Houston startup raises $30M series B, plans to expand its offerings to customers

money moves

Growing Houston-based WizeHire tripled its headcount last year and plans to grow even more as it scales up. Photo courtesy of WizeHire

A Houston software company has closed its latest funding round to the tune of $30 million.

WizeHire, a tech-enabled hiring solution for small businesses, announced the closing of its series B round, bringing its total funding to $37.5 million and its valuation to $250 million, according to the news release. The round was led by Tiger Global with participation from prior Houston-based investors Amplo and Mercury.

The pandemic has greatly impacted businesses ability to hire new employees. Founded in 2014, WizeHire launched a free version of its optimized hiring solution at the height of COVID-19. The company also helped small businesses find and apply for refundable tax credits and Payment Protection Program loans to keep their doors open.

“The pandemic was an incredibly tough time for Main Street, and we were right there with them," says Sid Upadhyay, CEO of WizeHire, in the release. "We’re constantly amazed by the depth of our clients’ trust in us and in response, have stepped up to serve them as a trusted advisor in their business growth. We plan to build a marketplace for small businesses to have access to the resources they need to succeed.”

Now, WizeHire is scaling its abilities to provide more resources to its customers, including offerings like tax, payroll, and insurance advice. The company also recently launched a mobile app for business owners to managing hiring on the go. Additionally, WizeHire has plans to expand into new industries — like automotive, hospitality, insurance, and home services — and add features like recommended background checks, and legally-approved offer letters, per the release.

"WizeHire has created a solution that serves and anticipates the most important needs of Main Street businesses with a focus on hiring skilled workers," Sam Harland, partner at Tiger Global, says in the release. "Rapid adoption of the WizeHire platform by small businesses illustrates the market’s potential, and we are excited to partner with Sid and the WizeHire team.”

The company, which raised its series A a little over a year ago, now has more than 15,000 employers use the platform — and 90 percent of those businesses plan to return for future hiring needs, the release states. Last year, WizeHire doubled its customer base and internally tripled its headcount. The business has plans to continue growing its team this year.

WizeHire CEO Sid Upadhyay joins the Houston Innovators Podcast to share his big plans for his company as it gears up for growth. Photo courtesy of WizeHire

Houston startup plans to expand to revolutionize tech-enabled small business support

HOUSTON INNOVATORS PODCAST EPISODE 74

Hiring and recruiting has been a challenging and inefficient process for small businesses — yet it could not be more important as a company with a small, growing team.

"Today, whether you're running a startup for the first or second time, at the end of the day, you're just wearing too many hats," says Sid Upadhyay, co-founder and CEO of WizeHire, on this week's episode of the Houston Innovators Podcast. "Recruiting is one of those things where we know talent is the lifeblood of our businesses, but we just don't have the time to think about the process."

Upadhyay says his company, Houston-based WizeHire, lives and breathes for small businesses, and in 2014 the company launched to tap into technology to provide a software service that can streamline a more effective way for startups and small businesses to hire — and hire optimally.

Last month, the company — founded by Upadhyay, Nick Carneiro, and Jay Niblick — closed a $7.5 million series A funding round that was led by Houston-based Mercury Fund and Amplo, which is based just north of Houston in Spring. Additional support came from existing backers Ruchit Shah and RigUp co-founder Sandeep Jain. The fresh funding will go toward expansion — both of its team as well as WizeHire's products.

Upadhyay says the the effects of the pandemic — which includes many businesses ceasing to hire — had profound repercussions on WizeHire.

"We saw half our revenue disappear overnight," Upadhyay says. "As we were going through that up-and-down roller coaster, it was one of the most humbling experience."

Upadhyay says WizeHire has a close relationship with its customers, and they were reaching out asking for guidance from WizeHire during the uncertain times. Upadhyay's team took the opportunity to provide low or no-cost support, especially when it comes to navigating the CARES Act.

"We started to educate our customers about everything from PPP loans to tax credits," Upadhyay says. "We went so far as to connect 300 of our customers to banks — otherwise they wouldn't have been able to get these loans."

These efforts are what led WizeHire to its first venture capital raise. The bootstrapped company has a client base that includes more than 7,000 businesses, and the company recorded $4.7 million in run rate in 2020. Now, in light of the impact WizeHire was able to make with its clients during the pandemic, Upadhyay says the company is going to expand to include other key services, like identifying tax credits.

"We're really going beyond just the hire," Upadhyay says. "We're getting to this role where we're going to help you grow your business."

Upadhyay discusses more about WizeHire's plans for 2021 and the intentionality of the business on the episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.


A Houston startup has closed a $7.5 million round of funding with mostly local investment. Photo courtesy of WizeHire

Houston software startup closes $7.5M series A led by two Houston-area​ VC firms

money moves

A Houston B2B software startup has closed a new round of funding led by two Houston venture capital firms.

WizeHire, a tech-enabled hiring solution for small businesses, closed a $7.5 million series A funding round that was led by Houston-based Mercury Fund and Amplo, which is based just north of Houston in Spring. Additional support came from existing backers Ruchit Shah and RigUp co-founder Sandeep Jain. The company was co-founded by Sid Upadhyay, Nick Carneiro, and Jay Niblick.

According to a news release, WizeHire will use the funds to scale their business, which is centered around providing personalized hiring resources to small businesses, as well as to hire more staff and expand its partner program.

"We're a small business helping small businesses with a team of people looking out for you," says Upadhyay, who serves the company as CEO, in the release. "Hiring is complex and personal. Our customers see what we do not just as software; they see us as a trusted advisor."

WizeHire's client base includes more than 7,000 businesses, and the company recorded $4.7 million in run rate in 2020, according to the press release, and it was the company's highest year-over-year growth.

"WizeHire is focused on a future where small business owners have easy access to the elevated hiring experience large corporations already have," says Amplo's Sam Garcia, who will join WizeHire's board, in the release. "They're not just creating a better alternative to current recruiting solutions; they're giving employers more peace of mind about the hiring process so they can get back to building their business."

Last year, during the height of the COVID-19 pandemic, the company launched a free version of its product and partnered with lenders to help increase accessibility for the Paycheck Protection Program. Now, in a new year, unemployment continues to soar and more than 10 million people remained out of work. As small businesses continue to recover and plan to rehire, WizeHire provides a service that is hyper-personalized for different industries.

"We are thrilled to support WizeHire's opportunity to define talent acquisition for small businesses," says Heath Butler, managing director at Mercury, who will also join WizeHire's board. "By systematically helping hiring managers align company values, behavioral competencies, technical skills and industry requirements to identify the best candidate, WizeHire is enabling their clients to maximize productivity, reduce turnover cost and increase customer loyalty."

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Houston Innovation Awards names prestigious panel of judges for 2023 awards

meet the decision makers

Ten Houstonians are in the hot seat for deciding the best companies and individuals in Houston's innovation ecosystem.

InnovationMap has announced its 2023 Houston Innovation Awards judging panel, which includes startup founders, nonprofit leaders, investors, corporate innovators, and more.

The 10 selected judges will evaluate applications from the nearly 400 nominations that were submitted this year. The judges will be using their expertise to evaluate the nominees' applications, which are due to InnovationMap by midnight on October 4.

Read about this year's judges below, and don't forget to secure your tickets to the November 8 event to see who the panel selects as the winners for the annual celebration of Houston innovation.

Natara Branch, CEO of Houston Exponential

Houston Exponential was founded to amplify and support the city's innovation ecosystem, and Natara Branch has been leading this initiative since appointed as CEO last year. For the second year, HX is partnering with InnovationMap on the Houston Innovation Awards.

Born in Germany and raised all around Texas, Branch — a University of Houston alumna — previously was the first African American woman to hold a vice president position at the NFL. Based in New York, she oversaw operations in various leadership roles at the NFL for over 18 years.

Barbara J. Burger, former Trailblazer Award recipient

Barbara J. Burger, former vice president of innovation at Chevron and president of Chevron Technology Ventures, was the inaugural recipient of the Trailblazer Award at the 2021 Houston Innovation Awards, which was previously called the InnovationMap Awards.

A self-proclaimed “graduate” from Chevron, she is senior adviser to Lazard, a member of the Greentown Labs Board of Directors, adviser to Syzygy Plasmonics, Epicore Biosystems, and Sparkz Inc., and several other energy transition and philanthropic roles. Burger holds a bachelor’s degree in chemistry from the University of Rochester, a doctoral degree in chemistry from the California Institute of Technology, and an academic honor MBA in finance from the University of California, Berkeley.

Devin Dunn, head of the Accelerator for Health Tech at TMC Innovation

As head of the Accelerator for Health Tech at the Texas Medical Center's Innovation Factory, Devin Dunn works hands on with startups — specifically to help them refine their business models and plan to scale — every day.

Prior to joining TMCi, Dunn was an early employee at a London-based digital health startup. She earned her bachelor’s degree in Biological Basis of Behavior and Healthcare Management from the University of Pennsylvania and received her Master’s in Public Health from the University of Texas Health Science Center.

Noah Fons, senior coordinator of regional economic development at the Greater Houston Partnership

Working within regional economic development at the Greater Houston Partnership, Noah Fons has the pulse on companies expanding to Houston. Previously, he worked at Houston Exponential, so he also understands Houston's evolving innovation ecosystem. He studied economics at Rice University.

Aziz Gilani, managing director at Mercury Fund

As managing director at Houston-based venture capital firm Mercury, Aziz Gilani focuses on investments in enterprise SaaS, Cloud, and data science startups. He's worked at the firm for over 15 years.

A Kauffman Fellows Program graduate, he received his bachelor's degree from the University of Texas and his MBA from Northwestern University’s Kellogg School of Management. Gilani also serves in advisory roles for the Mayor of Houston’s Tech and Innovation Council, Seed Accelerator Rankings, and SXSW Interactive and is an adjunct professor of entrepreneurship at Rice’s Jones Graduate School of Business where he teaches a course on venture capital.

Natalie Harms, editor of InnovationMap

For the third year, Natalie Harms will represent InnovationMap on the annual awards judging panel as the founding editor of InnovationMap the host of the Houston Innovators Podcast.

Recently named the editor of EnergyCapitalHTX, a newly launched sister site to InnovationMap focused on Houston's role within the energy transition, she reports on innovation, technology, energy transition — and their impact on the city of Houston. A Houston native, she's worked as a business journalist for almost a decade and has a degree in journalism from the University of Houston and a certificate in publishing from New York University.

Moji Karimi, co-founder and CEO of Cemvita Factory

Moji Karimi and his co-founder and sister, Tara Karimi, were honored at last year's Houston Innovation Awards as the winners of the Green Impact Business award. Cemvita Factory, their fast-growing startup, uses biotech to sustainably create materials to lower its customers carbon footprints.

Prior to launching Cemvita in 2018, Karimi held leadership roles at Weatherford and Biota Technology. He serves as a board member for CleanTX and adviser to Houston-based ComboCurve Inc.

Margarita Kelrikh, associate at Latham & Watkins

As associate in the Emerging Companies group at Latham & Watkins in Houston, Margarita Kelrikh has supported the firm's growing startup companies since her appointment last year. Prior to joining the firm, she held in-house counsel positions at a few companies, including WeWork.

She received her bachelor's degree at the University of Chicago and her law degree at Columbia School of Law.

Brad Rossacci, creative director at Accenture

Brad Rossacci is creative director at Accenture, where he's worked since 2018. He also co-founded and co-hosts the Curiosity Podcast. A Texas A&M University alumnus and self-proclaimed "rebellious optimist," Rossacci is passionate about Houston and innovation.

Maggie Segrich, co-founder of Sesh Coworking

As co-founder and CFO of inclusive coworking company, Sesh Coworking, Maggie Segrich is dedicated to supporting entrepreneurs of all backgrounds. Last year, Sesh Coworking won the Female-Founded Business category for the Houston Innovation Awards.

She serves as board member for Midtown Management District, where Sesh is located, and board chair for nonprofit, Magpies & Peacocks.

Space tech startup opens new $40M HQ at Houston Spaceport

ready for takeoff

Houston aerospace company Intuitive Machines has moved into its new $40 million headquarters at the Houston Spaceport.

Intuitive Machines’ new home supports NASA’s $93 billion Artemis program, which aims to return astronauts to the moon by 2024 and eventually send humans to Mars. Eighteen astronauts are assigned to the program. Houston’s Johnson Space Center is playing a key role in Artemis.

The company’s 105,572-square-foot Lunar Production and Operations Center serves as the hub for its lunar program, including the manufacturing of lunar landers and spacecraft. The facility features manufacturing and production spaces, 3D printing areas, machine shops, R&D labs, cleanrooms, and spacecraft assembly areas, along with offices, meeting rooms, and conference rooms.

“Unique to the facility are mission control rooms to track and manage lunar missions, and a propulsion test facility to assess lunar lander engine capabilities,” Intuitive Machines says in a news release.

The propulsion test facility consists of a 3,800-square-foot reinforced concrete chamber surrounded by a 25-foot-high perimeter wall that encloses an additional 6,500-square-foot yard.

Intuitive Machines says its first mission lunar lander, Nova-C, will soon be shipped from its new facility ahead of the lander’s upcoming launch. The mission to deliver NASA and commercial payloads to the moon’s south pole marks the first U.S. attempt of a soft lunar landing since Apollo 17 in 1972.

The moon “is no longer a distant dream; it’s a destination within our grasp, and this facility is our lunar gateway — a national asset,” says Steve Altemus, co-founder, president, and CEO of Intuitive Machines.

Construction on the site began in June 2021, with the now-completed facility ready to support each of Intuitive Machines’ three NASA-awarded missions.

Intuitive Machines joins Axiom Space and Collins Aerospace as the third anchor tenant at the Houston Spaceport.

“Houston has always been a city that reaches for the stars, and with Intuitive Machines operating at the Houston Spaceport, our city is poised to shine even brighter in the cosmos,” says Houston Mayor Sylvester Turner.

In August, the publicly traded company announced it received a $20 million equity investment from an unidentified institutional investor.

3 Houston innovators to know this week

hou to know

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

Pedro Silva, CEO and co-founder of Milkify

Pedro Silva of Milkify join the Houston Innovators Podcast to discuss the impact of their successful Shark Tank experience. Photo courtesy of Milkify

While Milkify's founders — husband and wife team Pedro Silva and Berkley Luck — secured partners on a popular business pitch and investment show, the entire experience almost didn't happen.

Silva and Luck, who got her PhD in molecular and biomedical s at Baylor College of Medicine, founded the company to provide breast milk freeze drying as a service to Houston-area families. Now, Milkify has customers across the country, but the duo didn't know if going through the process would be worth the investment and publicity, or if it would just be a distraction.

"The competitor in me wanted to be the first breast milk company to go on the show and to tell our story to the world — to show the world what my wife came up with that we thought was so great," Silva says on the Houston Innovators Podcast. "It was probably the scariest 45 minutes of my life."Read more.

Anthony Palmiotto, director of higher education at OpenStax

OpenStax, founded out of Rice University, has continued its growth, adding new partners and textbooks. Photo via openstax.org

In an effort to combat the hefty price tag of assigned texts, OpenStax, a nonprofit education startup out of Rice University, which is on a mission to increase educational access for all, seeks to democratize high-quality education by offering free, peer-reviewed, openly licensed textbooks for students and knowledge seekers across the globe.

This month, OpenStax will add to its 57 open education resources, or OER, titles with a full version of John McMurry's popular pre-med textbook, Organic Chemistry, under an open license to honor his late son, Peter, who passed away in 2019 after losing his battle with cystic fibrosis.

“Before the nursing books, we were doing business books,” Anthony Palmiotto, director of higher education at OpenStax, tells InnovationMap. “Murry’s book builds out our science offerings, so we're thinking about the different areas that students take that can be barriers for them to move up in education and succeed. From there, we’ll continue to think about how a free textbook can help students through that process.” Read more.

Brad Deutser, founder and CEO of Deutser

In his new book, Houstonian Brad Deutser explores how increasingly important a sense of belonging is in the workplace. Photo courtesy

Last week, Houstonian and business consultant Brad Deutser published his book, BELONGING RULES: Five Crucial Actions that Build Unity and Foster Performance. In a guest column for InnovationMap, Deutser writes of the importance of belonging in the workplace with his colleague Isabel Bilotta, managing consultant and head of learning and innovation at Deutser's learning initiative.

"Although there are many definitions out there, we define belonging as where we hold space for something of shared importance," the article reads. "It is where we come together on values, purpose, and identity; a space of acceptance where agreement is not required but a shared framework is understood; where there is an invitation into the space; an intentional choice to take part in; something vital to a sense of connection, security, and acceptance." Read more.

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