CodeLaunch named its winner — and more Houston innovation news. Photo courtesy of Honeycomb

Houston startup founders have been moving and shaking in the local innovation ecosystem — from being recognized for their out-of-this-world innovation to big wins.

In this roundup of Houston startup and innovation news, a Houston company snags a major partnership, an energy tech startup wins big on stage, and more.

The Postage gets a new partner

The Postage platform will be available to AmBank Company's employees, customers, and their families. Photo courtesy of The Postage

A Houston tech platform that streamlines estate and legacy planning has entered into a partnership with AmBank Company — American State Bank, American Investment & Trust, and Perspective Insurance — in Sioux Center, Iowa. The bank will deliver The Postage's services to its employees, customers, and their families.

The Postage unique platform allows users important information organizational tools, as well as state-specific will document creation. The technology also allows users to share meaningful family memories, write future messages, and collaborate with loved ones of their choosing.

"Community is at the core of everything American State Bank does. They exemplify that by supporting their customers through the myriad of choices that arise while navigating their financial lives. The Postage fits right into that, and we are thrilled to share our platform with their employees and customers in their planning and organization efforts," says Emily Cisek, CEO and co-founder of The Postage, in a news release. "We hope to grow awareness of the family-driven digital solution and provide AmBank's customers the opportunity to gain control and safeguard their critical information. We look forward to providing AmBank's customers with the guidance they need to protect their wealth and wisdom now and for generations to come."

The partnership, which rolled out last month, was announced as American State Bank and the family of brands celebrated 50 years of business.

"Our commitment to delivering outstanding service and top-notch products to our customers, colleagues, and community has been unwavering for over half a century," says Joel Westra, AmBank first vice president. "This partnership allows us to extend our digital services while staying true to our core values of connection and community.

"Our team has witnessed the struggles of families coping with losing a loved one, we recognized the need for a service like The Postage," he continues. "Far too often, people are uncertain about the next steps, the whereabouts of important documents, and even their loved one's final wishes. We recognize that to prevent these challenges, families need help navigating difficult conversations and guidance on how to get started with their planning, which The Postage provides."

E360 wins Houston startup competition

E360 and Honeycomb Software share the win at the 2023 Houston CodeLaunch event. Photo by Natalie Harms/InnovationMap

CodeLaunch, a traveling seed-stage accelerator, hosted its second Houston startup pitch competition last week, and a Houston energy efficiency startup emerged victorious.

E360 won the top prize at the event on March 2. The program paired six finalists with consultant development teams to pitch and compete for up to $150,000. The startup's technology is a holistic building solution that monitors both the energy efficiency and indoor air quality of commercial buildings.

“The goal I pursued at CodeLaunch was to meet industry leaders and investors who can help take the product to the next level," says Mat Bonassera, chief enterprise architect at E360, in a news release. “The vast majority of buildings are both incredibly inefficient as well as dangerous to their occupants, due to the dangerous levels of compounds in the air.

"We solve both these complex problems at the same time," he continues. "This is unheard of in our industry. We do this by monitoring vast sums of IOT data and then using Machine Learning and real-time monitoring we adjust the building to optimize its performance. This is a revolutionary way to look at commercial buildings."

E360 shares the win with its partner development team Honeycomb Software, an international custom software development company. The provided hands-on support to E360 scale during a two-day hackathon held February 25 and 26.

“The desire to promote energy efficiency of the buildings and the sustainability in business influenced our decision of whom to work with during the Hackathon," says Oleksandr Semeniuk, CEO of Honeycomb Software, in the release. "Our team worked tirelessly to expand the functionality of E360, and this victory is a testament to their hard work and dedication."

Axiom named among most innovative companies

KBR is one of Axiom Space's partners on its new NASA-sanctioned ISS project. Photo via AxiomSpace.com

Fast Company named it's 50 most innovative companies — and Axiom Space, a Houston-based commercial, full-service orbital mission provider, was named No. 49 on the list. It was also recognized as one of the most innovative space tech companies "for going to space without a chaperone," per the magazine.

The article recognized several of Axiom's accomplishments, including:

  • Managing the first all-private mission to the International Space Station in April of 2022. The mission sent a four-person crew into space for 17 days.
  • Developing plans to expand the international community of space explorers, including Italy, Canada, New Zealand, and others.
  • Building a module to attach to the ISS, which is progress toward the world’s first commercial free-floating space station.

“In the space business, there’s a big focus on the transportation, the rockets,” Michael Suffredini, president and CEO of Axiom, tells Fast Company. “But if you think about the railroads that were built across the U.S., they were built to serve a destination. Without a reason to go somewhere, they wouldn’t exist. We’re building the destination in space—the real estate to allow multiple businesses to operate in low-Earth orbit and take advantage of the microgravity environment.”

NASA also makes the ranking for "showing that a public space program can still do big things," according to the list.

Calling all student-founded startups and businesses

Rice and UH have programs for startup and small business entrepreneurs. Photo via uh.edu

Rice University and the University of Houston have upcoming deadlines for their summer accelerators. The summer programs all operate in coordination with each other and offer support for student, faculty, or staff founders and their startups and small businesses.

The four programs, and their focus and application deadlines, are as follows:

  • Rice's OwlSpark is focused on early-stage startup teams with at least one Rice student, faculty, or staff founders to grow from innovation to commercialization. Apply by March 13.
  • UH's RedLabs is focused on early-stage startup teams with at least one UH student, faculty, or staff founders to grow from innovation to commercialization. Apply by March 31.
  • Rice's BlueLaunch is focused on non-tech small business entrepreneurs who are either student, faculty, or staff at Rice. Apply by March 13.
  • UH's Red Launch is focused on non-tech small business entrepreneurs who are either student, faculty, or staff at UH. Apply by March 31.

Sixteen startup teams pitched at the seventh annual — but first-ever virtual – Bayou Startup Showcase. Photo courtesy of OwlSpark and RED Labs

University-based summer program presents 16 innovative Houston startup projects

best in class

Even despite a global pandemic, two university-based summer startup accelerator programs were determined to continue on. And, that's exactly what they did.

University of Houston's RED Labs and Rice University's OwlSpark pivoted their summer program, which they put on collaboratively, to a virtual approach. On Thursday, August 6, the program's 16 startup teams pitched their projects at the seventh annual Bayou Startup Showcase.

Here are this year's Class 8 presentations:

EVA

Vascular access requires a medical team to use an ultrasound machine to help navigate a needle's precision during the procedure. However, 5 percent of procedures result in an inexact and painful outcome. OwlSpark company, EVA — which stands for Exact Vascular Access, has created a device that works with the ultrasound machine to endure navigation of the needle during the procedure.

CareSafe

Seven million people fall every year, but as great and helpful wearable devices are, they aren't foolproof. CareSafe, a RED Labs company, taps into home WiFi to visualize when a fall occurs and the company can even notify emergency contacts and emergency services.

Ai-Ris

People who live in underserved and rural areas don't have regular access to eye care — which means that these people are exposed to preventable eye diseases. Ai-Ris has created a portable, telemedicine-ready device that can help get these populations access to eye care.

Dividends360

Ninety million people invest in the stock market — and more than half of those investors are self directed and spending several hours a week on planning their investments. RED Labs company Dividends360 is a web-based platform to help the modern investor make his or her decisions in a more efficient way.

FirstGen Solutions

Expecting mothers can't take the majority of medications in the market because the effects of the chemicals on the unborn child is unknown, and testing is limited to costly, inaccurate, and highly regulated animal testing. FirstGen Solutions, an OwlSpark company, is producing a stem cell testing kit for pharmaceutical companies to use as an earlier and easier way to indicate potential risks a medicine could have.

nisa EFFECT

Women undergoing menopause have no control over their hot flashes, which can happen often, last up to 20 minutes, and be debilitating to daily activities. Nisa EFFECT has created a cooling bra so that the 80 percent of women who experience hot flashes during menopause can have a discrete way to cool down.

FreeFuse

Five hundred hours of video content is uploaded every minute, and the sheer oversaturation of the industry makes growing an audience extremely difficult for content producers. Interactive video platform FreeFuse, an OwlSpark company, wants to flip the script and allow content creators to see what its audient wants to see in terms of content.

Morpheus Health

Pharmaceutical companies don't make it easy to find out about side effects medicines can have on its users. Morpheus Health, an OwlSpark company, uses data and patient information to better customize and predict potential side effects a medicine can have. Morpheus's results don't replace prescriptions or doctor consultations, but instead allow the patient to take that information into the consultation room.

Phase Filter

​Changing the air filters is an easily forgotten chore that, if undone, can cause unnecessary air quality issues and a higher electricity bill for homeowners. Phase Filter has designed a self-scrolling air filter that's easy to install and only needs to be changed once a year,

Bloodhound

The OwlSpark and RED Labs summer programs are meant to help early-stage startups figure out their market need and determine whether or not their product is a viable business. The Bloodhound team explains how they came up with their idea for a software that helps detect bleed in surgeries, and then how they realized, after research and mentorship through the program, that it wasn't an idea worth pursuing. Doctors need more help with stopping bleeds than finding them.

Crew Trace Solutions

The Navy needs an upgrade to their accountability practice. That's where Crew Trace Solutions, an OwlSpark company run by two military veterans, comes in. The technology mirrors something like EZ-Tag where personnel onboard are tracked throughout the ship as they pass through sensors set up in doorways around the boat.

VAYL

Everyone dreads the discomfort and disappointment that usually comes with dental appointments. The oral hygiene tools on the market today aren't cutting it, says the VAYL team, a RED Labs company. VAYL has created a device that brushes the entire mouth in an optimal way for time and for cavity prevention.

MoodyCorium

Finding the right moisturizer is a costly and exhausting industry for women. MoodyCorium, an OwlSpark company, is working on a solution so that women can navigate the hundreds of products available on the market.

ElastEye

Half of the glaucoma patients could have had their disease prevented by better diagnostics — and that's exactly what ElastEye has developed. The RED Labs company has created a non-invasive, early detection device that determines the elasticity of the eye.

BitGrange

Supporting local farmers can be hard — it might raise the price of produce for consumers while orders tend to be smaller than farmers prefer. BItGrange, an OwlSpark company, created an e-commerce platform to allow consumers to go in on purchases together to create a win-win situation for both sides of the transaction.

dext

Simple daily tasks can be overwhelming to stroke survivors and the only solution is exercise and rehabilitation. Dext is a wearable tool to help take that exercise and rehab into a daily, easy to use setting.

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Houston-based Fervo Energy bumps up IPO target to $1.82 billion

IPO update

Houston-based geothermal power company Fervo Energy is now eyeing an IPO that would raise $1.75 billion to $1.82 billion, up from the previous target of $1.33 billion.

In paperwork filed Monday, May 11 with the U.S. Securities and Exchange Commission, Fervo says it plans to sell 70 million shares of Class A common stock at $25 to $26 per share.

In addition, Fervo expects to grant underwriters 30-day options to buy up to 8.33 million additional shares of Class A common stock. This could raise nearly $200 million.

When it announced the IPO on May 4, Fervo aimed to sell 55.56 million shares at $21 to $24 per share, which would have raised $1.17 billion to $1.33 billion. The initial valuation target was $6.5 billion.

A date for the IPO hasn’t been scheduled. Fervo’s stock will be listed on Nasdaq under the ticker symbol FRVO.

Fervo, founded in 2017, has attracted about $1.5 billion in funding from investors such as Bill Gates-founded Breakthrough Energy Ventures, Google, Mitsubishi Heavy Industries, Devon Energy (which is moving its headquarters to Houston), Tesla co-founder JB Straubel, CalSTRS, Liberty Mutual Investments, AllianceBernstein, JPMorgan, Bank of America and Sumitomo Mitsui Trust Bank.

Fervo’s marquee project is Cape Station in Beaver County, Utah, the world’s largest EGS (enhanced geothermal system) project. The first phase will deliver 100 megawatts of baseload clean power, with the second phase adding another 400 megawatts. The site can accommodate 2 gigawatts of geothermal energy. Fervo holds more than 595,000 leased acres for potential expansion.

Cape Station has secured power purchase agreements for the entire 500-megawatt capacity. Customers include Houston-based Shell Energy North America and Southern California Edison.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

Texas university's new flight academy opens at Houston Spaceport

cleared for takeoff

The vehicles may not have “student driver” stickers on them, but Texas Southern University has moved a dozen planes into its new training facility at the Houston Spaceport, opening the way for student flyers to use the facility.

TSU previously reached a deal with Houston Airports and the City of Houston in 2023 to house its prospective Flight Academy at Ellington Field. At the time, TSU had a small fleet of nine planes for student use, but a $5.5 million investment from the city greatly expanded the space available.

The Flight Academy includes a 20,000-square-foot hangar that serves as a TSU satellite campus. The school now has a fleet of 12 Cirrus SR20 aircraft that were acquired last year through state and alumni funding. An additional 4,500 square feet is used as classroom and office space. An 8,000-gallon fuel tank will support flight training operations.

TSU first launched its Aviation Science Management program in 1986 and added a professional pilot program in 2016. The school is now part of the United Airlines pipeline program and has also forged relationships with Delta and Southwest.

“I want to commend Texas Southern University and Houston Airports for their leadership and partnership in advancing aviation education right here in our city,” Houston City Councilwoman Dr. Carolyn Evans-Shabazz in a press release.

“It connects our students to high-paying, high-demand careers in aviation and aerospace. This is how we grow a city in the right way—by investing in workforce development, aligning education with industry and making sure our residents are prepared to lead in the industries of tomorrow. Houston is already a global leader in aerospace and projects like this strengthen that position even further, especially here at Ellington, where innovation and opportunity continue to take flight.”

The City of Houston signed an agreement to continue funding the academy for five years.

Amazon launches ultrafast, 30-minute delivery service across Houston

Amazon Now

More than 20 years after it redefined fast shipping, Amazon is preparing to raise the bar on consumer expectations again by offering to fulfill customers' most urgent product needs in Houston and other parts of the world in a half-hour or less for an extra fee.

The company, which revolutionized online shopping in 2005 with two-day deliveries for Prime members, is rapidly opening small order-processing hubs in dozens of U.S. and foreign cities to cater to shoppers who can't or don't want to wait for cough medicine to relieve flu symptoms or tomatoes for tonight's dinner salad.

The ultrafast service, called Amazon Now, first launched in India last June. Amazon says 30-minute deliveries now are also available in urban areas of the United States, Brazil, Mexico, Japan, the United Arab Emirates, the United Kingdom.

The mini-warehouses devoted to Amazon Now are about the size of a CVS drugstore. They stock about 3,500 products for expedited delivery, including beer, diapers, pet food, meat, nonprescription medications, playing cards and cellphone charging cables.

“We know that customers love speed and always have,” Beryl Tomay, Amazon’s head of transportation, told The Associated Press on Monday. “What we see customers doing, when we offer faster speeds, are they purchase more from Amazon. And Amazon becomes more top of mind for that or other types of items as well.”

In the U.S., the company first tested Amazon Now in Seattle, the home of its headquarters, and in Philadelphia. Most residents of the Dallas-Fort Worth area and Atlanta now have access as well. The service is also live in Dallas-Fort Worth, Denver, Minneapolis, Phoenix, Oklahoma City, Orlando, and dozens of other cities, Amazon said, with New York City and others expected by year-end.

The service charges for Amazon Now start at $3.99 for Prime members, who pay an annual fee of $139, and $13.99 for non-members. A $1.99 small basket fee applies to orders under $15, Amazon said.

The company's bet on a need for speed also comes as some consumers are rebelling against rushed deliveries as they weigh the potential impact on the environment and the workers tasked with preparing orders at a rapid rate.

Amazon’s approach
A relentless focus on speed helped Amazon build a logistics and e-commerce empire. After it made two days the new delivery time normal, Amazon moved into one-day and same-day deliveries for its Prime members. This spring, the company began making 90,000 products available in one hour or three hours at an extra cost.

The scaled down and sped up microhubs that are designed to handle 30-minute orders represent another step in Amazon's pursuit.

Only a handful of people prepare orders from aisles of shelves in the 5,000- to 10,000-square-foot facilities, unlike the sprawling fulfillment centers storing millions of items where Amazon employs a mix of human workers and robotics to pick and pack orders.

Amazon tailors the product inventory to each location and uses artificial intelligence and other technology to analyze what customers buy, as well as when and how often. The most popular U.S. purchases so far include soap, toothpaste, mouthwash, toilet plungers, bananas, limes and wireless earbuds, Amazon said.

The competition
Amazon’s attempt to up the instant gratification ante provides direct competition to on-demand food delivery platforms like Instacart, Uber Eats, DoorDash and Grubhub, which don't have the scale of the e-commerce titan, according to independent retail analyst Bruce Winder.

“What Amazon brings is their prowess in supply chain,” Winder said.

These smaller companies said they don't see Amazon as a threat, though, citing the hundreds of thousands of items they are able to deliver to users' doorsteps by partnering with various merchants and restaurants.

“DoorDash has a mission to empower grocers and retailers and augment their existing footprint, not to replace them,” DoorDash spokesperson Ali Musa said in an emailed statement. “We win only when they win, which is how we can offer over half a million grocery and retail items in under an hour across the country.”

Amazon also is in a race with Walmart to become the retailer that reliably gets orders to online shoppers in under an hour.

For an additional $10 on top of standard delivery charges, shoppers can place Walmart Express Delivery orders from among more than 100,000 products that are guaranteed to arrive in an hour. Many customers, however, are receiving the items under 30 minutes, Walmart CEO John Furner told analysts in February.

Domino's cautionary tale
Companies have promised deliveries in 30 minutes or less before, but the landscape also is littered with failed attempts to break the speed barrier.

The COVID-19 pandemic produced a flurry of companies that promised 10- to 15-minute grocery deliveries from microwarehouses in dense neighborhoods, according to Sucharita Kodali, an analyst at market research firm Forrester Research.

But soaring operating costs, low customer loyalty and the drying up of investor money ultimately caused most to fail before the pandemic was over, analysts said.

Domino’s in 1984 pushed a guarantee that customers would receive their pizzas for free if they weren't delivered in under a half-hour. The company amended the “30 minutes or it’s free” policy after two years, providing only a $3 discount for late deliveries.

The promotion helped Domino’s win market share, but it ended up tarnishing the company's reputation. It dropped the guarantee in December 1993 after a string of crashes and lawsuits involving drivers racing to meet the deadline.

Brad Jashinsky, a retail analyst at information technology research and consulting firm Gartner, said he thinks Amazon should take the pizza chain's experience as a cautionary tale.

“You get in trouble when you start overpromising something like that,” he said.

Amazon won't be making any time guarantees and instead plans to keep customers who chose the 30-minute delivery option updated on the progress of their orders, Tomay said.

“There's no rushing either in our building workers or the gig workers,” she said.

Taking it slow
Kodali thinks Amazon will need a lot of people placing orders around the same time from the same or adjacent apartment buildings for the 30-minute service to be cost-effective.

Consumers may appreciate rapid receipt of products like toilet paper and batteries, but retailers and logistics experts said they also see some online shoppers, especially members of Generation Z, choosing no-rush shipping for products they don't need in a hurry.

Amazon for several years has invited customers to skip one- or two-day delivery and to receive their orders on the same day in as few parcels as possible. Consolidating orders into fewer packages by electing to have them delivered at the same time cuts down on boxes, shipping envelopes and fuel use, analysts said.

“The millennials who came to age in an era that was on fast delivery came to expect it de facto, whereas ... Gen Z is more accepting of a slower speed than previous generations before them,” said Darby Meegan, a general manager at Flexport, a supply chain and logistics company that fulfills orders for thousands of online merchants.

Still, Amazon executives have cited positive early results for Amazon Now in India, where they said Prime members tripled their requests for 30-minute deliveries once they started using the service.

Amazon Now also is attracting more repeat American customers, Tomay said.

“It’s in early days and time will tell,” she said. “I think that it will be interesting to see how it evolves.”