It was March 2020 — when COVID-19 was making headlines — that the music at the Houston Symphony stopped. But that silence only lasted a short while as musicians, staff and leadership came together to innovate through the crisis, build their audience and create new performances. As they navigated the pandemic, Scott Sonenshein worked with Rice Research Analyst Kristen Nault to launch a multi-year study of two symphonies, one being Houston’s, and the ways they managed the crisis.

Here, Sonenshein talks with John Mangum, the CEO and Margaret Alkek Williams Chair of the Houston Symphony, about resilience, innovation and leadership through crisis, and the ways in which resourcefulness isn’t just a tactic for survival, but a strategic framework for stronger organizations — crisis or no crisis.

Scott Sonenshein: As I began my research, I was looking for a performing arts organization to study through the pandemic because, at that time, the industry — which depends on congregating for practices and performances — had a 65% unemployment rate. Broadway was closed — in fact, most performing arts organizations were at a complete standstill. It turned out that one of the few organizations that was still playing happened to be in my hometown in Houston.

John Mangum: We did initially shut down. As the pandemic progressed, we realized that we weren't going to have ticket revenue coming into the organization for some time. We started talking with our musicians about how we could continue our work in this new environment. We rallied around two clear points to organize our thinking. One, this is a group of incredibly skilled, incredibly gifted musicians, and they thrive on performing. Two, what we do has value. SS: I was studying a second symphony organization at the same time that took a different approach and stopped performances. What we saw in the Houston Symphony Orchestra was an organization that was relentless in its determination to keep playing. We saw a lot of innovation and creativity in finding ways — not to just put online what they were doing before — but to reinvent what they were doing so it would be suitable for the world they were operating in.

JM: Yes, we started to formulate an idea of inviting our audience into the living rooms of our musicians. We would send a camera and a microphone out to the homes of musicians, and every Friday they had carte blanche — they could play whatever they wanted, and they could talk about their work. We were giving audiences a completely different experience than they would get coming to Jones Hall to hear the symphony, and we charged a small fee for that specific performance.

SS: This approach also grew the audience because they were one of the few organizations thinking this way.

JM: The city let us get back in our hall for 4th of July weekend, and over the course of the summer, we could get the orchestra together in small groups sitting apart. Getting the orchestra back on stage and live streaming those performances was important at the time, but we also still have about a thousand households watching our live streams every weekend. So we developed this new stream of revenue that came out of the pandemic and has stuck with us as a wonderful audience development tool.

SS: Presumably you could have created these products before the pandemic, but it was only because of the constraints of the pandemic that you were forced to think differently. That's really the power of resourcefulness and why it becomes a strategic asset, not just a defensive strategy. It gives us permission to do things unconventionally — and those unconventional thoughts can take an organization beyond regular performance to exceptional performance.

JM: During the pandemic, we weren't under pressure to sell tickets — and that gave us the ability to program whatever we wanted. Another factor was the George Floyd protests in the summer of 2020 that made us aware that historically we had not been representing Hispanic or Black women on our stage with our programming. We began to program this work in a really robust way. And that, too, is something that's continued. We developed new skills around collaboration and exploration that, again, absent the pandemic and the social justice conversations, we may never have discovered.

SS: Leadership played a big role here. We matched the two symphonies we studied in just about every other way except the fact that they were performing or not performing. They were similar in revenue, similar in political environments, similar in COVID restrictions. A trust developed in the Houston Symphony between staff and musicians and leadership. The opposite was true of the other symphony. There were certainly economic hardships, but we talked about how these performers have an innate desire to perform, and there was a lot of sadness in this other symphony that was unable to deliver that experience for their staff. What we saw in the other organization was threat rigidity — an approach you often see with leaders facing crisis. It’s the idea that an organization should close up and constrict resources at a time when you really need innovation and creativity. If you want to mobilize and help an organization adapt to adversity, you need to activate all of your staff, all of your employees. And that starts by having them trust you and recognize that you've got their interests in mind; that you've got a vision in terms of being able to weather the storm, but transparency in the fact that you might not have all the answers.
 

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Entreprenuers share advice for startups

Rice Business is known for building entrepreneurs — the Princeton Review and Entrepreneur magazine, for example, have ranked us No.1 for five years running. Our students have a lot going for them: for example, professors who encourage innovation and places like Liu Idea Lab and Rice Alliance that support their work.

Students also have a large alumni network. In this ongoing series, we turn to our established entrepreneurs for advice on how the next generation can successfully launch and grow their ventures.

This time, we tapped into the expertise of the 200-plus participants in Rice Alumni Entrepreneurs and Innovators roundtables — forums that foster peer-to-peer support within a small group of organization founders. We asked them: How does a founder know when to take the leap and start running their startup full time?

Here’s what these experienced entrepreneurs had to say.

How Do You Know When to Take the Leap? 

Education

University of Houston: an undergraduate degree in management
information systems.

Current Role and Career Journey

Currently, I am the director of strategy, planning and operations at AOI (Applied Optoelectronics, Inc.), a prominent semiconductor telecommunications company.

Throughout my two-decade tenure, I’ve developed a diverse skill set. Starting from the ground level in order entry in 2004, I moved to more significant roles in sales, marketing, project management and process improvement. My role expanded significantly as the company acquired two Asian manufacturing sites and established a research and development center in Atlanta, Georgia. Additionally, we went public on the NASDAQ exchange in 2013. 

During this time, I also nurtured a passion for DJing. What started as a hobby became a successful business venture for over 24 years.  DJing honed my ability to cater to diverse audiences, adapt to preferences, and strategically manage events, eventually leading me to event planning and wedding planning businesses. 

I'm also committed to community involvement. I have served in leadership capacities at non-profits like a summer camp for kids for over 26 years, a local AAPI performing arts non-profit organization for five years, and a high school Junior Achievement team (winning 2nd place at JA EnTEENpreneur Conference at Rice University this past December). 

These experiences have underscored the inter-connectedness of personal and professional growth. With the recent milestone of starting a family, I chose to pursue an Executive MBA to continue my advancement and leadership journey.

Why did you choose a Rice Business Executive MBA?

I chose Rice’s EMBA program for its strong brand reputation, focus on student diversity and convenient location. The program's prestige enhances my professional profile and networking opportunities. The diverse student body exposes me to perspectives beyond my industry experience. And the proximity to my workplace allows easy access to resources and deeper connections with classmates and alumni. Additionally, as a local alumnus, I can audit classes after graduating.

What do you enjoy the most about being a Rice MBA student?

I appreciate the program’s convenient location. The proximity has been a significant advantage, allowing me to attend more events and meet with team members more easily, enhancing my overall experience.

How does the program positively impact you at work, and can you share an example of applying what you learned on the job?

The EMBA program pairs groups with executive coaches, a valuable resource that has broadened my view on coaching and mentoring others. I’ve gained insights into effective methods for nurturing teams and mentoring students. Also, I’ve proactively sought out additional coaches to further my own development. In this way, I've gained valuable insights from seasoned executives.

Willis Chen is an Executive MBA student in the Class of 2025.

Ice cream company Protein Pints took home the grand prize at the 2024 Rice Business Plan Competition (RBPC) April 6 as the best student ventures from top universities across the world competed for prizes in front of nearly 350 angel, venture capital and corporate investors and members of the business community.

During his acceptance speech, Founder and CEO of Protein Pints Paul Reiss said, “"The love and support that we've been shown during our time here at Rice, and the relationships and the friends that we've made, is something that I know I and every other student here is going to remember for the rest of our lives."

Hosted annually by the Rice Alliance for Technology and Entrepreneurship and Rice University’s Jones Graduate School of Business, the RBPC is the world’s largest and richest student startup competition.

The RBPC offers real-world opportunities to learn what’s required to successfully launch a new business. In addition to the substantial cash, investment and in-kind prizes, the heart of the competition is the mentoring from investors and experienced entrepreneurs. RBPC alumni have raised more than $6.1 billion in capital and 288 are in business or have had successful exits.

The winners were announced at the conclusion of the three-day pitching, mentoring and networking event, which included an elevator pitch competition, practice round, semifinals, wildcard and final round.

“We award the competitors $1 million in prizes, prizes that serve as foundational capital to launch their startup,” said RBPC Director Catherine Santamaria in her welcome speech at the awards gala April 6.

“That’s a large number of prizes, but the biggest thing our startups leave with is a feeling of generosity and community from this room. This community is always ready and willing to help our founders and support our vision for the competition by investing time, money and resources in these student innovators.”

The 42 competing startups represented 35 universities from four countries. They were chosen from more than 450 applicants to compete in one of five categories: energy, cleantech and sustainability; life sciences and health care solutions; consumer products and services; hard tech; and digital enterprise. Learn more about all of the startups here.

The seven finalists based on the judges’ overall scores were:

Protein Pints, Michigan State University — first place and the $150,000 GOOSE Capital Investment Grand Prize.

• Protein Pints is a high-protein, low-sugar, ice cream product designed for people who would benefit from having access to a functional ice cream and/or better tasting and more enjoyable protein options.

Somnair, Johns Hopkins University — second place and the $100,000 Investment Prize, sponsored by David Anderson, Jon Finger, Anderson Family Fund, Finger Interests, Greg Novak and Tracy Druce.  

• Somnair is a Novel Non-Invasive Neurostimulation device for the treatment of obstructive sleep apnea.

Power2Polymers, RWTH Aachen University — third place and the $50,000 Rice University investment, provided by the Rice Alliance for Technology and Entrepreneurship and sponsored by Finger Interests, the Anderson Family Fund at the Greater Houston Community Foundation, Greg Novak and Tracy Druce.

• Power2Polymers tackles the pressing issue of 'forever chemicals', which have been linked to over 6.5 million deaths in the U.S. alone, by offering safe alternatives free of forever chemicals.

Informuta, Tulane University — fourth place and the $5,000 prize, sponsored by Norton Rose Fulbright.

• Informuta's proprietary technology leverages DNA sequencing to predict if bacteria will respond to different antibiotics or, for the very first time, develop future resistance thus causing treatment failure.

Icorium Engineering Company, University of Kansas — fifth place and the $5,000 prize, sponsored by EY.

• Icorium Engineering Company is a chemical engineering startup and University of Kansas spinout developing technologies to make sustainable, circular economies a reality for refrigerants and other complex chemical mixtures.

EndoShunt Medical, Harvard University — sixth place and the $5,000 prize, sponsored by Chevron Technology Ventures.

• EndoShunt is transforming trauma surgery with a rapid, targeted blood flow control device.

D.Sole, Carnegie Mellon University — seventh place and the $5,000 prize, sponsored by Shell Ventures.

• D. Sole is advancing the development of remote patient monitoring in podiatry with foot insoles designed for the early detection and monitoring of diabetic foot complications, such as ulcers and deformities.

The fourth through seventh place startups were also awarded an additional investment prize of $25,000 each provided by Rice Alliance and sponsored by David Anderson, Jon Finger, Anderson Family Fund, Finger Interests, Greg Novak and Tracy Druce, bringing their finalist prize totals up to $30,000. 

Other significant prizes this year and the teams that won them include:

• $200,000 Goose Capital Investment Prize — Osphim, RWTH Aachen University
• $250,000 OWL Investment Prizes — MesaQuantum, Harvard University
• $100,000 OWL Investment Prizes — Icorium Engineering Company, University of Kansas
• $100,000 Houston Angel Network Investment Prize — Somnair, Johns Hopkins University
• $100,000 The Indus Entrepreneurs (TiE) Texas Angels Investment Prize — Protein Pints, Michigan State University
• $60,000 nCourage Courageous Women Entrepreneur Investment Prize — MesaQuantum, Harvard University
• $40,000 nCourage Courageous Women Entrepreneur Investment Prize — Icorium Engineering Company, University of Kansas
• $40,000 Pearland EDC Spirit of Entrepreneurship Cash Prize — Informuta, Tulane University
• $25,000 New Climate Ventures Sustainable Investment Prize — Oxylus Energy, Yale University
• $25,000 Dream Big Ventures Latino Entrepreneur Investment Prize — Dendritic Health AI, Northwestern University
• $25,000 NOV Energy Technology Innovation Cash Prize — LiQuidium, University of Houston
• $25,000 Urban Capital Network Diversity Investment Prize in Partnership with South Loop Venture Investment Prize — TouchStone, University of California, Berkeley
• $25,000 Southwest National Pediatric Device Consortium Pediatric Device Cash Prize — EndoShunt Medical, Harvard University
• $25,000 Jacobs, Intuitive Machines and WRX Companies Rising Stars Space Technology and Commercial Aerospace Cash Prize — MesaQuantum, Harvard University

For more information about the 2024 Rice Business Plan Competition, visit rbpc.rice.edu.

Based on research by Yan “Anthea” Zhang, Haiyang Li, Jin Chen and Jing Jin

• In mature markets like NYSE, underwriter reputation is a reliable indicator of IPO quality.  
• But in emerging markets, underwriter fees are a better indicator of investment risk.
• Investors should only assume that top-tier underwriters represent high-quality firms if the market has a developed regulatory environment.

Many investors assume they can judge the strength of an IPO based on the reputation of the underwriter supporting it.

However, a recent study by Rice Business professors Anthea Zhang and Haiyang Li, along with Jin Chen (Nottingham University) and Jing Jin (University of International Business and Economics), proves this is only sometimes true — depending on how mature the stock exchange is.

Getting your company listed on the stock market is a big step. It opens new opportunities to raise money and grow the business. But it also means facing increased regulations, reporting requirements and public scrutiny.

To successfully launch an initial public offering (IPO), most companies hire “underwriters” — financial services firms — to guide them through the complex process. Because underwriters have expertise in valuations, filing paperwork and promoting to investors, they play a crucial role in ushering companies onto the market.

In well-established markets like the New York Stock Exchange (NYSE), an underwriter’s reputation carries immense weight with investors. Top-tier banks like Goldman Sachs have built their reputations by rigorously vetting and partnering with only the most promising companies. When Goldman Sachs takes on the role of underwriter, it sends a strong signal to potential investors that the IPO has met stringent standards. After all, a firm of Goldman’s caliber would not risk tarnishing its hard-earned reputation by associating with subpar companies.

Conversely, IPO firms recognize the value of having a prestigious underwriter. Such an association lends credibility and prestige, enhancing the company’s appeal. In a mature market environment, the underwriter’s reputation correlates to the IPO’s potential, benefiting both the investors who seek opportunities and the companies wanting to make a strong public debut.

However, assumptions about an underwriter’s reputation only hold true if the stock exchange is mature. In emerging or less developed markets, the reputation of an underwriter has no bearing on the quality or potential of the IPO it pairs with.

In an emerging market, the study finds, investors should pay attention to how much the underwriter charges a given IPO for their services. The higher the fee, the riskier it would be to invest in the IPO firm.

To arrive at their findings, the researchers leveraged a unique opportunity in China’s ChiNext Exchange. When ChiNext opened in 2009, regulations were low. Banks faced little consequence for underwriting a substandard IPO. Numerous IPOs on ChiNext were discovered to have engaged in accounting malpractice and inaccurate reporting, resulting in financial losses for investors and eroding confidence in the capital markets. So, for 18 months during 2012-2013, ChiNext closed. When it reopened, exchange reforms were stricter. And suddenly, underwriter reputation became a more reliable marker of IPO quality.

“Our research shows how priorities evolve as markets mature,” Zhang says. “In a new or developing exchange without established regulations, underwriter fees paid by IPO firms dictate the underwriter-company partnership. But as markets reform and mature, reputation and quality become the driving factors.”

The study makes a critical intervention in the understanding of market mechanisms. The findings matter for companies, investors and regulators across societies, highlighting how incentives shift, markets evolve and economic systems work.

The research opens the door to other areas of inquiry. For example, future studies could track relationships between underwriters and companies to reveal the long-term impacts of reputation, fees and rule changes. Research along these lines could help identify best practices benefiting all market participants.

“In the future, researchers could explore how cultural norms, regulations and investor behaviors influence IPO success,” says Li. “Long-term studies on specific underwriter-firm pairs could reveal insights into investor confidence and market stability. Understanding these dynamics can benefit companies, investors and policymakers alike.”

Yan “Anthea” Zhang is the Fayez Sarofim Vanguard Professor of Management – Strategic Management at Rice Business.

Haiyang Li is the H. Joe Nelson III Professor of Management – Strategic Management at Rice Business.

For more information, read “Who do you take to tango? Examining pairing mechanisms between underwriters and initial public offering firms in a nascent stock market” Strategic Entrepreneurship Journal 16.1 (2022): 97-128. https://doi.org/10.1002/sej.1414

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The first year in any new job is getting to know the people, the culture and the place — and I have spent the last few months doing just that. I’ve sipped Audrey’s coffee with staff to learn more about the services and opportunities we offer students. I’ve talked with faculty members to learn more about their research. And I’ve had great conversations with alumni about their career paths and story ideas.

When work is all said and done at the office, I’ve spent a lot of time getting to know the very cool city of Houston — its neighborhoods, like the Heights and Montrose; its outdoor walking spots, including Hermann Park and the new land bridge in Memorial Park; and its food, from the obvious Tex-Mex and barbecue delights to the extensive global cuisine that Houston offers, including any African, French, Mexican, Indian or Asian dish you’re after.

But our location gives us so much more than delicious meals and trendy neighborhoods. We sit at the center of one of the largest, most diverse cities in the U.S. with more Fortune 500 companies than any other city except New York City. This allows us to do what great educational institutions do best: give our students and faculty the resources and connections they need to solve global problems for the betterment of all.

One of those global issues is the coming energy transition. Our location in the energy capital of the world puts Rice in an ideal spot to study one the largest issues of our time. The decades-long transition to cleaner energy will be daunting as businesses try to grapple with the right decisions to move forward. To prepare, Professor Nicola Secomandi recently took on a new role at Rice Business: senior advisor to the dean on energy transition. Secomandi will be the first to tell you that he doesn’t have definitive answers. But he does know Houston is a great spot to find them, to have these conversations, to conduct this research and to collaborate with partners in the city. — Maureen

Our location allows us to do what great educational institutions do best: give our students and faculty the resources and connections they need to solve global problems for the betterment of all.

Email: maureen.harmon@rice.edu