From exit to corporate growth — Houston founder talks scaling his sustainable tech

Houston innovators podcast episode 93

Robert Kester joins the Houston Innovators Podcast to discuss his entrepreneurial journey. Photo courtesy of Honeywell

There are several ways for a Houston startup to make an exit — it could IPO, receive massive private equity funding, or even get acquired. It wasn't always in the plan for Robert Kester to have his startup take the acquisition route, but he saw a huge opportunity to get the technology he had worked on for a decade into the field — and he took it.

Kester co-founded Rebellion Photonics in 2010. A doctoral candidate at Rice University at the time, Kester had an idea for scaling a sensor technology that can detect chemicals. The developed device could be used to automate the process and improve safety on oil and gas sites.

"When we first got going, it was an idea on a napkin. We had no idea if it could work or not," Kester says on this week's episode of the Houston Innovators Podcast. "So getting those first pilots from companies like BP — some of these major companies believing in us and deploying the technology. We grew it to a point where we'd shown value, and we were scaling the solution."

Kester says he initially saw this application benefitting onsite safety, but it quickly evolved into being a key took to promoting sustainability in a world where climate change is increasingly on everyone's mind. The company started considering a way to get its technology to scale — and fast. In 2019, Rebellion exited in an acquisition by Honeywell.

"For us it just made sense that we could team up with Honeywell and figure out how we could scale this thing globally and quickly, so that we could help be a solution for climate change," Kester continues.

Now, as president and general manager at Honeywell Rebellion, Kester still oversees his technology and, with the support of Honeywell, is able to see it be deployed at a quick pace.

Amid the pandemic, he was even able to make a pivot with his technology. Recognizing the importance of temperature reading as an early indicator of COVID-19, Kester and his team worked to develop ThermoRebellion, a temperature scanning technology that was implemented in airports — like JFK and Boston's Logan Airport — to screen travelers.

"I think the latest statistic I heard is that we've scanned over a million passengers coming in and out of the country," Kester says. "For me, I get a lot of satisfaction out of the fact that we're working on important issues in trying to keep the country safe."

Kester shares more about what he's focused on at Honeywell Rebellion on the episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

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A temperature checking technology originally created for oil and gas industry has pivoted amid the pandemic. Photo courtesy of Honeywell

Tech giant warms up to temperature monitoring system created by Houston startup

temp tech

A Houston startup's temperature monitoring system originally developed for oil and gas facilities is being used to help companies safely get their employees back into work.

The ThermoRebellion temperature software uses technology from Houston-based Rebellion Photonics, which Honeywell acquired in December of last year. The technology uses infrared imaging technology and artificial intelligence to quickly conduct non-invasive screenings of people before they enter offices, banks, airports, as businesses begin to reopen.

Robert Kester, Rebellion Photonics founder and Honeywell president and general manager, says the ongoing health crisis called for a reimagining of the AI-driven oil and gas technology, which is used to quickly detect leaks by using a real-time monitoring platform that provides automated notifications.

"The key component is our software powered by artificial intelligence," Kester tells InnovationMap. "Our imaging systems leverage a decade of experience in the most advanced imaging technologies for gas leak detection, fire detection, and intrusion monitoring applications. The system features uncooled high-resolution FPA infrared sensors allowing for each pixel to be assessed for temperature."

As states begin to lift stay-at-home orders, a return to a new normal is expected, as people begin to go back to the workplace and have to spend time in commercial buildings surrounded by others. In Houston's Memorial Hermann Hospital, temperature scanners by Austin-based Athena Security have already been installed, minimizing contact and reducing foot traffic congestion in entrances.

"Experts believe temperature checks can become more common in public spaces," says Kester. "Our system works allows for social distancing as people don't have to queue closely. Imagine an airport, for example, it wouldn't be feasible to have passengers wait in additional long lines for temperature screening."

The ThermoRebellion system can scan individuals in groups for effective screening at a wide range of sites and venues, instantly providing temperature results in an non-invasive manner, to keep employees and customers safe from introducing and spreading coronavirus.

"It's important for people to get back to work safely, whether that's an office building or a factory, or taking a flight to meet a customer," says Kester.

Honeywell is moving the technology to its piloting phase, racing against the clock to meet the demand as businesses open for business. The system, according to Kester, is intuitive and easy to use, implementing audible and visual alarms to alert if a person has elevated body temperature. Plus, it can also be easily deployed to different access points.

The fast-tracked product couldn't have been done without the team of designers and engineers who quickly pivoted from gas imaging to body temperature solutions. The team is already recruiting potential users who are interested in implementing the system in their facilities.

By Kester's and his team's estimates, the ThermoRebllion system will be ready to deploy as early as June.

"It's going to be difficult for people to go back to busy locations without knowing that companies are taking proactive steps to protect its patrons or employees," says Kester. "We're excited to be part of the set of solutions that can help improve safety."

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Houston cardiac health startup raises $43 million series B to grow AI-backed platform

money moves

A Houston-based tech company that has a product line of software solutions for cardiac health has raised funding.

Octagos Health, the parent company of Atlas AI — a software platform for cardiac devices like pacemakers, defibrillators, ambulatory monitors and consumer wearables — has announced a $43 million series B raise that will bring their technology to many more hearts.

Morgan Stanley Investment Capital led the investment, which also included funds from Mucker Capital and other continuing strategic investors. The goal of the raise is to supply funds to accelerate Atlas AI’s growth across the United States and to expand into other areas of care, including ambulatory monitors, consumer wearables, and sleep.

"This investment will enable us to accelerate enhancements to our platform, in addition to scaling our commercial team and operations. We are currently the only company that helps cardiology practices migrate their historical data from legacy software providers and fully integrates with any EHR (exertion heart rate) system. We do this while enabling customized reporting supported by patient and practice decision-support analytics," says Eric Olsen, COO of Octagos Health, in a press release.

Octagos Health was founded by a team of healthcare pros including CEO Shanti Bansal, a cardiologist and founder of Houston Heart Rhythm, an atrial fibrillation center. The goal was to find a new way to deal with the massive amount of data that clinicians encounter each day in a way that combines software and the work of human doctors.

According to the Octagos Health website, “Our solution allows clinicians to focus on other ways of delivering meaningful healthcare and more efficiently manage their remotely monitored patients.”

It works thanks to customizable reporting features that allow patients’ healthcare teams to get help while monitoring them, but to do it precisely as they would if they were crunching numbers themselves.

"We are excited to partner with Octagos Health and support their vision of transforming cardiac care," says Melissa Daniels, managing director of Morgan Stanley Expansion Capital. "Octagos Health has demonstrated exceptional growth and innovation in a critical area of healthcare. We believe their platform and vertically integrated software and services significantly improve patient care and streamline cardiac monitoring processes for healthcare providers."

Will Hsu, co-founder and partner of Mucker Capital, agrees. “Octagos Health is poised for scale – industry leading gross margins, a very sticky product that doctors and clinical staff love, and a market ready for disruption with artificial intelligence. This is the new wave for diagnostic care,” he says. And with this raise, it will be available to even more clinicians and patients across the country.

Houston biotech company expands leadership as it commercializes sustainable products

joining the team

Houston-based biotech company Cemvita recently tapped two executives to help commercialize its sustainable fuel made from carbon waste.

Nádia Skorupa Parachin came aboard as vice president of industrial biotechnology, and Phil Garcia was promoted to vice president of commercialization.

Parachin most recently oversaw several projects at Boston-based biotech company Ginkjo Bioworks. She previously co-founded Brazilian biotech startup Integra Bioprocessos.

Parachin will lead the Cemvita team that’s developing technology for production of bio-manufactured oil.

“It’s a fantastic moment, as we’re poised to take our prototyping to the next level, and all under the innovative direction of our co-founder Tara Karimi,” Parachin says in a news release. “We will be bringing something truly remarkable to market and ensuring it’s cost-effective.”

Moji Karimi, co-founder and CEO of Cemvita, says the hiring of Parachin represents “the natural next step” toward commercializing the startup’s carbon-to-oil process.

“Her background prepared her to bring the best out of the scientists at the inflection point of commercialization — really bringing things to life,” says Moji Karimi, Tara’s brother.

Parachin joins Garcia on Cemvita’s executive team.

Before being promoted to vice president of commercialization, Garcia was the startup’s commercial director and business development manager. He has a background in engineering and business development.

Founded in 2017, Cemvita recently announced a breakthrough that enables production of large quantities of oil derived from carbon waste.

In 2023, United Airlines agreed to buy up to one billion gallons of sustainable aviation fuel from Cemvita’s first full-scale plant over the course of 20 years.

Cemvita’s investors include the UAV Sustainable Flight Fund, an investment arm of Chicago-based United; Oxy Low Carbon Ventures, an investment arm of Houston-based energy company Occidental Petroleum; and Japanese equipment and machinery manufacturer Mitsubishi Heavy Industries.

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This article originally ran on EnergyCapital.

3 Houston innovators to know this week

who's who

Editor's note: Every week, I introduce you to a handful of Houston innovators to know recently making headlines with news of innovative technology, investment activity, and more. This week's batch includes a logistics startup founder, a marketing expert, and a solar energy innovator.

Matthew Costello, CEO and co-founder of Voyager Portal

Houston logistics SaaS innovator is making waves with its expanded maritime shipping platform. Photo courtesy of Voyager

For several years now, Matthew Costello has been navigating the maritime shipping industry looking for problems to solve for customers with his company, Voyager Portal.

Initially, that meant designing a software platform to enhance communications and organization of the many massive and intricate global shipments happening every day. Founded in 2018 by Costello and COO Bret Smart, Voyager Portal became a integral tool for the industry that helps users manage the full lifecycle of their voyages — from planning to delivery.

"The software landscape has changed tremendously in the maritime space. Back in 2018, we were one of a small handful of technology startups in this space," Costello, who serves as CEO of Voyager, says on the Houston Innovators Podcast. "Now that's changed. ... There's really a huge wave of innovation happening in maritime right now." Read more.

Arielle Rogg, principal and founder of Rogg Enterprises

Arielle Rogg writes in a guest column for InnovationMap about AI in the workforce. Photo via LinkedIn

Arielle Rogg isn't worried about artificial intelligence coming for her job. In fact, she has three reasons why, and she outlines them in a guest column for InnovationMap.

"The advent of AI pushes us humans to acquire new skills and hone our existing abilities so we can work alongside these evolving technologies in a collaborative fashion. AI augments human capabilities rather than replacing us. I believe it will help our society embrace lifelong learning, creating new industries and jobs that have never existed before," she writes in the piece. Read more.

Nathan Childress, founder of Solar Slice

Solar Slice Founder Nathan Childress says his new venture offers a fulfilling way to encourage and promote solar energy and a greener planet. Photo via LinkedIn

Nuclear engineer and entrepreneur Nathan Childress wants consumers to capture their own ray of sunlight to brighten the prospect of making clean energy a bigger part of the power grid. That's why he founded Solar Slice. The new venture offers a fulfilling way to encourage and promote solar energy and a greener planet.

Although trained in nuclear power plant design, solar power drew his interest as a cheaper and more accessible alternative, and Childress tells InnovationMap that he thinks that the transition to cleaner energy, in Texas especially, needs to step up.

Recent studies show that 80 to 90 percent of the money invested into fighting climate change “aren’t going to things that people actually consider helpful,” Childress says, adding that “they’re more just projects that sound good, that are not actually taking any action." Read more.

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