Why Houston startups should consider a remote workforce

Houston voices

A remote workforce has a lot to offer Houston startups, according to the University of Houston. Miguel Tovar/University of Houston

There are myriad reasons why it behooves a startup to hire remote workers. This article takes a look at the benefits of expanding your hiring pool.

Remote work by the numbers

According to the State of Remote Work 2017 report, over 60 percent of engineers working in product development work remotely about once a week. That’s 20 percent more than average. The report also sheds light on why startup settings are particularly ideal for working remotely.

The report found that small businesses are twice as likely to hire remote employees as bigger, more corporately structured companies. Startups have an advantage because of their penchant for innovation, their hiring needs, and their willingness to be flexible.

Here are three reasons why startups are idea for working remotely.

Remote work maximizes your chances for acquiring great talent. Once you remove geographical boundaries from your talent search, you will see a wider range of talent from which to cull. Chew on this: what if your ideal lead engineer is in Boise, Idaho, rather than Houston, TX where your startup is based? Removing those geographic limitations means you can hire this person!

The State of Remote Work report showed that fully remote businesses hire employees 30 percent faster than big companies. It would be wise to take advantage of that and cut down on the time it takes for a hire to be processed.

Remote controlling workflow

Diversity of perspective. When you erase geographic limitations, you will get people from all over the country, and that means people with different views. People with different ways of looking at things. Different opinions and thought processes. In fact, study from the London Annual Business Survey discovered a connection between diversity and innovation where more culturally diverse teams were more likely to come up with new products than less diverse teams.

Building trust. It’s quite common for employers to worry about a remote employee’s productivity. They’re hundreds, sometimes thousands, of miles away. It’s only natural to fear that they’re at the amusement park on the company dime. But is the problem really distance? Maybe the problem is the perceived lack of trust. Have faith in your hiring process and ultimate decision. Startup companies have too much to worry about to be concerned with babysitting an employee. Let your team’s work and results do the talking, and put your focus on other things.

Work-life balance. One of the biggest reasons an employee would want to work remotely to begin with is that it allows them to balance their work with their personal life. In fact, The State of Remote Work report revealed that over half of all remote workers chose remote work for precisely that reason. This helps your startup because happier workers work better, and that positivity trickles down and invigorates the whole.

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This article originally appeared on the University of Houston's The Big Idea. Rene Cantu was the writer and editor at UH Division of Research.

Here are some reminders of how to serve up a home-run of a pitch to potential investors. Miguel Tovar/University of Houston

Pitch perfect: What investors are looking for, according to Houston research

houston voices

Pitching to a venture capitalist is not only the most challenging part of building a startup, it’s also the most important. You can have the next pet rock idea, but nobody will ever experience it and you’ll never make a dime if the genius of this product cannot be expressed in an investor pitch. Okay, so pet rock isn’t the best example.

Let’s say you have a product that gets rid of stretch marks overnight. Great idea, right? Of course. But if you’re in front of an investor and they ask you how your product works, and you can’t answer them, your idea will forever remain just that: an idea. It’ll never manifest itself materially, which is your goal.

Did you know that the average venture capitalist holds around 500 in-person meetings per year? Further, did you know that only one in every 10 startups will make it past the first meeting?

With so many meetings with startup founders, you better believe that investors are virtually looking for reasons to pass on you and your cordless extension cord. Or whatever fakakta contraption you’ve developed in your garage.

Well, with so much importance placed on first impressions, here are some of the most important things investors look for and notice when you pitch to them:

Value proposition

This is what separates you from the pack. This is what makes your startup a standout. A value proposition shows an investor your company’s competitive advantage. If you can explain to your potential investor why it would be their folly if they invested in a competitor over your startup, then you’ll be that much closer to rolling out your product to market. Investors want to see a product or service that is unique because that means less competition, and less risk involved.

Entrepreneurship

Sure, you might be a brilliant scientist. You may have developed nanotechnology that eviscerates dirt and bacteria so you don’t have to shower anymore. But have you put together a team that can make your company a successful business? Do you have team members with experience in whatever it is your startup does? Do you have people with credibility congruent with your startup? Your pitch is a way for investors to find these things out. If you can show them that your team has experience, passion, insightfulness, and expertise, investors will feel much better about taking a chance on you.

Confidence is key

Investors can tell if a founder is confident, but not overconfident about how far they’ve come and how far they know they can go. During a pitch, investors can tell if your team is a cohesive unit or parts of a fractured whole.

Anatomy of an investor pitch

Your potential investor will notice if your pitch is structured well. He or she will take not of whether or not your pitch is designed well. They’ll ask themselves if it’s authentic. Does it cover business metrics? Is it concise and to the point? Is the founder communicating something complex in a simple way? Doing so shows absolute understanding and a total grasp of your product and the science behind it, plus the business aspect of it.


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This article originally appeared on the University of Houston's The Big Idea. Rene Cantu was the writer and editor at UH Division of Research.

In these highly divisive times, it can be a struggle to curb political discussions in the workplace. Miguel Tovar/University of Houston

How Houston companies big and small should approach politics in the workplace

Houston voices

Politics has always managed to find its way into the workplace. Casually popping up in conversation here and there. Usually reserved for the water cooler. It always managed to seep through the cracks like a gentle breeze. But, what was once just a breeze, has now become a tsunami.

Politics in the workplace doesn't just casually pop up anymore. In many respects, it has consumed it. According to Harvard Business Review writer Rebecca Knight, companies themselves are now taking political stances. With the advent of social media, political grandstanding is more prevalent and even encouraged in the workplace in many places, than ever before.

The problem is obvious. Few things are as divisive as politics. With emotions often running at a fever pitch, you're bound to see tension and friction in the workplace. Once it starts to disrupt business and the flow of work, it's time to rethink your company's approach to political discourse on the boss's dime.

Establish a policy for politics in the workplace

You have a right to free speech, even in the workplace. Read that again. Because it's completely WRONG.

You don't have a right to free speech in most workplaces. A private employer can and usually does establish a set of rules for politics in the workplace. If you're an employer and you don't want to completely ban political discussion, you can still establish policies to prevent the display of political support in the office. The golden rule here is to stay neutral. Don't highlight a specific political view or party or candidate over another.

"Talking politics can be tricky, but, like many things it's an unavoidable part of the workplace. Hold strong, the presidential race will be over (soon), and everyone will be back to talking shop (at least until inauguration)," said Lynze Wardle Lenio, in her article for The Muse.

Handling complaints

This depends on your particular company's policy on politics. Does your company prohibit all conversations about politics? Can your employees talk politics on lunch breaks? If someone is in violation of your policy, the first action should be to confront them privately and remind them of the policy.

"If your policy is more lax, you might want to encourage the complainant to respectfully ask the person engaged in political talk to take their conversation somewhere else," said Macy Bayern of TechRepublic.

"Never discipline an employee for having a different political opinion from another employee. The discipline should only come within the framework of the company's policy," she continued. Are they making someone uncomfortable? Are they wasting company time? Creating workplace hostility? These are all grounds for serious reprimanding.

Handling harassment

Now we're venturing into more serious territory. It's one thing to have complaints about people talking about an election out in the open. It's another to have complaints that someone was attacked for their political beliefs. "You're the employer. You have a responsibility to keep your employees safe above all else. That means protecting them from bullying," Bayern expressed.

This is a situation where you should be more firm in your reprimanding. Although it's not illegal per se, since political leanings aren't a protected class, you still want to nip this in the bud before it compromises the integrity of the entire office. The last thing you want is for employee morale to dip because of bullying. If allowed to go unpunished, this could easily spill over into bullying because of race, sex or religion. Then you have a legal problem.

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This article originally appeared on the University of Houston's The Big Idea. Rene Cantu, the author of this piece, is the writer and editor at UH Division of Research.

Reports find that more and more tech companies are leaving the bustling Silicon Valley. But where exactly are they going? Miguel Tovar/University of Houston

If Silicon Valley is experiencing a tech exodus, what does that mean for growing startup hubs like Houston?

houston voices

It started with prunes. Long before Silicon Valley was the innovation capital of the world, it was a giant valley of fruit trees and verdant hills. The primary crop in the then called Santa Clara Valley was the French plum, which was sun-dried to turn into the valley's most popular export and métier: prunes.

By the late 19th century, the Industrial Revolution had produced myriad millionaires, billionaires by the boatload and tons of tycoons. Among them was Leland Stanford, a railroad king. Stanford owned an 8,100-acre ranch in Santa Clara Valley near Palo Alto. That's where he founded and established Stanford University. It was also here that the region transformed into the valley of technology known today as Silicon Valley.

In 1925, Stanford alum Frederick Terman, considered the father of Silicon Valley, returned to teach radio engineering. Over the next decade, Terman noticed something quite concerning. He recognized that Stanford produced elite, highly-educated grads who continually opted to leave town for jobs in New York City. Terman expressed his desire for Stanford alumni to stay in the valley to grow the region's business sector and feed the local economy. The first company to heed this advice was Hewlett-Packard.

Terman encouraged Stanford grads William Hewlett and David Packard to partner up and thus, we saw the first ever "garage-startup" born. Anon this historic partnership, more alumni and faculty at Stanford began to found their own companies in the valley. Soon, a massive network of companies was formed, bound by their shared connection with the university. Terman had essentially built a pipeline through which Stanford grads poured into the valley, a process that is still in full swing today.

In a sense, Silicon Valley was the first academic incubator. One that is stronger than ever today. Or is it?

The great tech-xodus?

According to The Economist, "[In 2018,] more Americans left the county of San Francisco than arrived. According to a recent survey, 46 percent of respondents say they plan to leave the Bay Area in the next few years, up from 34 percent in 2016. So many startups are branching out into new places that the trend has a name, 'Off Silicon Valleying.'"

Business Insider's Melia Robinson writes, "Silicon Valley is on the brink of an exodus" and that "the tech elite are abandoning Silicon Valley in droves."

More tellingly, Kevin Roose wrote in his New York Times article "Silicon Valley Is Over, Says Silicon Valley," that "This isn't a full-blown exodus yet. But in the last three months of 2017, San Francisco lost more residents to outward migration than any other city in the country."

Roose followed 12 venture capitalists on a bus trip throughout the heartland. They were looking for hot startups in lesser-visited areas of America. The venture capitalists were in awe of how inexpensive the home prices were in the Midwest compared to the Bay Area. To add to this, a public-relations firm named Edelman conducted a survey of 500 residents in the Bay Area and found that almost half of all Bay Area residents "said they would consider leaving California because of the cost of living."

Moreover, Eric Rosenbaum wrote in his CNBC article "Silicon Valley Edged Out: Google Employees Aren't the Only Ones Walking Away From Elite Tech Headquarters," that "Silicon Valley is not about to lose its dominant position as the home of billion-dollar technology start-ups and hub for top talent, but there are a growing number of reasons why more workers and new companies are choosing other cities, far from San Francisco."

The common theme in most of the aforementioned articles is that the reason behind this mini-exodus is the high cost of living in the Bay Area. The Economist states that "young startups pay at least four times more to operate in the Bay Area than in most other American cities."

Aside from the cost of living, one often-cited reason why entrepreneurs leave the Valley is groupthink. Again, The Economist sheds light on this stating that, "The Valley does many things remarkably well, but it comes dangerously close to being a monoculture of white male nerds. Companies founded by women received just 2 percent of the funding doled out by venture capitalists last year (2017)." Entrepreneur Tim Ferriss told Business Insider that the tech scene in Silicon Valley can be brutal for people who deviate from the political echo chamber. After ten years in the Valley, Ferriss moved to Austin in 2017. Business Insider also tells the account of Peter Thiel, a billionaire-investor who was all but ostracized from Silicon Valley because of his support for President Donald Trump. He told Insider that "Network effects are very positive things, but there's a tipping point where they fall over into the madness of crowds."

Even if not quite an exodus, there are many accounts like the aforementioned that point to the fact that startups are indeed looking for greener pastures. Just where are these greener pastures? They are located in the business districts and technology parks that are smaller versions of Silicon Valley in cities all over the country. However, one green pasture in particular has taken the startup world by storm in recent years: the rise of the academic incubator.

A tech-splosion of university parks

"In recent years, there has been a substantial increase in public and private investment in university research parks (URPs). URPs are important as an infrastructural mechanism for the transfer of academic research findings, as a source of knowledge spillovers, and as a catalyst for national and regional economic growth," wrote Albert N. Link and John T. Scott in the highly regarded journal Oxford Review of Economic Policy, in their article "The economics of university research parks."

One of the biggest reasons universities have become hotbeds for tech startups is that campuses provide a means for people with multidisciplinary backgrounds to intermingle within the same space. A mechanical engineering student with a great idea might meet an MBA during a startup launch party. Together they can build and market their time-traveling DeLorean, or whatever actually-realistic idea the student has.

In essence, academic incubators are courting tech entrepreneurs because universities offer an ecosystem designed to support and grow startups from conception to commercialization. This ecosystem includes a space where researchers, faculty and students of all disciplines interact and form working relationships. In many cases, it also includes university owned equipment and laboratories for use by startup researchers.

"I feel that organizations working to commercialize university IP realize a great source of off-the-shelf technology that small businesses can use to either augment their own offerings or exploit something not currently found in the marketplace," said Michael Tentnowski, the director of entrepreneurship for Innovation Park of Tallahassee.

"Basically, the potential business can work with university staff to perfect, enhance or create new versions of various innovations to appeal to consumer demands. Taking the technology risk out of the equation helps new businesses focus on customer discovery and market penetration," Tentnowski explained.

Faye Liu, founder and CEO of RevoChem, a hot startup that recently launched out of UH's Technology Bridge, expressed that "one key benefit is the easy access to great talents and research resources from both students, researchers and professors from the university with flexibility."

Liu goes on to explain, "We have successfully hired multiple UH students and alumni through internships to work full time. We have also sponsored UH research that is relevant to our work which is a win-win for both of us."

It is true that universities position aspiring entrepreneurs to network with the right people for building their company from the ground up. Even the Innovation Leadership Forum attests that innovation is born when different ways of thinking clash.

"Providing a high-density area for collisions between thoughts and ideas to occur is driving innovation. Our urban location – adjacent to a Tier One research university – provides the chance for success to increase exponentially," said Carrie Roth, the president and CEO of Virginia Bio Tech Park.

"Our experience demonstrates that startups come here for a competitive advantage – and that is being in an environment where they can keep costs lower and accelerate their startup," she continued.

Academic incubators exude a different aura from non-academic parks. There's a certain sense of prestige they carry because they are based in universities. Perhaps it is the idea of working with professors and using university labs and equipment that resonates. "University research parks offer the opportunity for startups to be at the nexus of technology, talent and opportunities. The UH Technology Bridge, for example, offers a unique setting where companies from a broad range of technology areas can come together and have access to a variety of different resources, including wet lab space," explained Christopher Taylor, the executive director of University of Houston's Office of Technology Transfer and Innovation.

"Locating in a research park near a major university offers startups a chance to engage and collaborate with academic researchers in their field and leverage the vast talent pool of students through internships and part-time employment to develop their technology and grow their company," Taylor proceeded.

Yes, it is no wonder that so many entrepreneurs are choosing to leave Silicon Valley. They actually have options now. There are a ton of alternatives available all over the country now that are just as "top tier" as Silicon Valley, without the drawbacks of living there. Chief among these alternatives are academic incubators. The explosion of university investment in these tech parks has opened, nay, kicked down, the door for startup founders looking to venture outside of the Bay Area.

Say what you will about the mini-exodus from Silicon Valley. The high cost of living, the echo chamber and political groupthink, the lack of diversity. All valid points. But one thing is for certain, there are no academic incubators today without Silicon Valley. Its influence on modern tech parks may be taken for granted, but it is real.

It was once said that as gigantic and unfathomably massive as the sun is, it still manages to gently reach out with its light, millions of miles away, to ripen a vine of grapes as if it had nothing better to do. That's how Silicon Valley's influence is felt. Except instead of ripening grapes, it's drying plums. And today, academic and non-academic incubators merely operate in its shadow. The shadow of the valley of tech.

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This article originally appeared on the University of Houston's The Big Idea. Rene Cantu, the author of this piece, is the writer and editor at UH Division of Research.

Startup founders seek answers to how PPP loan funds provide their companies security and support. Miguel Tovar/University of Houston

What Houston startups need to know about PPP loans

Houston voices

Unless you've been vacationing on Mars for the past six months, you know that a $2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was recently approved by Congress. Business owners are sifting through the fine print to see if they qualify for PPP loans for startups.

The stimulus package carries provisions that will surely assist startups and small business during our current state of national emergency. The most notable part of this legislation is known as the Paycheck Protection Program, or PPP.

"Under the PPP, startups can qualify to attain a forgivable loan of 2.5 times the average monthly payroll, with restrictions, of course," explained the vice president of communications for Zeni Inc., Emilie Pires.

Emilie Pires oversees Zeni, a company that helps startups manage financial affairs and helps clients apply for PPP loans.

The federal government has a history of lending to small businesses through the Small Business Administration. The PPP loan differs from past loans, however, because it can be forgiven, and because it doesn't require a personal guarantee.

"Loan forgiveness is the most notable aspect of the PPP. It is significant because if you comply with the requirements, the loan actually functions like more of a grant. It's non-dilutive capital from the federal government to keep your company alive," Pires continued.

Perks of PPP

According to Bloomberg business writer Sara McBride, not requiring a personal guarantee gives startup founders a much needed boost.

"If a loan requires a personal guarantee, the founder would likely be weighed down with heavy personal debt if the startup ended up failing. A loan like this is not very appealing, so it's a big deal that the PPP loan doesn't require a personal guarantee."

Here are the two requirements if you want the loan to be forgiven. Per Bloomberg:

1) You must spend the money within 24 weeks of receiving funds, and;

2) You must use the loan on payroll, rent, mortgage, interest, or utilities.

The affiliate rule

Here's where it gets a little dicey. First off, it's best to consult a lawyer regarding the specifics of the affiliate rule. The affiliate rule essentially states that, if you own multiple startups, you have to count all the employees of all your companies when determining if you qualify for the PPP loan, which requires you to have less than 500 employees total to qualify.

With that said, here is an interpretation given by tech industry venture capitalist and lawyer Ed Zimmerman: "You might be able to skate by the affiliate rule if no one who owns other companies has more than a 20 percent stake in your company, and if no one in your company has enough control to veto any actions from your board."

Qualifying for PPP

Zimmerman also lays out a three-question test that might help you determine if your venture capitalist-supported startup qualifies for a PPP loan. The three questions are:

1) Does your venture capitalist hold 50 percent of your company's equity?

2) Even aside from that, does at least one venture capitalist control the majority of the company's board?

3) Further, does any venture capitalist control large portions of protective provisions, allowing him or her to veto corporate action, giving this venture capitalist control of the startup?

According to Zimmerman, if your answer to any one of the above is yes, you should attain legal counsel. If you answered no to all three, that's great news for you (but should still seek out legal counsel).

It is worth noting that the CARES Act does offer a program for companies with up to 10,000 employees. But those rates will be higher and will come with much bigger caveats.

Again, it's best to consult a lawyer to decide if you qualify to avoid the affiliate rule.

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This article originally appeared on the University of Houston's The Big Idea. Rene Cantu, the author of this piece, is the writer and editor at UH Division of Research.

During a crisis, it's easy for startup leaders to panic and make things worse. Here, we'll discuss how staying grounded will get you through a crisis. Miguel Tovar/University of Houston

3 crisis management tips for Houston business leaders

houston voices

The great pandemic of 2020 has brought to the surface the issue of crisis management. Especially with nationwide business shut downs in the last eight months, many companies are on a rocky road of uncertainty. Entrepreneurs are unsure of what the future holds after seeing revenues slow or halt in some cases. Layoffs, RIFs, budget cuts, departmental downsizing; all inevitable.

Way too many startup founders aren't equipped or experienced when it comes to crisis management. "In order to keep your startup going, you have to know how to identify a crisis before it spreads like a cancer and how to make big changes and big decisions fast and often," says Gael O'Brien, the ethics coach for Entrepreneur.com.

"Any time in which the world stops functioning in a way we're used to, a deviation from the norm, that might be the biggest early sign of a crisis about to rear its head," she continued.

Admitting you have a problem

O'Brien stresses that a leader should create an easy process whereby one can identify a crisis in its infancy. The key here, she says, is to make sure to recognize a crisis before it starts to consume your company. You'll have to learn how to contain the crisis by leading the charge in rapid decision making. Many entrepreneurs simply refuse to admit there's a problem at hand. Many times, admitting there's a crisis means admitting one was wrong. It also means they may have been wrong for years.

These entrepreneurs that refuse admitting there's a crisis often do so with common refrains like "I didn't want to scare anyone" or "if I admit I was wrong this whole time I'll lose respect."

"Great leaders aren't afraid to put their company first, even if it means a blow to the ego. These leaders are not afraid to inform everyone that might be affected know there is a crisis," O'Brien explained.

"They contain the problem and prevent it from becoming unmanageable. Good leaders don't opt for a temporary Band-Aid-like fix either. They aim for a permanent solution."

Casting for a crisis management team

There are two common mistakes startup leaders make when it comes to crisis management. The first is that they can miscast a crisis management team. Meaning, they put the wrong people in decision-making roles. You want people on your crisis management team who are not going to feel they will be blamed for a crisis or for controversial decisions.

When one is afraid of being blamed for something, they are more likely to obstruct and lie so that the team's focus is diverted. "These are people that will omit objective and relevant information if it means saving their own reputation or job. You want people that put the team first," said O'Brien.

Communication during a crisis

The second common mistake startup leaders make during a crisis is that they tend to under-communicate. It becomes habitual to keep things close to the chest. To become secretive during a crisis. Managers might feel that the less people know, the less chance there is of panic. However, doing this opens your company up to wild speculation among employees. Assumptions. And these assumptions are never good.

"You have to be forthright. It's not just that people have a right to know what's going on in their own company. It's also that if you leave yourself up to speculation, people will grow frustrated and worse, scared. Scared people make crises worse," said O'Brien.

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This article originally appeared on the University of Houston's The Big Idea. Rene Cantu, the author of this piece, is the writer and editor at UH Division of Research.

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Houston startup is off to the races with its innovative running shoes

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Despite Houston’s reputation as a sneaker town, there are few actual shoe companies headquartered in the Bayou City. One that is up and running is Veloci Running, an innovative enterprise that combines the founder’s history as a track runner for Rice University with the realities of running in a changing world.

Tyler Strothman started running cross country growing up in Wisconsin and Indiana before moving to Texas to attend Rice in 2020. Naturally, his college life was altered significantly by the COVID-19 pandemic. Unfortunately, Strothman contracted the virus, leading to pneumonia and causing him to consider other plans for his future.

One thing that stood out from Strothman’s running career was how bad his shoes fit.

“Traditional shoes narrowed in, cramped the front of my feet, and it was causing foot pain,” he said in a video interview. “But any other shoes that were shaped to better fit the natural foot shape were more barefoot (style)—they were more minimalist overall. And that was hurting my calf and Achilles. It was pulling on it, kind of like a rubber band.”

Strothman decided to start Veloci and went on to win the annual Liu Idea Lab for Innovation and Entrepreneurship's H. Albert Napier Rice Launch Challenge in 2025. The win secured $50,000 in startup money, which Strothman used to immediately launch his new runner-centered shoe design with himself as the CEO at the age of 24.

Along for the jog was Strothman’s college friend, Austin Escamilla, who serves as chief operating officer. Escamilla believed in Strothman’s vision, but the project immediately ran into snags beyond Veloci’s control, particularly with manufacturing in Asia.

“It was quite a year to start a shoe business, especially dealing with tariffs and global economic trade tensions,” he said in the same video interview. “We've luckily had some really good partners and really solid advisors throughout the journey who've either done it or had some good feedback and advice. It certainly takes a village, but every day is different. So, it's fun to come into work every day and problem solve.”

The flagship Veloci shoe is the Ascent, which comes in both men’s and women’s sizes. It combines the wide toe cage that Strothman wanted with extra support cushion for a softer, easier run. They retail at $180. Strothman has personally been testing them for a year, noticing reduced lower leg pain when he runs.

At the same time, Veloci has attended to some of the more unique running problems in Houston and other hot, Southern states. A combination of heat and humidity makes for a very soggy shoe if not designed with such environments in mind. The Ascent is built to be very open and breathable, allowing hot air to flow and keeping sweat from building up. These various comfort improvements have made the Ascent Strothman’s favorite running shoe.

“I put on more pairs of this Veloci shoe than I have in my other running shoes in the last seven years,” he said

Currently, Veloci is still a very niche brand. Since the company launched last year, they’ve sold roughly 10,000 pairs. Those sales come either directly through their website or from specialty running stores, most of which are located around the Houston area, like Clear Creek Running Company in League City.

Building community around the shoe through these specialty retailers has been a prime marketing strategy. Part of the $50,000 grant went to a custom van that Veloci can take to various 5Ks, runs and events to get people interested in the brand. The personal touch has helped news of Veloci spread through the running world.

“We went to many run clubs throughout the last year,” said Escamillia. “We've been to pretty much every one of the major run clubs at least once or twice. Folks who try on the shoes, love them, become fans and post and repost…. The marketing side's been a lot of fun.”

Intuitive Machines lands $180M NASA contract for lunar delivery mission

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NASA has awarded Intuitive Machines a $180.4 million Commercial Lunar Payload Services (CLPS) award to deliver science and technology to the moon.

This is the fifth CLPS award the Houston spacetech company has received from NASA, according to a release. It will be the first mission to utilize Intuitive Machines' larger cargo lunar lander, Nova-D.

Known as IM-5, the mission is expected to deliver seven payloads to Mons Malapert, a ridge near the Lunar South Pole, which is a "compelling location for future communications, navigation, and surface infrastructure," according to the release.

“We believe our space infrastructure provides the scalability and flexibility needed to support an increased cadence of new Artemis missions and advance national objectives. This CLPS award accelerates our expansion efforts as we build, connect, and operate the systems powering that infrastructure,” Steve Altemus, CEO of Intuitive Machines, said in the release. “We look forward to working closely with NASA to deliver mission success on IM-5 and to provide sustained operations and persistent connectivity in the cislunar environment and across the solar system.”

The delivery will include the Australian Space Agency’s lunar rover, known as Roo-ver, and another lunar rover from Honeybee Robotics, a part of Jeff Bezos' Blue Origin. Intuitive Machines will also deliver chemical analysis instruments, radiation detectors and other technologies, as well as a capsule named Sanctuary that shows examples of human achievements.

Intuitive Machines previously completed its IM-1 and IM-2 missions, which put the first commercial lunar lander on the moon and achieved the southernmost lunar landing, respectively.

Its IM-3 mission is expected to deliver international payloads to the moon's Reiner Gamma this year. It’s IM-4 mission, funded by a $116.9 million CLPS award, is expected to deliver six science and technology payloads to the Moon’s South Pole in 2027.

The company also announced a $175 million equity investment to fuel growth earlier this month.

TotalEnergies exits U.S. offshore wind sector in $1B federal deal

Energy News

TotalEnergies, a French company whose U.S. headquarters is in Houston, has agreed to redirect nearly $930 million in capital from two offshore wind leases on the East Coast to oil, natural gas and liquefied natural gas (LNG) production.

In its agreement with the U.S. Department of the Interior, TotalEnergies has also promised not to develop new offshore wind projects in the U.S. “in light of national security concerns,” according to a department press release.

Federal agency hails ‘landmark agreement’

The Department of the Interior called the deal a “landmark agreement” that will steer capital “from expensive, unreliable offshore wind leases toward affordable, reliable natural gas projects that will provide secure energy for hardworking Americans.”

Renewable energy advocates object to what they believe is the Trump administration’s mischaracterization of offshore wind projects.

Under the Department of the Interior agreement, the federal government will reimburse TotalEnergies on a dollar-for-dollar basis for the leases, up to the amount that the energy company paid.

“Offshore wind is one of the most expensive, unreliable, environmentally disruptive, and subsidy-dependent schemes ever forced on American ratepayers and taxpayers,” Interior Secretary Doug Burgum said in the announcement. “We welcome TotalEnergies’ commitment to developing projects that produce dependable, affordable power to lower Americans' monthly bills while providing secure U.S. baseload power today — and in the future.”

TotalEnergies cites U.S. policy in move away from U.S. wind power

In the news release, Patrick Pouyanné, chairman and CEO of TotalEnergies, says the company was “pleased” to sign the agreement to support the Trump administration’s energy policy.

“Considering that the development of offshore wind projects is not in the country’s interest, we have decided to renounce offshore wind development in the United States, in exchange for the reimbursement of the lease fees,” Pouyanné says.

TotalEnergies redirects capital to LNG, oil, and natural gas

TotalEnergies will use the $928 million it spent on the offshore wind leases for development of a joint venture LNG plant in the Rio Grande Valley, as well as for production of upstream oil in the Gulf of Mexico and for production of shale gas.

“These investments will contribute to supplying Europe with much-needed LNG from the U.S. and provide gas for U.S. data center development. We believe this is a more efficient use of capital in the United States,” Pouyanné says.

TotalEnergies paid $133.3 million for an offshore wind lease at the Carolina Long Bay project off the coast of North Carolina and $795 million in 2022 for a lease covering a 1,545-megawatt commercial offshore wind facility off the coast of New Jersey.

“TotalEnergies’ studies on these leases have shown that offshore wind developments in the United States, unlike those in Europe, are costly and might have a negative impact on power affordability for U.S. consumers,” TotalEnergies said in a company-issued press release. “Since other technologies are available to meet the growing demand for electricity in the United States in a more affordable way, TotalEnergies considers there is no need to allocate capital to this technology in the U.S.”

Since 2022, TotalEnergies has invested nearly $12 billion to promote the development of oil, LNG, and electricity in the U.S. In 2025, TotalEnergies was the No. 1 exporter of LNG from the U.S.

Industry groups push back on offshore wind pullback

The American Clean Energy Association has pushed back on the Trump administration’s characterization of offshore wind projects.

“The offshore wind industry creates thousands of high-quality, good-paying jobs, and is revitalizing American manufacturing supply chains and U.S. shipyards,” Jason Grumet, the association’s CEO, said in December after the Trump administration paused all leases for large-scale offshore wind projects under construction in the U.S. “It is a critical component of our energy security and provides stable, domestic power that helps meet demand and keep costs low.”

Grumet added that President Trump’s “relentless attacks on offshore wind undermine his own economic agenda and needlessly harm American workers and consumers.” He called for passage of federal legislation that would prevent the White House “from picking winners and losers” in the energy sector and “placing political ideology” above Americans’ best interests.

The National Resources Defense Council offered a similar response to the offshore wind leases being paused.

“In its ongoing effort to prop up waning fossil fuels interests, the administration is taking wilder and wilder swings at the clean energy projects this economy needs,” said Pasha Feinberg, the council’s offshore wind strategist. “Investments in energy infrastructure require business certainty. This is the opposite. If the administration thinks the chilling impacts of this action are limited to the clean energy sector, it is sorely mistaken.”

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This article originally appeared on EnergyCapitalHTX.com.

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