Tech entrepreneurs launch consulting biz for startups

Houston Business Journal - by Christine Hall, Reporter

For those in the Houston technology scene who want to know what serial entrepreneur Doug Erwin will do next, look no further than his previous office in Montrose.  He has joined with his son, Benjamin, as well as Michael Clark, Keith Kreuer and Joseph Horzepa to start RedHouse Associates LLC. Most of RedHouse’s members co-founded or were executives at Penta-Safe Security Technologies Inc., a security management software vendor that was acquired in 2000 by San Jose, Calif.-based NetIQ Corp.

The RedHouse team includes entrepreneurs and technology executives who will channel their expertise into advising startups, notably in the technology sector. The company will hang out its shingle April 1.

When PentaSafe started in 1997, it worked out of the mansion at 802 Lovett Blvd. The office is now used by BBS Technologies Inc., which was cofounded by Clark and Rick Pleczko, who is not involved with RedHouse. RedHouse will share space in the same offices.

“Young entrepreneurs need money and coaching,” Erwin said. “We want to introduce them to the people with the money who would invest in them.”

Depending on a startup’s need, RedHouse may become its first investor, taking a small equity piece in the company and placing a RedHouse adviser on the leadership team. If needed, some clients can even share office space with RedHouse.

However, RedHouse doesn’t want to be thought of as an incubator or a venture capital firm.  “RedHouse isn’t trying to compete with Rice Alliance for Technology and Entrepreneurship, the Houston Technology Center or venture capital companies,” said Kreuer. “Instead, we want to work with all of those organizations to help further our clients.”

Erwin and the rest of the group’s wins as entrepreneurs have already given them a fan in Brad Burke, managing director of Rice Alliance, who said RedHouse is a “great addition” to Houston.

“Doug is one of the most successful entrepreneurs, and you have Keith and Michael, who are long-time angel investors,” he said. “To have them be willing to focus their time and energy in mentoring and have the ability to invest will be good for any company.”

That sentiment is echoed by Walter Ulrich, president and CEO of the Houston Technology Center, who worked with Erwin on HTC’s board of directors. RedHouse is a “good opportunity” for entrepreneurs, he said, to get personal support from Erwin, whom he called an “incredibly successful entrepreneur.”

Erwin was CEO of The Planet until late last year when the Houston-managed hosting company merged with Dallas-based SoftLayer Technologies Inc. (Read more at http://bizj.us/b212z.)

RedHouse is also planning to bring back some of its block parties that PentaSafe made popular in the Montrose mansion. At one time, the parties attracted as many as 300 people, Erwin said. It also was a networking spot where entrepreneurs could meet bankers, venture capitalists, lawyers and other CEOs.

Meanwhile, RedHouse is already looking over 15 startups, and Erwin said he expects to initially take on three of those companies as clients.

chall@bizjournals.com • 713-395-9635

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