Four Houston accelerators will be working together this summer to advance nearly 30 university-associated startups. Photo via UH.edu

The University of Houston and Rice University have announced the cohorts for their summer accelerators that advance university-founded startups and small businesses.

The two schools run four programs in tandem with each other every summer for about a decade. There are nearly 30 companies this year being accelerated across the four programs, which are:

  • Rice's OwlSpark is focused on early-stage startup teams.
  • UH's RED Labs is focused on early-stage startup teams.
  • Rice's BlueLaunch is focused on non-tech small businesses.
  • UH's RED Launch is focused on non-tech small businesses.

"A very cool part of the program is that we partner every summer with Rice University's OwlSpark and Blue Launch," says Liana Gonzalez-Schulenberg, managing director of RED Labs. "It creates this really incredible network across the universities and allows both schools to bolster and benefit from each other.

"We share staff, we share mentors, we share speakers, we co-host the demo day, and we even share the catering bill," she continues. "It's a really special part of the program that I think has brought endless value to the founders, the universities, and Houston."

The 12-week program takes each of the teams — all of which have a university-affiliated founder, from undergrad to faculty — through key programming and mentorship. The final event includes a pitch day, called the Bayou Startup Showcase, where all of the companies share their business plans they've created through the program.

“I’m excited to support these new ventures with highly curated offerings and rich mentorship, propelling them to commercial success,” said Jessica Fleenor, managing director of BlueLaunch and OwlSpark. "We have built a long-standing culture of advocacy and collaboration, and look forward to upholding that in our largest cohort to date."

The selected companies for the four programs are as follows.

RED Labs (cohort 11)

  • We Felt It 3-D prints customized modifications to mobility devices like canes, walkers, and wheelchairs that maximizes comfort during use.
  • Zoop makes nutrition easy, clean and sustainable smoothie premixes which can be consumed anywhere and anytime by just mixing it with any of the preferred mixer (Water, Vegan milk, Milk, etc.)
  • Orbit is an application that allows users to understand the stock market through practice and training.
  • Team X is creating a company around nanoporous membrane technologies that recovers metals from wastewater and brine.

OwlSpark (cohort 11)

  • Terradote will manufacture cost-competitive, petroleum-free chemicals using captured carbon dioxide, methane and renewable bio-based materials.
  • Biomethanator’s biofilm bioreactors utilize biomethanation to convert industrial-waste carbon dioxide to methane, which can be used as fuel or in other industrial applications.
  • Taurus Vascular is developing a minimally invasive catheter for addressing the most pressing complication of endovascular aortic aneurysm repair: endoleaks.
  • Voythos offers a mobile physician companion that monitors electronic medical records, prompting action and initiating care workflows.
  • AiKYNETIX is developing a video analytics platform for human motion insights, focusing on a mobile running lab for runners and coaches.
  • AllStars is building an affect-sensitive educational tool for self-studying and blended classroom learning.
  • Eureka Hub is developing a marketplace where data and research scientists can publish, manage, share and revise analytical models for data sets across diverse applications.
  • ScoutBetter is an end-to-end recruiting platform that connects students with corporate campuses and provides recruiters access to university talent.

RED Launch (cohort 2)

  • Curio Sweets is a vegan dessert brand that provides wholesale desserts and services including: consultation; recipe development; and contract baking of their product.
  • Space City Vinyl is a vehicle wrapping business that offers a quick and non permanent color change of vehicles.
  • Venus by Design is a handmade jewelry company
  • First Byte Digital consulting firm that helps mom and pop restaurants and non-profits establish a robust online presence by offering a wide range of digital conversion services.
  • 2tinys designs, prints, and cuts stickers with the plan of expanding into art prints and stationery items.
  • Lacey's Art paints dog portrait artwork. They partner with shelters to find models (and provide some help to getting the dog adopted), and then sells the prints.

BlueLaunch (cohort 2)

  • Archway Family Medicine provides medical care to patients through a monthly membership model known as direct primary care.
  • rdy helps communities recover from disasters faster and more equitably by working with local organizations to plan for them.
  • 610 Smokehouse is a mobile food service and catering company that serves “Texan Fusion,” a unique cuisine that combines traditional Texas barbecue with diverse Houston food.
  • Serendipity Picnic is a unique picnic with all the goodies and essentials wrapped in a beautiful, lightweight, easy-to-carry and reusable “BlanKIT.”
  • La Mer Macaron offers an assortment of homemade French macarons.
  • TenTwelve provides residential construction and remodeling services.
  • DHA America customizes, designs and sells powder-coated and galvanized fence panels, posts and accessories.
  • All About Baby provides bespoke tableware for babies transitioning to solid foods.
  • MeowPlanet is opening a cat lounge.

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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.

Houston experts: Can AI bridge the gap between tech ambitions and market realities?

guest column

Despite successful IPOs from the likes of Ibotta, Reddit and OneStream, 2024 hasn’t provided the influx of capital-raising opportunities that many late-stage tech startups and venture capitalists (VCs) have been waiting for. Since highs last seen in 2021—when 90 tech companies went public—the IPO market has been effectively frozen, with just five tech IPOs between January and September 2024.

As a result, limited partners have not been able to replenish investments and redeploy capital. This shifting investment landscape has VCs and tech leaders feeling stuck in a holding pattern. Tech leaders are hesitant to enter the public markets because valuations are down 30 percent to 40 percent from 2021, which is also making late-stage fundraising more challenging. After all, longer IPO timelines mean fewer exit opportunities for VCs and reduced capital from institutional investors who are turning toward shorter-term investments with more liquid exit options.

Of course, there’s always an exception. And in the case of a slowed IPO market, a select slice of tech companies—AI-related companies—are far outperforming others. While not every tech startup has AI software or infrastructure as their core offering, most can benefit from using AI to revise their playbook and become more attractive to investors.

Unlocking Growth Potential with AI

While overall tech startup investment has slowed, the AI sector burns bright. This presents an opportunity for companies that strategically leverage AI, not just as a buzzword but as a tool for genuine growth and differentiation. Imagine a future where AI-powered insights unlock unprecedented efficiency, customer engagement and a paradigm shift in value creation. This isn’t just about weathering the current storm of reduced access to capital; it’s about emerging stronger, ready to lead the next wave of tech innovation.

Here's how to navigate the AI frontier and unlock its potential:

  1. Understand that data is the foundation of AI success. AI is powerful, but it’s not magic. It thrives on high-quality, interconnected data. Before diving into AI initiatives, companies must assess their data health. Is it structured in a way that AI can understand? Does it go beyond raw numbers to capture context and meaning—like customer sentiment alongside sales figures? Rethinking data infrastructure is often the crucial first step.
  1. Focus on amplifying strengths, not reinventing the wheel. The allure of AI can tempt companies into pursuing radical reinvention. However, a more effective strategy is to leverage AI to enhance existing strengths and address core customer needs. Why do customers choose your company? How can AI supercharge your value proposition? Consider Reddit’s strategic approach: They didn’t overhaul their platform before their 2024 IPO. Instead, they showcased the value of their vast online communities as fertile ground for AI development, leading to a remarkable first-day stock surge of 48 percent.

  2. Use AI as a customer-centric force multiplier. Companies with a deep understanding of their customer base are primed for AI success. By integrating AI into the very core of their product or service—the reason customers choose them—they can create a decisive competitive advantage based on delivering tangible customer value.

From Incremental Gains to Transformative Growth

This practical, customer-centric approach has the potential to help companies generate immediate growth while laying the foundation for future reinvention. By leveraging AI to optimize operations, deepen customer relationships, and redefine industry paradigms, late-state tech startups can not only survive but thrive in a dynamic market. The future belongs to those who embrace AI not as a destination but as a continuous journey of innovation and growth.

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Hong Ogle is the president of Bank of America Houston. Rodrigo Ortiz Gomez is a market executive in Bank of America’s Transformative Technology Banking Group as well as the national software banking lead for the Global Commercial Bank.