Feb29th2008

Longtime friend of Startup Houston, Stacey Higginbotham of GigaOM (Stacey is in Austin and used to write for The Deal), authored a post this week about the elements needed to develop a High-Tech-Hub:
“Money, big companies and good weather. That last one isn’t a joke; quality of life is important. For example, many people want to live in Austin, while few want to live in Houston. So even though there are a lot of huge companies, money, and a real effort by folks at places like the Houston Technology Center and Startup Houston, building an information economy there is going to be a challenge. Blame it on the humidity.”
Now I am a big fan of Stacey’s work and the attention she brings to Texas technology startups (and our site) but I have to respectfully disagree with her assessment. If I were to identify the needed components to bring about a High-Tech-Hub, I would list them as follows (actually I am borrowing this from a presentation that Jacqueline Northcut, CEO of BioHouston gave last week):
- Money (agree on this)
- Experienced leadership (could be semantics so possibly in agreement on this)
- Critical mass
By critical mass, I point to every well-known High-Tech-Hub: San Francisco, Seattle, Boston, Austin (yes Stacey, Austin is a High-Tech-Hub…I am fascinated why people from Austin don’t get this). Each of these cities has what Houston lacks, proximity to other technology companies to facilitate collaborative effort. I have a client in San Francisco that I talk to weekly and I am always amazed at the number of other notable startups that are “right across the street from us.”
Houston is not too hot; Houston is too sprawled. Try to collaborate with someone in the Woodlands or Sugarland; it’s a nightmare of traffic and schedule coordination.
But what I think is not as important as what you think…let’s hear it!
Feb27th2008

Join over 500 of your friends and colleagues for a day of networking and fun at the 2008 Chili Cook-Off. Our Chili Cook-Off is more than just chili - it brings the attendees together as a life science community.
All individuals welcome - team participation is not required to enjoy the chili. With door prizes, activities, networking, and CHILI, this is an event not to be missed!
Chili Cook-Off Individual Registrations: All registrations close Tuesday, March 25th
Individual Ticket–BioHouston Members ($25)
Individual Ticket–Non-Members ($35)
Chili Cook-Off Team Registrations: Team registrations close Thursday, March 20th–all teams must be pre-registered to participate
Team Sign-Up ($125 + $25 Per Team Member)
Door prize and sponsorship opportunities available…please contact Lauren Stroman at 713-979-9106. Don’t miss this opportunity to promote your company and join your fellow supporters of the biotech industry.
Sponsorships still available include:
Key-Ring Bottle Openers
Mints
Caricature Artist
Relaxation Tent
Current Chili Cook-Off sponsors:
Encysive Pharmaceuticals, Inc. - Entertainment
Ernst & Young LLP - Aprons
Fairway Medical Technologies - Koozies
FKP Architects - Food & Beer Tent
Introgen Therapeutics - Caps
InVentiv Clinical - Cups
Lexicon Pharmaceuticals, Inc. - Registration Tent
Vaughn Construction - Potholders
Feb23rd2008

The event has finally arrived and if you haven’t registered yet, you can here. This is the premiere conference on venture investing in energy technology and will have everyone who is anyone in attendance. I was speaking with Walter Ulrich of the HTC at Open Coffee this past Thursday and he was very excited about the slate of both companies and venture investors who will be at this event. Don’t miss it.
Feb23rd2008

I have had several people around town ask me about this event and whether they should attend. First off, an overview of the event form the ACG Texas site:
“The Texas ACG Capital Connection is the largest and most significant private equity event in Texas and the Southwest. This national conference is one of the largest in the country and brings 80 of the nation’s leading private equity and mezzanine firms to Texas representing more than $90 billion of capital available for investment. The event enables business owners, executives, intermediaries and other service providers in the Southwest to network with the nations leading sources of private equity and debt capital.
“The conference, hosted by the Association for Corporate Growth (ACG) chapters in Houston, Dallas/Fort Worth, Austin and Louisiana, will offer the perspectives of top business leaders on the critical issues impacting M&A, financing, and the economic outlook for domestic and international companies.”
I plan on being at this event for several reasons, foremost being that this is what I do for a living. You should make a point of going if you meet the following criteria:
- You are in the business of capital raising for client companies (this is me);
- You are with a company looking for either private equity or mezzanine financing for your mature business; or
- You are an investor or source of capital (this is also me).
Make no mistake, private equity is NOT venture capital, angel capital or seed funding; neither is mezzanine capital. This conference is geared towards insiders and non-startups. Therefore, if you are a startup looking for capital, this conference will likely not be a worthwhile day of your time, unless you are a networking nut and like to wear suits for fun.
Don’t get me wrong, this is an amazing event and Houston will be an awesome host for the day. The lunchtime keynote speaker will be Ed Whitacre, former CEO and Chairman of SBC (now AT&T) and my former boss (I am going to see if he remembers me but I am not hopeful since it has been almost 13 years since I had a meaningful conversation with him). I also expect to see plenty of old friends and catch up.
Hope this helps. Let me know if you want me to do a primer on the various types and stages of private equity.
Feb20th2008

Join us for the next OpenCoffee Club!
About : The Houston OpenCoffee Club encourages open and informal discussion and networking among entrepreneurs, technology enthusiasts, and investors to help grow startup companies in the Houston area.
Thursday, February 21st, 2008
8:00AM - 10:00AM

The Coffee Groundz
2503 Bagby St
Houston, TX 77006
(713) 874-0082
Map
You can RSVP and see who else is attending here.
You can find additional information on the Houston OpenCoffee Club on our Meetup page and on the StartupHouston blog. You can also find information about how OpenCoffee Club got started and what it is all about here and here.
Feb19th2008

Our good friends at the Houston Interactive Marketing Association (HiMA) will be hosting a panel discussion February 21, 2008 on the myths and realities about Hispanics, demographic and cultural aspects of the Latino community, as well as offer tips about how to succeed in this untapped market. Panelists include:
- Manuel Delgado, CEO, Agua Marketing
From Mass Marketing to Más Marketing
- Anne Howard, Director Interactive Marketing, Lopez Negrete
Best Practices for Targeting U.S. Latinos Online
Here is an overview from HiMA on what to expect at the event:
- Get an overview of the fast growth of the Hispanic online market as well as future areas of opportunity.
- Get hard market data, useful to build the business case for Hispanic marketing initiatives.
- Learn about cultural values of Hispanics, and how can you use those values to connect with the market.
- Learn about do’s and don’ts to avoid cultural or language mishaps when communicating to Hispanics.
- Get actionable tips for attracting and retaining Hispanic customers online.
You can RSVP to the event here.
Feb13th2008

Join the Houston Interactive Marketing Association (HiMA) and the Got Social Media network for cocktails and appetizers at their “countdown to Valentines Day” happy hour on February 13 at Zushi (hip, new sushi restaurant just east of Memorial Park). The first 50 people receive a free drink on HiMA and one lucky person will win a great prize just in time for Valentine’s Day.
RSVP and more details here.
Feb13th2008
The Houston Business Journal just came out with their annual list of the largest Venture Capital Firms in the Houston Area and I think you’ll find it very interesting. The firms are listed in order of amount of capital under management. You find more details about each of these firms, including specific information on Capital Under Management, # of Investments in 2007, Minimum Investment/ Preferred Amount/ Maximum Investment, Levels of Investment, Preferred Industries, and Top Local Executive by clicking here.
Here’s the List:
- Essex Woodlands Health Ventures
21 Waterway Ave., Suite 225,
The Woodlands, 77380
# 281-364-1555
http://www.ewhv.com
- Vanguard Ventures
1330 Post Oak Blvd., Suite 1550,
Houston 77056
# 713-877-1662
http://www.vanguardventures.com
- PTV Sciences
221 W. 6th St., Suite 700,
Austin 78701
# 512-542-0010
http://www.ptvsciences.com
- Sternhill Partners
777 Post Oak Blvd., Suite 250
Houston, TX 77056
# 713-622-2727
www.sternhillpartners.com
- SMH Private Equity Group
600 Travis, Suite 300
Houston 77025
# 713-224-3100
http://www.smhpeg.com
- Texas Ventures
(formerly Aegis Capital Group)
1800 W. Loop South, Suite 475
Houston 77027
# 713-599-1300
http://www.texasventures.com
- DFJ Mercury
1 Greenway Plaza, Suite 860
Houston 77046
# 713-715-6820
http://www.dfjmercury.com
More detailed info here
Did we miss anyone or any important details? If you have any additional information on VC’s in Houston, make sure to post it in the comments section.
Feb12th2008

This Friday (2/15/08), the Mays Business School at Texas A&M University will be holding its annual MBA Tech Transfer Challenge at the Texas A&M Center for New Ventures and Entrepreneurship:
“This event, a required part of the Mays MBA program, challenges teams of students to analyze and determine the commercial viability of an invention developed at Texas A&M. The Challenge culminates with presentations by the MBA teams to judges from the business and academic communities.
“The Challenge is an integral part of the MBA program and provides our students with a unique opportunity to develop their analysis, teamwork and presentation skills. Prior to the judging session, the teams work for one week to learn the technology, identify market applications, assess marketplace acceptance, identify competitive technologies and form an opinion of the invention’s commercial viability. The students summarize their results in a written report and an oral presentation to a judging panel. Each team presents in the first round to a subset of the judges. The top teams from the first round advance to the final round where they present in front of the entire judging group as well as their peers. This year, we have also added a wildcard round for all second place teams from the morning flights, in which one team will also move forward to the finals. The Challenge concludes with a networking and awards reception. This year, $6,000 in prize money will be awarded to the top three teams. It is a busy and rewarding week for the students.”
This year, Startup Houston’s Josh Tabin will be one of the event’s judges. Texas A&M graduates have been an integral part of the Houston startup scene for many years and continue to add to its vibrancy. Here are some local startups by former Aggies:
I am sure to be missing some…please let me know if you are an Aggie and have a startup in the greater Houston area (let’s just assume it includes Bryan/College Station).
Feb11th2008

Last month I put myself on the line and made some predictions about trends on the Web in 2008 at the Houston Technology Center and posted the presentation here. One of my big items for 2008 is profile management which I suggested would be driven by the adoption of OpenID. Well last week, OpenID got a tremendous boost when Microsoft, Google, Verisign and IBM joined AOL and Yahoo in supporting the open-source standard.
Bottom line, if you have not done this already, your Web 2.0 startup needs to adopt this ASAP. Late last week I noticed that local Houston startup Yippi had added OpenID to its site. Kudos to them for getting on board.
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