Houston startup raises $30M series B, plans to expand its offerings to customers

money moves

Growing Houston-based WizeHire tripled its headcount last year and plans to grow even more as it scales up. Photo courtesy of WizeHire

A Houston software company has closed its latest funding round to the tune of $30 million.

WizeHire, a tech-enabled hiring solution for small businesses, announced the closing of its series B round, bringing its total funding to $37.5 million and its valuation to $250 million, according to the news release. The round was led by Tiger Global with participation from prior Houston-based investors Amplo and Mercury.

The pandemic has greatly impacted businesses ability to hire new employees. Founded in 2014, WizeHire launched a free version of its optimized hiring solution at the height of COVID-19. The company also helped small businesses find and apply for refundable tax credits and Payment Protection Program loans to keep their doors open.

“The pandemic was an incredibly tough time for Main Street, and we were right there with them," says Sid Upadhyay, CEO of WizeHire, in the release. "We’re constantly amazed by the depth of our clients’ trust in us and in response, have stepped up to serve them as a trusted advisor in their business growth. We plan to build a marketplace for small businesses to have access to the resources they need to succeed.”

Now, WizeHire is scaling its abilities to provide more resources to its customers, including offerings like tax, payroll, and insurance advice. The company also recently launched a mobile app for business owners to managing hiring on the go. Additionally, WizeHire has plans to expand into new industries — like automotive, hospitality, insurance, and home services — and add features like recommended background checks, and legally-approved offer letters, per the release.

"WizeHire has created a solution that serves and anticipates the most important needs of Main Street businesses with a focus on hiring skilled workers," Sam Harland, partner at Tiger Global, says in the release. "Rapid adoption of the WizeHire platform by small businesses illustrates the market’s potential, and we are excited to partner with Sid and the WizeHire team.”

The company, which raised its series A a little over a year ago, now has more than 15,000 employers use the platform — and 90 percent of those businesses plan to return for future hiring needs, the release states. Last year, WizeHire doubled its customer base and internally tripled its headcount. The business has plans to continue growing its team this year.

Choice Hotels has a new partner in Houston-based WizeHire. Photo courtesy of Choice Hotels

International hotel chain taps Houston staffing startup to get teams back to work

SAAS moves

A Houston startup has struck a deal with a major new client focused on getting employees back to work at its 6,000 locations worldwide.

Maryland-based international hotelier Choice Hotels International Inc. selected Houston-based WizeHire into its Qualified Vendor program as its only current recruiting solution for the thousands of franchised locations under the Choice Hotels umbrella. WizeHire provides its clients tech-enabled, customized hiring solutions and has a suite of software available for users to utilize.

"We're so excited to support Choice's independently-owned hotels with the most personal and complex part of their businesses—hiring great talent," says Sid Upadhyay, WizeHire's co-founder and CEO, in a press release.

According to data from the U.S. Bureau of Labor Statistics, the hospitality industry saw an unemployment rate of 13.5 percent. With travel expected to increase this year, Choice Hotels is looking to provide its franchisees opportunities to efficiently rehire.

"As a long-time Choice Hotels owner and WizeHire customer, I'm thrilled for what this partnership means for growing my business," says Tushar Patel, owner of Quality Inn & Suites Round Rock - Austin North, in the release.

Hospitality represents one of the six industry verticals WizeHire has listed on its website, and the startup provides "job templates created with industry experts, built-in pre-screening tools specifically for hospitality jobs and benchmarks that help identify the soft skills needed for numerous hotel roles," according to the release.

Choice Hotels nationwide will have access to these resources effective immediately, per the release.

"At a time when there is so much uncertainty for many individuals and employers in the hospitality industry, WizeHire has the opportunity to meet hiring needs at this critical moment," says Justin Nimergood, head of franchise sales for WizeHire. "I'm thrilled to be leading that charge."

After a tumultuous year in which hiring across industries essentially came to a halt, WizeHire is seeing immense business growth as companies plan to rehire, says Upadhyay in a recent interview with InnovationMap. The company recently raised a $7.5 million series A round to gear up for this growth.

With all the uncertainty last, Upadhyay says he and his team instead focused on providing resources, such as PPP loan guidance, for small businesses — something the company is focused on continuing.

"We're really going beyond just the hire," Upadhyay says in a recent episode of the Houston Innovators Podcast. "We're getting to this role where we're going to help you grow your business."

Listen to Upadhyay on the Houston Innovators Podcast:

WizeHire CEO Sid Upadhyay joins the Houston Innovators Podcast to share his big plans for his company as it gears up for growth. Photo courtesy of WizeHire

Houston startup plans to expand to revolutionize tech-enabled small business support

HOUSTON INNOVATORS PODCAST EPISODE 74

Hiring and recruiting has been a challenging and inefficient process for small businesses — yet it could not be more important as a company with a small, growing team.

"Today, whether you're running a startup for the first or second time, at the end of the day, you're just wearing too many hats," says Sid Upadhyay, co-founder and CEO of WizeHire, on this week's episode of the Houston Innovators Podcast. "Recruiting is one of those things where we know talent is the lifeblood of our businesses, but we just don't have the time to think about the process."

Upadhyay says his company, Houston-based WizeHire, lives and breathes for small businesses, and in 2014 the company launched to tap into technology to provide a software service that can streamline a more effective way for startups and small businesses to hire — and hire optimally.

Last month, the company — founded by Upadhyay, Nick Carneiro, and Jay Niblick — closed a $7.5 million series A funding round that was led by Houston-based Mercury Fund and Amplo, which is based just north of Houston in Spring. Additional support came from existing backers Ruchit Shah and RigUp co-founder Sandeep Jain. The fresh funding will go toward expansion — both of its team as well as WizeHire's products.

Upadhyay says the the effects of the pandemic — which includes many businesses ceasing to hire — had profound repercussions on WizeHire.

"We saw half our revenue disappear overnight," Upadhyay says. "As we were going through that up-and-down roller coaster, it was one of the most humbling experience."

Upadhyay says WizeHire has a close relationship with its customers, and they were reaching out asking for guidance from WizeHire during the uncertain times. Upadhyay's team took the opportunity to provide low or no-cost support, especially when it comes to navigating the CARES Act.

"We started to educate our customers about everything from PPP loans to tax credits," Upadhyay says. "We went so far as to connect 300 of our customers to banks — otherwise they wouldn't have been able to get these loans."

These efforts are what led WizeHire to its first venture capital raise. The bootstrapped company has a client base that includes more than 7,000 businesses, and the company recorded $4.7 million in run rate in 2020. Now, in light of the impact WizeHire was able to make with its clients during the pandemic, Upadhyay says the company is going to expand to include other key services, like identifying tax credits.

"We're really going beyond just the hire," Upadhyay says. "We're getting to this role where we're going to help you grow your business."

Upadhyay discusses more about WizeHire's plans for 2021 and the intentionality of the business on the episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.


This week's roundup of Houston innovators includes Rachel Moctron of ClassPass, Sid Upadhyay of WizeHire, and Ashley Small of Medley Inc. 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 innovators across industries recently making headlines — from fitness tech and software to PR and communications.

Rachel Moncton, vice president of Global Marketing at ClassPass

Rachel Moncton shares why ClassPass tapped Houston as a prime place to expand. Photo courtesy of ClassPass

ClassPass recently announced its entrance into the Houston market, and at the helm of the company's new local presence is Rachel Moncton. In a guest article for InnovationMap, she shares why ClassPass was so interested in Houston. The search actually started four years ago, but the tech company finally landed in Houston for its fourth location.

"In 2017, the ClassPass team spent nine months conducting an intensive nationwide search for a city that matched our mission and values," Moncton writes. "As a brand focused on supporting an active lifestyle, we wanted a city that offered a connection to the outdoors. One of the most important driving factors in our search was finding a city where we could attract incredible talent to our team. Though we settled on Missoula, Houston was high on the list." Click here to read more.

Sid Upadhyay, co-founder and CEO of WizeHire

A Houston startup has closed a $7.5 million round of funding with mostly local investment. Photo courtesy of WizeHire

Sid Upadhyay's startup has something to celebrate. The software company founded in Houston closed a $7.5 million series A round of funding led by two Houston-area venture capital firms — Amplo and Mercury Fund. According to a news release, WizeHire will use the funds to scale their business, which is centered around providing personalized hiring resources to small businesses.

"We're a small business helping small businesses with a team of people looking out for you," says Upadhyay. "Hiring is complex and personal. Our customers see what we do not just as software; they see us as a trusted advisor." Click here to read more.

Ashley Small, founder and CEO of Medley Inc.

From events to online shopping — here are four tech trends to look out for this year according to Ashley Small. Photo courtesy of Medley

For Ashley Small, founder and CEO of Medley Inc., innovation and inclusion go hand in hand. Business leaders need diverse voices at the table to drive new ideas and innovation.

"Innovation is actually impossible without diversity," Small says on the most recent episode of the Houston Innovators Podcast. "A part of this is also being really open minded to the fact that you are going to hear ideas that sound and look different. Be open to that, because that is 100 percent the point."

Small discusses more about how she's honoring Black History Month with her team and the evolution the PR and media industries have seen over the past decade on the episode. Click here to stream the episode and read more.

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10+ can't-miss Houston business and innovation events for October

WHERE TO BE

From networking meetups to pitch competitions, October is lined with opportunities for Houston innovators.

Here's a roundup of events you won't want to miss out on so mark your calendars and register accordingly.

Note: This post might be updated to add more events.

Additionally, mark your calendars for November 8 for the annual Houston Innovation Awards.

October 6 — Texas Venture Crawl

Head over to the Ion for pre-panel networking, an engaging Ask-Me-Anything (AMA) investor panel, followed by a happy hour for networking. Panelists include Grace Chan, Principal at bp Ventures; Jason Ethier, Founder of Lambda Catalyzer; Alex Gras, Associate at Mercury Fund; and Billy Grandy, Chief Innovation Officer and Managing Partner at Softeq Venture Fund.

This event is Friday, October 6, from 5 to 8 pm at the Ion. Click here to register.

October 7 — Ideation Competition

The Pearland Innovation Hub is hosting it's first Ideation Competition. Participants will get an opportunity to have mentors guide them through Design Thinking and other methodologies to help generate ideas to solve local civic issues.

This event is Saturday, October 7, from 9:30 am to 3 pm at Pearland Innovation Hub. Click here to register.

October 11 — Emerging Tech: Revolutionizing the Industry Panel

From artificial intelligence and blockchain to virtual reality, this panel will explore the impact of these innovations on businesses and society. Whether you are a tech enthusiast, a professional in the industry, or simply curious about the future of technology, this event will have valuable networking opportunities.

This event is Wednesday, October 11, from 1 to 2 pm at HCC West Loop Campus. Click here to register.

October 13 — Web3, Blockchain, & Crypto...Oh My!

Expert speakers will unravel the mysteries of Web3, showcasing its potential to revolutionize industries like finance, gaming, and more. Learn about the power of Blockchain technology and how it ensures transparency, security, and trust in various sectors. Explore the endless possibilities of Cryptocurrencies and their impact on the global economy.

This event is Friday, October 13, at the Cannon. Click here to register.

October 16 — Health & MedTech Mingle

Pumps & Pipes is hosting a night of industry mingles occurring simultaneously at the Ion featuring FinTech, EdTech, Food Tech, and more. This month's featured speaker is Dr. Alan Lumsden, Chair of Cardiovascular Surgery and Chair of the DeBakey Heart & Vascular Center at Houston Methodist.

This event is Monday, October 16, at the Ion. Click here to register.

October 19 — UH Energy Symposium Series - The Future of Mobility Promises & Bottlenecks

The latest installment of UH Energy's Critical Issues in Energy Symposium Series tackles the obstacles facing a transition to a circular economy.

Panelists to include: Dave Mullaney – Principal, Rocky Mountain Institute; Varuna Singh – Deputy District Engineer TxDOT; Erika Myers – Executive Director, CharIN, e.V.; Matt Peterson – President and CEO, Los Angeles Cleantech Incubator; Catherine McCreight – Director of Transportation Planning, TxDOT; Funda Sahin – Associate Professor of Supply Chain Management, University of Houston (Moderator).

This event is Thursday, October 19, at the University of Houston. Click here to register.

October 25 — Houston Startup Ecosystem Summit

The Houston Startup Ecosystem Summit is an opportunity for innovators, entrepreneurs, and tech enthusiasts to come together and push the boundaries of what's possible. This event features a lineup of panelists, diverse breakout session tracks, and a competitive startup pitch showcase.

This event is Wednesday, October 25, at the Cannon. Click here to register.

October 25  — TMC Startup Symposium

The Symposium will include 1:1 time with subject matter experts, industry networking events, educational presentations, and thought leader panel discussions. The following topics will be covered: intellectual property, voice of customer, regulatory reimbursement, clinical commercialization strategy, angel investing, venture capital investing, and serial entrepreneurship. Startup registration is $250 for a ticket.

This event starts Wednesday, October 25, from 8 am to 5 pm at TMCi. Click here to register.

October 26 — Unleash the Power of AI and ChatGPT

Attendees will have the opportunity to interact with a panel of industry experts, and network with like-minded individuals. Whether you're a seasoned professional or just starting your AI journey, this event is designed to inspire and educate. Discover how AI is revolutionizing various industries and learn how to leverage its power to drive innovation in your own projects.

This event is Thursday, October 26, from 6 to 8:30 pm at the Cannon. Click here to register.

October 27 — SHINE: The Conference on Culture

Shine is a half day conference focused on the organizational structures of workplaces. Attendees can expect to hear from a range of speakers who will share their wisdom gained from industries, from breweries to public relations.

This event is Friday, October 27, from 8 am to 1 pm at Stages. Click here to register.

October 30-31 — Fuze

This energy conference is a must-attend event for executives, investors, and founders serious about solving the energy crisis and boosting company efficiency. Featuring keynotes, expert panels, tech showcases, and networking, Fuze has a variety of activities planned for energy industry professionals. Price of admission ranges from $299-$799.

This event starts on Monday, October 30, from 8 am to 7 pm at 713 Music Hall. Click here to register.

Houston school names digital education expert to newly created position

new to rice

Rice University is beefing up its digital education efforts with the hiring of an internationally known expert from Duke University.

Shawn Miller is set to join Rice on November 1 in the newly created position of associate provost for digital learning and strategy. Miller’s hiring culminates a nationwide executive search announced in May 2023 and led by C. Fred Higgs III, vice provost for academic affairs.

Rice explains that Miller “will be the key steward of Rice’s digital strategy — leveraging best practices already in place across the university as well as introducing new approaches and collaborations to be scaled.”

Miller comes to Rice from Duke, a North Carolina school where he most recently has been associate vice provost and chief of staff for learning innovation. Miller previously was Duke’s interim associate vice provost for digital education and innovation. And for six years, he directed Duke Learning Innovation, which he co-designed and launched. He began working for Duke in 2006 as an academic technology consultant.

Shawn Miller is set to join Rice on November 1 in the newly created position of associate provost for digital learning and strategy. Photo courtesy of Rice

Earlier, he led creation of the first learning management system for the University of Texas at El Paso. Miller holds bachelor’s and master’s degrees from UTEP.

“I’ve spent the better part of my career helping universities transform and change to better serve their students,” Miller says in a Rice news release. “I look forward to leveraging my skills to empower Rice’s community of scholars, researchers, and learners to transform themselves, their communities, and others through education.”

In the news release, Joshua Kim, director of online programs and strategy at Dartmouth College in New Hampshire, calls Miller “an internationally recognized leader in the digital learning and online education space.”

“His move to a new leadership role at Rice is a very significant development within our education innovation community,” says Kim.

Miller’s accomplishments at Duke include:

  • Setting up a digital publishing platform for learning
  • Shifting thousands of faculty and students from a legacy learning management system to a new digital system
  • Building a partnership with online education provider Coursera

“Shawn is a national leader in digital innovation and has a deep understanding of digital learning as well as proven experience in building a sustainable, long-term strategy for innovation and developing an integrated approach across the university,” says Amy Dittmar, a Rice provost who is executive vice president for academic affairs.

“I am excited to work with Shawn as he leads Rice to enhance digital education for current students,” Dittmar adds, “and look forward to seeing more professionals in Houston and around the world benefit from a Rice education as a result of his efforts.”

Initiatives spearheaded by Miller and other professionals in digital education have gained traction since the onset of the COVID-19 pandemic, which forced Rice and other colleges and universities to accelerate their embrace of virtual learning.

“The growing adoption of digital learning technologies continues to push education into uncharted areas,” according to an article published this March in the research journal Sustainability.

“While teachers must rethink what it means to provide a learning experience,” the article goes on to say, “higher education institutions must match their educational technology solutions to students’ demands. Digital learning is far superior to the conventional classroom paradigm in many ways for both teachers and students.”

The value of the global market for digital education is projected to jump from $1.2 billion in 2018 to $77.23 billion by 2028, driven in part by growing interest among colleges and universities in augmented reality (AR).

Houston-area schools make best universities list, tech nonprofit expands, and more trending news

top stories

Editor's note:Another week has come and gone, and it's time to round up the top headlines from the past few days. Trending Houston tech and startup news on InnovationMap included Houston schools scoring big on a recent ranking, a tech nonprofit platform expands, and more.

3 Houston universities rise to the top in new list of best Texas schools for 2024

UH ranked No. 8 in Texas. Photo courtesy of University of Houston

Houston universities are ramping up high quality educational experiences for their students as three local universities earn top 10 ranks for the best Texas colleges in 2024, according to a new report by U.S. News and World Report.

Rice University claimed the top spot in Texas, and ranked No. 17 in the national ranking. Houston's "Ivy League of the South" had an undergraduate enrollment of nearly 4,500 students in fall 2022. In April, Rice's Jones School of Business ranked No. 2 in U.S. News' ranking of the best graduate programs in Texas. Read more.

Growing Houston tech nonprofit expands access to textbooks for college students

OpenStax, founded out of Rice University, has continued its growth, adding new partners and textbooks. Photo via openstax.org

If everyone that attended a college or university were polled, they’d all likely agree that one of the worst parts of the experience was the rising costs of textbooks.

In an effort to combat the hefty price tag of assigned texts, OpenStax, a nonprofit education startup out of Rice University, which is on a mission to increase educational access for all, seeks to democratize high-quality education by offering free, peer-reviewed, openly licensed textbooks for students and knowledge seekers across the globe.

This school year, OpenStax is adding 16 academic institutions onto its platform, including Georgia State University, Southwest Texas Junior College, Texas A&M University-Commerce, University of San Diego, and more. It's the largest batch of new schools OpenStax has on boarded in a year. Read more

New-to-Houston hardtech accelerator names new CEO, opens applications

Activate announced Cyrus Wadia as its new CEO and opened its 2024 applications. Photo courtesy of Activate

A national organization that helps accelerate scientists into entrepreneurs has named its new CEO in the same week that applications opened for its 2024 cohort.

This week, Activate announced Cyrus Wadia as CEO of the organization. Based California, Activate recently expanded to Houston. The two-year accelerator provides funding and support for its selected cohorts. Read more.Read more.

Houston startup founders prepare to scale globally following Shark Tank success

Berkley Luck and Pedro Silva, co-founders of Milkify, join the Houston Innovators Podcast to discuss the impact of their successful Shark Tank experience. Photo courtesy of Milkify

While Milkify's founders — husband and wife team Pedro Silva and Berkley Luck — secured partners on a popular business pitch and investment show, the entire experience almost didn't happen.

Silva and Luck, who got her PhD in molecular and biomedical s at Baylor College of Medicine, founded the company to provide breast milk freeze drying as a service to Houston-area families. Now, Milkify has customers across the country, but the duo didn't know if going through the process would be worth the investment and publicity, or if it would just be a distraction.

"The competitor in me wanted to be the first breast milk company to go on the show and to tell our story to the world — to show the world what my wife came up with that we thought was so great," Silva says on the Houston Innovators Podcast. "It was probably the scariest 45 minutes of my life." Read more.

10 startups named most-promising in energy tech at Houston conference

Here's what energy transition companies stood out to Rice Alliance's experts. Photo via Rice Alliance

At the 20th annual Energy Tech Venture Forum presented by Rice Alliance for technology and Entrepreneurship, 11 startups scored recognition from the event's investors who evaluated over 90 early-stage energy transition companies.

"The selection process was both exhilarating and challenging given the incredible ideas we've seen today," says Jason Sidhu, director of information services business engagement at TC Energy, who announced the top companies. "I want to extend my gratitude to every company that participate din this year's Energy Tech Venture Forum. Your commitment to solving energy problems and pursuing ambitions ideas is truly commendable." Read more.

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