Researchers focused on finding breakthrough technologies also have to deal with some financial red tape — but this UH expert shares why it shouldn't be so daunting. Graphic by Miguel Tovar/University of Houston

Facilities and Administrative costs (F&A), also known as Indirect Costs or IDC, are at the very least misunderstood by researchers. At their worst, they smack of "Big Brother." But F&A costs truly are transparent and nothing to fear (or despise!)

Keeping the lights on

F&A are costs that cannot be uniquely associated with a particular project, but which are nonetheless incurred by the university due to the project.

"If a Principal Investigator (PI) is using on-campus lab space, there is no easy way to determine what the electricity costs or maintenance costs are for the PI's work in the lab on any particular sponsored project," states University of Berkeley's website. "The same problem exists when a piece of equipment is shared by a number of PIs or projects; there is no way to determine the cost attributable to each PI or project."

Unfunded costs

So, we know it isn't easy to calculate how much utilities or janitorial staff cost a university during a sponsored project. But the question persists: do universities "make money" on sponsored research projects?

"No," says Cris Milligan, assistant vice president for research administration at the University of Houston. "Sponsors do not cover the full costs of conducting the research that they support. The unfunded costs are subsidized through university, college, department and faculty contributions."

Where has all the money gone?

F&A costs are a relatively small percentage of the actual costs that a university spends on any given project: for instance, operations and maintenance typically includes the day-to-day activities necessary for the building and its systems and equipment to perform their intended function.

Other monies go toward departmental, sponsored program and general administration costs. Rent needs to be paid on buildings where the research takes place, equipment must be purchased and libraries are maintained.

What goes in, must come out!

Grants can be funded by federal agencies such as the National Institutes of Health, National Science Foundation and the Department of Energy. Other support from companies, foundations and state and local agencies can be pursued by development officers within the colleges.

Recovered F&A costs totaled over $22 million at the University of Houston in 2019. Salaries and benefits, maintenance and operations, travel and business expenses, scholarships and fellowships and lastly capital outlay and contracting of services all take up their fair share of the pie.

"Of course, to be successful in research, PIs need a whole ecosystem of supporting teams, from grant administrators to student services, operations and maintenance to IT. That is what indirect spend is: it relates to every purchase not directly related to the performance of the sponsored research," says Milligan.

Determining Rates

The aim of most every university is full recovery of costs associated with sponsored projects. For instance, the University of Michigan Office of Research states, "Periodically, the Department of Health and Human Services (acting on behalf of the federal government) and the University negotiate an agreement setting forth indirect cost rates for three types of sponsored activities: organized research, instruction and other sponsored activities."

The agreement specifies the rates at which the University can recover its indirect costs associated with projects sponsored by all agencies of the federal government.

Non-federal sponsors (i.e., private sponsors, whether industry or non-profit) are not bound by the terms of OMB Uniform Guidance. These monitored costs are not necessarily guided by the principle of full cost recovery for universities. Your friendly development officer will come in handy when applying for this kind of support; just be clear that the percentage of F&A may be determined on a slightly different scale.

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This article originally appeared on the University of Houston's The Big Idea. Sarah Hill, the author of this piece, is the communications manager for the UH Division of Research.

Houston-area researchers are innovating health and wellness solutions every day — even focusing on non-pandemic-related issues. Photo via Getty Images

3 research innovations in health care to know about in Houston

Research roundup

Researchers across the world are coming up with innovative breakthroughs regarding the coronavirus, but Houston research institutions are also making health and wellness discoveries outside of COVID-19.

Here are three research innovations from Houston scientists from a new cardiac medical device to artificial intelligence-driven predictive technology for cirrhosis patients.

University of Houston's new implantable cardiac device

A UH researcher has designed a flexible device that can collect key information on the human heart. Photo via UH.edu

Cardiac implants and devices like pacemakers are either made with rigid materials that don't do the moving, beating heart any favors or the devices are made with soft materials but sacrifice the quality of information collected.

Researchers led by Cunjiang Yu, a University of Houston professor of mechanical engineering, have reported in Nature Electronics a new rubbery patch designed to collect electrophysiological activity, temperature, heartbeat and other indicators, while being flexible against the heart.

Yu, who is also a principal investigator with the Texas Center for Superconductivity at UH, is the author of the paper says it's the first time a device has both been flexible and accurate. The device, which generates energy from heart beats and doesn't need an external power source, can both collect information from multiple locations on the heart — also known as spatiotemporal mapping — but it can also offer therapeutic benefits such as electrical pacing and thermal ablation, according to the researchers.

"Unlike bioelectronics primarily based on rigid materials with mechanical structures that are stretchable on the macroscopic level, constructing bioelectronics out of materials with moduli matching those of the biological tissues suggests a promising route towards next-generational bioelectronics and biosensors that do not have a hard–soft interface for the heart and other organs," the researchers wrote. "Our rubbery epicardial patch is capable of multiplexed ECG mapping, strain and temperature sensing, electrical pacing, thermal ablation and energy harvesting functions."

Yu has worked on the development of fully rubbery electronics with sensing and other biological capabilities, including for use in robotic hands, skins and other devices.

Baylor College of Medicine's new tool to predict outcomes of cirrhosis

A new statistical model created from artificial intelligence can more accurately predict cirrhosis outcomes. Image via bcm.edu

Currently, the standard of care for cirrhosis patients is limited because physicians can't accurately predict long-term outcomes. But this might be changing thanks to researchers at Baylor College of Medicine, the Michael E. DeBakey Veteran's Affairs Medical Center, and the Center for Innovations in Quality, Effectiveness and Safety (IQuESt).

According to their study are published in JAMA Network Open, the researchers developed a model using a blend of artificial intelligence and traditional statistical methods to produce a score better predicting mortality in cirrhosis.

"When we see patients in the clinic we want to guide them about their long-term outcomes. We wanted to create a tool using machine learning and artificial intelligence to improve the accuracy of prognosis, while maintaining ease of use in the clinic," says Dr. Fasiha Kanwal, the author of the study and professor of medicine and section chief of gastroenterology at Baylor, in a news release.

The scientists used data collected from patients at 130 hospitals and clinics — such as demographics, comorbidities, underlying risk factors and severity of liver disease — as well as comprehensive laboratory tests and medication data to create three different statistical models to predict risk of mortality.

"Machine learning and artificial intelligence is important. It did help us find the right risk factors to use, but we didn't need to use very complex models to get there. We were able to create the CiMM score that will work easier in the clinic and is more predictive of mortality than the existing method," says Kanwal.

The Cirrhosis Mortality Model (CiMM) performed the best and most accurately and was more predictive than the current prognostic model, known as the Model for End Stage Liver Disease with sodium (MELD-Na).

"This tool could make a big difference in providing patient-centered care. The CiMM score could be reassessed every time a patient comes into the clinic," Kanwal said. "Previously, we were unable to predict anything long term. But the CiMM score could give us an idea of how to manage disease for one, two and three years out."

UTHealth's $11 million grant to study multi-drug resistant infection factors

A local multi-institutional research team has received millions to study drug resistance. Photo via Getty Images

A program at the University of Texas Health Science Center at Houston has received an $11 million grant from the National Institute of Allergy and Infectious Diseases to conduct this five-year study on why some critically ill patients develop multidrug-resistant infections.

The Dynamics of Colonization and Infection by Multidrug-Resistant Pathogens in Immunocompromised and Critically Ill Patients will enroll patients at both Memorial Hermann Hospital-Texas Medical Center and The University of Texas MD Anderson Cancer Center.

According to a news release, the research team will seek to explain the microbial, clinical, and antimicrobial resistance factors of three major multidrug-resistant pathogens: Vancomycin-resistant enterococci, Enterobacterales producing extended spectrum β-lactamases/carbapenemases, and Clostridioides difficile. Note: all three pathogens are resistant to antimicrobial treatment such as antibiotics.

"We want to learn more about how these three classes of organisms colonize the gastrointestinal tract of critically ill patients and, eventually, cause infections in these patient populations," says Dr. Cesar A. Arias, the study's principal investigator and professor of infectious disease at McGovern Medical School at UTHealth.

Free mental health care, local COVID-19 testing, and a new great to fund an ongoing study — here's your latest roundup of research news. Image via Getty Images

These are the latest COVID-19-focused research projects happening at Houston institutions

Research roundup

As Houston heads toward the end of summer with no major vaccine or treatment confirmed for COVID-19, local research institutions are still hard at work on various coronavirus-focused innovations.

Free mental health care, local COVID-19 testing, and a new great to fund an ongoing study — here's your latest roundup of research news.

Baylor College of Medicine genomics team to partner for local COVID-19 testing

Houston millionaire to start biotech accelerator for companies focusing on regenerative medicine

Two departments at BCM are working with the county on COVID-19 testing. Getty Images

Two Baylor College of Medicine institutions have teamed up to aid in local COVID-19 testing. The Human Genome Sequencing Center and the Alkek Center for Metagenomics and Microbiome Research — under the leadership of BCM — are partnering with local public health departments to provide polymerase chain reaction testing of COVID-19 samples, according to a news release from BCM.

"We are pleased to work with the outstanding local government groups in this critical public health effort," says Dr. Richard Gibbs, director of the HGSC and Wofford Cain chair and professor of molecular and human genetics at Baylor, in the release. "We are proud of the tireless determination and expertise of our centers and college staff that enabled the rapid development of this robust testing capacity to serve the greater Houston community."

Baylor is among the testing providers for Harris County Public Health, and people can receive testing following a pre-screening questionnaire online.

"We are fortunate to have Baylor College of Medicine as a close partner during the COVID-19 pandemic," says Dr. Umair Shah, executive director of Harris County Public Health, in the release. "This is a challenging time for our community and as the need for increased testing capacity and getting results to residents faster has grown, Baylor has risen to the occasion. There are countless unsung heroes across Harris County who have stepped up to the plate during this pandemic and Baylor College of Medicine is one of them."

COVID-19 testing samples are collected from testing sites and delivered to the Alkek Center. After isolating the virus, genomic material is extracted and sent to the HGSC to quantitative reverse transcription PCR testing. Should the sample's RNA sequence match the virus, then it is positive for COVID-19. The sequencing must test positive three times to be considered overall positive.

Results are returned within 48 hours, and the lab has a capacity of more than 1,000 samples a day. Since May, the team has tested over 30,000 samples.

"We knew we had all the pieces to stand up a testing center fast – large scale clinical sequencing, experts in virology and molecular biology, and a secure way to return results to patients," says Ginger Metcalf, Human Genome Sequencing Center Director of Project Development, in the release. "We are also fortunate to have such great partners at Harris County Public Health, who have done an amazing job of gathering, tracking and delivering samples, especially for the most at-risk members of our community."

National Science Foundation renews Rice University funding amid pandemic

José Onuchic (left) and Peter Wolynes are co-directors of the Center for Theoretical Biological Physics at Rice University. Photo by Jeff Fitlow/Rice University

Rice University's Center for Theoretical Biological Physics has been granted a five-year extension from the National Science Foundation. The grant for $12.9 million will aid in continuing the CTBP's work at the intersection of biology and physics.

The center — which was founded in 2001 at the University of California, San Diego, before moving to Rice in 2011 — is led by Peter Wolynes and José Onuchic.

"We have four major areas at the center," Onuchic says in a news release. "The first is in chromatin theory and modeling, developing the underlying mathematical theory to explain the nucleus of the cell — what Peter calls the 'new nuclear physics.' The second is to test ideas based on the data being created by experimentalists. The third is to understand information processing by gene networks in general, with some applications related to metabolism in cancer. The fourth is to study the cytoskeleton and molecular motors. And the synergy between all of these areas is very important."

Onuchic adds that an upcoming donation of a supercomputer by AMD will help the center's ongoing research into COVID-19 and four institutions — Rice, Northeastern, Baylor College of Medicine and the University of Houston — are working collaboratively on the study,

"We're all set to move on doing major COVID-related molecular simulations on day one," he says in the release. "The full functioning of a center requires a synergy of participation. Rice is the main player with people from multiple departments, but Baylor, Northeastern and Houston play critical roles."

University of Houston offers free mental health therapy for restaurant workers

Texas restaurant workers can get free mental health care from a UH initiative. Photo via Elle Hughes/Pexels

Through a collaboration with Southern Smoke and Mental Health America of Greater Houston, the University of Houston Clinical Psychology program launched a a free mental health care program for Texas-based food and beverage employees and their children.

"During normal times this is a high stress industry where people work very hard in environments where they are just blowing and going all the time," says John P. Vincent, professor of psychology and director of the UH Center for Forensic Psychology, in a news release.

The program has 14 graduate students who converse with a total of 30 patients and meet weekly with supervisors at UH.

"This opportunity allows our clinical program to reach people in the community who usually don't have access to mental health services," says Carla Sharp, professor of psychology and director of clinical training, in the release.

For restaurant industry workers looking for help and care, they can visit the Mental Health Services page on Southern Smoke's website.

According to Vincent, this is just the beginning.

"We're discussing it," says Vincent in the release. "But as far as I'm concerned it can just keep going and going."

Three health and tech research projects coming out of the Houston area have received grants to continue their work. Getty Images

These 3 Houston-area researchers receive millions in grants for ongoing innovation projects

Research roundup

Money makes the world go 'round, and that's certainly the case with research projects. Grants are what drives research at academic institutions across the country and fuel the next great innovations.

These three projects coming out of Houston-area universities were all granted multimillion-dollar sums in order to continue their health tech, cancer-prevention, and even electric vehicle battery research projects,

University of Houston's $3.2 million grant for its next-generation micro CT scan

Associate professor of physics Mini Das developed a better way to approach CT scans. Photo via uh.edu

In an effort to improve imaging and lower radiation, Mini Das, associate professor of physics at the University of Houston, is moving the needle on introducing the next generation of micro computed tomography (CT) imaging. Das recently received a five-year, $3.2 million grant from the National Institute of Biomedical Imaging and Bioengineering to help move along her work in this field.

"This has the potential to transform the landscape of micro-CT imaging," says Das in a news release.

Das is responsible for developing the theory, instrumentation and algorithms for spectral phase-contrast imaging (PCI) that allows for lower radiation with higher image details, according to the release.

"Current X-ray and CT systems have inherent contrast limitations and dense tissue and cancer can often look similar. Even if you increase the radiation dose, there is a limit to what you can see. In addition, image noise becomes significant when increasing resolution to see fine details, often desirable when scanning small objects," says Das.

Rice University researcher's $2.4 million grant to advance on car batteries

This company’s machine learning programs are making driving in Houston safer — and cheaper

A Rice University scientist is looking to optimize car batteries. Pexels

A Rice University scientist is working toward improving batteries for electric vehicles. Materials scientist Ming Tang and his colleagues — backed by a $2.4 million grant from the United States Advanced Battery Consortium — are working on a project led by Worcester Polytechnic Institute (WPI) in Massachusetts, which will run for 36 months and will focus on low-cost and fast-charging batteries.

"Traditional battery electrodes are prepared by the slurry casting method and usually have uniform porosity throughout the electrode thickness," says Tang, an assistant professor of materials science and nanoengineering, in a news release. "However, our earlier modeling study shows that an electrode could have better rate performance by having two or more layers with different porosities.

"Now with the Missouri University of Science and Technology and WPI developing a new dry printing method for battery electrode fabrication, such layered electrodes can be manufactured relatively easily," he said. Tang's group will use modeling to optimize the structural parameters of multilayer electrodes to guide their fabrication.

The academics will also work with a manufacturer, Microvast, that will assemble large-format pouch cells using layered electrodes and evaluate the electrochemical performance against the program goals, according to the release.

"The public/private partnership is critical to steer the research performed at universities," Tang says. "It helps us understand what matters most to commercial applications and what gaps remain between what we have and what is needed by the market. It also provides valuable feedback and gives the project access to the state-of-the-art commercial battery fabrication and testing capabilities."


Texas A&M faculty member's $5 million grant for cancer research

Tanmay Lele of Texas A&M University is looking at how cells react to mechanical forces in cancer. Photo via tamu.edu

Tanmay Lele, a new faculty member in Texas A&M University's Department of Biomedical Engineering, received a $5 million Recruitment of Established Investigators grant from the Cancer Prevention and Research Institute of Texas (CPRIT) in May to research how cancer progresses.

More specifically, Lele's research focuses on mechanobiology and how cells sense external mechanical forces as well as how they generate mechanical forces, and how these mechanical forces impact cell function, according to a news release from A&M.

"The nuclei in normal tissue have smooth surfaces, but over time the surfaces of cancer nuclei become irregular in shape," Lele says in the release. "Now, why? Nobody really knows. We're still at the tip of the iceberg at trying to figure this problem out. But nuclear abnormalities are ubiquitous and occur in all kinds of cancers — breast, prostate and lung cancers."

Lele will work from two laboratories — one in College Station and one in the Texas A&M Health Science Center's Institute of Biosciences & Technology in Houston. THe will collaborate with Dr. Michael Mancini and Dr. Fabio Stossi from Baylor College of Medicine.

"Like any other basic field, we are trying to make discoveries with the hope that they will have long-term impacts on human health," Lele says.

Rice University identified 15 more pandemic-related research projects to receive support from a new research fund. Getty Images

15 more COVID-19 research projects receive funds from Houston university

coronavirus solutions

Researchers at a Houston institution have been rewarded for their work that focuses on COVID-19 and how it's affected various aspects of life.

Rice University has named its two more rounds of recipients of its COVID-19 Research Fund — an initiative created to support projects that are innovating solutions and services amid the COVID-19 crisis. In April, the COVID-19 Research Fund Oversight and Review Committee — led by engineering professor and special adviser to the provost, Marcia O'Malley — selected four projects led by Rice faculty members across industries from biomedicine to humanities that will receive the first round of funds.

The committee named another round of recipients in May and the third and final round this month. Here are the projects from the last two rounds of grants:

  • Rapid point-of-care device to detect severe cases of COVID-19 by Kevin McHugh and Peter Lillehoj of Rice and Cassian Yee of the University of Texas MD Anderson Cancer Center.
  • A mobile phone-based blood serum test for COVID-19 antibodies by Lillehoj, Wen Hsiang Chen of Baylor College of Medicine and James Le Duc of Galveston National Laboratory. The mobile test would be faster and more precise.
  • A handbook addressing pandemic response initiatives for health officials by Kirsten Ostherr and Lan Li of Rice; Thomas Cole of the McGovern Medical School at the University of Texas Health Science Center, Houston; Robert Peckham of Hong Kong University; and Sanjoy Bhattacharya of York University.
  • A look at COVID-19's effect on vehicle travel and electric power generation and air quality by Daniel Cohan and Daniel Kowal of Rice. Using both on-the-ground and satellite data, the researchers will look at various air pollutants.
  • A study on Harris County residents' compliance to stay-at-home orders by Flavio Cunha, Patricia DeLucia, Fred Oswald, Ekim Cem Muyan and E. Susan Amirian of Rice. The researchers will survey residents — particularly low-socioeconomic populations.
  • A look at how pollution and economics affect each other turing a pandemic-caused crisis by Sylvia Dee, Ted Loch-Temzelides, Caroline Masiello and Mark Torres of Rice. Thanks to stay-at-home initiatives, the study can look at which economic sectors contribute the most to carbon emissions.
  • A study on long-term effects of COVID-19 on human development by Fred Oswald of Rice, Rodica Damian and Tingshu Liu of the University of Houston and Patrick Hill of Washington University. The project looks at the pandemic's affect on social contexts including occupational, educational, community, family, lifestyle, health and financial.
  • A predictive model of Houston's COVID-19 condition by Daniel Kowal, assistant professor of statistics, and Thomas Sun, a graduate student, at Rice. The project will compare Houston to locations that are similar and further along the disease incidence curve.
  • A survey of how stay-at-home orders affected low-income families by Amelyn Ng, Wortham Fellow at Rice Architecture, and Gabriel Vergara of One Architecture and Urbanism. he survey will focus on Houston's Greater Fifth Ward.
  • Research on antibodies for disease prevention by Laura Segatori, associate professor of bioengineering and of chemical and bimolecular engineering and biosciences, and Omid Veiseh, assistant professor of bioengineering, at Rice. The two scientists plan to engineer cell lines for the rapid development of clinically translatable neutralizing antibodies for infection control.
  • An analysis of working conditions amid the pandemic by Danielle King, assistant professor of psychological sciences at Rice. King will look into both employees who can no longer go to the workplace, like teachers, and those required to, like nurses, to see what resources are most effective.
  • An oxygen sensing device by Michael Wong, department chair and a professor of chemical and biomolecular engineering, and Rafael Verduzco, associate professor of chemical and biomolecular engineering, of Rice and John Graf of NASA. The team will continue working on a NASA-designed prototype ventilator for rapid deployment based on an off-the-shelf automotive oxygen sensor.
  • A study on social distancing for musicians by Ashok Veeraraghavan, Robert Yekovich and Ashutosh Sabharwal of Rice and John Mangum of the Houston Symphony. The project will look into airflow of wind instruments using high-speed imaging.
  • Looking into public health initiatives and their use in COVID-19 by Hulya Eraslan, Rossella Calvi, Dibya Deepta Mishra and Ritika Sethi of Rice. The team will look at election data with a goal is to understand the impact of political alignment across levels of government on the effectiveness of its response.
  • Research on optimizing nursing staff schedules by Andrew Schaefer, Illya Hicks and Joseph Huchette of Rice and Nicole Fontenot of Houston Methodist Hospital. Researchers will employ data and technology to improve forecasting demand for nursing staff.
Four COVID-19-focused research projects have been selected by Rice University to receive funding. Photo courtesy of Rice University

Houston university announces first recipients of coronavirus research funding

covid heroes

Rice University has named several Houston researchers as recipients of funding as a part of a new initiative to support projects that are innovating solutions and services amid the COVID-19 crisis.

The university's COVID-19 Research Fund Oversight and Review Committee — led by engineering professor and special adviser to the provost, Marcia O'Malley — selected a few projects led by Rice faculty members across industries from biomedicine to humanities that will receive the first round of funds. However, the application window is ongoing, according to a press release, and additional awards are to be expected.

Here were the first projects and researchers to be selected by the committee.

A low-cost diagnostic tool

Rice researchers Rebecca Richards-Kortum and Kathryn Kundrod of Rice University along with Kathleen Schmeler of the University of Texas MD Anderson Cancer Center have identified a way to create a COVID-19 diagnostic device that costs less than $5,000 and less than $2 per test. It would also take fewer than 30 minutes to diagnose.

The researchers are also working with USAID and industry partners on a plan to scale the test to five countries in Africa. In the future, the device would enable broader SARS-CoV-2 testing locally and in low- and middle-income countries.

Richards-Kortum is a professor of bioengineering and electrical and computer engineering and director of Rice 360˚. Kundrod is a graduate student in bioengineering. Schmeler is a professor in the department of gynecologic oncology and reproductive medicine at MD Anderson.

A protective rubber harness to be worn over a face mask 

Jacob Robinson and Caleb Kemere, associate professors at Rice, along with Sahil Kuldip of MD Anderson, have discovered a low-cost, easy-to-manufacture rubber harness to be worn over surgical or cloth masks in order seal the masks. The seal would better prevent small airborne particles from getting around the masks.

Robinson is in Rice's electrical and computer engineering and bioengineering departments, while Kemere specializes in electrical and computer engineering. Kuldip is an assistant professor of plastic surgery at MD Anderson.

Wastewater monitoring for coronavirus contamination 

Rice researchers Lauren Stadler, Katherine Ensor and Loren Hopkins are working with the Houston Health Department and Houston Water on a plan to collect wastewater samples from local treatment plants to monitor for the presence of COVID-19.

With most people asymptomatic or experience only mild symptoms of COVID-19, the researchers are looking into the virus's presence in wastewater in order to track community infection.

Stadler, an assistant professor of civil and environmental engineering, and Ensor, the Noah G. Harding Professor of Statistics, are working with Hopkins, who is a professor in practice of statistics and chief environmental science officer for the Houston Health Department.

The identification of safe and healthy voting procedures 

Five Rice researchers — Robert Stein, Philip Kortum, Claudia Ziegler Acemyan, Daniel Wallach and Elizabeth Vann — are looking into steps Harris County can take to ensure that in-person voting is safe and keeps participants healthy. Through surveys with citizens, the team will help election officials survey both voters and poll workers on their voting preferences and concerns.

The research team spans campus departments: Stein is the Lena Gohlman Fox Professor of Political Science, Kortum is an associate professor of psychological sciences, Acemyan is an adjunct assistant professor of psychological sciences, Wallach is a professor of computer science and of electrical and computer engineering, and Vann is the director of programs and partnerships at the Center for Civic Leadership

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Houston innovator on seeing a greener future on built environment

HOUSTON INNOVATORS PODCAST EPISODE 162

An architect by trade, Anas Al Kassas says he was used to solving problems in his line of work. Each project architects take on requires building designers to be innovative and creative. A few years ago, Kassas took his problem-solving background into the entrepreneurship world to scale a process that allows for retrofitting window facades for energy efficiency.

“If you look at buildings today, they are the largest energy-consuming sector — more than industrial and more than transportation,” Kassas, founder and CEO of INOVUES, says on the Houston Innovators Podcast. “They account for up to 40 percent of energy consumption and carbon emissions.”

To meet their climate goals, companies within the built environment are making moves to transition to electric systems. This has to be done with energy efficiency in mind, otherwise it will result in grid instability.

"Energy efficiency goes hand in hand with energy transition," he explains.

Kassas says that he first had the idea for his company when he was living in Boston. He chose to start the business in Houston, attracted to the city by its central location, affordable labor market, and manufacturing opportunities here.

Last year, INOVUES raised its first round of funding — a $2.75 million seed round — to scale up the team and identify the best markets to target customers. Kassas says he was looking for regions with rising energy rates and sizable incentives for companies making energy efficient changes.

"We were able to now implement our technology in over 4 million square feet of building space — from Boston, Seattle, Los Angeles, New York City, Portland, and very soon in Canada," he says.

Notably missing from that list is any Texas cities. Kassas says that he believes Houston is a great city for startups and he has his operations and manufacturing is based here, but he's not yet seen the right opportunity and adaption

"Unfortunately most of our customers are not in Texas," "A lot of work can be done here to incentivize building owners. There are a lot of existing buildings and construction happening here, but there has to be more incentives."

Kassas shares more about his growth over the past year, as well as what he has planned for 2023 on the podcast. Listen to the interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

Houston SPAC announces merger with Beaumont-based tech company in deal valued at $100M

speaking of spacs

A Houston SPAC, or special purpose acquisition company, has announced the company it plans to merge with in the new year.

Beaumont-based Infrared Cameras Holdings Inc., a provider of thermal imaging platforms, and Houston-based SportsMap Tech Acquisition Corp. (NASDAQ: SMAP), a publicly-traded SPAC with $117 million held in trust, announced their agreement for ICI to IPO via SPAC.

Originally announced in the fall of last year, the blank-check company is led by David Gow, CEO and chairman. Gow is also chairman and CEO of Gow Media, which owns digital media outlets SportsMap, CultureMap, and InnovationMap, as well as the SportsMap Radio Network, ESPN 97.5 and 92.5.

The deal will close in the first half of 2023, according to a news release, and the combined company will be renamed Infrared Cameras Holdings Inc. and will be listed on NASDAQ under a new ticker symbol.

“ICI is extremely excited to partner with David Gow and SportsMap as we continue to deliver our innovative software and hardware solutions," says Gary Strahan, founder and CEO of ICI, in the release. "We believe our software and sensor technology can change the way companies across industries perform predictive maintenance to ensure reliability, environmental integrity, and safety through AI and machine learning.”

Strahan will continue to serve as CEO of the combined company, and Gow will become chairman of the board. The transaction values the combined company at a pre-money equity valuation of $100 million, according to the release, and existing ICI shareholders will roll 100 percent of their equity into the combined company as part of the transaction.

“We believe ICI is poised for strong growth," Gow says in the release. "The company has a strong value proposition, detecting the overheating of equipment in industrial settings. ICI also has assembled a strong management team to execute on the opportunity. We are delighted to combine our SPAC with ICI.”

Founded in 1995, ICI provides infrared and imaging technology — as well as service, training, and equipment repairs — to various businesses and individuals across industries.

Report: Federal funding, increased life science space drive industry growth in Houston

by the numbers

Federal funding, not venture capital, continues to be the main driver of growth in Houston’s life sciences sector, a new report suggests.

The new Houston Life Science Insight report from commercial real estate services company JLL shows Houston accounted for more than half (52.7 percent) of total funding from the National Institutes of Health (NIH) across major Texas markets through the third quarter of this year. NIH funding in the Houston area totaled $769.6 million for the first nine months of 2022, exceeding the five-year average by 19.3 percent.

VC funding for Houston’s life sciences sector pales in comparison.

For the first nine months of this year, companies in life sciences raised $147.3 million in VC, according to the report. Based on that figure, Houston is on pace in 2022 to meet or surpass recent life sciences VC totals for most other years except 2021. JLL describes 2021 as an “outlier” when it comes to annual VC hauls for the region’s life sciences companies.

JLL notes that “limited venture capital interest in private industry has remained a challenge for the city’s life sciences sector. Furthermore, it may persist as venture capital strategies are reevaluated and investment strategies shift toward near-term profits.”

While life sciences VC funding has a lot of ground to cover to catch up with NIH funding, there are other bright spots for the sector.

One of those bright spots is the region’s rising amount of life sciences space.

The Houston area boasts more than 2.4 million square feet of space for life sciences operations, with another 1.1 million under construction and an additional 1.5 million square feet on the drawing board, the report says. This includes a soon-to-open lab spanning 25,000 square feet in the first phase of Levit Green.

A second bright spot is the migration of life sciences companies to the region. Two Southern California-based life sciences companies, Cellipoint Bioservices and Obagi Cosmeceuticals, plan to move their headquarters and relocate more than half of their employees to The Woodlands by the first half of 2023, according to the report.

“Houston’s low tax rate and cost of living were primary drivers for the decisions, supported by a strong labor pool that creates advantages for companies’ expansion and relocation considerations,” JLL says.