The Ion Houston names new partner, growing startup names new CTO, and more local innovation news

short stories

In the latest round up of Houston innovation news you may have missed, a Houston startup wins an international COVID-19 innovation competition, The Ion has a new founding partner, and more. Photo courtesy of The Ion

It's been a busy week with virtual SXSW, spring break, and more. For this reason, some of Houston's innovation news may have fallen through some of the cracks.

In this roundup of short stories within Houston innovation, a Houston startup grows its C-suite, a local accelerator application deadline looms, the latest news from The Ion, and more.

Baker Botts doubles down on The Ion

The Ion has a new founding partner. Courtesy of Rice University

Houston's rising innovation hub, The Ion, has named Houston-based Baker Botts as the latest founding partner, alongside previously announced partners Microsoft and Chevron Technology Ventures.

"Today's announcement not only solidifies Baker Botts' investment in The Ion and the programs we are activating, but is a commitment to growing Houston's innovation ecosystem," says Jan E. Odegard, interim executive director of The Ion, in a news release. "Baker Botts' work with The Ion has already helped countless entrepreneurs get their work off the ground, and we are excited for their support as we continue to accelerate innovation and connect communities to build sustainable and inclusive economic growth in Houston."

Baker Botts has agreed to the following partnership opportunities with the Ion:

  • Provide in-kind services to this year's Houston Startup Showcase Winner
  • Offer on-site presence to support The Ion's various community members and provide substantive programming to startups
  • Host legal programming and workshops for The Ion's Accelerator Hub members
  • Expand gateway events including The Ion's Family Tech Night and Plaza Tec series

"Given our market-leading strengths in Houston, this is an exciting opportunity for the firm," says John Martin, managing partner of Baker Botts, in the release. "Our participation with The Ion brings together lawyers across our corporate venture capital, energy tech, IP and other practices to work closely with a range of cutting-edge companies at the heart of the Texas startup ecosystem."

GoExpedi recruits new CTO from big tech

GoExpedi has a new CTO. Photo courtesy of GoExpedi

Houston-based GoExpedi — a B2B e-commerce, supply chain and analytics company — recently hired global engineering executive Yang Tang as CTO. Tang has more than 20 years of experience leading technology and product teams at both startups and corporations, including Anheuser-Busch InBev (AB InBev) and at Walmart eCommerce's operations.

"After an extensive search to find one of the most accomplished product leaders of our time, we are excited to introduce Tang as the new head of our technical operations and state-of-the-art supply chain model," says Tim Neal, GoExpedi's CEO, in a news release. "His history of excellence in the e-commerce space is beyond reproach. He brings unparalleled expertise having managed global projects with an emphasis on e-commerce development and digital engineering for some of the world's most reputable brands. With his leadership, vision, and technical expertise, we are primed to launch into the next stage of our company's development as we expand our offering of new digital and consumer-friendly solutions."

In his position, Tang will oversee the design and execution of GoExpedi's technology, product, and data roadmaps.

"I am pleased to help the manufacturing and energy industries reimagine industrial supply chain with the brightest minds in technology, MRO procurement and oil and gas," says Tang in the release. "I was fortunate to contribute to the e-commerce renaissance that exploded in the consumer space over the last few years and am eager to apply what I have learned to the industrial sector. I look forward to collaborating with the team at GoExpedi to drive continuous improvements in all aspects of the industrial supply chain."

Last fall, GoExpedi closed a $25 million series C round with plans to hire.

Houston startup named a winner at $6M COVID-testing competition

Houston-based Steradian Technologies, Inc. was named among the winners of XPRIZE Rapid Covid Testing competition, an international innovation challenge that called for solutions for high-quality, affordable COVID-19 testing.

"We are extremely excited to create high-tech diagnostic solutions that are rapid, inexpensive, and accurate to create healthcare accessibility and equity for everyone, irrespective of any financial, geopolitical, or socioeconomic barriers. COVID-19 detection is our near-term goal, and we're looking forward to the possibilities of ubiquitous testing for all," says Asma Mirza, CEO and co-founder of Steradian Technologies, in a news release.

Steradian Technologies is "developing a product that created human super-sight via the startup's proprietary optics," according to the release, and pivoted its technology to create the RUMI diagnostic system, which uses Steradian's technology to look at photonics to detect disease biomarkers within a user's breath within 30-seconds.

"The COVID-19 pandemic has shown us that we need to be more prepared as a nation and as a global community for future viral threats. The rapid development of vaccines has been achieved through incorporating new technologies, and diagnostic tech needs to do the same. Our goal has been just that. We wanted to create a diagnostic tool that could be fast, accurate, and easy to use and could be widely deployed," says John Marino, co-founder and chief of product development, in the release. "We know that COVID-19 won't be the last threat of this kind and are developing a solution that can easily adapt to any new pathogen. We are extremely grateful to have been recognized by XPRIZE for our effort."

Houston entrepreneur to pitch with Techstars

Amanda Ducach, founder and CEO of SocialMama

Amanda Ducach, founder of SocialMama, is expecting to pitch at Techstars Austin. Photo courtesy of SocialMama

Houston-based consumer tech company, SocialMama, which connects mothers virtually via an app, was accepted into the Techstars Austin program for 2021. Founder Amanda Ducach will be presenting at the recently announced Techstars Austin virtual Demo Day on March 24.

SocialMama's Techstar Austin cohort colleagues include: BallBox, Inc (Chicago, IL), Enlightapp (Fargo, ND), Fêtefully (Dallas, TX), hampr (Lafayette, LA), Kousso (Charlotte, NC), Livo (Coral Gables, FL), Mowies (Medellin, Colombia), Nutritional Freedom (Austin, TX), and Talk Howdy (Austin, TX).

Registration is free and open online.

MassChallenge Houston's applications open for two more weeks

Photo courtesy of MassChallenge

MassChallenge Texas has opened applications for it's next cohort in Houston. The equity-free, no-cost program is seeking startups across industries that have raised less than $1 million in funding and less than $2 million in revenue to apply. The program provides startups mentorship, corporate partnerships, curriculum, and more.

The deadline to apply is March 31 by midnight. If interested, entrepreneurs can apply for free with the code "MC21INNOMAP." Click here to learn more and apply.

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Baylor College of Medicine launches VC fund to invest in biotech startups

fresh funding

Houston’s Baylor College of Medicine just unveiled a new venture capital fund that backs early-stage biotech startups—and it’s already made its first investment.

BCM Legacy Fund I, funded by philanthropies, invested an undisclosed amount in Houston biotech startup Nemea Therapeutics. Nemea, a spinout of the Baylor College of Medicine and Germany’s Lead Discovery Center, is developing an oral drug to treat metastatic triple-negative breast cancer that no longer responds to currently available therapies.

This type of aggressive cancer spreads from the breast to other areas of the body, such as the bones, liver, lungs or brain. Roughly 38,000 to 57,000 Americans are diagnosed each year with metastatic triple-negative breast cancer. One study showed about half of patients survive past the one-year mark following diagnosis and about one-third survive two years.

“Baylor College of Medicine’s laboratories produce discoveries with the potential to change patients’ lives, and too many of them stall where academic funding ends and private investment has not yet begun,” Dr. Jakub Tolar, president, CEO and executive dean of the Baylor College of Medicine, said in a press release. “The BCM Legacy Fund fills that gap, giving our scientists a path to advance their discoveries to patients.”

The National Institutes of Health awards more than $36 billion per year for biomedical research in the U.S., Baylor said. But some biomedical discoveries “never leave the starting line because they don’t yet fit the economics of venture capital,” the college said.

“The forefront of a new model”

The BCM Legacy Fund aggregates philanthropic capital from private foundations and donor-advised funds. It then invests in startups so they can move beyond that starting line and into later-stage investment rounds. The Greater Houston Community Foundation is the fund’s philanthropic partner.

“It’s exciting to be on the forefront of a new model for philanthropic capital,” said Houston entrepreneur and investor Burton Hanson, managing partner of the fund.

“Not only do we hope to solve a real problem by advancing these therapies to the patients who need them most, but we also hope this model will inspire others in the city and beyond toward philanthropic creativity and a posture of ‘I sacrifice; we win.’”

The fund expects to invest in about 15 early-stage startups over a five-year span. Baylor declined to divulge the amount of money in the fund and the size of the investment in Nemea.

Nemea’s “world-class chemistry”

Hanson oversees the Baylor fund alongside Chicago investor Steve Lehmann, who led the University of Chicago’s Innovation Fund.

Lehmann said Nemea, the fund’s first portfolio company, “has world-class chemistry, Baylor biology, and patients with no good options. Our job is to fund the experiments that carry it to the next handoff, so that industry and later-stage investors can take it from there.”

Based at Houston’s massive Texas Medical Center, Nemea plans to start clinical trials next year in collaboration with Baylor’s Lester and Sue Smith Breast Center.

Nemea previously received $9 million from the Lead Discovery Center and a $1.6 million grant from Baylor. Last year, the startup said it was seeking $25 million to $30 million in seed and Series A funding.

Debra McCoy of Houston, a former managing director at BlackRock and former partner at Bain & Co., and Paul Thomas, co-founder and CEO of Spring-based benefits manager Luscinia Health, sit on the Baylor fund’s governing board. Dr. Paul Klotman, former president, CEO and executive dean of Baylor, is a senior strategic adviser.

How does the fund find investment targets?

The Baylor Legacy Fund relies on two tools to help unearth early-stage biotech startups:

  • High-resolution “innovation maps” of research institutions. These maps surface hidden clusters of innovation, identify rising-star researchers and tie pockets of “innovation supply” at Baylor to areas of “innovation demand” in biotech.
  • AI-enhanced due diligence. AI agents assist with due diligence of early-stage biotech startups. The fund says the platform “distills the frameworks we’ve developed over a decade of teaching and investing into a flexible … diligence environment.”

MD Anderson unveils $3.4B expansion with two new Houston cancer care facilities

major expansion

The cutting edge of cancer-fighting technology and science is getting even sharper after MD Anderson announced last week that it will open two new facilities in the Texas Medical Center within the next five years. Inspiration Tower and Prism will expand MD Anderson’s annual patient load in the TMC to 250,000 annually and will incorporate a variety of new techniques.

The $3.4 billion project will add 2 million square feet to MD Anderson's TMC footprint, bringing its total campus size to 22 million square feet by 2032. Located at the corner of Fannin Street and Holcombe Boulevard, the cancer center says the two new facilities will serve as its new "front door" to the TMC.

“Every detail of these buildings, from the technology to the treatment rooms, was designed around our patients who will receive their care in them and our employees who will work in them. The facilities will serve as a physical representation of hope for the patients and their families who will walk through the doors,” Dr. Jeffrey E. Lee, president ad interim of UT MD Anderson, said in a news release. “Inspiration Tower and Prism are the future of cancer care, and we are grateful for the longstanding support and guidance we’ve received from the UT System Board of Regents to bring these projects to life. These facilities are part of the most impactful capital expansion in UT MD Anderson’s history.”

Prism is especially exciting as it will represent fully half of the linear accelerator treatment in the TMC. Linear accelerator is a radiation treatment that uses magnetically charged fields to deliver targeted external radiation therapy, like shooting cancer with a rail gun. The treatment is safer and has fewer side effects than older radiation treatments.

In addition, Prism will contain 12 MRI machines, four CT scanners, two PET-CT units, 18 radiation vaults and seven radiation simulators. Patient comfort has also been put at a premium with multiple gardens and roof overlooks.

“Every patient we treat deserves an environment that reflects the excellence of the care they receive at UT MD Anderson,” Chris McKee, executive vice president and chief strategy officer at UT MD Anderson, added in the release. “Our new facilities will be innovative, agile, adaptable and beautiful, and they will allow us to care for more patients, more effectively – in an environment that enhances healing and well-being. We are building for our future and for every patient who will be counting on us.”

Prism is slated to open in 2030.

Inspiration Tower will have 25 floors of surgical, diagnostic, and treatment services. At 1.4 million square feet, it’s currently expected to be the largest cancer-specific treatment facility in the United States. The tower will be divided into units for specific types of cancer, making it easy to integrate the advancing research being done all over Houston.

Like Prism, Inspiration Tower is specifically designed to offer comfort and reassurance, with more garden space, terraces, and beautiful scenery to ease patient distress. It is expected to open in 2032.

Tesla will pull the plug on Cybertruck production at Texas factory in 2027

Tesla Talk

Tesla’s Cybertruck, the hulking, stainless-steel pickup that inspired devotion and derision with its science-fiction looks, will cease production next year.

CEO Elon Musk announced the model’s demise Friday, November 6, with a curt post on X, his social media site, simply noting production of the vehicle “will be winding down” around the middle of 2027 at its facility outside Austin, Texas. Musk said the move was to allow increased production of its Cybercab robotaxi.

For the Cybertruck, a pet project of Musk who insisted it was Tesla’s best product, it marks an unceremonious end to one of the auto industry’s most ballyhooed debuts.

“Few vehicles in history have generated as much attention,” said Armen Hareyan, whose Torque News site covers autos. “The Cybertruck became a cultural symbol – loved, mocked and impossible to ignore.”

The Cybertruck rolled onto the scene in a dramatic unveiling in 2019, when a Tesla designer hurled a metal ball at the vehicle to demonstrate its supposedly unbreakable glass, only to see it shatter. He repeated the stunt on another window of the truck only to shatter that one, too.

Even as some critics scoffed, Musk was steadfast.

“I just wanted to make a futuristic battle tank — something that looks like it could come out of ‘Blade Runner’ or ‘Aliens’ or something like that but was also highly functional,” he told Automotive News. He called it “a better sports car than a Porsche 911” and “a better truck than an F-150.”

It struck some as the perfect vehicular reflection of the brash, convention-busting Musk.

“A really controversial vehicle unveiled by a controversial individual into a market where none of the electric trucks have been able to really capture demand,” said Spencer Penn, a former Tesla executive who left the company before the Cybertruck’s launch and now heads software developer LightSource.

Penn remembered watching the unveiling and feeling initially revolted by the sight of the Cybertruck, calling its appearance “madness.” But the more he looked at it, the more his opinion changed. He signed up for a pre-sale reservation, though ended up not getting a Cybertruck when Musk’s promises of a price tag under $40,000 went unmet and the first trucks sold for double or more. Penn called the Cybertruck part of Tesla’s adventurous spirit that drives innovation.

“Some of these bets work and some of these bets don’t,” he said.

While the decision to end Cybertruck production may be driven by sales realities, it's also a reflection of Tesla’s shift to autonomous vehicles, on which Musk is betting the company’s future.

Musk once forecast he’d make 250,000 Cybertrucks a year. Kelley Blue Book estimated Tesla sold just 20,237 of the vehicles last year, down about half from the year prior. Sales through the end of September this year were down another 28%, according to Kelley Blue Book.

If the imposing, sharp-angled, dystopian appearance of the Cybertruck weren’t enough to turn many potential buyers away, Musk did so himself by allying with a panoply of right-wing figures, most notably U.S. President Donald Trump. He alienated some customers as his image morphed from eccentric innovator to polarizing force trading his billions for political influence.

Once-passionate Tesla drivers rushed to sell off their cars, or slapped stickers on the bumper declaring, “I bought this before Elon went crazy.” Organizers staged demonstrations outside Tesla showrooms and urged investors to dump shares of the company’s stock. Anger spilled into violence, with Molotov cocktails hurled at Tesla vehicles, charging stations set ablaze, and dealerships covered in graffiti.

Lovers of the Cybertruck became targets, too, subjected to shouts of “Nazi!” and extended middle fingers.

Ross Blankenship is one of them. When he first laid eyes on the Cybertruck, he felt transported to a world from his childhood, when he would play “Halo,” the sci-fi video game. He had to have it.

“I had that sort of child in me wanting to be part of something cool that would change the future of automotive,” Blankenship said in a call from his Cybertruck as he drove through Sunnyside, Colorado. Even as Blankenship found he agreed with Musk on politics, he hated seeing a vehicle he loved turned into a political symbol. “I never bought it for any other reason than the fascination with the future technology of trucks … so that was a little heartbreaking.”

He would buy another Cybertruck again in a heartbeat, calling its end “a sad moment.”

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