Startup wishlist

Houston needs 4 things to emerge as a startup hub, according to this entrepreneur

Houston has the potential to be a great place for startups, but it might need some fine tuning. Photo by Scott Halleran/Getty Images

I often think about why Houston's entrepreneurship ecosystem hasn't taken off as much as it should, given the talent pool and the industrial gravity that's concentrated here.

I joined Station Houston as one of the very early members in January of 2016 and since then been watching all the moving parts in the Houston innovation ecosystem as an entrepreneur. I wanted to share four practical ideas on how Houston can emerge as a startup hub.

1. Houston entrepreneurship needs to focus on deep tech and multidisciplinary endeavors
I believe a lot of breakthrough innovations will come from the interaction between different scientific disciplines or industries. We can target startups built on multidisciplinary sciences and provide a support system for them to thrive in Houston. We have the absolute best engineers, rocket scientists, and doctors in Houston, yet they aren't talking to each other as much as they should. Programs like Pipes and Pumps are great, but we need a modernized initiative that goes beyond holding a one-day event per year. A methodical and continuous program that brings professionals from energy, space, and medicine together to address the challenges these industries face. This may sound crazy, but it works. For example, my last startup commercialized DNA Sequencing in the oil and gas industry. Another startup is using microfluidics to simulate the reservoir, and there are startups using satellite data to identify methane emissions. Now, imagine if we were systematically identifying these opportunities and incubating these startups in Houston. We would be unstoppable and, more importantly, we would be ourselves. Let's help our entrepreneurial doctors, scientists, and engineers launch deep technology startups instead of trying to make apps.

2. Houston needs a structured startup program
Let's be honest, coworking space and 30-minute sessions with mentors isn't going to cut it. First-time entrepreneurs need a lot of help to gain experience and kick start their business model. What's missing is a structured program that can take a talented entrepreneur from the idea stage to raising their seed round (better or at least similar to Creative Destruction Lab or Breakout Lab).

3. Focus on helping the entrepreneurs, and the ecosystem will flourish
Any initiative around entrepreneurship that doesn't boil down to helping entrepreneurs is effectively useless. We need to pass all activities through the "entrepreneur benefit" filter. The current suite of entrepreneurship activities in Houston are skewed towards self-celebratory warm and fuzzy feeling for the ecosystem; we need to shift the attention and resources to entrepreneurs who are in the trenches trying to make it to the next level. Once we have good entrepreneurs, we will have good exits which makes investors happy and incentivize them to invest more. Those entrepreneurs then start building other companies or turn investor and this cycle gradually builds the ecosystem. What's happening now is quite the opposite; all the attention is on building the ecosystem and hoping that it's going to make everything else happen/

4. Houston could be the home for moonshots
Moonshots come from the application of deep technology, and I can't think of a better place to be the home for moonshot startups than Houston. From cure for cancer to rockets to Mars, to reversing climate change via CO2 capture and utilization. That said ideating and incubating moonshots requires vision and the appetite for risk-taking. The good news is that this model really works. As proof look at the OS Fund amazing and astronomically successful portfolio of the companies. According to Bryan Johnson, "OS Fund is investing in deep tech companies that marry hard science and technology to solve big problems and make money." We need a new breed of investment firms such as OS Fund in Houston.

Imagine if we had a portfolio of multidisciplinary deep technology startups in Houston, going through a rigorous program and had the support of the Houston industrial magnets and investors to take off. Now that's what Houston deserves.

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Moji Karimi is co-founder and CEO of Houston-based Cemvita Factory Inc.

Cemvita Factory has made a deal with Houston-based Oxy subsidiary. Courtesy of Cemvita Factory

A Houston startup's carbon dioxide conversion technology has impressed Occidental Petroleum's low carbon subsidiary.

Oxy Low Carbon Ventures LLC has invested an undisclosed amount of funds into Cemvita Factory, the companies announced on August 15.

"One of OLCV's strategic priorities is to develop and commercialize CO2 utilization technologies that complement Occidental's core businesses and product lines, with the goal of helping Occidental find value in new markets and attain its aspiration of becoming carbon neutral," says Richard Jackson, OLCV president, in a news release. "Cemvita Factory's CO2 utilization platform has the potential to harness the power of nature and create new, sustainable pathways for the bio-manufacturing of our products."

Cemvita was founded by two siblings — Moji Karimi, who has a background in the oil and gas industry, and his sister, Tara, who has a background in biotech. Cemvita's biotechnology can replicate photosynthesis — absorbing CO2 and transforming it into glucose or other substances.

While the amount invested in Cemvita isn't disclosed, Moji previously told InnovationMap that he could run a custom pilot program for an energy company for less than $100,000.

"With the investment received from Oxy Low Carbon Ventures, we plan to demonstrate that our technology can economically scale from test tube to the field," Moji, who is the company's CEO, says in the release.

According to the release, Cemvita has a network of clients it is working with to reduce the industry's carbon footprint.

"We have an ambitious goal to take one gigaton of CO2 out of the carbon cycle in the next decade and are very excited about being a part of Occidental's journey to become a carbon-neutral company," says Tara, co-founder and chief scientist, in the release.