Houston-based Nauticus Robotics has a new CEO and fresh funding. Photo via Nauticus

In the wake of a leadership reshuffling and amid lingering financial troubles, publicly traded Nauticus Robotics, a Webster-based developer of subsea robots and software, has netted more than $12 million in a second tranche of funding.

The more than $12 million in new funding includes a $9.5 million loan package.

Nauticus says the funding will accelerate certification of the company’s flagship Aquanaut robot, which is being prepared for its inaugural mission — inspecting a deep-water production facility in the Gulf of Mexico that’s owned by a major oil and gas company.

The new funding comes several weeks after the company announced a change in leadership, including a new interim CEO, interim chief financial officer, and lead general counsel.

Former Halliburton Energy Services executive John Gibson, the interim CEO, became president of Nauticus last October and subsequently joined the board. Gibson replaced Nauticus founder Nicolaus Radford in the CEO role. Radford’s LinkedIn profile indicates he left Nauticus in January 2024, the same month that Gibson stepped into the interim post.

Radford founded what was known as Houston Mechatronics in 2014.

Victoria Hay, the new interim CFO at Nauticus, and Nicholas Bigney, the new lead general counsel, came aboard in the fourth quarter of 2023.

“We currently have the intellectual property, prototypes, and the talent to deliver robust products and services,” Gibson says in a news release. “Team Nauticus is now laser-focused on converting our intellectual property, including both patents and trade secrets, into differentiated solutions that bring significant value to both commercial and government customers.”

A couple of weeks after the leadership shift, the NASDAQ stock market notified Nauticus that the average closing price of the company’s common stock had fallen below the $1-per-share threshold for 30 consecutive trading days. That threshold must be met to maintain a NASDAQ listing.

Nauticus was given 180 days to lift its average stock price above $1. If that threshold isn’t reached during that 180-day period, the company risks being delisted by NASDAQ. The stock closed February 6 at 32 cents per share.

The stock woes and leadership overhaul came on the heels of a dismal third-quarter 2023 financial report from Nauticus. The company’s fourth-quarter 2023 financial report hasn’t been filed yet.

For the first nine months of 2023, Nauticus reported an operating loss of nearly $20.9 million, up from almost $11.3 million during the same period a year earlier. Meanwhile, revenue sank from $8.2 million during the first nine months of 2022 to $5.5 million in the same period a year later.

Nauticus went public in September 2022 through a SPAC (special purpose acquisition company) merger with New York City-based CleanTech Acquisition Corp., a “blank check” company that went public in July 2021 through a $150 million IPO. The SPAC deal was valued at $560 million when it was announced in December 2021.

Nauticus recently hired investment bank Piper Sandler & Co. to help evaluate “strategic options to maximize shareholder value.”

One of the strategic alternatives involves closing Nauticus’ previously announced merger with Houston-based 3D at Depth, which specializes in subsea laser technology. When it was unveiled last October, the all-stock deal was valued at $34 million.

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This article originally ran on EnergyCapital.

The acquisition is valued at $34 million. Photo via Nauticus Robotics

Houston robotics company makes strategic acquisition in $34M deal

M&A Moves

A Houston company that harnesses the power of robotics hardware and programing for underwater use has made an acquisition.

Nauticus Robotics Inc. (NASDAQ: KITT) announced it has acquired 3D at Depth Inc., a Colorado-based company with a subsea light detection and range, LiDAR, technology for inspection and data services. The deal closed for approximately $34 million in stock, before certain purchase price adjustments and the assumption of debt, per the news release.

“The future of subsea services lies in autonomy, data gathering, and analytics,” Nicolaus Radford, Nauticus’ founder and CEO, says in the release. “LiDAR has long since been core to terrestrial autonomy and by adding 3D’s capabilities to the Nauticus Fleet, we enhance autonomous vehicles in the offshore market. This acquisition increases the value of Nauticus’ fleet services and positions the Company to capitalize on data acquisition and analytics for subsea operations.”

The acquisition expands Nauticus' capabilities for its autonomous underwater suite of technology for its customers. With the deal, Nauticus will assume 20 patents secured or pending by acquiring 3D, which generated $9.8 million in revenue last year and is slated to grow revenue by more than 20 percent in 2023, according to the release.

“In addition to the compelling strategic and financial benefits of this deal, the acquisition will add momentum to our commercial growth trajectory,” Radford continues. “By adding 3D’s technology, offshore inspection and data service, and experienced team, Nauticus expands our addressable market and accelerates our customer penetration in the offshore energy and renewables industries.”

Founded in 2009, 3D will operate as a division of Nauticus when the deal closes sometime before the end of the year. Nauticus will also assume approximately $4.1 million of debt in the transaction.

“The Nauticus Robotics and 3D at Depth combination creates a compelling solution for the subsea market and should help improve our products and services for all our clients,” Carl Embry, founder and CEO of 3D at Depth, says in the release. “We believe the integration of our unique subsea multi-dimensional data collection and processing with an emerging leader in subsea robotics creates a differentiated offering for customers seeking safer, cleaner, lower-cost subsea services.”

Nauticus, founded by Radford in 2014 as Houston Mechatronics, went public via a blank check company last year.

Nauticus Robotics has extended a contract with one of its biggest customers. Photo via nauticusrobotics.com

Houston robotics startup secures $2.1M contract extension with engineering tech co.

customer success

A Houston startup has just secured an extended contract with a major customer.

Webster-based Nauticus Robotics, a maker of autonomous oceangoing robots, has bulked up its current contract with Reston, Virginia-based Leidos in a $2.1 million extension.. That brings Leidos’ total financial commitment from $14.5 million to $16.6 million.

In partnership with Leidos, Nauticus is developing next-generation underwater drones for business and military customers. These unmanned underwater vehicles are being designed to carry out tasks that are dangerous or impossible for human divers to do, such as mapping the ocean floor, studying sea creatures, and monitoring water pollution.

“This very important work combines great attributes from each company to deploy a truly novel subsea capability,” says Nicolaus Radford, founder and CEO of Nauticus.

Based on Nauticus’ Aquanaut product, these robots will feature the company’s toolKITT software, which supplies artificial intelligence capabilities to undersea vehicles.

“This work is the centerpiece of Nauticus’ excellent collaboration with Leidos,” says Radford, “and I look forward to continuing our mutual progress of advancing the state of the art in undersea vehicles.”

Founded in 2014 as Houston Mechatronics, Nauticus adopted its current branding in 2021. Last year, Nauticus became a publicly traded company through a merger with a “blank check” company called CleanTech Acquisition Corp.

During the first six months of 2023, Nauticus generated revenue of nearly $4 million, down from a little over $5.2 million in the same period last year. Its operating loss for the first half of 2023 was almost $12.7 million, up from slightly more than $5.2 million during the same time in 2022.

Nauticus attributes some of the revenue drop to delays in authorization of contracts with government agencies.

The company recently lined up a $15 million debt facility to bolster its operations.

“I’ve never been more optimistic about the future of Nauticus. We employ some of the best minds in the industry, and we are positioned with the right product at the right time to disrupt a $30 billion market,” Radford said earlier this month. “Demand from potential customers is high, but constructing our fleet is capital-intensive.”

More good news for Nauticus: It recently signed contracts with energy giants Shell and Petrobras. Financial terms weren’t disclosed.

The Shell contract involves a project in the Gulf of Mexico’s Princess oil and gas field that Nauticus says could lead to millions of dollars in additional contracts over the next few years. Shell operates the offshore field, which is around 40 miles southeast of New Orleans, and owns a nearly 50 percent stake in it.

Co-owners of the Princess project are Houston-based ConocoPhillips, Spring-based ExxonMobil, and London-based BP, whose North American headquarters is in Houston. In July, the Reuters news service reported that ConocoPhillips was eyeing a sale of its stake in the Princess field.

Under the contract with Petrobras, whose U.S. arm is based in Houston, Nauticus will dispatch its Aquanaut robot to support the Brazilian energy company’s offshore activities in South America. Nauticus says this deal “opens up a potential market opportunity” in Brazil exceeding $100 million a year.

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This article originally ran on EnergyCapital.

In the latest round up of Houston innovation news you may have missed, an offshore robotics company has rebranded, two startups earned bragging rights, and more. Photo via Getty Images

Houston robotics company rebrands, startups snag​  international spotlights, and more local innovation news

short stories

Houston startups have had a busy fourth quarter so far with exciting news from all around the local innovation ecosystem.

In this roundup of short stories within Houston innovation, a pair of Houston startups receive national and international praise, a local robotics company rebrands, Houston Community College receives funding for BIPOC female founders, and more.

Houston-area robotics company rebrands

Nicolaus Radford is the founder of Nauticus Robotics Inc., neé Houston Mechatronics. Photo courtesy

Houston Mechatronics Inc. based in Webster, Texas, announced that it has rebranded its offshore robotics firm as Nauticus Robotics Inc.

"The name Nauticus Robotics makes clear our commitment to the blue economy," says Nicolaus Radford, the company's founder and CEO, in a news release. "Our mission is to grow that economy through sustainable robotics that deliver value while protecting our planet's most valuable resources. This rebrand aligns us with that goal and positions us as a leader in our space."

The company has also launched a new website, representing an expanded vision of "Green robotics for a blue economy," according to the news release.

"Our new website will really lead the charge for us on the sales side," says Todd Newell, senior vice president of business development at Nauticus Robotics, in the release. "Prospective customers can get an overview of our robotics and their capabilities. If they desire, they can download detailed specifications to see how a product might fit into their operations. And we've made it very easy for those interested in a demo or a call to quickly get in touch with our team."

Houston IT company forms new partnership

Joe Alapat is the CEO of Houston-based Liongard. Courtesy of Liongard

Liongard has formed a new partnership with email defense solution Vade to release a new tool for its users. The feature automatically surfaces critical account data, streamlining user management, and billing for M365 users, according to a news release.

"I'm very pleased that Vade for M365 is now integrated with Liongard's leading IT automation platform," says Adrien Gendre, chief technology and product officer at Vade, in the release. "MSPs who offer managed cybersecurity can now combine the threat detection and remediation capabilities of Vade for M365 with the automation and unified visibility of Liongard. Together, Liongard and Vade for M365 give MSPs the tools they need to save time, improve efficiencies, and grow their businesses."

The tool is already included in Liongard’s latest release and users can leverage licensing, billing, and security data to simplify security management, accounting, and reporting.

“We’re very excited about our new Vade Inspector and the value it brings to the MSP community,” says Matt Miller, vice president of product for Liongard. “Both Vade and Liongard are committed to helping the managed services community stay security-focused. This Inspector enables MSPs to maintain a strong security posture through automation, with the added benefit of saving time and effort across the organization.”

Houston startup snags national spotlight

Cobalt's founders wanted to avoid harsh alcoholic smells and opted for calming and fun scents. Photo courtesy of Cobalt

Southern Living magazine's December issue features the annual holiday gift guide, and making the list this year is Houston-based small business Cobalt's Crisp Peppermint Hand Sanitizer.

“We are beyond thrilled to be included in Southern Living magazine with the best company,” says Christina Milligan, co-founder of Cobalt, in a news release. “It’s so exciting to see how much Cobalt has grown in the past 12 months. The idea has surpassed the pandemic and become an everyday necessity for healthy lifestyles. What started out as blending and filling each bottle from our kitchen tables has evolved into corporate partnerships, multiple scents, and new product lines. We are so grateful for all of our customers across the country and look forward to the next phase of Cobalt.”

Milligan and Molly Voorhees launched Cobalt in November 2020 with a line of personal-sized surface cleaners, hand sanitizers, and travel kits.

Cobalt is the only Houston-based company in the 2021 guide, according to the release. The issue is on newsstands now.

Houston blockchain company wins startup of the year

Data Gumbo's team was recognized internationally for its impact. Courtesy of Data Gumbo

Data Gumbo, which has created an industrial smart contract network company, announced last month that it has been named the Oil and Gas Start Up Company of the Year at the Abu Dhabi International Petroleum Exhibition and Conference Awards Gala — the largest annual oil and gas awards event in the Middle East.

According to a news release from the company, "Data Gumbo was recognized for its potential to reshape the energy industry based on its continued innovation, strong business model and the impressive impact of its global industrial smart contract network."

“Our industrial smart contract network, GumboNet, offers the new gold standard for organizations to execute business better through guaranteed transactional certainty across commercial relationships,” says Andrew Bruce, CEO and founder of Data Gumbo. “It’s an honor to be recognized by ADIPEC for our work and commitment to expanding our network across the global energy industry, allowing companies to eliminate the lack of trust in industrial sectors, streamline contract execution and capture significant cost savings.”

The 11th annual ADIPEC Awards' judges reviewed more than 700 entries from over 50 countries across digitalization, sustainability, research, innovation and more. For more info on the ADIPEC Awards, click here.

Houston university system receives $750,000 grant to drive women-owned business success

HCC has fresh funds to support female entrepreneurs. Photo via Getty Images

Wells Fargo granted $750,000 to Houston Community College to support the new Open for Business program aimed at empowering women-owned businesses in the Houston region. The grant is part of a $420 million small business recovery effort by Wells Fargo to support nonprofit and educational organizations assisting women of color in overcoming longstanding obstacles to entrepreneurship.

“We are delighted to broaden our programs to help women succeed in owning and operating businesses,” says Maya Durnovo, HCC’s chief entrepreneurial officer, in a news release, adding that the program has a particular focus on African American, Indo-American, Hispanic, Asian and Native American women.

The Open for Business Program – led by Director Tamala Austin – is already staffed with more than 165 women registered in the program.

“We can only imagine what kinds of businesses might have taken off, what products consumers might have enjoyed and what returns might have been realized had women and people of color enjoyed equal access to capital and opportunity,” Durnovo says in the release.

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Houston cardiac health startup raises $43 million series B to grow AI-backed platform

money moves

A Houston-based tech company that has a product line of software solutions for cardiac health has raised funding.

Octagos Health, the parent company of Atlas AI — a software platform for cardiac devices like pacemakers, defibrillators, ambulatory monitors and consumer wearables — has announced a $43 million series B raise that will bring their technology to many more hearts.

Morgan Stanley Investment Capital led the investment, which also included funds from Mucker Capital and other continuing strategic investors. The goal of the raise is to supply funds to accelerate Atlas AI’s growth across the United States and to expand into other areas of care, including ambulatory monitors, consumer wearables, and sleep.

"This investment will enable us to accelerate enhancements to our platform, in addition to scaling our commercial team and operations. We are currently the only company that helps cardiology practices migrate their historical data from legacy software providers and fully integrates with any EHR (exertion heart rate) system. We do this while enabling customized reporting supported by patient and practice decision-support analytics," says Eric Olsen, COO of Octagos Health, in a press release.

Octagos Health was founded by a team of healthcare pros including CEO Shanti Bansal, a cardiologist and founder of Houston Heart Rhythm, an atrial fibrillation center. The goal was to find a new way to deal with the massive amount of data that clinicians encounter each day in a way that combines software and the work of human doctors.

According to the Octagos Health website, “Our solution allows clinicians to focus on other ways of delivering meaningful healthcare and more efficiently manage their remotely monitored patients.”

It works thanks to customizable reporting features that allow patients’ healthcare teams to get help while monitoring them, but to do it precisely as they would if they were crunching numbers themselves.

"We are excited to partner with Octagos Health and support their vision of transforming cardiac care," says Melissa Daniels, managing director of Morgan Stanley Expansion Capital. "Octagos Health has demonstrated exceptional growth and innovation in a critical area of healthcare. We believe their platform and vertically integrated software and services significantly improve patient care and streamline cardiac monitoring processes for healthcare providers."

Will Hsu, co-founder and partner of Mucker Capital, agrees. “Octagos Health is poised for scale – industry leading gross margins, a very sticky product that doctors and clinical staff love, and a market ready for disruption with artificial intelligence. This is the new wave for diagnostic care,” he says. And with this raise, it will be available to even more clinicians and patients across the country.

Houston biotech company expands leadership as it commercializes sustainable products

joining the team

Houston-based biotech company Cemvita recently tapped two executives to help commercialize its sustainable fuel made from carbon waste.

Nádia Skorupa Parachin came aboard as vice president of industrial biotechnology, and Phil Garcia was promoted to vice president of commercialization.

Parachin most recently oversaw several projects at Boston-based biotech company Ginkjo Bioworks. She previously co-founded Brazilian biotech startup Integra Bioprocessos.

Parachin will lead the Cemvita team that’s developing technology for production of bio-manufactured oil.

“It’s a fantastic moment, as we’re poised to take our prototyping to the next level, and all under the innovative direction of our co-founder Tara Karimi,” Parachin says in a news release. “We will be bringing something truly remarkable to market and ensuring it’s cost-effective.”

Moji Karimi, co-founder and CEO of Cemvita, says the hiring of Parachin represents “the natural next step” toward commercializing the startup’s carbon-to-oil process.

“Her background prepared her to bring the best out of the scientists at the inflection point of commercialization — really bringing things to life,” says Moji Karimi, Tara’s brother.

Parachin joins Garcia on Cemvita’s executive team.

Before being promoted to vice president of commercialization, Garcia was the startup’s commercial director and business development manager. He has a background in engineering and business development.

Founded in 2017, Cemvita recently announced a breakthrough that enables production of large quantities of oil derived from carbon waste.

In 2023, United Airlines agreed to buy up to one billion gallons of sustainable aviation fuel from Cemvita’s first full-scale plant over the course of 20 years.

Cemvita’s investors include the UAV Sustainable Flight Fund, an investment arm of Chicago-based United; Oxy Low Carbon Ventures, an investment arm of Houston-based energy company Occidental Petroleum; and Japanese equipment and machinery manufacturer Mitsubishi Heavy Industries.

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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 a logistics startup founder, a marketing expert, and a solar energy innovator.

Matthew Costello, CEO and co-founder of Voyager Portal

Houston logistics SaaS innovator is making waves with its expanded maritime shipping platform. Photo courtesy of Voyager

For several years now, Matthew Costello has been navigating the maritime shipping industry looking for problems to solve for customers with his company, Voyager Portal.

Initially, that meant designing a software platform to enhance communications and organization of the many massive and intricate global shipments happening every day. Founded in 2018 by Costello and COO Bret Smart, Voyager Portal became a integral tool for the industry that helps users manage the full lifecycle of their voyages — from planning to delivery.

"The software landscape has changed tremendously in the maritime space. Back in 2018, we were one of a small handful of technology startups in this space," Costello, who serves as CEO of Voyager, says on the Houston Innovators Podcast. "Now that's changed. ... There's really a huge wave of innovation happening in maritime right now." Read more.

Arielle Rogg, principal and founder of Rogg Enterprises

Arielle Rogg writes in a guest column for InnovationMap about AI in the workforce. Photo via LinkedIn

Arielle Rogg isn't worried about artificial intelligence coming for her job. In fact, she has three reasons why, and she outlines them in a guest column for InnovationMap.

"The advent of AI pushes us humans to acquire new skills and hone our existing abilities so we can work alongside these evolving technologies in a collaborative fashion. AI augments human capabilities rather than replacing us. I believe it will help our society embrace lifelong learning, creating new industries and jobs that have never existed before," she writes in the piece. Read more.

Nathan Childress, founder of Solar Slice

Solar Slice Founder Nathan Childress says his new venture offers a fulfilling way to encourage and promote solar energy and a greener planet. Photo via LinkedIn

Nuclear engineer and entrepreneur Nathan Childress wants consumers to capture their own ray of sunlight to brighten the prospect of making clean energy a bigger part of the power grid. That's why he founded Solar Slice. The new venture offers a fulfilling way to encourage and promote solar energy and a greener planet.

Although trained in nuclear power plant design, solar power drew his interest as a cheaper and more accessible alternative, and Childress tells InnovationMap that he thinks that the transition to cleaner energy, in Texas especially, needs to step up.

Recent studies show that 80 to 90 percent of the money invested into fighting climate change “aren’t going to things that people actually consider helpful,” Childress says, adding that “they’re more just projects that sound good, that are not actually taking any action." Read more.