Startup marketing: How Houston founders should approach their strategy

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In the startup world, marketing is not just lead generation. This Houston expert explains. Photo via Getty Images

Until recently, the concept of marketing within the startup sphere was often equated solely with lead-generation. It's not entirely inaccurate to say that "marketing is lead-generation," as revenue generation is undeniably the end goal of marketing efforts.

However, what tends to be overlooked by founders is the intricate path to achieving revenue generation and how marketing can pave the way. I firmly believe that a similar paradigm exists in the realm of B2C marketing.

Distinguishing "Marketing" from "marketing"

I'd like to start by establishing a distinction between Marketing and marketing. This distinction might not be perfect, but it encapsulates how I conceptualize these concepts. When I refer to Marketing with a capital "M," I'm alluding to the overarching strategies that companies employ to drive revenue through marketing and advertising activities. This is the domain of the chief marketing Officer. The role of a CMO entails overseeing marketing and advertising efforts to ensure their alignment and efficiency in achieving the company's broader strategic goals.

Given this concept, where should a startup begin when figuring out their marketing strategy?

The role of brand

There is a common tendency amongst startups to create a product, establish a name, and swiftly attempt to enter the market. While the initial step for a startup involves achieving product-market fit, I advocate that once this milestone is reached, startups should pause to invest time in crafting their brand identity. Branding serves as the facet of a company that sets it apart and defines itself. This encompasses articulating a vision, mission, and values. Founders have the opportunity to shape their company's voice, articulate how they add value to customers, and delineate the organizational culture they aspire to foster. This phase is pivotal because it establishes the foundational elements that necessitate internal alignment for efficient scalability.

Once the brand is established, it can be handed over to a skilled marketer to start driving revenue growth. However the path to revenue growth goes straight through brand awareness.

Distinguishing marketing from advertising

This distinction can be perplexing, as the activities described here largely fall under the Marketing umbrella. However, I find it beneficial to differentiate between marketing and advertising within the broader context of Marketing strategy. Marketing revolves around cultivating brand awareness. Marketing is about building brand awareness. In marketing campaigns the wording can be about the company and its team. While I don’t recommend the old visuals of people in a boardroom having meetings, it’s ok to talk about the people and goals of the company in marketing campaigns. What does your brand represent? What is your product? What do you do? Who are your people? What are your values? It’s ok to share all of these things, and depending on the channel a company is marketing on, their marketing person will be well equipped to display this.

Advertising has a different tone and purpose. When advertising a company is talking to their customer, and offering the customer a solution to their pain and problem. This is a company’s what. I assume that a company that has made it this far offers a solution that is a cure, and not a nice-to-have.

Most advertising campaigns follow a simple formula, “are you suffering from X?” with a clear answer of “our company can solve that with Y”. If the answer to the pain question is yes, there is a good probability that the person will click on the ad they are seeing. That probability improves when the advertising campaign is layered on top of a well executed brand awareness campaign.

The significance of brand awareness

Although I'm not a psychologist, I do recognize the potency of the subconscious mind. This isn't about psychological manipulation, but rather an acknowledgment that the subconscious retains more than the conscious mind is capable of. Unlocking this potential might be challenging for individuals, but for marketers, the process is comparatively more accessible. Present information to an individual, and as long as they see it, their subconscious mind will register and retain it. This underscores the importance of brand awareness in revenue generation. By exposing a target audience to the company’s messaging through brand awareness campaigns, enhances the likelihood of engagement.

This fundamentally reshapes how companies connect with their ICP.

The nuance of timing

When an individual encounters advertising, a part of their brain will recognize the brand and might even associate it positively. This underscores the criticality of brand awareness, as it allows companies to focus on their target audience and continuously engage them until they are ready to make a purchase. Determining the precise moment when a customer is ready to buy is nearly impossible. However, this moment invariably arises, usually propelled by a pain point. When that decisive moment arrives, the goal is for the company’s brand to be the first that comes to their mind or that they see. This necessitates an ongoing investment in brand awareness campaigns.

So what does this mean in the context of startups?

A capital-efficient marketing approach

A key component of any Marketing strategy is capital efficiency. Founders must familiarize themselves with crucial metrics, such as:

  1. Customer Acquisition Cost (CAC): What is the expense of acquiring each customer?
  2. Customer Lifetime Value (CLTV or LTV): What is the anticipated revenue generated from engaging this customer?

While it's acceptable to commence with assumptions, any shifts in these assumptions warrant corresponding adjustments in a Marketing budget.

In the initial stages of a company’s lifecycle, a significant portion of sales might stem from direct, personalized selling efforts. This entails founders engaging in activities like providing software demos for enterprise sales or conducting face-to-face interactions within the target market. However, as revenue grows, capital is raised, and founders transition from selling to leading, this selling strategy should be phased out. This also marks the moment for founders to begin contemplating their Marketing budgets.

A starting point for figuring out your Marketing budget can be based on a CAC to LTV ratio of 1:3, where CAC is a third of your LTV. Once you have determined your CAC to LTV ratio, you need to determine what your revenue goal is, and then set your marketing budget based on that. Finally, you need to divide your Marketing budget between marketing and advertising activities. Depending on the stage the company is at, the division should be around 60% for marketing and 40% for advertising to start. This is to enable brand awareness to work its magic to build an audience for retargeting.

If you’re unsure about how to proceed, we can talk.

In the upcoming months, I intend to delve deeper into several topics:

  1. Founder-Led Storytelling
  2. The Imperative of Building Brand Awareness
  3. Delineating the Distinctions Between Marketing and Advertising and How They Synergize
  4. The Necessity of Outbound Email Marketing
  5. The Power of Marketing Email Automation in Nurturing Your Endeavors
  6. Embarking by Selling Your "What"

I hope these insights contribute value to the founder journey.

Should you have any questions I can help with, please don't hesitate to connect with me on LinkedIn.

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Yosef Levenstein is the chief marketing officer and venture partner at Golden Section Ventures.

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The music industry has adapted to the digital age — so should financial securities. Getty Images

The financial industry needs to digitize not tokenize, says this Houston expert

Guest column

One of my favorite movies growing up was Empire Records. It was the mid-1990s, and the closest we got to Instagram feeds was who had the best mixtapes. If you're not familiar with Empire Records (or what a mixtape is), I recommend watching the movie, but you don't have to worry too much about mixtapes any more.

Since Empire Records was released in 1995, the way we purchase and consume music has fundamentally changed. The physical music store was displaced by iTunes, and then the music industry evolved even further into a streaming economy. It took 24 years, but music evolved and it now operates in a fundamentally different way. Digitization of music was initially viewed as an existential threat to the industry, but in the end, music was digitized globally and the music industry very much survived.

The music industry has evolved and adapted to the digital age. The same happened across countless other industries, including financial services. Today we can invest in publicly traded stocks through a mobile app for free. However, a critical segment of capital markets has not evolved yet. The private securities space.

Transactions in private securities are still done on paper (no, DocuSign does not count as securities digitization.) Administrative costs are kept high due to the amount of paper that is processed and pushed through this system. As long as the foundation of private securities is paper, there is no amount of administrative technology out there to create an efficient market.

Public markets took the plunge into digital long before music did, and digitization of public markets enabled exponential growth globally. Trading volume, access to capital, and liquidity have all increased, and a large part of that can be attributed to the efficient and transparent nature of most public exchanges.

Efficient markets rely on price transparency and information equality. Currently, the private securities markets do not offer either of these characteristics. This is nothing new to people in the alternatives space, but how to reach these lofty goals, to create liquidity and reduce costs, is what I am excited about.

The reduction of cost does not relate only to commissions. There are administrative costs associated with private securities. Information distribution is slow and unilateral, forcing investors to depend on antiquated systems in order to track their investments. Nearly all of these costs are absorbed by the investor, and most efforts to date have not helped address the core issue, analog private security transactions.

Digitization of private securities is fundamentally different than tokenization. Tokenized securities are considered bearer securities. A digitized security, on the other hand, maintains its original status as a registered security, as long as its digitization is implemented in a manner that fits current regulatory requirements. Until recently, that had not been possible in a scalable way. Blockchain changed all of that.

Initial attempts at utilizing blockchain for private markets applied tokenization. Essentially, this configuration took securities that had clearly defined ownership records, anonymized them and put them on a public blockchain such as Ethereum. While there are some benefits to this approach, it also opened doors to significant fraud and securities regulation violations. Tokenization may provide liquidity, but the long-term risk far outweighs the value of liquidity for any prudent investor.

Blockchain does provide a framework that supports compliant digitization of private investments, it's simply not tokenization. The solution lies in using private permissioned blockchains that allow an appropriate degree of technical security while also ensuring transparency and accountability.

Blockchain enables us to maintain a statement of record that is both compliant, and scalable. Across the financial services industry, and across most other industries, blockchain is being deployed to help solve problems that were previously unmanageable. The blockchain is even helping farmers track their crops through IBM's blockchain. iownit has integrated blockchain at the core of our technology, proving that compliant digitization of private securities is possible and scalable.

The United States has a free market economy, so in the end, winners are determined by the market. It is our belief that the digitization of private securities is the responsible way to help this industry evolve. If you're still skeptical, just look at how the public securities markets have evolved since the '70s when electronic stock trading was enabled and the first digital public security trade was placed. Now try and imagine how private security markets will look in four years.

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Yosef Levenstein is the head of marketing at iownit, a Houston-based financial technology firm that is democratizing how investors and private companies transact.

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UH secures $5M in philanthropic gifts to bolster engineering, nursing

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The University of Houston has received two significant philanthropic gifts to advance innovation and healthcare, the college announced this month.

Manmohan Singh Kalsi and Marie-Luise Schubert Kalsi granted $4 million to UH’s Cullen College of Engineering to support endowed and current funds for graduate fellowships and industry interest in the mechanical and aerospace fields.

The gift is the Department of Mechanical and Aerospace Engineering’s largest donation in years, according to UH, and will establish two endowed professorships to attract and retain leading faculty. It will also create the Kalsi Faculty Research Fund, which aims to take emerging research to the next level.

Additionally, UH says it will also bring industry experts to campus to present and collaborate with students via the forthcoming Kalsi Seminar Series.

Manmohan Kalsi earned both his master’s degree and Ph.D. in mechanical engineering from UH. He went on to found Sugar Land-based Kalsi Engineering in 1978, which pioneered hydrodynamic rotary sealing technology and valve technology for nuclear power plants. In 2014, he established an endowed professorship within Cullen College in honor of the late UH professor Gabriel Fazekas.

"This gift provides a tremendous boost to our department's strategic momentum,” Karolos Grigoriadis, chair of the Department of Mechanical and Aerospace Engineering, said in a news release. “By simultaneously supporting faculty, graduate researchers and collaborative seminars, the Kalsis are strengthening every part of our research enterprise and creating new opportunities for discovery, collaboration and student mentorship.”

Meanwhile, Houston’s The Hamill Foundation also gave a $1 million gift to UH’s Andy and Barbara Gessner College of Nursing. The funds will establish The Hamill Foundation Endowed Professorship in Community Care Nursing, to support a faculty member focused on community-based nursing education, partnerships, research, and outreach to underserved communities in Houston.

Additionally, the funding will go toward efforts to address nurse shortages through the newly established UH Health program. The Hamill Foundation has donated $6 million previously to UH through the years, but the latest $1 million is the largest single investment from the foundation to date.

“The Hamill Foundation continues to help us raise the bar for nursing education and address the nursing shortage,” Kathryn Tart, founding dean and professor at Gessner College and Humana Endowed Dean's Chair in Nursing, said in a news release. “The enduring commitment and generosity of The Hamill Foundation allow us to answer the call and educate generations of competent and caring nursing professionals.”

Both of the recent gifts help fund UH’s $1 billion Can’t Stop Houston: The Centennial Campaign. As of September, the university had raised more than $881 million. UH turns 100 years old in March 2027.

SpaceX's supersized Starship rocket launches into orbit for first time

Out in Space

SpaceX launched its enormous Starship into orbit for the first time Monday, September 28, and successfully delivered the most advanced Starlink satellites yet, but cut the flight short to ensure safety.

The spacecraft reentered over the Pacific and splashed down north of Hawaii three hours after blasting off from Texas. The company had been aiming for a 10-hour flight, spanning six full laps around Earth, to prove its readiness for NASA’s Artemis moon program.

Starship tipped over and erupted in flames upon splashdown, a dramatic end to the mission.

Elon Musk's Starship almost didn't make it to orbit when one of its engines shut down prematurely. But with everything else working well and the bad engine no longer needed, flight controllers decided, after several tense minutes, to proceed as planned.

“Starship is orbital,” Mission Control announced to cheers.

NASA Administrator Jared Isaacman congratulated SpaceX on reaching orbit and “managing every step in a safe, responsible and especially inspirational way.”

Rocket carries 26 of Musk's most advanced Starlink satellites

Musk’s showpiece rocket — the biggest and most powerful ever built — carried 26 of the latest Starlinks to join the 11,000 older models already providing internet service. They popped out of the spacecraft one by one, drawing more cheers from the SpaceX crowd at the Starbase launch site.

The decision to end the flight early came soon afterward. SpaceX said hours later in an online update that the decision was made “out of an abundance of caution” because of the early engine trouble.

It was Starship’s 14th full-scale launch from Texas’ southern tip in three years. Earlier test flights ventured no farther than the Indian Ocean halfway around the world, often crashing in flames and briefly skimming space.

This time, the intent was for SpaceX to circle the globe from an altitude of 170 miles (275 kilometers) — not just once but six times over almost 10 hours, ending with a Pacific splashdown near Chile. While Starship achieved the proper orbit, zipping along at 17,500 mph (28,000 kph), flight controllers opted to play it safe and bring it back several hours sooner, after just a couple of laps.

The first-stage booster was never meant to return to the Starbase launch site either, dropping instead into the Gulf of Mexico within minutes of the morning liftoff.

SpaceX wants to ensure that everything works before flying Starship back to Starbase. If the spacecraft breaks apart over land and rains debris onto people, “our popularity would diminish very rapidly,” Musk said at a business summit earlier this month. “That’s why we’re being extremely cautious here.”

Depending on the findings from Monday's orbital debut, the next Starship could return to the launch pad, where giant mechanical arms would grab the hovering spacecraft. If the catch works — Musk gives it even or slightly better odds — then SpaceX will refly the spacecraft by year’s end or early next year.

The 407-foot (124-meter) rocket was designed from the start to be fully reusable, a key to lowering launch costs. SpaceX managed to salvage the last Starship from the Indian Ocean in July. Engineers modified the newly launched Starship’s heat shield based on hands-on inspections of the recovered spacecraft, which is being tugged back to Starbase.

SpaceX wants Starship to be certified for orbital flight

SpaceX is pressing hard to certify Starship for orbital flight, a vital step toward moon and Mars travel.

NASA’s Artemis III mission is coming up as soon as next summer, a triple-launch docking exercise in orbit around Earth between an Orion capsule full of astronauts and competing lunar landers. Jeff Bezos’ Blue Moon would blast off first, followed by Orion — which would close in for a linkup — and then Musk’s Starship for a docking with Orion once Blue Moon is unleashed.

The next mission, Artemis IV, is slated for no sooner than 2028 and would have astronauts landing on the moon in either Blue Moon or Starship, whichever is ready first. Subsequent moonshots will alternate between the two billionaires’ landers.

Musk originally developed Starship for Mars, intending to launch scores of them with the red planet’s first settlers. For now, he plans to focus on the moon and use Starship to haul satellites into orbit by the truckload, phasing out the company’s frailer Falcon 9 rocket within several years. A second Starship launch site is nearing completion at Florida’s Kennedy Space Center and a third is planned for Louisiana.

Houston startup raises $2.4M for sleep apnea technology

sleep score

Houston-based Bairitone Health has closed an oversubscribed seed round and achieved a regulatory milestone, the company tells InnovationMap.

The healthtech startup, which is developing solutions and technology for untreated obstructive sleep apnea (OSA), raised $2.4 million, says CEO and co-founder Meagan Pitcher, exceeding its $2 million goal.

New York-based Golden Seeds, which invests in female entrepreneurs, led the round. Houston-based South Loop Ventures also participated, as well as MALIAM, Impact Invest Her and additional angel, venture, syndicate and family office investors. The company previously raised a pre-seed round of $435,000 in 2024.

Pitcher says the latest funding will go toward Bairitone's clinical site expansion, FDA-facing work and the continued product development of its SOMNAR technology.

"What I’m most excited about is what this lets us do next: expand our clinical testing, work with more patients and physicians, and keep improving based on what we learn," Pitcher said in a LinkedIn post.

SOMNAR is the company's noninvasive diagnostic platform for sleep apnea airway assessment. The platform maps users' anatomy during natural sleep using a facial patch to determine the root cause of airway obstruction. It then offers effective therapies for each patient.

SOMNAR received Breakthrough Device Designation from the Food and Drug Administration in April. It is currently for investigational use only and is still pending FDA clearance. The new designation aims to help speed up development, assessment and review for premarket approval for medical devices, according to the FDA. It will also give Bairitone more opportunities to interact directly with FDA experts to make the approval process more efficient.

Bairitone was founded in 2022 in the Texas Medical Center's Biodesign program by Pitcher, CTO Onur Kilic and chief medical officer Britt Cross. It was a member of Activate Houston's inaugural cohort and has participated in numerous accelerators and incubators.

The company was a finalist for the Houston Innovation Awards in 2025 and 2024.

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