Grand exit

Houston startup exits to Bay Area private equity firm

Houston-based LiquidFrameworks has been acquired by San Francisco-based Luminate Capital. Pexels

A Houston startup has entered a deal with a San Francisco-based private equity firm, the companies announced on January 10. LiquidFrameworks, which provides cloud-based, mobile field operations management solutions to oil and gas, environmental, and industrial service companies, is now operating under Luminate Capital following the acquisition.

While not all the terms of the deal have been disclosed, Chip Davis, managing partner at Houston Ventures, says the transaction exceeded $50 million of PE investment from Luminate Capital. HV has been involved with LiquidFrameworks since 2012 and has invested a cumulative $6 million, Davis says, and brought in the company's current CEO and head of sales — both of who are still a part of the company's team.

"When we got involved, it was a very small company," says Davis. "As of today, it has enterprise customers of some of the largest oilfield services companies in the world."

According to the release, Hollie Haynes, Mark Pierce, and Sanjay Palakshappa from Luminate have joined the LiquidFrameworks board of directors. The PE fund's investment is a part of the recently closed $425 million Fund II.

"For over a decade, we have served field services companies by reducing revenue leakage, shortening cash collection cycles, and increasing overall operational efficiencies. We have streamlined the day-to-day operations for field services professionals and increased transparency across organizations by transforming previously paper- or excel-based workflows," says Travis Parigi, founder and COO of LiquidFrameworks, in the release.

"With a partner like Luminate Capital, we will continue to invest and develop product capabilities to better serve field services industries that have previously been overlooked by software innovation."

One of LiquidFrameworks' tools is FieldFX, which enhances companies' data accuracy and accelerates revenue capture and cash flow.

Finding a new, larger office space is part of the startup growth process. Getty Images

There are a number of ways to measure the stage of growth a company is enjoying: funding, headcount, acquisitions, exit strategy, and more. But one telling indicator that often goes overlooked is the office space they call home.

In the early days of a startup, working out of someone's garage or at a nearby coffee shop, you dream of moving into a coworking space Such a transition can mean a financial squeeze for some, especially when your prior solution was free. But paying for a space can mark a milestone — it signifies that you've made it to the next chapter. Houston has a number of great options for the many local early-stage startups undertaking this type of move.

Over time, though, as your company continues to grow, this solution may begin to cause strain. There's a big difference between a team of six sharing a room in a WeWork, and a team that's reached double-digits having to manage within a space that it has outgrown. Even external amenities like meeting rooms can become insufficient — as your team evolves, more meetings will be necessary, and the standards and needs at play will shift.

Finding your own private office space in Houston is not a challenge; it requires, however, acknowledging that the time has come to take this next step. Signals that it's time to move out and get your own space typically surface in two ways:

  1. What used to feel like an intimate setting has turned into an untenable situation. People are spending too much time talking about the coworking space and its limits.
  2. And, on the flip side, branding your company identity becomes a topic on your radar. If you find a great software engineer interested in joining your team, they might have some reservations about coming aboard with you if they discover you're sitting in a coworking space rather than your own space.

At SquareFoot, the commercial real estate company I founded in Houston in 2011, I have given special attention to companies looking for their first office space. It can be daunting at first, but our brokers know better than anyone how to be trusted advisors for small business owners searching for their first locations.

The most important question at this stage, we've found, is not which neighborhood they'd like to be in, what their budget is, or what amenities they want. Rather, it's a common growth question: Where do you see yourself in three to five years? By asking this question of CEOs in initial conversations, we can get a better idea of what type of growth they project, and how we can most efficiently find them the right space to accommodate their current needs and future goals.

We see office space as more than segments of larger office buildings. These spaces mean a great deal to the companies that inhabit them. It's our responsibility to fit the right team into the right space, and to advocate and negotiate on their behalf.

------

SquareFoot Founder and CEO Jonathan Wasserstrum, who hails from Houston, has worked for over a decade in commercial real estate. Outside of work, Jonathan is interested in the three Bs — bourbon, buffalo wings, and brass bands.