The startup ecosystems at six University of Texas campuses are about to get significant boosts thanks to a $5 million donation.
The grant from Blackstone Charitable Foundation will support Blackstone LaunchPad programming at campuses across the state, giving student entrepreneurs access to mentoring, fundraising networks and events that can help them develop products and catch the attention of potential investors. Blackstone has partnered with nationally renowned startup accelerator Techstars to provide additional resources to students and universities.
Campuses selected for the expansion include UT El Paso, UT Permian Basin, UT Rio Grande Valley, UT San Antonio, UT Medical Branch in Galveston and UT Southwestern Medical Center in Dallas. Four of those campuses are designated Hispanic-serving institutions.
There are already Blackstone LaunchPad programs at both UT Austin and UT Dallas.
Steve Guengerich, associate vice president of innovation and commercialization at UT Dallas, said he has visited all of the new LaunchPad campuses and seen significant excitement both on and off campus.
"It's probably going to serve as one of the most significant catalyzing moments in the communities at large, not just the universities," he said.
Each campus operates in unique markets. For example, the Rio Grande campus is centered around a lot of trade, logistics and distribution activity, making it a fit for innovations in those industries. Meanwhile, the Permian Basin is a hotspot for energy, water use and climate-related ideas. By working with community partners, the university-based programs will have a broader impact, Guengerich said.
“I don’t think it would be overstating it to say that $5 million across the eight campuses involved could turn into probably $20 million, at least, over the three year life of this grant," he said. "I say that because it has such a multiplier effect, in terms of the interest from local entrepreneurs, donors, grant makers and civic and regional institutions."
Each campus will have broad discretion on how to spend the new funding, perhaps launching "Shark Tank" style investment events, pitch competitions or other engagement initiatives.
The new startup resources come as Texas' startup ecosystems continue to strengthen connections across the state. Capital Factory, DivInc, MassChallenge Texas and SKU are just a few of the organizations that have expanded across major Texas metro areas in recent years.
Blackstone LaunchPad, established in 2008 by the charitable arm of New York investment firm The Blackstone Group (NYSE: BX), first emerged in Texas at UT's campuses in Austin and Dallas in 2016. The university said more than 14,000 students have engaged in programming each year at those two campuses.
Many innovators outside of the big metro areas haven't had easy access to the types of resources Blackstone and Techstars bring, Guengerich said.
"That's just a huge boon to some of these entrepreneurs who are in El Paso or Edinburg," he said.
