Interview with Walter Ulrich, President and CEO of the Houston Technology Center

When I first met Walter Ulrich at a Houston Technology Center event, what I gathered most about him was that this guy was the real deal: a true “pocket protector” geek in the most admiring sense of the word. Ulrich has been a pioneer in the information technology sector for almost 40 years. In the 1970’s, Ulrich led the development of the first commercially successful email service. That’s impressive.
During the 1980’s and 1990’s, Ulrich consulted with Fortune 100 company’s on technology and business issues until he became the CEO of Houston-based Mincron Software Systems. After leaving that role, Ulrich was one of two Houston technology professionals to be appointed by Texas Gov. Rick Perry to serve on the advisory committee for the $200 million Emerging Technology Fund.

I had a chance to catch up with Walter this last week; here are some excerpts from our chat:

Josh: I know that you have been in and around technology for many years. How did you come to get involved with the HTC?

Walter: The HTC looked like a place where I could give back as a volunteer, and it turned out to also be the place where much important business goes on.  As someone active in the technology world, active and deep participation in the HTC was not only personally satisfying but it is good for business.

Josh: There are all different perspectives on the HTC’s core mission. How would you characterize your vision?

Walter: We aspire to make Houston a globally recognized center of technology innovation and commercialization, particularly focused on IT and Web 2.0, energy and clean energy technologies, bio/life sciences, nanotechnology and NASA-related aerospace. We have the underlying economic strength and have been building the business infrastructure over the last ten years.  Now it is time to execute successful commercialization by driving successes one emerging company at a time.

Josh: There are many groups around town that all seem to overlap in different respects when it comes to supporting technology development and new business creation (Rice Alliance for Technology and Entrepreneurship, University of Houston Small Business Development Center, HTC, Greater Houston Partnership, Mayor’s Office). From an outsiders perspective, there does not seem to be much collaborative effort among these groups. Is this the case and if so, what can be done to have a more concerted effort to work together?Walter: The many groups represent the strong community infrastructure needed to provide support to emerging technology ventures.  Throughout 2007, the HTC has taken the initiative to collaborate with and support the Rice Alliance, the UH SBDC, BioHouston and many other organizations.  The HTC works closely with the GHP in several areas including serving on the Energy Collaborative, the Technology Infrastructure Committee, and the Marketing Committee.  In addition, the GHP is a partner with the HTC on the Gulf Coast Regional Center of Innovation and Commercialization.  With regard to the Mayor’s office, the HTC works closely with Helen Chang.  The Mayor was the opening speaker for our Energy Technology Venture Capital Conference earlier this year and I have attended events at the Mayor’s request.

Josh: I have been to the HTC site and read that the HTC views itself as both an accelerator and an incubator. I see the accelerator element clearly, but help me understand the level of incubation the the HTC does.

Walter: The HTC is first an accelerator of emerging technology companies that represent a significant technical and business upside for the region.  However, we have several programs that provide support to pre-seed companies including the Educational Seminar Series, the Innovation Pipeline program (with colleges and universities), and the support we provide applicants to the Texas Emerging Technology Fund.

Josh: The are several clear areas of focus for the HTC that I can see: energy, life sciences, information technology, nanatechnology and NASA/aerospace technology. That’s a lot of ground to cover. Does the fact that Houston is a center for energy, life sciences (Medical Center), nanotech (Rice and Smalley Institute as well as CNI) and NASA (Johnson Space Center) leave IT and Web 2.0 behind?

Walter: It is no coincidence that the HTC focuses on areas where the region has strength.  IT seems overshadowed by the breadth of the energy industry and the Texas Medical Center, but it is significant in the region.  Some $4 billion in revenue is generated by the IT sector and that gives us a very strong base.  Furthermore, each of the other sectors that you mention rely heavily on advances in IT to succeed.  So IT is a key focus for the City and the HTC.

Josh: Something that continues to come up in conversations with entrepreneurs is the seeming lack of capital availability in Houston. You and I both know that is not true in the aggregate but there are segments that do not get as much attention as others. Why can’t Houston attract venture capital like Boston or San Francisco? We are a much larger and more diverse population or does that even matter?

Walter: The key to attracting capital is to continue to build successful emerging technology companies that provide superior returns to their investors.  The HTC has been doing that for eight years and our strategic plan calls for us to increase and enhance that capability.  Special events like our Energy Technology Venture Capital Conference March 6 and 7 are bringing investors from around the world to Houston.

Josh: Like I mentioned earlier, you are no stranger to technology. Do you see any parralels or diffences between today’s entrepreneur and those of years before?

Walter: In the old days, and entrepreneur with a great idea or invention could be a mediocre business person and still succeed.  Today, an emerging business must be like ivory snow – 99.44% right – or they will not succeed.  It also takes more money now so the gap between friends and family AND large investors has grown creating a deep valley of death.  That is why the Houston Technology Center and the broad-based community support for new technology companies is so important.

Josh: Recently, I read a research report that showed an increasing number of startups run by immigrants. Are you seeing this through the HTC as well? Are there opportunities for the HTC to work with similar organizations and universities in China, India or elsewhere to bring technology starups here to the US (i.e., commercialization opportunities)?

Walter: One of the strengths of the US is the great diversity of its people and that translates in business to a multitude of complementary strengths.  Immigrants bring fresh ideas from their homelands and from their cultures and make up an important part of the Houston economy.

The HTC has already established relationships with a few of the local Consulates where our work is directly related to theirs.  Our Energy sector, for example, has well-established partnerships with several energy centers around the world.

In addition, the HTC admires the great work of organizations like the Hispanic Chamber of Commerce and The Indus Entrepreneurs (TiE) and provide what support that we can.  In the last six months, we initiated the HTC Americas program as a prelude to HTC Global.  We are starting with a focus on our nearest neighbor, Mexico, but will expand throughout Latin America and then around the world.

Josh: I’ve asked a ton of questions so far. Is there anything you’d like to add?

Walter: The Houston Technology Center salutes you, Startup Houston and all the organizations that join with us to encourage innovation and the commercialization of emerging technology companies. We are implementing a new strategic plan, so we call upon all to participate in our events. Personal participation and financial support is always greatly appreciated.

Thank you Walter very much for your time and dedication to the Houston startup community.