Data diversifying

Houston data startup plans to expand its technology from oil and gas to include health care and defense industries

Houston-based Pandata Tech uses its machine learning technology to advance oil and gas operations. Thomas Miller/Breitling Energy

There are about 40,000 sensors on an offshore drilling rig, and each collects information about how the rig's many machines are operating. But sensors can fail or be miscalibrated and, in the relay between the rig and data scientists, data can pick up errors. The scientists will first have to clean and validate the information to ensure its credible.

That's where Pandata Tech comes in. The Houston-based company can run a data quality check for its oil and gas clients. But Gustavo Sanchez, co-founder and CEO of the company, is speeding up that process by automating it. Pandata Tech uses machine learning to review data generated by drilling rigs — and the algorithms determine how likely that data can be trusted. And for Houston's 175,000 residents employed in oil and gas, that data needs to be trustworthy.

"If the data's bad, then you're going to have a lot of bad decisions," Sanchez says.

The legacy of machine learning began in the 1950s, when computer scientist Arthur Samuel wrote a program for a computer to play checkers and improve at the game the more it played. Since then, the complex algorithms written for computers to learn and develop without human intervention have been implemented in industries like finance, sales, surveillance, and more.

Sanchez and his business partner, Jessica Reitmeier, met in China during graduate school. They founded the company after a stint for Sanchez in finance data science. He realized that small service companies had no control over their equipment operated and put data analytics in the hands of small, independent service contractors. So they developed Pandata Tech in January 2016, and today their core team has three people who manage data science, marketing and operations, and staff development.

Pandata Tech's software reduces the amount of time data scientists have to spend validating their data — from 80 percent of their time down to just 20 percent, Sanchez says. It works by using models to generate a data quality score.

For example, a sensor that monitors pressure levels is paired with a computer model of what those levels should be — and the software checks for missing or incorrect data, then uses statistics to determine how likely that the sensors are picking up correct data. It creates a quality score for that data between 0 and 100 in the short and long term; if it compiles the data for a 24-hour window, then the score should be close to 100, but the software can also analyze data for 90-day streaks. In this case, the ideal might be above 60. It's a lot like a credit check, Sanchez says.

And while Pandata Tech began in the energy industry, the team is now expanding to fields like defense and healthcare, which also generate hundreds of thousands of data points that need it be checked. The unique challenges of working with large drilling rigs have translated well to working with aircrafts. And the healthcare field is similar — with the Texas Medical Center, Houston's medical research centers can benefit from hastening the process of data validation.

"There's so much data, and it's so noisy, that it's hard to know whether the data can be trusted or not," Sanchez says.

Pandata Tech is focusing on its current revenue sources in these three fields. Recently, they closed on a deal with one of the largest offshore drilling companies in the world, and Sanchez hopes to double his team size within the year. But he's staying cautious — and the move to healthcare and defense industries is not just a move to expand the use of his company's technology. It's also a way of reducing risk, by not investing in just one industry.

"It's hard to sell scale to a startup," Sanchez says. "We've gotta reduce our risk so we can continue to grow."

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Building Houston

 
 

"There's something magical happening in Houston, and [VCs] want a piece of it." Photo via Getty Images

Houston's seen a growth in startup and venture investment — even amid the pandemic — and a group of Houston innovators sat down for a virtual event to discuss what's lead to this evolution.

The Greater Houston Partnership hosted an installment of its Houston Industry Series focused on Digital Tech on Thursday, September 24. The panel of experts, moderated by Krisha Tracy of Google Cloud, discussed how they've observed the paradigm shift that's occurred in Houston over the past few years — and why.

Missed the discussion? Here are some significant overheard moments from the virtual event.

“I think there really is an interest for venture capital here, both locally and also welcoming it from outside of Houston. … There’s something magical happening in Houston, and [VCs] want a piece of it. I think that magical piece is a renewed interest in collaborating.”

Stephanie Campbell, managing director of Houston Angel Network and co-founder of The Artemis Fund. "I think a lot [of this progress] is due to the GHP, Houston Exponential, and the founding of the HX Venture Fund to bring those venture funds to Houston to say, 'what's happening here?'" Campbell adds, saying that this connectivity and collaboration that's happening in Houston VC is unique.

“I think there’s a misconception around all we do is oil and gas and life science in Houston, but when you think about what VC-backable companies look like, they’re tech, they’re B2B SaaS, they’re highly scalable, and they don’t tend to be capital-intensive types of things we see corporate venture backing.”

Campbell says, adding "the connectivity and the interest in VC is really taking off. It's an exciting time to be in Houston and Texas in general."

“Plug and Play’s ventures team is based in Silicon Valley and one thing they enjoy about meeting Houston-based founders is valuations tend to be more reasonable than in the Bay Area."

Payal Patel, director of Plug and Play Tech Center in Houston. "There are gems to be found," she adds.

“I don’t know what it is — if it’s something in the water or just Texans being very friendly, but the investors here share deal flow. It takes a village, and I think we all understand a rising tide lifts all boats."

Patel says on the collaborative nature of Houston. "It's really magical."

“What you’re witnessing is a city that has been waiting for industrial innovation to reach the point where it can be adopted at a really high scale, and that happened around 2017.”

Jon Nordby, managing director at MassChallenge Texas in Houston. Nordby adds that MassChallenge in Houston hasn't been keen on consumer tech, or the "grilled cheese delivery apps," as he describes. "We like companies that are in love with problems, not so much in love with solutions. … We build really meaningful tech."

“Over the last year or two, we’ve seen that sleeping giant get awoken. Open and external innovation is newly adopted by more legacy industries where it wasn’t before — and that’s just created a mountain of opportunities for startups and investors alike.”

Nordby says on the shift toward this meaningful, problem-solving technology, which Houston is full of, as he observes.

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