Masschallenge accepted

International accelerator launches next program in downtown Houston

Midway's GreenStreet in downtown will be the site of MassChallenge Texas' Houston program. Photo via greenstreetdowntown.com

Houston entrepreneurs will have a new accelerator program to choose from — and this one has an international presence.

MassChallenge Texas, which launched in Austin last year, has expanded to include a Houston program that will operate out of downtown's GreenStreet, which is owned and operated by Houston-based Midway Cos. Applications for the 2019 cohort open in April, and the six week program runs from July through August.

The program looks for applicants that haven't raised more than $500,000 in equity-based funding and have generated less than $1 million in revenue over the past year, a release says. The cohort will support 25 startups with free GreenStreet office space, mentorship, investment opportunities, and more, all the while taking no equity in the companies.

By expanding to Houston, MassChallenge Texas is continuing its commitment to strengthening and growing the innovation ecosystem across the Lone Star State, working to make Texas the best place in the world to innovate.

Almost two years ago, the city released a report in which a task force investigated matters pertaining to innovation in Houston.

"In this report, we realized that Houston has a thriving innovation economy, but its potential is limited by the absence of a flourishing startup community," says Mayor Sylvester Turner in a release. "A key recommendation was to create critical mass in a few key areas with access to 'legacy industry' and institutional players as well as an unparalleled array of amenities."

On par with this dedication to developing innovation in Houston, the Downtown Redevelopment Authority has approved an economic development grant to operate the program. The grant will cover up to $2.5 million of operation costs to be distributed to the organization over five years, the release says.

"MassChallenge is an opportunity that we pursued in earnest," says Bob Eury, president of Central Houston and the Downtown Redevelopment Authority, says in the release. "[The grant is] an investment that we believe will garner long-term results for the GreenStreet development, Downtown and the Houston region."

MassChallenge also has locations in Boston, Israel, Mexico, and Switzerland, as well as vertical programs focused on digital health and fintech. Its Texas program was the second location in the United States and the seventh in the world. Since the April 2018 launch in Austin, MassChallenge Texas and its partners have worked to accelerate 84 companies from 5 continents, 11 countries, and five Texas cities and doled out $500,000 to startups.

"The success of the inaugural MassChallenge Texas accelerator proves that the MassChallenge model works in Texas," says John Harthorne, CEO of MassChallenge, in the release. "Houston has a strong emerging entrepreneurial ecosystem and is home to technology-advanced legacy industries—such as energy, life sciences and aerospace — that can be leveraged to help startups at their earliest stages. We are excited to bring MassChallenge to Houston."

Ahead of entering the Houston market later this year, Silicon Valley's Plug and Play hosted three days of programming surrounding innovation in energy and health care. Natalie Harms/InnovationMap

Plug and Play, a Silicon Valley venture capital firm and accelerator program, plans to launch its operations in Houston later this year. And, in showing its commitment to the Bayou City, the organization hosted three days worth of panels, talks, and pitches at the Texas Medical Center's TMC Innovation Institute earlier this month.

Houston Innovation Week was Plug and Play's formal introduction to Houston startups and the local corporations that have the potential to support them. The programming focused on health and energy and sustainability, and the summit concluded with TMCx's Demo Day.

If you missed the event, we've hit the highlights for you by rounding up nine powerful quotes overheard throughout the week.

“Nowadays, I feel every industry is going to go through an incredible digital transformation. Even the oil and gas industry, which is very capital heavy, there’s going to be a layer of fast-moving technologies which would help the industry be more efficient. This is the crossroads where Plug and Play was born — bridging the gap between the entrepreneurs and the technologies. That changes an industry.”

— Saeed Amidi, CEO and founder of Plug and Play, says. He also shares the story of how Plug and Play got its start from a few lucky early investments to making over 150 investments a year.

“Now we have about 30 offices, and then quite frankly I realized I had forgotten about America.”

— Amidi says, announcing that Plug and Play will open five new offices across the United States in the next six months to a year.

“We’re not walking in terms of building this integrated robust innovation ecosystem, we’re sprinting in that direction.”

— Mayor Sylvester Turner says, adding that, "If there is any city that ought to be leading the way when it comes to startups, technology, and innovation, it ought to be the city of Houston."

“You have to get people to invest more. It doesn’t happen on its own. People have to see that if we invest, we’re going to get a return.”

— Mayor Turner says, calling the crowd to action. "You can't just talk about what others have done and what we have accomplished. You have to take that now, build the platform, and move into where we are going."

“One of the things you look at is it’s not the technology itself that’s going to make you win or lose, it’s what you do with it.”

— Barbara Burger, president of Chevron Technology Ventures, responding to a question about what technologies she has her eyes on. Burger continued on to say that, while she couldn't highlight any technologies in particular — it's like picking a favorite child, she's always evaluating how a new technology would help with the affordability, reliability, and lower environmental impact. "That's the game," she says.

"Management is amazing at suppressing innovation. … We can move toward just trying not to suppress it. If someone has an idea, they are safe to go through the process and raise their hand."

— Bradley Andrews, president of digital at Worley. "I think it's a change in attitude," he says about how management can evolve to advance ideas within energy companies.

“It’s easy to say that we’ll do the thing that gives us the most competitive advantage — and it’s really hard to figure out what that means and how you do that. In general, if we see something that’s out there and implemented that someone else has done, I don’t need to create an internal capability like that. I just need to go access that.”

— Doug Kushnerick, senior technology scouting and venture adviser at ExxonMobil. For Kushnerick, technology solutions that fix specific problems are easy to go after, but things that affect big picture and strategic assets are harder to figure out if they are worth implementing.

“One of our big asks from our partners from an internal perspective is really to have a champion — whether its an innovation manager or someone who really advocates these startups internally. Someone who will find the clinician and the business unit and tap the legal team.”

— Neda Amidi, global head of health and partner at Plug and Play Tech Center, responding to a question about opening up the channels of communications between startups and large companies. She adds that it's a requirement for these people to visit a Plug and Play location four to six times a year.

“What I see from a culture perspective is that it really starts with the leadership in the institution. If the people at the top in the C-suite of the institution are focused on understanding why their organization isn’t performing as well as they expect it to be and are willing to look to the outside, that’s how it starts in my mind.”

— Thomas Luby, director TMC Innovation Institute, responding to a question from the audience about large organizations that tend to be slower adaptors to new technologies.