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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SpaceX IPO set to be biggest ever and could make Elon Musk a trillionaire

IPO News

SpaceX says it plans to raise up to $75 billion when it goes public this month, setting the stage for the largest-ever stock market debut and putting Elon Musk on course to becoming the world's first trillionaire.

The company, formally known as Space Exploration Technologies Corp., said Wednesday it will sell 555.6 million shares at $135 a piece in an initial public offering. The estimated proceeds would easily top the $26 billion raised by oil giant Saudi Aramco in 2019. The offering would also give SpaceX a market value of $1.77 trillion. Only six companies in the S&P 500 are currently worth more, with Nvidia tops at $5.2 trillion.

Besides the size of the offering and the expected proceeds, SpaceX's amended prospectus updates details about how much control of the company Musk will have. As SpaceX's CEO, chief technical officer and chairman, Musk's voting power will come primarily through his ownership of 5.22 billion Class B shares, which give the holder 10 votes for every share held. According to the filing, Musk would have 82.4% of the voting power in the company.

Forbes currently values Musk's net worth at $826 billion and his stake in SpaceX at $542 billion. The estimated value of his SpaceX holdings was based on an overall value for the company of $1.25 trillion. Based on those numbers, a $1.77 trillion valuation for SpaceX would boost Musk's net worth by $223 billion, making him a trillionaire. However, much of Musk's worth is in stock that he has yet to cash in.

Even as it makes a bid for a blockbuster market debut, SpaceX is currently losing billions of dollars a year. The filing shows that the company lost $2.6 billion from operations last year on $18.7 billion in revenue, and the losses kept piling up at the start of this year, too.

Fantastical plans

Time will tell how SpaceX fares on the market. Musk's plans for the company are as fantastical as the money he hopes raise in the sale.

Colorful, even frightening in parts, the IPO document strikes a contrast with the typically dry, technical prose in IPO documents, detailing plans to use proceeds from the sale to help put men on the moon again and perhaps even Mars. In one section, it talks of a need to build "a permanent human colony" on the red planet with "at least one million inhabitants" as existential threats loom that could consign man to "the same fate as the dinosaurs."

Musk has almost equally ambitious plans for his other publicly traded company, Tesla. His goal is to transform the maker of electric vehicles into a producer of robotaxis and humanoid robots. Dan Ives of Wedbush Securities wrote in a research note that he expects Tesla and SpaceX to merge next year.

AI plays a key role

Key to the success of both companies — and any merged entity — is artificial intelligence. In its IPO filing, SpaceX says it sees potential revenue from AI of up to $26.5 trillion. But that depends on another lofty Musk ambition — putting data centers in space, which is not technologically possible at the moment.

Transforming his space company into a primarily AI-focused company will be a challenge for Musk, who started xAI in 2023 with 11 other co-founders who have all since left. Some were recruited away by rivals.

Its main AI product, the chatbot Grok, is "less impressive than anything that we see from any other major player in the space, whether that's OpenAI, or Anthropic, or (Google's) Gemini," said IDC analyst Arnal Dayaratna.

Dayaratna said that doesn't mean SpaceX doesn't have potential as a major AI player, thanks in part to its computing partnership with Anthropic and Musk's recent deal that gave SpaceX the rights to buy AI coding tool Cursor for $60 billion later this year. Folding in Cursor's capabilities would give SpaceX access to the coveted business customers now using Anthropic's Claude or OpenAI's ChatGPT.

SpaceX plans to use the net proceeds from the IPO to fund the expansion of infrastructure for its AI and rocket businesses, and to beef up the constellation of satellites that power Starlink Mobile, among other investments.

The company plans to list on the Nasdaq under the symbol "SPCX" and could begin trading as soon as the end of next week.

And SpaceX isn't the only colossal market debut investors are now bracing for. Earlier this week, Anthropic submitted a confidential filing with the U.S. Securities and Exchange Commission to officially start its own IPO clock.

OpenAI has not yet reported filing the initial SEC paperwork, but an IPO from the ChatGPT maker is widely expected.

"This listing represents the first major test for public markets after years of muted IPO activity with SpaceX paving the way for AI giants Anthropic and OpenAI to follow soon after," Ives wrote.

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Associated Press Technology Writer Matt O'Brien contributed.

New UH survey reveals concerns over AI data center growth in Houston

data findings

A new report out of the University of Houston shows that area residents remain wary of the long-term effects of operating data centers.

The recent survey from the University of Houston’s latest SPACE City Panel, conducted by the Center for Public Policy at the Hobby School of Public Affairs, shows that while 85 percent of Houston-area residents use AI, nearly 63 percent oppose the construction of AI data centers within 1 mile of their homes.

Respondents’ concerns centered around data centers’ high energy demand and the area’s power grid reliability. According to the survey, 32 percent of residents who oppose local data center projects would be more likely to support the centers if they relied on renewable energy over fossil fuels.

“Respondents understand that AI can bring economic and educational benefits, but they are also concerned about the physical infrastructure needed to fuel AI, especially data centers,” Soran Mohtadi, post-doctoral fellow at the Hobby School and a researcher on the report, said in a news release. “This physical infrastructure demands more electricity and water, leading to environmental impacts.”

Experts estimate that 6.5 gigawatts of data center capacity will be added to the Texas grid by 2030. And Houston’s data center capacity is predicted to more than double by 2028.

The Electric Reliability Council of Texas also projects electricity demand could reach 218 gigawatts by 2031, which would be more than double the record peak set in August 2023. Data centers are expected to account for 86 gigawatts of that new demand.

Survey respondents also said they are concerned about the state's future water supply, given the large amounts of water that data centers need to stay cool.

In terms of who’s responsible for that issue, 57.6 percent of respondents said they put the onus on Texas lawmakers, while 31.5 percent say tech companies should be responsible.

Additionally, more than 75 percent of respondents believed that data center developers and technology companies—not residents—should bear the cost of infrastructure upgrades to support data centers.

“Every decision legislators make has implications on residents’ everyday lives and local infrastructure now and in the future,” Maria P. Perez Arguelles, lead researcher on the report and research assistant professor at the Hobby School, added in the news release. “This issue is going to become more important in years to come, so this is just the beginning.”

Read the full report here.

Houston-born Cemvita makes breakthrough in sustainable fuel production

clean fuels

Houston-based biotech company Cemvita announced that it recently reached a critical milestone in the development of its FermOil product, which can be used to create Sustainable Aviation Fuel (SAF) and other renewable fuels at industrial scale.

The company shared in a news release that it completed a 75,000-liter industrial fermentation run at Belgium's Bio Base Europe Pilot Plant.

The campaign achieved target technical metrics for the production of FermOil, Cemvita’s renewable natural oil (RNO). FermOil is produced from industrial crude glycerin, an industrial byproduct, as opposed to traditional sugar-based feedstocks used in many bio-oil fermentation processes. It's designed to be a drop-in feedstock for creating SAFs.

Cemvita had previously advanced its FermOil production process through multiple scale-up stages before successfully reaching the 75,000-liter demonstration campaign, according to the company.

“This is not just a fermentation milestone,” Moji Karimi, CEO at Cemvita, said in the release. “It is a blueprint for how existing industrial infrastructure can evolve into circular bioeconomy infrastructure. Every biodiesel plant generating crude glycerin is a potential platform for renewable natural oil production.”

The milestone also supports the deployment of Cemvita’s industrial biomanufacturing platform, FermWorks, which integrates with existing energy and industrial infrastructure to turn waste carbon streams into SAFs and other materials. According to the release, Cemvita plans to move forward with commercial deployment discussions with partners in Brazil, Europe and in the UK. Cemvita already has a partnership with the Brazilian sustainable research institution REMA.

“We are proud to support innovative companies like Cemvita in scaling breakthrough industrial biotechnology solutions,” Hendrik Waegeman, head of business operations at Bio Base Europe Pilot Plant, added in the release. “Successfully operating at the 75,000-liter scale using a feedstock such as crude glycerin highlights both the maturity of the technology and the quality of the scale-up execution achieved by the Cemvita team.”

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This article originally appeared on our sister site, EnergyCapitalHTX.com.