At a recent virtual event, experts discussed the hard tech wave that's coming for Houston. Photo via Getty Images

The past couple decades of innovation has been largely defined by software — and its been a bit of a boom. However, lately it's become evident that it's time for hardware innovation to shine.

At the HX Venture Fund's recent conference, Venture Houston, a few hard tech innovators joined a virtual discussion on the future of hardware — and what Houston's role will be in it.

When it comes to advancing technology for humankind, Adam Sharkawy, founder and managing partner of Boston-based Material Impact, a HXVF portfolio fund, says it's time to expand the walls of what is possible.

"Unlike other types of technologies that may facilitate the possible, deep and hard technologies expand what is in the realm of the possible," he says on the panel. "Software has caught up, and we need a new deep tech wave."

And the future looks promising, as Sharkawy says he's seen hard tech grow over the past 5 to 7 years by about 22 percent. Nic Radford, president and CEO of Houston Mechatronics agrees it's time to shift the focus to hard tech.

"The Information Age was the ubiquitous manipulation of the virtual world, but now we need to uncover the ubiquitous manipulation of the physical world is," he says. "And we need to make those investments toward that."

But investments seem, at least in the recent past, harder to come by for hard tech startups compared to software companies with quick exit strategies.

"Deep tech is traditionally thought of as requiring deep pockets," Sharkawy says.

Radford says there was over $167 billion in capital deployments last year, and only 8 percent of that went to industrial or hard tech. Hardware, he says, is tougher to evaluate, they take longer to exit and are tougher to scale.

"To me that's what makes them a gold mine," Radford adds. "It's an underserved market for sure, and that's because we're tougher to evaluate."

Something to note though, he continues, is that hard tech is going to have a bigger societal impact, but maybe it's not the one with the biggest return.

"I think corporates have an special role to play in the inevitability of hard tech," Radford says. "They aren't completely motivated by financial returns."

Gaurab Chakrabarti, CEO and co-founder of Solugen, says he's had a different experience with raising funds. The Houston entrepreneur has raised over $100 million and is planning to go public soon. He's achieved this by attracting investment from the top VC funds in the country. If you zero in on these powerful funds, you can see they are dedicating more and more funds to this arena. And, he predicts, other VC funds will follow.

"This is a unique time for hardware companies to go and and raise from the top venture capitals of the world," Chakrabarti says.

The city of Houston, with its firm footing in the energy and space industries has an important role to play in this new era.

"The Houston area has all the key ingredients to be an innovation hub — no question," Sharkawy says.

The panelists identified Houston's fine education institutions, major corporations present, access to talent, and more as indicators for success. But the innovation here needs to continue to develop intentionally.

"I'd love to see Houston not try to copycat into a general tech hub," Sharkawy says. "Instead it would be great for Houston leverage its unique position as a leader in energy and space and help its constituents of more traditional energy — big corporates, for example — transform into the new frontier."

Vanessa Wyche, deputy director at NASA's Johnson Space Center, says she's seen the space industry take off as the field becomes more and more commercialized. And locally there's a lot of potential for Houston and all the resources and infrastructure that already exists.

"It's about taking what you're good at, and making it better," she says.

Each of the panelists expressed confidence in this evolving wave of hard tech — and are keeping a close watch on the major players as well as the city of Houston.

"We're going to have to get into the world and do something," Radford says. "That next wave of innovation is specifically interacting with our environment, in my opinion."

The journey from ideation to creation, and then manufacturing can be difficult, but rewarding. Photo courtesy of OKGlobal

These are the risks and rewards of prototyping, according to Houston expert

Guest column

We live in a digital world. Music, movies, and even family photos have become primarily digital. Computer software offers us a range of comfort and efficiency and has become part of our daily routine. So, why would anyone want to build a career around physical product development?

Simple, almost every software product or next big thing relies on a well-executed physical product development project. Apps need a place to run, games need a console to be played, and pictures need a camera to be taken.

Physical product development means dreaming of something that does not yet exist and solves an existing problem. It means taking an intangible idea and making it into a physical item that people can see, touch, and use.

The journey from ideation to creation, and then manufacturing can be difficult, but rewarding. By understanding the process, you'll find that not only is your inspiration worth pursuing, but it may be one of the most fulfilling things you will ever do.

From inspiration to perspiration

Every product development project begins with a vision, the identification of a problem and a solution for that problem. That initial spark of inspiration is what drives the entire project.

Look for a problem that hasn't been solved and solve that problem, or try the reverse. Think of a product idea, and then work backwards to find the need. Regardless, one cannot be successful without the other.

Projects require this problem, or need, because it embodies the product's target market. A product idea without a well-defined need has no reason to exist, and if it did, it would be downright perplexing.

Once you identify your need and idea, start your research.

Test the validity of your idea. How much of a market exists for your problem-solving miracle? Send out surveys, look at various markets, conduct data analyses, and generally, do everything in your power to ensure that your product should be made.

Then, start making something.

From concept to reality

The design, prototype and manufacturing stages are what bring your inspiration closer to reality. Turning it into a concrete product means letting go, and that can be scary.

Initial concept designs can be done in a variety of different ways. Detailed sketches and blueprints could be drawn up, or CAD drawings can be created. This concept design can help you explain your idea to others, including partners and investors. What works even better, though, are prototypes.

A prototype is a preliminary model of your product that can help you determine the feasibility of different aspects of your design. You can make a functional prototype, which acts as a proof-of-concept for your idea, or you may create aesthetic prototypes that will test the look and feel of your product.

Once you nail down the ideal appearance and physicality of your product, you will need to combine the two disciplines as seamlessly as possible. This performance prototype will effectively demo your final product.

Finally, you can prepare your product for production. Designing for manufacturability (DFM) means ensuring that your product can be made efficiently and cost-effectively. DFM allows you to mistake-proof your product by choosing the best manufacturing materials and methods, while keeping in mind the appropriate regulations for your desired market.

From nothing into something

The product development process often changes. Trends like crowdsourcing and innovative fast-to-market solutions constantly upend the process and make it new again. Some automakers, for example, want to innovate the design process using existing customer data — similar to how companies like Microsoft and Apple create iterative versions of their software product development projects.

Getting your product to market can be tough, but certain approaches can ease the burden. Create a simpler product. Fail fast and fail cheap with lean development, meaning limit your risk to maximize your return. Also, never underestimate the importance of customer feedback and intellectual property protection throughout the process.

With that said, invest in yourself and your inspiration, and you will avoid that nagging what if-mentality that drives regret. Great reward always requires risk, but there are also ways to invest smarter. Use available resources and give your dream the best chance for success.

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Onega Ulanova is the founder of OKGlobal.

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Mark Cuban calls AI ‘the greater democratizer’ for young entrepreneurs

eyes on AI

Texas billionaire Mark Cuban—whose investment portfolio includes Houston-based Holliball, a startup that makes and sells large inflatable holiday ornaments—believes AI is leveling the playing field for budding low-income entrepreneurs.

At the recent Clover x Shark Tank Summit in Las Vegas, the Shark Tank alum called AI “the greater democratizer.”

Cuban told Axios that free and low-cost AI tools enable disadvantaged teenagers to compete with seasoned professionals.

“Right now, if you’re a 14- to 18-year-old and you’re in not-so-good circumstances, you have access to the best professors and the best consultants,” Cuban said. “It allows people who otherwise would not have access to any resources to have access to the best resources in real time. You can compete with anybody.”

While Cuban believes AI is “the great democratizer” for low-income young people, low-income workers still face hurdles in navigating the AI landscape, according to Public Works Partners, an urban planning and consulting firm. The firm says access to AI among low-income workers may be limited due to cost, insufficient digital literacy and infrastructure gaps.

“Without adequate resources and training, these workers may struggle to adapt to AI-driven workplaces or access the educational opportunities necessary to acquire new skills,” Public Works Partners said.

Texas 2036, a public policy organization focused on the state’s future, reported in January AI jobs in Texas are projected to grow 27 percent over the next decade. The number 2036 refers to the year when Texas will celebrate its bicentennial.

As for the current state of AI, Cuban said he doesn’t think the economy is witnessing an AI bubble comparable to the dot-com bubble, which lasted from 1998 to 2000.

“The difference is, the improvement in technology basically slowed to a trickle,” Cuban said of the dot-com era. “We’re nowhere near the improvement in technology slowing to a trickle in AI.”

CPRIT hires MD Anderson official as chief cancer prevention officer

new hire

The Austin-based Cancer Prevention and Research Institute of Texas, which provides funding for cancer research across the state, has hired Ruth Rechis as its chief prevention officer. She comes to CPRIT from Houston’s University of Texas MD Anderson Cancer Center, where she led the Cancer Prevention and Control Platform.

Before joining MD Anderson, Rechis was a member of the executive leadership team at the Livestrong Foundation, an Austin-based nonprofit that supports people affected by cancer.

“Ruth has widespread connections throughout the cancer prevention community, both in Texas and across the nation,” CPRIT CEO Kristen Doyle said in a news release. “She is a long-term passionate supporter of CPRIT, and she is very familiar with our process, programs, and commitment to transparency. Ruth is a terrific addition to the team here at CPRIT.”

Rechis said that by collaborating with researchers, policymakers, public health leaders and community partners, CPRIT “can continue to drive forward proven prevention strategies that improve health outcomes, lower long-term costs, and create healthier futures for all.”

At MD Anderson, Rechis and her team worked with more than 100 organizations in Texas to bolster cancer prevention initiatives at clinics and community-based organizations.

Rechis is a longtime survivor of Hodgkin lymphoma, a type of cancer that affects the lymph nodes, which are part of a person’s immune system.