HOUSTON INNOVATORS PODCAST EPISODE 27

New Houston startup pivots to provide relief for small businesses struggling to pay rent

Josh Feinberg's fintech startup might be a solution to your lack of capital amidst the COVID-19 crisis. Photo courtesy of Tenavox

Josh Feinberg hates security deposits. It's a sum of money sitting in an account, not earning interest and not doing either the landlord or the tenant any good.

That's why Feinberg and his co-founder, Marissa Limsiaco, created Otso. The duo previously founded Tenavox, an online portal for commercial real estate listings for brokers to generate leads, and have now launched this fintech platform that provides landlords with an alternative to cash security deposits.

Feinberg teamed up with Euler Hermes, a 135-year-old credit insurance company, to create Otso, and the credit company backs the lease performance of each tenant that is approved by Otso. The transaction calls for a fee added to the rent, but no large cash deposit would be required.

Both landlords and tenants can apply for Otso, and the process can be done with a new lease or an addendum for existing leases — something that Feinberg sees as an opportunity considering the financial burden COVID-19 has put on startups and small businesses.

Feinberg tells the Houston Innovators Podcast that, while he originally envisioned Otso to be a new deal product for landlords to offer an alternative to cash deposits, he saw the tool as an opportunity for small businesses struggling to pay rent that have a shortage of liquidity. He tossed out the original marketing plans and pivoted to present Otso as that liquidity solution for small business tenants.

"The cool thing about having a startup is that, unlike a big business, you can be really nimble," Feinberg says in the episode.

The COVID-19-caused crisis has rocked the commercial real estate industry. On a recent call with around 30 brokers, Feinberg says none of them had made a deal in the past month.

"This is the first time I've ever seen the entire market basically grind to a halt," he says.

On the episode, Feinberg shares some advice for startups worried about their relationship with their landlords. He stresses how important communication and tapping into resources available online like Otso, which has a slew of info online.

"Real estate is a team sport," Feinberg says. "You need these advisers now more than ever — talk to your landlord and your broker."

There's no doubt for Feinberg that the country is going to recover, and the biggest question marks are regarding timeline. Ultimately, innovative companies will pull through and might even be better for the challenges overcame.

"Great companies are built during crises — that's been true for a very long time," "There are smart people working on big problems no matter what the economy or outside markets are doing. And when they are able to survive periods like this, they come out significantly stronger than their competitors and weaker or outdated concepts."

Feinberg joins the Houston Innovators Podcast to discuss Otso, advice for startups keeping lean, and where the government's next round of relief should go to. Listen to the full episode below — or wherever you get your podcasts — and subscribe for weekly episodes.

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Building Houston

 
 

Check out this curated list of innovation events in Houston for April. Photo via Getty Images

It's time to look at what's on the agenda for April for Houston innovators — from pitch competitions to networking events.

Here's a roundup of events not to miss this month. Mark your calendars and register accordingly.

Note: This post might be updated to add more events.

April 4 — A.I. Digital and the Future of Energy

In the latest installment of UH Energy's "Critical Issues in Energy" Symposium Series, the speakers will take a deeper dive into the role of A.l. within the energy marketplace, specifically with what is being done with A.I. and what is capable of being done. In addition to this pivotal look at one crucial aspect of the energy transition, attendees will be afforded networking opportunities with speakers and distinguished guests, and food/refreshments will be provided.

The event is Tuesday, April 4, from 5:30 to 7:30 pm, at the University of Houston. Click here to register.

April 5 — Creating & Sustaining Innovation & Entrepreneurship

Join us for a fireside chat discussing the growth of entrepreneurship & a panel on demystifying the patent process.

The event is Wednesday, April 5, from 9 to 11:30 am, at the Ion. Click here to register.

April 5 — HAN Angel Academy

Learn angel investing best practices from Capital Factory co-founder and chairman, Gordon Daugherty in a half-day bootcamp format for accredited investors.

The event is Wednesday, April 5, from 11 am to 4 pm, at Rice University - Shell Auditorium. Click here to register.

April 11 — Future of Health Care

The Greater Houston Partnership's inaugural Future of Health Care event highlights one of the region's major industry sectors driven by world-class institutions and professional talent.

The event is Wednesday, April 11, from 10:30 am to 1:30 pm, at the Royal Sonesta. Click here to register.

April 11 — Idea to Impact: Navigating the Challenges to Commercializing University Discoveries

Amazing discoveries are made in university labs every day, yet most of them never develop into widely accessible commercial products. Why? And what can universities do to change that? As part of Rice University's "Betterment of the World" Scientia Lecture Series, join Rice Business on April 11 at 4 pm virtually or in person (Shell Auditorium, McNair Hall) to hear Yael Hochberg, Professor in Entrepreneurship at the Jones Graduate School of Business, as she discusses the challenges in commercializing university research discoveries.

The event is Wednesday, April 11, from 4 to 5 pm, at Rice University and online. Click here to register.

April 11 — Greentown Houston Climatetech Career Fair 2023

Greentown Labs and ALLY Energy welcomes all professionals, students, and soon-to-be graduates to join us for the Greentown Houston Career Fair, which focuses on connecting professionals directly with Greentown Houston’ network of founders, CEOs, and cutting-edge climatetech startups looking for bright and eager talent.

The event is Tuesday, April 11, from 4:30 to 6:30 pm, at Greentown Houston. Click here to register.

April 15 — Earth Day Clothing Swap Party with Sustainable Fashion & Earth Month HTX

A clothing swap is a fun, alternative solution to thrift shopping or secondhand fashion that allows you to clean out the clothes you no longer wear and in return bring home new additions to your closet - all for free and hosted by Houston startup RESTATEMENT.

The event is Saturday, April 15, from noon to 5 pm, at Patterson Park. Click here to register.

April 17-18 — AI Powered Renewable Energy Workshop

AI Houston Institute of Rice University in partnership with Ion is getting together experts from academia and industry working on the application of artificial intelligence in solving some of the most complex challenges facing the Energy industry as it transitions into alternative sources of energy that are green and sustainable.

The event is Monday, April 17, to Tuesday, April 18, at the Ion. Click here to register.

April 19 — Investor Studio Series: Dream Big Ventures x Ion x Mendoza Ventures

Underrepresented founders face a lot of barriers, including rarely seeing VC dollars. However, Dream Big Ventures and Mendoza Ventures are looking to change those statistics to help diverse founders succeed. Join Dream Big Ventures Founder and CEO Staci LaToison, and Mendoza Ventures Co-Founders Senofer Mendoza and Adrian Mendoza, as they discuss the growth of women and Latinas in Fintech, AI, and Cybersecurity in this fireside chat.

The event is Wednesday, April 19, from 5 to 7 pm, at the Ion. Click here to register.

April 19 — The H. Albert Napier Rice Launch Challenge Championships

Join Liu Idea Lab for Innovation and Entrepreneurship and support Rice University student ventures at the H. Albert Napier Rice Launch Challenge (NRLC) Championships on Wednesday, April 19. Five student finalists will pitch their ventures to compete for the chance to win a share of $100,000 in equity-free funding.

The event is Wednesday, April 19, from 5:30 to 9 pm, at Rice University. Click here to register.

April 20 — Female Founders and Funders

Calling all rockstar female founders and investors in the Houston area. Mark your calendars for this month's Female Founders and Funders meetup. Coffee and breakfast is provided and the event is free to attend.

The event is Thursday, April 20, from 9 to 10 am, at Sesh Coworking. Click here to register.

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