Report: Houston saw a spike in Black entrepreneur-founded companies amid pandemic

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New data shows that Houston communities saw an uptick in startup founding from Black entrepreneurs. Photo courtesy

It might seem that the formation of startups would have stagnated amid the COVID-19 pandemic. Yet that was anything but the case for Houston startups founded by Black entrepreneurs.

A recent study by economists at Rice University, Boston University, Columbia University, and the Massachusetts Institute of Technology (MIT) found that from 2019 to 2020, the startup rate rose 32 percent in four largely Black areas of Houston: Kashmere Gardens, Missouri City, South Acres, and Sunnyside. By comparison, the statewide startup rate during that period was only 10 percent.

There's no denying that Black-owned businesses already have a significant impact on the economy of the Houston metro area.

A report released in 2019 by the Greater Houston Black Chamber estimated the group's more than 1,500 members collectively generate anywhere from $1 billion to $2 billion in annual revenue. A little over one-fifth of the population in the Houston area is Black. That population is projected to grow 34 percent between 2010 and 2030.

In 2015, personal finance website NerdWallet ranked Houston the 15th best metro in the country and the best metro in Texas for Black-owned businesses.

The Rice economist who contributed to the study is Yupeng Liu, a doctoral student at the university's Jones Graduate School of Business. While he and his fellow researchers note that their study doesn't confirm a cause-and-effect relationship, "it is useful to note that the federal relief payments, and their uniform distribution (independent of eligibility criteria), may have played a role in enabling new firm formation in Black neighborhoods which might otherwise have been constrained by discrimination."

Furthermore, some experts speculate that last year's rise of the racial justice movement may have helped lift up Black entrepreneurs, and that many Black Americans set up new businesses out of necessity in 2020 after being laid off or seeing their work income or hours reduced.

The study, published by the National Bureau of Economic Research, compared startup data for 2020 in Texas and seven other states — Florida, Georgia, Kentucky, New York, Tennessee, Vermont, and Washington — with startup data for 2019. In all, the number of business formations spiked by 21 percent, with the growth of Black-owned startups being especially pronounced. However, an estimated 40 percent of Black-owned businesses closed during the pandemic, compared with 20 percent across all racial and ethnic groups.

The findings of the research bureau's study mirror a subsequent report from the Ewing Kauffman Foundation, a nonprofit that promotes entrepreneurship. The report found more Black-owned businesses were launched last year compared with the total population than at any time in the past 25 years, according to the Los Angeles Times. On average, 380 out of every 100,000 Black adults became new entrepreneurs during the 2020 pandemic, up from 240 in each of the previous two years, the report shows.

In reporting on the National Bureau of Economic Research study, CBS News and The New York Times spotlighted two new Black-owned startups in Houston.

Last July, Destiny McCoy and Oyinda Adebo of Houston launched a mental health company called Wellness for Culture. The company already has been so successful that McCoy says it now supports her financially, according to CBS News.

"All I knew is that I wanted to help Black women," McCoy told CBS News, "and all I knew was I didn't want to do therapy in the typical way."

Another Black entrepreneur from Houston, Pilar Donnelly, enjoyed similar success in 2020. Last summer, Donnelly began making playhouses for her two 6-year-old boys, the Times reported.

"She had been laid off from her job in sports marketing and wanted to give them something for their birthday. With no background in woodworking, she started off with a design she liked online and watched YouTube to learn woodworking techniques," according to the Times. "After making a number of playhouses for her friends and family, she realized it could be a business. That business, which she registered in June, is called Wish You Wood Custom Creations."

Woodworking is now Donnelly's full-time job.

"Everyone I encountered either had a really good year or a really bad year — and for me I had a good year," she told the Times. "Now I'm working outside in the grass and the dirt. I have a workshop in the garage; I have scrap wood everywhere. My life is really different."

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Rice biotech accelerator appoints 2 leading researchers to team

Launch Pad

The Rice Biotech Launch Pad, which is focused on expediting the translation of Rice University’s health and medical technology discoveries into cures, has named Amanda Nash and Kelsey L. Swingle to its leadership team.

Both are assistant professors in Rice’s Department of Bioengineering and will bring “valuable perspective” to the Houston-based accelerator, according to Rice. 

“Their deep understanding of both the scientific rigor required for successful innovation and the commercial strategies necessary to bring these technologies to market will be invaluable as we continue to build our portfolio of lifesaving medical technologies,” Omid Veiseh, faculty director of the Launch Pad, said in a news release.

Amanda Nash

Nash leads a research program focused on developing cell communication technologies to treat cancer, autoimmune diseases and aging. She previously trained as a management consultant at McKinsey & Co., where she specialized in business development, portfolio strategy and operational excellence for pharmaceutical and medtech companies. She earned her doctorate in bioengineering from Rice and helped develop implantable cytokine factories for the treatment of ovarian cancer. She holds a bachelor’s degree in biomedical engineering from the University of Houston.

“Returning to Rice represents a full-circle moment in my career, from conducting my doctoral research here to gaining strategic insights at McKinsey and now bringing that combined perspective back to advance Houston’s biotech ecosystem,” Nash said in the release. “The Launch Pad represents exactly the kind of translational bridge our industry needs. I look forward to helping researchers navigate the complex path from discovery to commercialization.”

Kelsey L. Swingle

Swingle’s research focuses on engineering lipid-based nanoparticle technologies for drug delivery to reproductive tissues, which includes the placenta. She completed her doctorate in bioengineering at the University of Pennsylvania, where she developed novel mRNA lipid nanoparticles for the treatment of preeclampsia. She received her bachelor’s degree in biomedical engineering from Case Western Reserve University and is a National Science Foundation Graduate Research Fellow.

“What draws me to the Rice Biotech Launch Pad is its commitment to addressing the most pressing unmet medical needs,” Swingle added in the release. “My research in women’s health has shown me how innovation at the intersection of biomaterials and medicine can tackle challenges that have been overlooked for far too long. I am thrilled to join a team that shares this vision of designing cutting-edge technologies to create meaningful impact for underserved patient populations.”

The Rice Biotech Launch Pad opened in 2023. It held the official launch and lab opening of RBL LLC, a biotech venture creation studio in May. Read more here.

University of Houston archaeologists make history with Mayan tomb discovery

History in the Making

Two University of Houston archaeologists have made scientific history with the discovery of a Mayan king's tomb in Belize.

The UH team led by husband and wife scientists Arlen F. Chase and Diane Z. Chase made the discovery at Caracol, the largest Mayan archeological site in Belize, which is situated about 25 miles south of Xunantunich and the town of San Ignacio. Together with Belize's Institute of Archeology, as well as support from the Geraldine and Emory Ford Foundation and the KHR Family Fund, they uncovered the tomb of Caracol's founder, King Te K’ab Chaak. Their work used airborne light detection and ranging technology to uncover previously hidden roadways and structures that have been reclaimed by the jungle.

The tomb was found at the base of a royal family shrine. The king, who ascended the throne in 331 AD, lived to an advanced enough age that he no longer had teeth. His tomb held a collection of 11 pottery vessels, carved bone tubes, jadeite jewelry, a mosaic jadeite mask, Pacific spondylus shells, and various other perishable items. Pottery vessels found in the chamber depict a Maya ruler wielding a spear as he receives offerings from supplicants represented as deities; the figure of Ek Chuah, the Maya god of traders, surrounded by offerings; and bound captives, a motif also seen in two related burials. Additionally, two vessels had lids adorned with modeled handles shaped like coatimundi (pisote) heads. The coatimundi, known as tz’uutz’ in Maya, was later adopted by subsequent rulers of Caracol as part of their names.

 Diane Chase archaeologist in Mayan tomb Diane Z. Chase in the Mayan tomb. Photo courtesy of University of Houston

During the Classical Period, Caracol was one of the main hubs of the Mayan Lowlands and covered an area bigger than that of present-day Belize City. Populations survived in the area for at least 1,000 years before the city was abandoned sometime around 900 AD. The royal dynasty established by Te K’ab Chaak continued at Caracol for over 460 years.

The find is also significant because this was roughly when the Mexican city of Teotihuacan made contact with Caracol, leading to a long relationship of trade and cultural exchange. Cremation sites found in Caracol contain items that would have come from Teotihuacan, showing the relationship between the two distant cities.

"Both central Mexico and the Maya area were clearly aware of each other’s ritual practices, as reflected in the Caracol cremation," said Arlen F. Chase, professor and chair of Comparative Cultural Studies at the University of Houston.

“The connections between the two regions were undertaken by the highest levels of society, suggesting that initial kings at various Maya cities — such as Te K’ab Chaak at Caracol — were engaged in formal diplomatic relationships with Teotihuacan.”

The Chases will present their findings at a conference on Maya–Teotihuacan interaction hosted by the Maya Working Group at the Santa Fe Institute in New Mexico in August 2025.

 UH professors Chase make Mayan Discovery UH archaeologists Arlen F. Chase and Diane Z. Chase Photo courtesy of University of Houston

 

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This story originally appeared on CultureMap.com.

Houston palliative care company integrates with Epic platforms

epic scale

Patients and medical teams using MyChart and other Epic Systems' software will now be able to access Houston-based Koda Health's AI-enhanced end-of-life planning platform.

The Houston-based palliative care company, which was born out of the TMC's Biodesign Fellowship, has integrated its advance care planning platform with Epic, one of the most widely used electronic health record (EHR) systems in the U.S., according to a news release.

Epic estimates that more than 325 million patients have a current electronic record in its systems.

“This is a significant milestone for our mission to make advance care planning scalable, meaningful, and seamless,” Tatiana Fofanova, CEO and co-founder of Koda Health, said in the release. “By integrating into systems already used by care teams, we help eliminate friction and ensure that care delivery honors what patients truly want—especially during serious illness and at the end of life.”

The partnership will streamline processes for both patients and clinicians. Users will be able to drop advance care plans directly into the Epic charts, which will be accessible through MyChart for patients and proxies and through Epic Hyperspace/Hyperdrive for care teams. Doctors can also initiate and manage advance care plans through a simple Epic order for patients.

According to Koda Health, its platform saves an average of $10,000 to $15,000 per patient. Roughly 85 percent of users complete advance care plan documents when using the platform, which is four times the national average.

“We developed Koda to give providers the time, training, and tools to guide these critical conversations," Dr. Desh Mohan, co-founder and chief medical officer at Koda Health, added in the statement. "Our integration now makes it possible to operationalize ACP at scale—aligned with value-based care goals and clinical reality.”

The company announced a partnership with Dallas-based Guidehealth, which integrates into primary care workflows and allows providers to identify high-risk patients, coordinate care and reduce administrative burden. Guidehealth works with more than 500,000 patients

Koda Health was founded in 2020 and closed an oversubscribed seed round for an undisclosed amount last year, with investments from AARP, Memorial Hermann Health System and the Texas Medical Center Venture Fund. The company also added Kidney Action Planning to its suite of services in 2024.

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