Kahuna CEO Jai Shah shares how he plans on deploying the $21 million his Houston company just raised. Photo courtesy of Kahuna

With a recent $21 million series B funding round set to fuel more growth and expand an impressive client roster, Kahuna Workforce Solutions is riding a big wave into 2024.

CEO Jai Shah tells InnovationMap that the Houston skills management software service company’s Hawaiian name captures their style.

“Kahuna is that kind of expert, competent leader in a tribe or family,” Jai says. “That’s all because we had this concept of really wanting to be providing a very..family-oriented consulting approach. Treat our customers like family, and with respect, love and really just try and deliver on that promise.”

For Shah, Kahuna represents a natural progression, and grew out of his first startup, Hula Partners, a Houston consulting company acquired by GP Strategies Corp. in 2017.

Shah says his initial work in human resource technology transformation for energy giants like Marathon Oil exposed the poor functionality of HR software, especially for employees. The very technology that has revolutionized the workplace has often not met the needs of many American workers, even as they face more demands on their time.

“We saw a need in the marketplace, relative to the consulting, where technology really wasn’t filling the gap,” says Shah, who now lives in San Diego.

Kahuna’s skills management software service bridges that gap, enabling employees train and grow within their field, and employers to track and monitor their progress in key competencies.

Whether it’s a nurse assessing a patient, or a worker turning a wrench properly on an oil rig, employers observe those skills and record them in Kahuna’s software.

“What Kahuna does, is give the organization a lot more confidence in their ability to have these workers do their jobs,” Shah says.

Those frontline workers drive the company’s ethos. “That workforce is super key to the economy, and it’s really been undeserved by technology for many years. That’s why we exist,” says Shah.

Kahuna caught the attention of Baltimore, Maryland-based Resolve Growth Partners, which chose Kahuna as the first investment in their second funding group with the series B. Kahuna’s series A funding came from venture capital group Houston Ventures.

Chip Davis, of Houston Ventures, who remains a key figure in Kahuna, says he experienced his “Eureka moment” when he saw how Kahuna could solve a problem that he witnessed firsthand in another company. He had another investment client in the oil industry, that had tons of data, but didn’t know what to do with it. He saw that Kahuna provides a way.

“The type of data that Kahuna developed, is not easy to develop,” Davis says. “It knows not that just that you went to college; it knows how well you did, and it knows how well you’re doing now, and it knows why you’re doing well now."

Shah says Kahuna’s ability to leverage that granular data sets the company apart from other HR applications. And that technology may even extend to the future workforce.

Memorial Hermann, a new customer, is in discussions with Kahuna to implement its software early in the journey for nursing candidates, in secondary education curriculum.

Students as young as seventh grade who aspire to a nursing career, could use Kahuna software to find out what skills they’ll need, and keep

Shah says the funds from Resolve, divided in two tranches, will help grow his staff of 50 employees by 30 percent. He also says he plans three or four major initiatives in product development, such as artificial intelligence and machine learning and developing new software modules.

The company will remain headquartered at its Houston office on upper Kirby, but plans are underway to expand operations in about a year into Northern Europe, where many energy clients do business.

Kahuna will maintain growth with a laser focus on frontline workers, Shah says, and solidify its position as a category leader in the energy, manufacturing, and health care verticals.

“A lot of these companies are being challenged in more technically tough environments,” he says. “We’re drilling for oil in deeper and deeper ocean centers. Nurses are asked to do more these days than they were five years ago, or 10 years ago.”

Kahuna’s move upmarket may bring challenges common to companies making that same progression, with a more sophisticated buying process and the scrutiny that comes with it.

“An upmarket customer wants to know how you can support them. They’re going to examine you, in a way you’re not used to being examined,” Davis says.

Houston-based LiquidFrameworks has been acquired by San Francisco-based Luminate Capital. Pexels

Houston startup exits to Bay Area private equity firm

Grand exit

A Houston startup has entered a deal with a San Francisco-based private equity firm, the companies announced on January 10. LiquidFrameworks, which provides cloud-based, mobile field operations management solutions to oil and gas, environmental, and industrial service companies, is now operating under Luminate Capital following the acquisition.

While not all the terms of the deal have been disclosed, Chip Davis, managing partner at Houston Ventures, says the transaction exceeded $50 million of PE investment from Luminate Capital. HV has been involved with LiquidFrameworks since 2012 and has invested a cumulative $6 million, Davis says, and brought in the company's current CEO and head of sales — both of who are still a part of the company's team.

"When we got involved, it was a very small company," says Davis. "As of today, it has enterprise customers of some of the largest oilfield services companies in the world."

According to the release, Hollie Haynes, Mark Pierce, and Sanjay Palakshappa from Luminate have joined the LiquidFrameworks board of directors. The PE fund's investment is a part of the recently closed $425 million Fund II.

"For over a decade, we have served field services companies by reducing revenue leakage, shortening cash collection cycles, and increasing overall operational efficiencies. We have streamlined the day-to-day operations for field services professionals and increased transparency across organizations by transforming previously paper- or excel-based workflows," says Travis Parigi, founder and COO of LiquidFrameworks, in the release.

"With a partner like Luminate Capital, we will continue to invest and develop product capabilities to better serve field services industries that have previously been overlooked by software innovation."

One of LiquidFrameworks' tools is FieldFX, which enhances companies' data accuracy and accelerates revenue capture and cash flow.

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Houston quantum energy chip startup emerges from stealth with $12M round

seed funding

Houston-based Casimir has emerged from stealth with a $12 million seed round to commercialize its quantum energy chip.

The round was led by Austin-based Scout Ventures. Lavrock Ventures, Cottonwood Technology, Capital Factory, American Deep Tech, and Tim Draper of Draper Associates also participated in the round. The oversubscribed round exceeded the company’s original $8 million target, according to a news release.

Casimir’s semiconductor chips can generate power from quantum vacuum fields without the need for batteries or charging. The company plans to commercialize its first-generation MicroSparc chip by 2028.

The MicroSparc chip measures 5 millimeters by 5 millimeters and is designed to produce 1.5 volts at 25 microamps, comparable to a small rechargeable battery, without degradation and no replacement cycle.

“Casimir represents exactly the kind of breakthrough dual-use technology Scout Ventures was built to back,” Brad Harrison, founder and managing partner at Scout Ventures, said in the release. “This is based on 100 years of science and we’re finally approaching a commercial product … We’re proud to lead this round and support Casimir’s journey from applied science to deployed technology.”

Casimir says it aims to scale its technology across the ”full power spectrum,” including large-scale energy systems that can power homes, commercial infrastructures and electric vehicles.

Casimir's scientific work has been supported by DARPA-funded nanofabrication research and its technology was incubated at the Limitless Space Institute (LSI). LSI is a nonprofit that works to innovate interstellar travel and was founded by Kam Ghaffarian. Technology investor and serial entrepreneur Ghaffarian has been behind companies like X-energy, Intuitive Machines, Axiom Space and Quantum Space.

Harold “Sonny” White, founder and CEO of Casimir, believes the technology can power devices for years without replacements.

“Millions of devices will operate for years without a battery ever needing to be replaced or recharged because we have engineered a customized Casimir cavity into hardware capable of producing persistent electrical power,” White added in the release. “I spent nearly two decades at NASA studying how we power humanity’s future. That work led me to the Casimir effect and the quantum vacuum, where new tools have allowed us to build on a century of scientific knowledge and bring abundant power to the world.”

Houston-based Fervo Energy bumps up IPO target to $1.82 billion

IPO update

Houston-based geothermal power company Fervo Energy is now eyeing an IPO that would raise $1.75 billion to $1.82 billion, up from the previous target of $1.33 billion.

In paperwork filed Monday, May 11 with the U.S. Securities and Exchange Commission, Fervo says it plans to sell 70 million shares of Class A common stock at $25 to $26 per share.

In addition, Fervo expects to grant underwriters 30-day options to buy up to 8.33 million additional shares of Class A common stock. This could raise nearly $200 million.

When it announced the IPO on May 4, Fervo aimed to sell 55.56 million shares at $21 to $24 per share, which would have raised $1.17 billion to $1.33 billion. The initial valuation target was $6.5 billion.

A date for the IPO hasn’t been scheduled. Fervo’s stock will be listed on Nasdaq under the ticker symbol FRVO.

Fervo, founded in 2017, has attracted about $1.5 billion in funding from investors such as Bill Gates-founded Breakthrough Energy Ventures, Google, Mitsubishi Heavy Industries, Devon Energy (which is moving its headquarters to Houston), Tesla co-founder JB Straubel, CalSTRS, Liberty Mutual Investments, AllianceBernstein, JPMorgan, Bank of America and Sumitomo Mitsui Trust Bank.

Fervo’s marquee project is Cape Station in Beaver County, Utah, the world’s largest EGS (enhanced geothermal system) project. The first phase will deliver 100 megawatts of baseload clean power, with the second phase adding another 400 megawatts. The site can accommodate 2 gigawatts of geothermal energy. Fervo holds more than 595,000 leased acres for potential expansion.

Cape Station has secured power purchase agreements for the entire 500-megawatt capacity. Customers include Houston-based Shell Energy North America and Southern California Edison.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.