Station Houston's stakeholders voted in favor of the organization transitioning to a nonprofit. Station Houston/Facebook

Houston's startup scene just got a little more accessible. Station Houston's stakeholders voted to transition the organization to nonprofit status from the C-corp status it currently holds.

The status change is effective January 1, 2019, for the acceleration hub, which is based in downtown Houston. The news was announced to its members in an email sent on December 13.

"Following in the footsteps of successful hubs such as 1871 in Chicago or Mass Challenge in Boston, we see that non-profit status allows these organizations to stay true to their missions while providing best-in-class services to members," reads the email. "We are excited to announce that this week, all Station stakeholders voted in favor of the conversion to non-profit status."

Station's CEO, Gabriella Rowe, tells InnovationMap that the announcement is part of a larger change for the organization, which will announce its plans for Station 3.0 in January.

"This opens up so many more funding and programing opportunities for us, so that we can charge our entrepreneurs and startups as little as possible and give them all the depth of services and support," Rowe says. "That's really what it comes down to."

Station Houston is among the partners — along with the Rice Alliance for Technology and Entrepreneurship — for the Houston innovation district that plans to open in the rehabilitated Sears building in Midtown. The space plans to open in 2020 and hasn't yet broken ground. Rowe discussed Station 3.0 and the district in an interview with InnovationMap in November.

"We're going to be doing a huge launch of Station 3.0 in January," she said in the interview. "It will really allow us to tell the world not just what we're going to be for the next three months, but what we're going to be over the next three years."

Station Houston recently hosted the Texas Digital Summit with Rice University and the Rice Alliance. The all-day summit consisted of panel discussions, keynote speakers, and a startup pitch of 39 companies. At the conclusion of the day, Rowe and Brad Burke from Rice announced 10 of the most promising startups from the summit. You can read about those companies here.

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Houston biopharma company launches equity crowdfunding campaign

money moves

A clinical-stage company headquartered in Houston has opened an online funding campaign.

FibroBiologics, which is developing fibroblast cell-based therapeutics for chronic diseases, launched a campaign with equity crowdfunding platform StartEngine. The platform lets anyone — regardless of their net worth or income level — to invest in securities issued by startups.

The funding, according to a press release, will be used to support ongoing operations of Fibrobiologics and advance its clinical programs in multiple sclerosis, degenerative disc disease, wound care, extension of life, and cancer.

"We're excited to partner with StartEngine on this campaign. StartEngine has over 600,000 investors as part of their community and has raised over half a billion dollars for its clients," says FibroBiologics' Founder and CEO Pete O'Heeron, in the release.

"This is an exciting time at FibroBiologics as we continue progressing our clinical pipeline and developing innovative therapies to treat chronic diseases," he continues. "This new funding will fuel our growth in the lab and bring us one step closer to commercialization."

The campaign, launched this week, already has over 100 investors, at the time of publication, and has raised nearly $2 million, according to the page. The minimum investment is set at around $500, and the company's indicated valuation is $252.57 million.

In 2021, FibroBiologics announced its intention of going public. Last year, O'Heeron told InnovationMap on the Houston Innovators Podcast of the company's growth plans as well as the specifics of the technology.

Only two types of cells — stem cells and fibroblasts — can be used in cell therapy for a regenerative treatment, which is when specialists take healthy cells from a patient and inject them into a part of the body that needs it the most. As O'Heeron explains in the podcast, fibroblasts can do it more effectively and cheaper than stem cells.

"(Fibroblasts) can essentially do everything a stem cell can do, only they can do it better," says O'Heeron. "We've done tests in the lab and we've seen them outperform stem cells by a low of 50 percent to a high of about 220 percent on different disease paths."


Texas ranks as a top state for female entrepreneurs

women in business

Texas dropped three spots in Merchant Maverick’s annual ranking of the top 10 states for women-led startups.

The Lone Star State landed at No. 5 thanks in part to its robust venture capital environment for women entrepreneurs. Last year, Texas ranked second, up from its No. 6 showing in 2021.

Merchant Maverick, a product comparison site for small businesses, says Texas “boasts the strongest venture capital scene” for women entrepreneurs outside California and the Northeast. The state ranked fourth in that category, with $6.5 billion invested in the past five years.

Other factors favoring Texas include:

  • Women solely lead 22 percent of all employees working for a business in Texas (No. 4).
  • Texas lacks a state income tax (tied for No. 1).

However, Texas didn’t fare well in terms of the unemployment rate (No. 36) and the rate of business ownership by women (No. 29). Other Texas data includes:

  • Average income for women business owners, $52,059 (No. 19).
  • Early startup survival rate, 81.9 percent (No. 18).

Appearing ahead of Texas in the 2023 ranking are No. 1 Colorado, No. 2 Washington, No. 3 California, and No. 4 Arizona.

Another recent ranking, this one from NorthOne, an online bank catering to small businesses, puts Texas at No. 7 among the 10 best states for women entrepreneurs.

NorthOne says Texas provides “a ton of opportunities” for woman entrepreneurs. For instance, it notches one of the highest numbers of women-owned businesses in the country at 1.4 million, 2.1 percent of which have at least 500 employees.

In this study, Texas is preceded by Colorado at No. 1, Nevada at No. 2, Virginia at No. 3, Maryland at No. 4, Florida at No. 5, and New Mexico at No. 6. The rankings are based on eight metrics, including the percentage of woman-owned businesses and the percentage of women-owned businesses with at least 500 employees.