Houston-based NanoTech Inc. has announced it's closed its seed round of funding. Photo courtesy of NanoTech

It's payday for a Houston startup that is housed out of the new Halliburton Labs. Nanotech Inc., which material science for fire-proofing and insulation, has announced the close of its $5 million seed round.

According to NanoTech's news release, Austin-based Ecliptic Capital led the investment round. Additionally, the deal also resulted in the conversion of a simple agreement for future equity, or SAFE, that was previously issued to Halliburton Labs.

"The investment from Ecliptic Capital will allow us to scale our business to achieve our mission of fireproofing the world and reducing global energy consumption. Additionally, our participation with Halliburton Labs provides us with the support of a Fortune 500 company." says NanoTech's CEO Mike Francis in the release.

Based in Austin, Ecliptic Capital is a fund focused on early-stage startups and supports a wide range of technologies across neglected geographies and industries.

"Ecliptic is proud to partner with NanoTech as the company's founding institutional investor," says Mike W. Erwin, founder of Ecliptic Capital, in the release. "We're excited to work with the company and leverage our operational expertise to rapidly scale this impactful, world-changing technology. We look forward to a new world where NanoTech accelerates the thermal management market from science-fiction to science-fact."

Halliburton Company chose NanoTech among a round of contenders to be the first participant of their 12-month program located at their Houston headquarters. Halliburton provides Nanotech with its own office space, access to Halliburton facilities, technical expertise, and an extensive network to accelerate their product to market.

'We are thrilled to see a Halliburton Labs participant secure their first round of financing, and congratulate the Ecliptic and NanoTech teams,' says Scott Gale, Halliburton Labs executive director, in the release. 'We are confident in the path forward as they work towards achieving a clean energy future.'

NanoTech's proprietary technology has the ability to be utilized for various industries — including commercial construction, chemical plants, oil and gas, aviation, utilities and much more — for eco-friendly spray-on insulation and fireproofing.

"As a company, we are just scratching the surface on where our technology will be used and can't wait to see the business scale." adds Mike Francis.

Houston-based Nanotech was the first company to be selected for Halliburton Labs, a recently announced startup incubator. Photo via halliburtonlabs.com

Houston startup — buoyed by Halliburton — plans to scale

in the lab

A Houston-based material science startup that uses nanotechnology for thermal insulation and fireproofing has been chosen as the first participant of Halliburton Labs, an innovation incubator, announced late last month by the oil and gas giant.

Halliburton Company chose Nanotech Inc., among a round of contenders to be the first participant of their 12-month program located at their Houston headquarters. Halliburton will provide Nanotech with its own office space, access to Halliburton facilities, technical expertise, and an extensive network to accelerate their product to market.

"With Nanotech's shield material we can have fireproofing infrastructure, saving lives and helping save the planet," says Mike Francis, CEO of Nanotech. "But it's tremendously difficult to scale our small lab to take our product globally, so when we heard about this opportunity with Halliburton Labs, we jumped immediately on it."

Nanotech Inc., started with a singular technology and a simple mission to fireproof the world and reduce energy consumption globally. The base nano shield, flex shield, and forged shield products contain nanoparticles ranging from 1 micrometer to 1 nanometer in a water-based solution with other inorganic compounds. The coating is heat resistant, non-flammable, and the nontoxic properties ensure it is sustainable for the environment.

"We see the Nanotech team as part of our team," says Scott Gale, executive director of Halliburton Labs. "We see them as an extension of the founding Halliburton Labs team, during our initial conversations, we saw their product development cycle and founding team and found a lot of great overlap."

From Francis' perspective, Halliburton Labs allows his company to live the best of both worlds, with access to the garage-style office of any startup and a lab equipped with the full muscle of the Halliburton resources and knowledge.

"What they are providing us is incredible," says Francis. "We have access to this world-class multimillion-dollar laboratory that would take us years to build up, we also have access to our own startup garage. You don't lose the magic of that startup phase, but we also get that bump."

According to Francis, they have already began using the lab to conduct tests that will accelerate the rate to take their nano shield technology to market faster.

"The product stands in and of itself but having access to Halliburton Lab's has changed our trajectory dramatically," says Francis. "If Nanotech had to use a third-party lab, the turnaround would take longer, and many of these tests we have been able to conduct in-house with a one or two-day turnaround."

Nanotech is aiming to move quickly, with its funding process well underway, they expect to reach full capitalization in one or two months. From there they will be looking for a home of their own after they graduate from the incubator, constructing a plant that accommodates their infrastructure and their goals of a global operation. Since the announcement of their participation in Halliburton Labs, many investors have reached out to them.

"By this time next year we'll have our fully operational plant that's going to be able to do hundreds of thousands of tons of product per year," says Francis. "We'll be able to iron out the kinks while we use the Halliburton Labs facilities and figure out what we need in our own lab."

Houston-based oil field service company, Halliburton, has introduced its new startup incubator. Getty Images

Houston oil and gas giant premieres new startup incubator and names first participant

new to hou

Not intending to be left out of the energy transition, a Houston-based, multinational oil and gas services company has announced its new incubator for startups to advance cleaner, affordable energy.

Halliburton Company has introduced Halliburton Labs this week and named Houston-based Nanotech Inc., which uses nanotechnology for thermal insulation and fireproofing, as its first participant. Nanotech — along with future entrepreneurs and academics — will have access to the Halliburton facilities, the company's experts, and its network.

"Halliburton Labs reflects our commitment to the science and continued evolution of sustainable, reliable energy," says Jeff Miller, chairman, president, and CEO at Halliburton, in a news release. "We firmly believe that oil and gas will remain an affordable and reliable energy resource for decades to come. At the same time, we recognize the importance of developing alternative energy sources. We are excited to help advance solutions that have the potential for a long term, meaningful impact and that align well with our sustainability objectives."

The program will be based out of Halliburton's North Houston headquarters and will be led by executive director, Scott Gale. The primary focus of the incubator is to help advance and scale the participating startups, which includes developing and advancing products, securing financing and customers, and more.

Startups that will be considered for the program must be past the proof-of-concept phase, and a formal application process will roll out in September. According to the release, additional startup participants will be announced in the next few months. Meanwhile, Nanotech has already moved into the new lab at Halliburton.

"We also couldn't be more pleased to have Nanotech, Inc. as the first participant of Halliburton Labs," says Miller in the release. "Nanotech delivers technology that will change the way we think about energy conservation and fire safety across many sectors."

Nanotech's Nano Shield products can protect from fire damage as well as improve energy efficiency. Mike Francis, CEO and co-founder, launched Nanotech in 2019.

"We are incredibly excited to have been selected as an anchor for Halliburton Labs and help drive meaningful change and innovation in the energy sector," says Francis, in the release. "Access to Halliburton Labs' resources and world-class facilities will help accelerate our growth and deliver our transformative line of products. Through this collaboration, we intend to fundamentally shift the fireproofing and thermal insulation markets towards more effective and environmentally friendly solutions."

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Houston is poised to lead 5G growth in Texas, according to a new report

leading the stream

Based on one key measure, Houston sits at the forefront of a telecom revolution that could spark a regional economic impact of more than $30 billion.

Data published recently by the Texas Comptroller's Office points out that as of last November and December, Houston led all cities in Texas for the number of so-called "small cells." Small cells are a key component in the rollout of ultra-high-speed 5G wireless communication throughout the Houston area and the country.

As the Texas Comptroller's Office explains, small cells are low-powered antennas that communicate wirelessly via radio waves. They're usually installed on existing public infrastructure like street signs or utility poles, instead of the big communication towers that transmit 4G signals.

The comptroller's tally shows Houston had approved 5,455 small-cell sites as of the November-December timeframe. That dwarfs the total number of sites (1,948) for the state's second-ranked city, Dallas.

"Houston is in the vanguard of small cell permitting in Texas, and not just because it's the state's largest city; advocates have lauded its proactive approach to 5G. Other cities, particularly smaller ones, are lagging well behind," the Comptroller's Office notes.

According to CTIA, a trade group for the wireless communications industry, 5G holds the promise to deliver an economic impact of $30.3 billion in the Houston area and create 93,700 jobs. The group says industries such as health care, energy, transportation, e-commerce, and logistics stand to benefit from the emergence of 5G.

"Maintaining world-class communications infrastructure is a requirement for success in a rapidly changing global economy. Small cells and fiber technology are the key foundational components for network densification and robust 5G. Cities like Houston that have embraced the need for this infrastructure will see the benefits of 5G faster than others," Mandy Derr, government affairs director at Houston-based communications infrastructure REIT Crown Castle International Corp. and a member of the Texas 5G Alliance, tells InnovationMap.

Derr says leaders in Houston have embraced the importance of small-cell technology through "reasonable and effective" regulations and processes aimed at boosting 5G capabilities. Three major providers of wireless service — AT&T, T-Mobile, and Verizon — offer 5G to customers in the Houston area.

"More small cells and fiber provide greater and faster access for the masses, enabling the connectivity that is essential to our businesses today — whether it's accepting payments on a mobile card reader, completing a sale on the go, or reliably reaching consumers where they are," Derr says.

In a blog post, Netrality Data Centers, which operates a data center in Houston, proclaims that Houston is shaping up to be a hub of 5G innovation.

"Houston has always been on the frontline," Mayor Sylvester Turner said during a 5G roundtable discussion in 2019. "It is who we are. It is in our DNA. We are a leading city. We didn't wait for somebody else to go to the moon. Or to be the energy capital of the world. Or the largest medical center in the world. But you don't stay at the front if you don't continue to lead."

Houston lands on list of nation's top spots for millennials on the move

migration destination

The Bayou City is shining as an attractive destination for young people on the move.

According to the fifth-annual study from SmartAsset, millennials are fleeing cities like Los Angeles and Chicago and migrating to other areas in search of work and a better quality of life, with Houston landing as the No. 18 spot for young professionals age 25 to 39.

In order to compile the list, SmartAsset dug into U.S. Census Bureau data from all 50 states, the District of Columbia, and 180 specific cities. According to the findings, 18,035 millennials moved in to Houston in 2019, while 15,838 moved out. That makes a net migration of 2,197, per the study.

When it comes to migrating millennials, the Lone Star State is tops, landing at No. 1 for states where millennials are moving, with more than 187,000 young people heading to Texas in the pre-pandemic year. Though some 154,000 millennials left Texas during the same time period, this results in a net gain of more than 33,000 millennial residents, the biggest net gain for the group in the country, giving Texas the lead in millennial migration for the second year in a row.

In news that is hardly shocking, Austin landing as the No. 4 hot spot overall.

While Austin ranks as the top Texas city where millennials are moving, one other Texas spot landed in the top 10, the Dallas suburb of Frisco (No. 6), with a net migration of 3,516 out-of-state millennials in 2019.

Dallas just missed the top 10, landing at No. 11 on the list, with a net millennial migration of 2,525 in 2019. San Antonio (No. 22) showed a net migration of 1,865 millennials.

The top city overall for millennial migration in 2019 was Denver, followed by Seattle.

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This article originally ran on CultureMap.