Lawson Gow, CEO and founder of The Cannon, has officially opened cut the ribbon on the West Houston startup incubation hub. Courtesy of Quy Tran/The Cannon

The coworking and acceleration hub that's been holding down the Houston innovation ecosystem's West Houston presence has officially cut the ribbon and celebrated its grand opening.

Just hours after announcing The Downtown Launch Pad on October 24, The Cannon Houston celebrated the grand opening of its 120,0000-square-foot home at 1334 Brittmoore Road. The party welcomed over 600 innovators, Cannon members, and visitors.

Founder and CEO, Lawson Gow, who is also the son of InnovationMap's parent company's CEO, cut the ribbon on the new building that houses over 250 companies and is nearly sold out for leasing opportunities.

"It's been incredible watching The Cannon come to life since it was a drawing on a whiteboard," says Gow in a news release. "There are far too many people to thank — from the first community members that joined us in The Waiting Room more than 18 months ago, the numerous partners, investors, ecosystem members and resources that have helped us get where we are today, all the way to our new members who patiently waited for the space to open."

Gow's "Waiting Room" building is still in existence adjacent to the new building — the landlord of the property is operating it, but Cannon companies have all moved in to the new facility.

The grand opening event showcased all the startups and entrepreneurs based in The Cannon, plus hosted mental breaks — with free massages and cuddles with dogs — and other activities like poker and pingpong.

One Cannon-based startup, LetsLaunch, even hosted a live pitch event for a few of the companies using its digital investment platform, including: Camppedia, Social Chains, Pill Golf, and Paylight. Since the live pitch last week, LetsLaunch has seen a $21,000 increase of investment online.

While The Cannon team is settled, the organization already has growth and expansion in the works.

"Each person had a major part in getting us where we are today," Gow says. "We knew that Houston was in desperate need of a resource like this and are thankful to be able to build this community and fulfill our mission of supporting Houston's entrepreneurs."

Off with a blast

Courtesy of Quy Tran/The Cannon

The Cannon welcomed in over 600 members, staff, and guests into its new home on Thursday, October 24.

The Cannon's new building is 88 percent leased and ready for move in. Courtesy of The Cannon

Photos: The Cannon unveils its 120,000-square-foot startup hub in West Houston

Homecoming

The Cannon is finally getting to move its 150 startups and partners into its 120,000-square-foot campus in West Houston.

The original plan was to open in March, but construction, which began in April 2018, faced a series of setbacks due to weather. Current grand opening celebration plans are expected to be in September.

The flagship building is just the first step developing the campus, which is dubbed the Founders District.

"Our team has worked tirelessly to build this community over the past eighteen months, and we are incredibly proud to see our vision coming to life with the completion of this building," says The Cannon's CEO Lawson Gow in a news release. "The work isn't over though, and The Cannon will continue to grow our network of resources and locations to cater to the needs of Houston's growing entrepreneurial community." (Gow is the son of David Gow, owner of InnovationMap's parent company Gow Media.)

The building is currently 88 percent leased. Cannon Ventures, the company's investor group, will operate out of the new building, as will Capital Factory's Houston outpost. Austin-based Capital Factory, a statewide startup accelerator announced it would have its Houston operations at The Cannon in May. Since then, the company hired two Houston-based employees to run the programming.

According to the release, The Cannon will continue to grow its community relations for a "full suite" of partners. Houston-based investment fund Work America Capital, which led The Cannon's initial fundraising round, will also be joining The Cannon's community in the new building.

"It has been incredible to watch The Cannon's exceptional growth from inception two years ago to the vibrant community they've built today," says Mark Toon, managing partner of Work America Capital, in the release. "We can't wait to see the progress first-hand as The Cannon continues to establish themselves as a leader in building entrepreneurial communities."

The Cannon previously operated out of a 20,000-square-foot adjacent building called "The Waiting Room," which will be torn down and the space will be used as a part of the bigger Founders District plan.

The Cannon's new space will feature:

  • A 16-TV video wall
  • Outdoor courtyard
  • Movie theater
  • Snacks, coffee, and beer
  • Office needs, such as printers, scanners, and mail services
  • Showers
  • 24/7 accessibility
  • Professional and social events are organized on an ongoing basis for the community
  • Private event hosting for both members and non-members

Spacious setting

Courtesy of The Cannon

The Cannon is currently 88 percent leased.

From credit to crowdfunding, startups have more cash flow options now than ever before. Getty Images

Houston small business finance panel lays out funding options for startups

Follow the money

When it comes to raising money for your startup, there's plenty of fish in the sea, however, navigating the rough waters can be difficult.

Houston Community College put on a Small Business Summit on June 13 and gathered a group of financial professionals to represent several types of funding options, from venture capital to microlending.

Crowdfunding

The crowdfunding game has changed, says Rhian Davies, business development manager for LetsLaunch, an equity-based crowdfunding tool.

While most people think that donation-based crowdfunding — like GoFundMe or Kickstarter that give you the product or thank-you gift when you give — are the only options, that's not the case. And, investing using these platforms doesn't mean anything to you if the company sees success.

"If it makes it big, you're not going to get anything back," says Davies of these types of platforms.

But the JOBS Act in 2012 changed everything. Now, companies fundraising on crowdfunding sites can trade in equity for funds.

"Previously, investments were reserved for wealthy individuals — accredited individuals — who had a certain amount of money could invest in businesses," says Davies. "Equity crowdfunding opened that up."

With crowdfunding, you can also run other types of fundraising efforts at the same time, spreading out your options.

"It allows (the community) to invest in your business and it allows you to pass the hat and have people come on board," Davies says.

The other benefit to using the LetsLaunch platform is the team assists the startups every step of the way, from uploading a digital pitch deck onto the LetsLaunch platform and preparing paperwork to filing with the SEC.

However, one of the major challenges for startups is deciding what their funding goal is. Davies says you do have to hit a certain funding goal to be able to take that cash home, and for LetsLaunch, they look for that figure to be $10,000 minimum. Anything less than that isn't worth it — from both the LetsLaunch and the startup's perspective. The maximum value for equity crowdfunding is capped at just over $1 million — per the SEC.

Venture capital

VC funding is where most people's minds go when it comes to startup funding. And this type of funding is in an evolution phase too, says Remington Tonar, managing director at The Cannon Houston. While traditional VCs want a three-times return in five to seven years, some firms have more on their minds then just the money.

"There's a new phenomenon in venture where a lot of early stage investors and angel investors are looking at social impact investing," Tonar says. "They want to invest in women- or minority-owned businesses or companies that have a sustainability or social impact component to them. For those investors, the return demands are much more flexible."

Not only are they more flexible on returns, but VCs want more hands-on roles at the companies they invest in. Tonar says venture capitalists don't want to give passive capital.

Another way VCs differ from other types of funding is they are looking for something different in the companies they invest in — they want the next big thing.

"What venture capitalists really look for is disruptive business that are creating value in news ways," Tonar says.

And investments can be industry agnostic — VCs aren't reserved to just tech and computing industries.

"Most people would not have thought the hotel industry was a great industry for venture capital until Airbnb came along," says Tonar. "Most people would not have thought that taxis were a great industry for venture capital until Uber came along."

Fundraising through VC firms is a very personal process — they are investing in you, the founder, just as much as they are investing in the company or idea, Tonar says. You can have a horrible credit history or have declared bankrupt in the past, and while they will find that out, it's not a dealbreaker like it would be for a bank or traditional loan process.

"But if the investor feels that the idea has value and can create value and meets their risk profile, they will look at your startup and go through their due diligence process."

Microlending

A new trend in funding options is microlending — a type of loan process that caps out at $50,000. Lisa Riley is Houston market president for LiftFund, one of the largest microlenders in the United States.

Since the amount is smaller, the risk is smaller too. The type of customer LiftFund looks for is the person or company that's been denied by other banks.

"It's not always because of something negative with the customer," Riley says. "There are certain industries where it's very difficult to get finance right now."

Just like the trend in VCs, these types of lenders want to be hands on too to help secure success and a return.

"The last thing we want to be is another monthly obligation or a debt — the noose around someone's neck suffocating their small business," Riley says. "We want to make sure and walk with you and hold your hand as long as you'll hold mine so that when we give you your loan it's the right amount for your business and the right time."

Traditional loans and factoring

Of course, conventional loans is still an option, as is factoring — the process in which a business sells its accounts receivables to a third-party entity, called a factor.

Peter Ellen, senior vice president at Amegy Bank, explains the process as being pretty traditional. His bank wants to see a secure and profitable business on trach for growth.

"Typically, we look for a business that's been established for two years, that has generated a profit, and can show a clear path of repayment," Ellen says.

Again, like other funding options, Ellen says a relationship with the company is important.

"That's really what we look to do, is to form a relationship at an early stage with a company, really understand what they do, and help assist in the growth and success of their company," he says.

SBA loans

SBA loans are another lending option for startups to consider, Aziz Rahim, senior vice president at Wallis Bank, explains.

Different from a traditional loan process, SBA loans are guaranteed by the Small Business Association up to 85 percent, which lowers the risk for then lending partner.

Other benefits to SBA loans are lower down payments, generous term lengths, and caps on interest rates.

"The good thing about SBA loans compared to conventional loans is SBA loans do not balloon," Rahim says.

LetsLaunch, a Houston-based fundraising platform, has teamed up with The Cannon. Courtesy of LetsLaunch

Houston fintech startup partners with local coworking space to grow investment opportunities

Funding friends

A Houston fintech software company has joined forces with The Cannon to help connect its members to capital. LetsLaunch, a platform that allows for smaller investments from non-accredited investors, and The Cannon — along with its venture arm, Cannon Ventures — have officially entered a partnership as of this month.

"We're basically providing a transactional tool to allow Cannon Ventures to access more members who, legally, they couldn't access before," says Nick Carnrite, co-founder and CEO of LetsLaunch. "For us, it's a good thing because instead of having to go out and create a community of startups and investors, that gets brought to us."

The partnership will allow for The Cannon's members to have access to the platform, and LetsLaunch can piggyback off the Cannon's existing network and programming. For instance, if The Cannon hosts a pitch night, LetsLaunch could enable live investing so that anyone in the crowd could invest that night.

Additionally, companies backed by Cannon Ventures can easily do a dual raise — one side open to accredited investors writing big checks and the other on LetsLaunch open to anyone. For this setup, LetsLaunch investors get the perk of having the company vetted by the Cannon Ventures investors.

"[The partnership] allows us to further the vision of Cannon Ventures, which is to truly democratize angel investing," says Lawson Gow, founder and CEO of The Cannon and Cannon Ventures. "We want to activate and allow anyone who is interested in making investments of any size and in any way." (Gow is the son of the CEO of InnovationMap's parent company.)

LetsLaunch opened for business at the end of last year. The site works, in many ways, like a crowdfunding site, only investors receive equity for their money. Due to regulations, investment campaigns max out at around a million dollars, and how much one can invest depends on their annual income. For LetsLaunch's demographic, most users can invest up to $20,000 a year, Carnrite says. There is a minimum of a $250 investment per transaction, but Carnrite says he expects the average investment to be closer to $1,000 per transaction.

According to Carnrite, LetsLaunch is solving the exclusivity problem that traditional investing creates. Such a small pool of people can invest in companies for equity.

"There's something like 30 million people globally that have a $1 million net worth, which is the definition of being an accredited investor," Carnrite says. "Thirty million people out of 7.7 billion, so it's a little less than half a percentage."

And, according to Gow, this is a huge problem in Houston for companies who don't have access to funding.

"We had a company leave The Cannon last week and move to New York because they couldn't get funding in Houston," Gow says. "We're still losing battles every day — and one of the main reasons is getting early stage funding in companies."

The Cannon hosted a B2B pitch night, and all three companies have a mission to change the world. Courtesy of The Cannon

3 Houston entrepreneurs changing the world with their B2B startups

On purpose

I think it's safe to say that most B2B startups don't have sustainability or a mission-driven purpose at the core of their business model. In fact, it's probably safe to say that about any for-profit company of any size.

Three Houston entrepreneurs pitched their companies at The Cannon's recent B2B pitch night, and they all have something in common: They're not normal B2B startups. Each company has a mission to change the way we're doing something — from hiring to construction — in a way that's better for the world.

Natalie Goodman, founder and CEO IncentiFind

Courtesy of IncentiFind

Natalie Goodman realized there was a disconnect between builders and green incentives the government provides.

"The government is strapped — they have all this money that they want to give away, but not the (marketing) money to get the word out," Goodman told InnovationMap last month. "That's where IncentiFind stepped in."

IncentiFind is a portal for green incentives and works in three steps. First, you do a search for green incentives in your area — this part is completely free to the commercial developer or home owner. Next, the user might opt to pay IncentiFind to find the exact incentives for the project and submits the applications for the project. The final step is a promise of a 10 times return on investment.

A million green projects are completed in the United States each year, and IncentiFind is getting in front of that by forming partnerships with lenders, commercial developers, architects, etc., Goodman says to the crowd. Read more about IncentiFind here.

Jeff Miller, CEO of Potentia

Courtesy of The Cannon

The facts and figures are pretty startling. One-in-40 school-age children are on the autism spectrum and one-in-five college-educated autistic individuals don't have a job when they graduate, Jeff Miller says during his pitch at The Cannon. Miller, who has a long career in staffing around the world, founded his company Potentia to help correct this growing employment problem.

"We're seeking to help employers build their 21st century workforce at the intersection of technology, leadership, and, most specifically, the autism spectrum," he says.

Potentia is a technology-focused recruitment firm with resources and opportunities for applicants on the Autism spectrum. For Miller, it's personal. His 16-year-old son has autism, and Miller wants a world where his son can have access to employment opportunities around the world.

"I think we're in a position to improve this model here in Houston, and take it to other cities," Miller says. "The reality is this is a challenge that exists in every major city."

Kim Raath, co-founder of Topl

Courtesy of Topl

Sure, blockchain is a major buzzword nowadays, but for Topl co-founder Kim Raath it means having the ability to track the sustainability of a purchase. Topl's technology is able to tell you if your diamond ring came from a war-torn country or if your coffee's farmer was paid fairly.

Raath says she's seen an increased need for sustainable and transparent businesses that can prove their impact, but it's expensive to do that.

"These businesses are spending so much money on trying to prove this impact," Raath says in her pitch at The Cannon. "We have customers spending close to 15 percent in operational expenses just to be able to trace their growth."

The company, founded by three Rice University students, is growing. In May, Raath says they have four new ventures being developed, and by 2020, they want to have 24 live ventures with a monthly revenue of over $30,000.

"At Topl, we are really going to change the world," Raath tells the crowd. "But I can prove it to you." Read more about Topl here.

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Chevron's Houston-based venture group taps two companies for its startup-focused program

energy tech

Chevron's corporate venture arm that invests into energy tech innovation and supports startups within the industry has tapped two companies for its Chevron Technology Ventures Catalyst Program.

Entech Solutions and mIQroTech have both recently been named new partners in the program, which allows the startups support and guidance during growth and acceleration from Chevron and its network.

Norway-based Entech Solutions AS has developed itsSuperstage Pinpoint Stimulation to address high intensity stimulation in increasingly long horizontal wells, according to a press release. The product aims to improve production performance and lower costs.

"Collaboration with Chevron will allow us to demonstrate Superstage efficiencies in a variety of basins worldwide," says Anthony Kent, co-inventor of Superstage and Entech's General Manager for North America, in the release.

"Working with a leading global operator gives us access to expertise needed to standardize this robust and versatile hardware technology," he continues.

Meanwhile, Tampa, Florida-based mIQroTech is addressing pipeline leak concerns within the energy industry by using artificial intelligence and internet of things. The startup joined the Catalyst Program in July.

"Our goal is to deliver a transformative change to the global oil and gas industry," says founder and chief executive officer, Meade Lewis, in a press release.

"Better data, analytics, and intelligence will add efficiencies to pipeline operations and empower more informed and faster decision-making. We appreciate that Chevron recognizes our potential to deliver solutions to enable safer delivery of oil and gas," Lewis continues.

The company, which has received investments from Plug and Play, Ocean Capital, Republic, and Harvard Business School Alumni Angels, and more, will focus on growing its team and customer base.

Chevron also recently contributed to Houston-based ThoughtTrace's $10 million series B round in May and signed on as a partner for the Houston expansion of cleantech accelerator Greentown Labs.

Houston entrepreneur creates a new digital platform to help connect freelancers to clients

calling all creatives

By 2027, freelancers will account for the majority of the American workforce — and Houston is already well represented by the freelance space.

According to a recent study, Houston is home to 117,260 skilled freelancers who generated more than $4.1 billion in revenue in 2018. This burgeoning environment for freelancers presents many opportunities for innovations in the tech world, as one Houston entrepreneur has already discovered.

Yared Akalou, founder-and-CEO of Alcove Group and self-described designer-focused entrepreneur, released his third innovation catering to freelancers of the Houston area. His digital solutions platform, IAmOther50, assists freelancers with securing new clients by sharing their personal stories rather than just submitting their professional experience, it uses videos and articles to promote the work of a freelancer and connect them to their next client.

"I am really on a mission," Akalou tells InnovationMap. "I have been talking about the future of work for over a decade now. The paradigm will change to viewing work as a service, so it is important to tell a freelancer's story through a more engaging and novel way."

At first glance, the digital platform seems like a departure for Akalou who in 2017 founded Alcove, a portable laptop case that serves as a private workspace for freelancers to use amid coffee shops or coworking spaces. However, IAmOther50 serves as a distinctly separate yet integral part of his innovation landscape.

"These projects have been a combination of my focus and research," says Akalou. "My new platform works hand in hand with Alcove, supporting the mission to help people stay productive from anywhere."

The digital platform serves to capture the brand of the freelancer along with their personality and experience. It lives at the intersection of popular social media platforms and professional platforms such as LinkedIn, except just for freelancers in the Houston area. Currently, any freelancing professional in the Houston area can join for free by filling out a survey that customizes their goals for their profile.

"IAmOther50 provides information in a contextual way," says Akalou. "We have this guiding principle of delivering value even before the prospective client contacts the freelancer for an interview or potential position. It's about going beyond just a resume of what you've done and showcasing how you add value right now."

Akalou, who is also one of the mentors in The Ion Smart and Resilient Cities Accelerator, is focused on elevating the professional profiles of many freelancers, including those outside the Houston area. He is aiming to grow the platform to a self-service platform that can connect freelancers to clients all over the biggest metropolitan areas soon.


AI-optimized teams are a game changer for energy companies, this Houston expert says

guest column

The speed and scale of change in the business world had been on a fast track, with technology enabling bigger and bolder advances within shorter time frames.

Enter 2020: a global pandemic struck, and here in the Gulf Coast region, we were also hit by an energy industry downturn. The effects of both these crises have touched nearly every sector and revealed the factors that are essential to effectively managing through economic recovery. In a time of extreme challenges, two areas — human talent and technology — are now more important and intertwined than ever.

Earlier this year, Deloitte released its 2020 Global Human Capital Trends report, "The social enterprise at work: Paradox as a path forward," which addresses the intricacies of this issue. The survey was conducted before the pandemic took hold only to see its findings on the future of work play out in real time as companies respond to COVID-19 and the economic toll it's taking.

The rise of the superteam

Despite some dramatic predictions about machines replacing humans, many organizations, including oil and gas companies, are looking to integrate artificial intelligence into teams of people. These "superteams" of human talent and AI may enable organizations to reinvent themselves to create new value and meaning. For organizations that still view AI mainly as an automation tool to reduce costs, connecting AI initiatives with efforts to craft more effective teams is a first step toward enabling humans and machines to work together in new, more productive ways.

In the report, 60 percent of respondents said their organizations are currently using AI to assist, rather than to replace, workers. An additional 58 percent explained that they are using it to improve consistency and quality because superteams can allow organizations to both transform the nature of their output and create worker capacity. Furthermore, 66 percent of respondents believed that the number of jobs would either stay the same or increase as a result of AI's use in the next three years.

Drilling down on the energy sector

As the oil and gas industry reels from the dual effects of a global health crisis and oil price shocks, most organizations are focused on recovery, but forward-looking companies are devising strategies for better integrating technology into their operations.

The value of superteams is clear: they offer the promise of enabling organizations to reinvent themselves while giving employees the potential to further their careers by learning sought-after skills. It's no surprise, then, that many oil and gas companies are rethinking how the future of work may play out within their operations. For example, as outlined in Deloitte's Tech Trends 2020 report, a growing cohort of AI-powered solutions is increasing the need for technology that understands and responds to humans. This might take shape via a field worker being equipped with digital tools to provide real-time support for maintenance and upgrades. Augmented reality applications could offer the employee context-based instructions and the ability to connect with remote workers for live support.

This is just one example of how superteams can transform the sector; there are many other ways that humans and technology can work together to drive organizational value.

Working together to shape the new normal

As the future of work rapidly evolves amidst the world's "new normal," business leaders are wrestling with an increasing range of challenges. These challenges are especially pronounced at the intersection between humans and technology, where new questions have risen about the impact of emerging technologies on workers and society. Organizations that tackle these issues head-on – changing their perspectives to consider not only "could we" but also "how should we" – will be well-positioned to make the bold choices that drive organizational value.


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Amy Chronis is the Houston managing partner at Deloitte.