The Business Angel Minority Association launched at a breakfast event during Houston Tech Rodeo. Photo by Nijalon Dunn

Maria Maso was frustrated with her investment opportunities in Houston. So, she's doing something about it.

Maso has launched the Business Angel Minority Association, or baMa, to gather established or brand new angel investors to move the needle on investments into minority-founded startups. The organization, which launched at a breakfast event at Amegy Bank's Cannon Tower during the Houston Tech Rodeo week, is now seeking investor members.

A native of Barcelona, Maso moved to Houston around seven years ago and started investing in startups a few years later. She tapped into a local organization, but didn't have a positive experience.

"I joined an organization in town, and I started to see deals. But I never made an investment in those deals. I faced two issues: They weren't inclusive enough and no one was telling me how to invest," Maso says.

She joined other angel groups around the world, wrote a lot of checks, and still was frustrated with what was available in Houston. She reached a breaking point in October and her friend and colleague, Juliana Garaizar, told her, "If you don't like it, change it."

So, baMa was born and has launched with lofty goals. Maso, founder and CEO, and Garaizar, president, want to round up 100 investors by the end of 2020. And they want these investors to write checks.

"We are not a networking organization. We are an investment organization. We are expecting at some point that you are writing a check to a startup," Maso tells the crowd. "If we are doing our job properly and we are showing you the right startups, you should be able to make a check at some point."

The organization's members will see deal flow and regular pitches and programming. At the launch event, three Houston companies — Kanthaka, on-demand personal training app, Security Gate, cybersecurity startup, and Pantheon, wellness program app — pitched to the room.

"This is a great opportunity — this is not impact investing or doing the right thing," Garaizar says. "This is actually going to generate money. Investing in diversity gives a 35 percent more ROI to investors."

BaMa already has plans to grow, Maso says. The organization will have a national presence with multiple chapters across the country.

"We are already discussing with Boston, Miami, and Palo Alto," says Maso. "We don't have an agreement yet, but my plan is by the end of the year open the second chapter."

But starting in Houston was intentional. There's so much untapped potential in Houston — money wise and in terms of startups.

"We are in Houston, the most diverse city in the U.S., and still our investment community doesn't look like our entrepreneurship community," Garaizar says. "The only way we are going to bridge this gap is if our investment community starts looking more like the entrepreneurship community."

For Carolyn Rodz, founder of Houston-based Alice and baMa partner, she's tired of hearing about the lack of minority investors and diversity of investments. This organization is about making a move.

"We've had enough talk with all these issues — how do we actually take the actions to move this forward," Rodz says. "I'm tired of hearing the same story year after year, and every time I hear the statistics, I roll my eyes. We know the story. We've heard it. Let's actually do something to change it."

Is the venture capital model broken? Are lower middle-of-the-country startup valuations a benefit or a hindrance? And what will the impact of the coronavirus be on startup investing? Getty Images

Overheard: Houston venture capital experts weigh in on the city's investment future

#HTXTechRodeo

Last week's Houston Tech Rodeo celebrated Houston's development as an innovation ecosystem. One major component of the Bayou City's innovation growth is the amount of venture capital activity happening in Houston.

At a panel on Monday, InnovationMap hosted a discussion between three local investors about whether or not the VC model is broke, if Houston is too far behind the coasts, and even the effect of coronavirus on investment.

If you missed the event, here are some overheards from the panel.

“We weren’t sure whether [Houston] would be the best place or the easiest place to raise money in, but it’s been incredibly welcoming."

— Leslie Goldman, general partner at The Artemis Fund. The female-founded, female-focused fund launched last year and has made two investments so far — with three more to announce in the next few weeks.

“We have a lot of experience and expertise, and a lot of money and deep pockets. But how do we make sure we are taking advantage of everything going on in Houston outside of just investing in other funds?”

— Samantha Lewis, director of Goose, explains that Goose's model is a network of high net worth investors who share deal flow and diligence duties. The organization invests $10 million annually.

“We have a much more operator and business fundamental mindset. When we look at companies at Goose, we ask, ‘what’s the path to profitability?” — not just what the growth rate is.”

— Lewis says, adding that Houston has a different psychology of success than coastal innovation ecosystems, and that's apparent in her investors at Goose.

“As an entrepreneur in Houston you have to understand one thing, and that one thing is that companies in the middle of the country generally get a discount to companies on the coast."

— Blair Garrou, managing director at Mercury Fund says on the discrepencies between valuations of Houston companies versus coastal companies. Garrou explains that, "companies in the middle of the country grow at lower rates than their coastal counterparts not because of their company but because of the amount of capital that you put to work." Coastal VCs want to go all in on the startups with technology that's going to disrupt and take over an entire market.

“I think the question now is can Houston get caught up in the somewhat irrational exuberance so that you as entrepreneurs don’t have to get diluted as much in your investment. My thought is probably not, if I’m being honest.”

Garrou says of this big-money, all-in approach to venture capital you see on the coasts.

“When you talk about all-female-founded companies, the average valuation is $12 million, and all-male-founded companies, $25.5 million is the average. That’s a female discount.”

— Goldman says, acknowledging that while Houston companies are discounted compared to the coasts, companies with all female founders are also discounted despite making up 17 percent of exits last year.

“VCs have raised larger, and larger funds. With more funds, they have to deploy more money. A lot of them are competing with each other and that drives up valuations.”

— Goldman says, adding that she's heard the VC model being referred to as "broken" on the coasts, and it all comes down to valuations and growing VC funds with too much money.

“Whether or not coronavirus becomes the epidemic that everyone things it will be, what’s happening is it’s correcting the market.”

— Garrou says, comparing the pandemic to the 2008 recession. "I think we have an opportunity. If you look at every single downturn in the market, the greatest companies have come from those downturns," he adds.

“So many people are interested in Houston because they do believe Houston has great deals at more reasonable valuations. It should be really good for founders — it’s just a matter of not comparing yourself to what the coastal companies are getting.”

— Garrou says, adding that what's missing is a sophisticated angel investment foundation. While organizations like the Houston Angel Network and Goose exist, Houston is too big for just what exists now.

“I think one of the important things to do as we are growing the ecosystem is remember that we are not going to be a copy and paste model. We need to do it in our own way.”

— Lewis says about Houston's innovation ecosystem. "What we need to think about and embrace is different models of deploying capital," she says citing Goose as an example. "We need to get creative about that."

Investor Jason Calacanis lent his time and expertise to seven Houston startups. Photo via twitter.com/houex

7 Houston entrepreneurs pitch their companies to famed Silicon Valley investor

#HTXTechRodeo

Imagine having to pitch your company to a famed investor who has made investments in over 200 companies — seven of which achieved unicorn status. Now, imagine having to do that onstage in front of an audience — in person and virtually viewing.

That was seven Houston entrepreneurs' morning on March 4 during Houston Tech Rodeo. Jason Calacanis heard from the founders and gave his feedback on their business models, as well as general pitch advice. While some of his notes were in the realm of constructive criticism, he stayed pretty positive — for the most part.

"If you're a founder, you're signing up for a 70 percent failure. It's basically a suicide mission, except you don't actually die. You just hit the reset button and go again," Calacanis says to the crowd.

Calacanis also has a great deal of optimism for the region itself, noting on the potential of the innovation ecosystem, and, as an aside, the local basketball team.

"There's no reason Houston as big as a center as Austin has become," Calacanis says. "All it takes is for some of the rich people to say, 'instead of investing in some bond or Wall Street somewhere where they don't know what's going on and to take it and pay it forward with an entrepreneur."

Here are the seven Houston companies that pitched fir Calacanis, as well as some of his feedback.

Topper Luciani, CEO and founder of Goodfair

goodfair

Houston-based Goodfair sells bundles of used clothing at a low cost. Photo courtesy of Goodfair

Kicking things off was Topper Luciani, CEO and founder of Goodfair, CEO and founder of Goodfair. On a mission to counteract the pollution of fast fashion, the company, which launched in 2018, sells second-hand clothing using "mystery shopping," shipping all of their clothing in variety packs chosen according to a customer's size and taste. This eliminates the cost of photographing, measuring, lowering the price for both the customer and the company.

"Climate chance is Gen Z's crisis, and they are our customers," Luciani tells Calacanis and the crowd.

Goodfair expects to do $5 million in revenue this year, as well as raise its seed round. Calacanis give Luciani advice to make sure he answers the question of, in a world with recycled clothing stores and a growing need for environmentalism, why now?

Katharine Forth, CEO and founder of Zibrio

Balancing is important throughout your life, and Zibrio has the tools and tips for you to use to stay centered. Pexels

From NASA to your bathroom floor — Katharine Forth, CEO and founder of Zibrio, has found a new way to track balance. With her company, people can have the everyday ability to figure out how balanced they are on scale of 1 to 10. The scale gathers data from your weight, your postural control, your muscles and other factors to calculate the rating.

But Forth's business is split between two products — a consumer-focused scale and a scale made for medical professionals to use. Calacanis says it's one scale too many and to focus on just one for now. He compared the company to if Uber tried to launch its upgrades its made over the years all at once.

"You're coming out of the gate with UberPool and UberBlack. Big mistake," he says.

Amy Gross, founder and CEO, VineSleuth Inc

vinesleuth

Houston-based VineSleuth created a custom algorithm to match you with new wines based on wines you've had in the past. Courtesy of VineSleuth

Picking wine out isn't rocket science, and yet, "confusion is costing the industry billions," says Amy Gross, founder and CEO, VineSleuth Inc. The company's custom algorithm is backed by research from sensory scientists at Cornell University, and relies on both data collection and machine learning to determine specific wines that will match an individual customer's tastes.

The B2B approach has launched in a few restaurants around town and, as of this week, the Houston Livestock Show and Rodeo's Wine Garden. But how Gross is currently approaching business isn't exactly attractive to investors.

"The business comes across as a small niche business, which is going to cause investors to run," Calacanis explains.

His advice is to use the technology to prove to restaurants and bars that they are overpaying for their wines.

Panos Moutafis, CEO and co-founder, Zenus Biometrics

Zenus Biometrics uses its facial recognition software to provide seamless check in at events around the world. Courtesy of Zenus Biometrics

What started as a convenient way to check into events is now a facial recognition solution to event data. Zenus Biometrics can scan faces of event attendees for security — but also for data analytics, says Panos Moutafis, CEO and co-founder.

While the tech company has already evolved, Calacanis saw even more potential for the software, comparing it to the iPhone. The device is used more for a camera and app usage than an actual phone.

"As technologists we build something," Calacanis says. "Then we find out what people actually use it for."

While based in Houston now, Moutafis mentions that he will soon be relocated to Austin.

Safir Ali, co-founder and CEO of Hamper

Houston-based Hamper, which makes dry cleaning convenient, won the Rockets and BBVA Compass' LaunchPad competition. Courtesy of Hamper

Safir Ali grew up in his parents' dry cleaning store, and he observed that the biggest inconvenience for customers was them trying to make it to the cleaners to get their clothes before it closed. His company, Hamper, aims to provide a solution as "the Red Box of dry cleaning." Customers can deposit their dry cleaning in a kiosk in their office building, and it will be delivered to pick-up locations.

Calacanis liked that Ali has a background in the dry cleaning business."It takes somebody who is so obsessed that they aren't going to give up," he says, adding that he liked Ali's story.

"When you have something new – something that's novel, you could get a lot of attention," Calacanis says. "For things that are not novel, you have to use performance. You have to use the metrics."

Dyan Gibbens, founder and CEO, Trumbull Unmanned

Trumbull Unmanned equips energy companies with data-retrieving drones. Photo via trumbullunmanned.com

Trumbull Unmanned has created an enterprise software company to analyze data collected from drones flying over oil and gas sites. The technology allows workers to maintain a safe distance and still collect the information needed. Dyan Gibbens, founder and CEO, has secured some impressive contracts with companies, including Exxon.

Calacanis asked Gibbens about those contracts and how much they were usually for, but didn't like her first answer.

"Every answer we get as investors is, 'It depends,'" Calacanis says, explaining a "pro tip" for entrepreneurs. " You want to lead with some examples and get some ground truth. Sell us that ground truth."

Calacanis' next piece of advice for Gibbens was to add a second set of data collecting technology, such as a moisture sensor or heat sensor, creating two sets of data for clients.

"Being agnostic to how you solve the problem is [a big opportunity]. Also, that becomes an upsell," Calacanis says.

Ksenia Yudina, founder and CEO, UNest

UNest is a tax-free way to save money for your children's education. Photo via unestapp.com

UNest is using user-friendly app technology to set up college funds for millennial parents. And Founder Ksenia Yudina has gotten some great reception, which has caused financial advisers to take note and even reach out. But Calacanis says they are, in a way, the enemy for her product and she needs to not spread out her resources trying to partner with financial advisers.

"Part of being a successful founder is knowing what you need more and what to stay focused on," Calacanis says. "If you remain a product that people like, everyone is going to drown you in opportunities. And as CEO you have to know when to say no."

It's a busy month in Houston. Luis Alvarez/Getty Images

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

Where to be

Editor's note: SXSW has been canceled due to the coronavirus since the publishing on this events roundup. The original version of this article is below.

March is a busy month for Houston in general — but especially when it comes to innovation. The inaugural Houston Tech Rodeo starts out the month and the Rice Business Plan Competition closes out March in a few weeks — and the interactive weekend at SXSW falls right in the middle of the month for those planning the trip to Austin.

But for the Houston innovators in the energy industry, March got a little less busy when CERAWeek by IHS Markit was canceled due to the growing threat of the coronavirus, or COVID19.

Should any other events below have that same fate, this article will be updated.

March 2-6 — Houston Tech Rodeo

A week full of events, the Tech Rodeo is made up of over 30 innovation events across Houston. These are InnovationMap's picks for what to attend during the week. For a complete list of the events (most of which are free), head to the website.

Details: The event is from Monday, March 2, to Friday, March 6 across Houston. Learn more.

March 5 — Space Center Houston's Thought Leader Series: Designing for Human Performance

Learn how human factors engineering relates to spacecraft and spacesuit design while celebrating Women's History Month and the 20th anniversary of the International Space Station. Speakers include Celena Dopart, human factors engineer for Starliner at Boeing, and Katie Spira, NASA flight controller.

Details: The event is at 7 pm on Thursday, March 5, at Space Center Houston (1601 E NASA Pkwy). Learn more.

March 6 — Premier Talks: Women in Innovation & Technology 

Join this panel of accomplished women as they discuss the importance of being a woman in the current workforce and leading among your peers. Be empowered to self-evaluate, inspire those around you, and raise the bar on your professional goals. Discuss the challenges women face in a male dominated technology workforce and why it is important to take the limits off of your thinking.

Details: The event is from 9:15 to 11 am on Friday, March 6, at GA Houston (1301 Fannin St, Floor 21). Learn more.

March 6 — The Greater Houston Partnership’s Rise to the Top

Celebrating International Women's Day, the Greater Houston Partnership and the Partnership's Women's Business Alliance brings the Rise to the Top event. Expect a keynote address from Gretchen Watkins, president atShell Oil Company and executive vice president at Global Unconventionals, Shell Oil Company, and candid conversations from a panel of female executives discussing the challenges and triumphs of succeeding as a woman in today's business environment.

Details: The event is from 10:30 am to 1:30 pm on Friday, March 6, at Hilton Americas (1600 Lamar St.). Learn more.

March 10 — Equinor & Techstars Energy Accelerator Meet & Greet

If you're an energy-focused startup, don't miss this info session with the Equinor & Techstars Energy Accelerator, which is visiting Houston and looking for the 10 best energy companies for its next cohort.

Details: The event is from 6 to 9 pm on Monday, March 10, at The Ion (1301 Fannin Street, Suite 2440). Learn more.

March 10-11 — Energy 2.0: Equality, Environment, and the New Economy

Join over 100,000 people taking part in Energy 2.0 2020; an innovative experience that addresses new frontiers in the energy industry where business, workforce, environment, innovation, and policy intersect. Spread across multiple locations and continents, corporate watch sites around the globe, and simulcast online, Energy 2.0 brings energy professionals and a diverse mix of experts across various disciplines together for learning and networking opportunities.

Details: The event is from Monday, March 10, to Tuesday, March 11, online and at The Westin Houston, Memorial City (945 Gessner Rd.). Learn more.

March 12 — Lunch n' Learn: In Today's Market - Do Patents Even Matter?

Inventors and business professionals are asked to review the claims of their patent application before it is filed. This step is THE critical step that is supposed to ensure that the claims will protect their invention. The decision you make here determines if you will be part of the 97 percent of all patents that never recoup the cost of filing them.

Details: The event is from noon to 1:30 pm on Wednesday, March 12, at The Ion (1301 Fannin Street, Suite 2440). Learn more.

March 19 — Science First: How 3D Printing is Reshaping the Future of Healthcare

Technology is evolving faster than ever – and advancements in 3D printing could revolutionize the delivery of healthcare products and solutions to change the trajectory of health for humanity.

Details: The event is from 11:30 am to 2 pm on Wednesday, March 19, at JLABS @ TMC (2450 Holcombe Blvd.). Learn more.

March 24 — How to Form a Micro VC Fund Workshop at Mercury Fund

Welcoming all angels, previous founders, MBA students, aspiring and current venture capitalists that are interested in learning more about the basic essentials for starting a small venture fund. Speakers are Blair Garrou of Mercury Fund and Justin LaPoten of BADR Investments.

Details: The event is from 10 to 11 am on Tuesday, March 24, at Mercury Fund (3737 Buffalo Speedway, #Suite 1750). Learn more.

March 25 — 2020 H. Albert Napier Rice Launch Challenge - Startup Competition

The H. Albert Napier Rice Launch Challenge Startup Competition is Rice's newest entrepreneurship competition, awarding over $60,000 in prize money to Rice-affiliated teams. Students and alumni enter business ideas (high growth ventures or small business ideas) to compete.

Details: The event is from 6 to 9 pm on Wednesday, March 25, at Liu Idea Lab For Innovation & Entrepreneurship (Rice University - Cambridge Office Building). Learn more.

March 26 — T3CH Workshop: Grow With Google "Using Data to Drive Business Growth"

In this T3CH workshop, you'll learn best practices on data-driven decision making; and get practical guidance on how to find and analyze trends regarding online customer engagement with your business, so you can turn those insights into well-informed, actionable decisions.

Details: The event is from noon to 1 pm on Thursday, March 26, at Impact Hub Houston @ The Cannon Post Oak (675 Bering Drive, #200). Learn more.

March 26-28 — Rice Business Plan Competition

The event — dubbed the "world's richest and largest student startup competition" — begins later this month. The Rice Business Plan Competition will host 42 student teams from all over the world. The three-day contest consists of pitches, judging, and a closing banquet where the winners are revealed.

Details: The event is from Thursday, March 26, to Saturday, March 28, at Rice University and the Hilton Americas. Learn more.

This week's Houston innovators to know roundup includes Harvin Moore, James Lancaster, and Joshua Baer. Courtesy photos

3 Houston innovators to know this week

who's who

Today starts the Houston Tech Rodeo — a week full of innovation-focused events — and its sure to corral entrepreneurs and investors across the city spur discussions of innovation and technology.

This week's Houston innovators to know includes the man at the helm of the organization behind the Tech Rodeo, plus two investors that are making moves in Houston as well as statewide.

Harvin Moore, president of Houston Exponential

Courtesy of HX

Houston Exponential has helped to coordinate over 30 innovation-focused events for the inaugural Houston Tech Rodeo, which will take place March 2 to 6 — in coordination with the start of the Houston Livestock Show And Rodeo — and will feature panels about diversity, reverse pitch events with startups and accelerators, on-stage office hours, and more.

"Really one of the things that makes a tech ecosystem like Houston really work and purr is when people get together, and people are able to bump into each other and bounce ideas off each other. Businesses do well, ideas thrive, and things happen," Harvin Moore, president of HX, says on the Houston Innovators Podcast. "We basically saw this as an opportunity to let the startup development organizations in town schedule their events around a particular week that really look good on a calendar."

Click here to read more and stream the episode.

James Y. Lancaster, Texas branch manager for Arkansas-based VIC Technology Venture Development

Courtesy of VIC

James Lancaster, Texas branch manager for Arkansas-based VIC Technology Venture Development, knows most startups fail for one of three reasons — no market need, running out of money, and not having a strong team. In his most recent guest article for InnovationMap, Lancaster dives into this third reason with key things founders must think about to give their startup the best shot at success.

"Like market need, evaluating the management team is on virtually every venture capitalist's list of what they look for in their target investments and you need to get it right," Lancaster says.

Click here to read more.

Joshua Baer, founder and CEO of Capital Factory

Courtesy of Capital Factory

While not technically a Houstonian, this Austinite gets an honorary title for his work here. Austin-based accelerator and investment organization Capital Factory recently merged with Station Houston, and CEO and Founder Joshua Baer says it's just the beginning of his focus on Houston startups.

"In total right now, we have 40 companies ever that have joined our accelerator from Houston, which is still a pretty significant number," he tells InnovationMap. "This year, we expect more than 40 companies to join the accelerator from Houston."

Click here to read more.Click here to read more.

Harvin Moore, president of Houston Exponential, discusses the inaugural Houston Tech Rodeo on this week's episode of the Houston Innovators Podcast. Courtesy of HX

Houston Exponential wrangles up a week full events to spur innovation in Houston

HOUSTON INNOVATORS PODCAST EPISODE 20

Harvin Moore and Houston Exponential are bucking the idea that Houston doesn't have a booming innovation economy by introducing a week full of events across town that promote and spur innovation in the Bayou City.

Houston Tech Rodeo will take place March 2 to 6 — in coordination with the start of the Houston Livestock Show And Rodeo — and will feature panels about diversity, reverse pitch events with startups and accelerators, on-stage office hours, and more.

"Really one of the things that makes a tech ecosystem like Houston really work and purr is when people get together, and people are able to bump into each other and bounce ideas off each other. Businesses do well, ideas thrive, and things happen," Moore says on the show. "We basically saw this as an opportunity to let the startup development organizations in town schedule their events around a particular week that really look good on a calendar."

Moore says HX is not an events-hosting platform, but creating these events is right in line with part of the organization's goals — creating collisions between all the major players within innovation, from entrepreneurs to investors.

"We are about accelerating Houston's technology ecosystem, and certainly an important part of accelerating is to help connect the pieces of the ecosystem," Moore says. "We have a connecting role, and events is only one part of that role."

In the episode, Moore goes into detail about the week full of events and what his mission is as president of HX. Plus, he explains why he is so optimistic and positive about Houston's innovation ecosystem. Listen to the full episode below — or wherever you get your podcasts — and subscribe for weekly episodes.


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Rice University research: Collaboration with the community can be key to success

houston voices

In Pittsburgh, a coalition of 100 community groups brokered a deal with developers of the Pittsburgh Penguins ice hockey team for $8.3 million in neighborhood improvements. In Oakland, California, developers of an $800 million high-tech complex promised local residents 50 percent of its construction jobs. And in Chicago, the Obama Presidential Center is working with residents to shield them from skyrocketing rents.

Community Benefits Agreements, or CBAS, as these agreements are called, are increasingly common between businesses and the places where they want to set up shop. But are they worth the money? To find out, Rice Business professor Kate Odziemkowska joined Sinziana Dorobantu of New York University to analyze market reactions to 148 CBA announcements between indigenous communities and mining firms in Canada. The financial value of these agreements, the researchers found, was real.

While it's easy to imagine that CBAs are just costly giveaways, they're more than goodwill gestures. Instead, they are legally enforceable contracts to distribute benefits from a new project and to govern the response to any potential social and environmental disruptions. For businesses, the researchers found, they are also good strategy, because they prevent costly, drawn-out conflict.

To conduct their research, Odziemkowska and Dorobantu analyzed a sample of 148 legally binding CBAs signed in Canada between mining firms and indigenous communities between 1999 and 2013. In Canada, mining companies and indigenous communities often hammer out agreements about extraction and use of local resources. Studying only the mining sector let the researches control for the economic variations that characterize different industries.

Since CBA negotiations cannot be disclosed, the announcement of such agreements represents new market information. To conduct their study, the researchers tracked the market reaction to these announcements, using a technique that measured short-term returns.

Creating CBAs from the start, they found, can head off catastrophic costs later. That's because even when a company has disproportionate economic strength, the public relations, legal and economic costs of community conflict can be draining. Consider the 1,900-kilometer Dakota Access oil pipeline, whose developers faced six months of round-the-clock protests that included nearly 15,000 volunteers from around the world. The drumbeat of litigation and negative news coverage still continues today.

In general, the researchers found, the more experience a community has with protests or blockades, the more firms gained from signing a CBA. Property rights protections also provide strong incentive for making a deal. Mining companies, for example, need access to land to do business. Communities with robust property rights to the resource or location sought by the firm have strong standing to stop that firm if they don't make a deal.

Because access to valuable resources like land or intellectual property can mean the difference between financial success or failure, Odziemkowska and Dorobantu said, the lesson from their findings extends far beyond Canadian mines. It's a lesson Disney learned the hard way when it failed to acknowledge the culture of Norway's Sami people in "Frozen." Assailed for cultural appropriation by using, but not crediting, traditional Sami music, Disney quickly made amends. After negotiating with the Sami people, Disney pledged to consult with them and portray them thoughtfully in the film's sequel.

The deal may have cost Disney on the front end, but it was nothing compared to the advantage of freezing out years of bad press.

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This story originally ran on Rice Business Wisdom. It's based on research by Kate Odziemkowska, an assistant professor of Strategic Management at Rice University's Jones Graduate School of Business.

5 innovation-focused takeaways from the Greater Houston Partnership's annual report

BY THE NUMBERS

In an annual economic report from the Greater Houston Partnership, researchers and data scientists outlined the city's economy by the numbers, and Houston's industries such as technology, health care, energy, and more were all represented.

The 2020 Houston Facts was released in an virtual event hosted by GHP and its team of data specialists. Here's what you need to know from the event and the report, which can be found online.

The Texas Medical Center is focusing on five new institutes

Screenshot via Houston Facts 2020

The Texas Medical Center has established itself as a topic of its own in the Houston Facts report. The 61-member nonprofit that connects medical institutions across the city. The organization is working on a new campus, TMC3, that is expected to complete in 2022 and bring an annual economic impact of $5.2 billion to the state of Texas along with 30,000 jobs. From

According to the report, TMC is continuing to develop five institutes that compliment the organization's focus on innovation, regenerative medicine, health policy, and more:

  1. TMC Innovation Institute
  2. TMC Health Policy Institute
  3. TMC Clinical Research Institute
  4. TMC Regenerative Medicine Institute
  5. TMC Genomics Institute

Houston's port business continues to stay strong, with potential for growth following expansion

Screenshot via Houston Facts 2020

The Port of Houston has long been a key part of Houston's history and its economic impact. Across four seaports in the Houston area, the city moved 242.9 million metric tons of trade last year, and the district has been consistently named the busiest or one of the busiest by tonnage for over a decade.

With over 200 companies calling the port home and a busy port district, the Houston Ship Channel has been working on an expansion project, called Project 11. Construction on the project could begin as early as next year, per the report.

Venture capital is on the rise as tech jobs stays steady

Screenshot via Houston Facts 2020

Again, Houston Facts has called out the growth Houston has seen in venture capital investment. According to the report, top industries for VC funding include health tech, software, and energy. Houston Facts reports the ecosystem saw $600 million invested last year. While numbers vary based on sources, Houston Exponential recently reported over $466 million of venture capital invested in Houston between January and July of 2020.

Meanwhile, when it comes to tech jobs in Houston, the city has held its place as 12th in the nation for cities with the most tech jobs. Last year, Houston had 235,802 tech workers according to data from CompTIA, Cyberstates 2020. That count is slightly increased from 2018's 223,000 tech workers in Houston.

Houston's evolving demographics continues to shape the city

Screenshot via Houston Facts 2020

Houston is regularly touted as the most diverse city in the nation, and that diversity has affected the city's business sector. As of last year, largest ethnic population in Houston is hispanic. Houston now has the fourth largest hispanic population in the country, however, according to the report, Houston's percent of African-American citizens has remained consistent.

COVID-19's full effect on Houston is still to be determined, but business has taken a hit

Getty Images

The 2020 edition of Houston Facts doesn't have much on the impact of COVID-19 — the 2021 issue should have more facts and figures from looking back on the pandemic. However, the GHP's team did address some of the economic impacts the coronavirus had on the city.

According to Yelp data based on listings, 3,518 businesses closed due to COVID-19 — of which, only 578 had reopened by mid-June.

Houston-area student creates new app to help businesses operate safely during COVID-19

there's an app for that

A 17-year-old high school student from the Houston area stepped up to help his local community, as the coronavirus continues to keep many customers from shopping the way they used to.

The Wayt app, created during the stay-at-home order in March, presents itself as an efficient and easy-to-use platform to streamline shopping during the times of the coronavirus. The app provides businesses and their customers with a platform to communicate making curbside pickup, booking appointments, and joining a virtual line a breeze.

"The platform provides a new set of tools for both the customers and the employees of businesses," says Ethan Saadia, app developer and Wayt creator. "With the use of this app, businesses can streamline the process and remove the hassle of shopping for customers."

The app offers a new way to open businesses by using technology that can manage capacity and keep them connected as many businesses move to curbside pickup. The platform allows customers to receive notifications about their order and tap a button to tell the business they're here, removing the hassle of calling customers to tell them their order is ready.

Wayt provides businesses with the customer name and car information, it even lets them know if the customer wants the order delivered directly to their trunk or other areas of their vehicle. This instant notification system keeps businesses and clients safe allowing them to practice strict social distancing to prevent the spread of COVID-19.

"The use of this app will be able to remove a lot of the anxiousness that we have currently," says Saadia. "It will allow for a more convenient shopping experience as we continue to deal with the effects of the coronavirus pandemic in all of our lives."

The platform also allows businesses to offer shopping appointments to abide with reduced capacity mandates, letting customers pick when they can come in within the constraints customized by the business. The app also makes standing in line while keeping social distancing recommendations easy by having customers tap a button on the app to get in line.

According to Saadia, a lot of these changes — like curbside pickup and virtual lines — are here to stay.

"From my perspective and experiences from my friends and family," says Saadia. "Curbside pickup and virtual lines are definitely here to stay because even before the pandemic, popular places used to have long lines and that presented many new challenges. The pandemic is just accelerating technological change that will make our lives easier."

Saadia, a serial innovator and app developer, started his first company in 2013 called PCs for Me where he sells DIY computer kits that help kids learn computer science. While he expects to continue that venture and Wayt, Saadia says he's conscious that things can change unexpectedly as he enters his senior year.

"I know we live under a very uncertain time and I don't really know what's going to happen with school a month from now or a year from now," says Saadia. "My plan is to keep taking it day by day working on Wayt to improve the user experience and work on other apps that I have on the pipeline."

Ethan Saadia, a 17-year-old high school student, created an app to improve the user experience of shopping during a pandemic.