Houston software startup pivots to provide digital networking solutions

What started as a way to protect your company from a sketchy business partner has turned into a digital networking tool. Getty Images

Several years ago, David Grimes had a business partner who played dirty. It wasn't until the trial that followed the business wrongdoing that Grimes discovered the man had a history of cheating companies out of money. Grimes envisioned a software service that used public information to research potential investors or associates before signing on the dotted line of a partnership.

"I wanted to find a tool that would alleviate that pain and that risk of doing business," Grimes says. "I couldn't find that tool."

When Grimes met private investigator, Daniel Weiss, at a Christmas party, he picked his brain about this idea of vetting business partners or investors. Turns out, that's exactly what Weiss did already. Together, the two co-founded Houston-based Snap Diligence, a software-as-a-service company that uses its custom algorithm to digitally investigate these potential associates.

The technology would data mine various public information avenues, such as Secretary of State documentation of business owners, managers, and directors, state district court records, and insurance records. It would look at all filings and legal cases of both the person and all the companies they have been associated with. It would even look at that person's contacts and see who you have in common and who you don't know about.

Unintended technology
Now that the tool the Grimes wanted finally existed, and Snap Diligence went into beta in April of 2017. The team reached out to all ages and industries to use the software. In January of 2018, they reconvened and looked at who was using the tool and how they were using it.

"They were mostly people in their 30s," Grimes says. "I didn't think they would have enough experience with risk to appreciate the tool. But what they were using it to connect to new opportunities."

Snap Diligence allowed the users to access new business connections and potential clients based on their already established networks.

"It's not LinkedIn where you sat next to your connection four years ago at a breakfast club," Grimes says. "This is information on people who are actually involved in a business together."

A banker approached Grimes and asked him to datamine all his clients to see all the potential business he could have by finding other companies a client is involved in but that doesn't yet use the bank for.

So, with this new tool, Snap Diligence pivoted about 3 to 4 months ago and now looks at first and second degree of existing relationships for the purpose of targeting new business clients.

"We started running this customer analysis work — and we had to rework our algorithm some — to spit out this batch mining process for customers and how you expand an existing customer relationship into a new opportunity," Grimes says.

The tool has been most popular with commercial insurance and commercial banking, Grimes says. Private equity has been a big player too, although it's not as big as a proponent since they have smaller client bases.

Growth plans on the horizon
The company has a few major clients coming in, Grimes says, and also expects to be able to mine third degree connections soon too. Snap Diligence operates in several states, but as more information is able to be pulled in, the tool will soon grow to more markets.

"SEC data is something we want to add fairly quickly, as well as real estate data," Grimes says. "The key is just importing more and more data that can further fill in the picture of someone's footprint."

With growth on the mind, Grimes recognizes that Houston has with venture and talent. Both are aspects the local innovation community has but needs more of.

"We have plenty of talent here in Houston, but it's harder to find the talent that doesn't mind going into a startup with the risk that comes with it," Grimes says. "Finding the right talent is difficult."

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Building Houston

 
 

This week's roundup of Houston innovators includes Kerri Smith of the Rice Alliance, Trevor Best of Syzygy Plasmonics, and Muriel Foster of gBETA Houston. Courtesy photos

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from cleantech to startup acceleration — recently making headlines in Houston innovation.


Kerri Smith, managing director of the Rice Alliance's Clean Energy Accelerator

Kerri Smith of the Rice Alliance joins the Houston Innovators Podcast to discuss Rice's Clean Energy Accelerator. Photo courtesy of Rice

As the managing director for the Rice Alliance for Entrepreneurship and Technology's Clean Energy Accelerator, Kerri Smith is focused not only on the program's cohorts but on supporting the Houston cleantech ecosystem as a whole. CEA works with Greentown Houston, which is just next door to the program's home at The Ion, and the Greater Houston Partnership's Houston Energy Transition Initiative.

"Rice Alliance has a strong history of demonstrating collaboration with a number of organizations," Smith says. "I think one of the primary benefits that we have in these collaborative opportunities is to ensure that we are collectively building a capable and diverse pipeline of talent to solve for these problems and provide them with access to experiencing all of the benefits of our ecosystem."

Smith shares more about what she's looking for in the second cohort of CEA on a recent Houston Innovators Podcast episode, as well as what she sees as Houston's role in the energy transition. Click here to read more and stream the episode.

Trevor Best, co-founder and CEO of Syzygy Plasmonics

Trevor Best, CEO of Syzygy Plasmonics, joins the Houston Innovators Podcast to discuss the growth of his cleantech startup. Photo courtesy of Syzygy

Trevor Best is gearing up to fundraise for and scale his cleantech startup, Syzygy Plasmonics. The company has also grown its team to 60 people and is preparing to move into a new 45,000-square-foot manufacturing facility in Pearland this summer.

"What we're seeing is the market's appetite for our kind of technology — deep tech for decarbonization in energy and chemicals — is really high. If we want to meet global demand for our product, we need to get ready to scale," Best says on the Houston Innovators Podcast.

Best is keeping a close eye what the market will be looking for, and the interest seems to be in hydrogen as a clean energy solution, which has positioned Syzygy in a great place. Click here to read more and stream the episode.

Muriel Foster, director of gBETA Houston

Muriel Foster, a native Houstonian, is the new director of gBETA Houston. Image via LinkedIn

A national startup accelerator has announced its fifth local cohort, which includes five Houston companies participating in the spring 2022 class, and the new leader that will oversee the program. Muriel Foster is the newly named director of gBETA Houston, which is designed to help guide early-stage startups find early customer traction, connect with mentors, and more.

“The five companies selected for the Spring 2022 cohort tackle unique problems that have propelled them to create a business that solves the issues they once faced," Foster says in a news release. "From public speaking, apparel comfort, and food delivery from underrepresented restaurant owners, these founders have found their niche and are ready to continue to make an enormous impact on the Houston ecosystem."

A Houston native, she has her master’s in public administration from Texas Southern University and a bachelor’s in marketing from Oklahoma State University. Her background includes work in the nonprofit sector and international business consulting in Cape Town, South Africa, and she's worked within programming at organizations such as MassChallenge, BLCK VC, and now gener8tor. Click here to read more.

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