Breaking down Houston's 4 new startup accelerator programs

Excelling in accelerating

Houston has seen four new accelerators enter the market this year. Photo by Zview/Getty Images

It's official — 2019 is the year of accelerators in Houston. Four different accelerator programs have announced plans to launch Houston programs this year so far — and they are all bringing something different to the table.

All four of the programs represent global programs or big companies recognizing the potential in Houston, which, according to Yael Hochberg, head of the Rice University Entrepreneurship Initiative, is a key part of the equation.

"When you're talking about a place like Houston, what we need here right now is interest from the outside," Hochberg says. "We need some certification by people from the outside that in fact this is a destination for innovation and entrepreneurship."

Houston's most successful accelerator has been homegrown — right out of the Texas Medical Center. TMCx is on its ninth cohort since it launched in 2014.

Also founded in Houston, SURGE Accelerator had a different fate. It launched in 2011 and closed in 2016. Hochberg says there are a number of reasons for the program's demise including disengaged corporations.

"I do feel there's a lot of opportunity around this, and I don't think we should look at SURGE as some sort of indicator of what will happen to an accelerator in the city," she says. "If anything, I would look at TMCx and look at the potential that we see from that."

The biggest benefit to these accelerator programs, Hochberg says, is the new influx of startups that come to Houston. It's not only the accelerators' cohorts, but just the feasibility of the success and resources available. More startups translates to more investments.

"When you have startup activity and good startups, then money, private investment money will follow," Hochbergs says. "Private investment money doesn't just show up."

But bringing in these programs puts the pressure on the city to focus on the environment it's providing new companies and talent. Innovative companies thrive in major metros with things like protected bike lanes, city living, sustainability — and Houston needs to work on these things, Hochberg says, adding that Houston's ability to boast on its single-family homes is less and less attractive to younger demographics.

Building the city up with these types of infrastructure is going to be key when it comes to retaining these startups that accelerators bring in.

"We can create accelerators from here until tomorrow," Hochberg says. "People will send a couple of people down for two days a week to Houston sit at the accelerator, but they'll keep their company somewhere else and not actually move to Houston. Maybe if you're lucky, they'll open up like a little satellite office. We don't want that."

So, what exactly are the differences between these four new startup accelerators? Here's a breakdown of each.

MassChallenge Texas

Photo via greenstreetdowntown.com

MassChallenge Texas first announced its Houston program in January. The Boston-based accelerator program is currently in its final phase of deciding its inaugural cohort. The program is for early stage companies, and is industry agnostic. Jon Nordby, former director of strategy at Houston Exponential, leads the Houston program as managing director.

Launch: July 2019
Location: Downtown Houston
Number of cohort companies: 25
Length: 6 weeks — July through August
Origin: Boston
Requirements: The program looks for applicants that haven't raised more than $500,000 in equity-based funding and have generated less than $1 million in revenue over the past year.
Equity requirements: None.
Prizes on the line: Free office space, mentorship, and, usually, monetary prizes. (Currently, the organization hasn't confirmed cash prizes for the inaugural cohort.)

Founder Institute

Houston's new Founder Institute chapter has teamed up with Alice. Image courtesy Founder Institute

Founder Institute Houston is the earliest stage accelerator that's not associated with a university. Companies must be in the pre-funding stage of growth, and, while 30 companies will be chosen per cohort, only a fraction will complete the full 14 weeks. The Silicon Valley-originated concept now has chapters in almost 200 cities around the world. FI announced its new chapter in Houston in March after first launching in Austin.

Launch: May 2019
Location: Downtown (out of Station Houston)
Number of cohort companies: 30
Length: 14 weeks
Origin: Silicon Valley
Requirements: Company must be pre-funding.
Equity requirements: 4 percent
Prizes on the line: Cash prizes, discounts, access to worldwide alumni network, etc.

Plug and Play Tech Center

Ahead of entering the Houston market later this year, Silicon Valley's Plug and Play hosted three days of programming surrounding innovation in energy and health care. Natalie Harms/InnovationMap

Plug and Play Tech Center confirmed they were entering the Houston market earlier this month. The Silicon Valley organization has 30 locations all over the world and plans to open five new locations in the United States over the next six months to a year — one being Houston.

Launch: Fourth quarter 2019
Location: Currently scouting for a location.
Number of cohort companies: 20
Length: Three months, twice a year.
Origin: Silicon Valley
Requirements: The program is stage agnostic, but cohorts are focused on a specific industry. Houston's likely to be health and energy/sustainability, though nothing is set in stone.
Equity requirements: None
Prizes on the line:In-house venture capital opportunities, corporate connections, etc.

Ion Smart Cities Accelerator

The historic Sears building in Midtown will transform into The Ion, a Rice University-backed hub for innovation. Courtesy of Rice University

In April, the city announced that Microsoft and Intel were backing a Smart Cities Accelerator program that would accelerate companies with solutions to some of Houston's key problems. The first cohort will be focused on solutions within resilience and transportation, but each cohort will have a different set of issues. With these rotating themes, every cohort will be different.

Launch: September 2019
Location: Station Houston (then later The Ion, when it opens)
Number of cohort companies: 10
Length: 10 months
Requirements: The first set of companies will be chosen for their ability to solve problems within mobility and transportation in Houston. (Other cohorts will have other topics.)
Prizes on the line: Pilot programs and permanent business from the city of Houston.

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Houston founder taps into AI tech to create game-changing healthy eating platform

there's an app for that

After many years of living to eat, a large swath of American society is now facilitating a seismic shift to the healthier alternative, eating to live.

But here’s the rub: eating healthy is confusing, time consuming and, unfortunately, oftentimes pricey.

So, anyone that can come in and cut through the healthy eating machine can carve out a necessary niche in the marketplace.

Enter Houstonian Mark Semmelbeck, founder and CEO of A Better Meal, a platform created to help busy families plan healthy meals easier and to make gradual improvements to their health and well-being.

“My vision is to use rapidly expanding AI technology together with the knowledge and wisdom of an active community to take the stress out of meal planning and improving nutrition,” says Semmelbeck, a seasoned oil and gas executive with over 30 years of experience in founding companies. “While developing the technology for the app, my daughter gave me two beautiful grandkids who both have significant food allergies. Combine that with the fact I now have five cardiac stents and the significance of eating well while paying attention to the details has only grown in importance.”

All-in-one app

Billed as the one-stop meal planning companion, A Better Meal promises users no additional stress in finding the time to look for recipes, make grocery lists, or prepare meals quickly. Families need healthy options and to be able to provide them with ease and that’s where this new application comes in.

“So, when I started A Better Meal, I wanted to answer two questions or help people answer two questions,” says Semmelbeck. “That is, a family gets home in the evening and they don't want to order out and they don't want to go out to eat, they can open up this app and it can tell them, ‘here's three things that you can make with what you have on hand that you like.’ The other question is, 'how can I make small changes to how I prepare my food, how I cook it, the ingredients that I use and small changes that can make my meals healthier.'

“So that was where we started. And then as we built the app out, got a minimum viable product out to people and in front of them, and we started seeing more as they used the app, what they actually wanted when they went to a meal planning app, so the last year and a half has been a process of refining the app to really set what people want in a meal planning and recipe app.”

When users download the app, which is a subscription-based tool, it starts with the simple things like, how many meals they’d like per day, if they have preferences in the types of food that they like, and, of course, if they have allergies.

Custom experience

Semmelbeck says that users are able to personalize the app and set up their own dashboard with meal planning. You can also use the app to analyze a new recipe you'd like to try.

"You can take a picture of, say a recipe written down, and you'd like to put that in your own personal database, you can take a picture of it, and it will interpret it and bring that into the app and then the app will calculate the calories and macros and the macro nutrients that that meal has in it so that you can see that information also," he says.

When it comes to food and meal planning, inserting the word “healthy” invariably invokes a litany of personal definitions, up to and including weight loss.

That definition isn’t wrong by any means, but for A Better Meal, it’s all about introducing healthier options into people’s everyday lives. The app won’t give you a specific diet to follow, but if users prefer a vegetarian, keto or paleo diet, the app will recommend recipes that will satisfy those disciplines.

“For a lot of people that's a huge help,” says Semmelbeck. “They just want to cook and eat healthier. They may like to have vegetarian days mixed in, but don't know where to find those recipes, the app can suggest recipes for a vegetarian meal. It can also recommend that substituting whole wheat flour for conventional flour for making pancakes, things like that.”

And for those users who don’t necessarily have a planned out starting place for meal preparation, they can search the internet or social media for meal plans and diets and then simply import those into the app.

“We also use AI to analyze recipes that would satisfy a certain type of diet that you would want to participate in,” says Semmelback. “But I will say that one of the main things we want to do is help you make small changes because again diets are great and a lot of people are on them, but few people maintain them for long periods of time because, in general, they can be very restrictive.

“So, we really want our goal to be able to help you make small changes with the things that you like to eat to make them healthier. And again, by healthy, certain kinds of fats are good, others you want to limit, certainly processed foods you want to limit, you want to limit the amount of added sugar, and you want to limit the amount of processed foods. That’s why we have our own nutritionist that helps us with those diets.”

Starting a journey

Currently, the nutritionist for A Better Meal is working just for the app in general, but as the platform grows, users will be about to ask direct questions or at least have access to educational materials about specific health issues, and specific diet recommendations for various health use.

“The app has been live for about a year and early on, we found that what people said they want is much different than what they actually use in the app. So, a lot of our work has been over the past year modifying the app, the way you move around in the app," says Semmelback. "We really want to use AI in ways that are helpful to people.

"I personally have dealt with heart disease, and I know that my doctor recommends less added sugar and processed foods. And so those are the kinds of things that we are using AI to do to help take recipes that you might like and make substitutions to those recipes so that they fit the kind of lifestyle you want," he continues. "What we're really concentrating on is the recipe part of the app and improving those and allowing them to be adaptable to the desires of the users. Finally, we really want to push into more education and more gamification where it actually makes it fun to use the app.”

Promising Houston startup expands energy efficiency product to Middle East, Singapore

big move

NanoTech Materials has announced a big expansion for its business.

The Houston company, which created a roof coating using nanotechnology that optimizes energy efficiency, has partnered with Terminal Subsea Solutions Marine Service SP to bring its products to the Gulf Cooperation Council and Singapore. TSSM will become the exclusive distributor and partner of Houston’s NanoTech Materials products, which will include the Cool Roof Coat, Vehicular Coat, and Insulative Coat for the GCC countries and Singapore.

NanoTech Materials technology that ranges from roof coatings on mid- to low-rise buildings to shipping container insulation to coating trucks and transportation vehicles will be utilized by TSSM in the partnership. NanoTech’s efforts are focused on heat mitigation that can reduce energy costs, enhance worker safety, and minimize business risks in the process.

“Businesses and communities within the GCC and Singapore feel the impact of extreme temperatures and longer Summers more acutely than any other region in the world,” Mike Francis, CEO of NanoTech Materials, says in a news release. “We have an opportunity to make a real impact here through reduced energy load, cooler and safer working conditions, and a reduced carbon emissions output from the hottest, driest place on earth. We are incredibly excited to be partnering with our colleagues at TSSM to bring this powerful technology to the region.”

One of the areas that will benefit from this collaboration is the Middle East. The GCC region is characterized by a desert climate, which has average annual temperature reaching 107.6°F and summer peaks climbing as high as 130°F. The effects of these extreme conditions can be dangerous for workers especially with strict labor laws mandating midday work bans under black flag conditions, which can result in productivity losses as well.

NanoTech’s proprietary technology, the Insulative Ceramic Particle (ICP), will be used to address challenges in energy efficiency and heat control in the logistics and built environment sector. The platform can be integrated into many applications, and the impact can range from reducing greenhouse gas emissions to protecting communities that are wildfire-prone. The core of the technology has a lower conductivity than aerogels. It also has a “near-perfect emissivity score” according to the company. The NanoTech ICP is integrated with base matrix carriers; building materials, coatings, and substrates, which gives the materials heat conservation, rejection, or containment properties.

By combining the ICP into an acrylic roof coating, NanoTech has created the Cool Roof Coat, which reflects sunlight and increases the material's heat resistance. This can lower indoor temperatures by 25 to 45°F in single-story buildings and reduce the carbon emissions of mid to low-rise buildings. This can potentially equal energy savings from 20 percent up to 50 percent, which would surpass the average 15 percent savings of traditional reflective only coatings.

“This technology will have a huge impact on supporting the region's aggressive climate initiatives, such as Saudi Arabia’s Green Initiative, aiming to reduce carbon emissions by 278 million tons annually by 2030,” Jameel Ahmed, managing director at TSSM, says in the release. “The regional efforts to enhance climate action and economic opportunities through substantial investments in green technologies and projects are evident, and we are proud to be offering a product that can make a difference.”

NanoTech says its coating maintains its effectiveness over time and doesn’t suffer UV degradation issues which are helpful, especially in extreme weather conditions workers and businesses face in regions like the Middle East.

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This article originally ran on EnergyCapital.