Tradeblock's three co-founders have known each other since childhood. Photo via tradeblock.us

A Houston-based company is kicking it with some fresh funding with plans to expand development of its marketplace platform.

Unique sneaker trading platform, Tradeblock, has raised $8.9 million in funding from investment partners Courtside VC, Trinity Ventures, and Concrete Rose Capital. Per the news release, the company expects additional funding of around $4.5 million to its seed round.

Tradeblock — founded in 2020 by self-proclaimed "sneakerheads" and childhood friends Mbiyimoh Ghogomu, Tony Malveaux, and Darren Smith — will use the fresh funding to expand and improve its digital marketplace for shoes.

"Tradeblock is revolutionizing the way forward for the new emergent asset class of footwear," says Tradeblock angel investor Jason Mayden, former Nike and Jordan footwear designer and president of Fear of God Athletics. "The founding team's understanding of the nuances of culture and tech gives them an unfair advantage in the industry and the team’s desire to lead with inclusion, representation, and authenticity also provides them with unique and meaningful organic engagement."

Over the past two years, Tradeblock has grown to have over a million shoes listed online. The team has also grown, and Tradeblock's workforce is over 80 percent people of color.

“Black and brown communities have always been the backbone of the sneaker industry and sneaker culture,” says Ghogomu, who also serves as CEO. “Showing those folks that they can be the owners and operators of this industry as opposed to just consumers is both a point of pride and a deeply rooted responsibility for everybody at Tradeblock.”

Authentication is a priority for the company, and the fresh funding will go toward further development of this type of technology within the platform.

"The market for fake sneakers is itself a billion-dollar market. If you're trying to acquire a shoe that's worth hundreds or even thousands of dollars, you need to be absolutely certain that what you're getting is the real thing," Ghogomu previously told InnovationMap.

Tradeblock — launched in Houston by three childhood friends — coordinates sales of sneakers for collectors across the country. Image via tradeblock.us

Houston-based 'sneakerheads' kick off new app to revolutionize the biz

STEPPING UP

Mbiyimoh Ghogomu remembers the moment he fell in love with his first pair of sneakers in the eighth grade. Growing up, he says "frugality was a virtue" in his household. "I was not rocking heat on feet for most of my childhood," he explains. On a mission for new basketball shoes, he found a brand new pair of Adidas T-Mac IIs, and his entry into sneaker culture was sealed.

Like Ghogomu, his childhood friends Tony Malveaux and Darren Smith each had their own awakening into the sartorial fascination of sneakers. The self-proclaimed sneakerheads founded Tradeblock in 2020, a new sneaker trading platform that provides collectors with a secure way to collect and trade shoes. After a successful beta, the Houston-based startup has recently launched a new mobile app available for iOS and Android users.

Malveaux, co-founder and director of authentication, started growing his sneaker collection during his job at Footlocker and currently owns nearly 40 pairs.

"My first paycheck came the same day that the Foamposites dropped in the electrolime colorway and let's just say my check wasn't too much bigger than the retail price," says Malveaux.

The former retail employee was using the ESPN Trade Machine in 2009, a website that lets you play the role of a team manager by creating different trade scenarios for players, when the idea for Tradeblock came to him. Malveaux shared his idea with best friend Smith, co-founder and COO, and the two held it in their back pocket for a decade.

"An entrepreneur to his very core, D was slanging Pokemon and Yu-Gi-Oh cards all the way back in elementary school," says Ghogomu of Smith. "After spending a few years in the dark cubicles of corporate America following his college graduation, he realized that he would never be truly happy or fulfilled unless he was building his own thing," he says.

Smith eventually escaped those dark cubicles and approached Malveaux about making Tradeblock a reality. The two started an Instagram and began a cross-country trip, visiting every sneaker event they could to research the needs of the marketplace. To cover the cost of travel, they sold off the majority of the impressive sneaker collection they'd built over the years and sometimes slept in their car to avoid extra expenses.

That year, the two also brought in their high school friend Ghogomu as a co-founder and CEO.

Tradeblock's three co-founders have known each other since childhood. Photo via tradeblock.us

Tradeblock started with the three founders playing the middleman in trades through Instagram direct messages, and it soon grew into a fully functional web platform.

Kicks as currency

Sneaker collecting is no small expense, due in part to the enormous resale market. According to GQ, the coveted 2020 Dior x Air Jordan 1 sneakers retailed at $2,000 but skyrocketed to $10,103 at resale value. Even moderately priced items like the $140 Nike SB Dunk High "Reverse Skunk," a 4/20-themed release with a limited 420 pairs available, have a resale price of $4,500.

High demand and exclusivity have created a barrier to access. Some opportunists have even purchased online bots to scour websites for sneaker releases so they can make bulk purchases and resell the rest at premium costs.

"Besides the fact that nobody had taken on trading, which was already a known behavior in the sneaker community, we saw the exorbitant prices that sneakers were starting to sell at in the resell market," says Ghogomu. "We realized that a ton of true blue sneakerheads, people who were in the game for the love of kicks more than anything, were basically getting priced out of every shoe they wanted," he explains.

By providing a platform for sneaker collectors to trade shoes in their collection, the founders "could provide another outlet for them to acquire the shoes they wanted without having to spend next month's rent check," says Ghogomu.

The app allows you to explore other user collections, follow collectors to keep track of their newly added shoes, and create your own closet featuring your collection. "I think the biggest social aspect of our app today is the fact that sneakerheads can actually curate a unique profile and persona for themselves on Tradeblock, and then they can explore other sneakerheads' collections," says Ghogomu.

When wanting to pursue a trade, Tradeblock allows you to manage your offers from an inbox, review trade status, and review your trade history. Users can also negotiate monetary payment if a trade isn't quite equal with shoes alone.

Once a trade takes place, authentication is a priority.

"The market for fake sneakers is itself a billion-dollar market. If you're trying to acquire a shoe that's worth hundreds or even thousands of dollars, you need to be absolutely certain that what you're getting is the real thing," says Ghogomu.

To ensure customers are getting authentic sneakers, Tradeblock has a "two-factor authentication" where every shoe goes through a physical and digital inspection.

More than a throwback

Sneaker collecting dates back to the late 1970s, coinciding with the surge in popularity of the National Basketball League and the hip hop movement of New York City.

The first-ever Air Jordans were created in 1984 and worn exclusively by former NBA star Michael Jordan, and released to the public in 1985. Just last year, Jordan's original pair sold for a record $560,000 in a Sotheby's auction, according to Reuters.

Music heavily influenced a profusion of sneakerheads. Run-DMC released the popular song "My Adidas" in 1986, which stayed on top of the Billboard music charts for 16 weeks. The trend carried into the aughts, with the rapper Nelly debuting his 2000 hit "Air Force Ones."

The shoe style has even succeeded in permeating internet culture, with a slew of memes and influencers arriving to meet the moment.

"Damn Daniel," a viral video from 2016, has solidified its place in the ever-evolving online vault of cultural moments. The video which shows then-high schooler Daniel Lara's shoe collection led him to become one of TIME's "30 Most Influential People on the Internet" that year.

Sneakerheads have since found a community using online communication platforms like Instagram, Discord, and Facebook.

"We also noticed that sneakerheads were spending a ton of time on social media platforms showing off their kicks, exploring other people's collections, and just generally looking to connect with people who shared their passion for shoes," explains Ghogomu. "We thought that if we could capture that social energy in a platform that also facilitated trading, we could create something truly revolutionary for the culture," he says.

The most popular sneaker reviewers on YouTube have grown communities of hundreds of thousands of followers, earning a living off their connoisseurship. "Shoe-tubers are an integral part of the sneaker culture today. In many ways, they're like the sherpas of the sneaker world," says Ghogomu.

The growing social authority of sneakerheads has also helped fuel Tradeblock's launch. The company has seen success in driving awareness by creating an online community and building relationships with influential YouTubers.

Existing online sellers from eBay to Poshmark have provided a way for users to sell and buy items, but the process is transactional. Understanding the passionate community of collectors, Ghogomu says they wanted to "build not just a product, but a company and brand that genuinely put the people first and harkened back to the days when being a sneakerhead was just as much about the community as it was about the kicks in your closet."

Growing a community

Tradeblock currently has more than 23,000 collectors in its database, a number that is steadily increasing by the day. "What has really blown me away is just how supportive people have been from [the] jump," says Ghogomu.

The app currently has thousands of shoes in its database, including rare releases like the Nike Dunk Lobster collection and the Art Basel Jordan 1.

"We've even got a few pairs of the original Jordan 1s in the Chicago colorway from 1985… but you'll have to come correct if you want to trade for those," jokes Ghogomu.

Through the roadblocks that come with building a startup, Tradeblock users have been loyal.

"I genuinely couldn't count the number of times we've heard people say things like, 'I want to see y'all win,' but we never get tired of it," he continues.

"When you're trying to build something unlike anything else that exists in the world, it's easy to let doubt creep in. Any entrepreneur who says they've never asked themselves the question, 'Is this really possible or are we insane?' is lying to you," says Ghogomu. "I think that as people of color, those internal barriers are even higher because we have so few examples to look to in terms of seeing people who look like us building massively successful businesses," he continues.

As the company grows, the co-founders hope to strengthen the bonds of the sneaker community — a common factor that has strengthened their own friendship.

"When most people think about sneaker culture, they think about the shoes. When we think about sneaker culture, we think about the people," says Ghogomu.

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Houston XR training company lands $5.8M contract with Air Force

taking flight

The U.S. Air Force’s AFWERX innovation arm has picked Houston-based HTX Labs to provide AI-enabled immersive training for workers who maintain Boeing KC-135 refueling tankers.

HTX Labs, an extended reality (XR) company and provider of immersive training programs for U.S. armed forces, will receive as much as $5.8 million in military funding for this project.

The new initiative comes on the heels of HTX Labs completing the second phase of a virtual KC-135 maintenance training program in partnership with Mildenhall, a Royal Air Force station in England. HTX Labs received Small Business Innovation Research (SBIR) funding for the second-phase project.

Under the new initiative, part of its EMPACT training platform, HTX Labs will develop a virtual AI-powered classroom for workers who maintain the KC-135’s F108 engine. In conjunction with this project, HTX Labs will collaborate with the Maine Air National Guard’s 101st Air Refueling Wing Maintenance Squadron on improving EMPACT.

Major Ryan Wing of the Maine Air National Guard says KC-135 maintenance workers “have limited opportunities to perform some of the more complex aircraft and engine repairs in a training environment. Providing immersive training to our warfighters is essential to ensuring mission readiness.”

In January, HTX Labs tapped Brian Reece as vice president of strategic accounts for the Air Force. In this role, he oversees HTX Labs’ relationship with this military branch. Reece is a retired Air Force colonel.

In 2022, Dallas-based Cypress Growth Capital invested $3.2 million in HTX Labs, which was founded in 2017.

5 Rice University-founded startups named finalists ahead of prestigious pitch competition

student founders

Five student-founded startups have been named finalists for Rice University's prestigious pitch competition, hosted by Rice University’s Liu Idea Lab for Innovation and Entrepreneurship later this month

The teams will compete for a share of $100,000 in equity-free funding at the H. Albert Napier Rice Launch Challenge (NRLC), a venture competition that features Rice University's top student-founded startups. The competition is open to undergraduate, graduate, and MBA students at Rice.

Finalists will pitch their five-minute pitch before the Rice entrepreneurship community, followed by a Q&A from a panel of judges, at Rice Memorial Center Tuesday, April 22.

The first-place team will receive $50,000 in equity-free funding, with other prizes and awards ranging from $25,000 to $1,000. Apart from first-, second- and third-place prizes, NRLC will also name winners in categories like the Outstanding Achievement in Artificial Intelligence Prize, the Outstanding Achievement in Climate Solutions Prize, and the Audience Choice Award.

Here are the five startups founded by Rice students are heading to the finals.

Haast Autonomous

Haast Autonomous is building unmanned, long-range VTOL aircraft with cold storage to revolutionize organ transport—delivering life-saving medical supplies roof-to-roof faster, safer, and more efficiently than current systems.

Founders: Jason Chen, Ege Halac, Santiago Brent

Kinnections

Kinnections' Glove is a lightweight, wearable device that uses targeted vibrations to reduce tremors and improve motor control in Parkinson’s patients.

Founders: Emmie Casey, Tomi Kuye

Labshare

Labshare is an AI-powered web app that streamlines lab inventory and resource sharing, reducing waste and improving efficiency by connecting neighboring labs through a centralized, real-time platform.

Founders: Julian Figueroa Jr, John Tian, Mingyo Kang, Arnan Bawa, Daniel Kuo

SteerBio

SteerBio’s LymphGuide is a patented, single-surgery hydrogel solution that restores lymphatic function by promoting vessel growth and reducing rejection, offering a transformative, cost-effective treatment for lymphedema.

Founders: Mor Sela Golan, Martha Fowler, Alvaro Moreno Lozano

Veloci

Veloci Running creates innovative shoes that eliminate the trade-off between foot pain and leg tightness, empowering runners to train comfortably and reduce injury risk.

Founders: Tyler Strothman

Last year, HEXASpec took home first place for its inorganic fillers that improve heat management for the semiconductor industry. The team also won this year's Energy Venture Day and Pitch Competition during CERAWeek in the TEX-E student track.

Dow aims to power Texas manufacturing complex with next-gen nuclear reactors

clean energy

Dow, a major producer of chemicals and plastics, wants to use next-generation nuclear reactors for clean power and steam at a Texas manufacturing complex instead of natural gas.

Dow's subsidiary, Long Mott Energy, applied Monday to the U.S. Nuclear Regulatory Commission for a construction permit. It said the project with X-energy, an advanced nuclear reactor and fuel company, would nearly eliminate the emissions associated with power and steam generation at its plant in Seadrift, Texas, avoiding roughly 500,000 metric tons of planet-warming greenhouse gas emissions annually.

If built and operated as planned, it would be the first U.S. commercial advanced nuclear power plant for an industrial site, according to the NRC.

For many, nuclear power is emerging as an answer to meet a soaring demand for electricity nationwide, driven by the expansion of data centers and artificial intelligence, manufacturing and electrification, and to stave off the worst effects of a warming planet. However, there are safety and security concerns, the Union of Concerned Scientists cautions. The question of how to store hazardous nuclear waste in the U.S. is unresolved, too.

Dow wants four of X-energy's advanced small modular reactors, the Xe-100. Combined, those could supply up to 320 megawatts of electricity or 800 megawatts of thermal power. X-energy CEO J. Clay Sell said the project would demonstrate how new nuclear technology can meet the massive growth in electricity demand.

The Seadrift manufacturing complex, at about 4,700 acres, has eight production plants owned by Dow and one owned by Braskem. There, Dow makes plastics for a variety of uses including food and beverage packaging and wire and cable insulation, as well as glycols for antifreeze, polyester fabrics and bottles, and oxide derivatives for health and beauty products.

Edward Stones, the business vice president of energy and climate at Dow, said submitting the permit application is an important next step in expanding access to safe, clean, reliable, cost-competitive nuclear energy in the United States. The project is supported by the Department of Energy’s Advanced Reactor Demonstration Program.

The NRC expects the review to take three years or less. If a permit is issued, construction could begin at the end of this decade, so the reactors would be ready early in the 2030s, as the natural gas-fired equipment is retired.

A total of four applicants have asked the NRC for construction permits for advanced nuclear reactors. The NRC issued a permit to Abilene Christian University for a research reactor and to Kairos Power for one reactor and two reactor test versions of that company's design. It's reviewing an application by Bill Gates and his energy company, TerraPower, to build an advanced reactor in Wyoming.

X-energy is also collaborating with Amazon to bring more than 5 gigawatts of new nuclear power projects online across the United States by 2039, beginning in Washington state. Amazon and other tech giants have committed to using renewable energy to meet the surging demand from data centers and artificial intelligence and address climate change.

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This story appeared on our sister site, EnergyCapitalHTX.com.