Houston's innovation leaders weigh in on community's growth, progress

Houston innovation awards

Get to know the Houston innovation community's top ecosystem builders. Photos courtesy

This year's finalists in the Ecosystem Builder category for the Houston Innovation Awards have a lot to say about the city's innovation community — and they are the right ones to say it.

Selected as finalists for the newly created category, each of the five finalists are leaders for the Houston innovation ecosystem. They were each asked some questions about the development of the Houston tech and startup community. Here's what they had to say.

InnovationMap: What is your favorite part of Houston's innovation ecosystem? How have you helped contribute to that aspect of the community?

Jan E. Odegard, executive director of the Ion: Can do attitude and willingness to make big bets that can solve hard problems with global societal impact. Creating and supporting a place where this can happen is critical to the success, a place where we create the necessary density for collisions and that will sprue the next ideas.

Jason Ethier, co-founder of Lambda Catalyzer and host of the Energy Tech Startups podcast: Perhaps small, but the Ion District in the small part we have to play in it. Being able to be in a place where you can cross paths with active investors, innovators and partners. This is the hub we hoped to build over the last few years. That connective tissue may be small and focused compared to other ecosystems, but it is very strong here.

Joey Sanchez, founder of Cup of Joey and senior director of ecosystems at the Ion: My favorite part of the Houston Innovation Ecosystem is the progress and potential. We have gone from talking about how to build a Houston ecosystem to now exploring our collective potential. The conversations are now tactical actions to scale our efforts.

Kendrick Alridge, senior manager of community at Greentown Labs: My favorite part of the ecosystem is the Cup of Joey gathering. It's a great opportunity to run into or catch up with people looking to get involved in the ecosystem or looking for support. It's a great networking opportunity.

Wade Pinder, founder of Product Houston: I love seeing how the community has really connected this past year specifically. We've gathered momentum and have a "gravity well" of community leaders feeding value to one another.

IM: What are the strengths of the Houston innovation ecosystem?

Odegard: Access to (engineering) talent, capabilities, and global connectivity that are not afraid of getting her hands dirty to build and scale.

Ethier: The diversity of the founders and the intrinsic diversity of the Houston ecosystem. There are few native Houstonians, and most of the fantastic founders we meet are from somewhere else. The energy industry brings the best of the best from around the world and they inject Houston with unique excellence.

Sanchez: We are a resource right environment. We have a plethora of talent and capital. With the economy the size of Belgium, we have access to industries and talent unlike any other city. Also the convergence of energy, medical and aerospace is one of a kind. Each industry is transforming and providing a ripe opportunity for innovation.

Alridge: The growing number of startup development organizations (SDOs), incubators and accelerators, makerspaces, co-working spaces, non-profits, and academic institutions that is available is a strength, because their are plenty of places to get support and your ideas off the ground.

Pinder: We do hard things here because the ARE hard! 1) Life and death situations en masse, 2) infrastructure at scale 3) Boldly going where no one has gone before! That's what we've done here. That's what we stand to innovate on! If it's a hard problem, Houston gets it done!

IM: What are the weaknesses of the Houston innovation ecosystem? Are you helping to make improvements to these weaker aspects of the community and, if so, how?

Odegard: Access to more risk capital.

Ethier: We need a skill set on scaling businesses. This is something the valley does exceptionally well. When there is product market fit, the startup ecosystem knows how to scale teams from 20-200 and do so repeatedly. Houston knows how to do big energy projects; from sput to TD, there is a skill set here around complexity...but how that applies to scaling businesses its unclear we have what it takes. This is why its imperative we bring in mature startups from around the country and try to transfer knowledge from the energy industry into the startup space. Building an acceleration program like Lambda is a step in solving this problem.

Sanchez: Density is our biggest challenge. The geographic sprawl of our region is vast. Serendipitous meetings are a challenging. The Ion has created a central place where our ecosystem can come together. Every Friday we meet for Cup of Joey and now we host a Cup of Joey in The Woodlands, Space Center Houston, Sugar Land and The Cannon West. Creating eight Cup of Joey meetups each month. The most exciting element of Cup of Joey is coming in an online platform for connection.

Alridge: We need a robust cadre of startup specialists, serial entrepreneurs who have successfully started companies. Especially in business and STEM fields, is needed in the innovation system. Higher education in providing talent is important, I'm doing my part by organizing opportunities for students to work with our startups which can directly and indirectly contribute to the workforce and the grown startup community.

Pinder: We're changing this... but we still have a ways to go with the "I'm good... what do I need to show up for?" thinking. It's not for lack of wanting to show up... traffic makes it tougher to show up most of the time.

IM: What do you wish more people knew about the Houston startup community?

Odegard: That Houston IS a tech hub addressing some of the biggest societal challenges we are face today, such as: power (security), healthcare (affordable and accessible), sustainability (clean and green), and equitable access to economic opportunities.

Ethier: How climate focused everyone is, from the founders, to the SMEs, industry and SMEs. Houston (and energy companies) know how to manage what's measured and now that we have targets around decarbonization, we are going to get it done.

Sanchez: I wish the world knew more about Houston and our Houston startup community. I believe that our foundation is strong and we are ready for scale. 2026 to 2036 will be a decade of massive growth for Houston and our ecosystem.

Alridge: We are more than oil and gas and health care.

Pinder: We've got the solutions to some huge problems sitting right here in Houston.

Click here to secure your tickets to the November 8 event where we announce the winner of this exciting new category.

From Your Site Articles
Capital Factory will have a branded area in The Cannon when it opens its new facility. Courtesy of The Cannon

Capital Factory hires two Houston-based employees to grow its local presence

Onboarding

A major Texas innovation player with roots in Austin has now staffed its recently announced Houston outpost in partnership with The Cannon Houston. Capital Factory hired two Houstonians to help provide resources for its growing Houston-based portfolio companies.

Kendrick Alridge has been hired as mentor coordinator, and Brittany Barreto, who founded Pheramor and WeHaveChemistry, has been named the venture associate. Aldridge will focus on growing and cultivating relationships with Houston mentors, and Barreto is dedicated to reaching out to Houston startups to gauge their potential for Capital Factory participation.

Hiring these Houstonians and having these new boots on the ground is a key factor for Capital Factory as it grows its Houston presence, says Gordon Daugherty, president at Capital Factory.

"It's important for us to think Texas, but act local," Daugherty says. "What that means is we can't just assume that the way we do things and the things that made us successful in Austin will directly translate to Houston. Houston is a different market. That's one of the things we learned from Dallas."

Acting locally entails listening and learning to what the community wants and engaging with local organizations to contribute value to the market.

"We don't know how or in which ways, but we know Houston will be different from Dallas and Austin," Daugherty says. "In this way, we are advantaged by our two employees being from the Houston area. They're our eyes and ears, for one, but they are also the voice of Houston to us along with other ecosystem players."

While local resources and personnel are both new for Capital Factory, the organization already has over 20 portfolio companies that are based in the Houston area. Now, these companies will have new resources close to home and can also act as Capital Factory representatives in the community, Daugherty says.

One of the biggest benefits Capital Factory is bringing into town is investment opportunities. Daugherty says that he predicts that Capital Factory, which tends to invest many small-sum deals, will quickly become the most active early stage investor in Houston. The organization has already made a few investments in Houston companies — and this isn't even counting the dollars invested by the investment partners.

"Our mission, as it pertains to Houston, is to help the best Houston startups get funded. We will tap into our network of investors across the state and country to try to find the best matches."

If Houston can take any indication from Capital Factory's Dallas location, which opened earlier this year, Capital Factory will be making a big impact on Houston startups.

"In 2018, 25 percent of the startups we onboarded into the accelerator were from outside of Austin," Daugherty tells InnovationMap. "The first half of this year, a third or more have come from Dallas alone. And I expect the same from Houston. Next year, easily more than half of our new accelerator companies will be outside of Austin."

Capital Factory will have branded space in The Cannon when it opens its new facility later this month.

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New AI program powered by Mark Cuban opens applications for Houston students

eyes on ai

The Mark Cuban Foundation is partnering with digital consultant company Perficient’s Houston office to bring a one-of-its-kind, free artificial intelligence camp to high school students in Houston.

Applications, which are open now online, will close September 30.

“With the proliferation of AI, it’s more important than ever to increase AI education – especially among today’s youth,” Bill Davis, senior vice president at Perficient, says in a news release.

The curriculum will focus on the latest developments in the world of AI and Generative AI. The camp — held at Perficient’s Houston office on November 2, 9 and 16 — will provide students with necessary tools and technologies to help inspire a new generation of AI users and professionals. The camp aims to help underserved high school students with a focus on recruiting students of color, first generation college students, girls, and those from lower to moderate income households.

“As AI continues to become an undeniable force in all of our lives, it’s crucial that we open the door to this knowledge, especially to young people who want to explore it,” Cuban says in the release. “While technology expands and becomes more advanced, it becomes more critical that we ensure our students are prepared when they apply for schools or jobs in the future. Thanks to our work with Perficient, the bootcamp will offer an avenue to explore this fascinating field of technology to any student, no matter their means.”

Students can select from six tracks in the course that include healthcare, arts and entertainment, business and entrepreneurship, computer science, sports science, or education and career readiness. The AI Bootcamps are introductory and accessible to students in ninth through 12th grade with an interest in technology without any prior computer science experience. Transportation, resources and food will be provided.

As classes like STEM increase in popularity more programs have been created to help increase interest. More than 233,000 high school students in Texas took Career and Technical Education courses focused on STEM from 2020-2021.

“We’re proud to partner with the Mark Cuban Foundation to educate the next generation of technology leaders, mentoring students in AI, and ensuring the future of STEM,” Davis said in a news release.

UTSI's advisory board digs into cybersecurity's challenges, trends + tech

From The Board

In today's digital landscape, the convergence of Information Technology (IT) and Operational Technology (OT) presents both opportunities and challenges for critical infrastructure asset owners and operators.

UTSI, a leading systems integrator of OT technology, has assembled an OT Cybersecurity Advisory Board to address these challenges and highlight standard processes and best practices to evaluate and secure these environments.

“We are excited about the strength of our esteemed Advisory Board and are confident that these strategic alliances will enhance our competitiveness,” says Shaun Six, president of UTSI International.

A few of the drivers of OT and IT convergence include increased efficiency, enhanced data, and improved remote monitoring and control capabilities. It exists to promote the promise of connectivity, data visualization, and to enable AI and better decision-making.

Key challenges
However, there are challenges. Increased attack surface, legacy systems, and infrastructure, as well as differing security requirements and regulatory and compliance challenges are all present.

“As we witnessed our global infrastructure recover from the largest outage on July 19, this is a clear and present example of how the application of technology between IT/OT can have an impact on the underlying interdependencies in critical systems and infrastructure," says Cherise Esperaza, co-founder and president of Security Gate. "Therefore, there is an ever-increasing need for resources to be expended for this endeavor, and understanding the areas of risk alongside business outcomes as it relates to the convergence will be a critical to ensuring optimal availability of these systems.”

Increased monitoring

When it comes to security monitoring and incident response, it's vital to incorporate new tools to monitor, meeting the same standards as legacy assets and reporting vulnerabilities.

"Continuous monitoring is one of the most critical aspects of securing your IT/OT infrastructure," offers Eric Rippetoe, former CISO of Federal Energy Regulatory Commission and UTSI cybersecurity consultant. "Automated tools coupled with mature processes allow organizations to rapidly detect security threats and enable teams to quickly respond to address issues. Having a security incident and not knowing about it could result in huge remediation costs and major long-term reputational damage."

Emerging technology and trends
With the rise of AI, it makes sense now more than ever to follow the principle of "never trust, always verify." A Zero Trust architecture is a strategic approach to cybersecurity that secures an organization by eliminating implicit trust and continuously validating every stage of a digital interaction.

In line with this approach, UTSI International Corporation, as a Gold Partner of ThreatGEN, has been intensively utilizing ThreatGEN's AutoTableTop™ incident response tabletop exercise simulation tool. This advanced technology is helping UTSI provide meaningful tabletop exercises to their client base, particularly in high-risk SCADA and OT environments.

Clint Bodungen, president of ThreatGEN, emphasizes the tool's significance: "This tool is designed to sharpen incident response capabilities for teams operating in critical SCADA and OT environments. In these high-stakes settings, where system availability is paramount and the consequences of failure can be catastrophic, AutoTableTop™ provides an unparalleled platform for realistic, AI-driven tabletop exercises. It allows teams to practice and refine their responses to a wide range of scenarios, with practically zero planning time required, ensuring they're prepared for the unique challenges posed by industrial control systems where even a minor slip-up could have deadly consequences. This application of advanced simulation technology aligns with the industry's move towards more robust and realistic cybersecurity training, especially in sectors where the stakes are exceptionally high."

In conclusion
The convergence of IT and OT presents significant cybersecurity challenges for critical infrastructure. However, by understanding these challenges and implementing effective strategies, organizations can protect their essential systems from cyber threats.

“Maintaining an accurate inventory of assets poses a significant challenge for companies with control system networks," says Derek Harp, chairman, Control System Cyber Security Association International. "As outlined in our 2024 OT Cybersecurity Technology Report, not only is it difficult to identify these assets, but understanding their communication adds an additional layer of complexity. Typically, companies only gain a snapshot of their OT network status and assets' interactions during periodic assessments. Not surprisingly, our research also indicates that the frequency of these critical evaluations is increasing.”

The role of UTSI's OT Cybersecurity Advisory Board, along with the use of advanced tools like Security Gate and ThreatGEN, is pivotal in navigating this complex landscape. As the threat landscape continues to evolve, proactive measures and ongoing investment in cybersecurity will be crucial to safeguarding our most critical assets.

Play it back: Houston therapeutics co. sees momentum with expanded treatment opportunities

houston innovators podcast Episode 253

It's been a busy summer for Houston-based Coya Therapeutics, a clinical-stage biotech company that's creating revolutionary treatments for neurodegenerative diseases like Alzheimer’s, Parkinson’s, and ALS.

In July, Coya announced that has expanded its collaboration with Houston Methodist Research Institute, or HMRI. The publicly traded company also announced fresh funding from the Johnson Center for Cellular Therapeutics.

Last month, Coya reported that it has expanded its treatment research to see how GLP-1 drugs — a trending drug for weight loss — can enhance the effects of its proprietary therapeutics. By combining the medicines, Howard Berman, co-founder and CEO of Coya Therapeutics, says he thinks Coya can better treat these complex immune-based diseases.

Berman joined the Houston Innovators Podcast in April of 2023 to discuss taking Coya public and his passion for the company's mission.

"I was interested in what I could do for my dad," Berman says on the Houston Innovators Podcast, explaining how he took the meeting with Dr. Stanley Appel, who then presented him with some of his research. "By slide five my jaw had hit the ground.

"He had shown that he could stop the progression in one of his early trials of ALS," Berman says.

Berman shares more of the Coya Therapeutics story on the podcast, as well as how he sees Houston's potential as an emerging hub for biotech.

"The next number of years as we develop this therapeutic regimen for ALS, we have the potential to transform Houston into something more than it is currently," he says. "Our success will be the city's success."

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