3 Houston innovators to know this week

who's who

This week's roundup of Houston innovators includes Scott Schneider of HTX Labs, Adrienne Mangual of The Artemis Fund, and Derrick Morse of Rugged Robotics. Courtesy photos

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

Scott Schneider, CEO and founder of HTX Labs

Scott Schneider of HTX Labs joins the Houston Innovators Podcast to discuss how his VR software is helping to train Department of Defense pilots. Photo via htxlabs.com

Over the past few years, HTX Labs — a software development startup focusing on enterprise virtual reality training software — has tripled its team and is looking to hire another 20 people to support its growth — specifically looking for sales, business development, and operational positions. All this growth is to support its work with the military, which makes up about 95 percent of the startup's focus now, says Scott Schneider, CEO and founder, on last week's Houston Innovators Podcast episode.

"In 2021, we were all about building capability and building our platform," Schneider says, "and 2022 is all about adoption. It's a land grab out there for doing what we're doing. We're trying to drive adoption within the government and outside in the commercial and private sector."

Schneider shares more on what he's focused on this year and how HTX Labs has grown alongside the Houston innovation ecosystem on the podcast episode. Click here to listen to the episode and read more.

Adrienne Mangual, vice president of finance and operations at The Artemis Fund

Adrienne Mangual has a background in finance and consulting. Photo courtesy of Artemis

The Artemis Fund is celebrating a new member of its small, but mighty team focused on funding female founders within fintech, e-commerce tech, and care-tech.

Adrienne Mangual is the new vice president of finance and operations at the firm. She has her MBA from Rice University and has worked for 15 years in finance roles at J.P. Morgan and Key Energy Services. Over the past few years, she's worked in consulting positions with startups and technology.

"This is an exciting time to join The Artemis Fund as the fund is growing and our reach is expanding and continuing to make an impact on female founders," Mangual tells InnovationMap. "I am looking forward to supporting existing and future female founders and working with Diana, Stephanie, and Leslie as part of the team making investment decisions for the fund." Click here to read more recent new hires in Houston tech.

Derrick Morse, CEO and co-founder of Rugged Robotics

Rugged Robotics has created a solution that provides construction customers with an automated layout-as-a-service tool. Image via LinkedIn

Rugged Robotics, a Houston-based robotics startup working in the commercial construction field, has closed its latest round of funding. The $9.4 million series A round was led by BOLD Capital Partners and Brick & Mortar Ventures.

“We’re building better,” says Morse, who serves as CEO, in the release. “We set out to modernize the construction industry, and to build practical solutions that solve the pain points contractors struggle with every day. We believe that layout is the ideal starting point. Layout is the beachhead for construction automation. It sits at the intersection of the digital and physical world, solves a huge problem, and unlocks the ability to deploy robotics onto job sites in a very meaningful way.” Click here to read more.

The tech solution provides construction customers with an automated layout-as-a-service tool. Image via rugged-robotics.com

Houston-based construction robotics startup raises $9.4M series A

money moves

A Houston robotics startup working in the commercial construction field has closed its latest round of funding.

Rugged Robotics Inc. announced last week that it's raised $9.4 million in its series A round led by BOLD Capital Partners and Brick & Mortar Ventures. Riot Ventures, Morpheus, and Embark — all investors in the company's 2019 seed round — also contributed, as did Consigli Construction Company and Suffolk Technologies. To date, Rugged Robotics has raised $12 million.

“We are thrilled to be part of the Rugged team,” says Maxx Bricklin, partner at BOLD Capital, in a news release. “We looked at a number of companies in the space and became convinced that the Rugged team, technology and partner ecosystem would allow Rugged to dominate and capitalize on this significant and disruptive market opportunity.”

The fresh capital, the company shares in the release, will go toward scaling operations, expanding offerings, and continuing research and development.

Founded in 2018 by construction industry veteran Derrick Morse and former NASA engineer Logan Farrell, Rugged Robotics's Mark 1 product is modernizing the construction industry. The robot addresses challenges of field layout with a “layout Roomba” that marks architectural and engineering designs directly onto unfinished concrete floors. The company's early customers include Consigli Construction Co, Suffolk Construction, and Brasfield & Gorrie.

“When Derrick and Logan first visited our office, they clearly understood the problems we face and immediately separated themselves from typical technology startups. Their focus on solving real-world problems resonates with us, and we jumped at the opportunity to engage with them,” says Mike Haseltine, vice president and head of operations at Consigli. “Seeing their robots, their layouts, and their impact is inspiring. They’ve built something that’s going to change how we build buildings.”

While the concept of an autonomous layout solution isn't new, the Rugged Robotics approach is different from the industry standard in that it has a self-contained system that "enables multi-rover deployments, one-time set-ups that span an entire floor, and print zones that extend around and behind obstructions like columns, stairs, and elevators," per the news release. The company offers its customers the technology as a layout-as-a-service model.

The company is growing its team, which has included the onboarding of Mason Markee, the former director of mechanical engineering of Auris Health, who joined Rugged Robotics as vice president of engineering. Prior to Auris, Markee spent eight years at NASA as a robotics engineer.

“Mason has 15 years of years of robotics experience," says Farrell, the company's CTO, in the release. "I knew him at NASA, and we’re delighted to have him onboard at Rugged. He brings tremendous experience to the table. He is familiar with the entire product life cycle, from concept generation to final commercial production. He’s seen scale, and we’re excited by the rapid growth his technical expertise and leadership experience enables.”

The company has five engineering positions listed on LinkedIn.

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Elon Musk's SpaceX is about to make its debut on Wall Street

Money Moves

Elon Musk's rocket company SpaceX will make its debut on Wall Street Friday, June 12, and both institutional and retail investors are expected to gobble up the 555.6 million shares going up for sale at $135 apiece. Musk, already the world's richest man, could become its first trillionaire.

SpaceX is likely to become the biggest IPO ever, with proceeds of around $75 billion. SpaceX hopes to become the first company to send people to Mars. In fact, part of Musk’s future compensation depends on SpaceX eventually establishing a colony of at least 1 million people on the red planet.

Why SpaceX is going public now

In a video conference on Musk's social media platform X, he told JPMorgan CEO Jamie Dimon that people have suggested for the last 10 years that he take SpaceX public. He's doing it now because the company plans to put 100,000 next-generation Starlink satellites into orbit. Deploying AI data centers in space is a “massive new growth base and you need capital for that,” he said.

Going public provides access to the capital that SpaceX needs. But it also exposes it to more scrutiny from shareholders and more regulatory oversight. That includes filing quarterly financial reports, which critics say incentivizes short-term thinking over longer-term planning and creates unnecessary costs for a company. Securities regulators are currently soliciting public comment on a proposal to require public companies to file the financial reports only twice every year.

How the IPO impacts the company

Musk will hold the majority of a special class of shares, giving him control over decisions related to company strategy, finances and personnel. On the latter, because of his ownership of most of these Class B shares, the only person who can fire Musk as CEO is Musk.

The company credits Musk with being the “driving force” behind its growth, innovation and success. But what happens if Musk is no longer in the picture? SpaceX warns that the loss of Musk could disrupt its ability to execute its strategy as well as hurt its “reputation and relationships with customers, partners and other stakeholders.”

The company also warns that finding a replacement with the same skills and experience as Musk would be time-consuming, if not nearly impossible. As Wedbush Securities analyst Dan Ives wrote Wednesday, “At the end of the day Musk is SpaceX and SpaceX is Musk.”

What could make or break SpaceX

Currently in the test phase, the gigantic reusable Starship rocket is key to SpaceX realizing Musk's ambitions. Much of the commercial space business hinges on SpaceX developing Starship’s capability to be fully reusable and hearty enough for a quick turnaround between flights. If that doesn't happen, SpaceX warns that putting data centers and satellites in space will take longer and cost more money, meaning it risks customers bailing on the company.

Analysts say that by pioneering reusable rockets, SpaceX has established a clear lead on competitors such as Blue Origin, led by Amazon founder Jeff Bezos. The Starlink satellite business competes with, among others, AST SpaceMobile – which is relying on a SpaceX rocket to send its latest generation of satellites into orbit next week.

The prospectus filed last week says SpaceX’s biggest potential market is the sale of business-oriented artificial intelligence products designed to transform how people get work done. It’s an opportunity SpaceX predicts would be worth $22.7 trillion if it could somehow dominate rivals like Anthropic, OpenAI and Microsoft in a highly competitive industry. But the prospectus shows no clear path to profitability for the xAI business, which merged with SpaceX earlier this year.

Why Wall Street is paying attention

If the SpaceX IPO is as successful, the stock could quickly join the Nasdaq 100, a widely followed index that tracks the 100 largest non-financial companies in the composite. That's important because some popular funds, such as the $460 billion QQQ exchange-traded fund, mimic the index and will automatically buy whatever is listed in the index.

Nasdaq recently changed its rules to allow select companies to enter the Nasdaq 100 after just 15 trading days.

S&P Dow Jones Indices, on the other hand, is sticking to established and more traditional thresholds that will not allow SpaceX or other companies with gargantuan IPOs faster entry into its S&P 500 index. That means even high-profile companies will still need to wait for their stocks to trade a full 12 months before they can enter the index.

Companies want to be in the S&P 500 in particular because it's arguably the most important index on Wall Street, with trillions of dollars either mimicking it exactly or benchmarked against it. Vanguard's VOO fund that tracks the S&P 500 has roughly $950 billion invested in it, for example.

NASA unveils Artemis III astronauts at Johnson Space Center in Houston

To the moon

NASA on Tuesday, June 9, revealed the crew for its Artemis III mission, the next step in the space agency's plan to eventually land astronauts on the moon.

The announcement came two months after Artemis II's record-breaking trip around the moon that surpassed the distance record of Apollo 13.

NASA's Randy Bresnik, Frank Rubio, Andre Douglas and the European Space Agency's Luca Parmitano won't fly to the moon or land on the surface. Instead, they’ll orbit Earth while practicing docking their Orion capsule with two lunar landers.

“To the Artemis III crew, we wish you Godspeed on the journey ahead,” said NASA administrator Jared Isaacman.

Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin are racing to deliver the lunar landers. The two-week demo is targeted for 2027. Blue Origin suffered a recent setback when its massive rocket exploded during an engine-firing test on the launch pad in Florida, shaking nearby homes and illuminating the sky with an orange fireball.

NASA's Jeremy Parsons said the setback is a learning opportunity and that the space agency is confident Blue Origin's rocket will be ready in time.

NASA's Artemis program aims to return astronauts to the moon's surface for the first time since the 1970s. A recent revamp of the program announced by Isaacman aims to fast-track it similarly to the Apollo era, adding the upcoming spaceflight around Earth before eyeing a lunar landing in 2028.

“We are certainly humbled as a crew to be able to be your crew that executes this Artemis III mission in space,” said Bresnik, Artemis III commander.

Added Douglas, mission specialist: “My brain — it is going a mile a minute right now. But my heart, it is so warm. It is so full."

In May, NASA awarded hundreds of millions of dollars in contracts to four companies, including Blue Origin, to build landers, rovers and drones for a future moon base. Isaacman said the goal of the moon base is to lay the foundation for a Mars expedition.

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