A Houston founder explains why you should shift the way you think about cybersecurity from a cost to an investment in your business. Photo via Getty Images

For companies big or small, scaling your revenue securely is about building people, processes, and technology to help you deliver your value to market in the most efficient way possible. But shifting cybersecurity as a cost to an investment takes a shift in thinking.

Here are three tips to make cyber a business decision for your company.

Don’t fail at digital transformation. Whether you’re considering a digital “initiative” to stay ahead of competitors, reduce operational expenditure when possible, or simply drive efficiency to customer value delivery, transforming how you’re doing business should rest upon a foundation of security across your existing people, process, or technology. An effective cybersecurity program should drive confidence to your team to expand your tooling, processes, or delivery mechanisms with confidence. The alternate reality is you shift a working process to incorporate new technology, and something fails or breaks, causing frustration of your team and fewer dollars in the door. Here are a few tips that will help you make sound business investments in technology:

  1. New technology or system can introduce new cyber risks to your company. As a result, it is good practice to balance the value gained with the risks absorbed. Establishing a “new product” risk vs reward process will reduce ad hoc purchases and introduce more sound thinking to your team’s decisions.
  2. New technology purchases will come with vendor onboarding but beware of the challenges you face when those implementation or training hours run out. Ask for additional support hours as part of your purchase so that you’re always able to call a help desk for real support.

Secure design reduces long-term costs. Regardless of your business type, if some type of cyber-attack could affect your business outcome(s) — be it your product, the loss of sensitive customer data, theft of intellectual property, or disruption to service delivery — consider investments in your cyber program an investment towards the cost of future business operations.

For instance, manufacturers across virtually every sector continually balance “secure design” with efficiency/cost as they compete in the market. Their challenge: estimating future recalls and product “updates” to be paid for by future operational expenditure. The same can be applied to unforeseen downtime of a critical inventory, payment capture, or website system. In both cases, here are two tips to shift cyber from a “security cost” to a “business” mindset:

  1. Work with your security vendors to develop a long-term strategy rather than quoting an “install and leave” project. Security vendors are businesses too. They will respond positively if you tell them you will offer longevity in return for payment over time. 
  2. Amortize your costs this year into next year's costs of goods. If you can negotiate monthly or quarterly payments with your security vendors, adding 30-60 days of net pay dates, you’re already starting to shift security improvements realized tomorrow to costs you pay next quarter.

Your customers want you to have a great cyber program. Especially in regulated spaces like healthcare, defense, and other critical infrastructure sectors, there is a high chance your company’s cyber program must meet minimal cyber guidelines. Investing in the training, processes, and technology required to achieve some element of “compliance” is a must-have investment for doing business with big companies.

A mistake small companies make is allocating the minimal resources “reach the bar” without thinking about the risks. Employee turnover, scaling your business in new regions, and increasing purchase order sizes all carry a potential “new bar” you must reach on your cyber maturity. Building a cyber program initiative may help you increase sales. Imagine you say this in your next prospect meeting as you aim to win that big contract, “Additionally, we reviewed your cybersecurity supplier requirements online and are pleased to say we have certified documentation showcasing an evolving, continually improving cyber program that exceeds your requirements. We feel that adds to our differentiation.”

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Ted Gutierrez is the CEO and co-founder of SecurityGate, a SaaS platform for OT cyber improvement.

Three Houston startup founders took the stage to talk product/market fit, customer acquisition, funding, and the rest of the startup journey at a panel at SXSW. Photo courtesy of the GHP

Houston founders demystify startup journey on SXSW panel

Houston innovators podcast episode 177

Editor's note: On Monday at Houston House, a SXSW activation put on by the Greater Houston Partnership, I moderated a panel called “Demystifying the Startup Journey.” Panelists included three Houston founders: Ted Gutierrez, co-founder and CEO of SecurityGate.io, Simone May, co-founder and CTO of Clutch, and Gaurav Khandelwal, founder and CEO of Velostics. The three entrepreneurs discussed their journeys and the challenges they face — from product/market fit and hiring to fundraising and customer acquisition. Listen to the full conversation on this week’s episode of the Houston Innovators Podcast below. Thank you to SXSW and GHP for the recording.


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Houston ecommerce scale-up company acquires Amazon advertising partner

all aboard

A Houston tech company has tapped an Amazon partner in a strategic acquisition and is bringing the company's full team on board.

Cart.com acquired Ohio-based Amify, a company that provides optimization and advertising solutions. The terms of the deal were not disclosed but Cart.com will on board Amify’s entire employee base, including its founder Ethan McAfee, CEO Chris Mehrabi, and COO Christine McCambridge.

As chief delivery officer, Mehrabi will take the helm of Cart.com’s professional services business and McCambridge will lead Cart.com’s marketplace services team as vice president of marketplace services operations.

“I’m happy to welcome the entire Amify team to Cart.com and have industry veterans Chris Mehrabi and Christine McCambridge join our leadership team,” Cart.com Founder and CEO Omair Tariq says in a news release. “Amify has been widely recognized for their expertise and technology and we’re excited to leverage their experience to help our customers maximize their potential across channels.”

Cart.com's membership will have access to Amify's proprietary technology platform, including advertising, creative content, supply chain strategy, and analytics. The company, which was founded in 2011, currently supports over 50 global brands and manages approximately $1 billion in gross merchandise value. According to LinkedIn, Amify has over 50 employees.

“We could not be more excited to join Cart.com and leverage the company’s resources and scale to deliver value to both our customers and employees,” Mehrabi says. “I’m honored to step into the role of Chief Delivery Officer and contribute to Cart.com’s incredible growth story and innovative reputation.”

Founded in Houston in 2020, Cart.com provides comprehensive physical and digital infrastructure for online merchants. The company raised a $60 million series C and grown its customer base to over 6,000 users. After making several acquisitions, the company also operates 14 fulfillment centers nationwide.

Earlier this year, Tariq sat down with the Houston Innovators Podcast to share a bit about how the company is currently in scale-up mode.

Houston health tech innovator collaborates on promising medical device funded by DOD

team work

The United States Department of Defense has awarded a grant that will allow the Texas Heart Institute and Rice University to continue to break ground on a novel left ventricular assist device (LVAD) that could be an alternative to current devices that prevent heart transplantation and are a long-term option in end-stage heart failure.

The grant is part of the DOD’s Congressionally Directed Medical Research Programs (CDMRP). It was awarded to Georgia Institute of Technology, one of four collaborators on the project that will be designed and evaluated by the co-investigator Yaxin Wang. Wang is part of O.H. “Bud” Frazier’s team at Texas Heart Institute, where she is director of Innovative Device & Engineering Applications Lab. The other institution working on the new LVAD is North Carolina State University.

The project is funded by a four-year, $7.8 million grant. THI will use about $2.94 million of that to fund its part of the research. As Wang explained to us last year, an LVAD is a minimally invasive device that mechanically pumps a person’s own heart. Frazier claims to have performed more than 900 LVAD implantations, but the devices are far from perfect.

The team working on this new research seeks to minimize near-eventualities like blood clot formation, blood damage, and driveline complications such as infection and limitations in mobility. The four institutions will try to innovate with a device featuring new engineering designs, antithrombotic slippery hydrophilic coatings (SLIC), wireless power transfer systems, and magnetically levitated driving systems.

Wang and her team believe that the non-contact-bearing technology will help to decrease the risk of blood clotting and damage when implanting an LVAD. The IDEA Lab will test the efficacy and safety of the SLIC LVAD developed by the multi-institutional team with a lab-bench-based blood flow loop, but also in preclinical models.

“The Texas Heart Institute continues to be a leading center for innovation in mechanical circulatory support systems,” said Joseph G. Rogers, MD, the president and CEO of THI, in a press release.

“This award will further the development and testing of the SLIC LVAD, a device intended to provide an option for a vulnerable patient population and another tool in the armamentarium of the heart failure teams worldwide.”

If it works as hypothesized, the SLIC LVAD will improve upon current LVAD technology, which will boost quality of life for countless heart patients. But the innovation won’t stop there. Technologies that IDEA Lab is testing include wireless power transfer for medical devices and coatings to reduce blood clotting could find applications in many other technologies that could help patients live longer, healthier lives.

Houston investor on SaaS investing and cracking product-market fit

Houston innovators podcast episode 230

Aziz Gilani's career in tech dates back to when he'd ride his bike from Clear Lake High School to a local tech organization that was digitizing manuals from mission control. After years working on every side of the equation of software technology, he's in the driver's seat at a local venture capital firm deploying funding into innovative software businesses.

As managing director at Mercury, the firm he's been at since 2008, Gilani looks for promising startups within the software-as-a-service space — everything from cloud computing and data science and beyond.

"Once a year at Mercury, we sit down with our partners and talk about the next investment cycle and the focuses we have for what makes companies stand out," Gilani says on the Houston Innovators Podcast. "The current software investment cycle is very focused on companies that have truly achieved product-market fit and are showing large customer adoption."



An example of this type of company is Houston-based RepeatMD, which raised a $50 million series A round last November. Mercury's Fund V, which closed at an oversubscribed $160 million, contributed to RepeatMD's round.

"While looking at that investment, it really made me re-calibrate a lot of my thoughts in terms what product-market fit meant," Gilani says. "At RepeatMD, we had customers that were so eager for the service that they were literally buying into products while we were still making them."

Gilani says he's focused on finding more of these high-growth companies to add to Mercury's portfolio amidst what, admittedly, has been a tough time for venture capital. But 2024 has been looking better for those fundraising.

"We've some potential for improvement," Gilani says. "But overall, the environment is constrained, interest rates haven't budged, and we've seen some potential for IPO activity."

Gilani shares more insight into his investment thesis, what areas of tech he's been focused on recently, and how Houston has developed as an ecosystem on the podcast.