Houston experts: Can AI bridge the gap between tech ambitions and market realities?

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By leveraging AI to optimize operations, deepen customer relationships, and redefine industry paradigms, late-state tech startups can not only survive but thrive in a dynamic market. Photo via Getty Images

Despite successful IPOs from the likes of Ibotta, Reddit and OneStream, 2024 did not provided the influx of capital-raising opportunities that many late-stage tech startups and venture capitalists (VCs) have been waiting for. Since highs last seen in 2021—when 90 tech companies went public—the IPO market has been effectively frozen, with just five tech IPOs between January and September 2024.

As a result, limited partners have not been able to replenish investments and redeploy capital. This shifting investment landscape has VCs and tech leaders feeling stuck in a holding pattern. Tech leaders are hesitant to enter the public markets because valuations are down 30 percent to 40 percent from 2021, which is also making late-stage fundraising more challenging. After all, longer IPO timelines mean fewer exit opportunities for VCs and reduced capital from institutional investors who are turning toward shorter-term investments with more liquid exit options.

Of course, there’s always an exception. And in the case of a slowed IPO market, a select slice of tech companies—AI-related companies—are far outperforming others. While not every tech startup has AI software or infrastructure as their core offering, most can benefit from using AI to revise their playbook and become more attractive to investors.

Unlocking Growth Potential with AI

While overall tech startup investment has slowed, the AI sector burns bright. This presents an opportunity for companies that strategically leverage AI, not just as a buzzword but as a tool for genuine growth and differentiation. Imagine a future where AI-powered insights unlock unprecedented efficiency, customer engagement and a paradigm shift in value creation. This isn’t just about weathering the current storm of reduced access to capital; it’s about emerging stronger, ready to lead the next wave of tech innovation.

Here's how to navigate the AI frontier and unlock its potential:

  1. Understand that data is the foundation of AI success. AI is powerful, but it’s not magic. It thrives on high-quality, interconnected data. Before diving into AI initiatives, companies must assess their data health. Is it structured in a way that AI can understand? Does it go beyond raw numbers to capture context and meaning—like customer sentiment alongside sales figures? Rethinking data infrastructure is often the crucial first step.
  1. Focus on amplifying strengths, not reinventing the wheel. The allure of AI can tempt companies into pursuing radical reinvention. However, a more effective strategy is to leverage AI to enhance existing strengths and address core customer needs. Why do customers choose your company? How can AI supercharge your value proposition? Consider Reddit’s strategic approach: They didn’t overhaul their platform before their 2024 IPO. Instead, they showcased the value of their vast online communities as fertile ground for AI development, leading to a remarkable first-day stock surge of 48 percent.

  2. Use AI as a customer-centric force multiplier. Companies with a deep understanding of their customer base are primed for AI success. By integrating AI into the very core of their product or service—the reason customers choose them—they can create a decisive competitive advantage based on delivering tangible customer value.

From Incremental Gains to Transformative Growth

This practical, customer-centric approach has the potential to help companies generate immediate growth while laying the foundation for future reinvention. By leveraging AI to optimize operations, deepen customer relationships, and redefine industry paradigms, late-state tech startups can not only survive but thrive in a dynamic market. The future belongs to those who embrace AI not as a destination but as a continuous journey of innovation and growth.

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Hong Ogle is the president of Bank of America Houston. Rodrigo Ortiz Gomez is a market executive in Bank of America’s Transformative Technology Banking Group as well as the national software banking lead for the Global Commercial Bank.

Eleven business leaders were selected for a new entrepreneurship-focused council for Rice University. Photo courtesy of Rice University

Rice University taps 11 Houston business leaders for new entrepreneurship council

leadership council

Rice University has named 11 successful business leaders with ties Houston to its inaugural council focused on entrepreneurship.

Frank Liu, a Rice alumnus and founder of the Rice University Liu Idea Lab for Innovation and Entrepreneurship, or Lilie, recruited the entrepreneurs to the council, and each has agreed to donate time and money to the university’s entrepreneurship programs, according to the university.

Members of the council, known as the Lilie’s Leadership Council or LLC, individuals have experience in a variety of fields, from the industrial and automotive sectors to local government and public radio.

"I owe much of my entrepreneurial success to opportunities I had while at Rice University,” Liu says in a statement. “I can't imagine the heights students today can achieve with the resources that now exist through Lilie. Over the last several years, as the No. 1 ranked Graduate Entrepreneurship program in the country, we have seen exponential growth in student engagement, and we have witnessed the life-changing technologies—tackling big problems in industries like energy and healthcare—bred within Lilie classes and programs. I am thankful for the commitment of Lilie's Leadership Council for propelling these founders from the classroom to the community and building the next generation of Houston's economy.”

LCC's inaugural cohort includes:

  • Sandy P. Aron: president of Hunington Properties who has served on the boards of the St. Francis Episcopal Day School of Houston, Congregation Beth Israel of Houston and Jones Partnership at Rice’s Jones Graduate School of Business
  • John Chao, vice president and managing director of Westlake Innovations and board member of Westlake Corp. The Rice alumnus previously served as COO of New York Public Radio and partner in the strategy and finance practice at McKinsey & Co.
  • Shoukat Dhanani, CEO of Sugar Land-based Dhanani Group Inc., a family owned and operated business conglomerate
  • Lorin Gu, founding partner of Recharge Capital and the founding chair of the Global Future Council at the Peterson Institute of International Economics
  • Earl Hesterberg, former CEO of Group 1 Automotive and former group vice president of North America marketing, sales and service for Ford Motor Co., who is currently chairing the capital campaign at Kids Meal Inc. in Houston.
  • Robert T. Ladd, chairman and chief executive of Stellus Capital Investment Corp. who is also chairman of the board of trustees of Rice and a member of the advisory council for the UT Health's McGovern Medical School
  • Frank Liu, co-founder and co-owner of Lovett Industrial and the founder and owner of Lovett Commercial, Lovett Homes and InTown Homes
  • Charlie Meyer, CEO of Lovett Industrial who formerly served as managing director at Hines Interests in Houston and director of construction and development for NewQuest Properties. He currently serves on the board of directors for Generation One and NAIOP Houston.
  • Hong Ogle, president of Bank of America Houston and Southeast/Southwest Division Executive for Bank of America Private Bank who serves on the board of Greater Houston Partnership and Central Houston Inc. and chairs the Bank of America Charitable Foundation in Houston.
  • Annise Parker, Houston’s 61st mayor who is currently CEO of the Victory Fund, a nonprofit devoted to electing pro-equality, pro-choice LGBTQ+ leaders to public office
  • Gary Stein, CEO of Triple-S Steel Holdings who serves on the American Institute of Steel Construction Board and the MD Anderson Cancer Center Board of Visitors

Over the summer, Lilie and Rice's Office of Innovation also announced its 2023 cohort of Innovation Fellows. The program, open to Rice faculty and doctoral and postdoctoral students, provides support to move innovation out of labs and into commercialization and up to $20,000 in funding.

Earlier this year, Lilie also launched a new startup accelerator program for students called the Summer Venture Studio, which ran from May through August.
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CPRIT grants $22M to bring top cancer researchers to Houston

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Several prominent cancer researchers are coming to the Houston area thanks to $22 million in grants recently awarded by the Cancer Prevention and Research Institute of Texas (CPRIT).

The biggest CPRIT recruitment grant — $6 million — went to genetics researcher Jean Gautier. Gautier, a professor of genetics and development at Columbia University’s Institute for Cancer Genetics, is joining the University of Texas MD Anderson Cancer Center to continue his research.

The website for Gautier’s lab at Columbia provides this explanation of his research:

“The main objective of our research is to better understand the molecular mechanisms responsible for the maintenance of genome stability. These controls are lost in cancer, which is characterized by genomic instability.”

Aside from his work as a professor, Gautier is co-leader of the Herbert Irving Comprehensive Cancer Center’s Cancer Genomics and Epigenomics Program at Columbia.

Other recipients of CPRIT recruitment grants include:

  • $2 million to recruit Xun Sun from the Scripps Research Institute to the University of Texas Medical Branch at Galveston.
  • $2 million to recruit Mingqi Han from the University of California, Los Angeles to MD Anderson.
  • $2 million to recruit Matthew Jones from Stanford University to MD Anderson.
  • $2 million to recruit Linna An from the University of Washington to Rice University.
  • $2 million to recruit Alissa Greenwald from the Weizmann Institute of Science to MD Anderson.
  • $2 million to recruit Niladri Sinha from Johns Hopkins University to the Baylor College of Medicine.
  • $2 million for Luigi Perelli to stay at MD Anderson so he can be put on a tenure track and set up a research lab.
  • $2 million for Benjamin Schrank to stay at MD Anderson so he can be put on a tenure track and set up a research lab.

Over $20.2 million in academic research grants were awarded to researchers at:

  • Baylor College of Medicine
  • Houston Methodist Research Institute
  • Rice University
  • Texas Southern University
  • University of Houston
  • University of Texas Health Science Center at Houston
  • University of Texas MD Anderson Cancer Center
  • University of Texas Medical Branch at Galveston

In addition, nearly $4.45 million in cancer prevention grants were awarded to one researcher at the University of Texas Medical Branch at Galveston and another at Texas Southern University.

Also, five Houston businesses benefited from CPRIT grants for product development research:

  • Allterum Therapeutics, $2,999,996
  • CTMC, $1,342,178
  • Instapath, $900,000
  • Prana Surgical, $900,000
  • InformAI, $465,188

“Texas is a national leader in the fight against cancer,” said Kristen Pauling Doyle, CPRIT’s CEO. “We can measure the return on investment from CPRIT grants … not only in the economic benefits flowing from increased financial activity and jobs in the state, but more importantly in the cancers avoided, detected early, and treated successfully. Thanks to the Legislature’s vision, this commitment is saving lives.”

Overall, CPRIT approved 61 grants totaling more than $93 million in this recent round of funding.

The Houston app that makes your commute smoother, greener + more rewarding

Return to Office

As Houstonians transition back to the office, navigating the city’s complex traffic landscape can feel overwhelming. Fortunately, Houston ConnectSmart, a free app designed specifically for the greater Houston area, is here to make that return easier on your schedule, your wallet, and even the planet.

Unlike national navigation apps, ConnectSmart is built with local commuters in mind. It offers features tailored to Houston’s unique traffic patterns, such as real-time alerts about road closures, construction zones, and flooding. The app also integrates live traffic camera feeds and notifies users about adverse weather conditions, helping them adjust their routes efficiently and avoid delays.

ConnectSmart goes beyond basic navigation. It’s the only local app that keeps commuters fully informed with proactive, real-time trip alerts. These alerts tell users exactly when to leave, flag incidents on their routes, and provide alternative paths to ensure the smoothest possible drive. Additionally, through the Tow and Go program, users stranded on eligible freeways can access no-cost towing to a safe location.

For those looking to save money, time, and the planet, ConnectSmart also shines as a carpooling tool.

With its Carpool feature, users can coordinate rides with colleagues or friends, making use of HOV lanes and cutting down on the number of single-occupancy vehicles on the road. Whether you're a driver or a rider, the app allows you to customize your commute by setting pick-up points, schedules, and drop-off locations. If plans change, Trip Protection ensures you won’t be stranded, offering compensation for a backup ride home in the event of a last-minute cancellation.

Carpooling with ConnectSmart doesn’t just ease stress — it also lightens your environmental footprint and reduces the wear and tear on your vehicle. The app even provides real-time parking information for garages, lots, and street spaces, making the end of your commute as hassle-free as the journey itself.

For employers, ConnectSmart offers an Employer Commute Suite that enables organizations to set up private carpool groups for staff. This feature fosters a more connected, sustainable workplace culture and helps businesses support employees in managing their daily commutes.

Whether you're driving solo or looking to share a ride, Houston ConnectSmart brings a smarter, more sustainable way to get around the Bayou City. Download the app for free from the App Store or Google Play, and start your commute with confidence, convenience, and community in mind.

For more information about setting up an Employer Commute Suite, contact ConnectSmart today and take the first step toward transforming how your organization gets to work.

California company to launch Walmart drone delivery in Houston

taking off

California-based Wing will soon touch down in Houston.

The drone delivery company has partnered with Walmart Supercenters in Houston, Atlanta, Charlotte, Orlando and Tampa. According to a news release, Wing’s drone delivery services will be available at 100 Walmart stores across the selected markets by this time next year.

Wing also plans to expand to additional Walmart stores in Dallas-Fort Worth, where Wing and Walmart already serve customers from 18 Walmart Supercenters. Wing reports that it has completed thousands of deliveries from DFW-area Walmarts with an average fulfillment time of under 19 minutes. Wing and Walmart launched their first location in the Dallas area in the fall of 2023.

"The popularity of drone delivery in DFW is a testament not just to its convenience, but to the way this technology quickly becomes a part of everyday life,” Wing CEO Adam Woodworth said in the news release. “Walmart has been a strong partner that shares our commitment to innovation and is equally eager to bring this new type of service to many more households.”

Customers in Houston and the other markets in the latest expansion can visit wing.com/walmart to be notified when drone delivery becomes available in their area.

The service works similarly to any other online shopping platform, and users can select the exact location for the drone to drop off their package. Items are packaged in a specialized box that a Wing drone retrieves from Walmart. The drones cruise up to 65 mph and drop off the package outside a shopper's home.

“This is real drone delivery at scale,” Woodworth said in the release. “People all around the Dallas-Fort Worth Metroplex have made drone delivery part of their normal shopping habits over the past year. Now we’re excited to share this ultra-fast delivery experience with millions more people across many more U.S. cities.”

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