Q&A

Houston Exponential leader looks to increase local startup investment through 2022

Serafina Lalany of Houston Exponential sits down to discuss he ambitious investment-focused plans for Houston innovation. Photo courtesy of Serafina Lalany

Serafina Lalany is known to crunch the numbers. In her role as executive director of Houston Exponential, which she's held since September, she keeps a close eye on venture capital activity in Houston.

"Following VC data is the closest proxy to other data that is often hard to collect. It actually gives us a sense of the growth over time of the ecosystem," Lalany tells InnovationMap. "Also, it gives us the signal as to like what our strengths are and the areas that we need to continue to build out infrastructure."

This year, Lalany and her team at HX aren't just watching the numbers — they hope to make an impact on the VC activity in Houston with more of their VC immersion days. For those, HX and its partner Republic, a startup investing platform, find local startups and connect them with visiting venture capital firms in hopes to generate investment.

Lalany discusses more of her plans for HX for 2022 and shares how the organization is evolving to be what Houston's innovation ecosystem needs in an interview.

InnovationMap: You’re starting your first full year as executive director of HX — what are you most excited about for 2022?

Serafina Lalany: In my eyes, I think 2022 presents a really interesting opportunity. Just looking back the last year, we had a lot of successes as a collective community. For the first time we saw the rise of more than one unicorn. Outside of High Radius, we've seen Cart.com launch and expand and become a behemoth. We've seen Axiom Space make some cool, critical hires and attract talent from New York City and other high growth companies. We've seen the expansion of companies like Capsule, ClassPass, and GoPuff to the Houston region. We're starting to see some really positive signals here, but also what we're excited about at HX is that over the last two years, entrepreneurship as itself has become a lot more accessible.

We've seen the demographics of entrepreneurs rapidly change. The average founder is a lot younger now, and there are many reasons as to why that's happening. In the knowledge economy, there's a lot more resources available to you as the world switched to completely digital. Suddenly, we found a lot more time on our hands, and the proliferation of things like no code tools helped to launch companies. We've seen probably the highest concentration of early stage companies in Houston to date.

There's something interesting happening on the ground, and that plus the global attention Houston starting to get as a climatetech leader, as a health tech leader, aerospace commercialization — people are starting to recognize what a force Houston is to reckon with. Looking into 2022, I think we'll be elevating Houston on a more global scale.

IM: How has HX evolved since its inception and where is the organization at today?

SL: The interesting thing of being an organization of ex-startup operators is that we operate as a startup ourselves. Along the journey of supporting and building infrastructure for a startup community, we have also been seeking our own product market fit. I think we're at the place now where we have a profound realization of what that is and who we serve. We have crystal clear vision around that.

We exist to position Houston as one of the best places to launch and scale a company. We serve entrepreneurs and aspiring entrepreneurs in Houston. We do that in many ways. Of course, most of the community recognizes HX through efforts like the Houston Tech Rodeo, but we're also working on opportunities and initiatives to help lower the barrier of entry for entrepreneurs in Houston. So things like VC immersions, which which allow access to capital in ways that weren't previously accessible. And definitely ramping up our efforts around reporting marketing and media, helping to shine a brighter light on our city. There's more to come as we get into this new year.

IM: Tech rodeo is coming back in a couple of months. What’s should people know about this year’s experience?

SL: A lot has changed this year. We listened to feedback from the attendees last year, which was our highest attended event to date. About 8,600 people came out last year, which blew our expectations out of the water. Having it as a hybrid made lot more accessible to people even outside of the region. This year we learned that from previous years having 130 to 170 events across the week is awesome, but it also forces people to make hard decisions sometimes. So, we're centralizing all of our events downtown on Main Street. We've actually partnered with METRO, and there will be 20 official saloons for Houston Tech Rodeo all along the light rail. Monday through Sunday (Feb. 28 through March 6), We're activating all of downtown and it'll look and feel a lot like SXSW. People will be walking from venue to venue,and we have a few thematic focus areas — health tech, aerospace, climatetech, but also emerging sectors like CPG, which I think we need to give more credit to in Houston.

IM: Last year, you introduced a partnership with Republic. What instigated this collaboration and what's been the impact so far?

SL: Inspiration for partnering with the Republic actually came out of our internal discussions around the time of the transition where we assess that VC immersions program is one of the most vital programs for our ecosystem because it helps lower the barrier to entry for startups seeking capital, especially for their first round of institutional capital. We have seen lots of positive signals over the last like 18 months of having done this gram. We have seen about 1,500 applications come through, 150 or more meetings were facilitated, and $35 million of capital was deployed to those companies. Our number one challenge is scaling — it was really just time and resources. As you can imagine, looking through those applications and the communication with the companies, it takes a considerable amount of time.

So, what we really needed to help us scale was additional venture analysts to look through those applications. Almost serendipitously as we were discussing the program with one of our friends, Abe Chu of previously NextSeed now Republic, we found that there's actually a lot of synergy here. They certainly have the capacity to look through applications — they've got a whole venture team — and we have the reach in the community. We work across the entire region. It ended up being a really cool collaboration. Now with their help, we can actually serve more entrepreneurs and more investors.

With this new model, where we're bringing in five to 15 investors to the city each quarter. Instead of those investors meeting with one founder, as they often do when they're in town, they're meeting with five to 15 founders. It's reducing friction for outside investors — that trip to Houston is very impactful, very busy, but very impactful. For the startups, it's really a great way to get the face time with investors that they can potentially be working with.

IM: HX has made some recent hiring moves — what were your goals in those strategic hires and are still growing your team?

SL: We made two critical hires in the last 30 or so days. One is our new director of inclusive innovation — that's Ivery Boston III. He actually was in the Miami ecosystem on Mayor Suarez's task force, so he's seen it all. We're really grateful to have that institutional knowledge here in Houston, but, more importantly, I think Ivery brings a really interesting perspective to the team and helps to fill a gap in our ecosystem today. I think we all realize and value the diversity in Houston, and how that is a core strength of our community. But we also have to be mindful about creating on ramps for underrepresented communities as well as we build and accelerate our tech economy in Houston.

Part of his responsibilities will be working directly within these communities and alongside these communities to help ensure that all HX activities are of course are built with an inclusive mindset, and they're taking considerations from the community in mind as well as we develop them out. This is all for the goal of helping to create the most equitable startup community we've seen in the country. To our benefit of being a last mover, an advantage, of which there are few, is that we actually get to do things hopefully in a much better way than we've seen on the coasts.

As far as future hires, I think this is pretty much the core team we're looking at for the next 12 months.

IM: I know something super important to you has been tracking venture capital activity in Houston. Why has that been a metric your you've been closely watching throughout your time at HX and what does the data show?

SL: Following VC data is the closest proxy to other data that is often hard to collect. It actually gives us a sense of the growth over time of the ecosystem. It gives us insights into the rate of capital that is deployed and how that's growing over time and where it's getting deployed. Also gives us the signal as to like what our strengths are and the areas that we need to continue to build out infrastructure. Over the last few years we've noticed that there has been more attention around hard tech and in biotech. As ecosystem developers, we must ask ourselves, "do we have the entire life cycle of resources and infrastructure to support companies within those sectors along their journey to scale?" If the answer is no, then we run the risk of potentially losing that talent or losing those companies to other places where there are supportive resources. So, it helps inform a lot of what we do. But it's also one of the few indicators of ecosystem growth in a way that is typically really hard to collect.

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This conversation has been edited for brevity and clarity.

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Building Houston

 
 

Houston scored high marks for food, culture, and diversity. Photo viaIdeasLaboratory.com

At least according to one new report, Houston is not only the Energy Capital of the World but also the livability capital of Texas.

A new study from Best Cities, powered by Resonance Consultancy, puts Houston at No. 11 among the best cities in the U.S. That’s the top showing among the six Texas cities included in the ranking. Houston appeared at No. 17 on last year’s list.

“Educated, diverse and hard-working, Houston is America’s stealthy powerhouse on the rise,” Best Cities proclaims.

Best Cities notes that while Austin grabs much of the best-city attention, “the promise of the Lone Star State drawing Californians and New Yorkers is quietly being fulfilled in Houston.” The website points out that the Houston metro area has gained nearly 300,000 residents in the past year, thanks to both domestic and international migration.

Here are some of the individual rankings that contribute to Houston’s 11th-place finish:

  • No. 4 for restaurants
  • No. 7 for culture
  • No. 8 for foreign-born population

“Houston is a diverse and vibrant metro where individuals can start a family, grow their business, attend world-class institutions and universities, or be immersed in the 145 languages that are spoken by our residents,” Houston Mayor Sylvester Turner says in a news release. “The quality of life we have in Houston is second to none, and the data we receive from placements such as … Best Cities further reaffirm the strength and resiliency that has come to define this great city of ours.”

A few spots behind Houston on the Best Cities list are No. 14 Dallas and No. 15 Austin.

What lifts Dallas to the No. 14 spot? These are some of the factors cited by Best Cities:

  • Location of more than 10,000 corporate headquarters
  • Strong showing (No. 2) in the airport connectivity category
  • Kudos for the soon-to-be-expanded Kay Bailey Hutchinson Convention Center Dallas
  • Home of the country’s sixth largest LGBTQ+ community
  • Presence of the 28-block, 68-acre Dallas Arts District

Austin comes in at No. 15, one notch behind Dallas.

Best Cities praises Austin as “a place that’s incredibly livable. Talk to any entrepreneur leaving Silicon Valley or Seattle and chances are they’ve considered Austin.”

The website points to a number of Austin’s assets, such as:

  • Growing presence of Fortune 500 headquarters
  • Comparatively low unemployment rate
  • Location of the University of Texas’ flagship campus
  • Status as the Live Music Capital of the World
  • Home of the annual SXSW gathering

Two other Texas cities make the Best Cities list: No. 34 San Antonio and No. 94 McAllen.

Best Cities bases its list of the best U.S. cities on Resonance Consultancy’s combination of statistical performance plus qualitative evaluations by locals and visitors. Those figures are grouped into six main categories. This year’s ranking features 100 U.S. cities. To come up with the ranking, Resonance Consultancy assessed all U.S. metro areas with at least 500,000 residents.

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This article originally ran on CultureMap.

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