Houston voices

How small business accelerators can help Houston startups take off

“Small business incubators serve as the foundation of most innovation ecosystems." Graphic byMiguel Tovar/University of Houston

If you plan to start a new business or already have but you don’t have an office or lab space, why should you consider working with a small business incubator?

An incubator is an organization that offers assistance and resources to help newly-formed businesses get started and supports them as they move forward. Small business incubators also provide space to house these companies in a shared work environment.

According to the executive director of the University of Houston Office of Technology Transfer and Innovation, Christopher Taylor, “Small business incubators serve as the foundation of most innovation ecosystems and for startups, these hubs provide connectivity, support, and resources they can leverage to improve their odds of success.”

Community connectivity

In a small business blog on Chron.com, the author points out that even after a business leaves an incubator, the connections they make with other business owners are relationships that will continue to grow. There, startups can learn and grow together and, in turn, incubators foster a continuously growing community by looking for businesses and growing companies that serve the same field.

For example, an incubator that is focused on technology will look for companies that are in the technology sector. At Texas Medical Center Innovation, two programs support the development of health technologies. The Cancer Therapeutics Accelerator is a nine-month program where startups get support in market and technical research. The Health Tech Accelerator is a six-month program for digital health and medical device startups.

Startup support

Business incubators offer support in many ways, including critical services that help move businesses forward.

For example, the UH Technology Bridge connects new business owners to the Small Business Development Center, where they can get help with all their preliminary operational tasks. Companies housed at incubators also gain access to programming like focused workshops that cover how to find funding, how to build a business strategy and other business fundamentals.

Startup incubators also give startups with limited funds access to expensive equipment that they would otherwise not be able to afford. They also offer office space, usually at a lower cost than other commercial space. These spaces usually include office amenities such as central printing and conference rooms. They are able to offer lower costs because they are usually funded by a school, city or investors.

Some for-profit incubators make money by directly selling their services to startups or others. Some may make money indirectly, meaning their services generate sales for other services.

The Big Idea

“Many successful startups come out of incubators because they have the ability to create tremendous velocity as companies work towards commercializing their technologies,” Taylor said.

Starting a business is not an easy feat. But incubators can help improve a startup’s chances of success.

If you are in the Houston area and looking to partner with a small business incubator, visit the UH Technology Bridge, The Cannon, The Rice Alliance or any of the other many incubators in the area.

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This article originally appeared on the University of Houston's The Big Idea. Cory Thaxton, the author of this piece, is the communications coordinator for The Division of Research.

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Building Houston

 
 

A Houston startup that created a remote monitoring and care platform has raised millions in financing. Image via michealthcare.com

A virtual health care and analytics provider startup has closed its latest round of funding for a total of $27 million in financing.

Medical Informatics Corp. closed a $17 million series B co-led by Maryland-based Catalio Capital Management and California-based Intel Capital. The financing also includes an additional $10 million in debt led by Catalio through Catalio’s structured equity strategy, according to a news release.

“We are excited to have had this round co-led by Catalio and Intel Capital," says Emma Fauss, CEO and co-founder of MIC, in the release. "Catalio brings significant financial and technical resources, while Intel Capital possesses strong operational and industry experience, and we look forward to continuing to leverage both firms’ expertise as we continue to scale.”

MIC created an FDA-cleared virtual care platform, called Sickbay, that gives health care providers and hospitals away to remotely monitor patients in any setting with vendor-neutral real-time medical device integration, workflow automation and standardization.

“We have seen an increased demand for our solution as our clients face significant staffing challenges and are looking for ways to amplify and empower their workforce," Fauss says in the release. "Some of the largest health care systems in the country are standardizing their infrastructure on our Sickbayplatform while consolidating IT spend."

Other participants in the round included new investors TGH Innoventures, Tampa General Hospital’s innovation center and venture fund, and Austin-based Notley — as well as existing investors San Francisco-based DCVC, the Texas Medical Center, and nCourage, a Houston-based investment group.

As a part of the round, two individuals from Catalio will join the board at MIC. Jonathan Blankfein, principal at Catalio will join the board of directors, Diamantis Xylas, head of research at Catalio, will join as board observer.

“Health care systems’ need for high-caliber, cost-saving, data-driven technology is only going to increase, and MIC’s proprietary platform is perfectly positioned to address some of the most critical clinical challenges that health care organizations face,” says Blankfein in the release. “We look forward to continuing to support MIC’s strong team as it continues to deliver better outcomes for health care organizations and patients alike.”

Amid the pandemic and the rising need for remote care technology, MIC scaled rapidly in the past two years. The company will use the funding to continue fueling its growth, including hiring specialized talent — deep product specialists and client engagement teams — to support long-term strategic partnerships.

“One of the main barriers to advanced analytics in health care is the siloing of data and today there is a significant need for a platform to enable flexible, centralized and remote monitoring at scale and on demand,” says Mark Rostick, vice president and senior managing director at Intel Capital, in the release. “Medical Informatics is setting a new standard of health care by removing these data silos for health care providers of all sizes and transforming the way patients are monitored from hospital to home with real-time AI.”

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