From Houston inventors being recognized to Chevron's latest investment, here's what innovation news you need to know. Photo by Dwight C. Andrews/Greater Houston Convention and Visitors Bureau

Houston's innovation news hasn't quite slowed yet for the holidays. This most recent news roundup includes lots of money raised, a new contract for a Houston startup, innovators recognized and more.

For more daily innovation news, subscribe to InnovationMap's newsletter, which goes out every weekday at 7 am.

Chevron Technology Ventures invests in Texas company

Courtesy of CTV

Houston-based Chevron Technology Ventures has contributed to Austin-based motor tech company Infinitum Electric's $12.5 million Series B round of financing. New Mexico-based Cottonwood Technology Fund and includes participation AJAX Strategies and other individual investors.

The company plans to use the funds to build out its research and development, engineering, supply chain, and production teams.

"Infinitum's mission aligns well with our goals for the Future Energy Fund," says Barbara Burger, president of CTV, in a release. "The purpose of the Future Energy Fund is to invest in breakthrough energy technologies that reflect Chevron's commitment to lower emission energy sources and that are integral to low-carbon and efficient value chains."

4 Houston researchers named fellows of the National Academy of Inventors

ideas

Getty Images

The National Academy of Inventors named 168 academic innovators to NAI Fellow status — and four conduct their research right here in Houston. The program "highlights academic inventors who have demonstrated a spirit of innovation in creating or facilitating outstanding inventions that have made a tangible impact on quality of life, economic development and the welfare of society," reads the news release.

The four Houston inventors and their institutions are as follows:

List ranks Houston's fastest growing companies

Chart via Grojo.com

Growjo named the 100 fastest-growing companies in Houston for 2019, and, while the study notes the city's large oil and gas and medical industries, also acknowledges its growing tech and software scene. The companies were selected by a myriad of factors.

"Our algorithm is based on multiple datasets including employee growth, estimated revenue growth, valuations, quality and quantity of funding, hiring announcements, current job openings, leadership team announcements, and numerous other growth triggers," reads the website.

The top five companies on the list are:

  1. Midcoast Energy, which has 183 employees and a 17 percent employee growth rate.
  2. ibüümerang, which has 528 employees, and a 633 percent employee growth rate.
  3. Arion, which has 136 employees and a 216 percent employee growth rate.
  4. GoExpedi, which as 59 employees and a 119 percent employee growth rate.
  5. Code Ninjas, which has 338 employees and a 63 percent employee growth rate.

For the full list, visit Growjo.com.

TMCx company wins awards 

Image via abilitechmedical.com

Abilitech Medical, which recently completed the TMCx program, has taken home some wins in Minnesota, where it's based. The company was named named among the state's topmed tech companies by the Minnesota High Tech Association at the 2019 TEKNE awards and 2019, as well as the grand prize winner and top woman-led business by the University of Minnesota's business school at its 2019 Minnesota Cup competition.

The medical device company's technology includes the Abilitech™ Assist, which assists patients with Multiple Sclerosis, rehabilitating from stoke, or other conditions with eating, drinking, and using a computer.

"We've met so many people whose lives will be changed with this innovation," says CEO and founder Angie Conley in a news release. "Through the Texas Medical Center accelerator, we met Dr. Hany Samir who championed our upcoming stroke study."

Samir is a cardiac anesthesiologist at Houston Methodist. He lost his ability to work and perform simple daily functions after a stroke debilitated his left arm.

"I'm unable to practice the medicine I love. I want to hold my wife again with two hands and enjoy dinner with her, without having her cut my food. I want to have a cup of coffee without asking for help," says Samir in the release. "Regaining function in my arm will restore my life."

Pandata Tech receives Department of Defense contract

Photo courtesy of Pandata Tech

Houston-based ​Pandata Tech secured a contract with the United States Department of Defense from the Rapid Sustainment Office of the the United States Air Force last month. The Phase II contract will allow the company to work with Joint Base Elmendorf-Richardson in Alaska to develop a scalable data quality platform.

The access to data will aid in natural disasters, per the release. The goal of the contract would be for a Phase III contract and an opportunity to scale the technology into other branches of military. The company also had a Phase I contract signed in August before securing the Phase II in November.

"Pandata Tech's proprietary DQM software was built during a development partnership with one of the world's largest offshore drilling companies. Because the technology was tested and built with offshore drilling data, the shift to aircraft carriers would be smooth," explains Gustavo Sanchez, co-founder of Pandata Tech, in a news release.

Houston company receives Department of Energy funding

Photo via aerominepower.com

The U.S. Department of Energy's National Renewable Energy Laboratory — with funding from the DOE's Office of Energy Efficiency and Renewable Energy Wind Energy Technologies Office — selected a Houston company for its Competitiveness Improvement Project.

Westergaard Solutions, founded by Houstonian Carsten Westergaard, was named among the 2019 CIP Awardees. Among the company's assets is AeroMine, which competed in the most recent Houston cohort in MassChallenge Texas. The company "will implement an innovative building-integrated wind generation concept with no external moving parts, moving from a preliminary conceptual design to a pre-production prototype design that is ready for testing," according to the release.

These three entrepreneurs saw a need in their industries and created their own solutions. Photos courtesy

3 Houston innovators to know this week

Who's who

A true innovator is someone who's able to look past how something has been done for years — decades even — and be creative enough to find a better way to do it.

From redesigning conventional lab space to seeing a niche opportunity for luxury home rentals, these three innovators to know this week have made strides in changing the game.

Caleb Bashor, professor at Rice University

Photo courtesy of Caleb Bashor

Not all labs are created equal — or affordably. Caleb Bashor, a professor at Rice University, along with seven colleagues, created a DIY lab to further research efforts based at the university.

The DIY lab, eVOLVER, comprises three modules: a customizable "smart sleeve" housing and interface for each culture vessel, a fluidic module that controls movement of liquid in and out of each culture vessel, and a modular hardware infrastructure that simplifies high-volume bi-directional data flow by decoupling each parameter into individual microcontrollers.

"The prototype 16-chamber version of eVOLVER described in the new paper cost less than $2,000, cheaper than what a lab might pay for a single continuous culture bioreactor," Bashor says. Read more about the eVOLVER here.

Sébastien Long, founder and CEO of Lodgeur

Photo courtesy of Lodgeur

Sébastien Long ended up in Houston by chance, and the city ended up being a great place to take his luxe apartment rental business plan and turn it into a reality. Houston-based Lodgeur is a rental company that takes the convenience of Airbnb and adds in the luxury experience of a hotel.

Long identified stylish apartment complexes and built his business which now has a couple properties downtown that are attractive to a niche market of clientele.

"We're roughly split between leisure guests and business travelers," Long says. "They want to feel like they're staying in a home away from home." Read more about Lodgeur here.

Gustavo Sanchez, co-founder and CEO of Pandata Tech

Photo courtesy of Pandata Tech

In oil and gas, proper data management can be the difference of millions of dollars in savings. Pandata Tech can run a data quality check for its oil and gas clients — and even engages automation and machine learning for quicker, more thorough results.

Gustavo Sanchez, co-founder and CEO of the company, is looking to bring his data systems into new industries, like health care, where data management can be hectic, overwhelming, and crucial to life-saving opportunities.

"There's so much data, and it's so noisy, that it's hard to know whether the data can be trusted or not," Sanchez says. Read more about Pandata Tech here.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

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.

---

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

Texas university's new flight academy opens at Houston Spaceport

cleared for takeoff

The vehicles may not have “student driver” stickers on them, but Texas Southern University has moved a dozen planes into its new training facility at the Houston Spaceport, opening the way for student flyers to use the facility.

TSU previously reached a deal with Houston Airports and the City of Houston in 2023 to house its prospective Flight Academy at Ellington Field. At the time, TSU had a small fleet of nine planes for student use, but a $5.5 million investment from the city greatly expanded the space available.

The Flight Academy includes a 20,000-square-foot hangar that serves as a TSU satellite campus. The school now has a fleet of 12 Cirrus SR20 aircraft that were acquired last year through state and alumni funding. An additional 4,500 square feet is used as classroom and office space. An 8,000-gallon fuel tank will support flight training operations.

TSU first launched its Aviation Science Management program in 1986 and added a professional pilot program in 2016. The school is now part of the United Airlines pipeline program and has also forged relationships with Delta and Southwest.

“I want to commend Texas Southern University and Houston Airports for their leadership and partnership in advancing aviation education right here in our city,” Houston City Councilwoman Dr. Carolyn Evans-Shabazz in a press release.

“It connects our students to high-paying, high-demand careers in aviation and aerospace. This is how we grow a city in the right way—by investing in workforce development, aligning education with industry and making sure our residents are prepared to lead in the industries of tomorrow. Houston is already a global leader in aerospace and projects like this strengthen that position even further, especially here at Ellington, where innovation and opportunity continue to take flight.”

The City of Houston signed an agreement to continue funding the academy for five years.

Amazon launches ultrafast, 30-minute delivery service across Houston

Amazon Now

More than 20 years after it redefined fast shipping, Amazon is preparing to raise the bar on consumer expectations again by offering to fulfill customers' most urgent product needs in Houston and other parts of the world in a half-hour or less for an extra fee.

The company, which revolutionized online shopping in 2005 with two-day deliveries for Prime members, is rapidly opening small order-processing hubs in dozens of U.S. and foreign cities to cater to shoppers who can't or don't want to wait for cough medicine to relieve flu symptoms or tomatoes for tonight's dinner salad.

The ultrafast service, called Amazon Now, first launched in India last June. Amazon says 30-minute deliveries now are also available in urban areas of the United States, Brazil, Mexico, Japan, the United Arab Emirates, the United Kingdom.

The mini-warehouses devoted to Amazon Now are about the size of a CVS drugstore. They stock about 3,500 products for expedited delivery, including beer, diapers, pet food, meat, nonprescription medications, playing cards and cellphone charging cables.

“We know that customers love speed and always have,” Beryl Tomay, Amazon’s head of transportation, told The Associated Press on Monday. “What we see customers doing, when we offer faster speeds, are they purchase more from Amazon. And Amazon becomes more top of mind for that or other types of items as well.”

In the U.S., the company first tested Amazon Now in Seattle, the home of its headquarters, and in Philadelphia. Most residents of the Dallas-Fort Worth area and Atlanta now have access as well. The service is also live in Dallas-Fort Worth, Denver, Minneapolis, Phoenix, Oklahoma City, Orlando, and dozens of other cities, Amazon said, with New York City and others expected by year-end.

The service charges for Amazon Now start at $3.99 for Prime members, who pay an annual fee of $139, and $13.99 for non-members. A $1.99 small basket fee applies to orders under $15, Amazon said.

The company's bet on a need for speed also comes as some consumers are rebelling against rushed deliveries as they weigh the potential impact on the environment and the workers tasked with preparing orders at a rapid rate.

Amazon’s approach
A relentless focus on speed helped Amazon build a logistics and e-commerce empire. After it made two days the new delivery time normal, Amazon moved into one-day and same-day deliveries for its Prime members. This spring, the company began making 90,000 products available in one hour or three hours at an extra cost.

The scaled down and sped up microhubs that are designed to handle 30-minute orders represent another step in Amazon's pursuit.

Only a handful of people prepare orders from aisles of shelves in the 5,000- to 10,000-square-foot facilities, unlike the sprawling fulfillment centers storing millions of items where Amazon employs a mix of human workers and robotics to pick and pack orders.

Amazon tailors the product inventory to each location and uses artificial intelligence and other technology to analyze what customers buy, as well as when and how often. The most popular U.S. purchases so far include soap, toothpaste, mouthwash, toilet plungers, bananas, limes and wireless earbuds, Amazon said.

The competition
Amazon’s attempt to up the instant gratification ante provides direct competition to on-demand food delivery platforms like Instacart, Uber Eats, DoorDash and Grubhub, which don't have the scale of the e-commerce titan, according to independent retail analyst Bruce Winder.

“What Amazon brings is their prowess in supply chain,” Winder said.

These smaller companies said they don't see Amazon as a threat, though, citing the hundreds of thousands of items they are able to deliver to users' doorsteps by partnering with various merchants and restaurants.

“DoorDash has a mission to empower grocers and retailers and augment their existing footprint, not to replace them,” DoorDash spokesperson Ali Musa said in an emailed statement. “We win only when they win, which is how we can offer over half a million grocery and retail items in under an hour across the country.”

Amazon also is in a race with Walmart to become the retailer that reliably gets orders to online shoppers in under an hour.

For an additional $10 on top of standard delivery charges, shoppers can place Walmart Express Delivery orders from among more than 100,000 products that are guaranteed to arrive in an hour. Many customers, however, are receiving the items under 30 minutes, Walmart CEO John Furner told analysts in February.

Domino's cautionary tale
Companies have promised deliveries in 30 minutes or less before, but the landscape also is littered with failed attempts to break the speed barrier.

The COVID-19 pandemic produced a flurry of companies that promised 10- to 15-minute grocery deliveries from microwarehouses in dense neighborhoods, according to Sucharita Kodali, an analyst at market research firm Forrester Research.

But soaring operating costs, low customer loyalty and the drying up of investor money ultimately caused most to fail before the pandemic was over, analysts said.

Domino’s in 1984 pushed a guarantee that customers would receive their pizzas for free if they weren't delivered in under a half-hour. The company amended the “30 minutes or it’s free” policy after two years, providing only a $3 discount for late deliveries.

The promotion helped Domino’s win market share, but it ended up tarnishing the company's reputation. It dropped the guarantee in December 1993 after a string of crashes and lawsuits involving drivers racing to meet the deadline.

Brad Jashinsky, a retail analyst at information technology research and consulting firm Gartner, said he thinks Amazon should take the pizza chain's experience as a cautionary tale.

“You get in trouble when you start overpromising something like that,” he said.

Amazon won't be making any time guarantees and instead plans to keep customers who chose the 30-minute delivery option updated on the progress of their orders, Tomay said.

“There's no rushing either in our building workers or the gig workers,” she said.

Taking it slow
Kodali thinks Amazon will need a lot of people placing orders around the same time from the same or adjacent apartment buildings for the 30-minute service to be cost-effective.

Consumers may appreciate rapid receipt of products like toilet paper and batteries, but retailers and logistics experts said they also see some online shoppers, especially members of Generation Z, choosing no-rush shipping for products they don't need in a hurry.

Amazon for several years has invited customers to skip one- or two-day delivery and to receive their orders on the same day in as few parcels as possible. Consolidating orders into fewer packages by electing to have them delivered at the same time cuts down on boxes, shipping envelopes and fuel use, analysts said.

“The millennials who came to age in an era that was on fast delivery came to expect it de facto, whereas ... Gen Z is more accepting of a slower speed than previous generations before them,” said Darby Meegan, a general manager at Flexport, a supply chain and logistics company that fulfills orders for thousands of online merchants.

Still, Amazon executives have cited positive early results for Amazon Now in India, where they said Prime members tripled their requests for 30-minute deliveries once they started using the service.

Amazon Now also is attracting more repeat American customers, Tomay said.

“It’s in early days and time will tell,” she said. “I think that it will be interesting to see how it evolves.”