How patents can provide additional revenue streams for Houston innovators

GUEST COLUMN

A patent is an asset — says this Texas-based intellectual property expert. Photo via Getty Images

Seeking patent protection can offer a substantial competitive advantage to startups looking to raise capital, especially during a venture capital downturn. Besides the protection patents can provide against intellectual property theft, they are also assets that can translate into expansion opportunities and additional revenue streams. These factors are important to institutions and individuals that invest in startups, as they may reduce downside risks to their investments and help outline a growth trajectory.

As Kathi Vidal, under secretary of commerce for intellectual property and director of the U.S. Patent and Trademark Office, said during a speech last year, “having a [patent] pending application helps secure funding, and it keeps potential competitors out of your space.”

The experience of Austin-based VoChill, a startup that created a new line of personal wine chillers, offers a case study of how filing for patent protection as early as possible can set up any startup for success, not only when seeking to raise capital, but also when working to expand its commercial relationships and distribution channels.

Filing for patents quickly gave VoChill’s founders a competitive advantage when approaching potential investors, as it demonstrated the management team’s high level of preparedness and business acumen. For investors who eventually committed capital to the startup, the filings signaled a safer bet on investing in VoChill.

There is plenty of evidence indicating that patents help attract capital and generate growth opportunities. A study conducted by professors from Harvard Business School and New York University’s Stern School of Business found that patent protection increased startups’ odds of receiving venture capital funding by 59 percent.

PitchBook data shows that startups seeking patents raise more capital than their non-patent-seeking peers. About 58 percent of venture capital went to startups with patents or with patent applications from 2011 to 2020, the research firm notes.

Patents can also help drive a startup’s expansion and grow sales. According to the National Bureau of Economic Research, or NBER, the approval of a startup’s first patent application increases its employee growth by 36 percent over the following five years. After five years, a new company with a patent increases its sales by a cumulative 80 percent more than companies that do not have a patent.

Patents can also increase a startup’s chances of obtaining distribution deals or, in the case of consumer products, partnerships with retailers. In VoChill’s experience, patent protection is a recurring theme in conversations not only with investors but also distributors and retailers.

Patents offer startups the possibility to pursue a licensing model as well. Licensing or selling the rights to a patent so that others may produce products or processes based on that patent can bring in ongoing revenue streams.

Down the line, having patent protection can lead to better exit opportunities, be it by going public or via a private divestiture.

According to the NBER, having patents more than doubles the probability that a startup is eventually listed on a stock exchange.

PitchBook data, meanwhile, shows that patent-seeking companies go public at a rate more than five times higher than non-patent-seeking companies (23.2 percent versus 4 percent).

In the case of exits via a sale of the startup, the median exit value for patent-holding companies is 154.9 percent higher than it is for companies without patents per year on average, according to PitchBook.

While the business case for seeking patent protection is clear, startups should keep a few considerations in mind when seeking to do so. Understanding time bars is crucial; for example, the United States generally allows only one year to file a patent application after an invention is publicly written about, shown, used, or otherwise disclosed, and overseas often no one-year “grace period exists.”

Still, other important predicates are finding out whether the innovation is truly new, identifying the most crucial components of a product or system, and thinking about what aspects competitors are likely to discover and copy.

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Chris Palermo is partner at Baker Botts where he specializes in intellectual property development. Lisa Pawlik is CEO of VoChill, a company that creates individual wine glass chillers.

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Houston is primed to become an energy tech hub amid ongoing energy transition.

Houston has what it takes to be a leading energy tech hub, says expert

GUEST COLUMN

As the energy capital of the world, Houston has been a long-time leader in the energy industry, particularly oil and gas. With cutting-edge research and technological breakthroughs, unique talent of energy veterans and engineering know-how, the city is swiftly developing into a booming energy technology hub.

Houston’s R&D, talent pool, energy infrastructure, and favorable business environment is fostering the growth of technology-driven energy initiatives. These factors differentiate Houston's energy tech ecosystem from other tech hubs in the U.S., in similar ways to how Silicon Valley has been known for technology and software and Boston and New York for biotech and fintech ecosystems, respectively.

Primarily, Houston's proximity to major energy players has played a crucial role in its evolution as an energy technology hub. Around 34 percent of all publicly traded oil and gas companies in the U.S. are headquartered in the city. Even the energy companies that are headquartered outside of Houston (e.g., Exelon, Duke Energy, and NextEra Energy) have established their energy transition headquarters and plants/infrastructure here. This proximity enables energy technology startups easy access to market, expertise, resources, and funding, fostering a vibrant ecosystem that supports their growth.

Moreover, with an expanding network of academic and commercial R&D activity, the city has become a rising hub of technological development. It currently houses more than 21 business research centers focusing on various aspects related to energy transition through design, prototype, and applied intelligence studios.

For instance, the Greater Houston Partnership, a key organization in promoting Houston’s economic growth, has been actively involved in positioning the city as a leader in the global energy transition space. Some of the notable green energy startups leading Houston’s energy transition are Sunnova, Solugen, Fervo Energy, Syzygy Plasmonics, Ionada, and Energy Transition Ventures.

The emergence of startup development organizations throughout the city, including workplaces, incubators, and accelerators, in recent years has fostered collaboration among founders, investors, and talent, thereby accelerating the rate of business formation and growth. Accelerators and incubators such as Halliburton Labs, Greentown Labs, The Ion District, and Rice Alliance Clean Energy Accelerator are key supporters of innovation and entrepreneurship in Houston’s energy technology landscape.

In addition, government funding is catalyzing Houston’s growth in energy tech. Most prominently, the 2022 Inflation Reduction Act (IRA) is likely to stimulate greater investment in solar and wind energy, charging infrastructure, and electric vehicles in Houston. It will support the city’s R&D institutions and technology developers in pioneering energy transition for carbon capture, utilization and storage (CCS/CCUS), hydrogen, and renewable fuels, resulting in a 13-fold increase in capital expenditure for infrastructure between 2024 and 2035.

The Bipartisan Infrastructure Law and Advanced Research Projects Agency-Energy (ARPA-E) also focus on promoting and funding research and development of advanced energy technologies, many of which are coming out of Houston.

Further, Houston has a strong talent pool with a workforce of three million individuals and the fourth largest concentration of engineers in the US. In 2022, the growth rate of tech employment in the region was 3.5 percent while the national growth rate was 3.2 percent.

The energy industry, research institutions, and government are coming together in Houston to propel it to become a leader in energy technology. However, the city still has a ways to go: Houston needs to build more in non-traditional energy sectors (e.g. wind, solar, etc.), attract more entrepreneurs to start companies here, and get more investors to invest here. Having successful energy tech exits and reinvestment in new startups here would help.

Houston has tremendous potential to lead energy technology, and with the rapidly growing focus of research, businesses, and government policies on energy transition. The confluence of energy tech players coming together in Houston is driving its evolution as an energy tech hub, making it an exciting place for new technologies and businesses to develop and grow, and reinvest in Houston.

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Michael Torosian is a partner in the corporate practice in the San Francisco office of Baker Botts. He is outside general counsel to emerging companies and their investors and advisors at all stages.

Only time will tell, but this expert believes the Inflation Reduction Act of 2022 will be a boon to energy tech startups in Texas. Photo via Getty Images

Expert: How recent inflation legislation could affect Texas energy startups, investors

guest column

The recently passed Inflation Reduction Act of 2022 includes $369 billion in investment in climate and energy policies, the largest investment in United States history to address climate change. The IRA could be a boon to Texas startups involved in clean energy, clean manufacturing and clean innovation.

Government policy and funding are critical to supporting the research and development for new technologies, which solve complex challenges and require significant upfront and long-term commitments of investment. Early government investment gives private investors more incentive to invest in the later commercialization and scaling of these businesses, and has a multiplier effect in accelerating the development, commercialization, and deployment of new technologies in the time needed in the market to capitalize on energy business opportunities and achieve climate goals.

The IRA’s biggest impact on climate tech businesses is through tax credits and direct investment. The IRA’s expanded tax credits will make it easier to fund and build projects, help reduce cost of construction, and help make renewable energy projects more competitive, encourage more funding and building of new projects, and bring new jobs and economic development. The IRA’s direct investments allow for companies developing new technologies to obtain grants and loans that help them develop their solutions while not diluting their investors, helping them build more value in their businesses and making them more attractive for later investment.

Texas is well positioned to be an energy transition and clean energy leader and beneficiary of the IRA. The state is home to major energy companies, and their technical expertise, know-how and experience in energy, and energy technology is unparalleled. There is huge momentum in innovation in energy transition and energy tech, and there is great research coming out of university and corporate R&D programs. For example, Texas is home to more than 20 energy-focused research and development centers and dozens of energy tech companies. And Texas is already the largest producer of wind power in the U.S.

Texas startups across industries were already attracting massive investment before the IRA became law. According to Pitchbook and the National Venture Capital Association, Texas startups overall raised a record-high $10.55 billion in venture capital in 2021, an increase of 123 percent from 2020’s $4.73 billion.

Early-stage investment in climate tech hit a record $53.7 billion in 2021. While the totals this year aren’t likely to reach 2021 levels, climate tech investors have said they aren’t seeing the size of pullbacks and slowdowns in other sectors. Despite the VC slowdown this year, clean tech and climate tech have remained attractive investments. This includes Texas. For example, the Rice Alliance Clean Energy Accelerator reported in August that 17 of its early- to mid-stage startups have already raised more than $54.5 million this year. Also in August, geothermal startup Fervo Energy, based in Houston, raised $138 million in new VC funding. Earlier in February, Houston’s Zeta Energy, which has developed a battery for the electric vehicle and energy storage markets, closed a $23 million financing round. We expect continued funding in this space.

Large corporates in Texas are building external innovation programs such as venture arms and accelerators. For instance, Houston’s Halliburton Company developed Halliburton Labs, an accelerator that has backed a number of startups in the carbon capture, clean hydrogen, and solar energy tech developers. Big energy companies are also joining Texas-based accelerator hubs such as The Ion in Houston. The Ion’s founding partners include Aramco Americas, Chevron Technology Ventures, and ExxonMobil.

It will require long term efforts to achieve results in climate tech and clean energy projects, but as the benefits of the IRA materialize, more startups in Texas will have the ability to obtain more long-term financial support and resources from all of the sources – government, universities, and research organizations, venture investors and corporations — that are required to develop solutions to the energy and climate challenges and capitalize on the business opportunities of today and tomorrow. Startups are creating transformative innovations that are key to the United States being a leader in clean energy and fighting climate change. And there’s no better place to do that than in Texas.

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Michael Torosian is a partner in the corporate practice in the San Francisco office of Baker Botts. He is outside general counsel to emerging companies and their investors and advisors at all stages.

In the latest round up of Houston innovation news you may have missed, a Houston startup wins an international COVID-19 innovation competition, The Ion has a new founding partner, and more. Photo courtesy of The Ion

The Ion Houston names new partner, growing startup names new CTO, and more local innovation news

short stories

It's been a busy week with virtual SXSW, spring break, and more. For this reason, some of Houston's innovation news may have fallen through some of the cracks.

In this roundup of short stories within Houston innovation, a Houston startup grows its C-suite, a local accelerator application deadline looms, the latest news from The Ion, and more.

Baker Botts doubles down on The Ion

The Ion has a new founding partner. Courtesy of Rice University

Houston's rising innovation hub, The Ion, has named Houston-based Baker Botts as the latest founding partner, alongside previously announced partners Microsoft and Chevron Technology Ventures.

"Today's announcement not only solidifies Baker Botts' investment in The Ion and the programs we are activating, but is a commitment to growing Houston's innovation ecosystem," says Jan E. Odegard, interim executive director of The Ion, in a news release. "Baker Botts' work with The Ion has already helped countless entrepreneurs get their work off the ground, and we are excited for their support as we continue to accelerate innovation and connect communities to build sustainable and inclusive economic growth in Houston."

Baker Botts has agreed to the following partnership opportunities with the Ion:

  • Provide in-kind services to this year's Houston Startup Showcase Winner
  • Offer on-site presence to support The Ion's various community members and provide substantive programming to startups
  • Host legal programming and workshops for The Ion's Accelerator Hub members
  • Expand gateway events including The Ion's Family Tech Night and Plaza Tec series

"Given our market-leading strengths in Houston, this is an exciting opportunity for the firm," says John Martin, managing partner of Baker Botts, in the release. "Our participation with The Ion brings together lawyers across our corporate venture capital, energy tech, IP and other practices to work closely with a range of cutting-edge companies at the heart of the Texas startup ecosystem."

GoExpedi recruits new CTO from big tech

GoExpedi has a new CTO. Photo courtesy of GoExpedi

Houston-based GoExpedi — a B2B e-commerce, supply chain and analytics company — recently hired global engineering executive Yang Tang as CTO. Tang has more than 20 years of experience leading technology and product teams at both startups and corporations, including Anheuser-Busch InBev (AB InBev) and at Walmart eCommerce's operations.

"After an extensive search to find one of the most accomplished product leaders of our time, we are excited to introduce Tang as the new head of our technical operations and state-of-the-art supply chain model," says Tim Neal, GoExpedi's CEO, in a news release. "His history of excellence in the e-commerce space is beyond reproach. He brings unparalleled expertise having managed global projects with an emphasis on e-commerce development and digital engineering for some of the world's most reputable brands. With his leadership, vision, and technical expertise, we are primed to launch into the next stage of our company's development as we expand our offering of new digital and consumer-friendly solutions."

In his position, Tang will oversee the design and execution of GoExpedi's technology, product, and data roadmaps.

"I am pleased to help the manufacturing and energy industries reimagine industrial supply chain with the brightest minds in technology, MRO procurement and oil and gas," says Tang in the release. "I was fortunate to contribute to the e-commerce renaissance that exploded in the consumer space over the last few years and am eager to apply what I have learned to the industrial sector. I look forward to collaborating with the team at GoExpedi to drive continuous improvements in all aspects of the industrial supply chain."

Last fall, GoExpedi closed a $25 million series C round with plans to hire.

Houston startup named a winner at $6M COVID-testing competition

Houston-based Steradian Technologies, Inc. was named among the winners ofXPRIZERapid Covid Testing competition, an international innovation challenge that called for solutions for high-quality, affordable COVID-19 testing.

"We are extremely excited to create high-tech diagnostic solutions that are rapid, inexpensive, and accurate to create healthcare accessibility and equity for everyone, irrespective of any financial, geopolitical, or socioeconomic barriers. COVID-19 detection is our near-term goal, and we're looking forward to the possibilities of ubiquitous testing for all," says Asma Mirza, CEO and co-founder of Steradian Technologies, in a news release.

Steradian Technologies is "developing a product that created human super-sight via the startup's proprietary optics," according to the release, and pivoted its technology to create the RUMI diagnostic system, which uses Steradian's technology to look at photonics to detect disease biomarkers within a user's breath within 30-seconds.

"The COVID-19 pandemic has shown us that we need to be more prepared as a nation and as a global community for future viral threats. The rapid development of vaccines has been achieved through incorporating new technologies, and diagnostic tech needs to do the same. Our goal has been just that. We wanted to create a diagnostic tool that could be fast, accurate, and easy to use and could be widely deployed," says John Marino, co-founder and chief of product development, in the release. "We know that COVID-19 won't be the last threat of this kind and are developing a solution that can easily adapt to any new pathogen. We are extremely grateful to have been recognized by XPRIZE for our effort."

Houston entrepreneur to pitch with Techstars

Amanda Ducach, founder and CEO of SocialMama

Amanda Ducach, founder of SocialMama, is expecting to pitch at Techstars Austin. Photo courtesy of SocialMama

Houston-based consumer tech company, SocialMama, which connects mothers virtually via an app, was accepted into the Techstars Austin program for 2021. Founder Amanda Ducach will be presenting at the recently announced Techstars Austin virtual Demo Day on March 24.

SocialMama's Techstar Austin cohort colleagues include: BallBox, Inc (Chicago, IL), Enlightapp (Fargo, ND), Fêtefully (Dallas, TX), hampr (Lafayette, LA), Kousso (Charlotte, NC), Livo (Coral Gables, FL), Mowies (Medellin, Colombia), Nutritional Freedom (Austin, TX), and Talk Howdy (Austin, TX).

Registration is free and open online.

MassChallenge Houston's applications open for two more weeks

Photo courtesy of MassChallenge

MassChallenge Texas has opened applications for it's next cohort in Houston. The equity-free, no-cost program is seeking startups across industries that have raised less than $1 million in funding and less than $2 million in revenue to apply. The program provides startups mentorship, corporate partnerships, curriculum, and more.

The deadline to apply is March 31 by midnight. If interested, entrepreneurs can apply for free with the code "MC21INNOMAP." Click here to learn more and apply.

Register for some of these informative online events happening throughout the month of March. Photo via Getty Images

10+ can't-miss Houston business and innovation events online in March ​

where to be online

March marks a full year of attending online events — from Zoom panels to virtual conferences. But, the shows must go on with another month full of online innovation and startup events that Houston innovators need to know about.

Here's a roundup of virtual events not to miss this month — from workshops and webinars to summits and pitch parties. Note: This post might be updated to add more events.

March 1-5 — CERAWeek by IHSMarkit

In lieu of the week-long, in-person mega-conference that is the annual CERAWeek by IHSMarkit, the 2021 iteration will be completely virtual. Need some ideas of what panels and talks not to miss? Click here for five recommendations of what to attend.

The conference takes place Monday, March 1, to Friday, March 5. Click here to register.

March 2 — Houston Innovates: Digital transformation and Innovation in Oil & Gas

Digital forces are changing the skills an executive needs to manage organizations. In a world that's become increasingly digital, energy companies can sometimes find it hard to adapt. Join General Assembly Houston for a panel discussion with:

  • Sameer Khan, digital leader (MarTech and Transformation) at ExxonMobil
  • Sarah Vega, vice president of IT & Change at SmartestEnergy
  • Ricky Burns, business transformation team lead at BP
  • Jose Beceiro, senior director of Global Energy 2.0 at the Greater Houston Partnership

The event is on Tuesday, March 2, at 9:30 am. It's free and can be accessed online. Click here to register.

March 2 — Ladies Who LaUNCH #13: The Female Superpower

In 2020, 40 percent of US businesses were owned by women and generated $1.8 trillion. With these numbers in mind, it comes as no surprise that the presence of women in entrepreneurship and investing is growing.

Why do women-led companies financially outperform their male counterparts? And what are the "female superpowers" behind our ability to excel in these fields? Join featured speaker, Megan Bent, as she explores the research, data, and her own experience in the importance of female leadership in entrepreneurship and investing, and how to leverage your differences to your advantage.

The event is on Tuesday, March 2, at noon. It's free and can be accessed online. Click here to register.

March 3 — What's Next in Crypto?

Baker Botts and TeamBlockchain are hosting a webinar discussing trends in cryptocurrency. Key speakers from the sector include:

  • Ali Dhanani, partner at Baker Botts
  • Sarah Beaumont, associate at Baker Botts
  • Jonny Fry, co-founder & CEO at TeamBlockchain Ltd
  • Spencer Randall, principal & co-founder at CryptoEQ
  • Ankush Jain, chief investment officer at Aaro Capital

The event is on Wednesday, March 3, at 11 am. It's free and can be accessed online. Click here to register.

March 9 — Investing in Medical Devices

Join the Texas HALO Fund for a conversation with three of the fund's portfolio companies: Adient Medical, Allotrope Medical, and PathEx.

The event is on Tuesday, March 9, at noon. It's free and can be accessed online. Click here to register.

March 10 — Open Project Night: Achieving Gender Equality in Houston and Beyond

Impact Hub Houston is bringing you a monthly opportunity to come together to work on solutions for some of Houston's most pressing issues. Our city is full of changemakers across all ages, cultures, skillsets, and industries. This is your chance to conned and collaborate for the greater good.

The event is on Wednesday, March 10, at 5 pm. It's free and can be accessed online. Click here to register.

March 10 — Conversations with Latinx Entrepreneurs in Houston

Latinx entrepreneurs are starting small businesses faster than the rest of the startup population and becoming a bigger part of the total U.S. market every day. Join General Assembly for a panel of Houston Latinx leaders as they share stories about their heritage, failures and success.

The event is on Wednesday, March 10, at 6 pm. It's free and can be accessed online. Click here to register.

March 11 — How to Sell Without Being "Salesy"

In celebration of Women's History Month, Catherine Brown and Leela Madan, both serial entrepreneurs and founders of Houston-based Founder's Compass offer their advice on selling your business.

The event is on Thursday, March 11, at 10 am. It's $30 and can be accessed online. Click here to register.

March 11 — Inspire Seminar with Leslie Wise

Join Enventure for a talk and Q&A with the president and principal consultant of Evidence Matters, Leslie Wise. Inspire is one part of Lilie's three-program career exploration series. The goal of Inspire is to share an individual's career journey so that trainees can see one of the many paths that can be taken, learn about the reality of working in these fields, and gain valuable advice from key leaders to better prepare themselves for their own career journey.

The event is on Thursday, March 11, at noon. It's free and can be accessed online. Click here to register.

March 16-20 — SXSW

Another conference is pivoting to virtual attendance this year. SXSW has flipped the switch to being online only for 2021. SXSW's seven conference themes are A New Urgency; Challenging Tech's Path Forward; Cultural Resilience in the Arts; The Rebirth of Business; Transforming the Entertainment Landscape; Connection in Disconnection; and An Uncharted Future. Stay tuned to InnovationMap for a Houston innovator's guide to the conference.

The conference takes place Tuesday, March 16, to Saturday, March 20. Click here to register.

March 17 — Top Legal Considerations for Startups

Join Rice University's Liu Idea Lab for Innovation and Entrepreneurship for a session with corporate and securities lawyer Aaron Barker, who specializes in advising companies from formation to exit, will give you the inside knowledge to help you launch your venture, and possibly save you from making a rookie mistake.

The event is on Wednesday, March 17, at 4 pm. It's free and can be accessed online. Click here to register.

March 23 — Igniting Leadership: Elevating Professionalism

Join Ignite's conversation between Board Member Kelli Newmanand Baylor College of Medicine's Dr. Ellen Friedman focus on insights the Director of BCM's Center for Professionalism has to share. In addition to the importance of emotional intelligence, practical methods for addressing problems before they escalate and professionalism for "women in a man's field," Dr. Friedman will answer your questions with practical advice for elevating your own professionalism.

The event is on Tuesday, March 23, at 6 pm. It's free and can be accessed online. Click here to register.

March 24 — Houston Startup Showcase

The Houston Startup Showcase is a flagship event from The Ion, formerly known as Demo Day. This event will allow for developing companies to receive feedback from subject matter experts and showcase their successes thus far. The event is a year-long series of monthly pitch competitions, and results in a final winner to close the series in November. Companies are encouraged to apply online to pitch.

The event is on Wednesday, March 24, at 6 pm. It's free and can be accessed online. Click here to register.

A panel for women by women highlighted key things to keep in mind when starting a company. Getty Images

4 corporate housekeeping tips for female founders from Houston experts

women to women

Laying the proper foundation of a startup might be one of the most important parts of starting a company — right behind the innovative solution your startup aims to provide.

At a female-founder focused panel at Baker Botts cohosted by The Artemis Fund earlier this month, a group of experts gave their advice from managing contracts and hiring to salary and investment.

The panel was moderated by Grace Rodriguez, CEO and executive director of Impact Hub Houston, and featured an investor, a founder, and a legal representative — Leslie Goldman, general partner and co-founder of The Artemis Fund; Emma Fauss, CEO of Medical Informatics Corp.; and Katie Belleville, associate at Baker Botts L.L.P, respectively.

If you missed the event, here are four pieces of advice from the panelists.

Be aware of an investor's founder red flags

When asked about what she looks for in a potential investment opportunity, Goldman, who's fund invests in female-led startups, looks at a myriad of things, but the big one is the founder herself.

"Ninety percent of it is about the founder," Goldman says on the panel. "The founder is key."

She goes on to say that her founder red flags include lack of transparency, not knowing her numbers, and not having the proper legal paperwork in order.

Representing the legal side, Belleville echoed the importance of getting the proper legal paperwork together from day one.

"It is important to get you organizational documents in order in the beginning to avoid a problem later down the line," Belleville says. "Going to a lawyer to help you set up your company and what documents you need."

She adds that startup founders can expect to pay lawyers by the hour like most legal exchanges, but a lot of legal professionals will offer a preliminary meeting to understand each other for free.

Be smart about who's giving you money

For Fauss, who closed an $11.9 million round in January, and most entrepreneurs, finding investors is a huge challenge and commitment.

"Raising money is probably my least favorite activity. It's a brutal process," Fauss tells the audience. "You are getting married to someone for 20-plus years. And it's easier to get a divorce from your husband than it is to get a divorce from your board members."

She explains how keeping that in mind really led her to be picky about her investors and find ones that were right for her and her company.

When it comes to hiring and salary — get it on paper

Every founder will eventually get to a point when they'll need to hire as their company grows. Fauss says she was fortunate to find her early team members organically — through networking opportunities. When it comes to listing jobs online, she recommends being specific to what expertise you're looking for.

In tandem with hiring, founders must decide how they plan to compensate their employees and whether they offer equity — something Goldman says impresses her.

"If a founder convinced other people to join their team based on a promise of getting a part of the company, it means that they are a charismatic entrepreneur and it means that the people who join them believe strongly and passionately about the company," Goldman says.

Belleville adds that founders should be aware of employment agreements, which she doesn't think is necessary in every situation, and confidentiality agreements, which she highly recommends when it comes to protecting the company's intellectual property.

"If you make it part of the [on boarding] process, then everyone has one and you've got that security at the point when they're leaving," Belleville says.

At one point in the panel, Fauss brings up a salary issue she's passionate about.

"Don't forget to budget in your own salary," Fauss says. "Your sweat equity, your worth does have a cost."

She adds that even if you're not getting paid a full salary when you're starting out, it's important to keep in the budget especially when factoring VC money.

Keep your paperwork in order

This might be a no-brainer, but the panelists all echoed the need for properly organized paperwork, especially when it comes to contracts and letters of intent with clients, for general bookkeeping reasons but also for review of potential investors.

"I'm going to want to see that there's actually a binding contract there," Goldman says, adding that the legality and terms of those types of agreements are crucial for her role as an investor.

Belleville says that one way for founders to keep track is by making a detailed spreadsheet with all that's in the contracts — terms, renewal, and termination details, for example.

The panelists — and even some founders in the audience — recommended digital filing systems like Carta, or its free version called captable.io. DocSend was also recommended for sharing your pitch deck because it offers stats so you can see how much time was spent on each page. At the very least, founders should keep files backed up online in Google Docs or DropBox.

When it comes to issuing contacts, Fauss recommends working with a legal team to streamline that process. Ninety percent of contracts will stay the same between clients, she says, so put together a playbook to know which variables to use and when.

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Chevron enters the lithium market with major Texas land acquisition

to market

Chevron U.S.A., a subsidiary of Houston-based energy company Chevron, has taken its first big step toward establishing a commercial-scale lithium business.

Chevron acquired leaseholds totaling about 125,000 acres in Northeast Texas and southwest Arkansas from TerraVolta Resources and East Texas Natural Resources. The acreage contains a high amount of lithium, which Chevron plans to extract from brines produced from the subsurface.

Lithium-ion batteries are used in an array of technologies, such as smartwatches, e-bikes, pacemakers, and batteries for electric vehicles, according to Chevron. The International Energy Agency estimates lithium demand could grow more than 400 percent by 2040.

“This acquisition represents a strategic investment to support energy manufacturing and expand U.S.-based critical mineral supplies,” Jeff Gustavson, president of Chevron New Energies, said in a news release. “Establishing domestic and resilient lithium supply chains is essential not only to maintaining U.S. energy leadership but also to meeting the growing demand from customers.”

Rania Yacoub, corporate business development manager at Chevron New Energies, said that amid heightening demand, lithium is “one of the world’s most sought-after natural resources.”

“Chevron is looking to help meet that demand and drive U.S. energy competitiveness by sourcing lithium domestically,” Yacoub said.

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This article originally appeared on EnergyCapital.

International Space Station welcomes astronauts from successful Axiom Mission 4

Out In Space

The first astronauts in more than 40 years from India, Poland and Hungary arrived at the International Space Station on Thursday, ferried there by SpaceX on a private flight.

The crew of four will spend two weeks at the orbiting lab, performing dozens of experiments. They launched Wednesday from NASA’s Kennedy Space Center.

America’s most experienced astronaut, Peggy Whitson, is the commander of the visiting crew. She works for Axiom Space, the Houston company that arranged the chartered flight.

Besides Whitson, the crew includes India’s Shubhanshu Shukla, a pilot in the Indian Air Force; Hungary’s Tibor Kapu, a mechanical engineer; and Poland’s Slawosz Uznanski-Wisniewski, a radiation expert and one of the European Space Agency’s project astronauts on temporary flight duty.

No one has ever visited the International Space Station from those countries before. The time anyone rocketed into orbit from those countries was in the late 1970s and 1980s, traveling with the Soviets.

“It’s an honor to have you join our outpost of international cooperation and exploration," NASA's Mission Control radioed from Houston minutes after the linkup high above the North Atlantic.

The new arrivals shared hugs and handshakes with the space station's seven full-time residents, celebrating with drink pouches sipped through straws. Six nations were represented: four from the U.S., three from Russia and one each from Japan, India, Poland and Hungary.

"It’s so great to be here finally. It was a long quarantine," Whitson said, referring to the crew's extra-long isolation before liftoff to stay healthy.

They went into quarantine on May 25, stuck in it as their launch kept getting delayed. The latest postponement was for space station leak monitoring, NASA wanted to make sure everything was safe following repairs to a longtime leak on the Russian side of the outpost.

It's the fourth Axiom-sponsored flight to the space station since 2022. The company is one of several that are developing their own space stations due to launch in the coming years. NASA plans to abandon the International Space Station in 2030 after more than three decades of operation, and is encouraging private ventures to replace it.

Screen-free hiking app developed in Houston earns 'Best of the Best' award

Peak Prize

An AI-powered, screen-free hiking system developed by Varshini Chouthri, a recent industrial design graduate from the University of Houston, has received Red Dot’s “Best of the Best” award, which recognizes the top innovative designs around the world.

Known as NOMAD, the system aims to help users stay in the moment while still utilizing technology. It will go on to compete for the Red Dot Luminary Award, the highest recognition given at the international event.

“NOMAD was truly a passion project, inspired by years of hiking growing up, where the outdoors became a place of peace, challenge, and reflection,” Chouthri said in a news release.

“I wanted to design something supporting those kinds of experiences by helping hikers feel more grounded and confident while staying present in nature. It was a way to give back to the moments that made me fall in love with the outdoors in the first place.”

The app “reimagines” outdoor exploration by removing the dependence on screens by using adaptive AI, contextual sensing, and an optional, wearable companion device. It employs a circular learning model that enables hikers to receive real-time guidance, safety alerts, personalized trip planning, hands-free navigation and more through a natural interface, according to UH.

NOMAD was developed at the Hines College of Architecture and Design’s PXD LAB. In 2023, Lunet, developed by David Edquilang at Hines College, received the “Best of the Best” recognition and went on to win the Red Dot Luminary Award.

The PXD LAB offers a platform to expand concepts into system-level designs that address real-world challenges, according to UH.

“Varshini’s work on NOMAD exemplifies the future-focused, systems-driven thinking we promote in the Advanced UX Design curriculum,” Min Kang, director of PXD LAB, added in the release. “NOMAD goes beyond being just a product; it reimagines how technology can enhance outdoor exploration without disrupting the experience.”

In addition to the Red Dot honors, NOMAD has already earned distinction from the FIT Sport Design Awards and was a finalist for the International Design Excellence Awards (IDEA) presented by the Industrial Designers Society of America.
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