3 Houston innovators to know this week

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This week's roundup of Houston innovators includes John Chappell of BlockApps, Kyra Doolan of Texas HALO Fund, and Shaun Noorian of Empower Pharmacy. Courtesy photos

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from venture capital to pharmacy — recently making headlines in Houston innovation.

John Chappell, director of energy business development at BlockApps

Siloed data, lack of consistency, and confusing regulations are all challenges blockchain can address, says this expert. Photo courtesy

Houston has all the potential to lead the energy transition — it just needs to make sure it has all the right ingredients. According to John Chappell, a key ingredient is blockchain. He explains in a guest article for InnovationMap.

"Houston has earned its title as the Energy Transition Capital of the world, and now it has an opportunity to be a global leader of technology innovation when it comes to carbon emissions reporting," Chappell writes. "The oil and gas industry has set ambitious goals to reduce its carbon footprint, but the need for trustworthy emissions data to demonstrate progress is growing more apparent — and blockchain may hold the keys to enhanced transparency." Click here to read more.

Kyra Doolan, managing director at Texas HALO Fund

Kyra Doolan joins the Houston Innovators Podcast to discuss the huge opportunities for innovation within femtech. Photo via LinkedIn

When venture capitalist and angel investing expert Kyra Doolan started navigating her own fertility journey, her eyes were opened to a huge market opportunity across femtech. As managing director at Houston-based Texas HALO Fund, she took these opportunities to her team of investors.

"A lot of the issues that face women, are things that are not talked about," she says on this week's episode of the Houston Innovators Podcast, referencing things like miscarriage, injury during childbirth, etc. "For a lot time, women just sat back if they had these issues, and they kept it to themselves, so those problems weren't being addressed."

Doolan says she and other women aren't taught how to manage their own fertility journey, but it doesn't have to be that way. Click here to read more.

Shaun Noorian, founder and CEO of Empower Pharmacy

Empower Pharmacy has opened its new 86,000-square-foot facility features innovative technology for purifying water, automation, and more. Photo courtesy of Empower Pharmacy

Houston-based Empower Pharmacy has celebrated the grand opening of its new $55 million, 86,000-square-foot facility that includes extensive automation, a top-of-the line cleanroom, and equipment that generates purified water, clean steam, and clean compressed air. The space also features a warehouse capable of storing at least nine months of raw pharmaceutical ingredients to minimize supply chain problems.

"This innovative facility, combined with our more than 500 dedicated employees, enables us to increase our operational capacity, allowing us to prepare thousands of custom prescriptions each day for millions of patients across the country," Shaun Noorian, founder and CEO of Empower Pharmacy, says in a news release. "We are setting a new standard for compounded medicine, striving to achieve a superior pharmaceutical experience, from order placement to delivery."

The new Empower Pharmacy facility, at 7601 N. Sam Houston Parkway W., opened earlier this month. Click here to read more.

Kyra Doolan joins the Houston Innovators Podcast to discuss the huge opportunities for innovation within femtech. Photo via LinkedIn

Houston investor shares why she's focused on funding the future of femtech

HOUSTON INNOVATORS PODCAST EPISODE 98

Successful investors find gaps in the marketplace and direct funds into startups and technologies resolving those gaps. For Kyra Doolan, managing director at Houston-based Texas HALO Fund, femtech represents a huge opportunity for innovation.

While Texas HALO Fund has invested in femtech since its first fund in 2012, Doolan shares on the show how she personally saw an investment opportunity with kegg, a fertility tracking device. Doolan says she and other women aren't taught how to manage their own fertility journey, but it doesn't have to be that way.

"I was at a stage in my life where my eyes were open to the gaps that are out there and the conversations that weren't being had," she says. "In looking into Kegg, it showed me what the market was and how many gapes there were in the market just around fertility."

Texas HALO Fund has a few femtech companies in its portfolio now, and the most recent addition is Houston-based Work & Mother, a company that builds out fully-equipped nursing accommodations in office buildings.

Despite it's growing femtech portfolio, the fund is industry agnostic, though, Doolan says, about a third of the companies Texas HALO Fund invests in reside in the health tech space. What makes HALO different is its focus on early-stage startups.

"We like to get in early," Doolan says. "We're, what you would historically consider 'pre-VC,' but now that's getting a little bit blurred. ... We're some of the earlier capital that's invested, and we continue to make investment as the companies continue to subsequent rounds."

Doolan shares more on her passion for femtech, as well as her advice for founders looking for funding and potential female investors looking to get into investing on the episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

Unlike past awards programs hosted by Ignite Healthcare Network, the Ignite Madness winners accepted their awards via video call. Photo courtesy of Ignite

Houston female-focused health tech pitch competition names big winners

winner, winner

From the comfort of their own homes, several female entrepreneurs accepted investment and pitch prizes at the finals of an inaugural awards program created by a Houston-based, woman-focused health organization.

Ahead of the Ignite Madness finals on Thursday, October 29, Houston-based Ignite Healthcare Network named nine finalists that then pitched for three investment prizes. The finalists included:

Eden Prairie, Minnesota-based Abilitech Medical — medical device company that creates assistive devices to aid those with upper-limb neuromuscular conditions or injuries.
New Orleans, Louisiana-based Chosen Diagnostics — a biotech company focusing on custom treatment. First, Chosen is focused on creating two novel biomarker diagnostic kits — one for gastrointestinal disease in premature infants.
San Francisco, California-based Ejenta — which uses NASA tech and artificial intelligence to enhance connected care.
Highland, Maryland-based Emergency Medical Innovation — a company focused on emergency medicine like Bleed Freeze, a novel device for more efficiently treating nosebleeds.
Columbia, Missouri-based Healium — an app to quickly reduce burnout, self-manage anxiety, and stress.
Farmington, Connecticut-based Nest Collaborative — digital lactation solutions and support.
Palo Alto, California-based Nyquist Data — a smart search engine to enable medical device companies to get FDA approvals faster.
New Orleans-Louisiana based Obatala Sciences — a biotech startup working with research institutions across the globe to advance tissue engineering and regenerative medicine.
Perth, Australia-based OncoRes — a company that's developing a technology to provide surgeons with real-time assessment of tissue microstructure.

The inaugural event that mixed health care and basketball — two vastly different industries with strong connections to women — attracted support from partners and sponsors, such as Intel, Accenture, Morgan Lewis, Houston Methodist, Johnson & Johnson Innovation, and more, according to Ayse McCracken, founder and board chair of Ignite.

"Our partners and sponsors are an integral part of our organization" says McCracken. "Without each and every one of them, the networks, resources, and commitment to advancing women leaders, we would not have grown so rapidly in just four years and our IGNITE Madness event would not enjoy this vibrant ecosystem that now surrounds female entrepreneurs."

First up in selecting their winner for their investment was Texas Halo Fund. Chosen Diagnostics took home the $50,000 investment.

"While we were impressed by everyone who pitched tonight, one company stood out to us," says Kyra Doolan, managing partner. "[Chosen Diagnostics] exemplifies what we are looking for: an innovative solution, a strong CEO, and a real addressable market."

The second monetary award was presented by Tom Luby, director of TMC Innovation. The award was an $100,000 investment from the TMC Venture Fund, as well as admission to TMCx. The recipient of the investment was OncoRes.

"We are absolutely blown away," says Katharine Giles, founder of Onco. "We've already got a great link to Texas and looking forward to more."

The largest monetary award that was on the table was presented by Wavemaker Three-Sixty Health, a leading Southern-California based, early stage venture capital firm, for $150,000. However, at the time of the announcement, Managing Partner Jay Goss decided to award four startups an undisclosed amount of investment. Goss says he and his team will meet with each company to establish an investment.

The companies that were recognized by Wavemaker were: Healium, Ejenta, Emergency Medical Innovation, and Nest Collaborative.

Lastly, Ignite itself had $27,500 cash awards to give out to the pitch competition winners. The funds will be distributed between the winners. OncoRes took first place, Abilitech came in second place, and Obatala Sciences took third place.

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

Overheard: Experts share advice on investing in health tech amid the pandemic

Eavesdropping online

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.

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Houston unicorn closes $421M to fuel first phase of flagship energy project

Heating Up

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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This article first appeared on EnergyCapitalHTX.com.

Houston food giant Sysco to acquire competitor in $29 billion deal

Mergers & Acquisitions

Sysco, the nation's largest food distributor, will acquire supplier Restaurant Depot in a deal worth more than $29 billion.

The acquisition would create a closer link between Sysco and its customers that right now turn to Restaurant Depot for supplies needed quickly in an industry segment known as “cash-and-carry wholesale.”

Sysco, based in Houston, serves more than 700,000 restaurants, hospitals, schools, and hotels, supplying them with everything from butter and eggs to napkins. Those goods are typically acquired ahead of time based on how much traffic that restaurants typically see.

Restaurant Depot offers memberships to mom-and-pop restaurants and other businesses, giving them access to warehouses stocked with supplies for when they run short of what they've purchased from suppliers like Sysco.

It is a fast growing and high-margin segment that will likely mean thousands of restaurants will rely increasingly on Sysco for day-to-day needs.

Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares. Based on Sysco’s closing share price of $81.80 as of March 27, 2026, the deal has an enterprise value of about $29.1 billion.

Restaurant Depot was founded in Brooklyn in 1976. The family-run business then known as Jetro Restaurant Depot, has become the nation's largest cash-and-carry wholesaler.

The boards of both companies have approved the acquisition, but it would still need regulatory approval.

Shares of Sysco Corp. tumbled 13% Monday to $71.26, an initial decline some industry analysts expected given the cost of the deal.

Houston researcher builds radar to make self-driving cars safer

eyes on the road

A Rice University researcher is giving autonomous vehicles an “extra set of eyes.”

Current autonomous vehicles (AVs) can have an incomplete view of their surroundings, and challenges like pedestrian movement, low-light conditions and adverse weather only compound these visibility limitations.

Kun Woo Cho, a postdoctoral researcher in the lab of Rice professor of electrical and computer engineering Ashutosh Sabharwal, has developed EyeDAR to help address such issues and enhance the vehicles’ sensing accuracy. Her research was supported in part by the National Science Foundation.

The EyeDAR is an orange-sized, low-power, millimeter-wave radar that could be placed at streetlights and intersections. Its design was inspired by that of the human eye. Researchers envision that the low-cost sensors could help ensure that AVs always pick up on emergent obstacles, even when the vehicles are not within proper range for their onboard sensors and when visibility is limited.

“Current automotive sensor systems like cameras and lidar struggle with poor visibility such as you would encounter due to rain or fog or in low-lighting conditions,” Cho said in a news release. “Radar, on the other hand, operates reliably in all weather and lighting conditions and can even see through obstacles.”

Signals from a typical radar system scatter when they encounter an obstacle. Some of the signal is reflected back to the source, but most of it is often lost. In the case of AVs, this means that "pedestrians emerging from behind large vehicles, cars creeping forward at intersections or cyclists approaching at odd angles can easily go unnoticed," according to Rice.

EyeDAR, however, works to capture lost radar reflections, determine their direction and report them back to the AV in a sequence of 0s and 1s.

“Like blinking Morse code,” Cho added. “EyeDAR is a talking sensor⎯it is a first instance of integrating radar sensing and communication functionality in a single design.”

After testing, EyeDAR was able to resolve target directions 200 times faster than conventional radar designs.

While EyeDAR currently targets risks associated with AVs, particularly in high-traffic urban areas, researchers also believe the technology behind it could complement artificial intelligence efforts and be integrated into robots, drones and wearable platforms.

“EyeDAR is an example of what I like to call ‘analog computing,’” Cho added in the release. “Over the past two decades, people have been focusing on the digital and software side of computation, and the analog, hardware side has been lagging behind. I want to explore this overlooked analog design space.”

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