Americans are expected to spend $97.1B on technology gifts this year — Houston expert shares financial advice for shoppers

Guest column

From online shopping to gifting devices, technology plays a huge role in the holidays, this Houston expert says. Getty Images

Like clockwork, the holidays are here again. Black Friday, Small Business Saturday, and Cyber Monday have all successfully come and gone, but yet, many of us are still left with presents to purchase and to-do lists to complete. Houstonians are expected to spend $1,562 this holiday season completing their holiday shopping. That is up three percent from last year.

While Houstonians expect to spend over $500 on gifts for loved ones, a whopping $606 will be spent on "experiences" and $421 on non-gift items such as clothing and home furnishings as they gear up for the holiday season with parties and houseguests.

What are Americans planning to buy this holiday season? Nationwide, 74 percent of Americans are expected to spend $97.1 billion on technology gifts this holiday season. According to a survey, the number one technology gift for this year is content-related gifts such as video games or streaming services. The days of buying discs or consulting the TV Guide are long gone. Americans are looking for ways to stream music, movies, and TV shows.

Other hot technology gadgets include smart speakers, smart phones, TVs, laptops, tablets, and wearables. Smart camera doorbells, which allow residents to see who is at their door, and smart lightbulbs, which enable lighting to be controlled remotely through the internet, continue to climb the gift-giving lists.

Technology is playing a significant role in how we make our purchases. Fifty-six percent of Americans are planning to buy their holiday items online, with only 36 percent obtaining gifts and other seasonal items in brick and mortar locations. Many of us are ordering gifts right from our smart phones.

All this spending on others, while thoughtful, is bound to get some of us in financial hot water. The key is to budget. Set a budget for each person you plan to shop for, such as family members, colleagues, friends, even for service providers such as your hairstylist. Once your budget is set, stick to it. I have found that using a spreadsheet to track expenses is helpful, or good old-fashioned pen and paper works well, too. You may be surprised how quickly your expenditures add up, even the small ones. Tracking is an excellent way to stay accountable to your budget.

Last year, the average consumer racked up over $1,000 in debt as part of their holiday shopping. By budgeting wisely, you can avoid debt. While credit cards are convenient, sometimes they make it a little too easy to spend more than planned. Not staying within your budget can give you quite a spending hangover in January. To combat credit card overuse, use cash whenever possible.

Additionally, limit your shopping days. The less you visit stores or malls, the less likely you are to be tempted. Moreover, purchasing online can help you stick to your budget, just be careful not to spend more than your budget allows. Another smart strategy to cut costs is to select items with free shipping over fast shipping.

With the holidays quickly approaching, ensure you are smart about your holiday spending. Technology is a fantastic and convenient avenue for shopping. And, our smart phones have provided us another avenue in which to compare prices and look for deals. Whichever channel you choose to shop — bricks and mortar or cybershopping — ensure you stick to smart spending.

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Dominic Cellitti is a financial adviser with the Wealth Management Division of Morgan Stanley in Houston.

Think about the power of impact investing this Earth Day. Getty Images

Impact investing is shaping the future of the world, says this Houston expert

Earth day

For almost 50 years, Earth Day has been recognized as the largest civic-focused day of action in the world. Since April 22, 1970, Americans have sought out ways to be stewards of the environment through planting trees, riding a bike to work, or cleaning up a community garden. While these actions are admirable, other strategies and tools are also available that can have a positive impact on the environment.

Investors are getting behind companies that put environmental, social, and governance (ESG) factors as priorities in their operations. According to a 2018 survey by the Morgan Stanley Institute for Sustainable Investing and Morgan Stanley Investment Management, 84 percent of respondents are considering or currently pursuing ESG investing.

ESG policies may include issues such as safety policies, human rights, and climate change. These policies may not be part of the traditional financial analysis but can still have financial applications. Investors have the opportunity to financially support and affect change in companies that are taking the lead on ESG policies. This is impact investing. With impact investing, companies and individuals can shape the future with money that is already slated to be invested.

According to the Morgan Stanley survey mentioned above, more than $22.8 trillion is invested sustainably. As the impact investing movement continues to grow, we are seeing an increase in funds dedicated to social and environmental change. According to the 2018 survey, 77 percent of asset owners believe they have a responsibility to address sustainability through investing. And, 31 percent of the respondents said climate change is their leading focus.

If you are interested in incorporating impact investing into your portfolio, the first step is to choose your social and environmental investment criteria. In honor of Earth Day, you may be interested in focusing on green investing in industries or causes such as clean water and alternative energy. Or, you may be interested in investing in corporations that have made strides in environmental sustainability and clean technology.

Next, determine the best way for you to invest. Whether by debt, equity, or assets, impact investing can involve making the kinds of investment decisions that regular investors are generally making anyway, such as buying stocks and bonds in Fortune 500 companies or broadly diversified mutual funds. According to respondents in the Morgan Stanley survey, public equities and real assets, such as infrastructure and real estate, are the most attractive asset classes for sustainable investing.

A common concern with impact investing is whether investing with a strong focus on ESG will give investors a rate of return needed to meet their investment goals (i.e. retirement, college savings). According to a study by the Global Impact Investing Network, a nonprofit organization dedicated to helping break down barriers to impact investing, 82 percent of respondents said their investments made an impact and 76 percent were pleased with the financial performance. Additionally, another 15 percent reported outperformance across each of these dimensions.

As investors are pursuing ESG practices and investments, a large number of companies are continuing to incorporate measures such as water and energy conservation into their ESG policies. Corporate boards and investors are incentivizing their CEOs to provide high-quality, diverse workplaces that lead to greater employee satisfaction, retention, and productivity while having a social and environmental impact. Whether investing in organizations or corporations, impact investing provides a way for investors to tackle big problems with their money. This Earth Day, on Monday, April 22, you can identify investments that can help you achieve your financial goals as well as satisfying your desire to have an impact.

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Dominic Cellitti is a financial adviser with the wealth management division of Morgan Stanley in Houston.

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Fast-growing Houston-based geothermal energy co. secures $255M in additional funding

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A Houston company that's responding to rising energy demand by harnessing geothermal energy through its technology has again secured millions in funding. The deal brings Fervo's total funding secured this year to around $600 million.

Fervo Energy announced that it has raised $255 million in new funding and capital availability. The $135 million corporate equity round was led by Capricorn’s Technology Impact Fund II with participating investors including Breakthrough Energy Ventures, CalSTRS, Congruent Ventures, CPP Investments, DCVC, Devon Energy, Galvanize Climate Solutions, Liberty Mutual Investments, Mercuria, and Sabanci Climate Ventures.

The funding will go toward supporting Fervo's ongoing and future geothermal projects.

“The demand for 24/7 carbon-free energy is at an all-time high, and Fervo is one of the only companies building large projects that will come online before the end of the decade,” Fervo CEO and Co-Founder Tim Latimer says in a news release. “Investors recognize that Fervo’s ability to get to scale quickly is vital in an evolving market that is seeing unprecedented energy demand from AI and other sources.”

Additionally, Fervo secured a $120 million letter of credit and term loan facility from Mercuria, an independent energy and commodity group that previously invested in the company.

“In surveying power markets across the U.S. today, the need for next-generation geothermal is undeniable,” Brian Falik, group chief investment officer of Mercuria, adds. “We believe in Fervo not just because their EGS approach is cost-effective, commercially viable, and already being deployed at scale, but because they set ambitious targets and consistently deliver.”

In February, Fervo secured $244 million in a financing round led by Devon Energy, and in September, the company received a $100 million bridge loan for the first phase of its ongoing project in Utah. This project, known as Project Cape, represents a 100x growth opportunity for Fervo, as Latimer explained to InnovationMap earlier this year. As of now, Project Cape is fully permitted up to 2 GW and will begin generating electricity in 2026, per the company.

Other wins for Fervo this year include moving into its new headquarters in downtown Houston, securing a power purchase agreement with California, growing its partnership with Google, and being named amongst the year's top inventions by Time magazine.


Investors from Houston, Boston fuel Greentown with $4M commitment

seeing green

Greentown Labs, a climatetech incubator with locations in the Houston and Boston areas, has announced it has received funding from a mix of investors.

The $4 million in funding came from both of the Houston and Massachusetts locations. Houston investors included Bobby Tudor, CEO of Artemis Energy Partners and chairman of the Houston Energy Transition Initiative; David Baldwin, co-founder of OpenMinds and TEX-E and partner at SCF Partners; and Rice University. Other investors included MassDevelopment and the City of Somerville.

“The challenges of the energy transition are immense, and the role played by technology incubators like Greentown Labs is essential,” Tudor says in a news release. “We believe this role, which is a partnership between academia, industry, philanthropists, entrepreneurs, and governments, is the best way to get to effective, scalable solutions in a time frame that the urgency of the challenge requires. We need all hands on deck, and this partnership between Massachusetts and Texas can be a role model for others.”

According to Greentown, the funding will support its financial position and contribute to preparing the incubator for its next chapter of supporting its its leadership team prepare for Greentown’s next chapter supporting and growing its 575 startups.

“Greentown’s mission aligns closely with the Houston Energy Transition Initiative’s goal of accelerating global solutions to address the dual challenge of meeting growing energy demand globally while also significantly reducing CO2 emissions,” adds Steve Kean, president and CEO of the Greater Houston Partnership.

With the announcement of the funding, Greentown named its board members, including Tudor, who will serve as Greentown Labs Board Chair. The other Houston-based board members are:

  • David Baldwin, co-founder of OpenMinds and TEX-E; partner atSCF Partners
  • Bob Harvey, former president and CEO of GHP; board member of TEX-E
  • Jane Stricker, senior vice president of energy transition and executive director of HETI

“With this new funding, Greentown is poised to expand its impact across its existing ecosystems and support even more climatetech startups,” adds Kevin Dutt, interim CEO of Greentown Labs. “We believe in the essential role entrepreneurship will play in the energy transition and we’re grateful for the support of our partners who share in that belief and our collective commitment to commercializing these technologies as quickly and efficiently as possible.”

According to Greentown, the incubator plans to announce its new CEO in the coming months.

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This article originally ran on EnergyCapital.

From hiring tips to AI's impact on the workforce, here's what guest columns were the most read in 2024

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Editor's note: Every week, InnovationMap runs one or two guest columns written by tech entrepreneurs, public relations experts, data geniuses, and more. As Houston's innovation ecosystem gets ready for 2025, here are some of this year's top guest contributor pieces — each with pertinent information and advice for startups both at publishing and into the new year. Make sure to click through to continue reading each piece.

Is your New Year's resolution to start contributing? Email natalie@innovationmap.com to learn more.

How to avoid bad hiring decisions when it matters most, according to this Houston expert

Despite the inevitability of bad hires, recruiters equipped with proper tools and training can identify red flags and take preventive measures. Photo by Tima Miroshnichenko from Pexels

Written by Karen Leal, performance specialist with Houston-based Insperity, a provider of human resources offering a suite of scalable HR solutions available in the marketplace.

Hiring the right people for the right roles is ideal and can make an organization reach new heights. The reality is every business has made a bad hire.

Finding the wrong fit for a team or organization is not uncommon, but it is important to know what it costs the organization, which can be detrimental to company finances and its workplace culture, especially small businesses and startups where the impact is magnified.

The U.S. Department of Labor reports a bad hire can cost up to 30 percent of the employee’s wage, which would be approximately $18,000 since the average American wage is $60,000. In addition, there are soft costs of managers and leadership time during the hiring and training process, which adds up quickly. Continue reading.

How AI is changing product management and what you need to know

A product management expert shares how artificial intelligence is affecting the process for the tech and startup worlds. Photo via Getty Images

Written by Natasha Gorodetsky, founder and CEO of Product Pursuits, a Houston company that helps early stage and venture-backed startups build products and create impact.

For the past 14 months, everyone has been talking about ways artificial intelligence is changing the world, and product management is not an exception. The challenge, as with every new technology, is not only adopting it but understanding what old habits, workflows, and processes are affected by it.

Product managers — as well as startup founders leading a product function — more than any other role, face a challenge of bringing new life-changing products to market that may or may not be received well by their users. A product manager’s goal is complex — bring value, stay ahead of the competition, be innovative. Yet, the "behind the scenes" grind requires endless decision making and trade offs to inspire stakeholders to move forward and deliver.

As we dive into 2024, it is obvious that AI tools do not only transform the way we work but also help product managers create products that exceed customer expectation and drive businesses forward. Continue reading.

Houston expert shares 3 ways to stay on top of employee mental health

Companies that intentionally focus on their employees’ mental well-being will reap the benefits of a happier, healthier workforce. Photo via Getty Images

Written by Dennis Yung, executive vice president and general manager at Skanska.

Conversations surrounding mental health have come to the forefront of business and is an imperative aspect that cannot be ignored by business leaders.

Approximately 20 percent of Americans, which is 50 million people (about twice the population of Texas), are experiencing a mental illness, 15 percent of Americans had a substance use disorder in the past year and nearly 5 percent, over 12.1 million adults, reported serious thoughts of suicide (Mental Health America). Notably, certain professions, such as construction, exhibit higher suicide rates, (CDC). With these staggering numbers, the foundation of workplace safety extends beyond physical well-being to encompass psychological health.

The landscape has undergone a transformation, stemming from the pandemic, and the stigma of mental health concerns and seeking help has loosened. Recognizing that September is Suicide Prevention Month, below are three ways businesses of every size can actively support the mental well-being of their employees. Continue reading.

Houston expert shares 3 business trend predictions for 2024

Here are predictions for what current and emerging trends will further shape businesses in 2024. Photo via Getty Images

Written by Bryce Lindner, senior vice president and market executive, commercial banking in South Texas at Louisiana at Bank of America.

Last year was a dynamic year for businesses across all sectors. Artificial intelligence went from a novel technology to a more widely utilized business productivity tool. Many companies invested additional resources in sustainable business practices. And digital business solutions helped companies thrive.

Here are predictions for what current and emerging trends will further shape businesses in 2024. Continue reading.

How this Houston innovator is using his personal connection to ALS fuel his fight for a cure

Daniel Barvin has a neurodegenerative disease in his near future. He joined Houston-based Coya Therapeutics to help fight for a cure to the aggressively deadly ALS. Photo via Getty Images

Written by Daniel Barvin, vice president of operations and patient advocacy at Coya Therapeutics.

We can never predict how our lives will turn out, but then maybe some of us can. Genetic testing showed that I, like my grandfather, aunt, uncle and father before me, would most likely die of amyotrophic lateral sclerosis, more commonly known as ALS, and/or frontotemporal degeneration (FTD) in my 40s.

Being 36, it’s possible that fear could have overtaken my life, but instead I chose to fight for every chance to change not only my life, but the lives of millions who are suffering or may one day suffer from neurodegenerative disease.

ALS is a rare disease that robs one of their ability to control their muscles, leading them to lose their ability to walk, talk and eventually breathe. Eighty percent of cases are sporadic (of unknown origin) and 20 percent have known genetic causes. Continue reading.

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