Here's what makes a startup stand out, according to University of Houston research

Houston voices

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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Rice launches 'brain economy' initiative at World Economic Forum

brain health

Rice University has launched an initiative that will position “brain capital” as a key asset in the 21st century.

Rice rolled out the Global Brain Economy Initiative on Jan. 21 at the World Economic Forum in Davos, Switzerland.

“This initiative positions brain capital, or brain health and brain skills, at the forefront of global economic development, particularly in the age of artificial intelligence,” the university said in a news release.

The Rice-based initiative, whose partners are the University of Texas Medical Branch in Galveston and the Davos Alzheimer’s Collaborative, aligns with a recent World Economic Forum and McKinsey Health Institute report titled “The Human Advantage: Stronger Brains in the Age of AI,” co-authored by Rice researcher Harris Eyre. Eyre is leading the initiative.

“With an aging population and the rapid transformation of work and society driven by AI, the urgency has never been greater to focus on brain health and build adaptable human skills—both to support people and communities and to ensure long-term economic stability,” says Amy Dittmar, a Rice provost and executive vice president for academic affairs.

This initiative works closely with the recently launched Rice Brain Institute.

In its first year, the initiative will establish a global brain research agenda, piloting brain economy strategies in certain regions, and introducing a framework to guide financial backers and leaders. It will also advocate for public policies tied to the brain economy.

The report from the McKinsey Health Institute and World Economic Forum estimates that advancements in brain health could generate $6.2 trillion in economic gains by 2050.

“Stronger brains build stronger societies,” Eyre says. “When we invest in brain health and brain skills, we contribute to long-term growth, resilience, and shared prosperity.”

Rice Alliance and the Ion leader Brad Burke to retire this summer

lasting legacy

Brad Burke—a Rice University associate vice president who leads the Ion District’s Rice Alliance for Technology and Entrepreneurship and is a prominent figure in Houston’s startup community—is retiring this summer after a 25-year career at the university.

Burke will remain at the Rice Alliance as an adviser until his retirement on June 30.

“Brad’s impact on Rice extends far beyond any single program or initiative. He grew the Rice Alliance from a promising campus initiative into one of the most respected university-based entrepreneurship platforms,” Rice President Reginald DesRoches said in a news release.

During Burke’s tenure, the Rice Business School went from unranked in entrepreneurship to The Princeton Review’s No. 1 graduate entrepreneurship program for the past seven years and a top 20 entrepreneurship program in U.S. News & World Report’s rankings for the past 14 years.

“Brad didn’t just build programs — he built an ecosystem, a culture, and a reputation for Rice that now resonates around the world,” said Peter Rodriguez, dean of the business school. “Through his vision and steady leadership, Rice became a place where founders are taken seriously, ideas are rigorously supported, and entrepreneurship is embedded in the fabric of the university.”

One of Burke’s notable achievements at Rice is the creation of the Rice Business Plan Competition. During his tenure, the competition has grown from nine student teams competing for $10,000 into the world’s largest intercollegiate competition for student-led startups. Today, the annual competition welcomes 42 student-led startups that vie for more than $1 million in prizes.

Away from Rice, Burke has played a key role in cultivating entrepreneurship in the energy sector: He helped establish the Energy Tech Venture Forum along with Houston Energy and Climate Startup Week.

Furthermore, Burke co-founded the Texas University Network for Innovation and Entrepreneurship in 2008 to bolster the entrepreneurship programs at every university in Texas. In 2016, the Rice Alliance assumed leadership of the Global Consortium of Entrepreneurship Centers.

In 2023, Burke received the Trailblazer Award at the 2023 Houston Innovation Awards and was recognized by the Deshpande Foundation for his contributions to innovation and entrepreneurship in higher education.

“Working with an amazing team to build the entrepreneurial ecosystem at Rice, in Houston, and beyond has been the privilege of my career,” Burke said in the release. “It has been extremely gratifying to hear entrepreneurs say our efforts changed their lives, while bringing new innovations to market. The organization is well-positioned to help drive exponential growth across startups, investors, and the entrepreneurial ecosystem.”

Starting April 15, John “JR” Reale Jr. will serve as interim associate vice president at Rice and executive director of the Rice Alliance. He is managing director of the alliance. Reale is co-founder of the Station Houston startup hub and a startup investor. He was also recently named director for startups and investor engagement at the Ion.

“The Rice Alliance has always been about helping founders gain advantages to realize their visions,” Reale said. “Under Brad’s leadership, the Rice Alliance has become a globally recognized platform that is grounded in trust and drives transformational founder outcomes. My commitment is to honor what Brad has built and led while continuing to serve our team and community, deepen relationships and deliver impact.”

Burke joined the Houston Innovators Podcast back in 2022. Listen to the full interview here.

Houston team uses CPRIT funding to develop nanodrug for cancer immunotherapy

cancer research

With a relative five-year survival rate of 50 percent, pancreatic cancer is a diagnosis nobody wants. At 60 percent, the prognosis for lung cancer isn’t much rosier. That’s because both cancers contain regulatory B cells (Bregs), which block the body’s natural immunity, making it harder to fight the enemies within.

Newly popular immunotherapies in a category known as STING agonists may stimulate natural cancer defenses. However, they can also increase Bregs while simultaneously causing significant side effects. But Wei Gao, assistant professor of pharmacology at the University of Houston College of Pharmacy, may have a solution to that conundrum.

Gao and her team have developed Nano-273, a dual-function drug, packaged in an albumin-based particle, that boosts the immune system to help it better fight pancreatic and lung cancers. Gao’s lab recently received a $900,000 grant from the Cancer Prevention and Research Institute of Texas (CPRIT) to aid in fueling her research into the nanodrug.

“Nano-273 both activates STING and blocks PI3Kγ—a pathway that drives Breg expansion, while albumin nanoparticles help deliver the drug directly to immune cells, reducing unwanted side effects,” Gao said in a press release. “This approach reduces harmful Bregs while boosting immune cells that attack cancer, leading to stronger and more targeted anti-tumor responses.”

In studies using models of both pancreatic and lung cancers, Nano-273 has shown great promise with low toxicity. Its best results thus far have involved using the drug in combination with immunotherapy or chemotherapy.

With the CPRIT funds, Gao and her team will be able to charge closer to clinical use with a series of important steps. Those include continuing to test Nano-273 alongside other drugs, including immune checkpoint inhibitors. Safety studies will follow, but with future patients in mind, Gao will also work toward improving her drug’s production, making sure that it’s safe and high-quality every time, so that it is eventually ready for trials.

Gao added: “If successful, this project could lead to a new type of immunotherapy that offers lasting tumor control and improved survival for patients with pancreatic and lung cancers, two diseases that urgently need better treatments."

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