How patents can provide additional revenue streams for Houston innovators

GUEST COLUMN

A patent is an asset — says this Texas-based intellectual property expert. Photo via Getty Images

Seeking patent protection can offer a substantial competitive advantage to startups looking to raise capital, especially during a venture capital downturn. Besides the protection patents can provide against intellectual property theft, they are also assets that can translate into expansion opportunities and additional revenue streams. These factors are important to institutions and individuals that invest in startups, as they may reduce downside risks to their investments and help outline a growth trajectory.

As Kathi Vidal, under secretary of commerce for intellectual property and director of the U.S. Patent and Trademark Office, said during a speech last year, “having a [patent] pending application helps secure funding, and it keeps potential competitors out of your space.”

The experience of Austin-based VoChill, a startup that created a new line of personal wine chillers, offers a case study of how filing for patent protection as early as possible can set up any startup for success, not only when seeking to raise capital, but also when working to expand its commercial relationships and distribution channels.

Filing for patents quickly gave VoChill’s founders a competitive advantage when approaching potential investors, as it demonstrated the management team’s high level of preparedness and business acumen. For investors who eventually committed capital to the startup, the filings signaled a safer bet on investing in VoChill.

There is plenty of evidence indicating that patents help attract capital and generate growth opportunities. A study conducted by professors from Harvard Business School and New York University’s Stern School of Business found that patent protection increased startups’ odds of receiving venture capital funding by 59 percent.

PitchBook data shows that startups seeking patents raise more capital than their non-patent-seeking peers. About 58 percent of venture capital went to startups with patents or with patent applications from 2011 to 2020, the research firm notes.

Patents can also help drive a startup’s expansion and grow sales. According to the National Bureau of Economic Research, or NBER, the approval of a startup’s first patent application increases its employee growth by 36 percent over the following five years. After five years, a new company with a patent increases its sales by a cumulative 80 percent more than companies that do not have a patent.

Patents can also increase a startup’s chances of obtaining distribution deals or, in the case of consumer products, partnerships with retailers. In VoChill’s experience, patent protection is a recurring theme in conversations not only with investors but also distributors and retailers.

Patents offer startups the possibility to pursue a licensing model as well. Licensing or selling the rights to a patent so that others may produce products or processes based on that patent can bring in ongoing revenue streams.

Down the line, having patent protection can lead to better exit opportunities, be it by going public or via a private divestiture.

According to the NBER, having patents more than doubles the probability that a startup is eventually listed on a stock exchange.

PitchBook data, meanwhile, shows that patent-seeking companies go public at a rate more than five times higher than non-patent-seeking companies (23.2 percent versus 4 percent).

In the case of exits via a sale of the startup, the median exit value for patent-holding companies is 154.9 percent higher than it is for companies without patents per year on average, according to PitchBook.

While the business case for seeking patent protection is clear, startups should keep a few considerations in mind when seeking to do so. Understanding time bars is crucial; for example, the United States generally allows only one year to file a patent application after an invention is publicly written about, shown, used, or otherwise disclosed, and overseas often no one-year “grace period exists.”

Still, other important predicates are finding out whether the innovation is truly new, identifying the most crucial components of a product or system, and thinking about what aspects competitors are likely to discover and copy.

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Chris Palermo is partner at Baker Botts where he specializes in intellectual property development. Lisa Pawlik is CEO of VoChill, a company that creates individual wine glass chillers.

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Houston lands $14M in latest CPRIT grants to advance cancer, lab-on-chip research

cancer funding

Thanks to a $4 million grant from the Cancer Prevention and Research Institute of Texas, the University of Houston has recruited a top-tier researcher developing AI-powered lab-on-a-chip technology for early cancer detection.

Tianhong Cui, a professor of mechanical engineering at the University of Minnesota Twin Cities and an adjunct professor of physiology and biomedical engineering at the Mayo Clinic, specializes in microelectromechanical systems and advanced manufacturing at microscale and nanoscale levels. In addition to lab-on-a-chip systems, Cui focuses on biosensors and water sensors.

Lab-on-a-chip devices deliver big results in a tiny package

The CPRIT grant supports Cui’s development of a microscale lab-on-a-chip system for early cancer detection and post-therapy monitoring.

“Lab-on-a-chip technology crams an entire lab’s worth of functions into a tiny device roughly the size of a USB stick,” according to Built In.

Common uses for the technology include medical diagnostics, point-of-care testing, and environmental monitoring.

Lab-on-a-chip work being carried out at UH and elsewhere in Houston promises to revolutionize cancer detection and treatment. For instance, Houston biotech company iBiochips, a spinout from the Houston Methodist Research Institute, makes lab-on-a-chip devices that bolster cancer detection and therapy.

Four local organizations gain $10 million in CPRIT grants

Four other Houston-area organizations received an additional $10 million in grants in CPRIT’s latest round of funding:

  • University of Texas MD Anderson Cancer Center received two $2 million grants to recruit researchers Zheqi Li of Harvard University’s Dana-Farber Cancer Institute and Nikolaos Koundouros of Weill Cornell Medicine.
  • Rice University received one $2 million grant to recruit researcher Maria Akoppyan, formerly of the University of Southern California.
  • UT Medical Branch at Galveston received one $2 million grant to recruit researcher Cristina Santarossa of Johns Hopkins University.
  • Houston-based biopharma company Pulmotect received one $2 million grant to support better outcomes for cancer patients by activating immunity in the lungs as a first line of defense against germs.

The funding was part of $35 million in new CPRIT grants for institutions and companies across Texas approved at the organization's most recent meeting. To date, CPRIT has awarded more than $4.2 billion in grants.

“These awards support research across the cancer continuum from prevention to new classes of therapeutics,” said Dr. Scott Hiebert, chief scientific officer of CPRIT, said in a news release. “The work of these investigators will impact the lives of Texans across the state.”

2 Houston high schools soar as America's best for 2026, says U.S. News

Honor Roll

Houston ISD's Carnegie Vanguard High School is standing tall as one of the 25 best high schools in America, according to U.S. News and World Report's 2026-2027 Best High Schools rankings.

DeBakey High School for Health Professions also ranks among the top 100 nationally, and 23 more Houston-area schools join them at the top of the class in Texas.

Each year, U.S. News evaluates approximately 27,000 public high schools on six factors: college readiness, college curriculum breadth, state assessment proficiency, state assessment performance, underserved student performance, and graduation rates.

The highest ranking public schools provide the best educational environments where "students demonstrated outstanding outcomes above expectations in math, reading and science state assessments, earned qualifying scores on an array of college-level exams, and graduated in high proportions."

"Every student deserves a pathway to success, and that journey often begins with selecting the right school," said LaMont Jones, Ed.D., managing editor for education at U.S. News. "The 2026-2027 Best High Schools rankings empower families with the valuable data and transparency they need to help make the best educational choices for them. We are proud to offer this essential resource to help shape the next generation of college-ready students."

Top ranking Houston schools
Carnegie Vanguard High School once again leads in Texas as the No. 2 best high school, and soared as No. 25 in U.S. News' national list of the best high schools, up from No. 42 last year.

DeBakey High School for Health Professions is the 9th best high school in Texas and ranks No. 91 nationally (down from No. 75 last year).

Three more local schools ranked among the best STEM schools in the country: Memorial High School in Spring Branch ISD (No. 86), Seven Lakes High School in Katy ISD (No. 96), and Dulles High School in Fort Bend ISD (No. 99).

In U.S. News' ranking of the best charter schools, four Houston-area schools made the top 100: Spring Branch ISD's Westchester Academy for International Studies (No. 62), Harmony School of Innovation - Katy (No. 72), Harmony School of Discovery - Houston (No. 78), and YES Prep - North Central (No. 100).

Other Houston-area schools that rank among the 100 best in Texas are:

  • No. 17 – Kerr High School, Alief ISD, Houston
  • No. 24 – Young Women's College Prep Academy, Houston ISD
  • No. 25 – Kinder High School for Performing and Visual Arts, Houston ISD
  • No. 31 – Challenge Early College High School, Houston ISD
  • No. 39 – Westchester Academy for International Studies, Spring Branch ISD, Houston
  • No. 44 – Tomball Star Academy, Tomball ISD
  • No. 45 – Harmony School of Innovation - Katy
  • No. 46 – North Houston Early College High School, Houston ISD
  • No. 51 – Eastwood Academy, Houston ISD
  • No. 52 – Seven Lakes High School, Katy ISD
  • No. 54 – Harmony School of Discovery - Houston
  • No. 55 – Energy Institute High School, Houston ISD
  • No. 56 – Spring Early College Academy, Spring ISD
  • No. 63 – Sharpstown International School, Houston ISD
  • No. 66 – YES Prep - North Central, Houston
  • No. 73 – Tompkins High School, Katy ISD
  • No. 76 – YES Prep - Southeast, Houston
  • No. 80 – Harmony School of Innovation - Sugar Land
  • No. 81 – Clements High School, Fort Bend ISD, Sugar Land
  • No. 82 – Houston Academy for International Studies, Houston ISD
  • No. 86 – Jordan High School, Katy ISD
  • No. 88 – Victory Early College High School, Aldine ISD, Houston
  • No. 96 – Clear Horizons Early College High School, Clear Creek ISD, Houston

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This article originally appeared on CultureMap.com.

Intuitive Machines lands $600M satellite deal, NASA ‘spacecraft bus’ contract

space deals

Houston-based space infrastructure company Intuitive Machines has scored two astronomical deals.

The deals add to the company’s soaring success. As of June 30, Intuitive Machines had a record-high $1.8 billion backlog of orders, a $1.5 billion increase from the end of last year. The current backlog includes orders for more than 80 spacecraft.

The company, which went public in 2023, expects this year’s revenue to total $900 million to $1 billion. In the first half of 2026, Intuitive Machines generated nearly $393 million in revenue.

Intuitive Machines estimates its total available market is valued at more than $150 billion.

$600 million-plus deal represents ‘important milestone’

On Monday, Intuitive Machines said it picked up a $600 million-plus deal to develop three commercial satellites for an undisclosed customer over the course of about two years.

Intuitive Machines says it will design, manufacture, set up and support several spacecraft “for a critical communications infrastructure mission.”

Steve Altemus, the company’s CEO, says the deal represents “an important milestone for Intuitive Machines and reflects the confidence our customers place in our ability to deliver high-performance spacecraft for a broad range of mission needs.”

Company nails down NASA deal for ‘spacecraft bus’

A day after announcing the $600 million-plus deal, Intuitive Machines said it secured a new contract with NASA.

Intuitive Machines says NASA’s Jet Propulsion Laboratory in Southern California will use the company’s IM 300 “spacecraft bus” for an EAGLE-VSWIR Earth observation mission. The mission is scheduled to launch in 2028.

Aside from supplying the IM 300 bus, Intuitive Machines will carry out mission support services.

The low-Earth-orbit mission will be equipped with Intuitive Machines’ hyperspectral visible to shortwave infrared (VSWIR) instrument. This technology sees colors and details that aren’t visible to the human eye.

The instrument is “designed to perform surface biology and geology observations from Earth orbit while demonstrating technologies that could support future lunar and Mars exploration missions,” Intuitive Machines says.

Intuitive Machines builds mission-critical spacecraft, systems, and infrastructure for business and government customers. To date, the company has produced more than 300 spacecraft, delivered over 575 pounds of payload to the moon and launched about 100 satellites.

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