7 Houston entrepreneurs pitch their companies to famed Silicon Valley investor

#HTXTechRodeo

Investor Jason Calacanis lent his time and expertise to seven Houston startups. Photo via twitter.com/houex

Imagine having to pitch your company to a famed investor who has made investments in over 200 companies — seven of which achieved unicorn status. Now, imagine having to do that onstage in front of an audience — in person and virtually viewing.

That was seven Houston entrepreneurs' morning on March 4 during Houston Tech Rodeo. Jason Calacanis heard from the founders and gave his feedback on their business models, as well as general pitch advice. While some of his notes were in the realm of constructive criticism, he stayed pretty positive — for the most part.

"If you're a founder, you're signing up for a 70 percent failure. It's basically a suicide mission, except you don't actually die. You just hit the reset button and go again," Calacanis says to the crowd.

Calacanis also has a great deal of optimism for the region itself, noting on the potential of the innovation ecosystem, and, as an aside, the local basketball team.

"There's no reason Houston as big as a center as Austin has become," Calacanis says. "All it takes is for some of the rich people to say, 'instead of investing in some bond or Wall Street somewhere where they don't know what's going on and to take it and pay it forward with an entrepreneur."

Here are the seven Houston companies that pitched fir Calacanis, as well as some of his feedback.

Topper Luciani, CEO and founder of Goodfair

goodfair

Houston-based Goodfair sells bundles of used clothing at a low cost. Photo courtesy of Goodfair

Kicking things off was Topper Luciani, CEO and founder of Goodfair, CEO and founder of Goodfair. On a mission to counteract the pollution of fast fashion, the company, which launched in 2018, sells second-hand clothing using "mystery shopping," shipping all of their clothing in variety packs chosen according to a customer's size and taste. This eliminates the cost of photographing, measuring, lowering the price for both the customer and the company.

"Climate chance is Gen Z's crisis, and they are our customers," Luciani tells Calacanis and the crowd.

Goodfair expects to do $5 million in revenue this year, as well as raise its seed round. Calacanis give Luciani advice to make sure he answers the question of, in a world with recycled clothing stores and a growing need for environmentalism, why now?

Katharine Forth, CEO and founder of 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, CEO and founder of Zibrio, has found a new way to track balance. With her company, people can have the everyday ability to figure out how balanced they are 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.

But Forth's business is split between two products — a consumer-focused scale and a scale made for medical professionals to use. Calacanis says it's one scale too many and to focus on just one for now. He compared the company to if Uber tried to launch its upgrades its made over the years all at once.

"You're coming out of the gate with UberPool and UberBlack. Big mistake," he says.

Amy Gross, founder and CEO, VineSleuth Inc

vinesleuth

Houston-based VineSleuth created a custom algorithm to match you with new wines based on wines you've had in the past. Courtesy of VineSleuth

Picking wine out isn't rocket science, and yet, "confusion is costing the industry billions," says Amy Gross, founder and CEO, VineSleuth Inc. The company's custom algorithm is backed by research from sensory scientists at Cornell University, and relies on both data collection and machine learning to determine specific wines that will match an individual customer's tastes.

The B2B approach has launched in a few restaurants around town and, as of this week, the Houston Livestock Show and Rodeo's Wine Garden. But how Gross is currently approaching business isn't exactly attractive to investors.

"The business comes across as a small niche business, which is going to cause investors to run," Calacanis explains.

His advice is to use the technology to prove to restaurants and bars that they are overpaying for their wines.

Panos Moutafis, CEO and co-founder, Zenus Biometrics

Zenus Biometrics uses its facial recognition software to provide seamless check in at events around the world. Courtesy of Zenus Biometrics

What started as a convenient way to check into events is now a facial recognition solution to event data. Zenus Biometrics can scan faces of event attendees for security — but also for data analytics, says Panos Moutafis, CEO and co-founder.

While the tech company has already evolved, Calacanis saw even more potential for the software, comparing it to the iPhone. The device is used more for a camera and app usage than an actual phone.

"As technologists we build something," Calacanis says. "Then we find out what people actually use it for."

While based in Houston now, Moutafis mentions that he will soon be relocated to Austin.

Safir Ali, co-founder and CEO of Hamper

Houston-based Hamper, which makes dry cleaning convenient, won the Rockets and BBVA Compass' LaunchPad competition. Courtesy of Hamper

Safir Ali grew up in his parents' dry cleaning store, and he observed that the biggest inconvenience for customers was them trying to make it to the cleaners to get their clothes before it closed. His company, Hamper, aims to provide a solution as "the Red Box of dry cleaning." Customers can deposit their dry cleaning in a kiosk in their office building, and it will be delivered to pick-up locations.

Calacanis liked that Ali has a background in the dry cleaning business."It takes somebody who is so obsessed that they aren't going to give up," he says, adding that he liked Ali's story.

"When you have something new – something that's novel, you could get a lot of attention," Calacanis says. "For things that are not novel, you have to use performance. You have to use the metrics."

Dyan Gibbens, founder and CEO, Trumbull Unmanned

Trumbull Unmanned equips energy companies with data-retrieving drones. Photo via trumbullunmanned.com

Trumbull Unmanned has created an enterprise software company to analyze data collected from drones flying over oil and gas sites. The technology allows workers to maintain a safe distance and still collect the information needed. Dyan Gibbens, founder and CEO, has secured some impressive contracts with companies, including Exxon.

Calacanis asked Gibbens about those contracts and how much they were usually for, but didn't like her first answer.

"Every answer we get as investors is, 'It depends,'" Calacanis says, explaining a "pro tip" for entrepreneurs. " You want to lead with some examples and get some ground truth. Sell us that ground truth."

Calacanis' next piece of advice for Gibbens was to add a second set of data collecting technology, such as a moisture sensor or heat sensor, creating two sets of data for clients.

"Being agnostic to how you solve the problem is [a big opportunity]. Also, that becomes an upsell," Calacanis says.

Ksenia Yudina, founder and CEO, UNest

UNest is a tax-free way to save money for your children's education. Photo via unestapp.com

UNest is using user-friendly app technology to set up college funds for millennial parents. And Founder Ksenia Yudina has gotten some great reception, which has caused financial advisers to take note and even reach out. But Calacanis says they are, in a way, the enemy for her product and she needs to not spread out her resources trying to partner with financial advisers.

"Part of being a successful founder is knowing what you need more and what to stay focused on," Calacanis says. "If you remain a product that people like, everyone is going to drown you in opportunities. And as CEO you have to know when to say no."
Zenus Biometrics uses its facial recognition software to provide seamless check in at events around the world. Courtesy of Zenus Biometrics

Growing Houston tech company using facial recognition for event security

Face first

Long, inefficient check-in lines at events or conferences could be a thing of the past with the technology from a Houston company.

Zenus Biometrics, is changing the game of event registration and security through facial recognition.

"Over the last 12 months, we've done more than 50 events all over the world," says co-founder Panos Moutafis. "And for the most part, what we're hearing from these planners is that this is a very new technology and they want to be at the forefront of it."

The software system overlays on already-existing ticketing and registration platforms for event hosting companies. During the registration process, attendees are prompted to either take a selfie or upload an existing headshot. Those who are leery of the process or simply don't want to participate can easily opt out.

Zenus' programming can take a group photo, select all the faces in it and prompt the attendee to select himself. It will also advise whether an image is too blurry for use and suggest uploading another image instead. Once participants arrive at the conference, they approach a camera at check-in. The software recognizes their faces and pops up a menu that asks them to confirm their identity. The process takes seconds.

"This really allows for controlled access," said Moutafis. "Some people might look to game the system – they might register for themselves and then hand off their conference badge to someone who didn't pay to attend. Zenus allows companies to have more security over attendees."

He said the system can also work to limit access. If a company wants to set up a VIP or secure space, they can upload images of those they wish to allow beyond a certain point into Zenus' platform and anyone who doesn't match the facial recognition will be turned away.

The pioneering company operates from a headquarters in Houston's EaDo, and has clients around the globe. Back in November, it took home the prestigious Tech Award at IBTM World in Barcelona, one of the world's leading conferences for the meetings and event industries.

Moutafis said that in addition to being a leading-edge service provider, Zenus balances privacy with innovation. The company doesn't record the emails, contact information or credit cards for conference attendees using the facial recognition platform — only the uploaded images. And those are deleted days after the conference ends. The opt-in feature means that anyone who might feel skittish about the technology doesn't need to use it, and traditional check-in methods will be available onsite for them.

Over the next year, Zenus is perfecting and rolling out a new high-resolution camera that can be mounted in event rooms that will count the faces of those in the meeting or seminar. It's designed to provide a layer of analytics for event planners, capturing how many people attended the session. It can also record their expressions and provide data that can be used to determined how well the session was liked by the audience.

"We just added two more people to our team, so we have a staff of about seven now," he said. "We also work with a team of consultants. Here in Houston, our headquarters has a vibrant, cool feel to it. We're growing and it's exciting."

Born in Greece, Moutafis came to Houston in 2011 to work on his Ph.D. in computer science at the University of Houston. Armed with a B.A. in statistics, he was seeking a way to combine his analytical background with developing algorithms in artificial intelligence. It turned out that the lab he was attached to at UH was focused on facial recognition software.

"That was a different kind of problem to me, and I like a challenge," he says. "And I was attracted to the idea of using facial recognition as a security measure. No matter where you go, whether it's the bank or using a credit card for a purchase in some places, you have to verify your ID. Facial recognition is one of the most frictionless ways to do this."

In 2015, his last year of doctoral studies, he received an National Science Foundation grant that gave him funding to build a team and research what would become Zenus. He also received mentorship and advising about whether he had a viable idea and how to bring it to the marketplace. The following year, he massaged his concept, changed its logo and name, and Zenus was born.
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Ventilator designed by Rice University team gets FDA approval

in the bag

A ventilator that was designed by a team at Rice University has received Emergency Use Authorization from the U.S. Food and Drug Administration amid the COVID-19 pandemic.

The ApolloBVM was worked on March by students at Rice's Brown School of Engineering's Oshman Engineering Design Kitchen, or OEDK. The open-source plans were shared online so that those in need could have access to the life-saving technology. Since its upload, the ApolloBVM design has been downloaded by almost 3,000 registered participants in 115 countries.

"The COVID-19 pandemic pushed staff, students and clinical partners to complete a novel design for the ApolloBVM in the weeks following the initial local cases," says Maria Oden, a teaching professor of bioengineering at Rice and director of the OEDK, in the press release. "We are thrilled that the device has received FDA Emergency Use Authorization."

While development began in 2018 with a Houston emergency physician, Rohith Malya, Houston manufacturer Stewart & Stevenson Healthcare Technologies LLC, a subsidiary of Kirby Corporation that licensed ApolloBVM in April, has worked with the team to further manufacture the device into what it is today.

An enhanced version of the bag valve mask-based ventilator designed by Rice University engineers has won federal approval as an emergency resuscitator for use during the COVID-19 pandemic. Photo courtesy of Stewart & Stevenson

The Rice team worked out of OEDK throughout the spring and Stewart & Stevenson joined to support the effort along with manufacturing plants in Oklahoma City and Houston.

"The FDA authorization represents an important milestone achievement for the Apollo ABVM program," says Joe Reniers, president of Kirby Distribution and Services, in the release. "We can now commence manufacturing and distribution of this low-cost device to the front lines, providing health care professionals with a sturdy and portable ventilation device for patients during the COVID-19 pandemic."

Reniers continues, "It is a testimony to the flexibility of our people and our manufacturing facilities that we are able to readily utilize operations to support COVID-19 related need."

The device's name was selected as a tribute to Rice's history with NASA and President John F. Kennedy's now-famous speech kicking off the nation's efforts to go to the moon. It's meaningful to Matthew Wettergreen, one of the members of the design team.

"When a crisis hits, we use our skills to contribute solutions," Wettergreen previously told CultureMap. "If you can help, you should, and I'm proud that we're responding to the call."

Nonprofit arts event in Houston pivots to virtual experience

the show must go on

As summer rolls on and Houston adapts to the new normal of the COVID-19 pandemic, myriad arts organizations are pivoting, morphing their in-person events into virtual experiences.

One such event is the 49-year-old, annual Bayou City Arts Festival, which has just announced that it has reimagined its outdoor event originally scheduled for October 10-11 this year. Due to the cancelation of the event because of coronavirus concerns, all 2020 festival tickets will be honored at Bayou City Art Festival events in 2021, according to organizers.

In place of an in-person festival in 2020, a Bayou City Art Virtual Experience will take place the week of October 5-11. The event will feature an art auction, virtual performances, art projects for kids with Bayou City Art Festival nonprofit partners, creative activities with Bayou City Art Festival sponsors and more, according to a press release.

"The decision to convert our Bayou City Art Festival Downtown to a virtual experience was difficult, but the health and safety of our community and our festival family is our top priority," says Kelly Batterson, executive director of the Art Colony Association.

Organizers have also announced that a fundraising campaign dubbed Save Our Art - One Passion. One Purpose. One Community, in partnership with the City of Houston to support the arts and the festival's local nonprofit partners.

Interested parties can donate by sending a text SaveOurArt to 243725, donating via our website and Facebook page, or by participating in the many upcoming fundraising events.

Festival fans can stay up to date via Facebook, Twitter, and Instagram.

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This article originally appeared on CultureMap.

5 most popular innovation stories in Houston this week

what's trending

Editor's note: From a new energy tech incubator and innovators to know to the golden age of software startups and virtual events not to miss, check out the top stories in Houston innovation from this week.

3 Houston innovators to know this week

This week's Houston innovators to know includes Sola Lawal of Nuro, Jose Diaz-Gomez of CHI St. Luke's Health, and Kimberly Baker of UT School of Public Health. Courtesy photos

A key attribute of innovators and inventors is the ability to look forward — to see the need for their innovation and the difference it will make. Each of this week's innovators to know have that skill, whether it's predicting the rise of autonomous vehicles or seeing the future of health care. Continue reading.

Houston oil and gas giant premieres new startup incubator and names first participant

Houston-based oil field service company, Halliburton, has introduced its new startup incubator. Getty Images

Not intending to be left out of the energy transition, a Houston-based, multinational oil and gas services company has announced its new incubator for startups to advance cleaner, affordable energy.

Halliburton Company has introduced Halliburton Labs this week and named Houston-based Nanotech Inc., which uses nanotechnology for thermal insulation and fireproofing, as its first participant. Nanotech — along with future entrepreneurs and academics — will have access to the Halliburton facilities, the company's experts, and its network.

"Halliburton Labs reflects our commitment to the science and continued evolution of sustainable, reliable energy," says Jeff Miller, chairman, president, and CEO at Halliburton, in a news release. "We firmly believe that oil and gas will remain an affordable and reliable energy resource for decades to come. At the same time, we recognize the importance of developing alternative energy sources. We are excited to help advance solutions that have the potential for a long term, meaningful impact and that align well with our sustainability objectives." Continue reading.

10+ can't-miss virtual business and innovation events in Houston for August

Log on to one of these informative online events happening throughout the rest of the month. Getty Images

Another month, another roundup of events Houston innovators should attend — and yes, they are still all virtual. From Houston Exponential launching its new virtual database and networking platform to informative workshops and panels, here's what you need to attend this month. Continue reading.

5 innovation-focused takeaways from the Greater Houston Partnership's annual report

The Greater Houston Partnership has released its 2020 Houston Facts — here's what you need to know. Getty Images

In an annual economic report from the Greater Houston Partnership, researchers and data scientists outlined the city's economy by the numbers, and Houston's industries such as technology, health care, energy, and more were all represented. The 2020 Houston Facts was released in an virtual event hosted by GHP and its team of data specialists. Here's what you need to know from the event and the report. Continue reading.

Houston investor: Is this the golden age for B2B software?

This Houston venture capital leader is looking at how 2020 — for all its disappointments — might be a great year for B2B software-as-a-service companies. Getty Images

B2B software as a service, or SaaS, founders entered 2020 riding a wave of the longest economic expansion in United States history. Valuations increased to new highs, funding rounds continued getting larger at each stage, and forecasts went up and to the right fast. But then, March hit.

Quickly and seemingly out of nowhere, headlines became dominated by apocalyptic predictions of death, record levels of unemployment, shocking economic forecasts of GDP contraction, historic mass layoffs and furloughs, and unprecedented multi-trillion dollar economic stimulus packages. For founders every instinct began screaming to cut costs and hunker down.

But should B2B SaaS founders cut their organizations right now? Through analyzing a few key events and looking to the evidence in the market today, founders can develop a strategy for growing during this crisis. Not only is growth cheaper for most B2B SaaS against the backdrop of economic meltdown, but with the majority following a hunker-down instinct, a growing B2B SaaS firm will compare very favorably against a landscape of stale and stagnant competitors. Continue reading.

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