Juliana Garaizar is now the chief development and investment officer at Greentown Labs, as well as continuing to be head of the Houston incubator. Image courtesy of Greentown

The new year has brought some big news from Greentown Labs.

The Somerville, Massachusetts-based climatetech incubator with its second location at Greentown Houston named a new member to its C-suite, is seeking new Houston team members, and is in the process of transitioning into a nonprofit.

Juliana Garaizar, who originally joined Greentown as launch director ahead of the Houston opening in 2021, has been promoted from vice president of innovation to chief development and investment officer.

"I'm refocusing on the Greentown Labs level in a development role, which means fundraising for both locations and potentially new ones," Garaizar tells InnovationMap. "My role is not only development, but also investment. That's something I'm very glad to be pursuing with my investment hat. Access to capital is key for all our members, and I'm going to be in charge of refining and upgrading our investment program."

While she will also maintain her role as head of the Houston incubator, Greentown Houston is also hiring a general manager position to oversee day-to-day and internal operations of the hub. Garaizar says this role will take some of the internal-facing responsibilities off of her plate.

"Now that we are more than 80 members, we need more internal coordination," she explains. "Considering that the goal for Greentown is to grow to more locations, there's going to be more coordination and, I'd say, more autonomy for the Houston campus."

The promotion follows a recent announcement that Emily Reichert, who served as CEO for the company for a decade, has stepped back to become CEO emeritus. Greentown is searching for its next leader and CFO Kevin Taylor is currently serving as interim CEO. Garaizar says the transition is representative of Greentown's future as it expands to a larger organization.

"Emily's transition was planned — but, of course, in stealth mode," Garaizar says, adding that Reichert is assisting in the transition process. "She thinks scaling is a different animal from putting (Greentown) together, which she did really beautifully."

Garaizar says her new role comes alongside Greentown's return to nonprofit status. She tells InnovationMap that the organization originally was founded as a nonprofit, but converted to a for-profit in order to receive a loan at its first location. Now, with the mission focus Greentown has and the opportunities for grants and funding, it's time to convert back to a nonprofit, Garaizar says.

"When we started fundraising for Houston, everyone was asking why we weren't a nonprofit. That opened the discussion again," she says. "The past year we have been going through that process. ...I think it's going to open the door to a lot more collaboration and potential grants."

Greentown is continuing to grow its team ahead of planned expansion. The organization hasn't yet announced another location — Garaizar says the primary focus is filling the CEO position first. In Houston, the hub is also looking for an events manager to ensure the incubator is providing key programming for its members, as well as the Houston innovation community as a whole.

Rice University and Houston Methodist have teamed up to fund life science research — and more Houston innovation news you need to know. Image courtesy of Rice

Houston health startups make most promising list, clean energy co. wins award, and more news

short stories

Houston startup news has still been full speed ahead, despite the year coming to a close, and there might be some headlines you may have missed.

In this roundup of short stories within Houston startups and tech, a climatetech leader steps down, two digital health companies have been recognized internationally, and more.

Two Houston startups land on most-promising health tech list

Houston has some representation on this year's Digital Health 150. Image via CB Insights

CB Insights released The Digital Health 150, an annual ranking of the 150 most promising digital health startups in the world, last week and two Houston companies made the cut. Houston-based companies Koda Health and Starling Medical were two of the eight Texas startups on the list.

Founded in 2020, Koda Health is a B2B Enterprise SaaS solution that guides patients through the process of proactive healthcare planning and document authentication. The company has been expanding its service across the country this year following a seed round of funding in February.

"Each year, 150 winners are selected from a pool of over 13,000 companies," Koda's CEO and Co-Founder Tatiana Fofanova tells InnovationMap. "Honorees have quickly become industry titans and household names, so we were honored — and frankly, surprised! — to be recognized in this year's group of honorees.

"I've personally taken inspiration from the Digital Health 150 for years now ± these are people and companies we've emulated and aspired to — so to see the Koda Health logo on there was incredibly affirming," she continues.

Starling Medical is using AI and telehealth enabled medical devices to enable millions with bladder dysfunctions to be able to urinate safely and conveniently again. The company has been named most promising by the Rice Alliance as well, and a top 10 company by MassChallenge.

Optellum, a United Kingdom-based company focused on lung cancer diagnostics, also made the list. They have their United States-based operations in Houston. Additionally, seven startups on the list — Babyscripts, Cerebriu, Iterative Health, Kintsugi, Mindtrace, Redox, and Lightbeam — have ties to TMC.

This is the fourth annual Digital Health 150, and this new cohort has already raised approximately $5.6 billion in aggregate funding across 378 deals since 2017, according to CB Insights.

Houston startup snags win at the 'Oscars' of energy industry

Syzygy Plasmonics was recognized for being an outstanding energy transition company. Photo via LinkedIn

At the 24th annual Platts Global Energy Awards gala, S&P Global Commodity Insights honored industry excellence across 19 categories. Described as the "Oscars" of energy, the program "recognizes corporate and individual innovation, leadership, and performance in the energy and petrochemicals industry," according to a news release.

"We are proud to recognize the leadership and innovation of this year's finalists and winners of the Platts Global Energy Awards," says Saugata Saha, president of S&P Global Commodity Insights, in the release. "These companies have demonstrated a commitment to excellence while serving customers and enabling a balanced energy transition, a key area of focus for the industry and our teams at S&P Global Commodity Insights."

Houston-based alternative energy company, Syzygy Plasmonics, took home a win for the "Energy Transition Technology of the Year Award." Syzygy, which recently raised a $76 million series C round, has a technology that harnesses the power of light to energize chemical reactions — rather than the traditional process that is fueled by heat. The Syzygy approach reduces feedstock waste and produces fewer emissions when powered by renewable electricity.

Greentown Labs CEO steps down

In her capacity as Greentown Labs CEO, Emily Reichert cut the ribbon on Greentown Houston over a year and a half ago. Photo by Lee Bond/Greentown Labs

The leader of Somerville, Massachusetts-based Greentown Labs, which has its only other location in Houston, has stepped down after a decade at the helm of the climatetech incubator.

In an email to the Greentown Labs community, Emily Reichert confirmed that she has stepped down as CEO and will remain involved as "CEO Emeritus." The organization's CFO, Kevin Taylor, has picked up more leadership responsibilities in the interim.

"As I hand the baton off to the next leader of Greentown Labs, I’m confident in our community’s ability to continue making an enormous impact deploying climatetech solutions and our team’s ability to continue growing Greentown to be an ever-more-impactful space for climatetech entrepreneurs and collaborators," Reichert says in the email.

Rice backs new research collaborations with Houston Methodist

Rice University and Houston Methodist have again teamed up to support life science research. Photo via rice.edu

Two Houston organizations — Rice University and the Houston Methodist Academic Institute — have created a seed grant program and awarded grants for research in robotics, imaging, cardiovascular bioengineering, and more. Twenty multi-year projects will be supported by both Houston Methodist and Rice, according to a news release.

It's the third collaborative program between the two organizations in less than two years.

“Our collaborations with Houston Methodist will impact human health and wellness, foster new research opportunities and advance our understanding of diseases," says Rice Provost Amy Dittmar in a news release.

The projects within the nursing category have not been announced, but the awards for the other categories have been named online.

Greentown Labs announced its latest accelerator program — this one is focused on DEI in clean energy innovation. Photo via GreentownLabs.com

Greentown Houston announces co-located accelerator for energy innovators of color

browning the green space

Greentown Labs has announced its latest accelerator program that will be co-located in both its Houston and Boston-area spaces.

In partnership with Browning the Green Space, Greentown Labs has officially launched the Advancing Climatetech and Clean Energy Leaders Program, or ACCEL, and is seeking applications from climatetech entrepreneurs who identify as Black, Indigenous, and/or People of Color.

The startups accepted into the year-long program will receive a curated curriculum, incubation at one of the Greentown locations, and mentorship from its large network of energy professionals. Each participant will also receive a non-dilutive $25,000 grant. Applications for ACCEL are open now and are due by Dec. 23

“We need all hands on deck to solve the climate crisis and foster a just energy transition,” says Emily Reichert, CEO of Greentown Labs, in a news release. “We are proud to partner with Browning the Green Space on this important program, and are eager to support more underrepresented founders through ACCEL to help build a more diverse, inclusive, and equitable climatetech industry.”

BGS is a nonprofit that is focused on making clean energy other climate-related fields more diverse, equitable, and inclusive. The organization is headquartered in Boston.

“We are excited to work in partnership with Greentown Labs to build critical support infrastructure for entrepreneurs of color and accelerate the equitable development and distribution of climate solutions across all communities,” says Kerry Bowie, executive director and president of Browning the Green Space, in the release. “ACCEL will help us move closer to where we all should be collectively, and create the opportunity to change the face of clean energy as we know it.”

The new program is also supported the Massachusetts Clean Energy Center, a state economic development agency dedicated to accelerating the growth of the clean energy sector across the Commonwealth, and then Boston-based Barr Foundation, a foundation with a regional focus, working in partnership with partners to elevate the arts, advance solutions for climate change, and connect all students to success in high school and beyond, per the news please.

“The Barr Foundation’s climate program has made a commitment to centering racial equity in the energy transition,” says Kathryn Wright, senior program officer of Clean Energy at The Barr Foundation, in the release. “We are excited to support this crucial opportunity to provide education and mentorship for underrepresented climate entrepreneurs in our region. We look forward to seeing the impact of the ACCEL program in the coming years.”

The curriculum for ACCEL will be led by Hadley, Massachusetts-based VentureWell, a nonprofit that funds and trains innovators to create successful, socially beneficial businesses. Applicants may be based anywhere in the world, but will be expected to attend in-person elements of the program at either Greentown Boston or Greentown Houston.

Greentown Houston's Juliana Garaizar and Emily Reichert look back on the climatetech incubator's first year. Photos via greentownlabs.com

How Greentown Houston accelerated the local energy transition in its inaugural year

q&a

This Thursday, Greentown Houston officially celebrates the completion of its first year in town, as well as the impact its made in just the 365 days since its grand opening.

Emily Reichert, CEO of Greentown Labs, officially cut the ribbon on the organization's first location outside of the Boston area last Earth Day. Reichert, along with Juliana Garaizar, head of the Houston incubator and vice president of innovation, joined InnovationMap for a Q&A looking back on this past year — including what surprised them most and where members are moving in from.

Greentown Houston's anniversary event is Thursday, April 21, from 1 to 7 pm, at Greentown Houston (4200 San Jacinto St.) or livestreaming online. Click here to learn more.

InnovationMap: Looking back on the first year of Greentown Houston, what was the thing that most surprised you about the process and the community you created here?

Juliana Garaizar: What really surprised me the most was the eagerness to be a part of Greentown. We were very surprised by the pandemic — it caught us in, in the middle of fundraising and we thought things were gonna slow down and actually it became sort of a of a blessing in disguise for the community here in Houston. The Boston community had to go virtual, and then when they did, we realized that we were much more connected to the Boston team, but also why can't we offer the same services to the Houston community since we didn't have a building yet anyway. That created a huge opportunity to convene a community even before our building. We had these early access members and when we finally opened our building, they all converted to in-person members because they had already felt what the community could bring. In Boston, they took a little longer to fill in the space at opening, but we came in at grand opening with our inaugural member list in Houston — all of them super eager to join us. That conversion happened so fast happened because of the virtual aspect of COVID.

Emily Reichert: For me, there were really three things that were surprising. Throughout the whole process of building the momentum towards Greentown Houston and from the very first meetings I had with the GHP and potential supporters of a future Greentown Labs, there was this warmth of welcome. I can't compare it to anything else. Houston just really embraced this opportunity, embraced Greentown labs, and embraced our team — as well as really embracing having a climate tech incubator located in what has traditionally been called the oil and gas capital of the world. I just wanna note that that is very meaningful and it just shows that when Houston gets behind something, Houstonians go all the way they are committed and they take action. And we just felt that from the very beginning,

Second, I think that the momentum of the energy transition itself surprised us, but also felt it felt to us like we were riding a wave that wasn't just about Greentown Houston. It was about all of these different businesses, business leaders civic leaders, and just general citizenry in Houston understanding that the future of energy is different than the past of energy. And that, that was something that was going to need to happen more quickly than folks had anticipated. And again, I feel like Houstonians are leaning into it and thinking about, "well, if we've been the energy capital of the world, can we now be the energy transition capital of the world and how do we do that?" The speed with which this transition is happening is just incredible. And, increasingly in the circles that I move in outside of Houston, people know about it. It's changing the outside perspective as well. That's been really exciting to see.

Finally, the amount of talent that exists in the energy industry and in general in Houston and in the local universities that can be deployed and is interested in being deployed in climate tech and addressing climate change and the energy transition — it's really remarkable. Whenever we have a job posting out there for Greentown Houston, we are getting a lot of applicants. And now when we're going to universities to engage with students around — whether they're interested in building a startup that could address a challenge in the energy transition — it's just overwhelming the interest, the excitement, and the level of talent that I think is going to be available to apply to this energy transition that Houston can absolutely lead.

IM: Greentown Houston has not only attracted Houston-based companies, but also companies outside of Houston that want to be able to take advantage of Greentown Labs and the support there. You have both virtual and in-person membership options. Tell me a little bit about how that came to be.

JG: This was something also that the pandemic exacerbatedAgain, if you compare Boston to Houston — Boston is much more difficult to find prototyping lab space and wet labs. I would say that the cost of space is much higher there than in Houston. You there's plenty of space available for coworking, for prototyping, but the connection services to the whole ecosystem, to investors, to corporate partners, to universities to mentors — all that is key for our startups. And that means that space takes a second place. That's what we've seen. Member companies from Austin join Greentown Houston because they are connecting to a community that is more like hard tech driven and less software driven than in Austin. They wanna connect to the customers and the pilots, right? Even some of our Boston companies have moved or at least established a presence in Houston. There's also the diversity aspect that Houston is the most diverse city in the U,S. There are plenty of companies from Latin America coming over and choosing Houston as a landing pad and choosing Greentown as the place to start settling. We help them with funding. We help them with hiring local people.

IM: As you mentioned, Greentown Houston's membership grew really fast — how did you grow your team to support that?

JG: Our Houston team has quadrupled since last year and, and that's a lot — we were three and now we are 12, but we also had the whole Boston team behind us. The way we did it was through this matrix model where our team members report to someone in Boston. And although it creates an extra layer of complexity I think it was perfect for such a rapid growth because we were able to download the DNA of Greentown Boston to Houston at a much faster pace. We thought it was very important for us to distill that DNA but without forgetting about also having local people in Houston. It was the best of both worlds.

ER: We really needed to have the Houston local knowledge embedded, just like we needed to have the way that things have been done in Boston embedded. But I think as we look forward from now, you're going to increasingly see that we have embedded a lot of the practices and ways of doing things that we've done in Boston, but we're doing them with a Houston flavor, and we are doing them in a way that meets the local needs. And I think that you will see as we grow and continue to evolve, that we're gonna take our learnings from being in Houston and continue to evolve what we doin Houston. Our mission is to create an inclusive community and to convene connect, and inspire entrepreneurs and ecosystems to address climate solutions — and that's going to be the same in both locations. But how we do those specific pieces, I think will be a bit different. Now, Houston is a young ecosystem in terms of climate tech, so that convening piece is a little bit different from how we have done it in Boston.

IM: What's next for Greentown Houston — and what's next for the energy transition in Houston?

JG: For Greentown Houston we've figured out that our members need different things, and we wanna make sure that we listen and we adapt to them. It seems that a wet lab might be a need that we need to incorporate. So we're trying to figure out how, how to do that. We're growing at a much faster pace than Greentown Boston did, of course, because of the timing of the energy transition. That means that we need to think about, about expansion. We've become the convener place for climate tech.

In general in Houston for the energy transition, there's gonna be three pillars that I think are very important and that Greentown has to be apart of. One of them is the workforce development and the transition of the workforce. We're working with key partners like the Greater Houston Partnership and the Houston Energy Transition Initiative, and we're putting together a program with universities to make sure that we also extract the, the entrepreneurs of tomorrow to Greentown and to the energy transition capital.

The second aspect os access to capital there's a lot of capital of available in Houston and a lot of capital in general being poured into climate tech, but we need to make sure it comes earlier. We are very early on, and there's still a gap there for early stage investing. I think one of the key elements to be able to unlock that capital early is to make sure that our companies have pilots and demonstration at corporations.

I think the third part for the energy transition in Houston is unlocking the potential capabilities we already have, like in hydrogen by trying to become a hydrogen hub. And that will only happen if we all work together. So I think Greentown also has to play a role there of convening.

ER: Continuing to support entrepreneurs in Houston to really bring talent in, to not only help our entrepreneurs build their companies, but in general into the energy transition and climate that's something that will be leaning into the deployments of the technology at scale. That's something that Houston can uniquely do.

IM: What can people expect from both the livestream and the in-person event on Thursday?

ER: We're gonna have some great voices on that from across industry, and we are going to be showcasing our startups, both through pitches and then through a startup showcase where folks will be able to see and touch or at least talk to our entrepreneurs and learn about their companies and the opportunities to support them. I believe there will be a few other surprises, which I won't reveal.

------

This conversation has been edited for brevity and clarity.

Four climatetech-focused individuals have been named to Greentown Lab's board. Photo via greentownlabs.com

Greentown Labs appoints Houston founder among 4 new board members

All a-board

Greentown Labs, a Massachusetts-based climatetech startup incubator with its secondary location in Houston, has appointed four new board members.

Of the new appointees, two community board members have been named in order to act as liaisons between startups and Greentown Labs. Greentown Houston's appointed representation is Nisha Desai, founder and CEO of Intention, and community member. The other new board members are Gilda A. Barabino, president of Olin College of Engineering and professor of biomedical and chemical engineering; Nidhi Thakar, senior director of resource and regulatory strategy and external engagement for Portland General Electric; and Leah Ellis, co-founder and CEO of Sublime Systems, who is the Sommerville location's community board member).

"It is important for a startup incubator to have leadership and insight from stakeholders including the public and private sector, academic and university communities," says Greentown Labs CEO Dr. Emily Reichert in a news release. "These leaders bring a wealth of knowledge relevant to not only climatetech but to our continued growth as an organization. Their voices will be important to have at the table as Greentown charts its course for the next decade of climate action."

Desai's current startup, Intention, is climate impact platform for retail investors, and she has previously worked at six energy-related startups including Ridge Energy Storage, Tessera Solar, and ActualSun, where she was co-founder and CEO. She's also worked in a leadership role at NRG Energy and spent several years as a management consultant with the energy practice of Booz Allen Hamilton — now Strategy&, a PWC company.

"I'm honored to join the board of Greentown Labs as a representative of the startup community," she says in the release. "This is a pivotal time for climate and energy transition. I look forward to working with the rest of the board to expand the collective impact of the Greentown Labs ecosystem."

The four new appointees join seven existing board members:

  • Alicia Barton, CEO of FirstLight Power (Board Chair)
  • Katherine Hamilton, Chair of 38 North Solutions
  • Dawn James, Director of US Sustainability Strategy and Environmental Science at Microsoft
  • Matthew Nordan, Co-Founder and Managing Director of Prime Impact Fund and General Partner at Azolla Ventures
  • Kathleen Theoharides, Secretary of Energy and Environmental Affairs, Commonwealth of Massachusetts
  • Mitch Tyson, Principal at Tyson Associates and Co-Founder of the Northeast Clean Energy Council
  • Dr. Emily Reichert, CEO of Greentown Labs
As of this week, Lara Cottingham is the chief of staff at Greentown Labs. Photo via LinkedIn

Greentown Labs hires former Houston sustainability exec

new hire

The country's largest climatetech startup incubator has made a strategic new hire.

Lara Cottingham is the new chief of staff for Greentown Labs, a Boston-area company that opened in Houston earlier this year.Cottingham previously served as the city of Houston's chief sustainability officer and the chief of staff for the city's Administration and Regulatory Affairs Department for the past seven years. In her new role, Cottingham will oversee the day-to-day operations and communications for Greentown's CEO Emily Reichert, along with key stakeholder engagements and strategic initiatives for the incubator.

"Lara brings a tremendous wealth of knowledge and experience to our team from her dynamic leadership role at the City of Houston," says Reichert in a news release. "Her breadth of knowledge in sustainability, climate, and the energy transition, and her expertise in regulatory and stakeholder aspects of the energy industry, will be incredibly valuable to our team and community."

Under her leadership at the city of Houston, Cottingham was the chief author of Houston's Climate Action Plan, an initiative aimed at reducing greenhouse gas emissions in Houston, and getting the city to a point where it meets the Paris Agreement goal of carbon neutrality by 2050. Cottingham helped the city move to 100 percent renewable electricity, according to the release, and helped turn a 240-acre landfill into the nation's largest urban solar farm.

"In leading the Climate Action Plan, Lara helped spark Houston's leadership in what has become a global energy transition and was a passionate advocate for climate action in Houston," says Houston Mayor Sylvester Turner in the release. "While she will be missed, this new role will only strengthen our partnership with Greentown. I look forward to working with Emily, Lara, and the Greentown team to meet our climate goals and make Houston the energy capital of the future."

Before her work at the city, Cottingham worked at Hill+Knowlton Strategies' Houston office range of clients across the energy sector. Earlier in her career, she served as communications director for two congressmen in the U.S. House of Representatives. She began her work with the city in 2014.

"In working with Mayor Turner and Climate Mayors across the U.S., I saw how important partnerships are to helping cities decarbonize," says Cottingham in the release. "There is no better partner or place for climate action at work than Greentown Labs. Greentown is 100 percent committed to attracting and nurturing the energy companies of the future and making Houston the energy transition capital of the world. I'm excited to join the team and see how climatetech can help cities reach their climate goals."

Greentown Labs first announced its entrance into the Houston market last summer. The new 40,000-square-foot facility in Midtown across the street from The Ion opened its prototyping and wet lab space, offices, and community gathering areas for about 50 startup companies opened in April. Greentown was founded in 2011 in Somerville, Massachusetts, and has supported more than 400 startups, which have raised more than $1.5 billion in funding.

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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.