Three cheers for cheers

Houston hangover pill startup seen on Shark Tank rebrands following multimillion-dollar raise

On his failed investor attempt on Shark Tank, Brooks Powell couldn't secure a shark investment for $400,000. Now, he just closed on $2.1 million for his startup. Courtesy of Cheers

When Brooks Powell's Houston-based startup got passed over by the investors on Shark Tank last year, he didn't let it deter him. Instead, the Houston entrepreneur buckled down and started seeking investments off the screen.

It paid off, and Cheers (née Thrive+) recently closed a $2.1 million seed round. The round was lead by NextView Ventures, which has the likes of TaskRabbit, threadUP, and Letgo among its portfolio.

With the new investment, Brooks says the company is rebranding from Thrive, its original moniker, to Cheers.

"Thrive+ doesn't really say anything about what we did or who we are about," Powell says. "We knew we needed something fitting for the alcohol industry but at the same time has the connotation of fun, responsibility, and health."

The process has been daunting, but worth it, Powell says, citing companies like Ring, which changed its company name from Doorbot.

"It would be hard to imagine Amazon buying a company named Doorbot," Powell says.

It's worth noting that Doorbot rebranded also following a similar rejection on Shark Tank.

Once Cheers had its new name, Powell began the process of the transition — relabeling bottles, redoing marketing materials, etc. There's still a long road ahead for the rebranding, but Powell says he wasn't going to drag his feet, since the change would just become more expensive and more challenging. Ring, for instance, had to pay $1 million for its new domain name.

"We wanted to become Cheers as soon as possible, because it would only become harder as time went on," he says.

From student to CEO
Cheers' formula isn't new. The key ingredient, Dihydromyricetin, a natural extract — like caffeine to coffee, which made the FDA process smooth sailing. DHM started being identified as an anti-alcohol treatment in 2012 following experiments on the effects on rats.

Around that time, Powell was a sophomore at Princeton University, and he came across the science surrounding DHM and knew if he could harness the natural extract for commercial use, it'd change the game of hangover health.

"I started working with some of my professors and asking them if it was safe and would it be effective," Powell says.

At the time, there was very little amount of DHM in the United States, so the company became the first to import the ingredient on a large scale.

Powell graduated from Princeton in 2017 and moved his company to its workspace in The Cannon.

Serving up growth
Cheers has seen a tremendous amount of growth over the past year. The company's revenue increased 20 times year over year. A key determiner of success for the company, Powell says, has been strategic marketing and a working product.

"Primarily products such as this, historically, have never worked," he says. "And they've always been marketing toward binge drinkers and partiers."

Another strategy Powell has is giving the company a presence nationwide by having advisers and investors from both coasts.

"What we have tried to do is have our cake and eat it too. We set roots in Houston, but we have our hands in other markets."

In addition to rebranding, Cheers plans to continue its growth, as well as research and development of the product.

Here's what interactive, virtual events to log on to this month. Katleho Seisa/Getty Images

Going into April, the city of Houston has another month at least of working from home, hopping on calls, and setting up video chats — but you don't have to go through this all alone.

Here are over 10 Houston innovation events you can attend virtually via online meetings. Be sure to register in advance, as most will send an access link ahead of the events.

April 1 — Social Entrepreneurship Meetup

Impact Hub Houston is bringing this monthly meetup online. Registrants will receive an email with the link to attend the Zoom meeting.


Details: The event is at 5:30 pm on Wednesday, April 1. Learn more.

April 2 — Considerations for Emerging Companies in the COVID-19 Era

A group of experts will discuss how the coronavirus and all its resulting complications will affect startups.

Details: The event is at 2 pm on Thursday, April 2. Learn more.

April 3 — UH's Red Labs Pitch Madness

You are invited to watch the final round of Pitch Madness, a pitch competition for UH students. Students will give a four minute pitch and be asked questions about their startup idea by judges. You can attend digitally the finals and watch students pitch at bit.ly/pitchmadness_finals.

Details: The event is at 1 pm on Friday, April 3. Learn more.

April 8 — Startups & Sustainability - How to Make a Profit and Impact

Join as General Assembly brings together entrepreneurs in sustainability to examine how business and tech can be a force for good. Hear from leaders who will share their insights into how industry can impact the environment. Event will be hosted via Zoom, and registrants will be sent a link to attend.

Details: The event is at 5:45 pm on Wednesday, April 8. Learn more.

April 9 — Out of the Lab & Into the Newsroom: Media 101

This JLABs webinar will discuss trends in the media world, how these impact best outreach practices, and tips for designing a successful media campaign.

Details: The event is at 9 am on Thursday, April 9. Learn more.

April 9 — Webinar: In Today's Market - Do Patents Even Matter?

Inventors and business professionals are asked to review the claims of their patent application before it is filed. This step is THE critical step that is supposed to ensure that the claims will protect their invention. The decision you make here determines if you will be part of the 97% of all patents that never recoup the cost of filing them. This event is virtual and a Zoom link will be emailed on the day of the event.

Details: The event is at noon on Thursday, April 9. Learn more.

April 13-16 — Capital Factory's Founders Academy Essentials

Amongst all the excitement of running a startup is a lot of hard work and stressful decisions. Founders Academy Essentials is a 4-day lunch-n-learn curriculum designed specifically for driven entrepreneurs that are passionate about their business potential.

Details: The event is from Monday, April 13, to Thursday, April 16. Learn more.

April 14 — Black in Tech Summit

Capital Factory welcomes you to its 2nd Annual Black In Tech Summit. We're dedicated to increasing diversity in the tech community and making our coworking space an inclusive environment for people of all backgrounds and identities.

Details: The event is at noon on Tuesday, April 14. Learn more.

April 21 — Don’t Go Pitching in the Dark: How to Navigate Investor Interactions

In this webinar, experts of the craft will share practical tips on becoming more effective in communicating your story to investors, increasing your chances of successful fundraising.

Details: The event is at 9 am on Tuesday, April 21. Learn more.

April 21 — Employable in 2030: Closing the skills gap.

What jobs will exist in 2030? Come along and hear from a panel of industry leaders on how to stay relevant in the rapidly changing space for 2030 and beyond. Event will be hosted via Zoom, and registrants will be sent a link to attend.

Details: The event is at 7 pm on Tuesday, April 21. Learn more.

April 22 — Ion Startup Demo Day (Virtual Edition)

Top tier mentors, local investors, and personalized pitch feedback for participating startups -- nothing's changed but the address. Whether you're a serial entrepreneur or just looking to get involved in the community, this event is for YOU.

Details: The event is at 6 pm on Wednesday, April 22. Learn more.