A panel of experts discussed decentralized web and Web3 technology — and its potential for impacting communities. Photo courtesy of DivInc

Houston innovators dispelled some of the misconceptions about the decentralized web and Web3 technology at a recent Ion panel, highlighting the technology’s ability to bring communities together.

DivInc, a Texas-based accelerator focused on helping BIPOC and female founders on their entrepreneurial journeys, hosted a panel to discuss the benefits of transitioning to DWeb for entrepreneurs, personal success stories of using Web3 technology, and promoted its inaugural DWeb for Social Impact Accelerator.

The panelists included Giorgio Villani, founder of Spindletop Digital; Akeel Bernard, community development manager of Impact Hub Houston; and Ayoola John, co-founder and CEO of Astronaut. The discussion was moderated by Cherise Luter, marketing director of DivInc.

With the application for the DWeb 12-week accelerator program live, announced earlier this year, Luter says the panel was initiated to help explain the links between impact entrepreneurship and DWeb, two areas that people may think are very separate.

“This is our first time hosting a social impact accelerator here in Houston and we’re really excited about it. We added this extra piece of Web3, DWeb – how social entrepreneurs are utilizing this new technology to push forward their vision and bring about their startups,’” Luter says.

Villani, a founder of multiple companies that employ Web3 innovation, defined this technology as a tool of decentralization in which users are responsible for their own data and transactions are kept transparent by being publicly accessible. Villani contrasted this setup to the modern internet, known as Web2, in which users entrust third parties with encrypting their personal data, allowing them to mine and profit from this information.

“Web3 is a flipping of the script a little bit – it’s where we’re focusing primarily on the individual, where the individual is being empowered. Everybody manages their own keys and you don’t have to trust a third party to do anything within the system … you don’t have to cede your power to third party entities – it’s really an empowering thing to do,” Villani explains.

Villani addressed the misunderstanding that the decentralized web is too complicated for the average person to use by highlighting his partnership with multimedia Houston artist J. Omar Ochoa. Ochoa is incorporating Web3 technologies like AI and NFTs into an exhibit, allowing him to interact directly with buyers.

“The misconception is that (Web3) is difficult or too technical and it’s really not. There’s some stuff that takes a little bit of work but once you’ve done that the whole world of Web3 opens up in front of you,” Villani says.

For Villani, Web3 technologies are about the opportunity for connection.

“When you look around you, a lot of people these days are lonely and it’s funny because we have these platforms like Facebooks, Instagrams, WhatsApps, Snapchats and they’re all designed to bring us together but if you really look around you we’re not together,” Villani explains. “For me fundamentally, we have to reimagine how we build social networks, how we connect people.”

Web3 technologies are not all inherently about decentralization of the internet so much as rethinking how to rebuild the web to bring people together based on shared interests, adds John, co-founder of a social impact company that uses Web3 to help brands build online communities.

In contrast to much of the tech world, John also says that NFTs and cryptocurrencies, both of which are considered Web3 tools as they operate on blockchains, are not components of DWeb because they are tied up by monopolies. As the majority of NFTs are sold on one website and Bitcoin continues to dominate the cryptocurrency market, John explains they can not qualify as decentralized.

“I believe I can make an argument that crypto at its core is not about decentralization. What I believe crypto is and the Web3 movement is about reimagination,” John shares.

Bernard, who works directly with social impact entrepreneurs at Impact Hub Houston, says he anticipates founders looking to secure investors for their DWeb related companies will struggle, at first, because they must concisely explain the technology and business model at play. Bernard says he previously coached entrepreneurs on how to explain to investors that investing in social impact companies is not charity but a typical investment that will pay returns. Bernard expects DWeb focused companies will face similar uphill battles of getting investors to understand their concepts.

“I think with DWeb because it’s a newer network it’s going to require social impact entrepreneurs to educate investors and also users on the benefits of DWeb,” Bernard explains. “You’re going to have to be able to explain to them in a clear and consistent way especially to the investors, folks that have the means but don’t understand what DWeb is, how it can be utilized for success.”

Photo courtesy of DivInc

Mario Diaz, CEO of the Houston Airport System addresses the crowd gathered to celebrate the Apollo 11 anniversary this weekend. Natalie Harms/InnovationMap

Overheard: Aerospace and airport VIPs commemorate Space City Month at IAH

Out of this world

Houston, we have liftoff of a space-filled weekend. Saturday, July 20, marks the 50th anniversary of Apollo 11 touching down on the moon, and that calls for a celebration, as well as a commemoration.

Houston First, Space Center Houston, NASA, and United Airlines teamed up to host an international delegation at George Bush Intercontinental Airport in Terminal C on July 17. Various space or Space City VIPs took the stage to discuss their memories of the lunar landing and the role Houston played in the monumental event.

“Our hope is to be an airport system that reflects Houston’s role as a leader on the global stage and to have our city standing as truly international business and cultural center. With both Bush and Hobby airports having earned four-star ratings, we are built to meet those expectations.”

— Mario Diaz, executive director at Houston Airport System. Bush Intercontinental Airport is also celebrating its 50th anniversary since opening in 1969.

“It is the innovative spirit of the people of this city that help give the world our new perspective. We are all neighbors, and we must all face the future as one. How wonderful that understanding is now with Houston having become the nation’s most diverse city in the country with one in four Houstonians being foreign born.”

— Houston Mayor Sylvester Turner, referencing a ranking released earlier this year.

“This week, we are celebrating this anniversary and time when we did so much more than we thought we could. … [the Apollo mission] was an inspiration to us then, and I think continues to be an inspiration to all of us even now.”

Peggy Whitson, former NASA astronaut who holds the record for the United States for her 665 days in space.

“Houston is the Space City, because the Johnson Space Center is the home of human space flight. As you know, ‘Houston’ was the very first word spoken from the surface of the moon. And, it wasn’t a fluke. They knew who they needed to talk to, and it was Houston.”

— Mark Geyer, director of NASA's Johnson Space Center.

“In roughly three years, we will have astronauts back in the region of the moon — this time women and men. And soon after that, back onto the surface of the moon again in our mission called Artemis.”

— Geyer continues to say of NASA's lunar exploration plans.

“Just a few weeks ago, [Space Center Houston] inaugurated the completely restored mission control operations room from the Apollo era. We’ve done a restoration and taken it back to the 1960s, and it appears as if the flight controllers just got up to take a break.”

— William Harris, CEO of Space Center Houston. The organization is NASA's official tourism arm and houses 250,000 square feet of indoor and outdoor exhibition space.

Tim Kopra spent over 244 days in space, and now he's using his tech background to invest in emerging energy companies. Courtesy of Tim Kopra

Former NASA astronaut is investing in the future of the oil and gas industry

Featured Innovator

When Tim Kopra returned from space in 2009 after he served as flight engineer on NASA's Expedition 20, he was ready to transition into civilian life. The Army vet went to business school, received his MBA in 2013, and started thinking about his next steps here on earth.

That is, until he was called back by NASA to serve as flight engineer then commander of the ISS in Expedition 46/47. He landed in June of 2016 after spending a career total of 244 days in space.

The timing was right this time around for Kopra. A former classmate of his, Ernst Theodor Sack, had worked at a Riverstone Holdings for a decade and had realized the potential for funding smaller, more niche startups. Sack was ready to branch out on his own, and Kopra was looking for his next career opportunity too.

That's how the two partnered up to create Blue Bear Capital, an investment fund that invests in data-driven technology companies in the energy supply chain.

"You can think of it as Silicon Valley tech, IoT, analytics, machine learning, SaaS business models applied to oil and gas, wind, solar, and energy storage," Kopra says.

The energy industry has been known to be slow to adopt new technology, like analytics, machine learning, and the Internet of Things, Kopra says, but Blue Bear's goal is to find the startups creating cutting edge technology and help them gain a footing in the industry.

"In order to adopt new technology, our view is that it has to be able to demonstrate clear value proposition upfront — not something that promises to improve operations down the line. It needs to happen relatively quickly."

Blue Bear capital closed its fund in the fourth quarter of 2018 with a total of eight investments. Kopra spoke with InnovationMap on how he's merged his space career into a tech investment guru.

InnovationMap: What sort of experience do you bring in to your investment responsibilities from your Army and NASA days?

Tim Kopra: On face value, it may sound like an odd match, taking someone with a tech and operational background and putting them in venture, but quite frankly it feels very familiar to me because my career has really been focused on working on complex technology and operations with very small teams. It's not just a theoretical understanding of the technology, but understanding how to use the technology and how it works.

It's something that over time, when you work with different kinds of aircraft or experiments on the Space Station or the space suits we use on space walks or the robotics system we used, you really develop a strong sense of how we as humans are able to work with technology and improve the functions we have in our jobs. That's a valuable aspect I bring to the table.

There's the operational component too. You can have great technology, but if it's not well matched to its job and implementation, it's not going to have the ability to solve the problems it was intended for. Third component is with small teams. I've worked with teams of two to 10 to 30 to several hundred — you recognize the need for people to work more effectively together.

I was on the last couple of astronaut selection committees. Our most recent one was going through 18,300 and select 12. Our job during the last portion of the selection is interviewing the last 50 or so. Those people competing for those spots are rock solid when it comes to their technical background and operational experience. The one thing we were asking ourselves as the interview committee was, "Who'd you want to go camping with?" It's the matter of the kind of people you can spend time with and be effective with. When we look at companies to invest in, we are looking for good small teams like that.

IM: How has Houston's tech ecosystem changed throughout your career?

TK: When we started in January of 2017, we saw one conference every few months that was involved in innovation and new technology and its application in oil and gas. Whereas now, it's pretty much every month that there's a major event about applying new technology in the industry.

IM: So, how has the city been for you as an investor?

TK: Obviously, Houston is the center for traditional energy and oil and gas. One thing that has been notable over our journey is the increased involvement in corporate venture funds. And, then the number of startups — it's a growing number and there's plenty of room for growth when it comes to energy startups. We've definitely seen an improvement in the types of technology provided and the number of startups emerging.

IM: Do you feel like the relationship you have with corporate VCs is competitive or collaborative?

TK: I think that the environment for venture capital in Houston in particular is very collaborative. When it comes to the corporate VCs, we're aligned because often times they are looking for companies farther along and then secondly, we're happy to co-invest with corporate teams. There are plenty of deals to go around, and we think working together we can definitely succeed.

IM: What types of companies are you looking for?

TK: We consider companies that are early revenue companies. We focus on data-driven technology companies, but they need to have recurring commercial revenue, so not just pilots.

IM: What's next for Blue Bear?

TK: We recently closed the fund, and what that means is we need to deploy the capital. We've invested in eight companies and had one exit, which we are excited about.

What we try to do is find the absolute best in class within a sector in which we invest.

IM: What keeps you up at night, as it pertains to your business?

TK: It's a very dynamic world. We have to keep track of macro trends and understand where the market is going. That has everything to do from the price of oil to government incentives to what large companies are investing in. I wouldn't say that it keeps us awake at night, but there's so many facets of the business that can impact what we do — positively and negatively. But we are constantly keeping track of what's going on in the world and what's going on in our sector.

The one thing we are most focused on right now is maintaining deal flow that we've been able to achieve. Going through the thousand or so companies we have over the past couple of years has been an extremely arduous task, but it's necessary for us to be able to understand the market.

We need to be as diligent as we have been over the past couple years. It's a really exciting space to work in, and we just need to maintain that level of excitement.

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Portions of this interview have been edited.

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Houston-based equitable entrepreneurship tech platform expands programs

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Fresh off of celebrating the dismissal of a lawsuit from former Trump Administration officials, Hello Alice is expanding some of its offerings for entrepreneurs.

In partnership with top organizations — like Progressive, Antares Capital, Wells Fargo, and FedEx — Hello Alice has added new offerings for its 2024 Boost Camp programs, a mix of skill-building support and grant opportunities.

“We are fortunate to continue working with great enterprise partners who share our commitment to supporting Main Street through crucial grants and mentorship programs,” Carolyn Rodz, CEO and co-founder of Hello Alice, says in a news release. “Small businesses drive our economy, yet often lack the necessary financing and resources. By partnering with major companies, Hello Alice is ensuring that small businesses have access to the tools and opportunities they need to thrive and create jobs in their local communities. Together, we are building a robust support system that fosters innovation and growth for small businesses across the country.”

This year's programs, according to Hello Alice, are as follows:

  • Antares Capital REACH Cohort: The Antares REACH Grant Program provides $20,000 grants to small businesses. Grant recipients will also take part in Antares’ Growth Track Boost Camp program, a digital community which will be home to monthly business coaching workshops, mentorship, networking, and more. Applications are open until June 28, and the program begins August 8.
  • Progressive Driving Small Business Forward Grant & Booster Camp Program: Progressive is dedicating $1 million to award 20 deserving businesses with a $50,000 grant each. Grant recipients will be invited to attend an exclusive 12-week virtual Boost Camp coaching program. Applications have closed for the program beginning September 10.
  • Wells Fargo: Wells Fargo is supporting four virtual accelerator programs over the next 18 months, designed to support up to 500 participants for each program, with a focus on business health and credit-building practices. Applications will be announced this summer for the program, which will begin in early fall.
  • FedEx: The FedEx Entrepreneur Fund supports entrepreneurs in the United States by providing them with the necessary funding, resources, and networks to enhance the success of their businesses, including the Boost Camp coaching program.
  • Applications will be announced this fall for the program, which will begin in the winter.

More information and application access is available online.

Last year's Boost programs benefitted 100 small businesses, according to Hello Alice, which reported that the 2023 Antares REACH Cohort resulted in 60 percent of participants seeing an increase in their Business Health Score and 93 percent felt better equipped to confront challenges and capitalize on opportunities. In the end, 85 percent of participants feeling more optimistic about their business growth prospects.

"Hello Alice is proud to partner with high-level enterprise companies to empower small businesses and foster their success," Natalie Diamond, vice president of business development at Hello Alice, adds. "Together, we are creating unparalleled opportunities for entrepreneurs to achieve brand success, drive financial fitness, and thrive in today's competitive market. Our joint endeavors not only offer access to capital and resources but also provide tailored guidance and mentorship, arming small business owners with the insights and support necessary to navigate challenges and seize growth opportunities.”

Houston company's sustainable oil product reaches milestone production capacity 5 years early

overachieving

Houston-based biotech company Cemvita has achieved a key production goal five years ahead of schedule.

Thanks to technology advancements, Cemvita is now capable of generating 500 barrels per day of sustainable oil from carbon waste at its first commercial plant. As a result, Cemvita has quadrupled output at the Houston plant. The company had planned to reach this milestone in 2029.

Cemvita, founded in 2017, says this achievement paves the way for increased production capacity, improved operational efficiency, and an elevated advantage in the sustainable oil market.

“What’s so amazing about synthetic biology is that humans are just scratching the surface of what’s possible,” says Moji Karimi, co-founder and CEO of Cemvita. “Our focus on the first principles has allowed us to design and create new biotech more cheaply and faster than ever before.”

The production achievement follows Cemvita’s recent breakthrough in development of a solvent-free extraction bioprocess.

In 2023, United Airlines agreed to buy up to one billion gallons of sustainable aviation fuel from Cemvita’s first full-scale plant over the course of 20 years.

Cemvita’s investors include the UAV Sustainable Flight Fund, an investment arm of Chicago-based United; Oxy Low Carbon Ventures, an investment arm of Houston-based energy company Occidental Petroleum; and Japanese equipment and machinery manufacturer Mitsubishi Heavy Industries.

Tech disruptions sparked by Texas co.'s update highlight the fragility of globally connected technology

Airlines, banks, hospitals and other risk-averse organizations around the world chose cybersecurity company CrowdStrike to protect their computer systems from hackers and data breaches.

But all it took was one faulty CrowdStrike software update to cause global disruptions Friday that grounded flights, knocked banks and media outlets offline, and disrupted hospitals, retailers and other services.

“This is a function of the very homogenous technology that goes into the backbone of all of our IT infrastructure,” said Gregory Falco, an assistant professor of engineering at Cornell University. “What really causes this mess is that we rely on very few companies, and everybody uses the same folks, so everyone goes down at the same time.”

The trouble with the update issued by CrowdStrike and affecting computers running Microsoft's Windows operating system was not a hacking incident or cyberattack, according to CrowdStrike, which apologized and said a fix was on the way.

But it wasn't an easy fix. It required “boots on the ground” to remediate, said Gartner analyst Eric Grenier.

“The fix is working, it’s just a very manual process and there’s no magic key to unlock it,” Grenier said. “I think that is probably what companies are struggling with the most here.”

While not everyone is a client of CrowdStrike and its platform known as Falcon, it is one of the leading cybersecurity providers, particularly in transportation, healthcare, banking and other sectors that have a lot at stake in keeping their computer systems working.

“They’re usually risk-averse organizations that don’t want something that’s crazy innovative, but that can work and also cover their butts when something goes wrong. That’s what CrowdStrike is,” Falco said. “And they’re looking around at their colleagues in other sectors and saying, ‘Oh, you know, this company also uses that, so I’m gonna need them, too.’”

Worrying about the fragility of a globally connected technology ecosystem is nothing new. It's what drove fears in the 1990s of a technical glitch that could cause chaos at the turn of the millennium.

“This is basically what we were all worried about with Y2K, except it’s actually happened this time,” wrote Australian cybersecurity consultant Troy Hunt on the social platform X.

Across the world Friday, affected computers were showing the “blue screen of death” — a sign that something went wrong with Microsoft's Windows operating system.

But what's different now is “that these companies are even more entrenched,” Falco said. "We like to think that we have a lot of players available. But at the end of the day, the biggest companies use all the same stuff.”

Founded in 2011 and publicly traded since 2019, CrowdStrike describes itself in its annual report to financial regulators as having “reinvented cybersecurity for the cloud era and transformed the way cybersecurity is delivered and experienced by customers.” It emphasizes its use of artificial intelligence in helping to keep pace with adversaries. It reported having 29,000 subscribing customers at the start of the year.

The Austin, Texas-based firm is one of the more visible cybersecurity companies in the world and spends heavily on marketing, including Super Bowl ads. At cybersecurity conferences, it's known for large booths displaying massive action-figure statues representing different state-sponsored hacking groups that CrowdStrike technology promises to defend against.

CrowdStrike CEO George Kurtz is among the most highly compensated in the world, recording more than $230 million in total compensation in the last three years. Kurtz is also a driver for a CrowdStrike-sponsored car racing team.

After his initial statement about the problem was criticized for lack of contrition, Kurtz apologized in a later social media post Friday and on NBC's “Today Show.”

“We understand the gravity of the situation and are deeply sorry for the inconvenience and disruption,” he said on X.

Richard Stiennon, a cybersecurity industry analyst, said this was a historic mistake by CrowdStrike.

“This is easily the worst faux pas, technical faux pas or glitch of any security software provider ever,” said Stiennon, who has tracked the cybersecurity industry for 24 years.

While the problem is an easy technical fix, he said, it’s impact could be long-lasting for some organizations because of the hands-on work needed to fix each affected computer. “It’s really, really difficult to touch millions of machines. And people are on vacation right now, so, you know, the CEO will be coming back from his trip to the Bahamas in a couple of weeks and he won’t be able to use his computers.”

Stiennon said he did not think the outage revealed a bigger problem with the cybersecurity industry or CrowdStrike as a company.

“The markets are going to forgive them, the customers are going to forgive them, and this will blow over,” he said.

Forrester analyst Allie Mellen credited CrowdStrike for clearly telling customers what they need to do to fix the problem. But to restore trust, she said there will need to be a deeper look at what occurred and what changes can be made to prevent it from happening again.

“A lot of this is likely to come down to the testing and software development process and the work that they’ve put into testing these kinds of updates before deployment,” Mellen said. “But until we see the complete retrospective, we won’t know for sure what the failure was.”