From credit to crowdfunding, startups have more cash flow options now than ever before. Getty Images

When it comes to raising money for your startup, there's plenty of fish in the sea, however, navigating the rough waters can be difficult.

Houston Community College put on a Small Business Summit on June 13 and gathered a group of financial professionals to represent several types of funding options, from venture capital to microlending.

Crowdfunding

The crowdfunding game has changed, says Rhian Davies, business development manager for LetsLaunch, an equity-based crowdfunding tool.

While most people think that donation-based crowdfunding — like GoFundMe or Kickstarter that give you the product or thank-you gift when you give — are the only options, that's not the case. And, investing using these platforms doesn't mean anything to you if the company sees success.

"If it makes it big, you're not going to get anything back," says Davies of these types of platforms.

But the JOBS Act in 2012 changed everything. Now, companies fundraising on crowdfunding sites can trade in equity for funds.

"Previously, investments were reserved for wealthy individuals — accredited individuals — who had a certain amount of money could invest in businesses," says Davies. "Equity crowdfunding opened that up."

With crowdfunding, you can also run other types of fundraising efforts at the same time, spreading out your options.

"It allows (the community) to invest in your business and it allows you to pass the hat and have people come on board," Davies says.

The other benefit to using the LetsLaunch platform is the team assists the startups every step of the way, from uploading a digital pitch deck onto the LetsLaunch platform and preparing paperwork to filing with the SEC.

However, one of the major challenges for startups is deciding what their funding goal is. Davies says you do have to hit a certain funding goal to be able to take that cash home, and for LetsLaunch, they look for that figure to be $10,000 minimum. Anything less than that isn't worth it — from both the LetsLaunch and the startup's perspective. The maximum value for equity crowdfunding is capped at just over $1 million — per the SEC.

Venture capital

VC funding is where most people's minds go when it comes to startup funding. And this type of funding is in an evolution phase too, says Remington Tonar, managing director at The Cannon Houston. While traditional VCs want a three-times return in five to seven years, some firms have more on their minds then just the money.

"There's a new phenomenon in venture where a lot of early stage investors and angel investors are looking at social impact investing," Tonar says. "They want to invest in women- or minority-owned businesses or companies that have a sustainability or social impact component to them. For those investors, the return demands are much more flexible."

Not only are they more flexible on returns, but VCs want more hands-on roles at the companies they invest in. Tonar says venture capitalists don't want to give passive capital.

Another way VCs differ from other types of funding is they are looking for something different in the companies they invest in — they want the next big thing.

"What venture capitalists really look for is disruptive business that are creating value in news ways," Tonar says.

And investments can be industry agnostic — VCs aren't reserved to just tech and computing industries.

"Most people would not have thought the hotel industry was a great industry for venture capital until Airbnb came along," says Tonar. "Most people would not have thought that taxis were a great industry for venture capital until Uber came along."

Fundraising through VC firms is a very personal process — they are investing in you, the founder, just as much as they are investing in the company or idea, Tonar says. You can have a horrible credit history or have declared bankrupt in the past, and while they will find that out, it's not a dealbreaker like it would be for a bank or traditional loan process.

"But if the investor feels that the idea has value and can create value and meets their risk profile, they will look at your startup and go through their due diligence process."

Microlending

A new trend in funding options is microlending — a type of loan process that caps out at $50,000. Lisa Riley is Houston market president for LiftFund, one of the largest microlenders in the United States.

Since the amount is smaller, the risk is smaller too. The type of customer LiftFund looks for is the person or company that's been denied by other banks.

"It's not always because of something negative with the customer," Riley says. "There are certain industries where it's very difficult to get finance right now."

Just like the trend in VCs, these types of lenders want to be hands on too to help secure success and a return.

"The last thing we want to be is another monthly obligation or a debt — the noose around someone's neck suffocating their small business," Riley says. "We want to make sure and walk with you and hold your hand as long as you'll hold mine so that when we give you your loan it's the right amount for your business and the right time."

Traditional loans and factoring

Of course, conventional loans is still an option, as is factoring — the process in which a business sells its accounts receivables to a third-party entity, called a factor.

Peter Ellen, senior vice president at Amegy Bank, explains the process as being pretty traditional. His bank wants to see a secure and profitable business on trach for growth.

"Typically, we look for a business that's been established for two years, that has generated a profit, and can show a clear path of repayment," Ellen says.

Again, like other funding options, Ellen says a relationship with the company is important.

"That's really what we look to do, is to form a relationship at an early stage with a company, really understand what they do, and help assist in the growth and success of their company," he says.

SBA loans

SBA loans are another lending option for startups to consider, Aziz Rahim, senior vice president at Wallis Bank, explains.

Different from a traditional loan process, SBA loans are guaranteed by the Small Business Association up to 85 percent, which lowers the risk for then lending partner.

Other benefits to SBA loans are lower down payments, generous term lengths, and caps on interest rates.

"The good thing about SBA loans compared to conventional loans is SBA loans do not balloon," Rahim says.

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Houston femtech co. debuts first holistic wellness suite following rebrand

work perks

Houston-based femtech company Work&, previously Work&Mother, debuted new lactation suites and its first employee wellness space at MetroNational’s Memorial City Plazas this month.

The 1,457-square-foot Work& space features three lactation rooms and five wellness suites, the latter of which are intended to offer employees a private space and time for telehealth appointments, meditation, prayer, and other needs. The hybrid space, designed by Houston-based Inventure, represents Work&'s shift to offer an array of holistic health and wellness solutions to landlords for tenants.

Work& rebranded from Work&Mother earlier this year. The company was previously focused on outfitting commercial buildings with lactation accommodations for working parents, equipped with a hospital-grade pump, milk storage bags, sanitizing wipes, and other supplies. While Work& will still offer these services through its Work&Mother branch, the addition of its Work&Wellbeing arm allows the company to also "address the broader wellness needs of all employees," according to an announcement made on LinkedIn.

"We are thrilled to bring Work&Mother and Work&Wellbeing to The Plazas," Jules Lairson, co-founder and COO of Work&, said in a news release. “This partnership brings every stakeholder together – employees, employers and landlords all benefit from this kind of forward-thinking tenant experience. We are excited to launch our Work&Wellbeing concept with MetroNational to ensure that all employees have their wellness needs met with private, clean, quiet spaces for use during the workday.”

The new space is available to all tenants across Memorial City Plazas, comprised of three office towers totaling 1 million square feet of Class A office space. In addition to the lactation and wellness suites, the space also features custom banquettes, private lounge seating and phone booths.

“As a family-owned and operated company, MetroNational is deeply committed to fostering a workplace that supports both productivity and the well-being of all our tenants,” Anne Marie Ratliff, vice president of asset management for MetroNational, added in the release. “Partnering with Work& reinforces this commitment, enhancing our workplace experience and setting a new standard for tenant amenities.”

Work& has five Houston locations and several others in major metros, including New York, Austin, D.C., Boston, Chicago, San Francisco, and Miami. According to its website, the company will also introduce a Work&Wellbeing suite in New York.

Abbey Donnell spoke with InnovationMap on the Houston Innovators Podcast about why she founded the company and its plans for growth in 2021. Click here to learn more.

9 Houston universities make U.S. News' list of best grad schools 2025

Top of the class

Nine Houston universities have climbed through the ranks in U.S. News & World Report’s recently released report of the best graduate schools nationwide for 2025. Several graduate programs also appeared among the top 10 in a Texas-wide comparison.

U.S. News published its annual national "Best Graduate Schools" rankings on April 8. They look at several programs including business, education, engineering, fine arts, health, and many others.

For the 2025 report, the publication added new Ph.D. social sciences and humanities program rankings in English, history, political science and sociology for the first time since 2021. U.S. News also ranked graduate economics and psychology programs in the social sciences and the humanities for the first time since 2022.

Among the newcomers are Houston Christian University and Texas Southern University.

Here's how the nine local schools ranked, statewide and nationally, and how they compared with last year's national ranking:

University of Houston

  • No. 4 best graduate engineering school in Texas; No. 72 nationally
  • No. 5 best graduate education school in Texas; No. 81 nationally (down from No. 63 last year)
  • No. 5 best law school in Texas; No. 63 nationally (up from No. 68)

The University of Houston Law Center has the No. 9 best health law program in the nation, and ranked No. 15 for its legal writing program. The university's part-time MBA program ranked No. 38 nationally

University of Houston, Clear Lake

  • No. 12 best graduate education school in Texas; No. 166 nationally

The Clear Lake branch of the University of Houston tied for No. 166 for its part-time MBA program.

Houston Christian University

  • No. 21 best graduate education school in Texas; tied for No. 234-258 nationally

University of Texas Health Science Center

  • No. 1 best Doctor of Nursing Practice program in Texas; No. 33 nationally (up from No. 45)
  • No. 2 best graduate nursing program in Texas; No. 41 nationally (down from No. 31)

Prairie View A&M University, Northwest Houston Center

  • No. 5 best graduate nursing program in Texas; No. 104 nationally (up from No. 117)
  • No. 7 best Doctor of Nursing Practice program in Texas; tied for No. 143-158 nationally

Rice University

  • No. 2 best graduate business school in Texas; No. 29 nationally (unchanged)
  • No. 3 best graduate engineering school in Texas; No. 26 nationally

Rice's entrepreneurship program is the 9th best in the country, and its part-time MBA program ranked 13th nationally. The George R. Brown School of Engineering earned nods for its No. 10-ranking biomedical engineering and environmental engineering programs.

University of Texas Medical Branch, Galveston

  • No. 5 best Doctor of Nursing Practice program in Texas; No. 76 nationally

South Texas College of Law Houston

  • No. 7 best law school in Texas; No. 138 nationally

Out of the 11 law programs ranked by U.S. News, the South Texas College of Law performed the best for its trial advocacy (No. 12), dispute resolution law (No. 23), and legal writing (No. 51) programs.

Texas Southern University

  • No. 10 best law school in Texas; tied for No. 178-195 nationally

More specifically, TSU has the 64th best trial advocacy law program in the nation, U.S. News said.

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This article originally appeared on our sister site, CultureMap.com.

VC firm partners with Rice Nexus to open first global office

strategic partnership

Luxembourg-based venture capital and advisory firm MoreThan Capital (MTC) has established its first global office at the new Rice Nexus in Houston’s Ion District as part of a strategic partnership aimed at fostering entrepreneurship and growing Houston as an innovation hub.

MTC has committed to offering its “time, mentorship, industry expertise and global connections” to Rice Nexus. The state-of-the-art Rice Nexus, which opened earlier this year, aims to support and provide resources for ventures that are looking to scale and have "artificial intelligence (AI) as a central pillar of its innovation strategy," according to a statement from Rice.

“The Rice Nexus is a launchpad for world-changing ideas, and this partnership with MoreThan Capital is a key step in realizing that vision,” Sanjoy Paul, executive director of the Rice Nexus, said in a news release. “By combining Rice’s research and entrepreneurial talent with MTC’s global network and mentorship, we are creating an unparalleled engine for innovation that starts in Houston and reaches the world.”

MoreThan Capital has over 100 limited partners, including senior executives and professional investors, based in more than 35 countries.

“Establishing our first global office at the Rice Nexus within the Ion District is a significant milestone for MoreThan Capital,” Guillermo Ruiz, general partner of MoreThan Capital, said in a news release. “We are dedicated to partnering with top-tier academic institutions like Rice University and aligning with organizations that share our core values of trust, engagement and impact.”

The announcement comes just a few weeks after Rice Nexus announced its partnership with Google Public Sector to launch the new Rice AI Venture Accelerator, or RAVA.