Jez Babarczy, along with his company, NUU Group, is changing the world — one pixel at a time. Courtesy of NUU Group

Six years ago, Jez Babarczy and Gabriel Gurrola launched a startup in Babarczy's living room in Katy. The goal was to launch a company that was based in Houston, but known around the world for doing top-notch creative work.

"I saw a gap in the market," Babarczy says. "Houston [was] not known for world-renowned creatives. Companies tend to gravitate toward other cities, like New York, Los Angeles, Chicago, or Atlanta. I think we have amazing talent in Houston, and I saw an opportunity and a need for an agency doing [work] in a creative field."

Fast-forward six years, and NUU Group has worked on tech and branding projects with Fortune 500 companies, such as Bechtel and Cemex, as well as the Houston Texans, FIFA, Civic Nation, and a slew of startups. Its mission is simple: to provide design and creative services to companies seeking to do good in their industries or communities. NUU Group works with companies in all industries, and is planning to grow its footprint by opening more offices in the U.S. and around the globe.

The company, which employs 40 people, has its main headquarters office in Houston and opened an office in Querataro, Mexico last year. NUU Group's Querataro office, which has 20 employees, works to capitalize on Mexico City's thriving business sector.

NUU Group is led by Babarczy, Gurrola, and Kevin Daughtry. Babarczy spoke with InnovationMap about what led him to start NUU Group, as well as what's on-tap for his company — and Houston's broader startup community as a whole.

InnovationMap: What differentiates NUU Group from the competition?

Jez Babarczy: I think NUU Group offers something unique and different. We have a global mission and mantra that we remind ourselves of daily, and it fuels the work we do. Our mission is to explore new things that inspire us, and the clients we work with, and how we approach the work.

If we're truly going to have an impact within culture, within our industry, and within the lives of our clients, I think we need to look at our potential for doing good. That's something we've really embraced. It's part of NUU's existence to give back to empower others. It's easy to say you're a good-person organization, but it's different to advocate for others in a consistent manner.

IM: What core services does NUU Group provide?

JB: More than anything, we're designers first. The agency started as being very design-centric, but it's expanded beyond that. We're not just design-first, but focus on human-centric design and creating experiences that really resonate with the end user.

IM: What brought NUU Group to Mexico?

JB: So, Mexico was an attempt to explore new things, along with some business opportunities that were there for us. The stars aligned when we were looking at a second office location, and there were several options on the table. Querataro is a city around two-and-a-half hours from Mexico City, which is definitely a hub for things going on around the world. It's a great place and, given the business opportunities there, it made a lot of sense.

IM: What's you client portfolio look like? What industries have the most need for NUU Group's services?

JB: We're pretty industry agnostic in terms of clientele. There's definitely an ability to gravitate toward Houston's primary industries — energy and health care — but, we purposefully to work with clients across industries. A lot of the time, we bring in someone who's a little on the outside or on the fringe to look at a problem from a unique perspective. That that's where we shine. We also work with global nonprofits, startups and companies that we believe are doing some awesome stuff.

IM: What are the pros and cons of being based in Houston?

JB: The pros are that Houston is a great city, and it's a great city for business. We have a lot of big companies here, and attitude of, 'Let's get stuff done, let's collaborate and let's work together.' I think that permeates Houston's culture, which is great for doing business. Some of the cons, I think, are battling the stereotype that Houston isn't creative, that Houston is just an oil and gas city, or that Houston is flat and hot and humid. There's a little bit of an uphill battle in terms of recruiting. We've seen that people see Houston as a place to go if you have to go, but not a place you'd necessarily want to go to. There's an opportunity to tell a better story for Houston.

IM: Over the past five years, how have you seen Houston's innovation community grow or change?

JB: Innovation has definitely become more of a popular buzzword to the point where it's slightly nauseating. Along with the boom in technology and the rate at which it advances, our position in the national and global marketplace has led to accelerating these different innovation hubs within companies and coworking spaces. I think there's still an opportunity for Houston to define what innovation really looks like, and to ask ourselves, 'How are we accelerating it? How are we empowering it? How are we really doing it, when the rubber meets the road?' It's definitely something that's evolving, and it's evolving in the right direction. …

There's this anxiety over being left behind, and this frantic sense of [needing] to do what others are doing. Just because one thing is working in California, doesn't mean that's exactly what needs to happen here. I hope Houston can be willing to be open to really move innovation forward for Houston and Houston companies.

IM: What's next for NUU Group?

JB: We started off very branding-focused, and focused on visual identity design. Last year, we made some pretty significant shifts and positioned the agency stronger on the strategy and technology side. So, we have a team of not only graphic designers and visual storytellers, but of strategists, software engineers, frontier technology thought leaders and experts. We're really bringing together design strategy and technology to solve for business challenges.

IM: Where do you see NUU Group expanding to next? Any target cities in mind?

JB: There's no target city right now that I can share. We'll probably open another office in the U.S., and we have sights set on a couple of places internationally. Those offices will probably open in the next three or five years.

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Portions of this interview have been edited.

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Houston unicorn closes $421M to fuel first phase of flagship energy project

Heating Up

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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This article first appeared on EnergyCapitalHTX.com.

Houston food giant Sysco to acquire competitor in $29 billion deal

Mergers & Acquisitions

Sysco, the nation's largest food distributor, will acquire supplier Restaurant Depot in a deal worth more than $29 billion.

The acquisition would create a closer link between Sysco and its customers that right now turn to Restaurant Depot for supplies needed quickly in an industry segment known as “cash-and-carry wholesale.”

Sysco, based in Houston, serves more than 700,000 restaurants, hospitals, schools, and hotels, supplying them with everything from butter and eggs to napkins. Those goods are typically acquired ahead of time based on how much traffic that restaurants typically see.

Restaurant Depot offers memberships to mom-and-pop restaurants and other businesses, giving them access to warehouses stocked with supplies for when they run short of what they've purchased from suppliers like Sysco.

It is a fast growing and high-margin segment that will likely mean thousands of restaurants will rely increasingly on Sysco for day-to-day needs.

Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares. Based on Sysco’s closing share price of $81.80 as of March 27, 2026, the deal has an enterprise value of about $29.1 billion.

Restaurant Depot was founded in Brooklyn in 1976. The family-run business then known as Jetro Restaurant Depot, has become the nation's largest cash-and-carry wholesaler.

The boards of both companies have approved the acquisition, but it would still need regulatory approval.

Shares of Sysco Corp. tumbled 13% Monday to $71.26, an initial decline some industry analysts expected given the cost of the deal.

Houston researcher builds radar to make self-driving cars safer

eyes on the road

A Rice University researcher is giving autonomous vehicles an “extra set of eyes.”

Current autonomous vehicles (AVs) can have an incomplete view of their surroundings, and challenges like pedestrian movement, low-light conditions and adverse weather only compound these visibility limitations.

Kun Woo Cho, a postdoctoral researcher in the lab of Rice professor of electrical and computer engineering Ashutosh Sabharwal, has developed EyeDAR to help address such issues and enhance the vehicles’ sensing accuracy. Her research was supported in part by the National Science Foundation.

The EyeDAR is an orange-sized, low-power, millimeter-wave radar that could be placed at streetlights and intersections. Its design was inspired by that of the human eye. Researchers envision that the low-cost sensors could help ensure that AVs always pick up on emergent obstacles, even when the vehicles are not within proper range for their onboard sensors and when visibility is limited.

“Current automotive sensor systems like cameras and lidar struggle with poor visibility such as you would encounter due to rain or fog or in low-lighting conditions,” Cho said in a news release. “Radar, on the other hand, operates reliably in all weather and lighting conditions and can even see through obstacles.”

Signals from a typical radar system scatter when they encounter an obstacle. Some of the signal is reflected back to the source, but most of it is often lost. In the case of AVs, this means that "pedestrians emerging from behind large vehicles, cars creeping forward at intersections or cyclists approaching at odd angles can easily go unnoticed," according to Rice.

EyeDAR, however, works to capture lost radar reflections, determine their direction and report them back to the AV in a sequence of 0s and 1s.

“Like blinking Morse code,” Cho added. “EyeDAR is a talking sensor⎯it is a first instance of integrating radar sensing and communication functionality in a single design.”

After testing, EyeDAR was able to resolve target directions 200 times faster than conventional radar designs.

While EyeDAR currently targets risks associated with AVs, particularly in high-traffic urban areas, researchers also believe the technology behind it could complement artificial intelligence efforts and be integrated into robots, drones and wearable platforms.

“EyeDAR is an example of what I like to call ‘analog computing,’” Cho added in the release. “Over the past two decades, people have been focusing on the digital and software side of computation, and the analog, hardware side has been lagging behind. I want to explore this overlooked analog design space.”