hands free

Houston drone company sees rising need for automation within the energy industry and beyond

In a post-COVID-19 world, it's time for drones and automation to shine. Photo courtesy of Airobotics

For years, Ran Krauss has watched the drone and automation industry be overhyped and misunderstood. But due to a myriad of causes — a global pandemic that's forced workers to stay home, a oil glut that's caused energy company layoffs, and years of work pushing through new regulation — it's finally time, Kauss believes, for drone technology to take-off.

Krauss has worked in the drone industry for years and, in 2014, co-founded Airobotics, a full-service drone company, with Meir Kliner. Between COVID-19 and an oversupply of oil, energy companies, which make up most of Airobotics clients, are seeing how important automation and drone technology is.

"Everyone watched Netflix before, but the pandemic increased demand," Krauss tells InnovationMap. "For us, our ability to provide remote monitoring applications was always something of value, but obviously in times like this when staff can't get into a site, there's more significance."

The COVID-19 crisis, Krauss explains, has perhaps sped up energy companies' plans to integrate this type of technology.

"One of the effects of the pandemic is reconsidering the timeline and deployment of robotics as a whole to deal with future threats like this," he says. "The world is going to think differently about automation, robotics, and drones."

Krauss saw an opportunity for drone technology within industrial business, but wanted to take it a step further with automation. That's how he came up with the idea for a drone in a box — an idea that became Airobotics. The company's technology operates as a one-stop shop for companies looking for drone and automation technology.

Airobotics's technology includes a docking station that even has a robotic arm to replace batteries in the drone. Photo courtesy of Airobotics

The Airobotics device comes complete with a docking station that even has an automated arm to replace batteries, for instance, so limited human interaction is needed. Airobotics works with its clients to customize data collection needs, and then manages the operations as a service provider.

"As an operator, we figured out that we needed to create an automated system — similar to an autonomous car — for safety, productivity, and cost effectiveness. That's why we started a robotics company," he says.

While Airobotics — which has clients worldwide — has offices in the United States, Israel, and Singapore, Texas is a focus for the company, Krauss says.

The company's technology has seen historic approval from regulators in each of the countries it operates in. Specifically, Krauss praises what the Federal Aviation Administration is doing to advance drone technology regulation, and the department recognizes Airobotics as subject matter experts.

"We're working very closely with the FAA, which has identified us as a partner to help them create the right environment for drones to be integrated into the airspace," Krauss says. "You can't ignore new technologies but just saying, 'OK, this thing [isn't allowed to] fly.' There has to be the right balance of public safety and encouraging new technologies to take place."

It's not only industry and regulatory support Airobotic has seen. The company has gone through quite a few funding rounds and raised over $110 million.

"Our investors have identified the situation and the market potential our company has over anybody else," Krauss says. "We're the trailblazers, which comes at a cost — it's much easier to follow than to lead. But, we're happy to do so."

Perhaps, one of the biggest challenges for the company and the industry is educating potential clients. The word "drone" is used to describe everything from a remote-controlled device with a camera on it that's just a few hundred dollars online to Airobotics's Optimus device, which is made up of thousands of parts.

"There is definitely a constant need for market education in this sector — always has been the case," Krauss says.

For Krauss, he's seen drone technology go through this "hype phase," and he sees a bright future for what drone and automation capabilities are coming.

"I think we're going to see a resurgence in this industry in the coming years — with applications in the real world with real value generation, not just hype and science fiction," he says.

One industry that's ripe for drone technology disruption — smart cities innovation. Krauss says he hopes Houston is a city that looks to utilize the tech.

"I think the digitization of the urban environment is going to be the next sector where we're going see drones create a lot of value," he says.

Airobotics has clients within the industrial sector. Photo courtesy of Airobotics

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Building Houston

 
 

Cheers Health has expanded its product line as it evolves as a wellness-focused brand. Photo courtesy of Cheers

Houston-based startup Cheers first got a wave of brand devotees after it was passed over by investors on Shark Tank in 2018. In the years since, Cheers secured an impressive investment, launched new products, and became a staple hangover cure for customers. When the COVID-19 pandemic disrupted businesses, the company rose to the occasion and experienced its first profitable year as drinking and wellness habits changed across America.

Cheers initially started its company under the name Thrive+ with a hangover-friendly pill that promised to minimize the not-so-fun side effects that come after a night out. The capsules support the liver by replacing lost vitamins, reduce GABAa rebound and lower the alcohol-induced acetaldehyde toxicity levels in the body. The company's legacy product complemented social calendars and nights on the town, providing next day relief.

With COVID-19 lockdowns and social distancing measures, the days of pub crawls and social events were numbered. Cheers founder Brooks Powell saw the massive behavior change in people consuming alcohol, and leaned into his vision of becoming more than just a hangover cure but an "alcohol-related health company," he says.

When the pandemic first hit, Powell and his team noticed an immediate dip in sales — a relatable story for businesses in the grips of COVID-19.

"There is a three day period where we went from having the best month in company history to the worst month in company history, over a 72 hour stretch," he remarks.

He soon called an emergency board meeting and rattled off worst-case "doomsday" scenarios, he says.

"Thankfully, we never had to do any of these strategies because, ultimately, the team was able to rally around the new positioning for the brand which was far more focused on alcohol-related health," he says.

"We found that a lot less people were getting hangovers during 2020, because generally when you binge drink, you tend to binge drink with other people," he explains.

He noticed that health became an important focus for people, some who began to drink less due to the lack of social gatherings. On the contrary, some consumers began to drink more to fill the idle time.

According to a JAMA Network report, there was a 54 percent increase in national sales of alcohol for the week stay-at-home orders began last March, as compared to the year prior.

"All of a sudden, you have all of these people who probably aren't binge drinking but they're just frequently consuming alcohol. Their drinks per week are shooting up, and they're worried about liver health," explains Powell.

Outside of day-after support, Cheers leaned into its long-term health products to help drinkers consume alcohol in a healthier way. Cheers Restore, a dissolvable powder consumers can mix into their water, rehydrates the body by optimizing sodium and glucose molecules.

For continued support, Cheers Protect is a daily supplement designed to increase glutathione — an antioxidant that plays a key role in liver detoxification — and support overall liver health. Cheers Protect, which was launched in 2019, became a focus for the company as they pivoted its brand strategy and marketing to accommodate consumer behavior.

"The Cheers brand is just trying to reflect the mission statement, which is bringing people together through promoting fun, responsible and health-conscious alcohol consumption," says Powell. "It fits with our vision statement, which is a world where everyone can enjoy alcohol throughout a long, healthy and happy lifetime,."

At the close of 2020, Cheers had generated $10.4 million in revenue and over $1.7m in profit — its first profitable year since launch.

During the brand's mission to stay afloat during the pandemic, the Cheers team was also laying the groundwork for its entry into the retail space. When Powell launched the company during his junior year at Princeton University, bringing Cheers to brick-and-mortar stores had always been a goal. He envisioned liquor and grocery stores where Cheers was sold next to alcohol as a complementary item. "It's like getting sunscreen before going to the beach, they kind of go hand in hand," he says.

"When we spoke with retailers, specifically bars and liquor stores, what we learned is that a lot of these places were hesitant to put pills near alcohol," he says. Wanting an attractive and accessible mode of alcohol-support, the Cheers team created the Cheers Restore beverage.

Utilizing the technology Cheers developed with Princeton University researchers, the Cheers Restore beverage incorporates the benefits of the pill in a liquid, sugar-free form. The company states that its in-vivo study found that the drink is up to 19 times more bioavailable than pure dihydromyricetin (DHM), a Japanese raisin tree extract found in Cheers products and other hangover-related cures.

"What we figured out is that if you combine DHM — our main ingredient — with something called capric acid, which is an extract from coconut oil, the bioavailability shoots way up," says Powell. He notes the unique taste profile and the "creaminess" capric acid provides. "Now you have this lightly carbonated, zero-sugar, lemon sherbert, essentially liver support, hangover beverage that tastes great in 12 ounces and can mix with alcohol," he explains.

The Cheers Restore beverage is already hitting the Houston-area, where its found a home on menus at Present Company. The company has also run promotions with Houston hangouts like Memorial Trail Ice House, Drift, and The Powder Keg.

Currently, the beverage is only available in retail capacity and cannot be ordered on the Cheers website. As Powell focuses on expanding Cheers Restore beverage presence in the region, he welcomes the idea of expanding nationally in the future to come. While eager customers await the drink's national availability, they can actively invest in Cheers through the company's recently-launched online public offering.

Though repivoting a company and launching a new product is exciting, the process did not come without its caveats and stressors. While Cheers profited as a business in 2020, the staff and its founder weren't immune to the struggles of COVID-19.

"I think 2020 was the first year that it really became real for me that Cheers is far more than just some sort of alcohol-related health brand and its products," says Powell. "Cheers is really its employees and everything that goes into being a successful, durable company that people essentially bet their careers on and their family's well-being on and so forth," he continues.

"It really does weigh on you in a different way that it's never weighed on you before," says Powell, describing the stress of the pandemic. The experience was "enlightening," he says, and he wants others to know it's not embarrassing to need help.

"There is no lack of great leaders out there that at long periods of their life they needed help in some way," he says. "For me that was 2020 and being in the grinder and feeling the stress of the unknown and all of that, but it could happen to anyone," he continues.

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