Historic Texas Southern University will host the September 12 Democratic debate, and Houston is expected to be the real economic winner. Courtesy photo

If past presidential debates are an accurate barometer, Houston stands to reap millions of dollars worth of benefits from what's been called the "Super Bowl of politics." However, one economist isn't casting his vote for any sizeable economic surge from the upcoming presidential debate in Houston.

On September 12, Houston's Texas Southern University, one of the largest historically black universities in the country, will host the third debate of the Democratic presidential primary season. The Democratic National Committee and ABC picked the 150-acre TSU campus for this showdown, where 10 Democratic candidates are set to take the stage at the 8,100-seat H&PE Arena.

While the Greater Houston Partnership isn't able to provide an estimated economic impact of the Houston debate, it still sees the value of Houston basking in the national spotlight.

"Texas Southern University hosting the third Democratic presidential primary debate here in Houston will focus national attention on the city for several days in much the same way the Republican presidential debate did back in 2016," Bob Harvey, president and CEO of the Greater Houston Partnership, tells InnovationMap. "These events put Houston top of mind among people across the country — including the companies and talented individuals we're working to recruit to Houston."

The debate will help showcase Houston as a diverse city that's tackling presidential-level issues like education, infrastructure, and climate change, Harvey says. Climate change, in particular, hits close to home in Houston, as the city is "redefining its role" as the Energy Capital of the World through local initiatives taking on renewables, carbon emissions, and sustainability, according to Harvey.

Three years ago, the University of Houston hosted a Republican presidential debate featuring five candidates. For historical context, Houston hosted the Democratic National Convention in 1928 and the Republican National Convention in 1992.

Brandon Rottinghaus, a professor of political science at UH who's an expert on the presidency, says nationally televised debates serve as a "massive platform" for host colleges and universities to recruit faculty and students beyond their normal regional or local confines. Furthermore, he says, presidential debates can elevate the status of these schools in the realm of "public discourse."

"These debates are also a way to connect to alumni networks flung far across the nation," Rottinghaus tells InnovationMap, "and give them some something to brag about that isn't sports-related."

No estimates were provided of the economic impact for the University of Houston debate, but other spots in the U.S. — communities and college campuses — that have hosted presidential debates tout millions of dollars in value from debate-related spending and free publicity.

In October 2012, the Boca Raton, Florida, area realized an immediate economic impact of $13.1 million from hosting the final debate ahead of that year's presidential election, as well as $63.7 million in free publicity from news coverage of the nationally televised event. Those figures come from a study commissioned by Lynn University, which hosted the debate. An accompanying survey found that after watching the debate, 4.7 million American adults definitely wanted to visit the Boca Raton area over the next five years.

Also in October 2012, the University of Denver hosted a general-election debate that generated an estimated $56 million in free publicity.

Victor Matheson, an economist at the College of the Holy Cross in Worcester, Massachusetts, dismisses those figures as inflated and irrelevant. And he says Houston shouldn't expect the city or TSU to receive any direct economic benefits from the September 12 debate.

For one thing, Matheson downplays the value assigned to free publicity surrounding a presidential debate. He complains that the methodology applied to tallying the benefits of so-called "earned media" coverage is flawed.

For another thing, Matheson notes that few people from outside the Houston area will be attending the debate at TSU, meaning little in the way of revenue from hotel stays, meals, and other visitor expenditures. "This isn't a Super Bowl," he says.

As a matter of fact, Houston hosted the 50th Super Bowl in February 2017 and fielded an economic impact of $347 million thanks to spending by 150,000 visitors, according to a study commissioned by the Houston Super Bowl Host Committee.

While not on the scale of a Super Bowl, the upcoming debate will attract positive attention for TSU, Matheson points out.

"This sort of debate can really put a college on the map, especially one like Texas Southern, a fairly obscure university from a national standpoint," he tells InnovationMap.

Matheson cites Saint Anselm College in Manchester, New Hampshire, as an example. Few people outside New England would have heard of Saint Anselm without its frequent hosting of presidential debates since the 1980s, he says.

The college has been dubbed the "academic epicenter" of the first-in-the-nation New Hampshire primary. During the 2015-16 political season alone, Saint Anselm hosted one Republican and one Democratic presidential debate, leading to more than 8,100 mentions in the news media of the college or its New Hampshire Institute of Politics.

"So, the effect for colleges is real, but there is still a question about how big it is," Matheson says. "And let's not pretend that the debate is somehow going to put Houston on the map. If Houston isn't already on your map, you really need to get yourself a new map."

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Baylor College of Medicine launches VC fund to invest in biotech startups

fresh funding

Houston’s Baylor College of Medicine just unveiled a new venture capital fund that backs early-stage biotech startups—and it’s already made its first investment.

BCM Legacy Fund I, funded by philanthropies, invested an undisclosed amount in Houston biotech startup Nemea Therapeutics. Nemea, a spinout of the Baylor College of Medicine and Germany’s Lead Discovery Center, is developing an oral drug to treat metastatic triple-negative breast cancer that no longer responds to currently available therapies.

This type of aggressive cancer spreads from the breast to other areas of the body, such as the bones, liver, lungs or brain. Roughly 38,000 to 57,000 Americans are diagnosed each year with metastatic triple-negative breast cancer. One study showed about half of patients survive past the one-year mark following diagnosis and about one-third survive two years.

“Baylor College of Medicine’s laboratories produce discoveries with the potential to change patients’ lives, and too many of them stall where academic funding ends and private investment has not yet begun,” Dr. Jakub Tolar, president, CEO and executive dean of the Baylor College of Medicine, said in a press release. “The BCM Legacy Fund fills that gap, giving our scientists a path to advance their discoveries to patients.”

The National Institutes of Health awards more than $36 billion per year for biomedical research in the U.S., Baylor said. But some biomedical discoveries “never leave the starting line because they don’t yet fit the economics of venture capital,” the college said.

“The forefront of a new model”

The BCM Legacy Fund aggregates philanthropic capital from private foundations and donor-advised funds. It then invests in startups so they can move beyond that starting line and into later-stage investment rounds. The Greater Houston Community Foundation is the fund’s philanthropic partner.

“It’s exciting to be on the forefront of a new model for philanthropic capital,” said Houston entrepreneur and investor Burton Hanson, managing partner of the fund.

“Not only do we hope to solve a real problem by advancing these therapies to the patients who need them most, but we also hope this model will inspire others in the city and beyond toward philanthropic creativity and a posture of ‘I sacrifice; we win.’”

The fund expects to invest in about 15 early-stage startups over a five-year span. Baylor declined to divulge the amount of money in the fund and the size of the investment in Nemea.

Nemea’s “world-class chemistry”

Hanson oversees the Baylor fund alongside Chicago investor Steve Lehmann, who led the University of Chicago’s Innovation Fund.

Lehmann said Nemea, the fund’s first portfolio company, “has world-class chemistry, Baylor biology, and patients with no good options. Our job is to fund the experiments that carry it to the next handoff, so that industry and later-stage investors can take it from there.”

Based at Houston’s massive Texas Medical Center, Nemea plans to start clinical trials next year in collaboration with Baylor’s Lester and Sue Smith Breast Center.

Nemea previously received $9 million from the Lead Discovery Center and a $1.6 million grant from Baylor. Last year, the startup said it was seeking $25 million to $30 million in seed and Series A funding.

Debra McCoy of Houston, a former managing director at BlackRock and former partner at Bain & Co., and Paul Thomas, co-founder and CEO of Spring-based benefits manager Luscinia Health, sit on the Baylor fund’s governing board. Dr. Paul Klotman, former president, CEO and executive dean of Baylor, is a senior strategic adviser.

How does the fund find investment targets?

The Baylor Legacy Fund relies on two tools to help unearth early-stage biotech startups:

  • High-resolution “innovation maps” of research institutions. These maps surface hidden clusters of innovation, identify rising-star researchers and tie pockets of “innovation supply” at Baylor to areas of “innovation demand” in biotech.
  • AI-enhanced due diligence. AI agents assist with due diligence of early-stage biotech startups. The fund says the platform “distills the frameworks we’ve developed over a decade of teaching and investing into a flexible … diligence environment.”

MD Anderson unveils $3.4B expansion with two new Houston cancer care facilities

major expansion

The cutting edge of cancer-fighting technology and science is getting even sharper after MD Anderson announced last week that it will open two new facilities in the Texas Medical Center within the next five years. Inspiration Tower and Prism will expand MD Anderson’s annual patient load in the TMC to 250,000 annually and will incorporate a variety of new techniques.

The $3.4 billion project will add 2 million square feet to MD Anderson's TMC footprint, bringing its total campus size to 22 million square feet by 2032. Located at the corner of Fannin Street and Holcombe Boulevard, the cancer center says the two new facilities will serve as its new "front door" to the TMC.

“Every detail of these buildings, from the technology to the treatment rooms, was designed around our patients who will receive their care in them and our employees who will work in them. The facilities will serve as a physical representation of hope for the patients and their families who will walk through the doors,” Dr. Jeffrey E. Lee, president ad interim of UT MD Anderson, said in a news release. “Inspiration Tower and Prism are the future of cancer care, and we are grateful for the longstanding support and guidance we’ve received from the UT System Board of Regents to bring these projects to life. These facilities are part of the most impactful capital expansion in UT MD Anderson’s history.”

Prism is especially exciting as it will represent fully half of the linear accelerator treatment in the TMC. Linear accelerator is a radiation treatment that uses magnetically charged fields to deliver targeted external radiation therapy, like shooting cancer with a rail gun. The treatment is safer and has fewer side effects than older radiation treatments.

In addition, Prism will contain 12 MRI machines, four CT scanners, two PET-CT units, 18 radiation vaults and seven radiation simulators. Patient comfort has also been put at a premium with multiple gardens and roof overlooks.

“Every patient we treat deserves an environment that reflects the excellence of the care they receive at UT MD Anderson,” Chris McKee, executive vice president and chief strategy officer at UT MD Anderson, added in the release. “Our new facilities will be innovative, agile, adaptable and beautiful, and they will allow us to care for more patients, more effectively – in an environment that enhances healing and well-being. We are building for our future and for every patient who will be counting on us.”

Prism is slated to open in 2030.

Inspiration Tower will have 25 floors of surgical, diagnostic, and treatment services. At 1.4 million square feet, it’s currently expected to be the largest cancer-specific treatment facility in the United States. The tower will be divided into units for specific types of cancer, making it easy to integrate the advancing research being done all over Houston.

Like Prism, Inspiration Tower is specifically designed to offer comfort and reassurance, with more garden space, terraces, and beautiful scenery to ease patient distress. It is expected to open in 2032.

Tesla will pull the plug on Cybertruck production at Texas factory in 2027

Tesla Talk

Tesla’s Cybertruck, the hulking, stainless-steel pickup that inspired devotion and derision with its science-fiction looks, will cease production next year.

CEO Elon Musk announced the model’s demise Friday, November 6, with a curt post on X, his social media site, simply noting production of the vehicle “will be winding down” around the middle of 2027 at its facility outside Austin, Texas. Musk said the move was to allow increased production of its Cybercab robotaxi.

For the Cybertruck, a pet project of Musk who insisted it was Tesla’s best product, it marks an unceremonious end to one of the auto industry’s most ballyhooed debuts.

“Few vehicles in history have generated as much attention,” said Armen Hareyan, whose Torque News site covers autos. “The Cybertruck became a cultural symbol – loved, mocked and impossible to ignore.”

The Cybertruck rolled onto the scene in a dramatic unveiling in 2019, when a Tesla designer hurled a metal ball at the vehicle to demonstrate its supposedly unbreakable glass, only to see it shatter. He repeated the stunt on another window of the truck only to shatter that one, too.

Even as some critics scoffed, Musk was steadfast.

“I just wanted to make a futuristic battle tank — something that looks like it could come out of ‘Blade Runner’ or ‘Aliens’ or something like that but was also highly functional,” he told Automotive News. He called it “a better sports car than a Porsche 911” and “a better truck than an F-150.”

It struck some as the perfect vehicular reflection of the brash, convention-busting Musk.

“A really controversial vehicle unveiled by a controversial individual into a market where none of the electric trucks have been able to really capture demand,” said Spencer Penn, a former Tesla executive who left the company before the Cybertruck’s launch and now heads software developer LightSource.

Penn remembered watching the unveiling and feeling initially revolted by the sight of the Cybertruck, calling its appearance “madness.” But the more he looked at it, the more his opinion changed. He signed up for a pre-sale reservation, though ended up not getting a Cybertruck when Musk’s promises of a price tag under $40,000 went unmet and the first trucks sold for double or more. Penn called the Cybertruck part of Tesla’s adventurous spirit that drives innovation.

“Some of these bets work and some of these bets don’t,” he said.

While the decision to end Cybertruck production may be driven by sales realities, it's also a reflection of Tesla’s shift to autonomous vehicles, on which Musk is betting the company’s future.

Musk once forecast he’d make 250,000 Cybertrucks a year. Kelley Blue Book estimated Tesla sold just 20,237 of the vehicles last year, down about half from the year prior. Sales through the end of September this year were down another 28%, according to Kelley Blue Book.

If the imposing, sharp-angled, dystopian appearance of the Cybertruck weren’t enough to turn many potential buyers away, Musk did so himself by allying with a panoply of right-wing figures, most notably U.S. President Donald Trump. He alienated some customers as his image morphed from eccentric innovator to polarizing force trading his billions for political influence.

Once-passionate Tesla drivers rushed to sell off their cars, or slapped stickers on the bumper declaring, “I bought this before Elon went crazy.” Organizers staged demonstrations outside Tesla showrooms and urged investors to dump shares of the company’s stock. Anger spilled into violence, with Molotov cocktails hurled at Tesla vehicles, charging stations set ablaze, and dealerships covered in graffiti.

Lovers of the Cybertruck became targets, too, subjected to shouts of “Nazi!” and extended middle fingers.

Ross Blankenship is one of them. When he first laid eyes on the Cybertruck, he felt transported to a world from his childhood, when he would play “Halo,” the sci-fi video game. He had to have it.

“I had that sort of child in me wanting to be part of something cool that would change the future of automotive,” Blankenship said in a call from his Cybertruck as he drove through Sunnyside, Colorado. Even as Blankenship found he agreed with Musk on politics, he hated seeing a vehicle he loved turned into a political symbol. “I never bought it for any other reason than the fascination with the future technology of trucks … so that was a little heartbreaking.”

He would buy another Cybertruck again in a heartbeat, calling its end “a sad moment.”