How a Houston entrepreneur is bringing design to startups — and making the world a better place

Design thinking

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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Tesla recalling more than 375,000 vehicles due to power steering issue

Tesla Talk

Tesla is recalling more than 375,000 vehicles due to a power steering issue.

The recall is for certain 2023 Model 3 and Model Y vehicles operating software prior to 2023.38.4, according to the National Highway Traffic Safety Administration.

The printed circuit board for the electronic power steering assist may become overstressed, causing a loss of power steering assist when the vehicle reaches a stop and then accelerates again, the agency said.

The loss of power could required more effort to control the car by drivers, particularly at low speeds, increasing the risk of a crash.

Tesla isn't aware of any crashes, injuries, or deaths related to the condition.

The electric vehicle maker headed by Elon Musk has released a free software update to address the issue.

Letters are expected to be sent to vehicle owners on March 25. Owners may contact Tesla customer service at 1-877-798-3752 or the NHTSA at 1-888-327-4236.

Houston space tech companies land $25 million from Texas commission

Out Of This World

Two Houston aerospace companies have collectively received $25 million in grants from the Texas Space Commission.

Starlab Space picked up a $15 million grant, and Intuitive Machines gained a $10 million grant, according to a Space Commission news release.

Starlab Space says the money will help it develop the Systems Integration Lab in Webster, which will feature two components — the main lab and a software verification facility. The integration lab will aid creation of Starlab’s commercial space station.

“To ensure the success of our future space missions, we are starting with state-of-the-art testing facilities that will include the closest approximation to the flight environment as possible and allow us to verify requirements and validate the design of the Starlab space station,” Starlab CEO Tim Kopra said in a news release.

Starlab’s grant comes on top of a $217.5 million award from NASA to help eventually transition activity from the soon-to-be-retired International Space Station to new commercial destinations.

Intuitive Machines is a space exploration, infrastructure and services company. Among its projects are a lunar lander designed to land on the moon and a lunar rover designed for astronauts to travel on the moon’s surface.

The grants come from the Space Commission’s Space Exploration and Aeronautics Research Fund, which recently awarded $47.7 million to Texas companies.

Other recipients were:

Cedar Park-based Firefly Aerospace, which received $8.2 million
Brownsville-based Space Exploration Technologies (SpaceX), which received $7.5 million
Van Horn-based Blue Origin, which received $7 million

Gwen Griffin, chair of the commission, says the grants “will support Texas companies as we grow commercial, military, and civil aerospace activity across the state.”

State lawmakers established the commission in 2023, along with the Texas Aerospace Research & Space Economy Consortium, to bolster the state’s space industry.

Houston experts: Can AI bridge the gap between tech ambitions and market realities?

guest column

Despite successful IPOs from the likes of Ibotta, Reddit and OneStream, 2024 hasn’t provided the influx of capital-raising opportunities that many late-stage tech startups and venture capitalists (VCs) have been waiting for. Since highs last seen in 2021—when 90 tech companies went public—the IPO market has been effectively frozen, with just five tech IPOs between January and September 2024.

As a result, limited partners have not been able to replenish investments and redeploy capital. This shifting investment landscape has VCs and tech leaders feeling stuck in a holding pattern. Tech leaders are hesitant to enter the public markets because valuations are down 30 percent to 40 percent from 2021, which is also making late-stage fundraising more challenging. After all, longer IPO timelines mean fewer exit opportunities for VCs and reduced capital from institutional investors who are turning toward shorter-term investments with more liquid exit options.

Of course, there’s always an exception. And in the case of a slowed IPO market, a select slice of tech companies—AI-related companies—are far outperforming others. While not every tech startup has AI software or infrastructure as their core offering, most can benefit from using AI to revise their playbook and become more attractive to investors.

Unlocking Growth Potential with AI

While overall tech startup investment has slowed, the AI sector burns bright. This presents an opportunity for companies that strategically leverage AI, not just as a buzzword but as a tool for genuine growth and differentiation. Imagine a future where AI-powered insights unlock unprecedented efficiency, customer engagement and a paradigm shift in value creation. This isn’t just about weathering the current storm of reduced access to capital; it’s about emerging stronger, ready to lead the next wave of tech innovation.

Here's how to navigate the AI frontier and unlock its potential:

Understand that data is the foundation of AI success. AI is powerful, but it’s not magic. It thrives on high-quality, interconnected data. Before diving into AI initiatives, companies must assess their data health. Is it structured in a way that AI can understand? Does it go beyond raw numbers to capture context and meaning—like customer sentiment alongside sales figures? Rethinking data infrastructure is often the crucial first step.

Focus on amplifying strengths, not reinventing the wheel. The allure of AI can tempt companies into pursuing radical reinvention. However, a more effective strategy is to leverage AI to enhance existing strengths and address core customer needs. Why do customers choose your company? How can AI supercharge your value proposition? Consider Reddit’s strategic approach: They didn’t overhaul their platform before their 2024 IPO. Instead, they showcased the value of their vast online communities as fertile ground for AI development, leading to a remarkable first-day stock surge of 48 percent.
Use AI as a customer-centric force multiplier. Companies with a deep understanding of their customer base are primed for AI success. By integrating AI into the very core of their product or service—the reason customers choose them—they can create a decisive competitive advantage based on delivering tangible customer value.

From Incremental Gains to Transformative Growth

This practical, customer-centric approach has the potential to help companies generate immediate growth while laying the foundation for future reinvention. By leveraging AI to optimize operations, deepen customer relationships, and redefine industry paradigms, late-state tech startups can not only survive but thrive in a dynamic market. The future belongs to those who embrace AI not as a destination but as a continuous journey of innovation and growth.