3 Houston innovators to know this week

Who's who

Meet a Houston native who scored $300,000 on TV, an entrepreneur with big plans for Houston, and a health care innovator looking to shake things up. Courtesy photos

From swimming away with $300,000 on Shark Tank to announcing new programming for Houston's innovation ecosystem, this week's Houston innovators to know have things to be excited about. Here's who to know this week in innovaiton.

Grace Rodriguez, CEO and executive director of Impact Hub Houston

Grace Rodriguez

Courtesy of Grace Rodriguez

It's a busy month for Grace Rodriguez. The leader of Houston's Impact Hub chapter, along with her team, is planning the third annual Houston Innovation Summit — a week long of programming for innovators, investors, entrepreneurs, and more scattered around the city.

Rodriguez took a break from the planning to discuss the events, her passion for driving equitable innovation resources, and more on the Houston Innovators Podcast.

"Houston is so diverse, and there are so many entrepreneurs that weren't getting access to the same resources," she says on this week's episode of the Houston Innovators Podcast. Click here to read more.

Patrick Coddou, CEO and co-founder of Supply

Patrick Coddou

Courtesy of Supply

Patrick Coddou, a native Houstonian and CEO of Supply, pitched their product to the panel of five investors on ABC's Shark Tank and hooked one of them, tech millionaire Robert Herjavec. In exchange for his $300,000 investment, Herjavec received a 15 percent stake in the four-year-old company.

"It was a surreal experience for us just making an appearance on the show, but we couldn't have been more pleased with the outcome," Patrick Coddou, CEO of Supply and a Houston native, says in a release. "I knew we had shaped a brand that sets itself apart, not only because of the innovative razor design but also the kind of standard we hold ourselves to, and I'm glad that resonated with Robert and the rest of the Sharks."

Herjavec battled against fellow Shark Kevin O'Leary to invest in Supply, but the Coddous wound up accepting Herjavec's offer. Click here to read more.

Emily Reiser, innovation strategist at the TMC Innovation Institute

As if working with her team to plan and execute the Texas Medical Center's accelerator's ninth cohort last week, Emily Reiser, innovation strategist at TMC, also had to plan for and execute the important announcement that TMCx has been redesigned for 2020. The program will be more heavily involving the TMC network of organizations for the program.

"Our focus going forward is on our member institutions — the clinics, the hospitals, and our partners who really bring forward these technologies into the future," says Reiser.

The 2020 cohort will be specifically focused on solving these member institutions' problems. Click here to read more.

In 2020, the TMCx program will become a needs-based accelerator looking to solve problems the Texas Medical Center's member institutions face on a regular basis. Courtesy of TMC

TMC Innovation Institute announces redesign of its acceleration program for 2020

X-citing news

TMCx has been helping medical device and digital health startups create solid business plans and lasting relationships with Texas Medical Center institutions for five years, and on the accelerator's fifth anniversary, the team announced it's mixing things up a little to better accomplish those goals.

On Nov. 7, TMCx celebrated the conclusion of its ninth cohort, and 16 medical device companies pitched to a crowd at the TMC Innovation Institute. The companies in this cohort, just like the ones before it, were selected based on their technologies that solved a problem using digital health or medical devices. However, previously, the TMC's member institutions weren't directly part of the process until after the cohort was selected.

Based on feedback from alumni, member institutions, corporate partners, and stakeholders, TMCx has redesigned the program so that next year, the accelerator will focus on the specific needs of the needs that the organizations within the TMC have identified.

"Our focus going forward is on our member institutions — the clinics, the hospitals, and our partners who really bring forward these technologies into the future," says Emily Reiser, innovation strategist at the TMC Innovation Institute.

TMCx will become a needs-based accelerator program, Reiser says, and the team at the accelerator will partner with member institutions to run specific cohorts matched to their areas of interests.

The first step will be to identify these areas of interest, then in February of 2020, TMCx will invite a number of companies related to those interests to Houston for two weeks. The TMCx team, member institutions, and other stakeholders will get to interact with the companies and see how they stack up against each other, and to see if they can really fill the needs of the hospitals, clinics, and more.

Finally, after narrowing down the companies, the final startups and entrepreneurs will be invited to participate in a six-month accelerator program that will provide the same resources, connections, and programming that TMCx has always provided to advance the health startups.

Reiser says the TMCx team and all its partners will help identify the missing pieces these companies have and provide solutions, as well as making the right connections to all the right pilot partners, investors, clinical trial experts, and more.

"We'll be here to help them fill those gaps and make sure they have lasting relationships with our clinical partners in the hospitals," Reiser says.

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CultureMap Emails are Awesome

Lawyers specializing in startups are hard to comeby in Houston — but here's what you need to know

Guest column

One of the worst, and most expensive, mistakes that we see startup founders make in the very early days of their company is not realizing that hiring lawyers is a lot like hiring doctors: when the stakes are high, you need a highly experienced specialist.

Law has numerous specialties and sub-specialties, and hiring legal counsel with the wrong specialty can mean paying to reinvent the wheel, or simply getting advice that is out of sync with the norms of your industry and the expectations of your seasoned investors.

This challenge can be particularly acute for founders of startups located in Houston. The legal market in any particular city tends to mirror the dominant industries of that city. Houston has some of the world's most prominent energy and healthcare lawyers in the country, for reasons that should be obvious to anyone who knows anything about Houston's economy.

Startup lawyers, or more formally —corporate/securities lawyers who are sub-specialized in "emerging companies" — are a different story entirely. Given the nascent status of Houston's startup ecosystem, finding local lawyers who work with emerging technology companies and early-stage funding day in and day out, and know all the norms and nuances, is a challenge.

Very often we see founders get referred to a local lawyer who is a broad generalist that dabbles lightly in many practice areas. Their lack of depth in startup or venture capital work usually leads to clients paying for things that a more specialized lawyer, with a deeper set of precedent forms and institutional knowledge, could simply pull off the shelf. In other cases, founders get referred to very expensive senior corporate lawyers from firms designed for billion-dollar public company representation; totally overkill (and overpriced) for an early-stage startup.

What the smartest Houston founders discover, if they do their homework, is that leveraging the broader "Texas ecosystem" can help not just with sourcing talent for their employee roster or finding venture capital, but with sourcing specialized legal talent as well. In the case of Startup Lawyers, Austin's venture capital and startup ecosystem has produced numerous highly specialized lawyers whose depth of startup/vc experience easily compares with lawyers found in Silicon Valley, but who also regularly interact with investors in the Houston market; and therefore know their expectations. In the case of our firm, Egan Nelson (E/N), a significant number of our clients are located in Houston, Dallas, San Antonio, and other markets in the general regional area.

Historically, businesspeople have assumed that if they really want top-tier, highly specialized counsel, they had to find that counsel at large, multi-national law firms. That is no longer the case. The broader Texas ecosystem has produced a thriving group of specialized, high-end "boutique" law firms that are recruiting top-tier lawyers away from the traditional mega-firms, and leveraging technology to deliver "leaner" legal counsel; saving hundreds of dollars per hour for entrepreneurs.

It is not uncommon for us to see Houston startups utilizing an emerging companies corporate lawyer in Austin, a regulatory specialist lawyer in Houston, and a tax lawyer in Dallas; all from different firms. This is the future for how emerging companies will source their legal talent, without the constraints of geography or old-fashioned "all in one" law firm structures.

This trend really isn't that new. VCs from Austin and other Texas cities (and the coasts) have regularly been visiting Houston to fund companies, and Houston companies have regularly leveraged contacts in other markets to source specialized resources for their companies. The same dynamics have extended to finding legal counsel. "Localism," and an over-preoccupation with hiring everyone in the same city, isn't really just last year, it's more like last century. There is nothing about legal services for startups that requires any of your lawyers to be within your same city. Videoconferencing works great.

The growth of the Texas ecosystem, and the emergence of specialized boutique law firms, mean that Houston entrepreneurs have far more options to choose from for sourcing specialized legal counsel. Leverage those options to avoid engaging lawyers who are insufficiently experienced, or overkill, for the needs of your company. For more resources on finding and assessing the right lawyers for your Houston startup, see Startup Lawyers, Explained.

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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.

Houston blockchain company taps into a new industry, hires new exec

diversifying

A Houston blockchain company that makes it easier and faster to process industry contracts, payment, and more has diversified its business again.

After expanding into the water services industry in August, Houston-based Data Gumbo Corp. has announced its next market: Construction. The startup, which works out of The Cannon Houston, has hired industry veteran Michael Matthews hired as industry principal to work directly on the company's efforts in the $9 trillion sector.

"Construction is one of the world's largest industries, but it has clearly fallen behind others in adopting technology and driving efficiency," says Andrew Bruce, CEO of Data Gumbo, in a news release. "Michael is a recognized leader in the industry and his vision and experience make him an excellent fit to scale Data Gumbo into the construction sector."

Matthews has over 30 years of experience in construction. He says in the release that some of the issues of current practices result in 30 to 40 percent of project costs to be hidden, and he wants to use the GumboNet platform to provide solutions.

"The construction industry lags far behind other industries in both productivity improvement and technology adoption, resulting in billions of lost value," Matthews says in a news release. "The way companies come together to execute projects remains essentially the same despite technology's improvement and we have to make fundamental, disruptive changes to deliver more value."

The growing blockchain-as-a-service company closed $6 million series A round earlier this year. Courtesy of Data Gumbo

Originally built for upstream drilling and completions within the oil and gas industry, Data Gumbo has grown its clientbase over the past few years. The company provides its blockchain-as-a-service services as a subscription for its clients.

Recently, the company was announced to be one of the two Houston-based companies in Plug and Play Tech Center's inaugural Houston cohort, and, earlier this year, the company was named among Crunchbase's top 50 hottest tech companiesCrunchbase's top 50 hottest tech companies. The growing company also hired another executive this summer —the company's new chief commercial officer is Sergio A. Tuberquia — following the closing of a $6 million series A round.

Become part of one of Houston’s most admired philanthropic groups

Be Their Voice

For the last 10 years, a special group of Houstonians have been walking the walk when it comes to helping one of the city's most revered institutions and changing lives every day.

Ambassadors for Texas Children's Hospital have been supporting patients through philanthropic donations and active engagement, and now you can, too.

The program has three goals: compassion, philanthropy, and advocacy. Just as Texas Children's strives to provide children and women with the best possible care, Ambassadors gain firsthand experience of the hospital's compassionate spirit and work tirelessly to embody this commitment in their actions.

They have given millions of dollars to help meet the hospital's needs, providing support where it will have the greatest impact, as well as standing and speaking up for patients through their own contributions and enlisting others in the cause.

Ambassadors also have the opportunity to attend exclusive, behind-the-scenes educational and social events to learn more about the patients they serve. This includes gatherings like Ambassadors On Call, which can range from luncheons that feature special guest lecturers and renowned health experts to question-and-answer sessions with leading scientists and physicians to behind-the-scenes tours of operating rooms and research facilities.

Family Fun Day is another special event for Ambassadors. This annual "party with a purpose" is a family-focused event where Ambassadors celebrate their work on behalf of Texas Children's. The day is filled with unique activities and lots of opportunities to meet new friends and spend time with old ones. To teach the next generation about philanthropy, the price of admission is one donated book.

To celebrate the successes of the year, Ambassadors gather at a member's home to share the spirit of the season. The holiday party also includes the presentation of the group's annual check to Texas Children's and the announcement of the coming year's philanthropic focus.

Ambassadors enjoy access to the hospital's navigation line services for assistance with referrals, appointments, and health and safety information for children — an invaluable resource for parents and grandparents alike.

For more information about becoming an Ambassador, visit texaschildrens.org/ambassadors or call 832-824-6900.

The holiday party includes the presentation of the group's annual check to the hospital. Photo courtesy of Texas Children's Hospital

With Ambassadors On Call, you gain access to behind-the-scenes tours and guest lecturers. Photo courtesy of Texas Children's Hospital