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Houston energy tech startup raises $11M to grow its team locally

Houston-based Datagration Solutions Inc. has raised millions in its latest round — led partially by a local VC firm — to grow its local presence. Photo via Datagration Solutions/Facebook

An $11 million round of funding will fuel national and international growth at Houston-based Datagration Solutions Inc., whose cloud-based software aggregates data to improve workflows and analytics at upstream oil and gas operators.

Houston-based venture capital firm Quantum Energy Partners LLC and New York City-based venture capital firm Global Reserve Group LLC led the round. Datagration represents the sixth investment in energy tech involving the duo of Quantum Energy Partners and Global Reserve Group.

Braxton Huggins, chief marketing officer at Datagration, says the new capital will enable the company to build a technology team in Houston; add to its operations, sales, and marketing team in Houston; and supplement its development team in Austria. These new hires will help Datagration expand its national and international market presence, he says.

Huggins says Datagration aims to more than double in size by the end of 2021. The startup currently employs more than 30 people.

Datagration, formerly known as Oilsphere Inc., is a relative newcomer in the oil and gas industry. In May, Datagration acquired Austria-based Myr:Conn Solutions GmbH, which had operated the PetroVisor platform since 2010.

The PetroVisor platform lets customers pull data from legacy systems to streamline processes, keep operating costs and capital expenses in line, and improve workforce efficiency, Huggins says. All of those outcomes are "precisely what is required, given today's low and volatile commodity price environment," he says.

"PetroVisor has already delivered game-changing financial results for many E&P companies and is ready to scale globally," Peter Bernard, executive chairman of Datagration, says in a release. "The platform increases returns [from] legacy brownfield and greenfield reservoirs, and gives engineers more time to make engineering decisions that will improve profitability."

Nine days after Datagration announced the $11 million in funding, the company formally unveiled its executive management team. Aside from Bernard and Huggins, team members are:

  • J. Ike Epley, vice chairman.
  • Jorge Machnizh, president and CEO.
  • Michael Stundner, executive vice president of technology.
  • Dale Sperrazza, chief commercial officer.
  • Kenton Gray, chief technology officer.
  • David Freer, chief financial officer.
  • Carol Piovesan, senior vice president.
  • Tom Jordan, vice president of corporate development.
  • Lars Olrik, vice president of sales.

"Datagration strongly believes that the next industry opportunity is to provide a platform ecosystem that enables open integration and agnostic access to the most valuable company asset, the customer's data," Machnizh says in a letter posted on the company's website.

Market research and advisory firm Mordor Intelligence LLC says price volatility and stepped-up competition in the oil and gas industry are driving the use of big data to make "smart decisions." As a result, the firm says, big data in oil and gas is expected to see "exponential growth" from 2020 to 2025. A paper published in 2018 in the journal Petroleum identified big data analytics as an "emerging trend" for exploration, drilling, reservoir engineering, and production engineering in the upstream sector.

Darryl Willis, global vice president for energy at Microsoft Corp., said at a conference last year in Norway that the industry should brace for a "tsunami" of big data. "Data is the new common denominator that every industry, including the oil and gas business, is grappling with," Willis said.

Ravindra Puranik, oil and gas analyst at data analytics and consulting company GlobalData PLC, says concerns over the decline of profits and the rise of renewable energy are propelling incremental growth of big data in oil and gas.

"The oil and gas industry has always generated huge volumes of data daily across the value chain. However, despite being awash with money, it has been poor at data management," Puranik says. "It is only when profits drop that the industry starts to investigate how to use data to improve operational efficiency. However, this laissez-faire approach is less prevalent now."

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Building Houston

 
 

Vanessa Wyche, director of the Johnson Space Center, gave the keynote address at this year's State of Space event. Screenshot via houston.org

Is the Space City poised to continue its reign as an innovative hub for space exploration? All signs point to yes, according to a group of experts.

The Greater Houston Partnership hosted its annual State of Space this week. The virtual event featured a keynote address from Vanessa Wyche, director of NASA Johnson Space Center, and a panel moderated by David Alexander, chair of aerospace and aviation committee at the GHP and the director of the Rice Space Institute.

The conversations focused on the space innovation activity happening in Houston, as well as an update on the industry as a whole has space commercialization continues to develop. All the speakers addressed how Houston has what it takes to remain a hub for the sector.

"The future looks very bright for Houston that we will remain a leader in Houston spaceflight," Wyche says in her address.

Here are a few other memorable moments from the event.

"Houston, I feel, is poised to be a leader. We have led in human space flight, and we will a leader in commercialization."

— Wyche says in her keynote address, which gave a thorough overview of what all NASA is working on at JSC. She calls out specifically how startups are a driving force in commercialization. JSC is working with local accelerator programs at The Ion and MassChallenge.

"These startups help us to connect to tomorrow's space innovation leaders, and gives our team the opportunity to mentor these entrepreneurs as we work to advance both our scientific and technical knowledge," she says.

"The ability to have a place where government, academia, and industry can come together and share ideas and innovation is incredibly powerful."

​— Steve Altemus, president and CEO of Intuitive Machines LLC, specifically talking about the Houston Spaceport, where Intuitive Machines has signed on as a tenant. Altemus adds that a major key to leading space commercialization is a trained workforce, which the spaceport is focused on cultivating.

"We shouldn't discount the character that Houston has from the standpoint as a great place to build a business."

— Tim Kopra, vice president of robotics and space at MDA Ltd., says, adding that Houston is a big city that feels like a small town. "We need to incentivize companies to come and stay," he says.

"Great cities — like great companies — understand that if you're still, you're probably moving backwards. ... I think Houston gets it in that regard."

— Todd May, senior vice president of science and space at KBR, says, adding that Houston realizes it needs to be on the offensive side to bring innovation to the game, positioning the city very well for the future.

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