3 Houston innovators with fresh funds to know this week

who's who

This week's roundup of Houston innovators includes three founders celebrating recent funding — Omair Tariq of Cart.com, Moji Karimi of Cemvita Factory, and Moody Heard of Buildforce. Courtesy photos

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — who each recently announced new funding — recently making headlines in Houston innovation.

Omair Tariq, CEO of Cart.com

Omair Tariq's Cart.com raised a big round last week. Photo via Cart.com

Cart.com, an end-to-end e-commerce software startup, announced the close of its series B round at $98 million last week, which brings the company's total funding to $140 million since it launched eight months ago.

"At Cart.com, we believe e-commerce brands should be free to scale up without having to juggle countless outside vendors, and without compromising their unique vision for their brand," says Omair Tariq, CEO of Cart.com, in the release. "Our one-stop platform supports sellers across the full range of e-commerce functionality, empowering them to efficiently scale up and reach new markets using proven, best-of-breed services and technologies."

The new funding will go toward further developing the Cart.com platform. Click here to read more.

Moji Karimi, co-founder and CEO of Cemvita Factory

Moji Karimi has something to celebrate after last week's news. Photo courtesy of Cemvita

Houston-based biotech company Cemvita Factory announced the initial close of its series A round. Founded by brother-sister team Moji and Tara Karimi in 2017, the company's technology biomimics photosynthesis to take carbon dioxide and turn it into something else. Cemvita uses this synthetic biology to decarbonize heavy industry across chemical manufacturing, mining, and oil and gas.

"Decarbonizing heavy industry is one of the most critical challenges in addressing climate change," says Moji Karimi, who serves as CEO, in a news release. "Synthetic biology is now primed to revolutionize heavy industries because of its inherent low-carbon advantages, and Cemvita is taking the lead in identifying and derisking the key applications." Click here to read more.

Moody Heard, CEO of BuildForce

Houston-based Buildforce is developing a technology to better connect contractors and the trade professionals they employ. Photo courtesy of Buildforce

Houston-based construction app Buildforce closed its latest round of funding at $4 million. The round was led by Maryland-based TDF Ventures, with participation from existing investor Houston-based Mercury Fund and Austin-based S3 Ventures.

The company uses construction staffing and management software to more efficiently connect contractors to skilled workers across trades — electrical, mechanical, plumbing, flooring, concrete, painting, and more.

"Contractors depend on skilled and reliable tradespeople to meet project timelines," says Moody Heard, co-founder and CEO of Buildforce, in a news release. "Our key insight is that by optimizing the user experience for skilled tradespeople seeking higher pay and job security, we are able to help meet contractors' needs. We're thrilled to have become the partner of choice for the top contractors in our current markets looking to connect with this workforce." Click here to read more.
Buildforce is an app that can connect contractors with construction experts. Photo courtesy of Buildforce

Houston construction tech company raises $4M round

money moves

A locally founded company that's focusing on changing the construction labor game has raised a round of institutional funding.

Buildforce, which splits its headquarters between Houston and Austin, closed its latest round of funding at $4 million. The round was led by Maryland-based TDF Ventures, with participation from existing investor Houston-based Mercury Fund and Austin-based S3 Ventures.

The company uses construction staffing and management software to more efficiently connect contractors to skilled workers across trades — electrical, mechanical, plumbing, flooring, concrete, painting, and more.

"Contractors depend on skilled and reliable tradespeople to meet project timelines," says Moody Heard, co-founder and CEO of Buildforce, in a news release. "Our key insight is that by optimizing the user experience for skilled tradespeople seeking higher pay and job security, we are able to help meet contractors' needs. We're thrilled to have become the partner of choice for the top contractors in our current markets looking to connect with this workforce."

The new funds will support the startup as it scales, grows revenue, develops its product, and more.

"The US has millions of unfilled openings for skilled tradespeople, yet consistent work remains out-of-reach for many construction professionals," says Will Rayner, principal at TDF Ventures, in the release. "Buildforce's exponential growth in 2021 is a testament to the company's ability to connect supply and demand in this difficult labor market at scale."

The company closed an earlier round of funding in April. That round was led by Mercury.
This week's roundup of Houston innovators includes Chris Howard of Softeq, Stephanie Hertzog of Sodexo, and Moody Heard of Buildforce. Courtesy photos

3 Houston innovators to know this week

who's who

Editor's note: In the week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — oil and gas, tech development, and construction staffing — recently making headlines in Houston innovation.


Chris Howard, CEO of Softeq

On this week's episode of the Houston Innovators Podcast, Softeq Founder and CEO Chris Howard shares how he's focusing on supporting the Houston innovation ecosystem. Photo courtesy of Softeq

A sign of a blossoming innovation ecosystem is when experienced and successful founders turn their focus to supporting emerging startups. That's what Chris Howard, who founded his tech company over 20 years ago, is looking to do with a new innovation lab and more in the works.

"I want to give back as an entrepreneur and a Houstonian," Howard says on this week's episode of the Houston Innovators Podcast. "I really want to leverage Softeq's expertise in order to help these companies grow in the same way that we've been doing for a couple of decades now."

Howard shares more about the Softeq Innovation Lab and how COVID-19 has affected his business and technology in general on the episode. Click here to read more and stream the episode.

Stephanie Hertzog, CEO of Sodexo

Stephanie Hertzog is hoping the future workforce of her company and others within the energy industry better reflects the city's diverse populations. Photo courtesy of Sodexo

Ever since taking the helm at Houston-based Sodexo Energy Resources North America, CEO Stephanie Hertzog has been intentional with prioritizing diversifying the workforce of the company. In a Q&A with InnovationMap, she notes on how the energy industry has been known as pretty homogeneous, especially within the gender divide. But things are changing.

"And we need to all be focusing on getting more of not only diversity, but inclusion as well," she says. "It's not just about hiring a diverse group, it's about making those people feel included when they get here and having them want to stay and be a part of our industry." Read more.

Additionally this week, Hertzog expands on her call for the energy industry to diversify in a guest column for InnovationMap. Click here to read it.

Moody Heard, CEO of BuildForce

Houston-based Buildforce is developing a technology to better connect contractors and the trade professionals they employ. Photo courtesy of Buildforce

A Houston innovator is tapping into tech to disrupt a booming industry in Houston, Texas, and beyond .Buildforce is a construction staffing app that aims to more efficiently connect contractors to skilled workers in trades ranging from electrical, mechanical, and plumbing to flooring, concrete, painting, and more.

The company raised a $1.5 million pre-seed round led by Houston-based Mercury Fund and is led by CEO Moody Heard.

"Our key insight is that providing a superior service to construction employers starts with providing a superior experience for tradesmen and women," Heard says in a news release. "Talent is the greatest finite resource in construction in Texas. In order to deliver talent to our contractor partners, we've created a job placement experience that is simple, friendly, and transparent. That's something people in the construction trades aren't used to, and has helped us grow incredibly quickly over the past several months." Click here to read more.
Houston-based Buildforce is developing a technology to better connect contractors and the trade professionals they employ. Photo via Getty Images

Houston construction staffing startup emerges from stealth with $1.5 pre-seed funding

building tech

A Houston startup has been quietly working on a tech solution for construction staffing and has now emerged from stealth mode to announce a recent funding round as well as an acquisition.

Launched in July of 2020, Buildforce is a construction staffing app that aims to more efficiently connect contractors to skilled workers in trades ranging from electrical, mechanical, and plumbing to flooring, concrete, painting, and more, according to a news release. The company raised a $1.5 million pre-seed round led by Houston-based Mercury Fund.

Co-founder and CEO Moody Heard, who previously served as senior investment analyst at Mercury, says the tech product — the Buildforce Contractor App — will have a big impact on Texas, which is experiencing growing construction volume across the state.

Moody Heard is the co-founder and CEO of Buildforce. Photo courtesy of Buildforce

"Our key insight is that providing a superior service to construction employers starts with providing a superior experience for tradesmen and women," Heard says in the release. "Talent is the greatest finite resource in construction in Texas. In order to deliver talent to our contractor partners, we've created a job placement experience that is simple, friendly, and transparent. That's something people in the construction trades aren't used to, and has helped us grow incredibly quickly over the past several months."

In addition to emerging from stealth and raising its first funds, Buildforce has announced the acquisition of a Houston-based construction staffing business, TRIO Talent.This deal allows Buildforce to tap into TRIO's high school pre-apprenticeship programs that's among the largest in the state.

Buildforce is currently working out of a 2,500-square-foot office in Greenway Plaza, and has plans to expand later this year in both Houston and Austin, per the release. The startup's team includes members who previously worked at digital labor marketplace companies like Uber and Favor.

"Buildforce really has two serious advantages," says Vu Brown, co-founder and COO, in the release. "The first is exclusive access to newly trained skilled trades talent across the state of Texas. The second is our team. We are a unique combination of digital labor marketplace and construction experts, with decades of combined learnings from the top industry players in those two categories."

Buildforce is an app that can connect contractors with construction experts. Photo courtesy of Buildforce
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Houston-based virtual reality startup raises $3.2M in first outside capital round

fresh funding

HTX Labs, a Houston-based company that designs extended reality training for military and business purposes, announced last week that it has raised its first outside capital.

The company has received a $3.2 million investment from Cypress Growth Capital. Founded in 2017, HTX Labs — developer of the EMPACT Immersive Learning Platform — has been granted funding from the Department of Defense as well as grown its client base of commercial Enterprises. The platform uses virtual and extended reality that "enables organizations to rapidly create, deploy, measure, and sustain cost-effective, secure, and centralized immersive training programs, all within engaging, fully interactive virtual environments," per a news release.

“We have been looking to secure outside capital to accelerate the growth of our EMPACT platform and customer base but we hadn’t found the right partner who provided an investment vehicle that matched our needs,“ says HTX Labs CEO Scott Schneider in the release. “We found everything we were looking for in Cypress Growth Capital. They have a non-dilutive funding model that aligns with our capital expectations and have the level of experience that really makes this smart money.

"Cypress has a decade-long track record of success in helping emerging software and services companies achieve scale," he continues. "It is clear that the team’s collective entrepreneurial and operating experience will be of tremendous benefit to us as we focus on expanding our customer base in a very intentional way.”

The fresh funding will go toward growing and scaling the company's operations — both within the current Department of Defense and expansion opportunities into key commercial markets, like heavy industry, manufacturing, and higher education. Additionally, the funding will support increased customer adoption.

“Scott and his team have built an exceptional business that is poised for dramatic growth,” says Cypress Partner Pat McCaffrey in the release. “HTX Labs’ modern, immersive training solution provides clients with a force multiplier for modernizing training and an unmatched ROI.”

Houston's biggest benefactors gift massive $50M to pivotal Rice University institute

big money

Houston’s most generous couple has once again gifted a massive sum to a local institution. Rich and Nancy Kinder’s Kinder Foundation has donated $50 million to Rice University’s Kinder Institute for Urban Research, the organization announced.

The Kinder's generous grant will assist the institute’s focus on what it dubs “inclusive prosperity” — that is, “ensuring that everyone can contribute to Houston's success and share in its opportunities.”

This new grant follows the approximately $30 million he Kinder Foundation previously gifted Rice’s Kinder Institute and its affiliates to facilitate its headquarters.

“Over the past decade, the Kinder Institute has played an integral role in shaping Houston,” said Rich Kinder, chairman of the Kinder Foundation. “However, we can do more to inform and more directly address the challenges our communities face, particularly in the areas of housing, education, economic mobility, health and population research.”

To that end, the Kinders’ funds will ensure the institute can assist its partners regardless of their ability to pay for research. Funds will also help the institute respond to community research needs quickly during times of crisis — such as a catastrophic storm or pandemic — when funds aren’t readily available.

Kinder Institute director Ruth López Turley calls the grant “a gift to all of Houston,” speaking to the institute’s work to improve lives through data, research, engagement and action.

“Inclusive prosperity doesn’t just happen spontaneously,” she noted in a statement. “It requires an explicit effort informed by research. Lots of organizations are working hard to make things better, but most of them have very limited research capacity, and that’s what the Kinder Institute is primed to do.”

Founded in 2010, the institute has evolved into a leader in research, data, and policy analysis of critical issues such as housing, transportation, and education. The institute also releases the familiar Kinder Houston Area Survey, which charts significant changes in the way area residents perceive and understand Houston’s ongoing challenges and opportunities.

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This article originally ran on CultureMap.

Expert: Building Hispanic wealth means investing in Houston

Guest column

Every year at this time ― Hispanic Heritage Month ― we collectively celebrate the economic, cultural, and social contributions of the Hispanic-Latino community to our nation. We honor the work of past generations which have allowed children and future generations to benefit from more opportunities.

As diverse a community as is the world, we strive to build a future where there are no barriers for success, and at Bank of America, we do our part to make an impact by helping build Hispanic-Latino wealth in Houston.

The numbers are clear: The 2020 Census revealed that the Hispanic-Latino population in the United States rose to 62.1 million, making up 18.7 percent of the total U.S. population and accounting for slightly more than half (51.1 percent) of the population growth between 2010 and 2020. Hispanic-Latinos now open more small businesses than any other group in the country and are also the fastest-growing demographic of small business owners across the nation. It is not surprising that Hispanic-Latino economic power continues to rise year after year. According to Nielsen Scarborough, the number of Houston Hispanic businesses have increased 85 percent since 2013.

Investing in business

Investing in Hispanic-Latino wealth means supporting entrepreneurs so they are set up for success. Early-stage funding is critical for the growth of a new business, especially when Hispanic-Latino entrepreneurs are still faced with gaps in financial literacy and business education, funding, and networking opportunities.

According to data from Crunchbase, Latino-founded startups accounted for only 2.1 percent of venture investments in the U.S. last year. This is unjustifiable.

As part of our commitment to advancing racial equality and economic opportunity, we have dedicated $350 million in minority- and women-led companies through capital investment by mission-focused venture funds. Of the funds we have in our portfolio, one in every four are led by Hispanic-Latino managers, providing capital that will help entrepreneurs and small business owners grow their businesses, create jobs, and improve financial stability.

An important element to creating opportunities for Hispanic-Latinos to build wealth, whether as a business owner or an employee, is ensuring that young people recognize higher education as a pathway to achieve success. That means partnering with colleges and universities and investing in job creation, skills-building, and support services for students to do so. Locally, we do this with EMERGE Fellowship and with the University of Houston College of Medicine. When we invest in students, we are investing in future professionals and business leaders who will build Hispanic-Latino wealth and contribute to Houston’s economy and culture. This is something we can celebrate together for years to come.

Investing in sustainable homeownership

Sustainable homeownership provides a lasting investment for future generations and cycles capital into the community. The National Association of Hispanic Real Estate Professionals (NAHREP) recently released data showing an increase in Latino homeownership, from 47.5 percent in 2019 to 48.4 percent in 2021, the highest level since the mid-2000s. Through the Community Homeownership Commitment, which provides low down payment loans and closing cost grants, families can take their savings and turn them into lasting legacies. It is a pillar for families to build wealth.

Here in Houston, we also support organizations that assist with homeownership, like Tejano Center, Avenue CDC, and Houston Habitat for Humanity. Building Hispanic-Latino home equity increases the amount of capital families can use now or in the future helping build our Houston economy.

During the past decade, the rate of Hispanic-Latino economic development has far outpaced rates among non-Hispanics. Supporting and honoring our Hispanic-Latino clients is not just a month-long initiative, it is a long-term, generational investment in America and we are proud to be investing in a stronger economy for Houston now and for years to come.

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Rick Jaramillo is the market executive for Bank of America Houston.

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