Move it or lose it

When is it time to move? How Houston's small companies can find their next office space

Finding a new, larger office space is part of the startup growth process. Getty Images

There are a number of ways to measure the stage of growth a company is enjoying: funding, headcount, acquisitions, exit strategy, and more. But one telling indicator that often goes overlooked is the office space they call home.

In the early days of a startup, working out of someone's garage or at a nearby coffee shop, you dream of moving into a coworking space. Such a transition can mean a financial squeeze for some, especially when your prior solution was free. But paying for a space can mark a milestone — it signifies that you've made it to the next chapter. Houston has a number of great options for the many local early-stage startups undertaking this type of move.

Over time, though, as your company continues to grow, this solution may begin to cause strain. There's a big difference between a team of six sharing a room in a WeWork, and a team that's reached double-digits having to manage within a space that it has outgrown. Even external amenities like meeting rooms can become insufficient — as your team evolves, more meetings will be necessary, and the standards and needs at play will shift.

Finding your own private office space in Houston is not a challenge; it requires, however, acknowledging that the time has come to take this next step. Signals that it's time to move out and get your own space typically surface in two ways:

  1. What used to feel like an intimate setting has turned into an untenable situation. People are spending too much time talking about the coworking space and its limits.
  2. And, on the flip side, branding your company identity becomes a topic on your radar. If you find a great software engineer interested in joining your team, they might have some reservations about coming aboard with you if they discover you're sitting in a coworking space rather than your own space.

At SquareFoot, the commercial real estate company I founded in Houston in 2011, I have given special attention to companies looking for their first office space. It can be daunting at first, but our brokers know better than anyone how to be trusted advisors for small business owners searching for their first locations.

The most important question at this stage, we've found, is not which neighborhood they'd like to be in, what their budget is, or what amenities they want. Rather, it's a common growth question: Where do you see yourself in three to five years? By asking this question of CEOs in initial conversations, we can get a better idea of what type of growth they project, and how we can most efficiently find them the right space to accommodate their current needs and future goals.

We see office space as more than segments of larger office buildings. These spaces mean a great deal to the companies that inhabit them. It's our responsibility to fit the right team into the right space, and to advocate and negotiate on their behalf.

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SquareFoot Founder and CEO Jonathan Wasserstrum, who hails from Houston, has worked for over a decade in commercial real estate. Outside of work, Jonathan is interested in the three Bs — bourbon, buffalo wings, and brass bands.

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Building Houston

 
 

Molecule has closed new funding in order to focus on the energy transition. Photo via Getty Images

A Houston startup with a software-as-a-service platform for the energy transition has announced it closed a funding round with participation from a local venture capital.

Molecule closed its $12 million series A, and Houston-based Mercury Fund was among the company's investors. The company has a cloud-based energy trading and risk management solution for the energy industry and supports power, natural gas, crude/refined products, chemicals, agricultural commodities, softs, metals, cryptocurrencies, and more.

"We led the seed round of Molecule upon their formation and are excited to participate in their series A," says Blair Garrou, co-founder and managing director of Mercury, in a news release. "Molecule's success in the ETRM/CTRM industry, especially in relation to electricity and renewables, positions them as the company to beat for the energy transition in the 2020s."

The company will use its new funds to further build out its product as well as introduce offerings to manage renewables credits, according to the release.

"In 2020, we realized that electricity — the growth commodity of the 2020s — represented over half of Molecule's customer base, and we decided to double down," says Sameer Soleja, founder and CEO of Molecule, in the release. "We were also rated the No. 1 SaaS ETRM/CTRM vendor. With this fundraise, we have the fuel to become No. 1 SaaS platform for power and renewables, and then the market leader overall.

"Molecule is ready to power the energy transition," Soleja continues.

Molecule's last round of funding closed in November 2014. The $1.1 million seed round was supported by Mercury Fund and the Houston Angel Network.

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