Larry Lawson joined InnovationMap for a Q&A about his startup's recent exit, his role on the boards of five med device companies, his investment activity, and more. Photo courtesy of Larry Lawson

Earlier this year, Houston-based serial entrepreneur Larry Lawson celebrated the exit of his medical device company, Preventice Solutions, which he sold to Boston ScientificBoston Scientific in a $1.4 billion deal.

Nowadays, Lawson is laser focused on investing in the Houston innovation ecosystem, particularly in medical device, as well as working on Proxima Clinical Research, a contract research organization in the Texas Medical Center he co-founded with Kevin Coker.

Lawson joined InnovationMap for a Q&A about the exit, his role on the boards of five med device companies, and his investment activity. He also shares how he sees the impact of COVID-19 and where Houston's burgeoning innovation ecosystem is headed.

InnovationMap: Earlier this year you saw an exit for your company Preventice Solutions, a company focused on the development of mobile health solutions and remote monitoring, which was sold to Boston Scientific in a $1.4 billion deal. What did this deal mean to both you and the company?

Larry Lawson: It validated what I started back in 2004. I had an idea, And I moved forward on my idea — in the beginning completely financed that idea myself. I tried to raise funds, and it was very difficult here in Houston back in 2004 to do that. I put my money, you might say, where my mouth was and I started the company and funded it and built it to a point to where we attracted some venture capital from one of the world's largest VC groups out of California called Sequoia Capital. That allowed me to really increase our exposure and our footprint nationally. And it just grew and grew and eventually Boston scientific got interested in the company, along with Merck, a pharmaceutical company, and they bought smaller pieces of the company.

Then at the end of the year of 2020, Boston Scientific made a play to acquire the company completely. Frankly, it have been better. I would have never dreamt that my original company would be worth that much and sell for that much. So it was very nice for not only me, but for many other people that were employed by Preventice, because as a founder of the company, I knew how important it was to share equity with the people that really make the company run and make it run well.

IM: I noticed that you’re on the board of several Houston health tech startups — most of which I’ve covered on InnovationMap. What do you look for in a company before joining the board and what role do you play for the companies’ growth?

LL: First of all, I look at the people who are in the company — from top level executive level all the way down, even including the existing board members of the company. I only invest in medical device companies. That's what I know, and that's why I've spent over 50 years in, and I feel like I know it very well. I do not venture far off of that line or that path at all.

I look for a strong operating group. I look for strong leadership — and if I can bring even stronger leadership and have them get from point A to point B, I like to get involved. Given my medical as the chairman of the company.

IM: You started your investment firm in 2018 — what inspired you to create LAWALA Capital and what do you look for in potential portfolio companies?

LL: I really limit my investments to the medical device segment of health care. LAWALA is just me — it's the first two letters of all three of my names: Larry Wayne Lawson. How I got into investing and starting companies is I see opportunity, and I see voids in the industry.

IM: Speaking of, you founded Proxima Clinical Research in 2017, which has a very hands-on approach to accelerating health tech innovation. Why did you decide to start that up?

LL: I saw a void in the clinical research industry, specifically at the medical center here, the largest medical center on the face of the earth. And it was doing all of this attracting all of these companies, all of these health science companies into Houston, and they were building and budding their companies, but there was no centralized clinical research company to be there for them.

I thought, "my gosh, somebody ought to do this." Well, I'm a doer. So, I went to the powers to be at the medical center and got their approval to be the founder of a company, called Proxima Clinical Research, and the key is putting it right there in the heart of the largest medical center in the world.

It's been really, really good for these companies who are coming into Houston to take advantage of the life science growth that's taking place here in Houston.

IM: How did COVID-19 affect the work that you do?

LL: COVID really did not affect our business that greatly. It affected the investments that I was doing. I pulled back and cut my, expenses and that, because I just needed to see, you know, how the COVID thing would shake out. I'm watching my investments a lot closer today, and think that it's affected the startup companies, more because to be a startup company, you have to go out and find investors to invest in your company. And I think that process has been slowed, I won't say considerably, but I think it's been slowed quite a bit over the past year and a half.

It just so happens that in the industry that I've been in, which is patient monitoring — cardiac arrhythmia monitoring — COVID has heightened patient monitoring more than anything else. What we learned from COVID is that we've got to be more in tune ourselves than ever before in monitoring all aspects of ourselves. What has come out of this COVID pandemic is telemedicine, which has struggled for years, now all of a sudden telemedicine is on the tip of everyone's tongue.

And I think that's one reason why you see the big companies — the multinational, multi-billion dollar companies — getting more in patient monitoring.

IM: Houston is home to the largest medical center in the world — but it’s often times not listed as a top city for medical innovation. Is that changing? And if so, how?

LL: When the medical center purchased the old Nabisco building and turned that into a technology center and a startup center, it changed the whole complexion of the device and medical startup community here in Houston. We've had a lot of former development here through MD Anderson in oncology, but we'd never had very much in devices. Now, we have companies coming from Europe and Asia coming to Houston to promote their technology and the devices that they have built.

The Rice Business Plan Competition is the largest in the United States. We fund more startup companies out of RBPC. I'm talking Harvard, MIT, Stanford, Berkeley — Houston is number one. And that has a lot to do with what has happened in the medical center over the past seven or eight years.

IM: What more do we need, now that we've come this far to really push us into that innovative healthcare city status?

LL: Well, I think what we need is for investors investing in healthcare and not oil and dirt. For years and years, the whole economy was driven by oil and gas and real estate. And I can remember starting my first company, the early eighties, I went to banks to borrow money to start my first company, and all I wanted was $200,000. Well, that was still a lot of money back then, but they would literally fall asleep on me because they couldn't understand and didn't understand exactly what I wanted to do. And so I wound up having to fund myself use my friends and family as investors, but that's changed quite a bit. The health science community here in Houston is now known all over the world. It's gonna just continue to grow and develop, and I hope to be a part of continue to be a part of it.

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This conversation has been edited for brevity and clarity.

Here's what Houston startups raised the most money this year, according to InnovationMap. Photo via Getty Images

Here are the top 5 Houston startup venture capital deals in 2020

2020 in review

Editor's note: As 2020 comes to a close, InnovationMap is looking back at the year's top stories in Houston innovation. When it came to the money raised in Houston, these five startups raised the most, according to reporting done by InnovationMap.


Preventice Solutions' $137M series B

Preventice Solutions reportedly raised $137 million to grow its medical device business. Photo via Getty Images

Houston-based Preventice Solutions, a medical device company, raised a $137 million series B in July. The round was led by Palo Alto-based Vivo Capital along with support from existing investors, including Merck Global Health Innovation Fund, Boston Scientific, and the Samsung Catalyst Fund.

The funds were raised in order "to accelerate investment in salesforce expansion, technology and product innovation and further development of clinical evidence supporting its flagship solution," according to the news release.

"We are pleased to have Vivo Capital and Novo Holdings as new investors, and with this funding we are poised to further accelerate our growth," says Jon P. Otterstatter, CEO of Preventice Solutions, in a press release. "We are setting a new standard for monitoring of cardiac arrythmia patients. Our robust and growing success with physicians and payers accentuates the compelling value proposition of using novel technology to improve diagnosis, while also increasing the efficiency of healthcare delivery."

HighRadius's $125M series B

Houston-based HighRadius has reported reaching unicorn status following a $125 million raise. Photo via highradius.com

High Radius started out 2020 strong, reportedly reaching unicorn status with the closing of a $125 million series B round.

The Houston startup, an artificial intelligence-powered fintech software company, announced the round was led by ICONIQ Capital, with participation from existing investors Susquehanna Growth Equity and Citi Ventures, according to a news release from the company.

"Today marks an important milestone for HighRadius and we're thrilled to have ICONIQ join us in our vision to modernize the Order to Cash space," says Sashi Narahari, founder and CEO of HighRadius, in a news release. "ICONIQ combines patient capital with a long-term vision of investing in category-defining businesses, and the firm has worked with some of the world's most successful tech entrepreneurs. We are building HighRadius into a self-sustaining, long-term category leader, and ICONIQ is a great partner for us in this journey."

The company, which offices in West Houston, was founded in 2006 founded in 2006 and employs more than 1,000 people in North America, Europe, and Asia. In November, HighRadius opened an office in Amsterdam. According to the news release, the company will use the funds to further expand its global footprint.

GoExpedi's $25M series C

Tim Neal, CEO of Houston-based GoExpedi, shares how his company plans to scale following its recent series C closing. Photo by Colt Melrose for GoExpedi

In September, GoExpedi announced it had raised $25 million in series C funding led by San Francisco-based Top Tier Capital Partners with participation from San Jose Pension Fund, Houston-based CSL Ventures, San Francisco-based Crosslink Capital and Hack VC, New York-based Bowery Capital, and more. Last year, GoExpedi raised $25 million in a series B round — also led by Top Tier Capital — and $8 million in a series A just a few months before.

"This new injection of capital will help us advance our digital platform for MRO and supply chain systems and accelerate the rollout of our new robotics operations, as well as deepen our technology team to help us meet new, insatiable demand," says Tim Neal, CEO of GoExpedi, in a news release. "Leveraging our intuitive, customer-focused, and interactive intelligence platform is a no-brainer for companies seeking to modernize their respective supply chains.

Founded in 2017, the e-commerce, supply chain, and analytics company, is using the funds to expand beyond energy into adjacent markets and further develop its machine learning software, robotics, and advanced analytics technologies. According to the release, the company also plans to hire.

Liongard's $17M series B

Houston-based SaaS company, Liongard, has closed its recent fundraising round led by one of HX Venture Fund's portfolio funds. Getty Images

Houston-based, fast-growing software-as-a-service company, Liongard, closed its $17 million round in May round in May. It was led by Updata Partners with contribution by TDF Ventures, Integr8d Capital, and private investors. With customers in 20 countries, Liongard saw triple-digit customer growth and doubled its staff over the past 18 months, according to a news release.

Liongard's CEO, Joe Alapat, who co-founded the company with COO Vincent Tran in 2015, says that the new funds will continue to support its Roar platform — a software product that creates a single dashboard for all data systems and allows automation of managed service providers, or MSPs, for auditing and security within a company's IT.

"Since the launch of Liongard, the platform's adoption and popularity with MSPs has grown rapidly, transforming Liongard into a highly recognized brand in the MSP ecosystem," Alapat says in the release. "This new investment and the continued confidence of our investors will fuel our growth by giving us the means to further advance our solution's capabilities and serve our customers at an even better level."

Liongard's total funding now sits at over $20 million. Last year, the company raised a $4.5 million series A round following a $1.3 million seed round in 2018. TDF Ventures and Integr8d Capital have previously invested in the company.

Lead investor, Updata Partners, is based in Washington D.C. and invests in SaaS, tech-enabled service providers, and digital media and e-commerce. The HX Venture Fund, a fund-of-funds under Houston Exponential, has invested in Updata Partner's recent fund.

Ambyint's $15M series B

Ambyint, which has offices in Calgary and Houston, has secured funding from Houston venture capital firms. Photo courtesy of Ambyint

In February, Ambyint, which has an office in Houston, closed its $15 million series B funding round with support from local investors. Houston-based Cottonwood Venture Partners led the round, and Houston-based Mercury Fund also contributed — as did Ambyint's management team, according to a news release. The money will be used to grow both its Houston and Calgary, Alberta, offices and expand its suite of software solutions for wells and artificial lift systems.

"This funding round is an important milestone for Ambyint, and we're pleased to benefit from unwavering support among our investors to boost Ambyint to its next phase of growth," says Alex Robart, CEO of Ambyint, in the news release. "It is also a proof point for our approach of combining advanced physics and artificial intelligence, deployed on a scalable software infrastructure, to deliver 10 to 20 percent margin gains in a market where meaningful improvements have been hard to achieve."

Ambyint's technology pairs artificial intelligence with advanced physics and subject matter expertise to automate processes on across all well types and artificial lift systems.

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Houston cardiac health startup raises $43 million series B to grow AI-backed platform

money moves

A Houston-based tech company that has a product line of software solutions for cardiac health has raised funding.

Octagos Health, the parent company of Atlas AI — a software platform for cardiac devices like pacemakers, defibrillators, ambulatory monitors and consumer wearables — has announced a $43 million series B raise that will bring their technology to many more hearts.

Morgan Stanley Investment Capital led the investment, which also included funds from Mucker Capital and other continuing strategic investors. The goal of the raise is to supply funds to accelerate Atlas AI’s growth across the United States and to expand into other areas of care, including ambulatory monitors, consumer wearables, and sleep.

"This investment will enable us to accelerate enhancements to our platform, in addition to scaling our commercial team and operations. We are currently the only company that helps cardiology practices migrate their historical data from legacy software providers and fully integrates with any EHR (exertion heart rate) system. We do this while enabling customized reporting supported by patient and practice decision-support analytics," says Eric Olsen, COO of Octagos Health, in a press release.

Octagos Health was founded by a team of healthcare pros including CEO Shanti Bansal, a cardiologist and founder of Houston Heart Rhythm, an atrial fibrillation center. The goal was to find a new way to deal with the massive amount of data that clinicians encounter each day in a way that combines software and the work of human doctors.

According to the Octagos Health website, “Our solution allows clinicians to focus on other ways of delivering meaningful healthcare and more efficiently manage their remotely monitored patients.”

It works thanks to customizable reporting features that allow patients’ healthcare teams to get help while monitoring them, but to do it precisely as they would if they were crunching numbers themselves.

"We are excited to partner with Octagos Health and support their vision of transforming cardiac care," says Melissa Daniels, managing director of Morgan Stanley Expansion Capital. "Octagos Health has demonstrated exceptional growth and innovation in a critical area of healthcare. We believe their platform and vertically integrated software and services significantly improve patient care and streamline cardiac monitoring processes for healthcare providers."

Will Hsu, co-founder and partner of Mucker Capital, agrees. “Octagos Health is poised for scale – industry leading gross margins, a very sticky product that doctors and clinical staff love, and a market ready for disruption with artificial intelligence. This is the new wave for diagnostic care,” he says. And with this raise, it will be available to even more clinicians and patients across the country.

Houston biotech company expands leadership as it commercializes sustainable products

joining the team

Houston-based biotech company Cemvita recently tapped two executives to help commercialize its sustainable fuel made from carbon waste.

Nádia Skorupa Parachin came aboard as vice president of industrial biotechnology, and Phil Garcia was promoted to vice president of commercialization.

Parachin most recently oversaw several projects at Boston-based biotech company Ginkjo Bioworks. She previously co-founded Brazilian biotech startup Integra Bioprocessos.

Parachin will lead the Cemvita team that’s developing technology for production of bio-manufactured oil.

“It’s a fantastic moment, as we’re poised to take our prototyping to the next level, and all under the innovative direction of our co-founder Tara Karimi,” Parachin says in a news release. “We will be bringing something truly remarkable to market and ensuring it’s cost-effective.”

Moji Karimi, co-founder and CEO of Cemvita, says the hiring of Parachin represents “the natural next step” toward commercializing the startup’s carbon-to-oil process.

“Her background prepared her to bring the best out of the scientists at the inflection point of commercialization — really bringing things to life,” says Moji Karimi, Tara’s brother.

Parachin joins Garcia on Cemvita’s executive team.

Before being promoted to vice president of commercialization, Garcia was the startup’s commercial director and business development manager. He has a background in engineering and business development.

Founded in 2017, Cemvita recently announced a breakthrough that enables production of large quantities of oil derived from carbon waste.

In 2023, United Airlines agreed to buy up to one billion gallons of sustainable aviation fuel from Cemvita’s first full-scale plant over the course of 20 years.

Cemvita’s investors include the UAV Sustainable Flight Fund, an investment arm of Chicago-based United; Oxy Low Carbon Ventures, an investment arm of Houston-based energy company Occidental Petroleum; and Japanese equipment and machinery manufacturer Mitsubishi Heavy Industries.

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This article originally ran on EnergyCapital.

3 Houston innovators to know this week

who's who

Editor's note: Every week, I introduce you to a handful of Houston innovators to know recently making headlines with news of innovative technology, investment activity, and more. This week's batch includes a logistics startup founder, a marketing expert, and a solar energy innovator.

Matthew Costello, CEO and co-founder of Voyager Portal

Houston logistics SaaS innovator is making waves with its expanded maritime shipping platform. Photo courtesy of Voyager

For several years now, Matthew Costello has been navigating the maritime shipping industry looking for problems to solve for customers with his company, Voyager Portal.

Initially, that meant designing a software platform to enhance communications and organization of the many massive and intricate global shipments happening every day. Founded in 2018 by Costello and COO Bret Smart, Voyager Portal became a integral tool for the industry that helps users manage the full lifecycle of their voyages — from planning to delivery.

"The software landscape has changed tremendously in the maritime space. Back in 2018, we were one of a small handful of technology startups in this space," Costello, who serves as CEO of Voyager, says on the Houston Innovators Podcast. "Now that's changed. ... There's really a huge wave of innovation happening in maritime right now." Read more.

Arielle Rogg, principal and founder of Rogg Enterprises

Arielle Rogg writes in a guest column for InnovationMap about AI in the workforce. Photo via LinkedIn

Arielle Rogg isn't worried about artificial intelligence coming for her job. In fact, she has three reasons why, and she outlines them in a guest column for InnovationMap.

"The advent of AI pushes us humans to acquire new skills and hone our existing abilities so we can work alongside these evolving technologies in a collaborative fashion. AI augments human capabilities rather than replacing us. I believe it will help our society embrace lifelong learning, creating new industries and jobs that have never existed before," she writes in the piece. Read more.

Nathan Childress, founder of Solar Slice

Solar Slice Founder Nathan Childress says his new venture offers a fulfilling way to encourage and promote solar energy and a greener planet. Photo via LinkedIn

Nuclear engineer and entrepreneur Nathan Childress wants consumers to capture their own ray of sunlight to brighten the prospect of making clean energy a bigger part of the power grid. That's why he founded Solar Slice. The new venture offers a fulfilling way to encourage and promote solar energy and a greener planet.

Although trained in nuclear power plant design, solar power drew his interest as a cheaper and more accessible alternative, and Childress tells InnovationMap that he thinks that the transition to cleaner energy, in Texas especially, needs to step up.

Recent studies show that 80 to 90 percent of the money invested into fighting climate change “aren’t going to things that people actually consider helpful,” Childress says, adding that “they’re more just projects that sound good, that are not actually taking any action." Read more.