Planning to open in the coming months, The Ion Houston has made great progress on its construction. Scroll down to view the slideshow. Photo by Natalie Harms

The Ion Houston is expected to open its doors this year, and the building's exterior is close to completion. Now, the construction team is focusing on interiors and then tenant build outs.

The 270,000-square-foot coworking and innovation hub owned and managed by Rice Management Co. is slated to be a convening building for startups, corporations, academic partners, investors, and more. The building is organized as follows:

  • The underground Lower Level will act as academic flex space with a few classrooms and open-concept desks for The Ion's accelerators, including: The Ion Smart and Resilient Cities Accelerator, DivInc, the Rice Alliance's Clean Energy Accelerator, and the Aerospace Innovation Hub and Accelerator. There will also be an event space and The Ion's own programming.
  • On the first, street-level floor, The Ion's restaurant tenants will reside with access from both the greenspace as well as into the building. The Ion's first three restaurant tenants include: Late August, Common Bond, and STUFF'd Wings.
  • Additionally, the first floor will be home to a venture studio and the prototyping lab. There is additional space available for other tenants.
  • On the second floor, there will be 58,000 square feet of coworking space managed by Common Desk. Note: For floors 2 and up of the Ion, tenants will have access cards that allow them entrance. The first and lower floors will not require access cards.
  • The third floor of the building will house eight to 10 tenants each with 5,000 to 10,000 square feet of space. Chevron was announced as the first tenant and will reside on this floor.
  • On the fourth and fifth floors, The Ion will house one to two larger tenants on each level. These levels of the building were added on to the existing structure. The fourth floor features two balconies that tenants will have access to. Microsoft is signed on to have its space on half of the fifth floor.
The Ion is still planning on an open date in late spring or summer. For leasing information, click here. Scroll through the slideshow of construction images and renderings to see the progress of the building.

Exterior nears completion

Photo by Natalie Harms

The building's exterior is almost complete and kept much of the original building's facade. The new materials brought in match the existing color scheme.

As Houston grows, the city needs more and more construction. However, with this growth comes the need to build responsibly — and that's where technology can come in. Photo via Getty Images

Houston expert calls for more innovation within the construction industry

guest column

The construction industry has the opportunity to drive positive change through the development and deployment of technologies influencing the way we work and live, ultimately affecting our environment, communities, and personal well-being.

Carbon emissions come from a handful of broad categories, including transportation, electricity production, and industry. According to the International Energy Agency, more than a third of all global greenhouse gases come from the building and construction industry. Concrete production alone contributes an estimated 8 percent of global carbon emissions. As a result, in Houston, we are vulnerable to longer, hotter summers, stronger hurricanes and once-in-a-lifetime storms. But I'm optimistic that there is opportunity for our industry to come together and reverse the current trajectory.

We must continue developing and deploying new technologies and best practices to reduce emissions. By using data to understand the environmental implications of the materials we use, we can make adjustments that are beneficial to both our clients and the environment.

One such example is the Embodied Carbon in Construction Calculator, known as "EC3." Skanska USA developed the open-source, freely available software in collaboration with Microsoft and C Change Labs. The tool democratizes important building data and allows the construction industry to calculate and evaluate carbon emissions associated with various building materials.

Now hosted and managed by Building Transparency, a new 501c3 organization, the EC3 tool was incubated at the Carbon Leadership Forum with input from nearly 50 industry partners. Like the tech industry, we should promote knowledge-sharing among general contractors to drive innovation and sustainability.

The demand for this tool is growing because it's not only the right thing to do, but it also benefits our communities and drives stakeholder value. Now more than ever, clients want to be responsible global citizens and they know that adopting green building practices is attractive to their prospective workforce and their clients and customers.

In Houston, the current population of 7.1 million will double to 14.2 million by 2050. With that population growth comes the need for more housing, more office space and more transportation options. Last April, Houston enacted a climate action plan that sets goals aligned with those from the Paris accord — carbon neutrality by 2050.

Similar local plans have been and are continually being developed all around the world, a necessary step to address a global issue that impacts all of us. Like others, the Houston plan contemplates how to reduce carbon emissions that are the result of energy consumption which accounts for about half of Houston's greenhouse-gas emissions.

Innovations in energy efficiency can help drive down energy consumption. As conscientious global and local citizens, we also have to consider the emissions that are created by the raw materials that are used in construction. That's become a much easier process with the EC3 tool. Now architects, engineers and others involved in the design process can make data-driven decisions that can have significant impact on the carbon footprint — as much as a 30 percent reduction in embodied carbon — of a structure that are mostly cost-neutral.

Embodied-carbon reductions can be made simply by smartly using data. The EC3 tool is one of many steps toward innovative building practices and complements the important ongoing work done by the U.S. Green Building Council, which oversees LEED certification.

Opting for sustainable building practices is good for the environment, but it's also good for the people who will spend time in these spaces. Green building reduces the use of toxic materials, and studies have found that sustainable structures, such as schools, health care facilities and airports, have positive impacts on cognitive ability, seasonal affective disorder and overall happiness.

We are also seeing an influx of client requests for sustainable and healthy building upgrades, especially since the onset of COVID-19. These upgrades are changing the way we live and work while supporting infection control, from touchless elevators to advanced air filtration systems.

For example, innovation has been instrumental throughout the pandemic for the aviation industry's safe operation. Increased biometrics across airport touchpoints, flexible passenger gathering areas that include modifications to passenger hold rooms and departure lounges, and environmental monitoring and wayfinding technology to alert passengers of airport congestion points are a few new concepts airports are incorporating into builds to keep travelers healthy now and in a post-COVID world.

Overall, the construction sector will play an essential role in how we approach expanding the built environment over the next 30 years. Using data and striving for continual innovation, we have a great opportunity to come together as an industry and create real change that will benefit our collective lives and those of generations to come.

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Dennis Yung is executive vice president and general manager at
Skanska, one of the world's leading project development and construction groups, where he oversees building operations for Houston and North Texas.
Houston-based SiteAware has raised $10 million in its latest round of funding. Photo courtesy of SiteAware

Houston construction software startup raises $10M in series A round

money moves

A growing startup that provides artificial intelligence-enabled verification software to the construction industry has announced the closing of a multimillion-dollar round.

Houston-based SiteAware announced last week that it's closed a $10 million series A investment round that was co-led by San Diego-based Axon Ventures and Germany-based Robert Bosch Venture Capital.

The company's platform uses AI and digital twin technology to provide real-time verification of construction fieldwork. According to a press release from SiteAware, the construction industry represents a $1.3 trillion market share of the United States economy.

"The cost of construction errors and the risk mitigation costs contribute to 10 to 30 percent of this number. SiteAware's technology significantly lowers this overhead, allowing for customers to reap the benefit," says Zeev Braude, SiteAware CEO, in the release.

By scanning buildings under construction, SiteAware's technology constructs a 3D model of the area and compares the progress of the structures to the construction plans in real time. This technology allows for any deviations from the plan to be realized as soon as possible, which means avoiding costly repairs or reconstructions.

"By enabling general contractors and developers to reduce the cost of errors and better mitigate risk, the ripple effect lowers the cost of real estate, providing better value opportunities for home buyers," Braude adds in the release. "Our technology closes the gap between plans and field work, solving this very important challenge within the trillion dollar construction sector."

SiteAware, which was founded in 2015 by Braude and CTO Ori Aphek, previously raised seed funding in 2015 and 2016. Existing investors, including lool Ventures, Oryzn Ventures, The Flying Object and Power Capital Venture also participated in the round.

"SiteAware has built a state of the art technology which provides the digital value that the construction industry has been needing, and we're excited to join in their vision," says Arad Naveh, partner at Axon VC, says in the release. "We were highly impressed that they were able to build a customer base of market leaders, and moreover, the impact that SiteAware's tools are already making."

SiteAware's technology can analyze construction sites in real time. Image courtesy of SiteAware

Houston comes in at No. 7 on a new list of most apartments completed during the first six months of 2020. Photo courtesy of Caydon

Houston booms with new apartment construction in 2020, report says

STANDING APART

The coronavirus pandemic has brought many activities to a unsettling halt. But it has failed to blunt Houston's apartment construction boom.

New data from Yardi Matrix, a supplier of commercial real estate data and research, shows that Houston comes in at No. 7 for most apartments completed during the first six months of 2020, with 2,085 apartments built.

Houston also comes in third place for projected apartment completions in 2020 is the Houston metro area. Yardi Matrix foresees the Bayou City region welcoming 10,404 new apartments this year, up 2 percent from 2019.

Little surprise to those paying attention to Texas real estate: More apartments were completed in Austin during the first six months of 2020 than in any other U.S. city. In the first half of the year, construction of 3,827 apartments was finished within the city of Austin, according to Yardi Matrix.

Right behind Austin on that list is San Antonio, where 2,871 new apartments hit the market in the first half of this year. Dallas follows Houston at No. 8 with 1,869 units; behind Big D is Farmers Branch, No. 18 with 1,161 units.

"Around the U.S., we have seen a variety of states, counties, and cities choose to close nonessential businesses for 'stay at home' or 'shelter in place' orders. For the most part, construction activity has been included as an essential activity that can continue with business as usual during these orders," Doug Ressler, manager of business intelligence at Yardi Matrix, says in a release.

"The popular Texas metropolitan area saw an increase of 62,000 residents from 2018 to 2019," Yardi Matrix says. "In response to the high demand, Austin metro has been an active scene for new construction in the past five years, having completed over 50,000 new apartments since 2016."

In the Yardi Matrix forecast, Dallas-Fort Worth eclipses all other U.S. metro areas for the number of new apartments predicted to be finished this year — 19,318. This would be DFW's third year in a row to lead all metro areas for annual apartment construction, with New York City claiming second place.

While that's an impressive amount of apartments, this year's anticipated final total for DFW would be down 29 percent versus last year, Yardi Matrix says.

Coming in at No. 19 for predicted apartment completions this year is the San Antonio area, with 4,595 new units on taps. However, that total would represent a 20 percent jump over last year, putting San Antonio in fourth place for the percentage increase from 2019 to 2020.

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This article originally ran on CultureMap.

Houston-based Hitched has dug up new investment money from a local private equity firm. Pexels

Houston-based digital marketplace for industrial equipment raises $5.5 million series A

money moves

A Houston startup that acts as a digital marketplace for industrial equipment in the oil and gas and construction industries closed a sizeable series A financing round this month.

Hitched Inc. raised $5.5 million in its series A funding led by Houston-based Cottonwood Venture Partners, a growth equity firm that focuses on digital tech solutions in the energy industry.

"It is encouraging to see the support and excitement from CVP," Hitched's Founder and CEO Adam Gilles says in a press release. "With this Series A funding, we plan to continue to shake things up in the oil & gas, construction, and industrial industries."

The company, which was founded in 2018, coordinates the rentals — from hosting and chartering to managing them — all on one centralized platform. Hitched has a catalogue of equipment from generators and cranes to light towers, pumps to forklifts, and the site lists out the cost per day of each piece of machinery.

According to the release, Hitched will use the fresh funds to advance its product development and customer experience as it continues "to reinvent the industrial rental marketplace."

"We're delighted to partner with the Hitched team. The industrial rental segment is incredibly opaque and riddled with inefficiencies," says Ryan Gurney, managing partner of CVP, in the news release. "The Hitched platform provides both a transparent marketplace and an important management tool that allows both the renter and rentee to optimize rental inventory."

The Cannon is expecting to open by the end of next month. Courtesy of The Cannon

Photos: The Cannon enters home stretch ahead of opening next month

Cannon Countdown

If all goes according to plan, The Cannon's new space will be up and running by the end of June. The bulk of the construction, which started a little over a year ago, is done, and the team is on the home stretch.

The original plan was to open in March, but construction faced a series of setbacks due to weather.

"Houston's rainy winter pushed back our initial timeline a bit, but we are currently on track for opening late next month and are excited to get our amazing community moved into our brand new home," says Lawson Gow, founder and CEO of The Cannon. "We can't wait to show off our space to Houston's entrepreneurial community through events, programming, new partnerships and more, continuing in our mission to support Houston's startups and small businesses."

Two Houston-based companies are responsible for the 120,000-square-foot, 32-acre coworking and entrepreneurship campus in West Houston — Burton Construction is the general contractor and Abel Design Group is the architect.

The new space is already 80 percent pre-leased. Currently, The Cannon has a 20,000-square-foot space next door to the construction site. While companies working out of this so-called "waiting room" building will be moving over, Gow, who is the son of InnovationMap's CEO, is excited to announce a few new startups excited to call The Cannon home next month.

The goal of The Cannon's project is to fulfill a need Gow says he recognized in Houston.

"The problem that we're addressing — every startup is addressing a problem — is Houston has really struggled to develop vibrant startup communities," Gow tells InnovationMap in a previous interview. "Entrepreneurs and talent will leave to go to Austin and beyond, and so the mission was to create a place and an infrastructure and a density of resources to prevent them from having to do that and keep our entrepreneurs here."

The new space will allow Gow and his team to host pitch events and even live fundraising events, due to a partnership with LetsLaunch.

Progress

Courtesy of The Cannon

The Cannon's construction delays were mostly due to a rainy season in Houston.

Take a video tour of The Cannon here:

The Cannon Flythroughwww.youtube.com

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CultureMap Emails are Awesome

7 lessons from a Houston-based unicorn startup founder

taking notes

At a fireside chat at SXSW, a Houston founder pulled back the curtain on his entrepreneurial journey that's taken him from an idea of how to make the chemicals industry more sustainable to a company valued at over $2 billion.

Gaurab Chakrabarti, the CEO and co-founder of Solugen, joined the Greater Houston Partnership's Houston House at SXSW on Monday, March 13, for a discussion entitled, "Building a Tech Unicorn." In the conversation with Payal Patel, principal of Softeq Ventures, he share the trials and tribulations from the early days of founding Solugen. The company, which has raised over $600 million since its founding in 2016, has an innovative and carbon negative process of creating plant-derived substitutes for petroleum-based products.

The event, which quickly reached capacity with eager SXSW attendees, allowed Chakrabarti to instill advice on several topics — from early customer acquisition and navigating VC investing to finding the right city to grow in and setting up a strong company culture.

Here are seven pieces of startup advice from Chakrabarti's talk.

1. Don’t be near a black hole.

Chakrabarti began his discussion addressing the good luck he's had standing up Solugen. He's the first to admit that luck is an important element to his success, but he says, as a founder, you can set yourself up for luck in a handful of ways.

“You do make your own luck, but you have to be putting in the work to do it," Chakrabarti says, adding that it's not an easy thing to accomplish. “There are things you can be doing to increase your luck surface area."

One of the principals he notes on is not surrounding yourself with black holes. These are people who don't believe in your idea, or your ability to succeed, Chakrabarti explains, referencing a former dean who said he was wasting his talent on his idea for Solugen.

2. The co-founder dynamic is the most important thing.

Early on, Chakrabarti emphasizes how important having a strong co-founder relationship is, crediting Solugen's co-founder and CTO Sean Hunt for being his "intellectual ping-pong partner."

“If you have a co-founder, that is the thing that’s going to make or break your company,” he says. “It’s not your idea, and it’s not your execution — it’s your relationship with your co-founder.”

Hunt and Chakrabarti have been friends for 12 years, Chakrabarti says, and, that foundation and the fact that they've been passionate about their product since day one, has been integral for Solugen's success.

"We had a conviction that we were building something that could be impactful to the rest of the world," he says.

3. Confirm a market of customers early on.

Chakrabarti says that in the early days of starting his company, he didn't have a concept of startup accelerators or other ways to access funding — he just knew he had to get customers to create revenue as soon as possible.

He learned about the growing float spa industry, and how a huge cost for these businesses was peroxide that was used to sanitize the water in the floating pods. Chakrabarti and Hunt had created a small amount of what they were calling bioperoxide that they could sell at a cheaper cost to these spas and still pocket a profit.

“We ended up owning 80 percent of the float spa market,” Chakrabarti says. “That taught us that, ‘wow, there’s something here.”

While it was unglamourous work to call down Texas float spas, his efforts secured Solugen's first 100 or so customers and identified a path to profitability early on.

“Find your niche market that allows you to justify that your technology or product that has a customer basis,” Chakrabarti says on the lesson he learned through this process.

4. Find city-company fit.

While Chakrabarti has lived in Houston most of his life, the reason Solugen is headquartered in Houston is not due to loyalty of his hometown.

In fact, Chakrabarti shared a story of how a potential seed investor asked Chakrabarti and Hunt to move their company to the Bay Area, and the co-founders refused the offer and the investment.

“There’s no way our business could succeed in the Bay Area," Chakrabarti says. He and Hunt firmly believed this at the time — and still do.

“For our business, if you look at the density of chemical engineers, the density of our potential customers, and the density of people who know how to do enzyme engineering, Houston happened to be that perfect trifecta for us," he explains.

He argues that every company — software, hardware, etc. — has an opportunity to find their ideal city-company fit, something that's important to its success.

5. Prove your ability to execute.

When asked about pivots, Chakrabarti told a little-known story of how Solugen started a commercial cleaning brand. The product line was called Ode to Clean, and it was marketed as eco-friendly peroxide wipes. At the time, Solugen was just three employees, and the scrappy team was fulfilling orders and figuring out consumer marketing for the first time.

He says his network was laughing at the idea of Chakrabarti creating this direct-to-consumer cleaning product, and it was funny to him too, but the sales told another story.

At launch, they sold out $1 million of inventory in one week. But that wasn't it.

“Within three months, we got three acquisition offers," Chakrabarti says.

The move led to a brand acquisition of the product line, with the acquirer being the nation's largest cleaning wipe provider. It meant three years of predictable revenue that de-risked the business for new investors — which were now knocking on Solugen's door with their own investment term sheets.

“It told the market more about us as a company,” he says. “It taught the market that Solugen is a company that is going to survive no matter what. … And we’re a team that can execute.”

What started as a silly idea led to Solugen being one step closer to accomplishing its long-term goals.

“That pivot was one of the most important pivots in the company’s history that accelerated our company’s trajectory by four or five years," Chakrabarti says.

6. Adopt and maintain a miso-management style.

There's one lesson Chakrabarti says he learned the hard way, and that was how to manage his company's growing team. He shares that he "let go of the reins a bit" at the company's $400-$500 million point. He says that, while there's this idea that successful business leaders can hire the best talent that allows them to step back from the day-to-day responsibilities, that was not the right move for him.

“Only founders really understand the pain points of the business," Chakrabarti says. "Because it’s emotionally tied to you, you actually feel it."

Rather than a micro or macro-management style, Chakrabarti's describes his leadership as meso-management — something in between.

The only difference, Chakrabarti says, is how he manages his board. For that group, he micromanages to ensure that they are doing what's best for his vision for Solugen.

7. Your culture should be polarizing.

Chakrabarti wrapped up his story on talking about hiring and setting up a company culture for Solugen. The company's atmosphere is not for everyone, he explains.

“If you’re not polarizing some people, it’s not a culture,” Chakrabarti says, encouraging founders to create a culture that's not one size fits all.

He says he was attracted to early employees who got mad at the same things he did — that passion is what makes his team different from others.

Houston tech company to acquire IT infrastructure startup

M&A moves

Hewlett Packard Enterprise has announced its plans to acquire a San Jose, California-based startup.

HPE, which relocated its headquarters to Houston from the Bay Area a couple years ago, has agreed to acquire OpsRamp, a software-as-a-service company with an IT operations management, or ITOM, platform that can monitor, automate, and manage IT infrastructure, cloud resources, and more.

According to a news release from HPE, the OpsRamp platform will be merged with the HPE GreenLake edge-to-cloud platform, which supports more than 65,000 customers, powers over two million connected devices, and manages more than one exabyte of data with customers worldwide.

The new integrated system "will reduce the operational complexity of multi-vendor and multi-cloud IT environments that are in the public cloud, colocations, and on-premises," per the statement.

“Customers today are managing several different cloud environments, with different IT operational models and tools, which dramatically increases the cost and complexity of digital operations management,” says HPE's CTO Fidelma Russo in the release. “The combination of OpsRamp and HPE will remove these barriers by providing customers with an integrated edge-to-cloud platform that can more effectively manage and transform multi-vendor and multi-cloud IT estates.

"This acquisition advances HPE hybrid cloud leadership and expands the reach of the HPE GreenLake platform into IT Operations Management,” she continues.

HPE's corporate venture arm, Pathfinder, invested in OpsRamp in 2020. The company raised $57.5 million prior to the acquisition. Other investors included Morgan Stanley Expansion Capital and Sapphire Ventures, per TechCrunch.

“The integration of OpsRamp’s hybrid digital operations management solution with the HPE GreenLake platform will provide an unmatched offering for organizations seeking to innovate and thrive in a complex, multi-cloud world. Partners and the channel will also play a pivotal role to advance their as-a-service offerings, as enterprises look for a unified approach to better manage their operations from the edge to the cloud,” says Varma Kunaparaju, CEO of OpsRamp, in the release.

“We look forward to leveraging the scale and reach of HPE’s global go-to-market engine to deliver our unique offering and are excited for this journey ahead as part of HPE.”

3 Houston innovators to know this week

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from space tech to software development — recently making headlines in Houston innovation.


Michael Suffredini, CEO and president of Axiom Space

Axiom's CEO announced a new mission and space suit design. Photo courtesy of Axiom Space

It was a big news week for Axiom Space. The Houston company announced its next commercial space mission with NASA to the International Space Station a day before it unveiled its newly design space suit that will be donned by the astronauts headed to the moon.

“We’re carrying on NASA’s legacy by designing an advanced spacesuit that will allow astronauts to operate safely and effectively on the Moon,” says Micahel Suffredini, CEO of Axiom, in a statement. “Axiom Space’s Artemis III spacesuit will be ready to meet the complex challenges of the lunar south pole and help grow our understanding of the Moon in order to enable a long-term presence there.”

Called the Axiom Extravehicular Mobility Unit, or AxEMU, the prototype was revealed at Space Center Houston’s Moon 2 Mars Festival on March 15. According to Axiom, a full fleet of training spacesuits will be delivered to NASA by late this summer. Read more.

Julie King, president of NB Realty Partners

Houston's access to lab space continues to be a challenge for biotech companies. Photo via Getty Images

In terms of Houston developing as an attractive hub for biotech companies, Julie King says the city still has one major obstacle: Available lab space.

She writes in a guest column for InnovationMap that biotech startups need specialized space that can hold the right equipment. That's not cheap, and it's usually a challenge for newer companies to incur that cost.

"However, with realistic expectations about these challenges, the good news is that once settled into a facility that is a fit, Houston’s emerging biotech companies can thrive and grow," she writes. Read more.

Owen Goode, executive vice president at Zaelot

Houston software development firm Axon is planning its Texas expansion thanks to its recent acquisition. Photo via LinkedIn

Owen Goode is a huge fan of Houston. That's why when his software design firm, Axon, got acquired by Zaelot, led by CEO Jeff Lombard, in January, he made sure the deal would mean growth in the region.

Zaelot is a global, software firm with a presence in 14 countries, mostly focused in the United States, Uruguay, and Iceland. With the acquisition of Axon, the combined company is poised to expand in Texas, beginning in Houston, Goode says.

“Together we have a strong suite of offerings across a wide variety of domains including full-stack development, cloud/data engineering, design, staff augmentation, project management, and software architecture. We also have experience in multiple domains, including health care, aviation, defense, finance, and startups,” says Goode. Read more.