Power Player

Electricity startup puts its Houston customers on the grid

Griddy, lead by CEO Greg Craig, is making a surge in Texas by disrupting the state's outdated electricity plan. Courtesy of Griddy

In 2015, Greg Craig looked into Texas' wholesale energy industry and a light bulb went on over his head. He realized that the way consumers were delivered power was opaque and misleading. The electricity industry is one of the few areas that the tech boom hasn't yet infiltrated. That is, until Griddy came along, launching in Houston in the spring of 2017.

"Technology has changed and bettered everything in life," says Craig, Griddy CEO and co-founder, who compares Griddy to likes of Amazon, Uber, and Costco. "Our thesis was, 'what if we could build a tech platform that would connect the home directly to the grid?'"

Instead of profiting off hidden fees and fixed prices, Griddy provides customers wholesale electricity prices and promises to be open, honest, and transparent. Rather than charging inflated rates, the company only makes a profit from the $9.99 monthly membership fees. Everything else is at cost — no margins, hidden fees, or break fees. This all translates to savings of up to 30 percent, says Craig, who co-founded Griddy with executive chairman, Nick Bain.

Electricity of the future
Griddy customers are connected directly to their smart meter which records electricity use and communicates this information to the home owner's electricity supplier

Customers can download and use the Griddy app and get a by-the-second update of the wholesale price so that they know when the price spikes and it's time to turn off unnecessary energy suckers. The app also offers 36-hour forecast to give consumers an idea of what the wholesale price will be at a specific time.

The mobile aspect of Griddy is a large draw as consumers increasingly use their phones and do everything online or in-app. From the transparent prices to the mobile app, Griddy's features have been well received by millennials, a generation drawn to companies that stand out and are committed to strong corporate values that put the customer first and offer low prices.

This month, Griddy launched a new app, Griddy Guest, that allows non-members a chance to test the benefits of Griddy before becoming a member. "We understand people may be a little cautious of switching to a new type of energy provider so we created Griddy Guest to allow people to access the perks and track their potential savings before completely switching over to becoming a Griddy member," says Craig.

Consumers can use the app for free, view the current wholesale price of electricity and projected prices using your zip code, and receive an estimate of savings from using Griddy in comparison to the average rate for their location, house type, and weather zone.

"We're trying to be disruptive and innovative and do things no one's ever done," Craig tells InnovationMap. "No one's ever done 'we'll tell you exactly what we make,' no one's ever done 'here's real time wholesale,' no one's ever provided mobile app information like this by the second, and now no one's ever done 'be our guest, be our guest, put our service to the test', and now we've done it."

What's next?
Griddy, which is only in Texas, is continuing to spread into deregulated markets with sights set on the East Coast in the first half of 2019, to be closely followed by an international move to the United Kingdom, Australia, and Japan. The company is also pursuing machine-learning artificial intelligence to handle optimal time for power use, a technology that would automatically adjust power use for consumers during price spikes. This type of feature would be connected directly to households, closely monitoring the price of electricity to save consumers even more money.

Overall, Griddy has made a large footprint with its launch in Texas and is currently in 39 different cities within the state. The company hopes to continue to turn consumers to wholesale electricity over traditional overpriced fixed energy plans to disrupt the industry and save individuals money.

Tracking usage

The Griddy app also allows customers to track their usage and clearly shows prices and rates.

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Building Houston

 
 

VR training startup, HTX Labs, has raised funding from an outside investor for the first time. Courtesy of HTX Labs

HTX Labs, a Houston-based company that designs extended reality training for military and business purposes, announced last week that it has raised its first outside capital.

The company has received a $3.2 million investment from Cypress Growth Capital. Founded in 2017, HTX Labs — developer of the EMPACT Immersive Learning Platform — has been granted funding from the Department of Defense as well as grown its client base of commercial Enterprises. The platform uses virtual and extended reality that "enables organizations to rapidly create, deploy, measure, and sustain cost-effective, secure, and centralized immersive training programs, all within engaging, fully interactive virtual environments," per a news release.

“We have been looking to secure outside capital to accelerate the growth of our EMPACT platform and customer base but we hadn’t found the right partner who provided an investment vehicle that matched our needs,“ says HTX Labs CEO Scott Schneider in the release. “We found everything we were looking for in Cypress Growth Capital. They have a non-dilutive funding model that aligns with our capital expectations and have the level of experience that really makes this smart money.

"Cypress has a decade-long track record of success in helping emerging software and services companies achieve scale," he continues. "It is clear that the team’s collective entrepreneurial and operating experience will be of tremendous benefit to us as we focus on expanding our customer base in a very intentional way.”

The fresh funding will go toward growing and scaling the company's operations — both within the current Department of Defense and expansion opportunities into key commercial markets, like heavy industry, manufacturing, and higher education. Additionally, the funding will support increased customer adoption.

“Scott and his team have built an exceptional business that is poised for dramatic growth,” says Cypress Partner Pat McCaffrey in the release. “HTX Labs’ modern, immersive training solution provides clients with a force multiplier for modernizing training and an unmatched ROI.”

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