9 Houston startups that are pivoting to provide COVID-19-related services

Startups to the rescue

Startups all over Houston and across industries are answering the call for tech solutions to COVID-19-caused issues from real estate and mental health to new software and services. Duy Do/Getty Images

From software to new services, several Houston startups are using this time of crisis to roll out new options for people living in the time of the COVID-19 crisis.

Last week, InnovationMap rounded up seven health tech startups providing health care solutions. This week, here are nine more startups that have reacted to the coronavirus with new tech solutions.

GotSpot

Reda Hicks, founder of GotSpot, has launched Rescue Spot to help out Houstonians dealing with the COVID crisis. Courtesy of GotSpot

Reda Hicks founded her company Gotspot — a digital tool that helps connect people with commercial space with people who need it — on the heels of Hurricane Harvey after seeing how hard it was for Houstonians to activate physical spaces in an emergency.

Now, in the face of another — albeit drastically different — situation, Hicks has created Rescue Spot to be that activation portal for specific COVID-19-related crisis needs.

"We are working with local community leaders to try to activate specific kind of space for emergency response," Hicks says in a Facebook interview with Bunker Labs, "so, restaurants turned into community kitchens, cold storage for perishables, storefronts that can be used as drive-by distribution centers, and places for people to house their pets while their owners are feeling overwhelmed and can't take care of their four-legged family members as well."

People with space or in need of a Rescue Spot can list their space or needs online.

SocialMama

Houston-based SocialMama uses its platform to connect mothers based on location, interests, and the things their children have in common. Courtesy of SocialMama

Houston-based SocialMama was founded in May of last year to connect mothers using machine learning that factors in vicinity, children's ages, shared motherly struggles, and more to create a support group digitally and socially. Now, the startup has sped up the release of a new feature so that users have more mental health resources during the pandemic.

Founder and CEO Amanda Ducach created SocialMama's expert program — an update to the app, which has been downloaded by over 15,000 users since launch — to connect moms to professionals specializing in everything from family medicine and mental health to career and personal safety. A portion of these experts join from Gravida, a post partum and return to work resource, according to a news release.

"Knowing someone is on the other side of the screen with a very similar story is truly comforting. The app considers all females, including those planning to become moms, those who are trying to conceive, those who have lost a child, etc. SocialMama is here for our community in a whole new way with the launch of our expert program," says Ducach in the release.

With mothers being tasked with educating and entertaining their children at home during the crisis on top of their regular jobs and duties, many are turning to SocialMama's online forum and app for support, ideas, and solidarity.

Accel Lifestyle

Accel's masks are made out of their specialty anti-bacteria fabric. Photo courtesy of Accel

While you might not usually think an activewear brand has anything to contribute to the fight against the coronavirus, you have to remember that Accel Lifestyle isn't a typical activewear brand. Founder Megan Eddings created the Prema® anti-bacterial fabric for an anti-stink feature in her clothing. That feature has another use: Preventing the spread of the disease.

Accel quickly pivoted her t-shirt-making supply chain to designing and sewing the masks. The reusable, washable masks are available online for individuals to purchase, but one Houston hospital system has made a huge purchase. Houston Methodist ordered 9,000 masks to be made for their hospital staff.

"The fact that a hospital system that is on the forefront of COVID-19 is choosing Accel Lifestyle to create PPE is profound and humbling," Eddings says in a press release. "I truly believe we're all in this together and we all have a role to play during this pandemic. If Accel Lifestyle can help flatten the curve in any way, then we're going to do it."

Predictive Solutions

A Houston startup has created a web tool for tracking the coronavirus. Pexels

Houston-based Predictive Solutions created a web application in March to give the residents of Harris County all the local information on COVID-19 in the palm of their hands — and now the tool has been expanded to the entire state.

The online map identifies nearby testing locations as well as indicates cases that have been self reported in the area. While not trying to be comprehensive, the website is trying to track trends with the disease.

"We developed the app to help streamline communication between the City of Houston, the healthcare community, aid organizations and Harris County residents, while mitigating the logistical nightmare of making sure presumed cases get tested," says Stewart Severino, co-founder and CEO of Predictive Solutions, in a news release. Read more.

Truss

Truss has modified its software to advance communications while hospitals are cracking down on visitors amid the coronavirus outbreak. Getty Images

Houston-based Truss usually focuses on digital community engagement, but Patrick Schneidau, CEO of the company, says he felt called to do something to help families separated due to strict emergency visitation rules at hospitals.

"You read all the stories of loved ones not being able to be together during this time," Schneidau, who is a member of InnovationMap's board, previously told InnovationMap. "That was the area we wanted to focus on."

Schneidau describes the software as a secure portal for small groups to interact via smart devices. Physicians can interface with family members via video chat or recorded messages, as well as answer any questions. Schneidau is looking for health care organizations to work with the technology so that patients and their doctors can have secure access to loved ones. Read more.

ChaiOne

Houston-based ChaiOne has launched a new tool that can help companies track supply chain delays resulting from COVID-19. Photo courtesy of ChaiOne

Houston-based ChaiOne recently announced the soft launch of its new software called Velostics — the "slack" for logistics that solves wait times and cash flow challenges in the supply chain and logistics industry. The digital logistics platform is set to aid the struggling supply chain as surging demands stretch suppliers, offering their platform free for 60 days.

"At ChaiOne we have a history of helping Houstonians whenever disaster strikes," says CEO and founder, Gaurav Khandelwal. "We created a disaster connect app during Hurricane Harvey for free that connected people with the resources they need. Velostics by pure happenstance happened to be ready for situations like [the coronavirus] when there's a lot of parties that need to collaborate."

Velostics results in an improved cash cycle for clients, cutting a 90-day settlement down to one day, along with an overhead reduction that reduces costs and improves output along with error reduction. The digital platform is specially engineered to reduce waste while keeping the supply chain running efficiently. Read more.

Umanity

Launched in Houston, Umanity's new tool aims to better connect nonprofits with supplies and volunteers amid the COVID-19 crisis. Photos via umanity.io

Umanity, which is a part of the Ion Smart and Resilient Cities Accelerator's first cohort, has created a philanthropic supply chain tool that's now available as an app or through desktop. The software can match and map local individual or nonprofit needs to organizations or volunteers, plus provide real-time analytics. During the coronavirus outbreak, they have mobilized its resources connecting supplies with nonprofits and volunteers with safe ways to help organizations that need it most during this crisis.

The company, which is working with several city of Houston officials to direct citizens the resources they need during the crisis, is creating a network of communities to efficiently provide them the resources they need. The centralized platform shows a complete picture of who needs help and who can help all on the same platform while measuring the real-time economic impact of donations and every volunteer hour.

"I started this company because I wanted to transition everyday acts of service into actual data-driven solutions," says Ryan-Alexander Thomas, CEO and founder of Umanity. "My goal is that during the next crisis, for example, hurricane season, if somebody needs something they have access to get it when they need it, not two years later or after the crisis." Read more.

Otso

Houston small businesses are struggling to pay their rent with doors closed and operations ceased — but where should the relief come from? Getty Images

When Josh Feinberg had the idea for his newest startup, Otso, he was hoping to remove the pointless burden of cash deposits required for new commercial and retail leases. But as the coronavirus pandemic began enacting stay-at-home mandates that forced small businesses to close their physical spaces, he had another idea.

Otso, with its financial partner Euler Hermes, provides landlords with an alternative to cash security deposits. While he first envisioned this tool for new leases, Feinberg created a system so that local businesses that are struggling to pay their rent can opt into this type of contract through an addendum to the lease. They can get back their cash deposits and use that capital now when times are tough.

"If we can get some liquidity back into the hands of the business, they have some a better chance of survival," Feinberg previously told InnovationMap.

Tenants or landlords can begin the process online. Feinberg recently joined the Houston Innovators Podcast to discuss the unprecedented state of commercial real estate and offer his advice for business owners. Click here to listen.

Spruce

Houston-founded Spruce has added some new services to help sanitize multifamily facilities during the COVID-19 pandemic. Getty Images

Houston-founded, Austin-based Spruce, which has an office locally, has launched a new suite of services for disinfecting common areas — like leasing offices, hallways, mail rooms, etc. — using EPA-compliant chemicals.

"Now, more than ever, it is critical for apartment communities to make sure their common areas are regularly decontaminated and disinfected to help slow the spread of the coronavirus and to prevent as many infections as possible," says Ben Johnson, founder and CEO of Spruce, in a statement.

The services include a weekly disinfectant of high-touch spots — like door handles and elevator buttons — as well as a weekly comprehensive cleaning that involves mopping, surface cleaning, and vacuuming. The startup also offers a bimonthly fogging service that can completely cover both indoor and outdoor areas with disinfectant. This solution can protect surfaces for months, according to the news release.

"This is an unprecedented public health crisis, and we worked closely with our clients to determine the biggest need and hope these services will give apartment communities one more weapon to use in the fight against COVID-19 and will help give both operators and their residents peace of mind," Johnson continues in the release. Read more.

This week's Houston innovators to know are Jan Odegard of The Ion, Josh Feinberg of Otso, and Patrick Schneidau of Truss. Courtesy photos

3 Houston innovators to know this week

who's who

The month is, thankfully, flying by, and InnovationMap has another set of Houston innovators to know this week that are all reacting to COVID-19 and its unique set of challenging consequences across industries — from commercial real estate to software.

Jan E. Odegard, senior director of Academic and Industry Partnerships at The Ion

Jan E. Odegard is the senior director of Academic and Industry Partnerships at The Ion. Photo courtesy of The Ion

When it comes to envisioning normal life after COVID-19, Jan Odegard realizes things will probably change for good. In a guest column for InnovationMap, he writes that, as a society, "we may never work and learn the same again." The Ion is trying to prepare the city for this affected future.

"As senior director of Academic Programming, my job will be to implement those ideas and move new programs forward," he writes. "To do this, the team is developing and pivoting programs we had on the drawing board and are engaging in conversations with academic stakeholders, workforce development programs and executives with innovation-driven hiring needs."

Click here to continue reading.

Josh Feinberg, co-founder of Otso

Josh Feinberg is the co-founder of Otso and Tenavox. Photo courtesy of Otso

Josh Feinberg hates security deposits. It's a sum of money sitting in an account, not earning interest and not doing either the landlord or the tenant any good.

That's why Feinberg and his co-founder, Marissa Limsiaco, created Otso. The duo previously founded Tenavox, an online portal for commercial real estate listings for brokers to generate leads, and have now launched this fintech platform that provides landlords with an alternative to cash security deposits.

Feinberg tells the Houston Innovators Podcast that, while he originally envisioned Otso to be a new deal product for landlords to offer an alternative to cash deposits, he saw the tool as an opportunity for small businesses struggling to pay rent that have a shortage of liquidity. He tossed out the original marketing plans and pivoted to present Otso as that liquidity solution for small business tenants.

Click here to read more and stream the podcast.

Patrick Schneidau, CEO of Truss

Patrick Schneidau is the CEO of Truss. Photo courtesy of Truss

Patrick Schneidau, CEO of Houston-based Truss, was trying to figure out his startup's role amid the COVID-19 crisis, and says he felt called to do something to help families separated due to strict emergency visitation rules at hospitals.

"You read all the stories of loved ones not being able to be together during this time," Schneidau says. "That was the area we wanted to focus on."

Click here to read more.

Josh Feinberg's fintech startup might be a solution to your lack of capital amidst the COVID-19 crisis. Photo courtesy of Tenavox

New Houston startup pivots to provide relief for small businesses struggling to pay rent

HOUSTON INNOVATORS PODCAST EPISODE 27

Josh Feinberg hates security deposits. It's a sum of money sitting in an account, not earning interest and not doing either the landlord or the tenant any good.

Feinberg teamed up with Euler Hermes, a 135-year-old credit insurance company, to create Otso, and the credit company backs the lease performance of each tenant that is approved by Otso. The transaction calls for a fee added to the rent, but no large cash deposit would be required.

Both landlords and tenants can apply for Otso, and the process can be done with a new lease or an addendum for existing leases — something that Feinberg sees as an opportunity considering the financial burden COVID-19 has put on startups and small businesses.

"The cool thing about having a startup is that, unlike a big business, you can be really nimble," Feinberg says in the episode.

The COVID-19-caused crisis has rocked the commercial real estate industry. On a recent call with around 30 brokers, Feinberg says none of them had made a deal in the past month.

"This is the first time I've ever seen the entire market basically grind to a halt," he says.

On the episode, Feinberg shares some advice for startups worried about their relationship with their landlords. He stresses how important communication and tapping into resources available online like Otso, which has a slew of info online.

"Real estate is a team sport," Feinberg says. "You need these advisers now more than ever — talk to your landlord and your broker."

There's no doubt for Feinberg that the country is going to recover, and the biggest question marks are regarding timeline. Ultimately, innovative companies will pull through and might even be better for the challenges overcame.

"Great companies are built during crises — that's been true for a very long time," "There are smart people working on big problems no matter what the economy or outside markets are doing. And when they are able to survive periods like this, they come out significantly stronger than their competitors and weaker or outdated concepts."

Feinberg joins the Houston Innovators Podcast to discuss Otso, advice for startups keeping lean, and where the government's next round of relief should go to. Listen to the full episode below — or wherever you get your podcasts — and subscribe for weekly episodes.

Houston small businesses are struggling to pay their rent with doors closed and operations ceased — but where should the relief come from? Getty Images

Houston small businesses and landlords grapple with rent relief options during COVID-19 crisis

late fee

It's not too huge of an assumption to make that many Houston startups and small businesses failed to pay their rents in full yesterday. Since the city's stay-at-home mandate on March 24 — and even preceding that — most businesses have seen a slowdown of revenue as a result of COVID-19-caused business disruptions.

Business owners are frantically looking in their leases and searching online to see what rights they have and what sort of protection they have in such an unprecedented time.

"People are confused. They don't know what to do, and finding information is hard," says Meredith Wheeler, co-founder and chief creative officer of Sesh Coworking, which opened earlier this year.

Wheeler and Sesh's co-founder, Maggie Segrich, have created a petition to get on the radar of local elected officials to challenge them to pass legislation to protect small businesses in this time.

"At the end of the day, it would be so wonderful and idealistic to say that we could rely on the niceties and the moral compasses of our landlords, but it's probably not true for everyone and so that's why we need legislation to dictate what is right," Wheeler says.

But landlords are also in unchartered territory, says Josh Feinberg, who has worked in Houston as a commercial real estate broker and co-founded CRE tech platform, Tenavox.

"There's this idea that there's this acrimony between tenant and landlord, and I think, as a former broker, we're set up that way to get our side the best deal. But in reality, that's just not true," Feinberg says. "The majority of commercial real estate is owned by regular people — not usually some faceless, gigantic corporation."

And they have a piper to pay too, Feinberg adds. Ninety percent of CRE is owned by debt, he says. If the government steps in anywhere, it should be on the lender level, as well as creating some sort of tax relief.

"If there's any relief here, it's going to have to come from lenders, and I think you'd hear that from owners and brokers," Feinberg says.

In somewhat convenient timing, Tenavox has recently co-founded a new company that provides a bit of a solution for small businesses. Otso provides landlords with an alternative to cash security deposits. Traditionally, deposits are held onto by landlords — they aren't legally allowed to spend it unless the tenant defaults.

"In general, I think cash deposits are wasteful," Feinberg says. "It's critical capital that the business can hire with, invest, and use."

Tenavox teamed up with Euler Hermes, a 135-year-old credit insurance company, to create Otso, and the credit company backs the lease performance of each tenant that is approved by Otso. The transaction calls for a fee added to the rent, but no large cash deposit would be required.

The tool can be used on new leases, and, in light of the current situation, Otso can also be used to create an addendum in existing leases so that the tenant can get back their deposit and use it in this time of crisis. Either landlord or tenant can apply online and hear back that same day — Feinberg says he's focused on a speedy response to help get this deposit money back to the tenant.

"If we can get some liquidity back into the hands of the business, they have some a better chance of survival," Feinberg says.

Other than looking into Otso, Feinberg has some other recommendations for small business owners. He says they should be applying for relief from the Small Business Administration, which has more money to dole out than they have ever had. And, as it pertains to working with their landlords, communication is key. Show financials and specific information — like what March 2019 looks like compared to 2020 — so that landlords can take that to their lenders.

"An unprecedented crisis is going to require unprecedented solutions," Feinberg says.

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Houston hospitals recognized as best in state, nation in annual report

better than all the rest

Houston’s University of Texas MD Anderson Cancer Center has retained its U.S. News & World Report crown as the best cancer hospital in the U.S.

In the same ranking, Houston Methodist Hospital once again came out on top as the best hospital in Texas. Last year, the hospital shared the top spot. Baylor St. Luke’s Medical Center ranked No. 4, followed by No. 5 Memorial Hermann Hospital.

The accolades appear in U.S. News’ 2024-25 ranking of the country’s best hospitals. Each hospital also ranked among various specialties, such as orthopedics; cardiology, heart, and vascular surgery; cancer; and neurology and neurosurgery.

Since U.S. News introduced its annual hospital survey in 1990, MD Anderson has been ranked one of the two best U.S. hospitals for cancer care. It has maintained its No. 1 ranking for 10 consecutive years.

“At MD Anderson, our mission is clear: to end cancer,” Dr. Peter WT Pisters, president of MD Anderson, says in a news release. “This ranking reflects our relentless commitment to excellence in patient care, research, prevention, and education.”

MD Anderson also ranked highly in three specialties:

No. 2 for ear, nose, and throat.
No. 9 for urology.
No. 14 for gastroenterology and GI surgery.

“The consistent top national recognitions [that] MD Anderson receives for delivering compassionate, evidence-based care is a testament to our dedication to those we serve,” Pisters says.

Elsewhere at the Texas Medical Center, Houston Methodist Hospital was named the No. 1 hospital in Texas for the 13th year in a row. Also, it was lauded as one of the country’s 20 best hospitals for the eighth time.

Along with the general ranking, Houston Methodist Hospital scored high marks in 10 specialties. These include diabetes and endocrinology (No. 6), gastroenterology and GI surgery (No. 7), and pulmonology and lung surgery (No. 8).

Meanwhile, four Houston Methodist community hospitals ranked well in Texas:

Houston Methodist The Woodlands Hospital (No. 8).
Houston Methodist Sugar Land Hospital (No. 9).
Houston Methodist Baytown Hospital (tied at No. 18).
Houston Methodist Willowbrook Hospital (tied at No. 23).

New app with tips for solo women travelers takes flight from Texas

explore mode activated

We all have that one friend whose office seems to be the nearest airport gate. We go to them for travel advice and hit save on their latest post for that hole-in-the-wall restaurant that had the best local food. That type of advice — especially between women — is indispensable for solo travelers, and now a new travel app based in Austin is helping organize it on a new platform without the social media noise.

Solo travel has gained a lot of momentum in the past few years, and it’s no longer just something one does during a gap year before or after college. It’s become the preferred way to travel for many, and women are at the forefront.

According to Condor Ferries, 72 percent of American women like to take solo trips, and the term “female solo travel” has increased 62 percent over the past three years across all search engines. What if there was a place where women solo travelers could get recommendations and travel itineraries created by other solo women travelers?

This concept is the backbone of Airheart, which aims to revolutionize the travel industry by offering a safe space for solo female travelers to find itineraries and travel guides that were crafted with them in mind.

"Traveling solo as a woman is an empowering act of independence," said Airheart founder Lindsey Renken in a press release. "At Airheart, we celebrate and support this journey, helping women discover new places, connections, and strengths."

The platform includes integrated planning tools, interactive maps, itineraries, and video tips all conveniently located in one place and customizable to the traveler’s preference. Once a user creates an account and accesses the site, the navigation is pretty straightforward.

There’s an explore option at the top of the home screen showcasing all the travel guides available for purchase within the platform, with destinations all over the world. At the moment, most are within the US, Mexico, Western Europe, and Asia. Once the user chooses a guide, a sidebar populates with a list of recommendations or a day-by-day itinerary. The right side of the screen is a map with all the pinned recommendations for easy navigating.

For those wanting to travel more within Texas this summer, Airheart offers a few destinations with a wide range of activities:

Big Bend/West Texas: For nature lovers, explore the beautiful mountain desert region of West Texas with a comprehensive guide that includes tips on how to get there and how to choose the best accommodation for your trip — something that becomes more complex in such a remote place.
Glen Rose: Escape to this charming small town just an hour-and-a-half Southwest of Dallas-Fort Worth, that is perfect for a weekend getaway full of outdoor adventures. These recommendations come from a local.
Fredericksburg: Indulge in the best wineries and restaurants that Central Texas has to offer with an itinerary crafted by a Texas native. This one is ideal for a quick day trip or a fun girls’ weekend.

Airheart, named after the pioneering aviator Amelia Earhart, is also focused on empowering female travel creators by allowing them to act as a type of modern travel agent. They can monetize both new and existing travel content by creating these guides and itineraries, while reaching a new audience on the platform.

“As an avid traveler, I’m always looking for something like this created by expert travelers. I can’t wait to be a seller and consumer,” said Tanna Wasilchak who contributed guides for Waco, Glen Rose, and Georgetown. “Solo traveling as a female can be intimidating at first, but it’s one of the most rewarding experiences I’ve ever had. Airheart is going to be such a game changer for this community.”

Perhaps the only downside for now is that Airheart is limited in what it can offer to its users with only 22 guides published on the site. However, the features and community-based aspect give the platform the potential to stand out in an otherwise saturated market. Guides ($29 each before taxes and fees) are available for users to browse and purchase at airheart.com.

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This article originally ran on CultureMap.

Houston startup adviser on navigating SAFE, convertible notes in funding rounds

guest column

As both a founder and occasional early-stage investor in the Houston ecosystem, I've seen firsthand the opportunities and challenges surrounding seed funding for local startups. This critical first fundraising round sets the trajectory, but navigating the landscape can be tricky, especially for first time founders who may not be familiar with the lingo.

One key dynamic is choosing the right deal structure — SAFEs (Simple Agreement for Future Equity) vs. convertible notes are the most common vehicles early stage startups use to raise capital and are far more founder-friendly than a priced round.

Let's start first with what the have in common:

Both allow you to defer setting a valuation for your company until a later (likely priced) round, which is useful in early stages or pre-revenue companies
Both are cheaper and faster to execute than a priced round, which cash-strapped early stage founders like
Both can have terms like valuation cap, discount, conversion event, and pro rata rights.
Both are less attractive to investors seeking immediate equity (especially important if starting the QSBS clock is part of your investors strategy or if the investor is newer to startup investing)
Both can create messy cap tables and the potential for a lot of dilution for the founders (and investors) if they are used for multiple raises (especially with different terms)

While as you can see they have similarities, they have some important differences. Let's dig in on these next:

SAFEs:

Created by Y Combinator in 2013, the intent was to create a simplified, founder friendly agreement as an alternative to the convertible note
Is an agreement for future equity for the investor at a conversion event (priced round or liquidation event) which converts automatically.
It's not a debt instrument and does not accrue interest or have a maturity date.
Generally have much lower upfront legal costs and faster to execute

Convertible Notes:

A debt agreement that converts to equity at a later date (or conversion event like a priced round)
Accrues interest (usually 2 to 8 percent) and has a maturity date by which the note must either be repaid or convert to equity. If you reach your maturity date before raising a qualifying round, you can often renegotiate to extend the maturity date or convert the note, though be prepared to agree to higher interest rates, additional warrants, or more favorable conversion terms.
More complex and take longer to finalize due to non-standard terms resulting in higher legal and administrative costs

It's worth reiterating that in both cases, raising multiple rounds can lead to headaches in the form of complex cap tables, lots of dilution, and higher legal expenses to determine conversion terms. If your rounds have different terms on discounts and valuation caps (likely) it can cause confusion around equity and cap table structure, and leave you (the founder) not sure how much equity you will have until the conversion occurs.

In my last startup, our legal counsel — one of the big dogs in this space for what it's worth — strongly advised us to only do one SAFE round to prevent this.

Why do some investors tend to prefer convertible notes?

There are a few reasons why some investors, particularly angel investors from developing startup ecosystems (like Houston), prefer convertible notes to SAFEs.

Because they are structured as debt, note holders have a higher priority than equity investors in recovering their investment if the company fails or is liquidated. This means they would get paid after other creditors (like loans or credit cards) but before equity investors, increasing the likelihood of getting some of their money back.
The interest terms protect investors if the founder takes a long time to raise a priced funding round. As time passes, interest accumulates, increasing the investor's potential return. This usually results in the investor receiving a larger equity stake when the note converts. However, if the investor chooses to call in the note instead, the accrued interest would increase the amount of money owed, similar to a traditional loan
More defined conversion triggers (including a maturity date) gives investors more control and transparency on when and how their investment will convert.
Can negotiate more favorable terms than the standard SAFE agreement, including having both a valuation cap and a discount (uncommon on a SAFE, which usually only has one or the other), interest rates, and amendment clauses to protect them from term revisions on earlier investors by future investors (called a cram-down), etc.

We'll go over what the various terms in these agreements are and what to look out for in a future article

How to choose:

Consider your startup's stage and valuation certainty — really uncertain or super early? Either of these instruments are preferable to a priced round as you can defer the valuation discussion
Assess investor preferences in your network — often the deciding factor if you don't have a lot of leverage; most local angels prefer c-notes because they see them as less risky though SAFEs are becoming more common with investors in tech hubs like Silicon Valley
Evaluate your timeline and budget for legal costs — as I mentioned, SAFEs are way less expensive to execute (though still be prepared to spend some cash).
Align the vehicle with your specific goals and growth trajectory

There's no one-size-fits-all solution, so it's crucial to weigh these factors carefully.

The meanings of these round terms like "seed" are flexible, and the average seed funding amount has increased significantly over the past decade, reaching $3.5 million as of January 2024. This trend underscores the importance of choosing the right funding vehicle and approach.

Looking ahead, I'm bullish on Houston's growing startup ecosystem flourishing further. Expect more capital formation from recycled wins, especially once recently minted unicorns like High Radius, Cart.com, Solugen, and Axiom Space exit and infuse the ecosystem with fresh and hungry angels, new platforms beyond traditional venture models, and evolving founder demographics bringing fresh perspectives.