Contributing to Texas’ better showing on this year's ranking is an increase in female-focused VC investments. Photo via Getty Images

A more than 120 percent surge in female-focused venture capital investments helped push up Texas’ ranking in an annual study of the best states for women-led startups.

In Merchant Maverick’s 2021 report on the best states for women-led startups, Texas lands at No. 2, up from No. 6 the previous year. Colorado retains its No. 1 ranking from last year. Merchant Maverick judged each state based on several gender-specific metrics, such as VC funding.

Contributing to Texas’ better showing this year is the increase in female-focused VC investments. Merchant Maverick says the state’s five-year total for female-focused VC investments grew from the $365 million reflected in the 2020 report to $814 million in this year’s report. That’s a jump of 123 percent.

The $814 million total puts Texas in fourth place among the states in terms of female-focused VC investments over a five-year span. California leads this category ($6.7 billion), followed by New York ($4.7 billion), and Massachusetts ($1 billion).

The Lone Star State “has cultivated a business-friendly reputation that appears to be attracting a high volume of women-led organizations and startups,” says Merchant Maverick, a product comparison website for small businesses.

The state doesn’t do as well when it comes to average income, according to Merchant Maverick, but with no state income tax, women business owners can expect an average $62,945 yearly income to go further in Texas than it would in most other states.

Across the country, Merchant Maverick says that thanks to rising startup hubs like Houston, Miami, Phoenix, and Boulder, Colorado, “more funding opportunities are available to female entrepreneurs than ever before.”

Here are some of the Texas statistics cited in this year’s report:

  • 27 percent of businesses with employees are led by women, putting Texas at No. 13 among the states.
  • At 1.55 percent, Texas sits at No. 22 for the share of women business owners.
  • Texas ranks 19th for the average yearly income of women business owners ($62,945).
Black Girl Ventures has launched in Houston. Photo courtesy of Black Girl Ventures

Organization launches Houston chapter to drive investment and social capital for women of color

a seat at the table

Everyone knows the statistics. Female-founded startups receive around 2 percent of the venture capital funding, according to some reports, and when you break that down into women of color receiving funding, it's even less.

A Washington D.C.-based organization is looking to give these women seats at the table with the launch of Black Girl Ventures in Houston. BGV is based in The Cannon locally, and is looking to partner with other Houston organizations to grow its presence.

"Black Girl Ventures is here — not just in Houston but across the country and the globe — to be able to help create social and financial capital for black and brown women," says Sharita M. Humphrey, a Houston financial adviser and team lead for BGV in town.

The organization launched its local chapters — including Houston, Miami, Durham, Philadelphia, and Birmingham —right around the same time this spring to create a huge splash across the country. The organization, which is made up of 31 employees and leaders across the country, focuses on events and programing for female founders of color to prepare them for financial growth — including the networks and know how needed for that process.

"Being an African-American women founder I did see that there was a need for more social and financial capital," Humphrey says. "We have access — especially living here in Texas — to financial capital, but we don't understand how important that social capital is to be able to obtain that financial capital."

The cornerstone event for Houston's BGV is set to be in August. It's a pitch event with a live crowdfunding campaign. The event, which uses SheRaise online to fundraise, has been done for a few years coinciding with SXSW — this year's was done digitally. Now, with the launch of the five markets, each of the new chapters will get to fo their on versions locally.

The event requires the eight companies that will pitch to: be revenue earning, have a black or brown female founder, and be based in the Houston area. The first, second, and third place startups will win prizes, and each of the startups will be able to raise money online through SheRaise. Companies can apply online for the event.

Humphrey says she has big plans for her BGV chapter, including raising $1 million for her Houston members — something she is determined to make happen with the right amount of social capital help and financial coaching.

"When they get to the table with venture capitalists, they'll be ready," she says.

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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Houston investors back new platform for retail traders looking to follow financial influencers

making a splash

As anyone who witnessed the impact Gamestop's meme stock had on the country already realizes, influential investors can drive momentum within the financial sector. And one company with fresh funding from a Houston firm is betting on that exactly.

CashPool is a new mobile platform that gives everyday investors the opportunity to derive influence from the investment strategies and trades made by trusted and influential stock traders who have built substantial followings on social media platforms. By allowing retail traders the chance to join social media influencers’ various “pools” on its platform, CashPool is primed to change the way the masses acquire wealth.

This is the kind of algorithmic trading aimed at a new generation of investors that gets the attention of early-stage venture capital funds like Houston-based Ten X Labs, a pre-seed angel fund that recently invested in CashPool to help the trading platform continue its mission of transforming the investment landscape.

"We are thrilled to receive funding from Ten X Labs, as it validates our innovative approach to trading and investing," CashPool Founder and CEO Averett Barksdale says in a news release. "This investment will enable us to further enhance our platform, expand our user base and continue to revolutionize the industry. We believe that everyone should have transparent, governed access to profitable trading and investment opportunities, and through CashPool we are making that vision a reality."

Connecting the dots

CashPool is broker agnostic connector, allowing its users to keep their current brokers like Robinhood, Coinbase, Charles Schwab, Acorns, Fidelity, ETRADE, Stash, Sofi and Betterment and creates a seamless investment experience.

“We are that middle piece,” says Barksdale. “So your money stays on whatever brokerage you’ve connected to the platform, and we just execute the trades on your brokerage for you.”

Considering that users’ money remains with their original brokerage, how does CashPool monetize its platform?

“We don’t charge users to execute trades,” says Barksdale. “We charge per pool you join. So, on our platform, strategies are called pools and a user can join as many strategies as they want.”

Financial influencers set the strategies. These are profitable traders who have become influencers on various social media platforms and built-up followings comprised of people who are or are desiring to be retail traders themselves.

“There are a ton of people out there who actually are profitable traders,” says Barksdale. “Same as what we saw happen with GameStop and the whole Reddit situation. That was a financial influencer, right? It just so happens that he had a strategy that he thought would work and it turned out for a while it did work, right?

“We want to not only empower the retail trader, but empower these financial influencers who are profitable as well. Just because it's a whole marketplace out there for it. But a lot of times the retail trader doesn't quite understand who to go with. On our platform, you could see the results of these financial influencers right before your eyes on our platform. So you can see if they're profitable or not, or if someone's just on Instagram or whatever, social media platform posting screenshots but aren’t actually executing those trades.”

Increasing transparency

With trading, past success can be an arbiter for future performance, so with CashPool, users can choose to join the pools of influencers who have documented success as a trader on the platform.

“On our platform you can't hide,” says Barksdale. “We're connected to their brokerage account, so we see what trades they're making in real time. We also see their performance in real time, and we display that on the platform. That's something that you really can't get around. So if someone on Instagram says they traded this stock, then I made X amount of dollars and had this percentage of return, then you go to the platform and look at your pool and see they didn't do that and were lying the whole time, it’s literally just putting everything out there in the open. We have the kind of transparency that doesn't exist currently right now in the space.”

Broadcasting one’s successes is easy, but what about the losses?

“I thought it was going to be a lot more difficult just thinking, do people really want to show what they're doing?” says Barksdale. “But the thing that I've seen is a lot of these traders are a whole lot more competitive. And the traders who are doing it, they're constantly talking out against people who aren't actually doing it in real life.

“A lot of the traders who are actually profitable, they do live trades every day. But how do users if they should pay to get into a specific trader’s live trading session? Like, how do they know they're profitable already?

“On CashPool, users can see an actual influencer's win rate and say, 'Okay, 86 percent of the time they are profitable, and I could see how many trades they've made in total.' From that standpoint, users can make an educated decision on what pools to join and pay for.”

CashPool users can join as many pools as they see fit, but the cost of each pool’s membership may vary due to the popularity or success percentage rate of the financial influencer.

“You can join as many pools as you want, but what we suggest is you start by joining the pools of influencers that you already follow and trust, that you're already following like on Twitter or YouTube or Instagram or whatever it may be,” says Barksdale. “We are suggesting that you follow them first and you join their pools first. What we do is on the monetization side is we allow the creators on our platform who are the influencers to set their own price for their pool.”

Building a secure network

Outside of who or what to follow, information security is likely a concern for potential users. Financial influencers’ trade information is readily available (win percentages and number of trades, not dollar amounts), but users’ won’t be able to see other users’ information on the platform.

“Currently, we have a list of 10 brokerages who are on board, and then we're working to onboard more as we keep going on,” says Barksdale. “So, we have like your Interactive brokerages, and we also have a few other ones that are UK specific and Canada specific. We would love to have every single brokerage on the platform, but unfortunately, there are a couple that are still kind of playing hard to get, so to speak.”

The first rollout of CashPool is set, but version two will likely include content creation from the financial influencers.

Barksdale, who has a background in product development and experience working at companies like Charles Schwab and Fidelity, is mostly excited about the prospect of CashPool unlocking expert financial strategies for everyone, not just the financial advisors behind the closed doors of Wall Street.

“Yes, my philosophy is that financial health and financial growth should be accessible for all,” says Barksdale. “The thing that gets me is it needs to be responsible. So, for example, RobinHood is a platform that doesn't necessarily care if you are making responsible decisions, they just care that you're trading on that platform.

“Our platform is strictly focused on actually being the place where these retail traders can make responsible decisions centered around investing and trading.”

Tech companies contribute to recovery fund for those affected by Houston storm

helping hands

The past month in Houston has been marked by severe flooding and a sudden storm that left nearly a million residents without power. The Houston Disaster Alliance has established the Severe Weather and Derecho Recovery Fund to help those impacted by the weather.

“The Greater Houston Disaster Alliance was formed so that in times of crisis, there is a swift and efficient response to help those severely impacted begin the process of recovery,” said Stephen Maislin, president and CEO, Greater Houston Community Foundation. “When disaster strikes, it requires a collaborative and coordinated response from the nonprofit, for-profit, public sector, and philanthropic community to ensure the most vulnerable in our region get the help they need to start the recovery and rebuilding process.”

At least a million dollars has been donated to the fund, courtesy of $500,000 from the CenterPoint Energy Foundation and another $500,000 from Comcast. With Houston now a federally declared disaster area by President Joe Biden, impacted residents are able to apply for various grants and aid.

Those still struggling from the weather events should call the 211 Texas/United Way HELPLINE. Assistance is available for housing, utilities, food, elder assistance, and other areas. Crisis counseling is also available.

“Outside of times of disaster, we know that 14 percent of households in our region are struggling on income below the federal poverty line and 31 percent of households in our region are working hard but struggling to make ends meet. It’s these neighbors who are disproportionately impacted when disaster strikes,” said Amanda McMillian, president and CEO, United Way of Greater Houston. “This fund allows us to lift up the most vulnerable who have been impacted by recent weather events to ensure they can not only recover from the immediate crisis, but also prepare themselves for future disasters.”

The derecho storm that hit Houston on Thursday, May 16 had wind gusts up to 100mph. Nearly a million people in the Houston area were left without power, and as of Wednesday CenterPoint was still working to restore electricity to more than 60,000 people. Photos showed that the storm toppled massive power pylons, took down trees, and even ripped the sides off buildings. Miniature tornadoes touched down in parts of the city, adding to the devastation.

The Houston Disaster Alliance was launched in 2023 as a joint effort between the Greater Houston Community Foundation and United Way of Greater Houston to help mitigate the damage of weather crises year-round. This has become increasingly necessary as Houston's weather has become more unpredictable than ever.

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This article originally ran on CultureMap.