A New York-based nonprofit that provides tech training has announced its opening a location in the Ion. Photo courtesy of the Ion

Houstonians can now apply to a new, tuition-free program at the Ion to boost their tech skills and knowledge.

Earlier this year the Ion announced New York-based Per Scholas as its workforce development partner. And starting October, Per Scholas will launch its 12- to 15- week technology skills training courses at the innovation hub, the Ion announced this week.

The new operation, known as Per Scholas Houston, is backed by support from from BlackRock Inc. and Comcast NBCUniversal.

Per Scholas Houston will first introduce the nonprofit's IT Support course. The program will give students an opportunity to earn a Google IT Support Professional Certificate and the CompTIA A+ certification. Click here to apply.

“Per Scholas commends the vision and commitment of the City of Houston, Ion, Rice University, and so many others, to catalyze change, grow ideas and innovation, and drive impact. We are thrilled that Per Scholas Houston is now part of the effort,” Plinio Ayala, president and CEO of Per Scholas, says in a statement. “With tremendous investment from Ion, BlackRock, Comcast, our proven skills training will develop technologists to power Houston’s workforce today – and tomorrow–creating a more inclusive and equitable economy. We can’t wait to get started.”

According to the company, more than 80 percent of those who complete Per Scholas training programs find full-time employment within a year of graduating, and about 85 percent of Per Scholas graduates are people of color. Per Scholas has 20 locations in the U.S., including a location in downtown Dallas.

Applicants must be 18 or older to apply and have earned a high school diploma or equivalent and be a U.S. citizen or authorized to work in the U.S., according to Per Scholas's website. They must pass an assessments review before beginning coursework, meet the nonprofit's learner pre-training income criteria and be available to attend classes Monday through Friday from 9 a.m. to 4 p.m.

In early May, The Ion announced 10 new tenants that were either relocating or expanding their presence in Houston, bringing the total space leased to 86 percent. Later that month, it added corporate giants Occidental, United Airlines Ventures and Woodside Energy as partners.
The Ion has implemented a new program that will spark workforce development in Houston. Photo courtesy of the Ion

Growing Houston innovation hub announces new workforce partnership

doing the work

Houston's The Ion announced this week that it will partner with New York-based Per Scholas as its new workforce development partner.

The partnership is part of the Ion District's Community Benefits Agreement (CBA) that was approved by Houston City Council in late 2021. The $15.3 million agreement aimed to ensure that the 12-block innovation hub developed by Rice University, which is home to the Ion, would benefit all Houstonians, expanding tech jobs while also committing to preserving affordable housing and creating opportunities for minority- and women-owned businesses.

Per Scholas was founded in 1995 and works to advance economic mobility for individuals through its tuition-free training programs, which focus on in-demand tech skills. According to the company, more than 80 percent of those who complete Per Scholas training programs find full-time employment within a year of graduating, and about 85 percent of Per Scholas graduates are people of color.

“Per Scholas is thrilled to join the Ion District and offer our tuition-free tech skills training in Houston,” Plinio Ayala, president and CEO of Per Scholas, said in a statement. “There is such synergy in our approach to innovation and equity. I’m confident that together, we’ll increase opportunity and unlock potential for both individuals and companies that call Houston home."

Per Scholas currently has a campus in downtown Dallas and virtual operations in Houston. It operates out of 20 locations in the U.S.

In addition to announcing the new partnership, the Ion District also released an update on its CBA one year after its launch.

“We’re committed to making Ion District and Ion a catalyst for opportunity, not just for the tech community but city-wide,” Sam Dike, who oversees the CBA’s implementation, said in a statement. “We are proud of the progress thus far. It’s a testament to the community stakeholders who came together to recommend the greatest areas of impact and need. However, this is just the beginning.”

According to the announcement, Ion District is now home to more than 300 businesses. In the next year, the district aims to continue to implement the inclusive hiring, community building, housing affordability and other practices outlined in the CBA.

The organization outlined a few accomplishments in the statement, including:

  • Escrowing $5 million at Unity National Bank, the only certified Minority Depository Institution (MDI) in Texas
  • Contracting opportunities for Ion District Garage, worth $16.9 million, to 19 minority- and women-owned businesses
  • Investing in women and minority tech accelerator and innovation programs, including three DivInc accelerator cohorts
  • Commencing first year of funding for selected housing counseling providers which were: Fifth Ward Community Redevelopment Corporation, Houston Area Urban League and Tejano Center for Community Concerns, to serve the Third Ward, Kashmere Gardens, and Magnolia Park neighborhoods
  • Opening multiple local restaurants at the Ion and in the Ion District that are owned and operated by minority and women chefs and operators
  • Selecting a consulting firm to recommend strategic pathways to achieve MWBE objectives
  • Conducting 10 public outreach events with over 500 minority- and women-owned firms attending
  • Hosting over 130 community-focused events, including Activation Festival, BlackStreet, and additional monthly programming and events accessible to the community

Earlier this month The Ion announced 10 new tenants that were either relocating or expanding their presence in Houston, bringing the total space leased to 86 percent, according to a news release.

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CultureMap Emails are Awesome

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.

New Houston venture studio emerges to target early-stage hardtech, energy transition startups

funding the future

The way Doug Lee looks at it, there are two areas within the energy transition attracting capital. With his new venture studio, he hopes to target an often overlooked area that's critical for driving forward net-zero goals.

Lee describes investment activity taking place in the digital and software world — early stage technology that's looking to make the industry smarter. But, on the other end of the spectrum, investment activity can be found on massive infrastructure projects.

While both areas need funding, Lee has started his new venture studio, Flathead Forge, to target early-stage hardtech technologies.

“We are really getting at the early stage companies that are trying to develop technologies at the intersection of legacy industries that we believe can become more sustainable and the energy transition — where we are going. It’s not an ‘if’ or ‘or’ — we believe these things intersect,” he tells EnergyCapital.

Specifically, Lee's expertise is within the water and industrial gas space. For around 15 years, he's made investments in this area, which he describes as crucial to the energy transition.

“Almost every energy transition technology that you can point to has some critical dependency on water or gas,” he says. “We believe that if we don’t solve for those things, the other projects won’t survive.”

Lee, and his brother, Dave, are evolving their family office to adopt a venture studio model. They also sold off Azoto Energy, a Canadian oilfield nitrogen cryogenic services business, in December.

“We ourselves are going through a transition like our energy is going through a transition,” he says. “We are transitioning into a single family office into a venture studio. By doing so, we want to focus all of our access and resources into this focus.”

At this point, Flathead Forge has seven portfolio companies and around 15 corporations they are working with to identify their needs and potential opportunities. Lee says he's gearing up to secure a $100 million fund.

Flathead also has 40 advisers and mentors, which Lee calls sherpas — a nod to the Flathead Valley region in Montana, which inspired the firm's name.

“We’re going to help you carry up, we’re going to tie ourselves to the same rope as you, and if you fall off the mountain, we’re falling off with you,” Lee says of his hands-on approach, which he says sets Flathead apart from other studios.

Another thing that's differentiating Flathead Forge from its competition — it's dedication to giving back.

“We’ve set aside a quarter of our carried interest for scholarships and grants,” Lee says.

The funds will go to scholarships for future engineers interested in the energy transition, as well as grants for researchers studying high-potential technologies.

“We’re putting our own money where our mouth is,” Lee says of his thesis for Flathead Forge.

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This article originally ran on EnergyCapital.