TMCx announces its next medical device cohort with 5 startups hailing from Houston

Health tech

The next TMCx cohort begins August 5. Courtesy of TMC

The Texas Medical Center's startup accelerator, TMCx, has added 19 companies from all around the world to join its medical device family.

The TMC Innovation Institute team narrowed down 140 applications to 40 for the second round of the process, which includes face-to-face interviews, according to a release. After those, 18 companies were selected to join the TMCx09 class, which focuses on medical devices. The last cohort, which specialized in digital health, concluded on June 6.

Out of the 18 companies, five are from Houston. Four other startups hail from other corners of the United States, while 10 international companies also made the cohort. The program commences on August 5, and will run for four months before concluding in a demo day event in November.

Here are the medical device startup companies joining the TMCx09 cohort.

See update at the bottom of this story.

Vascular devices

Neurescue (Copenhagen, Denmark) — Neurescue has developed a computer-aided aortic occlusion catheter to help save the lives of patients in the emergency care setting.
Venari Medical (Galway, Ireland) — Venari Medical is developing BioVena — a medical device that treats varicose veins and venous leg ulcers with a minimally invasive approach intended to reduce pain.
Obsidio (Solana Beach, California) — Obsidio is developing a universal gel embolic material to shrink lesions or to treat internal bleeds, aneurysms and vascular malformations.

Novel therapies

PATH EX (Houston) — PATH EX is developing an extracorporeal blood cleansing device designed to selectively remove pathogens, including multi-drug resistant bacteria, and endotoxins from circulating blood to diagnose and treat sepsis.
Innosphere (Hafia, Israel) — Innosphere is a medical device company developing brain stimulation solutions for treating cognitive disorders, with a focus on ADHD.

Rehab

AbiliTech (St. Paul, Minnesota) — AbiliTech is restoring independence to patients with upper limb neuromuscular conditions by offering a wearable assistive device that allows the user to perform independent activities of daily living.
Komodo OpenLab (Toronto, Ontario, Canada) — Komodo OpenLab has developed Tecla, an assistive device giving individuals with physical disabilities the ability to communicate, control, and connect with the world.

Surgery

CNX Medical (Houston) — CNX Medical is developing a transcutaneous neurostimulator that is placed in the ear and helps reduce inflammation after abdominal surgery, with a focus on post-operative ileus.
CorInnova (Houston) — CorInnova has developed a soft robotic non-blood contacting biventricular cardiac assist device for the treatment of heart failure that would eliminate the many adverse events associated with current technologies.
Ictero Medical (Houston) — Ictero Medical is developing a minimally invasive ablation solution to treat high-risk patients with gallstone disease and offer patients the benefits of surgery without the risk. The company was among the big winners at the Texas A&M New Ventures Competition.

Diagnostics

Artidis (Basel, Switzerland) — InArtidis has developed a nanomechanical biomarker technology using precise tissue measurement in combination with data analytics to personalize cancer diagnosis.
Inveox (Munich, Germany) — Inveox automates the pre-analytical process in cancer diagnosis to improve patient safety and lab efficiency.
Cambridge Respiratory Innovations Ltd. (Cambridge, United Kingdom) — CRiL has developed, N-Tidal, a device that analyzes CO2 end-tidal breathing to improve respiration monitoring.

Toward home health

Kegg (San Francisco) — Kegg is on a mission to simplify every woman's journey towards taking charge of her fertility with a user-friendly monitoring device.
TestCard (London) — TestCard is a flat pack urine test kit that functions in combination with a mobile phone application, turning a phone's camera into a clinical grade scanner.
Patch'd (New South Wales, Australia, and San Francisco) — Patch'd uses deep learning and wearable devices to predict the onset of sepsis in the at-home patient.

Transplant

Volumetric (Houston) — Volumetric's 3D bioprinting platform creates materials with living cells with applications in biomaterials, cancer research, and eventually human organ replacements. The company's technology started out of Rice University.
Tevosol (Edmonton, Alberta, Canada) — Tevasol is developing organ transplant transportation solutions. Their portable warm perfusion machines will help surgeons transplant more organs today and solve organ shortage tomorrow.

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Diagnostic Photonics withdrew from the program after the article published.

Houston-based Galen Data is growing its clientbase and just formed two new partnerships with medical device companies. Photo via galendata.com

Houston health care data company grows with new medical device partnerships

Digitizing health

Educated as an engineer, Chris DuPont has stepped outside his professional comfort zone to generate funding for his Houston-based startup, Galen Data Inc. DuPont's pool of technical contacts in Houston is "wide and deep," he says, but his pool of financial contacts had been shallow.

Overcoming obstacles in Houston's business waters, DuPont has raised two rounds of angel funding — he declines to say how much — that have enabled Galen Data to develop and market its cloud-based platform for connecting medical devices to the internet, including pacemakers and glucose monitors. DuPont is the startup's co-founder and CEO. Galen Data's platform meets compliance standards set by the U.S. Food and Drug Administration (FDA), the Health Insurance Portability and Accountability Act of 1996 (HIPPA), cybersecurity organizations, and others.

Galen Data's patent-pending technology lets medical device manufacturers tailor the cloud-based software to their unique needs. DuPont says his company's software is geared toward medical devices that are outside, not inside, hospitals and other healthcare facilities. He declines to divulge how many customers the startup has.

Among the startup's customers is San Clemente, California-based Fresca Medical Inc., developer of a device designed to treat sleep apnea.

DuPont says his company's software allows Fresca to perform such tasks as proactively diagnosing problems with the battery in a sleep apnea device or collecting patient data to back up insurance claims. The software even can monitor trends among various medical devices, he says. Galen Data also is helping Fresca develop its mobile app for patients.

Another customer is Friendswood-based Spark Biomedical Inc., developer of a smartphone-connected device, called a neurostimulator, that eases the symptoms of withdrawal from highly addictive opioids.

Hatched within Houston-based Tietronix Software Inc., DuPont's previous employer, Galen Data launched in 2016 but didn't roll out its first product until 2018.

Galen Data's emergence comes as the market for internet-connected mobile health apps keeps growing. One forecast envisions the global space for mobile health exceeding $94 billion by 2023.

"We want to be at the forefront of that technology curve," DuPont says. "We might be six months early, we might be a year early, but it's starting to happen."

Galen Data vies for customers in a largely untapped market, since the majority of medical devices still aren't connected to the internet, according to DuPont. As a whole, medical device makers have been reluctant to delve into connectivity, given the compliance headaches, DuPont says. That's where Galen Data steps in. It's the startup's job, he says, to ensure its tech platform adheres to myriad compliance regulations.

DuPont says a medical device manufacturer easily could spend $250,000 to $500,000 to create its own compliant, connected tech platform similar to Galen Data's offering — and that doesn't include ongoing operational expenses. Galen Data's platform delivers the same benefits at a fraction of that cost, he says.

The startup strives to accomplish its mission with minimal staffing. Between full-timers (including the three co-founders) and contractors, Galen Data employs fewer than 10 people, DuPont says. As needed, Galen Data taps the software development talent at Tietronix, which owns a minority stake in the startup, according to DuPont.

"I'm very, very capital-efficient with our cash," he says. "I don't like layoffs. We'll never have planned layoffs."

If Galen Data continues to achieve its financial goals (it's not profitable yet), DuPont says, the company's workforce could total 20 to 30 within three years. He foresees opening satellite offices in Austin (a tech hub) and Boston (a life sciences hub) at some point.

As for additional products, DuPont wants to eventually build on Galen Data's existing platform by paving the way for data to be securely transferred from medical devices to electronic medical records.

Anchored in Houston, Galen Data hopes to be a player in what DuPont calls "the next biotech corridor of the United States," encompassing not just Houston but Galveston, Austin, Dallas, and San Antonio.

For Galen Data to thrive in that environment, though, it must conquer what DuPont classifies as his biggest hurdle: raising money from investors in a region rooted in the oil and gas industry. In the first quarter of 2019, Houston startups collected less than 6 percent of the venture capital reported throughout Texas — far below what startups in Austin and Dallas reaped during the same period.

Ramping up investment in Galen Data will require educating local investors about the promising potential of the medical device sector, DuPont says. Meanwhile, he's begun hunting for funding outside Texas.

"It's challenging for a startup to raise money in Houston," says DuPont, who praises local entrepreneurs for their support of Galen Data. "We've done it, but it's been hard."

"If Galen is super successful, hopefully we can invest in other early stage companies," DuPont adds. "That's part of the vision."

Galen Concept Video www.youtube.com

Houston-based Saranas has received de novo distinction from the FDA for its bleed monitoring technology. Courtesy of Saranas

Houston medical device company gains FDA approval

EarlyBird got the worm

When it comes to early bleeding detection, Houston-based Saranas, which closed $2.8 million in funding last year, is ahead of the game with its Early Bird Bleed Monitoring System. The Food and Drug Administration has recognized the medical device company and granted it De Novo distinction.

"Gaining FDA approval for the Early Bird is a significant milestone for Saranas as it demonstrates our continued commitment to address an unmet need for real-time detection and monitoring of endovascular bleed complications," says Saranas president and CEO, Zaffer Syed in a release. "As the first and only device on the market for early bleed detection, we have the potential to significantly reduce bleeding complications and related healthcare costs, while improving clinical outcomes in patients undergoing endovascular procedures."

The Early Bird technology is designed to detect bleeding from vessel injury caused by a surgery, for instance. One in five patients experienced a bleed complication in over 17,000 large-bore transcatheter procedures, according to the release which cites the National Inpatient Sample Database.

"Bleeding remains an Achilles' heel of advancing minimally-invasive, catheter-based procedures," says Dr. Dimitrios Karmpaliotis, director of Chronic Total Occlusions, Complex and High Risk Angioplasty at Columbia University Medical Center, in the release. "The Early Bird will play a key role in making these procedures safer in the future by providing physicians bleed monitoring in real-time."

In May, Saranas received $2.8 million in funding $2.8 million in funding from investors to enable testing of Early Bird. In all, the startup has collected $12 million from investors. A month after the funding announcement, Saranas was one of 50 startups chosen for the MedTech Innovator program, which nurtures medical technology companies.

Currently in the piloting stage, Saranas plans to commercially launch the Early Bird Bleed Monitoring System in select markets across the United States. Currently, the company hasn't disclosed a timeline for that roll out.

The De Novo distinction's purposes is to review new technologies and mitigate risk as they prepare to enter the market. In December, the FDA proposed new procedures and criteria for the De Novo classification process.

"The De Novo pathway for novel medical devices allows the FDA to conduct a rigorous review of new technologies so that patients have timely access to safe and effective medical devices to improve their health," says FDA Commissioner Scott Gottlieb, in a release. "At the same time, the FDA is modernizing its 510(k) pathway, which is used for clearance of low- to moderate-risk devices that are substantially equivalent to a device already on the market. The De Novo pathway provides a vehicle for establishing new predicates that can reflect modern standards for performance and safety and can serve as the basis for future clearances. Our goal is to make the De Novo pathway significantly more efficient and transparent by clarifying the requirements for submission and our processes for review."

Houston-based after alcohol aid Cheers rebranding from Thrive+ was one of this week's top stories. Courtesy of Cheers

5 most popular innovation stories in Houston this week

Now trending

Editor's note: This week's top stories were mostly roundups — female innovators to know, medical device companies changing the health tech industry, and blockchain startups to keep an eye on. Check out what InnovationMap readers were drawn to in this roundup of roundups.

Houston hangover pill startup seen on Shark Tank rebrands following multimillion-dollar raise

On his failed investor attempt on Shark Tank, Brooks Powell couldn't secure a shark investment for $400,000. Now, he just closed on $2.1 million for his startup. Courtesy of Cheers

When Brooks Powell's Houston-based startup got passed over by the investors on Shark Tank last year, he didn't let it deter him. Instead, the Houston entrepreneur buckled down and started seeking investments off the screen.

It paid off, and Cheers (née Thrive+) recently closed a $2.1 million seed round. The round was lead by NextView Ventures, which has the likes of TaskRabbit, threadUP, and Letgo among its portfolio. Click here to continue reading the story.

5 Houston companies using blockchain to unlock new opportunities across industries

These five Houston startups are linking up industries and blockchain technology. Getty Images

Blockchain has really started to come into its own as more and more companies are applying the technology across industries — from oil and gas analytics and fundraising to even social media marketing. Five Houston companies have made their mark on these different industries by incorporating this burgeoning technology. Click here to continue reading the story.

3 Houston female entrepreneurs to know this week

Reda Hicks (left) of GotSpot Inc, Ghazal Qureshi (center) of Idea Lab Kids, and Abbey Donnell of Work & Mother are this week's innovators to know. Courtesy photos

Another Monday means another set of innovators to know. This one focuses on a few female startup leaders changing the game in the commercial real estate and education industries. Click here to continue reading the story.

5 Houston medical device companies changing the industry

As medicine and technology both advance, these Houston startups are at the forefront of the industry. Getty Images

With the Texas Medical Center at the heart of Houston, health advancement opportunities are endless. Medical breakthroughs are happening across town, but as technology advances, the industry is seeing more and more startups popping up to take new tech tools and applying them to traditional medical devices and procedures. These five Houston startups are developing the future of the industry — one device at a time. Click here to continue reading the story.

Houston-based pitch contest announces 2019 finalists ahead of SXSW competition

Houston-based HATCH Pitch has revealed its four finalists. The startups will take the stage during SXSW in March. Courtesy of HATCH Pitch

For the eighth year, Houston-based HATCH Pitch is headed to Austin for SXSW to host its pitch competition focused on startups making the world a better place. This year's competition, which takes place on March 11, will be between four finalists. Click here to continue reading the story.

As medicine and technology both advance, these Houston startups are at the forefront of the industry. Getty Images

5 Houston medical device companies changing the industry

The future is now

These five Houston startups are developing the future of the industry — one device at a time.

Portable Therapeutix

For years, Squid Compression has helped ease the pain of patients in doctor's offices. Now, anyone can get the treatment on the go. Photo via squidgo.com

The country is currently in an opiod crisis, and one solution is making pain-relieving devices more accessible to patients. That's what Houston-based startup Portable Therapeutix LLC is trying to do with its drug-free solution to pain called Squid Go. The portable device is designed to ease the pain and swelling of sore joints and muscles using cold therapy and compression therapy. It's a follow-up to the company's Squid Compression, a pain management device launched in 2013 for patients at rehabilitation centers, hospitals, doctor's offices, and the like.

To reap the benefits of Squid Go, a consumer uses the device for just 15 minutes. Squid Go — which combines a cold gel pack with proprietary compression technology — features special air pockets that inflate and deflate, gently massaging the body part needing treatment. That massaging boosts circulation and reduces swelling.

"Increased circulation brings more nutrient- and oxygen-rich blood to the area, promoting recovery," says Sam Stolbun, co-founder of Portable Therapeutix. "Meanwhile, [the] gentle compression also drives the pain-relieving cold from the gel pack deeper into the tissues to alleviate soreness and discomfort." Read more about Squid Go here.

Zibrio

Balancing is important throughout your life, and Zibrio has the tools and tips for you to use to stay centered. Pexels

From NASA to your bathroom floor — Katharine Forth has found a new way to track balance. With her company, Zibrio, people can have the everyday ability to figure out how balanced they are.

"The machines typically used for balance measurement can be as large as a telephone booth, so we invented a new way to measure postural control using a much smaller mechanism that fit inside a moon boot," Forth says.

Zibrio is a health company that aims to be the gold standard of measuring balance. The Zibrio scale calculates users' weight like a typical scale and rates their balance on scale of 1 to 10.

The scale gathers data from your weight, your postural control, your muscles and other factors to calculate the rating. Andrea Case-Rogers, chief experience officer at Zibrio, describes a perfect rating of 10 as elusive for most, or "Simone Biles on a good day." Read more about Zibrio here.

Saranas Inc.

Saranas Inc. is testing its technology that can detect and track internal bleeding complications. Getty Images

A Houston-based medical device startup is on a twofold mission to reduce healthcare costs and improve the safety of complex medical procedures involving blood vessels. Saranas Inc. currently in clinical trials for its Early Bird Bleed Monitoring System, which is designed to detect and track bleeding complications related to endovascular procedures. If all goes well, the U.S. Food and Drug Administration will approve Early Bird in 2019, Syed says. Then, the device would be made widely available to medical facilities across the country.

"What attracted me to Saranas is that our solution has the potential to meaningfully reduce serious bleeding complications that worsen clinical outcomes and drive up healthcare costs," says Zaffer Syed, president and CEO of Saranas. "In addition, our device may support access of important minimally invasive cardiac procedures by allowing them to be performed more safely."

Dr. Mehdi Razavi, a cardiologist with the Texas Heart Institute at Houston's Texas Medical Center, invented the device. It's being tested by the institute and other medical facilities in the U.S. As many as 100 patients will participate in the clinical trial, which is expected to last several months. Read more about Saranas and the Early Bird here.

EllieGrid

Courtesy of EllieGrid

Talking the right vitamins and medications at the right times shouldn't seem like more trouble than it's worth. Houston-based EllieGrid is a smart pill box that is easy to organize and stylish to use on the go. Plus, with a growing volume of users, the company is able to use its customer data to track medication compliance.

"What's really neat about EllieGrid is that we are starting to learn users' habits as days go by, so that we can trigger alarms at optimal times," says co-founder and CEO Abe Matamoros at The Cannon's female entrepreneurs pitch night.

For co-founder, Regina Vatterott, the company is about reinventing traditional medical devices that can be clunky or inefficient for daily use.

"We want to do more and more with medical devices because we think that people are always people before they are patients," Vatterott says. Read more about EllieGrid here — as well as more about the founder here.

Intelligent Implants

Intelligent Implant's co-founder, Juan Pardo, told the crowd at Demo Day that his company's device allows for 50 percent faster bone growth in patients. Photo by Cody Duty/TMC

Chronic lower back pain can result in a need for spinal fusion surgery — and 40 percent of those surgeries fail, says Juan Pardo, co-founder of Intelligent Implants, which has an office in Houston. Pardo and his team have come up with an implant that tracks post-op healing and introduces electronic stimulation wirelessly.

The device is the same size and shape as the spacer that surgeons currently use, but contains a technology that can deliver electronic stimulation therapy and monitor progress without needing batteries. The doctor is able to adjust treatment remotely, and the device can heal the patient 50 percent faster than the standard care.

Intelligent Implants was announced as the first in-residence company at the Center for Device Innovation by Johnson and Johnson and also launched its large animal studies. The company has a goal to raise $1.6 million, and has already secured $900,000 — $250,000 of which came from the new TMC Venture Fund. Read more about Intelligent Implants and the other Texas companies in its TMC cohort here.

From a locally sourced meal service company to stem cell research and a balance measuring device, this week's innovators are ones to know in the health industry. Courtesy photos

3 Houston health-focused innovators to know this week

Who's who

More and more Americans are focusing on their health, from eating right to experimenting with new treatments or devices. These three Houston innovators are riding the coattails of this health-focused movement with their startups. With advances in technology and the movement only growing faster and faster, you'd better keep your eye on these Houston innovators.

Marla Murphy, founder of The Blonde Pantry

Courtesy of The Blonde Pantry

Marla Murphy didn't feel like she was doing enough to promote health and wellness with her platform, The Blonde Pantry. So, she expanded it to incorporate locally sourced produce and easy-to-make recipes she gets ready every weekend to deliver to her members by Monday.

"It's not about selling meals and moving on, I want this to be a lifestyle company that is really founded and has deep roots in Houston," says Murphy in a InnovationMap story.

Murphy tells InnovationMap that in the next year she hopes to expand into the retail space and find a bigger commercial kitchen to function as their own. She also hopes to partner with companies outside of food and continue to nourish lives in someway.

David Eller, chairman, co-founder and CEO of Celltex

Courtesy of Celltex

Stem cell treatment is personal to David Eller, chairman, co-founder and CEO of Celltex. Eller had the treatment in hopes of resolving pain from a college football injury.

"I would go to work and put four to six Advil in my pocket," Eller says in an InnovationMap story about Celltex's technology. Within months, he stopped needing those pills.

Houston-based Celltex tracks its progress with its patients. Eighty-three percent of multiple sclerosis patients have reported improvement of symptoms specific to their disease, as have 73 percent of Parkinson's sufferers. But the staggering fact is that 100 percent of 58 respondents with rheumatoid arthritis say they have benefited.

Katharine Forth, founder and CEO of Zibrio

Courtesy of Zibrio

Katharine Forth has used a technology she developed with her colleague at NASA to measure balance in astronauts to create a device that any terrestrial human can now use from the comfort of their own homes.

Zibrio is now a finalist for the 2019 SXSW Pitch in the health and wearables category and will take its balance technology to the stage in March.

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Houston startup secures big contract, coworking company acquired, and more local innovation news

short stories

Houston is starting 2022 strong in terms of innovation news, and there might be some headlines you may have missed.

In this roundup of short stories within Houston startups and tech, the Bayou City is ranked based on its opportunities for STEM jobs, a Houston blockchain startup scores a major contract, Rice University opens applications for its veteran-owned busineess competition, and more.

Data Gumbo announces contract with Equinor

After a successful pilot, Equinor has signed off on a contract with Data Gumbo.. Courtesy of Data Gumbo

Houston-based Data Gumbo, an industrial blockchain-software-as-a-service company, announced that it has signed a contract with Equinor. The global energy company's venture arm, Equinor Ventures, supported the startup's $7.7 million series B round, which closed last year.

The company's technology features smart contract automation and execution, which reduces contract leakage, frees up working capital, enables real-time cash and financial management, and delivers provenance with unprecedented speed, accuracy, visibility and transparency, per the release.

“Equinor is an industry trailblazer, demonstrating the true value of our international smart contract network to improve and automate manual processes, and bring trust to all parties,” says Andrew Bruce, founder and CEO of Data Gumbo, in a news release. “Smart contracts are playing a critical role in driving the energy industry forward. Our work with Equinor clearly demonstrates the benefits that supermajors and their supply chain customers, partners and vendors experience by automating commercial transactions. We are proud to continue our work with Equinor to help them realize the savings, efficiencies and new levels of transparency available through our smart contract network.”

Equinor opted into a pilot with the company a few years ago.

“Since piloting Data Gumbo’s smart contracts for offshore drilling services in 2019, we have worked with the company to continually refine and improve use cases. We now have the potential to expand Data Gumbo’s smart contract network to enable transactional certainty across our portfolio from the Norwegian Continental Shelf to our Brazilian operated assets and beyond,” says Erik Kirkemo, senior vice president at Equinor. “GumboNet reduces inefficiencies and processing time around contract execution in complex supply chains, which is a problem in the broader industry, and we look forward to realizing the streamlined process and cost savings of its rapidly expanding smart contract network.”

WeWork acquires Dallas coworking brand with 6 Houston locations

Common Desk, which has six locations in Houston including in The Ion, has been acquired. Photo courtesy of Common Desk

Dallas-based Common Desk, which has six locations in Houston, announced its acquisition by WeWork. The company's office spaces will be branded as “Common Desk, a WeWork Company,” according to a news release.

“Similar to WeWork, Common Desk is a company built on the concept of bringing people together to have their best day at work," says Nick Clark, CEO at Common Desk, in the release. "With the added support from WeWork, Common Desk will be able to not only leverage WeWork’s decade of experience in member services to improve the experience of our own members but also leverage WeWork’s impressive client roster to further build out our member base.”

Here are the six Common Desk spaces in Houston:

Here's how Houston ranks as a metro for STEM jobs

Source: WalletHub

When it comes to the best cities for jobs in science, technology, engineering, and math, Houston ranks in the middle of the pack. The greater Houston area ranked at No. 37 among the 100 largest metros across 19 key metrics on the list compiled by personal finance website, WalletHub. Here's how Houston fared on the report's metrics:

No. 36 – percent of Workforce in STEM
No. 74 – STEM Employment Growth
No. 43 – Math Performance
No. 16 – Quality of Engineering Universities
No. 2 – Annual Median Wage for STEM Workers (Adjusted for Cost of Living)
No. 90 – Median Wage Growth for STEM Workers
No. 75 – Job Openings for STEM Graduates per Capita
No. 88 – Unemployment Rate for Adults with at Least a Bachelor’s Degree

Elsewhere in Texas, Austin ranked at No. 2 overall, and Dallas just outranked Houston coming in at No. 34. San Antonio, El Paso, and McAllen ranked No. 51, No. 65, and No. 88, respectively.

Rice University calls for contestants for its 8th annual startup pitch competition for veterans

Calling all veteran and active duty startup founders and business owners. Photo courtesy of Rice University

Rice University is now accepting applications from Houston veterans for its annual business competition. To apply for the 2022 Veterans Business Battle, honorably discharged veterans or active duty founders can head online to learn more and submit their business plan by Feb. 15.

“We’re looking forward to giving veterans the opportunity not just to share their ideas and get financing, but learn from other past winners the lessons about entrepreneurship they’ve lived through while growing their businesses,” event co-chair Reid Schrodel says in a news release.

Over the past few years, finalists have received more than $4 million of investments through the program. This year's monetary prizes add up to $30,000 — $15,000 prize for first place, $10,000 for second place, and $5,000 for third place.

Finalists will be invited to make their business pitch April 22 and 23 at Rice University. Click here to register for the event.

City of Houston receives grant to stimulate STEM opportunities

Houston's youth population is getting a leg up on STEM opportunities. Photo via Getty Images

Thanks to a $150,000 grant from the National League of Cities, the city of Houston has been awarded a chance to provide quality education and career opportunities to at-risk young adults and students. The city is one of five cities also selected to receive specialized assistance from NLC’s staff and other national experts.

“This award is a big win for young people. They will benefit from significant career development opportunities made possible by this grant,” says Mayor Sylvester Turner in a news release. “These are children who would otherwise go without, now having experiences and connections they never thought possible. I commend the National League of Cities for their continued commitment to the future leaders of this country.”

According to the release, the grant money will support the Hire Houston Youth program by connecting diverse opportunity youth to the unique STEM and technology-focused workforce development.

"Our youth deserve educational opportunities that connect them to the local workforce and career exploration, so they can make informed choices about their future career path in Houston’s dynamic economy. Houston youth will only further the amazing things they will accomplish, thanks to this grant," says Olivera Jankovska, director of the Mayor's Office of Education.

Houston software startup raises $12.5M series B

money moves

Houston-based Codenotary, whose technology helps secure software supply chains, has raised $12.5 million in a series B round. Investors in the round include Swiss venture capital firm Bluwat and French venture capital firm Elaia.

The $12.5 million round follows a series A round that was announced in 2020, with total funding now at $18 million.

Codenotary, formely known as vChain, says the fresh round of money will be used to accelerate product development, and expand marketing and sales worldwide. Today, the startup has 100-plus customers, including some of the world’s largest banks.

Codenotary’s co-founders are CEO Moshe Bar and CTO Dennis Zimmer. They started the company in 2018.

Bar co-founded Qumranet, which developed the Linux KVM hypervisor. A hypervisor creates and runs virtual machines. Software provider Red Hat purchased Qumranet in 2008 for $127 million. Before that, he founded hypervisor company XenSource, which cloud computing company Citrix Systems bought in 2007 for $500 million.

“Codenotary offers a solution which allows organizations to quickly identify and track all components in their DevOps cycle and therefore restore trust and integrity in all their myriad applications,” Pascal Blum, senior partner at Bluwat, says in a news release.

The SolarWinds software supply chain hack in 2020 and the more recent emergence of Log4j vulnerabilities have brought the dangers of software lifecycle attacks to the forefront, Bar says. Now, he says, more and more companies are looking for ways to prove the legitimacy of the software that they produce.

Codenotary is the primary contributor to immudb, the an open-source, enterprise-class database with data immutability, or stability, designed to meet the demands of highly used applications.

Dallas-based ridesharing app gears up for expansion across Houston and beyond

HOUSTON INNOVATOR PODCAST EPISODE 118

Before he started his current job, Winston Wright would have thought a startup attempting to compete with the likes of Uber and Lyft was going to fight an uphill battle. Now, he sees how much opportunity there is in the rideshare market.

Wright is the Houston general manager for Alto, a Dallas-based company that's grown its driving service platform into five markets — first from Dallas into Houston and then to Los Angeles, Miami, and, most recently, Washington D.C. Alto's whole goal is to provide reliability and improve user experience.

"We're elevating ridesharing," Wright says on this week's episode of the Houston Innovators Podcast. "With Alto, you get a consistent, safe experience with. a high level of hospitality. And that's a key differentiator for us in the market, and we're able to replicate that time and time again."

Wright, whose background is in sales and operations in hospitality, says his vision for alto in Houston is to expand the service — which operates in the central and western parts of the city — throughout the greater Houston area.

"The vision I have for this market is that, as we move forward and continue to expand, that we're covering all of Houston," he says.

This will mean expanding the company's physical presence too. Alto recently announced its larger space in Dallas, and now the Houston operations facility will grow its footprint too.

Wright says he's also focused on growing his team. Over the past two years, pandemic notwithstanding, the company has maintained hiring growth. Alto's drivers are hired as actual employees, not contractors, so they have access to benefits and paid time off.

The company, which raised $45 million in its last round of investment, is expanding next to the Silicon Valley area, followed by three to five more markets in 2022. Then, by the end of 2023, it's Alto's mission to have a completely electronic fleet of vehicles.

"Our goal is to have over 3,000 EV cars and be the first company with a 100 percent electric fleet by 2023," Wright says.

Wright shares more on Alto's future in Texas and beyond, as well as what's challenging him most as he grows the team locally. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

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