Here's some local Houston startup news you may have missed. Photo by Zview/Getty Images

Houston startups across industries have been moving and shaking these past few weeks, and there's a chance you may have missed some of these Houston innovation stories.

In this roundup of short stories within Houston innovation, two Houston-based e-commerce startups announce big news, a tech company pitches abroad, and more.

Houston industrial e-commerce startup expands into the construction industry

Houston-based GoExpedi has expanded its business. Photo by Colt Melrose for GoExpedi

GoExpedi, an end-to-end digital supply chain and data analytics company with solutions within procurement and delivery of maintenance, repair, and operations products for heavy industries, announced it has expanded into the commercial construction space.

Builders partnering with GoExpedi now have access to more than 200,000 critical parts and supplies, according to a news release from the company.

"Access to needed tools and materials in construction is already a challenge in today's supply chain environment," says GoExpedi CEO Tim Neal in the release. "Expanding into commercial construction is a natural extension of our capabilities as we already provide significant operational and cost value with our digital platform across similar heavy sectors. We're quickly ramping up the number of construction groups we're working with, giving them a better way to plan for and order materials to help avoid costly building delays."

GoExpedi raised a $25 million series C round in 2020 and is deploying these funds as the company grows. Earlier this year, the startup opened a new industrial and energy MRO warehouse in Pittsburgh, Pennsylvania

UH business college snags prestigious grant

Dean​ Paul Pavlou leads the University of Houston's Bauer College of Business.

The University of Houston's C. T. Bauer College of Business is partnering with Texas A&M University and Temple University to develop and implement an energy risk tracking and alert system in Houston and San Antonio. The research project recently received $1.5 million in grant funding from the National Science Foundation. The grant is part of the Smart and Connected Communities program.

"Advanced Learning for Energy Risk Tracking" (ALERT) is designed to prevent and mitigate costly and potentially devastating electricity outages — such as the 2021 winter storm — according to a news release from UH. Bauer College Dean and Cullen Distinguished Chair Professor Paul A. Pavlou is one of co-investigators.

"If there is one positive outcome of the winter storm, it certainly created an awareness for many people that we need to invest more in intelligent systems that can minimize the huge costs and negative impacts that electricity outages can have on people and local communities," he says in the release. "The idea of this research is to create a data-driven system to reduce, predict, and mitigate costly power outages, especially in traditionally disadvantaged communities that usually suffer the most from power outages."

The ALERT system depends on data generated by utilities, city and county governments, school districts and others, enabling preemptive repairs and allowing officials to react more quickly in the event of unforeseen outages, per the release, and a test version of the resource may begin operating in San Antonio as soon as 2022, followed by a trial in Houston.

"It's a technologically very advanced solution, but the beauty of it is that we are working with local communities to acquire the data, to enhance the system and also feed the data back to the community to actually minimize the impact on the people who suffer most from power outages," Pavlou says in the release.

Houston health tech company receives new investment

Dan Purvis, CEO of Velentium

A Houston company has fresh funding. Photo courtesy of Velentium

Velentium has announced a growth recapitalization in partnership with Connecticut-based Great Point Partners. Houston-based Velentium is an engineering firm specializing in the design and manufacturing of therapeutic and diagnostic active medical devices, and GPP is a leading health care investment firm. The new investment allows Velentium to scale national operations.

"When Great Point reached out to us earlier this year, we were immediately impressed with their deep knowledge of our market and track record building businesses," says Dan Purvis, CEO of Velentium, in a news release. "We continue to build an organization that improves the lives of people and families by helping to bring transformative medical devices to market, and Great Point is uniquely positioned to enable us to do that at an even larger scale. Today, we are starting a new chapter and taking a crucial step in realizing our dream of having 1,000 families as part of our organization."

Velentium was created to advance the next breakthrough medical device technology — all within the same company. Innovators and inventors don't have to go through the processes — from cybersecurity to manufacturing — by themselves.

"Our dream from day one was to create a one-stop shop here in Houston where new startups with IP can come to us and know that start to finish they would have their commercial device ready for approval with the FDA and that we were going to handle everything," Purvis previously told InnovationMap.

With GPP's investment, Velentium is equipped to augment its end-to-end solutions and its nearshore and offshore manufacturing capabilities, per the release.

"Velentium has played a pivotal role in the development of groundbreaking neuromodulation devices that have led to important medical technology advancements," says GPP Managing Director Adam Dolder in the release. "We look forward to being partners with Dan, Tim and the entire team and helping them to achieve their goals for the company."

Houston startup tapped for European pitch competition

Jessica Reitmeier, is the co-founder of Pandata Tech. Photo courtesy of Pandata Tech

Houston-based Pandata Tech is one of 29 companies from around the globe competing in Scotland's Net Zero Technology Centre's Clean Energy Start-up Pitch Battle finals. Each featured company has a technology solution that can help accelerate the transition to a net zero energy industry, and 10 finalists will be selected to pitch at COP 26 UN Climate Change Conference in Glasgow, Scotland, on November 2, 2021.

"These start-ups are truly inspiring. Offering extraordinary innovation and ambition, all these teams are developing technologies that have significant potential to reduce greenhouse gas emissions," says Mark Anderson, TechX Director of Net Zero Technology Centre.

The Ion Houston nominated Pandata Tech to be part of the competition because of the startup's previous work in offshore energy and geothermal utility distribution.

"When we think about reducing C02 emissions by 50 percent or more by 2030 and the data required to meet that mark, it's simple — humans and algorithms need data they can trust," says Jessica Reitmeier, co-founder of Pandata.

Houston e-commerce services provider announces strategic partnership

Houston-based e-commerce software startup and Amazon competitor raises $25M in its series A

Cart.com has a new partner, which has increased access to tools for its clients. Photo via cart.com

Houston-based Cart.com, an end-to-end ecommerce services provider and Amazon competitor, announced a strategic partnership with Clearco, the world's largest ecommerce investor. With the new partnership, Cart.com's clients will receive access to Clearco's capital financing and Clearco's portfolio of over 5,500 companies will have access to Cart.com's end-to-end e-commerce platform.

"We're committed to making all aspects of running an ecommerce business streamlined and hassle-free — and that includes getting access to the capital needed to fuel growth," says Omair Tariq, Cart.com CEO, in a news release. "Through this partnership we're giving online sellers frictionless access to the resources they need to scale up, while allowing founders to stay laser-focused on serving their customers and building their brand."

The two companies share the mission to democratize ecommerce by delivering easier, more streamlined access to critical resources — including capital, services, and domain-specific information — which have previously only been available to companies like Amazon.

"Like Cart.com, we envision a world where founding a business is accessible to everyone, and where founders can access essential capital without having to jump through endless hoops," says Andrew D'Souza, Clearco CEO, in the release. "By partnering with Cart.com, Clearco companies will be able to access the platform's end-to-end ecommerce engine — including online store technology, integrated fulfillment services, and customer service support — to scale their ecommerce growth."

This week's roundup of Houston innovators includes Dan Purvis of Velentium, Tony Sanchez of OneNexus Environmental, and Kevin Doffing of Energy Capital of the Future. Courtesy photos

3 Houston innovators to know this week

who's who

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Dan Purvis, CEO and founder of Velentium, is leading his growing company with culture in mind. Photo courtesy of Velentium

Local tech exec expands med device company into oil and gas in a 'uniquely Houston' way

HOUSTON INNOVATORS PODCAST EPISODE 90

When asked about founding his company, the first thing Dan Purvis wants to talk about is the culture.

"The technology of today and the technology of 24 months from now will be very different," Purvis, CEO and founder of Houston-based Velentium, says on this week's episode of the Houston Innovators Podcast. "Being culture-forward allows us to make sure that the people we have on staff are able to flex with the industry."

Velentium was created to advance the next breakthrough medical device technology — all within the same company. Innovators and inventors don't have to go through the processes — from cybersecurity to manufacturing — by themselves.

"Our dream from day one was to create a one-stop shop here in Houston where new startups with IP can come to us and know that start to finish they would have their commercial device ready for approval with the FDA and that we were going to handle everything," Purvis explains.

These days, cybersecurity is top of mind for Velentium, as the technology Purvis and his team are working with include life and death situations. While IT and other software security is important, protecting patients using new medical devices is paramount.

"If you have a dog in your backyard and you have one hole in your fence, you're dog is going to get out," Purvis says."You can't have any holes in that fence. … Our design allows for that protection."

Following an acquisition of Magnolia, Texas-based Oasis Testing, a designer of automated test systems for the energy and manufacturing industries in January, Velentium has expanded to also work in oil and gas technology development. While completely different fields, Velentium says the entrance into this energy tech market has been smooth sailing.

"We really find that both sides of the company cross pollinate quite a bit, and I think that's something that's uniquely Houston," Purvis says.

He shares more about the expansion and how his company continues to grow on the episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

A new medical device created in Houston is revolutionizing opioid withdrawal treatment. Photo via sparkbiomedical.com

Houston med-tech companies partner on wearable device for opioid withdrawal

treating addiction

Houston-based Spark Biomedical has created a revolutionary wearable device that provides unprecedented levels of opioid withdrawal relief.

The device known as the Sparrow Therapy System is worn over the ear for five to seven days and sends mild electrical signals to trigger cranial nerves that sit near the skin's surface.

Once activated, the nerves release endorphins that the body has stopped producing on its own during opioid use. The endorphins satisfy the opioid receptors and in turn reduce or prevent the intense symptoms that often come along with opioid withdrawal. According to Spark BioMed CEO Daniel Powell, the technology also helps patients better control their "flight or fight mechanisms," allowing them to make clearer, more logical decisions as they come off of the drug.

"If you ask 100 people who've gone through opioid withdrawal, I would bet 99 of them will tell you they thought they were going to die," Powell says. "Giving them the ability to manage that is huge. It's the first step towards addiction recovery. It's not solving the addiction, but it is an absolute barrier to move forward."

The product was approved by the FDA in January of 2020, after clinical trials showed that the Sparrow could meaningfully reduce withdrawal symptoms in the first hour of use. According to Powell, roughly a third of patients in the trial were completely out of withdrawal and patients' Clinical Opioid Withdrawal Scales scores reduced by more than 53 percent across the board.

Spark, which won Venture Houston's inaugural pitch competition earlier this year, partnered with Houston-based Velentium (which also happened to grow 93 percent last year after partnering with General Motors on Project V) to bring the product from concept to commercial physician prescribed product. "We needed a more sophisticated design house to help us finish it," Powell says.

The up-and-comers were connected through one of Spark's investors. Powell, in a previous career, had also sold a neurostimulator that Velentium CTO Randy Armstrong had invented.

"You're seeing more and more Houston centric medical innovation than we've ever seen before," says Velentium CEO Dan Purvis. "And the cool thing about that is there ends up being a camaraderie amongst entrepreneurs, medical researchers and scientists."

And though the release of Sparrow marks a huge milestone, neither Spark of Velentium are stopping there. Moving forward, Spark aims to conduct a massive study on how a similar technology, dubbed the Roo, can aid infants born to opioid-dependent mothers wean from the drug.

The company also aims to create a next generation Sparrow with the help of Velentium, and will look at long-term uses of the product. Powell says that Spark will look to determine if the product can prevent relapses and help to cure addiction when worn daily or regularly.

"Our big, crazy, ambitious goal is can we actually help people recover from addiction," Powell says. "We're really not addressing psychology, that's going to be in cognitive behavioral therapy. But if we can remove the neurological results of drug use, we think we can make at least start to stack the deck in the favor of the patient versus having the deck stacked completely against them all the time."

This week's roundup of Houston innovators includes Niloufar Molavi of Central Houston Inc., Dan Purvis of Velentium, and Chris Staffel of Goose Capital. Courtesy photos

3 Houston innovators to know this week

who's who

Editor's note: In the week's roundup of Houston innovators to know, I'm introducing you to three innovators — each either new to their role or with a bit of acquistion news.

Niloufar Molavi, board chair at Central Houston Inc.

Niloufar Molavi will lead Central Houston Inc.'s board this year — and she's got fostering innovation on her to-do list. Photo courtesy of CHI

Last week, Nilofar Molavi assumed the role of board chair for Central Houston. She leads PwC's Global energy practice and has served on the CHI board since 2011 and chairs the organization's innovation committee. CHI was among the partners behind the Downtown Launchpad, a 17,000-square-foot innovation hub, which had its grand opening last fall.

"With the fall 2020 opening of Downtown Launchpad, we have deepened our investment in innovation, which we hope will garner long-term results and economic vitality for downtown as well as the Houston region at large," she continues. "We look forward to developing bridge programs with area universities and organizations and leveraging existing resources to bring more high-tech prospects to our central city." Read more.

Dan Purvis, CEO of Velentium

A Houston company has made a strategic acquisition. Photo courtesy of Velentium

Houston-based Velentium, which specializes in the design and manufacturing of medical devices announced that it has acquired Texas company Oasis Testing, a designer of automated test systems for the energy and manufacturing industries.

"Despite the immense challenges facing the business community in 2020, last year was a monumental year of growth for our firm, and we're pleased to start 2021 building upon our world-class team of technical experts," says Dan Purvis, CEO of Velentium, in a news release. "Oasis Testing has been a trusted partner for the last five years and shares in our commitment to solving clients' most complex challenges to change lives for a better world. We're incredibly excited to welcome them to the Velentium family and expand our business more deeply into energy and manufacturing."

Purvis will lead the new combined company as CEO. Read more.

Chris Staffel, managing director at Goose Capital

Goose Capital recently named its new managing director. Photo courtesy of Chris Staffel

Houston-based investment group Goose Capital Inc. named Chris Staffel as managing director — along with Jeff Smisek as the firm's president and Jay Collins as chair of the board of directors.

A serial entrepreneur and investor in over 30 startups, Staffel joins Goose to lead day-to-day operations and drive new investment opportunities.

"It is an honor to join the team at Goose Capital and work alongside experienced industry leaders," Staffel says in the release. "I look forward to leveraging my entrepreneurial experience to help the start-ups in which we invest, while strategically identifying early stage investment opportunities." Read more.

Dan Purvis, CEO of Velentium, will lead the new combined company. Photo courtesy of Veletium

Houston-area medical device engineering firm acquires Texas company

M&A

A engineering firm based in Katy has made a strategic acquisition of a Magnolia, Texas-based company to start of the new year.

Velentium, which specializes in the design and manufacturing of medical devices announced that it has acquired Oasis Testing, a designer of automated test systems for the energy and manufacturing industries.

"Despite the immense challenges facing the business community in 2020, last year was a monumental year of growth for our firm, and we're pleased to start 2021 building upon our world-class team of technical experts," says Dan Purvis, CEO of Velentium, in a news release. "Oasis Testing has been a trusted partner for the last five years and shares in our commitment to solving clients' most complex challenges to change lives for a better world. We're incredibly excited to welcome them to the Velentium family and expand our business more deeply into energy and manufacturing."

The companies will operate under the Velentium name, and Demetri White, co-founder at Oasis Testing, will assume the role of senior program manager to focus on "growing the testing business, serving the oil and gas industry's need for high-pressure high-temperature test, as well as testing in the medical device sector," according to the release.

"We admire and share Velentium's approach to client service, company culture, and results-focused business strategy, and quickly recognized this would be an excellent fit for our team," says White in the. "From our years of partnership, we know that Oasis' expertise in servicing the energy and manufacturing sectors goes hand-in-hand with their ability to provide innovative and world class solutions. Together, we will leverage knowledge across industries to bring mechanical, electrical and software-based solutions that benefit our client base."

The new company will have expanded abilities and will be increasing its production space and headcount as it continues to place an emphasis on its testing and manufacturing capabilities. The added resources for automation and the combined team will lead to dramatic reductions in product test times and increased test system utilization.

Earlier this year, Velentium played a key role in mobilizing thousands of ventilators in the United States at a time when the pandemic and the uncertainty around it was surmounting around the country.

The company's long-time clients Ventec Life Systems, a manufacturer of ventilators based in Washington, said they could increase production of their much-needed ventilators five-fold if they only had the right resources and partners. Velentium first aimed to help the small factory double or triple their production, and later General Motors jumped in to help grow the initiative.

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Elon Musk's SpaceX files initial paperwork to sell shares to the public

Incoming IPO

Elon Musk's space exploration company has filed preliminary paperwork to sell shares to the public, according to two sources familiar with the filing, a blockbuster offering that would likely rank as the biggest ever and could make its founder the world's first trillionaire.

A SpaceX IPO promises to be one of the biggest Wall Street events of the year, with several investment banks lining up to help raise tens of billions to fund Musk's ambitions to set up a base on the moon, put datacenters the size of several football fields in orbit and possibly one day send a man to Mars.

The sources spoke on condition of anonymity because they were not authorized to talk publicly about the confidential registration with the Securities and Exchange Commission.

SpaceX did not respond immediately to a request for comment.

Exactly how much SpaceX plans to raise has not been disclosed but the figure is reportedly as much as $75 billion. At that level, the offering would easily eclipse the $29 billion that Saudi Aramco raised in its IPO in 2019.

The offering, coming possibly in June, could value all the shares of SpaceX at $1.5 trillion, nearly double what the company was valued in December when some minority owners sold their stakes, according to research firm Pitchbook, before an acquisition that increased its size.

Musk owns 42% of the SpaceX now, according to Pitchbook, though that figure will change with the IPO when new owners are issued shares. In any case, he is likely to pierce the trillion dollar mark because he is already close. Forbes magazine estimates Musk's net worth at roughly $823 billion.

In addition to making reusable rockets to hurl astronauts and hardware into orbit, SpaceX owns Starlink, the world’s largest satellite communications company. The company also recently brought under its roof two other Musk businesses, social media platform X, formerly Twitter, and artificial intelligence business, xAI, in a controversial transaction because both the seller and the buyer were controlled by him.

SpaceX has become the biggest commercial launch company in its industry, responsible for sending payloads into orbit for customers across the globe, but has also benefited from big taxpayer spending. That has raised conflicts of interest issues given that Musk was the biggest donor to President Donald Trump's campaign and is still a big backer.

In the past five years, SpaceX won $6 billion in contracts from NASA, the Defense Department and other U.S. government agencies, according to USAspending.gov.

Among current SpaceX owners is Donald Trump Jr, the president's oldest son. He owns a shares through 1789 Capital. That venture capital firm made him a partner shortly after his father won the presidency for a second time and has been buying up federal contractors seeking to win taxpayer money ever since.

The White House and Trump himself have repeatedly denied there are any conflicts of interest between his role as president and his family's businesses.

8+ can't-miss Houston business and innovation events in April

where to be

Editor’s note: Houston's weeklong innovation festival kicks off April, followed by Rice University's globally recognized pitch competition returning for its 26th year. Plus, find coworking pop-ups, industry meetups, pitch battles and even a crawfish boil on the calendar. Here’s what not to miss and how to register. Please note: this article might be updated to add more events.

March 30-April 4 — H-Town Roundup

Celebrate innovation, entrepreneurship and collaboration at Houston Exponential's sixth-annual H-Town Roundup. During the free event series, previously known as Houston Tech Rodeo, attendees can expect insightful talks, workshops and networking events at venues across the city.

This event began March 30. Register here.

April 2 — Industrious Coworking Day

Enjoy a complimentary day of cowering at Industrious and network with professionals at the Ion. Breakfast, snacks, wifi and workspace tours are included. Following the cowering day, Industrious will host happy hour at Second Draught from 4-6 p.m.

This event is Thursday, April 2, from 8:30 a.m.-5 p.m. at the Ion. Register here.

April 2 — Technology Summit for Women

The fourth annual Women in Tech Cummil will feature speakers across three core tracks: Transformation + Digital strategy, Cyber + Risk + Resilience, and AI in Practice. Pearl Chu, director of technical domains and university relations at SLB, will give the opening remarks. Other panelists come from CenterPoint Energy, BP, Technip Energies and other leading companies.

This event is Thursday, April 2, from 2-5 p.m. at the Ion. Register here.

April 8 — Veterans Business Battle

Hear pitches from veterans and entrepreneurs as they compete for more than $10 million in investments at Rice Businesses' 12th annual Veterans Business Battle. This year, the two-day event will also feature a Small Business Expo, which invites Houston-based, veteran-owned businesses to participate in education, networking and the opportunity to showcase their business. Moonshots Capital and Mercury Fund will also host a fireside chat.

This event begins Wednesday, April 8, at 11 a.m. at the Ion. Click here to register.

April 9-11 — Rice Business Plan Competition

The Rice Alliance for Technology and Entrepreneurship will host the 26th annual Rice Business Plan Competition this month. Forty-two student-led teams from around the world, including one team from Rice, will present their plans before more than 300 angel, venture capital, and corporate investors to compete for more than $1 million in prizes.

This event begins Thursday, April 9. Find more information here.

April 10 — BioHouston Chili Cookoff

Connect with Houston's life sciences community at BioHouston's 21st annual chili cookout. This event is geared toward startup founders, researchers and industry veterans alike.

This event is Friday, April 10, from noon-4 p.m. at Bayou City Event Center. Register here.

April 14 — Mercury Fund Day at the Ion: Agentic Commerce

Don’t miss the latest installment of Mercury Fund Day at the Ion, previously known as Software Day. The recurring monthly event features office hours (by application), a keynote and networking opportunities. This month's topic focuses on agentic commerce.

This event is Tuesday, April 14, from 3:30-7 p.m. at the Ion. Register here.

April 19 – UH Energy Industry Crawfish Boil

Head to the UH Cullen College of Engineering Green Space for the 35th annual UH Energy Industry Crawfish Boil. The event will include a student showcase, STEM activities, a kids zone, live music, networking and, of course, crawfish. Proceeds from the event will support the multidisciplinary capstone fund that aims to increase professional readiness for Cullen College engineering and technology students.

This event is Sunday, April 19, from 1-5 p.m. at the Cullen College of Engineering Green Space. Find more information here.

April 24 — Rice Business Healthcare Conference

Leading experts, innovators and the next generation of healthcare leaders will converge at the Rice Business Healthcare Conference. Hosted by the Rice Business Healthcare Association, the conference will explore AI's potential impact on the sector.

This event is Friday, April 24, from 8 a.m.-2 p.m. at McNair Hall on Rice University's campus. Find more information here.

Houston unicorn closes $421M to fuel first phase of flagship energy project

Heating Up

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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This article first appeared on EnergyCapitalHTX.com.