gBETA has announced its second Houston cohort. Photo courtesy of gBETA

An early-stage startup accelerator with a national presence has announced its latest cohorts across the country. Five Houston companies have been named to the local class.

The accelerator, gBETA, is a part of Madison, Wisconsin-based gener8tor's suite of accelerators, and announced its plan to launch in Houston in September 2019. The program's inaugural cohort premiered in May and conducted the first program this summer completely virtually.

This week, gBETA named 50 startups across 10 cohorts to its fall program. Here are the five startups selected from Houston:

  • DOSS: Launched in April, DOSS uses artificial intelligence and data aggregation in the homebuying process.
  • Camelia Alise: The company creates gender-neutral skincare products to treat pseudo-folliculitis condition and has developed a specific spa curriculum for aspiring spa owners and specialists.
  • CaseCTRL: A management platform for surgeons, CaseCTRL's software-as-a-service technology uses AI and logistics to lower operational costs and simplify surgical planning.
  • Melanoid Exchange: An online platform, Melanoid Exchange is giving small minority businesses the opportunity to grow their business through eCommerce.
  • ScalaMed: The company has developed a smart prescriptions platform that provides care teams real-time information on their patients' drug management, and patients with an empowering tool that helps them take control over the prescription process.

The no-cost, equity-free program will last seven weeks and kicked off on October 1. While the program will continue to be virtual, gBETA's operations are located in Amegy Bank's Downtown Launchpad along with Impact Hub Houston and MassChallenge Texas.

"Over the past year, Central Houston has focused on establishing Downtown as a vibrant innovative center of gravity for technology and entrepreneurship in the northern node of the Houston Innovation Corridor," says Robert Pieroni, director of economic development at Central Houston, a gBETA Houston sponsor, in the news release.

"The result has been recruiting nationally-acclaimed accelerator programs, such as gener8tor, to our city and creating Downtown Launchpad, an inclusive village that offers a framework of resources for these programs and the startups and entrepreneurs involved as they seamlessly navigate through the stages of startup production. We're thrilled that gener8tor is one of Downtown Launchpad's resident partners and look forward to the impact created by the startups in the fall cohort."

gBETA Houston's Virtual Pitch Night will be held on Wednesday, Nov. 18, at 5 pm. For more information and to RSVP, click here.

gBETA kicked off its 2020 fall accelerator virtually. Photo courtesy of gBETA

gBETA has five Houston startups growing through its early-stage program virtually. Getty Images

Early-stage accelerator announces inaugural Houston cohort

now streaming

Even amid a pandemic, a Houston startup accelerator focused on local, early-stage companies has announced its new cohort and is operating its program virtually.

International accelerator gener8tor announced last fall that its early-stage program, gBETA, was coming to Houston following a $1.25 million grant approved by Houston's Downtown Redevelopment Authority. gBETA, which named its local leader and opened applications in January, now has revealed the five companies that will participate in the free, no-equity accelerator.

"This cohort was selected from among a highly competitive pool of applicants, and I'm so pleased with how they have adapted to the impacts of COVID-19 on the program and their businesses," says Eleonore Cluzel, director of gBETA Houston, in a news release.

The program kicked off April 30 and the five companies will graduate at a virtual pitch event June 18. While completely virtual this time around, the plan was to co-locate the program with MassChallenge Texas in Amegy Bank's Downtown Launchpad. The program is expecting to continue with its second cohort later this year.

"We are committed to establishing Downtown as a nexus for innovation and a leader in urban entrepreneurship and we applaud the talent of the first cohort, especially under these unprecedented circumstances," says Jonathan Brinsden, Central Houston's board chair, in a news release. "We look forward to them joining MassChallenge in the Downtown Launchpad at Amegy at Main this coming summer."

The spring 2020 gBETA cohort includes:

  • Best Bites Houston — a food tourism company that conducts exclusive food tours both in-person and virtually, exploring culture within cuisine.
  • Blown Assignments LLC — a web tool geared at improving communication between student athletes and their coaches.
  • GRIND — a sportstech company that merges sports and design to create products and services for athletic training.
  • Learn2Code.Live — a provider of computer science programming company that serves both students and teachers virtually.
  • Zent LLC — the creator of an innovative toothbrush called the Zent Flex that improves oral disease prevention and — no matter how hard a user brushes — physically limits brushing pressure to the optimal pressure.


The cohort meets virtually via Zoom web meetings. Photo courtesy of gBETA Houston

Global accelerator gener8tor's early-stage program, gBETA, plans to begin its first cohort out of the Downtown Launch Pad in April. Courtesy of Downtown Launch Pad

New-to-Houston accelerator names program director, opens applications

Starting strong

The second of two top accelerator programs that have taken a bet on Houston has announced its new program director and opened applications for its spring 2020 cohort.

Wisconsin-based gener8tor announced in September that its pre-accelerator program, gBETA, would be launching in Houston. The program follows MassChallenge, another top accelerator, premiering in Houston last year. Both accelerator programs launched in Houston thanks to a $1.25 million grant approved by the Downtown Redevelopment Authority.

Eléonore Cluzel will lead the gBETA Houston program as director, and will be the point person for the program in the region for the two annual cohorts. Previously, Cluzel worked for Business France mentoring French startups and small businesses. In her new position, she says she's excited to support founders across all industries and foster innovation.

"We're adding another resource for local founders to grow their startups and to raise money, and not have to move to Silicon Valley to do it," she says. "We will also serve as a connector, introducing founders to mentors and investors within the community and across gener8tor broader network."

Ele\u0301onore CluzelEléonore Cluzel will lead the Houston gBETA Houston program as director. Courtesy of gBETA Houston

Currently, Cluzel has regular office hours out of The Cannon's space in the Downtown Launch Pad in Amegy Tower. gBETA will co-locate with MassChallenge on a separate floor of the building, and that space is expected to be ready ahead of the start of the first cohort in April.

"It's like having a one-stop shop of resources for the whole community in a central location," Cluzel says. "Since The Cannon is going to be among several coworking spaces in the community, we'll reach all areas of Houston, including Sugar Land, The Woodlands and Stratford and other neighborhoods"

Interested early-stage startups can apply online for the program until April 10, and the cohort begins on April 30. Only five companies are selected for the cohort, insuring individualized support and programming from gBETA. The free program is designed to equip its participating startups with early customer traction and preparation for later stage accelerators.

"I'm looking for a diverse cohort, encompassing underserved communities such as women, veterans and minorities," Cluzel tells InnovationMap. "I'm seeking highly unique, highly scalable businesses based in Houston. In Houston, we have a lot of venture capital firms that write huge checks, but we don't have a lot of investors that help with early seed-stage funding. We're looking for very early stage startups whose company we can help grow and connect with our local and national network of investors."

gBETA aims to act as a funnel to other accelerator programs, Cluzel says.

"We're looking forward to working cooperatively with other resources in town, such as Plug and Play, MassChallenge, The Founder Institute, Capital Factory, The Cannon, and other incubators, accelerators and resources."

The Cannon Houston's third location is planned to open on December 9. Photo courtesy of The Cannon

Photos: The Cannon Houston's downtown space expects to open its doors early next month

ready for liftoff

A Houston entrepreneurial hub plans to open its third coworking space location only a few weeks after its main campus debuted in West Houston.

The Cannon Houston's newest location will be a 17,000-square-foot space on the top floor of The Cannon Tower at Amegy on Main in Downtown Houston. The opening date for the new space is Monday, December 9.

The announcement follows the grand opening of The Cannon's 120,000-square-foot flagship space, which is now close to being completely leased by startups and small businesses, and represents another step in the company's ambitious expansion plan.

"We've long known that we will need multiple locations across Houston in order to serve our mission of supporting Houston's entrepreneurs, and we are thrilled to work with an incredibly forward-thinking organization like Amegy to continue to fulfill this mission," says Cannon founder and president, Lawson Gow, in a news release. "The Cannon Tower at Amegy on Main will be unlike any other space in the city, in which we will be developing a 'vertical village' of innovation, programs, and resources, transforming Amegy on Main into a hub for Downtown Houston's entrepreneurs."

Gow — who is the son of David Gow, owner of InnovationMap's parent company, Gow Media — recently transitioned into his position as The Cannon named Jon Lambert as CEO earlier this month.

The Cannon's space is just one part of the equation that is the Downtown Launch Pad — a joint project between Central Houston, Downtown Redevelopment Authority, The Cannon, and Amegy Bank. The Amegy building will also house MassChallenge and gener8or, as well as event and common space for programming on the 11th floor.

"Amegy Bank is thrilled to be a part of the expansion of the innovation community by offering space, amenities, and business development support," says Kelly Foreman, Amegy Bank's senior vice president and manager of corporate real estate and facilities, in a news release. "We have a long track record of helping businesses grow, and creating this space for a hub of start-ups and accelerators is yet another way to do just that."

Moving forward, The Cannon will play a role in expanding workspace, resources, and programming in the building. The space is now open for leasing, and the first 100 members to join the new space will receive free parking for the course of their membership.

Plans for growth

Photo courtesy of The Cannon

The Cannon Houston will be a major player as the Downtown Launch Pad expands throughout the building.

At The Houston Innovation Summit's first panel of the week, representatives from The Cannon, Amergy Bank, and Central Houston discussed game-changing plans for the Downtown Launch Pad. Image courtesy of The Cannon

3 takeaways from The Houston Innovation Summit's first panel

ICYMI

The Houston Innovation Summit is in full swing, and the first panel of the week's events started strong. Representatives from The Cannon Houston, Amegy Bank, and MassChallenge took the stage at Amegy Bank's downtown office — soon to be converted into the Downtown Launch Pad — to discuss big picture topics within Houston Innovation.

Grace Rodriguez hosted the panel that covered diversity and inclusion efforts, the growth of The Cannon, and what you can expect from Launch Pad. Here's what you may have missed from the event.

The Downtown Launchpad will shake up the innovation ecosystem

Robert Pieroni, director of economic development for Central Houston and an advisory board member for MassChallenge, set the scene for Houston innovation a few year ago. Houston was overlooked for the Amazon headquarters, and it was the wakeup call Houston needed.

Now, the city, with the help of organizations like Central Houston, has attracted major top 10 accelerators in the world to town and plans to house them in the same space — the Downtown Launch Pad, which is a joint venture project between Central Houston, Downtown Redevelopment Authority, The Cannon, and Amegy Bank.

The Launch Pad will occupy a few floors in the Amegy building to start. There will be coworking and event space, as well as a floor dedicated to MassChallenge and gener8tor — the two new-to-Houston accelerators.

"We'll be the only place in the United States that has co-located two top 10 accelerators," Pieroni says.

The project also is working with an incubator yet to be announced to help bring into the fold undeserved startups and entrepreneurs in Houston, and there will also be a bootcamp targeted directly at the disadvantaged within the innovation ecosystem.

From Amegy's perspective, the bank is committed to growing the building to being something unique and effective for startups, says Andy Buchmann, vice president of corporate real estate and property management at Amegy Bank.

"We are hopeful that this is only the first two floors that we have figured out, and we hope there are other three or four that come behind it as it grows into a real hub for startups in the years to come," Buchmann says.

The Cannon's new CEO has global growth on the mind

Earlier this month, The Cannon Houston brought on Jon Lambert to serve as CEO as the company plans to grow and scale. Lambert, who joined the panel, says that the Downtown Launch Pad was well timed for The Cannon as it's looking to find the optimal areas of the city to grow.

"The distribution of the city is unlike any other in terms of the pockets of where people live and work," Lambert says, adding that The Cannon has an opportunity to reach these pockets.

Looking beyond Houston — and even Texas, the company is poised for growth by taking its model to cities — nationally and even globally — that are underserved when it comes to coworking and incubation space.

"You'd be astonished at some of the people reaching out to us," Lambert says on the panel. Some of this interest, Lambert adds, is setting up The Cannon as a global entry point for international companies looking to do business in Houston.

Inclusivity is the priority

With global initiatives and with Houston being the most diverse city in America, the city's innovation ecosystem has a great responsibility to provide inclusion, and each of the panelists maintains that their organizations have that as a top priority.

The Launch Pad is being developed with this in mind, and Pieroni says it's in the perfect place to do that. Amegy Bank has long been committed to small businesses and the building's location — across the street from METRO's Downtown Transit Center — makes it so that anyone in Houston can get to the hub.

Gener8tor and MassChallenge are also committed to providing programming at no cost, which will open doors to the entire community to get involved.

"As a part of our agreement with gener8tor, the will host free lunch and learns with the community monthly," Pieroni says. "We are working with MassChallenge to make them even more frequent."

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$100M Houston VC fund launches to back technical founders

show me the money

A new venture capital fund has launched with an initial $100 million mission of supporting founders with innovative critical infrastructure solutions.

Fathom Fund, which is looking to build out a portfolio of advanced computing, material science, climate resilience, and aerospace startups, announced they've launched with an initial close of over $100 million. The fund is founded by longtime investors Managing Partners Paul Sheng and Eric Bielke.

"We believe recent technological advances have accelerated the pace of scientific discovery, increasing the pool of technology companies that can produce venture-scale returns," Sheng says in a news release.

According to the fund, it hopes to bridge the gap for early stage capital for physical innovations and "moonshot" projects.

“What’s lacking in venture is rigorous technical diligence at the early stages and a playbook to scale these innovations at the pace necessary to lead industries," Bielke adds. "With this launch, we are looking forward to supporting founders with some of the most disruptive and novel ideas.”

The founder duo will bring each of the career expertise to their future portfolio companies. Sheng spent decades at McKinsey & Co and was the firm's head of the Global Energy & Materials practice. Bielke is a former director at Temasek’s Emerging Technologies Fund.

Houston is the 4th best U.S. city for Black professionals, report finds

Black History Month

In acknowledgement of Black History Month 2024, a new report compiled by Black employees at online rental marketplace Apartment List has ranked Houston the No. 4 best U.S. city for Black professionals.

Apartment List reviewed 76 cities across four major categories to determine the rankings: community and representation; economic opportunity; housing opportunity; and business environment.

Houston earned a score of 63.01 out of a total 100 points, making it the second-highest-ranked city in Texas for Black professionals, behind San Antonio (No. 3).

The city earned top-10 rankings in three out of the four main categories:

  • No. 3 – Business environment
  • No. 4 – Community and representation
  • No. 10 – Economic opportunity
  • No. 21 – Housing opportunity

Houston is commended for its strong Black business environment and economy, but there is some room for improvement when it comes to housing. Similarly to Apartment List's 2022 report – which also placed Houston at No. 4 – a little less than half (44 percent) of all Black Houston households are spending over 30 percent of their income on housing, which has increased two percent since 2019.

Houston has a larger Black population than San Antonio, at 19 percent, but its Black population share is overall lower than other cities in the top 10.

"Furthermore, the community is well-represented in some critical occupations: 20 percent of teachers are Black, as are 21 percent of doctors," the report said. "Houston is also home to the HBCU Texas Southern University, helping a job market when the median Black income is several thousand dollars above average."

Houston also has the highest rate of Black-owned businesses in the entire state, at 18 percent.

"From the Mitochondria Gallery to Ten Skyncare and Wisdom’s Vegan Bakery, Houston has it all!" the report said.

Here's how Houston stacked up in other metrics:

  • Black homeownership: 42 percent
  • Black lawyers: 14 percent
  • Black managers: 14 percent

Elsewhere in Texas
Texas cities dominated the overall top 10. San Antonio ranked just above Houston, with Dallas (No. 6) and Austin (No. 7) not too far behind.

San Antonio came in less than 2.5 points ahead of Houston with a total score of 65.44 points. The report praised San Antonio's scores across its economic opportunity (No. 2), housing opportunity (No. 7), and community and representation (No. 10). The city ranked No. 20 for its Black business environment.

But like Houston, San Antonio also fell behind in its Black homeownership rates, according to the study.

"While the Black homeownership rate is higher than average at 44 percent, the homeownership gap (Black homeownership rate - non-Black homeownership rate) quite low at -19 percent," the report's author wrote. "Perhaps this could be explained by San Antonio’s overall homeownership rate, which is also lower than the state’s average. Additionally, the lower homeownership gap could explain the cost burden rate also being lower than average at 41 percent."

The top 10 cities for Black professionals are:

  • No. 1 – Washington, D.C.
  • No. 2 – Atlanta, Georgia
  • No. 3 – San Antonio, Texas
  • No. 4 – Houston, Texas
  • No. 5 – Palm Bay, Florida
  • No. 6 – Dallas, Texas
  • No. 7 – Austin, Texas
  • No. 8 – Colorado Springs, Colorado
  • No. 9 – Lakeland, Florida
  • No. 10 – Charlotte, North Carolina
The full report and its methodology can be found on apartmentlist.com.

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This article originally ran on CultureMap.

Houston expert: Can Houston replicate and surpass the success of Silicon Valley?

guest column

Anyone who knows me knows, as a Houston Startup Founder, I often muse about the still developing potential for startups in Houston, especially considering the amount of industry here, subject matter expertise, capital, and size.

For example, Houston is No. 2 in the country for Fortune 500 Companies — with 26 Bayou City companies on the list — behind only NYC, which has 47 ranked corporations, according to Fortune.

Considering layoffs, fund closings, and down rounds, things aren’t all that peachy in San Francisco for the first time in a long time, and despite being a Berkeley native, I’m rooting for Houston now that I’m a transplant.

Let’s start by looking at some stats.

While we’re not No. 1 in all areas, I believe we have the building blocks to be a major player in startups, and in tech (and not just energy and space tech). How? If the best predictor of future success is history, why not use the template of the GOAT of all startup cities: San Francisco and YCombinator. Sorry fellow founders – you’ve heard me talk about this repeatedly.

YCombinator is considered the GOAT of Startup Accelerators/Incubators based on:

  1. The Startup success rate: I’ve heard it’s as high as 75 percent (vs. the national average of 5 to 10 percent) Arc Search says 50 percent of YC Co’s fail within 12 years – not shabby.
  2. Their startup-to-unicorn ratio: 5 to 7 percent of YC startups become unicorns depending on the source — according to an Arc Search search (if you haven’t tried Arc Search do – super cool).
  3. Their network.

YC also parlayed that success into a "YC Startup School" offering:

  1. Free weekly lessons by YC partners — sometimes featuring unicorn alumni
  2. A document and video Library (YC SAFE, etc)
  3. Startup perks for students (AWS cloud credits, etc.)
  4. YC co-founder matching to help founders meet co-founders

Finally, there’s the over $80 billion in returns, according to Arc search, they’ve generated since their 2005 inception with a total of 4,000 companies in their portfolio at over $600 billion in value. So GOAT? Well just for perspective there were a jaw-dropping 18,000 startups in startup school the year I participated – so GOAT indeed.

So how do they do it? Based on anecdotal evidence, their winning formula is said to be the following well-oiled process:

  1. Bring over 282 startups (the number in last cohort) to San Francisco for 90 days to prototype, refine the product, and land on the go-to-market strategy. This includes a pre-seed YC SAFE investment of a phased $500,000 commitment for a fixed min 7 percent of equity, plus more equity at the next round’s valuation, according to YC.
  2. Over 50 percent of the latest cohort were idea stage and heavily AI focused.
  3. Traction day: inter-portfolio traction the company. YC has over 4,000 portfolio companies who can and do sign up for each other’s companies products because “they’re told to."
  4. Get beta testers and test from YC portfolio companies and YC network.
  5. If they see the traction scales to a massively scalable business, they lead the seed round and get this: schedule and attend the VC meetings with the founders.
  6. They create a "fear of missing out" mentality on Sand Hill Road as they casually mention who they’re meeting with next.
  7. They block competitors in the sector by getting the top VC’s to co-invest with then in the seed so competitors are locked out of the A list VC funding market, who then are up against the most well-funded and buzzed about players in the space.

If what I've seen is true, within a six-month period a startup idea is prototyped, tested, pivoted, launched, tractioned, seeded, and juiced for scale with people who can ‘make’ the company all in their corner, if not already on their board.

So how on earth can Houston best this?

  1. We have a massive amount of businesses — around 200,000 — and people — an estimated 7.3 million and growing.
  2. We have capital in search of an identity beyond oil.
  3. Our Fortune 500 companies that are hiring consultants for things that startups here that can do for free, quicker, and for a fraction of the extended cost.
  4. We have a growing base of tech talent for potential machine learning and artificial intelligence talent
  5. A sudden shot at the increasingly laid off big tech engineers.
  6. We have more accelerators and incubators.

What do we need to pull it off?

  1. An organized well-oiled YC-like process
  2. An inter-Houston traction process
  3. An "Adopt a Startup" program where local companies are willing to beta test and iterate with emerging startup products
  4. We have more accelerators but the cohorts are small — average five to 10 per cohort.
  5. Strategic pre-seed funding, possibly with corporate partners (who can make the company by being a client) and who de-risk the investment.
  6. Companies here to use Houston startup’s products first when they’re launched.
  7. A forum to match companies’ projects or labs groups etc., to startups who can solve them.
  8. A process in place to pull all these pieces together in an organized, structured sequence.

There is one thing missing in the list: there has to be an entity or a person who wants to make this happen. Someone who sees all the pieces, and has the desire, energy and clout to make it happen; and we all know this is the hardest part. And so for now, our hopes of besting YC may be up in the air as well.

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Jo Clark is the founder of Circle.ooo, a Houston-based tech startup that's streamlining events management.