A recharge for Station Houston
New CEO at hub for startups boasts strong educational push in city’s bid to boost innovation and investment
Station Houston has passed the startup stage.
The fast-growing hub for technology startups on Tuesday announced Gaby Rowe as its new CEO. She’ll be charged with managing Station Houston’s aggressive growth streak and defining the organization’s role in a muchanticipated innovation district.
“She’s somebody who can understand how to develop a strategy and how to get people to implement a strategy,” Station Houston co-founder Grace Rodriguez said. “And that was something I think we were having a challenge with.”
Founding CEOs have a certain skillset. John “JR” Reale, co-founder and former CEO of Station Houston, is credited with rallying support. He beat down doors and got people to listen. His tenacity and drive placed Station Houston at the center of the city’s efforts to attract technology innovators and investors.
“If someone had asked me to do what JR had done two years ago, I never would have been able to do it,” Rowe said.
Now, her experience will assist with running a large, fast-growing company. In New York City, Rowe expanded her grandfather’s 44student private school to 765 students across multiple campuses. Her focus on technology, such as beta testing the iPad, helped attract private equity.
Rowe, 52, moved to Houston in 2014 as head of school for The Village School. Here, she raised capital to expand facilities and spearhead innovative curriculum updates, such as required coding classes for middle-school students and an entrepreneurship diploma with The Wharton School of the University of Pennsylvania.
“What I came in there to
do was less about the teaching and more about changing the platform of education in Houston,” she said, “and in the process of that I ended up falling in love with Houston.”
Education is a big part of Houston’s efforts to nurture high-growth, high-tech companies, said Blair Garrou, managing director of Mercury Fund, an early-stage venture capital firm.
Existing entrepreneurs must learn how to scale their businesses. Adult workers need to learn the skills of a future work force. And a talent pipeline needs to be developed in K-12 schools and universities.
“These are things that Gaby is passionate about, that she’s very good at, that’s she spent a large amount of her career around,” he said.
He also praised her executive leadership skills and her innovation work in New York City. As a side gig to growing her grandfather’s school, Rowe helped create K-12 afterschool programs, adult retraining courses and other avenues to build a pipeline of talent for New York City’s “Silicon Alley.”
“Having that experience set in other markets is really critical to understanding new ways that we can improve,” Garrou said.
Garrou helped launch Station Houston in March 2016. Garrou is also a board member for Station Houston and Houston Exponential, a nonprofit tasked with marketing and connecting Houston’s various innovation organizations.
When Station Houston debuted, Houston ranked No. 39 among U.S. cities as measured by new venture capital deals, startups actively receiving venture capital and the amount of growth venture capital money invested.
Houston has reversed this trend in the last two years. It broke into the top 30 cities during the first half of 2018, said Ed Egan, director of the Rice University Baker Institute’s McNair Center for Entrepreneurship and Innovation.
“This is a Station Houston effect,” Egan said. “We’re actually seeing deal-flow out of Station Houston driving the numbers.”
That’s why he questioned changing CEOs — why make a change when the performance under Reale has been “exemplar”? His concern is that Station Houston remains a for-profit institution that succeeds or fails based on its ability to make money.
Rowe said she completely agrees with his last point. Her focus will be on raising money from investors who are sophisticated and knowledgeable of high-tech startups.
She’s excited that her hobby — having served on the board of Station Houston and as chair of Houston Exponential’s learning committee — is now her full-time job.
Her first priority will be on the innovation district. Rice University announced in April that it’s investing $100 million to transform the former Sears property in Midtown into an innovation center for technology companies.
Rowe said Station Houston is finalizing the details with Rice, but its priorities will be on providing programs and services that help startups grow.
She also plans to build upon Reale’s foundation with the corporate community to better connect entrepreneurs and large organizations. For the longer term, she said, she will focus on collaborating with startup organizations, investors, universities, the city and other stakeholders.
Rodriguez described Rowe as a great negotiator who is able to find middle ground among people with various opinions.
Russ Capper, executive director of Houston Exponential, praised Rowe’s resume. He called her a high-energy leader and an ideal choice for the job.
“She has just an extraordinary, make-it-happen track record,” he said.
For Reale, the change is “bittersweet.” He said he supports Rowe and will remain on the Station Houston board of directors.
“This is something I’ve put all of my energy into and I’m super passionate about,” he said. “And I think we’ve done some great stuff, so I’m proud of it. There’s just a lot more work to be done.”