Onboarding

Capital Factory hires two Houston-based employees to grow its local presence

Capital Factory will have a branded area in The Cannon when it opens its new facility. Courtesy of The Cannon

A major Texas innovation player with roots in Austin has now staffed its recently announced Houston outpost in partnership with The Cannon Houston. Capital Factory hired two Houstonians to help provide resources for its growing Houston-based portfolio companies.

Kendrick Alridge has been hired as mentor coordinator, and Brittany Barreto, who founded Pheramor and WeHaveChemistry, has been named the venture associate. Aldridge will focus on growing and cultivating relationships with Houston mentors, and Barreto is dedicated to reaching out to Houston startups to gauge their potential for Capital Factory participation.

Hiring these Houstonians and having these new boots on the ground is a key factor for Capital Factory as it grows its Houston presence, says Gordon Daugherty, president at Capital Factory.

"It's important for us to think Texas, but act local," Daugherty says. "What that means is we can't just assume that the way we do things and the things that made us successful in Austin will directly translate to Houston. Houston is a different market. That's one of the things we learned from Dallas."

Acting locally entails listening and learning to what the community wants and engaging with local organizations to contribute value to the market.

"We don't know how or in which ways, but we know Houston will be different from Dallas and Austin," Daugherty says. "In this way, we are advantaged by our two employees being from the Houston area. They're our eyes and ears, for one, but they are also the voice of Houston to us along with other ecosystem players."

While local resources and personnel are both new for Capital Factory, the organization already has over 20 portfolio companies that are based in the Houston area. Now, these companies will have new resources close to home and can also act as Capital Factory representatives in the community, Daugherty says.

One of the biggest benefits Capital Factory is bringing into town is investment opportunities. Daugherty says that he predicts that Capital Factory, which tends to invest many small-sum deals, will quickly become the most active early stage investor in Houston. The organization has already made a few investments in Houston companies — and this isn't even counting the dollars invested by the investment partners.

"Our mission, as it pertains to Houston, is to help the best Houston startups get funded. We will tap into our network of investors across the state and country to try to find the best matches."

If Houston can take any indication from Capital Factory's Dallas location, which opened earlier this year, Capital Factory will be making a big impact on Houston startups.

"In 2018, 25 percent of the startups we onboarded into the accelerator were from outside of Austin," Daugherty tells InnovationMap. "The first half of this year, a third or more have come from Dallas alone. And I expect the same from Houston. Next year, easily more than half of our new accelerator companies will be outside of Austin."

Capital Factory will have branded space in The Cannon when it opens its new facility later this month.

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Building Houston

 
 

5G could be taking over Texas — and Houston is leading the way. Photo via Getty Images

Based on one key measure, Houston sits at the forefront of a telecom revolution that could spark a regional economic impact of more than $30 billion.

Data published recently by the Texas Comptroller's Office points out that as of last November and December, Houston led all cities in Texas for the number of so-called "small cells." Small cells are a key component in the rollout of ultra-high-speed 5G wireless communication throughout the Houston area and the country.

As the Texas Comptroller's Office explains, small cells are low-powered antennas that communicate wirelessly via radio waves. They're usually installed on existing public infrastructure like street signs or utility poles, instead of the big communication towers that transmit 4G signals.

The comptroller's tally shows Houston had approved 5,455 small-cell sites as of the November-December timeframe. That dwarfs the total number of sites (1,948) for the state's second-ranked city, Dallas.

"Houston is in the vanguard of small cell permitting in Texas, and not just because it's the state's largest city; advocates have lauded its proactive approach to 5G. Other cities, particularly smaller ones, are lagging well behind," the Comptroller's Office notes.

According to CTIA, a trade group for the wireless communications industry, 5G holds the promise to deliver an economic impact of $30.3 billion in the Houston area and create 93,700 jobs. The group says industries such as health care, energy, transportation, e-commerce, and logistics stand to benefit from the emergence of 5G.

"Maintaining world-class communications infrastructure is a requirement for success in a rapidly changing global economy. Small cells and fiber technology are the key foundational components for network densification and robust 5G. Cities like Houston that have embraced the need for this infrastructure will see the benefits of 5G faster than others," Mandy Derr, government affairs director at Houston-based communications infrastructure REIT Crown Castle International Corp. and a member of the Texas 5G Alliance, tells InnovationMap.

Derr says leaders in Houston have embraced the importance of small-cell technology through "reasonable and effective" regulations and processes aimed at boosting 5G capabilities. Three major providers of wireless service — AT&T, T-Mobile, and Verizon — offer 5G to customers in the Houston area.

"More small cells and fiber provide greater and faster access for the masses, enabling the connectivity that is essential to our businesses today — whether it's accepting payments on a mobile card reader, completing a sale on the go, or reliably reaching consumers where they are," Derr says.

In a blog post, Netrality Data Centers, which operates a data center in Houston, proclaims that Houston is shaping up to be a hub of 5G innovation.

"Houston has always been on the frontline," Mayor Sylvester Turner said during a 5G roundtable discussion in 2019. "It is who we are. It is in our DNA. We are a leading city. We didn't wait for somebody else to go to the moon. Or to be the energy capital of the world. Or the largest medical center in the world. But you don't stay at the front if you don't continue to lead."

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