3 Houston innovators to know this week

who's who

This week's innovators to know are focused on bringing startup programming and venture capital to Houston. Courtesy photos

This past week has been full of exciting innovation news in Houston — from big fundraising round closings to a new unicorn coming out of the Bayou City.

Houston innovators to know this week include a new program director for Houston's newest startup accelerator, a venture capital fund leader, and more.

Eléonore Cluzel, program director of gBETA Houston program as director

Courtesy of gBETA Houston

Houston's newest accelerator program, gBETA, named its new local leader. Eléonore Cluzel will lead the gBETA Houston program as director, and will be the point person for the program in the region for the two annual cohorts. Previously, Cluzel worked for Business France mentoring French startups and small businesses. In her new position, she says she's excited to support founders across all industries and foster innovation.

"We're adding another resource for local founders to grow their startups and to raise money, and not have to move to Silicon Valley to do it," she says. "We will also serve as a connector, introducing founders to mentors and investors within the community and across gener8tor broader network." Click here to read more.

Sandy Wallis, managing director of the HX Venture Fund

Courtesy of Sandy Wallis

After 20 years in the venture capital world, Sandy Guitar Wallis has seen the evolution of investing — on both coasts and here in Houston as well. Now, as managing director of the HX Venture Fund, Wallis leads the fund of funds that's investing in VCs around the country in order to bring investment to Houston.

"We have raised a fund of funds with the HX Venture Fund, and we're deploying that capital across probably 10 venture capital funds over time," Wallis explains on the most recent episode of the Houston Innovators Podcast. "Each one of those funds, will invest in 15 to 20 underlying private companies. So, at the end of the day, HX Venture Fund 1 will have exposure to 10 VC funds, as an example, and — by virtue of those investments — maybe 300 private companies." Click here to read more.

James Y. Lancaster, Texas branch manager for Arkansas-based VIC Technology Venture Development

Photo courtesy of VIC

Startups fail — and there are a number of reasons why that is. James Y. Lancaster, who serves as Texas branch manager for Arkansas-based VIC Technology Venture Development, writes in a guest column for InnovationMap about the second most common reason for startup failure: funding.

"A key part of the startup CEO's job is to understand how much total cash remains on hand and whether it is enough to carry the startup towards a milestone that can lead to successful financing as well as a positive cash flow," Lancaster writes. "Just as important is how to allocate their time and efforts to the fundraising process along the way." Click here to read more.

This week's Houston innovators come from industries across the spectrum. Courtesy photos

3 Houston innovators to know this week

Who's who

This week in Houston is chock full of events from The Houston Innovation Summit, but before you get too swept away, check out these three innovators to know this week.

We have a life-long innovator whose passion has taken him from industry to industry, a construction specialist joining a growing Houston startup, and a man who let his personal struggles motivate him to find solutions.

Brad Rossacci, creative director at Accenture's Houston innovation hub

Brad Rossacci

Brad Rossacci, creative director for Accenture's Houston innovation hub, talks neuroscience, design, technology, and the upcoming Digital Fight Club on November 20 on this week's episode of the Houston Innovator's Podcast. Photo courtesy of Accenture

The guest on the Houston Innovators Podcast this week is Brad Rossacci, who's passion exudes from him in person — and podcast too. One of his recent passions? The Digital Fight Club, which is coming to Houston on November 20. The event puts two "fighters" on a stage with a referee to discuss various technology topics — cybersecurity, medicine, etc.

"I really fell in love with the approach [the event] takes," Rossacci says. "It takes this format that allows you to share ideas in a very short-form content kind of way." Read (and listen!) more.

Michael Matthews, industry principal at Data Gumbo

Michael Matthews

Data Gumbo has named the newest member of its executive team — and the newest industry it's looking to do business in. Photo courtesy of Data Gumbo

Michael Matthews was tapped to lead a brand new market that Houston blockchain startup, Data Gumbo, has announced an expansion into: Construction. The company uses blockchain to make it easier and faster to process industry contracts, payment, and more.

"The construction industry lags far behind other industries in both productivity improvement and technology adoption, resulting in billions of lost value," Matthews says in a news release. "The way companies come together to execute projects remains essentially the same despite technology's improvement and we have to make fundamental, disruptive changes to deliver more value." Read more.

Brigham Buhler, founder of Ways2Well

brigham buhler

Through his own patient journey, Brigham Buhler saw a need for Ways2Well to exist. Photo via ways2well.com

Sometimes, it's just too hard to find the answers you seek in health care. The waiting rooms, the parking, the forms — it's all a bit much only to leave empty handed. This was Brigham Buhler's experience, and finally, after months, he learned he had a hormone deficiency. Now, Buhler's company, Ways2Well, allows patients to quickly do a blood test at a lab and receive their results digitally.

"While most virtual health care providers focus on sick care — treating patients experiencing symptoms that indicate sickness — Ways2Well is focused on preventative health care," says Buhler. Read more.

MassChallenge Texas wrapping its inaugural Houston cohort is one of this week's top stories. Courtesy of MassChallenge

5 most popular innovation stories in Houston this week

What's trending

Editor's note: It's been a busy week in Houston for innovation. From important innovation events — and there's more to come this month — to a new accelerator entering the Houston market, there's plenty of popular news in innovation.

MassChallenge Texas wraps up inaugural Houston cohort with top 3 startups and a surprise investment

MassChallenge Texas named its top three startups of its inaugural Houston cohort and the Houston Angel Network made an unexpected investment. Courtesy of MassChallenge Texas

A new-to-Houston global accelerator program just concluded its inaugural cohort, naming three top startups and providing a platform for an unexpected prize — an investment.

MassChallenge Texas didn't originally intend to have monetary prizes for this first program, however, thanks to Houston Angel Network, one lucky startup is walking away from the program $40,000 richer.

HAN, one of Houston's oldest and most active group of angel investors, saw pitch decks from most of the companies in the cohort and then invited seven companies to pitch: Ask DOSS, Celise, DoBrain, NeuroRescue, Noleus Technologies, Sensytec, and Swoovy. Continue reading.

3 Houston innovators to know this week

This week's batch of innovators have had to be pretty creative in their industries. Courtesy photos

The ability to innovate lives in one's ability to think outside of the box — no matter the industry. This week's Houston innovators to know have had to get creative and think of new ways of doing things, from retailing to creating greeting cards. Continue reading.

Exclusive: Houston-based stadium ordering app closes near $1.3 million Seed round with plans to scale

Houston-based sEATz has closed a funding round and plans to reach more fans than ever this football season. Courtesy of sEATz

Fans across the country are headed to football stadiums this weekend to cheer on their teams, but only a few will have the luxury of ordering food, beer, and even merchandise from the comfort of their seats.

Houston-based sEATz has created a platform where fans can order just about anything their stadium has from an app. Much like any other ordering app, once the order is placed, a runner will pick up the food and deliver it to the customer for a small fee and a tip.

The startup is now preparing to scale up from seven venues to 10 before the year is over as well as launching a new version of the app thanks to an oversubscribed near $1.3 million Seed round led by Houston-based Valedor Partners. Houston-based Starboard Star Venture Capital also contributed to the round. SEATz has plans to launch its Series A round before the new year. Continue reading.

New Accenture exec aims to put Houston's innovation ecosystem on the map

Thomas Rubenak is senior principal of Accenture Ventures. Courtesy of Accenture

In most industries, there's a disconnect between startups and major corporations. The startups may have solutions for the big companies, but the two entities might not know how to connect with each other. That's something Accenture hopes to help with.

The company created Accenture Ventures to help connect the dots between emerging technology and big business. As the program has expanded, Thomas Rubenak was selected to serve the Southwest region as senior principal.

With a long career of working in tech, research and design, and startups, Rubenak hopes to use his experience to help grow Houston's blossoming innovation ecosystem. Continue reading.

Former Station Houston director joins the Plug and Play team as the program prepares for launch

Payal Patel, former director of business development at Station Houston, has joined Plug and Play as director of corporate partnerships. Courtesy of Payal Patel

Plug and Play Tech Center — a global powerhouse startup accelerator with its headquarters in Silicon Valley — has hired its first boots-on-the-ground team member for its Houston outpost.

Payal Patel, former director of business development at Station Houston, has joined Plug and Play as director of corporate partnerships. Plug and Play already has a handful of corporate partners in Houston, and Patel will be working with those organizations as well as growing the partnerships. These large companies are crucial to Plug and Play's process.

"The way we help startups advance is by helping them get connected to the largest corporations in the world so that they can run pilots with those big companies and eventually get them as customers," Patel tells InnovationMap. Continue reading.

From smart home technology to higher education institutions, these leaders are pushing forward innovation in Houston. Courtesy photos

3 Houston innovators to know this week

Who's who

Another week, another set of Houston innovators to keep your eye on. This week's edition crosses retail technology with higher education — both on this planet and beyond.

From tech that's orbiting the planet to tech that's in your very home, here are the Houston-based innovators to know.

Leah Barton, North American commercial director for Hive

Leah Barton oversees Hive's growing North American efforts from the Houston office. Courtesy of Hive

United Kingdom-based Hive, a smart product company, has bet on Houston as its battle ground for growth in the United States. The company recently tasked Leah Barton as North American Commercial Director to serve in the Houston office as of June 2019 and focus on this growth. Barton tells InnovationMap that she feels Houston is increasingly becoming an innovation hub.

"We know we've got the technical talent, we've got people who are interested in technology, whether it's from the medical angle, energy angle, aerospace angle," she says. Continue reading the story about Hive and Barton's plans for expansion by clicking here.

David Alexander, director of the Rice University Space Institute

David Alexander of the Rice University Space Institute says Houston's past accomplishments in space aren't all the Space City has to offer. Photo courtesy of Rice University

For David Alexander, director of the Rice University Space Institute, Houston's role in space exploration is far from over. In fact, even though it's been 50 years since Neil Armstrong phoned home to Houston from the moon, he argues that this moment is not all the Space City has to celebrate.

"In Houston, we tend to think of space as a destination, but it really is a resource," he says. "And we need to be thinking about it as a resource." Read the complete interview with Alexander by clicking here.

Paul Pavlou, dean of C. T. Bauer College of Business at the University of Houston

Paul Pavlou has been named as the dean of C. T. Bauer College of Business at the University of Houston. Courtesy of UH

Success is in the details for this new University of Houston C.T. Bauer College of Business dean, Paul Pavlou, who began his UH career earlier this month. Pavlou has a passion for higher education and the doors it has opened for him.

"My life was transformed by higher education," Pavlou says. "So, I feel the need to give back in terms of helping other students — especially of modest means like myself to do well in life and get a good job."

Pavlou has multidisciplinary efforts on his mind, as well as data and technology integration within the school's programs. To read more about Pavlou, click here.

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These 3 Houston research projects are aiming to fight or prevent cancer

Research roundup

Cancer remains to be one of the medical research community's huge focuses and challenges, and scientists in Houston are continuing to innovate new treatments and technologies to make an impact on cancer and its ripple effect.

Three research projects coming out of Houston institutions are providing solutions in the fight against cancer — from ways to monitor treatment to eliminating cancer-causing chemicals in the first place.

Baylor College of Medicine's breakthrough in breast cancer

Photo via bcm.edu

Researchers at Baylor College of Medicine and Harvard Medical School have unveiled a mechanism explains how "endocrine-resistant breast cancer acquires metastatic behavior," according to a news release from BCM. This research can be game changing for introducing new therapeutic strategies.

The study was published in the Proceedings of the National Academy of Sciences and shows that hyperactive FOXA1 signaling — previously reported in endocrine-resistant metastatic breast cancer — can trigger genome-wide reprogramming that enhances resistance to treatment.

"Working with breast cancer cell lines in the laboratory, we discovered that FOXA1 reprograms endocrine therapy-resistant breast cancer cells by turning on certain genes that were turned off before and turning off other genes," says Dr. Xiaoyong Fu, assistant professor of molecular and cellular biology and part of the Lester and Sue Smith Breast Center at Baylor, in the release.

"The new gene expression program mimics an early embryonic developmental program that endow cancer cells with new capabilities, such as being able to migrate to other tissues and invade them aggressively, hallmarks of metastatic behavior."

Patients whose cancer is considered metastatic — even ones that initially responded to treatment — tend to relapse and die due to the cancer's resistance to treatment. This research will allow for new conversations around therapeutic treatment that could work to eliminate metastatic cancer.

University of Houston's evolved brain cancer chip

Photo via uh.edu

A biomedical research team at the University of Houston has made improvements on its microfluidic brain cancer chip. The Akay Lab's new chip "allows multiple-simultaneous drug administration, and a massive parallel testing of drug response for patients with glioblastoma," according to a UH news release. GBM is the most common malignant brain tumor and makes up half of all cases. Patients with GBM have a five-year survival rate of only 5.6 percent.

"The new chip generates tumor spheroids, or clusters, and provides large-scale assessments on the response of these GBM tumor cells to various concentrations and combinations of drugs. This platform could optimize the use of rare tumor samples derived from GBM patients to provide valuable insight on the tumor growth and responses to drug therapies," says Metin Akay, John S. Dunn Endowed Chair Professor of Biomedical Engineering and department chair, in the release.

Akay's team published a paper in the inaugural issue of the IEEE Engineering in Medicine & Biology Society's Open Journal of Engineering in Medicine and Biology. The report explains how the technology is able to quickly assess how well a cancer drug is improving its patients' health.

"When we can tell the doctor that the patient needs a combination of drugs and the exact proportion of each, this is precision medicine," Akay explains in the release.

Rice University's pollution transformation technology

Photo via rice.edu

Rice University engineers have developed a way to get rid of cancer-causing pollutants in water and transform them into valuable chemicals. A team lead by Michael Wong and Thomas Senftle has created this new catalyst that turns nitrate into ammonia. The study was published in the journal ACS Catalysis.

"Agricultural fertilizer runoff is contaminating ground and surface water, which causes ecological effects such as algae blooms as well as significant adverse effects for humans, including cancer, hypertension and developmental issues in babies," says Wong, professor and chair of the Department of Chemical and Biomolecular Engineering in Rice's Brown School of Engineering, in a news release. "I've been very curious about nitrogen chemistry, especially if I can design materials that clean water of nitrogen compounds like nitrites and nitrates."

The ability to transform these chemicals into ammonia is crucial because ammonia-based fertilizers are used for global food supplies and the traditional method of creating ammonia is energy intensive. Not only does this process eliminate that energy usage, but it's ridding the contaminated water of toxic chemicals.

"I'm excited about removing nitrite, forming ammonia and hydrazine, as well as the chemistry that we figured out about how all this happens," Wong says in the release. "The most important takeaway is that we learned how to clean water in a simpler way and created chemicals that are more valuable than the waste stream."

Deloitte lays out the benefits of digital innovation

Some workers fear technology, wondering "will a robot eventually replace my job?" Yet, Deloitte Insights and MIT Sloan Management Review found in a recent study that the more a company uses digital technology, the more likely it is to be innovative, which can benefit individuals, teams, organizations, and groups of organizations.

Deloitte and MIT collaborated for the fifth time to conduct a global study about digital innovation. They surveyed more than 4,800 businesspeople and interviewed 14 subject matter experts. The results were published in a June 2019 report titled "Accelerating Digital Innovation Inside and Out."

Deloitte and MIT shared two main findings from the survey:

  1. Digitally maturing companies innovate at higher rates — both internally and externally — than companies with early or developing digital maturity.
  2. Companies should know their ethics so that they can innovate wisely.

Internal innovation
Most digitally maturing companies innovate internally in two ways. First, they typically allow individuals to innovate within their jobs. The more digitally mature a company is, the more likely an employee was to say that more than 10 percent of their work involves the opportunity to experiment and innovate. The opposite was also true. Employees of less digitally mature companies were more likely to say that less than 10 percent of their work involves the opportunity to experiment and innovate.

In addition to encouraging individuals to innovate, most digitally maturing companies urge groups to innovate by establishing cross-functional teams. These teams are generally comprised of individuals from across multiple departments and roles and often exist to accomplish a specific task. Deloitte and MIT found that 83 percent of digitally maturing companies surveyed use cross-functional teams. This is far higher than respondents of either developing or early-stage companies' cross-functional team use — 71 percent and 55 percent, respectively.

External innovation
In addition to having employees innovate internally (both individually and in groups), digitally maturing companies often innovate externally by collaborating with others (e.g., their customers, their competitors, government institutions, and more) in their ecosystem. Ecosystems, which are formal or informal networks of organizations working toward a common goal, typically feed innovation in two ways. First, they integrate platform companies, meaning that companies that provide services to other companies — such as Amazon and PayPal — are both a part of the ecosystem and also strengthen it by being part of it.

Second, digitally maturing companies allow all organizations within the network to get better feedback. A company is not just getting feedback from their own customers, but from all customers within the ecosystem.

Ethics and innovation
In order to get the most benefit from their internal and external collaborations, companies should use "loose coupling," a term first coined by organizational theorist Karl Wieck. This means that individuals are linked to teams, teams to the organization, and the organization to fellow members of its ecosystem — but not too tightly. This model allows people the freedom to have both some autonomy and also some oversight as they innovate. If people are micromanaged, they are not able to innovate as well.

Because innovation requires loosening the reins somewhat, companies should have strong ethics systems in place. Otherwise, innovation can get out of hand, and a company risks having employees develop goods or services which aren't in line with organizational values.

Survey conclusion
Over half (56 percent) of survey respondents said they think their organization will exist and be in a much stronger position in 10-20 years due to the organization's use of digital capabilities. A similar percentage (44 percent) of survey respondents said that in 10-20 years, they think that their organization will have been bought out or gone out of business. Companies can act based on market and competitive forces but cannot control them. Companies can, however, decide how much of a priority digital innovation will be.

If they decide it is a priority, how can companies become more innovative? Companies should consider several tips:

  1. Work with other organizations within your ecosystem.
  2. Prioritize cross-functional teams.
  3. Use loose coupling which allows room for trial and error.
  4. Establish and continually update your ethics guidelines.

Innovation in Houston
The Houston innovation scene is thriving, and local organizations know that they are stronger together than apart. Houston Exponential is a "nonprofit organization created to accelerate the growth of Houston's innovation ecosystem" which hopes to "turn Houston into a hub for high-growth high-potential companies by creating pathways for innovation to flow at scale." Houston Exponential has stakeholders from companies, non-profits, government entities, and academic institutions.

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About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.

Copyright © 2020 Deloitte Development LLC. All rights reserved.

Growing Houston thrift startup aims to impact the unsustainability of the fashion industry

do goodfair

A Houston-based online retailer for second-hand clothing is quickly growing, aiming to make "No New Things" the mantra of the fashion world.

As the popularity of "Fast Fashion," or cheap clothing produced rapidly by mass-market retailers, begins to decline, brands are refocusing on upcycled, recycled, and sustainable clothing — and Goodfair has bet its business plan on this movement.

"I realized that there was too much stuff out there," says Topper Luciani, founder and CEO of Goodfair, "and there is an environmental crisis being caused by the clothing industry. They're manufacturing so many items, they're using slave labor, they're pumping dyes and other chemicals into rivers. It's absolutely wild."

The fashion industry contributes 10 percent of the world's carbon emissions, is the second-largest user of the earth's water supply, and pollutes the oceans with microplastics according to a report from Business Insider in October 2019. Additionally, the outlet reports that 85 percent of all textiles go to the dump every year.

"Still, we have an enormous demand for these clothes that are being thrown away and that demand is just being filled by more cheap new clothes at malls and things like that, instead of reintroducing second-hand clothes," says Luciani. "I've been working really hard on creating a way to make a frictionless process for reintroducing those clothes."

Luciani, tells InnovationMap that he predicts the size of the recycled clothing industry will grow to $51 billion by 2023. Following in the footsteps of second-hand online retail giants such as thredUP and Poshmark, Luciani takes things to the next level by focusing on adding ease to the online shopping experience, telling InnovationMap that it should be as easy as clicking one button.

The idea of Goodfair was surprisingly not inspired by the apparel industry at all. Luciani tells InnovationMap that he was influenced by the founder of Uber, Garret Camp, and Camp's idea for a one-click car service.

"Their whole concept was to just hit a button and a taxi comes, says Luciani. "I wanted to look at a thrift store through that lens."

Goodfair, which launched in 2018, adds to the trend of second-hand clothing with the introduction of "mystery shopping," shipping all of their clothing in variety packs chosen according to a customer's size and taste. This eliminates the cost of photographing, measuring, lowering the price for both the customer and the company.

"I had this idea that not only would mystery shopping eliminate the paradox of choice, but everyone loves a surprise," he tells InnovationMap.

Luciani tells InnovationMap that he sees a trend among Gen Z, individuals born between 1995–2009, for buying second-hand, noting that about 90 percent of Goodfair customers are between the ages of 18 and 25. thredUP also reports that Gen Z and Millennials are driving the growth of used clothing retailers, noting that "18–37 year-olds are adopting second-hand clothing 2.5 times faster than other age groups" in the company's 2019 Resale Report.

"This was the generation that was forged in the Great Recession and they saw the ills of decadence," says Luciani. "They saw the ills of not having financial literacy. Ultimately, these woke kids are aware that branding is kind of a heist."

Goodfair taps into this market, leaning into social media platforms such as Instagram and Snapchat to promote the company. The company recently kicked off an Instagram series called "In the racks, in the rags" where followers can win a random item from their warehouse, located in Houston's East End.

Goodfair joins the growing roster of local companies focused on sustainable fashion. For example, Magpies & Peacocks, the nation's only nonprofit design house, opened a new store in the East End last year. Houston is home to a number of brick-and-mortar stores which line Westheimer Boulevard in the heart of the city, including Buffalo Exchange, Leopard Lounge, Pavement, and LO-FI.

Luciani, who moved to Houston from Brooklyn, New York, leads Goodfair with Emily Keeton, COO. Keeton joined the company in October 2019, leaving her previous leadership role at WeWork. The company announced in January 2020 that they will be adding a vice president of marketing to the team.

In the coming years, Luciani tells InnovationMap that he hopes to launch an app for the brand, and also expand into offering other goods.

"I have a vision of essentially creating a used Amazon," says Luciani, "Everything that gets donated to thrift stores can get donated in this mystery mechanic."

Luciani has a long history in the textile industry. In 2004 while in college, he launched a men's polo shirt brand, Sir Drake.

"When I reflected on the experience and as I educated myself about the clothing industry, this was right when fast fashion was taking off, I realized that if I launched another fashion brand that I would just be contributing to industrial pollution problem," he says.

He tells InnovationMap that he then started selling used neckties on eBay, launching his mission with sustainable fashion.

"We expect that a year from now we will be generating five times the sales we did in 2019 and become a multi-million dollar business," Luciani says.