Houston beauty startup raises $1M, medtech accelerator opens apps, and more local innovation news

short stories

From research and venture capital funding to startup growth and accelerator applications opened, here's what you need to know in Houston innovation news. Photo via Getty Images

The month of May has started strong with Houston innovation news, and there might be some headlines you might have missed.

In this roundup of short stories within Houston startups and tech, local universities share big moves in cybersecurity and plant research, a Houston entrepreneur raises extra seed funding, and more.

Houston medical technology accelerator opens applications

This medtech startup accelerator has applications open. Graphic via proximacro.com

M1 MedTech, Proxima Clinical Research's medical technology accelerator is accepting applications for its fall cohort. The program is seeking five to seven early-stage medical device companies for the three-month program. The cohort companies will have investment opportunities up to $100,000 as a combination of both cash and in-kind services.

“Our program is unique in that it combines acceleration capital, company building expertise, and the regulatory and clinical services of a top CRO,” says Larry Lawson, a venture partner and investor with M1, in the news release. “Access to the M1 founders’ network, both within and outside of the Texas Medical Center, sets these companies up for success. There’s no better group to build a MedTech company with, period.”

M1 MedTech, which was announced last year, was created to support early-stage medical device companies with a unique coaching process that will include a curated educational program, interactive workshops where participants can continually build out specific company deliverables, and tailored one-on-one mentoring.

“Many MedTech companies are launched by innovative first-time founders with strong scientific and medical expertise, but who have never taken a regulated product to market or built a business. After working with so many companies at various stages of this journey to market, both with Proxima CRO and with accelerators from across the country, we realized there was a gap that needed to be filled for these rising founders. They not only need regulatory and clinical assistance from experts with hundreds of success stories in this field, we found they also need assistance with design, manufacturing, business, IP, and so much more,” says Isabella Schmitt, RAC, Director of Regulatory Affairs for Proxima CRO and Principle at M1. “These rising founders need to know what they don’t know; so, we put a lot of thought into what emerging companies and rising executives really need, and from that, we built the M1 curriculum.”

Applications will remain open until May 31. To apply for the Fall 2022 cohort or to learn more about M1 MedTech, visit m1medtech.com.

Houston entrepreneur adds $1M to seed round

Houston-based Upgrade has raised additional seed funding. Photo via LinkedIn

Houston-based Upgrade Boutique — which uses technology to connect women with high-quality wigs and hair extensions — extended its seed round by $1 million, Fast Company reported. The round's initial seed leaders included Houston-based venture capital firms Artemis Fund and Mercury Fund, as well as Logitech president and CEO Bracken P. Darrell and ANIM.

“This [investment] will enable us to scale even faster and continue to invest in tools and resources that will improve the consumer experience, and help stylists operate more efficiently,” Winters tells Fast Company. “Based on feedback from the stylists on our platform, we see this as a natural development in the company’s evolution.”

University of Houston joins cybersecurity initiative

UH joins group that's advancing cybersecurity. Image via Getty Images

The University of Houston has joined a consortium that's funded by the U.S. Department of Defense (DoD) to launch a virtual institute that will recruit and train the next cybersecurity generation that will protect entities from cyber warfare, cyber espionage, and attacks on the electromagnetic spectrum.

The virtual institute is called VICEROY — Virtual Institutes for Cyber and Electromagnetic Spectrum Research and Employ — DECREE and will be led by Northeastern University and offered across five universities, including UH, Northern Arizona University, the University of Texas at Austin, and the University of South Carolina.

“The VICEROY DECREE virtual institute consortium model is transformational. It brings together the best offerings from multiple institutions to meet the workforce training needs in these domains," says Hanadi Rifai, Moores Professor of civil and environmental engineering and UH team lead on the project, in the news release.

One major focus for the program is the electromagnetic spectrum, which includes radio waves, and is a critical enabler for communications, navigation, radar, training and other military operations. The DoD has been seeking to hire more than 8,000 cyber workers to help defend the virtual space.

"We recognize the importance and need for workforce training in cybersecurity, electromagnetism, cryptography and data science. These are areas of specific focus and expertise on our campus,” says Paula Myrick Short, UH senior vice president for academic affairs and provost, in the release.

The two-year program starts in fall 2022 and is funded by a $1.5 million award from the Griffiss Institute, a nonprofit talent and technology accelerator for DoD and its academic, government, and industry partners around the world.

Local composting company moves into new Houston space and expands to Austin

Moonshot has expanded locally and statewide. Photo courtesy of Moonshot

Houston-based Moonshot Composting has announced its relocation to a 8,225-square-foot space in Northside Village at 1410 Bigelow St. The former Yellow Cab outpost is over five times the size of the originally location.

Additionally, this month Moonshot will open its doors in the greater Austin area with a facility in Creedmoor, just south of Austin. Moonshot's first commercial customer was Austin-headquartered Tacodeli.

The company has grown its business to nearly 500 subscribers, including 40 commercials accounts, as well as seven full-time and four part-time employees. Moonshot is diverting 30,000 pounds of food waste a week, with a total of nearly 1,000,000 pounds diverted since July 2020, per a news release.

“We are excited about our growth and all the individuals and companies getting on board to get food waste out of landfills and onto composting sites,” says Chris Wood, Moonshot principal and co-founder, in the release. “Our new space will make for more efficient operations all around.”

Moonshot Composting's commercial subscribers include Rice University, Houston Baptist University, The Awty International School, ConocoPhillips, Snooze Eatery, Ostia, and Amli Residential.

Rice University biologist wins NIH award

This Rice University scientist has received national recognition for her work plant cell analysis. Photo courtesy of Rice

A Rice University postdoctoral fellow and molecular and cell biologist has received a prestigious National Institutes of Health award.

Durre Muhammad of Rice Academy won the MOSAIC (Maximizing Opportunities for Scientific and Academic Independent Careers) K99/R00 award, which is intended to help postdoctoral researchers transition into careers while enhancing diversity within the academic biomedical research workforce, according to a news release from Rice. She's only the fourth individual from Rice to receive this recognition.

The first two years of the award will support the biologist's work in Bonnie Bartel's lab. She is working on defining the mechanisms by which cells in plants identify and eliminate damaged or obsolete organelles known as peroxisomes, which also play important roles in human aging.

“Our lab in general works on all things peroxisome, and I mainly focus on the latter stage when it’s ready for degradation,” Muhammad says in the release. “We identify the signals and different mechanisms involved in the process of decay.”

Muhammad joined Rice in 2018. She earned her Ph.D. in plant and microbial biology at North Carolina State University and her bachelor’s degree in biological sciences from the University of Illinois Chicago. She also has her MBA from Benedictine University. She received an NSF Postdoctoral Fellowship in Biology in 2019.

“Durre is a fantastic scientist who has brought new perspectives and approaches to my lab,” says Bartel, the Ralph and Dorothy Looney Professor of BioSciences. “We are delighted that NIH has recognized her accomplishments and potential with this award.”

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Intuitive Machines forms partnership with Italian companies for lunar exploration services

to the moon

Houston-based space technology, infrastructure and services company Intuitive Machines has forged a partnership with two Italian companies to offer infrastructure, communication and navigation services for exploration of the moon.

Intuitive Machines’ agreement with the two companies, Leonardo and Telespazio, paves the way for collaboration on satellite services for NASA, a customer of Intuitive Machines, and the European Space Agency, a customer of Leonardo and Telespazio. Leonardo, an aerospace, defense and security company, is the majority owner of Telespazio, a provider of satellite technology and services.

“Resilient, secure, and scalable space infrastructure and space data networks are vital to customers who want to push farther on the lunar surface and beyond to Mars,” Steve Altemus, co-founder and CEO of Intuitive Machine, said in a news release.

Massimo Claudio Comparini, managing director of Leonardo’s space division, added that the partnership with Intuitive Machines is a big step toward enabling human and robotic missions from the U.S., Europe and other places “to access a robust communications network and high-precision navigation services while operating in the lunar environment.”

Intuitive Machines recently expanded its Houston Spaceport facilities to ramp up in-house production of satellites. The company’s first satellite will launch with its upcoming IM‑3 lunar mission.

Intuitive Machines says it ultimately wants to establish a “center of space excellence” at Houston Spaceport to support missions to the moon, Mars and the region between Earth and the moon.

Houston hospitals win $50M grant for ibogaine addiction treatment research

ibogaine funding

The Texas Health and Human Services Commission has awarded $50 million to UTHealth Houston in collaboration with The University of Texas Medical Branch at Galveston (UTMB Health) to co-lead a multicenter research trial to evaluate the effect of ibogaine, a powerful psychoactive compound, on patients suffering from addiction, traumatic brain injury and other behavioral health conditions.

The funding will establish a two-year initiative—known as Ibogaine Medicine for PTSD, Addiction, and Cognitive Trauma (IMPACT)—and a consortium of Texas health institutions focused on clinical trials and working toward potential FDA-approved treatments.

The consoritum will also include Texas Tech University, Texas Tech University Health Sciences Center El Paso, The University of Texas at Austin, The University of Texas Health Science Center at San Antonio, The University of Texas at Tyler, The University of Texas Rio Grande Valley, Texas A&M University, The University of North Texas Health Science Center, Baylor College of Medicine and JPS Health Network in Dallas.

Ibogaine is a plant-based, psychoactive substance derived from the iboga shrub. Research suggests that the substance could be used for potential treatment for patients with traumatic brain injuries, which is a leading cause of post-traumatic stress disorders. Ibogaine has also shown potential as a treatment for addiction and other neurological conditions.

UTHealth and partners will focus on ways that ibogaine can treat addiction and associated conditions. Meanwhile, UT Austin and Baylor College of Medicine will concentrate on using it to treat traumatic brain injury, especially in veterans, according to a news release from the institutions.

The consortium will also support drug developers and teaching hospitals to conduct FDA-approved clinical trials. The Texas Health and Human Services Commission will oversee the grant program.

“This landmark clinical trial reflects our unwavering commitment to advancing research that improves lives and delivers the highest standards of care,” Dr. Melina Kibbe, UTHealth Houston president and the Alkek-Williams Distinguished Chair, said in the news release. “By joining forces with outstanding partners across our state, we are building on Texas’ tradition of innovation to ensure patients struggling with addiction and behavioral health conditions have access to the best possible outcomes. Together, we are shaping discoveries that will serve Texans and set a model for the nation.”

The consortium was authorized by the passage of Senate Bill 2308. The bill provides $50 million in state-matching funds for an ibogaine clinical trial managed by a public university in partnership with a drug company and a hospital.

“This is the first major step towards the legislature’s goal of obtaining FDA approval through clinical trials of ibogaine — a potential breakthrough medication that has brought thousands of America’s war-fighters back from the darkest parts of depression, anxiety, PTSD, and chronic addiction,” Texas Rep. Cody Harris added in the release. “I am excited to walk alongside UTHealth Houston and UTMB as these stellar institutions lead the nation in a first-of-its-kind clinical trial in the U.S.”

Recently, the University of Houston also received a $2.6 million gift from the estate of Dr. William A. Gibson to support and expand its opioid addiction research, which includes the development of a fentanyl vaccine that could block the drug's ability to enter the brain. Read more here.

Tesla no longer world's biggest EV maker as sales fall for second year

Tesla Talk

Tesla lost its crown as the world’s bestselling electric vehicle maker as a customer revolt over Elon Musk’s right-wing politics, expiring U.S. tax breaks for buyers and stiff overseas competition pushed sales down for a second year in a row.

Tesla said that it delivered 1.64 million vehicles in 2025, down 9% from a year earlier.

Chinese rival BYD, which sold 2.26 million vehicles last year, is now the biggest EV maker.

It's a stunning reversal for a car company whose rise once seemed unstoppable as it overtook traditional automakers with far more resources and helped make Musk the world's richest man. The sales drop came despite President Donald Trump's marketing effort early last year when he called a press conference to praise Musk as a “patriot” in front of Teslas lined up on the White House driveway, then announced he would be buying one, bucking presidential precedent to not endorse private company products.

For the fourth quarter, Tesla sales totaled 418,227, falling short of even the much reduced 440,000 target that analysts recently polled by FactSet had expected. Sales were hit hard by the expiration of a $7,500 tax credit for electric vehicle purchases that was phased out by the Trump administration at the end of September.

Tesla stock fell 2.6% to $438.07 on Friday.

Even with multiple issues buffeting the company, investors are betting that Tesla CEO Musk can deliver on his ambitions to make Tesla a leader in robotaxi services and get consumers to embrace humanoid robots that can perform basic tasks in homes and offices. Reflecting that optimism, the stock finished 2025 with a gain of approximately 11%.

The latest quarter was the first with sales of stripped-down versions of the Model Y and Model 3 that Musk unveiled in early October as part of an effort to revive sales. The new Model Y costs just under $40,000 while customers can buy the cheaper Model 3 for under $37,000. Those versions are expected to help Tesla compete with Chinese models in Europe and Asia.

For fourth-quarter earnings coming out in late January, analysts are expecting the company to post a 3% drop in sales and a nearly 40% drop in earnings per share, according to FactSet. Analysts expect the downward trend in sales and profits to eventually reverse itself as 2026 rolls along.

Musk said earlier last year that a “major rebound” in sales was underway, but investors were unruffled when that didn't pan out, choosing instead to focus on Musk's pivot to different parts of business. He has has been saying the future of the company lies with its driverless robotaxis service, its energy storage business and building robots for the home and factory — and much less with car sales.

Tesla started rolling out its robotaxi service in Austin in June, first with safety monitors in the cars to take over in case of trouble, then testing without them. The company hopes to roll out the service in several cities this year.

To do that successfully, it needs to take on rival Waymo, which has been operating autonomous taxis for years and has far more customers. It also will also have to contend with regulatory challenges. The company is under several federal safety investigations and other probes. In California, Tesla is at risk of temporarily losing its license to sell cars in the state after a judge there ruled it had misled customers about their safety.

“Regulatory is going to be a big issue,” said Wedbush Securities analyst Dan Ives, a well-known bull on the stock. “We're dealing with people's lives.”

Still, Ives said he expects Tesla's autonomous offerings will soon overcome any setbacks.

Musk has said he hopes software updates to his cars will enable hundreds of thousands of Tesla vehicles to operate autonomously with zero human intervention by the end of this year. The company is also planning to begin production of its AI-powered Cybercab with no steering wheel or pedals in 2026.

To keep Musk focused on the company, Tesla’s directors awarded Musk a potentially enormous new pay package that shareholders backed at the annual meeting in November.

Musk scored another huge windfall two weeks ago when the Delaware Supreme Court reversed a decision that deprived him of a $55 billion pay package that Tesla doled out in 2018.

Musk could become the world's first trillionaire later this year when he sells shares of his rocket company SpaceX to the public for the first time in what analysts expect would be a blockbuster initial public offering.

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