These 7 Houston startups closed millions in funding last month

Venture adventures

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.

Spark Biomedical took home first place at the Texas A&M New Ventures Competition. Courtesy of Texas A&M

Houston companies take home big prizes from a Texas A&M startup competition

Big winners

Earlier this month, 16 startups competed in the 2019 Texas A&M New Ventures Competition for more than $350,000 in cash and in-kind services — the largest pool of prizes in the contest's history.

Houston had a huge presence at TNVC this year. Several Houston startups competed in the technology- and science-focused pitch competition, and the top three prizes were claimed by Houstonians. Of the 13 health and life science companies that were named semifinalists, seven were related to the TMC Innovation Institute.

Here are the Houston companies that walked away from the TNVC with cash and/or prizes.

Spark Biomedical

Friendswood-based medical device company Spark Biomedical took home the top prize at TNVC, which came with a $50,000 check. Spark's technology uses a noninvasive neurostimulation treatment for opioid addiction recovery.

"I'm very humbled and grateful," says Daniel Powell, CEO of Spark, in a release. "This award means a lot because Texas A&M is my alma mater. Being back here is fantastic, and this win is a testament to the work we're doing and our dedication to making a difference with this product."

Spark also was recognized with the Southwest Pediatric Device Prize and the Aggie Angel Network Investment Prize. Recently, Spark announced a partnership with another Houston startup, Galen Data.

SurfEllent

Photo via surfellent.com

Coming in at No. 2 overall and receiving a $35,000 prize was Houston-based advanced coating company, SurfEllent. The company, which is based out of the University of Houston's Technology Park, has designed an anti-icing technology that can be used in any type of situation from de-icing cars to aeronautical applications.

SurfEllent was also recently recognized as one of the top three innovators at NASA's 2017 iTech forum, out of 130 entries across the US.

The company also walked away with the TEEX Product Development Center Prize.

Intelligent Implants

Photo by Cody Duty/TMC

Intelligent Implants called Houston home during the 2018 TMCx medical device cohort and still has a presence in town. The company, which created a, implantable wireless device that stimulates bone growth using electrical stimulation, claimed third prize and $25,000.

Last fall, following its success at TMCx, Intelligent Implants was named the "Most Promising Life Science Company" at the 2018 Texas Life Science Forum hosted by the Rice Alliance and BioHouston.

VenoStent

Photo via venostent.com

Another 2018 TMCx medical device cohort member competed at the TNVC and left with fresh funds. VenoStent took fifth place and a $10,000 prize. VenoStent has a device that allows a successful stent implementation on the first try, called the SelfWrap. The device is made from a shape-memory polymer that uses body heat to mold the stent into the vein-artery junction.

VenoStent, which has its headquarters in Nashville, Tennessee, also won the Ramey & Schwaller IP Legal Services Prize.

PolyVascular

Courtesy of TMC Innovation

Houston-based PolyVascular walked away a big winner of multiple prizes. The company, a member of TMCx's 2017 medical device cohort, creates polymeric transcatheter valves for children with congenital heart disease.

PolyVascular won the TNVC pitch competition, which came with a $5,000 prize. The startup also walked away with the Biotex Investment Prize, the Amerra Visualization Services Prize, and the GOOSE Society Investment Prize.

Ictero Medical

Ictero Medical, which operates out of JLABs at TMC, took home several prizes, including the Thomas | Horstemeyer IP Legal Services Prize, the TMC Accelerator Admission Prize, and the Engineering Vice Chancellor Innovation Prize — a new award that came with a $15,000 prize.

Ictero created the CholeSafe System — a minimally invasive device that treats gallstone disease patients in a procedure with "only minimal local anesthesia to defunctionalize the gallbladder without having to remove it," according to the website.

Sun Co. Tracking

Sun Co. Tracking was the other of the two startups to receive the new Engineering Vice Chancellor's Innovation Prize and its own $15,000 prize. The Houston-based company is developing shape memory alloy actuators for solar panels.

"This unique prize is intended to help the awardees access the world-class engineering capabilities at Texas A&M to obtain technical assistance toward solving their most challenging technical problems in product design, manufacturing or testing," says Dr. Balakrishna Haridas, TEES director for technology commercialization and entrepreneurship, in a release.

"These collaborations between the prize winners and Texas A&M Engineering will generate technical data to support on Small Business Innovation Research/grant proposal funding or private capital investments to the company."

GaitIQ

Photo via LinkedIn

GaitIQ is based in San Antonio, but is automatically accepted into TMCx's tenth cohort if they'd like, since the company won the TMC Investment Prize. The company, which created a primary care app that uses artificial intelligence and cloud-based technology, also won sixth place overall and $5,000.

GaitIQ also won the Ark Pharmacies, Inc. Regional Prize, the Hollinden Marketing and Strategists Services Prize, and the Schwegman Lundberg and Woessner IP Legal Services Prize.

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How a Houston company is fighting anxiety, insomnia & Alzheimer’s through waveforms

mental health

A Houston-based company is taking a medicine-free approach to target brain neurologically associated with mental illness.

Nexalin Technology’s patented, FDA-cleared frequency-based waveform targets key centers of the midbrain to support the normalization of neurochemicals through a process known as Transcranial Alternating Current Stimulation (tACS). Delivered via a non-invasive device, the treatment gently stimulates the hypothalamus and midbrain, helping to “reset networks associated with symptoms” of anxiety and insomnia. Early clinical evidence suggests this approach can promote healthier brain function and improved sleep.

Through its recently appointed scientific advisory board (SAB), Nexalin also aims to target Alzheimer’s disease with a clinical development pipeline supported by published data and internal data from studies involving its proprietary DIFS technology. Nexalin’s Gen-2 SYNC and Gen-3 Halo headset delivers the DIFS, which is a waveform that can penetrate deep brain structures implicated in cognitive decline and mental illness.

The board includes experts in neurology, neuroimaging and neurodegenerative diseases with Dr. Mingxiong Huang, Dr. David Owens, and Dr. Abe Scheer coming on board. Nexalin plans to initiate new Alzheimer’s-focused clinical studies in the Q3 2025 by incorporating cognitive testing, imaging biomarkers, and guided metrics to assess treatment efficacy and neural activation.

“I am excited to work alongside Nexalin’s leadership and fellow SAB members to help guide the next generation of non-invasive neuromodulation therapies,” Huang said in a news release. “The intersection of neuroimaging, brain stimulation, and clinical science holds enormous potential for treating neurodegenerative disease.”

Recently, Nexalin’s proprietary neurostimulation device moved forward with a clinical trial that evaluated its treatment of anxiety disorders and chronic insomnia in Brazil. The first of Nexalin’s Gen-2 15-milliamp neurostimulation devices was shipped to São Paulo, Brazil, and the study will be conducted at the Instituto de Psiquiatria University Hospital (IPq-HCFMUSP). The shipments aim to support the launch of a Phase II clinical trial in adult patients suffering from anxiety and insomnia. The Nexalin Gen-2 15-milliamp neurostimulation device has also been approved in China, Brazil and Oman. Its Gen 1 device first received FDA clearance in 2003, according to the company's website.

The company also enrolled the first patients in its clinical trial at the University of California, San Diego, in collaboration with the VA San Diego Healthcare System for its Nexalin HALO, which looks to treat mild traumatic brain injury and post-traumatic stress disorder in military personnel and the civilian population.

Nexalin previously raised $5 million through a

public stock offering.

Houston innovation hub announces first cohort for energy-focused accelerator

Powering Up

Energytech Nexus, a Houston-based hub for energy startups, has named its inaugural cohort of 14 companies for the new COPILOT accelerator.

COPILOT partners with Browning the Green Space, a nonprofit that promotes diversity, equity and inclusion (DEI) in the clean energy and climatech sectors. The Wells Fargo Innovation Incubator (IN²) at the National Renewable Energy Laboratory backs the COPILOT accelerator.

The eight-month COPILOT program offers mentorship, training and networking for startups. Program participants will be tasked with developing pilot projects for their innovations.

Two Houston startups are members of the first COPILOT class:

  • GeoFuels, housed at Houston’s Greentown Labs, has come up with a novel approach to hydrogen production that relies on geothermal power and methane decomposition.
  • PolyQor, which converts plastic waste into eco-friendly construction materials. Its flagship EcoGrete product is an additive for concrete that enhances its properties while reducing carbon emissions. PolyQor’s headquarters is at Houston’s Greentown Labs.

Other members of the COPILOT cohort are:

  • Birmingham, Alabama-based Accelerate Wind, developer of a wind turbine for commercial buildings.
  • Ann Arbor, Michigan-based Aquora Biosystems, which specializes in organic waste biorefineries.
  • Phoenix-based EarthEn Energy, a developer of technology for thermo-mechanical energy storage.
  • New York City-based Electromaim, which installs small hydro-generators in buildings’ water systems.
  • Chandler, Arizona-based EnKoat, an advanced materials company whose flagship product, the IntelliKoat System, is a patented two-layer thermal and weather barrier roof coating for flat and low-slope commercial buildings.
  • Calgary, Canada-based Harber Coatings, which manufactures electroless nickel coating and electroless nickel plating.
  • Dallas-based Janta Power, which designs and makes 3D solar towers.
  • Miami-based NanoSieve, a developer of gas remediation technology.
  • Palo Alto, California-based Popper Power, which has developed a platform that turns streetlight networks into resilient, maintenance-free distributed charging infrastructure.
  • Buffalo, New York-based Siva Powers America, developer of small wind turbines for farms, utility companies and others with annual energy needs of 300,000 to 2 million kilowatt-hours.
  • Los Angeles-based Thermoshade, which specializes in cooling panels for outdoor environments.
  • Waukesha, Wisconsin-based V-Glass, Inc., developer of a vacuum-insulated glass for affordable high-efficiency windows.

“These startups reflect the future of energy access and resilience innovation,” said Juliana Garaizar, founding partner of Energytech Nexus. “By connecting them directly with partners through COPILOT, we’re helping them overcome the ‘pilot gap’ to build solutions that scale.”

The startups will run pilot projects along the Gulf Coast for their inventions.

Rice University's top innovation exec leaving for new role at UVA

moving on

Paul Cherukuri, Rice University's top innovation executive, responsible for some of Rice’s major innovative projects like the Rice BioTech LaunchPad and Rice Nexus, will leave the university next month to accept a position at the University of Virginia.

Cherukuri, Rice’s first vice president for innovation and chief innovation officer, will become the University of Virginia’s Donna and Richard Tadler University Professor of Entrepreneurship and the school's first chief innovation officer, according to a release from Rice. Cherukuri, who has served for more than 10 years at Rice, plans to depart his current position on Sept. 30.

Adrian Trömel, associate vice president for innovation strategy and investments at Rice, will serve as interim vice president for innovation and chief innovation officer after Cherukuri departs, and as the university starts an international search for his replacement.

“We appointed Paul to build an ambitious and high-functioning innovation operation, and he has succeeded remarkably in short order,” Rice President Reginald DesRoches said in the release. “In every area, from technology translation and startup creation to commercialization and entrepreneurship training, he has led the effort to vastly improve our structure, operations and relationships. He has contributed immensely both to our strategies and their implementation across numerous areas, and we’ll miss him greatly.”

Cherukuri is a physicist, chemist and medical technology entrepreneur, and has been a member of DesRoches’ leadership team since 2022. Cherukuri served as executive director of Rice’s Institute of Biosciences and Bioengineering from 2016 to 2022, where he helped in the development of interdisciplinary translational research partnerships with federal and corporate agencies. His work helped earn nearly $37 million in funding for accelerating the development of new technologies into commercial products. In the energy transition field, Cherukuri led a $12.5 million partnership with Woodside Energy to transform greenhouse gases into advanced nanomaterials for next-generation batteries and transistors.

Initiatives the Rice Biotech Launch Pad, an accelerator focused on expediting the translation of the university’s health and medical technology; RBL LLC, a biotech venture studio in the Texas Medical Center’s Helix Park dedicated to commercializing lifesaving medical technologies from the Launch Pad; and Rice Nexus, an AI-focused "innovation factory" at the Ion; were all launched under Cherukuri’s leadership. With his work at the Ion, Cherukuri also led the announcement of a partnership with North America’s largest climate tech incubator, Greentown Labs.

“I am proud of the relentless innovative spirit we have built for Rice in Houston and around the world,” Cherukuri said in the release. “I look forward to bringing new energy and vision to UVA’s efforts in this critical space for our country, its success and future.”

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