This week's roundup of Houston innovators includes Winston Wright of Alto, Serafina Lalany of Houston Exponential, and Zeev Braude of SiteAware. Courtesy photos

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from startup development to construction technology — recently making headlines in Houston innovation.

Winston Wright, Houston general manager at Alto

Winston Wright leads Houston operations for Dallas-based Alto, which is taking on the likes of Uber and Lyft. Photo courtesy of Alto

As any Houstonian knows, the city is quite large. While Dallas-based Alto, a luxury rideshare service, rolled out in Houston a while ago, Winston Wright has plans to make sure the company is covering the entire greater Houston area.

Wright, who's the Houston general manager for Alto, joined last week's episode of the Houston Innovators Podcast. He shares more on Alto's future in Texas and beyond, as well as what's challenging him most as he grows the team locally.

"The vision I have for this market is that, as we move forward and continue to expand, that we're covering all of Houston," he says. Click here to read more and to listen to the episode.

Serafina Lalany, executive director of Houston Exponential

Houston Exponential appoints new executive director and restructures its boardHX has its new permanent leader. Photo courtesy of Serafina Lalany

It's a new era for Houston Exponential, and Serafina Lalany, named the organization's executive director last September, is leading HX into its new phase.

"The interesting thing of being an organization of ex-startup operators is that we operate as a startup ourselves," she tells InnovationMap. "Along the journey of supporting and building infrastructure for a startup community, we have also been seeking our own product market fit. I think we're at the place now where we have a profound realization of what that is and who we serve. We have crystal clear vision around that."

Lalany discusses more of her plans for HX for 2022 and shares how the organization is evolving to be what Houston's innovation ecosystem needs in an interview. Click here to read more.

Zeev Braude, CEO of SiteAware

Houston-based SiteAware has raised $15 million in its latest round of funding. Photo courtesy of SiteAware

SiteAware, a Houston construction software startup, raised $15 million in its series B round, which was led by Singapore-based Vertex Ventures Israel. Existing investors Robert Bosch Venture Capital GmbH, Axon Ventures, Oryzn Capital, The Flying Object, and lool Ventures also contributed to the round.

The company's digital construction verification, or DCV, platform uses AI and digital twin technology to provide real-time verification of construction fieldwork. According to a press release from SiteAware, the construction industry represents a $1.3 trillion market share of the United States economy.

"SiteAware's DCV error prevention technology is disrupting the construction industry by dramatically accelerating schedules and streamlining work processes for all parties. In the next few years, everyone from contractors to developers will be using DCV to build without rework," says Zeev Braude, CEO of SiteAware, in a news release. "DCV gives the construction ecosystem access to data they've never had before, data that holds the key to the next jump in productivity for the industry." Click here to read more.

Houston-based SiteAware has raised $15 million in its latest round of funding. Photo courtesy of SiteAware

Houston-based construction software startup closes $15M in funding round

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A Houston startup that provides artificial intelligence-enabled verification software to the construction industry has closed its series B round.

SiteAware raised $15 million in the round, which was led by Singapore-based Vertex Ventures Israel. Existing investors Robert Bosch Venture Capital GmbH, Axon Ventures, Oryzn Capital, The Flying Object, and lool Ventures also contributed to the round.

The company's digital construction verification, or DCV, platform uses AI and digital twin technology to provide real-time verification of construction fieldwork. According to a press release from SiteAware, the construction industry represents a $1.3 trillion market share of the United States economy.

"SiteAware's DCV error prevention technology is disrupting the construction industry by dramatically accelerating schedules and streamlining work processes for all parties. In the next few years, everyone from contractors to developers will be using DCV to build without rework," says Zeev Braude, CEO of SiteAware, in a news release. "DCV gives the construction ecosystem access to data they've never had before, data that holds the key to the next jump in productivity for the industry."

The company, founded in 2015 by Braude and CTO Ori Aphek, closed its series A round at $10 million in October of 2020. The company will use the fresh funds continue its software's growth and presence in the market.

"As the first mover in this new category, SiteAware is blazing a trail for the entire construction industry, allowing the sector to leverage technologies that will ultimately make it more efficient, more transparent and smarter," says Emanuel Timor, general partner at Vertex Ventures, in the news release. "We look forward to working closely with the team at SiteAware as it expands its footprint and deepens its work with industry leaders around the world."

According to the release, SiteAware saw a 3X revenue growth in 2021.

Houston-based SiteAware has raised $10 million in its latest round of funding. Photo courtesy of SiteAware

Houston construction software startup raises $10M in series A round

money moves

A growing startup that provides artificial intelligence-enabled verification software to the construction industry has announced the closing of a multimillion-dollar round.

Houston-based SiteAware announced last week that it's closed a $10 million series A investment round that was co-led by San Diego-based Axon Ventures and Germany-based Robert Bosch Venture Capital.

The company's platform uses AI and digital twin technology to provide real-time verification of construction fieldwork. According to a press release from SiteAware, the construction industry represents a $1.3 trillion market share of the United States economy.

"The cost of construction errors and the risk mitigation costs contribute to 10 to 30 percent of this number. SiteAware's technology significantly lowers this overhead, allowing for customers to reap the benefit," says Zeev Braude, SiteAware CEO, in the release.

By scanning buildings under construction, SiteAware's technology constructs a 3D model of the area and compares the progress of the structures to the construction plans in real time. This technology allows for any deviations from the plan to be realized as soon as possible, which means avoiding costly repairs or reconstructions.

"By enabling general contractors and developers to reduce the cost of errors and better mitigate risk, the ripple effect lowers the cost of real estate, providing better value opportunities for home buyers," Braude adds in the release. "Our technology closes the gap between plans and field work, solving this very important challenge within the trillion dollar construction sector."

SiteAware, which was founded in 2015 by Braude and CTO Ori Aphek, previously raised seed funding in 2015 and 2016. Existing investors, including lool Ventures, Oryzn Ventures, The Flying Object and Power Capital Venture also participated in the round.

"SiteAware has built a state of the art technology which provides the digital value that the construction industry has been needing, and we're excited to join in their vision," says Arad Naveh, partner at Axon VC, says in the release. "We were highly impressed that they were able to build a customer base of market leaders, and moreover, the impact that SiteAware's tools are already making."

SiteAware's technology can analyze construction sites in real time. Image courtesy of SiteAware

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Houston tech platform raises series C round backed by Mastercard

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Hello Alice, a fintech platform that supports 1.5 million small businesses across the country, has announced its series C round.

The amount raised was not disclosed, but Hello Alice reported that the fresh funding has brought the company's valuation to $130 million. Alexandria, Virginia-based QED Investors led the round, and investors included Mastercard, Backstage Capital, Guy Fieri, Golden Seeds, Harbert Growth Partners Fund, How Women Invest I, LP, Lovell Limited Partnership, Tyler “Ninja” and Jessica Blevins, and Tamera Mowry and Adam Housley, per a news release from the company.

“We are thrilled to hit the milestone of 1.5 million small businesses utilizing Hello Alice to elevate the American dream. There are more entrepreneurs launching this year than in the history of our country, and we will continue to ensure they get the capital needed to grow,” Elizabeth Gore and Carolyn Rodz, co-founders of Hello Alice, say in a news release. “In closing our Series C, we welcome Mastercard to our family of investors and continue to be grateful to QED, How Women Invest, and our advocates such as Guy Fieri.”

The funding will go toward expanding capital offerings and AI-driven tools for its small business membership.

“Our team focuses on finding and investing in companies that are obsessed with reducing friction and providing superior financial services solutions to their customers,” QED Investors Co-Founder Frank Rotman says in the release. “Hello Alice has proven time and time again that they are on the leading edge of providing equitable access to capital and banking services to the small business ecosystem."

Hello Alice, which closed its series B in 2021 at $21 million, has collaborated with Mastercard prior to the series C, offering small business owners the Hello Alice Small Business Mastercard in 2022 and a free financial wellness tool, Business Health Score, last year. Mastercard also teamed up with other partners for the the Equitable Access Fund in 2023.

“With Hello Alice, we’re investing to provide support to small business owners as they look to access capital, helping to address one of the most cited business challenges they face,” Ginger Siegel, Mastercard's North America Small Business Lead, adds. “By working together to simplify access to the products and services they need when building and growing their business, we’re helping make a meaningful impact on the individuals who run their businesses, the customers they serve, and our communities and economy at large.”

While Hello Alice's founders' mission is to help small businesses, their own company was threatened by a lawsuit from America First Legal. The organization, founded by former Trump Administration adviser Stephen Miller and features a handful of other former White House officials on its board, is suing Hello Alice and its partner, Progressive Insurance. The lawsuit alleges that their program to award10 $25,000 grants to Black-owned small businesses constitutes racial discrimination. Gore calls the lawsuit frivolous in an interview on the Houston Innovators Podcast. The legal battle is ongoing.

Inspired by the lawsuit, Hello Alice launched the Elevate the American Dream, a grant program that's highlighting small businesses living out their American dreams. The first 14 grants have already been distributed, and Hello Alice plans to award more grants over the next several weeks, putting their grant funding at over $40 million.


NASA awards $30M to Houston space tech company to develop lunar rover

moon rider

Houston-based space technology company Intuitive Machines has landed a $30 million NASA contract for the initial phase of developing a rover for U.S. astronauts to traverse the moon’s surface.

Intuitive Machines is one of three companies chosen by NASA to perform preliminary work on building a lunar terrain vehicle that would enable astronauts to travel on the moon’s surface so they can conduct scientific research and prepare for human missions to Mars.

The two other companies are Golden, Colorado-based Lunar Outpost and Hawthorne, California-based Astrolab.

NASA plans to initially use the vehicle for its Artemis V lunar mission, which aims to put two astronauts on the moon. It would be the first time since the Apollo 17 mission in 1972 that astronauts would step foot on the lunar surface.

The Artemis V mission, tentatively set for 2029, will be the fifth mission under NASA’s Artemis program.

“This vehicle will greatly increase our astronauts’ ability to explore and conduct science on the lunar surface while also serving as a science platform between crewed missions,” says Vanessa Wyche, director of NASA’s Johnson Space Center in Houston.

Intuitive Machines says the $30 million NASA contract represents its entrance into human spaceflight operations for the space agency’s $4.6 billion moon rover project. The vehicle — which Intuitive Machines has dubbed the Moon Reusable Autonomous Crewed Exploration Rover (RACER) — will be based on the company’s lunar lander.

“Our global team is on a path to provide essential lunar infrastructure services to NASA in a project that would allow [us] to retain ownership of the vehicle for commercial utilization during periods of non-NASA activity over approximately 10 years of lunar surface activity,” says exploration,” says Steve Altemus, CEO of Intuitive Machines.

Intuitive Machines’ partners on the RACER project include AVL, Boeing, Michelin, and Northrop Grumman.

Intuitive Machines plans to bid on the second phase of the rover project after finishing its first-phase feasibility study. The second phase will involve developing, delivering, and operating the rover.

In February, Intuitive Machines became the first private company to land a spacecraft on the moon with no crewmembers aboard. NASA was the key customer for that mission.

Houston expert: How to avoid 'ghost hiring' while attracting top talent

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One of the latest HR terms grabbing attention today is “ghost hiring.” This is a practice where businesses post positions online, even interviewing candidates, with no intention to fill them. In fact, the role may already have been filled or it may not exist.

Usually, an applicant applies for the job, yet never hears back. However, they may be contacted by the recruiter, only to learn the offer is revoked or a recruiter ghosts them after a first-round interview.

Applicants who are scouring job sites for the ideal position can become discouraged by ghost hiring. Employers do not usually have any ill intentions of posting ghost jobs and talking with candidates. Employers may have innocently forgotten to take down the listing after filling the position.

Some employers may leave positions up to expand their talent pool. While others who are open to hiring new employees, even if they do not match the role, may practice ghost hiring when they want a pool of applicants to quickly pull from when the need arises. Finally, some employers post job roles to make it look like the company is experiencing growth.

When employers participate in ghost hiring practices, job candidates can become frustrated, hurting the employer brand and, thus, future recruiting efforts. Even with the tight labor market and employee turnover, it is best not to have an evergreen posting if there is no intention to hire respondents.

There are several ways employers can engage candidates and, likewise, build a talent pool without misleading job seekers.

Network

A recruiter at their core is a professional networker. This is a skill that many have honed through the years, and it continues to evolve through social media channels. While many recruiters lean on social media, you should not discount meeting people face-to-face. There is power in promoting your organization at professional meetings, alumni groups and civic organizations. Through these avenues, many potential candidates will elect for you to keep them in mind for future opportunities.

Employee Referrals

When recruiters want to deepen their talent pool, they cannot discount the employee referral. Simply letting employees know and clearly stating the exploratory nature of the conversation can lead to stellar results. Employees understand the organization, its culture and expectations, so they are more likely to refer the company to someone who would be a good fit and reflect highly on them.

Alternative Candidates

In recent years, organizations and recruiters are more dialed into skills-first recruiting practices. Creating job postings that emphasize the skill sets needed rather than the years of experience, specific college degree or previous job titles, can yield a crop of candidates who may be more agile and innovative than others. Fostering relationships with people who fit unique skills needed within the organization can help you develop a deeper bench of candidates.

Contingent Workforce

Part-time workers, freelancers, and independent contractors are a great way to build connections and the talent pool. These workers and their skills are known entities, plus they know the organization, which makes them valuable candidates for open roles. If their expertise is needed on a regular basis, it is easier to have open conversations about a potential expansion of their duties or offer full-time work.

Internal Talent

Human resources and recruiters need to work with managers and leadership to intimately know what kind of talent lies within their own organization. Current employees may have the strengths, skills, and capabilities to fill new positions or roles. Through conversations with employees and their managers, you can identify who can flex different skills, but even more importantly, the ambition to grow within the company.

In every instance, it is crucial for recruiters and hiring managers to be transparent in their intentions. Communicating within your network that you are always looking for great talent to fill future roles sets the tone. When communicating with candidates, whether there is a pressing job opportunity or not, be clear from the onset regarding your intentions for hire. With a transparent approach to hiring and candidate development, you will keep the employer brand intact and maintain recruiting power.

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Jaune Little is a director of recruiting services with Insperity.