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.

------

Portions of this interview have been edited.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

5+ must-know application deadlines for Houston innovators

apply now

Editor's note: As 2026 ramps up, the Houston innovation scene is looking for the latest groups of innovative startups that'll make an impact. A number of accelerators and competitions have opened applications. Read below to see which might be a good fit for you or your venture. And take careful note of the deadlines. Please note: this article may be updated to include additional information and programs.

Did we miss an accelerator or competition accepting applications? Email innoeditor@innovationmap.com for editorial consideration.

2026 HCC Business Plan Competition

Deadline: Jan. 26

Details: HCC’s annual Business Plan Competition (BPC) is an opportunity for proposed, startup and existing entrepreneurs to develop focused plans to start or grow their businesses. Accepted teams will be announced and training will begin in late February and run through early June, with six free, three-hour training sessions. Advising will be provided to each accepted team. Applicants can apply as a team of up to five persons. Finalists will present to to gudges on May 27, 2026. Last year, $26,000 was awarded in seed money to the top five teams. In-kind prizes were also awarded to all graduating teams including free products, services and memberships, with an estimated in-kind value totaling $147,000. Find more information here.

University of Houston Technology Bridge Innov8 Hub (Spring 2026)

Deadline: Jan . 30

Details: UHTB Innov8 Hub’s immersive, 12-week startup acceleration program designed to help early-stage founders launch and scale their technology startups. Selected participants will gain access to expert mentors and advisors, collaborate with a cohort of peers, and compete for cash prizes during our final pitch event. The cohort begins Feb. 16, 2026. The program culminates in Pitch Day, where participants present their ventures to an audience of investors and partners from across the UH innovation ecosystem. Find more information here.

Rice Business Plan Competition 2026

Deadline: Jan. 31

Details: The Rice Business Plan Competition, hosted by the Rice Alliance for Technology and Entrepreneurship, gives collegiate entrepreneurs real-world experience to pitch their startups, enhance their business strategy and learn what it takes to launch a successful company. Forty-two teams will compete for more than $1 million in cash, investments and prizes on April 9-11, 2026. Find more information here.

Rice Veterans Business Battle 2026

Deadline: Jan. 31

Details: The Rice Veterans Business Battle is one of the nation’s largest pitch competitions for veteran-led startups, providing founders with mentorship, exposure to investors and the opportunity to compete for non-dilutive cash prizes. The event has led to more than $10 million of investments since it began in 2015. Teams will compete April 8-9, 2026. Find more information here.

TEX-E Fellows Application 2026-2027

Deadline: Feb. 10

Details: The TEX‑E Fellowship is a hands-on program designed for students interested in energy, climate, and entrepreneurship across Texas. It connects participants with industry mentors, startup founders, investors and academic leaders while providing practical, "real-world" experience in customer discovery, business modeling, and energy-transition innovation. Fellows gain access to workshops, real-world projects, and a statewide network shaping the future of energy and climate solutions. Participants must be a student at PVAMU, UH, UT Austin, Rice University, MIT or Texas A&M. Find more information here.

Greentown Go Make 2026

Deadline: March 10

Details: Greentown Go Make 2026 is an open-innovation program with Shell and Technip Energies. The six-month program is advancing industrial decarbonization by accelerating catalytic innovations. Selected startups will gain access to a structured platform to engage leadership from Shell and Technip Energies and explore potential partnership outcomes, including pilots and demonstrations. They’ll also receive networking opportunities, partnership-focused programming, and marketing visibility throughout the program. The cohort will be selected in May. Find more information here.

Houston startups closed $1.75 billion in 2025 VC funding, says report

by the numbers

Going against national trends, Houston-area startups raised 7 percent less venture capital last year than they did in 2024, according to the new PitchBook-NVCA Venture Monitor report.

The report shows local startups collected $1.75 billion in venture capital in 2025, down from $1.89 billion the previous year.

Houston-based geothermal energy company Fervo Energy received a big chunk of the region’s VC funding last year. Altogether, the startup snagged $562 million in investments, as well as a $60 million extension of an existing loan and $45.6 million in debt financing. The bulk of the 2025 haul was a $462 million Series E round.

In the fourth quarter of last year, Houston-area VC funding totaled $627.68 million. That was a 22 percent drop from $765.03 million during the same period in 2024. Still, the Q4 total was the biggest quarterly total in 2025.

Across the country, startups picked up $339.4 trillion in VC funding last year, a 59 percent increase from $213.2 trillion in 2024, according to the report. Over the last 10 years, only the VC total in 2021 ($358.2 trillion) surpassed the total from 2025.

Nationwide, startups in the artificial intelligence and machine learning sector accounted for the biggest share of VC funding (65.4 percent) in 2025, followed by software-as-a-service (SaaS), big data, manufacturing, life sciences and healthtech, according to the report.

“Despite an overall lack of new fundraising and a liquidity market that did not shape up as hoped in 2025, deal activity has begun a phase of regrowth, with deal count estimates showing increases at each stage, and deal value, though concentrated in a small number of deals, falling just [8 percent] short of the 2021 figure,” the report reads.

Sandbox VR brings new gaming center to Houston's tech-savvy population

Get In The Game

Sandbox VR, a futuristic, full-body virtual reality gaming experience, has announced it will enter the Houston market this month, opening its first local gaming center on January 23.

"Houston's reputation as a hub for innovation and technology makes it a perfect fit for Sandbox VR," said Steve Zhao, CEO and founder of Sandbox VR, in a statement. "The city's diverse, tech-savvy population and strong entertainment culture create an ideal environment for our immersive VR experiences. LOL Entertainment continues to exceed our expectations as a partner, and we're excited to bring our cutting-edge virtual reality gaming to Texas's largest city."

The new gaming center opens Friday, January 23 at 797 Sorella Court in CityCentre.

One of the games that stands out is the Stranger Things: Catalyst game, based on the blockbuster Netflix television series. Groups of one to six players will be dropped into the sinister Hawkins Lab and the mysterious Upside Down to fight Demogorgons and other monsters. The game features Matthew Modine reprising his role as Dr. Martin "Papa" Brenner, who imbues players with psychic powers.

Other games include the supernatural pirate title The Curse of Davy Jones and other Netflix tie-ins based on Zack Snyder's Rebel Moon and Squid Game. Sandbox VR offers fully-immersive group play activities that range from combat to puzzle solving for a variety of age groups.

The opening of Sandbox VR is another part of the expansion of LOL Entertainment, who touts itself as one of the pre-eminent hosts of immersive and gaming experiences in the U.S. Sandbox VR will be their first entry into the Houston market, with another immersive group adventure game, Time Mission, set to open at the the Marq'E Entertainment District later this year.

“Bringing Sandbox VR to CityCentre Houston is a big milestone for LOL Entertainment, for Sandbox VR, and for this market,” said Rob Cooper, CEO of LOL Entertainment. “Houston is a fast-growing, experience-driven city, and we’re excited to give locals and visitors a truly immersive, social gaming destination that you can’t replicate anywhere.”

Presale tickets for the grand opening of Sandbox VR are available here. Standard pricing is $55-$65 per event, but Sandbox VR is running a special for 30 percent off with code OPEN30 for those who purchase before Thursday, January 22. Presale buyers are also entered into a drawing for free Sandbox VR for one year.

---

This article originally appeared on CultureMap.com.