Exclusive: Houston startup names new CEO to lead industrial growth

next phase

Jay Manouchehri (left) is now CEO of Fluence Analytics, and co-founder Alex Reed has transitioned to president and chief commercial officer. Photo courtesy of Fluence Analytics

Teamwork makes the dream work, and a Houston-based tech startup is one step closer to its dream team, according to the company's leadership.

Fluence Analytics, which moved its headquarters to the Houston area from New Orleans last year, has named Jay Manouchehri as the company's CEO. Manouchehri has worked in leadership roles within difital transformation at ABB and Honeywell all around the world, as well as in consulting and private equity.

"As you (can see) from Jay's background he is exactly the type of person we need to help take our company the next level," says co-founder Alex Reed. "I think he's gonna be critical as we did this Houston move and go to this next phase of growth and eventually drive to an exit."

Reed has transitioned from CEO to chief commercial officer, but Manouchehri tells InnovationMap the two really lead the company together and balance each other out. Reed says he's focused on commercial product strategy and Manouchehri is leading industrial growth.

“The next step for Fluence is really that we are industrializing our product and getting it into the industrial market," Manouchehri says. "That's exactly why we moved to Houston — it's where a lot of our clients are. We're building up and structure the company in such a manner that it could scale, get the right partnerships, and hire a team to take us to the next level and deliver the technology."

Fluence's technology is changing the game within the polymer space. The industrial and laboratory monitoring solutions — a combination of software and hardware — track and report key data in real time allowing industrial polymer producers to improve process control.

"When I saw what Alex is doing, it wasn't like it's a startup looking for a problem to solve. It's a startup trying to crack a nut that a lot of people in this industry have be in trying for 20 or 30 years and haven't been able to do so," Manouchehri says.

The move to Houston has allowed the company access to new and existing customers within the industry, but also potential acquirers and the company says an exit could be possible over the next few years. Additionally, Houston provides an opportunity to expand into the biomedical space. Recently, Fluence hired a Houston employee to build out this vertical.

"MRNAs and DNAs are all polymers. So, we use the same IP and same technology and do analysis, sensing, and data analytics for the biopharma industry," Manouchehri says. "We actually are pushing that quite strongly. Our client base is growing rapidly."

Another avenue Fluence is excited about is chemical recycling or polymerization recycling. Reed says they are closely watching the traction within the circular economy.

"Imagine taking plastic bottles and being able to recycle them back to the original molecule and then reprocess them into a bottle again," Reed says. "Mechanical recycling is more typical now and has a lot of disadvantages because of the additives and the properties that you get when you melt down all the different types of plastics. (Chemical recycling) would actually allow you to make new plastic from the old plastic, just by taking the original molecule out."

Fluence Analytics, which raised a $7.5 million round led by Energy Innovation Capital last summer, has its headquarters in Stafford, just southwest of Houston.

This week's roundup of Houston innovators includes Sarah Groen of Bell & Bly Travel, Alex Reed of Fluence Analytics, and Bettina Beech of UH. Courtesy photos

3 Houston innovators to know this week

who's who

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

Sarah Groen, founder of Bell and Bly Travel

Sarah Groen, travel entrepreneur and longtime Houston tech ecosystem member, joins the Houston Innovators Podcast. Photo courtesy of Bell and Bly Travel

It's been a scary time for travel-related businesses, and Sarah Groen has had to get innovative to maintain her business as a travel adviser. Lucky for Groen, who has a long career in tech and innovation, she had all the right pivots, including offering digital travel packages, launching a new podcast, and more.

"During COVID, a lot of businesses either shutdown or took a pause, but we accelerated," Groen says.

Groen her career on the Houston Innovators Podcast. She also gives some strategic advice for founders — like trusting your gut and reading the signs when it comes to product-market fit — on the podcast. Click here to read more and stream the episode.

Alex Reed, co-founder and CEO of Fluence Analytics

Alex Reed joined InnovationMap for a Q&A on the company's move to Houston and its growth plans. Photo courtesy of Fluence Analytics

Alex Reed watched his father work in the labs on his research as he grew up, but he realized his future wasn't in the lab. Instead, he launched a career in taking that research and turning it into a company.

Founded in 2012 in New Orleans, Fluence Analytics has entered its next phase of growth by moving its headquarters to Houston following a $7.5 million venture capital raise.

We're working with the Houston of today, but also the Houston of tomorrow," Reed tells InnovationMap in a Q&A. Click here to read more.

Bettina Beech, chief population health officer at the University of Houston

Bettina Beech is a newly named AIM-AHEAD coordinating center team member. Photo via UH.edu

The University of Houston has joined in on a national initiative to increase the diversity of artificial intelligence researchers, according to a news release from the school. Unfortunately, AI — designed by humans — mimics human decision making through its choice of algorithms. This means that the same biases humans deal with have made it into the AI decision making too. These gaps can lead to continued disparities and inequities for underrepresented communities especially in regards to health care, job hiring, and more.

"Beyond health care, AI has been used in areas from facial recognition to self-driving cars and beyond, but there is an extreme lack of diversity among the developers of AI/ML tools. Many studies have shown that flawed AI systems and algorithms perpetuate gender and racial biases and have resulted in untoward outcomes," says Bettina Beech, chief population health officer at the University of Houston and newly named AIM-AHEAD coordinating center team member.

The initiative will bring together collaborators and experts across AI and machine learning, health equity research, data science training, data infrastructure and more. The other universities involved include: University of Colorado-Anschutz Medical Center in Aurora; University of California, Los Angeles; Meharry Medical College in Nashville; Morehouse School of Medicine in Atlanta; Johns Hopkins University, and Vanderbilt University Medical Center. Click here to read more.

Alex Reed, co-founder and CEO of Fluence Analytics, joined InnovationMap for a Q&A on the company's move to Houston and its growth plans. Photo courtesy of Fluence Analytics

Fresh off $7.5M funding, this new-to-Houston tech company plans to grow and expand in life science space

q&A

Founded in 2012 in New Orleans, a tech company that provides software and hardware solutions for the chemicals industry has entered its next phase of growth by moving its headquarters to Houston following a $7.5 million venture capital raise.

Fluence Analytics, which announced its recent raise led by Yokogawa Electric Corp. last month, has officially moved to the Houston area. The company's new HQ is in Stafford. Alex Reed, co-founder and CEO of the company, joined InnovationMap for a Q&A about what led up to the move and the future of the company, which includes expanding into the life science field.

InnovationMap: Tell me about Fluence Analytics — what does the technology do and why did you decide to start the company?

Alex Reed: We have developed a patented technology that can optimize chemical production. We basically are able to measure what's happening in real time in a process. Imagine if you're baking a cake, and you follow this recipe and sometimes you get the cake you want, sometimes it's too dry, and sometimes it's not cooked enough. And so the polymers industry, for simplistic terms, has that type of an issue. You don't really know exactly where you're at your equipment behaves differently. Basically, what we're able to do is give them real-time information on what's happening as they're baking the cake so that every time they can get a perfect cake.

We have a software and hardware solution that we install in these plants to get these measurements so that our customers can optimize production — and they want to do that to improve their yield, reduce waste, increase safety, and improve quality. There are a lot of different reasons that companies are interested in our technology and we have managed to grow globally. We have customers in Asia, Europe, and the U.S.

We spun out of Tulane University. It's an interesting story because my dad is the inventor of the technology — he's a physics professor at Tulane. I grew up working in the lab with him literally since the age of 12, and I was super interested in technology and science and saw that he was working with all these chemical companies. They were always very interested in what he was working on. I got to the point where I realized that I didn't want to be a scientist — I was far more interested in the commercialization and how you go from lab to product. That transition is very difficult. So, I stepped into the role of the entrepreneur. We had the patents and technology for my dad, I had an excellent mentor, and then our other co-founder was a technical founder.

IM: When and why did you start considering an HQ move? 

AR: We raised our first institutional venture funding in April 2017. Up until that point, it was primarily working with customers and grant funding. We worked with actually a group that has an office here called Energy Innovation Capital. They came in and invested in us and supported us, and George Coyle joined our board.

So, we had that tie to Houston, and I was in Houston a lot because there was a concentration of partners and customers — and not just like chemical plant customers, but also technology and R&D centers. As we started to scale, we brought on some other investors — Mitsubishi Chemical, JSR Corp., and most recently Yokogawa Electric Corp., which has its North American headquarters in Sugar Land.

We started to just build momentum towards it. I'd say we first had the conversations pre-COVID and then COVID hit, and we'd kind of just stopped everything for a while, just to make sure we knew where the business was heading. We've made it through COVID fine and did well on coming out of it. Then we felt it was the right time to pick that thread back up. We knew it made sense. The labor pool is amazing here, and there's just so many reasons why we were looking at it. So then we just pulled the trigger.

IM: How did you decide on the Houston area? What drew you to Stafford?

AR: Initially, we had a little landing pad in the East End Maker Hub, so we got in there and they were awesome. We actually had started hiring remote people here in 2019 because we knew the move was going to happen at some point. We had a place for them to go work out of EEMH while we searched for a permanent facility. We connected with the Greater Houston Partnership, and they plugged us in to Houston Exponential, and they have been very good at introducing us to the right people. We just don't know the lay of the land to be honest, so they've been a great resource. We were looking originally on the northside of Houston, and then we saw the Stafford area. There's a huge concentration of similar type companies — automation, some software, some hardware. There were some tax advantages. We settled in the Stafford area and are very happy with the choice we made to end up here.

IM: I know you recently raised a $7.5M venture funding round. What does that funding mean for growth?

AR: Like any capital, the objective is to use it to grow. For us, "grow" has several different areas. One is the product. There's a very long roadmap of both hardware and software improvements that we want to make. So basically we're accelerating a lot of the things on our roadmap to do things like closed-loop control based on our data — imagine running a whole plant autonomously based on measurements that we're making. We're moving more and more toward that autonomous operation world and improving a lot of the actual underlying hardware, making the measurements, building out sales and marketing as we start to serve more and more customers. Product sales and marketing and customer success are the areas that we're scaling.

IM: As you grow your local team, what are you looking for?

AR: Field applications, software, some automation technicians, and more. We do have some life science applications. So, in addition to our core area on the chemical side, we have a product we've sold into biopharma, and so we want to grow some of that. We're actually hiring for a product manager for the life science side of the business. So, that one's a pretty unique opportunity and role.

IM: Considering your life science application, it seems like Houston is a good fit for that vertical as well, right?

AR: We're working with the Houston of today, but also the Houston of tomorrow, which is this life science play. The next phase is kind of following that innovation value chain. So, figuring out what's the R&D and manufacturing of these pharmaceuticals, and how you can attract more of those technology centers and factories to make the stuff here. If you look at the talent pool here, those resources are somewhat fungible with the resources that serve petrochemical and oil and gas.

This cross pollination I think actually could be quite an interesting differentiator for Houston if the city can build that critical mass. So yes, I think there is an opportunity for us to leverage this vision that Houston has for life science. Now, we'll still have to go to the coast to go to our customers, but I think talent pool, and eventually you might even have customers here. It's certainly feasible.

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This conversation has been edited for brevity and clarity.

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Chevron enters the lithium market with major Texas land acquisition

to market

Chevron U.S.A., a subsidiary of Houston-based energy company Chevron, has taken its first big step toward establishing a commercial-scale lithium business.

Chevron acquired leaseholds totaling about 125,000 acres in Northeast Texas and southwest Arkansas from TerraVolta Resources and East Texas Natural Resources. The acreage contains a high amount of lithium, which Chevron plans to extract from brines produced from the subsurface.

Lithium-ion batteries are used in an array of technologies, such as smartwatches, e-bikes, pacemakers, and batteries for electric vehicles, according to Chevron. The International Energy Agency estimates lithium demand could grow more than 400 percent by 2040.

“This acquisition represents a strategic investment to support energy manufacturing and expand U.S.-based critical mineral supplies,” Jeff Gustavson, president of Chevron New Energies, said in a news release. “Establishing domestic and resilient lithium supply chains is essential not only to maintaining U.S. energy leadership but also to meeting the growing demand from customers.”

Rania Yacoub, corporate business development manager at Chevron New Energies, said that amid heightening demand, lithium is “one of the world’s most sought-after natural resources.”

“Chevron is looking to help meet that demand and drive U.S. energy competitiveness by sourcing lithium domestically,” Yacoub said.

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This article originally appeared on EnergyCapital.

International Space Station welcomes astronauts from successful Axiom Mission 4

Out In Space

The first astronauts in more than 40 years from India, Poland and Hungary arrived at the International Space Station on Thursday, ferried there by SpaceX on a private flight.

The crew of four will spend two weeks at the orbiting lab, performing dozens of experiments. They launched Wednesday from NASA’s Kennedy Space Center.

America’s most experienced astronaut, Peggy Whitson, is the commander of the visiting crew. She works for Axiom Space, the Houston company that arranged the chartered flight.

Besides Whitson, the crew includes India’s Shubhanshu Shukla, a pilot in the Indian Air Force; Hungary’s Tibor Kapu, a mechanical engineer; and Poland’s Slawosz Uznanski-Wisniewski, a radiation expert and one of the European Space Agency’s project astronauts on temporary flight duty.

No one has ever visited the International Space Station from those countries before. The time anyone rocketed into orbit from those countries was in the late 1970s and 1980s, traveling with the Soviets.

“It’s an honor to have you join our outpost of international cooperation and exploration," NASA's Mission Control radioed from Houston minutes after the linkup high above the North Atlantic.

The new arrivals shared hugs and handshakes with the space station's seven full-time residents, celebrating with drink pouches sipped through straws. Six nations were represented: four from the U.S., three from Russia and one each from Japan, India, Poland and Hungary.

"It’s so great to be here finally. It was a long quarantine," Whitson said, referring to the crew's extra-long isolation before liftoff to stay healthy.

They went into quarantine on May 25, stuck in it as their launch kept getting delayed. The latest postponement was for space station leak monitoring, NASA wanted to make sure everything was safe following repairs to a longtime leak on the Russian side of the outpost.

It's the fourth Axiom-sponsored flight to the space station since 2022. The company is one of several that are developing their own space stations due to launch in the coming years. NASA plans to abandon the International Space Station in 2030 after more than three decades of operation, and is encouraging private ventures to replace it.

Screen-free hiking app developed in Houston earns 'Best of the Best' award

Peak Prize

An AI-powered, screen-free hiking system developed by Varshini Chouthri, a recent industrial design graduate from the University of Houston, has received Red Dot’s “Best of the Best” award, which recognizes the top innovative designs around the world.

Known as NOMAD, the system aims to help users stay in the moment while still utilizing technology. It will go on to compete for the Red Dot Luminary Award, the highest recognition given at the international event.

“NOMAD was truly a passion project, inspired by years of hiking growing up, where the outdoors became a place of peace, challenge, and reflection,” Chouthri said in a news release.

“I wanted to design something supporting those kinds of experiences by helping hikers feel more grounded and confident while staying present in nature. It was a way to give back to the moments that made me fall in love with the outdoors in the first place.”

The app “reimagines” outdoor exploration by removing the dependence on screens by using adaptive AI, contextual sensing, and an optional, wearable companion device. It employs a circular learning model that enables hikers to receive real-time guidance, safety alerts, personalized trip planning, hands-free navigation and more through a natural interface, according to UH.

NOMAD was developed at the Hines College of Architecture and Design’s PXD LAB. In 2023, Lunet, developed by David Edquilang at Hines College, received the “Best of the Best” recognition and went on to win the Red Dot Luminary Award.

The PXD LAB offers a platform to expand concepts into system-level designs that address real-world challenges, according to UH.

“Varshini’s work on NOMAD exemplifies the future-focused, systems-driven thinking we promote in the Advanced UX Design curriculum,” Min Kang, director of PXD LAB, added in the release. “NOMAD goes beyond being just a product; it reimagines how technology can enhance outdoor exploration without disrupting the experience.”

In addition to the Red Dot honors, NOMAD has already earned distinction from the FIT Sport Design Awards and was a finalist for the International Design Excellence Awards (IDEA) presented by the Industrial Designers Society of America.
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