Houston earns dismal grade for financial health, new report says

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Houston earned a D grade in a recent report detailing financial health. Photo courtesy

Compared to many of Texas' big cities, Houston is hardly making the grade fiscally.

That's according to a recent report from nonpartisan, nonprofit think tank Truth in Accounting. Houston earns a D grade for its financial health in Truth in Accounting's new Financial State of the Cites 2021 report, a comprehensive analysis of the fiscal health of the top 75 most populated cities in the U.S.

Based on fiscal year 2019, and therefore reflecting a pre-pandemic economy, the report examines a variety of financial factors to determine each city's "taxpayer burden" or "taxpayer surplus" to determine cities' rankings and grades.

As for the grading, the report may assign a municipal government a C grade if it comes close to meeting its balanced-budget requirement, which is reflected by a small taxpayer burden. An A or B grade means governments have met their balanced-budget requirements and have a taxpayer surplus.

Meanwhile, governments receiving D (Houston) and F grades have not balanced their budgets and have significant taxpayer burdens, according to the report.

Houston had $5.65 billion available to pay $13.16 billion worth of bills. What does that mean to individuals?

"Bottom line: Houston would need $11,600 from each of its taxpayers to pay all of its bills, so it has received a 'D' for its finances," the report nots. "According to Truth in Accounting's grading scale, any government with a Taxpayer Burden between $5,000 D and $20,000 receives a 'D.'"

Elsewhere in Texas, San Antonio is in the best financial shape out all of Texas' four biggest metros, earning a C and ranking 34 out of 75 cities. The report notes that San Antonio entered the pandemic in "mediocre fiscal health," despite the city's debt load of $1.5 billion and a taxpayer burden of $3,500. The report says not only is Austin, scoring a D, is not making the grade fiscally and may be even worse off post-pandemic.

Like Houston and Austin, a slew of other Texas cities earned a D grade in the report, including Dallas (ranked No. 61 out of 75 cities), Fort Worth (No. 54), and El Paso (No. 42).

Arlington (No. 16), with a taxpayer burden of only $200, received a financial grade of C, as did Corpus Christi (No. 19), which had a taxpayer burden of $1,100. The top-ranking Texas city in the report is the Dallas suburb of Plano (No. 9), which received a B grade, reflective of its $2,000 taxpayer surplus.

Despite the distressing news, the Texas metros are not alone in receiving less-than-stellar fiscal grades. In fact, most cities analyzed in the report did not have enough money to pay all their bills. Based on Truth in Accounting's grading methodology, no cities received an A grade, 13 received a B grade, 28 received Cs, 28 received Ds, and six cities received failing grades.

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This article originally ran on CultureMap.

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Houston unicorn fintech company launches new B2B education platform

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Houston-based HighRadius — which recently hit $1 billion valuation, reaching unicorn status — has launched a new learning platform.

Highako Academy by HighRadius, launched the platform to help credit and collections teams build certain skills faster. Highako features over 650 expert-led videos, community forums, and resources. The new on-the-job training platform, which announced its launch this week, is used by more than 2,800 companies, according to a press release.

"Our customers have asked us for an online self-service learning platform, and that led us to launch highako.com as a beta platform last year," says HighRadius COO Urvish Vashi in the release. "With 10,000+ users on the platform and a vibrant partner ecosystem consisting of credit groups, collection agencies, attorneys and industry associations, we see this echoing a larger trend of millennials and Gen Z gravitating towards microlearning platforms."

In honor of the launch of Highako Academy, the organization has announced plans for Credit SkillCon '21, a lunch-and-learn event from June 16 to July 20. The 53 live workshops, panel discussions, and on-demand sessions will focus on topics including negotiations, credit risk assessment, bankruptcy litigation, collections strategy and more. .

"We continually hear from members about wanting more and different educational options," says Jon Flora, president and CEO of NACM Business Credit Service. "The last year has changed much about how we answer this call, and now we have a solution. We are the first NACM affiliate to partner with Highako Academy."

HighRadius and its AI-powered SaaS technology, which streamlines accounts-receivable and cash-management processes, are growing fast. The company, which processes over $2.23 trillion in receivables transactions annually, per the release, raised $300 million in March. At the time of that raise, HighRadius, founded in 2006, employed more than 1,000 people around the world — and was hiring.

"Our goal has always been to build a long-lasting business that outlasts all of us," Sashi Narahari, founder and CEO of HighRadius, said in the news release. "I look forward to working with [our] high-quality, long-term investors, who share a common vision of transforming the office of the CFO using a combination of artificial intelligence built on top of connected-finance workspaces and embedded analytics."

Autonomous delivery company joins forces with FedEx for new pilot in Houston

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A tech company with self-driving robots deployed across Houston delivering pizza, groceries, and more has yet again launched a new pilot program — this time focused on parcel delivery.

Nuro and FedEx announced a new partnership to deploy Nuro's technology for last-mile delivery at a large scale with FedEx.

"FedEx was built on innovation, and it continues to be an integral part of our culture and business strategy," says Rebecca Yeung, vice president of advanced technology and innovation at FedEx, in a news release. "We are excited to collaborate with an industry leader like Nuro as we continue to explore the use of autonomous technologies within our operations."

The new pilot, which began in April, according to the release, is the latest in the FedEx portfolio of autonomous same-day and specialty delivery devices. The partnership allows for FedEx to be able to explore various use cases for autonomous vehicle logistics, like multi-stop and appointment-based deliveries. Meanwhile for Nuro, it's the company's first expansion into parcel logistics.

"Working with FedEx—the global leader in logistics—is an incredible opportunity to rethink every aspect of local delivery. This multi-year commitment will allow us to truly collaborate and bring Nuro's powerful technology to more people in new ways, and eventually reach large-scale deployment," says Cosimo Leipold, Nuro's head of partnerships, in the release. "Our collaboration will enable innovative, industry-first product offerings that will better everyday life and help make communities safer and greener."

California-based Nuro has launched a few delivery pilots in Houston over the past few years, including the first Nuro pilot program with Kroger in March 2019, grocery delivery from Walmart that was revealed in December 2019, and pharmacy delivery that launched last summer. The most recent pilot program — pizza delivery with Domino's — officially went live in Woodland Heights earlier this year.

Nuro's expansion in Houston has a lot to do with the legislation that's happening at the state level. Last year, Nuro was granted its exemption petition from the United States Department of Transportation's National Highway Traffic Safety Administration. This move is a first for DOT, and it allowed Nuro to roll out its vehicles on public roads without the features of traditional, passenger-carrying vehicles — like side mirrors or windshields, for instance.

The city also just offers a lot of opportunities to try out various neighborhoods and environments.

"As a company, we tried to find a city that would allow us to test a number of different things to figure out what really works and who it works for," Nuro Product Operations Manager Sola Lawal says an episode of the Houston Innovators Podcast. "It's hard to find cities that are better than Houston at enabling that level of testing."

Lessons in prototyping: Figuring out the best type of prototype

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As you continue your journey of developing and bringing a new product to the market, you have a series of decisions to make when it comes to prototyping — whether you're going to launch a hardware or a software product, or the combination of both — you need to have a prototype made.

Before you begin, there are a number of things to consider. In an article for InnovationMap last week, I looked at major choice points and their implications that will help you navigate the process in the most efficient way.

After you successfully laid the foundation for the development process and got you CAD models ready, you arrive at the next choice. Prior to making a prototype of your invention you need to decide what type of prototype you're going to build. Whether you're making it yourself or hiring a rapid prototyping company, you need to know the purpose your prototype will fulfil because it will help to select proper methods, techniques, and materials for building. With that in mind, let's go through the types of prototypes and purposes behind building them.

Types of Prototypes

Mockup

This type is usually used as a simple representation of your product idea, to gauge physical dimensions and see its rough look. It's especially useful for making physical models of complex and large products without investing a significant amount from the start. Mockup is perfect for initial market research and various types of early testing.

Proof of concept

This type of prototype is built when you need to validate your idea and prove that it can be realized. It comes in handy when approaching potential partners and investors.

Functional prototype

This kind of prototype is also called a "looks- and works-like" model because it has both technical and visual features of the product presented. It is used for testing product's functionality, conducting consumer surveys, and fundraising campaigns.

Pre-production prototype

This is the most complex type that is made at the latest stage of product development. It's used for ergonomics, manufacturability, and material testing, as well as to minimize risks of defects during manufacturing. This is a model that manufacturers use to produce the final product.

Choosing to Partner with Prototyping Company

It's important to note that prototyping is an iterative process. It is a fusion of art and science that helps you to uncover the full potential of your product, which in turn increases its chances for market success. Therefore, you will likely go through several types of prototypes, with each kind usually requiring a few versions to achieve the parameters you set for the model.

And this process also requires help of a company that builds prototypes or of a professional product development team. You can start looking for the one after you made your first mockup or proof of concept. It is recommended because creating more complex prototypes implies the use of sophisticated equipment, sourcing of materials and components that could be too expensive or complicated to do without an established network of suppliers. Plus, skills and experience play a huge role in creating quality prototypes. Taking all three factors – equipment, experience and skills - into account, it's smart to outsource your prototyping needs to a professional company.

This article is a follow up article to my post from last week. I have also previously contributed to guest columns on the following: