7 Houston entrepreneurs pitch their companies to famed Silicon Valley investor

#HTXTechRodeo

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

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

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

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

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

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

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

Topper Luciani, CEO and founder of Goodfair

goodfair

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

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

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

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

Katharine Forth, CEO and founder of Zibrio

Balancing is important throughout your life, and Zibrio has the tools and tips for you to use to stay centered. Pexels

From NASA to your bathroom floor — Katharine Forth, CEO and founder of Zibrio, has found a new way to track balance. With her company, people can have the everyday ability to figure out how balanced they are on scale of 1 to 10. The scale gathers data from your weight, your postural control, your muscles and other factors to calculate the rating.

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

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

Amy Gross, founder and CEO, VineSleuth Inc

vinesleuth

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

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

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

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

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

Panos Moutafis, CEO and co-founder, Zenus Biometrics

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

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

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

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

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

Safir Ali, co-founder and CEO of Hamper

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

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

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

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

Dyan Gibbens, founder and CEO, Trumbull Unmanned

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

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

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

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

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

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

Ksenia Yudina, founder and CEO, UNest

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

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

"Part of being a successful founder is knowing what you need more and what to stay focused on," Calacanis says. "If you remain a product that people like, everyone is going to drown you in opportunities. And as CEO you have to know when to say no."
The winner of the contest will be announced at a Rockets game in early April. Courtesy of Greater Houston Convention and Visitors Bureau

Houston Rockets, BBVA launch annual startup competition

game on

It's game on for Houston startups looking to compete in the Launchpad contest backed by BBVA USA and the Houston Rockets.

Houston startups have until February 28 to submit their companies for the competition. Judges from BBVA and the Rockets will select four by late March, and fans will vote on their favorite company. The winner will be presented with a $10,000 check at a Rockets game in late April. The winning startup will also receive consultations with Rockets and BBVA USA executives.

It's the fourth time BBVA has sought out entrepreneurs, but last year the organization revamped the program to focus on technology-driven startups.

"Over the past three years, we have been proud to partner with BBVA to highlight small businesses in Houston and their contribution to our economy," says Rockets Chief Revenue Officer Gretchen Sheirr. "Entering its fourth year, the Launchpad contest seeks nominees focused on using best in class digital strategies to enhance their small business. We look forward to reviewing submissions and honoring the great work that is being done by these businesses in our community.

BBVA's new Houston CEO Dillan Knudson, who was promoted to his new position in November, is excited for his inaugural involvement in the contest.

"It's extremely exciting to collaborate with the Rockets for the first time, and for such a great initiative that helps Houston's thriving small business scene," says Knudson. "Part of my new role is to create opportunities and financial freedom for Houston's communities through the bank's ample resources, and to do that in collaboration with a staple organization of this city is an honor."

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

Last year, Launchpad's winner was Hamper. Hamper's co-founder and CEO Safir Ali started his company to use technology to optimize the dry cleaning business and compares Hamper to the "Red Box of dry cleaning." The win was big for Hamper's future.

"It was an absolute pleasure to be recognized by BBVA and the Houston Rockets as the winner of the 2019 Launchpad Contest," says Ali in the release. "It was a very exciting moment for Hamper, and we are very grateful to have the opportunity to be recognized in our community. Many thanks to both BBVA and the Houston Rockets for empowering Houston businesses and giving them such a great platform to be recognized for their efforts, and for playing an active role in empowering entrepreneurship in Houston."
From rethinking dry cleaning or marketing to flipping the script on pop culture events, here's who to know this week in Houston innovation. Courtesy Photos

3 Houston innovators to know this week

Who's Who

This week's batch of Houston innovators to know are all rethinking the way things are being done, from dry cleaning and marketing to pop culture events. Scroll through to see who's who in Houston innovation this week.

Safir Ali, founder and CEO of Hamper

Safir Ali leads Houston-based Hamper, which won the Rockets and BBVA Compass' LaunchPad competition. Courtesy of Hamper

It's a good week for Safir Ali, who's company just won a startup competition put on by the Houston Rockets and BBVA Compass. Hamper, his company, makes dry cleaning more convenient for customers with pick up and delivery. His parents run a dry cleaning shop and he always thought it was a bit antiquated.

"I had this 'aha' moment in 2016," Safir says. "I had graduated from Texas A&M in 2014 and was working a corporate job and the last thing on my mind was joining the family business. But I started to see all the pain points for people in dry cleaning." Learn more about Hamper here.

Allie Danziger, founder and president of Integrate Agency

When it comes to setting up a marketing budget for your startup, considering every angle is important, says Allie Danziger of Integrate Agency. Getty Images

Allie Danziger has been focused on digital marketing since before it was cool. The entrepreneur created her Houston agency 10 years ago and has been growing ever since. She wrote a guest column for InnovationMap last week about how startups and small businesses should decide on how much to spend on marketing.

"Industry research suggests spending 5 percent to 12 percent of total revenue on an annual marketing budget," she writes. "At Integrate Agency, we believe marketing spend should be determined from key data points, versus current size." Click here to read the rest of the article.

Michael Heckman, Comicpalooza president and senior vice president at Houston First

Michael Heckman shares about some exciting new aspects of Houston's 11th annual Comicpalooza. Courtesy of Houston First

It's safe to say that Michael Heckman has had a busy weekend. The 11th annual Comicpalooza took over downtown Houston this past weekend, but just because one event is over, doesn't mean Heckman or his team at Houston First Corp. is slowing down.

"Our convention sales team looks to break another record this year," Heckman tells InnovationMap. "We have a lot of major events upcoming — from the college football playoff to the men's basketball Final Four, and we'll eventually pursue another Super Bowl."

Heckman says he has some big ideas for even an innovation-focused conference. Read the rest of the Q&A with Heckman here.
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3 businesses join Houston initiative for carbon capture and storage

seeing green

Three big businesses — Air Liquide, BASF, and Shell — have added their firepower to the effort to promote large-scale carbon capture and storage for the Houston area’s industrial ecosystem.

These companies join 11 others that in 2021 threw their support behind the initiative. Participants are evaluating how to use safe carbon capture and storage (CCS) technology at Houston-area facilities that provide energy, power generation, and advanced manufacturing for plastics, motor fuels, and packaging.

Other companies backing the CCS project are Calpine, Chevron, Dow, ExxonMobil, INEOS, Linde, LyondellBasell, Marathon Petroleum, NRG Energy, Phillips 66, and Valero.

Business and government leaders in the Houston area hope the region can become a hub for CCS activity.

“Large-scale carbon capture and storage in the Houston region will be a cornerstone for the world’s energy transition, and these companies’ efforts are crucial toward advancing CCS development to achieve broad scale commercial impact,” Charles McConnell, director of University of Houston’s Center for Carbon Management in Energy, says in a news release.

McConnell and others say CCS could help Houston and the rest of the U.S. net-zero goals while generating new jobs and protecting current jobs.

CCS involves capturing carbon dioxide from industrial activities that would otherwise be released into the atmosphere and then injecting it into deep underground geologic formations for secure and permanent storage. Carbon dioxide from industrial users in the Houston area could be stored in nearby onshore and offshore storage sites.

An analysis of U.S Department of Energy estimates shows the storage capacity along the Gulf Coast is large enough to store about 500 billion metric tons of carbon dioxide, which is equivalent to more than 130 years’ worth of industrial and power generation emissions in the United States, based on 2018 data.

“Carbon capture and storage is not a single technology, but rather a series of technologies and scientific breakthroughs that work in concert to achieve a profound outcome, one that will play a significant role in the future of energy and our planet,” says Gretchen Watkins, U.S. president of Shell. “In that spirit, it’s fitting this consortium combines CCS blueprints and ambitions to crystalize Houston’s reputation as the energy capital of the world while contributing to local and U.S. plans to help achieve net-zero emissions.”

Texas doctor dives into Shark Tank with invention that stops hiccups

shark bait

Humans are weird. Take, as a perfect example, the phenomenon of hiccups — the sudden and involuntary spasm of the diaphragm muscle between regular breaths. All humans experience them, and so do other mammals and even amphibians. But we’re guessing other animals don’t approach treating hiccups in the wacky ways humans do.

For instance, some less-than-successful hiccup remedies of lore include sipping water upside down (and subsequently trying to not drown), holding one’s breath for a long time (and often hiccupping throughout the hold anyway), sucking on a peppermint, gagging oneself or pulling on the tongue, and even gobbling up a spoonful of peanut butter to help change the breathing and swallowing pattern.

The truth is those ideas are mostly a waste of breath. Luckily, one San Antonio doctor has invented a device that supposedly instantly relieves hiccups — and his invention is getting so much attention that he’s even hooked a chance to pitch the product on a new episode of ABC’s entrepreneurial-focused reality show, Shark Tank.

Dr. Ali Seifi, a neurointensivist at UT Health San Antonio and the inventor of the aptly named HiccAway, will appear on an episode of Shark Tank that airs tonight, January 21 at 7 pm.

HiccAway, a straw-like device that a hiccup sufferer uses to sip water through, is likely to wow the sharks — maybe even take their breath away? — as it is the world’s first scientifically proven medical product that safely relieves hiccups.

In fact, HiccAway was recently the subject of an article in JAMA Network Open, a publication of the Journal of the American Medical Association Network. The article addresses a four-month cross-sectional study of 249 participants from multiple countries that found that HiccAway stopped hiccups in almost 92 percent of cases and was rated a heck of a lot more favorably than home remedies.

“I believe that the science behind our product is what makes our product trustworthy and reliable. There are many hiccup remedies that are all hit and miss with no exact science to them,” Seifi says. “Some healthcare products claim they can cure a medical condition, but they don’t have scientific backup to support the product. I can confidently state that HiccAway is one of the few products on Shark Tank so far with a strong published research study as a backup.”

While hiccups are simply an annoyance for most of us, they can also be chronic for patients with cancer, meningitis, multiple sclerosis, stroke, traumatic brain or thoracic injury, and even for patients who have had surgery that requires anesthesia.

“After I witnessed my own neurology patients suffering from hiccups without an effective treatment, I was inspired to develop a safe and effective device that would be simple to use and easily available to all people,” Seifi says. “When you forcefully sip water through the device, it keeps the phrenic and vagus nerves occupied, so they don’t have enough time to cause unwanted spasms in the diaphragm. This interruption stops the hiccups.”

While the HiccAway device is already available to purchase through hiccaway.com and on Amazon, as well as at walmart.com and even in H-E-B stores throughout South Texas and at heb.com, Shark Tank (which boasts a viewing audience of about 7 million) could propel HiccAway and Seifi into a new realm of entrepreneurial success.

“For me, the experience was surreal,” says Victor Fehlberg, president and CEO of Higher Innovations Inc., which manufactures and distributes HiccAway from the Denver area. “It took so long to prepare, so much time was spent waiting, that when the pitch and appearance were finally recorded, it went too fast. It was like I was dreaming because it had been so long in the making.”

The Shark Tank appearance is likely a dream come true for Seifi and the HiccAway team — and a total breath of fresh air for the hiccup-suffering public.

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This article originally ran on CultureMap.

5 most popular innovation stories in Houston this week

what's trending

Editor's note: Another week has come and gone, and it's time to round up the top headlines from the past few days. Trending Houston tech and startup news on InnovationMap included news out of the Houston Spaceport, innovators to know, innovators within energy transition, and more.

3 Houston innovators to know this week

This week's roundup of Houston innovators includes Thomas Vassiliades of BiVACOR, Katie Mehnert of ALLY Energy, and Don Whaley of OhmConnect Texas. Courtesy photos

In this week's roundup of Houston innovators to know — the first of this new year — I'm introducing you to three local innovators across industries — from health care innovation to energy — recently making headlines in Houston innovation. Click here to continue

Space City News: Houston Spaceport receives grant, unicorn hires architecture firm

Catch up on two big pieces of news landing at the Houston Spaceport. Image via fly2houston.com

The Space City is starting 2022 off strong with news launching out of the Houston Spaceport — a 400-acre development in Southeast Houston.

The two big headlines include a unicorn company releasing the latest details of its earthbound project and fresh funds from the state to support the space ecosystem in Texas. Click here to continue reading.

Greentown Labs appoints Houston founder among 4 new board members

Four climatetech-focused individuals have been named to Greentown Lab's board. Photo via greentownlabs.com

Greentown Labs, a Massachusetts-based climatetech startup incubator with its secondary location in Houston, has appointed four new board members.

Of the new appointees, two community board members have been named in order to act as liaisons between startups and Greentown Labs. Greentown Houston's appointed representation is Nisha Desai, founder and CEO of Intention, and community member. The other new board members are Gilda A. Barabino, president of Olin College of Engineering and professor of biomedical and chemical engineering; Nidhi Thakar, senior director of resource and regulatory strategy and external engagement for Portland General Electric; and Leah Ellis, co-founder and CEO of Sublime Systems, who is the Sommerville location's community board member).

"It is important for a startup incubator to have leadership and insight from stakeholders including the public and private sector, academic and university communities," says Greentown Labs CEO Dr. Emily Reichert in a news release. "These leaders bring a wealth of knowledge relevant to not only climatetech but to our continued growth as an organization. Their voices will be important to have at the table as Greentown charts its course for the next decade of climate action." Click here to continue reading.

Texas named No. 2 state for women-led startups thanks to increased VC investment

Contributing to Texas’ better showing on this year's ranking is an increase in female-focused VC investments. Photo via Getty Images

A more than 120 percent surge in female-focused venture capital investments helped push up Texas’ ranking in an annual study of the best states for women-led startups.

In Merchant Maverick’s 2021 report on the best states for women-led startups, Texas lands at No. 2, up from No. 6 the previous year. Colorado retains its No. 1 ranking from last year. Merchant Maverick judged each state based on several gender-specific metrics, such as VC funding. Click here to continue reading.

Energy transition innovator shares how Houston could be a biomanufacturing hub​

Moji Karimi joins InnovationMap to discuss how Cemvita Factory has deployed its recent investment funding and what's next for the company and Houston as a whole when it comes to biomanufacturing. Photo courtesy of Cemvita

Moji Karimi and his sister Tara had the idea for a company that could transform carbon emissions and mitigate new damage to the environment. Only, it seems, they were a bit ahead of their time.

Houston-based Cemvita Factory, founded in 2017, uses synthetic biology and take carbon emissions and transform them into industrial chemicals. However, it's only been since recently that the conversation on climate change mitigation has focused on carbon utilization.

"I think people are realizing more about the importance of really focusing on carbon capture and utilization because fossil fuels are gonna be here, whether we like it or not, for a long time, so the best thing we could do is to find ways to decarbonize them," Moji Karimi, co-founder and CEO, tells InnovationMap. "There's been this focus around carbon capture and storage, and I think the next awakening is going to be utilization." Click here to continue reading.

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