New Houston startup development program to help launch corporate volunteer software

HOUSTON INNOVATORS PODCAST EPISODE 88

Kristen Phillips, director of Golden Section Studios, and Brooke Waupsh, founding CEO of Swoovy — the program's inaugural startup in residence — join the Houston Innovators Podcast to discuss how they are collaborating on a new B2B volunteer platform. Photos courtesy

Brooke Waupsh wanted to change the way people volunteered and help increase access to volunteers for nonprofits. So, she launched Swoovy, a dating app that connected singles who wanted to do some good on their first dates. Now, the Austin-based company is looking to expand to connect corporates with community service opportunities.

As Swoovy works on this new B2B SaaS platform, it's tapped a new partner to help support its endeavors. Golden Section Studios has launched to focus on advancing and supporting early-stage software companies like Swoovy, which is its inaugural startup in residence.

"We had discussions around our vision for Swoovy and the momentum behind the business we'd had in the early stages in Austin and looking for strategic growth partners, investors, and resources," Waupsh says on this week's episode of the Houston Innovators Podcast. "We had an instant relationship that we developed with the Studios as they were looking to launch this program."

Waupsh says that in addition to the financial support that comes with the arrangement — GSS plans to contribute up to $500,000 in its member companies — the Studios will offer Swoovy the chance to grow and scale, without having to hire a huge team right out of the gate.

"What's unique about the Studios for us is that as a startup and a small team, we have the bandwidth and a higher capacity to move faster on all cylinders — sales, marketing, technology — without having to staff up a team of 20," Waupsh says.

Kristen Phillips, director of Golden Section Studios, says that for years, Golden Section Technology — and its accompanying venture arm — has worked to develop SaaS technology and has created a large network of experts and mentors — all of whom will be made available to each of GSS's future member companies like Swoovy.

Additionally, Phillips says her team has a lot of lessons learned to share with the companies they will support.

"When you're dealing with early-stage companies, a lot of it just boils down to product-market fit and making sure you're able to develop a technology that's scalable that works with your customers as you scale," Phillips says on the podcast. "It sounds simple, but it's not easily mastered."

Startups also looking for this sort of guidance can learn more online and even apply to the program. In the meantime, GSS and Swoovy alike are focusing on the new technology that can really be a gamechanger for both corporates looking to provide volunteer opportunities as well as nonprofits with a huge need for workers.

"We're just excited to have the SaaS B2B platform coming out with Golden Section Studios and expand on empowering more people through businesses to be able to have access to a tool like this," Waupsh says.

Waupsh and Phillips share more about the their partnership and other major SaaS challenges on the episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.


DocJuris has raised its first round of venture funding to grow its team to keep up with demand for its legal software platform. Image courtesy of DocJuris

Houston B2B software company raises $3.2M in seed funding to grow team and product

money moves

A Houston-based software-as-a-service company that is revolutionizing the contract process has closed a round of funding this week.

DocJuris, founded in 2018, raised $3.2 million in seed funding led by New York-based RTP Seed with additional support from Houston-based Seed Round Capital, California-based Watertower Ventures, Maryland-based Crossbeam, and Remote First Capital.

It's the startup's first round of venture funding and Henal Patel, CEO of DocJuris, says he was looking for funds as well as support from investors who had experience with software and could open doors to new clients for the legal software.

"Our platform is designed to empower legal, sales, and procurement teams and corporations to negotiate and close contracts with greater speed and precision," Patel says. "The underlying mission is to solve the last-mile of contracting."

Henal Patel is CEO of DocJuris. Photo courtesy of DocJuris

The need for funding came at a time of growth, Patel says, as DocJuris was seeing more and more opportunities in light of the pandemic.

"As work has gone more remote, there's a greater need for teams to be able to collaborate on their contracts — instead of sending Word documents over email," he tells InnovationMap.

Within the contract optimization space, Patel says he sees a lot of opportunities for enhancing the experience for lawyers, business owners, contractors, and anyone who has to spend any amount of time on legal papers.

"One of our visions is to — in addition to providing the tactical tools we do to day — revisualize the way that people read contracts," Patel says. "Our platform enables the ability to improve the lives of the people who have to stare at contracts all day."

DocJuris is already hiring for a few positions across sales, customer service, and marketing, and Patel says he will continue to grow his remote team locally.

"We've been remote since before it was cool," Patel says, adding that all but one of his employees is based in Houston. "But we've been locally concentrated in Houston. We're planning on growing our team here in Houston, but keeping the team remote. We believe in Houston."

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."

A Houston founder and small-space expert founded TAXA Outdoors to create better campers than what was in the market. Now, amid the pandemic, he's seen sales skyrocket. Photo courtesy of TAXA Outdoors

Houston startup founded by former NASA architect moves into new space amid booming business

go outside

In 2014 Garrett Finney, a former senior architect at the Habitability Design Center at NASA, brought his expertise in what he describes as "advocating for human presence living in a machine" to the outdoors market.

After being less-than enchanted by the current RV and camper offerings, the Houstonian developed a new series of adventure vehicles that could safely and effectively get its users off-grid — even if still Earth-bound — under the company he dubbed TAXA Outdoors.

The vehicles would follow much of the same standards that Finney worked under at NASA, in which every scenario and square inch would be closely considered in the smartly designed spaces. And rather that designing the habitats for style alone, function and storage space for essential gear took precedence. According to Finney, the habitat was to be considered a form of useful adventure equipment in its own right.

"Ceilings should be useful. They're not just for putting lights on," he says. "Even when there's gravity that's true."

Today TAXA offers four models of what they call "mobile human habitats" that can be towed behind a vehicle and sleep three to four adults, ranging from about $11,000 to $50,000 in price.

TAXA's mobile human habitats range in size and price. Photo courtesy of TAXA Outdoors

And amid the pandemic — where people were looking for a safe way to escape their homes and get outside — the TAXA habitats were flying off the shelves, attracting buyers in Texas, but mainly those in Colorado, California, and other nature-filled areas.

"January, was looking really good — like the break out year. And then the pandemic was a huge red flag all around the world," Finney says. "[But] we and all our potential customers realized that going camping was the bet. They were with their family, they were getting outside, they were achieving sanity having fun and creating memories."

According to TAXA President Divya Brown, the company produced a record 430 habitats in 2020. But it still wasn't enough to match the number of orders coming in.

"We had we had almost a year and a half worth of backlog at the old facility, which we've never experienced before," Brown says.

To keep up with demand, the company moved into a 70,000-square-foot space off of U.S. 290 that now allows multiple operations lines, as well as a showroom for their vehicles and enough room for their staff, which tripled in size from 25 to 75 employees since the onset of the pandemic.

The first priority at the new facility is to make up the backlog they took on in 2020. Next they hope to produce more than 1,000 habitats by the end of 2021 and 3,000 in the coming years.

"It's a pretty significant jump for us," Brown says. "We really believe there's a huge market for this."

With the new facility, the TAXA team hopes to catch up with the explosive sales growth. Photo courtesy of TAXA Outdoors

This Houston venture capital leader is looking at how 2020 — for all its disappointments — might be a great year for B2B software-as-a-service companies. Getty Images

Houston investor: Is this the golden age for B2B software?

Guest column

B2B software as a service, or SaaS, founders entered 2020 riding a wave of the longest economic expansion in United States history. Valuations increased to new highs, funding rounds continued getting larger at each stage, and forecasts went up and to the right fast. But then, March hit.

Quickly and seemingly out of nowhere, headlines became dominated by apocalyptic predictions of death, record levels of unemployment, shocking economic forecasts of GDP contraction, historic mass layoffs and furloughs, and unprecedented multi-trillion dollar economic stimulus packages. For founders every instinct began screaming to cut costs and hunker down.

But should B2B SaaS founders cut their organizations right now? Through analyzing a few key events and looking to the evidence in the market today, founders can develop a strategy for growing during this crisis. Not only is growth cheaper for most B2B SaaS against the backdrop of economic meltdown, but with the majority following a hunker-down instinct, a growing B2B SaaS firm will compare very favorably against a landscape of stale and stagnant competitors.

Reviewing the 1918 Spanish Flu Pandemic and the 2008 downturn

While the health implications vary widely between the current pandemic and the 1918 flu epidemic, the economic reactions share many similarities. The US response to 1918 was just as fractured as the states' reactions to COVID have been this year. As cities and states in 1918 shut down commerce to stem the spread of the flu, economic contraction quickly gave way to rebound, the so called "V-shaped recovery," despite the Spanish Flu having much higher death rates among working individuals than COVID-19.

There are major differences between 1918 and 2020, however. First, there is untapped potential in technology to replace workers. As businesses look for ways to cut costs, expect them to aggressively turn to automation, ultimately depressing real wages. Second, the 1918 response did not include shutdown measures as draconian as those we are experiencing in 2020. This could lead to permanent output loss across a wide range of industries, increasing real prices just as real wages decline. And third, the trillions of dollars in federal economic relief are unlike anything attempted in 1918.

The 2008 downturn that nearly brought the financial sector to a halt rippled through the economy as businesses in a wide range of industries made steep cuts to operations and capital expenditures. Despite this dangerous environment, SaaS firms increased profitability and continued to grow revenues each quarter. Growth slowed but remained positive while most other companies experienced absolute declines in revenue.

Customer acquisition for SaaS businesses usually gets more efficient during downturns, driving the potential for faster growth. The performance of all publicly traded B2B SaaS firms during 2008 illustrated in Figure 1 above proves the resilience of this category during a recession. While revenue continued to grow, profitability rose from a 10 percent loss on average to a 5 percent gain on average by 2010. This is likely due to firms freezing salaries and hiring and perhaps cutting down the sales and marketing budgets.

Downturn case study: Salesforce

Salesforce entered the downturn as a category leader in B2B SaaS with nearly $500M in revenue in 2007 and $3.5 million in operating losses. Throughout 2008, the company grew revenues by 51 percent to $748 million and operating profit surged to $20.3 million. And in 2009, the company repeated this stellar performance by growing revenues 44 percent to $1,077M and operating profit to $63 million. These results occurred against the backdrop of a global financial downturn and with a product focused on helping people sell more effectively (not something one would expect would sell well during a free-fall recession).

The revenue growth throughout those years followed the growth in sales and marketing spend. In 2008, the company grew sales and marketing by 49 percent, driving 51 percent revenue growth at about $1.50 of sales expense per $1 of recognized revenue added. In 2009, the company grew sales and marketing 42 percent resulting in 44 percent revenue growth at $1.63 of sales expense per $1 of recognized revenue. By 2010, the sales growth advantage was gone and Salesforce not only dropped its expense growth rate but also reverted to spending $2.64 per $1 of new revenue added.


Looking at these results Salesforce executed on the growth opportunities in 2008 and 2009 by ramping up sales expenses. The relative cost to acquire customers in 2008 and 2009 compared to 2010 proved significantly cheaper (approximately 40 percent less expensive). When faced with an advantage like that, every founder should charge ahead.

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Dougal Cameron is director of Houston-based Golden Section Venture Capital.

Brittany Barreto wants to expand her DNA dating technology to a B-to-B model and compatibility test — all under a new company called X&Y Technologies. Karla Martin/Pheramor

Houston DNA-based dating app expands brand and plans new ways to use its technology

Love as a science

For over two years, Brittany Barreto has been playing matchmaker with her DNA-based dating app, Pheramor, but now she's ready to take it to the next level.

Pheramor, which sequences users' DNA and datamines their social media activity to determine compatibility, is transforming into becoming a product of a newly formed company called X&Y Technologies. The company, Barreto says, will have multiple products, all relating to using that same DNA technology Pheramor has perfected.

Among the first three products X&Y is working to create is a B-to-B software-as-a-service company, where established dating companies can employ Pheramor's technology for its existing app and customers. Barreto says she has two letters of intent for the B-to-B model, one of which is a dating app with 160,000 users.

Barreto unveiled the new company at The Cannon's female entrepreneur pitch night on January 24, but expanding her technology's reach has been on her mind for a while. She cited major dating companies that have their eyes on DNA dating, but haven't yet figured out the infrastructure. That, she says, is where X&Y's SaaS model comes in.

"Our traction with the dating app was a fantastic way to prove that we are the thought leaders, we have the infrastructure, and we have the algorithm and we've proven that the market is ready to buy a DNA kit to find love," she says in her pitch.

In addition, X&Y will have a compatibility test for couples wishing to learn of their own DNA-based compatibility. The tool, called We Have Chemistry, is getting ready to launch and already has preorders coming in.

"Pheramor's test is really the gold standard and industry leader in this test," she says, explaining how Pheramor's technology can be used by these existing dating apps.

She talked about how this is the time for DNA tests — from 23andme to Pheramor — and how it's not weird to send your spit in the mail. As Barreto says in her pitch, there's so much more potential for uses of the technology in what's called contextualized genetics.

"I know that my technology is way bigger than just this one market," Barreto says. "I believe the future of product is about combining the big data of genomics and DNA with the big data of your digital footprint. Nobody has ever combined your Facebook data with your DNA to figure out what's the best diet, exercise or work environment for you."

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TMC launches cancer-focused partnership with Japan

global collaboration

Houston's Texas Medical Center announced the launch of its new TMC Japan BioBridge and Japan-Accelerator Cancer Therapeutics and Medical Devices, or JACT, this month.

The strategic partnership between Japan-based Mitsui Fudosan Co. Ltd. and the National Cancer Center will focus on advancing cancer treatments and providing a pathway for Japanese innovators to expand in the U.S. market. A delegation from TMC recently visited Tokyo, and William F. McKeon, president and CEO of TMC, signed the TMC Japan BioBridge Memorandum of Understanding with Takeshi Ozane, general manager of Mitsui Fudosan, and Hitoshi Nakagama, president of the National Cancer Center of Japan.

“The launch of TMC Japan BioBridge is a vital step forward in connecting two global leaders in healthcare innovation,” McKeon says in a statement. “Japan’s leadership has demonstrated an impressive commitment to advance medical cures and life sciences technologies and through this partnership, we are opening necessary doors for Japanese researchers and innovators to access the US market and collaborate with our TMC ecosystem. Together, we aim to accelerate critical breakthroughs to make a difference for patients all around the world.”

The new JACT will offer cancer-treatment companies a structured process to prepare for a U.S. expansion and will allow for meetings with pharmaceutical companies, hospital systems and investors and provide insights on U.S. regulatory approvals. It'll focus on three key areas, according to the statement:

  1. Milestone development and financial planning
  2. Clinical and regulatory expertise
  3. Strategic partnerships and market insights

“This TMC Japan BioBridge and JACT Program will enable us to promote the advancement of start-up companies aiming to commercialize innovative medical technologies originating in Japan into the U.S." Nakagama says in a statement. "We also hope this collaboration will not be limited to our (Japan Agency for Medical Research and Development)-supported project, but will lead to further cooperation between TMC, NCC, and other Japanese institutions in various fields.”

This is the sixth international strategic partnership for the TMC. It launched its first BioBridge, which focus on partnerships to support international healthcare companies preparing for U.S. expansion, with the Health Informatics Society of Australia in 2016. It also has BioBridge partnerships with the Netherlands, Ireland, Denmark and the United Kingdom.

Accelerator partners with NBA Foundation to provide Black Houston youth with tech internships

GAME ON & GIVE BACK

DivInc, a Texas-based accelerator focused on uplifting people of color and women founders, is collaborating with the NBA Foundation to provide Black Houston youth with paid internships at tech startups.

Leveraging its expansive portfolio of startups, DivInc will pair 25 Houston-based undergraduate and graduate students (ages 18 to 24) with tech companies the nonprofit has mentored. The 10-week internship program will provide students with professional development workshops and firsthand entrepreneurial experiences. The program also ensures a symbiotic relationship as the startups’ founders gain access to an expanded talent pool and further development opportunities via DivInc.

"We are thrilled to partner with the NBA Foundation to bring this transformative opportunity to life," says Ashley DeWalt, managing director of DivInc. "Together, we are bridging the gap between talent and opportunity, creating meaningful experiences that empower Black youth to lead in their communities and beyond."

In 2024, DivInc connected 30 students with paid internships at 13 companies as part of a program sponsored by Blackstone Launchpad. Students gained hands-on experience in marketing, product development, and web development.

DivInc previously partnered with the Houston Rockets, among other sports teams, for mentorship opportunities during its 2024 Sports Tech Accelerator. DivInc’s portfolio of startups incorporates a range of sports tech companies including a fitness app, NFT marketplace for athletes, an AR/VR learning platform for athletes, and other technologies geared towards improving athletic performance.

Since its inception in 2020, the NBA Foundation has disbursed nearly $125 million in grants to nonprofits, focused on increasing career opportunities and economic equality for Black youth.

“Providing grants to organizations in communities that need it most is one of the most fulfilling aspects of the NBA Foundation’s mission to create economic opportunity for Black youth,” Ruth Jurgensen, executive director of the NBA Foundation, says in a statement.

Houston students can apply for the internship program here. Applications are due by January 31, 2025.

3 Houston innovators to know this week

who's who

Editor's note: Every week, I introduce you to a handful of Houston innovators to know recently making headlines with news of innovative technology, investment activity, and more. This week's batch includes three innovators across Houston's energy transition.

Bobby Tudor, board chair of Greentown Labs

Greentown Labs, a climatetech incubator with locations in the Houston and Boston areas, has announced it has received $4 million in funding from both of the Houston and Massachusetts locations. Houston investors included Bobby Tudor, CEO of Artemis Energy Partners and chairman of the Houston Energy Transition Initiative, who also joins the organization as board chair.

“The challenges of the energy transition are immense, and the role played by technology incubators like Greentown Labs is essential,” Tudor says in a news release. “We believe this role, which is a partnership between academia, industry, philanthropists, entrepreneurs, and governments, is the best way to get to effective, scalable solutions in a time frame that the urgency of the challenge requires. We need all hands on deck, and this partnership between Massachusetts and Texas can be a role model for others.” Read more.

Tim Latimer, CEO and co-founder of Fervo Energy

Tim Latimer of Fervo Energy has raised additional funding. Photo courtesy of Fervo Energy

A Houston company that's responding to rising energy demand by harnessing geothermal energy through its technology has again secured millions in funding. The deal brings Fervo's total funding secured this year to around $600 million.

Fervo Energy announced that it has raised $255 million in new funding and capital availability. The $135 million corporate equity round was led by Capricorn’s Technology Impact Fund II. The funding will go toward supporting Fervo's ongoing and future geothermal projects.

“The demand for 24/7 carbon-free energy is at an all-time high, and Fervo is one of the only companies building large projects that will come online before the end of the decade,” Fervo CEO and Co-Founder Tim Latimer says in a news release. “Investors recognize that Fervo’s ability to get to scale quickly is vital in an evolving market that is seeing unprecedented energy demand from AI and other sources.” Read more.

Casey Brown, executive director of Evolve Houston

Casey Brown and his team at Evolve Houston have rolled out a new program. Photo courtesy

The innovative METRO microtransit program will be expanding to the downtown area, the Metropolitan Transit Authority of Harris County announced.

The program started in June 2023 when the city’s nonprofit Evolve Houston partnered with the for-profit Ryde company to offer free shuttle service to residents of Second and Third Ward. The shuttles are all-electric and take riders to bus stops, medical buildings, and grocery stores. Essentially, it works as a traditional ride-share service but focuses on multiple passengers in areas where bus access may involve hazards or other obstacles. Riders access the system through the Ride Circuit app.

“Our microtransit service is a game-changer for connecting people, and we are thrilled to launch it in downtown Houston,” said Evolve executive director Casey Brown. “The all-electric, on-demand service complements METRO’s existing fixed-route systems while offering a new solution for short trips. This launch marks an important milestone for our service, and we look forward to introducing additional zones in the new year — improving access to public transit and local destinations.” Read more.

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