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Lorenzo Gomez, Author of the Cilantro Diaries, Talks About Tech in San Antonio on the Ideas to Invoices Podcast

Lorenzo Gomez III, author of The Cilantro Diaries.

The Cilantro Diaries is a delightful book about how Lorenzo Gomez III made his way first through H-E-B Grocery Store No. 5 in San Antonio and then on to Rackspace and Geekdom.

It’s a fun read and packed with good advice, particularly for people just starting out in their careers.

Gomez, the author of the Cilantro Diaries, business lessons from the most unlikely places, grew up on San Antonio’s Westside. Today, he serves as a director at Geekdom and the 80/20 Foundation, a philanthropic organization, and co-founder of Tech Bloc. He also serves as a board member, advisory board member and mentor for a variety of local and national tech and entrepreneurial organizations. He has also worked at two startups, Rackspace and CityView.

In this edition of the Ideas to Invoices Podcast, Gomez shares with us some of his “Popisms” or life lessons learned from his father that proved helpful in the workplace and in life. He also talks about San Antonio’s evolution from a tourist town to a technology center.

The book came about because Gomez worked in the produce department at H-E-B No. 5 and he also often told stories during his days at Rackspace that came to be known as the Cilantro stories.

One piece of advice Gomez tells people to do is to assemble their own personal board of directors. These are trusted confidants who want you to succeed.

“The further up I got in my career I realized that all the most successful people that I met had a personal board,” Gomez said.

People don’t have to do it themselves, Gomez said. The board consists of people who have your best interest at heart, he said.

“In your career you’re inevitably going to get to a decision point where you just don’t know what the next right decision is to make, and Google isn’t going to answer it for you and that’s when you need to go to these people on your board to get counsel,” he said.

Gomez also advises people not to speak hard truths to people whose boards they are not on.

In the book, Gomez also recounts several “Popisms” or pieces of advice from his father like “nothing good ever happens after midnight” or “You’ve got to dance with the one who brung ya.” Gomez believes strongly in loyalty and he thinks that concept is a strong one in San Antonio in particular.

Graham Weston, co-founder of Geekdom and Rackspace, is Gomez’s mentor. They shared a cubicle when Gomez was 21. Gomez advises people to look for mentors in their career paths that can unlock doors for them. They don’t have to be someone of Weston’s stature, they can be managers in a company that see potential in you.

“Who in your world can see the potential in you that even you don’t see,” Gomez said.

Gomez credits several female managers at Rackspace who changed his life and career trajectory. He’s also an advocate of diversity and inclusion in the technology workspace.

“The magic only happens when you have two radically different ideas that collide with one another,” he said. And that only happens with people from diverse backgrounds, he said.

Rackspace, founded in 1998, had such a profound impact on San Antonio and pretty much changed the face of the city from a tourist town to a tech town.

“Rackspace was one of the very first confidence boosters to the city,” Gomez said. “It really changed people’s perspectives that anyone can be in tech.”

In 2011, Geekdom also changed the face of San Antonio’s technology ecosystem downtown. It has spun out several companies and served as the catalyst for the city’s downtown tech center. Nick Longo and Weston founded Geekdom.

“Nick and Graham saw San Antonio’s potential,” Gomez said.

They created a place for a community to happen, Gomez said. Geekdom has transformed into the new way for cities to do economic development, he said. Geekdom’s companies together have created about 700 jobs, Gomez said.

For more, listen to the entire interview below where Gomez talks about the 80/20 Foundation, San Antonio’s changing skyline, Cast Tech High School and more.

Also, please rate and review our Ideas to Invoices podcast on iTunes and support Silicon Hills News by becoming a patron on our Patreon site. You will get to vote on what we cover in future podcasts and stories.

UK-Based THG is Considering San Antonio for its U.S. Divisional Headquarters with 165 Jobs

The Commerce Building, under consideration for THG’s U.S. Divisional Headquarters, courtesy photo

A technology company from the United Kingdom is considering San Antonio for its U.S. divisional headquarters with 165 high-paying jobs.

The Hut Group, based in Manchester, United Kingdom, first considered San Antonio for a new U.S. based sales center but has since decided to put an even bigger office in San Antonio, pending the approval of economic incentives.

“THG has great growth potential in San Antonio, and I am extremely happy with the prospect of having them as our newest corporate citizen,” Mayor Ron Nirenberg said in a news release. “It was obvious that THG was a perfect fit for downtown San Antonio’s booming technology sector when I first talked to them several months ago.”

THG is considering basing its operations in the Commerce Building, a 36,000 square foot historic building that is being renovated in downtown San Antonio.

“San Antonio’s secret is out: our cost competitiveness, growing tech workforce supported by military talent, and downtown development opportunity cannot be matched by other U.S. cities,” said San Antonio Economic Development Foundation President and CEO Jenna Saucedo-Herrera said in a news release. “For tech companies looking to grow in a community and make an impact, San Antonio should be on the list and along with our partners at Geekdom, we were able to make that case for THG.”

On June 19, Bexar County Commissioners Court will vote on an incentive package for THG hat includes a $250,000 grant from the County’s Innovation Fund.

“We welcome this divisional headquarters to San Antonio and know that our community’s growing tech workforce will amply support THG’s plans for growth,” Bexar County Judge Nelson Wolff said in a news release.

On June 21, the San Antonio City Council will vote on an incentive package for THG that includes a performance-based Economic Development Incentive Fund grant of up to $500,000 for the creation of at least 165 high-wage jobs in a downtown San Antonio location. All 165 positions would earn above $70,000 annually, with average earnings of $85,000.

BuildGroup Raises $330 Million Fund Aimed at Investing in Software Companies

Lanham Napier, co-founder and chief executive officer, BuildGroup. Courtesy photo.

BuildGroup, a Venture Capital firm founded in 2015, announced on Tuesday that it has raised $330 million aimed at investing in emerging software companies.

The Austin-based firm’s investors include “successful entrepreneurs and business leaders from Texas and the Rocky Mountains, with the founders contributing a significant portion of the overall funds,” according to a news release.

BuildGroup plans to use the money to invest in approximately 10 emerging software companies during the next five years.

Former Rackspace Chief Executive Officer Lanham Napier founded BuildGroup with Jim Curry, former senior vice president of strategy and corporate development at Rackspace, Klee Kleber, former Chief Marketing Officer at Rackspace and WP Engine and Peter Freeland, a venture capitalist from General Catalyst.

“BuildGroup was designed as a holding company instead of a venture capital fund to free entrepreneurs from the expectations of quick exits, allowing their companies to pursue long-term greatness,” according to a news release.

“Venture Capital works for some but not for all. Five-year horizons are designed for growth at-all-costs and quick exits. We provide permanent capital from aligned investors that really get it, which means no forced exits,” Lanham Napier, co-founder and chief executive officer, BuildGroup, said in a news release. “We want to serve the teams that build great companies, and we believe that greatness resides at the intersection of a company’s people, product, customers, culture, and business model. The magic happens when these elements are designed to reinforce each other.”

BuildGroup has already invested $57 million of its $330 million in CDSC, Anaconda, Fiix, and Valkyrie Labs.

Techstars Impact Announces its Inaugural Class of 10 Startups

Zoe Schlag, managing director of Techstars Impact, photo by John Davidson.

Techstars announced Wednesday ten startups that make up its inaugural class for the 2018 Impact program in Austin.

“Nine months ago we set out to find ten world-class teams who like us, believe that our deepest problem sets represent our biggest opportunities, and that entrepreneurs should sit at the center of our strategy to build a better future,” Zoe Schlag, managing director of Techstars Impact, wrote in a Techstars post.

The ten teams arrived in Austin on June 4th and will spend three months in the program working on building their businesses. On August 23rd, they will pitch their ventures at Demo Day.

The companies come from the U.S., Mexico, Nigeria and South Asia. The companies include the following: (Descriptions provided by Techstars)

Better Living Technologies: A monitoring solution for patients and caregivers to better manage chronic disease at home, improving health outcomes and relieving caregiver stress.

Bridgecare Finance: Consumer lending platform offering financing to make childcare more affordable and provide working mothers with better options to maintain their career paths.

MDaaS Global: Low-cost diagnostic and primary care centers that provide high-quality, affordable care to Africa’s next billion.

Graviky Labs: Patent-pending technology that captures air pollution before it enters the environment and purifies it to make high-grade inks.

TommyRun: On-demand delivery platform for construction materials, reducing operational inefficiencies for contractors while increasing wage opportunities for day laborers.

Kutumbita: Communication and engagement platform for companies to manage, train and engage their factory workforce across supply chains

Base Operations: B2B security and risk management platform that visualizes crime in heat maps for teams in emerging markets

Haven Connect: Property management software to streamline the affordable housing application process

Pipeline Equity: HR tech platform that increases financial performance of companies by eliminating gender bias.

Troposphere: Low-cost environmental monitoring for companies and communities who need to know what is in the environment around them.

Commentary: It’s time to Kick 5G innovation Into High Gear and We’re Doing it in Austin

Derek Urbaniak is the Head of Ericsson’s Austin Design Center. Courtesy photo.

By Derek Urbaniak
Head of Ericsson’s Austin Design Center
Special Contribution to Silicon Hills News

Decades ago, wireless deployment served only a narrow purpose for a narrow constituency. Today, it provides nearly limitless ways to make life easier for all people through the power of mobility. As we enter the next generation of wireless technology known as 5G, we know that mobility encompasses much more than telecommunications.

5G is expected to usher in advanced use cases that could significantly improve the lives of the residents of Austin. Applications of 5G are vast, and its applicability extends across countless industries including healthcare, energy and utilities, manufacturing, agriculture, automotive as well as enhancing traditional mobile broadband. Examples of 5G services include lifesaving technologies such connected health, safer transportation through autonomous vehicles, cloud robotics and real-time industrial control; the list goes on.

All these use cases will have one thing in common – the need for wireless connectivity with adequate capacity – something that Ericsson takes very seriously. With over 40 percent of the world’s mobile traffic solutions carried over our networks, we know how important innovation is, and we employ tens of thousands of team members and invest billions of dollars every year in research and development to continue providing ground-breaking solutions.

Now, more than ever, we must think beyond the coverage bars on our phones to bandwidth capable of streaming video, supporting wireless applications and connecting smart appliances. With every innovation comes the need for more wireless infrastructure in the form of small cells – low-powered radio access points that mobile operators use to extend service coverage and increase network capacity – on light and power poles, building facades, and even bus stops, all to provide the necessary connectivity on each city block. Today, small-cell technology will allow you to launch your favorite application or stream a video in busy downtown Austin, but in the future, it will be the key to 5G, which will enable an Austinite to hail an autonomous taxi, or a surgeon to diagnose a patient in an ambulance on the way to a hospital.

On Wednesday, June 6th, Ericsson will continue this commitment to leading the way in 5G by officially opening our 5G Design Center in Austin, representing a continued and significant investment in the state, where we already employ thousands of Texans. This new Center will focus on innovations that will accelerate the path to commercialization in the next generation of communications technologies.

Ericsson selected Austin for this 5G Design Center after a thorough, global analysis because of the unmatched telecommunications and semiconductor talent here as well as the city’s technology ecosystem. Austin’s strong technology sector has played a significant role in powering the local economy, with recent reports showing the monthly unemployment rate slipping to 2.8 percent in April as well as rapid job growth of 3.4 percent last year and a whopping 39 percent since 2006.

As Austin considers regulatory measures in this area, we encourage our City leaders to continue work with us to promote innovation by removing barriers to broadband deployment. This could come in many forms, include advancing a regulatory approach that standardizes application processes and allows for the quick deployment of small cells in metropolitan jurisdictions, implementing new strategies for complex environments like stadiums, and providing relief from onerous city requirements that lack technical descriptions.

The Austin Design Center is truly the brain for Ericsson’s mobile infrastructure and will be at the forefront of 5G technologies. We are very excited to be here and are committed to delivering solutions which in turn will help drive continued efficiency, job growth, and entrepreneurship in the city.

Looking ahead, the future in Austin is exciting, and our mission remains clear – to transform networks which will in turn transform businesses and communities, nations and governments, and most importantly, lives.

Crypto-finance Startup, Unchained Capital, Receives Nearly $3 Million in Funding

Joe Kelly, Co-Founder and CEO of Unchained Capital, courtesy photo.

Austin-based Unchained Capital, a crypto-finance startup, announced Thursday that it has closed on $2.99 million in a seed stage round of funding.

The company reports the funding will go to hiring new employees and working on its financial services and wealth management offerings.

Unchained Capital’s investors include Michael Komaransky, formerly of Cumberland Mining; Brian Spaly, prolific angel investor and co-founder of Bonobos and Trunk Club; Mike W. Erwin and Whurley of Ecliptic Capital; and Ezra Galston of Starting Line, an early venture investor in the crypto sector. In addition to making investments in the seed round, Komaransky, Erwin and Galston will join Unchained Capital’s board.

“Crypto assets are now a nearly $500 billion asset class, but are functionally invisible to the existing financial system,” Galston, Founder of Starting Line, said in a news release. “Holdings won’t enable consumers to obtain a mortgage, gain credit or serve as collateral. Unchained is bridging that gap.”

“Crypto-finance is redefining the concept of the traditional long-term investment thesis,” Erwin, Co-founder of Ecliptic Capital, said in a news release. “Unchained Capital is building the financial infrastructure for the wealth management of tomorrow, yet available for savvy crypto investors today.”

In addition to the funding announcement, Unchained Capital announced it has expanded its lending capabilities by providing Ethereum-collateralized (ETH) loans in addition to its previous ability to lend against Bitcoin.

“Accepting ETH as collateral has been high on our priority list since the beginning—lots of customers have asked for it,” Joe Kelly, CEO, Unchained Capital, said in a news release. “When it comes to accepting new forms of collateral, our first thoughts go toward security. Unlike other crypto-lenders out there who utilize exchanges, third parties or single sig addresses for collateral storage, we wanted to make sure we offered the most secure storage solution possible before opening up lending publicly.”

Austin-based SeriesX Raises $2 Million in Funding for its Platform Built on the Ethereum Blockchain

Dave Hendricks, Founder and CEO of SeriesX, courtesy photo

SeriesX, a startup based at Capital Factory, announced Wednesday that it has closed on two rounds of funding, totalling $2 million.

The Austin-based company plans to use the money to further develop its customer relationship management platform, Vertalo, which is built using Ethereum blockchain technology. It also plans to add to its technical team.

The company’s investors include Shasta Ventures, Next Coast Ventures, Capital Factory Fund 5, Yeoman’s Capital, Hampstead Park Capital, Rigel Asset Holdings, Array.VC, 11-11 Ventures, and Insiders.

In March, the company was a runner up in Capital Factory’s 100K Blockchain Challenge at South by Southwest.

“The emergence of the Security Token Offering is the next phase of the democratization of investment and investor liquidity. As organizations continue to evolve and decentralize, maintaining connections and contracts with stakeholders is becoming more challenging, and more important,” Dave Hendricks, SeriesX CEO, said in a news release.

“SeriesX and Vertalo are a perfect fit for our portfolio as part of our strategy to invest in impactful blockchain businesses,” Nitin Chopra, partner at Shasta Ventures, said in a news release. “We are convinced Vertalo and its unique model will contribute significantly to the coming convergence of HR and Fintech. As the tokenization of cap tables and hard assets become a global phenomenon, I look forward to advising the team to help transform the world of work and finance.”

SeriesX plans to launch Vertalo later this year.

ALTR, a Cybersecurity Platform Built on Blockchain Technology, Launches in Austin with $15 Million in Funding

ALTR, an Austin-based cybersecurity platform built with blockchain technology, officially launched in Austin on Wednesday.

The company, which has been in stealth mode for four years, released its first commercial software package to provide secure data access and storage on its ALTR platform.

ALTR has raised $15 million in funding from institutional and private investors in the cybersecurity, information technology and financial services industries. It also includes participation by angel investor John Stafford III, current CEO of Ronin Capital. ALTR plans to use the money on marketing and sales and to develop other products.

David Sikora, a software industry veteran and former executive chairman at Stratfor, a global research, and intelligence platform, is the CEO of ALTR.

“Sikora is noted for executing the first internet software IPO in Texas with The ForeFront Group, and previously served in key leadership roles at Digby, Motive and Pervasive Software,” according to a news release.

ALTR’s board of advisors includes Mike Maples Sr., a former software executive at IBM and Microsoft, Fred Burton, former deputy chief of the counterterrorism division at the U.S. Diplomatic Security Service and Michael Hermus, a software entrepreneur and emerging technology expert who recently served as CTO of the U.S. Department of Homeland Security. It also includes John Swainson, former Dell executive and past CEO at CA and Scott Abel, co-founder of Spiceworks.

“Network-focused security isn’t enough because it never really puts a dent in the sheer number of vulnerabilities,” Sikora said in a news statement. “Rather than patching the existing attack surface, ALTR has found a way to significantly reduce it. In fact, with ALTR’s full solution in place, the threat vectors for data move to nearly zero. Digital trust can finally be restored.”

ALTR’s platform consists of an ALTR monitor, ALTR govern and ALTR protect. It integrates into existing computer networks and supports Microsoft, Oracle and open-source database platforms. ALTR has 12 patents and more than 30 pending.

HeatGenie Has Raised $5.9 Million of a $6.7 Million Round of Funding

HeatGenie, an Austin-based startup with an innovative way to heat up beverage cans, has raised $5.9 million of a $6.7 million round of funding, according to a filing with the Securities and Exchange Commission.

The company, founded in 2007, has previously raised $3.6 million, according to CrunchBase. ARTIS Labs led the latest round of funding with participation from Almanac Investments and private investors.

HeatGenie plans to use the funding to complete product development and launch into the marketplace, according to a news release.

HeatGenie has a patented technology that allows consumers to heat drinks in a can simply by twisting the lid causing a solid-state thermal reaction and after a few minutes the beverage is hot. The company reports its technology is environmentally safe and recyclable.

“We have always had an incredibly positive response to our technology from CPG brands, many expressing early interest in embedding HeatGenie into products,” Mark Turner, HeatGenie CEO, said in a news release. “Now, with a commercialized and scalable solution ready for market, we are already partnering with beverage companies eager to give consumers a simple way to instantly heat coffee, tea, soup, broth, or sake, wherever and whenever they please.”

“As the first and only self-heating technology to meet the rigorous standards set by the industry’s biggest beverage brands, we see great potential for HeatGenie to disrupt and bolster multiple markets,” Stuart Peterson, founder of ARTIS, said in a news release. “We believe HeatGenie, its team, and platform will create new ways for all of us to enjoy instantly hot beverages, meals and more.”

HeatGenie reports its first products will be available this summer.

Walter Robb, former co-CEO of Whole Foods Market, is an investor and is on the company’s board of directors.

Heat Genie Promo from Sean Lane on Vimeo.

New VC Firm Trust Ventures Raises $35 Million Fund to Focus on Disruptive Startups

Salen Churi, partner at Trust Ventures, courtesy photo.

Austin entrepreneurs often complain about the lack of venture capital, especially for first-time entrepreneurs and early-stage startups.

The pain is real. Austin does not have as many venture capital firms and venture capital funds as California. But slowly that is starting to change.

During the past decade, several new funds have sprung up including LiveOak Venture Partners, Silverton Partners, True Wealth Ventures, Next Coast Ventures and more as Austin Ventures, the billion dollar VC fund, scaled down its operations.

And now add Trust Ventures, an Austin-based venture capital firm to the mix. The firm has raised an initial $35 million fund, backed by Koch Disruptive Technologies, a subsidiary of Koch Industries, to invest in and support “innovative startups facing public policy barriers,” according to a press release. “The firm will focus on investments in transportation, energy, finance, insurance, healthcare and other industries where barriers stand in the way of companies working to revolutionize the status quo.”

Brian Tochman, partner at Trust Ventures, courtesy photo.

Salen Churi and Brian Tochman lead Trust Ventures. Previously, Churi worked as a law professor and founded the Innovation Clinic at the University of Chicago Law School. He also practiced law at Kirkland & Ellis and Sidley Austin. “While at the Institute for Justice, Churi helped successfully advocate to legalize street vending in Chicago,” according to a news release.

“Innovative startup companies can transform the lives of consumers, reshape or create entire industries, advance economic opportunities and produce sizable returns for investors,” Churi said in a news release. “However, many of these companies now find their path to market blocked by public policy barriers that, while once well-intentioned, today hinder creative solutions for some of our biggest problems.”

Tochman was the co-founder, president and chief operating officer of Kasita, an Austin-based startup that builds modular homes and apartments. Previously, he worked as vice president of mergers and acquisitions for Platinum Equity, a Beverly Hills, CA-based private equity fund.

“Working with Trust Ventures helps disruptive startups find their footing in industries dominated by entrenched incumbents who can bend the rules to protect their businesses,” Tochman said in a news release. “We’re about working to change the rules to unlock economic opportunities for investors and deliver value to consumers.”

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