The city's top power players within Houston's energy innovation ecosystem joined virtual SXSW to discuss Houston's life science innovation scene and developing an inclusive ecosystem. Photos courtesy

Another day of SXSW 2021 has concluded, and just like the first day, Houston innovators logged on to discuss technology and innovation that's taking off in town.

The second of the two days of programming focused on the development of the Houston innovation ecosystem — including how the city is factoring in diversity and inclusion into development — with interviews hosted by me, Natalie Harms, editor of InnovationMap. Missed out on the fun? Catch up with a few overheard moments from Houston House or stream the full interviews below.

"“We have to be true to ourselves of what works for Houston. Making sure the DEI is interwoven and in our DNA of our ecosystem so that we don’t make the same mistakes as other cities." — Ashley DeWalt, managing director of DivInc Houston

Video courtesy of the Greater Houston Partnership

Houston has an advantage in developing its innovation ecosystem because it can do so by learning from established ecosystems on the coasts. Locally, that means making diversity and inclusion a top priority. At a virtual SXSW Houston House panel, Ashley DeWalt, managing director of DivInc Houston, and Jan Odegard, interim executive director of The Ion, discuss the importance of prioritizing inclusion in developing Houston's innovation ecosystem. Click here to watch the full interview.

“This pandemic has really highlighted a lot of the health care disparities that are present within our systems. … Houston is in a unique position to address that.” — Fiona Mack, head of JLABS @ TMC

Video courtesy of the Greater Houston Partnership

The Texas Medical Center is the largest medical center in the world with over 10 million patients coming in annually — and JLABS @ TMC is right in the middle of that. With this access to patients and clinical trials, Houston has a lot of potential to attract new innovative companies solving the world's biggest health care problems. At a virtual SXSW Houston House HOU Talk, Fiona Mack, head of JLABS @TMC, discusses the momentum behind health tech innovation in Houston. Click here to watch the full interview.

“Whatever the training is, you have to actually create bias disruptors and points of friction and processes that change behavior. If we don’t have a way to implement what we learn, it doesn’t really change culture.” — LaTanya Flix, senior vice president at the GHP

Video courtesy of the Greater Houston Partnership

In light of the Black Lives Matter movement, corporations of all shapes and sizes were inspired to look inward to address inequity within their workforce — from training to shifts in workplace culture. At a virtual SXSW Houston House HOU Talk, LaTanya Flix, senior vice president of Diversity, Equity and Inclusion (DEI) at the Greater Houston Partnership, shares how she's on a mission to spread mindful DEI initiatives across all of the GHP's member organizations. Click here to watch the full interview.

“I see a world where I’m sitting in a boardroom, and I’m not the only woman anymore.” — Samantha Lewis, principal at Mercury Fund

Video courtesy of the Greater Houston Partnership

Women in venture capital are used to being the only women in the room and are fighting for that not to be the case for future generations. At a virtual SXSW Houston House panel, Sandy Guitar, managing director of the HX Venture Fund moderates a discussion with fellow women in VC, Paige Pitcher, director of innovation at Hines, and Samantha Lewis, principal at Mercury Fund. Click here to watch the full interview.

“There’s an incredible number of innovations that have popped up in Houston, but a lot of them have been centered around solving engineering-type problems at industrial scale — and that still exists, but doesn’t get as much coverage as consumer-facing technologies.” — Josh Pherigo, director of research and data analytics at GHP

Video courtesy of the Greater Houston Partnership

When tracking any sort of progress or growth, business look to their numbers and data. Houston's innovation system is no different. At a virtual SXSW Houston House HOU Talk, Josh Pherigo, director of research and data analytics at the Greater Houston Partnership, dives in deep with the facts and figures of Houston's burgeoning innovation ecosystem by following the venture dollars coming into local startups. Click here to watch the full interview.

“If you look at the density in Houston, being the energy capital of the United States, there are probably few places in the world where you can walk 15 minutes in either direction and talk to about 100 companies that would potentially be customers.” — Matthew Costello, CEO and co-founder of Voyager Portal

Video courtesy of the Greater Houston Partnership

A good startup idea comes from necessity and a way to apply technology to solve problems and shorten business delivery times, and the maritime shipping industry has a lot of opportunities for these types of innovations. At a virtual SXSW Houston House HOU Talk, Matthew Costello, CEO and co-founder of Voyager Portal, sets sail on a conversation about the maritime shipping industry — and how it was ripe with disruption. Click here to watch the full interview.

“You have institutions of exception in Houston where innovation flows from. The question isn’t that it’s not there, it’s how have we been tapping it.” — David Schubert, president of Magnolia Tejas Corp.

Video courtesy of the Greater Houston Partnership

Houston has a burgeoning life science innovation scene — but what's that next step for its development? At a virtual SXSW Houston House HOU Talk, David Schubert, president of Magnolia Tejas Corp. discusses the potential of Houston's world-class oncologists and biotech innovators have to make the city a hub for cancer innovation. Click here to watch the full interview.

This week's Houston innovators to know roundup includes Josh Pherigo of the Greater Houston Partnership, Brittany Barreto of FemTech Focus, and Ted Gutierrez of SecurityGate.io. Photos courtesy

3 Houston innovators to know this week

Who's who

Editor'snote: Another Monday, another round of innovators to know in Houston as you start your week. This week's edition features a researcher who has crunched the numbers on Houston's tech specialties, a founder who's shining a spotlight on femtech, and an entrepreneur who's snagged a deal with Chevron.

Josh Pherigo, research director of data analytics at the Greater Houston Partnership

Josh Pherigo at GHP used data to look into what tech specialties are thriving in Houston — and what niches have shown promising growth. Photo via LinkedIn

When Josh Pherigo decided to look where venture capital money was going in Houston, he did so to investigate what potential industries had growth opportunities. He found that Houston has an opportunity to be a leader in clean tech — but it has some in-state competition.

Pherigo's study for the Greater Houston Partnership found that there was a cleantech war emerging between Austin and Houston. While Houston's ecosystem has a greater presence of cleantech startups, Austin cleantech is still bringing in more VC investments. However, in Houston, between new corporate incubators and Greentown Labs entering Houston, the city is creating a lot of infrastructure for this industry.

"It's going to be interesting over the next few years to see how Houston can position itself as the leader in Texas for this, because they are going to have a lot of competition from Austin," Pherigo says. Read more.

Brittany Barreto, founder of FemTech Focus

Brittany Barreto launched FemTech Focus to help call attention to women's health and wellness, as well as to help accelerate companies with tech solutions within the field. Photo courtesy of FemTech Focus

Brittany Barreto has conducted dozens of interviews with femtech entrepreneurs, and it's become abundantly clear that general accelerators aren't giving femtech companies the full picture.

"Femtech startups actually need a little bit of different advice — that's why I'm very bullish on creating a femtech accelerator," Barreto says. "In femtech, we have some unique barriers. If you just go to a general accelerator, they might not cover these issues, and you'll be blindsighted."

Barreto is now working on specified program with The Guild that's launching this month. Then, in 2021, she hopes to go live with a full program under her company, FemTech Focus. Read more.

Ted Gutierrez, founder and CEO of SecurityGate.io

Chevron has tapped SecurityGate.io's risk management cybersecurity platform. Photo courtesy of Security Gate

Last week, Ted Gutierrez announced that his company, SecurityGate.io scored a partnership with Chevron. The deal means that the energy giant will adopt SecurityGate's risk management platform for scaling operational technology cybersecurity.

"We're very excited to be working with Chevron as they replace manual, spreadsheet cybersecurity practices with scalable, digitized processes," says Ted Gutierrez, CEO at SecurityGate.io, in a press release. "Their risk management team has done amazing work and it's exciting to see where they're headed." Read more.

Josh Pherigo at GHP used data to look into what tech specialties are thriving in Houston — and what niches have shown promising growth. Photo via LinkedIn

Greater Houston Partnership researcher identifies the city's top tech specialties

HOUSTON INNOVATORS PODCAST EPISODE 48

When you look at Houston's venture capital investment patterns, what do they tell you? To Josh Pherigo, research director of data analytics at the Greater Houston Partnership, it paints a picture of what tech and startup niches are thriving.

Based on PitchBook data, Pherigo put together an analysis of what industries within Houston are attracting the most investments. The study came out of the fact that Houston's hold on oil and gas is going to shift as the industry goes through the energy transition. Since O&G is such a crucial part of Houston's economy, the city will have to see a rise in new industries to remain competitive with its economy.

"The idea was to look at the innovation ecosystem and see what the technologies are that are doing well here at at attracting VC funding," Pherigo says on the Houston Innovators Podcast. "And by seeing how well certain technologies are doing, we'll be able to see if these are some areas that have some natural competitive advantages in Houston's economy that we can then use to spur growth in the next few decades — and even just out of the recession we're in right now."

The report found that life science and oil and gas currently attract the most VC investments in Houston, but Pherigo found potential in a few other industries like B2B payments technology — Houston-based fintech startup, HighRadius recently raised $125 million.

The study, which also compared Houston to Austin and Dallas, found that there was a cleantech war emerging between Austin and Houston. While Houston's ecosystem has a greater presence of cleantech startups, Austin cleantech is still bringing in more VC investments. However, in Houston, between new corporate incubators and Greentown Labs entering Houston, the city is creating a lot of infrastructure for this industry.

"It's going to be interesting over the next few years to see how Houston can position itself as the leader in Texas for this, because they are going to have a lot of competition from Austin," Pherigo says.

Pherigo goes into more detail about what he found interesting in the report, and even dives into what the data shows for the future of Houston's tech specialties in the episode of the podcast. You can listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

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Tech disruptions sparked by Texas co.'s update highlight the fragility of globally connected technology

Airlines, banks, hospitals and other risk-averse organizations around the world chose cybersecurity company CrowdStrike to protect their computer systems from hackers and data breaches.

But all it took was one faulty CrowdStrike software update to cause global disruptions Friday that grounded flights, knocked banks and media outlets offline, and disrupted hospitals, retailers and other services.

“This is a function of the very homogenous technology that goes into the backbone of all of our IT infrastructure,” said Gregory Falco, an assistant professor of engineering at Cornell University. “What really causes this mess is that we rely on very few companies, and everybody uses the same folks, so everyone goes down at the same time.”

The trouble with the update issued by CrowdStrike and affecting computers running Microsoft's Windows operating system was not a hacking incident or cyberattack, according to CrowdStrike, which apologized and said a fix was on the way.

But it wasn't an easy fix. It required “boots on the ground” to remediate, said Gartner analyst Eric Grenier.

“The fix is working, it’s just a very manual process and there’s no magic key to unlock it,” Grenier said. “I think that is probably what companies are struggling with the most here.”

While not everyone is a client of CrowdStrike and its platform known as Falcon, it is one of the leading cybersecurity providers, particularly in transportation, healthcare, banking and other sectors that have a lot at stake in keeping their computer systems working.

“They’re usually risk-averse organizations that don’t want something that’s crazy innovative, but that can work and also cover their butts when something goes wrong. That’s what CrowdStrike is,” Falco said. “And they’re looking around at their colleagues in other sectors and saying, ‘Oh, you know, this company also uses that, so I’m gonna need them, too.’”

Worrying about the fragility of a globally connected technology ecosystem is nothing new. It's what drove fears in the 1990s of a technical glitch that could cause chaos at the turn of the millennium.

“This is basically what we were all worried about with Y2K, except it’s actually happened this time,” wrote Australian cybersecurity consultant Troy Hunt on the social platform X.

Across the world Friday, affected computers were showing the “blue screen of death” — a sign that something went wrong with Microsoft's Windows operating system.

But what's different now is “that these companies are even more entrenched,” Falco said. "We like to think that we have a lot of players available. But at the end of the day, the biggest companies use all the same stuff.”

Founded in 2011 and publicly traded since 2019, CrowdStrike describes itself in its annual report to financial regulators as having “reinvented cybersecurity for the cloud era and transformed the way cybersecurity is delivered and experienced by customers.” It emphasizes its use of artificial intelligence in helping to keep pace with adversaries. It reported having 29,000 subscribing customers at the start of the year.

The Austin, Texas-based firm is one of the more visible cybersecurity companies in the world and spends heavily on marketing, including Super Bowl ads. At cybersecurity conferences, it's known for large booths displaying massive action-figure statues representing different state-sponsored hacking groups that CrowdStrike technology promises to defend against.

CrowdStrike CEO George Kurtz is among the most highly compensated in the world, recording more than $230 million in total compensation in the last three years. Kurtz is also a driver for a CrowdStrike-sponsored car racing team.

After his initial statement about the problem was criticized for lack of contrition, Kurtz apologized in a later social media post Friday and on NBC's “Today Show.”

“We understand the gravity of the situation and are deeply sorry for the inconvenience and disruption,” he said on X.

Richard Stiennon, a cybersecurity industry analyst, said this was a historic mistake by CrowdStrike.

“This is easily the worst faux pas, technical faux pas or glitch of any security software provider ever,” said Stiennon, who has tracked the cybersecurity industry for 24 years.

While the problem is an easy technical fix, he said, it’s impact could be long-lasting for some organizations because of the hands-on work needed to fix each affected computer. “It’s really, really difficult to touch millions of machines. And people are on vacation right now, so, you know, the CEO will be coming back from his trip to the Bahamas in a couple of weeks and he won’t be able to use his computers.”

Stiennon said he did not think the outage revealed a bigger problem with the cybersecurity industry or CrowdStrike as a company.

“The markets are going to forgive them, the customers are going to forgive them, and this will blow over,” he said.

Forrester analyst Allie Mellen credited CrowdStrike for clearly telling customers what they need to do to fix the problem. But to restore trust, she said there will need to be a deeper look at what occurred and what changes can be made to prevent it from happening again.

“A lot of this is likely to come down to the testing and software development process and the work that they’ve put into testing these kinds of updates before deployment,” Mellen said. “But until we see the complete retrospective, we won’t know for sure what the failure was.”

Houston engineers develop breakthrough device to advance spinal cord treatment

future of health

A team of Rice University engineers has developed an implantable probe over a hundred times smaller than the width of a hair that aims to help develop better treatments for spinal cord disease and injury.

Detailed in a recent study published in Cell Reports, the probe or sensor, known as spinalNET, is used to explore how neurons in the spinal cord process sensation and control movement, according to a statement from Rice. The research was supported by the National Institutes of Health, Rice, the California-based Salk Institute for Biological Studies, and the philanthropic Mary K. Chapman Foundation based in Oklahoma.

The soft and flexible sensor was used to record neuronal activity in freely moving mice with high resolution for multiple days. Historically, tracking this level of activity has been difficult for researchers because the spinal cord and its neurons move so much during normal activity, according to the team.

“We developed a tiny sensor, spinalNET, that records the electrical activity of spinal neurons as the subject performs normal activity without any restraint,” Yu Wu, a research scientist at Rice and lead author of the study said in a statement. “Being able to extract such knowledge is a first but important step to develop cures for millions of people suffering from spinal cord diseases.”

The team says that before now the spinal cord has been considered a "black box." But the device has already helped the team uncover new findings about the body's rhythmic motor patterns, which drive walking, breathing and chewing.

Lan Luan (from left), Yu Wu, and Chong Xie are working on the breakthrough device. Photo by Jeff Fitlow/Rice University

"Some (spinal neurons) are strongly correlated with leg movement, but surprisingly, a lot of neurons have no obvious correlation with movement,” Wu said in the statement. “This indicates that the spinal circuit controlling rhythmic movement is more complicated than we thought.”

The team said they hope to explore these findings further and aim to use the technology for additional medical purposes.

“In addition to scientific insight, we believe that as the technology evolves, it has great potential as a medical device for people with spinal cord neurological disorders and injury,” Lan Luan, an associate professor of electrical and computer engineering at Rice and a corresponding author on the study, added in the statement.

Rice researchers have developed several implantable, minimally invasive devices to address health and mental health issues.

In the spring, the university announced that the United States Department of Defense had awarded a four-year, $7.8 million grant to the Texas Heart Institute and a Rice team led by co-investigator Yaxin Wang to continue to break ground on a novel left ventricular assist device (LVAD) that could be an alternative to current devices that prevent heart transplantation.

That same month, the university shared news that Professor Jacob Robinson had published findings on minimally invasive bioelectronics for treating psychiatric conditions. The 9-millimeter device can deliver precise and programmable stimulation to the brain to help treat depression, obsessive-compulsive disorder and post-traumatic stress disorder.

Houston clean hydrogen startup to pilot tech with O&G co.

stay gold

Gold H2, a Houston-based producer of clean hydrogen, is teaming up with a major U.S.-based oil and gas company as the first step in launching a 12-month series of pilot projects.

The tentative agreement with the unnamed oil and gas company kicks off the availability of the startup’s Black 2 Gold microbial technology. The technology underpins the startup’s biotech process for converting crude oil into proprietary Gold Hydrogen.

The cleantech startup plans to sign up several oil and gas companies for the pilot program. Gold H2 says it’s been in discussions with companies in North America, Latin America, India, Eastern Europe and the Middle East.

The pilot program is aimed at demonstrating how Gold H2’s technology can transform old oil wells into hydrogen-generating assets. Gold H2, a spinout of Houston-based biotech company Cemvita, says the technology is capable of producing hydrogen that’s cheaper and cleaner than ever before.

“This business model will reshape the traditional oil and gas industry landscape by further accelerating the clean energy transition and creating new economic opportunities in areas that were previously dismissed as unviable,” Gold H2 says in a news release.

The start of the Black 2 Gold demonstrations follows the recent hiring of oil and gas industry veteran Prabhdeep Singh Sekhon as CEO.

“With the proliferation of AI, growth of data centers, and a national boom in industrial manufacturing underway, affordable … carbon-free energy is more paramount than ever,” says Rayyan Islam, co-founder and general partner at venture capital firm 8090 Industries, an investor in Gold H2. “We’re investing in Gold H2, as we know they’ll play a pivotal role in unleashing a new dawn for energy abundance in partnership with the oil industry.”

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This article originally ran on EnergyCapital.