At a startup pitch competition, a local nonprofit won free coworking space for a year to continue their impactful work with individuals with special needs. Photo courtesy of Macy's Miracles

Macy's Miracles, a local nonprofit that helps people with special needs, had a special need of its own: a place to call home. Now, thanks to coworking operator WorkLodge LLC, it has one.

On February 27, representatives of Macy's Miracles and Houston-based WorkLodge held a ribbon-cutting ceremony for the nonprofit's first-ever office. The organization (not affiliated with the Macy's department store chain) won the second annual Shark Tank-inspired Ignite by WorkLodge pitch contest, which awards a one-year WorkLodge lease to a local nonprofit. Macy's Miracle now occupies space at WorkLodge's site in The Woodlands.

Previously, leaders of the nonprofit had carried out business at various public places like coffee shops. Today, the nonprofit enjoys a startup-style setting — including access to meeting rooms and common areas — that enables it to operate more like a business and less like an organization on a shoestring budget.

Haley Ahart-Keiffer, founder and president of Macy's Miracles, says the free one-year lease of a four-person office at WorkLodge (valued at $24,000) is "priceless."

For one thing, being located at WorkLodge opens up fundraising opportunities. In the past, Macy's Miracles ran into roadblocks when prospective corporate sponsors inquired about meeting at the nonprofit's office, Ahart-Keiffer says. But the nonprofit had no formal address to give them.

Now that Macy's Miracles is housed at WorkLodge, folks associated with the nonprofit can more professionally host potential corporate donors and can network with Houston businesses, Ahart-Keiffer says.

As a matter of fact, that networking paid off at the ribbon-cutting ceremony, according to Ahart-Keiffer. For instance, it exposed WorkLodge tenants to potential employees — people attending the ceremony who benefit from services delivered by Macy's Miracles. In addition, the event paved the way for meetings with three businesses interested in assisting Macy's Miracles.

Aside from fostering opportunities for networking, the WorkLodge space lets Macy's Miracles more easily conduct mentorship programs and put on events, according to Ahart-Keiffer.

Being based at WorkLodge "has allowed us to really take it to the next level by being able to seek out even larger corporate sponsors and donors to be a part of the mission," she says.

That mission, carried out since the formation of Macy's Miracles in 2018, centers on elevating the education, networking skills, and employability of people with special needs. Aside from boosting the ability to raise more money for that mission, the WorkLodge space introduces high-functioning people with special needs to a work environment, Ahart-Keiffer says.

In a short amount of time, setting up shop at WorkLodge "has changed the trajectory of where we see that we can go now," she says.

Part of the nonprofit's new trajectory is its soon-to-launch Adaptive Center of Excellence, featuring a vocational/trade initiative and an adaptive sports program.

Ahart-Keiffer didn't envision the current scenario when she established Macy's Miracles two years ago. She established the nonprofit as a "grassroots movement" after her daughter Macy Savoy, who is part of the special needs community, faced a less-than-ideal future in the workforce after graduating from high school. Savoy is CEO of the volunteer-run nonprofit.

Mike Thakur, founder and CEO of WorkLodge, says Ignite by WorkLodge is designed to offer free high-quality space so that nonprofits like Macy's Miracles "take their game up a notch and attract some more support." The contest is geared toward smaller nonprofits making a "hands-on, roll-up-your-sleeves" difference in the community, he says.

In addition to Macy's Miracles securing space at WorkLodge's location in The Woodlands, Ignite by WorkLodge recently granted space to a Dallas nonprofit that's now a tenant at the coworking company's location in the Dallas Design District.

WorkLodge currently operates five coworking spaces: two in the Houston area, two in Dallas-Fort Worth, and one in Tampa-St. Petersburg, Florida.

Thakur says one of the reasons Macy's Miracles received the free space at WorkLodge is that it serves both children and adults.

"But I think the main thing was just the fact that they were delivering help in a way that could then create self-sustainability," says Thakur, whose company runs its own nonprofit foundation. "That's a really big deal for us."

It's also, of course, a big deal for Macy's Miracles. The nonprofit's free one-year lease expires around the end of the year, but Ahart-Keiffer says the Macy's Miracles plans to carve out money in its budget to pay for space at WorkLodge. In conjunction with that, Macy's Miracles will teach some of the members of its mentorship program about fundraising and budgeting.

"I don't think it's a place that we'll ever want to leave," Ahart-Keiffer says. "WorkLodge is definitely the perfect spot for us and what we do."

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Houston investor on why 2025 will be the year of exits

houston innovators podcast episode 270

Samantha Lewis will be the first to admit that the past few years have been tough on startups and venture capital investors alike. However, as she explains on the Houston Innovators Podcast, the new year is expected to look very different.

"We're super excited going into 2025," says Lewis, who is a partner at Houston-based VC firm Mercury. "For us, 2024 was a year of laying a lot of groundwork for what we believe is going to be a massive year of startup exits and liquidity for the venture ecosystem. We've been hard at work making sure our companies are prepared for that."

Mercury, in fact, has already gotten a taste, with three of its portfolio companies celebrating exits — all with Houston roots. Fintech platform Brassica was acquired by BitGo in February, and Apparatus, founded as Topl in Houston, was acquired early last year. The third deal has yet to be announced publicly.

And it's just getting started, Lewis says. She explains that all of the companies in Mercury's portfolio that are promising — albeit not break-out, to-be-billion-dollar companies — are going to have opportunities to sell in 2025 and 2026.

"What we've started to do — and I encourage everyone to do this if you're working on a startup — is just start to just engage with strategic buyers, investment bankers, and people you think might be a great fit to buy your company," Lewis says, "because we really think that the next few years will be the best liquidity years we've seen in a really long time. And if you're not ready for it, you're going to miss the boat."

In addition to sharing her advice to get "exit preparedness," Lewis explains some specific tech trends she's keeping an eye on in Mercury's "power theme," which she works on directly. This encompasses fintech, blockchain, web3 and more.

Houston private equity firm beats target on first investment fund

fresh funds

Houston-based private equity firm Sallyport has raised $160 million for its first investment fund, exceeding the target amount by $10 million.

The Sallyport Partners Fund focuses primarily on investments in founder- and family-owned businesses, corporate carve-outs and startups in various industries.

The firm’s chairman, Doug Foshee, seeded the fund. He and managing partners Kyle Bethancourt and Ryan Howard started the firm in 2023.

“Sallyport Partners Fund was created to utilize the proven processes our team has developed over time to generate value for like-minded investors on a larger and more impactful scale,” Foshee says in a news release.

Investors in the Sallyport fund include entrepreneurs, business executives and influential Texas families. Aside from Foshee, names of the fund’s investors weren’t disclosed.

“We are deeply committed to working hand-in-hand with management teams to drive transformative growth and generate long-term value,” says Bethancourt. “Our operational capabilities are forged from decades of firsthand experience leading, investing in, and building thriving businesses from the ground up. We have a unique appreciation for the management team’s perspective because we’ve been in their shoes.”

Those shoes have covered some pretty impressive ground:

  • Foshee is former chairman, president, and CEO of Houston-based El Paso Corp., which owned and operated a 44,000-mile natural gas pipeline network. In 2012, El Paso merged with Houston-based pipeline company Kinder Morgan in a multibillion-dollar deal.
  • Before Sallyport, Bethancourt was a vice president in the credit division of Blackstone, an investment powerhouse with more than $1 trillion in assets under management. Earlier, he worked at D.E. Shaw & Co., a New York City-based hedge fund with more than $65 billion in assets under management.
  • Before Sallyport, Howard worked at Platform Partners, a Houston-based private equity firm. Earlier, he worked for the natural resources arm of investment banking giant Goldman Sachs.

Houston university students earn top honors at global energy-poverty competition

Winner, winner

A student-led team from the University of Houston and Texas A&M University took home top prizes at last month's Switch Energy Alliance Case Competition.

Competing virtually against 145 teams from 34 countries, the students, known as The Dream Team, won third place for their plan to address energy poverty in Egypt and Turkey. They were awarded $5,000 in prize money.

The competition challenges student teams to solve real-world energy problems to "drive progress towards a sustainable and equitable energy future," according to the Switch competition's website.

“The Switch competition tackles major issues that we often don’t think about on a daily basis in the United States, so it is a really interesting and tough challenge to solve,” Sarah Grace Kimberly, a senior finance major at UH and member of the team, said in a statement from the university

Kimberly was joined by Pranjal Sheth, a fellow senior finance major at UH, and Nathan Hazlett, a finance graduate student at TAMU with a bachelor’s degree in petroleum engineering.

The Dream Team developed a 10-year plan to address Egypt and Turkey's energy poverty that would create 200,000 jobs, reduce energy costs and improve energy access in rural areas. Its major components included:

  • Developing rooftop and utility-scale solar farms and solar canopies over irrigation canals
  • Expanding wind power capacity by taking advantage of high wind speeds in the Gulf of Suez and Western Desert
  • Deploying cost-efficient technologies along the Nile for rural electrification

“People in the United States should be extremely thankful for the infrastructure and systems that allow us to thrive with power, food and water,” Sheth said in the statement. “Texas went through Winter Storm Uri in 2021—people were without electricity for weeks, and lives were lost. It still comes up in conversations, but certain regions of the world, developing nations, live that experience almost every day. We need to make that a larger part of the conversation and work to help them.”

Team Quwa, a team of four students from the University of Texas at Austin, took home second place and $7,000 in prize money.

“This journey was both intellectually enriching and personally fulfilling,” Mohamed Awad, a PhD candidate at the Hildebrand Department of Petroleum and Geosystems Engineering, said in a statement from UT. “Through the case competition, we had an opportunity to contribute meaningful ideas to address a critical global issue.”

Team Energy Nexus from India earned the top prize and took home $10,000, according to a release from Switch.

Switch Energy Alliance is an Austin-based non-profit that's focused on energy education. The Switch competition began in 2020. Teams of three to four students create a presentation and 15-minute video. The top five teams present their case studies live and answer questions before a panel of judges.

More than 3,200 students from 55 countries have competed over the years. Click here to watch the 2024 final round.

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This article originally ran on EnergyCapital.