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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Report: Texas remains a top state for Black entrepreneurs

by the numbers

The Lone Star State has again ranked among the top states for Black entrepreneurs, but Texas didn't rank as highly as it did in 2022.

According to Merchant Maverick’s latest annual report on the state of Black businesses, Texas has landed in the No. 8 spot for the best states for Black entrepreneurs. While the state maintains a position in the top 10, Texas has dropped from its No. 3 spot last year.

Guided by metrics including Black-owned businesses per million residents, percentage of the state’s workforce employed by Black-owned businesses, average annual payroll of Black-owned businesses, average annual income of Black business owners, regional price parity, a cost of living indicator, unemployment rate, and Top state income tax bracket rates, the report also noted the following key takeaways:

The Lone Star State is:

  • No. 9 for highest average annual income.
  • Home to 360 Black-owned businesses per capita.
  • No. 15 highest in the nation for percentage of the workforce working for Black businesses.

Black businesses continue to see success all over the state.

The largest Black tech conference in the country, the 2023 AfroTech Conference, recently returned to Austin for the second straight year at the Austin Convention Center. The five-day conference united over 300 companies – including Amazon, Meta, and Google – to expand the representation of Black Americans in STEM fields.

In 2022, a ranking by Black employees at Apartment List put Houston at No. 4 among the best cities for Black professionals. The Apartment List employees judged 82 cities in four categories: Business environment for Black professionals. Houston ranks third. Black community and representation. Houston ranks fourth. Economic opportunities for Black professionals. Houston ranks seventh. Housing opportunities for Black professionals. Houston ranks No. 20.

Growth also was reflected post-pandemic for Black-owned startups in Houston according to study by economists at Rice University, Boston University, Columbia University, and the Massachusetts Institute of Technology (MIT). The study found that from 2019 to 2020, the startup rate rose 32 percent in four largely Black areas of Houston: Kashmere Gardens, Missouri City, South Acres, and Sunnyside. The statewide startup rate during that period was 10 just at percent.

Texas recently landed on another Merchant Maverick report, also dropping a few spots in Merchant Maverick’s annual ranking of the top 10 states for women-led startups. The Lone Star State landed at No. 5 for women-led startups in 2023, down from No. 2 in 2022. Last year, Texas ranked second, up from its No. 6 showing in 2021.

Hardtech startup adviser on mentorship, Houston's past and future as an innovation hub

HOUSTON INNOVATORS PODCAST EPISODE 211

To Wogbe Ofori, the definition of entrepreneurship is simple: "To be more opportunity centric than risk averse." And Houston, as he says, has be entrepreneurial for a very long time — despite it being considered the specialty of a certain coastal region.

"Silicon Valley has hijacked the concept of innovation and entrepreneurship, and this city has been filled with entrepreneurs long before the concept of 'tech entrepreneurs,'" Ofori says on this week's episode of the Houston Innovators Podcast.

Ofori, the founder and chief strategist of WRX Companies, has developed a keen eye for entrepreneurship and innovation activity in Houston and shares his observations on the show. An adviser to Nauticus Robotics and strategist to Intuitive Machines and Jacobs, he's also served as a mentor across the local innovation community.

In fact, on the episode, he explains what makes a good mentor for founders in tech. Ofori says he specializes in helping entrepreneurs see around corners and think things through, make wise decisions, and get things done.

"It starts with an ability to listen," Ofori says of advisers and mentors. "One of the keys to my advisory practice is to not only listen but reframe and ask a lot of questions."

"What differentiates this from therapy — and sometimes the line can be fine," he continues, "is that as a mentor or adviser in the context of commerce, is you're always thinking about it toward a transaction in the marketplace."

As he's spent a lot of time working with hardtech founders, Ofori has observed a momentum within energy transition innovation — specifically Houston's role in it.

"It's difficult for an incumbent to disrupt itself. We’ve been positioning ourselves as moving from the energy capital of the world to the energy transition capital," he says. "Now we are just at the place where we're really going to start to see the difference between those who were caught up in the excitement of the energy transition, and those who really have the faith to see this thing through."

Houston universities rack up rankings in reports on top schools for entrepreneurship

5 years running

Rice University and the University of Houston have once again scooped up accolades for their entrepreneurship programs.

For the fifth consecutive year, Rice’s Jones Graduate School of Business has been ranked the No. 1 graduate entrepreneurship program by The Princeton Review, a provider of education services, and Entrepreneur magazine.

“Our close ties to Houston as well as national startup ecosystems give our students unique opportunities to pitch to and connect with angel investors, venture capitalists and corporations,” Brad Burke, managing director of the Rice Alliance, says in a news release. “These connections allow for mentorship, as well as launch points for new ideas, not only for our students but also for the city and surrounding communities.”

The list identifies 50 undergraduate and 50 graduate programs that boast the best entrepreneurship offerings based on factors such as coursework, experiential learning opportunities, and career outcomes. The ranking measures more than 40 data points about the schools’ entrepreneurship programs, faculties, students, and alumni.

Also for the fifth consecutive year, the University of Houston’s Cyvia and Melvyn Wolff Center for Entrepreneurship in the C.T. Bauer College of Business has been named the No. 1 undergraduate entrepreneurship program by The Princeton Review and Entrepreneur magazine.

“We believe in entrepreneurship, we believe in free enterprise, and we’re in the number one city for entrepreneurship,” Dave Cook, executive director of the Wolff Center, says in a news release.

“When we put students into this entrepreneurial mix,” he adds, “and we introduce and reinforce free enterprise values, our intent is to change students’ lives and to create the next generation of business leaders with the highest integrity who are going to go out and create their own cultures, their own companies and their own futures.”

The University of Texas at Austin is the only other school in the state to make the top 10 of either the graduate ranking or undergraduate ranking. UT captures the No. 6 spot on the graduate list and No. 2 spot on the undergraduate list.

Aside from The Princeton Review and Entrepreneur honor, Rice climbed four spots in Poets&Quants’ annual ranking of the world’s best MBA programs for entrepreneurship.

Last year, Rice’s graduate school for business landed at No. 7 on the list. This year, it rose to No. 3, behind the first-ranked Olin School of Business at Washington University in St. Louis and second-ranked ESTM Berlin.

This is the fifth annual ranking of MBA programs for entrepreneurship from Poets&Quants, a website that focuses on graduate-level business education.

“MBA programs are increasingly sought after in today’s environment, and our focus on entrepreneurship sets us apart,” Peter Rodriguez, business dean at Rice, says in a news release. “The entrepreneurship classes emphasize a combination of mindset and skill set and focus on multiple stages of the entrepreneurial process, preparing our students for any industry and climate.”

Poets&Quants relies on 16 data points collected through an annual survey to come up with its ranking. Among those data points are:

  • Average percentage of MBA students launching businesses during their program or within three months of graduation between 2018 and 2022.
  • Percentage of MBA elective courses with all of the curriculum focused on entrepreneurship or innovation during the 2022-23 academic year.
  • Percentage of MBA students active in the business school’s main student-run entrepreneurship club during the 2022-23 academic year.
  • Square footage of incubator or accelerator space available to MBA students during the 2022-23 academic year.