Overheard: Fintech company with Houston ties sees opportunity for growth in new work-from-home age

Eavesdropping in Houston

AvidXchange executives explain why a crisis like the pandemic can provide opportunities for growth or realignment. Photo via Getty Images

From esports to telemedicine, some technologies are having a major moment during the COVID-19 crisis. As many businesses are operating remotely with work-from-home policies in place indefinitely, payments automation is another technology that's seen an opportunity amid the pandemic.

AvidXchange, which has invoice and payment processes automation software for mid-market businesses, is one of the companies in this payment automation space that's seen growth in spite of the economic downturn caused by the virus. The Charlotte, North Carolina-based company was founded in 2000 and went on to acquire Houston-founded Strongroom Solutions Inc. in 2015.

Since the acquisition, AvidXchange has quadrupled its presence in Houston and does a good deal of business locally. Equipping companies with tools for remote work is crucial — now and especially in light of Houston's propensity for challenges. Tyler Gill, vice president of sales for AvidXchange based in the Houston office and former CEO of Strongroom, joined Houston Exponential on a virtual panel to discuss this topic.

"We've had a history of disasters in Houston. Any time we can help businesses move to a more cloud-based infrastructure is going to be better," Gill says on the livestream. "I think working from home is maybe the new normal for a lot of employees — so how do we enable this?"

Gill and his colleague, Chris Elmore, senior sales performance director at AvidXchange, joined Joey Sanchez of HX for the talk about the acquisition, the pandemic, and growth for the company. If you missed it or don't have time to stream the whole conversation, here are some impactful moments of the chat.

“Economic downturns have a tendency to put a very bright light on a feature set or a product or a service that’s underperforming."

— Elmore says on how the pandemic affects innovation and startups. "My hope is that entrepreneurs will see this as a real time to get focused on their business — what's working well and what's not working well — and my hope is that they'll say, 'I need to fix that,' not 'I wish this was better,'" he says.

“For a young entrepreneur looking to build a business, make sure you’re looking for the people who are germane to your business.”

— Gill says about starting his business in Houston. At first, he was trying to find investors in oil and gas, but he found more success working with companies with a background in finance technology. "Houston has a history and density in fintech — I just had to find it."

“The fact that Strongroom owned the automated payment process in HOA that made them so attractive to AvidXchange because we didn’t.”

— Elmore says on the 2015 acquisition. He explains that AvidXchange had set up a presence in multifamily and commercial real estate, while Strongroom had a hold on homeowner's association, or HOA, business. The two companies competed for a while, and if Strongroom hadn't had their HOA specialty that made the company ideal for acquisition, Elmore says the two companies would still be competing today.

“When Strongroom was added to AvidXchange, our culture improved. By the way, we went from 40 employees to 1,000 within 14 months, and Strongroom was right at the beginning of that.”

— Elmore says on growth following the acquisition. The company now has 1,500 employees across seven offices and just closed a $128 million round of fundraising in April.

“Customers don’t care how big you get or how much money you raise from investors. They care about if your service is still doing the things they need to operate their business.”

— Gill says, reminding entrepreneurs to always prioritize and be focused on the client experience — through mergers or acquisitions, fundraising rounds, growth, etc.

“When you replace human interaction with technology, what you have to do, is to now move that person on to something more impactful and more important for the business. I don’t like tech for tech’s sake.”

— Elmore says on the importance of automation. "When you automate something, the output of automation is time," he adds.

“Houston couldn’t be a better place to build a business — I found great investors and employees here. It’s a city that’s used to risk. But it’s got to be you, the entrepreneur, that’s got something festering — that’s how you know it’s a great idea.”

— Gill says on inspiring future innovators. "What kept me motivated was I wanted to win. I felt like we had a great product, and we had a big market to serve. … I wanted to build something lasting and build a great team."

“We continue to be a great Houston story — some of my angel investors in Houston are still benefiting."

— Gill says on AvidXchange's presence in Houston. He adds that he's proud of how his former Strongroom team members have risen through the ranks of the company following the acquisition and that he sees the company, which is still privately held, moving toward IPO.

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Energy giant announces deal retail company to bring EV tech to Houston malls

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Two Houston-area malls will be getting bp's electric vehicle charging technology thanks to a new global collaboration.

The global energy company will be bringing its global EV charging business, bp pulse, to 75 shopping facilities across the country thanks to a partnership with Simon Malls. Two malls in town — The Galleria and Katy Mills Mall — soon see bp's EV charging Gigahubs. The company will install and operate the chargers at the two area sites.

The deal aims to deliver over 900 ultra-fast charging bays that will support most make and model of EVs with the first locations opening to the public in early 2026. Other Texas locations include Grapevine Mills in Grapevine, and Austin’s Barton Creek Square.

“We’re pleased to complete this deal with Simon and expand our ultra-fast charging network footprint in the U.S.,” Richard Bartlett, CEO of bp pulse, says in a news release. “The Simon portfolio aligns with bp pulse’s strategy to deploy ultra-fast charging across the West Coast, East Coast, Sun Belt and Great Lakes, and we are thrilled to team up with Simon so that EV drivers have a range of retail offerings at their impressive destinations.”

Last month, bp pulse opened a EV charging station at its North American headquarters in Houston. The company plans to continue deployment of additional charging points at high-demand spots like major metropolitan areas, bp-owned properties, and airports, according to bp.

“As a committed long term infrastructure player with a global network of EV charging solutions, bp pulse intends to continue to seek and build transformative industry collaborations in real estate required to scale our network and match the demand of current and future EV drivers,” Sujay Sharma, CEO bp pulse Americas, adds.

Houston space tech company reaches major milestone for engine technology

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A Houston company that's creating the next generation of space exploration technology is celebrating a new milestone of one of its technologies.

Intuitive Machines reports that its VR900 completed a full-duration hot-fire test, qualifying it for its IM-2 lunar mission. With the qualification, the company says its VR3500, an engine designed for larger cargo class landers, also advances in development.

The engine technology is designed, 3D-printed, and tested all at Intuitive Machines' Houston facility, which opened in the Houston Spaceport last year.

Intuitive Machines CEO Steve Altemus says in a news release that the company's goal was to lead the way in scalable deep space engines as the industry heads toward lunar missions.

“This validated engine design meets current mission demand and paves the way for our VR3500 engine for cargo delivery such as lunar terrain vehicles, human spaceflight cargo resupply, and other infrastructure delivery," Altemus continues. "We believe we’re in a prime position to build on our successful development and apply that technology toward current contracts and future lunar requirements for infrastructure delivery.”

Earlier this year, Intuitive Machines was one of one of three companies selected for a $30 million NASA contract for the initial phase of developing a rover for U.S. astronauts to traverse the moon’s surface.

Another Houston company has seen success with its engine testing. In March, Venus Aerospace announced that it's successfully ran the first long-duration engine test of their Rotating Detonation Rocket Engine in partnership with Defense Advanced Research Projects Agency, or DARPA.

Houston is the most stressed out city in Texas, report finds

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Stress is an unavoidable part of life, but a new report by WalletHub shows Houston residents are far more stressed out than any other city in Texas.

Houston ranked No. 18 out of 182 of the largest U.S. cities based on work, financial, family-related, and health and safety stress, according to WalletHub's "Most & Least Stressed Cities in America (2024)" report. 39 relevant metrics were considered in the report, including each city's job security, the share of households behind on bills within the last 12 months, divorce rates, crime rates, among others.

Houston was ranked the most stressed out city in Texas, but it's still far less stressed than many other U.S. cities. Cleveland, Ohio took first place as the most stressed city in America, followed by Detroit, Michigan (No. 2), Baltimore, Maryland (No. 3), Memphis, Tennessee (No. 4), and Gulfport, Mississippi (No. 5).

Out of the four main categories, Houstonians are struggling the most with work-related stress, ranking No. 13 nationally. The report found Houston has the No. 1 highest traffic congestion rate out of all cities in the report. But at least Houston drivers are solidly average, as maintained by a separate Forbes study comparing the worst drivers in America.

Houston workers can rejoice that they live in a city with a generally high level of guaranteed employment, as the city ranked No. 151 in the job security comparison. The city ranked No. 16 nationwide in the metric for the highest average weekly hours worked.

Houston fared best in the financial stress category, coming in at No. 72 nationally, showing that Houstonians aren't as worried about pinching pennies when it comes to maintaining a good quality of life. The city ranked No. 39 in the comparison of highest poverty rates.

Here's how WalletHub quantified Houston's stress levels:

  • No. 17 – Health and safety stress rank (overall)
  • No. 36 – Family stress rank (overall)
  • No. 63 – Unemployment rates
  • No. 81 – Percentage of adults in fair/poor health
  • No. 95 – Divorce rate
  • No. 96 – Percentage of adults with inadequate sleep

WalletHub analyst Cassandra Happe said in the report that living in particularly arduous cities can play a big role in how stressed a person is, especially when considering uncontrollable circumstances like family problems or work-related issues.

"Cities with high crime rates, weak economies, less effective public health and congested transportation systems naturally lead to elevated stress levels for residents," Happe said.

Happe advised that residents considering a move to a place like Houston should consider how the city's quality of life will impact their mental health, not just their financial wellbeing.

Other Texas cities that ranked among the top 100 most stressed cities in the U.S. are:

  • No. 20 – San Antonio
  • No. 38 – Laredo
  • No. 41 – Dallas
  • No. 47 – Corpus Christi
  • No. 61 – El Paso
  • No. 68 – Fort Worth
  • No. 71 – Brownsville
  • No. 75 – Arlington
  • No. 78 – Grand Prairie
  • No. 88 – Garland
The full report and its methodology can be found on wallethub.com

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This article originally ran on CultureMap.

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