Gaurav Khandelwal, CEO and founder of ChaiOne, joins the Houston Innovators Podcast to discuss his new venture, Velostics. Photo courtesy of ChaiOne

For over a decade, Gaurav Khandewal has been working with clients to provide software solutions to industrial problems with his company, ChaiOne. Now, in his latest venture, he's addressing a market within logistics that can be run a whole lot smoother: The middle mile.

On this week's episode of the Houston Innovators Podcast, Khandewal explains that the middle mile in logistics is the trucks transporting between warehouses, for instance, and that includes trucks checking in and checking out at these warehouses. This process, and other aspects to the middle mile, is antiquated and manual — something his new company, Velostics, is looking to address.

"This middle mile commerce is very ancient," Khandewal says. "There is a lot of friction between ordering and paying. A lot of it is unnecessary and should be made simpler."

This middle mile represents a $700 billion market, and Velostics is ready to make an impact in that space. Last month, the company acquired Terusama, a logistics tech company with dock management and truck scheduling capabilities. The company's software solution that speeds up truck loading and unloading will be rolled into Velostics's platform.

The potential impact Velostics can make is exciting to Khandewal, who relates the technology to truck drivers being able to check in like passengers do with airlines. Smoothing out the so-called "log jam" of the middle mile can be a gamechangers for consumers and businesses alike.

"If we could accelerate the middle mile where a lot of the log jam is happening, we could get stuff in 30 minutes," Khandewal says. "We'd never have to go to a store again."

Khandewal has been a champion of Houston innovation since he started ChaiOne in 2009. Now, he's on the Houston Exponential board and thinks the city has a great opportunity to be a leader in logistics technology.

"I think that there are some trends in Houston that I'm seeing as a founder, and one of them is logistics," Khandewal says.

Velostics is one of seven Houston startups tied to logistics — and Khandewal mentions others like Voyager, GoExpedi, and Cart.com that are providing solutions in the space.

"If you look at Chicago — it's had some crazy amount of logistics unicorns that have popped up over the past few years, and they aren't slowing down," Khandewal says on the show. "Houston, I would argue, is better positioned, because we have this massive port. I think logistics is a massive opportunity for Houston."

He shares more on his passion for Houston, as well as what's next for Velostics on the episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

A program at UH has just gotten a rare and prestigious accreditation. Photo by Tom Fisk from Pexels

University of Houston logistics and transportation program receives global accreditation

leveled up

A program at the University of Houston has received a rare global accreditation that will allow for more opportunities for the students in both the graduate and undergraduate programs.

The Chartered Institute of Logistics and Transport has accredited UH's Supply Chain & Logistics Technology bachelor's and master's degree plans. Now, students can apply for membership upon graduation and use the CILT credential after their name, according to a press release from UH, and this is the first academic program in the United States to have this distinction.

"In launching our globally-recognized credential program, we are addressing gaps in skill sets and focusing on filling those gaps with our students, helping them become more marketable," says Margaret Kidd, program director of Supply Chain & Logistics Technology, in the release.

Port Houston has granted $50,000 to the program, and these funds are being used to take the curriculum digital and allow for an online platform for certificate courses.

"The College of Technology prides itself in providing degree programs that support the workforce – a workforce that both needs to expand in numbers to boost the economy, but also to provide a more relevant education for industry and commerce," says Anthony P. Ambler, dean of the UH College of Technology, in the release. "We are grateful to the Port Houston and its support of our technology program which explicitly exposes students to how business operates so that they are able to be productive quickly."

The news was announced at a press conference at UH. Harris County Commissioner for Precinct 2 Adrian Garcia and Port Houston Commissioner Wendy Montoya Cloonan joined UH representatives at the event.

"The pandemic has wrecked several sectors of the economy, directly impacting thousands, and so many are searching for new skills that translate to this new normal. This UH program, funded by Port grants, is yet another way we and our partners are addressing that," says Commissioner Garcia. "Hardworking people need locally elected officials, educational institutions, and industry to help us get past these difficult times, which is why I am extremely excited about the launch of this program."

The first group of participants for the program will come from dual-credit high schools with a logistics focus and community colleges offering logistics and international business degrees.

"Our program plays an integral part in preparing the next generation of workers. We thank Port Houston for funding our project which provides meaningful influence for area students," says Kidd.

Houston-based The Now Network's last-mile logistics platform is growing its development team. Getty Images

Houston-based energy logistics software prepares to hire, raise funds as it scales up

now hiring

Many startups turn to offshore outsourcing to fuel their growth. The Now Network, a Houston-based energy tech startup, is doing just the opposite — relying on stateside in-sourcing.

The SaaS company is in the midst of building out its in-house development team, including full stack developers and UX/UI designers. This year, The Now Network plans to add another four to six developers, on top of the six who already are on board. Stacey McCroskey, the company's director of product since September 2019, leads the team.

Previously, the development team consisted of more than a dozen contract workers in Ukraine and India, says Mush Khan, president of The Now Network. Khan assumed the president's role in May 2019.

"We believe that having our own in-house team drives a sense of ownership over the product. We have to eat our own cooking, because what we build, we have to support," Khan says.

Compared with the outsourcing model, the in-house team enables the company to more quickly release higher-quality products and more quickly respond to customers' needs, he says.

"Over the years, The Now Network has seen immense growth, consistently advancing its technology framework to drive faster payments, increased driver retention, an expanded 3PL network, and increased business revenue," Sam Simon, the company's founder, chairman, and CEO, says in a release. "The addition of an in-house development team will only amplify this growth, promoting more opportunities for cross-collaboration and customer feedback, to expand upon and refine existing features."

Members of the in-house development team are working on expansion of The Now Network's last-mile logistics platform for wholesalers, third-party logistics (3PL) carriers, drivers, and users of fuel. Khan says the platform offers "complete visibility and accuracy" throughout the fuel delivery process.

Competition for tech talent in Houston industries like energy and manufacturing is ramping up as the region evolves as "a fast-paced, innovative environment," he says.

"We believe companies like ours offer an opportunity to build a product from the ground up," Khan says, "and in an environment that allows them to express themselves creatively."

In June 2019, staffing firm Robert Half Technology put Houston in fourth place for the anticipated volume of IT hiring in U.S. cities during the second half of the year.

"The technology market in Houston remains strong as more companies are investing in systems upgrades, focusing on security, and taking on digital projects," Robert Vaughn, Robert Half Technology's regional vice president in Houston, said in a release. "The candidate market remains tight, and companies that prolong the interview process or don't make competitive offers tend to have the hardest time staffing open roles."

Today, The Now Network employs 15 people, all but one of whom works in Houston. The company expects to grow its workforce to around 30 by the end of 2020, Khan says. To accommodate the larger headcount, The Now Network is moving this month from WeWork at the Galleria to a 6,000-square-foot office in the Upper Kirby neighborhood.

To help finance its growth, The Now Network will soon launch its first-ever fundraising effort. Khan says the company will seek more than $5 million in investment capital.

Founded in 2015, The Now Network strives to simplify the last mile of the "energy ecosystem," which Khan describes as "slow, opaque, and expensive." Its SaaS platform automates delivery functions in the energy supply chain, doing away with manual labor and tedious paperwork, he says.

Since early 2018, the startup has handled more than 180,000 customer transactions involving over 1.8 billion gallons of fuel.

The Now Network is a portfolio company of Simon Group Holdings, a private equity firm based in Birmingham, Michigan. One of its key areas of focus is the energy sector.

In 2017, The Now Network (previously known as FuelNow Network) entered a strategic partnership with Houston-based Motiva Enterprises LLC, a fuel refiner, distributor, and retailer owned by Saudi Refining Inc. Khan says his company is collaborating with Motiva to roll out The Now Network platform to U.S. fuel wholesalers.

"As of now, Motiva doesn't have a stake in our company," he says.

Motiva owns East Texas' 3,600-acre Port Arthur Refinery, the largest oil refinery in North America, with a daily capacity of more than 600,000 barrels. State-controlled Saudi Aramco — which went public last year in an IPO valued at $2 trillion — owns Saudi Refining.

Validere, a Canada-based energy logistics company, is expanding in Houston. Courtesy of Validere

Canadian startup fresh off $7 million seed funding raise picks Houston for U.S. expansion

Energy Tech

Houston's established reputation as the energy capital of the world combined with burgeoning tech scene has made the city attractive for a growing oil and gas company with roots in Canada.

Validere is an oil and gas company focused on using real-time data and both artificial and human intelligence insights to improve its clients' quality, trading, and logistics. The company's technology enhances the ability of oil and gas traders to make informed decisions, which currently are made based off unreliable product quality data. Annually, $2 trillion of product moves around the oil and gas industry, and Validere uses the Internet of Things to improve the current standard of decision making.

"It's like if you'd go to the grocery store to buy milk not knowing if it's 1 percent, 2 percent, or cream," co-founder Nouman Ahmad says about how companies are currently making oil and gas trading decisions.

In October, Validere concluded its seed funding round with $7 million. Among Validere supporters are several Silicon Valley power players, such as Sallyport Investments, Y Combinator, Real Ventures, Moment Ventures, and ZhenFund. The funds, in part, will help the company expand into the United States market.

"The goal in 2019 is to be at the same stage — in terms of customer success — in the U.S. market as we were at the end of 2018 in the Canadian market," Ahmad says.

The company has seen great success in Canada, and some of its existing clients have business in the Houston area already, Ahmad says.

With the increased focus on Houston comes a growing office. Currently, Ahmad leads the efforts in town with one other staffer, however, operations won't be a skeleton crew for too much longer. Ahmad says he is "aggressively hiring" in the Bayou City, which will be a key office for them as they grow across the country.

"As we think about the long-term future of the business, Houston is one of the most important markets for us going forward," Ahmad says.

Houston has been a welcoming community to the Canadian transplant, who says he spends most of his time here now. Both the startup and tech scenes in Houston have been valuable resources to the company — as has the energy industry's potential clients.

"Houston market is very receptive and ready for innovative companies that are solving problems for them," Ahmad says.

The company was founded in 2015 at Harvard by entrepreneurs who saw the potential for better transparency in the oil and gas industry. Validere's other co-founder and CTO, Ian Burgess, first had the idea for the technology after an accident happened in Canada; a train carrying crude oil derailed and blew up a small town killing 45 people.

"The industry largely bases important operational decisions on poor quality data," Burgess says in a release. "Our platform not only informs product quality reliably and in real time, but it also uses AI to help oil and gas companies optimize product movement."

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Houston family's $20M donation drives neurodegeneration research

big impact

Neurodegeneration is one of the cruelest ways to age, but one Houston family is sharing its wealth to invigorate research with the goal of eradicating diseases like Alzheimer’s.

This month, Laurence Belfer announced that his family, led by oil tycoon Robert Belfer, had donated an additional $20 million to the Belfer Neurodegeneration Consortium, a multi-institutional initiative that targets the study and treatment of Alzheimer’s disease.

This latest sum brings the family’s donations to BNDC to $53.5 million over a little more than a decade. The Belfer family’s recent donation will be matched by institutional philanthropic efforts, meaning BNDC will actually be $40 million richer.

BNDC was formed in 2012 to help scientists gain stronger awareness of neurodegenerative disease biology and its potential treatments. It incorporates not only The University of Texas MD Anderson Cancer Center, but also Baylor College of Medicine, Massachusetts Institute of Technology (MIT) and Icahn School of Medicine at Mount Sinai.

It is the BNDC’s lofty objective to develop five new drugs for Alzheimer’s disease and related disorders over the next 10 years, with two treatments to demonstrate clinical efficacy.

“Our goal is ambitious, but having access to the vast clinical trial expertise at MD Anderson ensures our therapeutics can improve the lives of patients everywhere,” BNDC Executive Director Jim Ray says in a press release. “The key elements for success are in place: a powerful research model, a winning collaborative team and a robust translational pipeline, all in the right place at the right time.”

It may seem out of place that this research is happening at MD Anderson, but scientists are delving into the intersection between cancer and neurological disease through the hospital’s Cancer Neuroscience Program.

“Since the consortium was formed, we have made tremendous progress in our understanding of the molecular and genetic basis of neurodegenerative diseases and in translating those findings into effective targeted drugs and diagnostics for patients,” Ray continues. “Yet, we still have more work to do. Alzheimer's disease is already the most expensive disease in the United States. As our population continues to age, addressing quality-of-life issues and other challenges of treating and living with age-associated diseases must become a priority.”

And for the magnanimous Belfer family, it already is.

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 podcast with the founder of a new venture firm, a former astronaut and recent award recipient, and a health care innovator with fresh funding.

Zach Ellis, founder and managing partner of South Loop Ventures

Zach Ellis explains on the Houston Innovators Podcast that South Loop Ventures plans to invest in promising companies from across the country and bring them into Houston's ecosystem to grow and scale. Photo via LinkedIn

Houston has a lot of the right ingredients for commercialization and scaling up companies, so when Zach Ellis moved to town to stand up a venture capital firm that made investments in diverse founders, he decided to go about it in an innovative way.

South Loop Ventures, which Ellis launched two years ago, invests in pre-seed and seed-stage startups across health care, climatetech, aerospace, sports, and fintech. While the first handful of investments, which have already been made, are into Houston-based companies, Ellis explains on the Houston Innovators Podcast that the firm plans to invest in promising companies from across the country and bring them into Houston's ecosystem to grow and scale.

"Any investor wants to feel like they are looking at the best possible investment opportunities in which to deploy capital," Ellis says on the show. "So that's reason No. 1 to cast your net as widely as possible.

"At the same time, you want to give any investment that you make greatest chances of success," he continues. "The biggest factor of success outside of the team and the capital you give them, is the customers that they can call upon. In bringing targeted companies to Houston or connecting them with Houston, you introduce the opportunity for them to achieve rapid scale and work with world-class partners very efficiently." Read more.


Toby R. Hamilton, founder and CEO of Hamilton Health Box

Dr. Toby Hamilton has secured $10 million to grow his company. Photo via tmc.edu

A Houston company that is working on a value-based model for primary care has fresh funding to support its mission.

Hamilton Health Box announced the completion of a $10 million series A funding round led by 1588 Ventures with participation from Memorial Hermann Health System, Impact Ventures by Johnson & Johnson Foundation, Texas Medical Center Venture Fund, and the Sullivan Brothers.

The company, founded in 2019 by Dr. Toby R. Hamilton, will use the funding to fuel its expansion into rural areas to help assist those living in Health Professional Shortage Areas, or HPSAs. Read more.

Ellen Ochoa, former astronaut and center director at the NASA's Johnson Space Center

Ellen Ochoa was recognized for her leadership at NASA Johnson and for being the first Hispanic woman in space. Photo via NASA

Two astronauts recently received Presidential Medals of Freedom from President Joe Biden for their leadership in space.

Ellen Ochoa, the former center director and astronaut at the NASA's Johnson Space Center in Houston, and Jane Rigby, senior project scientist for NASA’s James Webb Space Telescope, were honored at the White House on May 3.

Ochoa spent 30 years with NASA, which included being the 11th director of JSC, deputy center director of JSC, and director of Flight Crew Operations. She served on the nine-day STS-56 mission aboard the space shuttle Discovery in 1993, and became the first Hispanic woman in space. She flew four more times to space with STS-66, STS-96, STS-110, and more.

“I’m so grateful for all my amazing NASA colleagues who shared my career journey with me,” Ochoa says in a NASA news release. Read more.

Houston health care institutions receive $22M to attract top recruits

coming to Hou

Houston’s Baylor College of Medicine has received a total of $12 million in grants from the Cancer Prevention & Research Institute of Texas to attract two prominent researchers.

The two grants, which are $6 million each, are earmarked for recruitment of Thomas Milner and Radek Skoda. The Cancer Prevention & Research Institute of Texas (CPRIT) announced the grants May 14.

Milner, an expert in photomedicine for surgery and diagnostics, is a professor of surgery and biomedical engineering at the Beckman Laser Institute & Medical Clinic at the University of California, Irvine and the university’s Chao Family Comprehensive Cancer Center

In 2013, Milner was named Inventor of the Year by the University of Texas at Austin. At the time, he was a professor of biomedical engineering at UT. One of his major achievements is co-development of the MasSpec Pen, a handheld device that identifies cancerous tissue within 10 seconds during surgical procedures.

Skoda is a professor of molecular medicine in the Department of Biomedicine at the University of Basel and the University Hospital Basel, both in Switzerland. He specializes in developing treatments for myeloproliferative neoplasms, which are a group of blood diseases including leukemia.

Other recruitment grants provided by the institute to Houston-area organizations are:

  • $4 million for recruitment of Susan Bullman to the University of Texas M.D. Anderson Cancer Center. She was an assistant professor at Seattle’s Fred Hutchinson Cancer Center, where she studied the connection between microbes and cancer.
  • $4 million for recruitment of Oren Rom to the University of Texas M.D. Anderson Cancer Center. Rom is an assistant professor of pathology and translational pathobiology at Louisiana State University Shreveport.
  • Nearly $2 million for recruitment of Lauren Hagler to conduct RNA cancer biology at Texas A&M University. She is a postdoctoral scholar in biochemistry at Stanford University.

The institute also awarded grants to five companies in the Houston area:

  • $4.7 million to 7 Hills Pharma for development of immunotherapies to treat cancer and prevent infectious diseases.
  • $4.5 million to Indapta Therapeutics for the Phase 1 trial of a cell therapy for treatment of multiple myeloma and non-Hodgkin’s lymphoma.
  • $2.75 million to Bectas Therapeutics for development of antibodies and biomarkers to overcome a type of resistance T-cell checkpoint therapy.
  • $2.69 million to MS Pen Technologies for development of technology that differentiates between normal tissue and cancerous tissue during surgery.
  • $2.58 million to Crossbridge Bio for development of an antibody-drug combination to treat certain solid tumors.