If the last few weeks have shown us anything, it's how important the resilience of our digital infrastructure is, our reliance on data, and the power technology has to help us during challenging times. Getty Images

As the United States looks to reopen from an unprecedented shutdown caused by a global pandemic, conversations amongst government and policy bodies are slowly switching to how they will support the economy in the long term. There is a need to improve infrastructure, strengthen the supply chain, increase economic resiliency, etc.

Indeed, the speed of the economic shock caused by COVID-19 highlighted the fragility of many key systems and processes, impacting the ability of the federal and state governments to distribute economic relief funds, manage healthcare capacity, and support small businesses.

There is no better illustration of this fragility in the system than the sudden spike in demand for COBOL programmers. COBOL is a decades-old programming language that was used to write mainframe applications. Apparently over half of the states in the U.S., including California and New York, rely on applications written in a language first introduced in 1959 for their critical state systems.

There is clearly a need to modernize the public services technology infrastructure, not only in expectation of future pandemic-driven disruptions but to increase efficiency and reduce costs nationally. The private sector can and should play an important role in bringing modern technology into the critical parts of the economy.

But that requires a closer collaboration between state governments and technology firms to identify the best and most efficient way forward. Technologies such as artificial intelligence, blockchain, and the Internet of Things can dramatically reshape and improve public sector technology infrastructure while providing broader benefits to the state economies.

The critical first step in building this public-private partnership is to educate and engage state officials and legislators on specific technologies that can be put to use.

On April 29, I attended a virtual meeting organized by Texas Blockchain Committee (TBC) and hosted by the office of State Representative Tan Parker. In attendance, there were individuals and organizations based in Texas that are involved in developing practical applications of blockchain technology. What was also encouraging was that there were quite a few members of the State Legislature in attendance.

Here are a few key points that are worth highlighting from the meeting:

  • There is growing recognition and acceptance that blockchain is a technology that has wide applications outside of the cryptocurrency world. In fact, during the meeting, no one mentioned Bitcoin or crypto-trading.
  • Texas is aiming to explore ways to be at the forefront of blockchain technology adoption and be the leader among the states in promoting Blockchain innovation. Back in 2018 at the height of ICO and cryptocurrency mania, The Brooking Institution labeled Texas as reactionary when it comes to blockchain. Since then the state attitude has changed, in many ways thanks to Representative Parker and his push to initiate a proper study of blockchain's applicability at the state level.
  • There are many Texas-based companies with deep technical expertise and know-how in the blockchain. Some even moved their operations from other parts of the country to Texas in order to scale their businesses.
  • Whether it is related to the distribution of relief funds for businesses or individuals impacted by COVID -19, improvements in the way the healthcare industry handles patient data or other areas that require secure and transparent record management, blockchain is gaining attention as a technology to modernize critical digital infrastructure.
  • Particular attention was given to the efforts in other countries to bring blockchain technology into mainstream adoption. For example, China launched its nationwide Blockchain Services Network (BSN) in April of this year and is looking to bring digital central bank currency online early next year. The Chinese BSN is a result of joint efforts by the government, regulators, and private sector companies – a model that could work very well in the U.S. and in Texas.
  • It is worth noting that at the federal level there are currently over 30 blockchain-related bills in the U.S. House of Representatives and Senate. While a majority of these bills are focusing on the regulation of cryptocurrencies, there are a few that aim to promote the study of blockchain usage more broadly.

As a Texas-based fintech company that has been using Blockchain for the past three years, we are very encouraged by the broad interest in this technology. The Texas Blockchain Committee, led by Lee Bratcher and Karen Kilroy, has managed to pull together many individuals and companies to participate in this exciting effort.

If the last few weeks have shown us anything, it's how important the resilience of our digital infrastructure is, our reliance on data, and the power technology has to help us during challenging times. However, in order for us to leverage technology during harder times, we need to invest in properly applying it during stable times.

I believe this is a step in the right direction for Texas, and I hope we are able to expand the adoption of this technology, where relevant, at a national level. A coordinated national effort to study how technology, blockchain or otherwise, can help us be better prepared for our country's future.

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Rashad Kurbanov is the CEO and co-founder of Houston-based iownit capital and markets, a digital investment platform for private securities.

Houston-based iownit.us got the green light from the Financial Industry Regulatory Authority. Getty Images

Houston blockchain-enabled investment platform gets regulatory approval

green light

For Rashad Kurbanov, this day has been a long time coming. The founder of iownit.us has been building his digital investment platform for two years, and now the company has been approved for membership by the Financial Industry Regulatory Authority.

As a FIRA member, IOI Capital and Markets LLC, a wholly owned subsidiary of iownit.us, the company can be placement agent for digital private securities that are issued on the iownit.us platform.

The iownit.us' blockchain-backed technology allows for a more simplified and streamlined process for securities investment, making it easier on both the investors and the companies seeking investment.

"We believe our platform will reduce friction in the market and reduce costs for all market participants, while importantly providing appropriate investor protections," Kurbanov says in the release.

Kurbanov indicates in the release that the length of the approval process wasn't that surprising.

"As any new technology being introduced in financial markets, blockchain had to be thoroughly evaluated by the regulators to ensure its application in compliance with regulations that made the U.S. capital markets envy of the world," he says. "We spent a significant amount of time with FINRA and SEC Staff on productive discussions working through the use of distributed ledger technology and how it can be implemented to provide convenient yet secure platform."

Iownit.us represents a more modern approach to traditional investing processes in an increasingly digitized world.

"We are not here to 'revolutionize' investing, but we do intend to make it vastly more modern and less complicated for both issuers and investors to engage and transact," he says in the release.

In June, the company closed a $4.5 million Seed round of investment. Kurbanov said that those funds would be use to wrap up this approval process. Now that it's all squared away, the remaining funds will go toward business development and marketing initiatives and technological advancements.

Houston-based iownit.us secured $4.5 million to grow its platform. Getty Images

Houston investment platform completes a $4.5 million Series A round

Money moves

A Houston-based digital investor infrastructure platform closed an investment round of its own. Iownit Capital and Markets Inc. announced that it has closed a $4.5 million Seed round of funding.

The round was lead by a group of private investors who were not identified in the June 26 release. While iownit.us CEO Rashad Kurbanov has been working on the platform for two years, he still awaits regulatory approval.

"This funding shows the demand for a platform like this in the marketplace, and will be crucial in making sure our platform meets regulatory requirements," Kurbanov says in the release. "We're doing everything we can to get this correct from the very start — unlike many firms who say, 'better to ask for forgiveness than permission,' we ask permission first because we don't want to ever be in a position where we're asking for forgiveness."

The primary function of the funds will go to wrapping up this approval process to insure the company has all of its required licenses. After that's all squared away, the remaining funds will go toward business development and marketing initiatives and technological advancements.

Iownit.us uses private blockchain and ledger technology to transact traditional investment deals securely on its digital platform.

"We realized there's a big section of the overall capital market that has not necessarily been touched by technology, and that's the space of private securities," Kurbanov tells InnovationMap in a previous interview.

Kurbanov says the convoluted process of private securities investment has meant that startup companies are much more likely to focus on receiving funding venture firms, because they want to have a one-stop-shopping experience.

When entrepreneurs add in multiple investors, they end up juggling too much of the logistics side of things, rather than running their company. Iownit's platform, enabled by the JOBS Act, plans to simplify this process, which then allows for a diversity of investments in the ecosystem that's in the past been dominated by huge VCs.

"What we do, and where technology helps us, is we can take the entire process of receiving interest from investors, signing the transactions, issuing the subscription agreements, and processing the payments and put that all online," says Kurbanov.

These five Houston startups are linking up industries and blockchain technology. Getty Images

5 Houston companies using blockchain to unlock new opportunities across industries

Linked in

Blockchain has really started to come into its own as more and more companies are applying the technology across industries — from oil and gas analytics and fundraising to even social media marketing.

Five Houston companies have made their mark on these different industries by incorporating this burgeoning technology.

Data Gumbo

Andrew Bruce had the idea for Data Gumbo when he realized how difficult it was to share data in upstream oil and gas. Courtesy of Data Gumbo

As the blockchain-as-a-service company's name suggests, Houston-based Data Gumbo is all about the data.

"The whole idea is to build out the blockchain network, and provide a network that they can subscribe to and start doing business on that network," Andrew Bruce, CEO of Data Gumbo, says. "It's a service, so there's a subscription fee. It gives them access to the savings they already have available within their organizations."

The company, which focuses on providing midstream and upstream oil and gas companies with timely decision-making information, was launched in 2016 and faced a big learning curve in the industry.

"We got a lot of questions and concerns about what blockchain is, why they need it, and whether or not they can trust it," Bruce says. "We were introducing a completely new concept to a conservative industry."

The industry is coming around as Data Gumbo grows its network and proves results.

Social Chains

Big companies are using your data to make a profit — but what if you got a kickback of that cash? That's what Houston-based Social Chains is trying to do. Pexels

When it comes to social media marketing, Houston-based Social Chains is putting the power back into the hands of users. Big social media companies, like Facebook, sell data about you to marketers and advertisers, and there's nothing you can do about it. Social Chains is a new platform where users own their own data and receive a cut of the payment.

"On our platform, the user is a stakeholder. Our platform distributes 50 percent of the profits to the users," Srini Katta, founder and CEO of the company, says.

Social Chains already has 5,000 users and, Katta says, that's with little to no marketing efforts. Currently, he's been working out a few kinks before launching into marketing for the platform, though he expects to do that beginning next month. Most of Social Chain's current users are high school to college students, so that will be the primary demographic for the marketing strategy.

Topl

Houston-based Topl can track almost anything using its blockchain technology. Courtesy of Topl

Blockchain, when applied to consumer products, can be used to complete the full picture of that product. A chocolate bar, for instance, can be traced from cacao farm to grocery store. Not only does the connected information keep each party accountable when it comes to prices, it tells a story.

"We are a generation that wants a story," says Kim Raath, CFO of Topl. "We want an origin, and don't want to be fooled. And, because you might be able to reduce the cost by having this transparency, you might be able to bring down the cost on both sides."

Topl, a Houston-based startup that was created by a few Rice University graduate and doctorate students, uses blockchain to connect the dots. One of the ways Topl's technology is being used is to track money. If an investor gives to a fund, and the fund gives to a startup, there's nothing to connect that first investor to the startup's success or to measure its impact. This is a tool used by investors or donors alike. For instance, if you were to create a scholarship, you can use Topl to track what student received that money and if they are meeting the required metrics for success.

Topl's 2019 focus is on growing its network and what it's able to provide its clients, like an app factory for companies trying to track specific things.

Iownit.us

The stock market has been using tech for years — why shouldn't the private sector have the same convenience? Getty Images

To Rashad Kurbanov, the private investment world was extremely backwards. While the stock market had been digitizing investment for years, private funds had a drawn out process of emails and meetings before moves were made. He thought introducing technology into the process could help simplify the investing for both sides of the equation.

"What we do, and where technology helps us, is we can take the entire process of receiving interest from investors, signing the transactions, issuing the subscription agreements, and processing the payments and put that all online," says Kurbanov, CEO and co-founder of Houston-based iownit.us.

The company is still seeking regulatory approval, but once that happens, the technology and platform will be ready to launch. The platform is a digital site that connects investors to companies seeking money. The investors can review the companies and contribute all online while being encrypted and protected by blockchain.

Houston Blockchain Alliance

blockchain

Here are some of the most common, misunderstood aspects about blockchain technology. Getty Images

The Houston Blockchain Alliance is a newly formed networking group for anyone working within or interested in the blockchain industry. Mahesh Sashital, co-founder of Smarterum, a blockchain news site, founded the organization late last year after realizing Houston was in need of an informative networking group.

"I thought that I'd start the Houston Blockchain Alliance so that someone like me, who's already in the industry, can find other people working in the industry," he says. "And for other people interested in blockchain can learn more and get up to speed with the technology."

The alliance aims to host regular events — its launch event is Feb. 20 — and educate people on blockchain. Click here to read Sashital's guest column about common blockchain misunderstandings.


While each of this week's three innovators has years of experience under their belts, they are each starting something new. Courtesy photos

3 Houston innovators to know this week

Who's who

Common ingredients among entrepreneurs is a great idea, plenty of hard work, and a whole lot of luck. And, if they are lucky, they've got some experience under their belts too. These three innovators this week are all in the process of starting something — a venture fund, an app, an investment platform — but lucky for them, they know what they're doing.

Allison Lami Sawyer, partner at The League of Worthwhile Ventures

Courtesy of Allison Lami Sawer

Allison Lami Sawyer's story has stuck with me since I first heard it a few weeks ago. Primarily because she's a fantastic storyteller paired with, well, a great story. She's from Alabama and didn't really meet a female entrepreneur until she was one. She started Rebellion Photonics and ran it for several years before recently leaving to start something new: a seed fund called The League of Worthwhile Ventures. Sawyer isn't afraid to start something new and cherishes her role inspiring or advising other women entrepreneurs by being a role model for innovation — something she didn't have as a kid. Read the full story here.

Chris Staffel, COO at Patients We Share

Courtesy of Chris Staffel

While relatively new to the health care business, Chris Staffel has tons of business experience from both coasts. She brings those skills to Patients We Share, an app aiming to enhance and improve doctor referrals. The idea originated from two doctors here in Houston, but as it started to take off, they invested in business professionals like Staffel to make their dream a reality. Read the full story here.

Rashad Kurbanov, CEO and co-founder of iownit.us

Courtesy of iownit.us

I'm bending the rules a little bit here because, unfortunately, Houston cannot claim Rashad Kurbanov. However, the New Yorker is betting on Houston for his new company, iownit.us. The website is a platform for private securities investors and fund-raising companies to connect and make deals — without any red tape. Kurbanov has years of financial experience, but has never done anything like this before because well, no one has. Read the full story here.

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CultureMap Emails are Awesome

Houston startups raise funding, secure partnerships across space, health, and sports tech

short stories

It's been a new month and a few Houston startup wrapped up November with news you may have missed.

In this roundup of short stories within Houston startups and tech, three Houston startups across health care, space, and sports tech have some news they announced recently.

Houston digital health company launches new collaboration

Koda Health has a new partner. Image via kodahealthcare.com

Houston-based Koda Health announced a new partnership with data analytics company, CareJourney.

"This collaboration will aim to develop benchmarking data for advance care planning and end-of-life metrics," the company wrote on LinkedIn. "Koda will provide clinical and practice-based expertise to guide the construction of toolkits, dashboards, and benchmarks that improve ACP programs and end-of-life outcomes."

Koda Health announced the partnership in November..

“Beyond the checkbox of a billing code or completed advance directive, it’s important to build and measure a process that promotes thoughtful planning among patients, their care team, and their loved ones,” says Desh Mohan, MD, Koda's chief medical officer, in the post.

CareJourney was founded in 2014 in Arlington, Virginia.

"I'm hopeful next-generation quality measures will honor the patient’s voice in defining what it means to deliver high quality care, and our commitment is to measure progress on that important endeavor," noted Aneesh Chopra, CareJourney's co-founder and president.

Sports tech startup raises $500,000 pre-seed investment

BeONE Sports has created a technology to enhance athletic training. Photo via beonesports.com

Houston-founded BeONE Sports, an athlete training technology company, announced last month that it closed an oversubscribed round of pre-seed funding. The company announced the raise on its social media pages that the round included $500,000 invested.

Earlier in November, BeONE Sports completed its participation in CodeLaunch DFW 2022. The company was one of six finalists in the program, which concluded with a pitch event on November 16.

Space tech company snags government contracts

Graphic via cognitive space.com

The U.S. Air Force has extended Houston-based Cognitive Space’s contract under a new TACFI, Tactical Funding Increase, award. According to the release, the contract "builds on Cognitive Space’s work to develop a tailored version of CNTIENT for AFRL to achieve ultimate responsiveness and optimized dynamic satellite scheduling via a cloud-based API.

The $1.2 million award follows a $1.5 million U.S. Air Force Small Business Innovation Research award that the company won in 2020 to integrate CNTIENT with commercial ground station providers in support of AFRL’s Hybrid Architecture Demonstration program.

“The TACFI award allows Cognitive Space to continue supporting AFRL’s vitally important HAD program to help deliver commercial space data to the warfighter,” says Guy de Carufel, the company’s founder and CEO, in the releasee. “CNTIENT’s tailored analytics platform will enable HAD and the GLUE platform to integrate modern statistical approaches to optimize mission planning, data collection, and latency estimation.”

Houston airport powers up new gaming lounge for bored and weary travelers

game on and wheels down

Local gamers now have a new option to while away those flight delays and passenger pickup waits at Hobby Airport.

Houston's William P. Hobby Airport is now one the first airports in the country to offer what's dubbed as the "ultimate gaming experience for travelers." The airport has launched a premium video game lounge inside the international terminal called Gameway.

That means weary, bored, or early travelers can chill in the lounge and plug into15 top-of-the-line, luxury gaming stations: six Xbox stations, five Playstation stations, four PC stations, all with the newest games on each platform. Aficionados will surely appreciate the Razer's Iskur Gaming Chairs and Kraken Headsets, along with dedicated high speed internet at each PC station.

The Gameway lounge pays homage to gaming characters, with wall accents that hark to motherboard circuits Crucial for any real gamer: plenty of sweet and savory snacks are available for purchase to fuel up on those fantasy, battle, or sporting endeavors. As for the gaming console stations, players can expect high definition screens, comfortable seating, and plenty of space for belongings.

Make video games a part of your pre-flight ritual. Photo courtesy of Gameway

This gaming addition comes just in time for the holiday rush, when travelers can expect long lines, delays, and are already planning for extended time for trips. As CultureMap previously reported, Hobby will see a big boost in travelers this season — the largest since 2019. Now, those on a long journey can plug in, decompress, and venture on virtual journeys of their own.

Texan travelers may be familiar with Gameway; the company opened its first two locations at Dallas Fort-Worth Airport. The buzzy lounge an industry wave of acclaim: Gameway was awarded Best Traveler Amenity in 2019 at the ACI-NA Awards and in 2020, voted “Most Innovative Customer Experience” at the Airport Experience Traveler Awards, per press materials.

Two new locations followed in 2021: LAX Terminal 6 and Charlotte Douglas International Airport. The first of Gameway's Ultra lounge brand opened in September at Delta's Terminal 3 in LAX.

Gaming culture is a way of life in the Bayou City , which hosts Comicpalooza, the largest pop culture festival in Texas, and is home to several e-sports teams, including the pro esports squad, the Houston Outlaws.

A delayed flight never seemed so ideal for gamers flying out of Hobby. Photo courtesy of Gameway

“Gameway is the real reason to get to the airport early,” said Co-Founder Jordan Walbridge in a statement. “Our mission is to upgrade the typical wait-at-the-gate experience with a new stimulating, entertaining option for travelers of all ages.”

Here's guessing Hobby might just see an increase in missed or late flight arrivals — as travelers simply must beat those big bosses, solve puzzles, or win sports matches in the lounge.

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This article originally ran on CultureMap.