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.

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Building Houston

 
 

Headquarters in EaDo is looking for two worthy startups to donate coworking space to. Photo courtesy of Headquarters

A Houston-based commercial real estate company in the historic East Downtown District, is giving away free space to two startups who have been negatively impacted by the COVID-19 crisis.

The Headquarters is currently accepting submissions from startups, founders, and entrepreneurs to be considered for free office space through Friday, October 2, with recipients set to be announced the week of October 5th.

Founded in 2014 by brother and sister duo, Peter and Devin Licata, Headquarters provides flexible office space and suites to startups and young businesses in a variety of industries. Inspired by creative office spaces in Denver and coworking sites to create a completely new way to work.

Devin and Peter Licata founded Headquarters six years ago. Photo courtesy of Headquarters

"For Devin and I being local Houstonians," says Peter. "It was very exciting to bring a product to Houston that we had never seen before in the city. When we started the search for a building, we had a very specific idea of how we wanted it to look and feel, and the amenities we wanted to provide."

The building located on 3302 Canal St, was repurposed from an old warehouse built in the mid 20th century. The Licatas spent about eight months designing the building, which had sat vacant for seven years. The design features, evoke a feeling of a corporate campus but for small business which works perfectly for COVID-19 social distancing measures.

"One of the things we wanted was really wide hallways," says Devin. "Typical hallways here are about seven feet, when we were working with our architect we said, double it. The specific visuals are there to invoke a feeling, with an interior courtyard, and lots of natural light.

"Our architects weren't used to working with clients in commercial real estate who were designing based on an office where we would want to work, instead of a client who wanted to maximize every square footage."

The coworking space is adhering to social distancing recommendations. Photo courtesy of Headquarters

The wide open spaces, with hallways over 13 feet wide, high ceilings about 18 feet tall, and HVAC unit that does not recirculate air, along with the office suites that are on average 2 to 3 times larger than other coworking spaces allows all of their tenants to practice social distancing in a safe environment.

Headquarters is monitoring infection rates locally, while following safety guidelines to operate their facility safely. All guests are required to answer health screening questions upon entry and wear face coverings. They continue to clean all common areas and high touch surfaces with EPA-approved products and provide hand sanitizer at all points of entry.

With 35,000 square feet in total and 45 office suites, the Licatas say they chose the East End as their headquarters because of its close proximity to downtown and renewing growth of the community.

"The East End was an obvious location for us, we had been looking for buildings in the area for other development opportunities," says Devin. "Given it's proximity to downtown and its access to three different freeways, from a commuter standpoint it was really important as well as the community aspect."

Headquarters is located just east of downtown Houston. Photo courtesy of Headquarters

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