RICE UNIVERSIT Y STARTUP ACCELER ATOR
CONTENTS
04 • From the Top 06 • About OwlSpark 12 • OwlSpark Alumni 20 • Our Impact 26 • OwlSpark Class 6 38 • Building the Foundation
WELCOME
Welcome to OwlSpark's 2018 Annual Report. This report details the progress made throughout the year and demonstrates our evolution since our founding in 2012. We hope this report serves as a valuable resource for our stakeholders who wish to share a comprehensive understanding of the OwlSpark experience. Detailed inside is a snapshot of the programs, events and once-in-a-lifetime opportunities offered exclusively to OwlSpark founders as well as our contribution to and collaboration with the greater entrepreneurial ecosystem.
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04 • From the Top 20 • Our Impact OwlSpark was a fantastic opportunity for Tax Credit Hero to get plugged into the startup ecosystem. Throughout meaningful 06 • About OwlSparkthe program, we made 26 •many OwlSpark Class 6 CONTENTSHouston connections to investors, mentors, and peers. OwlSpark was just the beginning of
• OwlSpark 38 • the Building our journey, and we12look forward toAlumni helping other startups along way! the Foundation STE PH E N TSAI | TA X C R E D IT H E RO Jones Graduate School of Business — Business Administration | Rice University, Class of 2013
ANNUAL REPORT • 2018 | 3
FROM THE TOP S IX YE ARS AG O, FOU R R E STLE SS STU D E NTS WITH
With a strong appreciation for collaboration, OwlSpark's
A CALLI N G FO R E NTR E PR E N E U RS H I P S E T OUT TO
culture and programming closely aligns with many other
ELEVATE AND CREATE OPPORTUNITIES AT RICE THAT
Rice entrepreneurship initiatives, including those led by
WOU LD FOSTE R AN D E NAB LE STARTU P AC TIVIT Y.
the Liu Idea Lab for Innovation and Entrepreneurship and
With visions of turning innovations into ventures, these four students spent their free time organizing and cobbling together hackathons, summits, workshops,
the Jones Graduate School of Business. It’s through the collective and cohesive delivery of our university-wide programming that Rice University has enjoyed recognition for its graduate entrepreneurship program, which ranks
and startup weekends, and then in 2013 launched
No. 3 in the U.S. and No. 1 in Texas. This marks the third
the university’s first startup accelerator—OwlSpark.
year in a row in the top three and tenth year in a row in
Fast forward six years later, in part due to their vision,
the top ten by Princeton Review. With a dedicated focus
entrepreneurial activity at Rice is on the rise and the
on education, innovation, culture, and collaboration,
OwlSpark startup accelerator has become a leading Rice
OwlSpark is committed to supporting our students
resource for helping entrepreneurs experience startup life.
and are proud of the impacts they are making.
Since 2013, OwlSpark has evolved into one of Rice’s most
This year’s annual report features the startup teams
experiential entrepreneurship programs and enabled
from our most recent class. I invite you to read about
the aspirations of hundreds. With an emphasis on
their journeys and learn about their achievements, both
experimentation and rapid iteration, OwlSpark teaches
of which lie at the heart of our work. The collective
disciplined startup strategies that help fuel innovation
experience, knowledge, and respect OwlSpark founders
with an eye towards reducing risk and increasing odds.
develop over the summer is a testament to the community
Our cohorts feature a wide range of hyper-targeted
that supports them. It is through the contributions of
training that introduces founders to best practices in
hundreds of tireless mentors, donors, corporate partners,
customer discovery, brand strategy, communication,
and community leaders that our founders become
leadership, and capital raising principles. Since that first
positioned to confidently pursue their vision. We continue
2013 summer class, over 50% of our startups remain active
to be grateful to all who help us further advance our
today and have raised $18.7M and created 34 new jobs.
mission and we thank you for another wonderful year!
KE RRI S MITH
4 | OWLSPARK
Managing Director | OwlSpark
OwlSpark provided value on five fronts: 1 Pulled me out of my comfort zone and forced me to seek validation for my ideas and assumptions; 2 Got opportunities to seek advice from a lot of SMEs and practitioners; 3 Speaking to former and current entrepreneurs helped me realize that a lot of them also went through similar situations and phases. Now I'm sure I am not crazy for diving into this; 4 Great opportunities to make new friends; and, 5 Discovered a few things about myself and the way I operate. VI NAY AC HARYA | WE LLWO RTH Jones Graduate School of Business — Business Administration | Rice University, Class of 2019
ANNUAL REPORT • 2018 | 5
MISSION
To build entrepreneurial capacity and accelerate the launch of emerging, tech-based startups through experiential education, mentorship, and broad access to essential resources.
VISION
To be a nationally recognized university-affiliated startup accelerator that delivers best-in-class opportunities for experiencing entrepreneurship, enabling leadership, and ensuring long-term entrepreneurial success.
ABOUT OWLSPARK Founded in 2012, OwlSpark is Rice University’s startup
Over the course of six years, OwlSpark has organized
accelerator that supports teams of ambitious and
and deployed six annual cohorts, trained 47 startup
promising entrepreneurs through an experiential program
teams, served 125 founders, and made advancements
designed to launch technology companies. In concert with
in building entrepreneurial and leadership capacity.
the Rice Alliance for Technology and Entrepreneurship
By researching and implementing best practices in
and the Rice Center for Engineering Leadership,
startup acceleration, our founders gain experiential
OwlSpark encourages and fosters a culture which attracts
strategies that result in positive, lasting, and measurable
entrepreneurial-minded students and faculty to form
contributions to their learning and growth. This year’s
companies around their innovative business ideas. Through
cohort represents a broad spectrum of classification
the delivery of education, mentorship, and far-reaching
that includes a mix of undergraduate and graduate
community engagement, OwlSpark is committed to
students, recent alumni, students from other academic
leading and promoting multi-disciplinary entrepreneurship.
institutions, and professionals across various industries.
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OwlSpark was by far the most rewarding experience I’ve had. The amount of functional knowledge and wisdom I received from mentors, founders, and leadership team members, is something I consider invaluable and extremely difficult to replicate in a traditional work environment. NAH S H O N E LLE R B E | B I D LY School of Social Sciences — Sport Management | Rice University, Class of 2019
ANNUAL REPORT • 2018 | 7
OwlSpark helped me find a community of people with diverse experiences struggling through the same things that Barolac was. Barolac had a tremendous support system while we were working hard through the summer. K R ITH I K A KU MAR | BAR LOAC George R. Brown School of Engineering — Bioengineering | Rice University, Class of 2020
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VALUES At OwlSpark, we strive to achieve a culture of advocacy that demonstrates an unyielding commitment to enabling the entrepreneurial pursuit of our founders.
1
CAMAR ADE RIE • We VALU E AN D SU PP O RT one another. • We R E LY O N O N E AN OTH E R when needed. • We EX TEND REL ATIONSHIPS beyond the workplace.
2
E XCE LLE NCE • We MA XI M I Z E TH E VALU E delivered. • We focus on Q UALIT Y OVE R Q UANTIT Y. • We DELIVER OUTCOMES rooted in facts and research.
3
CANDOR • We are CAN D I D AN D D I R EC T. • We are AP O LITI CAL when disagreeing with others. • We say things about others we would SAY O N LY TO TH E M . • We are quick to AD M IT AN D OWN OU R M I STAK E S .
4
INNOVATION • We iterate quickly to discover practical SO LUTI O N S TO HAR D PRO B LE M S . • We C HALLE N G E PR E VAI LI N G A SSU M P TI O N S when warranted and seek out better approaches. • We C R E ATE N E W I D E A S that prove useful. • We remain nimble by simplifying and M I N I M I Z I N G CO M PLE XIT Y.
5
S E LFLE SS NE SS • We seek what is B E ST FO R TH E G ROU P. • We R E MAI N U N B IA S E D when searching for the best ideas. • We MAK E TI M E to help others. • We openly and proactively S HAR E I N FO R MATI O N .
ANNUAL REPORT • 2018 | 9
THE PEOPLE LE ADE RS HIP K E R R I S M ITH
RICE UNIVE RS IT Y FACULT Y Managing Director
J E SS I CA FLE E N O R
Assistant Managing Director
HALE Y HART
Assistant Managing Director
NAFI SA I STAM I
Community Manager Summer 2018 Wise Gal (intern)
K AZIA ZAUNBRECHER Summer 2018 Wise Gal (intern)
AL DANTO Lecturer in Management — Entrepreneurship & IT Rice University Jones Graduate School of Business K A Z I M I R (K A Z) K ARWOWS K I Executive Director Rice Center for Engineering Leadership DAN I E L LE E , PH . D. Lecturer in Management Rice University Jones Graduate School of Business G AYLE M O R AN , PH . D. Lecturer in Professional Communication Rice Center for Engineering Leadership E LI Z AB E TH (B E TH) O’ SU LLIVAN Senior Lecturer in Management — Communications Rice University Jones Graduate School of Business H E SAM PANAH I , PH . D. Lecturer in Management — Entrepreneurship Rice University Jones Graduate School of Business
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This gave me the opportunity to start a long time dream of mine. I couldn’t be more grateful of this experience and I love everyone that put their time and effort into this. J USTI N B I C K HAM | D OS E CAPAC IT Y School of Social Sciences — Sport Management | Rice University, Class of 2019
THAT MAKE IT HAPPEN ADVISORS B R AD B U R K E Managing Director Rice Alliance for Technology and Entrepreneurship K A Z I M I R (K A Z) K ARWOWS K I Executive Director
DONORS AND SUPPORTIN G ORG ANIZ ATI ONS Rice Alliance for Technology and Entrepreneurship Rice Center for Engineering Leadership Liu Idea Lab for Innovation & Entrepreneurship (Lilie)
Rice Center for Engineering Leadership
Michael Kane (Rice University, Class of 1983)
K E R R I S M ITH
Rice Engineering Alumni
Associate Managing Director Rice Alliance for Technology and Entrepreneurship
Rice Business | Jones Graduate School of Business Rice University
ANNUAL REPORT • 2018 | 11
OWLSPARK ALUMNI The accelerator experience we have designed and
OwlSpark has become a family of diverse and talented
expanded over the past six years is more than just
alumni founders, each possessing an untamed
the delivery of entrepreneurial training. OwlSpark has
entrepreneurial passion. Through our valued partnerships
evolved into a culture and community where founders
with university and community organizations we have
encourage, support, and advocate for one another, not
created an environment that enables founders and teams
only during the summer program, but throughout the
to share ideas, experience the value of collaboration, and
academic year, and beyond their Rice experience.
be surrounded by like-minded people and rich resources.
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I learned all of the little details that I never knew were even needed to start a business. With the mentors and leaders available throughout the summer and beyond the program I am confident that my team will continue to work hard for our goal because of their leadership. C H R I S BAR N E S | D OS E CAPAC IT Y School of Social Sciences — Sport Management | Rice University, Class of 2019
ANNUAL REPORT • 2018 | 13
THE STARTUP TEAMS
T
HOR
125
ND ERS
47
EA MS
A ST
RT
U
4%
U ND ERG R AD
G R ADUATE
11 %
17%
FACU LT Y, S TAFF
N O RI CE
& ALU MNI
AFFILIATI O N
2%
76 %
24 %
male
female
ENGINEERING
THE FOUNDERS
LIFE SCIENCE & HEALTHCARE
11 %
33 %
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12%
NATURAL SCIENCE ARCHITECTURE
2%
52%
BUSINESS SOCIAL SCIENCE
6%
TECHNOLOGY
P
38 %
24 %
40 %
O
U
P
F
U START
18.7 MILLION RAISED 43% FUNDED | 53% ACTIVE
3%
CONTINUING STUDIES HUMANITIES
1%
WORTH MEN TIONING
6
C
O
TS
$
30 %
ENERGY & CLEAN TECHNOLOGY CONSUMER FACING
9%
SOCIAL IMPACT
4%
EDUCATION
TRANSPORTATION
34
jobs created
9%
of founders joined another startup after OwlSpark
3%
of founders founded another startup after OwlSpark
50 %
of startup teams include a female co-founder
Participating in OwlSpark helped me engage with other startup founders to get a broader view of startup life, better feedback on my ideas, and a larger network of support going forward. A S H LE Y ARC I E RO | TA X C R E D IT H E RO Jones Graduate School of Business — Business Administration | Rice University, Class of 2019
ANNUAL REPORT • 2018 | 15
2 0 1 3
C H EC K E DT WI C E developed a web-based gift registry with special features for families and friends. CheckedTwice is profitable, returned its initial investment to investors, and continues to grow. Houston, Texas
www.checkedtwice.com
E M E RG E N CY FLO O R developed low-cost raised flooring systems for refugees fleeing conflict and living in temporary tent-like shelters and camps. Emergency Floor raised more than $54,000 through a successful Indiegogo crowdfunding campaign in 2015. They are on track to deploy more than 500 floors in Syria, Lebanon, and Rohingya in of Q1 2019. Houston, Texas
www.emergencyfloor.com
M E D I CAL I N FO R MATI CS developed a patient monitoring and analytics platform that provides clinical decision support technology for healthcare professionals. Medical Informatics received FDA approval for sale of their product in the United States (SickBay), and established partnerships with Texas Children’s Hospital and Dell EMC OEM Solutions. Houston, Texas
www.medicalinformaticscorp.com
M I C ROSC H O O L R E VO LUTI O N (previously Coached Schooling) created a network
CLASS 1
of microschools with fewer than 120 students that offer the best elements of
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personalized learning, tailored to students by a dedicated learning coach. Microschool Revolution helps to connect worthy microschools with seed money to grow. Houston, Texas
www.microschoolrevolution.com
PAR K IT developed a computer vision system that collects real-time parking lot space availability data from camera images to increase parking efficiency. ParkIT completed their first sale and participated in the inaugural cohort of Jaguar Land Rover’s Tech Incubator (Portland, Ore.) in 2016. Dallas, Texas
www.parkit.io
2 0 1 4
WHERE ARE THEY NOW?
E N P OWE R (previously Big Delta Systems) is developing next-generation Li-ion batteries that have fast-charging and long cycle-life capabilities—critical enablers to the mass electrification of vehicles. EnPower has restructured the management team, and successfully demonstrated their fast-charging, long-cycle life battery technology using pilot-scale equipment. EnPower has raised $2,360,000 through prizes and investment, including the Goradia Innovation Prize in 2015. They are currently raising a Series B round of financing. Phoenix, Arizona
www.enpowerinc.com
D I B S developed a web-based tool that gives users the power to create informative,
CLASS 2
interactive visualizations for healthcare professionals. DiBS participated in the first cohort of TMCx, the Texas Medical Center Accelerator (Houston, TX). Houston, Texas
www.dibsvis.com
O N E J U M P developed a platform that connects underserved students to enriched, life-changing opportunities, including college programs, internships, summer camps, and research labs. OneJump raised more than $14,000 through a successful Indiegogo crowdfunding campaign in 2014, and completed the Longhorn Entrepreneurship Accelerator Program (LEAP) in 2017. Houston, Texas
www.onejump.org
I am proud of joining OwlSpark because of the intuition it provided me in the world of entrepreneurship. It further inspired me to turn an idea of mine into reality for the future. All in all, I loved the welcoming atmosphere in a hard working environment because you do not get that everyday. Thank you, OwlSpark. ANTH O NY E PK E | B I D LY School of Social Sciences — Sport Management | Rice University, Class of 2020
ANNUAL REPORT • 2018 | 17
2 0 1 5
WHERE ARE THEY NOW? AROVIA developed SPUD (spontaneous pop-up display), a high-resolution, 24-inch portable screen that easily collapses and expands for use in connecting devices on-the-go. Arovia was awarded their second patent, and is currently in mass production of their first batch of 2000 SPUDs shipping in Q1 of 2019. Arovia participated in Retail Xelerator, HAX accelerator (San Francisco, Ca.), and Luminate accelerator (Rochester, N.Y.). The company has raised nearly $3M through grants, prizes, crowdfunding campaigns, pre-orders, and investment, and is currently raising an additional $1.5M. Arovia was featured as a Tech Trend of 2017 on The Today Show, and was selected for one of eight China Innovation Awards in 2018. Houston, Texas
www.arovia.io
O PE N FAC TO RY established a 3D printing factory for on-demand small batch production. Open Factory began generating revenue in 2015. Houston, Texas
www.openfactory.co
D I G E EC H E F (previously DigiChef) developed a mobile nutrition therapy solution, combining personalization, clinical recommendations and nutritional research to deliver patient-focused meal plans. DigeeChef has raised $125,000 through investment, and is currently building relationships with fulfillment partners, and developing an expanded recipe database.
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CLASS 3
Houston, Texas
www.digeechef.com
Z I E L S E N SO RY (previously Ziel Solutions) developed a wearable device (sleeve) that combines muscle sensors and motion analysis to objectively identify harmful pitching in baseball. Ziel Sensory was named among Forbes’ 15 Most Innovative College Startups, ranked among Top 500 Early Stage Science Startups Worldwide by Hello Tomorrow Conference, and has been featured on MLB.com and Sports Illustrated online. Dallas, Texas
www.zielsolutions.com
CLASS 4
2 0 1 6 M Ü V VE is a social connectivity app for local fitness businesses that expands client bases by building community and organizing events. Müvve began generating revenue through pop=up events in 2016, and launched their app in 2017. Houston, Texas
www.muuve.com
TO PL developed a bespoke blockchain technology built to efficiently prove and move three types of value—funds, goods, and impact—into, around, and out of emerging and impact economies. Topl was accepted into Brightlands Innovation Factory's incubator program (Netherlands) in 2017 and Capital Factory accelerator program (Austin) in 2018. The company has raised nearly $550,000 in investment. Houston, Texas
www.topl.me
CLASS 5
2 0 1 7 ATM OS PAR K manufactures Element, a portable hardware system that generates fresh, potable water from the atmosphere. AtmoSpark has built four prototypes, and raised more than $78,000 through grants, investments, and prizes. Houston, Texas
www.atmosparktech.com
PR E D I C TMX builds specialized hardware and predictive software for oilfield service companies to reduce maintenance costs and on-the-job failures. PredictMX has raised $17,500 through prizes, and won the People’s Choice Award at the 2017 Digital Oilfield Conference. Houston, Texas
www.predictmx.com
CLASS 6
2 0 1 8 B I D LY developed a low-risk, competitive bidding platform for university community members to safely buy and sell second-hand goods and services within their local market. Bidly has raised $325,000 through investment, and has developed multiple partnerships across Texas universities. Dallas, Texas
www.bidlyapp.com
ANNUAL REPORT • 2018 | 19
OUR IMPACT Rice University and its Jones Graduate School of Business take the No. 3 graduate entrepreneurship program in the U.S. and No. 1 in Texas, marking the third year in a row in the top three and 10th year in a row in the top 10. Princeton Review and Entrepreneur magazine analyze the results of a 60-question survey covering each school’s commitment to entrepreneurship studies inside and outside the classroom. More than 40 data points are collected, including topics such as: • • • •
percentage of faculty students and alumni actively and successfully involved in entrepreneurial endeavors the number and reach of mentorship programs scholarships and grants for entrepreneurial studies
• the level of support for school-sponsored business plan competition Since its inception, OwlSpark has contributed to the entrepreneurial impact at Rice. Through entrepreneurial activities, year-round mentoring, events and programs, such as business plan competitions, venture challenges, and elevator pitch competitions, founders have launched promising startups and given back to the next cohort.
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I'm not sure of any program that better connects students with the business community than OwlSpark. If you believe in the adage— learning by doing—then the question we should be asking is—how can we do more to build on the success of this gem of a program? OwlSpark and RED Labs is the hallmark of what collaboration looks like in our startup community and is an important funnel we must continue to cultivate to drive startup density. J O H N R E ALE Co-Founder | Station Houston
ANNUAL REPORT • 2018 | 21
COLLABORATION INSIDE THE HEDGES PARTNERS AND PROGRAMS
LI U IDE A L AB FOR INNOVATION & E NTRE PRE NEURS HIP (LILIE)
entrepreneurship.rice.edu
Lilie is a flexible, modern, learning and co-working space for students, staff, and faculty interested in entrepreneurship. Lilie also offers experiential courses, a variety of co-curricular opportunities, lectures, competitions, and workshops, serving as a bridge between Rice University and the broader innovation and entrepreneurship community.
H . ALB E RT NAPIE R RICE L AUNCH CHALLE NG E
entrepreneurship.rice.edu/lilie/experiences/rice-launch-challenge
The H. Albert Napier Rice Launch Challenge offers a year-long stream of workshops, networking events, ideation sessions, and competitions, the challenge offers students exposure to various aspects of entrepreneurship and innovation.
RICE CE NTE R FOR E NG INE E RING LE ADE RS HIP (RCE L )
rcel.rice.edu
RCEL educates, develops, and inspires Rice University engineers to become ethical leaders. Through a series of co-curricular learning experiences, RCEL introduces OwlSpark founders to the technical, communication, and leadership skills necessary to succeed and excel professionally. Founders learn about creating and communicating a vision, building high-performing teams, enabling conflict resolution, and creating innovations that endure.
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Throughout the year, OwlSpark collaborates with departmental units and organizations to organize and support programming that increases entrepreneurial capacity and enriches the OwlSpark experience. These partnerships ensure greater reach, higher visibility, and enhanced entrepreneurial learnings.
OwlSpark gave me incredible knowledge and insight into the business and startup world. No classroom experience could come close to matching the value gained in just a few months at OwlSpark. DYL AN JAM E S | B I D LY Weiss School of Natural Sciences — Kinesiology | Rice University, Class of 2020
RI CE E NG INE E RING ALUM NI (RE A )
alumni.rice.edu/rea
REA catalyses collaboration and lifelong connections among alumni and the George R. Brown School of Engineering by recognizing outstanding achievements, supporting students, and connecting alumni, students, faculty and staff. Since 2014, REA has supported OwlSpark founders through a Prototype Fund that allows entrepreneurs to take innovations and idea from concept to demonstration. Using small grants and an emphasis on low-cost iterative experimentation, founders perform research, test core assumptions and explore multiple design options before building out their entire product.
RI CE BUSINE SS E NTRE PRE NEURS HIP CLUB
jones.campusgroups.com/entrepreneur/about
The Rice Business Entrepreneurship Club is dedicated to fostering the innovative entrepreneurial spirit and vision in the Jones Graduate School of Business community. Through a series of panels, guest lectures, site visits, and other networking events, members gain access to a lifelong learning and support network to minimize risk and maximize success.
THE QUALIFIE R
rbpc.rice.edu/content/rice-qualifier
The Qualifier is Rice University’s internal business plan competition and qualifier for the Rice Business Plan Competition. All Rice University graduate students are eligible to compete, and the winning graduate team represents Rice University in the annual Rice Business Plan Competition.
ANNUAL REPORT • 2018 | 23
COLLABORATION INSIDE THE HEDGES PARTNERS AND PROGRAMS RICE VE NTURE S
Rice Ventures
Rice Ventures is a student-run campus organization designed to introduce prospective entrepreneurs to available resources within the Rice and Houston communities. Rice Ventures provides undergraduates with opportunities to grow their professional network, engage with entrepreneurs, connect with like-minded peers, and develop the skills necessary to start a company.
STUDE NT AC TIVITIE S FAIR Student Activities at Rice University is dedicated to helping students develop as leaders and supporting them in their efforts to make a positive impact at Rice University. Each semester, Rice University hosts the Student Activities Fair to connect students with programs and organizations across campus that provide practical educational experiences designed to foster leadership development and complement the traditional classroom education.
INFORMATION S E SSIONS AND ME ETUPS OwlSpark hosts open information sessions and meetups that provide insight into the OwlSpark experience and meet potential co-founders. The events are often led by alumni founders and reflect the OwlSpark culture of support and collaboration.
I truly enjoy the excitement of these events and the diversity of the companies that are presented. I work in the Ventures group at BP so I look at a lot of oil and gas deals and this is a great way to expand my viewpoint. For example, I learned so much during the Gethr presentation about a world I didn't even know existed between social media influencers and musicians. He mentioned services I didn't know existed and I feel like I am pretty up to speed with technology. It was humbling. DAVI D C LOUS E Investment Manager | BP
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COLLABORATION OUTSIDE THE HEDGES PARTNERS AND PROGRAMS STARTUP CARE E R FAIR
www.startupcareerfairhtx.com
Jointly organized and hosted by OwlSpark, the University of Houston’s RED Labs, and the Texas Medical Center Accelerator (TMCx), Startup Career Fair is a one-day event connecting local startups with entrepreneurial-minded students seeking internships and experienced management pursuing full-time opportunities. The event helps jobseekers find exciting startup opportunities, gives local startups access to the talent they need, and fosters the entrepreneurial ecosystem in Houston and beyond. Startup Career Fair was founded in 2013 to bridge the talent gap and build a pipeline of qualified candidates within the local startup community,
UNIVE RS IT Y OF HOUSTON RE D L ABS
redlabs.bauer.uh.edu
RED Labs is the University of Houston’s co-working space, startup accelerator, and technology entrepreneurship program. Supported by the Wolff Center for Entrepreneurship, RED Labs works with UH-affiliated founders (faculty, students, and recent alumni) to turn their technology startup ideas into high growth ventures. During the summer, RED Labs joins us in deploying a joint accelerator that runs up to twenty startup teams them through our full-time, three-month program.
STATION HOUSTON
www.stationhouston.com
Station Houston works to transform Houston into a world-leading hub for tech innovation and entrepreneurship. Serving as the focal point of a vibrant district where people live, work and play, Station Houston aspires to become the connective tissue for cultivating community and fostering a culture of innovation.
HOUSTON E XPONE NTIAL
www.houstonexponential.org
Houston Exponential fosters a robust ecosystem that supports high-growth, high-impact startups. Created in 2017 through a combination of Mayor Sylvester Turner’s Innovation and Technology Task Force, the Houston Technology Center, and the Greater Houston Partnership’s Innovation Roundtable, OwlSpark works with Houston Exponential to bolster our innovation ecosystem and drive the region to become a top 10 startup ecosystem by 2022.
THE CANNON
www.thecannon.com
The Cannon is building out a 17-acre coworking ecosystem for Houston's entrepreneurs, small businesses, freelancers, and creatives. The campus includes 135,000 square feet of collaborative workspace, an in-house Venture Capital fund focused on local investment, and a seed-funding accelerator program for startups, as well as a collection of mentors, service providers, angel investors, and other entrepreneurial groups and organizations.
ANNUAL REPORT • 2018 | 25
MENTOR HOURS
52
MENTORS
37
SPEAKERS
46
SESSIONS
49
HOURS OF PITCH PRACTICE
143
PERKS & OFFERINGS
Communication and
Membership at
Pitch Coaching
The Cannon
Hyper-targeted
Slide Deck Development
Mentorship
Startup Technology
Legal Advice
Packages
Market Research
Subject Matter Expertise
Expertise
CLASS 6 Over the summer of 2018, OwlSpark delivered an intensive core curriculum based on the Disciplined Entrepreneurship and Lean Launch methodologies, and enriched it with business fundamentals, access to mentorship, office hours with entrepreneurs and industry experts, and networking events that strengthened community collaboration. Housed this year in Lilie, the Rice University Liu Idea Lab for Innovation and Entrepreneurship, OwlSpark created a unique, collaborative culture that offered inspiration, stimulation, education, and motivation to launch.
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The OwlSpark program was my first contact with the world of business. I have always wanted to have my own business but, as an engineer, I did not have any exposure to business and did not know the steps to take if I want to start a company. This program has certainly broadened my horizons in terms of coming up with ideas and deciding of this idea should be pursued or not. Throughout the program our team had its ups and downs and we were fortunate to have mentors and the leadership team supporting us the whole way. From having a (supposedly) great idea, to pivoting, to making the decision not to pursue that idea, they have always had an optimistic and supportive attitude to help us with our problems. I really appreciate all that you have done for us during this summer! MARC E LO FE R NAN D E S | CO O LK I D George R. Brown School of Engineering — Mechanical Engineering | Rice University, Class of 2021
ANNUAL REPORT • 2018 | 27
One of the largest factors that differentiate university-based accelerators from traditional for-profit accelerator models is the focus on rigorous education and measurable knowledge gained. The curriculum featured nearly 40 sessions and provided: • D I SC I P LI N E D E NTR E P R E N E U RS H I P AN D LE AN L AU N C H FU N DAM E NTAL S and deep dives into customer identification, market segmentation, value propositions, customer acquisition, distribution channels, pricing models, and go-to-market strategies • B US I N E SS FU N DAM E NTAL S including market research, brand development, product development, milestones, intellectual property, communications, sales, fundraising, corporate formation, and financial literacy • CO N SO LI DATI O N O F FU N DAM E NTAL S AN D PR E PAR ATI O N FO R L AU N C H through training modules covering, communication, marketing, coaching, and pitching The curriculum also featured a weekly Startup Founders Series where local entrepreneurs shared their stories of success and failure, and a weekly Leadership Lunch Series, led by the Rice Center for Engineering Leadership, to instill components of leadership, management, negotiation, vision, ethics, and team development through discussions, case studies, and interactive simulations.
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PRO GR AM ELEMEN TS
CLASS 6 CURRICULUM
ACADE MIC CRE DIT Founders who are also currently enrolled Rice University students could elect to receive academic credit for their OwlSpark participation in lieu of a stipend. Approved by Rice University’s curriculum committee in 2017, accepted students may register for six credit hours through BUSI 221 and BUSI 469.
B R AND DE VE LOPME NT This summer, we enhanced the branding and design elements of our program. We offered sessions to help founders gain a better understanding of how a brand impacts a startup, and begin the process of crafting their own brand. To round out the visual development of the startup teams’ brands, we launched a collaborative effort with the community to bring in designers who were excited to help early stage ventures grow.
UNIVE RS IT Y COLL ABOR ATION
1
For the fourth year, we partnered
LEARN
with RED Labs, the University of Houston’s startup accelerator, to
WH O I S YOU R CUSTO M E R?
enhance founders’ experience through
• Beachhead Market
• End User Profile & Persona
collaborative co-working, shared
• Business Model Canvas
• Market Segmentation
resources, increased mentor impact,
• Customer Development
• Total Addressable Market
heightened community awareness,
• Evaluating Market Opportunities
• Value Propositions
and increased event attendance.
RI CE E NG INE E RING ALUM NI (RE A ) PROTOT YPE FUND
WHAT CAN YOU D O FO R YOU R CUSTO M E R? • Agile Development
• Legal Considerations
A requirement of the OwlSpark
• Founder's Dilemmas
• Value Proposition Design
accelerator program is the development
H OW D O YOU R E AC H YOU R CUSTO M E R?
of a minimum viable product (MVP).
• Brand Positioning
With micro grants and an emphasis
• Competitive Positioning
on low-cost iterative experimentation, tested core assumptions, and explored
• Channels & Go-To-Market Strategies
multiple design options before building
H OW D O YOU MAK E M O N E Y?
startup teams performed research,
out their technology. Recipients of REA
• Brand Implementation
funds include Arovia, Open Factory, and
• Cost of Customer Acquisition
Ziel Sensory from Class 3, LeaseALLY
• Lifetime Value of an Acquired Customer
and Topl from Class 4, AtmoSpark from Class 5, and Barolac from Class 6.
2
• Leadership: Team Development • Mapping the Sales Process • Startup Sales Strategies
• Marketing Tactics for Startups • Pretotyping • Website Development
BUILD H OW D O YOU D E S I G N & B U I LD YOU R PRO D U C T ? • Best Practices for Hiring Developers
• Market Research
• Leadership: Ethics, Motivation, Negotiation + Vision
• Storytelling
• Leveraging LinkedIn for Customer Discovery
3
• Public Speaking • Technology Readiness Levels
LAUNCH H OW D O YOU SCALE? H OW D O YOU CO M M U N I CATE YOU R M E SSAG E? H OW D O YOU FU N D YOU R STARTU P? • Angel Capital
• Nondilutive Fundraising
• Financial Literacy
• Venture Capital
• Increasing Value to Outside Investors
• Venture Debt
ANNUAL REPORT • 2018 | 29
BAYOU STARTUP SHOWCASE On August 2, 2018, OwlSpark and the University of Houston’s RED Labs co-hosted the fourth-annual Bayou Startup Showcase. The Bayou Startup Showcase is a celebration of entrepreneurship, the Houston startup community, and the university accelerator programs that support them. The event provided a platform for startups from both accelerators to showcase their businesses to more than 400 mentors, advisors, entrepreneurs, investors and key stakeholders from the greater Houston community. www.bayoustartupshowcase.com
ATTENDEE RESPONSE Attendees rated the following element s 'excellent' or 'above average'
93 % S H OWCA S E
75 %
98%
NE T WO RK IN G
OVERALL QUALITY
98 % PRO G R AM FO RMAT
95 % S TARTU P TE AM PITCHE S
WHY ATTEND? 93% Support Aspiring Entrepreneurs 69% Networking 95% Support Houston's Entrepreneurial Ecosystem
30 | OWLSPARK
The event and the presentations are excellent. Each startup presented a C LE AR & CO M PE LLI N G business case. The coaching and work done prior to the event must have been very good. We truly appreciate all the efforts of the staff and volunteers who made this happen. The experience is a POWERFULLY-PRODUCTIVE , LI FE- C HAN G I N G E VE NT for the participants. I was very happy with the event and I think that OwlSpark and REDLabs are doing AMA Z I N G TH I N G S . Well-organized and well-executed. E NTH US IA STI C E NTR E PR E N E U RS . E XC ITI N G . Very well-organized and powerful. I thought it was VE RY WE LL D O N E and I was super impressed with the start ups and their pitch. I was very I M PR E SS E D WITH TH E Q UALIT Y of the business ideas and presentations. It was particularly enjoyable to discuss the business ideas in more detail during the Showcase. Excellent display of startups in this area. All presentations felt well-rehearsed and the event was VE RY PRO FE SS I O NAL . I loved how each of the pitches was TH OU G HTFU LLY C R AF TE D. Very clear and to the point. The event was really well organized and it showed in the final product. Being a first-timer, I was greatly surprised by the quality of the pitches and the amount of work that was clearly put by the students during the whole program. I was also impressed by the COUR AGE OF THESE YOUNG ENTREPRENEURS to present their businesses in a very professional and enjoyable way.
ANNUAL REPORT • 2018 | 31
ATTENDEE PERSPECTIVE
A G R E AT E VE NT enabled by many weeks of hard work by the teams and the OwlSpark/RED Labs team. Kudos!
CLASS 6 STAR
88% OF TEAMS ARE ACTIVE
MS
8
33 %
17%
11 %
U ND ERG R AD
G R ADUATE
FACULTY, STAFF
NO AFFILIATION
S TU D ENTS
S TU D ENTS
& ALU MNI
WITH RI CE
U
N
T
38 %
O
T
RT P U
E
A
S
A
27
DE RS
$325,000 IN FUNDING | 25% OF TEAMS FUNDED
THE FOUNDERS
P S TA RT U
F
ENGINEERING
26 %
32 | OWLSPARK
70 %
30 %
male
female
BUSINESS
SOCIAL SCIENCE
15 %
37%
NATURAL SCIENCE
22%
75 %
OF TEAMS INCLUDE A FEMALE CO-FOUNDER
RTUP TEAMS
THE TEAMS
Through a selective vetting process that targets promising, scalable, innovative technologies, OwlSpark admits up to ten startup teams into an annual 12-week cohort. Throughout the summer, OwlSpark delivers a curriculum built around
TECHNOLOGY
50 %
educational, leadership, and mentorship components and connects founders with a community of entrepreneurs and experienced business leaders who help guide and advise them through their launch.
38
%
LIFE SCIENCE & HEALTHCARE
This year, OwlSpark built a cohort of eight startup teams building innovative ventures in
ENERGY & CLEAN TECHNOLOGY
13 %
life sciences, energy, consumer products, and technology industries.
ANNUAL REPORT • 2018 | 33
BAROL AC is developing an easy-to-use device that objectively measures sucking pressure to identify oral dysfunction in newborns. founders@barolac.com •
www.barolac.com
Matthew Peña • Biochemistry and Cell Biology, Rice University 2011 Krithika Kumar • Bioengineering, Rice University 2020
B IDLY provides a low-risk, competitive bidding platform for university community members to safely buy and sell second-hand goods and services within their local market. founders@bidlyapp.com •
www.bidlyapp.com
Anthony Epke • Sport Management, Rice University 2020 Nahshon Ellerbe • Sport Management, Rice University 2020 Krishna Goel • Computer Science, Rice University 2020 Dylan James • Kinesiology, Rice University 2020 Paine Matiscik • Sport Management, Rice University 2018
CINCH is a one-stop=shop platform designed to make planning bachelor and bachelorette parties fast, easy, and enjoyable. founders@cinchevent.com •
www.cinchevent.com
Molly Berkemeier • Political Science, Texas A&M University 2019 Liana Gonzalez-Schulenberg • Political Science, Texas A&M University 2014 Alexander Harvey • Business Administration, Rice University 2019 Anika Harvey • Business, Loyola Marymount University 2015
DOS E CAPACIT Y is creating a pill bottle that controls the dosage and timing of a prescription to help prevent prescription abuse. founders@dosecapacity.com •
www.dosecapacity.com
Christopher Barnes • Sport Management, Rice University 2019 Justin Bickham • Kinesiology, Rice University 2019 Matthew Morris • Mechanical Engineering, Rice University 2019
34 | OWLSPARK
G ETHR is a marketing platform that leverages social media influencers and machine learning to promote artists' music. founders@gethr.to •
www.gethr.to
Richard (Massey) Branscomb • Materials Science, Rice University 2018 Prachi Saluja • Business Administration, Rice University 2019 Zichao (Jack) Wang • Electrical and Computer Engineering, Rice University 2022
N UTRIAC TION is a cloud-based application for sports dietitians to manage and visualize nutrition and performance data. founders@nutriaction.net •
www.nutriaction.net
Yiyun (Stella) Peng • Computer Science, Rice University 2021 Haoran (Anthony) Yu • Computer Science, Rice University 2021 Zikai Zhu • Computer Science, Rice University 2021
TA X CRE DIT HE RO is a cost effective web-based solution that helps small businesses identify and substantiate their R&D tax credit. founders@taxcredithero.com •
www.taxcredithero.com
Ashley Arciero • Business Administration, Rice University 2019 Stephen Tsai • Business Administration, Rice University 2013
WE LLWORTH WellWorth is a platform that facilitates collaborative financial modeling and intuitive decision-making for the upstream oil & gas space. founders@wellw0rth-it.com •
www.wellworth-it.com
Vinay Acharya • Business Administration, Rice University 2019 Yichen (Connie) Zhang • Computer Science, Rice University 2018
ANNUAL REPORT • 2018 | 35
One of the hurdles Houston Exponential works to overcome is that of changing the perception of what it takes to found a startup or work in a startup environment. There is a perceived risk associated with this space that makes it very hard to approach. OwlSpark and RED Labs provide the low risk launching pad to change this perception by creating safe environments to infuse innovation accounting and lean principles into the thought processes of these passionate and knowledgeable teams. J O N N O R D BY Director of Strategy | Houston Exponential
36 | OWLSPARK
ADVISORS, MENTORS, PITCH COACHES, SPEAKERS AND SUBJECT MATTER EXPERTS Leaning on our vibrant ecosystem and partnerships with university and community organizations, we hand-picked a cohort of professionals that we knew would maximize the success of our startup teams. Mentors, speakers, pitch coaches, and advisors were vetted based on expertise, experience, and connections to help founders accelerate their businesses. Throughout the program, they provided strategic and tactical guidance, identifying gaps in a team’s business knowledge and understanding, identifying obstacles, challenging hypotheses, serving as a sounding board for ideas. Founders engaged with more than 70 experienced entrepreneurs, academic leaders, industry professionals, subject matter experts, venture capitalists, and other members of the Houston entrepreneurial community.
Jonathan Avila
Bryan Haardt
Jon Nordby
Melanie Bell
Matthew Hager
Beth O’Sullivan
Syed Biabani
Gray Hancock
Jim O’Sullivan
Ed Blair
Peter Hancock
Hesam Panahi
Read Boles
Trey Hebert
Doug Parker
Miriam Boxwala
Lavonne Hopkins
Keith Rassin
Chris Buckner
Erik Ibarra
Alexander Schueller
Matthew Bukovicky
Ken Jones
Crosby Scofield
Kathleen Clark
Touré Jones
Jacob Setterbo
Chris Church
Ellyn Josef
Peggy Shaw
Charles Connell
Kaz Karwowski
Robert Sheppard
Dave Cook
Thomas Kraft
Danielle Supkis Cheek
Bill Coxsey
Keith Kreuer
Andrew Swick
Al Danto
Paul Kwiatkowski
Jordan Szymczyk
Brad Day
Daniel Lee
Anderson Ta
Orlando Duffus
Samantha Lewis
Christopher Taylor
Meagan Dwyer
Tejus Mane
Alejandro Tortoriello
Benjamin Emley
Deb Mansfield
Jessica Traver
Michael Evans
Lisa Martin
Alexander Wesley
Thomas Fields
Elise McCutcheon
Stephen Wilbur
Alex de la Fuente
Rob Austin McKee
Adam Wulf
Blair Garrou
Roberto Moctezuma
Jacques Zaneveld
Christopher Georgen
Gayle Moran
Randy Zhou
Bill Greisinger
Camille Nichols
ANNUAL REPORT • 2018 | 37
THROUGHOUT THE YEAR STARTU P CAR E E R FAI R February 4, 2019 www.startupcareerfairhtx.com TH E Q UALI FI E R February 21, 2019 rbpc.rice.edu/content/rice-qualifier R I C E B US I N E SS PL AN CO M PE TITI O N April 4 – 6, 2019 rbpc.rice.edu OWL S PAR K C L A SS 7 May 16 – August 7, 2019 www.owlspark.com
BUILDING THE FOUNDATION As evidenced by our achievements throughout the first six years, OwlSpark provides value to students, faculty and the extended Rice University community. We are proud to serve as a catalyst for promoting entrepreneurship, to be a provider of experiential learning, a valued resource for launching Rice startups, a portal for engaging mentors, investors, and alumni, and a beacon for external visibility, recognition and ranking. OwlSpark does more than fill a demand for hands-on entrepreneurship experiences— it provides a commercialization roadmap. As founders face a lifetime of technological advances, entrepreneurial opportunities, and personal challenges, their success will likely be determined by their ability to deploy the skills we emphasize: creativity, persistence, passion and resilience. The OwlSpark impact isn’t just in the development of emerging business ventures, but in raising aspirations, and in building entrepreneurial capacity. We welcome your continued support of the OwlSpark vision and mission.
38 | OWLSPARK
As a former entrepreneur and current angel investor, I am proud to assist and support Houston’s Startup Ecosystem. I have had the privilege of working with OwlSpark as a mentor since its inception. During that time, I have seen OwlSpark evolve into a program that is coaching and guiding future entrepreneurs to create successful companies that solve real-world problems. I have been especially impressed with the collaboration between the Rice University OwlSpark and University of Houston RED Labs accelerators. This significant joint effort between the Universities not only assists in providing much needed cross-training, but also demonstrates an example of how working together benefits the entire Houston Ecosystem. In my experience, Houston has proven to be a great city to start, build and exit technology companies. The ongoing work and success of these programs will help convince the rest of the country as well. K E ITH K R E U E R Principal | RedHouse Associates
ANNUAL REPORT • 2018 | 39
OwlSpark
RiceOwlSpark
OwlSpark team@owlspark.com
www.owlspark.com