MassChallenge Texas named six companies, which will each pitch at a final competition on September 5. Photo via greenstreetdowntown.com

MassChallenge Texas revealed the cream of the crop from its first Houston cohort. The top six startups will now be judged in one final pitch competition on September 5.

"Each of the 25 startups in our first cohort have made incredible progress during this short program and are now better prepared to make impact in Houston, Texas, and beyond," says Jon Nordby, managing director of MassChallenge Texas in Houston, in a release. "It is our goal to strengthen the local ecosystem through a collaborative community that will attract innovators from around the world to Houston, and the Lone Star State."

The program, which began on July 26, accelerated 25 early-stage companies from around the world with mentorship, corporate partnerships, curriculum, and more. No equity was taken by the program and it's free for the selected companies to attend.

"It is an honor to support the inaugural MassChallenge Texas accelerator in Houston and the incredible journey these startups have been on," says Elizabeth Killinger, president of Reliant and NRG Retail, in a release. "We're excited to be part of the thriving startup culture in Houston, and we look forward to all that this program will continue to bring to our city."

A panel of judges selected the top six, and now they face off for a set of prizes, which will be revealed at the Houston Finale. According to a spokesperson, the judges ahead of the event will decide on the winning company or companies and delegate prizes as they see fit.

The companies involved with supporting the accelerator include: Southwest Airlines, TMAC, WeWork, Upstream, USAA, BAE Systems, Brex, BHP, Central Houston, City of Houston, Houston Texans, Ingram Micro, Lionstone Investments, Midway, Reliant, San Antonio Spurs, Winstead Attorneys. Event and media partners are Insperity, Mattress Firm, Southwest Research Institute, Juice Consulting and Texas Squared Startup Newsletter.

FloodFrame

Houston-based FloodFrame is a company that provides self-deploying flood protection devices for residential and commercial real estate properties. Read more about the company here.

Mak Studio

Another Houston company — Mak Studio — makes the top startups list. The company provides interior design efforts made easy.

Neuro Rescue Inc.

NeuroRescue Inc. is an Ohio-based company that improves the standard of care used to treat stroke, brain injury, and cardiac arrest to increase neurological outcome by up to forty percent.

Noleus Technologies Inc.

Houston-based Noleus Technologies Inc. — a member of the TMCx07 cohort — has created a solution that reduces swelling in the bowels after operation. The disposable device is inserted into the abdomen at the time of surgery, and folds up like a fan to be removed without another surgery.

Reveal Technologies

Another Houston-based medical device company making it into MC's top 6 companies is Reveal Technologies, which uses a dual camera technology to help the 17 million Americans who suffer from retinal diseases to improve their sight.

Sensytec Inc.

Last but not least is Houston-based Sensytec Inc. The company has a "smart concrete" technology that is making moves in the energy industry.

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Houston startup taps strategic partner to produce novel 'biobased leather'

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A Houston-based next-gen material startup has revealed a new strategic partnership.

Rheom Materials, formerly known as Bucha Bio, has announced a strategic partnership with thermoplastic extrusion and lamination company Bixby International, which is part of Rheom Material’s goal for commercial-scale production of its novel biobased material, Shorai.

Shorai is a biobased leather alternative that meets criteria for many companies wanting to incorporate sustainable materials. Shorai performs like traditional leather, but offers scalable production at a competitive price point. Extruded as a continuous sheet and having more than 92 percent biobased content, Shorai achieves an 80 percent reduction in carbon footprint compared to synthetic leather, according to Rheom.

Rheom, which is backed by Houston-based New Climate Ventures, will be allowing Bixby International to take a minority ownership stake in Rheom Materials as part of the deal.

“Partnering with Bixby International enables us to harness their extensive expertise in the extrusion industry and its entire supply chain, facilitating the successful scale-up of Shorai production,” Carolina Amin Ferril, CTO at Rheom Materials, says in a news release. “Their highly competitive and adaptable capabilities will allow us to offer more solutions and exceed our customers’ expectations.”

In late 2024, Rheom Materials started its first pilot-scale trial at the Bixby International facilities with the goal of producing Shorai for prototype samples.

"The scope of what we were doing — both on what raw materials we were using and what we were creating just kept expanding and growing," founder Zimri Hinshaw previously told InnovationMap.

Listen to Hinshaw on the Houston Innovators Podcast episode recorded in October.

Justice Department sues to block Houston-based HPE's $14B buyout of Juniper

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The Justice Department sued to block Hewlett Packard Enterprise's $14 billion acquisition of rival Juniper Networks on Thursday, the first attempt to stop a merger by a new Trump administration that is expected to take a softer approach to mergers.

The Justice complaint alleges that Hewlett Packer Enterprise, under increased competitive pressure from the fast-rising Juniper, was forced to discount products and services and invest more in its own innovation, eventually leading the company to simply buy its rival.

The lawsuit said that the combination of businesses would eliminate competition, raise prices and reduce innovation.

HPE and Juniper issued a joint statement Thursday, saying the companies strongly oppose the DOJ's decision.

“We will vigorously defend against the Department of Justice’s overreaching interpretation of antitrust laws and will demonstrate how this transaction will provide customers with greater innovation and choice, positively change the dynamics in the networking market,” the companies said.

The combined company would create more competition, not less, the companies said.

The Justice Department's intervention — the first of the new administration and just 10 days after Donald Trump's inauguration — comes as somewhat of a surprise. Most predicted a second Trump administration to ease up on antitrust enforcement and be more receptive to mergers and deal-making after years of hypervigilance under former President Joe Biden’s watch.

Hewlett Packard Enterprise announced one year ago that it was buying Juniper Networks for $40 a share in a deal expected to double HPE’s networking business.

In its complaint, the government painted a picture of Hewlett Packard Enterprise as a company desperate to keep up with a smaller rival that was taking its business.

HPE salespeople were concerned about the “Juniper threat,” the complaint said, also alleging that one former executive told his team that “there are no rules in a street fight,” encouraging them to “kill” Juniper when competing for sales opportunities.

The Justice Department said that Hewlett Packard Enterprise and Juniper are the U.S.'s second- and third-largest providers of wireless local area network (WLAN) products and services for businesses.

“The proposed transaction between HPE and Juniper, if allowed to proceed, would further consolidate an already highly concentrated market — and leave U.S. enterprises facing two companies commanding over 70% of the market,” the complaint said, adding that Cisco Systems was the industry leader.

Many businesses and investors accused Biden regulatory agencies of antitrust overreach and were looking forward to a friendlier Trump administration.

Under Biden, the Federal Trade Commission sued to block a $24.6 billion merger between Kroger and Albertsons that would have been the largest grocery store merger in U.S. history. Two judges agreed with the FTC’s case, blocking the proposed deal in December.

In 2023, the Department of Justice, through the courts, forced American and JetBlue airlines to abandon their partnership in the northeast U.S., saying it would reduce competition and eventually cost consumers hundreds of millions of dollars a year. That partnership had the blessing of the Trump administration when it took effect in early 2021.

U.S. regulators also proposed last year to break up Google for maintaining an “abusive monopoly” through its market-dominate search engine, Chrome. Court hearings on Google’s punishment are scheduled to begin in April, with the judge aiming to issue a final decision before Labor Day. It’s unclear where the Trump administration stands on the case.

One merger that both Trump and Biden agreed shouldn’t go through is Nippon Steel’s proposed acquisition of U.S. Steel. Biden blocked the nearly $15 billion acquisition just before his term ended. The companies challenged that decision in a federal lawsuit early this year.

Trump has consistently voiced opposition to the deal, questioning why U.S. Steel would sell itself to a foreign company given the regime of new tariffs he has vowed.