Lean methodology aims to help startups reduce risk and helps entrepreneurs make better, more efficient decisions. Miguel Tovar/University of Houston

There are few things riskier than launching a new business. You could run through a mine field and have a better chance at living than launching a successful, long-lasting business. In fact, the Harvard Business School even reported that three out of every four startups fail. Fortunately, a new process has come to light that was designed precisely to reduce the risk of starting a business. Lean startups champion trial and error over detailed planning. Customer feedback over "gut feeling." Cyclic processes of design over traditional development.

Some lean startup ideas have already gone mainstream because they've proven to be so effective. The principles of "minimum viable product" and "startup pivot" have become so engrained in modern business that even university business colleges have begun to teach them.

There are three key aspects of the lean methodology.

Educated guesses

Number one: Instead of spending a year conducting research and planning long-term, lean startup entrepreneurs go with the idea that all they have on the first day is a bunch of unproven ideas. Guesses, really. These entrepreneurs forego the traditional business plan and opt instead to give a Cliff Notes version of their big idea using a template dubbed "business model canvas." It's pretty much a diagram that shows how a business generates value not just for its consumers, but for itself.

Field work

Number two: Lean startups use an "out and about" method for testing their ideas. It's a kind of customer development. They go "out and about" and basically interview potential customers, interested people, and people on the fence about all aspects of their business. How's our pricing compared to others you've seen? Do you like our product features? What do you think of our strategy? Lean startup entrepreneurs amend their ideas based on the feedback they get from customers. That's the beauty of the lean method: it's based on your willingness to change directions based on new information. Sound familiar? Well, it should. I just described pivoting. A lean startup concept now adopted by major corporations.

Agility means stability not fragility

Number three: The software industry bore a method called agile development. Agile development cuts down on wasted time because it emphasizes the ability and willingness to change directions and adapt fast. That's what agile means. To move quickly. There's a company named RoofProtect Pro that created a chemical they thought would appeal to homeowners looking to reduce shingle rot. Turns out there wasn't really a demand for reducing shingle rot. It wasn't as big a deal as the RoofProtect Pro founders had hypothesized. However, after speaking with business owners they discovered there was a demand for something to help reduce rust and deterioration of signage. RoofProtect Pro went back to the drawing board to build and test a prototype for a chemical that reduces rust and staining on different material like concrete and metal. A year later RoofProtect Pro became SurfaceSustain and obtained over $2 million in venture capital funding.

Now that's agility!

It's no surprise, then, that in the high-stakes world of business, a methodology designed specifically to reduce risk would prove successful. Lean methods don't guarantee success, of course, but the principles it holds dear do help strip away a lot of wasted time and energy and have proven to be highly efficient. Now, if there's an antidote to riskiness, it's got to be efficiency. Efficiency tightens a business to bare bones so there is little room for big risks to hurt your venture.

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This article originally appeared on the University of Houston's The Big Idea.

Rene Cantu is the writer and editor at UH Division of Research.

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Houston healthtech startup raises $30M to scale surgical healing gel

fresh funding

Houston-based healthtech startup TYBR Health has raised a $30 million Series A round to scale its B3 GEL System, which helps protect tendons from scarring after surgery.

The round was led by Minneapolis-based Vensana Capital and Cleveland-based Mutual Capital Partners, with participation from Denver-based Neovate Capital Partners and existing investors, according to a news release from the company.

TYBR Health said it plans to use the funding to broaden the B3 GEL System's clinical applications, expand commercialization and conduct studies to evaluate its ability to protect tissue and improve healing outcomes.

"Surgeons are exceptionally good at the structural repair, but the biology that follows is what determines how it heals. That part of the equation has gone largely unaddressed ... There's a shift underway across surgical specialties, from focusing almost entirely on the mechanical repair to also weighing the biological conditions that repair needs to succeed," Tim Keane, co-founder and CEO of TYBR Health, said in the news release. "This financing lets us reach more surgeons and generate the clinical evidence to move that shift forward."

As part of the financing round, Greg Banker of Vensana Capital and Liz Todia Zambory of Mutual Capital Partners will join the TYBR board, alongside independent director Aaron Smith.

"TYBR Health is addressing a gap surgeons have lived with for a long time, with a product that fits the way they already work," Zambory, principal at Mutual Capital Partners, added in the release. "We're excited to co-lead this round and support the company's growth."

TYBR was founded in 2020 and originated from the TMCi’s Biodesign fellowship and participated in the TMC's Accelerator for HealthTech. Its B3 GEL System is a flowable extracellular matrix hydrogel designed to protect tendons, ligaments, muscles, and the surrounding soft tissue while they heal from orthopedic surgery. It received FDA 510(k) clearance last June and launched an Australian clinical trial in the fall.

The B3 GEL System has been used in hand, wrist, shoulder, foot and ankle, and sports medicine procedures since it launched, according to the company, and was first used in the clinical setting earlier this year by Dr. Tammam Hanna with Texas Tech University Health Sciences Center.

Houston space companies win NASA funding to build Mars exploration robots

mission to mars

Two Houston-area spacetech companies have landed a portion of a $17 million award from NASA to develop robots for exploring the surface of Mars, the agency announced this month.

Houston-based Inuitive Machines and Webster, Texas-based MEI Technologies, which does business as Aegis Aerospace, were among the seven companies selected to receive the funding from NASA's Science Transport and Robotic Innovation for Deployment and Exploration (STRIDE) initiative.

According to the release from NASA, the companies are tasked with creating "innovative mobility systems" that would allow future Mars missions to access more challenging terrain and difficult-to-reach regions of the planet, and to travel farther distances. NASA estimated that the work will begin this fall.

NASA solicited proposals for participants in the STRIDE initiative in January. The seven named companies are the first selected to participate in the program.

The additional five companies to receive STRIDE funding include:

"STRIDE demonstrates NASA’s commitment to strong public-private partnerships, allowing the agency to explore new approaches for Mars surface exploration while identifying key capability gaps and development needs for commercial systems that could operate and traverse realistic Martian environments," NASA shared in the announcement.

Last month, Intuitive Machines was awarded $148.3 million to deliver its Nova-C lander to the moon. The funding was part of $600 million the space agency awarded to three companies as part of its Moon Base Program and was Intuitive Machines' sixth task order under NASA's Commercial Lunar Payload Services (CLPS) program. Astrobotic was also one of the companies to land funding for the Moon Base program, as well as Austin-based Firefly Aerospace.

Around the same time, Firefly Aerospace was awarded a $13 million subcontract from NASA’s Jet Propulsion Laboratory to develop technology for NASA’s SkyFall mission to Mars. The mission aims to deploy three Mars helicopters to "perform science and demonstrate airborne subsurface mapping and resource prospecting on the planet." Read more here.