CALI, a wearable physical therapy device for those with vertigo, pitched at the annual event. Photo via getcalibalance.com

For the sixth year, the University of Houston and Rice University have joined forces to give their student entrepreneurs a program to thrive in. RED Labs and OwlSpark, the two universities' accelerator programs, just concluded their seventh class with a presentation from the companies.

Over the past 12 weeks, these 16 startups and their teams of entrepreneurs have worked on their company, developing it, learning how to fundraise for it, and engaging with all sorts of other valuable resources and mentors through the program.

"With an emphasis on experimentation and rapid iteration, we teach disciplined startup strategies that help (students) have an eye for reducing risks and increasing odds," says Kerri Smith, managing director of OwlSpark.

This summer's cohort was hosted out of Station Houston this year, but the two universities have worked together since year two of each of their programs.

"We're very proud of our partnership, because in most other cities, two universities like this would probably be rivals, but we're interested in camaraderie and collaboration in this cohort because they are the future generation of entrepreneurs of Houston," says Kelly McCormick, director of RED Labs. "We really think that this sets an example of how working together produces better results than working against each other."

Adren

While the invention of the EpiPen and other compact anaphylaxis solutions have saved lives, the products are still too large to be constantly available to those who need it. Adren's co-founders created a collapsible autoinjector that can be work as a wristband.

"A functioning drug is only one piece of the puzzle," says Jacob, co-founder of Adren. (He didn't state his last name.) "Medication is only effective if it is accessible to the patient."

The company plans to continue on and patent their product with hopes to enter the marketplace by the next few years.

CookLab

Anyone can find a recipe for anything with the tap of a few keys and the click of of few buttons, but once you add in dietary restrictions, things get tricky. Not to mention the fact that so many healthy recipes aren't even that good for you.

The team at CookLab wants to eliminate this unregulated and confusing corner of the internet. CookLab's first product is a web tool that can determine whether or not a recipe is healthy by the user dropping in the URL. This product is in beta right now.

Down the road, CookLab wants to create a tool for users to be able to submit a recipe they want to make, then have CookLab generate a modified version that follows any dietary needs.

INSU

In a state of emergency where electricity is out, the diabetic population is forced to gamble with their lives when it comes to keeping their insulin insulated and cool.

INSU has a solution. The startup has created a battery operated cooler that can keep insulin from spoiling for 30 days. The battery can be charged by wall outlet or even solar panel.

The company plans to market directly to consumers as well as make strategic partnerships with emergency and health organizations.

auggie

Merchandise lines at concerts are quite possibly the single-most buzzkill of any show. In the age of UberEats and order-ahead apps, auggie sees a solution.

While you're at a show, you can easily order your favorite merch items on the app and choose to have it set aside for pickup that day or even get it mailed to you. The app is live on some downloading stores.

LilySpec

The speculum OB/GYNs use on their patients hasn't changed in 150 years, and, while effective, can be uncomfortable to patients during use. But this doesn't have to be the case.

LilySpec is a speculum designed with the patient in mind. The device is silently deployed, silicon coated for comfort, and adjustable for all women.

The LilySpec team will finish its clinical product this year, and the company's medical partners here in Texas will be able to use it on patients.

Myze

How do you staff a team for an unpredictable job? Emergency rooms face this challenge every single shift. Too many staffers makes the establishment bleed money, while too few causes burnout and even sacrifices quality of care.

Myze is developing a software platform that can use artificial intelligence and predictive analytics to help ERs better staff their teams.

CALI

Those suffering from Vertigo feel like the whole world has turned upside down. CALI is a device that helps those people turn it right back around.

The wearable device allows for users to do balance exercises and claim back control of their own situation.

DASH Innovations

For those relying on a catheter, changing it out requires 150 monthly procedures on average. Each one is another opportunity for infection.

DASH Innovations has created UrinControl, a urethral valve for pediatric patients that can be installed once a month and operated with a remote to control the bladder.

Get-A-Grip

Holding onto a cup is something most everyone takes for granted. For arthritis or muscle damage patients, it's a daunting daily task.

Get-A-Grip is designed to distribute the weight of the cup along the grip and make it easier and more comfortable to hold. While originally designed with these patients in mind, the grip comes in four sizes, with the smallest being perfect for babies grabbing at bottles or small children holding cups.

Everest Security

Preparing for and preventing phishing email-originated data breaches is the new normal for companies, but it's impossible to prevent employees from accidentally opening suspicious emails without thinking.

While there are plenty software protection companies out there, Everest Security couples their software solution with education, a core component for the company.

KickedOC

There are 2 million homes supposedly dedicated for off-campus housing for students, but no one-stop shop to find them. KickedOC is attempting to be that one-stop shop and make it easier for students to find their semester homes.

With listings already up in Houston, the startup hopes to expand its platform to College Station and other Texas college towns next.

Mismo Minds

Creating a creative team can be difficult if you don't have the connections already. Mismo Minds is a platform for artists, videographers, directors, etc. to join forces with others who share their creative vision. It's a social networking tool, project management platform, and job board all rolled into one.

Sports Betz

Typically for sports betting, you have two options: Impersonal bets with large pools or friendly wagers that might not ever pay off. Sports Betz is a platform where the competitive gamblers can casually bet with friends and family — but the money is pulled up front.

CIND

Chivalry is not dead, argues CIND, a new dating app. The app allows for potential matches to introduce themselves with a gift — which range from $2 to $100. Though, the recipient doesn't just walk away with the cash. The money actually goes to the recipient's nonprofit of choice. Only after the donation is made can matches start chatting.

CIND (pronounced like "Cindy") is basically digital donation dating, and everyone wins.

PCATCopycat

The Pharmacy College Admission Test isn't easy — and preparation isn't cheap.

PCATCopycat puts the power back into the hands of students. The online course is only $200 — way cheaper and easier for future pharmacists to navigate.

Second Act

Second Act is the startup that isn't. The non-company started the program with the idea of matching retirees with short-term work at various startups with the thought being that they have a lot of experience and a lot of time on their hands. While a great idea in theory, Second Act hit some walls and the company and idea are no more. The team, however, has a bright future in Houston innovation at other startups and companies.

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$100M Houston VC fund launches to back technical founders

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A new venture capital fund has launched with an initial $100 million mission of supporting founders with innovative critical infrastructure solutions.

Fathom Fund, which is looking to build out a portfolio of advanced computing, material science, climate resilience, and aerospace startups, announced they've launched with an initial close of over $100 million. The fund is founded by longtime investors Managing Partners Paul Sheng and Eric Bielke.

"We believe recent technological advances have accelerated the pace of scientific discovery, increasing the pool of technology companies that can produce venture-scale returns," Sheng says in a news release.

According to the fund, it hopes to bridge the gap for early stage capital for physical innovations and "moonshot" projects.

“What’s lacking in venture is rigorous technical diligence at the early stages and a playbook to scale these innovations at the pace necessary to lead industries," Bielke adds. "With this launch, we are looking forward to supporting founders with some of the most disruptive and novel ideas.”

The founder duo will bring each of the career expertise to their future portfolio companies. Sheng spent decades at McKinsey & Co and was the firm's head of the Global Energy & Materials practice. Bielke is a former director at Temasek’s Emerging Technologies Fund.

Houston is the 4th best U.S. city for Black professionals, report finds

Black History Month

In acknowledgement of Black History Month 2024, a new report compiled by Black employees at online rental marketplace Apartment List has ranked Houston the No. 4 best U.S. city for Black professionals.

Apartment List reviewed 76 cities across four major categories to determine the rankings: community and representation; economic opportunity; housing opportunity; and business environment.

Houston earned a score of 63.01 out of a total 100 points, making it the second-highest-ranked city in Texas for Black professionals, behind San Antonio (No. 3).

The city earned top-10 rankings in three out of the four main categories:

  • No. 3 – Business environment
  • No. 4 – Community and representation
  • No. 10 – Economic opportunity
  • No. 21 – Housing opportunity

Houston is commended for its strong Black business environment and economy, but there is some room for improvement when it comes to housing. Similarly to Apartment List's 2022 report – which also placed Houston at No. 4 – a little less than half (44 percent) of all Black Houston households are spending over 30 percent of their income on housing, which has increased two percent since 2019.

Houston has a larger Black population than San Antonio, at 19 percent, but its Black population share is overall lower than other cities in the top 10.

"Furthermore, the community is well-represented in some critical occupations: 20 percent of teachers are Black, as are 21 percent of doctors," the report said. "Houston is also home to the HBCU Texas Southern University, helping a job market when the median Black income is several thousand dollars above average."

Houston also has the highest rate of Black-owned businesses in the entire state, at 18 percent.

"From the Mitochondria Gallery to Ten Skyncare and Wisdom’s Vegan Bakery, Houston has it all!" the report said.

Here's how Houston stacked up in other metrics:

  • Black homeownership: 42 percent
  • Black lawyers: 14 percent
  • Black managers: 14 percent

Elsewhere in Texas
Texas cities dominated the overall top 10. San Antonio ranked just above Houston, with Dallas (No. 6) and Austin (No. 7) not too far behind.

San Antonio came in less than 2.5 points ahead of Houston with a total score of 65.44 points. The report praised San Antonio's scores across its economic opportunity (No. 2), housing opportunity (No. 7), and community and representation (No. 10). The city ranked No. 20 for its Black business environment.

But like Houston, San Antonio also fell behind in its Black homeownership rates, according to the study.

"While the Black homeownership rate is higher than average at 44 percent, the homeownership gap (Black homeownership rate - non-Black homeownership rate) quite low at -19 percent," the report's author wrote. "Perhaps this could be explained by San Antonio’s overall homeownership rate, which is also lower than the state’s average. Additionally, the lower homeownership gap could explain the cost burden rate also being lower than average at 41 percent."

The top 10 cities for Black professionals are:

  • No. 1 – Washington, D.C.
  • No. 2 – Atlanta, Georgia
  • No. 3 – San Antonio, Texas
  • No. 4 – Houston, Texas
  • No. 5 – Palm Bay, Florida
  • No. 6 – Dallas, Texas
  • No. 7 – Austin, Texas
  • No. 8 – Colorado Springs, Colorado
  • No. 9 – Lakeland, Florida
  • No. 10 – Charlotte, North Carolina
The full report and its methodology can be found on apartmentlist.com.

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This article originally ran on CultureMap.

Houston expert: Can Houston replicate and surpass the success of Silicon Valley?

guest column

Anyone who knows me knows, as a Houston Startup Founder, I often muse about the still developing potential for startups in Houston, especially considering the amount of industry here, subject matter expertise, capital, and size.

For example, Houston is No. 2 in the country for Fortune 500 Companies — with 26 Bayou City companies on the list — behind only NYC, which has 47 ranked corporations, according to Fortune.

Considering layoffs, fund closings, and down rounds, things aren’t all that peachy in San Francisco for the first time in a long time, and despite being a Berkeley native, I’m rooting for Houston now that I’m a transplant.

Let’s start by looking at some stats.

While we’re not No. 1 in all areas, I believe we have the building blocks to be a major player in startups, and in tech (and not just energy and space tech). How? If the best predictor of future success is history, why not use the template of the GOAT of all startup cities: San Francisco and YCombinator. Sorry fellow founders – you’ve heard me talk about this repeatedly.

YCombinator is considered the GOAT of Startup Accelerators/Incubators based on:

  1. The Startup success rate: I’ve heard it’s as high as 75 percent (vs. the national average of 5 to 10 percent) Arc Search says 50 percent of YC Co’s fail within 12 years – not shabby.
  2. Their startup-to-unicorn ratio: 5 to 7 percent of YC startups become unicorns depending on the source — according to an Arc Search search (if you haven’t tried Arc Search do – super cool).
  3. Their network.

YC also parlayed that success into a "YC Startup School" offering:

  1. Free weekly lessons by YC partners — sometimes featuring unicorn alumni
  2. A document and video Library (YC SAFE, etc)
  3. Startup perks for students (AWS cloud credits, etc.)
  4. YC co-founder matching to help founders meet co-founders

Finally, there’s the over $80 billion in returns, according to Arc search, they’ve generated since their 2005 inception with a total of 4,000 companies in their portfolio at over $600 billion in value. So GOAT? Well just for perspective there were a jaw-dropping 18,000 startups in startup school the year I participated – so GOAT indeed.

So how do they do it? Based on anecdotal evidence, their winning formula is said to be the following well-oiled process:

  1. Bring over 282 startups (the number in last cohort) to San Francisco for 90 days to prototype, refine the product, and land on the go-to-market strategy. This includes a pre-seed YC SAFE investment of a phased $500,000 commitment for a fixed min 7 percent of equity, plus more equity at the next round’s valuation, according to YC.
  2. Over 50 percent of the latest cohort were idea stage and heavily AI focused.
  3. Traction day: inter-portfolio traction the company. YC has over 4,000 portfolio companies who can and do sign up for each other’s companies products because “they’re told to."
  4. Get beta testers and test from YC portfolio companies and YC network.
  5. If they see the traction scales to a massively scalable business, they lead the seed round and get this: schedule and attend the VC meetings with the founders.
  6. They create a "fear of missing out" mentality on Sand Hill Road as they casually mention who they’re meeting with next.
  7. They block competitors in the sector by getting the top VC’s to co-invest with then in the seed so competitors are locked out of the A list VC funding market, who then are up against the most well-funded and buzzed about players in the space.

If what I've seen is true, within a six-month period a startup idea is prototyped, tested, pivoted, launched, tractioned, seeded, and juiced for scale with people who can ‘make’ the company all in their corner, if not already on their board.

So how on earth can Houston best this?

  1. We have a massive amount of businesses — around 200,000 — and people — an estimated 7.3 million and growing.
  2. We have capital in search of an identity beyond oil.
  3. Our Fortune 500 companies that are hiring consultants for things that startups here that can do for free, quicker, and for a fraction of the extended cost.
  4. We have a growing base of tech talent for potential machine learning and artificial intelligence talent
  5. A sudden shot at the increasingly laid off big tech engineers.
  6. We have more accelerators and incubators.

What do we need to pull it off?

  1. An organized well-oiled YC-like process
  2. An inter-Houston traction process
  3. An "Adopt a Startup" program where local companies are willing to beta test and iterate with emerging startup products
  4. We have more accelerators but the cohorts are small — average five to 10 per cohort.
  5. Strategic pre-seed funding, possibly with corporate partners (who can make the company by being a client) and who de-risk the investment.
  6. Companies here to use Houston startup’s products first when they’re launched.
  7. A forum to match companies’ projects or labs groups etc., to startups who can solve them.
  8. A process in place to pull all these pieces together in an organized, structured sequence.

There is one thing missing in the list: there has to be an entity or a person who wants to make this happen. Someone who sees all the pieces, and has the desire, energy and clout to make it happen; and we all know this is the hardest part. And so for now, our hopes of besting YC may be up in the air as well.

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Jo Clark is the founder of Circle.ooo, a Houston-based tech startup that's streamlining events management.