At a startup pitch competition, a local nonprofit won free coworking space for a year to continue their impactful work with individuals with special needs. Photo courtesy of Macy's Miracles

Macy's Miracles, a local nonprofit that helps people with special needs, had a special need of its own: a place to call home. Now, thanks to coworking operator WorkLodge LLC, it has one.

On February 27, representatives of Macy's Miracles and Houston-based WorkLodge held a ribbon-cutting ceremony for the nonprofit's first-ever office. The organization (not affiliated with the Macy's department store chain) won the second annual Shark Tank-inspired Ignite by WorkLodge pitch contest, which awards a one-year WorkLodge lease to a local nonprofit. Macy's Miracle now occupies space at WorkLodge's site in The Woodlands.

Previously, leaders of the nonprofit had carried out business at various public places like coffee shops. Today, the nonprofit enjoys a startup-style setting — including access to meeting rooms and common areas — that enables it to operate more like a business and less like an organization on a shoestring budget.

Haley Ahart-Keiffer, founder and president of Macy's Miracles, says the free one-year lease of a four-person office at WorkLodge (valued at $24,000) is "priceless."

For one thing, being located at WorkLodge opens up fundraising opportunities. In the past, Macy's Miracles ran into roadblocks when prospective corporate sponsors inquired about meeting at the nonprofit's office, Ahart-Keiffer says. But the nonprofit had no formal address to give them.

Now that Macy's Miracles is housed at WorkLodge, folks associated with the nonprofit can more professionally host potential corporate donors and can network with Houston businesses, Ahart-Keiffer says.

As a matter of fact, that networking paid off at the ribbon-cutting ceremony, according to Ahart-Keiffer. For instance, it exposed WorkLodge tenants to potential employees — people attending the ceremony who benefit from services delivered by Macy's Miracles. In addition, the event paved the way for meetings with three businesses interested in assisting Macy's Miracles.

Aside from fostering opportunities for networking, the WorkLodge space lets Macy's Miracles more easily conduct mentorship programs and put on events, according to Ahart-Keiffer.

Being based at WorkLodge "has allowed us to really take it to the next level by being able to seek out even larger corporate sponsors and donors to be a part of the mission," she says.

That mission, carried out since the formation of Macy's Miracles in 2018, centers on elevating the education, networking skills, and employability of people with special needs. Aside from boosting the ability to raise more money for that mission, the WorkLodge space introduces high-functioning people with special needs to a work environment, Ahart-Keiffer says.

In a short amount of time, setting up shop at WorkLodge "has changed the trajectory of where we see that we can go now," she says.

Part of the nonprofit's new trajectory is its soon-to-launch Adaptive Center of Excellence, featuring a vocational/trade initiative and an adaptive sports program.

Ahart-Keiffer didn't envision the current scenario when she established Macy's Miracles two years ago. She established the nonprofit as a "grassroots movement" after her daughter Macy Savoy, who is part of the special needs community, faced a less-than-ideal future in the workforce after graduating from high school. Savoy is CEO of the volunteer-run nonprofit.

Mike Thakur, founder and CEO of WorkLodge, says Ignite by WorkLodge is designed to offer free high-quality space so that nonprofits like Macy's Miracles "take their game up a notch and attract some more support." The contest is geared toward smaller nonprofits making a "hands-on, roll-up-your-sleeves" difference in the community, he says.

In addition to Macy's Miracles securing space at WorkLodge's location in The Woodlands, Ignite by WorkLodge recently granted space to a Dallas nonprofit that's now a tenant at the coworking company's location in the Dallas Design District.

WorkLodge currently operates five coworking spaces: two in the Houston area, two in Dallas-Fort Worth, and one in Tampa-St. Petersburg, Florida.

Thakur says one of the reasons Macy's Miracles received the free space at WorkLodge is that it serves both children and adults.

"But I think the main thing was just the fact that they were delivering help in a way that could then create self-sustainability," says Thakur, whose company runs its own nonprofit foundation. "That's a really big deal for us."

It's also, of course, a big deal for Macy's Miracles. The nonprofit's free one-year lease expires around the end of the year, but Ahart-Keiffer says the Macy's Miracles plans to carve out money in its budget to pay for space at WorkLodge. In conjunction with that, Macy's Miracles will teach some of the members of its mentorship program about fundraising and budgeting.

"I don't think it's a place that we'll ever want to leave," Ahart-Keiffer says. "WorkLodge is definitely the perfect spot for us and what we do."

Houston-based WorkLodge announced its annual contest to give away a year of free work. Getty Images

Houston coworking space to give away a free year of workspace to a worthy startup

Need space?

WorkLodge, a Houston-based coworking space franchise, is again offering up a chance for a free year of space for a lucky startup in town.

IGNITE by WorkLodge, an annual program, launched on March 14 and closes on April 7. Applicants can enter for free at ignitebyworklodge.com. The form asks for business ownership details, marketing, basic financial information, and entrepreneurial vision questions, per the website.

If selected as a finalist, the startup founder will pitch their business at a judging panel on April 11 at 6:30 p.m. at WorkLodge's Woodland location located at 25700 I-45 Suite 400. It's at this event where a winner will be selected.

"During our previous IGNITE By WorkLodge for nonprofits office giveaway, we saw an astonishing turnout of individuals with incredible business concepts and no central office to help their dreams become reality," says WorkLodge CEO Mike Thakur in a release. "Through IGNITE By WorkLodge, our goal is to serve as the invisible supporters, knowledgeable mentors, and loudest cheerleaders for our community's startups. We're happy to give one lucky business the freedom to focus on their meaningful work in an environment designed for growth."

IGNITE by WorkLodge also has a contest for nonprofits, which begins accepting applications on October 1. Last year's nonprofit winner was Mythiquer Pickett, founder of The Woodlands-based nonprofit, We See Abilities.

"Winning IGNITE By WorkLodge has greatly impacted We See Abilities — finally a place we can call home," Pickett says on the program's website. "Businesses, family, and friends can see we have an established imprint in the community with this brand-new office by WorkLodge."

WorkLodge was founded in 2015 in Houston. The company has two locations in Houston — one in The Woodlands and one in Vintage Park. Dallas has two locations, Fort Worth has one, and St. Petersburg, Florida, is sixth location and only office outside of Texas.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Houston is the 4th best U.S. city for Black professionals, report finds

Black History Month

In acknowledgement of Black History Month 2024, a new report compiled by Black employees at online rental marketplace Apartment List has ranked Houston the No. 4 best U.S. city for Black professionals.

Apartment List reviewed 76 cities across four major categories to determine the rankings: community and representation; economic opportunity; housing opportunity; and business environment.

Houston earned a score of 63.01 out of a total 100 points, making it the second-highest-ranked city in Texas for Black professionals, behind San Antonio (No. 3).

The city earned top-10 rankings in three out of the four main categories:

  • No. 3 – Business environment
  • No. 4 – Community and representation
  • No. 10 – Economic opportunity
  • No. 21 – Housing opportunity

Houston is commended for its strong Black business environment and economy, but there is some room for improvement when it comes to housing. Similarly to Apartment List's 2022 report – which also placed Houston at No. 4 – a little less than half (44 percent) of all Black Houston households are spending over 30 percent of their income on housing, which has increased two percent since 2019.

Houston has a larger Black population than San Antonio, at 19 percent, but its Black population share is overall lower than other cities in the top 10.

"Furthermore, the community is well-represented in some critical occupations: 20 percent of teachers are Black, as are 21 percent of doctors," the report said. "Houston is also home to the HBCU Texas Southern University, helping a job market when the median Black income is several thousand dollars above average."

Houston also has the highest rate of Black-owned businesses in the entire state, at 18 percent.

"From the Mitochondria Gallery to Ten Skyncare and Wisdom’s Vegan Bakery, Houston has it all!" the report said.

Here's how Houston stacked up in other metrics:

  • Black homeownership: 42 percent
  • Black lawyers: 14 percent
  • Black managers: 14 percent

Elsewhere in Texas
Texas cities dominated the overall top 10. San Antonio ranked just above Houston, with Dallas (No. 6) and Austin (No. 7) not too far behind.

San Antonio came in less than 2.5 points ahead of Houston with a total score of 65.44 points. The report praised San Antonio's scores across its economic opportunity (No. 2), housing opportunity (No. 7), and community and representation (No. 10). The city ranked No. 20 for its Black business environment.

But like Houston, San Antonio also fell behind in its Black homeownership rates, according to the study.

"While the Black homeownership rate is higher than average at 44 percent, the homeownership gap (Black homeownership rate - non-Black homeownership rate) quite low at -19 percent," the report's author wrote. "Perhaps this could be explained by San Antonio’s overall homeownership rate, which is also lower than the state’s average. Additionally, the lower homeownership gap could explain the cost burden rate also being lower than average at 41 percent."

The top 10 cities for Black professionals are:

  • No. 1 – Washington, D.C.
  • No. 2 – Atlanta, Georgia
  • No. 3 – San Antonio, Texas
  • No. 4 – Houston, Texas
  • No. 5 – Palm Bay, Florida
  • No. 6 – Dallas, Texas
  • No. 7 – Austin, Texas
  • No. 8 – Colorado Springs, Colorado
  • No. 9 – Lakeland, Florida
  • No. 10 – Charlotte, North Carolina
The full report and its methodology can be found on apartmentlist.com.

------

This article originally ran on CultureMap.

Houston expert: Can Houston replicate and surpass the success of Silicon Valley?

guest column

Anyone who knows me knows, as a Houston Startup Founder, I often muse about the still developing potential for startups in Houston, especially considering the amount of industry here, subject matter expertise, capital, and size.

For example, Houston is No. 2 in the country for Fortune 500 Companies — with 26 Bayou City companies on the list — behind only NYC, which has 47 ranked corporations, according to Fortune.

Considering layoffs, fund closings, and down rounds, things aren’t all that peachy in San Francisco for the first time in a long time, and despite being a Berkeley native, I’m rooting for Houston now that I’m a transplant.

Let’s start by looking at some stats.

While we’re not No. 1 in all areas, I believe we have the building blocks to be a major player in startups, and in tech (and not just energy and space tech). How? If the best predictor of future success is history, why not use the template of the GOAT of all startup cities: San Francisco and YCombinator. Sorry fellow founders – you’ve heard me talk about this repeatedly.

YCombinator is considered the GOAT of Startup Accelerators/Incubators based on:

  1. The Startup success rate: I’ve heard it’s as high as 75 percent (vs. the national average of 5 to 10 percent) Arc Search says 50 percent of YC Co’s fail within 12 years – not shabby.
  2. Their startup-to-unicorn ratio: 5 to 7 percent of YC startups become unicorns depending on the source — according to an Arc Search search (if you haven’t tried Arc Search do – super cool).
  3. Their network.

YC also parlayed that success into a "YC Startup School" offering:

  1. Free weekly lessons by YC partners — sometimes featuring unicorn alumni
  2. A document and video Library (YC SAFE, etc)
  3. Startup perks for students (AWS cloud credits, etc.)
  4. YC co-founder matching to help founders meet co-founders

Finally, there’s the over $80 billion in returns, according to Arc search, they’ve generated since their 2005 inception with a total of 4,000 companies in their portfolio at over $600 billion in value. So GOAT? Well just for perspective there were a jaw-dropping 18,000 startups in startup school the year I participated – so GOAT indeed.

So how do they do it? Based on anecdotal evidence, their winning formula is said to be the following well-oiled process:

  1. Bring over 282 startups (the number in last cohort) to San Francisco for 90 days to prototype, refine the product, and land on the go-to-market strategy. This includes a pre-seed YC SAFE investment of a phased $500,000 commitment for a fixed min 7 percent of equity, plus more equity at the next round’s valuation, according to YC.
  2. Over 50 percent of the latest cohort were idea stage and heavily AI focused.
  3. Traction day: inter-portfolio traction the company. YC has over 4,000 portfolio companies who can and do sign up for each other’s companies products because “they’re told to."
  4. Get beta testers and test from YC portfolio companies and YC network.
  5. If they see the traction scales to a massively scalable business, they lead the seed round and get this: schedule and attend the VC meetings with the founders.
  6. They create a "fear of missing out" mentality on Sand Hill Road as they casually mention who they’re meeting with next.
  7. They block competitors in the sector by getting the top VC’s to co-invest with then in the seed so competitors are locked out of the A list VC funding market, who then are up against the most well-funded and buzzed about players in the space.

If what I've seen is true, within a six-month period a startup idea is prototyped, tested, pivoted, launched, tractioned, seeded, and juiced for scale with people who can ‘make’ the company all in their corner, if not already on their board.

So how on earth can Houston best this?

  1. We have a massive amount of businesses — around 200,000 — and people — an estimated 7.3 million and growing.
  2. We have capital in search of an identity beyond oil.
  3. Our Fortune 500 companies that are hiring consultants for things that startups here that can do for free, quicker, and for a fraction of the extended cost.
  4. We have a growing base of tech talent for potential machine learning and artificial intelligence talent
  5. A sudden shot at the increasingly laid off big tech engineers.
  6. We have more accelerators and incubators.

What do we need to pull it off?

  1. An organized well-oiled YC-like process
  2. An inter-Houston traction process
  3. An "Adopt a Startup" program where local companies are willing to beta test and iterate with emerging startup products
  4. We have more accelerators but the cohorts are small — average five to 10 per cohort.
  5. Strategic pre-seed funding, possibly with corporate partners (who can make the company by being a client) and who de-risk the investment.
  6. Companies here to use Houston startup’s products first when they’re launched.
  7. A forum to match companies’ projects or labs groups etc., to startups who can solve them.
  8. A process in place to pull all these pieces together in an organized, structured sequence.

There is one thing missing in the list: there has to be an entity or a person who wants to make this happen. Someone who sees all the pieces, and has the desire, energy and clout to make it happen; and we all know this is the hardest part. And so for now, our hopes of besting YC may be up in the air as well.

------

Jo Clark is the founder of Circle.ooo, a Houston-based tech startup that's streamlining events management.

New Houston venture studio emerges to target early-stage hardtech, energy transition startups

funding the future

The way Doug Lee looks at it, there are two areas within the energy transition attracting capital. With his new venture studio, he hopes to target an often overlooked area that's critical for driving forward net-zero goals.

Lee describes investment activity taking place in the digital and software world — early stage technology that's looking to make the industry smarter. But, on the other end of the spectrum, investment activity can be found on massive infrastructure projects.

While both areas need funding, Lee has started his new venture studio, Flathead Forge, to target early-stage hardtech technologies.

“We are really getting at the early stage companies that are trying to develop technologies at the intersection of legacy industries that we believe can become more sustainable and the energy transition — where we are going. It’s not an ‘if’ or ‘or’ — we believe these things intersect,” he tells EnergyCapital.

Specifically, Lee's expertise is within the water and industrial gas space. For around 15 years, he's made investments in this area, which he describes as crucial to the energy transition.

“Almost every energy transition technology that you can point to has some critical dependency on water or gas,” he says. “We believe that if we don’t solve for those things, the other projects won’t survive.”

Lee, and his brother, Dave, are evolving their family office to adopt a venture studio model. They also sold off Azoto Energy, a Canadian oilfield nitrogen cryogenic services business, in December.

“We ourselves are going through a transition like our energy is going through a transition,” he says. “We are transitioning into a single family office into a venture studio. By doing so, we want to focus all of our access and resources into this focus.”

At this point, Flathead Forge has seven portfolio companies and around 15 corporations they are working with to identify their needs and potential opportunities. Lee says he's gearing up to secure a $100 million fund.

Flathead also has 40 advisers and mentors, which Lee calls sherpas — a nod to the Flathead Valley region in Montana, which inspired the firm's name.

“We’re going to help you carry up, we’re going to tie ourselves to the same rope as you, and if you fall off the mountain, we’re falling off with you,” Lee says of his hands-on approach, which he says sets Flathead apart from other studios.

Another thing that's differentiating Flathead Forge from its competition — it's dedication to giving back.

“We’ve set aside a quarter of our carried interest for scholarships and grants,” Lee says.

The funds will go to scholarships for future engineers interested in the energy transition, as well as grants for researchers studying high-potential technologies.

“We’re putting our own money where our mouth is,” Lee says of his thesis for Flathead Forge.

------

This article originally ran on EnergyCapital.