Pitch perfect: What investors are looking for, according to Houston research

houston voices

Here are some reminders of how to serve up a home-run of a pitch to potential investors. Miguel Tovar/University of Houston

Pitching to a venture capitalist is not only the most challenging part of building a startup, it’s also the most important. You can have the next pet rock idea, but nobody will ever experience it and you’ll never make a dime if the genius of this product cannot be expressed in an investor pitch. Okay, so pet rock isn’t the best example.

Let’s say you have a product that gets rid of stretch marks overnight. Great idea, right? Of course. But if you’re in front of an investor and they ask you how your product works, and you can’t answer them, your idea will forever remain just that: an idea. It’ll never manifest itself materially, which is your goal.

Did you know that the average venture capitalist holds around 500 in-person meetings per year? Further, did you know that only one in every 10 startups will make it past the first meeting?

With so many meetings with startup founders, you better believe that investors are virtually looking for reasons to pass on you and your cordless extension cord. Or whatever fakakta contraption you’ve developed in your garage.

Well, with so much importance placed on first impressions, here are some of the most important things investors look for and notice when you pitch to them:

Value proposition

This is what separates you from the pack. This is what makes your startup a standout. A value proposition shows an investor your company’s competitive advantage. If you can explain to your potential investor why it would be their folly if they invested in a competitor over your startup, then you’ll be that much closer to rolling out your product to market. Investors want to see a product or service that is unique because that means less competition, and less risk involved.

Entrepreneurship

Sure, you might be a brilliant scientist. You may have developed nanotechnology that eviscerates dirt and bacteria so you don’t have to shower anymore. But have you put together a team that can make your company a successful business? Do you have team members with experience in whatever it is your startup does? Do you have people with credibility congruent with your startup? Your pitch is a way for investors to find these things out. If you can show them that your team has experience, passion, insightfulness, and expertise, investors will feel much better about taking a chance on you.

Confidence is key

Investors can tell if a founder is confident, but not overconfident about how far they’ve come and how far they know they can go. During a pitch, investors can tell if your team is a cohesive unit or parts of a fractured whole.

Anatomy of an investor pitch

Your potential investor will notice if your pitch is structured well. He or she will take not of whether or not your pitch is designed well. They’ll ask themselves if it’s authentic. Does it cover business metrics? Is it concise and to the point? Is the founder communicating something complex in a simple way? Doing so shows absolute understanding and a total grasp of your product and the science behind it, plus the business aspect of it.


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This article originally appeared on the University of Houston's The Big Idea. Rene Cantu was the writer and editor at UH Division of Research.

Think you know what's happening at university tech transfer offices? Think again. Graphic by Miguel Tovar/University of Houston

Houston expert: 4 misconceptions of university tech transfer offices

houston voices

Beyond their education and research missions, universities across the nation have turned research discoveries into big business. In addition to protecting intellectual property from faculty discoveries, universities build and support startup pipelines to help researchers commercialize those technologies.

However, there are a few misconceptions when it comes to university tech transfer offices that keep faculty at bay. Here, we'll take a look at four misconceptions and explore the truth behind the thinking.

Misconception 1: Filing patent paperwork is all tech transfer offices do

While tech transfer offices are in the business of patents, many offer a full range of services to support the commercialization process. This can include everything from strategy and startup development to the establishment of enterprise and industry ventures. Many university tech transfer offices operate incubators, co-working space for startups and accelerator programs, and some even build and manage venture funds.

"At the University of Houston, we now offer lots of services to faculty, such as strategy sessions to help them understand the commercial potential of their technologies," said Chris Taylor, executive director of the UH Office of Technology Transfer and Innovation. "We also help faculty license their technologies to ensure fair use as they transition them into the market."

Misconception 2: I need to have a fully-developed idea to submit a disclosure

According to Taylor, many faculty begin interacting with tech transfer offices once they have a technology fully developed. But tech transfer offices can do much more for faculty if involved early in the process.

"Yes, we do help protect what's been developed. But, if we have a conversation at the beginning, we could help faculty shape or pivot their technologies. This will give them the greatest market potential," he said.

One of the many benefits of tech transfer offices is their ability to readily research the market.

"We can determine whether or not technologies can be disclosed, patented and licensed. It's important to know this before going through a lengthy and expensive filing process."

Misconception 3: The patent process will slow down my publication plans

Publishing researching findings may be one of the most important activities for the university researcher. However, publishing research on unprotected discoveries can result in the loss of patent rights. Therefore, filing a disclosure is very important, according to Taylor.

"Publishing is one of the best ways to market university technologies," he said. "However, industry values patented technologies, so it's better to make a small time investment to protect your IP.

Misconception 4: Getting a patent is the primary goal for tech transfer offices

As Taylor explains, the primary goal of tech transfer offices is to help faculty "transfer" their discoveries to society. And while patenting technologies is one way to do that, tech transfer offices also provide education and mentoring programs. They also support other protections such as copyrights for software.

"IP protection is important," he said. "It gives faculty control over how their technology is used, for good or for bad. So, this is an important part of the work that we do for faculty. But, we support faculty in so many other ways through the entire pipeline."

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This article originally appeared on the University of Houston's The Big Idea. Lindsay Lewis, the author of this piece, is the executive director of communivations for the UH Division of Research.

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9 can't-miss Houston business and innovation events for April

where to be

Two new conferences will launch while another longtime business competition celebrates its 25th anniversary this month in Houston. Plus, there are networking opportunities, family tech events and more.

Here are the Houston business and innovation events you can't miss in April and how to register. Please note: this article might be updated to add more events.

​Ion Block Party: Art Crawl

Network and socialize with other tech enthusiasts and business-minded individuals while taking in the new gallery at Community Artists’ Collective and experiencing the immersive dome at Omnispace360. See work by Joel Zika, who will showcase his digital sculptures through augmented reality screens, and other public art around the Ion while also enjoying food and drink.

This event is Thursday, April 3, from 4-7 p.m. at the Ion. Click here to register.

​CLA Presents: Raising Capital over Happy Hour

Gain a better understanding of the capital-raising process and various funding opportunities at this educational happy hour. Keith Davidson, the market leader for CLA in Dallas and former CFO of ICS, will present.

This event is Thursday, April 10, from 4-6 p.m. at The Cannon. Click here to register.

Rice Business Plan Competition 

The Rice Alliance for Technology and Entrepreneurship will host the 25th annual Rice Business Plan Competition this month. Forty-two student-led teams from around the world, including one team from Rice, will present their plans before more than 300 angel, venture capital, and corporate investors to compete for more than $1 million in prizes.

This event is April 10-12. Stream the Elevator Pitch Competition and Final Round here.

RSVF Annual Conference

The Rice Student Venture Fund will host its first-ever Annual Conference to celebrate the university's entrepreneurial spirit and the rising generation of student-led innovation. The conference will include live startup demos, an RSVF fund update, a keynote fireside chat, a builder-investor panel and networking. RSVF welcomes students, alumni, investors, faculty and staff, and innovators and community members of the broader tech scene.

This event is Monday, April 14, from 4-8 p.m. at the Ion. Click here to register.

​TEX-E Conference

TEX-E will host its inaugural conference this month under the theme "Energy & Entrepreneurship: Navigating the Future of Climate Tech." The half-day conference will feature a keynote from Artemis Energy Partners CEO Bobby Tudor as well as panels with other energy and tech leaders from NRG, Microsoft, GE Vernova and TEB Tech.

This event is Tuesday, April 15, from 1-4:30 p.m. at the Ion. Click here to register.

Houston Methodist Leadership Speaker Series 

Hear from Dr. Jonathan Rogg, Chief Quality Officer and Vice President of Operations at Houston Methodist Hospital and a a practicing emergency medicine physician, at the latest Houston Methodist Leadership Speaker Series. Rogg will present "Leadership from the Bedside to the Boardroom."

This event is on Wednesday, April 23, from 4:45-6 p.m. at the Ion. Click here to register.

Ion Family STEAM Day– Let's Build a Tripwire Alarm

STEAM on Demand will host a hands-on, family-friendly engineering lesson for young ones on the Ion Forum Stairs. Kids will learn to create and test their own working alarm system. The event is geared toward those ages 7 to 14.

This event is Sunday, April 26, from 10 a.m. to noon at the Ion. Click here to register.

 Greentown Houston Fourth Anniversary Transition On Tap

Climatetech incubator Greentown Labs will celebrate its fourth anniversary with a special edition of its signature networking event, Transition On Tap. Entrepreneurs, investors, students, and friends of climatetech are invited to attend.

This event is Tuesday, April 29, from 5:30-7:30 p.m. at Greentown Labs. Click here to register.

Integrate Space Technology Into Your Small Biz

The SBA Houston District Office and the UH Technology Bridge will host a collaborative event designed to help small businesses leverage space technology for prototype development. Attendees will also hear from industry experts on resources and gain access free technical engineering assistance to help accelerate their businesses.

This event is Wednesday, April 30, from 9:30-11:30 a.m. at UH Technology Bridge Innovation Center. Click here to reserve your spot.

Texas university's innovative 'WaterHub' will dramatically reduce usage by 40%

Sustainable Move

A major advancement in sustainability is coming to one Texas university. A new UT WaterHub at the University of Texas at Austin will be the largest facility of its kind in the U.S. and will transform how the university manages its water resources.

It's designed to work with natural processes instead of against them for water savings of an estimated 40 percent. It's slated for completion in late 2027.

The university has had an active water recovery program since the 1980s. Still, water is becoming an increasing concern in Austin. According to Texas Living Waters, a coalition of conservation groups, Texas loses enough water annually to fill Lady Bird Lake roughly 89 times over.

As Austin continues to expand and face water shortages, the region's water supply faces increased pressure. The UT WaterHub plans to address this challenge by recycling water for campus energy operations, helping preserve water resources for both the university and local communities.

The 9,600-square-foot water treatment facility will use an innovative filtration approach. To reduce reliance on expensive machinery and chemicals, the system uses plants to naturally filter water and gravity to pull it in the direction it needs to go. Used water will be gathered from a new collection point near the Darrell K Royal Texas Memorial Stadium and transported to the WaterHub, located in the heart of the engineering district. The facility's design includes a greenhouse viewable to the public, serving as an interactive learning space.

Beyond water conservation, the facility is designed to protect the university against extreme weather events like winter storms. This new initiative will create a reliable backup water supply while decreasing university water usage, and will even reduce wastewater sent to the city by up to 70 percent.

H2O Innovation, UT’s collaborator in this project, specializes in water solutions, helping organizations manage their water efficiently.

"By combining cutting-edge technology with our innovative financing approach, we’re making it easier for organizations to adopt sustainable water practices that benefit both their bottom line and the environment, paving a step forward in water positivity,” said H2O Innovation president and CEO Frédéric Dugré in a press release.

The university expects significant cost savings with this project, since it won't have to spend as much on buying water from the city or paying fees to dispose of used water. Over the next several years, this could add up to millions of dollars.

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A version of this story originally appeared on our sister site, CultureMap Austin.

Texas female-founded companies raised more than $1 billion in 2024, VC data shows

by the numbers

Female-founded companies in Dallas-Fort Worth may rack up more funding deals and more money than those in Houston. However, Bayou City beats DFW in one key category — but just barely.

Data from PitchBook shows that in the past 16 years, female-founded companies in DFW collected $2.7 billion across 488 deals. By comparison, female-founded companies in the Houston area picked up $1.9 billion in VC through 343 deals.

Yet if you do a little math, you find that Houston ekes out an edge over DFW in per-deal values. During the period covered by the PitchBook data, the value of each of the DFW deals averaged $5.53 million. But at $5,54 million, Houston was just $6,572 ahead of DFW for average deal value.

Not surprisingly, the Austin area clobbered Houston and DFW.

During the period covered by the PitchBook data, female-founded companies in the Austin area hauled in $7.5 billion across 1,114 deals. The average value of an Austin deal: more than $6.7 million.

Historically, funding for female-established companies has lagged behind funding for male-established companies. In 2024, female-founded companies accounted for about one-fourth of all VC deals in the U.S., according to PitchBook.

PitchBook noted that in 2024, female-founded companies raised $38.8 billion, up 27 percent from the previous year, but deal count dropped 13.1 percent, meaning more VC for fewer startups. In Texas, female-founded companies brought in $1.3 billion last year via 151 deals. The total raised is the same as 2023, when Texas female founders got $1.3 billion in capital across 190 deals.

“The VC industry is still trying to find solid footing after its peak in 2021. While some progress was made for female founders in 2024, particularly in exit activity, female founders and investors still face an uphill climb,” says Annemarie Donegan, senior research analyst at PitchBook.

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