eavesdropping in Houston

Overheard: Experts discuss why Houston is the next hub for tech investing

HX Venture Fund recently hosted a virtual panel on how the tide has turned in Houston when it comes to tech investment. Getty Images

When Joe Alapat, co-founder and CEO of Liongard, was first getting started on his company, he says a few people recommended he go to Austin or one of the coasts to give his software company a better chance.

"For me, the thought process never really entered my mind that Houston was a place where I would be challenged in doing what I do well. My network is here," Alapat shared on a virtual panel hosted by the HX Venture Fund.

Turns out, it was a good decision. Liongard recently closed a $17 million series B round led by Updata Partners, a portfolio fund of HXVF. Moderated by Brian Richards of Accenture's Houston innovation hub, the panel asked Alapat, Sandy Guitar of HXVF, and Carter Griffin of Updata why Houston is the next hub for tech investing. Here are some key moments from the discussion.

“We’re cautious when we go into places — like Austin and Boston — where there’s a lot of activity both on the company side and the investor side. We’d rather find the opportunities where things aren’t as competitive and frothy, and you’re really dealing with people trying to build a real business, serve customers, and build value in the right way, and not just catch lightning in a bottle and build the next unicorn.”

—says Griffin about Updata's strategy of looking at cities like Houston in the middle of the country.

“A lot has changed in the past couple of years — the thought process, the awareness, as well as the willingness for folks to think about Houston as a place where you can build a startup.”

— says Alapat about how Houston's startup ecosystem has evolved since he started Liongard in 2015. He later notes that Houston's innovation leaders have done well to not copy other metros, but listen and learn from the successes and mistakes of other innovation cities.

“There was this feeling that we needed to be uniquely Houston — we couldn’t replicate Silicon Valley or Austin, we needed to be us. But we were going to have to do things differently. We couldn’t keep doing the same things and expecting this [change.]”

— Richard says, noting the corporate mindset, among other aspects of the ecosystem, shifted to be more focused on startups.

“The VCs are very interested in engaging in this model. So, we’re spoiled for choices is one way of saying it.”

— Guitar says on interest from venture funds in HXVF, noting that the VCs see an opportunity for their portfolio startups to connect with HXVF's corporate partners.

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Building Houston

 
 

HOUSTON INNOVATORS PODCAST EPISODE 154

Houstonian designs new experiences to encourage innovation in students

Sarah Essama of Teach For America Houston shares how she innovated a new way for students themselves to learn how to innovate. Photo courtesy of Sarah Essama

As director of social innovation at Teach For America Houston, it's Sarah Essama's job to come up with new ways for the organization to support both students and teachers. But, as she explains on the Houston Innovators Podcast this week, Essama realized a huge lesson modern students needed was to learn this innovation process themselves.

Part of being an educator is to prepare students for tomorrow, Essama explains, but with rapid technology development and adaption, no one knows what the future will hold for the job market or the world in general. The best way to prepare the future generation of the workforce is to teach them how to innovate, think differently, and adapt to new ways of doing things.

"That's what people are looking for right now — people who can provide out-of-the-box solutions to problems," Essama says on the show.

This line of thinking turned into Essama founding The Dream Lab, powered by Teach for America Houston.

"The Dream Lab is a set of immersive design spaces where young people leverage their imagination and creativity to innovate and solve problems within their community," she explains.

Last month, the new concept rolled out to high school students in partnership with DivInc Houston, a nonprofit focused on social and economic equity in entrepreneurship, and 21 ninth graders spent the day at the Ion for a mini-innovation accelerator and design showcase.

Strategically, Essama tapped into the Houston innovation ecosystem with the intent of showcasing the community.

"Innovation to me is being able to create something that has never been seen or done before — and that has a very important purpose," she says. "Exposing ourselves to innovation and people who think this way — and learning from them —is key to be able to be competitive tomorrow."

Essama says this program is still in the development phase. She's been testing out the concept with fourth graders and now ninth graders. She hopes the full program will be up and running by next fall.

She shares more details about the grant and the future of The Dream Lab on the podcast. Listen to the interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

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