Houston expert shares tips on understanding the science of communications

Guest column

Take the time to do your homework before jumping into launching a communications strategy. Photo via Getty Images

Co-founder of the Hackett Center for Mental Health, Maureen Hackett, once told me, "Newman & Newman applies the science of communications." I had never heard our approach to marketing communications described that way, but I understood her point. Before we produce promotional materials, digital campaigns or social media platforms, we research answers to fundamental questions for delivering a positive return on investment.

So many leaders want to jump straight into producing tangibles. I understand, they want solutions they can see, touch and hear, and they want them now. It can be tough to employ thoughtful strategies when you're pressed for results. The good news is that research doesn't have to delay taking action, but it has everything to do with how successful those actions will be.

Investing in communications research

Just as you wouldn't hire a marketing communications specialist to design a medical device, founders of a life science company are rarely trained in the proficiencies of strategic communications. Clearly, they possess the vision, but translating that vision into compelling language, and ultimately impactful marketing tools, requires an applied science all its own.

In formulating communication strategies, we study what you do and why it matters, as well as the perspectives of your key audiences to better understand their motivations. Much like a life science engineer applies research findings to develop new products or processes, we use the results of our research to develop messages and marketing tools that connect the purpose and impact of your innovative device or service with the unique priorities, needs and concerns of each group you are targeting.

Though necessary, it requires skill and insight. In their Industrial Biotechnology article, Marketing and communicating innovation in industrial biotechnology, biochemist Hamid Ghanadan and co-author Michael Long wrote, "The challenge is that most life science products and services address multiple market segments, fit within multiple applications and workflows, and are sought by multiple types of audiences. Thus, marketing management has to create a chameleon that can be compelling and convincing on very targeted terms."

Targeting your message on their terms

Organizations sometimes limit the focus of their marketing communications to sources of funding, investors and clients who contract their services or products, and telling them why they should. To prevent missed opportunities, it's important to research the full spectrum of your company's audiences. For instance, what key influencers in the innovation ecosystem have the potential of facilitating valuable connections for you or represent strategic partnerships? If you're a B2B2C company, who are your customer's customers whose satisfaction, compliance and understanding of what you've developed can influence the future of that contract?

Once each key audience is identified, what does it mean to speak their language? Because when it comes to formulating audience-specific messaging, one size does not fit all. The more tailored your communications, the more you incorporate their vernacular into your story, the better the results. This too requires research for effectively connecting the solutions you offer with what's important to a given audience. Ultimately, it's a merging of your knowledge and intentions with the unique interests, concerns and needs of those you want to reach.

Every organization is founded on answering a need. It defines your purpose. What is the significance of your organization's purpose and how is it clearly communicated in messaging that influences opinion and motivates action in your target audiences? Answering that fundamental question is the first step in research that I've yet to see not reveal significant results.

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Kelli Newman is president of the Houston-based communication strategies firm, Newman & Newman Inc., where she leads a talented team of marketing professionals advancing the success of their purpose-driven clients.

This week's roundup of Houston innovators includes Barbara Burger of Chevron, Ashley DeWalt of DivInc, and Kelli Newman of Newman & Newman Inc. Courtesy photos

3 Houston innovators to know this week

who's who

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — energy venture, sports tech, and communications — recently making headlines in Houston innovation.

Barbara Burger, vice president of innovation at Chevron and president of Chevron Technology Ventures

Chevron Technology Ventures made two recent investments from its brand new fund. Courtesy of CTV

In February, Chevron Technology Ventures LLC launched its newest $300 million Future Energy Fund II to build on the success of the first Future Energy Fund, which kicked off in 2018 and invested in more than 10 companies specializing in niches like carbon capture, emerging mobility, and energy storage. The initial fund contained $100 million.

"The new fund will focus on innovation likely to play a critical role in the future energy system in industrial decarbonization, emerging mobility, energy decentralization, and the growing circular carbon economy," Houston-based Chevron Technology Ventures says in a February 25 release.

Now, a few months later, Barbara Burger, vice president of innovation at Chevron and president of Chevron Technology Ventures, has announced that the fund has made its first two investments — one in a company with offshore wind turbines and one that's working on an alternative energy source from ammonia. Read more.

Ashley DeWalt, managing director of DivInc

Ashley DeWalt, managing director of DivInc, joins the Houston Innovators Podcast to discuss diversity and inclusion, sports tech, and all things Houston. Photo courtesy of DivInc

Houston has a huge opportunity for sports innovation, says Ashley DeWalt, and he should know. He's spent over 15 years in the industry at both the professional and collegiate levels.

"We have a very high concentration of current and former professional athletes that live in Houston," DeWalt says, "and I truly believe — and the data shows this — these professional athletes are going to invest in sports tech."

DeWalt — who is the Houston-based managing director at DivInc, which just expanded to Houston — joined the Houston Innovators Podcast last week to discuss sports tech and diversity in the Houston innovation ecosystem. Stream the episode and read more.

Kelli Newman, president of Newman & Newman Inc.

In her guest column, Kelli Newman explains missed communications and branding opportunities for Houston innovators. Photo courtesy of Newman & Newman

Chances are, you aren't making the most out of branding and storytelling opportunities. At least that's what Kelli Newman, president of the Houston-based communication strategies firm, Newman & Newman Inc., found in her recent research into the Houston innovation ecosystem.

"For two months we interviewed investors, accelerators, industry customers and entrepreneurs themselves, asking for missed opportunities they may be seeing in what and how companies are communicating," she writes in a guest column for InnovationMap in which she explains her findings.

From setting yourself apart from the competition and tapping into empathy, Newman shares her tips from her findings. Read more.

Don't miss a messaging or communications opportunity for your startup. Photo via Getty Images

Here's what Houston's innovation community is missing out on when it comes to messaging

Guest column

By definition, companies throughout the innovation ecosystem have a purpose-driven story to tell. As communication strategists who specialize in purpose-driven clients, we wondered if influencers of Houston's entrepreneurial community see any recurring communication challenges getting in the way of companies successfully securing funding, acquiring customers and even recruiting talent.

For two months we interviewed investors, accelerators, industry customers and entrepreneurs themselves, asking for missed opportunities they may be seeing in what and how companies are communicating. Below are our findings, with corresponding recommendations organized into four key points of action.

Distinguish yourself from your competition

"They may have an incredible concept, but terrible messaging," was a surprisingly common response to our investigation of communication obstacles.

Many innovators think that simply describing the inspiration for their company, perhaps the illness of a loved one or an observed struggle, is enough for explaining the Why of their story. In fact, investors, potential customers and even employees are looking for something more substantial.

First, what distinguishes your company from others like it? Regardless of how pioneering the solution you offer, it will be compared to whatever else is currently available to address the need, including nothing at all. Simply explaining how what you provide works is not enough. Our research substantiated the need for also addressing your company's relevance and differentiation. Characterizing the unique essence of your company is an important distinguisher from the competition that helps cut through the noise.

When formulating a client's organizational messaging we not only examine their purpose, we study their values and culture so that it is reflected in language the company uses to describe itself. Potential customers we interviewed said the compatibility of company cultures and values weigh heavily in their considerations for partnering. So, you're overlooking a key distinguishing strategy if you think target audiences are only interested in the nuts and bolts of what you do.

Speak the language of different audiences

More than the fundamental act of communicating, messaging is language specifically tailored to articulate an organization's unique purpose, significance, values, and culture. Messaging delivers the greatest impact when it functions as a tangible asset. In other words, a formal document of composed language that ensures continuity and is utilized as talking points for investor presentations, content on the company's website, themes reflected in digital advertising, etc. However, it should not be viewed as one size fits all.

Information with universal relevance, known as organizational messaging, is essential, but so is audience-specific messaging that addresses the unique perspectives, priorities and concerns of individual groups. The need for companies to recognize this important distinction was another of our findings.

While both investors and customers are interested in the viability of your company's technology or services, they each have very different needs and priorities. To motivate desired action, you must speak each audience's specific language, which means getting out of your head and into theirs.

If you're a B2B2C company, you may even need to speak the language of your customer's customer. Several research interviews expressed how companies shoot themselves in the foot when they don't take the long view of an audience's needs. If, for instance, your customer is having difficulty explaining to their patients how your innovative medical device works, composing instruction language and even producing patient education tools may be an added deliverable necessary for you to retain that contract.

Not recognizing employees as a key audience and overlooking the importance of strong internal communications was also identified as an obstacle to success. Clearly, attracting funding from investors and business from customers is a core objective of effective communications. However, employees should also be considered a priority with messaging that keeps them informed, inspired and on track. Afterall, they're the team that will take your vision over the finish line.

Connect on an empathetic level

Research participants emphasized the need for factoring in a discovery phase that not only involves learning how to speak an audience's language, but gaining an appreciation for the challenges, goals, protocols and culture of those they're approaching as well. It requires assuming a level of empathy and understanding, rather than a singular focus on "sales," that ultimately culminates in rewarding, long-term relationships.

Effective communication is not a one-way exchange. Listening is critical. When what you've discovered is reflected in your marketing materials, that demonstration of a genuine commitment to connect is reported as being even more impressive.

Avoid costly consequences of poor communications

Companies operating without a Strategic Communications Plan risk the expensive consequence of functioning in a chronic reactionary mode with scattered results and lost credibility through inconsistency.

Yes, flexibility is important, but the research we've conducted reveals a clear advantage for those who recognize the importance of effective communications, particularly growth-stage companies that have gained their initial footing and are ready to build on their brand. The key is putting a blueprint in place that connects the dots of what you offer and your distinguishing essence, with the needs of your targeted audiences, by speaking their language. If not, you risk missed opportunities for securing funding, acquiring customers and attracting the best talent.

Changing the world is your passion, helping innovative entrepreneurs effectively communicate that passion is ours.

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Kelli Newman is president of the Houston-based communication strategies firm, Newman & Newman Inc., where she leads a talented team of marketing professionals advancing the success of their purpose-driven clients.

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Houston VC funding surged in 2024, fueled by major Q4 activity

by the numbers

The venture capital haul for Houston-area startups jumped 23 percent from 2023 to 2024, according to the latest PitchBook-NVCA Venture Monitor.

The fundraising total for startups in the region climbed from $1.49 billion in 2023 to $1.83 billion in 2024, PitchBook-NVCA Venture Monitor data shows.

Roughly half of the 2024 sum, $914.3 million, came in the fourth quarter. By comparison, Houston-area startups collected $291.3 million in VC during the fourth quarter of 2023.

Among the Houston-area startups contributing to the impressive VC total in the fourth quarter of 2024 was geothermal energy startup Fervo Energy. PitchBook attributes $634 million in fourth-quarter VC to Fervo, with fulfillment services company Cart.com at $50 million, and chemical manufacturing platform Mstack and superconducting wire manufacturer MetOx International at $40 million each.

Across the country, VC deals total $209 billion in 2024, compared with $162.2 billion in 2023. Nearly half (46 percent) of all VC funding in North America last year went to AI startups, PitchBook says. PitchBook’s lead VC analyst for the U.S., Kyle Stanford, says that AI “continues to be the story of the market.”

PitchBook forecasts a “moderately positive” 2025 for venture capital in the U.S.

“That does not mean that challenges are gone. Flat and down rounds will likely continue at higher paces than the market is accustomed to. More companies will likely shut down or fall out of the venture funding cycle,” says PitchBook. “However, both of those expectations are holdovers from 2021.”

Justice Department sues to block Houston-based HPE's $14B buyout of Juniper

M&A News

The Justice Department sued to block Hewlett Packard Enterprise's $14 billion acquisition of rival Juniper Networks on Thursday, the first attempt to stop a merger by a new Trump administration that is expected to take a softer approach to mergers.

The Justice complaint alleges that Hewlett Packer Enterprise, under increased competitive pressure from the fast-rising Juniper, was forced to discount products and services and invest more in its own innovation, eventually leading the company to simply buy its rival.

The lawsuit said that the combination of businesses would eliminate competition, raise prices and reduce innovation.

HPE and Juniper issued a joint statement Thursday, saying the companies strongly oppose the DOJ's decision.

“We will vigorously defend against the Department of Justice’s overreaching interpretation of antitrust laws and will demonstrate how this transaction will provide customers with greater innovation and choice, positively change the dynamics in the networking market,” the companies said.

The combined company would create more competition, not less, the companies said.

The Justice Department's intervention — the first of the new administration and just 10 days after Donald Trump's inauguration — comes as somewhat of a surprise. Most predicted a second Trump administration to ease up on antitrust enforcement and be more receptive to mergers and deal-making after years of hypervigilance under former President Joe Biden’s watch.

Hewlett Packard Enterprise announced one year ago that it was buying Juniper Networks for $40 a share in a deal expected to double HPE’s networking business.

In its complaint, the government painted a picture of Hewlett Packard Enterprise as a company desperate to keep up with a smaller rival that was taking its business.

HPE salespeople were concerned about the “Juniper threat,” the complaint said, also alleging that one former executive told his team that “there are no rules in a street fight,” encouraging them to “kill” Juniper when competing for sales opportunities.

The Justice Department said that Hewlett Packard Enterprise and Juniper are the U.S.'s second- and third-largest providers of wireless local area network (WLAN) products and services for businesses.

“The proposed transaction between HPE and Juniper, if allowed to proceed, would further consolidate an already highly concentrated market — and leave U.S. enterprises facing two companies commanding over 70% of the market,” the complaint said, adding that Cisco Systems was the industry leader.

Many businesses and investors accused Biden regulatory agencies of antitrust overreach and were looking forward to a friendlier Trump administration.

Under Biden, the Federal Trade Commission sued to block a $24.6 billion merger between Kroger and Albertsons that would have been the largest grocery store merger in U.S. history. Two judges agreed with the FTC’s case, blocking the proposed deal in December.

In 2023, the Department of Justice, through the courts, forced American and JetBlue airlines to abandon their partnership in the northeast U.S., saying it would reduce competition and eventually cost consumers hundreds of millions of dollars a year. That partnership had the blessing of the Trump administration when it took effect in early 2021.

U.S. regulators also proposed last year to break up Google for maintaining an “abusive monopoly” through its market-dominate search engine, Chrome. Court hearings on Google’s punishment are scheduled to begin in April, with the judge aiming to issue a final decision before Labor Day. It’s unclear where the Trump administration stands on the case.

One merger that both Trump and Biden agreed shouldn’t go through is Nippon Steel’s proposed acquisition of U.S. Steel. Biden blocked the nearly $15 billion acquisition just before his term ended. The companies challenged that decision in a federal lawsuit early this year.

Trump has consistently voiced opposition to the deal, questioning why U.S. Steel would sell itself to a foreign company given the regime of new tariffs he has vowed.

Houston space company lands latest NASA deal to advance lunar logistics

To The Moon

Houston-based space exploration, infrastructure, and services company Intuitive Machines has secured about $2.5 million from NASA to study challenges related to carrying cargo on the company’s lunar lander and hauling cargo on the moon. The lander will be used for NASA’s Artemis missions to the moon and eventually to Mars.

“Intuitive Machines has been methodically working on executing lunar delivery, data transmission, and infrastructure service missions, making us uniquely positioned to provide strategies and concepts that may shape lunar logistics and mobility solutions for the Artemis generation,” Intuitive Machines CEO Steve Altemus says in a news release.

“We look forward to bringing our proven expertise together to deliver innovative solutions that establish capabilities on the [moon] and place deeper exploration within reach.”

Intuitive Machines will soon launch its lunar lander on a SpaceX Falcon 9 rocket to deliver NASA technology and science projects, along with commercial payloads, to the moon’s Mons Mouton plateau. Lift-off will happen at NASA’s Kennedy Space Center in Florida within a launch window that starts in late February. It’ll be the lander’s second trip to the moon.

In September, Intuitive Machines landed a deal with NASA that could be worth more than $4.8 billion.

Under the contract, Intuitive Machines will supply communication and navigation services for missions in the “near space” region, which extends from the earth’s surface to beyond the moon.

The five-year deal includes an option to add five years to the contract. The initial round of NASA funding runs through September 2029.

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