketship forward, you will occasionally find that you've leaned too hard to one side or the other. As a startup founder you need to have a healthy dose of self-confidence. Ok, maybe an unhealthy dose. An overdose. You need to passionately believe that your solution is The Next Big Thing. But overconfidence can be extremely dangerous, for many reasons. It can be misinterpreted by others as arrogance, which can cause damaging interpersonal consequences. If overconfidence morphs into false confidence, it can cloud your vision or your analysis. A great founder must have just as healthy a dose of humility, an understanding of his or her relatively small place in the world. But being too humble can hold you and your venture back."

Wiener said that balancing your self-confidence and humility is something you will have to do every day. You will need to choose which situations require which trait.

What’s The Big Idea? 

When starting your own company, do you want other entrepreneurs to only tell you about their successes? Or, do you want to know their failures as well and what they learned?

"A good entrepreneur wants to talk about their mistakes as well as their successes, and a good investor wants to hear about those mistake and lessons without penalizing the pitch, Wiener said."

If you had a young child or teen in the early 2000s, maybe you heard Hannah Montana sing "Nobody's Perfect." That mantra always has and will remain true. Wiener said to expect mistakes to happen. Embrace them, and then analyze them "as those lessons learned will become important, lasting building blocks in your personal development and the development of your company."

Don't be afraid to make mistakes when starting a business. It would be weird if you didn't, actually. Learn from them and go succeed.

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This article originally appeared on the University of Houston's The Big Idea. Cory Thaxton, the author of this piece, is the communications coordinator for The Division of Research.

Real estate giant to open another downtown Houston coworking hub

going up

A new downtown Houston skyscraper that's on the rise and expected to be completed by the end of the year will offer flexible office space.

Texas Tower will feature The Square, Hines' flexible office product, the international real estate firm announced with Ivanhoé Cambridge. The 18,000-square-foot space will provide "elevated level of service and amenitization akin to a hospitality environment," according to a news release from Hines.

"We recognize the way our tenants conduct business is rapidly changing. The Square at Texas Tower will provide the highest quality flexible work experience in the market supported by an unparalleled dedication to service and integrity. Its offerings accommodate tenants' temporary teams, task forces, and expansions, and welcomes collaboration and variability," says Hines Senior Managing Director John Mooz in the release.

The Square is scheduled to open in early 2022 in the LEED Platinum office building that's being designed by Pelli Clarke Pelli. The flexible space is a result of a collaboration between Hines and Montreal-based firm, Ivanhoé Cambridge.

"We are thrilled to offer this signature workplace service in Texas Tower," says Jonathan Pearce, executive vice president of leasing and development, office and industrial at Ivanhoé Cambridge. "We have listened to our tenants and understand their need for flexibility of service, duration and built environment. As owner of Texas Tower and long-standing partners with Hines, we thrive to put forward innovative solutions such as The Square, to elevate and support the user experience of our customers and their employees' engagement, attraction, retention, and development."

Hines introduced its coworking concept — Hines² — a few years ago. Hines² already is up and running at two locations: 717 Texas, a 33-story Class A office tower in Houston, and The Kearns Building, a 10-story office building in Salt Lake City. As Hines looks to continued expansion, future cities may include Atlanta, Chicago, San Francisco, Washington, DC, and London, per the release.

The Square's first Houston location opened in 2020 at 717 Texas Ave. Image courtesy of Hines