Big checks

Rice University startup competition awards record $2.9 million in prizes

The winner of the Rice Business Plan Competition walked away with over $700,000 in prizes. Courtesy of Rice University

On Saturday, over 20 organizations were prepared to write checks to entrepreneurs competing in the Rice Business Plan Competition, but the largest and richest student business plan competition doled out almost double what it initially intended to award.

Earlier this year, Rice University announced the 42 teams that would be competing for $1.5 million in prizes, but ended up giving out a record $2.9 million. While a few organizations announced they had trouble picking a single company and named two recipients, Houston-based GOOSE Society surprised everyone with almost $1 million in unexpected prizes.

"It shows the diversity in expertise and interest of our investors, and how much the quality of the deals grown at RBPC," says Samantha Lewis, director at GOOSE.

GOOSE, which is a network of investors, originally intended to provide the grand prize — a $350,000 check to the company with the top score from the judges. The 2019 grand prize winner was Vita Inclinata Technologies, a company from the Mitchell Hamline School of Law that created a technology to advance helicopter safety. On top of that, GOOSE investors tacked on five more prizes.

  • $300,000 to Resonado, a more efficient speaker design company, from the University of Notre Dame
  • $200,000 to Rhaeos, a medical device company that has a wearable sensor for neurosurgical patients, from the Northwestern University
  • $200,000 to spotLESS Materials, a company that created a repellant coating material, from Penn State University
  • $125,000 to CataLight, a more sustainable water filtration system company, from the University of Waterloo
  • $100,000 to BrewBike, a campus bike delivery concept, from Northwestern University and the University of Chicago

GOOSE has surprised the crowd before at past RBPC awards banquets, Lewis says, but that's usually been one or two extra prizes. This is the first year the organization has committed this much — and there's potential for these companies to receive even more.

The group now begins is true due diligence process, Lewis says, and depending on what they find, they could invest more. The 2017 winner, Pennsylvania-based Forest Devices Inc., was awarded GOOSE's $300,000 grand prize, but the company eventually received a $2 million investment instead.

Two Houston-based student teams competed in the program, but neither were named even semifinalists. Curenav from University of Houston didn't receive any prize money, but Rice's LilySpec received the $25,000 Pearland Economic Development Spirit of Entrepreneurship Prize as well as the $1,000 Mercury Fund prize and the $1,000 Orrick Awards Banquet Company Showcase Prize.

The 19th annual contest named seven finalists according to the judges' top scores — all receiving over $100,000 in prizes each.

  • First place: Vita Inclinata Technologies (won a total value of nearly $700,000)
  • Second place: Resonado (won more than $300,000 )
  • Third place: spotLESS Materials (won more than $360,000)
  • Fourth place: Rhaeos (won more than $450,000)
  • Fifth place: Zilper Trenchless, which developed a way to install pipes under streets with minimum effect on the surface, from the Massachusetts Institute of Technology (won more than $435,000)
  • Sixth place: BrewBike (won more than $100,000)
  • Seventh place: CataLight (won more than $140,000)

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Building Houston

 
 

this one's for the ladies

Texas named a top state for women-led startups

A new report finds that the Lone Star State is ideal for female entrepreneurs. Photo via Getty Images

Who runs the world? According to Merchant Maverick's inaugural Best States for "Women-Led Startups'' study, Texas is a great place for women to be in charge.

The Lone Star state cracked the top 10 on the list, earning a No. 6 spot according to the small business reviews and financial services company, which based the study on eight key statistics about this growing segment of the economy. Colorado (at No. 1), Washington, Virginia, Florida, and Montana were the only states to beat out Texas on the rankings—leading the Merchant Maverick team to conclude that "the part of the country that lies west of the Mississippi is great for startups led by women entrepreneurs."

Women-led startups in Texas received $365 billion in VC funding in the last five years, the report found. This is the seventh largest total among U.S. states. Too, about 20 percent of Texans are employed at woman-led firms, which is the fifth highest percentage among states. Roughly 35 percent of employers in Texas are led by women.

A few other key findings that work in female founders' favor: The startup survival rate in Texas is nearly 80 percent. And a lack of state income tax "doesn't hurt either," the report says.

Still there are shortcomings. On a per capita basis, only 1.27 percent of Texas women run their own business. The average income for self-employed women is also relatively low ranking among states, coming in around $55,907 and landing at 31st among others.

This is not the first time Texas has been lauded as a land of opportunity for women entrepreneurs. A 2019 study named it the best state for business opportunities for women. Houston too has proven to support success for the demographic. The Bayou City was named in separate studies a best city for female entrepreneurs to start a business and to see it grow.

Still, as many findings have concluded, the realities of the pandemic loom for all startups and small business owners. The Merchant Maverick study was careful to add: "The pandemic has changed the economic landscape over the past year, and often for the worse.

"This means that not every metric may be able to accurately gauge how a state might fare amidst the pandemic," the report continues. "To help factor in COVID's impact, we included some metrics that take 2020 into account, but it will be a while until we get a full picture of the pandemic's devastation.""

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