3 Houston innovators to know this week

who's who

Marc Nathan, Meredith Wheeler, and Maggie Segrich are this week's Houston innovators to know. Courtesy photos

Passion is usually the motivator for starting a business, and this week's innovators to know have an undeniable passion for what they are doing.

Marc Nathan is passionate about Texas startups — it's why he started and still maintains a comprehensive newsletter of Texas innovation news. Meanwhile, Maggie Segrich and Meredith Wheeler are passionate about bringing together a community of women with Sesh Coworking.

Here's more of what you need to learn about this week's innovators to know.

Marc Nathan, vice president of client strategy at Egan Nelson and publisher of Texas Squared

Marc Nathan shares how he's seen the city of Houston's innovation world change dramatically over the past few decades. Photo courtesy of Marc Nathan

While he technically lives in Austin now, Marc Nathan is extremely proud of his Houston heritage. A third generation Houstonian, Nathan worked as an entrepreneur before getting involved with the Houston Technology Center. The University of Texas alum's current role at Egan Nelson — an Austin-based, startup-focused law firm, that brought him back to Austin a few years ago.

As much of a Houstonian at heart he is, Nathan is a major player in the entire Lone Star State's innovation world. He publishes a weekly newsletter, called Texas Squared, that he hopes can connect the dots between Texas's four innovation ecosystems — Dallas, Austin, San Antonio, and Houston, or DASH, as he likes to call them.

"I can tell you 10 years ago being an innovation person in Houston, I couldn't have told you anything about what was going on in Dallas or Austin," Nathan says on the most recent episode of the Houston Innovators Podcast. "Now, we're seeing a lot more collaboration among cities, and I think it's very important and useful."

Meredith Wheeler and Maggie Segrich, co-founders of Sesh Coworking

Meredith Wheeler and Maggie Segrich founded Sesh Coworking after years of working from home and feeling the need for a community. Photo courtesy of Sesh

Working from home can be extremely isolating, but Meredith Wheeler found the "bro culture" of coworking off putting. For years she craved a female-focused community, and now with her business partner, Maggie Segrich, she's created exactly that with Sesh Coworking.

"We come at the creation of this space and the running of this community from the female experience," Wheeler tells InnovationMap. "Most coworking spaces, when they are run only by men, it's natural that they are coming from their perspective and experience."

The coworking space in Montrose officially opened for business on Feb. 3. Sesh has memberships and day passes available for anyone who wants to cowork, but the space is designed from the female perspective.

"For me, starting Sesh is kind of like giving women that space and opportunity to let their guard down, and feel like they can be their actual selves," Segrich says.

Marc Nathan shares how he's seen the city of Houston's innovation world change dramatically over the past few decades. Photo courtesy of Marc Nathan

Lifelong Houstonian weighs in on growth within the city's innovation ecosystem over the past 20 years

HOUSTON INNOVATORS PODCAST EPISODE 17

Houston's innovation ecosystem might not have a bigger advocate based in Austin than Marc Nathan. The third generation Houstonian is one of the few people to see the city go through its highs and lows as a developing innovation ecosystem over the past few decades.

While his full-time job is working in marketing for Egan Nelson, an Austin-based, startup-focused law firm, Nathan's greatest contribution to the Texas startup scene is his weekly newsletter, Texas Squared, that gathers up the Lone Star State's innovation and startup news.

Nathan also used to work at the Houston Technology Center years before it converted into Houston Exponential and focused specifically on helping startups raise money.

"Finding money was relatively difficult, and it's not any easier now," Nathan says on this week's episode of the Houston Innovators Podcast. He notes that organizations like the Houston Angel Network and local venture capital firms like Mercury Fund have made a huge difference.

A lot has changed within Houston, Nathan says. There's more startups, money, and press around Houston innovation. He's also seeing more collaboration between the Texas cities he calls DASH —Dallas, Austin, San Antonio, and Houston.

"I can tell you 10 years ago being an innovation person in Houston, I couldn't have told you anything about what was going on in Dallas or Austin," Nathan says on the podcast. "Now, we're seeing a lot more collaboration among cities, and I think it's very important and useful."

Nathan discusses his experience in both Houston and Austin's startup scene, and where he sees this collaboration going. Plus, he weighs in on The Ion, the merge between Capital Factory and Station Houston, funding and accelerator trends, how to make the most out of SXSW and more.

Listen to the full episode below — or wherever you get your podcasts — and subscribe for weekly episodes.

From friends and family rounds to how to navigate a seed round, here's what you need to know about raising money in Texas. Getty Images

Here's what you need to know if you're raising a seed round in Texas

Guest column

In the vast majority of startups we've worked with across Texas, their "seed round" is not the first money in the door. That money is often called a "Friends & Family Round" and it's usually from people so close to the entrepreneurs that they are willing to take a gamble before there is really even much "there" to invest in. It also might include bootstrap funds put in by the entrepreneurs themselves.

After an F&F Round, Texas startups will pursue a "seed round," which generally includes some angel investors in the local and broader ecosystem. A problem we occasionally run into is that Texas entrepreneurs, including those in Houston, will get bad advice on what the right structures are for this kind of deal; either because they are reading a blog post from Silicon Valley (where things work VERY differently) or they're talking to someone marketing themselves as an "adviser" when their advice doesn't have much substantive deal experience backing it.

If your seed round is under $1 million, you will most likely structure it as a convertible note with a valuation cap and a 2 to 3 year maturity. Convertible notes are extremely slimmed down investment instruments that angel investors across Texas will be very familiar with. Usually, the "deal" in a convertible note round is that investors will get minimal up-front rights, in order to streamline early decision-making and keep legal costs down for negotiation, but they will get back-end protections like debt treatment if the company goes south. They will also almost always get a valuation cap and/or a discount on the price that future VCs pay, as recognition for the extra risk the seed investors are taking relative to later investors.

Once seed rounds get above $1 million, a more robust equity (stock) based investment structure starts to make more sense. There are two types of equity rounds, broadly speaking: seed equity and full VC-style equity. The latter involves a large set of heavily negotiated documents with robust investor protections, and is the structure most often utilized for a Series A (after seed). The former (seed equity) is a slimmed down version of full VC docs designed to give investors some rights, but keep negotiation costs (including legal fees) within a range that's reasonable for the smaller amount of money being raised. Investors vary as to whether they will accept simpler seed equity docs, or require you to give them full VC-style protections.

Given the diversity of investor expectations and contexts you're likely to run into in structuring a seed round, and the very high-stakes (and permanent) implications of the contracts you're going to sign, it's extremely important that advisers you work with have specialized experience in these kinds of deals.

In the case of lawyers specifically, it's also extremely important that they not have conflicts of interest with the investors you are raising money from. We too often see clever investors nudge entrepreneurs toward utilizing the investor's preferred law firm. Anyone with an ounce of honesty and experience can see why that's a problem.

Make sure you understand the high-level concepts and structures that are within the norms of your startup ecosystem, and then work with experienced, trustworthy advisors to translate everything into a deal that makes sense for your company's unique context.

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Jose Ancer is an emerging companies partner at Egan Nelson LLP. He also writes for Silicon Hills Lawyer, an internationally recognized startup/vc law blog focused on entrepreneurs located outside of Silicon Valley, including Texas.

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Rice University announces partnership with Houston sports tech startup to enhance student athletics

dream team

Rice University — in an effort to enhance athletics and research-driven innovation — has formed a partnership with a startup founded by its alumni.

BeOne Sports, a sports performance technology company developed a platform for mobile motion-capture AI and advanced data analytics, will integrate its technology within Rice's sports medicine and rehabilitation programs.

“This partnership aligns perfectly with Rice University’s mission to harness innovation for the betterment of our community,” Rice President Reginald DesRoches says in a news release. “By integrating cutting-edge technology from BeOne Sports with our already world-class athletic and academic programs, we are providing our student athletes with the tools they need to excel both on the field and in life. This collaboration is a testament to Rice’s commitment to leading through innovation and offering unparalleled opportunities for our students.”

Rice MBA alumni Scott Deans and Jason Bell founded the company alongside former Rice student-athlete James McNaney. BeOne's “Comparative Training” technology uses artificial intelligence and computer vision technology to support elite-level training, per the Rice release.

“BeOne Sports was born from the collaborative environment at Rice, where business leaders and engineers work together to solve real-world problems” Deans, who serves as CEO of BeOne Sports, adds. “We’re thrilled to continue that journey with Rice Athletics as we build the world’s first human recognition models specifically designed for sports performance and beyond. Our mission is to provide cutting-edge technology to maximize potential in the simplest, fastest and most versatile ways possible. This partnership with Rice is an exciting step toward democratizing access to sports technology for athletes and coaches at all levels.”

Tommy McClelland, vice president and director of athletics, says the new technology will allow enhanced athlete monitoring that will contribute to rehabilitation and injury prevention.

“At Rice Athletics, we are always striving to be at the forefront of innovation, and our partnership with BeOne Sports exemplifies that commitment,” he says. “By leveraging their state-of-the-art AI technology and data analytics, we can elevate how we support and develop our athletes — ensuring they are healthier, stronger and better prepared to succeed both athletically and academically. We’re excited about how this collaboration will position Rice as a leader in athlete care and performance.”

Additionally, the partnership will create academic and professional development opportunities for students, faculty, and other Rice community members, something that Rice's Office of Innovation seeks to offer in its continuing dedication to fostering an ecosystem of innovation, says Paul Cherukuri, Rice’s chief innovation officer.

“BeOne Sports exemplifies the innovative spirit we champion at Rice, where entrepreneurship and engineering excellence converge,” he says. “As a startup founded by former Rice MBA students and athletes in collaboration with our computer science engineers, BeOne reflects Rice’s dedication to cultivating talent and driving transformative change. This partnership showcases how our innovation ecosystem is expanding beyond business into athletics, creating new opportunities that benefit both our students and the world at large.”

Houston legal tech platform raises $8M series A, plans to hire

fresh funding

Houston-based DocJuris, a leader in AI contract review, announced the successful closure of its series A funding round by raising $8 million in new capital. This brings the total capital raised to date to $11.2 million.

"DocJuris AI has become an industry-leading platform that empowers enterprise legal, procurement, and sales teams to close deals faster while reducing risk," DocJuris CEO and Founder Henal Patel says in a news release. "With this funding, we will continue scaffolding our platform around generative AI, expand our customer success team, and grow our user base."

The most active venture capital firm in Texas Silverton Partners led the round with participation from previous investors Watertower Ventures, Surface Ventures, and Seed Round Capital.

Companies like Siemens, Dell, FedEx, Toyota, and Duke Energy already use DocJuris with its AI-powered contract negotiation software that automates imporrant tasks during the review, redlining, and negotiation of contracts. DocJuris uses a platform to screen third-party contracts in seconds, can redline clauses with playbook-compliant edits in one click, and also generate formatted track changes, exception tables, and amendments with a cloud-based application.

The Association of Corporate Counsel, awarded DocJuris the Value Champion Award in 2023 due to the reduced contract cycle times to minutes with AI.

“We wanted to replace repetitive, manual tasks and free up valuable time for our employees to focus on more impactful work,” lead attorney for Flex's Global Procurement and Supply Chain Iringo Csifo-Nagy adds. “To achieve this, we developed a turnkey solution for AI-driven contract reviews together with the DocJuris team."

In its first round of funding in 2021, DocJuris raised $3.2 million in seed capital.

Houston Intercontinental Airport's innovative upgrades ready for takeoff

coming soon

After almost five years of construction, passengers heading out of Bush Intercontinental Airport on October 22 will be the very first to experience the expanded, upgraded, and stylish Terminal D-West Pier, an expansion of the existing Terminal D.

The new terminal is part of a broader initiative, the IAH Terminal Redevelopment Program (ITRP), a $1.458 billion project aimed at modernizing the airport's international travel capabilities. ITRP is the single largest capital improvement project developed by Houston Airports and include the refresh of the existing Terminal D, completed in 2023; the expansion of Terminal D with a new D-West Pier, which will be completed this fall 2024; and a new International Central Processor, slated for winter of 2024 and summer of 2025. More than 3,000 people spent more than one million hours on the construction project.

Terminal D-West Pier features six new gates — D1 through D6 — that can simultaneously accommodate wide-body aircraft or converted to accommodate 10 narrow-body airplanes. The expanded terminal with its new capabilities supports increasing demand from passengers and airlines and should enhance the overall travel experience.

In addition to adding 160,000-square-feet, the new wing also boasts eight new, Houston-inspired works by local artists. Those kind of details are why the Houston airport system won Best Airport Art & Entertainment Program in the prestigious Skytrax awards.

The airport's 250 newly-hired employees will work among 16 new retail and dining concessions concepts in the Terminal D-West Pier. Passengers can dine at Houston Supply Co., which opened last month. Local restaurants The Kitchen and The Annie, along with popular national brands Popeyes, Einstein Bros. Bagels, Jamba Juice, Be Relax, Jetero Market, Semi-Sweet Confectionary, and a Lego Store will open for business on October 22.

The new wing also boasts eight new, Houston-inspired works by local artists. Photo courtesy of Houston Airports

"We are focused on improving the overall passenger experience at the airport — from parking and traffic to providing modern terminals with the right amenities. This project is a major investment in our city's future," Houston Mayor John Whitmire said in a statement. "The newly expanded international terminal enhances Houston's reputation as a world-class city and provides a boost to our economy, supporting jobs and attracting more visitors from around the globe."

The new terminal offers a host of other amenities designed to make passengers' experiences more comfortable. They include a mother's room, a sensory room, a child's play area, and expanded men's, women's, and family restrooms. The restrooms utilize smart technology sensors that trigger soap and water. Door locks alert to whether a restroom stall is vacant or occupied and soft LED lighting accentuates floor-to-ceiling photography spotlighting Houston's natural beauty.

The new wing has 16 new retail and dining concessions concepts. Photo courtesy of Houston Airports

An International Arrivals corridor provides views of the airfield, the concourse, and large-scale photography inspired by Houston.

More than 500 modern and comfortable seats, including chairs, cushioned benches, and cozy loungers, featuring cup holders and charging capabilities, are present inside the terminal.

"We are excited to share this milestone with the residents of Houston," said Jim Szczesniak, director of aviation for Houston Airports. "The opening of the Terminal D-West Pier is a testament to the hard work and dedication of our team and our partners. This world-class facility will provide a seamless and efficient travel experience for millions of passengers each year. The new pier will provide the necessary capacity so that Houston can continue to attract more nonstop flights to cities around the globe."

New features include a mother's room, a sensory room, a child's play area, and expanded men's, women's, and family restrooms. Photo courtesy of Houston Airports

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This article originally ran on CultureMap.

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