Starbucks perks up Houston minority communities as part of $100 million investment

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That next Frappuccino could help support BIPOC-owned businesses. Courtesy of Starbucks

The Bayou City will be a major beneficiary of a new initiative from Starbucks. The Seattle-based, global coffee giant announced that it has selected Houston as one of 12 U.S. cities that will receive funds from the Starbucks Community Resilience Fund.

Seeded with a $100 million investment, the fund will be used to support small businesses and community development projects in BIPOC (Black, indigenous, and people of color) neighborhoods. In addition to Houston, the program will launch in Atlanta, Detroit, Los Angeles, Miami, Minneapolis, New Orleans, New York City, Philadelphia, San Francisco Bay Area, Seattle, and Washington D.C.

"Starbucks has always been a company focused on caring for our partners, creating experiences for our customers and playing a positive role in our communities and throughout society," Kevin Johnson, Starbucks president and CEO, said in a statement. "We are excited to make this investment as it aligns with our mission and values and supports our aspiration to advance equity and opportunity in the communities we serve."

Working with partners such as the Opportunity Finance Network, Starbucks will select certain Community Development Financial Institutions that will receive funds. CDFIs focus on providing capital and promoting economic development. These institutions will then provide loans to small businesses and community development projects. In addition to money, CDFIs offer mentorship and flexible repayment terms that help projects become successful.

Specific Houston beneficiaries are still unknown at this time, but the funds have the potential to benefit a diverse array of projects, including those focused on addressing the impacts of climate change and investments in neighborhoods that are overlooked by traditional lenders.

For example, as part of a $10 million investment in four, Chicago-based CDFIs, Starbucks helped fund Green Era Sustainability's campus project that includes a 2-acre clean energy generation facility, an urban farm, green houses, an outdoor fresh produce market, a visitor center with classrooms for community activities, and a STEM education center. The project will create 247 construction jobs and 25 permanent jobs in Chicago's Auburn Gresham neighborhood.

"Given the severe impact of the pandemic on the long-disinvested communities CCLF serves, our lending is more important than ever to help these communities grow and thrive," said Bob Tucker, COO for the Chicago Community Loan Fund. "Our customers have urgent needs, and Starbucks investment in CCLF will help tremendously in bringing them the resources they need."

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This article originally ran on CultureMap.

The coffee company announced three Houston-area solar projects. Courtesy of Starbucks

Starbucks brews up solar energy initiative across Houston and Texas

Green coffee

Coffee shop chain Starbucks is plugging into Texas' solar energy industry in a big way.

Two 10-megawatt solar farms in Texas owned by Cypress Creek Renewables LLC are providing enough energy for the equivalent of 360 Starbuck stores, including locations in Houston, Humble, Katy, and Spring. Separately, Starbucks has invested in six other Texas solar farms owned by Cypress Creek, representing 50 megawatts of solar energy; Santa Monica, California-based Cypress Creek is selling that power to other customers.

Three of the eight solar farms in the Texas portfolio are just outside the Houston metro area. One is in the Fort Bend County town of Beasley, while two of the projects are in Wallis and Wharton.

Starbucks already relies on a North Carolina solar farm equipped with 149,000 panels to deliver solar energy equivalent to powering 600 Starbucks stores in North Carolina, Delaware, Kentucky, Maryland, Virginia, West Virginia, and Washington, D.C.

"Our long-standing commitment to renewable energy supports our greener-retail initiative and demonstrates our aspiration to sustainable coffee, served sustainably," Rebecca Zimmer, Starbucks' director of global environmental impact, says in an April 15 release about its solar investment in Texas. "Now, we are investing in new, renewable energy projects in our store communities, which we know is something our partners and customers can appreciate for their local economy and for the environment."

The solar commitment in Texas aligns with Starbucks' goal of designing, building, and operating 10,000 "greener" company-owned stores around the world by 2025. The Seattle-based retailer expects this initiative — whose features include renewable energy, energy efficiency, and waste reduction — to cut $50 million in utility costs over the next 10 years.

U.S. Bank's community development division teamed up with Starbucks and Cypress Creek on the Texas solar farms. Chris Roetheli, a business development officer at U.S. Bank, says solar tax equity investments like those undertaken by Starbucks are growing in popularity among non-traditional investors.

"Starbucks is taking a unique approach — investing in solar farms regionally to support a specific group of its stores," Roetheli says in the announcement of the solar collaboration. "This is a new concept, and one that I think other companies are watching and may follow. It's an interesting model that allows them to talk specifically about the impact of their investments."

Starbucks' investment comes as Texas' stature in the solar energy sector keeps rising, along with the state's role in the wind energy industry.

According to the Solar Energy Industries Association, more than 2,900 megawatts of solar capacity are installed in Texas. That's enough energy to power nearly 350,000 homes. Among the states, Texas ranks fifth for the amount of installed solar capacity.

Solar investment in Texas exceeds $4.5 billion, with about 650 solar companies operating statewide, the association says. The solar energy industry employs more than 13,000 full-time and part-time workers in Texas, according to the Texas Solar Power Association.

With more than 4 gigawatts (over 7,000 megawatts) of solar capacity expected to be added in Texas over the next five years, the national solar association reported in 2018 that "Texas is poised to become a nationwide leader in solar energy … ."

As it stands now, though, solar supplies less than 1 percent of Texas' electricity.

A 2018 state-by-state report card for friendliness toward solar power assigned a "C" to Texas, putting it in 34th place among the states.

The report card, released by SolarPowerRocks.com, lauds the backing of big Texas cities like Houston, Austin, Dallas, and San Antonio in encouraging residential solar installations.

However, the report card adds, outlying areas in Texas lag their urban counterparts in support of residential solar, "and we'd like lawmakers here to codify more protections and goals for solar adoption, but in the most populous areas, the Lone Star [State] shines."

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World's largest student startup competition names teams for 2025 Houston event

ready, set, pitch

The Rice Alliance for Technology and Entrepreneurship has announced the 42 student-led teams worldwide that will compete in the 25th annual Rice Business Plan Competition this spring.

The highly competitive event, known as one of the world’s largest and richest intercollegiate student startup challenges, will take place April 10–12 at Houston's The Ion. Teams in this year's competition represent 34 universities from four countries, including one team from Rice.

Graduate student-led teams from colleges or universities around the world will present their plans before more than 300 angel, venture capital, and corporate investors to compete for more than $1 million in prizes. Last year, top teams were awarded $1.5 million in investment and cash prizes.

The 2025 invitees include:

  • 3rd-i, University of Miami
  • AG3 Labs, Michigan State University
  • Arcticedge Technologies, University of Waterloo
  • Ark Health, University of Chicago
  • Automatic AI, University of Mississippi and University of New Orleans
  • Bobica Bars, Rowan University
  • Carbon Salary, Washington University in St. Louis
  • Carmine Minerals, California State University, San Bernardino
  • Celal-Mex, Monterrey Institute of Technology and Higher Education
  • CELLECT Laboratories, University of Waterloo
  • ECHO Solutions, University of Houston
  • EDUrain, University of Missouri-St. Louis
  • Eutrobac, University of California, Santa Cruz
  • FarmSmart.ai, Louisiana State University
  • Fetal Therapy Technologies, Johns Hopkins University
  • GreenLIB Materials, University of Ottawa
  • Humimic Biosystems, University of Arkansas
  • HydroHaul, Harvard University
  • Intero Biosystems, University of Michigan
  • Interplay, University of Missouri-Kansas City
  • MabLab, Harvard University
  • Microvitality, Tufts University
  • Mito Robotics, Carnegie Mellon University
  • Motmot, Michigan State University
  • Mud Rat, University of Connecticut
  • Nanoborne, University of Texas at Austin
  • NerView Surgical, McMaster University
  • NeuroFore, Washington University in St. Louis
  • Novus, Stanford University
  • OAQ, University of Toronto
  • Parthian Baattery Solutions, Columbia University
  • Pattern Materials, Rice University
  • Photon Queue, University of Illinois, Urbana-Champaign
  • re.solution, RWTH Aachen University
  • Rise Media, Yale University
  • Rivulet, University of Cambridge and Dartmouth College
  • Sabana, Carnegie Mellon University
  • SearchOwl, Case Western Reserve University
  • Six Carbons, Indiana University
  • Songscription, Stanford University
  • Watermarked.ai, University of Illinois, Urbana-Champaign
  • Xatoms, University of Toronto

This year's group joins more than 868 RBPC alums that have raised more than $6.1 billion in capital with 59 successful exits, according to the Rice Alliance.

Last year, Harvard's MesaQuantum, which was developing accurate and precise chip-scale clocks, took home the biggest sum of $335,000. While not named as a finalist, the team secured the most funding across a few prizes.

Protein Pints, a high-protein, low-sugar ice cream product from Michigan State University, won first place and the $150,000 GOOSE Capital Investment Grand Prize, as well as other prizes, bringing its total to $251,000.

Tesla recalling more than 375,000 vehicles due to power steering issue

Tesla Talk

Tesla is recalling more than 375,000 vehicles due to a power steering issue.

The recall is for certain 2023 Model 3 and Model Y vehicles operating software prior to 2023.38.4, according to the National Highway Traffic Safety Administration.

The printed circuit board for the electronic power steering assist may become overstressed, causing a loss of power steering assist when the vehicle reaches a stop and then accelerates again, the agency said.

The loss of power could required more effort to control the car by drivers, particularly at low speeds, increasing the risk of a crash.

Tesla isn't aware of any crashes, injuries, or deaths related to the condition.

The electric vehicle maker headed by Elon Musk has released a free software update to address the issue.

Letters are expected to be sent to vehicle owners on March 25. Owners may contact Tesla customer service at 1-877-798-3752 or the NHTSA at 1-888-327-4236.

Houston space tech companies land $25 million from Texas commission

Out Of This World

Two Houston aerospace companies have collectively received $25 million in grants from the Texas Space Commission.

Starlab Space picked up a $15 million grant, and Intuitive Machines gained a $10 million grant, according to a Space Commission news release.

Starlab Space says the money will help it develop the Systems Integration Lab in Webster, which will feature two components — the main lab and a software verification facility. The integration lab will aid creation of Starlab’s commercial space station.

“To ensure the success of our future space missions, we are starting with state-of-the-art testing facilities that will include the closest approximation to the flight environment as possible and allow us to verify requirements and validate the design of the Starlab space station,” Starlab CEO Tim Kopra said in a news release.

Starlab’s grant comes on top of a $217.5 million award from NASA to help eventually transition activity from the soon-to-be-retired International Space Station to new commercial destinations.

Intuitive Machines is a space exploration, infrastructure and services company. Among its projects are a lunar lander designed to land on the moon and a lunar rover designed for astronauts to travel on the moon’s surface.

The grants come from the Space Commission’s Space Exploration and Aeronautics Research Fund, which recently awarded $47.7 million to Texas companies.

Other recipients were:

  • Cedar Park-based Firefly Aerospace, which received $8.2 million
  • Brownsville-based Space Exploration Technologies (SpaceX), which received $7.5 million
  • Van Horn-based Blue Origin, which received $7 million

Gwen Griffin, chair of the commission, says the grants “will support Texas companies as we grow commercial, military, and civil aerospace activity across the state.”

State lawmakers established the commission in 2023, along with the Texas Aerospace Research & Space Economy Consortium, to bolster the state’s space industry.

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