Houston-based Tachyus closed a $15 million Series B round. Photo courtesy of Thomas Miller/Breitling Energy

It's pay day for Houston-based Tachyus. the data-driven software company has closed its Series B fundraising round at $15 million. The round was led by Houston-based Cottonwood Venture Partners, a private equity firm that funds companies using technology to solve problems within the energy industry.

Tachyus was founded in 2013 in Silicon Valley and recently relocated to Houston. The fresh funds will go into growing its cloud-based, artificial intelligence-enabled platform.

"In this economic environment, oil and gas operators need disruptive tools to optimize their fields," Tachyus CEO and co-founder, Paul Orland, says in a release. "This investment allows us to reach more customers and accelerate the delivery of new technology that improves our clients' business performance."

The company has already grown its client base and has customers in Argentina, Europe, and Asia. Tachyus joins several other tech-focused energy startups in CVP's portfolio, including Ambyint, Novi Labs, and SitePro. Houston-based Tudor, Pickering, Holt & Co. served Tachyus as its financial adviser.

"As the oil and gas industry evolves in the face of new commercial challenges, operators need to focus on getting the best performance from their assets, and Tachyus' technology has a track record of doing just that," says Jeremy Arendt, managing partner of CVP, in the release. "We are excited to partner with the Tachyus team to expand their reach and empower customers to optimize production across their fields."

Tachyus closed its last round in 2016 with a $4 million investment from Primwest, according to CrunchBase. Before that, the company had raised several million.

Last year, the startup restructured its C-suite. Tachyus co-founder Dakin Sloss transitioned from CEO to chairman, and Orland, who was previously CTO, took the reins, according to a release.

Paul Orland is CEO of Tachyus. Photo via tachyus.com

The Agora track of CERAWeek focuses on all things innovation in energy, from panels to pods and even "houses" like the one pictured. CERAWeek/Facebook

5 can't-miss innovation events at CERAWeek featuring Houston speakers

Agora track

Hundreds of energy experts, C-level executives, diplomats, members of royal families, and more are descending upon Houston for the 2019 CERAWeek by IHS Markit. For the second year, the conference will have its Agora track, focused on innovation within the energy sector. The Agora track's events — thought-provoking panels, intimate pods, and corporate-hosted "houses" — will take place in various locations in the George R. Brown Convention Center.

Undoubtedly, many of the panels will have Houston representatives considering Houston's dominance in the industry, but here are five innovation-focused events you can't miss during CERAWeek that feature Houstonians.

March 11: Oil & Gas: Realizing value from digital transformation

In oil and gas, money talks, but justifying the value of integrating new technology or devices can be tricky and hard to navigate. Houston-based Justin Rounce of TechnipFMC and Michelle Pfluger of Chevron Corp. are among the panelists who will attempt to shed light on best practices and new ways of thinking.

Catch the panel at 4:30 pm on Monday, March 11. Learn more.

March 12: Sea Change: Autonomy, automation, offshore & the ocean

Offshore oil and gas rigs are a hotbed for new innovations and technologies — especially when it comes to automation. Two Houstonians join the panel that will discuss emerging tech in offshore E&P — Diana Grauer, TechnipFMC director, External Technology Engagement – North America, and Nicolaus Radford, Houston Mechatronics chief technology officer.

The event takes place at 9:15 am on Tuesday, March 12. Learn more.

March 12: Digital Ledgers: Oil & gas supply chain

Let's talk blockchain integration in oil and gas. The technology has a lot of potential in several aspects of the supply chain, but this panel — which features Andrew Bruce of Houston-based Data Gumbo — will weigh the pros and cons of the technology as well as go over the initial results of early adaptors.

The discussion begins on Tuesday, March 12, at 2.45 pm. Learn more.

March 12: Models of Innovation: Today & tomorrow

Inarguably, the energy's innovation ecosystem differs from that of other industries, but to what end? A panel of professionals — including Houston-based Chevron Technology Ventures President Barbara Burger — will debate the challenges within innovation in energy, innovative corporations, and the best strategies moving forward.

The panel is on Tuesday, March 12, at 2.45 pm. Learn more.

March 14: Urban Resilience in a Changing Climate

You can't have an energy-focused conference without addressing the elephant in the room that is climate change, and Houston-based Sunova CEO John Berger and City of Houston Chief Sustainability Officer Lara Cottingham are the right people to do it.

The panel will take place on Thursday, March 14, at 10:30 am. Learn more.

Can't-miss pods

While panels focus on a challenging topic of discussion, the Agora Pods are platforms for companies to showcase new tech or developments or present their successes. Here are some pods hosted by Houston companies you shouldn't miss.

Penrose's advance process control software can increase production by 10 to 15 percent in downstream oil and gas refineries. Pexels

Houston oil and gas software company is increasing downstream productivity while lowering emissions

Efficient energy

In the next 30 years, the world will need 30 percent more energy due to population growth. While energy production will increase to keep up with demand, there is an increasing concern with the impact on the environment.

"How do you produce more energy without emission increases or more air quality pollution?" asks Erdin Guma, CFO of Penrose Technologies.

According to Guma, Penrose is uniquely well-suited to solve these serious challenges with its advanced process control technology increases the productivity of a chemical plant or refinery by 10 to 15 percent. The increase in productivity means the plants use less fuel to produce the energy. The plant then releases fewer emissions while producing the same amount of energy.

The technology itself is an automation software — similar to autonomous software on a plane. The autonomous operation increases downstream productivity, which brings about the energy efficiency.

"Our autopilot software (like a human operator) can manage and foresee any unexpected disturbances in the plant," Guma explains. "The achievements that the Penrose technology has brought about seemed impossible to chemical and process engineers in the refinery space a few years ago."

Penrose recently signed its first project with one of the biggest downstream firms in the world. With a network of refineries and petrochemical plants around the world, this contract could lead to a global roll out of the Penrose technology.

A ground-breaking technology for O&G
The word "Penrose" is taken from a penrose triangle, an impossible geometrical object. Guma explained that the energy efficiency brought about from their software seemed impossible at first. Penrose has been able to reduce emissions inside plants and refineries by 15 to 20 percent while keeping production at the same level.

In 2007, a chief engineer working at a major oil and gas processing plant in Houston procured the technology for one of his plants. When the engineer saw how well the technology worked, he founded Penrose Technologies in 2017 with Tom Senyard, CTO at Penrose, who originally developed the technology.

After starting the company at the end of 2007, Penrose joined Station Houston. Guma said that by becoming a member, Penrose was able to plug into a large refining and petrochemical network.

"Penrose Technologies is completely self-financed. We worked with [Station Houston] as we finalized the software to find out what potential customers thought of the product. For us, Station Houston has been a great sounding board to potential investors in the company," Guma says.

Guma also explained that while there has been an uptick in innovation in the last few years, the refining and petrochemical business is traditional a slow mover in the uptake of innovation.

"I think more major oil and gas firms are becoming attune to startups and the innovation solutions they offer," Guma says.

He went on to explain that the biggest challenge Penrose faces is perception. Since the software allows plant operators and engineers at the plant to be hands off in the processes, there is a concern with reliability. For industry insiders, any viable product must be reliable even when process conditions at the plant change, which can happen often.

"The Penrose software is maximum hand off control from operators, and the reliability of our software gives us a huge edge in other competing products that can be unreliable," Guma says.

Future growth on a global market
Given the pressing need for more environmentally sustainable energy production, new technology will be adopted in the oil and gas energy. As Guma explains it, there will be no way to continue producing energy as it's been produced for decades because the negative effects of air pollution and emissions will be too severe — particularly in the areas where refineries operate.

"We see the global market for this type of technology as severely underserved," Guma says. "It's a big and sizable market, and I think we can reach a $2 to $3 billion valuation in the next five years."

With a core team of six employees in Houston, Penrose's software is now commercially available, and the company is in full growth mode at this point. The software can be distributed directly to customers, but they are working to develop distribution with major engineering companies as well.

Guma is grateful to be in an environment conducive to energy start-ups. He sees Houston as a major advantage given its proximity to the energy sector.

"No technology rises up in a vacuum. Any new technology needs a good ecosystem to come from," says Guma. "Houston was that ecosystem for Penrose."

From a new energy tech accelerator to an oil and gas podcasts, these three entrepreneurs have some names to remember. Courtesy photos

3 Houston energy tech innovators to know this week

Who's who

While Houston has historically been known as an oil and gas town, it's been slow on the uptake for being known for its energy tech — something these three entrepreneurs are looking to change. From a new energy startup accelerator to an oil and gas podcast, these three energy tech innovators are ones to know this week.

Jacob Corley and Collin McClelland, co-hosts of the Oil and Gas Startups Podcast

Courtesy of Oil and Gas Startups Podcast

Despite having experience in the oil and gas field and in entrepreneurship, Jacob Corley and Collin McClelland learn something new each episode of the Oil and Gas Startups Podcast. The show has seen surprising success to the duo and has been attracting around a thousand new listeners each week.

"You think thing not many people would listen to a podcast that's so focused on something they do for their job, but that's completely wrong," Corley says.

The primary goal for the pair is to share the stories of entrepreneurs who are revolutionizing an industry that tends to be known as a slow adaptor or conservative. Great startups exist here in Houston, and McClelland and Corley want to tell you about them.

"We kind of wanted to bridge the gap between Silicon Valley and oil and gas and show the world what was going on in the industry — and specifically in Houston," McLelland says. Click here to read more.

Patrick Lewis, managing partner of BBL Ventures

Patrick Lewis has worked for years trying to rethink how energy companies and private equity interact with startups. Startups have trouble proving themselves to big oil and gas companies and private equity things energy tech is more trouble than its worth.

"Energy tech is a grossly underfunded industry. Venture capitalists hate it — the hyper cyclical industry, extremely long sales cycles, slow adopters — but that creates opportunities," Lewis says.

But Lewis, managing partner of BBL Ventures, has created a software that tracks oil companies' pain points and then allows him to tap startups that are solving those issues. Now, with BBL Labs, Lewis and his team will help to accelerate these energy tech startups into the market. Click here to read more.

The Oil and Gas Startups Podcast talks to local entrepreneurs who are shaking up the industry. Pexels

Growing Houston podcast is bridging the gap between energy and tech

On air

Collin McLelland and Jacob Corley want you to know that Houston has a whole lot of innovation in the oil and gas industry, and they want to tell you about it.

The two energy professionals launched the Oil and Gas Startups Podcast a few months ago to talk to energy entrepreneurs about oil and gas technology, leadership, and innovation.

"Jake and I really had a mission to shine a light on the oil and gas industry and what was happening in the technology and startup space," McLelland says. "There's a lot of exciting things going on, but not really a medium of content to see it."

The duo interviews a leader or founder of an energy startup — notable ones include Data Gumbo, Blue Bear Capital, and OAG Analytics — on an almost-weekly basis. Corley says he can tell the podcasts are helpful to listeners, because he and McLelland are learning a lot themselves.

"The conversations we have are genuine and authentic. The questions we ask are real," Corley says. "When we schedule something with someone, we purposely try to find out just enough about them to find out if we'll have a good episode with them."

Along with their sincere questioning, the hosts also bring a diversity in industry to the table.

"Collin is the guy who grew up in the field, and I have more of the tech background," Corley says. "From that standpoint, we really compliment each other."

While still new, the podcast has seen a lot of growth — about 1,000 new listeners each week over the past couple weeks — which is surprising to the two hosts since the topic is niche and professional.

"You think thing not many people would listen to a podcast that's so focused on something they do for their job, but that's completely wrong," Corley says.

McLelland says they've seen a shift in the industry. What's been known as a siloed, traditional field is being upended by new technology being introduced into oil and gas companies. A downturn resulted in a need for efficiency and a younger senior-level leadership — that's what's changed in the business, McLelland says, and that's why the podcast is here to document.

"To see the amount of traction the podcast has gotten within oil and gas really validates where the industry is going," McLelland says.

The two want to keep doing what they're doing when it comes to the podcast, while expanding into other media. They've launched a YouTube channel, and are working on regular content for a blog.

"We kind of wanted to bridge the gap between Silicon Valley and oil and gas and show the world what was going on in the industry — and specifically in Houston," McLelland says.


Collin McLelland (right) and Jacob Corley are the hosts of Oil and Gas Startups Podcast.

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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Innovative Houston chemicals manufacturing platform provider raises $40M series A

money moves

Houston-based Mstack, whose platform helps manufacturers source specialty chemicals, has raised $40 million in a series A funding round.

Lightspeed Venture Partners and Alpha Wave Incubation led the round, which includes a debt facility from HSBC Innovation Banking and money from several angel investors.

In a news release, Mstack says the infusion of cash will enable it to “double down on its mission to disrupt a historically flawed supply chain for specialty chemicals.”

This “doubling down” will include expansion of Mstack’s footprint in the U.S., Middle East, Latin America, and Asia.

“Geopolitical dynamics pose risks for supply chain disruptions in the global specialty chemicals market,” Bejul Somaia, a partner at Lightspeed, says in a news release.

“With demand for these chemicals growing rapidly, there is a need to increase R&D investments and unlock new pockets of supply,” he adds. “As the first institutional investor in Mstack, we believe that the company has tremendous potential to lead this transformation.”

Mstack, founded in 2022, currently serves four business sectors: oil and gas, coatings, water treatment, and home and personal care. The funding will enable it to move into industry segments such as agrochemicals and pharmaceuticals.

The Mstack platform gives buyers a one-stop shop for sourcing, testing, shipping, delivering, and tracking specialty chemicals.

“This new funding affirms investor confidence in our vision and technology to transform global markets. It enables us to expand geographically and intensify our R&D efforts,” Mstack founder Shreyans Chopra says.

Here's how Houston ranks on annual list of greenest cities in the US

room for improvement

Bad news, Houston. The Bayou City is the third worst metro when it comes to the country's greenest cities.

According to WalletHub's recently released Greenest Cities in America report, Houston is No. 98 out of 100 of the largest cities that were ranked in the study, which was based on information from the U.S. Census Bureau, U.S. Environmental Protection Agency, The Trust for Public Land, U.S. Department of Energy - The Alternative Fuels Data Center, and more.

“There are plenty of things that individuals can do to adopt a green lifestyle, from recycling to sharing rides to installing solar panels on their homes. However, living in one of the greenest cities can make it even easier to care for the environment, due to sustainable laws and policies, access to locally-grown produce and infrastructure that allows residents to use vehicles less often," says Chip Lupo, WalletHub Analyst. "The greenest cities also are better for your health due to superior air and water quality.”

Houston scored 36.88 points out of 100, and comes in dead last on the environment ranking. Here's how the city performs when it comes to the other metrics:

  • No. 87 for transportation
  • No. 52 for energy sources
  • No. 61 for lifestyle and policy
  • No. 91 for greenhouse-gas emissions per capita
  • No. 30 for percent of green space
  • No. 86 for median air quality index
  • No. 97 for annual excess fuel consumption
  • No. 56 for percent of commuters who drive
  • No. 39 for walk score
  • No. 33 for farmers markets per capita

The big winners on the report are mostly on the West Coast. Of the top 10, six cities are from California. These are the greenest cities, per the report:

  1. San Diego, California
  2. Washington, D.C.
  3. Honolulu, Hawaii
  4. San Francisco, California
  5. San Jose, California
  6. Seattle, Washington
  7. Oakland, California
  8. Portland, Oregon
  9. Fremont, California
  10. Irvine, California
Texas isn't seen on the list until Austin, which ranked No. 26. The rest of the major Lone Star State major metros include San Antonio at No. 44, Fort Worth at No. 76, and Dallas at No. 81.While this report is pretty damning, there's not a general consensus that all hope is lost for Houston when it comes to being green. Last year, the city was ranked as having the lowest carbon footprint, based on a report from Park Sleep Fly.

However, WalletHub's report has pretty consistently ranked Houston low on the list. Last year, Houston was slightly higher up at No. 95. In 2022 and 2021, the city claimed the No. 93 spot.

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This article originally ran on EnergyCapital.

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 an alternative materials founder, a Houston ecosystem builder, and the city's richest billionaire.

Zimri T. Hinshaw, founder and CEO of Rheom Materials

Zimri T. Hinshaw, founder and CEO of Rheom Materials, joins the Houston Innovators Podcast. Photo courtesy of Rheom

At first, Zimri T. Hinshaw just wanted to design a sustainable, vegan jacket inspired by bikers he saw in Tokyo. Now, he's running a bio-based materials company with two product lines and is ready to disrupt the fashion and automotive industries.

Hinshaw founded Rheom Materials (née Bucha Bio) in 2020, but a lot has changed since then. He moved the company from New York to Houston, built out a facility in Houston's East End Maker Hub, and rebranded to reflect the company's newest phase and extended product lines, deriving from dozens of different ingredients, including algae, seaweed, corn, other fruits and vegetables, and more.

"As a company, we pivoted our technology from growing kombucha sheets to grinding up bacteria nanocellulose from kombucha into our products and then we moved away from that entirely," Hinshaw says on the Houston Innovators Podcast. "Today, we're designing different materials that are more sustainable, and the inputs are varied." Read more.

Joey Sanchez, founder of Cup of Joey

Joey Sanchez's Cup of Joey has expanded across Houston to help make valuable connections to Houston entrepreneurs. Photo via LinkedIn

What is your purpose in life? One Houstonian is asking that question of his fellow entrepreneurs all across town.

Joey Sanchez founded Cup of Joey, a weekly meetup opportunity for innovators, business leaders, and the whole Houston community. The events are a place not only to share a cup of coffee but also their very own mission in life.

It all started in 2021 at the Houston Tech Rodeo, an initiative from Houston Exponential, where Sanchez worked as a director of corporate engagement. Texas had just opened social distancing in public events since the beginning of the COVID-19 pandemic, and Sanchez was finding ways to reconnect the Houston community.

‘We thought what better way than over a cup of coffee?” Since then, Sanchez has connected thousands of people based on purpose every Friday for the past three and a half years. Read more.

Tilman Fertitta, chairman, CEO, and owner of Landry's Inc.

Tilman Fertitta's net worth is estimated at over $10 billion. Photo by J. Thomas Ford

A dozen of Houston's illustrious billionaires have made the cut on the new Forbes 400, a list of the 400 richest people in the United States for 2024.

Houston hospitality king and Rockets owner Tilman Fertitta is the 12th richest Texan and the 99th richest person in the United States, according to the new Forbes 400list, released October 1.

Forbes estimates Fertitta's net worth in 2024 as $10.1 billion, which has steadily climbed from his 2023 net worth of $8.1 billion. Fertitta, 67, purchased the Houston Rockets in October 2017 for $2.2 billion. The billionaire also owns Texas-based hospitality and entertainment corporation Landry's. In 2019, Fertitta embarked on a new venture as an author. Read more.