Houstonian's skincare line acquired for $845 million

A beautiful acquisition

International beauty giant Shiseido Company Ltd. has acquired Houston-founded Drunk Elephant. Photo via Business Wire

A skincare line with ties to Houston is joining the ranks of other popular beauty brands this week. International beauty giant Shiseido Company Ltd. has announced that it is acquiring Drunk Elephant in a reported $845 million deal.

Houstonian Tiffany Masterson, chief creative officer, founded the company in Houston in 2012. The quality of products and playful branding attracted a broad range of demographics as the company experienced exponential growth.

"I started this business as an industry outsider, and from the beginning I did things a little differently," Masterson says in a news release. "To join with a powerhouse beauty company such as Shiseido that leads the industry in innovation and global excellence is a dream come true for me and for Drunk Elephant. We share similar values, most importantly an unwavering commitment to the consumer. I chose a partner who will let the brand continue to be itself, with the same formulations and the same team."

According to the release, the acquisition will allow Drunk Elephant's products to expand more throughout America, and enter new markets in Asian and Europe. The new subsidiary will also have support from Shiseido's Global Innovation Center and Digital Center of Excellence.

"This transaction is squarely aligned with Shiseido's VISION 2020 goal of accelerating growth and creating value through strategic partnerships," says Masahiko Uotani, president and CEO of Shiseido, in a news release. "I am very pleased to welcome Tiffany and the Drunk Elephant team to the Shiseido Family and together, pursue our long-term mission of 'Beauty innovations for a better world.'"

Masterson will maintain her role as chief creative officer and add the title of president for the company. She will report to Marc Rey, CEO of Shiseido Americas and chief growth officer of Shiseido.

"Drunk Elephant is built on a strong brand foundation and a unique philosophy that fits perfectly with Shiseido's values and skincare heritage," Rey says in the release. "Our innovative and people-first cultures are well aligned, and we share an unwavering commitment to our consumers. I also believe the brand will contribute to the business performance of Shiseido Americas."

The beauty industry is having a bit of a moment right now as consumers — who have shelves and shelves of products to choose from — are drawn to specific products.

"While reasons for acquisitions in the beauty space vary, we are seeing that some of the big players are seeking to balance their portfolios by creating products and services that consumers find relevant," says Laura Gurski, Accenture's global lead for consumer goods and services, in a statement.

"It is crucial that brands completely reinvent the beauty experience, making it much more than a transactional event," she continues. "This is what startups and disruptors do best. They create a collaboration with each consumer, allowing them to participate and experience products, services and brands in new ways."

According to Accenture Strategy's research on M&A in consumer goods, companies acquiring new capabilities represents 47 percent of activity and new technologies represents 35 percent of activity. These figures are on par with more traditional reasons for M&A, like new industries (43 percent) and new geographic markets (37 percent).

"For the first time, beauty companies have the opportunity to achieve real differentiation by taking their relationships with consumers to a completely new level," Gurski says.

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Houston professor awarded $2.6M grant for retina, neurological research

seeing green

University of Houston College of Optometry Professor John O’Brien has received a $2.6 million grant from the National Eye Institute to continue his research on the retina and neurological functions.

O’Brien is considered a leading expert in retinal neuroscience with more than 20 years of research in the field. The new funding will allow O’Brien and his team to continue to study the dense assembly of proteins associated with electrical synapses, or gap junctions, in the retina.

Gap junctions transfer electrical signals between neurons. And the plasticity of gap junctions changes the strength of a synapse, in turn changing how visual information is processed. Previous research has shown that reduced functions of electrical synapses could be linked to autism, while their hyperfunction may lead to seizures.

“The research we propose will significantly advance our understanding of the molecular complexes that control the function of electrical synapses,” O’Brien said in a news release.

The team at UH will work to identify the proteins and examine how they impact electrical synapses. It is particularly interested in the Connexin 36, or Cx36, protein. According to O’Brien, phosphorylation of Cx36, a short-term chemical modification of the protein, serves as a key driver of plasticity. And the protein has been linked to refractive error development, which is one of the largest vision problems in the world today.

Additionally, OBrien’s research has shown that plasticity is essential for all-day vision, allowing the retina to adjust sensitivity and sharpen images. He has also built a catalog of the core set of proteins surrounding electrical synapses that are conserved across species. His research has been funded by the NEI since 2000.

5 minority-founded Houston startups shine as Innovation Awards finalists

Meet the Finalists

Houston is one of the most diverse cities in the nation, and that trend carries over into its innovation and startup ecosystem.

As part of the 2025 Houston Innovation Awards, our Minority-founded Businesses category will honor an innovative Houston startup founded or co-founded by BIPOC or LGBTQ+ representation.

Five minority-founded businesses have been named finalists for the 2025 award. The finalists, selected by our esteemed panel of judges, range from a wearable health tech device company to a clean chemical manufacturing business to a startup with a lunar mission.

Read more about these innovative businesses, their initiatives, and their inspirational founders below. Then join us at the Houston Innovation Awards on Nov. 13 at Greentown Labs, when the winner will be unveiled at our live awards ceremony.

Tickets are on now for this exclusive event celebrating all things Houston Innovation.

Capwell Services

Houston-based methane capture company Capwell Services works to eliminate vented oil and gas emissions economically for operators. According to the company, methane emissions are vented from most oil and gas facilities due to safety protocols, and operators are not able to capture the gas cost-effectively, leading operators to emit more than 14 million metric tons of methane per year in the US and Canada, equivalent to more than 400 million metric tons of CO2e per year. Founded in 2022, Capwell specializes in low and intermittent flow vents for methane capture.

The company began as a University of Pennsylvania senior design project led by current CEO Andrew Lane. It has since participated in programs with Greentown Labs and Rice Clean Energy Accelerator. The company moved to Houston in 2023 and raised a pre-seed round. It has also received federal funding from the DOE. Capwell is currently piloting its commercial unit with oil and gas operators.

Deep Anchor Solutions

Offshore energy consulting and design company Deep Anchor Solutions aims to help expedite the adoption of floating offshore energy infrastructure with its deeply embedded ring anchor (DERA) technology. According to the company, its patented DERA system can be installed quietly without heavy-lift vessels, reducing anchor-related costs by up to 75 percent and lifecycle CO2 emissions by up to 80 percent.

The company was founded in 2023 by current CEO Junho Lee and CTO Charles Aubeny. Lee earned his Ph.D. in geotechnical engineering from Texas A&M University, where Aubeny is a professor of civil and environmental engineering. The company has not raised VC funding, but has participated in numerous accelerators and incubators, including Greentown Labs, MassChallenge, EnergyTechNexus LiftOff and others. Lee is an Activate 2025 fellow.

Mars Materials

Clean chemical manufacturing business Mars Materials is working to convert captured carbon into resources, such as carbon fiber and wastewater treatment chemicals. The company develops and produces its drop-in chemical products in Houston and uses an in-licensed process for the National Renewable Energy Lab to produce acrylonitrile, which is used to produce plastics, synthetic fibers and rubbers. The company reports that it plans to open its first commercial plant in the next 18 months.

Founded in 2019 by CEO Aaron Fitzgerald, CTO Kristian Gubsch and lead engineer Trey Sheridan, the company has raised just under $1 million in capital and is backed by Bill Gates’ Breakthrough Energy, Shell, Black & Veatch and other organizations.

Torres Orbital Mining (TOM)

Space tech company Torres Orbital Mining aims to pioneer the sustainable extraction and processing of lunar regolith and designs and builds robotic systems for excavating, classifying, and delivering lunar material. The company aims to accelerate a permanent and ethical human presence on the Moon.

The company was founded this year by Luis Torres, a current MBA candidate at Rice Business.

Wellysis USA Inc.

Wellysis USA Inc. works to detect heart rhythm disorders with its continuous ECG/EKG monitor with AI reporting. Its S-Patch cardiac monitor is designed for extended testing periods of up to 14 days on a single battery charge. The device weighs only 9 grams, is waterproof and designed to be comfortable to wear, and is considered to have a high detection rate for arrhythmias. It is ideally suited for patient-centric clinical trials to help physicians make diagnoses faster, cheaper and more conveniently.

It was established in Houston in 2023 and participated in the JLABS SFF Program the same year. It closed a $12 million series B last year. It was founded by CEO Young Juhn, CTO Rick Kim, CFO JungSoo Kim and chief strategy officer JoongWoo Kim.

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The Houston Innovation Awards program is sponsored by Houston Community College, Houston Powder Coaters, FLIGHT by Yuengling, and more to be announced soon. For sponsorship opportunities, please contact sales@innovationmap.com.

The Ion taps John Reale for startup and investor role

new hire

The Ion has named John "JR" Reale as its director for startups and investor engagement.

In his new role, Reale, a longtime leader in Houston’s startup ecosystem, will work to strengthen the innovation district's founder and investor network.

"Here’s what I’ve come to believe: the Ion is not just a building, not just a real estate play, and not just another innovation district. COVID, remote work, and shifting market dynamics changed the rules. Key ingredients like co-working, events, and community, while impactful, are no longer enough on their own," Reale shared on a LinkedIn post announcing the move. "What’s needed are advantages ... We need to intentionally design a system that repeatedly delivers advantages so founders can pull forward their visions."

Reale previously served as executive in residence and venture partner at TMC Venture Fund and co-founded Station Houston. He also serves as managing director of Integr8d Capital. He's an investor and serves on the board of directors for a number of venture-backed companies, including Cart.com, Lionguard and others.

The Ion will host "Today Is Day One – A conversation with John (JR) Reale" to welcome Reale to the role on Tuesday, Oct. 21. Reale will be joined at the event by Heath Butler, partner at Mercury, to discuss their thoughts on shaping Houston's founders ecosystem, as well as the Ion’s Founder Advantage Platform.

"On top of this connected architecture, we will build product. That product will be the Founder Advantage Platform to remove friction, compress time, and compound outcomes," Reale continued on LinkedIn. "This is the system that will drive repeatable experiences, and naturally, make these journeys so much more fun."