What Houston startups can learn from the power of the pivot

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YouTube, Yelp, and Groupon all pivoted to great success. Here's what lessons Houston startups can take from these pivots. Miguel Tovar/University of Houston

Tons of companies start off as something completely different until they are faced with a challenge that only a change in direction can overcome.

Why should your startup pivot?

Imagine your startup is getting ready to present its product to the world at a tech exhibit. Right before you present, another company shows off their own product. And it's just like yours in every way. Is all lost for your company? No. Because now is the time where you must learn one of the most important principles in business. The startup pivot.

A pivot is a change in strategy. A new approach to your business model. A change in direction.

Companies that pivoted

Did you know that YouTube wasn't always a video sharing platform? That's right. YouTube actually started off as a dating service. You'd send in videos of yourself, essentially selling yourself to potential dates in your area. They even had a catchline: "Tune in, hook up."

Upon realizing the massive potential they had for hosting videos, the company pivoted and is now worth $40 billion. Talk about no regrets.

Yelp started off as an automated system that suggested recommendations from friends. The execution of this idea wasn't well-received. However, the founders recognized that users were writing tons of reviews for businesses just because they enjoyed it. And just like that, Yelp became the billion-dollar third-party directory we all know and love today. It was all because the founders knew enough to pivot.

Groupon actually started off as a social platform whereby people could unite to support charities and socially conscious causes. It was called The Point. This idea soon withered but a branch of The Point proved to be popular: a subdomain called Groupon. This idea turned out to be more popular, as people showed deep interest in pooling together funds to broker a group discount.

What these companies teach about pivoting

These companies' success from pivoting teaches us to focus on what we already have built. If there is an aspect of your business that isn't quite working out, there might actually be a part of your business that is. Look for that part and focus on it. Expand on it. Search for positives within your company and concentrate on developing them into something new and different.

We can also learn to cut our losses. Even if your idea is a genius one, if it's not yielding money, you have to move on. Getting stuck in the "just give it more time it'll work out" quicksand can sink your business fast. If you're hemorrhaging money because of your awesome-on-paper idea, the more chances you give it to succeed, the more money you'll lose. You have to know when to say when.

Another thing these three companies did was to follow the trail of money. They recognized areas of strength, and rode those areas to the bank. They concentrated on the aspects of their startups that yielded the most revenue. And you should too.

Don't be afraid of change. Your company doesn't have to be a success over night. It's okay to give it some time. But there is an art to knowing when give up and try something else. You have to master that art, just like the aforementioned companies did. Open yourself up to bigger possibilities. Sometimes, when working on the idea you thought was so brilliant, you stumble on to a different idea that proves to be more financially auspicious. Then it's time for a startup pivot. It's up to you to spot those instances and run with them, just like YouTube, Yelp, and Groupon did.

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This article originally appeared on the University of Houston's The Big Idea.

Rene Cantu is the writer and editor at UH Division of Research.

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Houston researchers develop breakthrough device that could bypass spinal injuries

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Scientists at Houston Methodist have announced a significant leap forward for spinal cord injury recovery.

The researchers have developed a device that essentially bypasses spinal injuries, allowing signals from previously “lost” functions to reach the brain, a new study published in Nature Communications shows.

“Most current technologies try to improve whatever function remains after a spinal cord injury,” Dr. Damiano Barone, assistant professor of neurosurgery in the Department of Neurosurgery at Houston Methodist and co-lead on the study, said in a news release. “Our goal is different. Rather than fixing the injury itself, we want to bypass it completely and create an alternative route for signals to travel.”

The study involved a single ultrathin circumferential electrode array made to conform around the spinal cord without penetrating neural tissue, which was implanted into rodent and pig models with spinal injuries. The electrode array was able to interpret motor, sensory and autonomic signals around the injury. Think of it as a set of detours that restore road access to isolated towns after a disaster destroys the highway instead of just rebuilding the highway.

Over the course of three days, the arrays detected signals of intended movement from low-frequency spinal oscillations with more than 94 percent accuracy. This worked across species and was replicated in feasibility studies on human cadavers.

This research could serve as a new foundation for neuroprosthetic implants that could restore connectivity to the 2.5 million people worldwide suffering from spinal injuries that result in loss of ability. Future development could result in everything from restored organ function to mobility, according to Houston Methodist.

George Malliaras, the Prince Professor of Technology in the Department of Engineering at the University of Cambridge, who co-led the study, sees it as a fundamental restructuring of the science of spinal trauma.

“This could represent a paradigm change in how we think about spinal cord injuries,” Malliaras said. “Instead of starting from the idea that what is lost is gone forever, this approach asks whether we can restore function by carrying the signal around the injury.”

Further work involving laboratory models will need to be completed before launching human trials.

Grants from the National Institutes of Health, Houston Methodist Katz Investigator Award, Helaers Research Award and the Engineering and Physical Sciences Research Council helped support the study. Other collaborators on the study include Salim Hadwe, Ruben Serrano, George Psaltakis, Margaux Forner, Chaeyeon Lee, Sydney Swedick, Moleca Ghnnam, Tawfique Hasan and Alejandro Carnicer-Lombarte from the University of Cambridge; and Anton Banta and Xueer Zhang from Houston Methodist.

Abbott assembles expert team to help lure U.S. Space Academy to Texas

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State Rep. Greg Bonnen of Friendswood has been tapped to lead a new team that will promote Texas as the future home of the U.S. Space Academy.

Bonnen, a neurosurgeon, chairs Houston Physicians’ Hospital and the powerful Texas House Appropriations Committee. His House district is close to NASA’s Johnson Space Center.

Gov. Greg Abbott appointed the seven-member team. Last month, President Trump signed an executive order establishing the Presidential Commission on the U.S. Space Academy. Commission members, who held their first meeting this month, will recommend a permanent location for the academy.

Texas officials are pushing a site near Johnson Space Center to host the academy. Alabama, Colorado and Florida are among Texas’ competitors.

In a joint statement, U.S. Sen. Ted Cruz and U.S. Rep. Brian Babin, both of Texas, issued a statement backing the state’s bid for the academy. Cruz lives in Houston. Babbin lives in Woodville, about 55 miles south of Beaumont.

“America’s space program is built across the country, but Texas is where the pieces come together,” the lawmakers said. “We are ready to lead the next generation of space pioneers and look forward to showing why Texas is the right home for the U.S. Space Academy.”

The academy’s curriculum will include technical education, leadership development and public service components. Graduates will be set up for careers in the U.S. military, civil service, and aerospace sectors.

The Abbott-appointed team will work with the Texas Space Commission to prepare the state’s proposal for the academy.

In addition to Bonnen, team members with ties to Houston include:

  • Robert Ambrose, who grew up in Houston. He worked at Johnson Space Center before becoming associate director of the Texas A&M Space Institute.
  • Former NASA astronaut Nancy Curry-Gregg, director of the Texas A&M Space Institute. She earned a doctoral degree from the University of Houston and previously worked at Johnson Space Center.
  • Former NASA astronaut Jack Fischer, senior vice president of Houston-based Intuitive Machines. The company builds spacecraft, delivers payloads to the moon and launches satellites.

“Texas is the home of America’s human spaceflight program,” Abbott said in a release. “No state can match what Texas brings to this mission.”

“NASA’s Johnson Space Center, world-class universities, a premier commercial space industry, major military installations, and an unmatched aerospace workforce give Texas every asset the United States Space Academy requires,” the governor added.

Houston university named No. 10 in nation and more top innovation news

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Editor's note: September sees a flurry of news for the innovation community, with one Houston university topping a nationwide ranking and one Houston-area NASA contractor poised to go public. Here are the five most-read Houston innovation headlines published September 1-15, 2026:

Houston university ranks No. 10 best in the U.S. in new 2027 report

Education ranking and review website Niche has released its 2027 rankings of the best colleges in the U.S., and Rice University leads as the No. 1 best university in Texas, and No. 10 best nationwide. Rice University ranked 10th in three national lists: Best Colleges in America, Top Private Universities, and Colleges with the Best Professors. Continue reading.

Houston-area NASA contractor plans Nasdaq IPO

Webster-based NASA contractor Rothe Development Inc. has filed paperwork with the U.S. Securities and Exchange Commission to go public. Rothe, a minority- and woman-owned business, hasn’t yet identified how many shares it will sell and how much money its IPO might raise. Rothe plans to offer Class B common stock on the Nasdaq exchange. Continue reading.

10+ can't-miss Houston business and innovation events for September

The energy transition and AI will be the talk of this town this month, thanks to a packed calendar of Houston events. September brings the return of Houston Energy and Climate Startup Week and some of its signature anchor events, plus AI conferences and talks exploring how the technology is impacting everything from healthcare to leadership. Here’s what not to miss and how to register. Continue reading.

Amazon's robotaxi service Zoox rolls out in 'sprawling' Houston market

Amazon-owned robotaxi ride-hailing service Zoox is zooming into Houston in September, becoming the latest robotaxi operator jockeying for local riders. Initially, self-driving retrofitted SUVs with safety drivers on board will serve downtown Houston, centrally located tourist hotspots, and certain residential neighborhoods. The SUVs will test Houston roads before Zoox rolls out autonomous robotaxis here, the company says. Continue reading.

10 Houston billionaires land on Forbes' 2026 list of richest Americans

The richest billionaires in America have a collective worth of $8 trillion in 2026, a staggering $1.4 trillion increase since last year, says Forbes. American billionaires are so wealthy that it now takes an unprecedented $4.4 billion net worth to be considered one of the richest people in the country. And one local billionaire has regained the title as Houston's wealthiest resident. Oil tycoon Jeffery Hildebrand, 67, now reigns as the No. 1 richest Houstonian, the 9th richest Texan, and the 88th richest person in America for 2026. Continue reading.

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