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

Eavesdropping online

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

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.

Texans see need for telemedicine amid the pandemic, Liftoff Houston has launched applications, ChipMonk Bakery is growing, and more of the latest Houston innovation news. Getty Images

Startups raise funds, Houston biz contest opens apps, and more innovation news

Short stories

From health-conscious cookies reaching fundraising goals to a Houston-wide business competition, the Bayou City's innovation news is pretty diverse.

In InnovationMap's latest roundup of startup and tech short stories, there's everything from telemedicine, fundraising, and more.

Houston baking startup raises money after finding its new home

ChipMonk Baking Company, a consumer packaged goods startup focused on healthy dessert options, has met its goal of $150,000. Photo courtesy of ChipMonk

Houston-based ChipMonk Baking Company, which recently found a new home in a new dedicated production facility, has reached its goal on its investment round on NextSeed.

ChipMonk, which was founded last year to create sweets that use sweeteners monk fruit and allulose for health-conscious consumers, will soon operate in a 2,300-square-foot space at 3042 Antoine Dr. The space is strictly for baking, storage, etc. and will not have a storefront.

Co-founders Jose Hernandez and David Downing have seen a spike in demand since the start of the pandemic, which increased the need to upgrade from shared kitchen space.

"The stay-at-home environment has encouraged many people to think more about their health and to start cooking and baking more at home. We've been able to offer a delicious option that fits perfectly in this growing trend," says Downing, who also serves as CEO.

ChipMonk's lease begins next month, and, to fund its growth plans, the company launched a its campaign on NextSeed. In just a couple weeks, the startup met its fundraising goal of $150,000.

Cancer nonprofit moves into new space

The Rose has a new facility to better serve patients. Photos courtesy of The Rose

The Rose, a Houston-based breast cancer nonprofit that provides medical services to 40,000 patients annually, has moved into its new space at 6575 West Loop South, suite 275, in May.

"We know this location will allow us to better serve our community," says Dorothy Gibbons, co-founder and CEO of The Rose, in a news release. "During this time of the pandemic, we've added so many safety precautions and will continue to space appointments to allow social distancing. Most of all we want our patients to feel safe and welcome from the moment they walk through our door."

Amid the COVID-19 pandemic, data reports have shown a drop in routine health care, like cervical and breast cancer screenings. Gibbons says the drop in these appointments is concerning and those who postpone routine screening or diagnostic testing could be at risk for developing later stage breast cancer.

"Our message to our patients is breast cancer is not going to wait until this pandemic is over; neither should you. With the projected increase in uninsured women, due to so many job losses, The Rose has to be ready to serve. Now more than ever, we depend on our insured patients to help cover the care for uninsured patients," she says.

Houston business competition opens applications

Small businesses in Houston have until August 10 to apply for the annual Liftoff Houston competition. Photo via liftoffhouston.smapply.org

The city of houston's annual business plan competition, Liftoff Houston, has opened applications. The program, which is sponsored by Capital One Bank, is looking for companies and will award winners in three categories: Product, service, and innovation

Each business that wins will receive a $10,000 cash prize. The competition is focused on early stage startups with revenue less than $10,000 and must have only been in business for less than a year. The companies also must be based in Houston.

Applicants can submit their information online to be considered for the contest. The deadline to apply is August 10.

TMCx company closes $1.53 million seed round

Manatee

Manatee has raised funds for its digital therapy platform. Photo via getmanatee.com

Manatee, a health tech startup based in Denver that was a member of this year's TMCx cohort, has announced it closed its seed funding round at $1.53 million. The company, which provides digital solutions to therapy for children, closed the round at the end of June.

Michigan-based Grand Ventures led the raise and invested alongside The American Family Insurance Institute (AmFam), Telosity, SpringTime Ventures, and notable health care entrepreneurs, Danish Munir, Luke Leninger, and Johnathan Weiner, according to information emailed by Manatee representative.

"Manatee was the first solution we found that really understood kids and their unique needs," says Christopher Neuharth, executive director of digital health and experience at Children's Wisconsin. "They got the dynamics between the child, parent, and therapist – and how to influence behavior change."

Accenture study finds COVID-19 has been a gamechanger for telemedicine

Houston medical organizations pivot to telemedicine and remote care amid COVID-19 crisis

An Accenture study found that most Texans are seeking telehealth amid the pandemic. Getty Images

According to a recent study from Accenture, 89 percent of Texas consumers want telehealth options — and the COVID-19 pandemic deserves the credit for the increased interest.

According to a press release from the company, the research found that:

  • One-fourth of Texans surveyed said they first learned about virtual health care following the outbreak of COVID-19.
  • The number of Texans who said they know a little or a lot about virtual health care increased 25 percent following the outbreak.
  • Approximately nine in 10 Texans surveyed after the pandemic began believe that virtual care options should be available to everyone.

The widespread stay-at-home orders exposed Texans to virtual health care and left a positive impression on receiving care remotely. For instance:

  • An estimated 4.5 million state residents began using virtual health care services since the onset of the pandemic.
  • Nearly half (45 percent) of Texans said they trust a virtual health visit as much as or more than an in-person visit—a 15 percent uptick from the pre-pandemic period.
  • Six out of seven remote-care patients (86 percent) who have continued to use virtual care options during the pandemic said their experience after the start of the COVID-19 outbreak was better or the same as before, and three-quarters (76 percent) said their wait time was shorter or the same.

"A lot of Texans got a taste for what it's like to see their physicians and specialists from the safety and comfort of their home," says Mark Olney, a managing director in Accenture's health practice and the study's lead author. "Now patients are eager to get more of that access, convenience and time savings."

These Houston startups have created health care-related solutions amid the coronavirus outbreak. Getty Images

These 7 Houston health tech companies are providing COVID-19 solutions

startups to the rescue

It's all hands on deck in Houston in the battle against coronavirus — and local biotech startups have risen to the occasion.

From mental health solutions and online portals to virtual medicine and new treatments, these Houston companies have recently launched or pivoted to new options in health care.

Mental Health Match

Ryan Schwartz is offering free counseling to Texans. Photo courtesy of Mental Health Match

Mental Health Match, a Houston-based startup that uses tech to easily connect people to mental health professionals, has announced the opportunity for 100 Texas residents to get their first appointment free and remotely.

The company cites data that shows:

  • A 78 percent increase in Texans who are concerned about their marriage
  • A 71 percent increase in Texans concerned with their parenting or their children
  • A 35 percent spike in Texans feeling panicked

"You might be practicing social distancing, but you are not alone. It is easier to make it through this together if you can get support and guidance from a skilled professional. That's why we're working with therapists across Texas to provide a free session to individuals who need it most," says Ryan Schwartz, founder of Mental Health Match, in a news release.

Texans can apply for the free sessions online on a first-come, first-served basis.

Medical Informatics Corp.

Medical Informatics Corp.'s Sickbay platform can monitor patients from afar. Photo via michealthcare.com

Houston-based Medical Informatics has created a virtual ICU program, called Sickbay, and the tech tool is being used to remotely monitor patients in Houston Methodist. The program works around the clock from a control hub to use artificial intelligence and algorithms to monitor patients.

The company, which recently moved into its office in TMCx+, announced major growth in January, just ahead of the coronavirus outbreak.

"We designed our Sickbay platform to give lost data back to doctors, nurses and other members of the care team so they could save more lives," says Vincent Gagne, vice president of product for MIC, in a news release. "In fact, our apps are built in collaboration with our clients, such as Texas Children's Hospital and Houston Methodist. Having these facilities blocks away from our headquarters accelerates that collaboration and development."

MolecularMatch

MolecularMatch is bringing together COVID-19 information and trials. Photo via molecularmatch.com

MolecularMatch, a Houston startup focused on clinical informatics, has launched a free portal that accumulates research and clinical trials for COVID-19. The company is a tenant of TMCx+ and a portfolio company of Houston-based venture capital group GOOSE.

"The number of therapeutic cures and vaccines being tested are growing at an astounding rate," says Eric Pulaski, CEO at MolecularMatch, in a news release. "Our tools make it easier for clinicians and patients to find the help they need. Hopefully, we can help save lives by shortening the time it takes to get more patients into clinical trials and by speeding up research to find cures and vaccines."

The product uses the company's artificial intelligence-backed curation platform and is updated every two to three days.

Luminare

Luminare Inc. pivoted to quickly create an online COVID-19 screening tool, and local governments have tapped into the resource. Andriy Onufriyenko/Getty Images

Founded in 2014, Houston-based health care software startup Luminare Inc. seeks to prevent sepsis, a life-threatening reaction to a host of infections that causes about one-third of U.S. hospital deaths. Recently, though, Luminare pivoted to address another health concern — the threat of the novel coronavirus.

After the novel coronavirus surfaced, Luminare retooled its sepsis-detection platform to create a free online self-assessment test for people who suspect they've contracted the virus. The test, available at CheckForCorona.com, helps someone figure out whether they should seek a coronavirus test.

An online screening typically takes less than two minutes. The confidential, secure assessment complies with guidelines from the U.S. Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO). Based on your assessment results, you might be directed to contact your local health department or, in the worst-case scenario, call 911. Click here to read more.

Manatee

Manatee users can sign up for three months free. Photo via getmanatee.com

Denver-based Manatee was just announced to be selected for the 2020 TMCx cohort, and — while programming is beginning virtually — the startup will be enroute to Houston as soon as it's safe. Manatee focuses on providing connected, everyday therapy for kids.

In light of the effects of COVID-19 on both parents and children, Manatee has allowed users to register for three months free. Individuals can apply online.

Moleculin Biotech Inc.

Houston-based Moleculin, which works on oncology treatment, has filed a patent for its treatment to battle the coronavirus. Getty Images

Houston-based Moleculin Biotech Inc., a clinical stage pharmaceutical company that typically focuses on cancer treatment, announced that it has filed for a new patent for its use of one of its products to be used against the coronavirus and other potential viruses.

This patent application is for Moleculin's WP1122, and the company has entered into a partnership with a major Texas university to advance its research.

"We've actually been working on the antiviral potential of WP1122 for some time now," says Walter Klemp, Moleculin's chairman and CEO, in a news release, "but the rise of COVID-19 has obviously placed a new sense of urgency on what we are doing. We hope to be generating animal data on WP1122's antiviral potential in the near term."

Pulmotech Inc.

Pulmotect, a clinical-stage biotechnology company based in Houston, is testing a drug that could be useful in mitigating the threats of the coronavirus, which is currently been recognized as a global health emergency. Getty Images

Experiments conducted by clinical-stage, Houston-based biotechnology company Pulmotect Inc. show its PUL-042 inhaled drug has proven effective in protecting mice against two types of coronavirus: severe acute respiratory syndrome (SARS) and Middle East respiratory syndrome (MERS). Researchers performed those tests at the University of Texas Medical Branch at Galveston.

In the Galveston experiments, a single inhaled dose of PUL-042 protected lab mice from the SARS virus, and it greatly reduced the amount of virus in their lungs after the mice became infected with SARS or MERS.

"With the risks of virulent coronaviruses and other threats increasing, as shown by the recent outbreak in Wuhan that has already spread from China to other countries including the United States, Pulmotect is optimistic that its immune-stimulating technology could be useful in mitigating the threats of current and emerging pathogens and protecting vulnerable populations," says CEO Dr. Colin Broom in a news release. Click here to read more.

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

TMCx names 9 health tech startups to its 2020 cohort

X-CITING NEWS

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.)
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Houston startup debuts bio-based 'leather' fashion collection in Milan

sustainable fashion

Earlier this month, Houston-based Rheom Materials and India’s conscious design studio Econock unveiled a collaborative capsule collection that signaled more than just a product launch.

Hosted at Lineapelle—long considered the global epicenter of the world's premier leather supply chain—in the vaulted exhibition halls of Rho-Fiera Milano, the collection centered around Rheom’s 91 percent bio-based leather alternative, Shorai.

It was a bold move, one that shifted sustainability from a concept discussed in panel sessions to garments that buyers could touch and wear.

The collection featured a bomber-style jacket, an asymmetrical skirt and a suite of accessories—all fabricated from Shorai.

The standout piece, a sculptural jacket featuring a funnel neck and dual-zip closure, was designed for movement, challenging assumptions about performance limitations in bio-based materials. The design of the asymmetrical skirt was drawn from Indian armored warrior traditions, according to Rheom, with biodegradable corozo fasteners.

Built as a modular wardrobe rather than isolated pieces, the collection reflects a shared belief between Rheom and Econock in designing objects that adapt to daily life, according to the companies.

The collection was born out of a new partnership between Rheom and Econock, focused on bringing biobased materials to the market. According to Rheom, the partnership solves a problem that has stalled the adoption of many next-gen textiles: supply chain friction.

While Rheom focuses on engineering scalable bio-based materials, New Delhi-based Econock brings the complementary design and manufacturing ecosystem that integrates artisans, circular materials and production expertise to translate the innovative material into finished goods.

"This partnership removes one of the biggest barriers brands face when adopting next-generation materials,” Megan Beck, Rheom’s director of product, shared in a news release. “By reducing friction across the supply chain, Rheom can connect brands directly with manufacturers who already know how to work with Shorai, making the transition to more sustainable materials far more accessible.”

Sanyam Kapur, advisor of growth and impact at Econock, added: “Our partnership with Rheom Materials represents the benchmark of responsible design where next-gen materials meet craft, creativity, and real-world scalability.”

Rheom, formerly known as Bucha Bio, has developed Shorai, a sustainable leather alternative that can be used for apparel, accessories, car interiors and more; and Benree, an alternative to plastic without the carbon footprint. In 2025, Rheom was a finalist for Startup of the Year in the Houston Innovation Awards.

Shorai is already used by fashion lines like Wuxly and LuckyNelly, according to Rheom. The company scaled production of the sugar-based material last year and says it is now produced in rolls that brands can take to market with the right manufacturer.

Houston startup debuts leather alternative fashion collection in Milan

Houston clean energy co. secures $100M to deploy tech on global scale

Going Global

Houston-based Utility Global has raised $100 million in an ongoing Series D round to globally deploy its decarbonization technology at an industrial scale.

The round was led by Ara Partners and APG Asset, according to a news release. Utility plans to use the funding to expand manufacturing, grow its teams and support its commercial developments and partnerships.

“This financing marks a critical step in Utility’s transition from a proven technology to full-scale global commercial execution,” Parker Meeks, CEO and president of Utility Global, said in the release. “Industrial customers are no longer looking for pilots or promises; they need deployable solutions that work within existing assets and deliver true economic industrial decarbonization today that is operationally reliable and highly scalable. Utility’s technology produces both economic clean hydrogen and capture-ready CO2 streams, and this capital enables us to scale and deploy that impact globally with speed, discipline, and rigor.”

Utility Global's H2Gen technology produces low-cost, clean hydrogen from water and industrial off-gases without requiring electricity. It's designed to integrate into existing industrial infrastructure in hard-to-abate assets in the steel, refining, petrochemical, chemical, low-carbon fuels, and upstream oil and gas sectors.

“Utility is tackling one of the most difficult challenges in the energy transition: decarbonizing hard‑to‑abate industrial sectors,” Cory Steffek, partner at Ara Partners and Utility Global board chair, said in the release. “What sets Utility apart is its ability to compete head‑to‑head with conventional fossil‑based solutions on cost and reliability, even as it materially reduces emissions. With this new funding, Utility is well-positioned for its next chapter of commercial growth while maintaining the technical excellence and capital discipline that have defined its development to date.”

Utility Global reached several major milestones in 2025. After closing a $53 million Series C, the company agreed to develop at least one decarbonization facility at an ArcelorMittal steel plant in Brazil. It also signed a strategic partnership with California-based Kyocera International Inc. to scale global manufacturing of its H2Gen electrochemical cells.

The company also partnered with Maas Energy Works, another California company, to develop a commercial project integrating Maas’ dairy biogas systems with H2Gen to produce economical, clean hydrogen.

"These projects were never intended to stand alone. They anchor a deep and growing pipeline of commercial projects now in development globally across steel, refining, chemicals, biogas and other hard-to-abate sectors worldwide, Meeks shared in a 2025 year-in-review note. He added that 2026 would be a year of "focused acceleration to scale."

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This article originally appeared on EnergyCapitalHTX.com.

Houston Methodist awarded $4M grant to recruit head of Neal Cancer Center

new hire

Armed with a $4 million state grant, the Houston Methodist Academic Institute has recruited a renowned expert in ovarian and endometrial cancer research to lead the Dr. Mary and Ron Neal Cancer Center.

The grant, provided by the Cancer Prevention and Research Institute of Texas, enabled the institute to lure Dr. Daniela Matei away from Northwestern University’s Feinberg School of Medicine in Chicago. There, she is the Diana Princess of Wales Professor in Cancer Research and chief of the Division of Reproductive Science in Medicine.

Matei will succeed Dr. Jenny Chang, who was hired last year to run the Houston Methodist Academic Institute.

At the Neal Cancer Center, located in the Texas Medical Center complex, oncologists work on innovations in cancer research, treatment, and technology. The center opened in 2021 after the Neals donated $25 million to expand Houston Methodist’s cancer research capabilities. It handles about 7,000 new cases each year involving more than two dozen types of cancer.

U.S. News & World Report puts Houston Methodist Hospital at No. 19 among the country’s best hospitals for cancer care, two spots below Chicago’s Northwestern Memorial Hospital. The University of Texas MD Anderson Cancer Center in Houston sits at No. 1 on the list.

Matei’s research related to ovarian and endometrial cancer holds the potential to benefit tens of thousands of American women. The American Cancer Society estimates:

  • 21,010 women in the U.S. will be diagnosed with ovarian cancer, and 12,450 women will die from it.
  • 68,270 women in the U.S. will be diagnosed with endometrial cancer, and 14,450 women will die from it.

Matei is leaving Northwestern in the wake of widespread cuts in federal funding for medical research. The National Institutes of Health (NIH) has canceled or frozen tens of millions of dollars in grants for Northwestern, the Wall Street Journal reports, and the university has been plugging the gaps with its own money.

“The university is totally keeping us on life support,” Matei told the newspaper last year. “The big question is for how long they can do this.”

According to the Wall Street Journal, Matei’s $5 million NIH grant supporting 69 cancer trials has been caught up in the federal funding chaos, so Northwestern stepped in to cover trial expenses such as nurses’ salaries and diagnostic procedures.

Trial participants include some patients with rare, incurable tumors who are undergoing experimental treatments aligned with the genetics of their condition, the newspaper says.

“It’s certainly a life-and-death situation for cancer patients on these trials,” Matei said in 2025.

Matei is among the beneficiaries of more than $15 million in grants approved February 18 by CPRIT’s board. The grants went toward recruiting five cancer researchers to institutions in Texas.

One of those grants, totaling $1.5 million, went to the University of Houston to recruit Akash Gupta, a research scientist at MIT’s Koch Institute for Integrative Cancer Research. The remaining grants went to recruit scientists to The University of Texas at Dallas and The University of Texas Southwestern Medical Center.
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