Texas named a top state for women-led startups

this one's for the ladies

A new report finds that the Lone Star State is ideal for female entrepreneurs. Photo via Getty Images

Who runs the world? According to Merchant Maverick's inaugural Best States for "Women-Led Startups'' study, Texas is a great place for women to be in charge.

The Lone Star state cracked the top 10 on the list, earning a No. 6 spot according to the small business reviews and financial services company, which based the study on eight key statistics about this growing segment of the economy. Colorado (at No. 1), Washington, Virginia, Florida, and Montana were the only states to beat out Texas on the rankings—leading the Merchant Maverick team to conclude that "the part of the country that lies west of the Mississippi is great for startups led by women entrepreneurs."

Women-led startups in Texas received $365 billion in VC funding in the last five years, the report found. This is the seventh largest total among U.S. states. Too, about 20 percent of Texans are employed at woman-led firms, which is the fifth highest percentage among states. Roughly 35 percent of employers in Texas are led by women.

A few other key findings that work in female founders' favor: The startup survival rate in Texas is nearly 80 percent. And a lack of state income tax "doesn't hurt either," the report says.

Still there are shortcomings. On a per capita basis, only 1.27 percent of Texas women run their own business. The average income for self-employed women is also relatively low ranking among states, coming in around $55,907 and landing at 31st among others.

This is not the first time Texas has been lauded as a land of opportunity for women entrepreneurs. A 2019 study named it the best state for business opportunities for women. Houston too has proven to support success for the demographic. The Bayou City was named in separate studies a best city for female entrepreneurs to start a business and to see it grow.

Still, as many findings have concluded, the realities of the pandemic loom for all startups and small business owners. The Merchant Maverick study was careful to add: "The pandemic has changed the economic landscape over the past year, and often for the worse.

"This means that not every metric may be able to accurately gauge how a state might fare amidst the pandemic," the report continues. "To help factor in COVID's impact, we included some metrics that take 2020 into account, but it will be a while until we get a full picture of the pandemic's devastation.""

This week's innovators to know roundup includes Fiona Mack of JLABS, Grace Rodriguez of Impact Hub Houston, and Emily Cisek of The Postage. Photos courtesy

3 female Houston innovators to know this week

who's who

Editor's note: In today's Monday roundup of Houston innovators, I'm introducing you to three female innovators across industries — from life science to impact innovation.

Fiona Mack, head of JLABS @ TMC

Fiona Mack has joined JLABS @ TMC as head of the incubator. She shares her vision for the lab on this week's episode of the Houston Innovators Podcast. Photo courtesy of JLABS

Fiona Mack is among the latest additions to the Houston innovation ecosystem, as she joined JLABS @ TMC just a few months ago. On her plate right now is assessing the needs of the incubator's 49 member companies in the portfolio and understanding the needs of the Texas innovation ecosystem.

"As I learn more about the history of life science sector in Texas, over the past 20 years there has been an impetuous to build up this critical mass of companies here to really make it a strong hub that competes with the energy sector to make it a pillar of the economy here," Mack says. Read more and stream the podcast interview.

Grace Rodriguez, executive director and CEO of Impact Hub Houston

Grace Rodriguez and her team at Impact Hub Houston is in for a busy week. Courtesy of Impact Hub Houston

Grace Rodriguez has a marathon of a week ahead of her — but it's an exciting one. The fourth annual Houston Innovation Summit is going on now, and she's really passionate about the theme.

"The focus on education and policy is really interesting to me — it's not just about tech and business anymore," Rodriguez says. "It's really about how we are supporting businesses in the face of the pandemic, climate change crises — floods, fires, hurricanes — the entire world is being affected by these crises. ... [We need to focus on] how we are making sure that people are aware of everything that's happening and how we can innovate solutions." Read more about the latest from Impact Hub and what THIS events not to miss.

Emily Cisek, founder of The Postage

The Postage is a new company that uses technology to help ease the experience of afterlife responsibilities for family members. Photo courtesy of The Postage

Three years ago, Emily Cisek was struck with immense grief when she lost three family members back to back. She says she learned first-hand how arduous the process of wrapping up someone's life is and how it can take away from the grieving process.

Cisek's grief planted a seed and she has the idea for The Postage, a digital platform that helps collect information and digital assets in one place to ease with affair planning.

"I think the way The Postage has [made planning more available] it's provided a price point, an understanding and steps involved that are more easily accessible; no matter what age group, what race, what your background is, your religion, anything like that, you're able to sign up," says Cisek. Read more.

Women in the work place have been hit the hardest by the pandemic. Houston experts discuss the effect in a guest column and a panel hosted by Sesh Coworking on Oct. 14. Photo via Pexels

Houston experts discuss the toll the pandemic has taken on women in the workplace

guest column

The shutdown of our economy, schools and childcare systems has created a wildfire that is raging across our nation, disproportionately impacting women, radically shifting social values, and compromising our nation's post-pandemic recovery.

While women have made great gains in the last few decades towards gender equality, the pandemic has exacerbated some of the larger remaining issues — time spent in unpaid work or "invisible labor," political under-representation, violence against women, limited access to capital and the gender pay gap) — and, according to a recent analysis by McKinsey, without serious intervention, is at risk of wiping $1 trillion off global GDP by 2030.

While everyone has suffered during the pandemic, women have found themselves under disproportionate pressure — women's jobs have become more vulnerable (women are 1.8 times more likely to lose their jobs than men), female dominated industries (restaurants, child-care, leisure and hospitality, health care, and education) have been hardest hit, and women of color in particular are more likely to be laid off or furloughed (leanin.org - women in workplace study).

These inequities, coupled with the increased stress and labor of child-care while "working from home" have placed an overwhelming strain on the working parents, and in particular mothers, of America. The mental and emotional health loads of working parents have been pushed to their limits and with that working families are re-prioritizing their values and spending habits faster than ever before.

Is it any surprise that during the pandemic the need for families to quickly adapt to the new economy plus the inequity of women's wages versus men is driving more and more women to sacrifice their careers and dreams to ease the increased burdens the pandemic has inflamed?

Leanin.org and McKinsey's Women in the Workplace study polled over 40,000 employees across 317 companies between May and Aug 2020, and found that more than 1 in 4 women are considering downshifting their careers or leaving the workforce entirely, according Leanin.org and McKinsey.

Labor Department statistics show that this inclination is already in action: In August and September 1.1 million people left the workforce, and of that 800,000 were women. According to a recent analysis by the National Women's Law Center of those 800,000 women — 324,000 were Latinas and 58,000 were Black women. Now compare that to the 216,000 men who left the job market during August and September.

This exodus of women leaving the workforce has broad reaching and long-lasting effects on not just female-owned businesses and women in the workplace – it is an issue that impacts every person at every level of business. Women's rise in participation in the labor force is not just good for women, it is good for business: directly impacting our GDP and a rise in wages for everyone, not just women.

A decline of women in the labor force, on teams, in leadership positions and in decision-making roles compromises not just our economy's recovery and productivity, but also the innovation and effectiveness in industry, competitiveness on a global scale, aspirations of future generations of women, and society as a whole.

If "women hold up half the sky" you could certainly argue that the sky is now falling. So, the question is – what can we do about it? And that is a question we intend to tackle in depth on Wednesday, October 14, at 1 pm in a virtual town hall with inspiring women who are already paving the road to our recovery: Elizabeth Gore of Hello Alice, Cate Luzio of Luminary; Cathy Mchorse of United Way of Greater Austin; Lucie Green of Light Years. Click here to register.

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Maggie Segrich is co-founder and CFO of Sesh Coworking and Courtney Sikes Longmore is the founder at Pure Palate. The two female innovators will be on the panel of the online event.

Houston is a top city for female entrepreneurs, according to a recent study. Getty Images

Houston named top city for female entrepreneurs, 2 local startups collaborate, and more innovation news

Short stories

Houston's innovation ecosystem has been booming with news, and it's likely some might have fallen through the cracks.

For this roundup of short stories within Houston innovation, Houston is recognized for its female-friendly business community, Texas ranks as top for gig economy, the latest Chevron investment is in nuclear energy, and more.

Houston named among top cities for female entrepreneurs

Houston ranked No. 11 on a new study on top cities for female business owners. Via fundera.com

According to a new study from Fundera, Houston ranks among the top 15 cities for female entrepreneurs in the United States. The Bayou City came in at No. 11 based on data pulled from The American Community Survey from the U.S. Census Bureau as well as the Tax Foundation. Metrics included:

  • Percent of self-employed business owners who are women — 18 percent of total score.
  • Percent of women employed in their own business — 18 percent of total score.
  • Earnings gap between male and female business owners — 18 percent of total score.
  • Housing cost as a percent of earnings for female entrepreneurs — 18 percent of total score.
  • Percent of residents with bachelor's degree, denoting high-skilled workforce — 9 percent of total score.
  • Job growth — 9 percent of total score.
  • Tax rates — 9 percent of total score.

"One of the most diverse cities in the country, Houston is also good to its women entrepreneur population," the study reads. "Its biggest strength here, however, may be in its job growth numbers, which were likely impacted by 2020's coronavirus pandemic. It remains to be seen whether the city's strong economic numbers will continue in the years to come."

Lubbock, the only other Texas city to crack the top 15, came in at No. 13.

Galen Data and Zibrio team up with new partnership

A Houston company's balance tracking technology is tapping into another Houston company's cloud technology. Photo courtesy of Zibrio

Houston-based tech companies, Galen Data and Zibrio, have announced a new medical device partnership. Zibrio's SmartScale, which can measure and track physical balance to identify an person's chance of falling, will be able to leverage the Galen CloudTM in order to securely connect data from the device with a patient's physician to support remote patient care.

"Our partnership with Zibrio is a case study in helping an early stage medical device company focus on what they do best," says Galen Data CEO Chris DuPont in a news release. "Galen Data provided outside expertise that has saved Zibrio the needless cost and burden of designing a cloud solution from scratch."

According to the release, the CDC reports that 28 percent of individuals over 65 fall each year, and falls are the leading cause of accidental death in those over 65. Amid the pandemic, the Australian PT Association found an increase in fall right of up to 30 percent.

"With COVID-19 impacting activities of older adults, it was even more critical to find a cost-effective solution to better track, manage, and analyze balance data from our SmartScale," says Zibrio founder and CEO, Katharine Forth, in the release.

IGNITE Madness startup applications close Sept. 4

Ignite Healthcare Network, a health tech startup group that promotes and advances female entrepreneurs, is closing startup applications for its October 22 and 29 event, Ignite Madness. The competition mimics a March Madness-style bracket and will be judged by 10 judges.

The brackets include:

  1. Mental /Behavioral Health
  2. Telemedicine/Remote Patient Monitoring
  3. Medical Devices
  4. Patient Engagement
  5. Employee Wellness
  6. Population Health/Analytics
  7. Femtech/Women's Health
  8. WILDCARD: Other Disruptive Solutions
Apply online for up to $300,000 in cash and prizes.

Texas named the 6th best state for freelance and gig workers

Gig workers are welcome in Texas. Screenshot via directlyapply.com

A job discovery platform, DirectlyApply, has identified the best gig economies to work in and Texas ranked as No. 6. The study looked at nine cost and job opportunity factors, which included the cost of living, the number of restaurants and attractions, the number of advertised gig roles, etc.

Texas has a reported 4,859 gig jobs and 16 gig companies operating locally, and the state sports an average gas price of $0.63 a liter and $1,422 a month to rent an apartment. New York, Florida, California, Ohio, and Illinois ranked ahead of Texas, respectively. The full study is available online.

Adapt2 Solutions recognized with award

Jason Kram is the executive vice president of Adapt2 Solutions. Photo courtesy of Adapt2 Solutions

Houston AI software company, Adapt2 Solutions, has been selected as the winner of the "Best AI Solution for Big Data" award in the 2020 AI Breakthrough Awards program conducted by AI Breakthrough. The awards recognize artificial intelligence and machine learning innovation. This year, the contest saw more than 2,750 nominations from over 15 different countries throughout the world, according to a news release.

"Energy enterprises are dealing with an increasingly complex and ever-changing landscape, including increased renewables, volatile markets, and increased pace of technology innovation for each of the commodity market," says James Johnson, managing director of AI Breakthrough, in the release.

"Adapt2 Solutions is in a unique position to support energy companies with powerful artificial intelligence technology to help their operations to automate, optimize and maintain a competitive advantage. We want to recognize this achievement by awarding them with 'Best AI Solution for Big Data' and we extend a hearty congratulations to the entire Adapt2 team on their well-deserved industry recognition."

The win comes at a strategic time for the company. Adapt2's predictive analytics models forecast unexpected fluctuations in power capacity. Amid the pandemic, this technology enables energy companies to map out demand at a time when they're balancing strained revenue and squeezed spending is paramount, Executive Vice President Jason Kram previously told InnovationMap.

"In times of disruption, big data can inform decision-making for energy companies to optimize energy-market operations with timely and reliable data," Kram says.

Houston Methodist introduces contactless temperature screening

Houston Methodist has set up over a hundred contactless temp checks across its facilities. Photo courtesy of Houston Methodist

Houston Methodist has incorporated new technology from care.ai, an AI-powered temperature monitoring platform, to conduct contactless temperature checks for visitors across 100 locations throughout eight hospitals and 36 physician clinics.

Upon entrance to designated areas, visitors stand in front of a tablet that scans an individual's temperature through the use of thermal technology aimed at the forehead. The technology aims to speed up screening measures and free up staff from the checkpoints. Should a visitor have an elevated skin temperature out of normal range, Methodist staff is contacted.

Chevron invests in nuclear fusion startup

The latest investment from CTV is in nuclear energy. Photo via chevron.com/technology/technology-ventures

Chevron's investment arm, Chevron Technology Ventures, recently announced an investment in Seattle-based Zap Energy Inc., which is working on a modular nuclear reactor. CTV sees nuclear energy as a promising avenue for innovation "across the globe access to affordable, reliable, and ever-cleaner energy," according to a news release.

"We see fusion technology as a promising low-carbon future energy source," says Barbara Burger, president of CTV, in a release. "Our Future Energy Fund investment in Zap Energy adds to Chevron's portfolio of companies we believe are likely to have a role in the energy transition."

This Series A investment is the 10th for Chevron's Future Energy Fund, which focuses on investments in companies that enable macro decarbonization, the mobility-energy nexus, and energy decentralization.

"Our Future Energy Fund investments provide us with strategic insight into power generation markets and potentially disruptive impacts of innovative approaches, like fusion, geothermal, wind, and solar, on the conventional power value chain," says Burger.

Reda Hicks (left) of GotSpot Inc, Ghazal Qureshi (center) of Idea Lab Kids, and Abbey Donnell of Work & Mother are this week's innovators to know. Courtesy photos

3 Houston female entrepreneurs to know this week

Who's who

Another Monday means another set of innovators to know. This one focuses on a few female startup leaders changing the game in the commercial real estate and education industries.

Reda Hicks, founder and CEO of GotSpot Inc.

Reda Hicks create GotSpot — a digital tool that helps connect people with commercial space with people who need it. Courtesy of GotSpot

Turns out, Hurricane Harvey was the big push Reda Hicks needed to create her startup, GotSpot Inc., the Airbnb of commercial real estate.

"It was really Harvey and having so many people desperate to find space for emergency purposes that made me realize there are so many contexts in which people need space right away for something specific," she says. "Certainly the primary user is the entrepreneur trying to grow their business, but there are so many other reasons why a community would need better access to the space it already has."

Hicks, a lawyer by trade, now juggles startup life, being a wife and mom, and her full-time legal career. Read the rest of the story here.

Ghazal Qureshi, founder of Idea Lab Kids

Ghazal Qureshi wanted to engage her own kids in educational activities. Now, her programing has expanded worldwide. Courtesy of Idea Lab Kids

At first, Ghazal Qureshi just wanted to find her kids a quality after school educational program. When she couldn't, she decided to make something herself. Now, it's a franchised company with locations worldwide.

"From the beginning, we were never restricted by trying to make money. It was a passion project only," Qureshi says.

IDEA Lab Kids, an education program focused on STEAM, which stands for science, technology, engineering, arts, and math, has 18 locations in Houston, and, two years ago, she expanded the brand into a franchise business — the Idea Lab International Franchise Company. Read the rest of the story here.

Abbey Donnell, founder of Work & Mother

Abbey Donnell's startup, Work & Mother, provides a new way for new moms to pump breast milk during the workday. Courtesy of Work & Mother

When Abbey Donnell heard horror stories from some friends who recently returned to work after giving birth, she had an idea. What if new moms had a stylish, spa-like lactation experience during the workday that was less inconvenient and, well, awkward.

"There were constant stories about [women] being told the use the IT closet, or the conference room, or the bathroom or their cars," Donnell says. "Some of them were pretty big oil and gas firms companies that should've had the resources and space to do better than that."

Donnell founded Work & Mother, a boutique pumping and wellness center, and opened the first location in downtown Houston in 2017 and is planning its second downtown location. Read the rest of the story here.

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CultureMap Emails are Awesome

10+ can't-miss Houston business and innovation events for December

where to be

This month, Houstonians have yet another good batch of in-person and online innovation events, and you and your tech network need to know about them.

Here's a roundup of virtual events not to miss this month — like pitch nights, workshops, conventions, and more.

Note: This post might be updated to add more events.


December 1 — Fall 2021 D2K Showcase

The Rice D2K Lab is a hub for data science education. In the interactive D2K Showcase, you will explore D2K students' end-of-semester projects sponsored by D2K Affiliate members, researchers and community partners. Interact with student teams in the poster session and learn more about their projects. Vote on your favorite project and team as students compete for cash prizes.

The event is on Wednesday, December 1, at 5 pm. It's free and happening at Rice University (Duncan Hall - McMurtry Auditorium). Click here to register.

December 2 — TeeMates Launch Party

Join TeeMates for happy hour in town at The Cannon's new sportstech and media location. DJ, drinks, prizes, local businesses, and golf.

The event is on Thursday, December 2, at 4 pm. It's free and happening at The Cannon Sports + Media (5353 W Alabama St. Ste 450). Click here to register.

December 3 — Thought Leader Series: A Conversation with Houston's Medical Community

The Greater Houston Partnership invites you to the Thought Leader Series: A Conversation with Houston's Medical Community. This virtual event will feature a dynamic panel discussion with some of the region's top minds working to advance health care and medicine for the future. These leaders will discuss topics ranging from the region's health care system including funding, workforce, technology/innovation, equity and living in a post-pandemic world.

The event is on Friday, December 3, at noon. It's free and happening online. Click here to register.

December 5-9 — 23rd Annual World Petroleum Congress

Returning to the United States for the first time in over 30 years, the 23rd World Petroleum Congress will transform Houston into the epicenter of the global energy debate. Recognized as the energy capital of the world, the host city is home to 4,600 energy firms and a hub of technological innovation and entrepreneurship both within the energy sector and across aligned sectors. The Congress will gather together industry and government leaders from across the world to address all aspects of the industry from technological advances in upstream, midstream, and downstream operations to the role of natural gas and renewables, management of the industry and its social, economic, and environmental impact.

The event is from Sunday, December 5, through Thursday, December 9, at George R. Brown Convention center. Click here to register.

December 7 — Latest Trends & Opportunities in Sports Tech

Join DivInc on December 7th for an in depth discussion focused on trends, challenges and opportunities in this city and beyond at the intersection of sports and technology! The panel consists of subject matter experts from HTX Sports Tech, Intel, 2K, and The Cannon. We will also be sharing details and answering questions regarding upcoming Sports Tech accelerator.

The event is on Tuesday, December 7, at 4 pm. It's free and happening at The Ion (4201 Main St). Click here to register.

December 8 — Houston Veterans In Residence Showcase

Bunker Labs’ Veterans in Residence Showcase is a nationwide event spanning across twenty-two cities and 2 virtual cohorts, celebrating the almost two-hundred veteran and military spouse entrepreneurs launching their startups and businesses from our recent cohort. It gives you a chance to network with local participants. Become part of your local business community and learn how you can get involved by patronizing, investing in, or partnering up with veterans and military spouse entrepreneurs.

The event is on Wednesday, December 8, at 6 pm. It's free and happening at WeWork (The Jones Building - 708 Main St.) Click here to register.

December 8 — The Future of Energy Celebration

Join energy tech leaders right after World Petroleum Congress for drinks, live music and startups to celebrate the Future of Energy — powered by Halliburton Labs, Accenture, Greentown Labs and The Ion.

The event is on Wednesday, December 8, at 6 pm. It's free and happening at 8th Wonder Brewery (2022 Dallas St). Click here to register.

December 8 — HTXelerator's Pitch Event

The Pitch for the inaugural cohort is now upon us and you're invited to be a part of the celebration! Hear from the HTXelerator's nine finalists as they deliver a mock campaign speech for city council. Enjoy drinks and light bites in the courtyard of The Cannon Downtown as the judges crown first, second, and third place to close out the inaugural year.

The event is on Wednesday, December 8, at 7 pm. It's free and happening at The Cannon Tower @ Amegy on Main (1801 Main St). Click here to register.

December 10 — Feedback Friday: Strategy Planning for 2022

Join this session with Impact Hub Houston Board Member and startup advisor Brandy Guidry to receive feedback on your business goals for 2022.

The event is on Friday, December 10, at 1 pm. It's free and happening at The Cannon Tower @ Amegy on Main (1801 Main St). Click here to register.

December 14 — UpSkill Works Forum: New Mission, Transferable Talent: What Employers Need to Know About Hiring and Retaining Veterans

With more than 250,000 veterans in residence, Houston has the country's second highest veteran population. Veterans are a diverse, highly skilled talent population that can bring valuable experience to a workplace but can be difficult to effectively access and engage. Join the UpSkill Houston initiative, NextOp Veterans Executive Director Stephanie Drake, and area employers to learn how to attract, hire, support, and retain talented veterans in your workforce.

The event is on Tuesday, December 14, at noon. It's free and happening online. Click here to register.

December 14 — gBETA Houston Fall 2021 Cohort Pitch Night

Pitch Night is a celebration of all of the current gBETA cohorts. It's an exclusive reception during which participating companies have the opportunity to pitch to an audience of entrepreneurs, mentors, investors and community members. Join either in-person or virtually for one or more Pitch Night events.

The event is on Tuesday, December 14, at 5:30 pm. It's free and happening online and at Cannon West Houston (1334 Brittmoore Rd #1327). Click here to register.

4 Houston firms land on Forbes’ list of America’s largest private companies

BIG BIZ IN H-TOWN

Some Houston-area companies have some major bragging rights. Forbes has released its new list of the country’s largest privately owned companies based on annual revenue, and five local firms land on the list. They are:

  • Car dealership group Gulf States Toyota, No. 45, $8.3 billion in annual revenue.
  • Energy company Calpine, No. 48, $8 billion in annual revenue.
  • Petroleum and petrochemical products marketer Tauber Oil, No. 61, $6.7 billion in annual revenue.
  • Casino, restaurant, and sports conglomerate Fertitta Entertainment, No. 166, $2.8 billion in annual revenue.
  • BMC Software, No. 219, $2.1 billion in annual revenue.

Elsewhere in Texas, San Antonio-based H-E-B ranks fifth on Forbes’ new list of the country’s largest privately owned companies based on annual revenue. According to Forbes, the grocery chain’s annual revenue is $32.8 billion, making it the largest private company in Texas. On its website, H-E-B reports annual sales of $32 billion.

The only other San Antonio company on the Forbes list is construction engineering company Zachry Group. It ranks 225th, with annual revenue of $2 billion.

Nearly all of the other Texas companies in the Forbes ranking are based in the Houston and Dallas-Fort Worth and Houston areas. As well as the five Houston companies, 13 DFW companies companies show up on the list:

  • Grand Prairie-based alcohol and wine distributor Republic National Distributing, No. 25, $11.9 billion in annual revenue.
  • Dallas-based conglomerate Sammons Enterprises, No. 70, $5.8 billion in annual revenue.
  • McKinney-based roofing distributor SRS Distribution, No. 80, $5.4 billion in annual revenue.
  • Irving-based arts-and-crafts retailer Michaels, No. 81, $5.3 billion in annual revenue.
  • Dallas-based luxury retailer Neiman Marcus, No. 101, $4.7 billion in annual revenue.
  • Irving-based electrical systems and equipment maker Consolidated Electrical Distributors, No. 103, $4.6 billion in annual revenue.
  • Fort Worth-based food and beverage distributor Ben E. Keith, No. 107, $4.2 billion in annual revenue.
  • Dallas-based oil and gas explorer Hunt Consolidated, No. 113, $4 billion in annual revenue.
  • Frisco-based transportation and logistics software provider Transplace, No. 127, $3.6 billion in annual revenue.
  • Addison-based cosmetics retailer Mary Kay, No. 164, $2.8 billion in annual revenue.
  • Plano-based senior healthcare provider Golden Living, No. 178, $2.6 billion in annual revenue.
  • Dallas-based general contractor Austin Industries, No. 217, $2.1 billion in annual revenue.
  • Dallas-based transportation and logistics company Mode Transportation, No. 220, $2.1 billion in annual revenue.

One other company on the Forbes list, New Jersey-based IT company SHI International Corp., has a strong connection to Texas. Austin billionaire Thai Lee, with a net worth estimated at $4.1 billion, is co-founder, president, and CEO of SHI. The company ranks 28th on the Forbes list, with annual revenue of $11.1 billion.

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This article originally ran on CultureMap.

Q&A: Houston entrepreneur discusses big exits, startup advice, and his new book

Featured Innovator

Jay Steinfeld is a household name — at least within Houston's growing innovation ecosystem. Steinfeld founded Blinds.com and, along with his team, grew it to a $100 million company before exiting to Home Depot in 2014. Over the past few years, Steinfeld has had time to reflect on that empire he created and recount his lessons learned in a new book.

Lead From The Core published this week, and Steinfeld took some time to answer some questions about the new book for InnovationMap. He also shares some insight into the acquisition process and advice for fellow entrepreneurs.

InnovationMap: You founded Blinds.com and exited the company to Home Depot — this is lauded as one of Houston’s big exits. What did this acquisition mean to you as a Houstonian?

Jay Steinfeld: Blinds.com ended up being far greater than what I ever believed was possible. I had no vision as to what it could become. I had no vision as to even what the internet was at the time I started. I knew nothing when I started — I didn't even know you could sell things online. So it's kind of a shock in one way, because we just started as an experiment and not to get rich or to build something massive. It was a marketing experiment and that was all, it was, we had no business plan. We didn't know what the total addressable market was. I didn't even know what a TAM was at the time. It was just an incremental step to improve my drapery shop. So now that we have developed that into by far the number one online retailer of blinds in the world and acquired by Home Depot, it's just so satisfying and so gratifying to know that all the little things that we did with all the people who were so, so much a part of it — like Daniel Cotlar, Tom Cabanski, Larry Hack, Steve Riddell, Marilyn Franks, all these people who, I mean, no one knew who we were. We were nobodies, but we were able to do something and become better than what even we believed was possible.

And that's actually the greatest thing for me — that so many people elevated themselves and either were a part of the success and felt like they were consequential in developing something that was consequential. They were a significant part of that, but they evolved along with it. And are either now still with the company prospering flourishing or they're now with other companies doing the same thing. Omair with Cart.com — starting as an accounts payable cost accountant and working his way up. And now, you know, the story there. It's amazing. So I think the fact that we were able to build these teams and do something of consequence and have people feel really good. It's not about how much money we made, but how much we really impacted ourselves and how we helped each other. And that was the key. We, we brought humanity into the workforce and show that having a culture of people first really does work. And it's not just a bunch of talk.

IM: I think when you look at some kind of growing and successful innovation ecosystems, they start with a couple companies that made it big, created a legacy and a group of successful entrepreneurs that then inspire others. Do you see Blinds.com kind of within the Houston innovation ecosystem?

JS: But I never, at the time, believed that was the case because we were within ourselves and didn't really see a responsibility or anything other than to what our own mission was. Looking back now and seeing how many people have succeeded and how other companies have used our success and even been able to get funded and to bring attention to Houston as a place where big exits can happen. That's a good feeling, but at the time I didn't really reflect on that.

IM: Your book came out this week — what did you want to accomplish with Lead From The Core?

JS: The book was originally written so that the people at Blinds.com would know what got us to where we were and would use it as the foundation for continuing what that success was all about. As I began teaching and expanding my influence throughout the community nationally, I realized that there were many entrepreneurs who could learn from the same success, the techniques, the strategies, "The Four Es" that were really the, the secret sauce of the company, the reason we were able to beat Amazon, Home Depot, and Lowe's, and why we got so much money as a result of it. I then expanded even more because people were saying, you know, I don't necessarily want to start a business, but I want, I've got an entrepreneurial bug and I want it to apply to my career. And for those people who feel stagnant and wanting to grow, these principles apply not just to a business, but to life into career trajectories. And that's been particularly satisfying because it was always about helping people become better than what they believed possible, not about the mission of Blinds.com itself. That was the mission, helping people. And now that people are re it's resonating outside the business world to any type of career, that's pretty cool. And now I realize that the audience is much broader than what my original intention was.

IM: What’s the biggest thing you want readers to take away from the book?

JS: I think if he can do it, I can do it. I think that's really it. It's not as hard as people think. I mean, it is tedious and you have to stay immensely focused, but it's a simple process. If you don't get so static in your thinking, and you're more expansive and open to possibilities — possibilities of you changing of you improving, and you're improving everybody around you — and that if you have the time and a little bit of money, then you can incrementally improve enough and fast enough that you can build something of significance too.

IM: What did you wish you had known before starting the process? 

JS: I actually wish I hadn't known any of this beforehand, or I might not have started. It's it is intensely grueling. It's not just the writing process, which in itself is hard — and the editing process, the rewrites, and the different types of editors that we've been involved with publisher — it's just the business of a book. It's it's everything. It's getting a publisher, getting editors, determining artwork for the cover and for the interior artwork, the publicity for the book who narrates it the whole process of audiobooks and rights. It's like starting a company. If you knew how hard it was going to be, you've might not have started it from the first place. So, but that's one of the things that was great about and be starting a business. I had no idea what I was doing, and I knew as much about writing a book, as I knew about starting a business. And that gave me an advantage because I didn't have bad habits. I didn't have a predetermined understanding as to what had to be in order for this to work. I would just meander through experimenting, being curious, asking for a lot of help, helping having people express themselves so I could get diverse opinions — like I did making business decisions. And that's what I want people to get from the book — that they can make these little decisions. And if it doesn't work, you stop. If it does work, you do a lot more of it. And that's what I did with the book. It's been fun. It's exactly what my "Four Es" are — experimenting, evolving, expressing, and enjoying myself.

IM: That's so meta that working on the book was like the process of what you're writing about in the book. Could you see yourself doing it again?

JS: Yeah, I've got two other book ideas — one will be a lot easier because it's not about me. It's harder to write about yourself, but writing about something else will be a lot easier. And now that I know the process, it will be so much easier. The first time is always harder. Going back to what you said about "it's kind of meta," if your core values are something, then that means that's what you do. So it shouldn't be surprising to anybody that I am experimenting and evolving and expressing and enjoying, because those are absolutely true, authentic core values for me. And therefore that means that's how I behave all the time. That's what I do every day. Not as a goal or an aspirational idea — if people can understand what is absolutely true to them and not just who they want to be, I think they'll be able to do almost anything they want.

IM: You’re involved with several companies and even have taught at Rice University. What drove you to get involved in this endeavors?

JS: Well, I'm either on board or advisory board members of five different companies, and it's a diversified group because some are in the pre-A stage and one's a public board. When I was about to step away from blinds.com, the idea was how do I keep having an active role in helping companies, but not be so active that I'm up to my eyeballs every day with the primary responsibility. I've got two in Austin, one in Chicago, one here, and then the other one's in Tampa.

The first thing I wanted to do knowing that I was going to be leaving Blinds.com was to start teaching in Houston, and this was while I was writing the book. So, it gave me an opportunity to bounce off ideas in the classes while writing and seeing what would be good to put into the book. It was like comedians going to small markets first and testing their material. That was fun, and I found that the things that I was teaching them was outside the normal courses that they were taking. I was providing that more personal introspective view while they were learning all the true skills, like evaluating markets, discounted cash flow and things like that. And that was very exciting for me to be involved there, especially with such a prestigious school like Rice. Al Donto was the one who I teach with, and he's been a great mentor and a great facilitator of that process.

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This conversation has been edited for brevity and clarity.