What Houston startup founders looking for funding need to know about working with VCs

guest column

Raising funds anytime soon? Take these tips from a venture capital insider into consideration. Photo via Getty Images

I have had the incredible opportunity to work with New Stack Ventures as a venture fellow, and after sourcing investment opportunities, shadowing calls with founders, and even leading a couple calls of my own, I have learned a few lessons that might resonate with startup founders who are raising capital.

Responsive founders make a difference

The first and likely most important lesson I have learned during my tenure as a fellow is this: responsive founders truly make a difference in whether or not they raise capital.

I have sent several emails and LinkedIn messages to really intriguing companies, in hopes of connecting for a call and inquiring about their raise. And, I look back and see that many of those outreach messages were left unread. I have also engaged in calls with really intriguing companies where the founder never follows up, and the idea of moving forward with next steps dissipates.

On the flipside of the forgetful founder, I have also witnessed extremely attentive founders: founders who send follow-up messages when they don't receive an immediate response, respond to their emails within the hour, and go above and beyond by sending pitch decks and executive summaries (even when unasked). This type of founder persona excites me with their enthusiasm and eagerness to make a deal. Their responsiveness with the investment process sheds light to how they likely run their businesses.

At the end of the day, many founders can say that they are hustlers and go-getters, but I believe the founders that show me through their actions in the investment process.

Great founders are great storytellers

When I do connect with founders in introductory calls (after the back-and-forth, hopefully responsive email exchange), the thing I look forward to most is hearing their stories. I want to know your story. I want to know what you were doing before your startup (and how that helped prepare you), how you thought of your idea, how you validated your assumptions, how you grew your business, and… everything in between (but all in less than five minutes of time).

Great founders are great storytellers. The great storytellers I have come across invite me into their companies' journeys, and leave me actually caring about their success.

On the opposite side of the spectrum, the founder who gives short responses and shows no real connection to their work (giving off the vibe that this is just another startup for them) leaves me unattached to them and their business.

Venture capitalists are more accessible than you might think

Perhaps, I gave this point away when I said that I was sending several emails and LinkedIn messages to founders (which sounds a little desperate), but VCs are way more accessible than you may think. Before working with New Stack Ventures, I had this perception that VCs were extremely hard to reach, exceptionally busy, and a little bit scary. And while one of the two latter characteristics still remains true, I can say with certainty that VCs are not hard to reach.

I can't speak for everyone in venture capital, but I do know that the VCs I work with will respond to founders who message them. Putting yourself out there, as a founder, can lead to advice (which bodes well for your business), a new connection in the industry (which bodes well for your network), and even an investment (which bodes well for the future of your startup). In the end, VCs are spending hundreds of hours, searching for a tractable startup that will change the game, and your startup could be the very gem they are looking for.

So, be bold, be responsive, and tell your story to any and every VC who will listen. I'm all ears.

Note: I was inspired to write this piece by by The Full Ratchet's tips for fundraising entrepreneurs, I thought I would share.

------

Christa Westheimer is a Rice University student and the managing director at Rice Ventures. She is a current venture fellow at Chicago-based New Stack Ventures.

This week's roundup of Houston innovators includes Jim Havelka of InformAI, Christa Westheimer of New Stack Ventures, and Charles Turner of Kare Technologies. Courtesy photos

3 Houston innovators to know this week

who's who

Editor's note: In the week's roundup of Houston innovators to know, I'm introducing you to three innovators recently making headlines — from health tech founders to a venture capital rising star.

Jim Havelka, founder and CEO of InformAI

Jim Havelka, founder and CEO of InformAI, joins the Houston Innovators Podcast to discuss the difference his technology can make on the health care industry. Photo courtesy of InformAI

InformAI is providing solutions for data optimizations in health care — something that'll allow for better diagnoses and treatment. Jim Havelka shares on the Houston Innovators Podcast last week that his company's success is due to being headquartered in Houston and tied to the Texas Medical Center. The company's team works out of JLABS @ TMC as well as TMC Innovation Institute.

"Those relationships have been very helpful in getting data to build these particular products," Havelka says. "Just the Texas Medical Center alone has roughly 10 million patient encounters every year. The ability to get access to data and, equally important, the medical experts has been a tremendous benefit to InformAI." Click here to read more and stream the podcast.

Christa Westheimer, venture fellow at New Stack Ventures

Need an in with a venture capital firm? This Houstonian has an idea. Photo courtesy

As a venture fellow, Christa Westheimer — who's a student at Rice University — works hard to find startups working on the next great thing. And she realizes there are so many Houston startups seeking funding, so she has some advice: get in touch.

"During my tenure as a venture fellow, I have been sifting through online resources — from Crunchbase and AngelList to LinkedIn — with the hopes of finding a really neat startup that would earn an investment from New Stack Ventures," she writes in a guest column for InnovationMap. Click here to read more.

Charles Turner, founder of Kare Technologies

Charles Turner founded Kare Technologies on the heels of a crisis — and the pandemic has accelerated the company's growth. Photo courtesy of Kare

Charles Turner saw an inefficiency in senior health care staffing — even before the industry was rocked by a pandemic. He founded Kare Technologies to use software to address this problem. In light of COVID-19, the need for better staffing solutions grew across industries and Kare expanded its features to reach hotel and restaurant workers.

"We'd always plan on doing this, and with the advent of COVID we accelerate our development on the hospitality side," Turner says. Click here to read more.

Need an in with a venture capital firm? Here's an idea. Photo via Pexels

Looking for VC funding? This Houstonian says to connect with venture fellows

guest column

Every venture capitalist is searching for the next greatest startup that can change the world — as well as provide a sizable return on their investment. Everyone knows this. And because everyone knows this, most entrepreneurs are sending their pitch decks and executive summaries to venture associates and deal leads. But, I'd like to propose that every entrepreneur who's interested in raising capital begin to pitch their startups to venture fellows, college-aged students who work with investment firms.

I am a venture fellow at New Stack Ventures where my main objective is to source investment opportunities. During my tenure as a venture fellow, I have been sifting through online resources — from Crunchbase and AngelList to LinkedIn — with the hopes of finding a really neat startup that would earn an investment from New Stack Ventures.

A few weeks ago, Crunchbase had run dry of Houston startups that I hadn't reviewed. Because of this deal drought, I posted in the Houston Startups Facebook Group, asking if anyone had any startups that might fit our pre-filter criteria, and I was introduced to 15 startup founders in a matter of minutes. I posted again in the Austin and Dallas/Fort Worth Startups Facebook Groups with similar results.

These experiences showed me that there are several hidden startups that need funding. And there are several venture fellows that need to meet deal quotas and strongly desire to source a startup that earns an investment from their firm. So, perhaps, we could marry these two groups and help them both succeed.

Here are three tips for connecting with venture fellows.

1. Find your firm fit.

VC-RANK.com allows you to compile a list of best-fit venture capital firms for your startup. You can begin with your curated list. You likely won't find venture fellows on the firm's "Team" or "About Us" pages, so you might have to do some digging by looking at the firm's LinkedIn page and their employees.

If your curated list of VC firms doesn't happen to have venture fellows, you can always try reaching out to venture fellows from these firms: Open Scout, Ripple Ventures, .406 Ventures, Crescent Ventures, Alley Corp, and Fin Venture Capital.

2. Share your startup with several venture fellows.

Through a quick LinkedIn message, you can share your startup by including your company website, your contact email address, and your basic raise information (i.e. How much have you previously raised? How much are you raising right now?).

3. Await further communication.

I can't speak for all venture fellows, but most of us are just college kids who have been given the opportunity to learn a whole lot at VC firms. Contacting venture fellows can be a great (and low-risk) way to get your company's name immediately on the list of potential investment opportunities for your ideal firm. And, you would be helping any venture fellow out by making the effort.

------

Christa Westheimer is a Rice University student and the managing director at Rice Ventures. She is a current venture fellow at Chicago-based New Stack Ventures.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

Health tech startup launches Houston study improve stroke patients recovery

now enrolling

A Houston-born company is enrolling patients in a study to test the efficacy of nerve stimulation to improve outcomes for stroke survivors.

Dr. Kirt Gill and Joe Upchurch founded NeuraStasis in 2021 as part of the TMC Biodesign fellowship program.

“The idea for the company manifested during that year because both Joe and I had experiences with stroke survivors in our own lives,” Gill tells InnovationMap. It began for Gill when his former college roommate had a stroke in his twenties.

“It’s a very unpredictable, sudden disease with ramifications not just for my best friend but for everyone in his life. I saw what it did to his family and caregivers and it's one of those things that doesn't have as many solutions for people to continue recovery and to prevent damage and that's an area that I wanted to focus myself on in my career,” Gill explains.

Gill and Upchurch arrived at the trigeminal and vagus nerves as a potential key to helping stroke patients. Gill says that there is a growing amount of academic literature that talks about the efficacy of stimulating those nerves. The co-founders met Dr. Sean Savitz, the director of the UTHealth Institute for Stroke and Cerebrovascular Diseases, during their fellowship. He is now their principal investigator for their clinical feasibility study, located at his facility.

The treatment is targeted for patients who have suffered an ischemic stroke, meaning that it’s caused by a blockage of blood flow to the brain.

“Rehabilitation after a stroke is intended to help the brain develop new networks to compensate for permanently damaged areas,” Gill says. “But the recovery process typically slows to essentially a standstill or plateau by three to six months after that stroke. The result is that the majority of stroke survivors, around 7.6 million in the US alone, live with a form of disability that prevents complete independence afterwards.”

NeuraStasis’ technology is intended to help patients who are past that window. They accomplish that with a non-invasive brain-stimulation device that targets the trigeminal and vagus nerves.

“Think of it kind of like a wearable headset that enables stimulation to be delivered, paired to survivors going through rehabilitation action. So the goal here is to help reinforce and rewire networks as they're performing specific tasks that they're looking to improve upon,” Gill explains.

The study, which hopes to enroll around 25 subjects, is intended to help people with residual arm and hand deficits six months or more after their ischemic stroke. The patients enrolled will receive nerve stimulation three times a week for six weeks. It’s in this window that Gill says he hopes to see meaningful improvement in patients’ upper extremity deficits.

Though NeuraStasis currently boasts just its two co-founders as full-time employees, the company is seeing healthy growth. It was selected for a $1.1 million award from the National Institutes of Health through its Blueprint MedTech program. The award was funded by the National Institute of Neurological Disorders and Stroke. The funding furthers NeuraStasis’ work for two years, and supports product development for work on acute stroke and for another product that will aid in emergency situations.

Gill says that he believes “Houston has been tailor-made for medical healthcare-focused innovation.”

NeuraStasis, he continues, has benefited greatly from its advisors and mentors from throughout the TMC, as well as the engineering talent from Rice, University of Houston and Texas A&M. And the entrepreneur says that he hopes that Houston will benefit as much from NeuraStasis’ technology as the company has from its hometown.

“I know that there are people within the community that could benefit from our device,” he says.

Latest Houston health tech news dominates this week's top stories

trending news

Editor's note:Let's roundup the top Houston innovation news from the week. Trending Houston tech and startup articles on InnovationMap included introducing the Texas Medical Center's ongoing cohort, generative AI at Baylor College of Medicine, and more.

TMC names latest cohort of health tech innovators for 2024 program

Here are the eight companies currently being accelerated by Texas Medical Center Innovation. Photo courtesy of TMC

The Texas Medical Center Innovation has named its new cohort of health tech companies it's currently accelerating.

This first batch of companies for 2024 was selected from last fall's TMC Bootcamp. Eight of the 10 startups from the bootcamp have moved on to the Accelerator for HealthTech.

"Hailing from diverse corners of the globe—from the tech corridors of Texas and California to Ireland and Australia—these companies converge with a shared mission—to move healthcare forward," Devin Dunn, head of the Accelerator for Health Tech, writes in a TMC blog post. "Through personalized mentorship and guidance, these eight companies are able to navigate complex challenges and refine their strategies, while leveraging the expertise of Texas Medical Center ecosystem to validate their innovations and drive real-world impact." Continue reading.

Houston researches tap into GenAI for communicating genetic test results

Researchers at Baylor College of Medicine’s Human Genome Sequencing Center have trained an AI assistant to explain genetic test results to patients. Photo via Getty Images

Artificial intelligence in the health care setting has a lot of potential, and one Houston institution is looking into one particular use.

Researchers at Baylor College of Medicine’s Human Genome Sequencing Center have trained an AI assistant to explain genetic test results to patients. According to findings published in the Journal of the American Medical Informatics Association (JAMIA), the team has developed generative AI to understand and interpret genetic tests. They have also tested its accuracy against Open AI’s ChatGPT 3.5.

“We created a chatbot that can provide guidance on general pharmacogenomic testing, dosage implications, and the side effects of therapeutics, and address patient concerns,” explains first author Mullai Murugan in a press release. Murugan is director of software engineering and programming at the Human Genome Sequencing Center. “We see this tool as a superpowered assistant that can increase accessibility and help both physicians and patients answer questions about genetic test results.” Continue reading.

2 Houston cleantech companies named to top 10 ranking of innovative energy

Fervo Energy and Syzygy Plasmonics were recognized for their energy innovation. Photo via Getty Images

A pair of Houston energy startups have been named among the 10 most innovative energy companies for 2024.

Fast Company magazine just placed Fervo Energy and Syzygy Plasmonics on its energy innovation list. In all, 606 companies and organizations across a variety of industries were recognized for “reshaping industries and culture.”

Fervo produces carbon-free geothermal energy. Its existing geothermal project is in Nevada, and it’s building a geothermal project in Utah. The company recently raised $244 million.

“Solar and wind are cheap, but they don’t provide the kind of always-on dispatchable electricity that hydropower, hydrogen, and nuclear do; even at current high prices, enhanced geothermal is still cheaper than those other sources,” Fast Company notes. Continue reading.

University of Houston names new leaders within innovation, tech

Haleh Ardebili (left) has been appointed as assistant vice president of Entrepreneurship and Startup Ecosystem, and Michael Harold as assistant vice president for Intellectual Property and Industrial Engagements at the University of Houston. Photo via UH

Two professors have assumed new leadership roles in the University of Houston’s Office of Technology, Transfer, and Innovation.

Haleh Ardebili, the Kamel Salama Endowed Professor of Mechanical Engineering, has been named assistant vice president of entrepreneurship and startup ecosystem. Michael Harold, Cullen Engineering Professor of Chemical and Biomolecular Engineering, has been named assistant vice president for intellectual property and industrial engagements.

Ardebili and Harold “are both tested leaders in their respective areas —they are already contributing to our rich academic environment with their knowledge, expertise and commitment to innovation,” says Ramanan Krishnamoorti, vice president for energy and innovation at UH, in a statement. “Having them helm our growing team will help UH continue its culture of innovation and contribution to society.” Continue reading.

Houston startup recognized for inclusivity on journey to commercialize next-gen therapeutics

Spun out of Baylor College of Medicine, Phiogen was selected out of 670 companies to pitch at SXSW earlier this month. Photo via Getty Images

A new Houston biotech company won a special award at the 16th Annual SXSW Pitch Award Ceremony earlier this month.

Phiogen, one of 45 companies that competed in nine categories, was the winner for best inclusivity, much to the surprise of the company’s CEO, Amanda Burkhardt.

Burkhardt tells InnovationMap that while she wanted to represent the heavily female patient population that Phiogen seeks to treat, really she just hires the most skilled scientists.

“The best talent was the folks that we have and it ends up being we have three green card holders on our team. As far as ethnicities, we have on our team we have Indian, African-American, Korean, Chinese Pakistani, Moroccan and Hispanic people and that just kind of just makes up the people who helped us on a day-to-day basis,” she explains. Continue reading.

Texas Space Commission launches, Houston execs named to leadership

future of space

Governor Greg Abbott announced the Texas Space Commission, naming its inaugural board of directors and Texas Aerospace Research and Space Economy Consortium Executive Committee.

The announcement came at NASA's Johnson Space Center, and the governor was joined by Speaker Dade Phelan, Representative Greg Bonnen, Representative Dennis Paul, NASA's Johnson Space Center Director Vanessa Wyche, and various aerospace industry leaders.

According to a news release, the Texas Space Commission will aim to strengthen commercial, civil, and military aerospace activity by promoting innovation in space exploration and commercial aerospace opportunities, which will include the integration of space, aeronautics, and aviation industries as part of the Texas economy.

The Commission will be governed by a nine-member board of directors. The board will also administer the legislatively created Space Exploration and Aeronautics Research Fund to provide grants to eligible entities.

“Texas is home to trailblazers and innovators, and we have a rich history of traversing the final frontier: space,” Lieutenant Governor Dan Patrick says in a news release. “Texas is and will continue to be the epicenter for the space industry across the globe, and I have total confidence that my appointees to the Texas Space Commission Board of Directors and the Texas Aerospace Research and Space Economy Consortium Executive Committee will ensure the Texas space industry remains an international powerhouse for cutting-edge space innovation.”

TARSEC will independently identify research opportunities that will assist the state’s position in aeronautics research and development, astronautics, space commercialization, and space flight infrastructure. It also plans to fuel the integration of space, aeronautics, astronautics, and aviation industries into the Texas economy. TARSEC will be governed by an executive committee and will be composed of representatives of each higher education institution in the state.

“Since its very inception, NASA’s Johnson Space Center has been home to manned spaceflight, propelling Texas as the national leader in the U.S. space program,” Abbott says during the announcement. “It was at Rice University where President John F. Kennedy announced that the U.S. would put a man on the moon—not because it was easy, but because it was hard.

"Now, with the Texas Space Commission, our great state will have a group that is responsible for dreaming and achieving the next generation of human exploration in space," he continues. "Texas is the launchpad for Mars, innovating the technology that will colonize humanity’s first new planet. As we look into the future of space, one thing is clear: those who reach for the stars do so from the great state of Texas. I look forward to working with the Texas Space Commission, and I thank the Texas Legislature for partnering with industry and higher education institutions to secure the future of Texas' robust space industry."

The Houston-area board of directors appointees included:

  • Gwen Griffin, chief executive officer of the Griffin Communications Group
  • John Shannon, vice president of Exploration Systems at the Boeing Company
  • Sarah "Sassie" Duggleby, co-founder and CEO of Venus Aerospace
  • Kirk Shireman, vice president of Lunar Exploration Campaigns at Lockheed Martin
  • Dr. Nancy Currie-Gregg, director of the Texas A&M Space Institute

Additionally, a few Houstonians were named to the TARSEC committee, including:

  • Stephanie Murphy, CEO and executive chairman of Aegis Aerospace
  • Matt Ondler, president and former chief technology officer at Axiom Space
  • Jack “2fish” Fischer, vice president of production and operations at Intuitive Machines
  • Brian Freedman, president of the Bay Area Houston Economic Partnership and vice chairman of Wellby Financial
  • David Alexander, professor of physics and astronomy and director of the Rice Space Institute at Rice University

To see the full list of appointed board and committee members, along with their extended bios, click here.

View All Listings