Category: San Antonio (Page 15 of 62)

Invictus Medical Sells a Device to Help Newborn Babies

By LAURA LOREK
Reporter with Silicon Hills News

Tom Roberts, Invictus Medical’s President and CEO

Tom Roberts, Invictus Medical’s President and CEO

Invictus Medical is a homegrown San Antonio biomedical startup focused on improving the lives of newborns.

In 2010, Daniel Mendez, Israel Cruz and Nicholas Flores, all engineering undergraduates at the University of Texas at San Antonio, invented a device, initially called the aqua bonnet, during an engineering senior design class. One of the engineer’s wives worked as a nurse in a Neonatal Intensive Care Unit and explained the problem about babies developing cranial deformities because of all the pressure on their heads.

So the students developed a soft helmet-like medical device to relieve pressure and help prevent flat-head syndrome in newborn babies. They won the UTSA CITE entrepreneurship and technology competition in 2010.

The students decided to assign their invention to UTSA, which filed the initial patent application. In 2011, the students formed a company and the university licensed the technology to the company and provided further funding for the patent process. For providing those services, the university took an undisclosed equity stake in the venture, said Jackie Michel, director of technology transfer and commercialization at UTSA.

“This turned out to be one invention that makes my heart happy because it fulfills the mission of the university which is to disseminate knowledge for the benefit of society,” Michel said. “It’s a remarkable story.”

In May, Invictus Medical received Food and Drug Administration clearance to begin marketing its medical device, now known as the GELShield, which provides extracranial pressure relief for babies. Invictus is now selling the GELShield to hospitals nationwide. The device, which comes in small, medium and large sizes, focuses on relieving pressure on baby’s heads. That pressure can cause plagiocephaly, a cranial deformity exhibited in infants resulting from repeated external pressure to one area of the head. The condition can result in a baby having a misshaped or flat head. In addition to cosmetic issues, studies have linked the condition to development delays in infants and toddlers.

Already, more than 100 hospitals have expressed interest in the GELShield, said Tom Roberts, Invictus Medical’s President and CEO. The market is large for the device, he said. Nationwide, hospitals run about 1,200 Neonatal Intensive Care Units. Invictus is also working on an application to expand international sales to Canada and eventually Europe.

“In the United States every year there are four million babies born and about 20 percent to 30 percent of all babies develop some kind of cranial deformity,” Roberts said. “It can appear along a spectrum from a flat spot to a more pronounced cranial deformation.”

The problem affects one million infants annually, Roberts said. It’s the problem Invictus Medical’s GELShield helps to solve.

The Baylor University Medical Center in Dallas just completed a validation study using the device in its neonatal intensive care unit with 42 babies. The test began in February of 2014 and finished in the fall of 2014.

“We evaluated the product for safety, fit and function,” said Chrysty Sturdivant, advanced clinical specialist and lead of the study at Baylor University Medical Center in Dallas.

“We wanted to make sure it didn’t cause any other problems like skin irritation or temperature changes or something unknown,” she said. And they found it did not cause any problems, she said.

Right now, nurses in Neonatal Intensive Care Units manually rotate the babies in their care every three to four hours. In the past, they’ve used pillows and other aids to prop the baby’s head. With the GELShield, the device provides the cushioning and relieves pressure to the baby’s head to help prevent deformities.

Newborn at Baylor Medical wearing one of Invictus Medical's GELShield devices, courtesy photo

Newborn at Baylor Medical wearing one of Invictus Medical’s GELShield devices, courtesy photo

The Invictus GELShield eases the care for the baby because the nurses don’t have to fiddle with pillows any longer to make sure they are positioned correctly under the baby’s head, Sturdivant said.

“Now it’s easy to tell,” she said. “The medical device is either on or off the baby’s head.”

Before the Invictus GELShield, the market did not provide a device like this to help babies with this problem, she said.

“Our product relieves the amount of pressure being applied on the baby’s head by up to 85 percent,” Roberts said.

The GELShield still allows the baby to continue to move his or her head, Roberts said.

To date, Invictus Medical has raised $5 million and is in the process of securing an additional $4.5 million in Series B funding. That money will go to help market and sell the GELShield.

Roberts joined the company early on in 2011. He spent 30 years working for companies in the medical device industry including for Roche Diagnostics and Kinetic Concepts. He wanted to run a startup. Randy Goldsmith, head of the Texas Technology Development Center, known as T3DC, introduced him to Invictus Medical, which is in the T3DC incubator program.

“I was looking for something I could be very passionate about,” Roberts said. “I had an immediate connection with Invictus.”

Invictus, which means unconquerable in Latin, is a tribute to the young engineering students who started the whole thing, Roberts said. The students are no longer involved in the day-to-day operations of the company but remain shareholders in the venture.

Invictus now has 12 employees and it has outgrown its current space at 12500 Network Drive and is planning to move to larger headquarters soon, Roberts said. The company plans to add a few employees this year but expects its workforce to expand to 25 employees by 2018. It contracts with four separate manufacturing plants to make its GELShield devices.

Invictus has five distribution partnerships with 55 sales people nationwide, Roberts said.

But Invictus is not stopping with the GELShield product.

“We’re building a world class medical company,” Roberts said. “We’re not a one product company.”

Invictus_Logo_TagInvictus recently secured the worldwide commercialization rights from Northern Illinois University in Dekalb, Illinois for a second innovative technology focused on active noise reduction in the neonatal intensive care units. The company received a Phase I grant from the National Science Foundation for $240,000 to research and development the technology. It is also eligible to apply for a Phase II grant worth $750,000. George Hutchinson, Invictus’ Chief Technology Officer, is heading up the research, Roberts said.

BioMed SA Celebrates 10th Anniversary

By LAURA LOREK
Reporter with Silicon Hills News

Ann Stevens, president of BioMed SA, courtesy photo.

Ann Stevens, president of BioMed SA, courtesy photo.

Ten years ago, a group of leaders in San Antonio, led by former Mayor Henry Cisneros and the Greater San Antonio Chamber of Commerce, created an advocacy organization for the city’s biomedical industry.

They founded BioMed SA with the core mission to raise the visibility of San Antonio’s sizable biomedical industry locally, statewide, nationally and internationally.

“We’ve gained considerable traction in the last few years,” said Ann Stevens, BioMed SA’s president.

During the last decade, the organization’s mission has evolved to include economic development, Stevens said.

In 2009, Medtronic selected San Antonio for its new Diabetes Therapy Management & Education Center with plans to create 1,400 jobs. San Antonio beat out more than 900 other cities for the project and BioMed SA played an important role in convincing the company to locate here, Stevens said.

“EDF (The San Antonio Economic Development Foundation) had been working on it for more than a year,” Stevens said. “In the final stages, they asked BioMed SA to come into the project and help them land it.”

Since then, BioMed SA has worked closely with the EDF to bring new businesses here and to retain the ones that are here as well as foster new startups.

“We believe we are bringing real value by not only our promotional activities, but we’re beginning to attract outside investments to the city,” Stevens said.

In addition, the local startup scene in the life sciences industry is growing, Stevens said. The entrepreneurial side of the life sciences industry fosters new companies, attracts venture capital, brings seasoned executives to the city and helps the overall ecosystem to grow, she said.

Just recently, Targeted Technology, a locally based venture capital fund, brought Cytocentrics Bioscience, a Rostock, Germany-based biotech company, to San Antonio. The company agreed to relocate its corporate headquarters to San Antonio and create 15 jobs by the end of the year. In June, the City of San Antonio granted Cytocentrics $1 million in economic development funds to attract the company, which has pledged to create 285 additional jobs in the next eight years and invest $15 million. The company will be based initially at 18618 Tuscany Stone. Cytocentrics makes a medical device called a CytoPatch Machine. The company’s patch clamping technology evaluates drug interactions with human cells and analyzes data.

In addition to biomedical startups relocating here, one of the trends locally is to focus on technology transfer by taking academic research out of local institutions like the University of Texas Health Science Center at San Antonio and the University of Texas at San Antonio and spinning that technology out into startups, Stevens said.

On the startup front, Invictus Medical, which makes a cranial support device for the heads of newborn babies, is a prime example of a spin off coming out of the University of Texas at San Antonio, Stevens said. Other startups spinning out of the Health Science Center include Astrocyte Pharmaceuticals, which is developing drugs for brain injuries, and Rapamycin Holdings, a drug development company focused on disease prevention and treatment in pets and humans.

Randy Goldsmith, who heads up Rapamycin, also runs The Texas Technology Development Center, known as T3DC, and hosts a quarterly luncheon to keep everyone informed on what’s going on in the biomedical industry in San Antonio. About 200 people attend the luncheon, which features company presentations.

“By working together and raising visibility we have attracted more economic activity including a lot of activity in entrepreneurial startups and retained our hometown business,” Stevens said.

To continue to move the life sciences industry forward, BioMed SA plans to pursue new revenue sources from foundations, corporate grants and donations from individuals, said BioMed SA Chairman Ken Trevett.

Nobel Laureate, W.E. (William Esco) Moerner, Ph. D., to receive BioMed SA's 10th Annual Julio Palmaz Award. Photo courtesy of BioMed SA

Nobel Laureate, W.E. (William Esco) Moerner, Ph. D., to receive BioMed SA’s 10th Annual Julio Palmaz Award. Photo courtesy of BioMed SA

A few of BioMed SA’s key accomplishments in its first 10 years include the creation of the annual Julio Palmaz Award for Innovation in Healthcare and Biosciences. The next award, now in its 10th year, will go to W.E. Moerner, PhD, a San Antonio native and winner of the 2014 Nobel Prize in Chemistry. He will receive the award at BioMed SA’s annual award dinner in San Antonio on September 10th.

BioMed SA also recently completed a two-year Asset Initiative to identify “five key disease areas in which San Antonio has biomedical assets and expertise of national or world-class caliber.” That information is being used to promote San Antonio to researchers and companies in those areas and helped attract the World Stem Cell Summit to San Antonio last December.

San Antonio’s healthcare and bioscience industry employs nearly one of every six members of the city’s workforce and has an annual economic impact exceeding $30 billion, according to BioMed SA.

Google Fiber is Coming to San Antonio

Mayor Ivy R. Taylor announcing Google Fiber is coming to San Antonio, photos by Laura Lorek

Mayor Ivy R. Taylor announcing Google Fiber is coming to San Antonio, photos by Laura Lorek


By LAURA LOREK
Reporter with Silicon Hills News

Google announced San Antonio as the next city to receive its “Gigabit” Internet network, which is about 100 times faster than what most broadband users currently experience in the city.

“Google Fiber will provide San Antonio with the competitive business and entrepreneurial edge needed in this era of continuously evolving high-speed technology,” Mayor Ivy R. Taylor said during a press conference Wednesday morning at Geekdom, the downtown San Antonio collaborative co-working center.

“I’m excited about the impact on our economy,” Taylor said. That includes Google hiring contractors to install 4,000 new miles of fiber infrastructure throughout the city and new startups springing up from having access to the service. Google reports that its fiber network is massive enough to stretch from here to Canada and back. San Antonio is also the largest city Google has launched its fiber service in to date. San Antonio is a sprawling community that is the nation’s seventh largest city and home to 1.4 million residents.

San Antonio is also just 75 miles down the road from the high tech hub of Austin, which also has a Google Fiber Gigabit network. In April of 2013, Google announced its plans to provide Google Fiber in Austin. It began service to its first Austin customers in December of 2014. Google Fiber is still rolling out the service to neighborhoods, which it calls “fiberhoods” throughout Austin. The San Antonio announcement does not affect those plans, a Google spokesman said. Both cities will be under construction simultaneously.

“This is a key milestone on the path to world class Internet but there’s still a lot of work to be done,” Taylor said.

Mark Strama, head of Google Fiber, Texas, San Antonio Mayor Ivy R. Taylor and Lorenzo Gomez, director of Geekdom

Mark Strama, head of Google Fiber, Texas, San Antonio Mayor Ivy R. Taylor and Lorenzo Gomez, director of Geekdom

Google cannot yet report when the service will be available in San Antonio or provide any timelines, said Mark Strama, head of Google Fiber, Texas.

“This is a very exciting day, one that a lot of time and effort has been invested in,” Strama said. “San Antonio is a very interesting city and a really attractive place to see what is possible with Gigabit speeds.”

San Antonio has had a commitment to connect more people with affordable and accessible Internet access through its Connect Home initiative, Strama said. U.S. Housing and Urban Development Secretary and former Mayor of San Antonio Julian Castro announced the new program in July to provide high speed Internet access to low-income populations. San Antonio is one of 27 cities nationwide involved in the pilot program.

San Antonio is also part of President Obama’s Tech Hire initiative to train more people for high tech jobs by providing them with coding and other skills. In March, President Obama announced the program to provide scholarships to minorities and low income Americans who want to take coding classes at academies such as Codeup or Rackspace’s Open Cloud Academy.

In addition, San Antonio is a hub for cloud-based companies like Rackspace. It also has the Open Cloud Institute at the University of Texas at San Antonio and Techstars Cloud, a thematic accelerator program focused on generating and nurturing the next batch of cloud companies. San Antonio also boasts the second largest concentration of data centers in the country. It is home to Microsoft’s mammoth data center as well as one for the National Security Agency and dozens of others. The city also has a thriving Cybersecurity industry, and one of the largest concentration of cryptologists, hackers, network security specialists, electronic warfare specialists and other Cybersecurity professionals in the country. And San Antonio is home to a large and growing biomedical industry and dozens of technology startups sprouting up around Geekdom.

The evolution of dial up Internet to broadband resulted in an acceleration in speed of about 10 megabits per second, Strama said. The evolution from today’s broadband speeds to Gigabit speeds is an acceleration of the Internet of over 900 megabits per second, he said.

Google Fiber San Antonio vans, which will begin appearing around the city as construction on the 4,000 miles of fiber network begin.

Google Fiber San Antonio vans, which will begin appearing around the city as construction on the 4,000 miles of fiber network begin.

A lot of applications that require Gigabit speeds don’t yet exist because the capacity isn’t available yet, Strama said. But soon Geekdom startups will be able to create those “killer applications” that require Gigabit speeds, he said.

For the next few years, Google will be deploying its fiber network throughout San Antonio. And it’s a major construction project, Strama said. Google has been working on engineering and design for months and it plans to begin construction in the next few months, Strama said.

“As soon as we can, we will start delivering service to our customers in San Antonio,” Strama said. “I can’t provide a specific date or timeline for that. Construction is subject to a lot of variables, not all of which are within our control, but we are highly motivated to work as quickly and efficiently as possible.”

Google Fiber will roll out the network in a staggered deployment, Strama said. It will begin offering service in neighborhoods as it continues to build out other neighborhoods, he said.

Lorenzo Gomez, director of Geekdom and director of the 80/20 Foundation, Rackspace Founder Graham Weston's private foundation focused on spurring entrepreneurship and growth in San Antonio, welcoming Google Fiber to San Antonio

Lorenzo Gomez, director of Geekdom and the 80/20 Foundation, welcoming Google Fiber to San Antonio

“We have rich Internet history in this city,” said Lorenzo Gomez, director of Geekdom and the 80/20 Foundation, Rackspace Founder Graham Weston’s private foundation focused on spurring entrepreneurship and growth in San Antonio.

This is not the first time something game changing has happened in San Antonio, he said. Ten years ago, Rackspace at the Weston Centre housed the first servers for Youtube, he said.

Now Google Fiber in San Antonio unleashes all of the possibilities for the next generation of innovators to create game changing products and services on the Internet, Gomez said.

Gomez recounted a story about what has taken place in Kansas City, the first city to get the Google Fiber Gigabit network. A couple of entrepreneurs started the Kansas City Startup Village in a house to take advantage of the high-speed Google Fiber Gigabit network, Gomez said. The high speed network allowed them to iterate and innovate faster than ever, he said. Today, more than 25 companies are located at the Kansas City Startup Village and many of them moved from elsewhere to be near the network, he said. That’s exactly the kind of ecosystem San Antonio is creating to attract and spawn new technology startups, he said.

The city of San Antonio doesn’t expect to spend any money on the Google Fiber installation, Mayor Taylor said. It’s private investment from Google and the city hasn’t discussed any costs involved in the project, she said.

San Antonio first applied to be a Google Fiber city in 2010 along with 1,100 other cities. It didn’t make that cut, but San Antonio did make the short list of cities under consideration for Google Fiber in February of 2014. But when Google announced its new cities later that year, San Antonio didn’t make it. Getting Google Fiber here has been a long process, but San Antonio and Austin are the only Texas cities to have the service. Google Fiber is currently available in Austin, Kansas City, Kansas and Kansas City, Missouri and Provo, Utah. It is under construction in Atlanta, Georgia, Charlotte, North Carolina, Nashville, Tennessee, Raleigh/Durham, North Carolina and Salt Lake City, Utah.

The Google Fiber access in San Antonio has far-reaching implications for the Central Texas region as a whole, said Gomez, director of Geekdom.

“I feel like the San Antonio and Austin region is going to be the next mega-region,” Gomez said. “We are Portland to their Seattle. We both specialize in different things, now is the time to collaborate and hone in on what we’re really good at doing.”

Google fiber is part of what will tie the two communities together and make them a powerhouse region, Gomez said.

“I do think you’re going to see a wave of innovation,” Gomez said.

Technology companies in both communities have access to this super fast Internet network and that will accelerate activity that’s already going on around Internet Cloud companies, Cybersecurity, biomedical research and more, Gomez said.

“It really is a story of two cities, if played correctly – collaboratively, not competitively, will emerge in the top five regions in the country, if not the world,” Gomez said.

Ten Life Sciences Companies to Watch in Central Texas

Photo licensed from iStockphoto

Photo licensed from iStockphoto

Texas is one of the leading biotech states in the country, according to a 2014 report from the Texas Governor’s Office. In fact, it ranks second for employment of life and physical scientists nationwide.

The state has more than 3,600 biotechnology manufacturing and research and development firms. More than 92,000 people work for biotech companies in Texas. It has also become a hotbed of activity for startups tackling big problems like finding drugs to combat different types of cancer or medical devices to screen for cancer. San Antonio and Austin have dozens of innovative startups addressing big problems in the medical industry. Here are just ten to keep an eye on in the coming year:

Aeglea Biotherapeutics: the Austin-based startup develops variants on human enzymes to deplete key amino acids to fight cancer and other diseases. The company filed in June with the Nasdaq Stock Exchange for an Initial Public Offering to raise $86.2 million.

Aerin Medical: the company is in the process of relocating its headquarters from California to Austin. Fred Dinger, a serial biomedical entrepreneur, is heading it up as CEO in Austin. It also just filed a Form D with the Securities and Exchange Commission to raise $14.36 million in funding. The company focuses on solving breathing problems. It has created a device that opens up the air passages of patients so they no longer need breathe right devices or surgery to breathe easier. The procedure is done in the doctor’s office.

Bluegrass Vascular Technologies – the San Antonio-based startup relocated from Lexington, Kentucky. It raised $4.5 million in Series A financing last year led by the Targeted Technology Fund of San Antonio. The company makes the Surfacer, a central venous access catheter system. Gabriele Niederauer joined the company in September of 2014 as its CEO and President.

Chiron Health – the Austin-based startup provides telemedicine healthcare consultation for doctors with patients remotely over the Internet. With the Chiron Health platform, doctors can review lab results, adjust medication and answer other patient questions online. Founded by Andrew O’Hara, the company is working with 20 health care providers.

ENTVantageDX Diagnostics: the Austin-based startup is creating a test to detect bacterial sinusitis, which requires antibiotics to cure. The test is similar to a strep throat test administered in the doctor’s office.

Mirna Therapeautics, the Austin-based startup develops cancer-fighting drugs. Its drugs are currently in clinical trial testing with patients. It recently received $41.8 million in venture capital financing. The company has raised $82.8 million in four rounds from 11 investors, according to its Crunchbase profile. Dr. Paul Lammers is the company’s CEO and president.

Neurolink Medical: the San Antonio-based startup has created a brain implant system to monitor brain activity and to directly deliver drugs to treat brain seizures or epilepsy. It received $3.2 million from the Texas Emerging Technology Fund.

Savara Pharmaceuticals: the Austin-based pharmaceutical startup has created pulmonary therapeutics for cancer and other diseases. It received $1.9 million from the Texas Emerging Technology Fund. To date, the company has raised $47.7 million in eight rounds.

Seno Medical Instruments: the San Antonio-based medical device startup has created laser optic technology to screen for cancer. It received $2 million from the Texas Emerging Technology Fund.

StemBioSys: the San Antonio-based startup develops proprietary stem cell technologies for the regenerative medical market. Earlier this year, the company closed on $8 million in Series A funding led by the Targeted Technology Fund, a San Antonio-based venture capital firm. To date, it has raised $10 million. The company is in research partnerships with the University of Texas Health Science Center at San Antonio, the University of Texas at San Antonio and the Langer/Anderson Laboratories at MIT.

Payment Data Systems to Begin Trading on the NASDAQ Stock Market

logoSan Antonio-based Payment Data Systems, which processes online payments for other companies, announced Tuesday that it has received confirmation that its common stock will begin trading on the NASDAQ Capital Market starting Aug. 11th.

In addition, Michael Long, chairman and CEO of Payment Data Systems and Louis Hoch, the company’s president, will ring the opening bell at the NASDAQ MarketSite in Times Square in New York on Monday, Dec. 21st.

Payment Data System’s common stock, will be traded under the ticker symbol, PYDSD. Its stock will continue to trade on the OTCBB and the OTCQB until market close on Aug. 10th.

“After 20 days, or on August 20, the Company’s ticker symbol will revert to trading as PYDS from PYDSD on NASDAQ,” according to the company.

“Our listing on the NASDAQ Capital Market is a major corporate milestone for our company and a testament to the tremendous progress we have made over the past few years,” Long said in a news statement. Furthermore, we believe that the listing on NASDAQ will help broaden our shareholder base, increase appeal to institutional investors, provide us with better liquidity and ultimately contribute to increasing shareholder value.”

Payment Data Systems also has a wholly-owned subsidiary, FiCentive, which provides a turn-key prepaid card solution to businesses and others. The company reported record revenue in 2014 of $13.4 million, up 159 percent from a year earlier. The company also acquired Akimbo Financial, a San Antonio-based startup that sells and markets pre-paid credit cards, last December for $3 million.

Disclosure: Akimbo is an advertiser with Silicon Hills News

Favor Adds New VP of Engineering and Plans Further Expansion

Michael Nels joins Favor as its new vice president of engineering.

Michael Nels joins Favor as its new vice president of engineering.

Favor, a personal delivery service, landed in Austin in the summer of 2013 and has quickly grown.

Founders Zac Maurais and Ben Doherty moved here from California and launched a grocery and food delivery service. It quickly gained visibility for its runners who wore bright blue T-shirts with a faux tuxedo front.

The service, which started initially in central Austin, has spread throughout the city, state and beyond. And it’s no longer just delivering groceries or food. Its Favor runners fetch everything from bandages at Walgreens to dry cleaning.

In March, the company landed $13 million in Series A venture capital from Silverton Partners, S3 Ventures and Tim Draper. To date, the company has raised $16.9 million in four rounds of funding.

As part of the latest financing, Favor has done some hiring. It just announced this week that Michael Nels has joined the company to lead its engineering team. Nels comes from SolarWinds where he was vice president of software development.

He joined Favor to head up the engineering for a startup in a fast-paced industry, Nels said.

“We intend to expand globally,” Nels said.

Already, Favor is in Austin, San Antonio, Houston, Dallas, Denver, Nashville, Washington, D.C. and Miami. The company has also grown from two employees in 2013 to 50 employees today. Their headquarters is an old house on West Sixth Street.

Favor faces a lot of competition from other companies chasing the same market like Instacart, Postmates, Burpy and others. Favor’s customer service sets it apart from the competition, Nels said. And the demand is high for its services, he said.

“We run errands for basically anything that is legal,” Nels said. “People either spend their time or their money running errands.”

And Favor has found, in this booming economy, people are short on time and are willing to pay Favor runners to act as their personal assistants. The company’s mobile app is available on both Android and IOS mobile phone platforms. Favor makes money by charging a $6 delivery charge plus a percentage of the total value of the goods delivered. Tip is extra.

By the end of the year, Favor expects to have 70 employees, Nels said. With the latest round of funding, the company is building out its engineering, product team as well as marketing, branding and sales, Nels said.

“We are in complete growth mode,” he said.

Techstars Cloud Fall Program is Accepting Applications

techstars5Techstars Cloud is back at it again.

The fall program, which kicks off Nov. 2nd and runs until Feb. 11th with a two week break for the holidays, is now soliciting applications.

This is the second Techstars Cloud program for 2015. The first one ended in April with ten companies pitching at Demo Day.

“This program will be the fourth Techstars Cloud program, and my second as Managing Director,” Blake Yeager wrote in a blog post.

The Techstars Cloud program provides each startup with $18,000 in funding for a 6 percent stake in the company and access to $100,000 convertible note, a loan that converts to equity and can make the equity stake higher. The startups also get mentorship and assistant from a variety of technology experts and companies.

Techstars Cloud is having an informational session about the program this Wednesday at the Geekdom events center in San Antonio starting at 6 p.m.

Austin Dips in VC Investments for Second Quarter But Still Strong for 2015

By LAURA LOREK
Reporter with Silicon Hills News

Photo licensed from IStockphoto

Photo licensed from IStockphoto

The amount of venture capital bucks invested in Austin dropped nearly 49 percent in the second quarter to $162.5 million, compared to the first quarter’s $267.2 million, according to the MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association, based on data from Thompson Reuters.

But that doesn’t mean Austin’s entrepreneurial activity is slowing down, said Eric Hornsten, managing partner of PricewaterhouseCoopers’ Austin office.

“The first quarter of 2015 was really a blowout quarter for Austin, Metro,” Hornsten said. “The second quarter is still a very positive quarter.”

Overall, for the first six months of 2015, Austin’s total venture capital dollars invested is actually up nearly 16 percent to $430 million, compared to $367 million for the first half of 2014, Hornsten said.

“It’s a very positive first half for VC investing in Austin,” Hornsten said. “What you see is a pretty steady increase in venture capital investment in Austin over the last few years.”

Austin had 27 funding deals in the second quarter, compared to 30 funding deals in the first quarter, according to the MoneyTree Report.

The money came from local, state and national sources. The most active investors in the second quarter were Silverton Partners of Austin, New Enterprise Associates of Menlo Park, Calif. and Capital Factory, all with three deals. Osage Partners of Pennsylvania, LiveOak Venture Partners of Austin, Correlations Ventures of San Diego, Sante Ventures of Austin and Mercury Partners Management of Houston all had two deals each during the second quarter, according to the report.

In the largest deal for the quarter, the report showed Mirna Therapeutics, a clinical stage biopharmaceutical company, received $41.8 million, followed by ATX Innovation, a mobile payment app doing business as TabbedOut, with $21.5 million and Illumitex Inc., LED lights, with $15.2 million, all based in Austin.

“One trend that I would observe, particularly if you look at the first quarter and second quarter of 2015, is the increase in biotechnology deals,” Hornsten said. “If you went back fives years, you wouldn’t see a lot of biotechnology investment in Austin.”

The data shows venture capital investment in the biotechnology area in 2011 totaled just $25 million and last year it was $41 million, compared to $101 million in the first half of 2015, Hornsten said.

Austin still leads the state in the amount of venture capital invested in the first half of 2015 with $430 million, followed by Dallas with $132 million, Houston with $69 million and San Antonio with $35 million, according to the MoneyTree Report.

The Austin and Texas’ venture capital investment trends are also consistent with national trends, Hornsten said.

With the national data, the second quarter is the largest quarter since 2000 with $17.5 billion of venture capital invested in 1,189 deals in the second quarter of 2015, according to the MoneyTree Report. That’s up 30 percent in dollars and 13 percent in the number of deals compared to the first quarter.

And the second quarter is the sixth consecutive quarter of more than $10 billion of venture capital invested in a single quarter.

The software industry attracted the most investment dollars nationally. The quarter had 26 deals with more than $100 million invested and another $1 billion investment, according to the MoneyTree Report.

“Driven by a strengthening fundraising environment, the venture ecosystem deployed more capital to the innovation economy in the second quarter than any period in the last fifteen years. While this uptick can be partly attributed to non-traditional investors joining funding rounds, venture continues to lead the way in deploying capital to the most promising new technologies and companies,” Bobby Franklin, President and CEO of NVCA, said in a news release. “With software companies continuing to disrupt entrenched industries and in some cases creating new industries all together, venture investment into the sector increased 30 percent from the first quarter to $7.3 billion, marking the highest total investment into software companies since the inception of the MoneyTree Report in 1995. As valuations increase and more and more companies choose to stay private longer, we are likely to see software’s share of total venture investment continue to rise.”

TrueAbility Pivots to Include IT Training and Certification

TrueAbility photo featuring Co-Founders Luke Owen, Marcus Robertson,  Dusty Jones and Frederick Mendler. Photo by Gary Hartman

TrueAbility photo featuring Co-Founders Luke Owen, Marcus Robertson, Dusty Jones and Frederick Mendler. Photo by Gary Hartman

TrueAbility, which created a platform to test job candidate’s technical skills, has pivoted.

The San Antonio-based tech startup still offers its AbilityScreen which tests job candidates’ technical aptitude but it is no longer offering its jobs board and instead plans to focus on the information technology certification and training business. It wants to help companies manage and execute performance-based exams securely from anywhere in the world.

The company, which has raised $3.7 million in venture capital, also recently let go ten of its 15 employees and moved out of its Geekdom offices and into a home-based office.

As part of its reorganization, co-founder Luke Owen has left the company. Frederick “Suizo” Mendler, also a co-founder, is now CEO. Marcus Robertson and Dusty Jones, both co-founders, are still with the company as well as two engineers.

TrueAbility is bullish on its new market, Mendler said. The three-year-old company has seen the highs and lows of running a tech startup, he said.

The team of founders spun out of Rackspace, won the Startup Weekend competition, graduated from the Techstars Cloud program, landed funding, had an idea to change the way companies recruit technical talent, but it wasn’t as easy to execute, Mendler said.

“We had success but we had moderate success,” Mendler said. “For us it was about solving a global problem. Today, we haven’t changed anything about our platform.”

TrueAbility grew its community to more than 20,000 Linux professionals.

Meanwhile, TrueAbility started getting requests from large software companies to provide certification in a cloud-based environment and test skills in a live environment. So now TrueAbility is going to focus on certification for IT programs.

“We’re creating a standard for which no standard exists,” Mendler said.

TrueAbility officially made the decision to abandon the HR and recruiting side of things in May and it re-launched on July 20th focused on online exams and certifications.

“We have a proven track record,” Mendler said. “We’ve executed over 40,000 assessments. We have over 400 different working scenarios.”

Today, TrueAbility offers three clear product lines: certification, training and the IT skill assessments, Mendler said.

MapR Technologies, a big data software company, is using TrueAbility’s AbilityScreen platform to train and certify both employed and incoming developers. Innovative Exams is also a new partner with TrueAbility.

“We’re excited to be back to the platform which was the original idea,” Mendler said.

Got an Idea for the Next Big Thing? Pitch It on SXSW PanelPicker

imgresOne of the best ways to get a big idea in front of movers and shakers in the technology, music and film industry is to submit a proposal to the South by Southwest PanelPicker.

And even though it seems like the dust has barely settled from the largest ever SXSW held this past March, it is time to submit those great ideas.

The SXSW Conferences and Festivals are now accepting programming proposals for the 2016 event on its popular PanelPicker, an online tool that allows people to vote for their favorite panels for the Music, Film and Interactive conference.

SXSW 2016 takes place March 11 through 20th in Austin, but the PanelPicker is the first step in an online process to select programming for the events.

The PanelPicker submission process runs from June 29th through July 24th.

“Each individual account holder is permitted to submit one idea per conference,” according to SXSW’s news release. “Step Two allows the community to browse all of these ideas and rate which of these proposals they think are the best fit for the March events.”

Community voting begins Monday, August 10th and continues through Friday, Sept. 4th.

“Votes from the community, along with feedback from SXSW Advisory Boards and the SXSW staff, will help determine programming for the 2016 event.” SXSW releases the first round of programming in October of 2015.

SXSW is also accepting applications for artists for its music festival through Oct. 24th. And it’s accepting feature film, short film and music video submissions through Nov. 3rd for its film festival.

And on Aug. 3rd, SXSW Interactive will accept entries for the best digital creative work for the SXSW Interactive Innovation Awards, video game projects for the SXSW Gaming Awards and innovative startups for the SXSW Accelerator competition. The deadline is Nov. 6th. Visit SXSW Interactive Awards for more details.

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