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CognitiveScale Lands $21.8 Million in Venture Capital

CogScalelogoAustin-based CognitiveScale announced Tuesday it has landed $21.8 million in venture capital.

Norwest Venture Partners and Intel Capital co-led the round. CognitiveScale plans to use the money to expand its salesforce and on research and development of its product portfolio.

As part of the deal, Norwest’s Promod Haque and Intel Capital’s Vibhor Rastogi will join CognitiveScale’s Board of Directors.

“Our cognitive cloud software pairs man and machine so they can achieve something new and exponentially valuable together: intelligent user engagement and business processes that get smarter and more useful with time,” Manoj Saxena, Executive Chairman of CognitiveScale, said in a news release. “This funding will accelerate our mission to bring scalable, practical AI to the enterprise.”

CognitiveScale has Fortune 100 companies as customers in the financial services, healthcare and commerce industries.

“CognitiveScale is reimagining enterprise engagement with machine intelligence and its tailored solutions are serving as the linchpin for engagement and productivity,” Promod Haque, senior managing partner at Norwest Venture Partners said in a news release. “Not only is CognitiveScale’s technology helping solve core problems for the enterprise, but its executive team is top notch, and we have complete confidence that they’ll continue to innovate and move the AI industry forward.”

CognitiveScale’s products include ENGAGE and AMPLIFY, which analyze big data.

BP3 Global Raises $10 Million

BP3logoAustin-based BP3 Global announced this week it has raised $10 Million from Petra Capital Partners, LLC., a Nashiville, Tenn-based private equity firm.

The company plans to use the funding to speed up development of its Brazos platform, a data and analytics software program.

“The big disconnect in the analytics space is that, while software gives companies a look into operations, managers don’t have the tools to act on those insights,” Scott Francis, Chief Executive Officer of BP3, said in a news release. “Our customers leverage our Brazos platform and services to turn actionable suggestions about a customer, employee, or piece of equipment into decisions that boost profit, satisfaction or safety.”

Its software is focused on enterprise resource planning and customer relationship management functions. Now it is developing software to analyze all kinds of data for businesses to provide insights for them to take action on.

“BP3 represents a perfect example of what we look for in an investment at Petra,” Rob Smith, Partner at Petra Capital Partners, said in a news release. “In spite of having raised no outside capital prior to our investment, the team at BP3 has built a world class, high growth services organization and has developed proprietary software and solutions that deliver tremendous value to its customers.”

BP3, founded in 2007, provides business process, decision management, and analytics software and services to Fortune 500 companies. It also has offices in London, Amsterdam and Copenhagen.

Austin’s Healthcare Innovation Zone Aims to be Transformative

Bisnow
By LAURA LOREK
Reporter with Silicon Hills News

Twenty years ago, healthcare planners tucked research parks into suburban environments, away from the buzz of the city.

Today, innovative healthcare centers serve as the centerpiece of urban cores like the new Dell Medical School and the Dell Seton Medical Center and campus at 15th street and Red River in downtown Austin.

“It’s about creating that nexus for people to come together and be adventurous that’s what we are hoping to create here,” said Dr. Clay Johnston, dean of the Dell Medical School at the University of Texas at Austin.

The Dell Medical School wants to nurture an environment to improve healthcare with ideas from outside of academia, Johnston said.

“It’s less about the knowledge it’s more about the adventurousness of the people,” Johnston said. “An adventurous attitude. Bring them together so that they are bumping into each other in ways that they wouldn’t in suburban business parks then great things happen. It’s been proven over and over again.”

Johnston participated in a panel discussion on healthcare in Austin put on by Bisnow, an online real estate news site, Tuesday morning at the JW Marriott in downtown Austin. Rick Rome, senior vice president with WSP+ccrd, a hospital development firm, moderated the panel, which focused on the Dell Medical District and Innovation Zone.

Central Health will be redeveloping its 14.2 acres six block downtown Brackenridge Campus once the Dell Seton Medical Center opens in May of 2017, said CEO Patricia Young Brown. It has posted master plans to its website which include architectural renderings of its mixed use development and park.

“We expect our property to serve as a hub of innovation activities,” Brown said.

And the new Dell Seton Medical Center will open on May 17, 2017, said Greg Hartman, president of Seton Healthcare.

It’s about the same size as the existing Brackenridge Hospital but it’s built with the latest technology and it’s built to be a teaching hospital, he said.

“The rooms will be larger to allow students and residents to come into the space,” he said. “There are places for people to think and to have creative sessions.”

The Dell Seton Medical Center will be focused on entrepreneurial activities and creating new revenue streams and businesses including joint ventures and startup companies through a new Seton Holding company, Hartman said.

Business relationships need to be a part of phase one, Johnston said. But the overall focus is to provide excellent healthcare to everyone in Travis County, he said.

The healthcare center aims to take a big picture approach to keeping people healthy by everyone working together as a team, Johnston said.

“We need that business basis for the innovations to be able to plug in,” he said.

The Dell Medical School’s health learning building opened this year and a new 300,000 square foot research building will be done in January, Johnston said. IDEO designers helped plan the buildings. The research building is connected by a bridge to Dell’s clinical building which will offer outpatient services with Seton and its health learning building. The clinic building will be completed in May of 2017. The first Dell Medical School class of 50 students began training three weeks ago.

“We’re not creating a traditional medical school because there are a lot of those out there and they are stuck in the way they do things,” Johnston said.

“Our charge is different from the typical medical school and the opportunity we have to think about what healthcare could be is very different. We think our play is more about how we create an ecosystem to help others find solutions to health problems, not just healthcare problems, but also problems upstream,” Johnston said. “We will find ways in which they can be paid for their success. So this is inherently entrepreneurial which means our curriculum needs to look different. It also means the success of an innovation zone around us is absolutely critical to our success.”

Digital health is going to be a key area in the future and one in which Austin can be front and center, Johnston said.

“Life sciences is a hotspot in the community,” said Michele Skelding, senior vice president of innovation at the Austin Chamber of Commerce.

The chamber and its members took field trips to look at innovation zones in other cities like Boston, San Francisco and Toronto, she said. They drew inspiration from those centers, but Austin is seeking to create something original, she said.

“We are going to make this a true transformative aspect of the city,” she said.

Austin is creating a healthier way of living by encouraging people to walk more, said Larry Speck, senior principal with Page architectural firm. Walking is at the center of the planning and design of the medical school, he said.

In particular, Waller Creek, what has been a ditch that ran through Austin, is being transformed, Speck said.

The Dell Medical School is “bringing, a green, soft quality, right into the middle of the school which isn’t true of most medical schools which are asphalt jungles, they are ugly, they are stressful, they are disorienting in a time when you are vulnerable and you shouldn’t be subject to that,” Speck said.

It will also feature hike and bike trails and it incorporates Waterloo Park. The development will be certified under the sustainable sites initiative, he said. The district will have a place for people to live, work and have entertainment. It will also feature a 15 block pedestrian walkway that will go from 11th street to Dean Keeton that is a landscaped environment, he said. The district will have a bohemian vibe and will incorporate the music scene and all of Austin’s creativity, he said.

“There’s no other place where we can attempt this big transformation,” Johnston said. It’s not just about the space and buildings, but the way the care is being delivered and the focus on keeping people healthy, he said.

“We have this unique opportunity to transform the way health and healthcare are delivered,” he said.

Austin-based Renovate Simply Lands Seed Stage Funding

RSRenovate Simply, based in Austin, announced it has received seed stage funding from the Digitech Venture Capital Fund, Central Texas Angel Network and a number of angel investors.

Renovate Simply is a marketplace business that connects homeowners with vetted contractors to simplify the renovation process. The amount of the seed stage funding was not disclosed.

Will Mitchell founded the startup to “provide a hassle-free way for homeowners to both set a realistic budget and find a reliable contractor,” according to a news release.

“Finding a good reliable contractor is a frustrating process. This is not because good contractors are not out there or because the good ones are all busy,” Mitchell said in a news release. “The fact is that most homeowners have no idea who the right contractor is for them and reviews are not tailored to an individual homeowner’s needs. Our platform allows for homeowners to find a contractor uniquely qualified and excited about their project, which benefits everyone involved.”

Renovate Simply is currently available in Austin with plans to expand throughout Texas and then nationally. The company currently offers its platform via a smartphone app on the iOS platform or online through its web-based platform.

KUKA Opens Robotics Center in Austin

Kuka's robots, courtesy photo.

Kuka’s robots, courtesy photo.

KUKA ATX is a new robotics research and development center in Austin focused on industrial robots for factory production.

The German-based company established its newest center of excellence at 11921 North Mopac Expressway.

The center will focus on web, cloud and mobile software platforms to augment KUKA robotics, customer experience and overall productivity.

The Austin location has a team of software engineers, roboticists and product marketing experts. It also serves as “the primary advisers of technical and strategic oversight for KUKA’s U.S.-centric investments,” according to a news release.

KUKA ATX will be holding an event on August 24th to celebrate its new center. It will include tours, demonstrations and a presentation on “The Past, Present and Future of Robotics” by Robin Murphy, director of the Center for Robot-Assisted Search and Rescue (CRASAR) and the Center for Emergency Informatics. It will also include a panel discussion on “Robotics and Automation: Opportunities, Challenges and New Technologies” featuring Murphy, David Fuller, chief technology officer, KUKA Roboter, Andy Chang, director of product marketing at KUKA, Clay Flannigan, assistant director of robotics and automation engineering at Southwest 
Research Institute 
and moderated by Jon Fournie, vice president of software research and development of KUKA.

TriNet Expands Austin Office

TriNetTriNet, a human resources solutions company, has expanded its Austin office in the Research Park area and has hired more than 80 new engineers.

The company, based in San Leandro, Calif., now occupies 33,557 square feet of offices with employees focused on technology, sales and service. TriNet is focused on serving small to midsize businesses in the Austin area with human resources products.

A strong demand from startups and small to medium sized businesses convinced TriNet to expand its business in Austin. It is also seeing a strong demand from companies looking for help to stay compliant with the Affordable Care Act regulations, according to a news release.

“Austin is rapidly becoming one of the country’s foremost centers for technology innovation and entrepreneurship,” Craig Flower, Chief Technology Officer, TriNet, said in a news release. “This makes Austin a perfect hub for TriNet to recruit exceptional talent that can deliver SMB-focused, state-of-the-art HR technology solutions to help our clients succeed.”

Among TriNet’s customers is Aceable, an online driver education site, based in Austin. The company has expanded from five employees two years ago to more than 40 employees today.

“In order to scale from five team members to the 40-plus we are today, we needed an HR partner that would keep us in legal compliance, provide our team with great benefits and make sure everyone was paid on time,” Blake Garrett, Chief Executive Officer, Aceable, said in a news release. “TriNet has done that and more.”

Dell Medical School and Dell Seton Medical Center Win $300,000 Grant

TexasDellMedThe Dell Medical School at the University of Texas at Austin just launched with its first class of students this summer.

Its goal is to rethink and reinvent the way healthcare is delivered to patients. And this week, Dell Medical School and the future Dell Seton Medical Center won a $300,000 grant to help resident physicians deliver healthcare to patients to improve their health and reduce costs.

The Accreditation Council for Graduate Medical Education, the organization responsible for accrediting residency and fellowship programs nationwide, issued the grant, which will be spread over four years, to the Dell Medical School in collaboration with Dell Seton at UT, which will succeed University Medical Center Brackenridge in the spring of 2017. Dell Seton at UT, a part of Ascension, will be the principal teaching hospital for the new medical school. The facility has been designed around the needs of both patients and graduate medical students and faculty.

The Dell Medical School and Dell Seton plan to use the grant to create a new curriculum focused on the best patient care. It will also focus on improving quality and educational outcomes for students.

“This grant is a tribute to years of great work by Central Texas physicians who created graduate medical education and laid the foundation for a med school at UT Austin,” Jonathan MacClements, MD, FAAFP, assistant dean of graduate medical education at the Dell Medical School and a Seton physician, said in a news release. “It’s an incredible honor for a brand new medical school to be on this list and part of this illustrious group.”

“The ACGME grant is a terrific shot in the arm for UMC Brackenridge doctors, nurses and performance improvement teams who’ve been championing care designed around the patient,” Christann Vasquez, MHA, who will transition to inaugural president of Dell Seton Medical Center, said in a news release. “It is meticulous work, and our team approached it with gusto. That shone through in our application for the grant.”

NewCo Conference Returns to Austin to Showcase the City’s Tech Industry

John Battelle, founder of NewCo at last year's conference, photo by John Davidson.

John Battelle, founder of NewCo at last year’s conference, photo by John Davidson.

NewCo Austin is a new kind of conference that takes people into the work spaces of some of Austin’s most innovative companies.

The conference takes place on July 26th and 27th at various locations around town, and Capital Factory is hosting several sessions as an affiliate partner of the conference.

This year, NewCo Austin expanded from one day to two days because of the demand from the Austin technology community for more sessions. NewCo Austin is part of NewCo, based in New York, which produces these field trip like conferences in some of the world’s hottest tech spots. Silicon Hills News wrote this story on the conference last year.

“Austin is one of the fastest growing cities in the country and also one of the best places for startups and innovation. People in Austin are driven by a sense of purpose within their work. They seek to answer ‘Why?’ their work is valuable. NewCo Austin uncovers and celebrates that ‘Why’, highlighting the city’s very best mission driven organizations,” Joshua Baer, Executive Director of Capital Factory, said in a news release.

NewCo Austin features a full schedule of sessions from more than 90 companies including Amazon, Google Fiber, 3 Day Startup, Dell Medical School, WP Engine, Bazaarvoice, just to name a few. It also includes new startups and ventures like Haven, PopUp Play, Raven & Lily, and Notley Ventures.

“Austin inspires the world, serving as a site for the exchange of creative ideas, not just during its world-famous events, like SXSW and Austin City Limits, but also year round, through the work of local organizations like Capital Factory, Entrepreneurs Foundation, and the Austin Chamber of Commerce,” NewCo’s Chief Evangelist and co-founder Brian Monahan, said in a news release. “NewCo’s mission is to identify and celebrate new kinds of companies big and small, creating positive change in how they work, what they create in the world, and who they are as citizens of their community. That is exactly the type of energy driving Austin today.”

Tickets start at $30 and can be purchased at the NewCo ATX website.

Austin Startups Attract $152 Million in Venture Capital During Second Quarter

By LAURA LOREK
Reporter with Silicon Hills News

Photo licensed from iStockPhoto.com

Photo licensed from iStockPhoto.com

Austin is still doing well when it comes to attracting venture capital investment into its technology startups.

During the second quarter, venture capitalists invested $152 million in 24 deals in Austin, according to the MoneyTree Report from PricewaterhouseCoopers LLP and the National Venture Capital Association, based on data provided by Thomson Reuters.

Deals and dollars were down 7 percent and 14 percent for the second quarter compared to the same quarter a year ago. But quarter venture capital investments increased 11 percent and deals remain about the same, compared to the first quarter of this year, according to the MoneyTree Report.

Information Technology services, software and biotechnology deals attracted the most investment dollars during the second quarter, according to the MoneyTree Report. And Spredfast, which received an investment of $50 million, the largest investment for the quarter, led IT services to overtake software as the largest investment sector.

Biotechnology investment attracted $34 million, going into Lumos Pharma, making it the second largest investment category, followed by software with $28 million going into seven deals.

Early stage investment in Austin is still going strong with $62 million going into 14 deals, according to the MoneyTree Report. That’s up 168 percent in dollars and eight percent in deals compared to the previous quarter.

“There are a number of markets that have dropped off comparatively where we haven’t,” said Larry Westall, partner with PricewaterhouseCoopers, based in Austin.

In the second quarter of this year, Colorado attracted $78 million in venture capital dollars, down from $319 million for the same quarter a year ago.

“Austin continues to attract money which is great for us,” Westall said.

Venture capitalists are not opening offices here but they still are getting on planes to make deals happen, Westall said.
“We would love to attract more VCs to the market,” he said.

Nationally, the amount of venture capital investments is up 20 percent to $15.3 billion in 961 deals, which is great, but the big news for this quarter, though, was skewed by one large deal, Westall said. Uber closed on $3.5 billion in funding in the second quarter, he said.

“If you look at the top ten deals – they are 40 percent of the total value invested for the quarter” he said. “We’re still seeing a lot of big transactions.”

Snapchat got $1.3 billion in venture capital during the second quarter of 2016.

Nationally, the investment dollars are still focused on software and biotech.

“All and all things were good, stable nationally,” Westall said. “Expectation is that the size of the VC investments will normalize over the year…Things still remain robust. Fundraising remains good.”

VCs invested 20 percent more in dollars during the second quarter nationally, compared to the first quarter, but deals dropped five percent. Compared with the same quarter a year ago, dollars and deals are down 12 percent and 22 percent respectively.

But this is the tenth consecutive quarter of more than $10 billion in venture capital invested.

And in the second quarter, companies had several exits with 12 initial public offerings and nine of those were biotech, Westall said. Right now, there are 40 known venture backed companies that have filed for an IPO, he said.

In Austin and nationally, the focus has shifted to reasonable spending and cost containment, Westall said.

“The idea of growth at any cost is not something you hear now. Make sure they have an eye on costs with a path to profitability,” he said.

And when deals do get done they generally involve multiple investors in the deal sharing the risk, Westall said.

San Antonio also had a big deal in the second quarter with Merge VR attracting $10 million in venture capital investment.
Westall expects to see more activity and collaboration between the two cities going forward.

“It’s going to take time but this shortening of the corridor between Austin and San Antonio is happening,” he said.

TOP 10 Austin VC Deals in the Second Quarter

Company Industry Venture Capital
Spredfast IT Services $50.1 million
Lumos Pharma Biotechnology $34 million
Outbound Engine IT Services $16 million
Bloomfire Software $12.8 million
SparkCognition Software $6 million
Vyopta Telecommunications $6 million
Aunt Bertha Media and entertainment $5 million
eRelevance Software $4.5 million
EyeQ IT Services $3.5 million
Onespot IT Services $3.2 million

On the Hunt for Pokemon in San Antonio

By Laura Lorek
Reporter with Silicon Hills News

Tommy Arredondo, organizer of the Pokemon Hunt in downtown San Antonio and head of the Pokemon Go Facebook Group.

Tommy Arredondo, organizer of the Pokemon Hunt in downtown San Antonio and head of the Pokemon Go Facebook Group.

More than 1,000 Pokemon Go players met to go on a “Hunt” in downtown San Antonio Saturday for Pokemon, Pokestops and to do battle at Pokemon Gyms.

“I just wanted to try to get everyone together. With all of the events happening in our world right now, it seemed like a good way to get people outside, have some fun and meet some new people,” said Tommy Arredondo, the Hunt’s organizer and founder of the Pokemon Go: SA Facebook Group with more than 3,200 members.

At the Alamo, about 600 Pokemon players gathered which belonged to Team Mystic, the blue team. Several hundred more players gathered at two other spots. Team Valor, the red team, met at the Tobin Center and Team Instinct, the yellow team, met at Travis Park. Once a Pokemon player reaches Level 5 they can join one of the three teams.

“A lot of people have grown up with Pokemon and it doesn’t matter if you’re older or you’re a kid it appeals to
everyone,” Arredondo said. The first Pokemon games launched in 1996 for Nintendo’s Gameboy. The Pokemon franchise has since spawned several more games, TV shows and movies. It is Nintendo’s most popular game series behind the Mario franchise.

Pokemon Go players at the Alamo.

Pokemon Go players at the Alamo.

All of the groups hiked around downtown for a few miles before meeting up at Hemisfair Park at the end of the hunt. It was the largest gathering of Pokemon players in downtown San Antonio since the game launched on July 6th. Pokemon Go, which is a mobile phone app for iOS and Android smartphones, hit the market in the U.S. last week. Niantic, based in San Francisco, created the game in cooperation with Nintendo and the Pokemon Company. The game involves players walking to find Pokemon creatures. They then must use Poke balls to toss at the Pokemon to catch them. Once they catch a certain number they level up. And along the way, they gather potions, incense, incubators, eggs and other items that help them hatch higher level Pokemon and successfully do battle in virtual gyms. The game is free to download and play. Players can buy coins to purchase items within the game.

Team Mystic Pokemon Go players on the Hunt in downtown San Antonio

Team Mystic Pokemon Go players on the Hunt in downtown San Antonio

The Pokemon Go game is the biggest mobile game in U.S. history with an estimated 21 million players in the U.S., according to Survey Monkey.

pokemon1_col

Cody Sanders, one of the local leaders of Team Mystic and founder of Team Mystic SA Facebook Group

Cody Sanders, one of the local leaders of Team Mystic and founder of Team Mystic SA Facebook Group

San Antonio has a great community of Pokemon players, said Cody Sanders, one of the local leaders of Team Mystic and founder of Team Mystic SA Facebook Group. He also helped to organize Saturday’s event.

Pokemon Go has so many benefits and the game spans several generations and appeals to a wide range of people, Sanders said. It’s really all inclusive, he said.

“I’ve gotten so many miles of exercise that I wouldn’t have gotten before,” Sanders said. “And people are getting out of the house and meeting people that they wouldn’t have met otherwise. That’s one of the greatest benefits.”

And people did meet new people along the walk. They chatted about the different Pokemon they caught and where. They also battled for control of the gyms around downtown. Team Mystic, the blue team, initially took control of the Alamo, but later Team Valor, the red team, captured it.

People had a great time visiting Pokestops along the way like the Buckhorn Saloon, the Houston Street marker, the Gunter Hotel, Riverwalk clock, Hemisfair Tower and so many more Pokestops. They captured a variety of Pokemon including Geodude, Meowith, Sandshrew, Paras, Rhyhorn and Abra. And several people gathered eggs, which they hatch with incubators. If a player walks a 5K, they hatch their egg into a higher level Pokemon.

Probably the biggest challenge was getting several hundred people, hunched over looking at their phones, safely across the streets and down the sidewalks.

Tonya Harrell, a member of Team Mystic on the Pokemon Go Hunt walk downtown.

Tonya Harrell, a member of Team Mystic on the Pokemon Go Hunt walk downtown.

Tonya Harrell, a member of Team Mystic who wore a bright blue shirt emblazoned with NERD across the front, actually leveled up during the game to level 11. She has caught more than 75 unique Pokemon.

She started playing Pokemon Go from the day it came out but she’s been playing Pokemon since the very first Gameboy games.

“I like a lot of the different Pokemon because of how cute they are and the storyline behind it is really good,” Harrell said. “It’s very inclusive too because when I was younger I had females to look up to in Pokemon. Not all of the best trainers were boys. Misty was a bad ass trainer and she was a girl.”

Harrell attended the Pokemon Go Hunt to socialize and find new Pokemon.

“I’m usually a recluse and I’m trying to be active and go out and do things,” Harrell said. “I’m finally starting to meet some new people.”

Her favorite Pokemon that she has caught so far is Volpix, a fire-type Pokemon, which she plans to evolve into a Ninetales, the prettiest Pokemon there is, Harrell said.

Another popular spot for Pokemon players to gather in San Antonio is by the Alamo Cement sign and tractor in front of the entrance to the Alamo Quarry.

Pokemon Go players gathered at the Alamo

Pokemon Go players gathered at the Alamo


Earlier in the day, about a dozen people stood in front of the signs playing the game. The crowd included a mom and her two young daughters. The rest were all adults.

“It kind of takes you back to your childhood,” said Mark Antu, who started playing Pokemon Go on July 7th and he’s now at level 16 and has 72 Pokemon. He controls the gym in front of the Whole Earth Store in Quarry for Team Valor with a Vaporeon Pokemon.

The Pokemon Go craze has also spawned cottage industries. T-shirt sellers did brisk business selling team T-shirts at the hunt. People also sold stickers and bracelets. Stores and restaurants have also set so called lures to bring people into their establishments. In San Antonio, Uber drivers have offered to drive people around in search of Pokemon for $20 an hour.

“Random strangers, we become friends for something we have mutually in common,” said Antonio Torres, a friend of Antu who was also playing the game.

At midnight, about 20 cars were still parked in front of the sign at the Quarry with people standing beside them playing the game on their phones.

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