Featured Innovator

TMC Venture Fund director shares how the organization is growing its global presence

Juliana Garaizar has worked around the world. Now she's taking her international expertise and using it for global initiatives within the Texas Medical Center. Courtesy of TMC

In November, when the Texas Medical Center launched its venture fund closely tied to its accelerator program, they were betting on the ecosystem — and the organization itself.

TMCx was seeing a lot of achievement from its cohorts, TMC Venture Fund Director Juliana Garaizar says, and it was time to expand on the impact they were making in life science innovation.

"While we thought we had so many success stories, we felt like we weren't really taking advantage of them," she says. "So, we bet on the ecosystem and started the fund. It was the next logical step into the creation of value after the program."

The $25 million nonprofit fund is all TMC money, and the fund plans to invest around $2 million a year. All the investments made are to companies that have a tie to TMC — through the accelerator program or a shared workspace, for instance. Funding grants range between $250,000 to $500,000, and can go up to $1 million in a deal, Garaizar says. Ten companies have received investments, with five more soon to be announced.

"I see us like a corporate venture fund that invests not only in companies that have a good ROI but also that can bring value to the TMC as a whole," Garaizar says.

Garaizar knows quite a bit about investing. Born in Spain near the French border, she's worked in finance around the world from Singapore to London before settling in Houston. Prior to TMC, was the managing director at the Houston Angel Network. Now, she's using her international investment know how to help grow TMC's global presence.

InnovationMap: How has your international background helped you here in Houston?

Juliana Garaizar: I think TMC wants to be positioned as a strong competitor to the East and West Coasts as a point of entry for companies coming to the United States, but also for technology and commercializations from hospitals. The fact that I'm already very connected to other countries — not only from the funding side but also from the research side, is really helpful.

IM: You are also connected with international consular representatives — how is that an asset to TMC?

JG: Houston has the third-most number of consular representatives in the U.S., which makes it easier for the TMC to connect with other countries because a lot of the consulate entities are here. And that's a big reasons the biobridges initiatives was created. We were receiving a lot of interest from these entities.

IM: Tell me about your involvement with TMC's Biobridge program.

JG: It's an international partnership between the TMC and different countries. They've already started with the UK and with Australia. The collaboration focuses on joint research and there's the commercialization part and the funding part — I'm mainly taking care of the funding part. We want to try to not only have the joint research and commercialization, but that those efforts get funded — not only from our side but also from the other country's side. We really believe that the biobridges can be a perfect source for deal flow for our funds. As you can see in your interview with Lance [Black], we have more and more international companies in our TMCx cohort. We believe we are positioned in the perfect way to become the point of entry of many excellent life sciences companies all over the world.

IM: How does Houston's VC ecosystem compare to some of the places you've worked in?

JG: London was very accepting of differences and open to any kind of innovation coming from all over the world. It's very easy for them to invest in deals coming from early stage and other countries. That's a little different from the U.S. One of the differences I saw coming from the early stage investment in Europe, we are pretty used to cross-border investing because our countries are pretty small. If we only had deals coming from our countries, we wouldn't get very far. So, we were very used to dealing with different tax rules, contracts, and navigating all that. One of the things you hear from U.S. investors is that they want the company they want to invest in to have a presence here. That's just not the case in Europe.

Another one of the things I also noticed was there is less money as a whole in Europe. As an entrepreneur, you really needed to learn to work together. The European Union and the French government, for instance, would only give funding if you had put a project together with partners from different countries, has private-public partnerships, and an educational institute — otherwise you wouldn't get the money from the government. That's not required here in the U.S. because there's more capital here. I can feel sometimes we are not as forced to collaborate here, and in some ways I see a lot of initiatives that are kind of reinventing the wheel. Sometimes I think if we put more resources and if we were more aware of what was going on in the ecosystem, we could get more synergy and collaboration together.

IM: How is TMC's fund different from others in Houston?

JG: From the acceleration side of things, TMCx is different from most in that we don't take any equity. A lot of companies that are not in a typical accelerator stage and have raised a couple rounds of funding even decide to come to TMCx because of this reason and because there's a lot of opportunities from the program including connections. That's our competitive advantage, to have these companies that are more advanced.

IM: What are some of your goals for the fund?

JG: Short term, I've been focusing on securing a lot of deal flow sources. I wanted to make sure I could bring my network in.

In the long term, we would like to raise a bigger fun, around $100 million fund. We would need to make sure we have our deal flow ready for that, and a big part of that would be international deal flow.

Maybe, we've discussed this, but in the shorter term, before raising that $100 million fund we might take some of the offers that some people have put on the table to create a sidecar fund. It would be another structure that would follow our fund, as a sort of index or passive instrument that people can use to invest alongside us.

IM: How does the industry get more women into venture capital roles?

JG: We need to take matters into our own hands as women. Often, people say there's not enough women in venture funding because there's a pipeline problem, which comes from education in STEM. I think that's an excuse. A lot of VCs hire their friends and people they know. I really believe that women need to harness their financial power and start investing in things they consider important to them. I became a lot more vocal in what I wanted to see and I started investing myself. At the end of the day, women make 80 percent of the purchasing decisions, so we might as well be deciding what's in the market if we're the ones buying it.

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Portions of this interview have been edited.

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Building Houston

 
 

Houston is hosting a bit of a tech takeover next week. Photo via Getty Images

For the second year, Houston Exponential has tapped into the Houston innovation ecosystem to coordinate a week of events to speak to the city's startups, investors, and startup development organizations.

Houston Tech Rodeo will feature over 160 events between May 16 to 23 both online and all across town. From panels and meetups to office hours and pitch events, there's a lot to navigate in the second annual week. For a complete list of Tech Rodeo events (most of which are free), head to the website.

Here are the events you should make sure not to miss. (InnovationMap is a partner for the event.)

Note: You must register for HTR to be able to register for each event. For that reason, the event pages aren't linked directly. Find the information for each event through the HTR event website under the agenda tab, then sort by the day to find the specific event.

Monday: Gettin' in the Game with Master P: A Fireside Chat

The second annual Houston Tech Rodeo kicks off with hip-hop mogul, actor, producer, entrepreneur, and philanthropist, Percy (Master P) Miller on Monday, May 17, at 8 pm. "Gettin' In the Game with Master P" will be an exclusive fireside chat with the legend himself, interviewed by A-List Angels author and former Forbes editor, Zack O'Malley Greenburg. Hear about Master P's journey going from an international rap artist to a CEO, avid investor, and founder of Nemesis RR-- adding diversity in the automotive industry and empowering a culture of dreamers.

The event is free and available online. Register online.

Other Monday online events not to miss:

  • 11 am — HTX: Building a Thriving & Inclusive Innovation Ecosystem — join leaders from across the region's startup ecosystem, including Halliburton Labs, DivInc and The Ion, as they discuss how Houston has become a thriving hub for digital technology while fostering a culture of inclusive innovation.
  • 3 pm — All Roads Lead to Houston - Cross Industry Collaboration, the Intersection of Innovation — this event will focus on the "how" rather than "why", systemic barriers to collaboration, and available resources to analyze, de-risk and solve technology problems through meaningful collaboration.

Tuesday: Unleashing Innovation for Resilience in Disaster and Risk Mitigation

Tired of the hurricanes, snow and ice, COVID and just about every other disaster affecting Houstonian's businesses, homes, communities? Join risk mitigation experts for an in-person and virtual panel on May 18 at 2 pm. The panelists will address how Greater Houston becomes an innovation hub for pre-disaster and risk mitigation across droughts and floods, spills and leaks, fires and explosions, health and pandemics...and engages diverse populations for inclusion as entrepreneurs and mitigated locations.

The event is free and available online. Register online.

Other Tuesday online events not to miss:

  • 11:30 am — Demystifying Med Tech & Digital Health InvestmentsAttend this event to learn from the experts on what investors are seeking in digital health and med tech.
  • Noon — Made in Houston: Building Houston's Digital FutureHouston is on a mission to lead the way in digital transformation. How governments and corporations should accelerate the use of tech solutions and services while balancing the concerns of individuals on the adoption of such tools?
  • 5 pm (hybrid) — HTX Sports Tech: Panel & Happy Hour — HTX Sports Tech is hosting an in-person and online happy hour discussion between Houston's esports and sports industry leaders as we'll discuss the landscape of the esports and sports tech industry, share ideas on the role the industry can impact Houston's developing tech ecosystem, and opportunities to shape the future of the industry through innovative and collaborative efforts.

Wednesday: How Will Innovation Create a Diverse Rising Tide Within Houston's Ecosystem?

Houston is building a thriving innovation ecosystem, but innovation itself won't advance diverse economic prosperity given the status quo. So the question is…how will Houston leverage the city's biggest asset — its diversity — to maximize our potential? Panelists discuss at the online event on May 19 at 11 am.

The event is free and available online. Register online.

Other Wednesday online events not to miss:

  • 11 am — The Big Deal with EsportsDid an esports tournament really sell out the Staples Center? Did the winner of the Fortnite World Cup really make more than Tiger Woods in the Masters? Is esports really bigger than Major League Baseball? Join the discussion on how esports is transforming the business of competitive entertainment.
  • 3 pm — How 3D Printing Can Transform Houston's Manufacturing LandscapeJoin Houston 3D printing experts as they discuss the changing manufacturing landscape of the city and highlight the importance of innovation, economic impact, and sustainability through the adoption of industrial 3D printing technologies.
  • 4 pm — Rice Business Entrepreneurship Association Presents: Throw Your Wild Idea into the Arena First Pitch Competition Have you identified a problem space and a tech-enabled potential solution? The Rice Business Entrepreneurship Association wants to hear your early-stage wild idea. Come make your 90 second pitch and seek advisors, team members, and helpful feedback on your concept. Submit your info here.

Thursday: Female Founders' Tough Lessons Learned

Have an idea for a startup, already launched and building your startup, or just want to hear from those who've already been there? Join a powerhouse panel of female startup founders on May 20 at 9:30 am. Listen as the panelists share their journey and entrepreneurial struggles, and what it really takes to launch and run a startup.

The event is free and available online. Register online.

Other Thursday online events not to miss:

  • 11 am — BORN GLOBAL — Houston Tech Rodeo's International track will offer thoughtful discussions on the hour beginning at 11 am with a keynote.
  • 2 pm — Creating Space (and Tech) for DiversityA diverse panel of experts in space and technology will speak on their experience in these fields.

Friday: $50k Houston Investment Challenge

The Capital Factory challenge will occur on May 21 at Houston Tech Rodeo in partnership with Houston Exponential and will feature five technology startup finalists from greater Houston that will be evaluated by a panel of successful entrepreneurs and venture capitalists. One will walk away with a $50,000 investment.

The event is free and available online. Register online.

Other Friday online events not to miss:

  • 11 am — FemTech Panel — Join a virtual discussion with femtech leaders brought to you by FemTech Focus.
  • 1 pm — Innovation at Scale: Boosting Climatetech and Clean Energy Startups — Join Greentown Labs Houston for a virtual panel on incubating and supporting clean energy startups. The panel, featuring leaders from the regional climatetech innovation ecosystem and moderated by Greentown Houston Launch Director Juliana Garaizar, will discuss how to best set up startups for success and scale.

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