Two Texas Techs Emerge from Incubator

Following the intended path to maturity, two StarTech companies have received first round financing, thus emerging from the Richardson, Texas-based incubator.

Fast Software Corp. was formed last September when, according to StarTech President Matt Blanton, two professionals from Deloitte & Touche brought in an enterprise resource planning software product. The company received $310,000 in seed financing from the StarTech fund to establish its business portal, common services and management applications.

“They used the seed capital to further their plan enough to get first round funding,” Blanton said.

That first round closed in early May, netting the company $4 million from InterWest Partners of Menlo Park, Calif., and CenterPoint Venture Partners of Dallas.

Unlike Fast Software, Orthotel Inc. does not fit into StarTech’s traditional focus of technology companies, but managed to squeeze into the incubator through the side door. The Richardson-based company uses various technologies to ease the orthodontic work process, Blanton said.

OrthoTel uses 3-D imaging technology to reduce or eliminate the need for plaster impressions in orthodontic work, said David Schaller, OrthoTel’s chief executive. The images can be sent electronically between the parties involved in the diagnosos, and it permits the ongoing evaluation of the dental work.

“This process gives more precise diagnostics and is linked to a robot that can make customized presciption wires that reduce the time needed for braces,” Schaller said.

The company received $150,000 in seed funding from StarTech in January 1998, and recently closed a $7 million first round that included Brentwood Venture Capital, CenterPoint and STAR Ventures Management.

Schaller said the company would use the proceeds from the offering to complete the prototype alpha/beta technologies as well as to begin its pilot operation in the Dallas/Fort Worth area.