Top 5 Houston innovation guest columns of 2019

2019 IN REVIEW

What guest articles trended this year on InnovationMap in 2019? Photo by PeopleImages

Editor's note: InnovationMap is Houston's only news source and resource about and for startups, and some of this year's top stories were penned — or, more realistically, typed — but the Houston innovation community itself. As we get ready for 2020, let's see what guest columns were most read in 2019.

How technology is disrupting — and improving — the real estate industry in Texas

Buying a home is more digitized than ever — and here's how that's affecting the industry. Photo courtesy of HAR

A recent lawsuit is rocking the residential real estate industry across the country. Home sellers whose properties were listed on one of 20 MLSs claim The National Association of Realtors, Realogy Holdings Corp., HomeServices of America, RE/MAX Holdings, Inc., and Keller Williams Realty, Inc. violated the federal antitrust law by conspiring the sellers to pay an inflated amount to the buyer's broker.

The lawsuit highlights a new need for home buyers and sellers: transparency. Gone are the days when real estate agents can take a hefty commission from his or her clients without providing value that is worthy of the price tag. The sellers who came forward to shed light on this issue have provided further proof that the current real estate model is outdated, and some serious changes could be on the way. Continue reading.

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Alex Doubet is the founder and CEO of Door, Inc. (Door.com), which is a residential real estate startup company based in Texas.

Why it's important for Texas startups to get funding within the Lone Star State

Texas startups should be getting funded with Texas money, and here's why. Getty Images

When you set out to disrupt a long-standing industry, one of the most important aspects is figuring out where you are going to get the money. Odds are, you are going to be OK with breaking the mold on other traditional practices such as forgoing the venture capitalist firms for smaller companies who share your innovative vision and want to invest in it.

That philosophy works well in Texas seeing as the big venture capitalists tend to stay on the East and West Coasts.

There are dozens of things to think about when starting a company. Funding can be the most important, and there are many ways to approach raising funding for your startup. Here are a few things to consider. Continue reading.

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Alex Doubet is the CEO and founder of Door Inc., a Texas-based, tech-infused real estate platform.

Houston expert shares her advice on how much startups should spend on marketing

When it comes to setting up a marketing budget for your startup, considering every angle is important. Getty Images

Industry research suggests spending 5 percent to 12 percent of total revenue on an annual marketing budget. At Integrate Agency, we believe marketing spend should be determined from key data points, versus current size. We shepherd our clients through a five-step process to calculate how much they should spend on marketing to maximize their ROI. Continue reading.

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Allie Danziger is the founder and president of Houston-based Integrate Agency, which focuses on digital marketing and public relations.

Finding lab space for startups and independent researchers in Houston needs to be easier, according to this expert

Rentable lab space is hard to come by. Getty Images

Finding coworking space is getting easier and easier for startups, but the same can't be said for startups looking for lab space. If Houston wants to continue to grow and develop its innovation ecosystem — specifically within research and development in the health sciences industry — the city needs more opportunities for small lab space real estate. Continue reading.

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Julie King is president of NB Realty Partners. She has mentored and provided commercial real estate advice to technology, biotech, and early-stage companies for over 20 years.

New technology gives this Houston hospital a competitive edge

A new prostate cancer treatment at Houston Methodist is enhancing the system's patient care. Getty Images

As the top ranking hospital in Texas and one of the biggest employers in Houston, Houston Methodist Hospital is poised to treat the thousands of Texan men who will be diagnosed with prostate cancer this year.

Building on its legacy of delivering advanced cancer treatment, the healthcare giant is one of the first hospitals in the United States to offer men a benign approach to treating localized prostate cancer, using high intensity focused ultrasound, or HIFU. HIFU is a minimally invasive procedure that allows patients to maintain their quality of life with potentially fewer side effects. Continue reading.

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Brian Miles, M.D, is a practicing urologist and professor of urology at the Institute for Academic Medicine at Houston Methodist.

Here's who to know in innovation this week in Houston. Courtesy photos

3 Houston innovators to know this week

Who's who

As we head into May, this week's Houston innovators are all thought leaders keeping our city and state at the forefront of technology and innovation — from consulting to real estate, and everything in between.

Amy Chronis, managing partner of the Houston office of Deloitte

Amy Chronis runs the Houston office of Deloitte and serves on the sustainability board for the GHP. AlexandersPortraits.com

Shortly after Amy Chronis was named as Deloitte's Houston managing partner, she got the call to join the sustainability committee for the Greater Houston Partnership. Chronis did not take this position lightly, she says, and she immediately started researching what Houston needed as a business ecosystem.

In March, as the chair for the organization's sustainability committee, she brought together a group of constituents to engage in a Smart Cities study with the goal to identify what Houston needs to focus on — what it wanted to be known for. She learned a lot about the city through the study.

"It's affirming how much all types of people with different backgrounds care and are interested in this topic and are highly desirous of our region moving forward," she says. "I also learned that things are more complicated or difficult than we would like — in terms of funding initiatives, for instance." Read the full story here.

Brad Deutser, author and founder of the Deutser Clarity Institute

DCI has been described as the "Wonkaland for business." Courtesy of DCI

Brad Deutser is taking his approach to business consulting and creative thinking to a whole new level with the Deutser Clarity Institute. The idea accelerator, think tank, and learning lab opens this week in Uptown.

"The Deutser Clarity Institute has captured the imagination of leaders across the country," says Deutser in a release. "Even with the available science on environmental design and leadership learning, we took a chance and pushed creativity and innovation to the farthest reaches to develop a fundamentally different space, way of learning and learning curriculum. We are also producing game changing research which will influence how leaders drive engagement." (Deutser serves on the board of InnovationMap.) Read the full story here.

Alex Doublet, CEO of Door.com

Buying a home is more digitized than ever — and here's how that's affecting the industry. Photo courtesy of Door

Alex Doublet is an honorary Houston innovator to know this week after he authored a guest article about technology trends in real estate that greatly affect Houston real estate. The Dallasite cites a recent lawsuit in which homesellers claim The National Association of Realtors, Realogy Holdings Corp., HomeServices of America, RE/MAX Holdings, Inc., and Keller Williams Realty, Inc. violated the federal antitrust law by conspiring the sellers to pay an inflated amount to the buyer's broker.

"The lawsuit highlights a new need for home buyers and sellers: transparency," writes Doublet. "Gone are the days when real estate agents can take a hefty commission from his or her clients without providing value that is worthy of the price tag. The sellers who came forward to shed light on this issue have provided further proof that the current real estate model is outdated, and some serious changes could be on the way." Read Doublet's article here.

Buying a home is more digitized than ever — and here's how that's affecting the industry. Photo courtesy of HAR

How technology is disrupting — and improving — the real estate industry in Texas

Modern moving

A recent lawsuit is rocking the residential real estate industry across the country. Home sellers whose properties were listed on one of 20 MLSs claim The National Association of Realtors, Realogy Holdings Corp., HomeServices of America, RE/MAX Holdings, Inc., and Keller Williams Realty, Inc. violated the federal antitrust law by conspiring the sellers to pay an inflated amount to the buyer's broker.

The lawsuit highlights a new need for home buyers and sellers: transparency. Gone are the days when real estate agents can take a hefty commission from his or her clients without providing value that is worthy of the price tag. The sellers who came forward to shed light on this issue have provided further proof that the current real estate model is outdated, and some serious changes could be on the way.

Our next moves as a united industry in the wake of this lawsuit are critical. It is critical that we react positively. It is critical that we bring more value and transparency to our customers, and it is critical that we utilize the technology we now have at our hands to do so.

How is technology finding its way into real estate? Here are a few ways in the evolving world of home buying and selling has evolved over the past five years:

Online searching 

Everything can be done online. In most modern real estate transactions, the buyer has already found the house they want before they even contact an agent to begin the process. To put that into numbers, 95 percent of buyers are looking for their home online, and over half find it before they engage an agent, according to the National Association of Realtors. Despite the fact that this big chunk of the traditional real estate agent's job has been cut out, the commission is still the same and the buyer will have to pay it indirectly through a higher listing price on the home.

Evolving past commissions and working towards a focus on the customer experience is the only way to provide value and stay relevant in the world of apps and search bars.

Accurate valuations 

Algorithms and accuracy in information gathering are imperative to a successful real estate transaction. Traditional agents will often come to a potential seller client with high dollar signs, telling them they should list their home for a high price. This is a tactic used to earn the seller's business. Where is the data behind that hefty price? What kind of algorithm did the agent use to value the home?

Modern real estate brokerages should be utilizing advanced valuation algorithms to bring an accurate value of the home to the seller instead of wooing them with an unattainable price.

Targeted marketing

Due to the high dependency of the internet, mass marketing in physical publications aren't as effective as they once were — consumers have more options to find what they need faster. Fifty percent of people that will ever see a home that is advertised online will see it in the first seven days on the market. We all know the importance of target marketing, and here's where social media comes in.

Targeting the right people on Facebook, Instagram, Pinterest, and Google will get a home sold faster than a newspaper or magazine can even be published. Effective agents will have built online audiences for each type of home to ensure a faster sale.

Simplifying and increasing visibility

Remember how important transparency is? Simplifying and streamlining the process is right up there with it on the priority list. Luckily, there's an easy way to solve both: custom portals. Clients love the fact that they can login and see their entire buying or selling experience in one neatly packaged, convenient tool.

The modern tools now at the hands of real estate brokerages should not diminish service, but rather enhance it. Acting as a specialized guide and using the technology to bring incredible value to clients should be the new norm when it comes to real estate transactions.

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Alex Doubet is the founder and CEO of Door, Inc. (Door.com), which is a residential real estate startup company based in Texas.

Texas startups should be getting funded with Texas money, and here's why. Getty Images

Why it's important for Texas startups to get funding within the Lone Star State

Stay local

When you set out to disrupt a long-standing industry, one of the most important aspects is figuring out where you are going to get the money. Odds are, you are going to be OK with breaking the mold on other traditional practices such as forgoing the venture capitalist firms for smaller companies who share your innovative vision and want to invest in it.

That philosophy works well in Texas seeing as the big venture capitalists tend to stay on the East and West Coasts.

There are dozens of things to think about when starting a company. Funding can be the most important, and there are many ways to approach raising funding for your startup. Here are a few things to consider.

Think local

They say everything is bigger in Texas, and one thing is for certain, the Texas economy is thriving and historically very stable. Five of the top 10 fastest-growing cities in the U.S. are in Texas, and a recent Federal Reserve Bank of Dallas report found that Texas is the top state for corporate relocations due to our business-friendly climate.

Benefits of the Texas economy

Business owners and investors alike are noticing the rapid job growth, low tax rates, minimal regulation, successful economic development, and the fact that Texas is the largest exporting state in the nation.

It's important to explore and evaluate all of your options because there are investors everywhere – big and small. I explored fundraising in other states and had I gone that route, it most likely would have led to a successful fundraising campaign. However, it would have looked a lot different. I learned during the first round of fundraising that as much as the angel investment matters, the first meaningful investment might matter even more.

Explore family office investors — it's personal

Traditionally, companies looking for investors seek out the venture capitalist firms with deep pockets. You can joke that Texas is a venture capitalist desert. Compared to the "coasts," there are not many venture capitalist firms here.

I realized that what Texas does have plenty of, is family office investors. And I quickly learned that it was this type of organization that I truly desired. Why? Because local family offices are more likely to share your "homegrown" startup vision. They have true vested interest and it is really personal for them.

Also, the younger generations of these family businesses often lead the way in extending beyond oil wells, fracking, shopping centers and agriculture in seeking to invest in technology startups.

Expert tip: We used our personal connections to target regional investors such as Court Wescott; the founder of 1-800-Flowers; retired Hollywood Casinos CEO Jack Pratt; The Murchison Family; and residential real estate developer Phillip Huffines. We were able to successfully reach around $12 million in the Series A round of fundraising.

When we were ready for the next round of fundraising, we had everything we needed right here in Texas.

Great ideas get funded

Venture capitalists who put a lot of money into a lot of companies also delegate to those companies a lifespan, or a timeline for getting their money back.

Since the family offices believed in our concept and understood what we were doing, we were seen as more of a long-term investment and therefore given a longer time horizon than we would if we had gone the more traditional route of fundraising.

Investors like to watch their investments grow and typically they have more money for second and third rounds of funding when you can prove your success in the first few years.

The bottom line: Investing in Texas companies is a beneficial strategy due to the Lone Star State's booming economy and investing in companies that you believe in makes for a more meaningful relationship, which helps everyone involved succeed.

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Alex Doubet is the CEO and founder of Door Inc., a Texas-based, tech-infused real estate platform.

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Early-stage accelerator names finalists for its second Houston cohort

ready to grow

A traveling seed-stage accelerator has announced its return to Houston and named its second cohort.

CodeLaunch, produced by Dallas-based constant and software development company Improving and presented by Ohio-based VC network Cyrannus, is returning to Houston. The company's second Houston accelerator event will be held on March 2.

Putting a fresh spin on the seed accelerator model, CodeLaunch combines a startup competition with a tech tradeshow, as well as allows for networking among attendees. Since its inception ten years ago, the touring competition has doled out over $1.4 million in services to its finalists and overall winners.

"CodeLaunch is a startup and rock-n-roll show like nothing you've ever seen before," says CodeLaunch President and Founder Jason W. Taylor in a news release.

The competition pairs six startups with six startup consulting companies. This year's finalists and mentor pairings are as follows:

  • Lake Charles, Louisiana-based GOPHR's consultant mentor is Softeq
  • Port Arthur, Texas-based DrinKicks is paired with BJSS
  • Energy360, based in Houston, has been matched with Honeycomb Software
  • Inpathy, based in Detroit and Tyler, Texas, will work with Contollo
  • Drivingo, led by a student founder from Virginia Tech, is selected to collaborate with Blue People
  • Houston-based AnyShift's consultant mentor is Improving

Houston-based Softeq is returning to the event after working with software startup Codiac.

“CodeLaunch was great. We gained customers, investors, and a lot of local notoriety. It was the best event we had all last year," says Ben Ghazi, founder of Codiac about the event.

ResQ TRX, a Houston startup that provides solutions for the logistics industry, won CodeLaunch HOU 2022. Houston-based Clutch won Judges' Choice in last year's competition.

This year, investment is also on the line. Presenting partner Cyrannus announced that all startup founders who advance to the semifinal round of CodeLaunch will be competing in a $100,000 investment challenge, as well as the $50,000 challenge for impact startups. There would be one or two winners — either a winner for each award or, if a company scores top marks in both categories, one company can take home the entire $150,000.

“Not only will (a winner) get the cash, but also be introduced to a network that will help them refine their idea and get ready for their first big fundraiser," says Lee Mosbacker, founder of Cyrannus, in a news release.

This year's CodeLaunch event will be a part of Houston Tech Rodeo, which is taking place February 27 to March 2 this year. Tech Rodeo, which announced its schedule this week, will conclude its programming with the CodeLaunch event.

"Houston Exponential could not be more excited about our partnership with CodeLaunch Houston," says Houston Exponential CEO Natara Branch in the release. "They are a fantastic ally in Houston’s efforts to serve its growing startup community and CodeLaunch is an incredible fit for the capstone of the 2022 Tech Rodeo. Finishing off Tech Rodeo with CodeLaunch's exciting atmosphere will be a highly anticipated event for the Houston innovation ecosystem after an engaging week of programming."

Here's the income it takes to live among the top 1 percent in Texas

isn't that rich?

Wondering how "the other half lives" is so outdated, especially when we we can easily peek into what life is like for the "one percent." A new report from SmartAsset reveals how much money you'll need to be considered the top one percent in Texas.

With two Houston suburbs landing among the richest cities in Texas in a recent report, it's obvious that the Lone Star State is dotted with pockets of wealth. But how much do you actually need in your pocket to have a top one percent income?

In Texas, an annual income of $641,400 will land you at the top, while $258,400 only gets you to the top five percent.

To come up with those numbers, SmartAsset analyzed 2019 data from IRS tax units and adjusted the figures to 2022 dollars using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the Bureau of Labor Statistics.

For comparison, "the average American household earns a median income of under $70,000," according to the study. And per the latest figures from the U. S. Census Bureau, the median household income in Texas (in 2021 dollars) is $67,321. That leaves plenty of us with a long way to go in our financial striving.

So now we know how we compare to our neighbors, but where does that put the affluent population of Texas in comparison with other states?

For starters, Texas claimed the 10th highest income required to reach top income levels.

The one percent income threshold is hardest to meet in Connecticut ($955,000), Massachusetts ($900,000), New Jersey ($825,965), New York ($817,796), and California ($805,519). Only these five states have thresholds that exceed $800,00, and it's a pretty steep drop down to Texas ($641,400) in 10th place.

The five states where it's easiest to attain one percent status (even though that doesn't seem like good news) are Kentucky ($447,300), Arkansas ($446,276), New Mexico ($418,970), Mississippi ($383,128), and West Virginia ($374,712).

The SmartAsset report also included average tax rates for top earners in each state. There was surprisingly little variance in the top 10 states, with Washington state having the lowest rate (25.02%) and Connecticut collecting the highest tax rate (27.77%).

Texas was in the middle of the pack with a tax rate of 25.71% levied on top one percent incomes.

The 10 states with the highest earnings required to be a one-percenter and their tax rates are:

  1. Connecticut ($955.3K, Tax rate 27.77%)
  2. Massachusetts ($896.9K, Tax rate 26.4%)
  3. New Jersey ($826K, Tax rate 27.36%)
  4. New York ($817.8K, Tax rate 27.48%)
  5. California ($805.5K, Tax rate 26.78%)
  6. Washington ($736.1K, Tax rate 25.02%)
  7. Colorado ($682.9K, Tax rate 25.24%)
  8. Florida ($678.8K, Tax rate 25.23%)
  9. Illinois ($666.2K, Tax rate 26.23%)
  10. Texas ($641.4K, Tax rate 25.71%)
If you're on your way to being a top earner and want to do a deeper dive on those numbers, you can view the full report on the SmartAsset website.

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This article originally ran on CultureMap.

How Houston businesses can support employee mental health in 2023, according to expert

guest column

In 2023, it is imperative leaders keep the wellbeing of their workforce at the forefront of their minds.

According to an October 2022 publication from the McKinsey Health Institute, 59 percent of the global workforce report having at least one mental health challenge either now or in the past. These challenges not only threaten employee wellbeing but can also impact performance by a reduction in productivity.

Numerous factors outside of work impact individual mental health. Nonetheless, employers can make a difference with a few key steps, such as properly training management to mitigate toxic behaviors, prioritizing inclusivity and providing mental health resources.

Management training

To start, leaders need to prepare their managers to set the tone for employees. Frontline managers can have a large influence on employee wellbeing through their daily interactions with their teams. Even if organizations offer a host of mental health benefits, employees might not take advantage if their managers do not buy in. There is no substitute for the genuine care and concern that a supportive manager offers their employees, and they can tell the difference when they are authentically cared for or not.

Although the vast majority of managers have good intentions toward their employees, managers also may hold themselves and their teams to high standards without realizing the impact on mental health. Managers should receive training in how to respect work-life balance, help employees prioritize their duties, and create and maintain a supportive, positive work environment. These things may not have been on the radar for management in the past, but it is now the norm to lead with the wellness of the whole person in mind.

Beyond helping employees balance their lives, managers also need support in balancing their own, particularly to avoid burnout. Employees and managers may both face pressure to perform, and leaders need to make sure mental health initiatives for junior employees do not simply transfer excessive workloads to their supervisors. To accomplish that, train managers in time- and stress-management techniques and keep the lines of communication open with the executive team. Staying in tune with the pulse of wellness at work requires open communication and the commitment to support work-life balance by all members of the organization.

Prioritize inclusivity

Since 2020, inclusivity has become a bigger and bigger part of the conversation about workplace culture. The impact of a discriminatory workplace on mental health can be profound. When employees experience or indirectly experience discrimination in the workplace, their overall wellbeing suffers, with engagement and satisfaction decreasing as well, according to a 2021 survey from Gallup. The good news is most workplaces already have policies in place to prevent and report discriminatory practices.

However, a truly inclusive workplace will go beyond anti-discrimination policies to create an affirmative environment where employees can fully embrace their identities. Steps to promote inclusivity include celebrating holidays of various cultures, creating opportunities for employees to discuss their heritage and traditions, organizing relationship-focused exercises and offering educational opportunities in the workplace. To promote unity in the workplace, leaders should take care to discourage the formation of cliques and ensure all employees feel welcomed and not judged or mistreated by coworkers. Valuing diversity and honoring the individual drives the culture of tolerance and acceptance, which promotes a harmonious and productive work environment and team.

Provide mental health resources

To promote mental health and wellness, employees need access to the right resources and the knowledge to navigate those resources. In many cases, employees with the biggest mental health challenges may also face the most obstacles in receiving care. For employers offering health care benefits, employees may need training on how to find mental health practitioners in their area. What is more, employees accustomed to inconvenient appointment times or long wait lists for therapists may benefit from learning about online therapy platforms, which can offer care sooner and outside of typical work hours.

Many employers also choose to offer an employee assistance plan, or EAP, which can offer further mental health programs, free of charge. Despite their relevance to employees in need, EAPs are often overlooked and underutilized, making it even more necessary for managers or HR to proactively reach out to employees and educate them about their EAP benefits.

For organizations without the budget to provide health care benefits or EAPs, their leadership should investigate free or low-cost mental health resources in their region. In many cases, local government will provide free access or subsidies for mental health care. Nonprofit organizations may also offer free programs for those meeting eligibility requirements.

Employers should keep in mind employees may feel afraid to use mental health benefits for fear of stigma. While managers should be careful not to intrude on employees’ personal lives, managers can still gently offer caring support to employees who show signs of struggling with mental health, including chronic tardiness, absenteeism, low mood and a sudden change in personality or work performance. The ability to know if a behavior is out of the norm for an employee, the manager needs to have built a relationship with them and to care enough to notice the change.

As employees continue to face mental health challenges in their personal lives, employers can be part of the solution by educating managers, emphasizing inclusivity and offering mental health resources and support. Being a caring human being goes a long way, even at work.

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Karen Leal is a performance specialist with Houston-based Insperity, a provider of human resources offering a suite of scalable HR solutions available in the marketplace.