then and now

Houston e-commerce innovators analyze the city's tech and innovation evolution

Jay Steinfeld (left) looks back at his successful Blinds.com exit, and Omair Tariq shares how Cart.com is growing. Photos courtesy

When Blinds.com was acquired by Home Depot in 2014, it was a big moment for Houston's nascent tech and innovation ecosystem. However, Jay Steinfeld will be the first to tell you he did not expect to go through a major exit when he founded what he describes as a marketing experiment for his interior design store.

"I heard about something called 'the World Wide Web,' and I thought for $1,500, I'll create a website," Steinfeld says. "I wanted to see what it was and if I could attract people to my store. Next year, Amazon started selling books, and in 1996, I thought I'd see if I could sell this stuff."

However initially unintentional, Steinfeld created a profitable business and very intentionally grew his team with the addition of entrepreneurial-minded individuals, which included Omair Tariq. Tariq is now the founder and CEO, Cart.com, an ecommerce company that's raised $380 million in funding and is providing a suite of software services for merchants. The two sat down to discuss their entrepreneurial journeys with Scott Gale of Halliburton Labs at a Houston Tech Rodeo fireside chat.

Both entrepreneurs credit business success on creating an unparalleled employee culture that fostered a positive workplace environment that reduces turnover.

"We were very deliberate at making people knew that they were important and consequential," says Steinfeld, who recently wrote a book about creating a core culture. "We were doing consequential things by helping people become consequential. ... It really comes down to being respectful to people."

Tariq says setting up Cart.com's culture was a task he dedicated a significant amount of time to. Cart.com grew from 0 to 1,000 employees in just 14 months, so maintaining that culture at that rate of scaling was going to be difficult without the right structure in place. Tariq and his team created six core values, and decisions get put through the lens of these values.

"Building a culture — while you have to be intentional and deliberate about it — the reality is it just happens, if you get the framework right," Tariq says.

And it's not just about putting your core values in the employee handbook or on a wall in the office, but actually celebrating employees who are excelling at the execution of the values. Tariq gives the example of Cart.com's slack channel dedicated to this type of shoutouts.

In terms of hiring at such a quick pace, Tariq explains his mentality when it comes to making sure employees are a fit for the company.

"You've got to be coherent in the way you execute," Tariq says, adding that a lack of coherency leads to major mistakes in a nearly $400 million-backed tech company. "We have a very intentional policy — hire fast, fire faster, promote fastest."

Another ingredient in a successful business is developing a brand. Tariq says this is something that's more crucial than ever — especially for Cart.com, which is competing with the likes of Amazon.

"In today's world, the importance of brand is exponentially more than it was in the pre-Amazon world," Tariq says, explaining that a brand can include exceptional customer service or a best-in-class product.

Cart.com's brand and culture were intentional from inception, but the actual business plan pivoted, Tariq shares with the audience. Originally envisioned as a marketplace, Cart.com's first acquisition was a cardboard box company, which in retrospect Tariq says wasn't the best move. But, the business accounted for the majority of Cart.com's revenue, which showed promise to potential investors, he says. The business did evolve to what it is now — merchant enablement technology — but that didn't happen overnight and came with time.

"You rarely know how to get to C, until you get to B," Tariq says. "If you spend all your energy trying to figure out how to get to C, you're never going to get to B. Sometimes you have to make really dumb moves or mistakes and just pivot and iterate and improve."

The latter half of the discussion included a question from Gale about the role the city of Houston played on business success. For Steinfeld, he says the lack of competition allowed him to attract the best team members.

"While all the investors outside of Houston said, 'you can't run a tech company out of Houston — there's no talent,'" Steinfeld says. "Any talent there was came to us. We weren't competing with Facebook or any other companies."

He continues saying he wishes there were more venture funding and activity coming into Houston, but the people in town are so entrepreneurial, that he says it's confusing how the city's innovation ecosystem hasn't taken off more than it already has.

Tariq has a different perspective of hiring out of Houston. While he says he loves Houston and has no plans to relocate himself or his family, being headquartered in Houston was difficult and the city's lack of appeal in terms of recruiting is what led to him moving his HQ to Austin.

"It's an amazing city with the most amount of diversity I've seen than anywhere in the country. Every third person is a minority or an immigrant, and that is valuable. It brings different perspectives and allows you to get people with different ideas to contribute," Tariq says, adding that the cost of living, tax incentives, academic institutions, capital, are all huge appeals.

"Why is there not more innovation happening here?" Tariq asks. "The things we struggled with at Cart.com is people didn't have the right perception of Houston. What I mean that is people never think of Houston (as a really cool place to move to). It sounds really shallow, but there are little things that I think other cities do better than us that create a good perception of a city is what we need."

Regardless of HQ location, Tariq says Cart.com is a remote-first business and is continuing to grow its team with plans to IPO within the next year.

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Building Houston

 
 

A new report says Houston “is poised for further growth” in life sciences. Photo via Getty Images

Houston is receiving more kudos for its robust life sciences sector.

Bayou City lands at No. 13 in JLL’s 2022 ranking of the country’s top 15 metro areas for life sciences. JLL says Houston “is poised for further growth” in life sciences.

Here’s how Houston fares in each of the ranking’s three categories:

  • No. 12 for supply of life sciences-oriented commercial real estate
  • No. 14 for access to life sciences talent
  • No. 15 for life sciences grant funding and venture capital

Earlier this year, Houston scored a 13th-place ranking on a list released by JLL competitor CBRE of the country’s top 25 life sciences markets. Meanwhile, commercial real estate platform CommercialCafe recently placed Houston at No. 10 among the top U.S. metros for life sciences.

JLL applauds Houston for strong growth in the amount of life sciences talent along with “an impressive base of research institutions and medical centers.” But it faults Houston for limited VC interest in life sciences startups and a small inventory of lab space.

“Houston is getting a boost [in life sciences] from the growing Texas Medical Center and an influx of venture capital earmarked for life sciences research,” the Greater Houston Partnership recently noted.

Boston appears at No. 1 in this year’s JLL ranking, followed by the San Francisco Bay Area, San Diego, Washington, D.C./Baltimore, and Philadelphia.

Last year’s JLL list included only 10 life sciences markets; Houston wasn’t among them.

“The long-term potential of the sector remains materially unchanged since 2021,” Travis McCready, head of life sciences for JLL’s Americas markets, says in a news release.

“Innovation is happening at a more rapid pace than ever before, the fruits of research into cell and gene therapy are just now being harvested, and revenue growth has taken off in the past five years as the sector becomes larger, an atypical growth track.”

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