5 most popular innovation stories in Houston this week

WHAT'S TRENDING

Houston has a unicorn, The Ion has its first academic partnership, innovators to know, and more top news of the week. Courtesy of Rice University

Editor's note: The new year is officially in full swing, with Houston innovation news coming in hot — from a Houston business reaching unicorn status, or $1 billion in valuation, to news coming out of innovation hubs. Here's what this week's top stories were.

3 Houston innovators to know this week

This week's innovators to know are focused on using artificial intelligence in data management, banking for startups, and 5G awareness in Houston. Courtesy photos

This year, Houston's innovation ecosystem is set to change tenfold — from the rise of 5G to burgeoning startup and entrepreneurial hubs emerging across town.

Today's featured innovators know a bit about these movements — from an entrepreneur using artificial intelligence in data management for his clients to a banking exec who went all-in on startups. Continue reading.Continue reading.

2 Houston startups land multimillion-dollar venture capital investments

Riversand and Gecko Robotics are starting of 2020 with fresh funds for scaling business. Pexels

Two Houston tech companies are starting off 2020 with fresh funds in their pockets — to the tune of millions and millions of dollars.

Houston-based Riversand raised an additional $10 million last month, and Gecko Robotics, which has an office in Houston, closed a $40 million series B round. Continue reading.

Local bank commits to Houston startup scene by setting up shop in The Cannon

As a part of a national trend, a Houston bank has moved into a space in Houston's largest coworking hub. Texas Citizens Bank/Facebook

Pasadena-based Texas Citizens Bank is getting cozy with current and potential customers at its new branch within The Cannon coworking campus.

Jimmy Allen, executive vice president and chief operating officer of Texas Citizens Bank, says the bank's new 3,900-square-foot location — its seventh branch in the Houston area — fits perfectly within The Cannon's 120,000-square-foot building, which Texas Citizens helped build. The branch opened in December 2019; the grand opening is planned for February 2020.

"Owner-operated businesses are both the genesis of our business model and [a] key customer segment served," says Allen, who was named to his position in September. "A subset of that group certainly includes young, relatively new companies, which favor the current trend in coworking or live-work-play communities." Continue reading.

The Ion names inaugural academics partner, course programming for Houston hub

Rice University's Glasscock school of Continuing Studies is the Ion's first academic partnership to be announced. Courtesy of Rice University

A burgeoning entrepreneurship hub has taken a major step forward in its development with the announcement of its first academic partner and coursework for the partnership.

The Ion has teamed up with Rice University's Glasscock School of Continuing Studies to bring programming to the to-be hub, which is expected to open in early 2021.

"We are thrilled to extend our programming to the Ion constituents and Houston's innovation ecosystem," says Robert Bruce Jr., dean of Rice's Continuing Studies school, in a news release. "Continuing education, whether that takes the form of an advanced certificate or a single course, is an important part of the innovation lifecycle, and we are excited to provide this to Houston's entrepreneurs."Continue reading.

Houston SaaS company achieves unicorn status following $125 million fundraising round

Houston-based HighRadius has reported reaching unicorn status following a $125 million raise. Photo via highradius.com

Following the closing of a $125 million series B investment round, a Houston software-as-a-service company is boosting a new title: Unicorn.

HighRadius, an artificial intelligence-powered fintech software company, has announced its unicorn status, which is defined as being valued at over $1 billion. The series B round, which achieved this status for HighRadius, was led by ICONIQ Capital, with participation from existing investors Susquehanna Growth Equity and Citi Ventures, according to a news release from the company.

"Today marks an important milestone for HighRadius and we're thrilled to have ICONIQ join us in our vision to modernize the Order to Cash space," says Sashi Narahari, founder and CEO of HighRadius, in a news release. "ICONIQ combines patient capital with a long-term vision of investing in category-defining businesses, and the firm has worked with some of the world's most successful tech entrepreneurs. We are building HighRadius into a self-sustaining, long-term category leader, and ICONIQ is a great partner for us in this journey." Continue reading.

This week's innovators to know are focused on using artificial intelligence in data management, banking for startups, and 5G awareness in Houston. Courtesy photos

3 Houston innovators to know this week

Who's who

This year, Houston's innovation ecosystem is set to change tenfold — from the rise of 5G to burgeoning startup and entrepreneurial hubs emerging across town.

Today's featured innovators know a bit about these movements — from an entrepreneur using artificial intelligence in data management for his clients to a banking exec who went all-in on startups.

Tony Nash, founder and CEO of Complete Intelligence

Courtesy of Complete Intelligence

Every company wishes they have a crystal ball when it comes to making business decisions, and while a physical iteration of that wish isn't possible, Tony Nash has developed the next best thing for his clients at his startup, Complete Intelligence.

Founded in 2015, Complete Intelligence is an AI platform that forecasts assets and allows evaluation of currencies, commodities, equity indices and economics. The Woodlands-based company also does advanced procurement and revenue for corporate clients.

"We've spent a couple years building this," says Nash in a recent InnovationMap interview. "We have a platform that is helping clients with planning, finance, procurement and sales and a host of other things. ... We built a model of the global economy and transactions across the global economy, so it's a very large, very detailed artificial intelligence platform." Read more.

Brian Richards, Houston innovation hub director at Accenture and board member at Houston Exponential

Courtesy of Accenture

The rise of 5G in Houston feels familiar to Brian Richards. He writes in a recent guest column that the development of the technology is similar to the moment in Houston's history when NASA landed a man on the moon.

There are a few similarities Richards expresses in his article, as well as providing more information about 5G itself, but the undeniable fact is 5G will create a lasting impact in Houston.

"Above all, as Houston continues to race toward building a world-class innovation ecosystem and a sustainable, thriving economy, we simply can't take our foot off the gas in the 5G race — much like the moon race," he writes. "It's an imperative that the region continue to lead in 5G network adoption and that our local industries and businesses envision, plan and develop new ways of working." Read more.

Jimmy Allen, executive vice president and chief operating officer of Texas Citizens Bank

Courtesy of Texas Citizens Bank

It's become a bit of a trend to see banks taking a bet on startups — Capital One, for instance, has even entered the coworking industry itself. And one Houston-area bank has become an early adopter of this trend locally.

Jimmy Allen, executive vice president and chief operating officer of Texas Citizens Bank, says the bank's new 3,900-square-foot location — its seventh branch in the Houston area — fits perfectly within The Cannon's 120,000-square-foot building in West Houston, which Texas Citizens helped build. The branch opened in December 2019; the grand opening is planned for January 2020.

"Owner-operated businesses are both the genesis of our business model and [a] key customer segment served," says Allen, who was named to his position in November. "A subset of that group certainly includes young, relatively new companies, which favor the current trend in coworking or live-work-play communities." Read more.

As a part of a national trend, a Houston bank has moved into a space in Houston's largest coworking hub. Texas Citizens Bank/Facebook

Local bank commits to Houston startup scene by setting up shop in The Cannon

Moving in

Pasadena-based Texas Citizens Bank is getting cozy with current and potential customers at its new branch within The Cannon coworking campus.

Aside from offering traditional banking products like loans and checking accounts, Texas Citizens serves as a financial consultant to startups that are occupants of The Cannon, according to Allen. Texas Citizens is now the official bank for The Cannon and Cannon Ventures, an angel investment network housed at the coworking space.

The Cannon is at 1334 Brittmoore Rd. in the Energy Corridor. It operates two other entrepreneurial hubs in Houston — one downtown and the other in the Post Oak area. Allen says branches could pop up in other locations of The Cannon.

"When we first opened the bank in 2006, our goal was to advise and assist owner-operated businesses … in the greater Houston area," Duncan Stewart, chairman and CEO of Texas Citizens, says in a release. "Our new location helps further that goal. This unique placement allows us to tap into new markets and assist more entrepreneurs in their financial and operational development."

Stewart plans to spend time at his bank's new branch at The Cannon, according to Texas Citizens. Irene Duque, senior vice president, manages the branch.

Texas Citizens' other branches are in the West University area of Houston as well as Pasadena, Baytown, Clear Lake, Nassau Bay, and Rosenberg. Its assets exceeded $540 million as of June 30, 2019.

Texas Citizens' outpost at The Cannon is part of a growing relationship between coworking spaces and banks. In some cases, banks are leasing vacant space to coworking tenants or are creating flexible office space within empty square footage, according to American Banker. In other cases, banks are tenants in coworking spaces, as is the situation with Texas Citizens at The Cannon.

One banking giant, Capital One, has entered the coworking sector in a significant way. The bank has established free-to-use coworking cafés that offer traditional financial services but also furnish access to Wi-Fi, charging stations, workspaces, community rooms, coffee, and pastries.

Across the country, Capital One operates roughly 40 cafés. None of the them are in the Houston area.

"The space feels WeWork-y, with marble tables, brand new chairs, spotless concrete floors, and private study rooms. The aesthetic is 'venture capital,'" a writer for Los Angeles magazine observed in November 2019 after visiting a Capital One Café.

The first Capital One Café opened in 2015 in Boston.

"In modeling the cafés, Capital One responded to what it heard from consumers: Bank branches were intimidating and stressful," the Wall Street Journal reported in November 2019. "At the cafés and branches, the employee dress code is relaxed, and customers can open accounts on iPads. The cafés also host community groups and hold workshops such as 'Talking Money With Your Honey,' which focuses on finances in relationships."

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SpaceX test rocket explodes in Texas, but no injuries reported

SpaceX Update

A SpaceX rocket being tested in Texas exploded Wednesday night, sending a dramatic fireball high into the sky.

The company said the Starship “experienced a major anomaly” at about 11 pm while on the test stand preparing for the 10th flight test at Starbase, SpaceX’s launch site at the southern tip of Texas.

“A safety clear area around the site was maintained throughout the operation and all personnel are safe and accounted for,” SpaceX said in a statement on the social platform X.

CEO Elon Musk ’s SpaceX said there were no hazards to nearby communities. It asked people not to try to approach the site.

The company said it is working with local officials to respond to the explosion.

The explosion comes on the heels of an out-of-control Starship test flight in late May, which tumbled out of control. The FAA demanded an investigation into the accident.

Houston ranks among top 5 cities for corporate HQ relocations in new report

h-town HQ

The Houston area already holds the title as the country’s third biggest metro hub for Fortune 500 headquarters, behind the New York City and Chicago areas. Now, Houston can tout another HQ accolade: It’s in a fourth-place tie with the Phoenix area for the most corporate headquarters relocations from 2018 to 2024.

During that period, the Houston and Phoenix areas each attracted 31 corporate headquarters, according to new research from commercial real estate services company CBRE. CBRE’s list encompasses public announcements from companies across various sizes and industries about relocating their corporate headquarters within the U.S.

Of the markets included in CBRE’s study, Dallas ranked first for corporate relocations (100) from 2018 to 2024. It’s followed by Austin (81), Nashville (35), Houston and Phoenix (31 each), and Denver (23).

According to CBRE, reasons cited by companies for moving their headquarters include:

Access to lower taxes
Availability of tax incentives
Proximity to key markets
Ability to support hybrid work

“Corporations now view headquarters locations as strategic assets, allowing for adaptability and faster reaction to market changes,” said CBRE.

Among the high-profile companies that moved their headquarters to the Houston area from 2018 to 2024 are:

Chevron
ExxonMobil
Hewlett-Packard Enterprise
Murphy Oil

Many companies that have shifted their headquarters to the Houston area, such as Chevron, are in the energy sector.

“Chevron’s decision to relocate its headquarters underscores the compelling advantages that position Houston as the prime destination for leading energy companies today and for the future,” Steve Kean, president and CEO of the Greater Houston Partnership, said in 2024. “With deep roots in our region, Chevron is a key player in establishing Houston as a global energy leader. This move will further enhance those efforts.”

According to CBRE, California (particularly the San Francisco Bay and Los Angeles areas) lost the most corporate HQs in 2024, with 17 companies announcing relocations—12 of them to Texas. Also last year, Texas gained nearly half of all state-to-state relocations.

In March, Site Selection magazine awarded Texas its 2024 Governor’s Cup, resulting in 13 consecutive wins for the state with the most corporate relocations and expansions.

In a news release promoting the latest Governor’s Cup victory, Gov. Greg Abbott hailed Texas as “the headquarters of headquarters.”

“Texas partners with the businesses that come to our great state to grow,” Abbott said. “When businesses succeed, Texas succeeds.”

CBRE explained that the trend of corporate HQ relocations reflects the desire of companies to seek new environments to support their goals and workforce needs.

“Ultimately, companies are seeking to establish themselves in locations with potential for long-term success and profitability,” CBRE said.

Rice University spinout lands $500K NSF grant to boost chip sustainability

cooler computing

HEXAspec, a spinout from Rice University's Liu Idea Lab for Innovation and Entrepreneurship, was recently awarded a $500,000 National Science Foundation Partnership for Innovation grant.

The team says it will use the funding to continue enhancing semiconductor chips’ thermal conductivity to boost computing power. According to a release from Rice, HEXAspec has developed breakthrough inorganic fillers that allow graphic processing units (GPUs) to use less water and electricity and generate less heat.

The technology has major implications for the future of computing with AI sustainably.

“With the huge scale of investment in new computing infrastructure, the problem of managing the heat produced by these GPUs and semiconductors has grown exponentially. We’re excited to use this award to further our material to meet the needs of existing and emerging industry partners and unlock a new era of computing,” HEXAspec co-founder Tianshu Zhai said in the release.

HEXAspec was founded by Zhai and Chen-Yang Lin, who both participated in the Rice Innovation Fellows program. A third co-founder, Jing Zhang, also worked as a postdoctoral researcher and a research scientist at Rice, according to HEXAspec's website.

The HEXASpec team won the Liu Idea Lab for Innovation and Entrepreneurship's H. Albert Napier Rice Launch Challenge in 2024. More recently, it also won this year's Energy Venture Day and Pitch Competition during CERAWeek in the TEX-E student track, taking home $25,000.

"The grant from the NSF is a game-changer, accelerating the path to market for this transformative technology," Kyle Judah, executive director of Lilie, added in the release.

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