Overheard: What Houston corporates are looking for from startups

eavesdropping at the ion

At its annual Activation Festival, the Ion hosted a conversation about the relationship between corporates and startups. Photo courtesy of Shannon O'Hara/the Ion

Hundreds of innovators from Houston and beyond flocked to the Ion's annual Activation Festival, and one of the topics discussed at the series of programming was the relationship between corporates and startups.

One of Houston's points of pride is having the third most Fortune 500 companies headquartered here, but how can the city's innovation ecosystem take advantage of that market? And, on the other side of it, how can corporates make the most of Houston innovators?

At a panel on May 17 entitled "Corporate-Startup Partnerships: How to Build Them, Sustain Them, and How They’re Key to Fast-Tracking Innovation and Growth," three corporate leaders explained how they navigate relationships with startups and how cultivating these opportunities is key to the future of business.

Here are a few of the discussion's highlights.

“Investing in the startup community generally, you’re never going to have a line of sight of where that value is going to come back. You can expect it — I’m not saying it’s altruism, it just comes back in forms that you might not appreciate.”

— Scott Gale, executive director of Halliburton Labs says, explaining that corporate contribution doesn't just have to be financial.

“Ask for advice, don’t ask for money. Show up. Be curious. If you think a corporate is the right potential customer for you, spend the time to try to understand what the people are, who the champions are, what motivates them, and what they need to do to be successful.” 

— Tom Luby, director of TMC Innovation says, noting that it's tried-and-true advice, but still important to remember.

“The person who takes the most risk is the lead adopter — the lead user. That person puts their assets and their name on the line.”

— Nazeer Bhore, global manager, tech scouting, innovation and ventures at ExxonMobil Technology and Engineering, says. “What we bring to the table for startups is all the resources we have — technical resources, assets, use cases, testing facilities, and, of course, funding. Irrespective of what stage you’re in, or how many adjacencies you are, we’re always happy to engage with you," he explains. "The key is for us is to be a lead user.”

“The opportunity for us is to be generalists across a lot of different spaces and then work with our specialists to take a deeper dive. We listen to the market and try to find things our corporate partners or entrepreneurs are interested in and then surround them with the type of things they need to be successful. In many case, talent and expertise are top of that list.”

— Luby says, explaining the nature of the TMC's various programs, from creating startup tech directly and supporting them through their accelerators and even seeding them through the TMC Venture Fund.

“What startups bring is a lot of different ideas — but startups are temporary organizations that’s looking for a scalable and repeatable business model. And we’re not just interested in just the technology, but the business model.”

— Bhore says about what ExxonMobil looks for.

“The flywheel is spinning here in the city of Houston. The next five years are going to be incredibly exciting.”

— Gale says, explaining how much has changed in the past few years in Houston's innovation ecosystem.

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The Ion named three corporate partners ahead of its annual innovation-focused festival. Photo courtesy of the Ion

Houston innovation hub adds Oxy, United, and Woodside as partners

onboarding

Houston’s Ion innovation hub has recruited three heavyweight corporate partners, the hub announced earlier this week.

The new partners are:

  • Houston-based energy company Occidental (known as Oxy).
  • United Airlines Ventures, the sustainability-focused VC arm of Chicago-based United Airlines. United operates a major hub in Houston.
  • Australia-based Woodside Energy, which maintains an office in Houston.

Oxy, United Airlines Ventures, and Woodside will share their expertise in support of Ion’s mission to transform Houston into a global innovation ecosystem, according to an Ion news release. In addition, they will participate in Ion programming and network with Ion affiliates. Executives from all three of the new partners will serve on the Ion Leadership Advisory Roundtable.

“Welcoming our newest partners into Ion’s ecosystem is a further testament to our momentum in the aerospace and energy transition,” says Jan Odegard, who became executive director of the Ion in 2021 after a year of holding the interim position. “Each organization brings their own culture of innovation that aligns with what we are doing at the Ion.”

Michael Leskinen, president of United Airlines Ventures, says the VC firm believes “the Ion will be the epicenter for Houston’s rapidly growing innovation community — a one-stop shop to share ideas, foster startups, and to develop relationships with Houston’s brightest companies and academia.”

Oxy, United Airlines Ventures, and Woodside join Ion corporate partners such as:

  • Aramco Americas
  • Baker Botts
  • BP
  • Chevron
  • ExxonMobil
  • Global Custom Commerce
  • Intel
  • Microsoft
  • Transocean

The Ion announced the new corporate partners in advance of the second annual Ion Activation Festival, set for May 17-19. The Ion and Rice Management Co. host the festival, which shines a spotlight on entrepreneurship and innovation in Houston.

Activities will take place primarily at the Ion’s 16-acre campus. To register for the festival, visit the Ion’s website.

The inaugural festival, held in 2022, drew more than 2,500 attendees.

Paul Cherukuri, vice president of innovation at Rice University, joins the Houston Innovators Podcast. Photo via Rice.edu

This Houston innovator is set on bringing more innovation off campus and into the world

houston innovators podcast episode 180

Rice University was founded on a mission of an "unfettered pursuit of knowledge," says Paul Cherukuri, the inaugural vice president for innovation at Rice University. And that goal is specifically designed to be "for the greater good of society," — especially in Houston.

"Rice is right in the middle of one of the greatest cities in the world," Cherukuri says on this week's episode of the Houston Innovators Podcast. "Houston is special on so many levels that it's ridiculous that no one outside of Houston seems to get that. ... We have a moral responsibility as Rice to do more for this city and the country."

Among the top action items on this overarching mission Rice is on is ensuring that the Rice University's inventions and research that have the potential to make the world a better place are able to commercialize to deliver on that impact.

For decades, university research that made it out into the world did so in two ways: papers and patents. While those two avenues are reliable and on going, they take a while. And, as Cherukuri says, the world needs innovative solutions quicker than ever. Cherukuri is focused on expanding those pathways so that more of this innovation — which he describes as invention and commercialization — to come to fruition.

One of the ways Cherukuri is hoping Rice innovators get "beyond the hedges" of the university, as he describes it, is through the Rice Nexus, a hub within the Ion that Cherukuri announced last month. He says Rice is leasing space in the hub, which is owned and operated by Rice Management Company.

"It's a two-way street," Cherukuri says. "We're going to solve problems out in the real world and get those solutions to scale, and we'll be able to find new problems in the real world and bring them inside of Rice and create that new tech. We want to be able to make solutions."

The idea is to create a bridge between the university and the Ion so that more innovation and research can be shared between the campus and Houston's innovation ecosystem.

"We've got so much technology in our labs that we've never shared with the world," Cherukuri says. "We're going to demonstrate that in the Ion."

Also important to Cherukuri is that other universities have a seat at the table, too.

"The Ion represents this catalyst — it's an aggregator and concentrator of excellence for around the city," Cherukuri says. "We're designing the place so that we can connect to the world better."

Hear more of Cherukuri's thought leadership on Houston, Rice University, and the challenges of advancing research and technology to address society's greatest needs on the podcast. Listen to the interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.


David Cordúa, right, leads The Lymbar. Photo by Dylan McEwan

Houston restaurant royalty reveals details of at new Ion eatery

coming soon

A veteran Houston chef’s new Midtown bar and restaurant is taking shape. When it opens later this fall, The Lymbar will mark chef David Cordúa’s return to Houston's dining scene.

Cordúa's name is well known to Houston diners. The chef worked with his father, legendary Houston restaurateur Michael Cordúa, at Cordúa Restaurants — the hospitality group behind Churrascos, Americas, and Amazon Grill — before the duo parted ways with the company in 2018. They're teaming up again on this new project.

Located inside The Ion, Rice University’s innovation district in the former Sears in Midtown, The Lymbar describes itself as an all-day neighborhood craft cocktail bar and restaurant. Named for the street in Meyerland where Cordúa grew up, the restaurant will serve an eclectic menu of Latin and Mediterranean-inspired dishes in a space designed by local firm Gin Design Group (Eunice, Daily Gather).

“The Ion already has an exciting buzz of ‘greenergy’ with great minds, start-ups and entrepreneurs coming together. The Lymbar will be their living room,” Cordúa said in a statement. “The vibe is ‘Golden Girls Chic’ with inspiration from childhood nostalgia like ‘Where the Wild Things Are’ and Shel Silverstein.”

Cordúa provided CultureMap with a preview of some of the menu items he plans to serve at The Lymbar. Those looking for a bar snack may order the 'Rosespud', oversized potato and plantain chips served with dips such as onion dip, chimichurri, and red curry romesco or items such as foie gras doughnut holes, Monte Cristo empanadas with raspberry dill vinaigrette, and sweet corn flan with Cracker Jacks. The truffle twinkie that won him the top prize at the first Truffle Masters competition will also be available.

Meals will begin with seasonal small plates such as fresh corn gnocchi with smoked tomato sauce, labneh and basil as well as rotating flatbreads like caramelized onions with new potatoes. Entree options include a stuffed chicken ballotine with sherry cream sauce and morels that draws upon the chef’s French training or go South American with a dish like arroz tumbado with oven-roasted branzino.

Expect to see The Lymbar’s build-your-own-taco boards on Instagram. They’ll combine proteins such as chicken shawarma, achiote pork belly, and sesame-seasoned tri-tip with basmati rice and house sourdough pita.

The chef has recruited an experienced group to help him open the restaurant. They include: executive chef Adolfo Lopez, Jr. (Brenner’s on the Bayou, Churrascos); general manager Jaime Rangel (Cordúa Restaurants); manager Travis Wingate (Churrascos, La Griglia); and bar manager Sean Stapleton (The Refuge in the Woodlands).

“We’re the lobby bar of The Ion,” Cordúa added. “We’ll be a place that celebrates the creativity and innovative spirit that makes Houston one of the best cities in the world.”

Already home to a location of Common Bond On-The-Go and Second Draught, a craft beer bar, The Ion will also soon welcome Late August, a Afro-Asian restaurant from Houston chef and Top Chef finalist Dawn Burrell.

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This article originally ran on CultureMap.

The Ion has announced its latest corporate partner — and more Houston innovation news. Photo courtesy of the Ion

Ion names latest partner, Houston startup raises more funding, and more local innovation news

short stories

As Houston ramps up for fall, the city's innovation news has followed suit, and there might be some headlines you may have missed.

In this roundup of short stories within Houston startups and tech, Houston investors announce new deals in sports and energy tech, veterans can apply for new grant program, and more.

The Ion announces latest partner

The Ion has named its latest partner. Image courtesy of the Ion

The Ion Houston announced that Switzerland Transocean has joined on as an affiliate partner. The oil and gas company joins other corporate partners — including Chevron, Baker Botts, Microsoft, and more — in providing programming and resources for the Ion community and taking a seat at the Ion’s Roundtable.

Transocean's Houston office is in the Energy Corridor.

Houston-based Codenotary has expanded its series B fundraising round

Codenotary's software enables tools for notarization and verification of the software development life cycle. Photo via Getty Images

A Houston software startup that raised $12.5 million earlier this year has announced additional funding of $6 million. Codenotary, whose technology helps secure software supply chains, closed its series B round in January. The fresh funding brings the company's total investment raised to $24 million — thanks to investors Bluwat and Elaia.leaders and following a series A round that was announced in 2020.

Codenotary, formerly known as vChain, was founded in 2018 by CEO Moshe Bar and CTO Dennis Zimmer. The additional capital, which will go towards scaling up sales in the U.S. and Europe as well as entering the Asian market, was raised as an extension of the series B round.

“Software supply chains are under constant attack and so every enterprise is looking for effective ways to protect their valuable software assets,” says Bar in a news release. “The additional capital will help us expand faster – increasing our ability to roll out additional features and build out our worldwide sales efforts that includes our partner network. Not every startup company is able to do that right now but we’re fortunate to have good growth and the right investors behind us.”

Houston-based energy investor announces latest portfolio company

Here's Energy Transition Ventures' latest investment. Image via Getty Images

Energy Transition Ventures, a Houston-based investment firm, has announced its latest investment. ETV led Rutgers University-spinout RenewCO2's $2 million seed round.The startup has created a "novel catalyst technology to convert carbon from hard-to-abate sectors and transform it into a feedstock for carbon-negative, plastic monomers at a fraction of the cost of plastics derived from fossil sources," per a news release.

Including this latest seed round, the New Jersey-based cleantech company has raised $10 million in grants and investment. RenewCO2 hops to start supplying its eCUT electrolysis systems to customers by 2025.

"Converting CO2 directly into negative carbon products is a game changer for the climate. With low-cost renewable power, combined falling costs and advancements in electrolysis, the RenewCO2 has the opportunity to be world-changing," says Neal Dikeman, co-founder and partner of Energy Transition Ventures. "They are completely rewriting how we make plastic and chemical products and how these industries will handle carbon emissions, regardless of the price of carbon or credits. We are excited about power to chemicals and working to use renewable energy to make CO2 the low-cost chemicals feedstock of the future, not the present pollutant."

Grants open for veterans

Veteran-owned businesses can apply for this grant. ​Photo via Getty Images​

National nonprofit Founders First CDC, which exists to empower expansion in diverse founder-led, revenue-generating businesses, has announced that applications are open online for qualified individuals to apply to its 2022 Stephen L. Tadlock Fund – a grant program to support U.S. veteran small business owners. Twenty-five veterans will receive a $1,000 grant.

To be eligible, the company’s founder must be a U.S. military veteran, have an active U.S.-based business, and employ between 2 and 50 employees, per a news release. Applications are open through October 18, and recipients will be announced on Veterans Day, November 11, 2022.

“Given the current state of our economy, small business owners are feeling the brunt of the rising cost of living, inflation and the challenges to provide goods and services for their customers,” says Shaylon Scott, executive director of Founders First, in the news release. “As our founder, Kim Folsom has strong ties to the military through her brother’s service in the U.S. Navy, this particular grant is incredibly special to Founders First, as we’re able to help veteran business owners by investing in their businesses during uncertain economic times. Grants such as these, no matter how large or small of an investment, are a vital and impactful way to help sustain businesses and provide growth opportunities, and we are incredibly proud to support veterans throughout the country during this critical time.”

The judging committee for the Stephen L. Tadlock Grant includes a panel of distinguished veterans, representing multiple branches of service.

Local investment group focuses next fund on sports tech

UCN is focused on sports tech. Image via UCN

The Urban Capital Network — a Houston-based organization focused on democratizing startup investment — has focused its most recent fund on sports tech. The fund, which will raise $500,000 to $1 million, will focus on sports tech businesses, including the first two investments in National Cycling League and Screen Skinz. The National Cycling League is innovating cycling with real and virtual interaction. Screen Skinz has created a new kind of screen protector and has been licensed by several sports entities. UCN investors can be a part of the fund for as little as $5,000.

The new Dream Lab from Teach For America Houston will take 25 ninth graders to the Ion for a mini-innovation accelerator. Image courtesy of TFA

National nonprofit launches Houston innovation lab for kids

dreaming up innovation

Teach For America's Houston chapter has announced a new initiative for children to check out educational opportunities within innovation.

TFA Houston's Network Learning and Innovation Hub is opening a new space, called The Dream Lab. The lab is a set of immersive spaces where students leverage their imagination and creativity to innovate and solve problems affecting their communities.

“The Dream Lab is one of the novel ways we’re re-imagining the ways we meet the needs of Houston’s most vulnerable students and communities,” says Sarah Essama, founder of The Dream Lab and director of social innovation at Teach For America Houston, in a news release. “It introduces a non-traditional approach to learning so that students are better equipped to handle the complexities of an ever-changing world.”

This Friday, the new concept is rolling out to high school students in partnership with DivInc Houston, a nonprofit focused on social and economic equity in entrepreneurship, and 25 ninth graders will get to spend the day at the Ion for a mini-innovation accelerator. The students will be tasked to creatively solve problems in their own communities.

“If there is anything we have learned over the last two and a half years, it’s the need to be innovative, and it’s a skill we must teach our younger generations so they can be adequately prepared for the future,” says Tiffany Cuellar Needham, executive director of Teach For America Houston, in the release. “We look forward to growing The Dream Lab initiative as we continue exploring ways to re-invent and re-imagine what schools can look like for students.”

TFA, which has operated out of Houston for over 30 years, has hosted two other Dream Labs for fourth graders in Houston. Those students were tasked with using technology to design their innovative dream space, and TFA Houston receved positive feedback from participants.

The Dream Lab is right in line with Teach For America Houston’s quest to create educational equity for all students regardless of their socioeconomic and cultural backgrounds.

“All students should have access to education that prepares them to become leaders and change-makers of tomorrow. While we have made great progress on this front, we know we have a lot more work ahead of us. Programs like Dream Lab will help us realize our mission of ensuring that one day all children in our country will have the opportunity to attain an excellent education,” says Essama.

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3 Houston innovators to know this week

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Editor's note: Every week, I introduce you to a handful of Houston innovators to know recently making headlines with news of innovative technology, investment activity, and more. This week's batch includes an e-commerce startup founder, an industrial biologist, and a cellular scientist.

Omair Tariq, co-founder and CEO of Cart.com

Omair Tariq of Cart.com joins the Houston Innovators Podcast to share his confidence in Houston as the right place to scale his unicorn. Photo via Cart.com

Houston-based Cart.com, which operates a multichannel commerce platform, has secured $105 million in debt refinancing from investment manager BlackRock.

The debt refinancing follows a recent $25 million series C extension round, bringing Cart.com’s series C total to $85 million. The scaleup’s valuation now stands at $1.2 billion, making it one of the few $1 billion-plus “unicorns” in the Houston area.

Cart.com was co-founded by CEO Omair Tariq in October 2020. Read more.

Nádia Skorupa Parachin, vice president of industrial biotechnology at Cemvita

Nádia Skorupa Parachin joined Cemvita as vice president of industrial biotechnology. Photo courtesy of Cemvita

Houston-based biotech company Cemvita recently tapped two executives to help commercialize its sustainable fuel made from carbon waste.

Nádia Skorupa Parachin came aboard as vice president of industrial biotechnology, and Phil Garcia was promoted to vice president of commercialization.

Parachin most recently oversaw several projects at Boston-based biotech company Ginkjo Bioworks. She previously co-founded Brazilian biotech startup Integra Bioprocessos. Read more.

Han Xiao, associate professor of chemistry at Rice University

The funds were awarded to Han Xiao, a chemist at Rice University.

A Rice University chemist has landed a $2 million grant from the National Institute of Health for his work that aims to reprogram the genetic code and explore the role certain cells play in causing diseases like cancer and neurological disorders.

The funds were awarded to Han Xiao, the Norman Hackerman-Welch Young Investigator, associate professor of chemistry, from the NIH's Maximizing Investigators’ Research Award (MIRA) program, which supports medically focused laboratories. Xiao will use the five-year grant to advance his work on noncanonical amino acids.

“This innovative approach could revolutionize how we understand and control cellular functions,” Xiao said in the statement. Read more.

Houston chemist lands $2M NIH grant for cancer treatment research

future of cellular health

A Rice University chemist has landed a $2 million grant from the National Institute of Health for his work that aims to reprogram the genetic code and explore the role certain cells play in causing diseases like cancer and neurological disorders.

The funds were awarded to Han Xiao, the Norman Hackerman-Welch Young Investigator, associate professor of chemistry, from the NIH's Maximizing Investigators’ Research Award (MIRA) program, which supports medically focused laboratories.

Xiao will use the five-year grant to develop noncanonical amino acids (ncAAs) with diverse properties to help build proteins, according to a statement from Rice. He and his team will then use the ncAAs to explore the vivo sensors for enzymes involved in posttranslational modifications (PTMs), which play a role in the development of cancers and neurological disorders. Additionally, the team will look to develop a way to detect these enzymes in living organisms in real-time rather than in a lab.

“This innovative approach could revolutionize how we understand and control cellular functions,” Xiao said in the statement.

According to Rice, these developments could have major implications for the way diseases are treated, specifically for epigenetic inhibitors that are used to treat cancer.

Xiao helped lead the charge to launch Rice's new Synthesis X Center this spring. The center, which was born out of informal meetings between Xio's lab and others from the Baylor College of Medicine’s Dan L Duncan Comprehensive Cancer Center at the Baylor College of Medicine, aims to improve cancer outcomes by turning fundamental research into clinical applications.

They will build upon annual retreats, in which investigators can share unpublished findings, and also plan to host a national conference, the first slated for this fall titled "Synthetic Innovations Towards a Cure for Cancer.”

Houston neighbor ranks as one of America's most livable small cities

mo city

Some Houston suburbs stick out from the rest thanks to their affluent residents, and now Missouri City is getting time in the spotlight, thanks to its new ranking as the No. 77 most livable small city in the country.

The tiny but mighty Houston neighbor, located less than 20 miles southwest of Houston, was among six Texas cities that earned a top-100 ranking in SmartAsset's 2024 " Most Livable Small Cities" report. It compared 281 U.S. cities with populations between 65,000 and 100,000 residents across eight metrics, such as a resident's housing costs as a percentage of household income, the city's average commute times, and the proportions of entertainment, food service, and healthcare establishments.

According to the U.S. Census Bureau, Missouri City has an estimated population of over 76,000 residents, whose median household income comes out to $97,211. SmartAsset calculated that a Missouri City household's annual housing costs only take up 19.4 percent of that household's income. Additionally, the study found only six percent of the town's population live below the poverty level.

Here's how Missouri City performed in two other metrics in the study:

  • 1.4 percent – The proportion of arts, entertainment, and recreation businesses as a percentage of all businesses
  • 29.9 minutes – Worker's average commute time

But income and housing aren't the only things that make Missouri City one of the most livable small cities in Texas. Residents benefit from its proximity from central Houston, but the town mainly prides itself on its spacious park system, playgrounds, and other recreational activities.

Missouri City, Texas

Missouri City residents have plenty of parkland to enjoy. www.missouricitytx.gov

The Missouri City Parks and Recreation Departmen meticulously maintains 21 parks spanning just over 515 acres of land, an additional 500 acres of undeveloped parkland, and 14.4 miles of trails throughout the town, according to the city's website."Small cities may offer cost benefits for residents looking to stretch their income while enjoying a comfortable – and more spacious – lifestyle," the report's author wrote. "While livability is a subjective concept that may take on different definitions for different people, some elements of a community can come close to being universally beneficial."

Missouri City is also home to Fort Bend Town Square, a massive mixed-use development at the intersection of TX 6 and the Fort Bend Parkway. It offers apartments, shopping, and restaurants, including a rumored location of Trill Burgers.

Other Houston-area cities that earned a spot in the report include

Spring (No. 227) and Baytown (No. 254).The five remaining Texas cities that were among the top 100 most livable small cities in the U.S. include Flower Mound (No. 29), Leander (No. 60), Mansfield (No. 69), Pflugerville (No. 78), and Cedar Park (No. 85).

The top 10 most livable small cities in the U.S. are:

  • No. 1 – Troy, Michigan
  • No. 2 – Rochester Hills, Michigan
  • No. 3 – Eau Claire, Wisconsin
  • No. 4 – Franklin, Tennessee
  • No. 5 – Redmond, Washington
  • No. 6 – Appleton, Wisconsin
  • No. 7 – Apex, North Carolina
  • No. 8 – Plymouth, Minnesota
  • No. 9 – Livonia, Michigan
  • No. 10 – Oshkosh, Wisconsin

The report examined data from the U.S. Census Bureau's 2022 1-year American Community Survey and the 2021 County Business Patterns Survey to determine its rankings.The report and its methodology can be found on

smartasset.com

.

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