From pitching to value proposition, here's what you should be thinking about to make your company stand out. Miguel Tovar/University of Houston

During your pitch, investors will be looking to see what your startup's value proposition is. What can you offer that your competitors cannot?

Imagine if you will, your startup develops a watch that can detect when you're about to have a heart attack, and automatically sends an alert with your location to 911.

You've perfected the design and engineering intricacies of the device. It's ready to go out and save lives, and make you tons of money in the process.

Now imagine you can't get this product off the ground because your pitches keep falling flat. Investors don't have confidence in you as an entrepreneur, even if your product is amazing. Remember, you can have an awesome product, but you won't reap any rewards if that awesomeness cannot be expressed to financial gatekeepers.

That's where the art of the pitch matters. Pitching to a venture capitalist might be the most vital part of your startup's success. This is where you express how important your product is or how in demand your services are. This is where you convince investors your product (and you) is worth investing in.

Next, you'll have to determine your company's value proposition, which is the heart of your competitive advantage. This tells venture capitalists why they should invest in your company and not others.

Investors are putting their money and reputation on the line for your company. Their leap of faith has to be as educated as possible. If you can educate them very thoroughly why your startup is different, why it stands out from the rest, investors will feel much more comfortable with their decision to reject other bids in favor of yours.

You don't only need to convince them to choose your company, you also need to convince them that rejecting the other companies won't come back to bite them in the rear. Nobody likes to live with regret, least of all people who put themselves in a position to lose millions of their dollars on a bad decision. The best way to reaffirm an investor's faith in your company is to provide a product or service that is fairly new to the market. New products mean less saturation and higher demand, especially if the product solves a problem or provides a unique function.

There are plenty of toasters on the market, but what about wireless toasters? Outdoors-people everywhere would surely line up to buy that. You're providing a product of real value to a certain sect of people. Your competitive advantage is that your toaster is wireless and portable. That would be your company's value proposition to your investor.

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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.

Hey startups, are you ready to rock and roll? Miguel Tovar/University of Houston

Here's what startups can learn from the Rolling Stones, according to University of Houston researchers

Houston voices

Editor's note: If you think you can't learn some business tips from a rock band, think again. The University of Houston's Big Idea has rounded up a few lessons to be learned from the Rolling Stones — along with advice from UH researchers.

"Start Me Up"

In 1970, the Rolling Stones' long-standing deal with Decca Records expired. This opened a giant door for the band, which I assume they painted black.

Because the band had achieved such success, they were able to form their own record label, dubbed Rolling Stones Records. This was done in an effort to exert more control over their music, not just creatively, but financially. The Stones could now retain the rights over their own music.

Much akin to this move, many startups are launched because entrepreneurs wish to have more control over certain aspects of their technology or product. When asked why he launched his own startup, James Briggs, Ph.D., professor of biochemistry at the University of Houston and president and CFO of Metabocentric Biotechnologies, explained, "Primarily, it was because we felt that development of the technology stood a much better chance if we prosecuted it rather than trying to find a licensing partner."

"Under Your Thumb"

It's no secret that one of the biggest perks of developing your own startup is that you get to be the one to take care of your baby; to oversee the development of your tech through all its stages. You and your co-founders make the decisions on the long road to achieving your vision. Similarly, Professor Briggs and his business partner John Weihua, Ph.D., chairman and CEO of Metabocentric, could now control their company and develop it according to their vision. Had Professor Briggs and Chairman Weihua gone with a licensing partner at such an early stage of their startup, it could have stymied their financial growth.

A licensing entity is not just costly, it handcuffs your startup to dealing with only one licensing partner: them. As a result, you can't generate revenue elsewhere, which you can do if you control your own company.

Much like the Stones' newfound ability to control their own music by not having the tentacles of Decca Records around it, Professor Briggs and Chairman Weihua now had that same ability with their tech; all because they chose to venture out on their own in the infancy of their startup. They were able launch their startup without licensing partners by acquiring non-dilutive funding, which grants startups money without seeking equity in return. So, again, you keep more control of your tech.

"Beast of Burden"

Big record companies have always made it a point to primarily sign acts that are already well established and have a strong fan base locally. Artists in the '60s had to really work hard to gain a big enough name for themselves in their region. Flyers, radio ads, playing weddings, bar mitzvahs, and birthday parties for free just to get your name out there, all the while having to create new material; musicians looking to get signed really had to put in the work.

Before they became household names, the Rolling Stones had garnered a big following in London in 1963. Big enough that the then-gigantic Decca Records noticed and decided to sign them. Record companies sign bands with big local followings because they are more likely to succeed on a grand scale, as opposed to artists who never ventured beyond their garage. In a sense, this was a way for big record companies to reduce the risk of signing an artist that turns out to be a dud.

"Beast of Burden (Remix)"

"Pharmaceutical companies, now, look to small biotech startups to de-risk the lead and approach before they consider partnerships or acquisitions," proclaimed Professor Briggs during his presentation at UH's Startup Pains event. "Pharmaceutical companies don't want to buy failure, they want to buy the success. So they make sure to look for small biotech companies who bring their tech to a point where it is de-risked enough that a partnership suddenly becomes less of a risk to undertake."

Biotech entrepreneurs have to also put in a lot of work to position their startups for potential deals and partnerships with giant pharmaceutical companies. Laying the groundwork for a startup includes searching for investors, virtually begging for money, entering competitions, updating your tech, growing your team, commercializing your product, and staying relevant. "It's a lot of hard work. There will be successes and there will be failures. But in the end, if you stay true to yourselves and your company, there's a greater chance it will pay off."

"Let's Spend the Night Together"

Chemistry, the non-science-y kind, is one of the most overlooked aspects of startups for entrepreneurs. The chemistry a team of individuals have with each other makes for a positive company culture that maintains high morale.

In music, nothing is more important than chemistry. You are whole rather than the sum of a band's parts. Mick Jagger met Keith Richards when they were 16 and became friends because they owned the same Muddy Waters record. Since that time, they have remained best friends. In the studio and on stage, few duos have portrayed the same level of camaraderie and chemistry as Mick and Keith. They met their drummer Charlie Watts at 17, just a year later, and bassist Ronnie Wood in 1975, and lo and behold, they're still all together today.

With a catalog of over 500 songs over 50 years, with the same four band members for the majority of that time, you'll be hard-pressed to find a better paragon of chemistry than the Rolling Stones.

For startups, a strong company culture composed of like-minded individuals working together with chemistry is a prime way to keep your employees motivated, especially when your company is so young, you cannot pay them very much. "You have to remember that most startups are extremely tiny, with 2 to 3 people even, so chemistry is vital. You want to have a culture where you can air your grievances with each other and be honest about your company," Professor Briggs said during the Q & A session of Startup Pains.

"Time Is On Your Side"

A good startup sees its employees working together, functioning as a well-oiled machine, spending long nights together figuring out problems, taking turns ordering Chinese for late meetings, checking each other's work, and learning each other's personalities to more effectively communicate. It takes time. But if the chemistry isn't there naturally, it'll be there once you put in the time to iron out each other's wrinkles.

Investors want to see that your startup has a positive culture before they invest. Similarly, funding entities view company culture as a component that impacts a startup's net profits. If your startup is in disarray, do you really think an intelligent investor is going to want to give you millions of their dollars?

"Even if your tech is great, investors need to see that the company behind the tech is worth the risk."


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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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8 can't-miss Houston business and innovation events for December

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Editor's note: Houston’s innovation scene is loading up the calendar before the holidays. From climatetech pitch days to the return of favorite festive shindigs, here's what not to miss and how to register. Please note: this article may be updated to include additional event listings.

Dec. 3 — SouthWest-Midwest National Pediatric Device Innovation Consortium

This annual event brings together members, colleagues and guests of the FDA-supported pediatric consortium who are dedicated to assisting device innovators throughout the lifecycle in delivering innovative solutions to patients. Featured speakers include Dr. Danielle Gottlieb from Le Bonheur Children's Hospital, Balakrishna Haridas from Texas A&M University and Dr. Chester Koh from Texas Children’s Hospital.

This event is Wednesday, Dec. 3, from 3:30-8 p.m. at Texas A&M EnMed Tower. Register here.

Dec. 4 — Resiliency & Adaptation Sector Pitch Day: Scaling Solutions to Address Climate Disruption

Join innovators, industry leaders, investors and policymakers as they explore breakthrough climate and energy technologies at Greentown's latest installment of its Sector Pitch Day series, focused on resiliency and adaptation. Hear from Adrian Trömel, Chief Innovation Officer at Rice University; Eric Willman, Executive Director of the Rice WaTER Institute; pitches from 10 Greentown startups and more.

This event is Thursday, Dec. 4, from 1-3:30 p.m. at the Ion. The Ion Holiday Block Party follows. Register here.

Dec. 4 — The Ion District Holiday Block Party

The Ion District, Rice Alliance and Greentown Labs will celebrate the season during the Ion District Holiday Block Party. Expect to find local bites, drinks, music and meaningful connections across Houston’s innovation ecosystem. Guests are invited to participate in Operation Love’s holiday toy drive supporting local families.

This event is Thursday, Dec. 4, from 4-7 p.m. Register here.

Dec. 8 — Pumps & Pipes Annual Event 2025

The annual gathering brings together cross-industry leaders in aerospace, energy and medicine for engaging discussions and networking opportunities. Connor Grennan, Chief AI Architect at the NYU Stern School of Business, will present this year's keynote address, entitled "Practical Strategies to Increase Productivity." Other sessions will feature leaders from Cena Research Institute, NASA Ames Research Center, ExxonMobil, Southwest Airlines and more.

This event is Monday, Dec. 8, from 8 a.m.-5 p.m., at TMC Helix Park. Register here.

Dec. 9 — Jingle and Mingle

Don your ugliest sweater and snap a pic with Startup Santa! Bayou City Startups, Rocket Network, Founder Institute and Energytech Nexus are bringing back their popular Jingle Mingle for the third year. Network and celebrate with founders, community stakeholders and others in Houston's innovation scene. Donations to the Houston Food Bank are encouraged in place of tickets.

This event is Tuesday, Dec. 9, from 5-7 p.m., at the Solarium in Midtown. Register here.

Dec. 9 — European Innovation Spotlight

Celebrate European cooperation and innovation with the European Innovation Council during an exclusive demo night and networking event at Greentown Labs. Hear from 15 EIC-backed founders supported by the European Union with top-class climatetech technologies, listen to a fireside chat and engage in a networking event following the pitches.

This event is Tuesday, Dec. 9, from 4:30-7 p.m., at the Ion. Register here.

Dec. 9-10 — Energy LIVE

Energy LIVE is Reuters Events' flagship ConfEx that brings the full energy ecosystem together under one roof to solve the industry's most urgent commercial and operational challenges. The event will feature 3,000-plus senior executives across three strategic stages, a showcase of 75-plus exhibitors and six strategic content pillars.

This event is Dec. 9-10 at NRG Park. Register here.

Dec. 15 — Innov8 Hub Pitch Day

Hear pitches from members of the latest Innov8 Hub Innovators to Founders cohort, which empowers academic scientists and innovators to become successful startup founders. Meet and network with the founders over light bites and drinks at a reception following the pitch competition.

This event is Monday, Dec. 15, at the Innovation Center at UH Technology Bridge (Bldg. 4). Register here.

Houston scores $120M in new cancer research and prevention grants

cancer funding

The Cancer Prevention and Research Institute of Texas has granted more than $120 million to Houston organizations and companies as part of 73 new awards issued statewide.

The funds are part of nearly $154 million approved by the CPRIT's governing board earlier this month, bringing the organization's total investment in cancer prevention and research to more than $4 billion since its inception.

“Today marks an important milestone for CPRIT and for every Texan affected by cancer,” CEO Kristen Doyle said in a news release. “Texas has invested $4 billion in the fight against one of the world’s greatest public health challenges. Over 16 years, that support has helped Texas lead the search for breakthrough treatments, develop new cancer-fighting drugs and devices, and—most importantly—save tens of thousands of lives through early cancer detection and prevention. Every Texan should know this effort matters, and we’re not finished yet. Together, we will conquer cancer.”

A portion of the funding will go toward recruiting leading cancer researchers to Houston. CPRIT granted $5 million to bring John Quackenbush to Baylor College of Medicine. Quackenbush comes from the Harvard T.H. Chan School of Public Health and is an expert in computational and systems biology. His research focuses on complex genomic data to understand cancer and develop targeted therapies.

The University of Texas M.D. Anderson Cancer Center also received $3 million to recruit Irfan Asangani, an associate professor at the University of Pennsylvania Perelman School of Medicine. His research focuses on how chromatin structure and epigenetic regulation drive the development and progression of cancer, especially prostate cancer.

Other funds will go towards research on a rare, aggressive kidney cancer that impacts children and young adults; screening programs for breast and cervical cancer; and diagnostic technology.

In total, cancer grants were given to:

  • The University of Texas M.D. Anderson Cancer Center: $29.02 million
  • Baylor College of Medicine: $15.04 million
  • The University of Texas Health Science Center at Houston: $9.37 million
  • Texas A&M University System Health Science Center: $1.2 million
  • University of Houston: $900,000

Additional Houston-based companies landed grants, including:

  • Crossbridge Bio Inc.: $15.01 million
  • OncoMAGNETx Inc.: $13.97 million
  • Immunogenesis Inc.: $10.85 million
  • Diakonos Oncology Corporation: $7.16 million
  • Iterion Therapeutics Inc.: $7.13 million
  • NovaScan Inc.: $3.7 million
  • EMPIRI Inc.: $2.59 million
  • Air Surgical Inc.: $2.58 million
  • Light and Salt Association: $2.45 million

See the full list of awards here.