Houston experts: Diversity is key to venture capital success

force multiplying investments

Two Houston venture capitalists — Heath Butler and Stephanie Campbell — discussed how diversity and inclusion are force multipliers for investors and factoring that in is increasingly important. Photos courtesy

Venture capital firms across the board have a goal of driving a return on their investments, but getting a good ROI and factoring in diversity and inclusion into the equation are not mutually exclusive.

In fact, on a panel at the HX Venture Fund's recent conference, Venture Houston, two investors focused on diversity and inclusion made the point that diversity is a key ingredient to successful investing. The panel, hosted by Michael Lipe, managing director at Insperity, consisted of Stephanie Campbell of The Artemis Fund and the Houston Angel Network and Heath Butler of Urban Capital Network and Mercury Fund.

"If you don't believe that diversity outperforms or that having diverse perspectives coming to the table helps your business outperform, then you probably have not been exposed to diverse thought," Campbell says on the panel.

And, as she continues, the proof is in the data "that diversity does outperform and can be a real force multiplier for your portfolio."

"In terms of returns, the Kauffman Fellows found that women-led teams generate 35 percent higher returns on investment than all-male-led teams," Campbell sites. "Pitchbook and All Raise found that women-led teams exit faster and at higher multiples than their all-male counterparts."

Butler recognizes that there's an emotional side of the discussion of diversity and inclusion — especially in this day and age — and that's nothing to disregard. But, he says, building onto that, VC is about discovering new opportunities — it's what VC funds' limited partners are expecting.

"From a more tangible perspective, we are in the business of finding untapped markets and opportunities to invest in and I believe our LPs expect us to leave no stone unturned," he says. "Ultimately you have to recognize that the hockey puck is moving in a direction where your LPs will require you to be looking under every stone to deliver a superior return."

Butler gives Mercury Fund as an example. At its founding, the team saw the middle of America as an untapped opportunity. The challenge is that investors tend to gravitate to ideas and people they know.

"So much of investing in early-stage innovation is intuitive, and investors will usually invest in what they know and resonates with them," Butler says. "But we have to recognize that there's a natural inefficiency in trying to relate intuitively to someone who's different from you."

The key is creating a team and mission with a clear intent and focus on measuring the impact. This goes down to hiring the right people with in your VC team as well as setting up a culture for diversity to succeed.

"If two hiring managers with similar needs," Butler says, "and one has a naturally inclusive mindset and the other feels pressure to meet a diversity quota — in the long run, which team will truly leverage and profit from a diverse perspective?"

Campbell says now is the time to invest in diversity — especially in Houston. During the pandemic, overall seed funding went up but funding for female founders reached a three-year low. Houston has a population doesn't have a racial majority — and that's what the entire country will look like in 2055, Campbell says.

"The opportunity we have in Houston to capitalize on diverse talent can really be a great opportunity to show the nation what can be done with that diverse talent pool," she says.

Houston also has an opportunity to support and invest in women or people of color who have been overlooked but have innovative solutions for society's most urgent problems.

"The more that we invest in diverse perspectives and diverse founders the more solutions, products, and services are going to come into the market for a broader populations and empower those economies to solve some of our deepest problems," Campbell says.

Both experts end on a call to action for their fellow investors: take inventory of the impact you have now and make intentional moves toward inclusion and equity — otherwise you're leaving money and talent on the table.

"If you don't have a diverse team, you don't have a diverse perspective, which means you have an incomplete perspective," Butler says. "You're missing out on opportunity to connect with people, purchasing power, and ultimately profits."

This week's roundup of Houston innovators includes Kathryn Worsham Humphries of All You Need Method, Heath Butler of Mercury Fund, and Serafina Lalany of HX. Courtesy photos

3 Houston innovators to know this week

who's who

Editor's note: In the week's roundup of Houston innovators to know, I'm introducing you to three innovators who have tons to share — from recent venture capital data and observations to public relations and marketing tips for startups.

Kathryn Worsham Humphries, co-founder of All You Need Method

What does your company plan on bringing into the new year — and how do you plan to communicate your efforts? Photo courtesy of All You Need Method

It's a new year — and it's time for a new marketing and public relations plan for your startup. Thankfully, that's exactly what Houstonian Kathryn Worsham Humphries and her Los Angeles-based business partner Carla M. Nikitaidis specialize in with their new company, All You Need Method. The duo penned a guest column for InnovationMap last week with tips for refocusing on your target audience and prioritizing authenticity.

"Remember, these challenging times will pass," they write. "There is massive opportunity for the businesses and brands who are willing to reflect, pivot, and plan for a brighter future." Read more.

Heath Butler, network partner at Mercury Fund

Mercury Fund's Heath Butler joins the Houston Innovators Podcast this week to discuss Houston, venture capital, and more. Photo via mercuryfund.com

After 14 years at human resources company Insperity, Heath Butler has a specialty when it comes to thinking about the future of work. Butler was recently promoted within Mercury and the the move represents another aspect the firm is focusing on — something Butler discusses on last week's Houston Innovators Podcast episode.

"The world continues to be shaped by how the workforce and the workplace — and the actual work gets — done, and that couldn't have been put to the forefront more than during COVID," Butler says. "The promotion really reflects my focus on building out a very broad and deep theme for the firm around the future of work." Read more and stream the episode.

Serafina Lalany, chief of staff at Houston Exponential

HX has released a report on Houston venture capital. Photo courtesy of Serafina Lalany

Serafina Lalany and her team at Houston Exponential have crunched the numbers again to look at what sort of venture capital deals Houston startups brought in last year.

According to her report based on Pitch Book data, the Bayou City dredged up $715 million across 117 VC deals in 2020 — a year marked by challenges and opportunities from the pandemic and the oil price drop.

In the report, Lalany found that 2020 VC trends in Houston included fewer, larger deals and a rise in angel investment. Read more.

Mercury Fund's Heath Butler joins the Houston Innovators Podcast this week to discuss Houston, venture capital, and more. Photo via mercuryfund.com

Houston VC fund's new partner to grow focus on the future of work and underrepresented entrepreneurs

HOUSTON INNOVATORS PODCAST EPISODE 67

When Mercury Fund was founded in 2005, the goal was to focus on funding underrepresented entrepreneurs.

"The firm was really built around looking for the underrepresented entrepreneur and 15 years ago, that was just the middle of the country, because all the VC investments were on the coasts," says Heath Butler, network partner, on the Houston Innovators Podcast. "And over the years, the firm has continued to look for the blue ocean in the VC market."

Nowadays, that means also finding and funding female entrepreneurs and entrepreneurs of color. And Butler co-founded the Urban Capital Network — a group that aims to democratize VC funding by helping connect minority entrepreneurs and VC firms — to do just that.

Butler was recently promoted within Mercury and the the move represents another aspect the firm is focusing on: the future of work. Butler spent 14 years at Houston-based human resources service company, Insperity.

"The world continues to be shaped by how the workforce and the workplace — and the actual work gets — done, and that couldn't have been put to the forefront more than during COVID," Butler says. "The promotion really reflects my focus on building out a very broad and deep theme for the firm around the future of work."

Butler, who's on the board of several startups and hosts a monthly event with The Ion, is hands on with entrepreneurs and helps them make sure to keep their company culture front of mind as they grow.

"I grew up in an entrepreneurial family, led by my mother," he says. "I learned so much at such a young age around worth ethic and how the job of being an entrepreneur is."

Butler discusses more about his career and venture capital in Houston on the show. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.


This week's innovators to know roundup includes Heath Butler and Samantha Lewis of Mercury Fund and Adam Kuspa of the Welch Foundation. Photos courtesy

3 Houston innovators to know this week

who's who

Editor's note: In this week's Monday roundup of Houston innovators, I'm introducing you to three innovators across the city — each in their own ways financially support the region's top innovators.


Heath Butler and Samantha Lewis of Mercury Fund

Heath Butler has been promoted to managing director of Mercury Fund, and Samantha Lewis joins the firm as principal. Photos courtesy

Houston-based Mercury Fund, which focuses on early-stage startups located in central United States, announced the promotion of Heath Butler to managing director from network partner. Additionally, Samantha Lewis — formerly investment director at Houston-based Goose Capital — is joining the fund as principal.

"Over the past few years, we've continued to build our investment team with top talent from our ecosystem," says Blair Garrou, co-founder and managing director of Mercury, in a news release.

"The promotion of Heath and the addition of Samantha will further Mercury's early-stage venture leadership in Middle America, and is illustrative of Mercury's deep commitment to diversity as a core value driver," continues Garrou. Click here to read more.

Adam Kuspa of The Welch Foundation

Adam Kuspa of The Welch Foundation joins the Houston Innovators Podcast to discuss the COVID-19 vaccine, materials science, and more. Photo courtesy of The Welch Foundation

It's been an interesting year for Adam Kuspa and the Welch Foundation as — just like any other organization — the pandemic has caused various disruptions for Kuspa and his team. At the same time, COVID-19 has forced an unprecedented public-private response from the medical community, the government, and more.

"I'm very proud of the scientific enterprise in this country and around the world — they way it's been supported, developed, and maintained over the years — to allow for something like this be even contemplated," Kuspa says on this week's episode of the Houston Innovators Podcast.

Over the last 40 to 50 years, researchers in the fields immunology, vaccine research, protein biochemistry, and more, have seen increased support, Kuspa says, and that's what made a difference in the pandemic and allowed for a vaccine to emerge so quickly. Click here to read more and to listen to the episode.

Heath Butler has been promoted to managing director of Mercury Fund, and Samantha Lewis joins the firm as principal. Photos courtesy

Houston venture capital firm makes strategic hire and promotion

fund news

A Houston-based venture capital firm has made some moves in its personnel. Mercury Fund has made one new hire and one promotion.

Mercury Fund, which focuses on early-stage startups located in central United States, announced the promotion of Heath Butler to managing director from network partner. Additionally, Samantha Lewis — formerly investment director at Houston-based Goose Capital — is joining the fund as principal.

"Over the past few years, we've continued to build our investment team with top talent from our ecosystem," says Blair Garrou, co-founder and managing director of Mercury, in a news release.

"The promotion of Heath and the addition of Samantha will further Mercury's early-stage venture leadership in Middle America, and is illustrative of Mercury's deep commitment to diversity as a core value driver," continues Garrou.

Butler joined Mercury over a year ago and has over 20 years of experience in the Houston startup ecosystem. A serial entrepreneur, he recently co-founded Houston-based Urban Capital Network, an angel investment group dedicated to democratizing capital and wealth generation for underrepresented investors. In his new role, he will continue this work to engage underrepresented founders in the community for Mercury Fund.

Meanwhile, Lewis — a Rice University MBA graduate — joins Mercury from a few years serving Goose Capital, a group of high-networth investors and serial entrepreneurs. At Goose, Lewis was responsible for leading deal sourcing, structuring, and portfolio management. Formerly a startup founder herself, Lewis will be responsible for assisting in in the review and diligence of new early-stage investment opportunities and continues to improve and diversify Mercury's deal sourcing processes.

Mercury Fund was founded in 2005 in Houston by Garrou and Dan Watkins. The firm has an office in Ann Harbor, Michigan, and has funded several Houston-founded startups, including Spruce, Ambyint, and more.

Register for some of these informative online events happening throughout the month of December. Getty Images

10+ can't-miss Houston business and innovation events online in December ​

where to be

It's the last monthly events roundup for 2020 — and this month, understandably, is a bit slow due to the holidays, but we have a roundup of the must-attend events for December.

From workshops and panels to summits and pitch parties, here are over 10 Houston innovation events you can attend virtually via online meetings. Note: This post will be updated to add more events.

December 1 — National Resilience Town Hall: Year in Review, Year Ahead

The Insurance Information Institute and ResilientH2O Partners, in partnership with the Resilience Accelerator, will hold the final session for 2020 in an ongoing series of thought-leadership among insurance, non-insurance, public sector, and technology senior executives. December's National Townhall will bring five unique perspectives together to discuss lessons-learned from 2020 and predictions for 2021's resilience and risk mitigation "agenda" across residential, commercial, industrial, government operations, infrastructure, facilities, and communities.

The event is on Tuesday, December 1, at 10 am. It's free and can be accessed online. Click here to register.

December 1 — Angel Investing 101

Learn about how to make effective angel investment decisions and find out more about the newly launched Chicago Booth Angels Network of Texas. The event's keynote speaker is Ashok Rao, serial entrepreneur and board member of Houston-based GOOSE Capital.

The event is on Tuesday, December 1, from 5 to 6 pm. It's free and can be accessed online. Click here to register.

December 1 — The Ion's Industry Day

The goal of the inaugural Industry Day is to introduce and connect minority and women owned businesses (MWBE) with The Ion's Transwestern team. The hour long event is designed to facilitate networking and connect interested businesses with Transwestern, who will run operations for The Ion and catalyze local economic growth. Following the event, interested businesses can set up a walk through of The Ion in mid-December to finalize their bid.

The event is on Tuesday, December 1, from 6 to 7 pm. It's free and can be accessed through Zoom. Click here to register.

December 2 — NASA and Your Small Business: Understanding the NASA Procurement Process

Join The Ion to learn about NASA's commitment to providing access for all categories of small businesses to participate in the procurement process.

The event is on Wednesday, December 2, at noon. It's free and can be accessed through Zoom. Click here to register.

December 3 — Capital Factory's Venture Summit

Capital Factory is calling all investors, accelerator leaders, limited partners, and more to its annual venture summit, which is taking place virtually this year.

The event is on Thursday, December 3, from 9:45 to 2 pm. It's free and can be accessed online. Click here to register.

December 3 — Evening of Pediatric Device Innovation

JLABS @ TMC and Southwest National Pediatric Device Innovation Consortium are teaming up for the sixth Annual Evening of Pediatric Device Innovation. The evening of innovation will host top experts from Houston and across the country will discuss their views on the latest in pediatric medical device innovation and updates on bringing a pediatric medical device to market.

The event is on Thursday, December 3, from 3:40 to 5 pm. It's free and can be accessed through Zoom. Click here to register.

December 3 — An Evening With Women in Corporate Innovation

Join General Assembly Houston to hear from inspiring female leaders in corporate innovation who have blazed the path to stand up and stand out. From learnings to failings and their secrets of success, this event is an opportunity to learn from the best — serious wisdom, from seriously cool women, all designed to supercharge you and your organization's success.

The event is on Thursday, December 3, from 5 to 6:30 pm. It's free and can be accessed online. Click here to register.

December 7 — Pumps and Pipes 20/20 Vision

The annual Pumps & Pipes event is focused on convergence innovation in the fields of aerospace, energy and medicine: a truly uniquely Houston approach. The day-long summit features an expo and various panels and speakers.

The event is on Monday, December 7, from 8 am to 3 pm. It's free and can be accessed online. Click here to register.

December 8 — The Cannon Q4 Pitch Party: Presented by Dell Technologies

Join The Cannon and Dell Technologies in hearing from new companies working in Digital Transformation Tech.

The event is on Tuesday, December 8, at 5:30 pm. It's free and can be accessed via Zoom. Click here to register.

December 8 — How to Start a Startup with Heath Butler of Mercury Fund

The Ion is hosting a startup 101 workshop with Heath Butler from Mercury Fund. You have an idea...now what? Before you start looking for funding, it's important to make sure that your idea is both viable and valuable — if it doesn't have a sound model and a market willing to pay for it, investors won't be interested anyway.

    The event is on Tuesday, December 8, at 5:30 pm. It's free and can be accessed via Zoom. Click here to register.

    December 10 — Greentown Lab's Energy Bar: Wrapping Up an Unprecedented Year

    Join Greentown Labs virtually for the final edition of the EnergyBar networking event for 2020. Greentown Labs is ready to put a wrap on 2020, an unprecedent year for us all. Between the opening of the new community in Houston and a renewed national policy focus on climate action, the organization is looking ahead to 2021. Entrepreneurs, investors, students, and friends of climatetech are invited to attend, meet colleagues, and engage in a community that is focused on climate action at work.

    The event is on Thursday, December 10, from 3:30 to 6:30 pm. It's free and can be access through Remo. Click here to register.

    December 15 — The State of Space

    The Greater Houston Partnership is hosting its first State of Space event featuring NASA Administrator Jim Bridenstine as the keynote speaker. Since his appointment as Administrator in April of 2018, Bridenstine has led NASA in advancing American aeronautic, science, and space exploration objectives.

    The event is on Tuesday, December 15, at noon. It's $35 for GHP members and $60 for nonmembers. Click here to register.

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    Comcast donates tech, funds to support diversity-focused nonprofit

    gift of tech

    A Houston organization focused on helping low-income communities by providing access to education, training, and employment has received a new donation.

    Comcast’s Internet Essentials program announced the a donation of a $30,000 financial grant and 1,000 laptops to SERJobs. The gift is part of a new partnership with SERJobs that's aimed at educating and equipping adults with technical skills, including training on Microsoft Office and professional development.

    “SERJobs is excited to celebrate 10 years of Comcast's Internet Essentials program,” says Sheroo Mukhtiar, CEO, SERJobs, in a news release. “The Workforce Development Rally highlights the importance of digital literacy in our increasingly virtual world—especially as technology and the needs of our economy evolve. We are grateful to Comcast for their ongoing partnership and support of SERJobs’ and our members.”

    For 10 years Comcast's Internet Essentials program has connected more than 10 million people to the Internet at home — most for the first time. This particular donation is a part of Project UP, Comcast’s comprehensive initiative to advance digital equity.

    “Ten years is a remarkable milestone, signifying an extraordinary amount of work and collaboration with our incredible community partners across Houston,” says Toni Beck, vice president of external affairs at Comcast Houston, in the release.

    “Together, we have connected hundreds of thousands of people to the power of the Internet at home, and to the endless opportunity, education, growth, and discovery it provides," she continues. "Our work is not done, and we are excited to partner with SERJobs to ensure the next generation of leaders in Houston are equipped with the technical training they need to succeed in an increasingly digital world.”

    It's not the first time the tech company has supported Houston's low-income families. This summer, Comcast's Internet Essentials program and Region 4 Education Service Center partnered with the Texas Education Agency's Connect Texas Program to make sure Texas students have access to internet services.

    Additionally, Comcast set up an internet voucher program with the City of Houston last December, and earlier this year, the company announced 50 Houston-area community centers will have free Wi-Fi connections for three years. Earlier this year, the company also dedicated $1 million to small businesses struggling due to the pandemic that are owned by Black, Indigenous, and People of Color.

    President Joe Biden appoints Houston green space guru to lofty national post

    new gig

    Aprominent and nationally acclaimed Houston parks presence has just received a hefty national appointment. President Joe Biden has named Beth White, Houston Parks Board president and CEO, the chair of the National Capital Planning Commission (NCPC), the organization announced.

    The NCPC, established by Congress in 1924, is the federal government’s central planning agency for the National Capital Region. The commission provides overall guidance related to federal land and buildings in the region. Functions include reviewing the design of federal and local projects, overseeing long-range planning for future development, and monitoring capital investment by federal agencies.

    Fittingly, White was initially appointed to NCPC as the at-large presidential commissioner in January 2012, per a press release. She was reappointed for another six-year term in 2016. Most recently, White served as the commission’s vice-chair.

    “I’m honored to chair the National Capital Planning Commission and work with my fellow commissioners to build and sustain a livable, resilient capital region and advance the Biden Administration’s critical priorities around sustainability, equity, and innovation,” White said in a statement.

    Before joining Houston Parks Board in 2016, White served as the director of the Chicago Region Office of The Trust for Public Land, where she spearheaded development of The 606 public park and was instrumental in establishing Hackmatack Wildlife Refuge.

    Renowned in the Windy City, she also was managing director of communications and policy for the Chicago Housing Authority; chief of staff for the Chicago Transit Authority’s Chicago Transit Board; and assistant commissioner for the City of Chicago’s Department of Planning and Development. She was the founding executive director of Friends of the Chicago River, and currently serves on the Advisory Board for Urban Land Institute Houston.

    The graduate of Northwestern and Loyola universities most recently received the Houston Business Journal’s 2021 Most Admired CEO award, per her bio.

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    This article originally ran on CultureMap.