TMCx names 9 health tech startups to its 2020 cohort

X-CITING NEWS

TMCx's 2020 cohort has been selected, and the program will begin virtually. Courtesy of TMCx

Now, more than ever, is time to think about the future of health care. Lucky for the Texas Medical Center, they've been doing that for years with their accelerator program, TMCx, which has just announced its latest cohort of health tech startups.

After redesigning the program, TMCx has been reimagined to better connect the startups and technology to TMC's member institutions. New this year was a bootcamp, in which 19 companies were invited to the TMC Innovation Institute in February to engage in programming with the TMCx team and TMC members.

"Bootcamp went off without a hitch," says Lance Black, associate director of TMCx, on a recent episode of the Houston Innovators Podcast. "And the companies all got something meaningful out of it and we were actually very surprised with the reaction and response we got from our member institutions."

The goal of the bootcamp was to connect the 19 potential cohort members to the TMC community to see which companies the health care institutions gravitated toward for potential relationships, such as a pilot program, clinical trial, or a joint development opportunity, for instance, Black says on the episode.

Black says his team took into consideration all of the feedback and selected nine startups to be a part of the cohort. At this point, with the COVID-19-caused travel issues and closures, face-to-face interaction in the program has been postponed, but the accelerator will start of virtually.

"Out of respect for our hospitals and member institutions, we want to delay the physical presence of the companies in Houston," Black says in the episode. "But that doesn't mean we're not able to call or virtually meet with the companies. There's a lot of pre-work we can do in order to prep the companies appropriately so that when they do have meetings face to face, they can put their best foot forward."

Here are the nine startups selected to be a part of the TMCx 2020 cohort:

San Francisco-based Atlas Health — connecting patients with payment resources
San Francisco-based DeepScribe — autonomous medical scribe
Los Angeles-based Elly Health — live healthier through positivity
San Francisco-based Ferrum Health — reduce preventable medical errors
Toronto-based HelpWear — clinical grade wearable heart monitor
London-based Lantum — total workforce solution for healthcare
Denver-based Manatee — connected, everyday therapy for kids
Copenhagen-based Radiobotics — automate analysis of routine medical X-rays
Evanston, Illinois-based Rhaeos — wearable shunt monitor (Rhaeos previously won fourth place in the 2019 Rice Business Plan Competition.)

This week's Houston innovators to know are Megan Eddings, Lance Black, and Todd Burke.

3 Houston innovators to know this week

who's who

The city of Houston — much like most major cities in the country — is in crisis mode, with a stay-at-home mandate and rising COVID-19 case numbers.

But these three Houston innovators are emerging as leaders in making masks, discussing the importance of telemedicine at this time, and providing tips on keeping a stable supply chain.

Megan Eddings, founder of Accel Lifestyle

Photo courtesy of Accel Lifestyle

Former scientist Megan Eddings designed a fabric that doesn't hold onto bacteria, and she's launched an activewear brand of men's and women's T-shirts that don't stink. But when the coronavirus hit the country and medical professionals worried about personal protection equipment, Eddings sprung into action.

"We have enough supplies here to make 9,000 masks and I have 2,800 yards of fabric sitting at my factory in California," she says. "That's enough fabric to make more than 100,000 masks." Click here to read more about Houston fashion designers looking to help out.

Lance Black, associate director of TMCx

Photo courtesy of TMCx

Telemedicine has a unique opportunity during the coronavirus-cased shutdown. Lance Black, associate director of the Texas Medical Center's accelerator, TMCx, joined the Houston Innovators Podcast to discuss the health tech potential as well as how startups are coping in this uncertain time.

"This is going to force the health care system to take a hard look at what these platforms are capable of doing," Black says in the episode. "And it's going to stress the capabilities of these companies. To be honest, if there's a silver lining, that is one of them in my mind, that this will prove out the technology [in telehealth.]" Click here to read more and stream the episode.

Todd Burke, president at Smith and Associates

Photo courtesy of Smith and Associates

The COVID-19 outbreak has already greatly affected supply chains across industries, and companies should keep moving forward with that in mind. Todd Burke, president at Houston-based Smith and Associates gives three tips for properly managing your supply chain during the coronavirus outbreak in a guest article.

"During my 23 years at Smith, the world's largest open-market distributor of electronic components, I've witnessed various market disruptions and shifting supply chain dynamics," writes Burke. "I can confidently say that the coronavirus outbreak is heavily uncharted territory for the technology industry." Click here to read more.

Lance Black says the COVID-19 outbreak has led to some interesting opportunities for Houston startups and health tech as a whole. Photo courtesy of TMCx

COVID-19 provides huge opportunity for telehealth, says Houston health tech leader

HOUSTON INNOVATORS PODCAST EPISODE 24

The Texas Medical Center's accelerator program has one foot in the health care system of today — operating in collaboration with the TMC's wide network of member institutions — as well as representing the future of health care as it cultivates new technologies those medical institutions need.

This unique setting makes Lance Black, associate director of TMCx, an interesting perspective on the COVID-19 outbreak, and something he says he's excited to see rise to the occasion — and, in this case, crisis — is telehealth.

"One of the things we focus on at TMCx is the ability to remotely monitor and care for patients outside the four walls," Black says on this week's episode of the Houston Innovators Podcast, "and this particular crisis really lends to that."

For better or for worse, the outbreak has forced a turning point in health care, and it's also put telehealth and other health tech companies to the test.

"This is going to force the health care system to take a hard look at what these platforms are capable of doing," Black says. "And it's going to stress the capabilities of these companies. To be honest, if there's a silver lining, that is one of them in my mind, that this will prove out the technology [in telehealth.]"

In the episode, Black provides some tips for startups going through the crisis, as well as praises the collaborative effort within the tech community in Houston. And in a way, something felt familiar to Black, a medical doctor who previously served in the United States Air Force.

"In the military, we joked about how there's a 'hurry up and wait' attitude. You hurry up to get things ready, and then you're just sitting there waiting for the right time to respond," Black says. "I feel like that's what our startups are doing now."

Black says he has seen startups taking inventory of their resources, accommodating their products for different uses, assessing their personnel, and waiting to see where they fit in to help.

Meanwhile, there's plenty Black can do to help serve TMCx's startups. This year marked the first cohort of TMCx's revamped program, and last month the TMC Innovation Institute welcomed in 19 startups for a bootcamp. While that went off without a hitch, Black says, the next phase — due to start in May — could be pushed back.

"Out of respect for our hospitals and member institutions, we want to delay the physical presence of the companies in Houston," Black says. "But that doesn't mean we're not able to call or virtually meet with the companies. There's a lot of pre-work we can do in order to prep the companies appropriately so that when they do have meetings face to face, they can put their best foot forward."

Black discusses the coronavirus' effects and offers his advice to startups on the podcast. Listen to the full episode below — or wherever you get your podcasts — and subscribe for weekly episodes.

TMCx will select its 2020 cohort from the 19 startups it has invited to attend a bootcamp this month. Courtesy of TMC

TMCx names 19 startups to be considered for 2020 cohort

that x-factor

The Texas Medical Center is one step closer to narrowing down its next TMCx cohort. It will be the first group of startups for the accelerator following an overhaul and redesign of the program that was announced last year.

TMCx has identified 19 companies from around the world to attend a two-week bootcamp within the TMC. At the conclusion of the two weeks, TMCx will select its 2020 cohort, which will then go through a six-month accelerator program.

While TMCx has been accelerating digital health and medical device startups for five years, this is the first year the program has taken this approach. The TMCx team first announced these changes on its last demo day in November. The program redesign was put into motion in order to find startups and technologies that solve the problems and challenges that TMC institutions face.

"The TMCx team is razor-focused on ensuring X companies find a landing spot here in the TMC," says Lance Black, associate director at TMCx. "Our north star metric is agreements between the startup and the member institution. With this as our determiner of success, we need to be intimately familiar with not only what the startups are doing but with what our hospitals need."

The TMCx team selected this batch of 19 startups based on their ability to hit the ground running at TMC, Black explains, and the two-week bootcamp will be filled with customer meetings, in-hospital exploration, social events, and educational programming.

"From these bootcamp participants, we are looking for companies who are ready to have meaningful conversations with their customers on day 1," Black says. "The access to enterprise health systems here in Houston is like no other place in the world, so TMCx is focused on curating these conversations and subsequent relationships so our member institutions are truly able to remain cutting edge."

Ultimately, Black says, his team is looking for the companies ready to "show up" for the TMC's member institutions.

"One of the most exciting aspects of TMCx's new phase is how we are now working hand-in-hand with the offices of innovation and internal champions of our member institutions to investigate needs and scour the globe for the best solutions," Black explains. "This community is one of collaborators and TMCx is a proud partner in improving the quality of life for patients."

Here are the health tech startups participating in the TMCx bootcamp this month:

San Francisco-based Atlas Health connects patients with payment resources.
Austin-based CareStarter automates and scales care management.
Houston-based CaseCtrl is a surgical case management platform.
San Francisco-based DeepScribe is an autonomous medical scribe.
Austin-based Diligent Robotics created a clinical robot assistant.
Los Angeles-based Elly allows users to live healthier through positivity.
San Francisco-based Ferrum reduces preventable medical errors.
San Antonio-base GaitIQ evaluates gait in primary care.
Toronto-based HelpWear is a clinical grade wearable heart monitor.
Pessac, France-based inHEART combines imaging and electrocardiology technologies.
London-based Lantum is a total workforce solution for healthcare.
Denver-based Manatee has created connected, everyday therapy for kids.
Cupertino, California-based Pyrames is a continuous, non-invasive blood pressure monitoring system.
Copenhagen-based Radiobotics automates analysis of routine medical X-rays.
Philadelphia-based Repisodic is a discharge planning solution.
Evanston, Illinois-based Rheos is a wearable shunt monitor.
College Station-based Solenic Medical eliminates biofilm on metallic implants.
Melbourne-based TALi can assess and strengthen attention in early childhood.
New York-based Yosi is creating the waiting room of the future.

The Digital Fight Club made its Houston debut on November 20 at White Oak Music Hall. Emily Jaschke/InnovationMap

Photos: Houston innovation leaders weigh in on cybersecurity, tech, and more at inaugural event

total knock out

What do you get when you cross the information of an innovation panel with the ferocity of a boxing match? A verbal sprawling among innovation leaders that can only be known as the Digital Fight Club.

Houston's DFC came about with the help of Accenture, which had been a partner at the Dallas events, and InnovationMap, who teamed up as presenting sponsors for the event. DFC's founder, Michael Pratt, came up with the idea for Digital Fight Club as a way to liven up technology-focused events and networking opportunities.

The setup of the event is five fights, 10 fighters, and five judges. Each fighter has just a couple minutes to take their stand before the event moves on.

"This is Digital Fight Club," says Pratt, CEO of the company. "You get subject matter experts, and serious founders and CEOs on the stage and make them make their case. You learn something, it's a lot of fun, and it's a lot better than a panel."

The hour of fighting is coupled with a VIP event ahead of the showdown and an after party where further networking can continue on. At Houston's VIP event, InnovationMap got to check in with partners, fighters, and referees about how they thought the event was going to pan out. Check out the VIP event video here.

The panel of referees included GabriellaRowe, CEO of Station Houston; DeniseHamilton, CEO of Watch Her Work; TimKopra, partner at Blue Bear Capital; LanceBlack, Director at TMCx; and BarbaraBurger, president of Chevron Technology Ventures.

The refs asked two questions per fight, and were able to vote on the winners of each round — as was the audience through an interactive web-based application. The break down of the fights, topics, and winners are as follows:

Fight #1: Future Workforce of Robotics/AI. Matt Hager, CEO of Poetic Systems, vs Pablo Marin, senior AI Leader, Microsoft. Hager took the win with 77 percent of the vote.
Fight #2: Whose responsibility is cybersecurity. Ted Gutierrez, CEO of SecurityGate vs Tara Khanna, managing director and Security Lead at Accenture. Khanna won this round, snagging 66 percent of the votes.
Fight #3: Oil & Gas Industry and the Environment. Michael Szafron - commercial adviser for Cemvita Factory, vs Steven Taylor, co-founder of AR for Everyone. Szafron received 76 percent of the voites, securing the win.
Fight #4: Digital in our personal lives. Grace Rodriguez, CEO of ImpactHub, vs Javier Fadul, chief innovation officer at HTX Labs. Rodriguez won with the largest margin of the night — 85 percent.
Fight #5: Future of Primary Care Geetinder Goyal, CEO of First Primary Care, vs Nick Desai, chief medical information officer at Houston Methodist. Goyal received 72 percent of the votes to take home the win.

The fights were heated, and some of the fighters had knockout quotes, from Hager's "AI is mostly bullshit" to Khanna's "Compliance doesn't mean you're secure." For more of the knockout quotes, click here.

The fight is on

Emily Jaschke/InnovationMap

Mike Pratt, who hosted the event, founded the Digital Fight Club in 2016.

At TMCx's Demo Day, the cohort's companies boasted of local deals and accomplishments. Courtesy of TMC

TMCx companies plant Houston roots with pilots, partnerships, and more

Lasting impact

At the conclusion of TMCx's recent Digital Health cohort — the most international group to date — there was only one Houston company among the 19. However, most of that group have developed a presence in Houston throughout the program.

Besides just being based here in Houston for four months, TMCx associate director, Lance Black, says the city has a lot to offer these startups.

"Why Houston? Why are these companies coming from everywhere to be here? Three big reasons," he says to the crowd at Demo Day. "The size and scale of the Texas Medical Center, the diversity of Houston, and the willingness and hunger of Houstonians wanting to be involved in innovation."

From pilots and partnerships to funding and mentorship, these TMCx08 companies announced the impact they've made on Houston at the Demo Day on Thursday, June 6. Meanwhile, TMCx had its own announcement that it would create early stage programming for professionals connected to the Texas Medical Center.

"It is the TMC's mission to advance health care, research, and education. It's our mission at the Innovation Institute to bring value back to the med center through health care technology," Black says. "And, through TMCx, we do that through startup companies."

Here are some examples of TMCx companies setting foundations in the Houston ecosystem.

Virti

Photo via virti.com

California-based Virti has developed an extended reality simulation technology for training medical staff. It's a cheaper, more effective way to train personnel, says Alex Young, CEO of the company.

Virti was selected to be in England's National Health Service accelerator — the only evidence-based AR/VR training company ever to be picked for the program, says Young.

With a presence in California and England, Young says he's also planted roots in Texas too, with sales representation based in the TMCx offices.

"In the time that we've been here, we've closed deals in Texas and back in California," Young adds.

Optellum

Photo via optellum.com

Optellum is changing the way lung cancer is being detected. With the startup's artificial intelligence-enabled detection software, oncologists can better identify at-risk patients, which translates into more treatment for those in need, and less for those who don't.

The company, which is based in the United Kingdom, has raised funds abroad while networking locally.

"TMCx has been amazing for a small British company like us. We have started pilots and trials at four TMC member institutions," says Vaclav Potesil, CEO.

Oncora Medical

Photo via oncoramedical.com

Angela Holmes, the director of product and customer solutions of Oncora Medical, sets the stage at her company's Demo Day pitch by telling a story of her friend's daughter who was diagnosed with cancer. She was forced to pick between two treatment options. She had no data or insights to help.

Oncora Medical's mission is to help fight cancer using data. Though based in Philadelphia, Oncora has Houston ties, since it formed a partnership with MD Anderson Cancer Center in April of 2017.

"We are so honored and gratified to be in a strategic, multi-year collaboration with MD Anderson to build this software system to save the world," Holmes says.

PreOp MD

Cody Duty/TMC

Within health care, the projected annual aggregate surgical expenditure by 2025 is expected to be $912 billion, says Christiana Obi, founder and CEO of PreOp MD, and a Houston-based anesthesiologist. She sees lack of information causing wasted surgical resources regularly.

PreOp MD — the only Houston-based TMCx company this cohort — has an app that allows for pre-procedure education, communication, and more that aims to prevent surgical delays.

While based here, PreOp is truly rooted in Houston, and even more so with their latest news.

"We are happy and excited to say that we have landed our first medical pilot at an medical right here in town," Obi says.

RoundTrip

Cody Duty/TMC

RoundTrip has a solution to 3.6 million missed or postponed medical visits that happen annually that are inconvenient to hospitals and a major health risk to the population: Ride sharing.

The Philadelphia-based company enables all forms of transportation and puts the power in the hands of the medical institution. From ambulances to other medical vehicles, the company can optimize utilization of all vehicles to get patients to their appointments and even has a partnership with Lyft.

While completing the TMCx program, RoundTrip closed its Series A round of $5.14 million led by Virginia-based Motley Fool Ventures in April. The funds will be used for expansion.

"Now we have all this new money to expand really rapidly. Texas, we're coming for you, whether you're ready or not," says Jackson Steeger, account supervisor.

Meru Health

Photos via meruhealth.com

Meru Health is also one of the 2019 TMCx Digital Health companies that has raised money while in the program. Palo Alto, California-based Meru completed a $4.2M raise in April 2019. The round was led by San Francisco-based Freestyle Capital.

Access to mental health professionals is increasingly more difficult, so Meru Health has created a low-cost digital clinic that offers an app-based treatment program from licensed therapists. Kristian Ranta, CEO and founder, while not yet providing specifics, that they aren't done in Texas.

"I'm happy to say there's some good stuff brewing here in Texas for us. More to follow," says Ranta.

Cloud 9

Photo via cloud9psych.com

Mental health is a key contributing factor in the legal system cycle, but it doesn't have to be Liz Truong, co-founder of Cloud 9. Better educating officers and providing them with mental health resources is the best way to get them out of the hospitals and court rooms and back out in the field to protect the city.

While some police departments have instituted ride-along programs with mental health professionals that have showed success, it's expensive for the police department and risky for those professionals. Cloud 9 has created a digital solution.

"We proved this works in the Harris County Sheriff's office right here in Houston," says Truong. "Officers reported that 97 percent of Cloud 9 care was superior or equal to their current program and showed an immediate 632 percent return on investment for our customers in the same budget cycle compared to what they were already spending."

Truong also says they have other local customers they are working with, including the Harris County Health Department.

Axem Neurotechnology

Photos via axemneuro.com

Recovering stroke patients need rehabilitation to get back to 100 percent, but getting patients into the facility is challenging and at-home compliance is hard to track.

Canadian company Axem Neurotechnology has a solution. With their external device and mobile application, physical therapists can track progress and communicate with patients remotely.

"When we talk to rehab professionals, they are excited about what we're doing," says Tony Ingram, CEO and co-founder. "That's why we have leading institutions in both Canada and the U.S. onboard for clinical trials — this includes TMC's own TIRR, which is consistently ranked in the top five rehab centers in the U.S. We're collecting core baseline data in the most diverse city in the country."

Correction: A previous version of this article said Oncora's partnership with MD Anderson was formed during the TMCx program, when the partnership began in 2017.

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2 Houston startups selected by US military for geothermal projects

hot new recruits

Two clean energy companies in Houston have been recruited for geothermal projects at U.S. military installations.

Fervo Energy is exploring the potential for a geothermal energy system at Naval Air Station Fallon in Nevada.

Meanwhile, Sage Geosystems is working on an exploratory geothermal project for the Army’s Fort Bliss post in Texas. The Bliss project is the third U.S. Department of Defense geothermal initiative in the Lone Star State.

“Energy resilience for the U.S. military is essential in an increasingly digital and electric world, and we are pleased to help the U.S. Army and [the Defense Innovation Unit] to support energy resilience at Fort Bliss,” Cindy Taff, CEO of Sage, says in a news release.

A spokeswoman for Fervo declined to comment.

Andy Sabin, director of the Navy’s Geothermal Program Office, says in a military news release that previous geothermal exploration efforts indicate the Fallon facility “is ideally suited for enhanced geothermal systems to be deployed onsite.”

As for the Fort Bliss project, Michael Jones, a project director in the Army Office of Energy Initiatives, says it’ll combine geothermal technology with innovations from the oil and gas sector.

“This initiative adds to the momentum of Texas as a leader in the ‘geothermal anywhere’ revolution, leveraging the robust oil and gas industry profile in the state,” says Ken Wisian, associate director of the Environmental Division at the U.S. Bureau of Economic Geology.

The Department of Defense kicked off its geothermal initiative in September 2023. Specifically, the Army, Navy, and Defense Innovation Unit launched four exploratory geothermal projects at three U.S. military installations.

One of the three installations is the Air Force’s Joint Base San Antonio. Canada-based geothermal company Eavor is leading the San Antonio project.

Another geothermal company, Atlanta-based Teverra, was tapped for an exploratory geothermal project at the Army’s Fort Wainwright in Alaska. Teverra maintains an office in Houston.

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This article originally ran on EnergyCapital.

Houston investor calls for all angels to move the ecosystem forward

houston innovators podcast episode 233

One of the biggest components of a well-functioning startup ecosystem is inarguably access to capital, and Mitra Miller is dedicated to enhancing education around investment and growing Houston's investor base.

As vice president and board member of the Houston Angel Network, the oldest angel network in Texas and one of the most active angel networks in the country, Miller strives to provide guidance to new and emerging angel investors as well as founders seeking to raise money from them.

"Most founders have no idea or understanding of how investors think — we are not an ATM," Miller says on the Houston Innovators Podcast. "We are really partners you are getting married to for the next 5, 8, 10 years — sometimes longer. We need to bring your allies in every sense of the word."

HAN, a nonprofit, provides a unique opportunity for its members, as Miller explains. The group consists of around 100 individuals from all business backgrounds, so evaluating companies together brings more than just a wealth of capital — but also a wealth of knowledge.

"What HAN provides is access to investments," Miller says, adding that members have the benefit in evaluating companies together with people from different backgrounds. "Inside a group like HAN, we have extraordinary expertise."

In addition to educating both founders and investors in the process, Miller has dedicated herself to providing opportunities for students in low-income parts of Houston to learn about the startup world. Eight years ago, she founded Eagle Investors, an organization that provides a year-long program that culminates in a group of students participating as judges for the Rice Business Plan Competition.

"They spend a year learning about innovation, entrepreneurship, and investing by meeting local investors, entrepreneurs, and service providers. They go around Houston to get to visit and ... experience all of the ecosystem," Miller says.

At RBPC, the cohort of high school students evaluate the pitches and select a company to provide a $5,000 prize.

Miller herself has been a judge at RBPC for 20 years now, and she's had a front row seat for watching Houston develop as an ecosystem. She's seen the city make real progress, but has one major call to action.

"The piece that I am most aware of that I would like to see grow is activating more accredited investors who are interested in this asset class of early-stage companies and plugging in," Miller says. "They can also invest their time and knowledge to help companies in our region grow and scale."

Report: Houston secures spot on list of top 50 startup cities

by the numbers

A new ranking signals great promise for the growth of Houston’s startup network.

Houston ranks among the world’s top 50 startup cities on a new list from PitchBook, a provider of data and research about capital markets. In fact, Houston comes in at No. 50 in the ranking. But if you dig deeper into the data, Houston comes out on top in one key category.

The city earns a growth score of 63.8 out of 100 — the highest growth score of any U.S. city and the seventh highest growth score in the world. In the growth bucket, Houston sits between between Paris (64.4) and Washington, D.C. (61.7).

The PitchBook growth score reflects short-term, midterm, and long-term growth momentum for activity surrounding venture capital deals, exits, and fundraising for the past six years.

PitchBook’s highest growth score (86.5) goes to Hefei, a Chinese manufacturing hub for electric vehicles, solar panels, liquid crystal displays, home appliances, and Lenovo computers.

The overall ranking is based on a scoring system that relies on proprietary PitchBook data about private companies. The system’s growth and development scores are based on data related to deals, exits, fundraising and other factors.

Houston earns a development score of 34.1 out of 100, which puts it in 50th place globally in that regard. This score measures the size and maturity of a city’s startup network.

Topping the overall list is San Francisco, followed by New York City and Beijing. Elsewhere in Texas, Austin appears at No. 16 and Dallas at No. 36.

The ranking “helps founders, operators, and investors assess locations when deciding where to expand or invest,” says PitchBook.

“Network effects matter in venture capital: Investors get more than half of their deals through referrals, according to research led by Harvard professor Paul Gompers,” PitchBook goes on to say. “So it stands to reason that dealmakers should seek these networks out when deciding where to do business.”

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