Station Houston CEO Gabriella Rowe and Rice Alliance Managing Partner Brad Burke named 10 startups to watch. Photo by Natalie Harms

Texas is booming with digital startups, and Station Houston and the Rice Alliance for Technology and Entrepreneurship hosted a meeting of the minds to discuss the digital revolution at the inaugural Texas Digital Summit at Rice University on December 6.

Thirty-nine companies presented throughout the day; among the group were 26 from the Houston area. At the conclusion of the day, Gabriella Rowe, CEO of Station Houston, and Brad Burke, managing director of the Rice Alliance, announced 10 "most promising companies" that stood out to a group of investors who attended the event.

All 10 selected were Texas-based, with eight from the Houston area. Here's who the venture capitalists and investors picked for the prize.

Houston-based SafePass

Photo via safepassglobal.com

SafePass pictures a world where visitors on school or corporate campuses can be tracked. The company's technology upends the standard paper or sticker pass you get from the front office, and provides a reusable, trackable device for visitors.

"Our tracking algorithm interacts with already existing WiFi technology — so, the routers that are already at that facility," says Ronald Huff, managing director of SafePass. "We leverage that to get that real-time tracking information."

Houston-based ScribeRule

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ScribeRule operates under the assumption that your company's data has already been breached. The software protects data from both internal and external threats so that companies don't have to worry about any type of threat. The technology is scalable and easy to use.

"The problem is very simple," says Chris Melson, president and COO. "Only allow people who are authorized to see your data, see the data. And that's the problem we've solved."

"It's very difficult to protect data in a collaborative environment."

Houston-based Sensoleak

Photo via sensoleak.com

Sensoleak is making it easier for monitors in the oil and gas industry to be alerted about leaks. Using artificial intelligence, machine learning, and internet of things combined into a software, the company is providing a revolutionary solution for a longstanding problem.

"The problem right now is there is a lot of false alarms," says Shoshi Kaganovsky, founder and CEO, "and if there is a leak, it has to leak a lot before it is caught."

The company recently opened a new round of funding.

Sugar Land-based Commtrex

Photo via commtrex.com

The only open, electronic marketplace for rail shippers and asset providers is right in Houston's backyard of Sugar Land. Commtrex makes communications and connections between these transportation entities more efficient and better executed.

"Commtrex's asset management tools and market data is based on real transactions, and benefits our member companies with engagement efficiencies and financial insights," reads the website.

Houston-based Zenus

Photo via zenus-biometrics.com

Let's face it, face recognition is the future of identification, and Zenus has an award-winning technology to move the needle. Utilizing face recognition doesn't need to compromise privacy.

"We are a leading provider of face recognition software," reads the website. "Our cloud-based service can search a database of faces within a blink of an eye and it can be seamlessly integrated into any application."

Houston-based 3GiG

Photo via 3-gig.com

3GiG is a one-stop shop software company for the "oval office" needs of oil and gas companies. Energy leaders can use the services to manage projects, prospects, and more. President and CEO Kandy Lukats compares her company's services to the trending meal kits — like Blue Apron or Hello Fresh —Americans have been crazy about — all the ingredients sent right to your door.

"We believe we've found the niche between the freezer section and doing it yourself," she says.

Austin-based Towny

Photo via towny.com

This Austin company is making it more appealing to shop local. Towny looks to work in cities with under a million residents. The tool is for small, consumer-focused businesses to market their store to consumers. The small business owners pay a flat monthly rate to utilize digital marketing tools from the convenience of their phones.

Towny is already in five towns with 500 clients, says CEO Nathan Baumeister. In January, the company's monthly revenue was $17,000, but for the last two months, the tool has raked in $90,000 monthly.

"We've built a branding, mobile-first platform, where we've taken all these technologies and tactics and put it together in one package at the affordable price of $199 per month," he says.

Dallas-based CommandHound

Photo via commandhound.com

CommandHound is a B2B software that tracks employee tasks and responsibilities. It reminds users on assigned duties and keeps a record of work outcomes for later performance reviews.

"Our ultimate solution is to turn every organization into a high-performance organization through accountability," says Rene Larrave, chairman and CEO. "It's a checklist on steroids."

Houston-based SecurityGate

Photo via securitygate.io

SecurityGate is disrupting the cyber compliance and the cyber regulation market by providing cyber risk assessments at a faster rate than a human auditor could. The software analyzes data, identifies potential cyber security risks, and communicates with the company how to address the threats.

"No matter what industry vertical you're in, every single supply chain out there is worries about supply chain cyber security," says CEO Ted Gutierrez. "And the problem with that, is everyone is doing it manually."

Houston-based DeepCast.ai

Photo via deepcast.ai

Using artificial intelligence and physics, DeepCast.ai can automate operations for industrial companies.

"We simply integrate with system solutions, try to clean and facilitate the data using AI models important to the oil and gas industry," says Arturo Klie, chief technology officer and senior software engineer. "Once the data is clean, we apply our business-informed AI models to solve and provide forecasting real time and analytics.

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Eli Lilly breaks ground on $6.5B pharmaceutical factory in Houston

lilly lands

Leading pharmaceutical company Eli Lilly broke ground today, Sept. 21, on its $6.5 billion manufacturing site at Houston's Generation Park.

The 236-acre, state-of-the art factory is expected to come online in 2030 and will manufacture Foundayo, the company's first synthetic oral GLP-1 medication, as well as other advanced therapeutics.

"We are thrilled to break ground on our latest ‘medicines made in America’ site in the great state of Texas," David Ricks, Lilly chair and CEO, said in a prepared statement. "This $6.5 billion investment will help change the game for tens of millions of people suffering from overweight, obesity and its consequences like diabetes. We will make and ship Lilly’s latest products from Texas to people here at home and around the world.”

Houston was up against more than 300 locations in the U.S. for the factory, as part of Lilly’s $50 billion investment in domestic medicine production that has launched 10 manufacturing sites since 2020. Lilly first announced Houston had been selected for the site last September.

Photo via gov.texas.gov

As Abbott mentioned, the site is expected to create hundreds of jobs, and will hire engineers, scientists, operations personnel and lab technicians once up and running. It will create 4,000 construction jobs while being built.

In an effort to support workforce development, Lilly also announced a $12.5 million commitment to Houston's San Jacinto College in addition to a $2.5 million charitable donation to the San Jacinto College Foundation. The funding will go toward hands-on training, equipment and facilities to support future technicians, operators, maintenance professionals, and other manufacturing talent, according to Lilly. The charitable donation will fund scholarships for students.

"This relationship will build a strong, sustainable talent pipeline for Lilly while creating meaningful, high-demand career opportunities across our region,” Brenda Hellyer, chancellor of San Jacinto College, said in the release.

"When you invest in a place like Houston, you invest in its people first," Edgardo Hernandez, executive vice president and president of Lilly Manufacturing Operations, added. "This facility will run on the talent of this community, powered by our relationship with San Jacinto College. We're hiring across the greater Houston area to help residents build careers close to home."

Rendering courtesy Eli Lilly

Lilly previously said it chose Generation Park, a 4,300-acre, master-planned commercial district near Lake Houston, because of factors such as financial incentives, access to utilities and transportation and the region’s business-friendly environment. Generation Park is home to campuses for San Jacinto College and Lone Star College.

Since Lilly first announced plans for the site, another fellow pharma giant has made plans to move into Generation Park. Bristol Myers Squibb Co. announced last month that it would build a $2.3 billion factory in the district. The site is expected to manufacture small molecule, biologic and antibody-drug conjugates and will also come online around 2030. Read more here.

UH Health names leader of new digital health institute

new exec

Recently launched UH Health has named the first-ever executive director of its new Institute for Digital Healthcare Transformation at the University of Houston.

Beto López has been tapped to lead the new initiative that aims to help develop and commercialize health care technologies centered around university research.

Launched in August, the Institute for Digital Healthcare Transformation leans on experts from UH’s engineering, medicine, business, law and other departments and will connect with industry partners. It will initially focus on mobile health applications, sensors, wearables and artificial intelligence, according to UH.

“Most digital health initiatives and commercialization efforts start with the technology and hope adoption follows. But the translation gap isn't a science problem — it’s a scaffolding problem between researchers, the community and the market,” López said in a news release. “I've spent the past 10 years building that scaffolding in places that weren’t wired for it, and I'm looking forward to building it here at UH to help ensure new health care technologies reach the people and communities that can benefit from them most.”

López previously spent 10 years at San Francisco-based innovation consultancy company IDEO, where he led over 100 projects for Fortune 500 companies and public agencies. He co-founded and served as managing director of the Design Institute for Health at UT Austin’s Dell Medical School; and also co-founded a social venture studio/venture capital fund focused on health care innovation. He worked alongside Houston’s Legacy Community Health during the COVID-19 pandemic.

“Beto understands that breakthrough technology alone doesn't transform health care — it has to be designed around the needs of patients, providers and communities and have a clear path into practice,” Jonathan McCullers, vice president for health affairs at UH, added in the news release. “His experience spanning academic health care and venture capital equips him to bring together researchers, health care organizations, entrepreneurs and investors. This makes him uniquely suited to lead this institute and help turn the university's innovation into solutions that improve people's lives.”

The University of Houston launched UH Health, its new cross-disciplinary academic venture, in July. It aims to bring together the university's health-related education, research and community impact under one umbrella.

ExxonMobil gets approval for $5B Texas Gulf Coast carbon capture project

CCS Expansion

Spring-based ExxonMobil has won approval from the Texas Railroad Commission for a $5 billion carbon capture and storage project in East Texas.

Dominic Genetti, senior vice president of CCS at ExxonMobil, told The Financial Times, which broke the news, that the Railroad Commission’s action is a “major milestone” that lets the company keep expanding along the Gulf Coast. In a 2-1 vote, commissioners authorized a carbon sequestration permit for the project.

“The Railroad Commission clearly recognizes the important role carbon capture and storage can play in meeting growing global demand for lower-carbon products while supporting new jobs and economic growth,” Genetti said.

The U.S. Environmental Protection Agency (EPA) approved ExxonMobil’s Rose CCS project last year.

The project will enable the company to inject about 53 metric tons of industrial customers’ carbon emissions into three underground wells it drilled in the Beaumont-Port Arthur area. Over a 13-year period, ExxonMobil plans to inject about 4 million metric tons per year into the Fleming and Upper Frio rock formations, according to Carbon Herald.

ExxonMobil says it owns the world’s first and largest CCS system, comprising 1,300 miles of CO2 pipeline and secure storage sites. Seventy percent of the pipelines are along the Gulf Coast.

The company ramped up its CCS business in 2023 with the $4.9 billion purchase of Denbury, which owned about 1,000 miles of CO2 pipelines.

“Our expertise, combined with Denbury’s talent and CO2 pipeline network, expands our low-carbon leadership and best positions us to meet the decarbonization needs of industrial customers while also reducing emissions in our own operations,” ExxonMobil Chairman and CEO Darren Woods said when the deal closed.

In January, Genetti wrote in a post on ExxonMobil’s website that the company is committed to CCS “for the long haul.”

“CCS is not new technology, but it’s flown relatively under the radar compared with the attention that production of hydrocarbons commands,” he wrote. “Now, as the world becomes more aware of the need to reduce emissions, CCS finally has a brighter spotlight and a broader runway to scale up.”

The company also announced this week that it has begun CCS operations at a direct reduced iron facility in Convent, Louisiana. The project will capture, transport and store up to 800,000 metric tons of CO2 per year, according to the company.

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This article first appeared on EnergyCapitalHTX.com.