Teaming up

The Cannon and Capital Factory announce new Houston-based partnership

The new partnership will result in Capital Factory-branded space in The Cannon's new 120,000-square-foot innovation hub, which is expected to open next month. Courtesy of The Cannon

Two major players in the Texas innovation ecosystem are teaming up for a partnership in Houston.

The Cannon, which is expected to open its 120,000-square-foot space later this summer, announced a partnership with Austin-based Capital Factory, a tech accelerator. The partnership will give Capital Factory space in The Cannon to provide remote mentorship and local programming for its Houston-based companies for six months throughout the cohort.

This alliance allows for more collaboration between Houston companies and mentors and resources across the state.

"The Texas Startup Manifesto is about leveraging the entire Texas startup ecosystem while honoring the unique contributions of each city and region," says Gordon Daugherty, co-founder and president of Capital Factory, in a release. "We can't deliver on that vision in Houston without the help of local partners like The Cannon and their collaborative attitude really sets them apart."

Capital Factory recently entered the Dallas market with the opening of a location in partnership with The Dallas Entrepreneur Center.

This new office space will result in two new hires for Capital Factory — both will be responsible to advancing the Texas-wide program. A venture associate position will be created to recruit and educate local companies. The associate will also find potential investments for the accelerator's venture fund, which has already invested in several Houston startups, including Apartment Butler, Groupraise, Hypergiant, and Zenus Biometrics in 2018.

The second new hire will be a mentor coordinator to seek out new mentors — not necessarily in Houston, as mentors can access startups through a software platform.

Capital Factory's space in The Cannon will be a branded office complete with Cisco Webex video conferencing equipment, according to the release, so that local Capital Factory startups can connect to mentors across the state. As an added plus, the entrepreneurs can also have access to The Cannon community, and vice versa. Capital Factory will also host events at The Cannon.

"We're thrilled that this partnership with Capital Factory will connect Houston startups with more resources," says Lawson Gow, founder and CEO of The Cannon, in the release. "These companies will have a chance to join an incredibly valuable network, and in return, Capital Factory will have the opportunity to invest in Houston's booming startup scene and diverse talent pool." (Gow is the son of InnovationMap's CEO.)

Houston startups stand to benefit from this partnership, according to Aaron Knape, co-founder and CEO of Houston-based sEATz, who says he's already seen the benefit of the alliance.

"The Cannon and Capital Factory's partnership has proven to be a game-changing resource for us, giving our team access to Capital Factory's incredible Accelerator platform while allowing our company to remain in Houston and continue to receive all of the benefits of The Cannon's growing entrepreneurial community," Knape says in the release.

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Building Houston

 
 

New partnership chair, Amy Chonis, gave her address at the 2021 GHP Annual Meeting. Sky Noir Photography by Bill Dickinson/Getty Images

With 2020 in the rearview, the Greater Houston Partnership is looking into the new year with a new board chair. In the GHP's 2021 Annual Meeting, the organization introduced how important developing the innovation community is in Houston.

In her remarks, this year's Partnership Chair Amy Chronis, who is the Houston managing partner at Deloitte, shared what she hopes to inspire in her tenure. Her statement can be boiled down to three major points.

It's time to modernize Houston's economy

Chronis says it's time to focus on tech and innovation — and that requires support from all aspects of the city.

"Here in Houston, we must be laser-focused on building a strong, diverse, 21st century economy," she says. "Over the past few years, entrepreneurs, investors, academic institutions, local government, and the corporate sector have come together to unite, grow, and promote Houston's startup ecosystem. The progress since 2016 is staggering."

Since 2016, Chronis says, venture capital investment in Houston has increased almost 250 percent to a record $714 million dollars raised in 2020. Additionally, she calls out 30 new startup development organizations that have sprung up around town — like the East End Maker Hub, The Cannon, The Ion, Greentown Labs, and so much more.

Chronis also calls out the importance of educational institutions, such as Rice University and the University of Houston.

It's the industries that drive innovation

There is a growing need to diversify Houston's economy away from just oil and gas, Chronis says it's Houston's core industries — energy, life sciences, aerospace, along with manufacturing and global logistics — that have made transformative steps.

"We've got momentum, but we still need to double down with work to do," Chronis says, identifying energy, life sciences, and aerospace as three pillars to drive success.

Regarding energy, Chronis touts Greentown Labs opening in Houston — but warns it's increasingly important to have big corporations promote the energy transition.

"From the super majors to the service firms and the increasing presence of renewable companies, Houston is at the forefront of driving the Energy 2.0 sector," she says.

When it comes to health care, Chronis remarks on the Texas Medical Center's success with the TMC Innovation Institute and the development of TMC3, a 37-acre research commercialization campus.

"What's special about TMC3 is that it will create collaboration and innovation at scale," she adds. "It will be a catalyst that will advance Houston's position as the Third Coast for Life Sciences."

Lastly, Houston must maintain its moniker as the Space City — and the city has a lot of opportunities to do that with the development of the Houston Spaceport at Ellington Airport and the NASA Johnson Space Center.

"Houston is already home to a rich talent pool of nearly 23,000 aerospace manufacturing professionals and more than 500 aerospace and aviation companies and institutions, but the potential is so much greater," Chronis says.

Houston needs to focus on four areas to "drive a technological renaissance"

Chronis concludes her speech with some calls to action. She first acknowledges that corporations ask themselves about how they are promoting and valuing innovation.

"We must be committed to inspiring, cultivating and rewarding technological innovation," Chronis says. "How is your company partnering with startups, higher education institutions and other stakeholders to drive innovation?"

Next, Chronis calls out Houston's global diversity as a differentiator when it comes to attracting companies to Houston, and she cites HPE as an example.

"We know there are hundreds of tech companies in the Valley, and up and down the West and East coasts that are striving to build global diversity within their companies," she says. "There is no better place than Houston to do this."

Third, Chronis calls for everyone — from corporates to educations — to empower the next generation of innovators.

And, finally, she says it's time to spread the word about Houston.

"We are modern, sophisticated, and at our core, an incredibly global city. Global in a way that sets us apart from most U.S. metros," she says. "So, as we embark on this work to drive Houston's technology renaissance, we must ensure perceptions of Houston are aligned with reality."

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