Whether you're pitching your startup in a competition or for capital, here are some expert tips. Getty Images

One of the things our team at EllieGrid is most famous for is pitching. We have pitched our smart pill box in over 20 business plan competitions, on television, radio, and to so many investors that I have lost count. I can't remember what our first pitch was like but I know it has certainly evolved overtime. You could even say that we A/B tested some of our methods.

When you first organize your thoughts, you want to consider the basics, so before I give my advice, consider these tried-and-true tips.

  • Get to the point — say what your company is in the first 10 seconds
  • Know your audience
  • Shorter usually means better
  • Keep numbers to a minimum
  • Have a clear ask

In order to save you a little time, here are some of the of the lessons I learned the hard way to help you perfect your pitch.

Don't pitch. Tell a story.
I am going to let you in on a little secret: most people don't want to hear your pitch, especially if yours is not the first they have heard that day. Put yourself in their shoes, do you really want to listen to someone ramble on about facts and figures? Chances are, no. Instead, tell a story. Use engaging voices and set the scene. Recall your creative writing classes from high school and how you should mention what it was like in terms of feel, smell, taste, etc. and don't use generic adjectives such as "too small" or "the old way was hard."

People remember how you made them feel
What is in it for your audience? Is it wealth, power, fame, praise or glory, and/or pleasure? It might sound obvious to make this point when pitching, but I suggest you write out your pitch and highlight exactly where you say what is in it for them, maybe even more than once. Making the audience feel like you are caring about their desires and engaging them in conversation will help you be more memorable.

Come full circle
My favorite technique in any pitch or speech is if the speaker can connect the closing back to something they said at the beginning of their pitch. I enjoy this because sometimes the speaker will leave a question unanswered and then reveal how their solution is the answer in a creative way. This keeps your listeners engaged and connects the pain to your solution. Watch a few TED talks and you will see what I mean.

Pitch to a kid
This is probably the best advice I can give because it is a surefire way to make sure your pitch makes sense to a wide range of listeners. This also forces you to leave out jargon and filler words that you think might make you sound fancy like "innovative" or "disruptive" but actually make you sound like everyone else.

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Regina Vatterott is the COO and co-founder of Ellie Grid, a Houston-based company reinventing medical devices. Read more about Regina here.

Youngro Lee, co-founder and CEO of NextSeed, wants to create a connection between business and their communities. Courtesy of NextSeed

Houston startup founder plants the seeds for innovative capital raising

Growing investments

After eight years as a private equity lawyer, Youngro Lee quit his job to start NextSeed, a digital avenue for businesses to raise capital from the community they serve.

"One thing that I always realized in my professional career is that private equity is not the stock market," Lee says. "It's only open to wealthy, accredited individuals. I didn't like that. I thought it was in inefficient process. It's really hard for entrepreneurs to raise money if it's only open to this small group of people."

Since its founding in 2015, NextSeed has helped dozens of companies — like restaurant group, Peli Peli, and brewery, Buffalo Bayou Brewing Co. — raise money online from individual investors.

"Our mission is to connect businesses and individuals to their communities," Lee says. "That's why our businesses and the people we work with are largely focused on retail or consumer-facing businesses. No matter how our company evolves, we will stick to that as much as possible."

NextSeed is expected to grow and evolve its services in the near future.

InnovationMap: What changed so that NextSeed could exist?

Youngro Lee: When the Jobs Act happened in 2012, essentially a series of laws allowed for online fundraising for companies — including to non-accredited investors. That really caught my eye. I decided to leave my legal career to leverage this new law to start NextSeed, which is a platform for businesses to raise capital for from anybody.

IM: What were your first steps in starting NextSeed?

YL: It was really just understanding the changing law to really come to the conclusion that this could work — and then understanding the parameters that need to be put in place to make it happen. And then there's no easy way to do it, so I just quit my jobs and went for it.

IM: How did NextSeed get its initial funding?

YL: We found angel investors to get the company started. As we made some progress over time, we found some other investors along the way.

IM: How is NextSeed different from anything else out there?

YL: For businesses, it's a completely different way to raise capital. We find businesses legally compliant ways to raise money and put it online, and they get to engage with the community through their page.

IM: How is it different from crowdfunding sites?

YL: There are so many different types of crowdfunding platforms. What we're doing is investment or securities crowdfunding. Kickstarter, for instance, is asking for support or donations with a reward, but NextSeed is allowing for investing in financial securities that's being issued by the businesses. Even amongst the investment crowdfunding platforms, there's usually a focus on specific assets, like real estate, tech startups, or small businesses — that's what NextSeed focuses on, small businesses debt securities.

IM: How do you get new clients and relationships?

YL: A lot of it really is people to people. Investors telling people about it, and businesses telling other businesses about a new way to raise capital.

IM: What do you wish you'd known before you started NextSeed?

YL: Nothing ever goes to plan. I think especially for startups, there's a lot of accomplished companies out there, and a lot will try to give you advice or support. It's helpful, but the reality is that circumstances of a startup is so unique that you really have to be flexible to the feedback from the market when you're starting your business or launching your product.

IM: How does Houston's startup community compare to other major cities?

YL: I think it's changed dramatically. When I started in 2014, there was nothing like what there is now. There was nothing like Station Houston or Houston Exponential. In general, the Houston community has really embraced and has an interest in what a startup is and how it can make a good impact on the Houston economy.

IM: How has startup funding changed throughout your career?

YL: There's definitely more people interested in investing in startups, but a lot of misconceptions on both sides — companies and investors — on what a startup needs in terms of support. It is a lot better now than it was four years ago. I think the key for Houston to understand is Silicon Valley is Silicon Valley. New York is New York. Houston's innovation ecosystem is really different from other markets. I think Houston needs to find what works for Houston and not necessarily replicate what other markets seem to be doing.

IM: What's a mistake you've made in your career and what did you learn from it?

YL: There's so many. One I made, and I keep making, is as a startup founder you're so used to doing everything in a specific way. I've definitely held on to more responsibilities or decisions that I should have delegated and entrusting others to do them. As you get to different stages as a startup you have to grow the organization. What I've learned from not being able to give up control or be more flexible is that it doesn't work. It's a team effort, and you need every member of the team to feel empowered and part of the entire process.

IM: How has NextSeed's team grown over the past four years?

YL: NextSeed started with three co-founders and now we have around 18 people. We are definitely still in transition process from a mature startup to an innovative financial institution. We are officially becoming a broker-dealer to be able to service a larger base — financial side, business side, as well as our investors. The goal was for NextSeed to keep innovating and bring in new technologies and processes

IM: What's next for NextSeed?

YL: Over the next couple month we will be expanding our capabilities to work on larger projects and different types of investment opportunities.

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

YL: As a startup, "almost good" doesn't work. You have to get it right because competition and standards are so much higher for startups. So, especially given that we are focused on technology and finance, I want to make sure we set ourselves up for a high standards and meet expectations.

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Portions of this interview have been edited.

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Houston expert shares strategies for addressing  potential workforce shortages

guest column

The energy industry, a vital part of Houston’s business ecosystem, faces the challenge of a shrinking workforce.

A U.S. Chamber of Commerce report indicates the workforce has nearly two million fewer workers today as compared to February 2020. A considerable part of this decline can be attributed to retirement and early retirement rates, with the pandemic prompting three million people to early retirement. Furthermore, with an estimated 10,000 Baby Boomers turning 65 daily, the entire generation is expected to reach retirement age by 2030.

The tight labor market, coupled with the growing brain drain associated with retirement rates, should serve as a wake-up call for employers in the energy sector. There are tried-and-true strategies to prepare businesses for waves of retirement and ensure the knowledge does not walk out the door.

Upskilling: Invest in the workforce

Knowledge and skills go with workers are they retire. To mitigate the brain drain, companies need to invest in upskilling their existing employees and new hires. Establishing formal training and development opportunities can help enrich the workforce to pick up the responsibilities of retiring colleagues. This investment ensures a smooth transition, shows employees they are valued by the organization, and increases employee loyalty and engagement.

Adopting innovative training programs that cater to the specific needs of the energy sector is one approach. Technologies rapidly evolve, and employees must stay current to remain effective in their roles. Investing in the latest training programs, workshops and certifications will enable the workforce to thrive in a rapidly changing industry.

Mentoring programs: Pass the torch

Mentorship programs can play a pivotal role as more employees retire. Experienced employees nearing retirement can mentor younger workers, transferring knowledge and skills while ensuring a seamless transition of expertise. The value of mentorship programs can be priceless for an organization as they help transfer on-the-job learning and experiences that are not taught in the classroom.

A structured mentorship program usually proves most effective as it outlines the responsibilities of the mentors and mentees. A structured approach, which should have built-in accountability measures, ensures there is a productive knowledge transfer process.

Intentional recruitment: Attract and retain talent

A proactive recruitment approach is essential as businesses work to fill knowledge gaps. Companies in the energy sector should seek out talent to bridge the generational divide. This may include targeting candidates who have the relevant skills and knowledge, yet they are willing to adapt to the industry’s changing landscape.

Workplace culture is still a relevant and important component of attracting and retaining top-notch talent. Beyond competitive compensations packages, today’s job candidates look for growth opportunities and a focus on work-life balance.

Retaining knowledge: Document the expertise

Institutional knowledge will walk out the door as experienced employees retire. Companies can prepare for and mitigate the knowledge migration with knowledge-sharing systems and comprehensive documentation processes. An established process can help preserve information that may seem like second nature to more experienced employees and make it accessible to current and future employees. Asking retiring employees to document their expertise and best practices can safeguard their insights within the organization.

Covering bases: Create an alumni network

Retirement does not always mean the employee wants to hang up their proverbial hat entirely. Filling the knowledge gap as employees retire can be daunting. However, the development of an alumni network can extend the life of the institutional knowledge and knowledge-sharing process. Bringing back retirees on a project basis or to consult is a solution benefiting everyone involved.

Every industry must prepare for the impending wave of retirements. The energy industry’s significant impact on the Houston economy requires proactive and thoughtful solutions. The tight labor market and retirement rates should have businesses in this sector working diligently to fill the upcoming knowledge gaps through upskilling, mentoring, intentional recruitment, knowledge-sharing systems and alumni networks. Taking these steps now, the energy industry can circumnavigate workforce shortages and prepare for continued success.

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Jill Chapman is a director of early talent programs with Insperity, a leading provider of human resources and business performance solutions. This article originally ran on EnergyCapital.

Houston Innovation Awards winners revealed at 2023 event

drum roll, please...

Who are the top innovators and startups in Houston? We just found out for you.

The Houston Innovation Awards honored over 50 finalists categories, naming the 12 winners at the event. The 2023 Trailblazer Award recipient, Brad Burke, managing director of the Rice Alliance for Technology and Entrepreneurship, was also honored at the event by inaugural winner, Barbara Burger.

The 2023 judges — who represent various industries and verticals in Houston — scored over 200 submissions. The event, hosted November 8 in partnership with Houston Exponential and emceed by Scott Gale, executive director of Halliburton Labs, revealed the winners.

The event's sponsors included Halliburton Labs, Microsoft, The Ion, Houston Community College, Houston Energy Transition Initiative, NOV, Tito's Handmade Vodka, Uncle Nearest Premium Whisky, 8th Wonder Brewery, and 8th Wonder Cannabis.

Without further adieu, here the winners from the 2023 Houston Innovation Awards.

BIPOC-Owned Business: Milkify

The winner of the BIPOC-Owned Business category, honoring an innovative company founded or co-founded by BIPOC representation, is Milkify, a service that turns breast milk into a shelf-stable powder.

Female-Owned Business: The Postage

The winner of the Female-Owned Business category, honoring an innovative company founded or co-founded by a woman, is The Postage, a comprehensive life planning and succession software platform for families and small businesses.

Hardtech Business: Syzygy Plasmonics

The winner of the Hardtech Business category, honoring an innovative company developing and commercializing a physical technology, is Syzygy Plasmonics, a deep decarbonization company that builds chemical reactors designed to use light instead of combustion to produce valuable chemicals like hydrogen and sustainable fuels.

Digital Solutions Business: RepeatMD

The winner of the Digital Solutions Business category, honoring an innovative company developing and programming a digital solution to a problem in an industry, is RepeatMD, software platform for customer loyalty, eCommerce, and fintech solutions to enhance the patient experience and provide a new source of revenue for the aesthetics and wellness space.

Social Impact Business: ALLY Energy

The winner of the Social Impact Business category, honoring an innovative company providing a solution that would enhance humanity or society in a significant way, is ALLY Energy, helping energy companies and climate startups find, develop, and retain great talent.

Sustainability Business: Fervo Energy

The winner of the Sustainability Business category, honoring an innovative company providing a solution within renewables, climatetech, clean energy, alternative materials, circular economy, and beyond, is Fervo Energy, leveraging proven oil and gas drilling technology to deliver 24/7 carbon-free geothermal energy.

Life Science Business: CellChorus

The winner of the Life Science Business category, honoring an innovative company within the health and medical industries designing a treatment or technology, is CellChorus, using AI to evaluate immune cell function and performance to improve the development and delivery of therapeutics.

Corporate of the Year: Houston Methodist

The winner of the Corporate of the Year category, honoring a corporation that supports startups and/or the Houston innovation community, Houston Methodist, a hospital system and health care innovation leader.

DEI Champion: Calicia Johnson

The winner of the DEI Champion, honoring an individual who is leading impactful diversity, equity, and inclusion initiatives and progress within Houston and their organization, is Calicia Johnson, chair of Blacks at Microsoft Houston.

Ecosystem Builder: Joey Sanchez

The winner of the Ecosystem Builder category, honoring an individual who has acted as a leader in developing Houston’s startup ecosystem, is Joey Sanchez, founder of Cup of Joey and senior director of ecosystems at the Ion.

Mentor of the Year: Wade Pinder

The winner of the Mentor of the Year category, honoring an individual who dedicates their time and expertise to guide and support to budding entrepreneurs, is Wade Pinder, founder of Product Houston.

People's Choice: 

The winner of the People's Choice: Startup of the Year category, selected via an interactive voting portal during the event, is Blue People, helping bring ideas to life through software development expertise.

Report: Texas remains a top state for Black entrepreneurs

by the numbers

The Lone Star State has again ranked among the top states for Black entrepreneurs, but Texas didn't rank as highly as it did in 2022.

According to Merchant Maverick’s latest annual report on the state of Black businesses, Texas has landed in the No. 8 spot for the best states for Black entrepreneurs. While the state maintains a position in the top 10, Texas has dropped from its No. 3 spot last year.

Guided by metrics including Black-owned businesses per million residents, percentage of the state’s workforce employed by Black-owned businesses, average annual payroll of Black-owned businesses, average annual income of Black business owners, regional price parity, a cost of living indicator, unemployment rate, and Top state income tax bracket rates, the report also noted the following key takeaways:

The Lone Star State is:

  • No. 9 for highest average annual income.
  • Home to 360 Black-owned businesses per capita.
  • No. 15 highest in the nation for percentage of the workforce working for Black businesses.

Black businesses continue to see success all over the state.

The largest Black tech conference in the country, the 2023 AfroTech Conference, recently returned to Austin for the second straight year at the Austin Convention Center. The five-day conference united over 300 companies – including Amazon, Meta, and Google – to expand the representation of Black Americans in STEM fields.

In 2022, a ranking by Black employees at Apartment List put Houston at No. 4 among the best cities for Black professionals. The Apartment List employees judged 82 cities in four categories: Business environment for Black professionals. Houston ranks third. Black community and representation. Houston ranks fourth. Economic opportunities for Black professionals. Houston ranks seventh. Housing opportunities for Black professionals. Houston ranks No. 20.

Growth also was reflected post-pandemic for Black-owned startups in Houston according to study by economists at Rice University, Boston University, Columbia University, and the Massachusetts Institute of Technology (MIT). The study 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. The statewide startup rate during that period was 10 just at percent.

Texas recently landed on another Merchant Maverick report, also dropping a few spots in Merchant Maverick’s annual ranking of the top 10 states for women-led startups. The Lone Star State landed at No. 5 for women-led startups in 2023, down from No. 2 in 2022. Last year, Texas ranked second, up from its No. 6 showing in 2021.