$32M resilience-focused hub to rise in Houston's East End

coming soon

The 130,000-square-foot Resilience Manufacturing Hub is coming to the Second Ward. Photo houston.org

A first-of-its-kind manufacturing hub designed to “future proof” residential, commercial, industrial, and public sector infrastructure is coming to Houston.

The 130,000-square-foot Resilience Manufacturing Hub will house functions such as R&D, manufacturing, and assembly for products aimed at improving the resilience of homes, office buildings, warehouses, and other components of the “built environment.”

“We are looking for any product or technology solution that can reduce the impact from the next generation of disasters … by helping people thrive, not just survive, in their own community,” says Richard Seline, co-founder and managing director of the Houston-based Resilience Innovation Hub. The innovation hub is a partner in the manufacturing hub.

Seline says the manufacturing hub, with an estimated price tag of $32 million, will directly employ about 60 people. He expects the facility to either generate or “upskill” about 240 off-site jobs.

The manufacturing hub will be built adjacent to the 300,000-square-foot East End Maker Hub, which is opened in Houston’s Second Ward neighborhood two years ago. Seline says five companies already have expressed interest in being tenants at the manufacturing hub, which is set to open by next summer.

The East End Maker Hub, a public-private endeavor, opened in the summer of 2021. Photo by Natalie Harms/InnovationMap

“We know that the supply chains keep failing over and over again in regard to responding to and rebuilding after disasters. This is a way to address that,” Seline says of the manufacturing hub.

Aside from the innovation hub and East End Maker Hub, partners in the manufacturing venture are the nonprofit Urban Partnerships Community Development Corp. (UPC) and modular construction company VEMAS. UPC is based in Houston, and VEMAS has a Houston office.

“The Resilience Manufacturing Hub is one of four pillars in UPC’s vision for an Invest Houston strategy to grow our economy from within by directly impacting middle-income employment — vital for the 1 million jobs projected as a gap in greater Houston’s long-term competitiveness,” says Patrick Ezzell, president and chairman of UPC and founder of the East End Maker Hub.

The manufacturing hub will work hand in hand with the innovation hub. The innovation hub assesses and addresses risks triggered by climate-produced, manmade, pandemic-related and cybersecurity threats. Hub participants work on innovations aimed at alleviating these risks.

In 2012, the National Academy of Sciences defined resilience as “the ability to prepare and plan for, absorb, recover from, and more successfully adapt to adverse events.” Those events include hurricanes and floods.

The resilience movement got a substantial boost last year thanks to passage of the federal Community Disaster Resilience Zones Act. The law allows for designation of resilience zones in communities that are at high risk of natural disasters and have limited resources. These zones will qualify for federal funding earmarked for resilience efforts.

Harris County scores nearly 98 out of 100 on the National Risk Index, generated by the Federal Emergency Management Agency (FEMA), putting it into the “very high” risk category for natural hazards.

Yet Harris County ekes out a score of 12.73 out of 100 for community resilience, landing it in the “very low” category. This means the county has a poor ability to prepare for natural hazards, adapt to changing conditions, and withstand and recover from disruptions.

Richard Seline is the co-founder and managing director of the Houston-based Resilience Innovation Hub. Photo courtesy

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Houston space tech companies land $25 million from Texas commission

Out Of This World

Two Houston aerospace companies have collectively received $25 million in grants from the Texas Space Commission.

Starlab Space picked up a $15 million grant, and Intuitive Machines gained a $10 million grant, according to a Space Commission news release.

Starlab Space says the money will help it develop the Systems Integration Lab in Webster, which will feature two components — the main lab and a software verification facility. The integration lab will aid creation of Starlab’s commercial space station.

“To ensure the success of our future space missions, we are starting with state-of-the-art testing facilities that will include the closest approximation to the flight environment as possible and allow us to verify requirements and validate the design of the Starlab space station,” Starlab CEO Tim Kopra said in a news release.

Starlab’s grant comes on top of a $217.5 million award from NASA to help eventually transition activity from the soon-to-be-retired International Space Station to new commercial destinations.

Intuitive Machines is a space exploration, infrastructure and services company. Among its projects are a lunar lander designed to land on the moon and a lunar rover designed for astronauts to travel on the moon’s surface.

The grants come from the Space Commission’s Space Exploration and Aeronautics Research Fund, which recently awarded $47.7 million to Texas companies.

Other recipients were:

  • Cedar Park-based Firefly Aerospace, which received $8.2 million
  • Brownsville-based Space Exploration Technologies (SpaceX), which received $7.5 million
  • Van Horn-based Blue Origin, which received $7 million

Gwen Griffin, chair of the commission, says the grants “will support Texas companies as we grow commercial, military, and civil aerospace activity across the state.”

State lawmakers established the commission in 2023, along with the Texas Aerospace Research & Space Economy Consortium, to bolster the state’s space industry.

Houston experts: Can AI bridge the gap between tech ambitions and market realities?

guest column

Despite successful IPOs from the likes of Ibotta, Reddit and OneStream, 2024 hasn’t provided the influx of capital-raising opportunities that many late-stage tech startups and venture capitalists (VCs) have been waiting for. Since highs last seen in 2021—when 90 tech companies went public—the IPO market has been effectively frozen, with just five tech IPOs between January and September 2024.

As a result, limited partners have not been able to replenish investments and redeploy capital. This shifting investment landscape has VCs and tech leaders feeling stuck in a holding pattern. Tech leaders are hesitant to enter the public markets because valuations are down 30 percent to 40 percent from 2021, which is also making late-stage fundraising more challenging. After all, longer IPO timelines mean fewer exit opportunities for VCs and reduced capital from institutional investors who are turning toward shorter-term investments with more liquid exit options.

Of course, there’s always an exception. And in the case of a slowed IPO market, a select slice of tech companies—AI-related companies—are far outperforming others. While not every tech startup has AI software or infrastructure as their core offering, most can benefit from using AI to revise their playbook and become more attractive to investors.

Unlocking Growth Potential with AI

While overall tech startup investment has slowed, the AI sector burns bright. This presents an opportunity for companies that strategically leverage AI, not just as a buzzword but as a tool for genuine growth and differentiation. Imagine a future where AI-powered insights unlock unprecedented efficiency, customer engagement and a paradigm shift in value creation. This isn’t just about weathering the current storm of reduced access to capital; it’s about emerging stronger, ready to lead the next wave of tech innovation.

Here's how to navigate the AI frontier and unlock its potential:

  1. Understand that data is the foundation of AI success. AI is powerful, but it’s not magic. It thrives on high-quality, interconnected data. Before diving into AI initiatives, companies must assess their data health. Is it structured in a way that AI can understand? Does it go beyond raw numbers to capture context and meaning—like customer sentiment alongside sales figures? Rethinking data infrastructure is often the crucial first step.
  1. Focus on amplifying strengths, not reinventing the wheel. The allure of AI can tempt companies into pursuing radical reinvention. However, a more effective strategy is to leverage AI to enhance existing strengths and address core customer needs. Why do customers choose your company? How can AI supercharge your value proposition? Consider Reddit’s strategic approach: They didn’t overhaul their platform before their 2024 IPO. Instead, they showcased the value of their vast online communities as fertile ground for AI development, leading to a remarkable first-day stock surge of 48 percent.

  2. Use AI as a customer-centric force multiplier. Companies with a deep understanding of their customer base are primed for AI success. By integrating AI into the very core of their product or service—the reason customers choose them—they can create a decisive competitive advantage based on delivering tangible customer value.

From Incremental Gains to Transformative Growth

This practical, customer-centric approach has the potential to help companies generate immediate growth while laying the foundation for future reinvention. By leveraging AI to optimize operations, deepen customer relationships, and redefine industry paradigms, late-state tech startups can not only survive but thrive in a dynamic market. The future belongs to those who embrace AI not as a destination but as a continuous journey of innovation and growth.

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Hong Ogle is the president of Bank of America Houston. Rodrigo Ortiz Gomez is a market executive in Bank of America’s Transformative Technology Banking Group as well as the national software banking lead for the Global Commercial Bank.

Houston joint venture secures $5.2M for AI-powered methane tracking tech

Fresh Funds

Houston-based Envana Software Solutions has received more than $5.2 million in federal and non-federal funding to support the development of technology for the oil and gas sector to monitor and reduce methane emissions.

Thanks to the work backed by the new funding, Envana says its suite of emissions management software will become the industry's first technology to allow an oil and gas company to obtain a full inventory of greenhouse gases.

The funding comes from a more than $4.2 million grant from the U.S. Department of Energy (DOE) and more than $1 million in non-federal funding.

“Methane is many times more potent than carbon dioxide and is responsible for approximately one-third of the warming from greenhouse gases occurring today,” Brad Crabtree, assistant secretary at DOE, said in 2024.

With the funding, Envana will expand artificial intelligence (AI) and physics-based models to help detect and track methane emissions at oil and gas facilities.

“We’re excited to strengthen our position as a leader in emissions and carbon management by integrating critical scientific and operational capabilities. These advancements will empower operators to achieve their methane mitigation targets, fulfill their sustainability objectives, and uphold their ESG commitments with greater efficiency and impact,” says Nagaraj Srinivasan, co-lead director of Envana.

In conjunction with this newly funded project, Envana will team up with universities and industry associations in Texas to:

  • Advance work on the mitigation of methane emissions
  • Set up internship programs
  • Boost workforce development
  • Promote environmental causes

Envana, a software-as-a-service (SaaS) startup, provides emissions management technology to forecast, track, measure and report industrial data for greenhouse gas emissions.

Founded in 2023, Envana is a joint venture between Houston-based Halliburton, a provider of products and services for the energy industry, and New York City-based Siguler Guff, a private equity firm. Siguler Gulf maintains an office in Houston.

“Envana provides breakthrough SaaS emissions management solutions and is the latest example of how innovation adds to sustainability in the oil and gas industry,” Rami Yassine, a senior vice president at Halliburton, said when the joint venture was announced.

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

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