Houston health tech startup closes $10M series B led by Austin investors

money moves

BrainCheck has raised its latest round of funding. Photo by Natalie Harms/InnovationMap

A Houston-based tech company that's tackling cognitive health diagnoses with its innovative platform has closed its latest round of funding.

BrainCheck, the cognitive health care platform for physicians, announced the closing of its $10 million series B funding led by Austin-based investors, Next Coast Ventures and S3 Ventures. The funding will be used to expand research and development, including developing a digital therapeutic and enhancing go-to-market capabilities.

BrainCheck's digital platform allows physicians to better assess cognitive function in their patients — whether they are elderly dementia patients or suffering from other cognitive ailments. One in nine adults aged 45 and older report subjective cognitive decline, according to a news release, and one in 14 COVID-19 survivors have neurocognitive disorder.

"We are at the forefront of improving access to cognitive assessment and care," says Yael Katz, co-founder and CEO of BrainCheck, in the release. "With early diagnosis comes treatment and intervention. These funds will allow us to accelerate the adoption of our platform and work with clinicians to help more patients live better and safer lives, decrease caregiver frustration, and save health systems trillions of dollars. I believe that BrainCheck can help cognitive care evolve the way cancer care has since the 1970s, when chemotherapy was one-size-fits-all."

Katz co-founded the company with neuroscientist David Eagleman in January of 2015. Now, doctors at over 400 neurology, primary care and geriatrics practices — such as Cleveland Clinic, MD Anderson, and Johns Hopkins — are already using BrainCheck's 10-to-15-minute test, which is covered by Medicare and by most private insurers, to conduct cognitive testing. The FDA Class II Software as a Medical Device (SaMD), which means that physicians can facilitate in-person or even an remote assessment of their patients' cognitive function.

"BrainCheck is a breakthrough platform that has the potential to transform how we diagnose and treat cognitive impairment," says Michael Smerklo, co-founder and managing director of Next Coast Ventures, in the release. "The combination of technical sophistication and ease of use makes BrainCheck a perfect tool for doctors and health systems everywhere. I'm so impressed by what Dr. Katz and her team have achieved to date and am excited to support the team as they continue to innovate and scale."

Other investors included Nueterra Capital, Tensility Ventures, and True Wealth Ventures, as well as UPMC Enterprises and SelectQuote, which joined on as strategic investors.

"BrainCheck shows promise as a cognitive assessment tool that would allow patients to independently complete the test while allowing physicians to spend more time reviewing the results and planning care with patients," says Dr. Adele Towers, director of risk adjustment at UPMC Enterprises and a geriatric medicine specialist at UPMC, in the release.

BrainCheck closed its $8 million series A round in October of 2019, and the company moved into its new office in Upper Kirby following the raise in early 2020. The startup also has an office in Austin.

Backed by an Austin venture group, Navegate has opened a Houston outpost. Courtesy of Navegate

Digital supply chain tech company expands to Houston

New to Hou

A growing software company backed by Austin-based Next Coast Ventures has set its eyes on a new office in Houston.

Navegate, a digital supply chain technology and services for the middle market with headquarters in Minneapolis and offices in Chicago, Los Angeles, and Shanghai, announced its new offices in Houston and Kansas City as well as a the beta version of a new software platform. The company now has 100 employees across its six offices.

"At Navegate we have a concierge-level commitment to fulfilling our clients' needs," says Nathan Dey, CEO of Navegate, in a news release. "By establishing Kansas City and Houston offices, we're expanding our footprint to have physical locations in two critical freight hubs. These locations will provide further leverage for both existing and future Navegate clients in their efforts to build best-in-class supply chains."

James Blodgett will lead the Houston office as the key accounts manager. He has more than 35 years of experience in project cargo, according to the release, and notes how important Houston is as a market considering its connection to the port.

"As a hub for cargo and oversized shipments, I'm excited to leverage our new location to strengthen customer relationships as well as grow Navegate's base for project cargo," says Blodgett in the release.

The company has financial support in Texas already. Next Coast Ventures originally got involved with the company last October when Chicago-based Saltspring Capital led Navegate's financing round. Dey, who was previously managing partner at Saltspring Capital, became CEO and chairman of Navegate as part of the recapitalization.

"Nathan has only been CEO at Navegate for less than a year and he has already done an incredible job of reinvigorating the company's mission to be the industry leader in logistics, strategically growing their global presence and incorporating customer feedback into their platform," says Michael Smerklo, co-founder and managing director of Next Coast Ventures. "Navegate's newly-designed software and commitment to having their experts on the ground in these transportation hubs show their unwavering dedication to their customers — the exact type of hands-on, innovative approach to customer service and product iteration that we strive to invest in."

The company announced that Operations Manager Adam Daugherty will lead the new Kansas City location, and that it will be rolling out a new platform, called Navegate Emerald™. The new user interface is complete with intelligent new shipment tracking and management tools that work with supply chain collaboration. Navegate Emerald has four new applications that allows customization for customers to build their own solutions depending on their needs.

"As we celebrate our 50th year in business, Navegate Emerald has ushered in a renaissance of our technology and our business as a whole," says Dey in the release. "We're thrilled to be able to help add value to our more than 600 clients' processes and transform how they do business through the utilization of these digitally-enabled supply chain tools. The breakthrough business benefits they provide will allow for reduced supply chain costs, better working capital management, improved understanding of capital at risk and more seamless communication with all supply chain constituents.

Three non-Houston investors discussed the strengths and weaknesses of Houston's innovation ecosystem. Getty Images

3 observations about Houston's innovation ecosystem from out-of-town venture capitalists

Zooming out

You'll go cross-eyed looking at the same puzzle for too long, and sometimes it's better to take a step back and introduce some fresh perspectives and ideas from someone not so connected to the matter at hand.

At the second annual HX Capital Summit hosted by Houston Exponential at Rice University, HX gathered three out-of-town venture capital experts to discuss Houston's innovation ecosystem with Sandy Wallis, managing director at the HX Venture Fund. The fund-of-funds focuses on connecting non-local investors to Houston in order to bring new venture opportunities to town. On the panel, the experts discussed their observations about the Bayou City, which can be summed up as follows.

Community engagement and corporate interest are good signs for Houston 

Right off the bat, the panelists agreed that its much more encouraging visiting Houston nowadays than it was in the recent past. Clint Korver, managing director at San Francisco-based Ulu Ventures, has only recently played witness to the city, thanks to his firm's work with HX and the fund of funds.

"I'm just getting to know the Houston community," Korver says. "I'm really intrigued by how much community support there is."

Korver says that, not unlike Houston startups, Bay Area companies find it a challenge getting a foot in the door at major corporations. However, he's observed that Houston-based corporates want a seat at the table of Houston innovation.

"All the corporate attention that's being integrated here is super intriguing," Korver says. "That's our startups' hardest problems."

The other panelists, who are much closer to Houston, echoed Kover's interest in the role corporations play. Venu Shamapant, founding partner at Austin-based LiveOak Venture Partners, and Thomas Ball, founder and managing director at Austin-based Next Coast Ventures, have witnessed Houston evolve into what it is today over the past decade or so.

"We've both been coming to Houston over the past 20 years and been investing in startups, and it's been a dramatically different scene even in just the past five years," Shamapant says.

Houston's ecosystem is going to take time

While the panelists remarked on the evolution the city has and the support that large corporations seem to be willing to provide, Houston has other assets that's setting it up for success. The panelists mention a solid pool for talent, impressive educational institutions, and more.

"When I look at Houston, I think it has every ingredient for success, which is why I want to spend time here," Ball says.

Sure, as Ball says, Houston has the ingredients, but what it now needs is the time to cook.

"To me, it's more of just time that it's going to take. We can't bake this Houston cake by turning the thermostat up to 900 degrees in an hour. It's going to take three hours at 300," Ball says, adding that he doesn't know very much about baking. "It will take time. This won't be an overnight success. We're here for the long haul."

Houston has some challenges yet to overcome 

Wrapping up the panel, an audience member asked about the changes Houston still needs to make to really get to the point it needs to be at.

For Korver, the answer was pretty simple. Houston needs a big exit.

"There's this incredible amount of momentum that comes along with a successful company that takes a hold of everyone — the rising tide floats all boats thing," Korver says.

For Ball, particularly comparing Houston to other major innovation-focused cities, the issue is that Houston is so spread out.

"To me the one thing I struggle with in Houston is what I would call a density problem," Ball says. "I think you need density here and you need to concentrate your resources in certain places in this city."

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Screen-free hiking app developed in Houston earns 'Best of the Best' award

Peak Prize

An AI-powered, screen-free hiking system developed by Varshini Chouthri, a recent industrial design graduate from the University of Houston, has received Red Dot’s “Best of the Best” award, which recognizes the top innovative designs around the world.

Known as NOMAD, the system aims to help users stay in the moment while still utilizing technology. It will go on to compete for the Red Dot Luminary Award, the highest recognition given at the international event.

“NOMAD was truly a passion project, inspired by years of hiking growing up, where the outdoors became a place of peace, challenge, and reflection,” Chouthri said in a news release.

“I wanted to design something supporting those kinds of experiences by helping hikers feel more grounded and confident while staying present in nature. It was a way to give back to the moments that made me fall in love with the outdoors in the first place.”

The app “reimagines” outdoor exploration by removing the dependence on screens by using adaptive AI, contextual sensing, and an optional, wearable companion device. It employs a circular learning model that enables hikers to receive real-time guidance, safety alerts, personalized trip planning, hands-free navigation and more through a natural interface, according to UH.

NOMAD was developed at the Hines College of Architecture and Design’s PXD LAB. In 2023, Lunet, developed by David Edquilang at Hines College, received the “Best of the Best” recognition and went on to win the Red Dot Luminary Award.

The PXD LAB offers a platform to expand concepts into system-level designs that address real-world challenges, according to UH.

“Varshini’s work on NOMAD exemplifies the future-focused, systems-driven thinking we promote in the Advanced UX Design curriculum,” Min Kang, director of PXD LAB, added in the release. “NOMAD goes beyond being just a product; it reimagines how technology can enhance outdoor exploration without disrupting the experience.”

In addition to the Red Dot honors, NOMAD has already earned distinction from the FIT Sport Design Awards and was a finalist for the International Design Excellence Awards (IDEA) presented by the Industrial Designers Society of America.

NASA signs on latest tenant for new Exploration Park campus, now underway

space hub

Exploration Park, the 240-acre research and commercial institute at NASA's Johnson Space Center, is ready for launch.

Facilities at the property have broken ground, according to a recent episode of NASA's Houston We Have a Podcast, with a completion date targeted for Q4 2026.

The research park has also added Houston-based KBR to its list of tenants. According to a news release from the Greater Houston Partnership, the human spaceflight and aerospace services company will operate a 45,000-square-foot food innovation lab at Exploration Park. KBR will use the facility to focus on customized food systems, packaging and nutrition for the low Earth orbit economy.

“Exploration Park is designed for companies in the space ecosystem, such as KBR, to develop, produce, and deploy innovative new technologies that support space exploration and commerce,” Simon Shewmaker, head of development at ACMI Properties, the developer behind Exploration Park, said in the GHP release. “This project is moving expeditiously, and we’re thrilled to sign such an innovative partner in KBR, reflecting our shared commitment to building the essential infrastructure of tomorrow for the next generation of space innovators and explorers.”

NASA introduced the concept of a collaborative hub for academic, commercial and international partners focused on spaceflight in 2023. It signed leases with the American Center for Manufacturing and Innovation and the Texas A&M University System for the previously unused space at JSC last year.

“For more than 60 years, NASA Johnson has been the hub of human space exploration,” Vanessa Wyche, NASA Johnson Space Center Director, said in a statement at the time. “This Space Systems Campus will be a significant component within our objectives for a robust and durable space economy that will benefit not only the nation’s efforts to explore the Moon, Mars and the asteroids, but all of humanity as the benefits of space exploration research roll home to Earth.”

Texas A&M is developing the $200 million Texas A&M Space Institute, funded by the Texas Space Commission, at the center of the park. The facility broke ground last year and will focus on academic, government and commercial collaboration, as well as workforce training programs. ACMI is developing the facilities at Exploration Park.

Once completed, Exploration Park is expected to feature at least 20 build-to-suit facilities over at least 1.5 million square feet. It will offer research and development space, laboratories, clean rooms, office space and light manufacturing capabilities for the aerospace, robotics, life support systems, advanced manufacturing and artificial intelligence industries.

According to the GHP, Griffin Partners has also been selected to serve as the co-developer of Exploration Park. Gensler is leading the design and Walter P Moore is overseeing civil engineering.

Houston cleantech co. plans first-of-its-kind sustainable aviation fuel facility

coming soon

Houston-based Syzygy Plasmonics announced plans to develop what it calls the world's first electrified facility to convert biogas into sustainable aviation fuel (SAF).

The facility, known as NovaSAF 1, will be located in Durazno, Uruguay. It is expected to produce over 350,000 gallons of SAF annually, which would be considered “a breakthrough in cost-effective, scalable clean fuel,” according to the company.

"This is more than just a SAF plant; it's a new model for biogas economics," Trevor Best, CEO of Syzygy Plasmonics, said in a news release. "We're unlocking a global asset class of underutilized biogas sites and turning them into high-value clean fuel hubs without pipelines, costly gas separation, or subsidy dependence.”

The project is backed by long-term feedstock and site agreements with one of Uruguay's largest dairy and agri-energy operations, Estancias del Lago, while the permitting and equipment sourcing are ongoing alongside front-end engineering work led by Kent.

Syzygy says the project will result in a 50 percent higher SAF yield than conventional thermal biogas reforming pathways and will utilize both methane and CO2 naturally found in biogas as feedstocks, eliminating the need for expensive CO2 separation technologies and infrastructure. Additionally, the modular facility will be designed for easy replication in biogas-rich regions.

The new facility is expected to begin commercial operations in Q1 2027 and produce SAF with at least an 80 percent reduction in carbon intensity compared to Jet A fuel. The company says that once fully commercialized the facility will produce SAF at Jet-A fuel cost parity.

“We believe NovaSAF represents one of the few viable pathways to producing SAF at jet parity and successfully decarbonizing air travel,” Best added in the release.

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This article originally ran on EnergyCapital.

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