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The Inaugural Austin Design Week Kicks Off on Monday

Doreen Lorenzo, Director of the University of Texas at Austin’s new Center for Integrated Design and Design educator and designer, James Victore, are the keynote speakers during Austin Design Week. Photos courtesy of Austin Design Week.

Doreen Lorenzo, Director of the University of Texas at Austin’s new Center for Integrated Design and Design educator and designer, James Victore, are the keynote speakers during Austin Design Week. Photos courtesy of Austin Design Week.

Design is “more important than ever before,” in business, according to Wired.

And Austin takes design seriously.

That’s why a team of creative minds launched the first Austin Design Week, which kicks off on Monday. The week includes a variety of events where people can share their work, ideas and work spaces and learn from one another.

“Each day we’re inviting the community to participate in riveting design talks from local leaders, hands-on workshops like jewelry making, or interesting new topics like design in government,” according to a post by Danielle Barnes, Austin Design Week organizer and co-founder.

Doreen Lorenzo, director of the University of Texas at Austin’s new Center for Integrated Design, will deliver the keynote address at the Austin Design Week Kick-Off Party at Austin Beerworks on Monday.

Design educator and designer, James Victore, will deliver the keynote talk at the Austin Design Week Closing Party on Friday at Canopy.

The rest of the week features a variety of speakers, workshops, studio tours and parties. It even includes a silk screen workshop in which attendees are encouraged to bring their our shirt to design. And Isa D’Aniello is teaching an introduction to hand lettering session to teach typography basics and lettering styles.

IBM Design has also created The HUB, an interactive installation, to inspire design exploration and learning at the E. William Doty Fine Arts Building, 2301 Trinity St. on UT’s campus.

Another highlight is the Fisterra Projects Studio Tour, a collaborative project between the Design Institute for Health, Fisterra Studio, the Thinkery, ThinkEAST, and Johnson & Johnson. It looks at ways to improve health at the community level.

There’s even a storytelling event which seven Austin designers will give five to seven minute lightning style talks about how design has affected their lives.

Check out the full schedule for Austin Design Week here and make sure to RSVP for events.

Austin-based HealthTronics Acquires HealthTech Solutions

HealthTronics LogoAustin-based HealthTronics this week announced it has acquired Plymouth, Minnesota-based HealthTech Solutions.

The financial terms of the deal were not disclosed.

“Acquiring HealthTech Solutions further enables HealthTronics to make available a wide array of clinical treatment options to doctors and hospitals of any size – from comprehensive medical centers to offices in remote, rural communities,” Russell Newman, president of HealthTronics, said in a news release.

Founded in 2002, HealthTech Solutions’ technicians deliver, set up and monitor laser and surgical technology. The company also offers workshops and training, as well as cosmetic products. The company has operations in Minnesota, Wisconsin, Iowa, North Dakota and South Dakota. It has a staff of 14 employees who will join HealthTronics’ staff.

HealthTronics, founded in 1989 in Austin, has made five acquisitions in the past two years. The company provides mobilized medical technologies and services as well as physician partnership opportunities.

“Expanding HealthTronics’ technology fleet and geographic reach through the acquisition of HealthTech Solutions will help us put the best tools available into the hands of even more physicians,” Newman said in a news release.

Tiff’s Treats Lands $11 Million to Continue Expansion

tiffcookieA fresh baked cookie startup in Austin is attracting a lot of dough.

Tiff’s Treats, launched by a couple of graduates from the University of Texas at Austin, just closed on $11 million in funding.

Dallas-based CIC Partners led the round. Tiff’s Treats with 22 stores in Texas and two stores in Atlanta plans to use the funds to open more locations nationwide. Last year, the company raised $14 million.

In 1999, Tiffany and Leon Chen founded Tiff’s Treats 16 years ago while students at the University of Texas at Austin.

The company is known for baked-to-order cookies and brownies delivered warm to a house or office in about an hour.

To date, Tiff’s Treats has raised $32.9 million, according to its Crunchbase profile.

“Tiff’s Treats is adored by everyone that knows it, and that doesn’t happen by chance,” Mike Rawlings, partner at CIC Partners, former CEO of Pizza Hut and current Mayor of Dallas, said in a news release. “From my days at Pizza Hut, I can appreciate the immense complexity of the delivery business, and the Tiff’s Treats team makes the customer experience seamless. At CIC Partners, our goal is to partner with top management teams, and this team fits the bill.”

Rackspace Officially Goes Private in $4.3 Billion Deal

Photo courtesy of Rackspace

Photo courtesy of Rackspace

It’s the start of a new era for Rackspace, San Antonio’s largest technology company, which Thursday officially became a private company following the completion of its $4.3 billion acquisition by Apollo Global Management, with investment by Searchlight Capital Partners.

Its common stock, under the symbol RAX, will no longer be listed for trading on the New York Stock Exchange, effective immediately, according to a news release.

Apollo acquired Rackspace for $32 per share, a 38 percent premium compared to Rackspace’s closing stock price on August 3, the last day before news reports began circulating about the possible buyout.

“We are excited to begin this new chapter for Rackspace as a private company,” Taylor Rhodes, president and CEO of Rackspace, said in a news release. “I would like to thank our Rackers around the world who, throughout this process, have remained focused on serving our customers. Every day they deliver expertise and Fanatical Support for the world’s leading clouds. We look forward to working with Apollo as we manage Rackspace for long-term growth and expand our early leadership of the managed cloud market. We believe that the best years for Rackspace are yet to come.”

“We are pleased for our managed funds to invest in Rackspace and are excited to be associated with the company and its world class employees, who go to enormous lengths to offer industry-leading expertise and service,” David Sambur, Partner at Apollo, said in a news release. “We look forward to working together with the Rackspace management team and its employees, as well as with Searchlight to help advance Rackspace’s strategy and continue the company’s strong heritage of innovation and customer satisfaction.”

Founded in 1998, Rackspace has a rich history in San Antonio. It grew from just a few employees to more than 6,000 employees worldwide. It went public in 2008. Today, it serves business customers in more than 120 countries with offices and data centers on four continents. It reported 2015 revenue of $2 billion.

Localeur Secures $4.2 million in Funding

localeurLocaleur, a travel recommendation service aimed at millennials, has raised nearly $4.2 million of a $4.6 million offering from 43 investors, according to papers filed with the Securities and Exchange Commission.

The Austin-based startup, founded in March of 2013, previously raised $1.2 million, according to its Crunchbase profile. Silicon Hills News did this profile of the company in 2013. Localeur is now in 30 cities and is available as a mobile phone app.

Joah Spearman, Co-Founder and CEO, formerly worked at Bazaarvoice with Co-Founder and President Chase White. They saw an unmet need for a travel site with recommendations by locals. A void left by travel and recommendation services like need Yelp and Trip Advisor.

Spearman has been vocal in the Austin startup community about difficulty in finding funding and at one point talked about moving his startup to California.

Localeur didn’t send out an announcement after it raised the funding last week, which Spearman wrote took “forever to raise,” in a post on Hacker Noon’s Medium Site, a San Francisco-based blog for Hackers. Instead, in that same post, he listed seven reasons why startup fundings are overrated.

The number one reason Spearman listed: “people think raising money is success rather than fulfilling your mission.”

He also said he sold his 2011 Toyota FJ Cruiser, also known Uncle Phil, in August to make payroll and that stuff like that never gets covered unless he writes about it on Medium. And he complained in his post about inaccuracies in media reports.

In a separate post on the Localeur blog, Spearman reports Localeur is hiring and it’s soon going to have an all hand’s on meeting in San Francisco to plot its strategy. It’s aiming to have next year’s meeting in London.

Google Fiber Will Continue to Roll Out in San Antonio and Austin

google-fiber-jefferly-com-llogoGoogle confirmed plans on Wednesday to continue to roll out its high speed Internet network in San Antonio and Austin despite retracting in other markets.

Google Fiber first announced plans to come to Austin in April of 2013. The service is currently live there and continues to roll out to different parts of town.

“Google Fiber isn’t leaving Austin. We’re still thrilled to be your neighbor and continue to offer superfast Internet to residents,” according to a statement from a Google Fiber spokesperson.

In August of 2015, Google announced plans to provide its “Gigabit” Internet network to San Antonio. Google’s network is about 100 times faster than what most broadband users currently experience in the city.

“Google Fiber will continue in San Antonio. We can’t wait to deliver high-speed connectivity to San Antonio residents, and are even looking at innovative new ways to deploy, as enabled by One Touch Make Ready and a new construction method we’ll be piloting called Microtrenching. In Austin we’ve already seen a 10x improvement in digging speed (i.e., laying Fiber) with no strikes to utility lines using microtrenching,” according to a statement from a Google Fiber spokesperson.

But overall, Google Fiber is winding down plans for some of its new markets.

“In terms of our existing footprint, in the cities where we’ve launched or are under construction, our work will continue,” according to a blog post form Craig Barratt, SVP, Alphabet and CEO of Access. He also announced plans to step down as CEO of the Google Fiber operations.

Google plans to pause operations in its “potential Fiber cities,” those cities where its been in exploratory discussions, according to Barratt.

“In this handful of cities that are still in an exploratory stage, and in certain related areas of our supporting operations, we’ll be reducing our employee base,” he wrote in the blog post.

11 Tips for Healthcare Startups from MedTechTX 2016

Abstract molecular nanostructure modelBright minds that look at things in innovative ways are going to be the future of the healthcare industry, according to Dr. Vonda Wright, Orthopaedic surgeon and keynote speaker at MedTechTX 2016. But it’s not just about inventing a cool gadget and thinking the healthcare system will automatically embrace it. Healthcare startups have unique challenges they face in getting their product to market. A recent conference, MedTechTX 2016, in downtown Austin, addressed a lot of the challenges entrepreneurs face in the marketplace today. Here’s a few of the takeaways from the two-day event.

  1. It’s Not All About Making Money – Remember you are saving lives with your gadgets and platforms and it’s not about making money that is the message you need to translate your product into – the why to improve patient outcomes, said Dr. Vonda Wright, Orthopaedic surgeon, UPMC Center for Sports Medicine, Medical Director, UPMC Lemieux Sports Complex, founder, Women’s Health Conversations Conference, director of Performance & Research Initiative for Masters Athletes.
  2. Startups Need a Warm Introduction to Get in the Door – The best way to get in is to get a warm introduction to healthcare providers from someone they know, said Dr. Frank Mazza, Chief Medical Officer of Quantros.

    Claudia Perez, BSN, MHI, business development with Seton Healthcare Family, only makes calls to introduce startups to doctors after she has vetted the startups for passion, solid product, good team, business plan and customers.

  3. Startups Must Find a Champion within the Healthcare System to help pitch their product and startup – Once you find your champion, you got to make sure they have skin in the game as well, said Dr. Frank Mazza. Don’t give everything away for free. Make them commit to providing you with data or access to data. Also make them commit to a certain amount of time every week to meet with you and the right people.
  4. Criticism equals opportunity – Controversies are opportunities for innovation, but beware of selective hearing, according to Jonathan Coe of Prescient Surgical.
  5. Focus on the Patient Experience – You’ve got to come in with a ROI (Return on Investment) story, said Dr. William Rice with St. David’s Healthcare. But you also need the patient experience ROI. It’s not just a financial story. It’s multi-dimensional.
  6. Make Sure You Can Make a Profit – It may cost $200 to make a widget and you’re going to get reimbursed $210 – sometimes it’s better to fail early than to waste a lot of time and a lot of money, Dr. Dan Peterson with Alafair Biosciences. It’s important to know how much customers are willing to pay for your product.
  7. Do Your Homework – Don’t ask your potential client to do your homework for you, said Chris Thierfelder, director of research and development of Halyard Health. Please do your homework in advance.
  8. Pitch Via Email – Dr. Norman Chenven, CEO of Austin Regional Clinic doesn’t want to get pitched via a slidedeck. He wants an email with bulletin points that shows why a startup’s product or service is good for their organization. No slides. No pictures. Then he’ll call together a white board group or team when they are looking at a device to see how it fits in the organization. I try to do a lot of pre-screening. We do get pitched by a lot of folks.
  9. Start Small -Katrina Daniel, RN, Chief Health Care Officer of the Texas Teacher Retirement System, advised startups to start small and get experience and then expand. A program the size of ours is not going to take too many chances.
  10. Play by the Rules – Play by the rules in whatever organization you’re trying to get into, said Kevin Cook, CEO of Hospital System of Mississippi. The quickest way to get shut down is to try to do an end run around those rules, he said. His organization is bureaucratic, complex and difficult and they have to play within those roles. His organization is a state entity and has regulatory requirements to comply with, he said.
  11. Focus on Sustainable, Patient-Centric Valuation – To understand if your product is going to create value, you need to focus on credible data – cost and outcomes – ask patients if they got better, said Dr. Kevin J. Bozic, MBA, professor and chairman of the department of surgery and peri operative care at Dell Medical School at the University of Texas at Austin and a keynote luncheon speaker.

Disclosure: MedTechTX is put on by the Texas State Small Business Development Center, which is a sponsor of Silicon Hills News and sponsored a two-day live blog of the conference.

Techstars Cloud Shuts Down in San Antonio

Blake Yeager, former managing director of the Techstars Cloud in San Antonio. courtesy photo

Blake Yeager, former managing director of the Techstars Cloud in San Antonio. courtesy photo

Techstars Cloud launched in January of 2012 in San Antonio with 11 startups.

Since then, Techstars Cloud has had four graduating classes. The program took a year-long hiatus in 2014 when its managing director Jason Seats moved to Austin to head up Techstars Austin. It returned in 2015 under the director of Blake Yeager, who previously served as a mentor to the program and worked at Rackspace.

But now the program is going on permanent hiatus. Techstars has decided to no longer operate the Techstars Cloud program in San Antonio, according to a statement from Yeager.

“When we first came to San Antonio five years ago, the startup ecosystem was still largely undeveloped,” he said in the statement. “It has come a long way since that time. The city now has more active angel investors, more seed funds, and more infrastructure for startups. We’ve been thrilled to be a part of that.”

Graham Weston and Rackspace brought the program here in 2012. It served as a catalyst for the technology startup community in San Antonio. And it was one of Techstars first thematic accelerators.

But now the “cloud” focus of the program isn’t as relevant, according to Techstars.

“All of our programs around the world, now regularly accept companies building the “Cloud” so we no longer need a specialized program,” according to Yeager. “Instead those companies are applying to our dozens of other accelerator programs around the world, and nearby in Austin. Our partnership with the leadership of the San Antonio startup ecosystem remains in place, and we will continue to run Techstars programs like Startup Weekend and Startup Week in San Antonio. We are also open to the possibility of launching a new accelerator program in San Antonio in the future.”

Yeager has accepted a new role as the VP of Engineering for Techstars. Seats, Techstars first managing director, is now a partner at Techstars. Kara Gomez who also worked at Techstars Cloud is exploring other employment opportunities within Techstars and other companies, Yeager said.

San Antonio Raises Money for a New High Tech High School

castlogoThe world is preparing for a new industrial revolution with artificial intelligence, autonomous vehicles, augmented and virtual reality and more.

To meet the workforce needs of the future, schools need to do more than teach reading, writing and arithmetic. They must teach students skills that are actually in demand in the workplace today.

That’s what a new kind of high school in San Antonio is aiming to do.

Centers for Applied Science and Technology, known as CAST Tech High School in downtown San Antonio will focus on technology and entrepreneurship.

And the new school got a big boost on Tuesday when Tech Bloc and the 80/20 Foundation announced the launch of the TechBloc-4-TechEd Foundation, which is being supported through the San Antonio Area Foundation. Graham Weston’s 80/20 Foundation gave a $600,000 grant to kick off the new foundation’s capital fundraising campaign to support the construction and development of CAST Tech. It will welcome its inaugural class of 150 ninth graders next fall.

H-E-B and its Chairman Charles Butt has also given $3.6 million to build the school.

Weston’s grant is a challenge grant which Tech Bloc will be seeking a dollar-for-dollar match. Tech Bloc has created “$10-4-Tech,” public crowd-funding campaign to encourage everyone to support CAST Tech.

Individuals who give $100 or more will be honored on a digital “Friends of CAST Tech” installation planned for the high school.

“Access to talent is still our greatest challenge across the tech industry,” David Heard, Tech Bloc Co-Founder and CEO said in a news release. “One of our best opportunities is to grow our own, especially inside our historically underserved populations, and keep it here. This high school can be part of that solution, and its location inside our downtown tech district is key to connecting kids from our urban core to entrepreneurial opportunities beyond the classroom.”

CAST Tech will be operated as an SAISD in-district charter school and will be located in two vacant buildings at Fox Tech High School’s campus in the 600 block of North Flores Street.

“I see CAST Tech as being a tech immersion experience for high school students, with its focused curriculum, continued workplace exposure, and built-in student support from industry professionals, all of which will ensure our students are well prepared for the tech-sector jobs that await them,” Pedro Martinez, SAISD Superintendent, said in a news statement.

H-E-B, SAISD and Tech Bloc announced the creation of CAST Tech at the Tech Bloc Summer Rally last July.

CAST Tech plans to offer students college coursework, internships, job shadowing and other opportunities to prepare them for jobs upon graduation. Students can earn up to 30 hours of college coursework and graduate with an associate’s degree along with their high school diploma.

Amazon Opens Game Development Office in Austin

Amazon Lumberyard logo courtesy of Amazon.com

Amazon Lumberyard logo courtesy of Amazon.com

Amazon is opening a game development office in Austin focused on Lumberyard, a free game engine deeply integrated with Amazon Web Services and Twitch.

Amazon opened a corporate office in Austin in the Domain at 11501 Alterra Parkway about a year ago, according to a report from KXAN.

In a blog post, Amazon called Austin “one of the long-standing centers of gravity for great game development talent, and innovation in community-driven games.”

“We believe Austin is a perfect location for us to continue our quest to help game developers build the community-driven games that push both engine and cloud technology,” according to the blog post. “From the early days of Ultima Online, to some of today’s most beloved MMOs, Austin game teams have helped lead the industry in large-scale, multiplayer experiences.”

Richard Garriott de Cayeux created Ultima Online in 1997 as part of Origin Games, which was acquired by NCsoft. He currently runs an Austin-based gaming company called Portalarium.

Lumberyard and AWS seek to offer game developers a scalable infrastructure to build their operations without worrying about their backend technologies.

“Not only is Austin a great location for experts who have passion and deep experience building some of our favorite MMOs, multiplayer, and community-driven games, it’s also home to one of our new Twitch teams who just set up shop there in July,” according to Amazon. “The Twitch team in Austin is focused on helping developers use Twitch in creative ways to grow community and make money, and we’re excited to work closely together (and have made sure that our desks are well within Nerf distance).”

Amazon currently lists 205 jobs available at its Austin office.

VentureBeat reports the Amazon Lumberyard expansion comes a few weeks after San Francisco-based “MaxPlay, the maker of a competing game engine, confirmed that it had laid off almost all of its employees at its San Francisco and Austin locations.”

Disclosure: Silicon Hills News is an affiliate partner with Amazon.

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