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5 Houston companies using blockchain to unlock new opportunities across industries

These five Houston startups are linking up industries and blockchain technology. Getty Images

Blockchain has really started to come into its own as more and more companies are applying the technology across industries — from oil and gas analytics and fundraising to even social media marketing.

Five Houston companies have made their mark on these different industries by incorporating this burgeoning technology.

Data Gumbo

Andrew Bruce had the idea for Data Gumbo when he realized how difficult it was to share data in upstream oil and gas. Courtesy of Data Gumbo

As the blockchain-as-a-service company's name suggests, Houston-based Data Gumbo is all about the data.

"The whole idea is to build out the blockchain network, and provide a network that they can subscribe to and start doing business on that network," Andrew Bruce, CEO of Data Gumbo, says. "It's a service, so there's a subscription fee. It gives them access to the savings they already have available within their organizations."

The company, which focuses on providing midstream and upstream oil and gas companies with timely decision-making information, was launched in 2016 and faced a big learning curve in the industry.

"We got a lot of questions and concerns about what blockchain is, why they need it, and whether or not they can trust it," Bruce says. "We were introducing a completely new concept to a conservative industry."

The industry is coming around as Data Gumbo grows its network and proves results.

Social Chains

Big companies are using your data to make a profit — but what if you got a kickback of that cash? That's what Houston-based Social Chains is trying to do. Pexels

When it comes to social media marketing, Houston-based Social Chains is putting the power back into the hands of users. Big social media companies, like Facebook, sell data about you to marketers and advertisers, and there's nothing you can do about it. Social Chains is a new platform where users own their own data and receive a cut of the payment.

"On our platform, the user is a stakeholder. Our platform distributes 50 percent of the profits to the users," Srini Katta, founder and CEO of the company, says.

Social Chains already has 5,000 users and, Katta says, that's with little to no marketing efforts. Currently, he's been working out a few kinks before launching into marketing for the platform, though he expects to do that beginning next month. Most of Social Chain's current users are high school to college students, so that will be the primary demographic for the marketing strategy.

Topl

Houston-based Topl can track almost anything using its blockchain technology. Courtesy of Topl

Blockchain, when applied to consumer products, can be used to complete the full picture of that product. A chocolate bar, for instance, can be traced from cacao farm to grocery store. Not only does the connected information keep each party accountable when it comes to prices, it tells a story.

"We are a generation that wants a story," says Kim Raath, CFO of Topl. "We want an origin, and don't want to be fooled. And, because you might be able to reduce the cost by having this transparency, you might be able to bring down the cost on both sides."

Topl, a Houston-based startup that was created by a few Rice University graduate and doctorate students, uses blockchain to connect the dots. One of the ways Topl's technology is being used is to track money. If an investor gives to a fund, and the fund gives to a startup, there's nothing to connect that first investor to the startup's success or to measure its impact. This is a tool used by investors or donors alike. For instance, if you were to create a scholarship, you can use Topl to track what student received that money and if they are meeting the required metrics for success.

Topl's 2019 focus is on growing its network and what it's able to provide its clients, like an app factory for companies trying to track specific things.

Iownit.us

The stock market has been using tech for years — why shouldn't the private sector have the same convenience? Getty Images

To Rashad Kurbanov, the private investment world was extremely backwards. While the stock market had been digitizing investment for years, private funds had a drawn out process of emails and meetings before moves were made. He thought introducing technology into the process could help simplify the investing for both sides of the equation.

"What we do, and where technology helps us, is we can take the entire process of receiving interest from investors, signing the transactions, issuing the subscription agreements, and processing the payments and put that all online," says Kurbanov, CEO and co-founder of Houston-based iownit.us.

The company is still seeking regulatory approval, but once that happens, the technology and platform will be ready to launch. The platform is a digital site that connects investors to companies seeking money. The investors can review the companies and contribute all online while being encrypted and protected by blockchain.

Houston Blockchain Alliance

blockchain

Here are some of the most common, misunderstood aspects about blockchain technology. Getty Images

The Houston Blockchain Alliance is a newly formed networking group for anyone working within or interested in the blockchain industry. Mahesh Sashital, co-founder of Smarterum, a blockchain news site, founded the organization late last year after realizing Houston was in need of an informative networking group.

"I thought that I'd start the Houston Blockchain Alliance so that someone like me, who's already in the industry, can find other people working in the industry," he says. "And for other people interested in blockchain can learn more and get up to speed with the technology."

The alliance aims to host regular events — its launch event is Feb. 20 — and educate people on blockchain. Click here to read Sashital's guest column about common blockchain misunderstandings.


METRO launches a driver-less route, Houston biotech company raises millions, and more quick innovation news. Courtesy of METRO

So much Houston innovation news — so little time. In order to help keep in touch with all the news happening among startups and technology in Houston, we're hitting the highlights in this innovation news roundup.

If you know of innovation-focused news happening, email me at natalie@innovationmap.com with the details and subscribe to our daily newsletter that sends fresh stories straight to your inboxes every morning.


METRO launches a self-driving shuttle on Texas Southern University's campus

Courtesy of Metro

The first autonomous shuttle in Houston recently had its maiden voyage on Texas Southern University's campus. The route is a one-mile stretch that is called the "Tiger Walk.' The EasyMile shuttle can transport 12 passengers and is operated by First Transit. The project is a pilot program for METRO to see if it has successful applications in other public transportation efforts.

"When passengers board this all electric vehicle they will be riding into the future and experiencing a mode of transportation that in just a few years may become commonplace," says METRO Chair Carrin Patman in a release.

The first phase of the pilot kicked off June 5, as reported in a previous InnovationMap article.

After being deemed a hot tech company by Crunchbase, Data Gumbo grows its C-suite

Courtesy of Data Gumbo

In June, Data Gumbo was named among Crunchbase's top 50 hottest tech companies. The list looked for growing tech startups that have raised between $5 million and $20 million, with a recent round closing in the past six months. The Houston-based company closed its most recent round of $6 million in the spring.

Following the round completion, Data Gumbo's CEO, Andrew Bruce, noted the funds were intended to further develop the company's technology and grow the team. As of last week, Bruce made good on the promise and announced the company's new chief commercial officer, Sergio A. Tuberquia.

"As our new capital is being used to expand our commercial blockchain network, we are also expanding our internal teams to support our rapid global growth," says Bruce in a news release. "With Sergio joining to lead revenue efforts, this will further our company's mission to help oil and gas companies — and ultimately all industries -—realize greater efficiencies and cost savings in the supply chain. Sergio's mix of startup technology and oil and gas industry experience will greatly benefit Data Gumbo and its customers as the industry moves into digital oilfield solutions like blockchain."

Biotech company extends its Series D round to $43 million

Getty Images

Following a $20 million commitment from Sanford Health, Houston-based InGeneron Inc. has extended its Series D round to $43 million. The funds will go toward further developing the company's regenerative medicine and cell therapy. InGeneron currently has a clinical study for rotator cuff recovery.

The investment by South Dakota-based Sanford Health was announced in March, and last month, InGeneron made the call to expand the series.

"Sanford Health's continued support helps advance InGeneron's regenerative cell therapy into the expansive pivotal trial phase, a significant step toward bringing our therapy into the clinic," says Angelo Moesslang, CEO of InGeneron, in a release. "This is an exciting time for the company, as one of the largest health systems in the United States further affirms the potential of adipose-derived regenerative cell therapy, while we diligently work to make it available to patients."

Rice Business Plan winner to ring the Nasdaq bell

Courtesy of Rice University

The company that won the top prize at the Rice Business Plan Competition and walked away with almost $700,000 is claiming another one of its prizes. Vita Inclinata Technologies will ring the opening bell at Nasdaq on July 3.

The company, which created a technology to advance helicopter safety, will be represented by its CEO, Caleb Carr, and Brad Burke, managing director of the Rice Alliance for Technology and Entrepreneurship, and Will Roper, the U.S. Air Force's assistant secretary for acquisition, will also attend. The livestream footage is available online, beginning at 8:30 am central.

Mercury Fund raising money

Texas Money

Getty Images

Crunchbase broke the news that Houston-based Mercury Fund has secured $82 million of its fourth fund, Mercury Fund Ventures IV, that will total $125 million, per a regulatory filing that PE Hub reported on. Mercury Fund refused to comment on the ongoing raise, but intends to release more information following the close, a representative confirmed to InnovationMap.

According to Crunchbase's proprietary data, it's the largest fund to date for the firm. The most recent fund closed in 2014 at $105 million. Mercury Fund specializes in SaaS, cloud, and data science technology, according to its website.

Rice University and Baylor College of Medicine researcher recognized

Courtesy of Rice University

Olga Dudchenko, a genomics researcher at Rice University and Baylor College of Medicine, been named to MIT Technology Review magazine's 2019 list of 35 Innovators Under 35.

Dudchenko, who is completing her postdoctoral fellowship at Rice's Center for Theoretical Biological Physics, has developed a method to sequence and assemble the genome of any organism for less than $1,000. Her process is comparable the that of the Human Genome Project, which cost $3 billion.