10th Houston cohort named to early-stage accelerator

ready to grow

Meet the 10th cohort for gBETA Houston. Photo via gener8tor.com

National venture capital firm gener8tor named its 10th Houston cohort this week, which includes startups focused on innovative tableware to substitute teacher operations.

gBETA Houston offers startups and founders with a non-equity seven-week program that features intensive concierge coaching and access to a network of investors and partners. The founders will pitch their ideas on Oct. 24 at 6:30 p.m. at the Esperson Building.

"Each cohort shows us how innovation evolves and thrives," Muriel Foster, gBETA Houston director, says in a statement. "The Spring 2024 gBETA Houston cohort embodies creative brilliance and unyielding ambition."

The five companies named to gBETA were chosen based on their growth potential and investor readiness. They include:

  • BrainBuffet, an AI-powered platform that has already created over 250 courses to refine its personalized learning algorithm that builds customized courses that feature curated content, YouTube videos, quizzes, and progress tracking
  • Colorfull Plates, a tableware startup that creates durable, vibrant products that aim to streamline family meals and encourage children to try new flavors. It has generated $300,000 in revenue without outside dilutive funding.
  • The Parent Teacher Collaborative, a web- and mobile-based platform that aims to improve student outcomes by building strong collaborative partnerships, growing parent-teacher organizations and better managing school events. It's worked with five Houston-area communities and has raised over $144,000 in grant and contract funding since April 2023.
  • Kinfolk, a user-friendly mobile application that creates a digital time capsule of family traditions, memories and cultural heritage. It has over 50 beta-testing customers.
  • SubSpark, a mobile and desktop app that allows school administrators and teachers to post available openings for substitute teachers. The Houston-based LLC is currently beta-testing its apps with one Houston-area private school.

The five companies joined the spring 2024 cohort and the rest of the Houston gBETA network.

gBETA is supported by Downtown Houston, the City of Houston and the Downtown Redevelopment Authority. The program has accelerated 45 Houston companies since its launch in Houston in 2019. It was launched by a $1.25 million grant to be paid out over five years.
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Houston was deemed a top startup city, but the Bayou City has a gap to other Texas cities that it can work on narrowing. Photo via Getty Images

Report: Houston secures spot on list of top 50 startup cities

by the numbers

A new ranking signals great promise for the growth of Houston’s startup network.

Houston ranks among the world’s top 50 startup cities on a new list from PitchBook, a provider of data and research about capital markets. In fact, Houston comes in at No. 50 in the ranking. But if you dig deeper into the data, Houston comes out on top in one key category.

The city earns a growth score of 63.8 out of 100 — the highest growth score of any U.S. city and the seventh highest growth score in the world. In the growth bucket, Houston sits between between Paris (64.4) and Washington, D.C. (61.7).

The PitchBook growth score reflects short-term, midterm, and long-term growth momentum for activity surrounding venture capital deals, exits, and fundraising for the past six years.

PitchBook’s highest growth score (86.5) goes to Hefei, a Chinese manufacturing hub for electric vehicles, solar panels, liquid crystal displays, home appliances, and Lenovo computers.

The overall ranking is based on a scoring system that relies on proprietary PitchBook data about private companies. The system’s growth and development scores are based on data related to deals, exits, fundraising and other factors.

Houston earns a development score of 34.1 out of 100, which puts it in 50th place globally in that regard. This score measures the size and maturity of a city’s startup network.

Topping the overall list is San Francisco, followed by New York City and Beijing. Elsewhere in Texas, Austin appears at No. 16 and Dallas at No. 36.

The ranking “helps founders, operators, and investors assess locations when deciding where to expand or invest,” says PitchBook.

“Network effects matter in venture capital: Investors get more than half of their deals through referrals, according to research led by Harvard professor Paul Gompers,” PitchBook goes on to say. “So it stands to reason that dealmakers should seek these networks out when deciding where to do business.”

Over the past few years, the Houston Angel Network has doubled its members and continues to grow despite COVID-19's economic effects. Photo via Getty Images

Houston Angel Network sees membership growth amid pandemic

investing in investors

While the COVID-19 pandemic caused some investors to hit pause on some deals, the Houston Angel Network, which has doubled its membership over the past couple years, has maintained its deal flow and investment, while taking every opportunity to connect members virtually.

"Nothing's really changed — in terms of our activity — other than the fact that we can't meet in person," says Stephanie Campbell, managing director of HAN. "We quickly pivoted to virtual."

Campbell — who also is also a founding partner at Houston-based, female-focused venture capital group, The Artemis Fund — says she still saw the interest and need on each side of venture deals.

"What I realized was, especially working at a venture fund, the deal flow isn't going away. Companies still need capital — and investors are still interested in looking at deals," Campbell tells InnovationMap.

HAN, which was founded as a nonprofit in 2001, continues to be touted as among the most active angel network in the country. The organization has five industry groups that it focuses its deals on — energy, life sciences, technology, consumer products, and aerospace.

At each monthly meeting, members hear three pitches. However, Campbell is vetting many more companies far more deals and passing them along the network as she goes. All in all, HAN investors do around 100 deals a year with an average investment of $100,000.

Since Campbell joined in 2018, membership has doubled from 60 members to 120. Campbell says it's her goal to get to 150 members by the end of the year.

Stephanie Campbell has led HAN as managing director since 2018.

"Despite COVID, we've continued to grow," Campbell says, adding that she's heard investors express that they have more time now to dive in. "People are very much still interested in learning about deploying their capital into early-stage venture. They're looking for a network of like-minded individuals."

Campbell explains that, with the switch to virtual pitches and events, HAN is congregating more than ever. In the spring, Campbell introduced a thought leadership series, called Venture Vs. The Virus, that brought investment leaders together to discuss how the pandemic was affecting venture capital.

HAN is also using this time to better tap into technology to connect members with startups. On the back end, Campbell says, she's looking to enhance digital engagement with members and also improve data reporting within the organization.

From increasing networking and educational events and growing membership, HAN is prioritizing growing its place in the Houston innovation ecosystem. Campbell says she sees the pandemic is causing investors and tech talent on the coasts to re-evaluate where their living, and that's going to benefit Texas. Houston is going to see an influx of tech talent coming to town, and that's going to translate to more startups being founded locally.

"We want to make sure that we are a big part of this transition toward a more diverse and resilient economy," Campbell says. "Now's the time to lean in on Houston."

Station Houston cutting the ribbon its new space for the Ion Smart Cities Accelerator was among this week's trending stories. Carter Smith/Station Houston

5 most popular innovation stories in Houston this week

What's trending

Editor's note: As September comes to a close, Houston innovation is closing out on a high note. Station Houston opened its new accelerator space, flood innovations prepare the city for future storms, out-of-town investors observe the Bayou City, and more trended among InnovationMap readers.

Station Houston unveils its Ion Smart Cities Accelerator program and prototyping lab

The Ion Smart Cities Accelerator's space is open for business. Carter Smith/Station Houston

With the inaugural cohort selected and the new office space's ribbon cut, Station Houston's Ion Smart Cities Accelerator has officially launched.

The program, which is backed by Intel and Microsoft with support from Station, the city of Houston, and TX/RX, announced the 10 startups selected for the 10-month program in late August. The program commenced September 4, but on September 23, the program officially opened its new space in Station.

"The purpose of the Ion Smart Cities Accelerator is to address the needs of the Houston community by developing and deploying technology to enhance the civic fabric that makes Houston so innovative," says Christine Galib, director of the Ion Smart Cities Accelerator, in a news release. "It was imperative to create a space that represents the intersections of collaboration, innovation, and technology and makes these intersections accessible." Click here to read more.

3 Houston innovators to know this week

This week's Houston innovators to know are hoping to make an impact. Courtesy photos

Starting off a new — hopefully drier — week in Houston, these three Houston innovators to know are looking to make an impact. From using tech for good to creating a women's movement in Texas business, these three Houstonians are on a roll. Click here to read more.

University of Houston-founded company shares its lessons learned from accelerator programs

Houston-based Sensytec founder gives his advice for accelerating your startup. Miguel Tovar/University of Houston

A startup accelerator provides promising companies with an opportunity to boost their chances of marketing their technologies. These programs help small companies pivot their technologies strategically, interface with industry sectors and engage with mentor network to better pitch their ideas to the market.

Unfortunately, most startups will never have the chance to participate in an accelerator. But the information gained from such an experience can be valuable knowledge for all entrepreneurs who wish to accelerate their business.

Sensytec – a UH startup that developed smart cement to monitor the health of structures – was recently accepted into the Techstars Energy Accelerator. Techstars Energy is a highly competitive accelerator in Norway that partners with Equinor, Kongsberg, and Mckinsey to find sustainable technologies for the energy industry. Sensytec's smart cement technology is being considered for use in new oil and gas wells and concrete structures.

Sensytec president Ody De La Paz learned quite a bit about what companies are looking for when it comes to new technology and what entrepreneurs can do to boost their startups. Click here to read his advice.

3 observations about Houston's innovation ecosystem from out-of-town venture capitalists

Three non-Houston investors discussed the strengths and weaknesses of Houston's innovation ecosystem. Getty Images

You'll go cross-eyed looking at the same puzzle for too long, and sometimes it's better to take a step back and introduce some fresh perspectives and ideas from someone not so connected to the matter at hand.

At the second annual HX Capital Summit hosted by Houston Exponential at Rice University, HX gathered three out-of-town venture capital experts to discuss Houston's innovation ecosystem with Sandy Wallis, managing director at the HX Venture Fund. The fund-of-funds focuses on connecting non-local investors to Houston in order to bring new venture opportunities to town. On the panel, the experts discussed their observations about the Bayou City — click here to read them.

These Houston entrepreneurs and startups are searching for flooding solutions

From a water-absorbing tower to sensor-enabled rubber ducks, here are some flooding solution ideas coming out of Houston. Courtesy of Gensler's ByDesign

The feeling is all too familiar for Houstonians. Tropical Storm Imelda hit Houston with devastating flood waters just two years after Hurricane Harvey did its damage.

With any obstacle or challenge, there is room for innovation. Over the past year, InnovationMap has covered various flood tech startups in Houston. Click here for six innovations that can make a difference the next time a storm decides to take its toll on Houston.

The Rice Angel Network will now be powered by Cannon Ventures. Photo courtesy of Rice University

Rice University's angel network to be powered by Cannon Ventures

Money moves

In an effort to better connect Houston entrepreneurs with angel funds, the Rice Angel Network and Cannon Ventures have formed a new partnership. RAN will now be powered by Cannon Ventures, the investment arm of The Cannon, a West Houston coworking space.

RAN is already located in The Cannon, according to its website, but the new arrangement will allow RAN to leverage The Cannon's programming, events, resources, and community as it continues to serve its alumni network.

In December, the two entities have partnered up in the past for the Houston Investor Network Alliance, a collaboration where participating investors can partner up to co-invest in startups, co-host investor events, and share opportunities. According to the release, this new partnership "takes this a step further" to team up to provide early-stage investment.

"The mission is simple," says Lawson Gow, CEO and founder of Cannon Ventures and The Cannon, in a release. "We want to bring Houston's startup ecosystem the access to capital that they need to thrive here in Houston."

Gow, who is the son of InnovationMap's parent company's CEO, started Cannon Ventures almost a year ago. He's a Rice alumnus, as is Kyle Fletcher, the managing partner of Rice Angel Network.

"Houston is one of the largest cities in the US, yet our efforts to bring capital to startups has been done only in pockets throughout the city," Fletcher says in the release. "We are better together than we are separate."

LetsLaunch, a new Houston-based fundraising platform, helps companies of all sizes get funding from any type of investor. Courtesy of LetsLaunch

Houston fundraising platform launches for the next generation of investors

Future funders

Millennials are expected to exceed the Baby Boomer generation for the United States' largest living adult generation this year, and this massive population of people have a completely different approach to investing.

Nick Carnrite saw that Millennials were to a point where they had extra income, but when he looked at the statistics, he noticed they aren't buying houses for the most part and were turned off of the stock market. There was a huge amount of stranded capital, and he wanted to figure out how to get that invested into businesses.

"The younger generation isn't interested in typical investing, but they are absolutely interested in supporting their community and the businesses in it, especially if the investment lets them experience the business and come along for the ride if it works," Carnrite, who is the co-founder and CEO of LetsLaunch, says.

Houston-based LetsLaunch is a new investment platform that launched December 28, though has been in the works since January 2018. The site works, in many ways, like a crowdfunding site, only investors receive equity. Due to regulations, investment campaigns max out at around a million dollars.

In the past, entrepreneurs have had to seek out major investors through venture capitalists or large funds, since taking smaller investments is tedious and almost more trouble than its worth. However, LetsLaunch provides a platform where smaller investments are streamlined and encouraged.

"Our goal in all of this is just to take a complicated process and make it simple, the same way Turbotax takes something awful like taxes and makes it simple, we are trying to do that with investing," Carnrite says.

Investors don't have to be accredited or invest a certain amount of money — something that for so long has hindered startups' ability to raise money.

"For whatever reason, we've decided to alienate about 95 percent of Americans as far as being able to invest in private businesses," Carnrite says. "Finally, we're at the point where all of that capital that was stranded and not allowed in private companies is being funneled into that cause."

According to Carnrite and his associate, Rhian Davies, who is the company's director of business operations, the mission is to educate and simplify the investing process.

"For us, one of the things we're working on with other organizations is putting together a next-gen investor series, where we are teaching the next generation of investors how to invest and give them a platform to do it," Davies says.

Much like in a normal investment process, the companies provide a pitch deck for potential investors that outlines the business plan and scope of the company. The company simply creates an account and uses the website to develop those materials.

"We standardize that process, so from a user standpoint, everything looks fairly similar on our site and it's a pretty tried and true template," Carnrite says.

While LetsLaunch does its due diligence making sure the business is legitimate and makes sure the pitch deck is sufficient, the investors take it from there.

Since ease of access to funds is the top priority for LetsLaunch, the investment platform has a much lower fee for companies. While some crowdfunding platforms take 10 to 12 percent, LetsLaunch's fee is around 3 percent.

"We really want it to be simple and affordable to businesses and for investors as well," Davies says. "We maintain a much lower fee than other crowdfunding sites."

LetsLaunch will continue to fine tune its existing features on the site, while also adding more tools for businesses, including an iOS mobile app, which Carnirite says will be ready this year. In addition to fundraising tools, Carnrite wants to help their businesses after the campaigns with software that streamlines investor relations and reminds business owners of important deadlines.

"We want to evolve into a website that not only helps you raise capital for a company, but that also helps you run that company after your raise, Carnrite says."

While Houston is home base for the company, the team expects to expand to other markets where fundraising is hard, like Denver, Atlanta, Dallas, and more. Strategic partnerships are another opportunity for LetsLaunch, and the company expects to finalize some of those moving forward.

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World's largest student startup competition names teams for 2025 Houston event

ready, set, pitch

The Rice Alliance for Technology and Entrepreneurship has announced the 42 student-led teams worldwide that will compete in the 25th annual Rice Business Plan Competition this spring.

The highly competitive event, known as one of the world’s largest and richest intercollegiate student startup challenges, will take place April 10–12 at Houston's The Ion. Teams in this year's competition represent 34 universities from four countries, including one team from Rice.

Graduate student-led teams from colleges or universities around the world will present their plans before more than 300 angel, venture capital, and corporate investors to compete for more than $1 million in prizes. Last year, top teams were awarded $1.5 million in investment and cash prizes.

The 2025 invitees include:

  • 3rd-i, University of Miami
  • AG3 Labs, Michigan State University
  • Arcticedge Technologies, University of Waterloo
  • Ark Health, University of Chicago
  • Automatic AI, University of Mississippi and University of New Orleans
  • Bobica Bars, Rowan University
  • Carbon Salary, Washington University in St. Louis
  • Carmine Minerals, California State University, San Bernardino
  • Celal-Mex, Monterrey Institute of Technology and Higher Education
  • CELLECT Laboratories, University of Waterloo
  • ECHO Solutions, University of Houston
  • EDUrain, University of Missouri-St. Louis
  • Eutrobac, University of California, Santa Cruz
  • FarmSmart.ai, Louisiana State University
  • Fetal Therapy Technologies, Johns Hopkins University
  • GreenLIB Materials, University of Ottawa
  • Humimic Biosystems, University of Arkansas
  • HydroHaul, Harvard University
  • Intero Biosystems, University of Michigan
  • Interplay, University of Missouri-Kansas City
  • MabLab, Harvard University
  • Microvitality, Tufts University
  • Mito Robotics, Carnegie Mellon University
  • Motmot, Michigan State University
  • Mud Rat, University of Connecticut
  • Nanoborne, University of Texas at Austin
  • NerView Surgical, McMaster University
  • NeuroFore, Washington University in St. Louis
  • Novus, Stanford University
  • OAQ, University of Toronto
  • Parthian Baattery Solutions, Columbia University
  • Pattern Materials, Rice University
  • Photon Queue, University of Illinois, Urbana-Champaign
  • re.solution, RWTH Aachen University
  • Rise Media, Yale University
  • Rivulet, University of Cambridge and Dartmouth College
  • Sabana, Carnegie Mellon University
  • SearchOwl, Case Western Reserve University
  • Six Carbons, Indiana University
  • Songscription, Stanford University
  • Watermarked.ai, University of Illinois, Urbana-Champaign
  • Xatoms, University of Toronto

This year's group joins more than 868 RBPC alums that have raised more than $6.1 billion in capital with 59 successful exits, according to the Rice Alliance.

Last year, Harvard's MesaQuantum, which was developing accurate and precise chip-scale clocks, took home the biggest sum of $335,000. While not named as a finalist, the team secured the most funding across a few prizes.

Protein Pints, a high-protein, low-sugar ice cream product from Michigan State University, won first place and the $150,000 GOOSE Capital Investment Grand Prize, as well as other prizes, bringing its total to $251,000.

Tesla recalling more than 375,000 vehicles due to power steering issue

Tesla Talk

Tesla is recalling more than 375,000 vehicles due to a power steering issue.

The recall is for certain 2023 Model 3 and Model Y vehicles operating software prior to 2023.38.4, according to the National Highway Traffic Safety Administration.

The printed circuit board for the electronic power steering assist may become overstressed, causing a loss of power steering assist when the vehicle reaches a stop and then accelerates again, the agency said.

The loss of power could required more effort to control the car by drivers, particularly at low speeds, increasing the risk of a crash.

Tesla isn't aware of any crashes, injuries, or deaths related to the condition.

The electric vehicle maker headed by Elon Musk has released a free software update to address the issue.

Letters are expected to be sent to vehicle owners on March 25. Owners may contact Tesla customer service at 1-877-798-3752 or the NHTSA at 1-888-327-4236.

Houston space tech companies land $25 million from Texas commission

Out Of This World

Two Houston aerospace companies have collectively received $25 million in grants from the Texas Space Commission.

Starlab Space picked up a $15 million grant, and Intuitive Machines gained a $10 million grant, according to a Space Commission news release.

Starlab Space says the money will help it develop the Systems Integration Lab in Webster, which will feature two components — the main lab and a software verification facility. The integration lab will aid creation of Starlab’s commercial space station.

“To ensure the success of our future space missions, we are starting with state-of-the-art testing facilities that will include the closest approximation to the flight environment as possible and allow us to verify requirements and validate the design of the Starlab space station,” Starlab CEO Tim Kopra said in a news release.

Starlab’s grant comes on top of a $217.5 million award from NASA to help eventually transition activity from the soon-to-be-retired International Space Station to new commercial destinations.

Intuitive Machines is a space exploration, infrastructure and services company. Among its projects are a lunar lander designed to land on the moon and a lunar rover designed for astronauts to travel on the moon’s surface.

The grants come from the Space Commission’s Space Exploration and Aeronautics Research Fund, which recently awarded $47.7 million to Texas companies.

Other recipients were:

  • Cedar Park-based Firefly Aerospace, which received $8.2 million
  • Brownsville-based Space Exploration Technologies (SpaceX), which received $7.5 million
  • Van Horn-based Blue Origin, which received $7 million

Gwen Griffin, chair of the commission, says the grants “will support Texas companies as we grow commercial, military, and civil aerospace activity across the state.”

State lawmakers established the commission in 2023, along with the Texas Aerospace Research & Space Economy Consortium, to bolster the state’s space industry.

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