Seven Houston startups are beginning October with fresh funding. Photo by Tim Leviston/Getty Images

September was a busy month for several Houston startups. Seven companies closed rounds throughout the month and are now beginning the fourth quarter of 2019 with fresh funds.

InnovationMap has rounded up these seven deals based on previous stories as well as new information. Scroll through to see which Houston startups are catching the eyes — and cashing the checks — of investors.


Galen Data

Houston-based Galen Data is growing its clientbase and just formed two new partnerships with medical device companies. Photo via galendata.com

Texas Halo Fund led a Houston startup's seed round last month. Galen Data, which uses its cloud-based software to connect medical devices, closed a $1 million seed round thanks to the fund's $250,000 investment. Kevin King, one of Texas Halo Fund's managing director, has also been named to the startup's board of directors.

According to the release, the Texas Halo Fund based its decision for the investment "on the large and growing addressable market of connected medical devices, the company's impressive management team, and post revenue status."

Galen Data's emergence comes as the market for internet-connected mobile health apps keeps growing. One forecast envisions the global space for mobile health exceeding $94 billion by 2023.

"We want to be at the forefront of that technology curve," DuPont tells InnovationMap in a previous interview. "We might be six months early, we might be a year early, but it's starting to happen."

Earlier this year, Galen Data formed strategic partnerships with medical device companies. Click here to read more about those.

SurfEllent

Photo via surfellent.com

SurfEllent, an anti-icing coating technology startup founded out of the University of Houston has raised $470,000 in funding. The company won the second place award and a total of $45,000 at the Texas A&M New Ventures competition before receiving an anonymous investment of $350,000 in seed funding. SurfEllent also received two grants: a $50,000 Small Business Innovation Research grant and a $24,999 Small Business Technology Transfer grant.

"Ice is a problem that will exist as long as we live on the earth. It impacts a wide range of things, including aircraft wings and engines, automobiles, buildings and bridges, ships and vessels, and power transmission systems," says SurfEllent Co-Founder Hadi Ghasemi, a Bill D. Cook Associate professor of mechanical engineering at the UH Cullen College of Engineering, says in a news release.

SurfEllent's product can be used in the de-icing of cars and airplane engines.

"The end goal is to improve the quality of human life," Ghasemi says in the release. "This recognition is another proof of the critical need for advanced anti-icing coating technologies and opens opportunities for collaboration with various industries and business partners."

Cemvita Factory

Cemvita Factory

In August, Occidental Petroleum's Oxy Low Carbon Ventures LLC invested in Houston-based Cemvita Factory, and in September, BHP followed suit. While Cemvita Factory isn't able to disclose how much money its raised through these partnerships, the company confirms it has closed its round of funding.

Cemvita Factory is run by a brother-sister team. Moji and Tara Karimi built the company off of Tara's research into mimicking photosynthesis. The process is able to help reduce energy company's carbon emissions.

"We have an ambitious goal to take one gigaton of CO2 out of the carbon cycle in the next decade and are very excited about being a part of Occidental's journey to become a carbon-neutral company," says Tara, co-founder and chief scientist, in a news release.

The investments will help Cemvita Factory continue to develop its biomimicry technology for oil and gas applications to reduce the volume of greenhouse gas emissions.

Read more about Cemvita's technology by clicking here.

Sourcewater

oil and gasIt might not be surprising to discover that the energy capital of the world is a hub for energy startups. Getty Images

Houston-based Sourcewater Inc., which specializes in oilfield water intelligence, closed its series A round at $7.2 million. Bison Technologies, Marubeni Corp., and major energy family offices in Houston, Midland, Dallas, and Oklahoma City contributed to the round. The funds will go toward further developing the company's technology.

"For every barrel of oil produced in the Permian Basin there are more than ten barrels of associated water that are sourced, recycled, transported, and disposed of," says Joshua Adler, founding chief executive of Sourcewater, in a news release. "When America became the world's leading energy producer last year, it also became the world's leading water producer, times ten. Water management is now the majority of upstream energy production cost, and water sourcing, recycling and disposal capacity is the primary constraint on America's energy future."

Read more about the raise here.

SEATz

sEATz

Houston startup sEATz has created a platform where fans can order just about anything their stadium has from an app. Much like any other ordering app, once the order is placed, a runner will pick up the food and deliver it to the customer for a small fee and a tip.

The startup is now preparing to scale up from seven venues to 10 before the year is over as well as launching a new version of the app thanks to an oversubscribed near $1.3 million seed round led by Houston-based Valedor Partners. Houston-based Starboard Star Venture Capital also contributed to the round. SEATz has plans to launch its Series A round before the new year.

"We're building enterprise-level, scalable in-seat ordering, delivery, and pick-up software. We'll have all the data and validation we need this fall to really start to push that out," says CEO and co-founder Aaron Knape.

Read more about sEATz's raise by clicking here.

Syzygy

Earlier this year, Trevor Best, CEO of Syzygy Plasmonics, walked away from EarthX $100,000 richer. Now, he has an even bigger check to cash. Photo via LinkedIn

Using research that came out of Rice University, Syzygy Plasmonics has developed a hydrogen fuel cell technology that produces a cheaper source of energy that releases fewer carbon emissions.

The company just closed a $5.8 million Series A round led by MIT's The Engine and Houston-based The GOOSE Society of Texas. Evok Innovations, a previous investor in the company, and angel investors from the Creative Destruction Lab also contributed to the round.

"We're starting to solidify relationships and get customers ready," CEO Trevor Best tells InnovationMap.

Read more about Syzygy's technology by clicking here.

Topl

blockchain

Houston-based Topl can track almost anything using its blockchain technology. Getty Images

Houston-based Topl, a blockchain network with applications across industries, closed a 20 percent oversubscribed $700,000 seed round.

"Every investor that is invested now has focused on both the purpose and the profit, and I'm big on that," Kim Raath, president and co-founder of Topl, says.

The team has built six blockchain platforms that operate on the Topl network — two are live now, and four will go live later this year. The platforms are focused on four different areas: agriculture (tracking food products from the farm to the shelves), mining (diamonds, for instance), sustainability and impact (tracking a program to see how it succeeds), and carbon credits and renewables within the energy industry.

Click here to read more about the raise and what it means to Topl's technology.

Houston-based Sourcewater provides energy-water data technology for oil and gas companies. Getty Images

Houston energy services company closes $7.2 million series A round

Money moves

A Houston company has some fresh funds to spark some growth. Sourcewater Inc., which specializes in oilfield water intelligence, has closed its series A round at $7.2 million. Bison Technologies, Marubeni Corp., and major energy family offices in Houston, Midland, Dallas, and Oklahoma City contributed to the round.

"For every barrel of oil produced in the Permian Basin there are more than ten barrels of associated water that are sourced, recycled, transported, and disposed of," says Joshua Adler, founding chief executive of Sourcewater, in a news release. "When America became the world's leading energy producer last year, it also became the world's leading water producer, times ten. Water management is now the majority of upstream energy production cost, and water sourcing, recycling and disposal capacity is the primary constraint on America's energy future."

Sourcewater's data-driven technology incorporates satellite imagery analytics, government databases, market research, IoT sensors, as well as its own online water marketplace to provide important data to its customers.

"Sourcewater has worked for over five years to become the trusted market intelligence provider at the center of the energy-water nexus," Adler continues.

The funds will go toward further developing the company's technology.

"With this funding we will continue to build the best data science and engineering team in Houston, develop the most timely, complete and accurate data gathering and analysis systems for upstream water and energy markets, and deliver even more value and insight to our customers," Adler says in the release. "Our whole team is grateful that we have been able to earn the trust and respect of so many of the leading companies in our industry, and we are excited to have the resources to serve them even better."

Oklahoma City-based Bison Technologies, which contributed to the round, is among Oklahoma's largest water infrastructure, logistics, and solutions providers.

"Having built the top water midstream, infrastructure and logistics company in Oklahoma, we are well aware of the critical importance of accurate, timely and complete water market data for our business and investment decisions," says CEO North Whipple, in the release. "Sourcewater is without question the innovation leader in the oilfield water data space, and we are excited to support their growth with our strategic capital, expertise and relationships."

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Annual Houston student startup competition doles out over $1.5M in cash, investment prizes

winner, winner

For the 24th year, the Rice Alliance for Technology and Entrepreneurship hosted its Rice Business Plan Competition, facilitating over $1.5 million in investment and cash prizes to the top teams.

The 42 startups competing this year, which were announced earlier this year and included teams from around the world, participated in the three-day event that culminated in a reception on Saturday, April 6. The companies were divided into five categories: Energy, Cleantech and Sustainability; Hard Tech; Life Sciences and Healthcare Solutions; Digital Enterprise; Consumer Products and Services.

“We award the competitors $1 million in prizes, prizes that serve as foundational capital to launch their startup,” RBPC Director Catherine Santamaria says at the awards gala April 6. “That’s a large number of prizes, but the biggest thing our startups leave with is a feeling of generosity and community from this room. This community is always ready and willing to help our founders and support our vision for the competition by investing time, money and resources in these student innovators.”

While all participating teams received $950 for being selected, several teams walked away with thousands in funding, cash, and in-kind prizes. Here's which companies won big.

MesaQuantum, Harvard University — $335,000​

MesaQuantum is developing accurate and precise chip-scale clocks. While not named a finalist, the company secured the most amount of funding across a few prizes:

  • $250,000 OWL Investment Prizes
  • $60,000 nCourage Courageous Women Entrepreneur Investment Prize
  • $25,000 Jacobs, Intuitive Machines and WRX Companies Rising Stars Space Technology and Commercial Aerospace Cash Prize

Protein Pints, Michigan State University — $251,000

The big winner of the night was Protein Pints, a high-protein, low-sugar, ice cream product from Michigan State University. Not only did the company win first place and the $150,000 GOOSE Capital Investment Grand Prize, as decided by the more than 350 judges, but it won a few other investment prizes, including:

  • $100,000 The Indus Entrepreneurs (TiE) Texas Angels Investment Prize — Protein Pints, Michigan State University
  • The Eagle Investors Prize
  • $1,000 Anbarci Family Company Showcase Prize
  • Mercury Elevator Pitch Competition Prize (Best in Consumer Products)
  • An invitation to Entrepreneur Magazine's elevator pitch show

Osphim, RWTH Aachen University —$201,000

Osphim, a data acquisition and monitoring platform from Germany, won these prizes despite not being named a finalist:

  • $200,000 Goose Capital Investment Prize
  • $1,000 Anbarci Family Company Showcase Prize
  • Mercury Elevator Pitch Competition Prize (Best in Digital)

Somnair, Johns Hopkins University — $200,000

Taking second place and a $100,000 from David Anderson, Jon Finger, Anderson Family Fund, Finger Interests, Greg Novak and Tracy Druce was Somnair is a novel non-invasive neurostimulation device for the treatment of obstructive sleep apnea. The company also won:

  • $100,000 Houston Angel Network Investment Prize
  • Mercury Elevator Pitch Competition Prize (Best in Life Science)
  • An invitation to Texas Medical Center's Accelerator Bootcamp
  • An invitation to Entrepreneur Magazine's elevator pitch show

Icorium Engineering Company, University of Kansas — $171,000

Icorium Engineering Company — a chemical engineering startup developing technologies to make sustainable, circular economies a reality for refrigerants and other complex chemical mixtures — won fifth place and a $5,000 prize sponsored by Norton Rose Fulbright, EY, Chevron Technology Ventures and Shell Ventures, as well as:

  • $100,000 OWL Investment Prizes
  • $40,000 nCourage Courageous Women Entrepreneur Investment Prize
  • $25,000 from Finger Interests, the Anderson Family Fund at the Greater Houston Community Foundation, Greg Novak and Tracy Druce
  • $1,000 Anbarci Family Company Showcase Prize
  • Mercury Elevator Pitch Competition Prize (Best in Energy, Sustainability)
  • An invitation to Entrepreneur Magazine's elevator pitch show

Informuta, Tulane University — $70,000

Informuta's proprietary technology leverages DNA sequencing to predict if bacteria will respond to different antibiotics or, for the very first time, develop future resistance thus causing treatment failure. The company won fourth place and a $5,000 prize sponsored by Norton Rose Fulbright, EY, Chevron Technology Ventures and Shell Ventures.

  • $40,000 Pearland EDC Spirit of Entrepreneurship Cash Prize
  • $25,000 from Finger Interests, the Anderson Family Fund at the Greater Houston Community Foundation, Greg Novak and Tracy Druce

EndoShunt Medical, Harvard University — $55,000

EndoShunt created a rapid, targeted blood flow control device to be use in emergency or trauma settings. The company won sixth place and the $5,000 prize, sponsored by Norton Rose Fulbright, EY, Chevron Technology Ventures and Shell Ventures, as well as:

  • $25,000 Southwest National Pediatric Device Consortium Pediatric Device Cash Prize
  • $25,000 from Finger Interests, the Anderson Family Fund at the Greater Houston Community Foundation, Greg Novak and Tracy Druce

Power2Polymers, RWTH Aachen University —$50,000

Tackling the challenge of forever chemicals, Power2Polymers is creating safe alternatives free of forever chemicals. The German company took third place and the $50,000 investment sponsored by Finger Interests, the Anderson Family Fund at the Greater Houston Community Foundation, Greg Novak and Tracy Druce. The company also won the Mercury Elevator Pitch Competition Prize (Best Overall).

D.Sole, Carnegie Mellon University — $30,000

D. Sole won the wild card ticket to the finals and took seventh place. The company is advancing the development of remote patient monitoring in podiatry with foot insoles designed for the early detection and monitoring of diabetic foot complications, such as ulcers and deformities. They also won $30,000 from Finger Interests, the Anderson Family Fund at the Greater Houston Community Foundation, Greg Novak and Tracy Druce.

Other prizes:

  • $25,000 New Climate Ventures Sustainable Investment Prize went to Oxylus Energy from Yale University
  • $25,000 Dream Big Ventures Latino Entrepreneur Investment Prize went to Dendritic Health AI from Northwestern University
  • $25,000 NOV Energy Technology Innovation Cash Prize went to LiQuidium from the University of Houston
  • $25,000 Urban Capital Network Diversity Investment Prize in Partnership with South Loop Venture Investment Prize went to TouchStone from University of California, Berkeley

Troubled Texans are the 10th most stressed out people in America, report finds

new report

There is a plethora of reasons to be stressed out in 2024. Among the list of grievances are budgeting woes, lapses in addressing racial inequity, a significant amount of drunk driving, and prohibitively high healthcare costs.

So it comes as no surprise that Texas was ranked the No. 10 most stressed state of 2024, according to the latest annual report from WalletHub. Texans' stress levels are only slightly better than they were in 2023, when the Lone Star State ranked No. 9.

The personal finance website compared all 50 states across 40 unique metrics to determine every state’s worries on certain issues, such as employment, finance, health, or family-related stress.

Here's how Texas performed in the major categories in the study:

  • No. 5 – Work-related stress
  • No. 8 – Family-related stress
  • No. 11 – Health- and safety-related stress
  • No. 23 – Money-related stress

Texas employees have the second-longest workweek in the nation, the report found, placing the state right behind Alaska and tied with Wyoming. Places like Houston, Corpus Christi, and San Antonio are a few of the most stressful U.S. cities for workers in 2024 (with several other Texas cities not far behind), clearly showing that there's much more work to be done to alleviate Texans' work-related stress.

Hardships with work may have an influence on Texans' ability to rest at night, as the report additionally found Texas fell behind into No. 23 for its share of adults that get adequate sleep.

Other Texas-sized stress factors like crime rates, housing affordability, health troubles, and poverty rates also put a damper on residents' well-beings. Texans have the fourth lowest credit scores in the nation, the ninth highest share of adults with fair or poor health, and the 11th highest number of residents living in poverty.

It's not just young and middle-aged adults who experience these worries, the report claimed.

"[E]very age group except people 65 and older reported being under more stress in 2023 than they were in 2019 before the pandemic," the report's author wrote.

WalletHub analyst Cassandra Happe suggested a few ways frazzled Texans can try to improve their stress levels, such as exercising, participating in hobbies, going on vacations — of course, in whatever capacity that is most accessible — and seeking help from a mental health professional.

"What many people don’t realize, though, is that changing location can also be a big stress reducer," Happe added. "For example, states that have lower crime rates, better health care, and better economies tend to have much less stressed residents."

Texans surely aren't envious of Louisiana, which traded places with Mississippi (No. 2) in 2024 to become the nation's No. 1 most stressed out state. Louisiana residents experience the third highest work- and health-and-safety-related stress, the fourth highest money-related stress, and the 10th highest family-related stress. Louisianans may want to try some breathing exercises in their spare time.

Texas residents can, however, be filled with jealousy over Minnesota (No. 50), which was crowned the least stressed out city in America. Maybe that's where Texans need to be taking vacations.

The overall top 10 most stressed states are:

  • No. 1 – Louisiana
  • No. 2 – Mississippi
  • No. 3 – Nevada
  • No. 4 – New Mexico
  • No. 5 – Arkansas
  • No. 6 – West Virginia
  • No. 7 – Alabama
  • No. 8 – Kentucky
  • No. 9 – Oklahoma
  • No. 10 – Texas
The full report and its methodology can be found on wallethub.com.

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This article originally ran on CultureMap.

3 Houston innovators to know this week

who's who

Editor's note: Welcome to another Monday edition of Innovators to Know. Today I'm introducing you to three Houstonians to read up about — three individuals behind recent innovation and startup news stories in Houston as reported by InnovationMap. Learn more about them and their recent news below by clicking on each article.


Aziz Gilani, managing director at Mercury

Aziz Gilani, managing director at Mercury, joins the Houston Innovators Podcast. Photo via LinkedIn

Aziz Gilani's career in tech dates back to when he'd ride his bike from Clear Lake High School to a local tech organization that was digitizing manuals from mission control. After years working on every side of the equation of software technology, he's in the driver's seat at a local venture capital firm deploying funding into innovative software businesses.

As managing director at Mercury, the firm he's been at since 2008, Gilani looks for promising startups within the software-as-a-service space — everything from cloud computing and data science and beyond.

"Once a year at Mercury, we sit down with our partners and talk about the next investment cycle and the focuses we have for what makes companies stand out," Gilani says on the Houston Innovators Podcast. "The current software investment cycle is very focused on companies that have truly achieved product-market fit and are showing large customer adoption." Read more.


Yaxin Wang, director of the Texas Heart Institute's Innovative Device & Engineering Applications Lab

The project is funded by a four-year, $7.8 million grant. THI will use about $2.94 million of that to fund its part of the research. Photo via texasheart.org

The United States Department of Defense has awarded a grant that will allow the Texas Heart Institute and Rice University to continue to break ground on a novel left ventricular assist device (LVAD) that could be an alternative to current devices that prevent heart transplantation and are a long-term option in end-stage heart failure.

The grant is part of the DOD’s Congressionally Directed Medical Research Programs (CDMRP). It was awarded to Georgia Institute of Technology, one of four collaborators on the project that will be designed and evaluated by the co-investigator Yaxin Wang. Wang is part of O.H. “Bud” Frazier’s team at Texas Heart Institute, where she is director of Innovative Device & Engineering Applications Lab. The other institution working on the new LVAD is North Carolina State University.

The project is funded by a four-year, $7.8 million grant. THI will use about $2.94 million of that to fund its part of the research. As Wang explained to us last year, an LVAD is a minimally invasive device that mechanically pumps a person’s own heart. Frazier claims to have performed more than 900 LVAD implantations, but the devices are far from perfect. Read more.

Atul Varadhachary, managing director of Fannin Innovation

Atul Varadhachary also serves as CEO and president of Allterum Therapeutics. Photo via LinkedIn

Allterum Therapeutics, a Houston biopharmaceutical company, has been awarded a $12 million product development grant from the Cancer Prevention and Research Institute of Texas (CPRIT).

The funds will support the clinical evaluation of a therapeutic antibody that targets acute lymphoblastic leukemia (ALL), one of the most common childhood cancers.

However, CEO and President Atul Varadhachary, who's also the managing director of Fannin Innovation, tells InnovationMap, “Our mission has grown much beyond ALL.” Read more.