money moves

Here's what corporate venture programs are looking for from startups within the energy industry

At the recent Global Corporate Venture conference, two corporate venture execs peeled back the curtain on what they look for from startups. Getty Images

One of the challenges for Houston energy startups is not knowing what potential big corporate partners want from them. At the recent Global Corporate Venture, two corporate venture execs shared what all they're looking for and the challenges they are facing.

Diana Grauer, director of external technology engagement and venture capital at Technip FMC, and Bradley Andrews, president of digital at Worley joined a panel with moderator Wade Bitaraf, founder of Plug and Play Energy & Sustainability. The panel, entitled "How globalization and diversification can boost a local innovation ecosystem," explored what each exec looks for in potential partnerships with startups.

At TechnipFMC, which has a newer corporate investment group, Grauer says her team looks for startup technologies within four key categories, industry 4.0, digitization, materials and processes, and energy transition. Within those categories, she says they aren't looking for startups that will provide a big return on investment, rather technologies that will advance the company's capabilities.

"We're focused on strategic returns, not necessarily your conventional financial returns," she says.

Andrews echoed this point, admitting that while a big exit for a portfolio company is never bad, but Worley would rather have technologies that benefit their business platform.

"As long as [a technology is] under core strategy and driving internal strategy, we're kind of in," he says. "Anything around data science, automation, new energy, sustainability, those are all kind of sweet spots for us."

A big challenge, Andrews says, is communicating companywide the importance of looking outward for innovative opportunities, rather than relying on the company's staff.

"The idea of corporate tech startups coming to fruition within our industry is kind of new. We used to build from within," Andrews says. "We're still as an industry trying to figure out how to do this."

Grauer says that, similarily, her biggest challenge is getting pushback from within TechnipFMC of people who just think their company should fund its current workforce to find solutions. But Grauer responds to them explaining that the company needs to move faster than that and the way to do that is through working with startups. That's why the company has created an Open Innovation Program. According to Grauer, the organization expects to make its first investment by the end of the year.

For Andrews, the state of Houston's innovation ecosystem is exciting, and he notes that he looks at emerging technologies across industries. A technical solution in medicine might have an application in energy, for example. And, considering the state of the energy industry, now is the time to be more collaborative within Houston as more and more global challenges emerge.

"I think Houston has everything it needs to make a stake in this," Andrews says. "We're not competing with each other in this industry. We're competing against what the world is going to demand from us. It's time for us in corporate land and set our egos aside."

Grauer says she's seen the city's innovation resources grow over the years, noting the emergence of The Cannon, Rice Alliance, and Plug and Play.

"I really think that the energy industry in Houston is really starting to catch up and blossom," she says.

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The Texas Medical Center visited the Netherlands to secure a deal that creates a BioBridge to the country and Houston. Photo courtesy of TMC

The Texas Medical Center may be based in Houston, but the organization has again grown its global impact.

Since 2016, TMC’s BioBridges have worked with 88 startup companies. Those include strategic alliances with four other countries. Australia, the United Kingdom, Denmark and Ireland are all among TMC’s BioBridges partners. As of today, add the Netherlands to that list.

On September 27, TMC president and CEO, William F. McKeon, and Carmen van Vilsteren, chair of Health~Holland, Top Sector Life Sciences & Health (LSH), signed an agreement in Rotterdam. The TMC Netherlands BioBridge Memorandum of Understanding codifies the innovative goals of the partnership. Essentially, the BioBridge program provides a means for entrepreneurs, researchers, clinicians and industry partners from other countries to access the US market, as well as TMC experts.

“The TMC Netherlands BioBridge represents an unparalleled opportunity for collaboration and growth,” Ashley McPhail, chief external affairs & administration officer at Texas Medical Center said in a press release. “The Netherlands has solidified its position as a global leader in the field of life sciences and health, with a thriving ecosystem of research institutions, innovative companies, and highly skilled professionals. This strategic partnership will bring positive benefits to patients, clinicians and industry partners on a global scale.”

This lifeline for international healthcare companies makes expansion into the United States far smoother. The Global Innovators Launch Pad allows for startup founders to take part in a 10-week residency at the TMC Innovation Factory that will teach them about foundational infrastructure, clinical evidence and funding in the US.

“Since Texas is an important hub for innovation in the MedTech and digital health sectors, the collaboration with Texas Medical Center creates opportunities for Dutch companies looking to expand their international reach. Vice versa, it gives companies in Texas access to the vibrant Dutch Life Sciences & Health sector,” said van Vilsteren.

That exchange includes members of the TMC gaining the opportunity to participate in the Health~Holland Visitors Programme (HVP), “Shaping the Healthcare of the Future.”

The annual event invites high-level representatives from the private sector, NGOs, knowledge institutions, healthcare providers and different tiers of government to share their expertise.

It's the fifth partnership of its kind for TMC, with the last one being with Ireland, announced last year. TMC's other global initiatives include accelerators with Denmark and the United Kingdom, both announced earlier this year.

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