A Houston investor and leader at Houston Angel Network weighs in on the importance of angel investors in growing startup communities. Photo via Getty Images

In a flourishing startup ecosystem, the roles of entrepreneurs, venture capitalists, startup development organizations, policymakers, research institutions, and universities are well documented and understood. Less obvious, however, is the role of early-stage investors, aka, “angel investors.”

These unique people are often the first non-family money to invest in a young company, often while it is still refining its business model, completing its minimum viable product (MVP), or finding product-market fit. Excellent angel investors, however, provide value to the ecosystem far beyond their ability to write a check.

Most angel investors bring deep expertise within their domain. These can be 20- or 30-year industry veterans with invaluable been-there-done-that experience in a particular technology, discipline, vertical, or regulatory environment. They can share insights learned from various industry trends that have succeeded and failed, which often save startups significant time and effort. Or they may bring complementary business expertise such as legal, accounting, technology, financing, or startup strategy. Many angels have launched or worked in multiple startups themselves, which gives them an ability to quickly understand and assist with the unique challenges of early-stage business.

Additionally, good investors are aggregators of knowledge. They constantly read about the sectors in which they invest, learn the latest trends, and watch for innovations that they believe will change industries. As forward thinkers, they know how to look past buzzwords to find what is truly unique or different. They often ask the “hard questions” that cut to the heart of the matter. Wise founders learn how to listen and use this feedback to improve their company and strategy.

Many angel investors serve as mentors to startups and share their hard-won knowledge. Most start with informal or unpaid relationships either through an SDO or personal referral. If they form a meaningful connection with a particular startup, this could turn into an official role as a compensated advisor. The best of these relationships are mutually beneficial and ultimately profitable if the company has a successful exit. Similarly, angels may become advisors to venture capital funds that want to bring their insights to their portfolio companies.

Investors are natural connectors in an ecosystem. As they search for, invest in, and mentor great startups, they foster connections across the innovation community. Relationship-building is key to all business success, and a wise angel knows how to respectfully leverage connections for mutual benefit. However, be careful not to ask an investor to share connections too soon. One of the fastest turn-offs is someone who asks me to open my rolodex before earning my trust and respect.

The most obvious benefit that investors bring to the innovation ecosystem is fundingfor early-stage businesses. This infusion of capital enables young businesses to identify, create, and grow value, which is the ultimate point of innovation. I mention it last, however, because savvy entrepreneurs know the difference between “smart money” and “dumb money.” Dumb money is not a pejorative but a label for money that has no voice or utility beyond its monetary value (which makes it silent or “dumb”).

Smart money, on the other hand, brings many or all of the other attributes discussed above: knowledge, expertise, mentoring, and connections. In terms of value, smart money is worth many times more than its cash value.

As the Houston innovation ecosystem grows, we need more accredited investors with a passion for innovation to learn about angel investing and determine if it is a fit for them. Given its very high-risk profile, it certainly isn’t appropriate for everyone. However, angel investing is a powerful way that investors can help solve society’s biggest challenges and contribute to a thriving innovation community.

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Mitra Miller is the vice president and board member of Houston Angel Network.

Houston-based Eden Grow Systems hopes to disrupt the agtech industry and revolutionize — and localize — produce. Photo via edengrowsystems.com

Houston startup with next-gen farming tech calls for crowdfunding as it plans to grow

seeing green

Whether it’s on Mars or at the kitchen table, entrepreneur Bart Womack wants to change what and how you eat.

But the CEO and founder of next-generation farming startup Eden Grow Systems is seeking crowdfunders to help feed the venture.

The company evokes images of a garden paradise on earth. But the idea behind the Houston-based NASA spinoff came from a more pragmatic view of the world. Womack’s company sells indoor food towers, self-contained, modular plant growth systems built on years of research by NASA scientists looking for the best way to feed astronauts in space.

The company has launched a $1.24 million regulated crowdfunding campaign to raise the money it needs to scale and expand manufacturing outside the current location in Washington state.

Additionally, the U.S. Air Force recently chose Eden as a food source for the U.S. Space Force base on remote Ascension Island, in the Atlantic Ocean, Womack tells InnovationMap. Another project with Space Center Houston is also in the works.

“We want to be the government and DOD contractor for these kind of next-generation farming systems,” he says.

The Houston-based company includes former NASA scientists, like recent hire Dr. L. Marshall Porterfield, of Purdue University, as an innovation advisor.

Womack, a former digital marketer, Houston public channel show host, night club owner and entertainment entrepreneur, left those ventures in 2012, after the birth of his first child. While taking a year to study trends research, in 2014, what he read intrigued and alarmed him.

“I’ll never forget, I came across a report from Chase Manhattan Bank….of the top 10 disruptive investment sectors, over the next decade,” he says. “At the very top of the list was food.”

Bart Womack founded Eden Grow Systems in 2017. Photo courtesy

His conclusions on the fragility of the world’s food supply system, due to overpopulation, and scarcer land, led him to launch Eden in 2017, funded by venture capital firm SpaceFund, Womack, his family, friends and angel investors.

Womack believes “black swan” events will only increase, disrupting the food supply system and further jeopardizing food supplies.

“We’re going to enter a period of hyper novelty in history,” Womack says.. "The system we’ve built for the last 100 years, the super optimized system, is going to begin to break apart."

To avert a centralized food production outcome, operated by corporate giants like Amazon or Walmart, Womack’s vision offers a decentralized alternative, leaving it in local hands.

With $2 million put into the company so far and a half million-dollars in sales last year, Womack argues that Eden has achieved much and can make food independence within reach for everyday families.

The company commercialized NASA technology to fill what it viewed as “a huge gap within the controlled…agricultural space.”

The tower is the building block of a modular, automated and vertical indoor plant growth system, with calibrated misting, fans, and LED lighting, controlled by an app.

The company website touts the towers as an easy way to grow plants like lettuce, carrots, tomatoes, and potatoes, with little water, no soil, and lots of air, without the expense and work of cultivating an earth-based garden.

For those who want to eat more than greens, the towers provide a way to breed fish and shrimp in an aquaponic version, recycling fish waste as plant fertilizer.

However, big plans come with big costs. The towers range in price from $5,000 to $7,000, although payment plans for those who qualify make it affordable.

Eden has sold around 100 of their towers so far, to a variety of customers. But rising costs and shipping delays have led to a a three-month backlog.

The manufacturing and shipping associated with larger installations means that even if the company made a million-dollar sale, delivery of the product would take a year.

“One of the hardest things…as a start-up, the last couple of years, is trying to narrow down exactly where the biggest payback is,” Womack says. “There is the lower hanging fruit, of small sales to individual buyers, but there’s the larger fruit of institutional buyers. But they can take months and years to convert into an actual buyer.”

Customers include several universities, including Texas A&M University and Prairie View A&M University, and talks are underway with other large academic institutions.

For now, attracting investors so the company can reach its funding goal poses the biggest challenge.

“Texas investors are very, very hard-nosed, and they’re not like West Coast investors. They want to understand exactly how they’re going to get their money back, and exactly how quickly,” he says.

Womack says the crowdfunding round would allow the company to expand manufacturing operations into Houston, deliver product faster, and invest in advertising.

“When we complete this round, and become completely self sufficient, we’re planning on moving to a $25 million valuation,” Womack says. “We can show, given money, we can scale the company.”

The city of Nassau Bay, next to NASA’s Johnson Space Center, has purchased towers and plans to purchase more, not for the production of food, but to grow ornamental flowers.

Womack says that city officials there found that it’s cheaper to grow the decorative plants themselves, rather than buying them.

The towers are adaptable, and can grow not only food but cannabis and other plants, and if buyers want to use them other purposes, that adds to the product’s appeal, Womack says.

Eden has also sold some towers to Harris County Precinct 2 and the city of Houston, as part of a project he says will turn food deserts throughout the area into “food prosperity zones.”

“Our goal is to be the farming equivalent of Boeing,” Womack says.

Teamwork makes the dream work, and this new investor alliance hopes to make Houston startups' dreams of seed funding come true. Getty Images

Investors join forces for citywide alliance to increase access to early-stage capital

Teamwork makes the dream work

Securing funding for your startup is now a one-stop shopping experience. Over 200 accredited investors have teamed up to create the Houston Investment Network Alliance — a platform that promotes investment opportunities and mentorship for early-stage companies.

HINA is a collaboration where participating investors can partner up to co-invest in startups, co-host investor events, and share opportunities.

Behind the alliance are four Houston investment entities: the Houston Angel Network, Rice Angel Network, GOOSE Society of Texas, and Cannon Ventures.

"HAN and the Goose Society have invested over $150M in early stage companies over the last decade. The appetite for startup investing continues to be alive and strong in Houston," says Stephanie Campbell, HAN managing director, in a release. "The birth of new groups like RAN and Cannon Ventures demonstrates a new and growing appetite for investment."

Each of the organizations have connections to Rice University and previously worked together on a sports technology-focused pitch night hosted at The Cannon, a West Houston coworking space lead by CEO and founder, Lawson Gow. Gow is the son of David Gow, owner of InnovationMap's parent company Gow Media.

The Cannon launched its own fund, Cannon Ventures, about seven months ago. It has four startup partners: SEATz, Win-Win, Data Gumbo, and SeeHerWork. Each Cannon Ventures startup partner will received anywhere between $100,000 to $400,000 of seed funding as well as access to space in The Cannon and its accelerator opportunities, Gow says.

Cannon Ventures has already also collaborated with the other HINA organizations. The Rice Angel Network is even based out The Cannon.

"We're increasingly co-investing with other angel networks," Gow says, "because it's hard to start a company and raise money, so the more we can do that to help Houston startups get the money they need."

According to Gow, Houston's thriving startup scene and deep pockets is a perfect opportunity for HINA.

"One of the great things about Houston is we've got a lot of money here," he says. "One of the most transformative things we can do for the startup community is get a lot of high-net worth individuals is get them off the bench and onto the field and activate them as regular angel investors into Houston-based startups. That's a really important goal of Cannon Ventures is to grow our membership base and get ore people involved."

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Houston chemist lands $2M NIH grant for cancer treatment research

future of cellular health

A Rice University chemist has landed a $2 million grant from the National Institute of Health for his work that aims to reprogram the genetic code and explore the role certain cells play in causing diseases like cancer and neurological disorders.

The funds were awarded to Han Xiao, the Norman Hackerman-Welch Young Investigator, associate professor of chemistry, from the NIH's Maximizing Investigators’ Research Award (MIRA) program, which supports medically focused laboratories.

Xiao will use the five-year grant to develop noncanonical amino acids (ncAAs) with diverse properties to help build proteins, according to a statement from Rice. He and his team will then use the ncAAs to explore the vivo sensors for enzymes involved in posttranslational modifications (PTMs), which play a role in the development of cancers and neurological disorders. Additionally, the team will look to develop a way to detect these enzymes in living organisms in real-time rather than in a lab.

“This innovative approach could revolutionize how we understand and control cellular functions,” Xiao said in the statement.

According to Rice, these developments could have major implications for the way diseases are treated, specifically for epigenetic inhibitors that are used to treat cancer.

Xiao helped lead the charge to launch Rice's new Synthesis X Center this spring. The center, which was born out of informal meetings between Xio's lab and others from the Baylor College of Medicine’s Dan L Duncan Comprehensive Cancer Center at the Baylor College of Medicine, aims to improve cancer outcomes by turning fundamental research into clinical applications.

They will build upon annual retreats, in which investigators can share unpublished findings, and also plan to host a national conference, the first slated for this fall titled "Synthetic Innovations Towards a Cure for Cancer.”

Houston neighbor ranks as one of America's most livable small cities

mo city

Some Houston suburbs stick out from the rest thanks to their affluent residents, and now Missouri City is getting time in the spotlight, thanks to its new ranking as the No. 77 most livable small city in the country.

The tiny but mighty Houston neighbor, located less than 20 miles southwest of Houston, was among six Texas cities that earned a top-100 ranking in SmartAsset's 2024 " Most Livable Small Cities" report. It compared 281 U.S. cities with populations between 65,000 and 100,000 residents across eight metrics, such as a resident's housing costs as a percentage of household income, the city's average commute times, and the proportions of entertainment, food service, and healthcare establishments.

According to the U.S. Census Bureau, Missouri City has an estimated population of over 76,000 residents, whose median household income comes out to $97,211. SmartAsset calculated that a Missouri City household's annual housing costs only take up 19.4 percent of that household's income. Additionally, the study found only six percent of the town's population live below the poverty level.

Here's how Missouri City performed in two other metrics in the study:

  • 1.4 percent – The proportion of arts, entertainment, and recreation businesses as a percentage of all businesses
  • 29.9 minutes – Worker's average commute time

But income and housing aren't the only things that make Missouri City one of the most livable small cities in Texas. Residents benefit from its proximity from central Houston, but the town mainly prides itself on its spacious park system, playgrounds, and other recreational activities.

Missouri City, Texas

Missouri City residents have plenty of parkland to enjoy. www.missouricitytx.gov

The Missouri City Parks and Recreation Departmen meticulously maintains 21 parks spanning just over 515 acres of land, an additional 500 acres of undeveloped parkland, and 14.4 miles of trails throughout the town, according to the city's website."Small cities may offer cost benefits for residents looking to stretch their income while enjoying a comfortable – and more spacious – lifestyle," the report's author wrote. "While livability is a subjective concept that may take on different definitions for different people, some elements of a community can come close to being universally beneficial."

Missouri City is also home to Fort Bend Town Square, a massive mixed-use development at the intersection of TX 6 and the Fort Bend Parkway. It offers apartments, shopping, and restaurants, including a rumored location of Trill Burgers.

Other Houston-area cities that earned a spot in the report include

Spring (No. 227) and Baytown (No. 254).The five remaining Texas cities that were among the top 100 most livable small cities in the U.S. include Flower Mound (No. 29), Leander (No. 60), Mansfield (No. 69), Pflugerville (No. 78), and Cedar Park (No. 85).

The top 10 most livable small cities in the U.S. are:

  • No. 1 – Troy, Michigan
  • No. 2 – Rochester Hills, Michigan
  • No. 3 – Eau Claire, Wisconsin
  • No. 4 – Franklin, Tennessee
  • No. 5 – Redmond, Washington
  • No. 6 – Appleton, Wisconsin
  • No. 7 – Apex, North Carolina
  • No. 8 – Plymouth, Minnesota
  • No. 9 – Livonia, Michigan
  • No. 10 – Oshkosh, Wisconsin

The report examined data from the U.S. Census Bureau's 2022 1-year American Community Survey and the 2021 County Business Patterns Survey to determine its rankings.The report and its methodology can be found on

smartasset.com

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This article originally ran on CultureMap.