Natara Branch, CEO, Houston Exponential
Natara Branch, CEO of Houston Exponential, spoke with Invest: about the organization’s mission to develop the startup ecosystem in Greater Houston and why the region is a prime location for investors. She emphasized the wide variety of industries present in the region and how innovation and collaboration are at the center of entrepreneurial growth.
What is the Houston Exponential mission, and what are some of your biggest achievements of the past year?
Our mission is to help push forward Greater Houston as a thriving startup economic ecosystem. We were brought online in 2016-2017 by the mayor’s office to start to bring forth resources in the startup economy, whether that’s startup development organizations, investors, or bringing academics to the table. The organization was created to foster the startup ecosystem and support founders. We identify the gaps in the ecosystem and engage different parts of the community to better understand Greater Houston’s strengths in innovation and technology. Our goal is to promote and facilitate collaborative relationships and strategic partnerships so people know Greater Houston is the best place to start, grow, or exit a scalable business.
How does Houston differentiate itself from other regions in the United States and Texas?
Houston’s accessibility is a key advantage, and leaders across all levels are open to collaboration and mentorship, whether it’s in government, corporate, or startup communities. They’ll open doors for you. The region thrives on diversity. Reportedly, over 145 different languages and dialects are spoken here, and one in four Houstonians was born outside of the United States. When you’ve got collaboration and international spirit, you’re talking about a large number of demographics and cultural resonance on a global scale. You’re getting the best of ideas, customers, businesses, and that’s what makes our region so special. You’re collaborating with people from all over the world. We’re no longer competing with just Houston or Texas or even the United States. This is a global competition, and you get that global business opportunity here in Greater Houston.
Houston boasts a unique combination of financial resources, talent, diversity, and collaboration. The region offers a high quality of life with an affordable cost of living and cultural diversity, making it attractive for startups and families alike. Houston Exponential aims to continue promoting the region as a premier destination for innovation and entrepreneurship.
Could you describe the current investment climate for startups and entrepreneurs in Greater Houston?
When I returned to Houston in 2022, I was told we didn’t have talent or funding. That is not the case. There is a lot of money in Greater Houston, but it’s being invested in traditional places. The startup economy is new to the Greater Houston area, so it hasn’t been big as an investment class. As clean energy and energy transition technologies grow, investment in tech startups is increasing. We’ve spent the last year promoting community partners that educate current and new investors about the startup community as an investment class. We’ve partnered with organizations like the Houston Angel Network and the University of Houston Tech Bridge to help boost investment awareness. There are many startup investors in Greater Houston; however, there has been a trend to invest predominantly outside of the region. Our task is to retain those investment dollars inside the Greater Houston area by supporting existing investors, raising awareness about our exceptional tech and innovation founders, and identifying and educating the next generation of investors.
What are a few examples of how Houston Exponential is helping these startups to network and navigate this cross-pollination?
We host an event every year called H-Town Roundup, formerly Houston Tech Rodeo. It’s a showcase of Greater Houston’s key industries and startups. It’s an opportunity for our startups to learn about resources available in their ecosystem. We have conference days specific to particular industries like clean energy tech, bio-economy, space, and sports and entertainment. The event highlights topics like AI, cryptocurrency, cybersecurity, and scaling a startup. Innovation hubs such as the Ion, the Cannon, and the University of Houston Tech Bridge serve as critical resources for entrepreneurs. When our founders can be successful, Greater Houston and the new economy of startups can be successful. The goal is to connect founders with the tools they need to succeed and grow within the Greater Houston ecosystem.
What is the next step after a startup has developed? How do you help them grow out of the entrepreneurial state?
We are looking for scalable startups. When we identify a scalable company, we ask what they need. Startups often search different cities for financing, advisors, or talent. Our goal is to show them they don’t need to leave Greater Houston. The assets and investors they need to help them grow are here.
What are some trends you’re seeing in startups, especially in technology and innovation, AI and automation, and what is influencing today’s startups?
AI and cybersecurity are key focus areas for Greater Houston’s startup ecosystem. People are asking how to utilize AI and how to incorporate AI into their businesses. We’re educating startups on how to use AI to add value to their company so they aren’t just spending money to satisfy investors’ questions. It’s not just about AI; it’s about adding meaningful value to improve your company and not following a trend. The emphasis is on sustainable, long-term growth rather than short-term trends.
Where do you see the ecosystem for startups moving in the next five years, and what steps need to be taken?
In 2021, Houston startups attracted $2 billion in investment, and efforts are ongoing to consistently surpass that figure. I want to see us have that as a sector floor and a distant memory for a total market number. We’re the fourth-largest city in the country. This region is huge and we have many different industries. We can get there. Now that we have more collaborative commercialization in our large legacy industries and new parts of our region are emerging as desirable venture hubs, we should get there quickly. We’re focused on how to get to the next level in funding new businesses.
