OwlSpark – 2018 Annual Report

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.

2 | OWLSPARK

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

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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.

22 | OWLSPARK

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

24 | OWLSPARK

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.

26 | OWLSPARK

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.

28 | OWLSPARK

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