New to town

European software company plans first U.S. office in Houston

Cognite is opening two offices in Texas. Getty Images

When considering entering the United States market, Francois Laborie, general manager of Cognite North Americas, of course considered some of the obvious cities for a regional headquarters.

"Initially, when we talked about the US, people assumed Silicon Valley or Boston, because we are a traditional software company," Laborie says. "But we really didn't consider too long because the customers we work with require a pretty deep understanding of industry."

The Norway-based company decided to bet on the energy capital of the world and has announced future offices in Houston as well as Austin — both to open by this summer. This will be Cognite's first expansion outside of Northern Europe. The company makes data software for industrial businesses — oil and gas being a huge focus, as is engineering, equipment manufacturing, shipping, and more.

"The industrial world is very siloed and closed, and we are changing a lot of things in that world," Laborie says. "In the digital world, data and information only becomes valuable as you share it. We are all about liberating data, contextualizing it, and then drawing value out of it."

Laborie says the Houston office will be the company's energy hub — both current and prospective clients of Cognite have pressences in town. Meanwhile, Austin will be the tech hub, since the city has a large tech talent pool. Currently, Austin is on the path to be the U.S. headquarters, but nothing is set in stone at the moment, Laborie says.

Cognite, which expects around 50 employees (both new hires and relocations) split between the two locations, already has strategic Houston partnerships in place. Cognite will operate out of Station Houston and even has an internship program and partnership with Rice University. Overall, Laborie says the reception of the city has been positive.

"Houston went above and beyond," Laborie says. "The relationship with Rice has been very interesting because they are working closely with the Houston municipality to transform this image of Houston to get a stronger driver on innovation with the Innovation District, which spoke very loudly to us."

These partnerships are a crucial party of the company, Laborie says, and Cognite plans to work within Houston's innovation ecosystem to continue to push the envelope on innovative technologies.

"We have partnerships with large corporations, but we also see the importance to work with smaller companies to drive innovation — even if they aren't directly related," Laborie says.

Houston-based Tracts, which makes it easier for mineral buyers and E&P companies to find leads in the industry, is geared for major growth. Courtesy of Tracts

A Houston company has flipped the script on lead generation for mineral buying in the oil and gas industry. Tracts.co has developed a way to get its clients in front of mineral sellers they otherwise wouldn't know to approach.

"Right now, mineral buyers have one major bottleneck — it's consistent across companies except those using Tracts — and it's lead generation," says Ashley Gilmore, CEO and co-founder of the company.

Traditionally, mineral buyers or E&P companies would have to go through public records to source leads. But Tracts' customers have access to the company's title management platform, which uses a patented computation engine and an interpretation library. The process reduces the cost and time spent generating leads, as well as the risk associated with mineral ownership and exploration and production companies and mineral buyers, Gilmore says.

The company has been around since 2014, and began hitting its stride last year after beta testing and working out the structure of the technology. Now, the more customers Tracts has, the more data the system has, which translates to a more valuable platform.

"For some of our clients, Tracts is now existential for their business," Gilmore says. "In other words, they wouldn't be able to operate on their current business model without Tracts."

It's not only customer growth the company has seen. Tracts launched a land solutions group called TLS — Tracts Land Solutions — in the beginning of the year. That group is growing by a dollar amount of 30 percent month over month since January. Tracts also opened a Dallas office, which focused on this land solutions team, to keep up with clients.

"There were two people in Dallas working from home in January," Gilmore says. "Last month, we moved into a 12-person office, and now we've already outgrown it."

Tracts has a 16-person office it'll be moving into, and Gilmore says he expects to double that in the next month or so. Tract's Houston headquarters is around 10 people, and the company has its development team in Seattle. The technology, Gilmore adds, is able to be used throughout the country since it's cloud based.

All this growth is translating into some interesting developments for Tracts, but Gilmore isn't ready yet to announce anything.

"I think our clients are going to be very happy within the next three to six months," Gilmore says.

Tracts allows its clients to skip a few steps in the mineral buying process. Courtesy of Tracts