Why this Houston entrepreneur stuck with startups over a corporate gig

Guest column

When Microsoft came knocking on this Houston entrepreneur's door, he realized leaving the startup world was not something he was willing to do. Pexels

Several ago, Microsoft dangled a senior leadership role in front of me, which included a high-compensation offer and the chance to move to Seattle. It was tempting. On the surface, this might seem like an easy choice. This kind of senior management position at Microsoft is something many people only dream of. And Microsoft was making a hard push for me.

Then, while pondering the offer, I imagined how I would change the company's website to capitalize on an urgent market opportunity, and then I thought about the bureaucracy I'd have to go through, which I imagined would have been like trying to get a bill through Congress. I called the hiring manager and asked for an example of his team advocating for such a change, and he confirmed that it would require jumping in slow motion through layers of hoops.

I couldn't get myself to leave the high-flying startup atmosphere where I had the freedom to move the needle in quantum leaps, not increments. It's a big decision to choose to share your talents with a startup versus a large corporation. Both options include benefits and risks. But if you have an entrepreneurial mind-set, you will discover, like I did, that startups can offer huge benefits. Here are what I see as the top four.

1. Fewery barriers of entry

While big corporations often choose to hire the candidates who went to Ivy League schools, are well-connected, or have loads of experience at higher-level positions, startups are interested in something else. They choose to hire people who think creatively, show a willingness to work hard, and demonstrate raw leadership qualities that, once cultivated, can help the company (and the individual) achieve breakthrough success. Startup entrepreneurs are creators, not maintenance workers, and startups need visionaries at every level.

2. Versatility in roles

Most jobs in big companies offer a limited range of authority, meaning no single individual, besides perhaps the CEO, has the ability to influence the entire company in a significant way. When you get hired to fill a role at an established business, that's exactly what they expect you to do: fill that role.

It's rare, if not impossible, to find the freedom to experiment and try your hand at filling different roles within various departments. Most startups don't hire with a set idea of your potential or career path, because the startup is young and undergoing massive change.

Founders may find it hard to predict what the company's needs will be as it grows. This is the perfect environment to try on different hats and find your zone of genius — the area where you work best — then move up quickly from there.

3. Financial rewards

Go to work for a big company, and you'll get a paycheck — a paycheck and a 4 percent annual raise along with a formal review from a manager who dreads delivering it. The potential upside is far greater at startups. And the initial financial rewards might not be too bad either.

Depending on the size and cash flow, a startup may offer a competitive salary right off the bat, or it may start you off with a modest salary with the potential to own a piece of the pie through stock options. The stock options could lead to astronomical compensation later on, if the company is successful. In my opinion, always go for the stock options.

4. Upward mobility

If you have enough drive, it is possible to climb the old guard corporate ladder but be prepared for a slow climb. Incumbent companies are burdened with incumbent mind-sets. Barriers to advancement are high, and opportunities are few. If you have set your sights on making it to the C-suite of a Fortune 500 company, your opportunities are severely limited. Among those companies, there can only be 500 CEO positions, maybe 5,000 in the rest of the C-suite. That means your odds of getting a job in the C-suite of a Fortune 500 company are lower than the odds of being drafted by the National Football League — way lower considering the NFL drafts 224 new players each year,and people tend to linger in the C-suite quite a bit longer than that.

Compare these numbers to the 46,500 startups in the United States, and it's easy to see there are far more executive leadership opportunities at startup companies. If you believe your corporate destiny is to become a leader, you can find a startup with a dynamic, fast-moving environment that values initiative and offers the opportunity to move up quickly.

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Steven Mark Kahan has successfully helped to grow six startup companies from early-stage development to going public or being sold, resulting in more than $3 billion in shareholder value. He is also the author of a the book Be a Startup Superstar.

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Greentown Labs reduces roles at Houston, Boston incubators

tough decisions

Greentown Labs has announced a reduction in its staff, which affects both of its locations.

In a letter addressed to the Greentown Labs community, the organization's CEO and President Kevin Knobloch reported that Greentown will be reducing its staff by 30 percent, eliminating 12 roles in Boston and six in Houston. Knobloch noted changes in leadership, growth of the team, and adjustments following the pandemic.

"Greentown Labs grew rapidly over the past four years in pursuit of advancing its mission to catalyze climate action through entrepreneurship, partnership, and collaboration," Knobloch writes in the letter. "This created a structural deficit where growth outpaced revenue."

The letter did not provide details of which positions were eliminated at either location.

With these resizing of the staff and reduced expenses, Knobloch writes that the organization is positioned well for its future.

"Despite this decision, I remain optimistic about the future for Greentown and the impact we will have on addressing the climate crisis," Knobloch tells the community. "Our mission is as urgent as ever and we remain committed to supporting all of you—our startups—by prioritizing core operations, member services, and strategic partner engagements."

Knobloch took the helm of Greentown last summer. He previously served as chief of staff of the United States Department of Energy in President Barack Obama’s second term.

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This article originally ran on EnergyCapital.

RBPC's big winners, Hello Alice scores funding, and more trending Houston innovation news

top stories

Editor's note:Let's roundup the top Houston innovation news from the week. Trending Houston tech and startup articles on InnovationMap included the results from the 2024 Rice Business Plan Competition, recent funding from a Houston startup, and more.

Houston tech platform raises series C round backed by Mastercard

Following the round, Hello Alice is now valued at $130 million. Photo courtesy Cayce Clifford/Hello Alice

Hello Alice, a fintech platform that supports 1.5 million small businesses across the country, has announced its series C round.

The amount raised was not disclosed, but Hello Alice reported that the fresh funding has brought the company's valuation to $130 million. Alexandria, Virginia-based QED Investors led the round, and investors included Mastercard, Backstage Capital, Guy Fieri, Golden Seeds, Harbert Growth Partners Fund, How Women Invest I, LP, Lovell Limited Partnership, Tyler “Ninja” and Jessica Blevins, and Tamera Mowry and Adam Housley, per a news release from the company.

“We are thrilled to hit the milestone of 1.5 million small businesses utilizing Hello Alice to elevate the American dream. There are more entrepreneurs launching this year than in the history of our country, and we will continue to ensure they get the capital needed to grow,” Elizabeth Gore and Carolyn Rodz, co-founders of Hello Alice, say in a news release. “In closing our Series C, we welcome Mastercard to our family of investors and continue to be grateful to QED, How Women Invest, and our advocates such as Guy Fieri.” Continue reading.

Annual Houston student startup competition doles out over $1.5M in cash, investment prizes

Thirteen of the 42 teams participating in RBPC 2024 walked away with investment funding. Photo courteys of Rice University

For the 24th year, the Rice Alliance for Technology and Entrepreneurship hosted its Rice Business Plan Competition, facilitating over $1.5 million in investment and cash prizes to the top teams.

The 42 startups competing this year, which were announced earlier this year and included teams from around the world, participated in the three-day event that culminated in a reception on Saturday, April 6. The companies were divided into five categories: Energy, Cleantech and Sustainability; Hard Tech; Life Sciences and Healthcare Solutions; Digital Enterprise; Consumer Products and Services.

“We award the competitors $1 million in prizes, prizes that serve as foundational capital to launch their startup,” RBPC Director Catherine Santamaria says at the awards gala. “That’s a large number of prizes, but the biggest thing our startups leave with is a feeling of generosity and community from this room. This community is always ready and willing to help our founders and support our vision for the competition by investing time, money and resources in these student innovators.” Continue reading.

Houston organizations launch collaborative center to boost cancer outcomes

Researchers at the new SynthX Center will aim to turn fundamental research into clinical applications and make precision adjustments to drug properties and molecules. Photo via Rice University

Rice University's new Synthesis X Center officially launched last month to bring together experts in cancer care and chemistry.

The center was born out of what started about seven years ago as informal meetings between Rice chemist Han Xiao's research group and others from the Baylor College of Medicine’s Dan L Duncan Comprehensive Cancer Center at the Baylor College of Medicine. The level of collaboration between the two teams has grown significantly over the years, and monthly meetings now draw about 100 participants from across disciplines, fields and Houston-based organizations, according to a statement from Rice.

Researchers at the new SynthX Center will aim to turn fundamental research into clinical applications and make precision adjustments to drug properties and molecules. It will focus on improving cancer outcomes by looking at an array of factors, including prevention and detection, immunotherapies, the use of artificial intelligence to speed drug discovery and development, and several other topics. Continue reading.

Early-stage accelerator names 9th Houston cohort

Global organization gener8tor, along with Downtown Launchpad, started its ninth gBETA Houston cohort last month. Photo via Getty Images

For the ninth time, gBETA is incubating five early-stage Houston startups providing innovative solutions across skincare, human resources, and more.

Global organization gener8tor, along with Downtown Launchpad, started its ninth gBETA Houston cohort last month. The free seven-week, no-equity accelerator program selected five Houston-based founders to provide helpful programming, support, and connections to mentors, customers, corporate partners, and investors.

"We're thrilled to continue fostering innovation in Houston and are thankful for our collaboration with Downtown Launchpad as we launch the ninth cohort of gBETA Houston,” says Vanessa Huerta, vice president of gBETA at gener8tor, in a statement. Continue reading.

Houston physicist scores $15.5M grant for high-energy nuclear physics research

The work is "poised to revolutionize our understanding of fundamental physics," according to Rice University. Photo courtesy of Rice University

A team of Rice University physicists has been awarded a prestigious grant from the Department of Energy's Office of Nuclear Physics for their work in high-energy nuclear physics and research into a new state of matter.

The five-year $15.5 million grant will go towards Rice physics and astronomy professor Wei Li's discoveries focused on the Compact Muon Solenoid (CMS), a large, general-purpose particle physics detector built on the Large Hadron Collider (LHC) at CERN, a European organization for nuclear research in France and Switzerland. The work is "poised to revolutionize our understanding of fundamental physics," according to a statement from Rice.

Li's team will work to develop an ultra-fast silicon timing detector, known as the endcap timing layer (ETL), that will provide upgrades to the CMS detector. The ETl is expected to have a time resolution of 30 picoseconds per particle, which will allow for more precise time-of-flight particle identification. Continue reading.

Growing Houston startup moves into 43,000-square-foot facility amid 'hypergrowth phase'

major milestone

A Houston startup has moved into a new space that's more than four times larger than its previous setup — a move that's setting the company up to scale its business.

NanoTech Materials celebrated its move into a new facility — a 43,000-square-foot space in Katy, Texas, this week. The materials science company currently distributes a roof coating that features its novel heat-control technology across the company. Originally founded in a garage, the company has now moved from its 10,000-square-foot space at Halliburton Labs into the larger location to support its growth.

“The new facility allows us to not just focus on the roofing, and that’s growing at a pretty rapid pace, but also stand up different production lines for our next iteration of technologies coming-out," Mike Francis, co-founder and CEO of NanoTech tells InnovationMap.

The space allows for a 340 percent increase in the manufacturing and operational capabilities, including producing 55 million square feet a year of roof coating. Francis says the new products he's focused on launching and scaling include a wildfire protectant coating and liquid applied insulation for trucks and containers to control heat for driver and worker safety.

Francis adds that he will be expanding the company's team to support this growth.

“We’re constantly hiring now,” he says. “We have about 25 employees right now. Next year, we’ll probably be double that. We’re kind of in a hypergrowth phase."

Francis likes to credit Houston in part for NanoTech's ability to grow at this pace and to be successful.

Mike Francis is the CEO and co-founder of NanoTech Materials. Photo via LinkedIn

“Houston has a shot at being one of the top startup cities of the world — I think it’s going to take a lot of time and capital, but what makes Houston different is its ability to scale existing technologies,” Francis says.

“I really think that Houston is already the spot to take an existing technology and build a team around it to turn it into a company because you have all of the players — whether it’s the end customer or the incubators and 'scalerators' — and you have all of these pieces coming into place," he continues. "Maybe it’s not the best place to start a company, but it’s definitely the best place to scale a company because of the ecosystem is really willing to participate and raise up startups like ours."

As the first company selected for Halliburton's incubator, Halliburton Labs, when it launched in 2020, NanoTech has worked closely with the company that housed and supported them for years.

“Once you’re in the Halliburton Labs fold, they are always just a phone call away from making something happen," he says. “We’re transferring all that knowledge into a bigger facility — growing up and graduating from what they gave us.”

Last year, NanoTech raised an oversubscribed funding round that brought on a handful of new investors. The details of the round were not disclosed, but NanoTech did release that the round included participation from three institutional investors, two corporate-strategic investors, and seven family offices. The company originally raised its seed round in 2020.

The NanoTech team, including Francis and Carrie Horazeck, chief commercial officer, joined the Houston Innovators Podcast last year to discuss how they've rolled out their first line of business.


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