Houston-founded unicorn logistics company returns HQ to the Bayou City

coming home

It's a homecoming for this Texas unicorn. Photo via cart.com

While originally founded in Houston in 2020, Cart.com has called Austin home for the past two years. Now, the scaling software company is coming home.

Cart.com, a tech company providing commerce and logistical solutions for businesses, announced today that its corporate headquarters has returned to Houston amid its rapid growth.

“I couldn’t be happier to bring Cart.com back home to Houston as we continue to revolutionize how merchants sell and fulfill products to meet customers anywhere they are,” Cart.com Founder and CEO Omair Tariq says in a news release. “The idea for Cart.com was born in Houston and we’ve always maintained a strong local presence with the majority of our executive team and board based here. As our customer mix increasingly moves upmarket and our own needs evolve, I’m confident Houston has what we need as we look towards the next stage of Cart.com’s growth story.”

The company has raised over $400 million in venture funding over the past three years, and has grown a customer base of 6,000 users, supporting over $8 billion in gross merchandise value, according to Cart.com. After making several acquisitions, the company also operates 14 fulfillment centers nationwide.

Cart.com's most recent raise, a $60 million series C round this summer, was announced to support an international expansion. Last year, the company secured $240 million in equity and debt funding.

According to the release, the relocation comes at a time of "unprecedented growth" for the business, which calls out Houston's central location, transportation infrastructure, and dynamic business community.

“We’re thrilled to welcome Cart.com home and proud to have one of the country’s fastest-growing unicorns back in Houston,” Bob Harvey, president and CEO of Greater Houston Partnership, in the release. “Cart.com’s homecoming is a testament to why companies repeatedly choose Houston to scale their business with its diverse and dynamic economy along with its unparalleled talent pool that cuts across technology, professional services and global trade. We’re excited to support Cart.com’s continued growth and look forward to the company’s contribution to Houston’s growing tech community.”

Earlier this month, Tariq was named a regional winner in the Entrepreneur Of The Year program, run by professional services firm EY. He was one of 11 Houston-based executives named in the Gulf South region and now will move on to national Entrepreneur Of The Year program.

Houston tech company launches digital logistics platform to help coronavirus supply chain disruptions

tech solutions

Houston-based ChaiOne recently announced the soft launch of Velostics, the "slack" for logistics that solve wait times and cash flow challenges in the supply chain and logistics industry. The digital logistics platform is set to aid the struggling supply chain as surging demands stretch suppliers, offering their platform free for 60 days.

The platform, aimed at making communication and execution of industrial shipments easier is one of ChaiOne's software service startups. The digital solutions provider for the energy, power, and industrial sectors is a leader in behavioral science-led solutions for logistics operations.

"At ChaiOne we have a history of helping Houstonians whenever disaster strikes," says CEO and founder, Gaurav Khandelwal. "We created a disaster connect app during Hurricane Harvey for free that connected people with the resources they need. Velostics by pure happenstance happened to be ready for situations like [the coronavirus] when there's a lot of parties that need to collaborate."

Velostics results in an improved cash cycle for clients, cutting a 90-day settlement down to one day, along with an overhead reduction that reduces costs and improves output along with error reduction. The digital platform is specially engineered to reduce waste while keeping the supply chain running efficiently.

"With Velostics everybody in the supply chain whether it's the carrier, the truck driver, the warehouse worker or the customer can all be on the same page and in the same system using the in-app messaging system and satellite locations to see where the shipment is in real-time," says Khandelwal.

Like many other companies and individuals, Velostics has not been left untouched by the fallout of the spread of the coronavirus. This year they were chosen by Plug and Play Tech Center as a keynote for the Agora track of CERA week, with the cancellation of the premier energy conference they were not able to roll out the platform to a large audience.

"It's definitely unfortunate, but the situation has been changing daily and it has resulted in new opportunities for Velostics," says Khandelwal.

Velostics uses machine learning algorithms to predict wait times, help customers utilize their assets and plan more efficiently. The benefits of the logistics platform focus on reducing wait times for industrial shippers, third-party logistics providers, and freight brokers.

Today, they find themselves using these tools to help the community. Along with offering their platform for free for 60 days, they will be partnering with the American Red Cross to aid health professionals get the medical gear they need.

"Like any startup, we have a hypothesis about how to improve the industry which we then test, says Khandelwal. "But when there's a need such as this one, the hypothesis goes out of the window because the market is changing rapidly. If we can do anything to help from a supply-chain perspective to help save lives, we are very much open to sharing ideas."

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.

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Health tech startup launches Houston study improve stroke patients recovery

now enrolling

A Houston-born company is enrolling patients in a study to test the efficacy of nerve stimulation to improve outcomes for stroke survivors.

Dr. Kirt Gill and Joe Upchurch founded NeuraStasis in 2021 as part of the TMC Biodesign fellowship program.

“The idea for the company manifested during that year because both Joe and I had experiences with stroke survivors in our own lives,” Gill tells InnovationMap. It began for Gill when his former college roommate had a stroke in his twenties.

“It’s a very unpredictable, sudden disease with ramifications not just for my best friend but for everyone in his life. I saw what it did to his family and caregivers and it's one of those things that doesn't have as many solutions for people to continue recovery and to prevent damage and that's an area that I wanted to focus myself on in my career,” Gill explains.

Gill and Upchurch arrived at the trigeminal and vagus nerves as a potential key to helping stroke patients. Gill says that there is a growing amount of academic literature that talks about the efficacy of stimulating those nerves. The co-founders met Dr. Sean Savitz, the director of the UTHealth Institute for Stroke and Cerebrovascular Diseases, during their fellowship. He is now their principal investigator for their clinical feasibility study, located at his facility.

The treatment is targeted for patients who have suffered an ischemic stroke, meaning that it’s caused by a blockage of blood flow to the brain.

“Rehabilitation after a stroke is intended to help the brain develop new networks to compensate for permanently damaged areas,” Gill says. “But the recovery process typically slows to essentially a standstill or plateau by three to six months after that stroke. The result is that the majority of stroke survivors, around 7.6 million in the US alone, live with a form of disability that prevents complete independence afterwards.”

NeuraStasis’ technology is intended to help patients who are past that window. They accomplish that with a non-invasive brain-stimulation device that targets the trigeminal and vagus nerves.

“Think of it kind of like a wearable headset that enables stimulation to be delivered, paired to survivors going through rehabilitation action. So the goal here is to help reinforce and rewire networks as they're performing specific tasks that they're looking to improve upon,” Gill explains.

The study, which hopes to enroll around 25 subjects, is intended to help people with residual arm and hand deficits six months or more after their ischemic stroke. The patients enrolled will receive nerve stimulation three times a week for six weeks. It’s in this window that Gill says he hopes to see meaningful improvement in patients’ upper extremity deficits.

Though NeuraStasis currently boasts just its two co-founders as full-time employees, the company is seeing healthy growth. It was selected for a $1.1 million award from the National Institutes of Health through its Blueprint MedTech program. The award was funded by the National Institute of Neurological Disorders and Stroke. The funding furthers NeuraStasis’ work for two years, and supports product development for work on acute stroke and for another product that will aid in emergency situations.

Gill says that he believes “Houston has been tailor-made for medical healthcare-focused innovation.”

NeuraStasis, he continues, has benefited greatly from its advisors and mentors from throughout the TMC, as well as the engineering talent from Rice, University of Houston and Texas A&M. And the entrepreneur says that he hopes that Houston will benefit as much from NeuraStasis’ technology as the company has from its hometown.

“I know that there are people within the community that could benefit from our device,” he says.

Latest Houston health tech news dominates this week's top stories

trending news

Editor's note:Let's roundup the top Houston innovation news from the week. Trending Houston tech and startup articles on InnovationMap included introducing the Texas Medical Center's ongoing cohort, generative AI at Baylor College of Medicine, and more.

TMC names latest cohort of health tech innovators for 2024 program

Here are the eight companies currently being accelerated by Texas Medical Center Innovation. Photo courtesy of TMC

The Texas Medical Center Innovation has named its new cohort of health tech companies it's currently accelerating.

This first batch of companies for 2024 was selected from last fall's TMC Bootcamp. Eight of the 10 startups from the bootcamp have moved on to the Accelerator for HealthTech.

"Hailing from diverse corners of the globe—from the tech corridors of Texas and California to Ireland and Australia—these companies converge with a shared mission—to move healthcare forward," Devin Dunn, head of the Accelerator for Health Tech, writes in a TMC blog post. "Through personalized mentorship and guidance, these eight companies are able to navigate complex challenges and refine their strategies, while leveraging the expertise of Texas Medical Center ecosystem to validate their innovations and drive real-world impact." Continue reading.

Houston researches tap into GenAI for communicating genetic test results

Researchers at Baylor College of Medicine’s Human Genome Sequencing Center have trained an AI assistant to explain genetic test results to patients. Photo via Getty Images

Artificial intelligence in the health care setting has a lot of potential, and one Houston institution is looking into one particular use.

Researchers at Baylor College of Medicine’s Human Genome Sequencing Center have trained an AI assistant to explain genetic test results to patients. According to findings published in the Journal of the American Medical Informatics Association (JAMIA), the team has developed generative AI to understand and interpret genetic tests. They have also tested its accuracy against Open AI’s ChatGPT 3.5.

“We created a chatbot that can provide guidance on general pharmacogenomic testing, dosage implications, and the side effects of therapeutics, and address patient concerns,” explains first author Mullai Murugan in a press release. Murugan is director of software engineering and programming at the Human Genome Sequencing Center. “We see this tool as a superpowered assistant that can increase accessibility and help both physicians and patients answer questions about genetic test results.” Continue reading.

2 Houston cleantech companies named to top 10 ranking of innovative energy

Fervo Energy and Syzygy Plasmonics were recognized for their energy innovation. Photo via Getty Images

A pair of Houston energy startups have been named among the 10 most innovative energy companies for 2024.

Fast Company magazine just placed Fervo Energy and Syzygy Plasmonics on its energy innovation list. In all, 606 companies and organizations across a variety of industries were recognized for “reshaping industries and culture.”

Fervo produces carbon-free geothermal energy. Its existing geothermal project is in Nevada, and it’s building a geothermal project in Utah. The company recently raised $244 million.

“Solar and wind are cheap, but they don’t provide the kind of always-on dispatchable electricity that hydropower, hydrogen, and nuclear do; even at current high prices, enhanced geothermal is still cheaper than those other sources,” Fast Company notes. Continue reading.

University of Houston names new leaders within innovation, tech

Haleh Ardebili (left) has been appointed as assistant vice president of Entrepreneurship and Startup Ecosystem, and Michael Harold as assistant vice president for Intellectual Property and Industrial Engagements at the University of Houston. Photo via UH

Two professors have assumed new leadership roles in the University of Houston’s Office of Technology, Transfer, and Innovation.

Haleh Ardebili, the Kamel Salama Endowed Professor of Mechanical Engineering, has been named assistant vice president of entrepreneurship and startup ecosystem. Michael Harold, Cullen Engineering Professor of Chemical and Biomolecular Engineering, has been named assistant vice president for intellectual property and industrial engagements.

Ardebili and Harold “are both tested leaders in their respective areas —they are already contributing to our rich academic environment with their knowledge, expertise and commitment to innovation,” says Ramanan Krishnamoorti, vice president for energy and innovation at UH, in a statement. “Having them helm our growing team will help UH continue its culture of innovation and contribution to society.” Continue reading.

Houston startup recognized for inclusivity on journey to commercialize next-gen therapeutics

Spun out of Baylor College of Medicine, Phiogen was selected out of 670 companies to pitch at SXSW earlier this month. Photo via Getty Images

A new Houston biotech company won a special award at the 16th Annual SXSW Pitch Award Ceremony earlier this month.

Phiogen, one of 45 companies that competed in nine categories, was the winner for best inclusivity, much to the surprise of the company’s CEO, Amanda Burkhardt.

Burkhardt tells InnovationMap that while she wanted to represent the heavily female patient population that Phiogen seeks to treat, really she just hires the most skilled scientists.

“The best talent was the folks that we have and it ends up being we have three green card holders on our team. As far as ethnicities, we have on our team we have Indian, African-American, Korean, Chinese Pakistani, Moroccan and Hispanic people and that just kind of just makes up the people who helped us on a day-to-day basis,” she explains. Continue reading.

Texas Space Commission launches, Houston execs named to leadership

future of space

Governor Greg Abbott announced the Texas Space Commission, naming its inaugural board of directors and Texas Aerospace Research and Space Economy Consortium Executive Committee.

The announcement came at NASA's Johnson Space Center, and the governor was joined by Speaker Dade Phelan, Representative Greg Bonnen, Representative Dennis Paul, NASA's Johnson Space Center Director Vanessa Wyche, and various aerospace industry leaders.

According to a news release, the Texas Space Commission will aim to strengthen commercial, civil, and military aerospace activity by promoting innovation in space exploration and commercial aerospace opportunities, which will include the integration of space, aeronautics, and aviation industries as part of the Texas economy.

The Commission will be governed by a nine-member board of directors. The board will also administer the legislatively created Space Exploration and Aeronautics Research Fund to provide grants to eligible entities.

“Texas is home to trailblazers and innovators, and we have a rich history of traversing the final frontier: space,” Lieutenant Governor Dan Patrick says in a news release. “Texas is and will continue to be the epicenter for the space industry across the globe, and I have total confidence that my appointees to the Texas Space Commission Board of Directors and the Texas Aerospace Research and Space Economy Consortium Executive Committee will ensure the Texas space industry remains an international powerhouse for cutting-edge space innovation.”

TARSEC will independently identify research opportunities that will assist the state’s position in aeronautics research and development, astronautics, space commercialization, and space flight infrastructure. It also plans to fuel the integration of space, aeronautics, astronautics, and aviation industries into the Texas economy. TARSEC will be governed by an executive committee and will be composed of representatives of each higher education institution in the state.

“Since its very inception, NASA’s Johnson Space Center has been home to manned spaceflight, propelling Texas as the national leader in the U.S. space program,” Abbott says during the announcement. “It was at Rice University where President John F. Kennedy announced that the U.S. would put a man on the moon—not because it was easy, but because it was hard.

"Now, with the Texas Space Commission, our great state will have a group that is responsible for dreaming and achieving the next generation of human exploration in space," he continues. "Texas is the launchpad for Mars, innovating the technology that will colonize humanity’s first new planet. As we look into the future of space, one thing is clear: those who reach for the stars do so from the great state of Texas. I look forward to working with the Texas Space Commission, and I thank the Texas Legislature for partnering with industry and higher education institutions to secure the future of Texas' robust space industry."

The Houston-area board of directors appointees included:

  • Gwen Griffin, chief executive officer of the Griffin Communications Group
  • John Shannon, vice president of Exploration Systems at the Boeing Company
  • Sarah "Sassie" Duggleby, co-founder and CEO of Venus Aerospace
  • Kirk Shireman, vice president of Lunar Exploration Campaigns at Lockheed Martin
  • Dr. Nancy Currie-Gregg, director of the Texas A&M Space Institute

Additionally, a few Houstonians were named to the TARSEC committee, including:

  • Stephanie Murphy, CEO and executive chairman of Aegis Aerospace
  • Matt Ondler, president and former chief technology officer at Axiom Space
  • Jack “2fish” Fischer, vice president of production and operations at Intuitive Machines
  • Brian Freedman, president of the Bay Area Houston Economic Partnership and vice chairman of Wellby Financial
  • David Alexander, professor of physics and astronomy and director of the Rice Space Institute at Rice University

To see the full list of appointed board and committee members, along with their extended bios, click here.

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