Texas Endovascular has exited in a private equity deal. Photo courtesy of Getty Images

A Houston-based startup specializing in minimally invasive vascular procedures has made an exit.

Fulcrum Equity Partners, based in Atlanta, has announced the acquisition of Texas Endovascular Associates, a specialty physician practice across five locations in the greater Houston area. The terms of the deal were not disclosed.

“We are excited to partner with the Texas Endovascular team to continue growing the impressive platform they have already built,” says Tom Greer of Fulcrum Equity Partners in a news release. “The company has created a differentiated service model and is well positioned to continue its growth in Texas. We look forward to building on this strong presence in the state as well as pursuing strategic acquisitions as we expand its geographical footprint.”

Fulcrum manages over $600 million in assets and provides expansion capital to rapidly growing companies within health care — including IT, B2B software, and more.

The new funding will spur Texas Endovascular's growth into its next phase of business.

“We knew that finding the right equity partner was critical to our long-term growth prospects,” said Sean Mullen, CEO of Texas Endovascular. “After an exhaustive search and after meeting with multiple prospective PE firms, we chose Fulcrum because of their healthcare experience, collaborative approach, and impressive track record. We are excited to enter this new chapter in our company’s life with Fulcrum as our partner."

The two entities collaborated with Founders Advisors LLC, a merger, acquisition, and strategic advisory firm serving middle-market companies.

“Working with the founders of the practice, Drs. Fox and Hardee, as well as the CEO, Sean Mullen, was a pleasure. The entire team at Texas Endovascular acted as a cohesive unit and persevered to find the right partner in Fulcrum," says Michael White, managing director at Founders Advisors. "We are grateful for the opportunity to be a part of this process and we are looking forward to the future of Texas Endovascular in partnership with Fulcrum”.

Travis Parigi, CEO of LiquidFrameworks, is excited about the new doors that have been opened for his company. Courtesy of LiquidFrameworks

Houston oil and gas software exec eyes M&A activity following private equity deal

Featured innovator

Travis Parigi has built his software within his own company for about 14 years. Now, he's in a position to further develop his product at a faster rate.

In January, LiquidFrameworks entered into a partnership with private equity firm, Luminate Capital. The new financial partner has opened doors for Parigi and LiquidFrameworks — including putting merger and acquisition activity on the table.

"I have historically written stuff from the ground up, and we're going to continue to do that, but we want to give our customers more than that," Parigi tells InnovationMap. "And I've never had the opportunity to go out and strategically target opportunities where it makes sense to compliment the product. And I think that's going to be a very exciting thing to do."

Parigi, founder and CEO, tells InnovationMap about how his company has transformed over the years — and especially over the past several months with its new financial backer.

InnovationMap: How did you get your start in software development?

Travis Parigi: I've been building software since I was a very young kid, actually. I started writing software for companies at a very early age and realized that I really, really enjoyed it. And so when I say young, I'm talking in grade school and high school. And I really found that it was rewarding and I enjoyed meeting the requirements that people gave me. From the very early days, I knew I wanted to start a software company, but I really wasn't sure exactly what it would do. I went to work in the consulting industry right after graduating from A&M University with a degree in computer science and engineering and was building software for variety of different companies that were their clients and started to get some exposure to the energy industry.

Then in the late 1990s, the company I was at was going through some financial struggles, and it became an opportune time for me to start my own consulting company building software for companies. One client I had was Schlumberger, and I really started seeing this similar business problem related to collecting data at the well site. The workers in the field were working with paper and Excel. I thought it was a great opportunity to move people out of manual and into the digital world.

IM: Now, over a decade later, what role do you feel LiquidFrameworks plays in the industry?

TP: We play a role of standardizing the datasets that our clients are working with as it relates to the quote to cash process. So, specifically around their pricing data and their catalog data. We're standardizing that data and we're getting it into form and a shape that allows them to easily keep it up to date and easily syndicated changes related to that data out to not only other offices and districts, but also field crew that may be occasionally connected to the network.

With that data, we can do all sorts of things that end up benefiting the customer — like using it to create field tickets, invoices, work orders, safety forms, quotes, and all sorts of transactions that really need to be based upon one homogenous set of data that standardize, that isn't floating around in various documents.

IM: Where does the artificial intelligence LiquidFrameworks has developed come into play?

TP: We're taking it one step further, and once they finished those transactions, they end up with not just the reference data as it relates to pricing, but also the transactional data, we can use that data to infer the best way to quote or price new services in the future that will position the company and the best possible place to win the deals that they're quoting and bidding against. We're using different types of artificial intelligence algorithms to do that.

Nowadays, companies like us have at our disposal tools in the AI world — specifically in the machine learning world — that we just didn't have when I started the company. Fourteen years ago when I started the business, cloud computing in 2005 was not nearly as ubiquitous as it is today. And it wasn't as widely accepted and it certainly wasn't as widely accepted as it is in the energy industry today.

IM: What kind of clients are you working with?

TP: We're targeting three different industries. The upstream oil and gas service provider market, the downstream service provider market, and the emergency response service provider market. On the upstream side, they are companies doing work at the well site, and in downstream, they are companies doing work at the refineries.

IM: As automation and cloud technology is being more adapted within oil and gas, what technologies are now on your radar?

TP: In the beginning, we spent a lot of time educating our potential customers about cloud computing and about technologies that we had available. And now that a lot of that is so well received, it just means that we don't necessarily have to focus on that anymore. We can focus really on what really brings ROI to the customers that implement our product.

I keep a keen watch on a lot of the different technologies that are emerging out there. Blockchain is certainly one of them that we're looking at. I think there's some interesting things that we might be able to do with that as it relates to price book management, which is complex and varied. It could be that blockchain could end up providing a nice mechanism for both parties to independently have pricing data verified.

We're always keeping an eye on and doing work in artificial intelligence, specifically around machine learning. I think there's always new interesting stuff taking place there outside. I would say those two technologies are something that we're pretty pretty keen on.

IM: How has the transition into private equity been with your new partner in Silicon Valley-based Luminate Capital?

TP: We had a financial partner prior to Luminate Capital called Houston Ventures. Our managing partner there was a guy named Chip Davis. He was fantastic, and he helped us grow the business for about seven years. Eventually, we got to a point where we had grown to a level where I felt like, in order to do some things we wanted to do, we needed to establish a new financial partner. Private equity made the most sense for us, and it's really allowing us to do some things that we couldn't do with venture.

Over the years, we built out a fairly extensive roadmap, and my development team has worked very hard and diligently to fulfill those items on the roadmap. But our customer base has really grown significantly, and we've moved up into enterprise customers who have asked for a lot of things that we want to put into our product. And so our long range roadmap has grown. For these new features, we either need to build that ourselves in house, but, in some cases, there are some things that are tangential and complimentary to our product that other companies have already. So, it could make sense for us to go out and acquire those kinds of companies. And with Luminate, they provided us not only capital for us to do that, but equally as important, they provided an engine that we can facilitate from an M&A perspective to help us go and source those deals, find them, help assess them, and ultimately help acquire them and then integrate them into the overall platform.

IM: How has the partnership benefitted your company from a networking and opportunities perspective?

TP: Their portfolio of companies are similar to us and that they're are all enterprise software companies. They're not necessarily in the energy space, but they're all enterprise software companies. Being able to network with those companies has really been helpful. We didn't have a CFO prior to Luminate coming in. Part of the deal was that they said, "hey, we really would encourage and recommend that you get a CFO at this stage because you're growing and you need it." They provided some relationships there to in the form of recruiters to help us source the CFO. And we ended up sourcing a local CFO — Paul Marvin — who's absolutely fantastic.

IM: How has Houston been as a home base for you?

TP: Houston has been fantastic for LiquidFrameworks. I started the business based here and see no reason to change that. It is a fantastic market for us, both from a customer perspective as well as an employee perspective. The employee talent base in Houston is rich and deep. There's a lot of technical people here, and obviously there's a ton of energy companies.

IM: With all your operations being in Houston, do you see opportunities for other offices in the future?

TP: We have customers all over the world — a lot in Canada, so I could see an office there for sales and implementation. I would say that as we grow, expanding sales to other geographies is certainly something that will ultimately end up doing. It's just not something we've had to do yet.

IM: Are you planning on growing operations here?

TP: We've added a couple dozen people to the team just over the past few months, and we plan on doubling the staff by the end of next year.

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Portions of this interview have been edited.

Houston-based Tachyus closed a $15 million Series B round. Photo courtesy of Thomas Miller/Breitling Energy

Houston oil and gas software company closes $15 million round led by local PE firm

Money on the mind

It's pay day for Houston-based Tachyus. the data-driven software company has closed its Series B fundraising round at $15 million. The round was led by Houston-based Cottonwood Venture Partners, a private equity firm that funds companies using technology to solve problems within the energy industry.

Tachyus was founded in 2013 in Silicon Valley and recently relocated to Houston. The fresh funds will go into growing its cloud-based, artificial intelligence-enabled platform.

"In this economic environment, oil and gas operators need disruptive tools to optimize their fields," Tachyus CEO and co-founder, Paul Orland, says in a release. "This investment allows us to reach more customers and accelerate the delivery of new technology that improves our clients' business performance."

The company has already grown its client base and has customers in Argentina, Europe, and Asia. Tachyus joins several other tech-focused energy startups in CVP's portfolio, including Ambyint, Novi Labs, and SitePro. Houston-based Tudor, Pickering, Holt & Co. served Tachyus as its financial adviser.

"As the oil and gas industry evolves in the face of new commercial challenges, operators need to focus on getting the best performance from their assets, and Tachyus' technology has a track record of doing just that," says Jeremy Arendt, managing partner of CVP, in the release. "We are excited to partner with the Tachyus team to expand their reach and empower customers to optimize production across their fields."

Tachyus closed its last round in 2016 with a $4 million investment from Primwest, according to CrunchBase. Before that, the company had raised several million.

Last year, the startup restructured its C-suite. Tachyus co-founder Dakin Sloss transitioned from CEO to chairman, and Orland, who was previously CTO, took the reins, according to a release.

Paul Orland is CEO of Tachyus. Photo via tachyus.com

A top story this week was Station Houston launching a partnership with Houston universities to combine forces for a summer program. Natalie Harms/InnovationMap

5 most popular innovation stories in Houston this week

What's trending

This week's top news includes a few stories highlighting the people behind innovation — from overheard at OTC to a Q&A with a private equity CEO. Plus, Station Houston launches a new program combining forces with Houston universities.

Need more than just trending news on Fridays? Subscribe to our daily newsletter that sends fresh stories straight to your inboxes every morning.

Overheard: Here's the future of oil and gas tech, according to this panel at OTC

Three young professionals took the stage to discuss the future tech of offshore operations in oil and gas. Courtesy photos

The oil and gas industry has a reputation for being a slow adapter when it comes to technology advances, but that's changing — as is the workforce. In the next few years, half of the United States workforce will be millennials, according to the Bureau of Labor Statistics. Continue reading the story.

Finding lab space for startups and independent researchers in Houston needs to be easier, according to this expert

Rentable lab space is hard to come by. Getty Images

Finding coworking space is getting easier and easier for startups, but the same can't be said for startups looking for lab space. If Houston wants to continue to grow and develop its innovation ecosystem — specifically within research and development in the health sciences industry — the city needs more opportunities for small lab space real estate. Continue reading the story.

Station Houston partners with universities to launch new accelerator program

This summer, Station Houston is connecting the dots for student and alumni entrepreneurs within Houston's innovation ecosystem. Station Houston/Facebook

Houston universities — namely the University of Houston and Rice University — have been providing student and alumni entrepreneurs with acceleration programming for some time now through RED Labs and OwlSpark, respectively. But nonprofit acceleration hub Station Houston is connecting the dots with these programs — and inviting more schools to join in — through a new summer acceleration program.

"One of the things we haven't historically had in Houston that other cities have are broad collaborations between our universities to help build on one another's resources and really demonstrate for our young people — the talent that we want to keep here — exactly how deep and strong the opportunity to be in Houston is," Gabriella Rowe, CEO of Station, tells InnovationMap. Continue reading the story.

Private equity executive talks diversifying and Houston's investment ecosystem

Taseer Badar is in the business of making money. Courtesy of ZT Corporate

It's Taseer Badar's job to keep 1,000 investors happy. As CEO and founder of ZT Corporate, that's just a day in the life for him.

Badar has been in the business for over 20 years, and before that, he was on Wall Street as a financial adviser for Morgan Stanley. He realized the dollar went further in his hometown of Houston, so he came back. He started advising on business plans for people he knew, and earned a lot of loyalty from these early entrepreneurs, and grew ZT from there. He found his way into health care, which made up a good majority of his holdings, until about four years ago when he diversified his company and got into the automotive industry. Continue reading the story.

3 Houston innovators to know this week

From rethinking dry cleaning or marketing to flipping the script on pop culture events, here's who to know this week in Houston innovation. Courtesy Photos

This week's batch of Houston innovators to know are all rethinking the way things are being done, from dry cleaning and marketing to pop culture events. Continue reading the story.


Taseer Badar is in the business of making money. Courtesy of ZT Corporate

Private equity executive talks diversifying and Houston's investment ecosystem

Featured innovator

It's Taseer Badar's job to keep 1,000 investors happy. As CEO and founder of ZT Corporate, that's just a day in the life for him.

Badar has been in the business for over 20 years, and before that, he was on Wall Street as a financial adviser for Morgan Stanley. He realized the dollar went further in his hometown of Houston, so he came back. He started advising on business plans for people he knew, and earned a lot of loyalty from these early entrepreneurs, and grew ZT from there. He found his way into health care, which made up a good majority of his holdings, until about four years ago when he diversified his company and got into the automotive industry.

Last year, the company celebrated its largest exit — Altus Infusion — and acquisition — six Neighbors ER clinics. He created a nonprofit foundation —The Altus Foundation — and raised over $1 million for assistance for underserved families. Over the past 20 years, Badar grew his company from $28 million in revenue to over $600 million — with no end in sight.

Badar spoke with InnovationMap about his career, the health care industry, and what its like to be in private equity in Houston.

InnovationMap: You've recently diversified to include a startup in your portfolio. Tell me about that company.

Taseer Badar: We have group called Accountable Care as an entity, which we are sustaining analytics. It's the opposite of a fee for service business. It used to be that if a patient got sick, we treat you. Now, it's preventive care. We have a pilot of around 40,000 patients right now. It has a lot of potential and it keeps people healthier. How it works is insurance companies pay you to keep their consumer healthy. Let's say an insurance company pays us $100, and we treat them for $85 and keep the rest for our investors.

IM: How does Houston’s investment ecosystem compare to other cities you work in?

TB: For me, it was really hard to move into that. I am very traditional. We're not a risk-based company; we're very risk averse. For me, this fit into our business. It fell in my lap. I do think generally it's a conservative ecosystem, in my opinion. We're not San Francisco — we're not built like that. Not saying no one does it. I was in New York, and those are the guys who understand [venture capital]. In Houston, we understand oil and gas, and we understand medical and real estate. I think we're way off for the startup [investment] here.

IM: With that being said, what is your advice for tech startups seeking capital, then?

TB: Investors in Houston want positive earnings before interest, tax, and amortization. But that doesn't mean it's not possible in New York, Dallas, Austin, or other cities. There are technology conferences everywhere, that's a great way to get known as a startup.

IM: How have you seen the health care industry evolve?

TB: Texas is a state that has a lot of doctors that are entrepreneurial. I personally feel as though that a lot of the Obamacare, and the accountable care, a lot of practices have been bought by hospitals, so you don't see a lot of freestanding medical practices as much as I used to. At the same time, a lot of the younger doctors aren't as business oriented and want more work-life balance. Because there's less of them, there are opportunities for companies like mine to take care of them. When I started, Altus was one of 50 companies of its kind. Now, we are one of two or three standing in Houston with that type of model.

IM: What are the challenges of managing investors?

TB: We have a lot of retail investors. They are great, and it's much more relation based. But, at the same time, a very high-touch business. That requires a lot of time and effort in a relationship. It's a lot more managing of the process.

IM: What do you look for in an investor?

TB: We look for investors that are accredited investors, and we want someone who understands there's a time horizon, who are looking for an income and an exit play between three and seven years. Someone who understands risk and that it's not buying a stock that can be liquidated.

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Portions of this interview have been edited.

Houston-based LiquidFrameworks has been acquired by San Francisco-based Luminate Capital. Pexels

Houston startup exits to Bay Area private equity firm

Grand exit

A Houston startup has entered a deal with a San Francisco-based private equity firm, the companies announced on January 10. LiquidFrameworks, which provides cloud-based, mobile field operations management solutions to oil and gas, environmental, and industrial service companies, is now operating under Luminate Capital following the acquisition.

While not all the terms of the deal have been disclosed, Chip Davis, managing partner at Houston Ventures, says the transaction exceeded $50 million of PE investment from Luminate Capital. HV has been involved with LiquidFrameworks since 2012 and has invested a cumulative $6 million, Davis says, and brought in the company's current CEO and head of sales — both of who are still a part of the company's team.

"When we got involved, it was a very small company," says Davis. "As of today, it has enterprise customers of some of the largest oilfield services companies in the world."

According to the release, Hollie Haynes, Mark Pierce, and Sanjay Palakshappa from Luminate have joined the LiquidFrameworks board of directors. The PE fund's investment is a part of the recently closed $425 million Fund II.

"For over a decade, we have served field services companies by reducing revenue leakage, shortening cash collection cycles, and increasing overall operational efficiencies. We have streamlined the day-to-day operations for field services professionals and increased transparency across organizations by transforming previously paper- or excel-based workflows," says Travis Parigi, founder and COO of LiquidFrameworks, in the release.

"With a partner like Luminate Capital, we will continue to invest and develop product capabilities to better serve field services industries that have previously been overlooked by software innovation."

One of LiquidFrameworks' tools is FieldFX, which enhances companies' data accuracy and accelerates revenue capture and cash flow.

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New Houston incubator launches to support media tech innovation

ready to grow

Houston has a new incoming incubator program for innovators within the media technology space.

The Ion announced a new partnership with MediaTech Ventures, an Austin-based global media industry venture development company, that will bring the MediaTech incubator program to Houston. Applications are open now, and the first cohort will kick off the program in January.

“Modern media has to continually evolve and adapt to new market channels, and with each platform comes the opportunity for innovation to leverage what is possible. It’s why Houston continues to build its market and resources for media technology entrepreneurs and startups looking to make an impact in this constantly evolving space,” says Jan E. Odegard, executive director of the Ion, in a news release.

“We’re thrilled to partner with MediaTech Ventures to further bolster the startups that are an integral part of our innovation community," he continues.

The 12-week program will help early-stage companies tackle marketing, development, and production with education and mentorship with MediaTech Ventures' startup curriculum and platform. The Ion will house the initiative and startups will have access to the hub for programming and networking.

“Ion is the perfect home for our incubator program,” says Josh Sutton, Houston Program Manager at MediaTech Ventures, in the release. “Our goal is to not only tap into the Ion’s valuable innovation ecosystem both within its four walls and beyond it, but to catalyze the development of media technologies and offer more resources for entrepreneurs looking to advance modern media.”

Founded in 2016 to advance the media technology economy, MediaTech Ventures focuses on "unifying innovation with capital, and validating and scaling technology-enabled media startups," per the news release. The program's startups have raised over $10 million following the completion of the curriculum.

An info session is taking place on December 5 at Second Draught in the Ion, and interested applicants can meet, ask questions, and learn more about the program.

Here's how Houston makes the grade as best college town in new report

STUDIES SHOW, STUDY HERE

Houston is called many things: Space City, Bayou City, Medical City. But college town?

The Bayou City boasts two world-class, top-ranked institutions in Rice University and the booming University of Houston. So where does that put the city as far as college town rank?

No. 64, according to the financial website WalletHub, which has just released its list of best college cities in the U.S. for 2023.

Meanwhile, Austin takes the No. 1 spot for best college big city. Another Texas town, College Station, comes in at No. 6 on the small city list.

The most represented state, perhaps not surprisingly, is Florida, with four cities in the overall top 10. The top 10 college cities for 2023, according to WalletHub, are:

1. Austin
2. Ann Arbor, Michigan
3. Orlando, Florida
4. Gainesville, Florida
5. Tampa, Florida
6. Rexburg, Idaho
7. Provo, Utah
8. Scottsdale, Arizona
9. Miami
10. Raleigh, North Carolina

Notably, Austin scored best, No. 12, in the “social environment” category, determined by metrics like students per capita; breweries, cafés, and food trucks per capita; and safety issues like vaccination and crime statistics. Its ranking at No. 21 in the “academic & economic opportunities" category puts it in the 95th percentile, even above Boston and Cambridge, Massachusetts, famous for their Ivy League prevalence.

Elsewhere in Texas, El Paso did well on the overall list at No. 36, followed by Dallas (99), Fort Worth (153), and San Antonio (169). Cities that tend to fall lower in similar studies ranked relatively well among college towns.

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This article originally ran on CultureMap.

3 Houston innovators to know this week

WHO'S WHO

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from health tech to data analytics — recently making headlines in Houston innovation.


Luis Silva, vice president and general manager at AT&T

Not everyone is as holly jolly amid the holidays. Image courtesy

In a guest column, Luis Silva, Houston-based vice president and general manager at AT&T, cautions that the holiday season is prime time for hackers and cyber security threats.

"The good news is you can protect yourself from scams and fraud," he writes. "Just remember that cybercriminals don’t discriminate, they can prey on anyone."

In his article, Silva shares the top five ways to guard against cyberthreats. Read more.

Devin Dunn, head of TMC's HealthTech Accelerator

Devin Dunn leads TMC's HealthTech Accelerator, which is getting ready to welcome its next cohort in January. Photo via TMC.edu

Earlier this year, Devin Dunn joined TMC Innovation as head of TMC's HealthTech Accelerator, a career move that represented Dunn's move to a different side of the startup world. As an early employee at London-based Huma, Dunn was instrumental in growing the health tech company from its early stages to international market expansion.

"I really like working with the dreamers and helping them work backwards to (figure out) what are the milestones we can work toward to make the grand vision come true in the future," Dunn says on the Houston Innovators Podcast. "The opportunity to work with different founders on that same journey that we had been through was really appealing." Read more.

Eric Anderson, CTO of SynMax

Houston-based SynMax has closed its first round of funding. Photo courtesy

A Houston-based satellite data analytics company is celebrating an oversubscribed round of recent funding. SynMax announced this week that it closed its seed round at $6 million with an oversubscription of $2 million. The startup is providing geospatial intelligence software as a service to customers within the energy and maritime industries. The technology combines earth observation imagery and key data sources for predictive analytics and artificial intelligence.

Founded in 2021, SynMax is led by CTO Eric Anderson, who previously worked as an analyst at Skylar Capital, according to LinkedIn. Headquartered in Houston, SynMax is hiring employees from all over. Read more.