joining forces

Station Houston merges with statewide startup investor and accelerator

Station Houston and Capital Factory have merged, and the conglomerate will move into The Ion when it opens next year. Courtesy of Rice University

Station Houston and Austin-based Capital Factory announced that they will be combining forces through a merger effective immediately.

Capital Factory will power all of Station Houston's membership and mentorship, including startup-focused services, as well as add its own statewide resources, which include investors, mentors, and more.

"The more high quality startups we have across a diverse range of industries, the more investors, big companies, and big government want to get involved," Gordon Daugherty, co-founder and president, says in a news release, relating the collaboration to Metcalfe's Law. "Uniting with Station Houston will see benefits run both ways."

The combined entity, referred to as "Station Houston, powered by Capital Factory," will operate out of 1301 Fannin St., where Station currently resides, before moving into the Ion when it's completed, which is slated to be early next year.

"As we continue to develop our innovation economy in Houston and prepare for the opening of the Ion in January 2021, there is no better partner than Capital Factory to serve the needs of our entrepreneurs," says Gabriella Rowe, executive director of The Ion. "For years, they have demonstrated their commitment to startups across Texas, helping them build their ideas through mentorship and introducing them to venture capital from around the country."

Capital Factory was founded in Austin in 2009, and entered into the Houston market last year. Currently, The Cannon has a dedicated space for Capital Factory and its portfolio clients and employs two people in Houston. Capital Factory also has a presence in Dallas.

Station Houston was founded in 2016 and has over 200 startups, 400 members, and 130 mentors, according to the release.

"Capital Factory is one of the top startup development organizations in the country. By partnering with Station Houston and expanding their footprint into the Ion, their commitment to Houston's entrepreneurs is clear," says Harvin Moore, president of Houston Exponential, in the news release.

"It's a win for Houston's startups and for our booming ecosystem," Moore continues. "Increasing bridges between Texas' major tech ecosystems has enormous synergistic value, and I am thrilled to see Houston and the Ion play a significant role in building such competitive strength."

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Building Houston

 
 

5G could be taking over Texas — and Houston is leading the way. Photo via Getty Images

Based on one key measure, Houston sits at the forefront of a telecom revolution that could spark a regional economic impact of more than $30 billion.

Data published recently by the Texas Comptroller's Office points out that as of last November and December, Houston led all cities in Texas for the number of so-called "small cells." Small cells are a key component in the rollout of ultra-high-speed 5G wireless communication throughout the Houston area and the country.

As the Texas Comptroller's Office explains, small cells are low-powered antennas that communicate wirelessly via radio waves. They're usually installed on existing public infrastructure like street signs or utility poles, instead of the big communication towers that transmit 4G signals.

The comptroller's tally shows Houston had approved 5,455 small-cell sites as of the November-December timeframe. That dwarfs the total number of sites (1,948) for the state's second-ranked city, Dallas.

"Houston is in the vanguard of small cell permitting in Texas, and not just because it's the state's largest city; advocates have lauded its proactive approach to 5G. Other cities, particularly smaller ones, are lagging well behind," the Comptroller's Office notes.

According to CTIA, a trade group for the wireless communications industry, 5G holds the promise to deliver an economic impact of $30.3 billion in the Houston area and create 93,700 jobs. The group says industries such as health care, energy, transportation, e-commerce, and logistics stand to benefit from the emergence of 5G.

"Maintaining world-class communications infrastructure is a requirement for success in a rapidly changing global economy. Small cells and fiber technology are the key foundational components for network densification and robust 5G. Cities like Houston that have embraced the need for this infrastructure will see the benefits of 5G faster than others," Mandy Derr, government affairs director at Houston-based communications infrastructure REIT Crown Castle International Corp. and a member of the Texas 5G Alliance, tells InnovationMap.

Derr says leaders in Houston have embraced the importance of small-cell technology through "reasonable and effective" regulations and processes aimed at boosting 5G capabilities. Three major providers of wireless service — AT&T, T-Mobile, and Verizon — offer 5G to customers in the Houston area.

"More small cells and fiber provide greater and faster access for the masses, enabling the connectivity that is essential to our businesses today — whether it's accepting payments on a mobile card reader, completing a sale on the go, or reliably reaching consumers where they are," Derr says.

In a blog post, Netrality Data Centers, which operates a data center in Houston, proclaims that Houston is shaping up to be a hub of 5G innovation.

"Houston has always been on the frontline," Mayor Sylvester Turner said during a 5G roundtable discussion in 2019. "It is who we are. It is in our DNA. We are a leading city. We didn't wait for somebody else to go to the moon. Or to be the energy capital of the world. Or the largest medical center in the world. But you don't stay at the front if you don't continue to lead."

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