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Eavesdropping in Houston

Overheard: Fintech company with Houston ties sees opportunity for growth in new work-from-home age

AvidXchange executives explain why a crisis like the pandemic can provide opportunities for growth or realignment. Photo via Getty Images

From esports to telemedicine, some technologies are having a major moment during the COVID-19 crisis. As many businesses are operating remotely with work-from-home policies in place indefinitely, payments automation is another technology that's seen an opportunity amid the pandemic.

AvidXchange, which has invoice and payment processes automation software for mid-market businesses, is one of the companies in this payment automation space that's seen growth in spite of the economic downturn caused by the virus. The Charlotte, North Carolina-based company was founded in 2000 and went on to acquire Houston-founded Strongroom Solutions Inc. in 2015.

Since the acquisition, AvidXchange has quadrupled its presence in Houston and does a good deal of business locally. Equipping companies with tools for remote work is crucial — now and especially in light of Houston's propensity for challenges. Tyler Gill, vice president of sales for AvidXchange based in the Houston office and former CEO of Strongroom, joined Houston Exponential on a virtual panel to discuss this topic.

"We've had a history of disasters in Houston. Any time we can help businesses move to a more cloud-based infrastructure is going to be better," Gill says on the livestream. "I think working from home is maybe the new normal for a lot of employees — so how do we enable this?"

Gill and his colleague, Chris Elmore, senior sales performance director at AvidXchange, joined Joey Sanchez of HX for the talk about the acquisition, the pandemic, and growth for the company. If you missed it or don't have time to stream the whole conversation, here are some impactful moments of the chat.

“Economic downturns have a tendency to put a very bright light on a feature set or a product or a service that’s underperforming."

— Elmore says on how the pandemic affects innovation and startups. "My hope is that entrepreneurs will see this as a real time to get focused on their business — what's working well and what's not working well — and my hope is that they'll say, 'I need to fix that,' not 'I wish this was better,'" he says.

“For a young entrepreneur looking to build a business, make sure you’re looking for the people who are germane to your business.”

— Gill says about starting his business in Houston. At first, he was trying to find investors in oil and gas, but he found more success working with companies with a background in finance technology. "Houston has a history and density in fintech — I just had to find it."

“The fact that Strongroom owned the automated payment process in HOA that made them so attractive to AvidXchange because we didn’t.”

— Elmore says on the 2015 acquisition. He explains that AvidXchange had set up a presence in multifamily and commercial real estate, while Strongroom had a hold on homeowner's association, or HOA, business. The two companies competed for a while, and if Strongroom hadn't had their HOA specialty that made the company ideal for acquisition, Elmore says the two companies would still be competing today.

“When Strongroom was added to AvidXchange, our culture improved. By the way, we went from 40 employees to 1,000 within 14 months, and Strongroom was right at the beginning of that.”

— Elmore says on growth following the acquisition. The company now has 1,500 employees across seven offices and just closed a $128 million round of fundraising in April.

“Customers don’t care how big you get or how much money you raise from investors. They care about if your service is still doing the things they need to operate their business.”

— Gill says, reminding entrepreneurs to always prioritize and be focused on the client experience — through mergers or acquisitions, fundraising rounds, growth, etc.

“When you replace human interaction with technology, what you have to do, is to now move that person on to something more impactful and more important for the business. I don’t like tech for tech’s sake.”

— Elmore says on the importance of automation. "When you automate something, the output of automation is time," he adds.

“Houston couldn’t be a better place to build a business — I found great investors and employees here. It’s a city that’s used to risk. But it’s got to be you, the entrepreneur, that’s got something festering — that’s how you know it’s a great idea.”

— Gill says on inspiring future innovators. "What kept me motivated was I wanted to win. I felt like we had a great product, and we had a big market to serve. … I wanted to build something lasting and build a great team."

“We continue to be a great Houston story — some of my angel investors in Houston are still benefiting."

— Gill says on AvidXchange's presence in Houston. He adds that he's proud of how his former Strongroom team members have risen through the ranks of the company following the acquisition and that he sees the company, which is still privately held, moving toward IPO.

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Building Houston

 
 

SpaceCom is taking place online this year for free. Here's what you need to sign up for. Photo courtesy of SpaceCom

Today marks the first day in SpaceCom's two-week online conference featuring space entrepreneurs, NASA executives, government experts, and more.

Usually a must-attend event hosted at George R. Brown Convention Center in downtown Houston, SpaceCom is free and virtual this year. Register to attend and check out this curated list of 10 can't-miss discussions.

Click here for the full schedule.

Tuesday, October 20 — General Session: Whole of Government

Greg Autry, director at SoCal Commercial Spaceflight Initiative, will moderate a discussion with Kevin O'Connell, director at the Office of Space Commerce Department of Commerce, and Scott Pace, executive secretary at the National Space Council. The panel will discuss how they will work together on policies and actions they need to take to enable the trillion-dollar space economy.

This virtual panel takes place online on Tuesday, October 20, from 11 to 11:45 am. Learn more.

Tuesday, October 20 — Carbon Footprint and Emissions Monitoring

Satellite data can give governments and industry the ability to monitor and reduce the carbon footprint. In this panel, experts will discuss the companies that operate and use satellite data to monitor, manage and profit from satellites that monitor the planet's carbon footprint.

  • Lou Zacharilla, director of Innovation Space & Satellite Professionals International (moderator)
  • Sebastien Biraud, staff scientist and Climate Sciences Department Head at Lawrence Berkeley National Laboratory
  • Steve Hamburg, chief scientist at the Environmental Defense Fund
  • Yotam Ariel, CEO of Bluefield Technologies
This virtual panel takes place online on Tuesday, October 20, from 1 to 1:45 pm. Learn more.

Thursday, October 22 — Keynote: Industry Applications

This general session features how Amazon Web Services helps terrestrial industries take advantage of space enabled services already in place at competitive pricing. Speaker Clint Crosier from Amazon Web Services and moderator Douglas Terrier, chief technology officer at NASA.

This virtual panel takes place online on Thursday, October 22, from 11 to 11:45 am. Learn more.

Monday, October 26 — Keynote: International Space Station

The new head of NASA's International Space Station program, Joel Montalbano, who is based in Houston's Johnson Space Center, provides a status of and exciting new industry applications for the ISS as well as insight into the future of ISS.

This virtual panel takes place online on Monday, October 26, from 11 to 11:45 am. Learn more.

Monday, October 26 — NASA Session: Transferring NASA Technology

NASA's treasure trove of technology is available to American industry and entrepreneurs to apply in profitable ways. In this session, NASA technology transfer leaders — Daniel Lockney, Kimberly Minafra, and Krista Jensen — will discuss the many ways the private sector can tap into the accumulated knowledge NASA has to share.

This virtual panel takes place online on Monday, October 26, from 12 to 12:45 pm. Learn more.

Tuesday, October 27 — Space Tourism: The Excitement and Expectations

A panel of industry experts will discuss the space tourism industry, taking a deep dive into what the future holds, constraints for the industry's ability to address the market for many years to come and how some of these projects will be executed from a business, technology and execution perspective.

  • Amir Blachman, chief business officer of Houston-based Axiom Space
  • Jane Poynter, founder and co-CEO of Space Perspective
  • Sudhir Pai, CEO of Autonomous Energy Ventures
  • Richard Garriott, private astronaut (moderator)

This virtual panel takes place online on Tuesday, October 27, from 12 to 12:45 pm. Learn more.

Tuesday, October 27 — Spaceports as the Innovation Hub for Regions

Spaceports around the world can, and in many cases are, serving as regional innovation centers for high tech activities and creating positive economic development opportunities. Speakers Cherie Matthew, project manager at Corgan, and Pam Underwood, director at the FAA Office of Spaceports, review what the future looks like for spaceports and what funding will be necessary with moderator George Nield, president of Commercial Space Technologies LLC.

This virtual panel takes place online on Tuesday, October 27, from 1 to 1:45 pm. Learn more.

Wednesday, October 28 — NASA Session: Industries of the Future

NASA technology is creating the underpinning for new industries of the future. NASA's work has already changed the world with advances in telecom and microprocessors. More is yet to come. This panel led by Douglas Terrier, NASA chief technologist will explore the industries on the horizon that will stem from NASA innovation.

This virtual panel takes place online on Wednesday, October 28, from 12 to 12:45 pm. Learn more.

Thursday, October 29 — Keynote: Women of Space

NASA's head of human exploration, Kathy Lueders, based in Houston's Johnson Space Center, discusses the crucial role that women have, are, and will continue to provide in getting America back to the Moon, as well as in creating the trillion-dollar commercial space economy with moderator Vanessa Wyche, deputy director at JSC.

This virtual panel takes place online on Thursday, October 29, from 11 to 11:45 am. Learn more.

Thursday, October 29 — Zoom to the Moon

An international panel discussion with Orion Program Managers about progress toward launching NASA's first human-rated spacecraft to travel around the Moon since 1972.

  • Catherine Koerner, NASA Orion Program Manager NASA at JSC
  • Didier Radola, head of ORION ESM Programme Airbus
  • Nico Dettman, Lunar Exploration Group Leader for Lunar Exploration Development Projects European Space Agency
  • Tony Antonelli, Artemis II mission director Lockheed Martin

This virtual panel takes place online on Thursday, October 29, from 1 to 1:45 pm. Learn more.

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