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.

From M&A action to the development of Houston's innovation corridor, these are five Houston innovators to keep an eye on in 2020. Courtesy photos

For so many Houston innovators, 2020 will be a year of growth, execution, proof of concept, piloting, pivoting, fundraising, and more.

It's hard to narrow down the list of movers and shakers in Houston innovation, but a few have stood out for making waves in the new year. From M&A action to the development of Houston's innovation corridor, these are five Houston innovators to keep an eye on in 2020.

Rakesh Agrawal, founder and CEO of SnapStream

Photo courtesy of SnapStream

This past year has been good to SnapStream, but it's only the beginning of the company's next growth phase. The software company's technology allows its clients to easily record, search, and share video and broadcast content and has attracted clients from the likes of Saturday Night Live and Last Week Tonight.

In 2019, the company was named the transition partner for Volicon Observer, a company Verizon brought under its umbrella and then changed its mind about, Rakesh Agrawal, CEO of SnapStream, explains on an episode of the Houston Innovators Podcast. Volicon's specialty is in monitoring and compliance, and with that move, SnapStream brought on around 150 new clients. To maintain those clients and grow its services, SnapStream has rolled out a whole new department. The launch of SnapStream Monitoring and Compliance is the next step for SnapStream's takeover of Volicon, according to a news release.

The M&A activity sparked a move to hire and expand the SnapStream team as the division grows throughout 2020.

Allison Thacker, president of the Rice Management Company

Natalie Harms/InnovationMap

Houston has its eyes on The Ion, a 270,000-square-foot building innovation center being developed in the former Sears building in Midtown. Behind the project is the Rice Management Company, which is led by Allison Thacker, president of the organization.

The Ion broke ground in May, and also named its operations leader, Gabriella Rowe, CEO of Station Houston earlier this year. While the project isn't expected to deliver until 2021, next year will likely entail determining a few key things about The Ion and the surrounding innovation corridor Rice Management and the city will be developing.

The Houston Coalition for Equitable Development without Displacement, a newly formed organization, has recently expressed its concerns with the development of the property in the historic Third Ward. The community organization wants Rice Management and all parties involved with the innovation corridor to agree to a Community Benefits Agreement, which would protect local residents and provide positive initiatives for growth. The CBA is expected to be arranged in 2020 as the project moves forward.

Andrew Bruce, founder and CEO of Data Gumbo

Photo courtesy of Data Gumbo

Another Houston company that plans to grow throughout 2020 is Data Gumbo. The blockchain-as-a-service company has raised some significant funds — a $6 million series A round closed in May — and will be putting that money to work by expanding the company's footprint and services.

Earlier this year, the company announced its entrance into the construction industry — Andrew Bruce, CEO of Data Gumbo, says in a recent episode of the Houston Innovators Podcast that the funds will also take Data Gumbo to new global markets, including the Middle East.

"The whole thing for us is building this blockchain network of interconnected companies," Bruce says. "The more companies that are a part of that network, the more value that network has."

Payal Patel, director of corporate partnerships at Plug and Play Tech Center in Houston

Courtesy of Payal Patel

San Francisco-based Plug and Play Tech Center quickly established its new energy-focused Houston location — from announcing its entrance into the market in June to hiring its director of corporate partnerships, Payal Patel, in September. The first cohort of portfolio companies were named in October, and several new Houston partner corporations have been announced as well.

Next year, the local team is expected to grow and is currently hiring for a few positions, as well as announce its office space in town. Patel, specifically, will spearhead the initiatives to grow the organizations already impressive list of corporate partners.

"[Plug and Play ha] great Fortune 500 corporate partners, they work and know the best tech startups all over the world, and they have a strong investment capability," Patel previously told InnovationMap. "I'm excited that those resources and capabilities are coming to Houston."

Travis Parigi, CEO of LiquidFrameworks

Courtesy of LiquidFrameworks

Travis Parigi has always been the one to write the code for his company's software technology, but now, he's in acquisition mode thanks to new support from private equity. Last January, LiquidFrameworks entered into a partnership with private equity firm, Luminate Capital. The new financial partner has opened doors for Parigi, CEO of LiquidFrameworks, and the company as a whole — including putting merger and acquisition activity on the table.

The company has grown its team and even moved to a bigger space in Greenway Plaza. LiquidFrameworks, which has created a suite of software solutions for upstream and downstream oil and gas companies called FieldFX, is also working on key updates and new features for its software.