How this Houston-based studio is tackling billion-dollar problems with internal innovation

Q&A

Anu Puvvada, KPMG Studio leader, shares how her team is advancing software solutions while navigating hype cycles and solving billion-dollar-problems. Photo courtesy of KPMG

In 2021, KPMG, a New York-based global audit, accounting, and advisory service provider, formed a new entity to play in the innovation space. The Houston-based team finds innovative software that benefit KPMG's clients across industries.

"We're really focused on transformative businesses that we can offer our clients in the next three to five years to solve fairly large problems," Anu Puvvada, KPMG Studio leader, tells InnovationMap.

Now, almost two years later, KPMG Studio has spun out its first company, AI-based security startup Cranium, which has raised $7 million in a seed round led by SYN Ventures with support from KPMG.

Established to advance internal innovation, KPMG Studio's technologies don't always get spun out into startups like Cranium, but with support of the team, the early-stage ideas receive guidance from the company's resources with the potential to be rolled into KPMG's suite of services for its clients.

In an interview with InnovationMap, Puvvada shares more about the program, the Cranium spin out, and why she's passionate about leading this initiative from Houston.

InnovationMap: Tell me about KPMG Studio's structure and your overall goal with the program.

Anu Puvvada: I like to think about it more around framing. We frame the studio around three pillars: incubate, accelerate and amplify. We take in a lot of ideas that come from the business and from our clients and we incubate and see which of them are really high growth solving like a very large problem across verticals and horizontals. When I say a big problem — it's got to be a $1 billion-plus problem. With Cranium, we saw some very early indicators, like a rise in AI adoption amongst our clients. We saw that AI was in this spot where it was going to hit an exponential growth marker. We also saw a rise in cyber attacks. All of that plus conversations with clients made us realize that there's there's something big brewing here.

We're looking at a ton of ideas, and then parsing out maybe 10 that we create into the next Cranium. And then in accelerate, we're finding early adopters and we're growing the idea, building it, raising venture capital for the idea if we decide to spin it out.

IM: Seems like a mutually beneficial relationship between KPMG and these innovators, right?

AP: I would say it's good for KPMG because it allows us to innovate differently and innovate with agility. My group actually operates as a startup within a large organization. And then we create this ecosystem around startups inside KPMG, so when it exits, it's got the basis to run on its own. That's important for us because it gives us agility, it lets us really capitalize on our brand. It's not just what it brings us, but also what it brings our clients.

There's a big competitive advantage to innovating inside KPMG. These innovators get to work inside our walls protected by the infrastructure of KPMG. They, they get a technology team to help them build the idea. And they get to use their brand of KPMG, use our marketing engine, our comms engine, like everything that's behind us. A startup outside, it doesn't get any of that. So, it almost like accelerates them into market when the spin out happens. We use the differentiators and the competitive advantage of KPMG in order to amplify the story of that startup and their value proposition in the market.

IM: So there are two paths for these technologies, right?

AP: We either have what we call spin ins, which means it's created and spins into the business or we have spin outs, which is what Cranium is. We classify spin outs into its own startup or a sale of an asset. And then for the spin in, we would license to our clients under the mothership of KPMG.

IM: Is the studio operating completely in Houston?

AP: We source our ideas from all over nationally. I'm in Houston and a lot of my support team is actually in Houston as well. And I work with a lot of the Houston ecosystem around innovation. I really see Houston as a big future market. We are at the center of climate and ESG, the space economy, and medicine. Those are three big like curves that are going to be hitting in the next five years. So, it is integral for studio to be integrated into that ecosystem to position KPMG for the future.

IM: What's your vision for the studio?

AP: I definitely see us taking in more ideas into studio to build internally for our pioneers, which is what we call our innovators — Jonathan Dambrot, who is the founder of Cranium, he's the pioneer. We'll definitely be doing more Craniums that spin out of the firm. And we have a number that are spinning into the firm already.

I also see us evolving to bring in external startups into the studio so we can also give them the entire ecosystem a way to be lifted up and to shepherd each other into the future.

It's really important that anything that we invest in and we work on is staying measured through these hype cycles that are happening. We need to make sure that these ideas are grounded in the problem that's being solved in an adaptable way and that there's a strong market need for it. That's something that the studio really spends a lot of time doing in the beginning, which kind of helps mitigate some of these hype cycles for us and our clients.

When you think about innovation as a whole, it's mired with risk and uncertainty. You never know if something's going to work or not. And part of what we have to do with any idea that we're building in the studio or anything that our clients are doing around innovation, we have to do as much as we can to mitigate that risk and uncertainty. And that's kind of what KPMG's wheelhouse is.

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This conversation has been edited for brevity and clarity.

Houston-based GoCo.io has raised fresh funding and launched the latest version of its platform. Courtesy of GoCo

Houston SaaS company raises $15M series B, announces latest release

money moves

A Houston startup that is optimizing human resource operations for small businesses has raised fresh funding from an Austin-based venture capital investor.

GoCo.io raised $15 million in September in a funding round led by ATX Venture Partners. Founded in 2015, the company has raised $27.5 million to date, including its $7 million series A in 2019.

The fresh funding will be used to continue expanding on the company's software services operations and upgrades to its product, which is is modernizing HR, benefits, and payroll.

“We believe that GoCo is the company best positioned to provide HR departments at SMBs with the most flexible employee management software,” says Chris Shonk, general partner at ATX Venture Partners, in a news release. “In a crowded marketplace, GoCo clearly rises to the top with its ease-of-use, flexibility and unparalleled customization.

"We’re excited to be a part of GoCo’s journey, and we look forward to supporting their continued innovation as they solve new and existing challenges HR departments face,” he continues.

Last month, the company launched its latest version of the platform, which included new features, enhanced user experience, and increased integrations. Over the past two years, the company has doubled its team to keep up with its customer growth and product development.

“GoCo is the trusted HR software SMBs rely on and we’re thrilled to reach an exciting funding milestone,” says Nir Leibovich, CEO of GoCo, in the release. “This new investment will enable us to provide additional leap-frog HR technology solutions that ensure every organization’s success by eliminating manual HR tasks. SMBs are facing significant challenges right now and GoCo has grown rapidly because we are able to not only meet but exceed HR departments’ needs and expectations.

"GoCo looks forward to expanding upon providing an outstanding customer experience through this new phase of growth as we launch our newest value-added product this fall,” he continues.

After working with thousands of interns, Allie Danziger of Ampersand Professionals says she's now got a product to upskill and train new hires for employers. Photo courtesy of Ampersand

Houston startup rolls out B2B program for onboarding new hires

job training

After seeing success with her internship training and matchmaking platform, Allie Danziger, founder and CEO of Ampersand Professionals, has expanded the concept to include a new hire training service that allows employers to better optimize the onboarding process and have a well-trained new staff member from day one.

In just over a year, Ampersand has worked with over 7,000 professionals through its original concept of upskilling and matching young professionals to internship programs. A few months ago, Danziger and her team expanded to include career development training for students first entering the workforce with the City of Houston's Hire Houston Youth program. Danziger says it was developing out the platform for this program that proved there was a need for this type of training.

"While we have focused on matching professionals with businesses for paid internships, we recognized a further gap with employers that have their own recruiting/talent acquisition teams, or just their own preferred way of bringing on entry-level talent, and didn’t have a need for our matching platform," Danziger tells InnovationMap. "But, they recognized the benefit of our proven training platform that pre-vets and de-risks their hires, and still wanted access to the training for their own hires."

The new program has evolved from training interns to new hires, so parts of the program that focuses on interviewing or applying for a job have been removed. Instead, the 8.5 hours of training focuses on networking, best practices for working with a manager and team, performance reviews, common software training, and more.

Danziger says usually new hires need the most experienced mentor or manager, but they don't usually get that support — especially when it comes to businesses that don't have their own built-out mentorship or training program.

"Ampersand’s new training product fills that gap — it gives employers of any size any easy solution to provide basic job readiness training to employees, access to our team of dedicated coaches, and a detailed report at the end of their training summarizing how their new hire did in the training and any trends recognized and tips for managing this employee based on what the platform uncovered," she says. "Businesses can also sign up for additional coaching sessions and customize training materials, as an add-on if interested."

The program costs the employer $100 per new employee, and checkout online takes less than a minute. Through both this program and the original internship program, Ampersand is constantly evolving its training content.

"These professionals are going through the same training experience that we have proven out over the last year, and we are constantly adding to based on data we see in the user experience," Danziger says.

Danziger recently joined the Houston Innovators Podcast discuss some of the benchmarks she's met with Ampersand, as well as the importance of investing in Gen Z hires. Listen to that episode below.


Kristen Phillips, director of Golden Section Studios, and Brooke Waupsh, founding CEO of Swoovy — the program's inaugural startup in residence — join the Houston Innovators Podcast to discuss how they are collaborating on a new B2B volunteer platform. Photos courtesy

New Houston startup development program to help launch corporate volunteer software

HOUSTON INNOVATORS PODCAST EPISODE 88

Brooke Waupsh wanted to change the way people volunteered and help increase access to volunteers for nonprofits. So, she launched Swoovy, a dating app that connected singles who wanted to do some good on their first dates. Now, the Austin-based company is looking to expand to connect corporates with community service opportunities.

As Swoovy works on this new B2B SaaS platform, it's tapped a new partner to help support its endeavors. Golden Section Studios has launched to focus on advancing and supporting early-stage software companies like Swoovy, which is its inaugural startup in residence.

"We had discussions around our vision for Swoovy and the momentum behind the business we'd had in the early stages in Austin and looking for strategic growth partners, investors, and resources," Waupsh says on this week's episode of the Houston Innovators Podcast. "We had an instant relationship that we developed with the Studios as they were looking to launch this program."

Waupsh says that in addition to the financial support that comes with the arrangement — GSS plans to contribute up to $500,000 in its member companies — the Studios will offer Swoovy the chance to grow and scale, without having to hire a huge team right out of the gate.

"What's unique about the Studios for us is that as a startup and a small team, we have the bandwidth and a higher capacity to move faster on all cylinders — sales, marketing, technology — without having to staff up a team of 20," Waupsh says.

Kristen Phillips, director of Golden Section Studios, says that for years, Golden Section Technology — and its accompanying venture arm — has worked to develop SaaS technology and has created a large network of experts and mentors — all of whom will be made available to each of GSS's future member companies like Swoovy.

Additionally, Phillips says her team has a lot of lessons learned to share with the companies they will support.

"When you're dealing with early-stage companies, a lot of it just boils down to product-market fit and making sure you're able to develop a technology that's scalable that works with your customers as you scale," Phillips says on the podcast. "It sounds simple, but it's not easily mastered."

Startups also looking for this sort of guidance can learn more online and even apply to the program. In the meantime, GSS and Swoovy alike are focusing on the new technology that can really be a gamechanger for both corporates looking to provide volunteer opportunities as well as nonprofits with a huge need for workers.

"We're just excited to have the SaaS B2B platform coming out with Golden Section Studios and expand on empowering more people through businesses to be able to have access to a tool like this," Waupsh says.

Waupsh and Phillips share more about the their partnership and other major SaaS challenges on the episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.


Here's what Houston tech is making a difference locally amid the pandemic. Photo via Getty Images

How technology helped Houston fight against the pandemic

guest column

The entire world came to a standstill when the COVID-19 pandemic came knocking at the door, and Houston was no different than the rest. Businesses got shut down, people were losing jobs left and right, the medical infrastructure was wheezing from the huge patient-influx, and whatnot.

However, the Space City managed to weather the storm thanks to its firm resolve and technological interventions from Houston-based businesses and several other players. But that doesn't mean we are out of the woods yet.

The silver lining, however, is that we now know the threat can be mitigated with the help of technologies at our disposal. In this article, we'll discuss how technology has facilitated the fight against the pandemic. Some of the local businesses from Houston also had a significant role to play in providing an arsenal for this war, and we'll be discussing their contribution as well. So let's get started:

Remote healthcare assistance with smart data collection and management

The biggest challenge at the beginning of the pandemic was to provide proper care to those exposed to the virus without putting the lives of frontline workers in danger. On top of that, hospitals also had to make sure that patients suffering from other illnesses do not come into contact with the virus.

With the number of patients rising exponentially, the medical infrastructure could've never been able to cope up if it were not for telemedicine. It's a combination of remote and data technologies that allow healthcare workers to assist and treat patients without going in their physical proximity.

Houston's Medical Informatics Corp. did some exceptional work in making remote healthcare a feasible option for medical institutions. Their solution aims at collecting accurate and comprehensive data that'll further allow physicians to provide better care to the patients. While the luxury of social distancing is among the most significant benefits of this solution, there are several other benefits in the long run.

Since MIC's solution focuses on collecting quality data from all the possible data points, the information can also help identify any significant trends in how the virus is affecting the patients. Artificial intelligence and machine learning seem like the perfect allies to bolster MIC's solution further.

The tech also allows for patients to get quality consultation from experts located in other geographical locations. Hospitals can also leverage such an infrastructure to scale up and down with ease by quickly bringing in more remote caregivers in case of a spike in patients' numbers.

Telemedicine has been brilliant in helping the world deal with the coronavirus pandemic and paved the way for a revamped healthcare infrastructure in the future. The one in which affordable healthcare is a norm and physical distances are not an issue anymore.

Drones and robots for sanitization and upkeep

Once the lockdown restrictions were slowly uplifted, businesses needed to be more cautious about sanitizing the facilities and ensure there was no reason forcing them to close the shop again. The challenge turned out to be bigger for larger facilities as they can't simply deploy a large workforce to take care of it. It would be impossible to follow social distancing norms under such circumstances.

Many stadiums in Houston concluded that employing drones for the job is the way to go, and they couldn't have been more correct. Texas Medical Technology used 'SaniDrones' to spray disinfectants over large facilities and equipment. These drones are pretty much like what is used for agricultural fields and carry large amounts of spraying material at a time to get the job done.

The company also has an army of various other robots that can help businesses abide by pandemic norms. They have one that automatically puts protective coverings on the visitor's shoes to help prevent outside elements from entering the facility. Then they also have a robot that can take orders from customers in restaurants. It can show them 3-D menus and expertly ask customers what they'd like to order. They also offer SaniGate, which disinfect visitors before entering the premises, thus curbing the spread of the virus.

Airobotics is another Houston-based company coming up with technologically advanced solutions for businesses to deal with the pandemic. They provide drones to industrial players, such as oil and gas companies, to monitor and inspect the facility. The drones collect information critical to such plants' smooth functioning and prevent the analysts from going around and touching surfaces on the plant.

The pandemic made us realize that we can't always rely on human workers to care for the fieldwork. Drones and robots provide a suitable alternative to such jobs, and as these solutions get more commonplace, we can also expect them to get more affordable.

Bringing the economy back to life by keeping the virus out of the ecosystem

The economic slowdown brought by the coronavirus is unlike what most of us could even comprehend. With small businesses taking the biggest hit and a good fraction of them shutting down forever, it's necessary for the remaining ones free from the clutches of the pandemic.

And one of the better ways to do that is by minimizing the virus's spread at places where people frequent the most. One of the primary reasons for the coronavirus to be so transmissible is because of how it can travel through seemingly healthy carriers. It might cause a mild fever in some, but that usually doesn't keep people from getting out.

DataVox, a Houston based tech company, provides thermal scanners to make sure possibly infected humans stay away from the virus. The thermal scanners provided by them only check for the temperature and don't affect the privacy of those being scanned. It's a seemingly simple but effective way to deal with such a dangerous element.

Another positive news in this context is that researchers at the University of Houston have designed an air filter capable of filtering out the coronavirus to a great deal of effectiveness. Once commercially available, this can be installed in closed facilities and ensure the virus doesn't enter even through the vents.

There is no doubt that leveraging technology is the way to go forward despite how the situation unfolds. Houston is now implementing smart city solutions with the same thing in mind, and we should also be following their lead.

With a workforce of skilled software developers in Houston, and the city's rich background in technology, the adoption of tech measures should not turn out to be a tough deal. And Houston-based firms coming up with advanced solutions is only a good sign for the city.

Let's hope we'll be seeing more of these in the future, and more Houston businesses will help the city and the world fight this pandemic.

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Colin Simpson is project manager at BlueKite Apps, which recently started its software development services in Houston.

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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Rice University's edtech company receives $90M to lead NSF research hub

major collaboration

An educational technology company based out of Rice University has received $90 million to create and lead a research and development hub for inclusive learning and education research. It's the largest research award in the history of the university.

OpenStax received the grant funding from the U.S. National Science Foundation for a five-year project create the R&D hub called SafeInsights, which "will enable extensive, long-term research on the predictors of effective learning while protecting student privacy," reads a news release from Rice. It's the NSF's largest single investment commitment to national sale education R&D infrastructure.

“We are thrilled to announce an investment of $90 million in SafeInsights, marking a significant step forward in our commitment to advancing scientific research in STEM education,” NSF Director Sethuraman Panchanathan says in the release. “There is an urgent need for research-informed strategies capable of transforming educational systems, empowering our nation’s workforce and propelling discoveries in the science of learning.

"By investing in cutting-edge infrastructure and fostering collaboration among researchers and educators, we are paving the way for transformative discoveries and equitable opportunities for learners across the nation.”

SafeInsights is funded through NSF’s Mid-scale Research Infrastructure-2 (Mid-scale RI-2) program and will act as a central hub for 80 partners and collaborating institutions.

“SafeInsights represents a pivotal moment for Rice University and a testament to our nation’s commitment to educational research,” Rice President Reginald DesRoches adds. “It will accelerate student learning through studies that result in more innovative, evidence-based tools and practices.”

Richard Baraniuk, who founded OpenStax and is a Rice professor, will lead SafeInsights. He says he hopes the initiative will allow progress to be made for students learning in various contexts.

“Learning is complex," Baraniuk says in the release. "Research can tackle this complexity and help get the right tools into the hands of educators and students, but to do so, we need reliable information on how students learn. Just as progress in health care research sparked stunning advances in personalized medicine, we need similar precision in education to support all students, particularly those from underrepresented and low-income backgrounds.”

2 Houston startups selected by US military for geothermal projects

hot new recruits

Two clean energy companies in Houston have been recruited for geothermal projects at U.S. military installations.

Fervo Energy is exploring the potential for a geothermal energy system at Naval Air Station Fallon in Nevada.

Meanwhile, Sage Geosystems is working on an exploratory geothermal project for the Army’s Fort Bliss post in Texas. The Bliss project is the third U.S. Department of Defense geothermal initiative in the Lone Star State.

“Energy resilience for the U.S. military is essential in an increasingly digital and electric world, and we are pleased to help the U.S. Army and [the Defense Innovation Unit] to support energy resilience at Fort Bliss,” Cindy Taff, CEO of Sage, says in a news release.

A spokeswoman for Fervo declined to comment.

Andy Sabin, director of the Navy’s Geothermal Program Office, says in a military news release that previous geothermal exploration efforts indicate the Fallon facility “is ideally suited for enhanced geothermal systems to be deployed onsite.”

As for the Fort Bliss project, Michael Jones, a project director in the Army Office of Energy Initiatives, says it’ll combine geothermal technology with innovations from the oil and gas sector.

“This initiative adds to the momentum of Texas as a leader in the ‘geothermal anywhere’ revolution, leveraging the robust oil and gas industry profile in the state,” says Ken Wisian, associate director of the Environmental Division at the U.S. Bureau of Economic Geology.

The Department of Defense kicked off its geothermal initiative in September 2023. Specifically, the Army, Navy, and Defense Innovation Unit launched four exploratory geothermal projects at three U.S. military installations.

One of the three installations is the Air Force’s Joint Base San Antonio. Canada-based geothermal company Eavor is leading the San Antonio project.

Another geothermal company, Atlanta-based Teverra, was tapped for an exploratory geothermal project at the Army’s Fort Wainwright in Alaska. Teverra maintains an office in Houston.

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This article originally ran on EnergyCapital.

Houston investor calls for all angels to move the ecosystem forward

houston innovators podcast episode 233

One of the biggest components of a well-functioning startup ecosystem is inarguably access to capital, and Mitra Miller is dedicated to enhancing education around investment and growing Houston's investor base.

As vice president and board member of the Houston Angel Network, the oldest angel network in Texas and one of the most active angel networks in the country, Miller strives to provide guidance to new and emerging angel investors as well as founders seeking to raise money from them.

"Most founders have no idea or understanding of how investors think — we are not an ATM," Miller says on the Houston Innovators Podcast. "We are really partners you are getting married to for the next 5, 8, 10 years — sometimes longer. We need to bring your allies in every sense of the word."



HAN, a nonprofit, provides a unique opportunity for its members, as Miller explains. The group consists of around 100 individuals from all business backgrounds, so evaluating companies together brings more than just a wealth of capital — but also a wealth of knowledge.

"What HAN provides is access to investments," Miller says, adding that members have the benefit in evaluating companies together with people from different backgrounds. "Inside a group like HAN, we have extraordinary expertise."

In addition to educating both founders and investors in the process, Miller has dedicated herself to providing opportunities for students in low-income parts of Houston to learn about the startup world. Eight years ago, she founded Eagle Investors, an organization that provides a year-long program that culminates in a group of students participating as judges for the Rice Business Plan Competition.

"They spend a year learning about innovation, entrepreneurship, and investing by meeting local investors, entrepreneurs, and service providers. They go around Houston to get to visit and ... experience all of the ecosystem," Miller says.

At RBPC, the cohort of high school students evaluate the pitches and select a company to provide a $5,000 prize.

Miller herself has been a judge at RBPC for 20 years now, and she's had a front row seat for watching Houston develop as an ecosystem. She's seen the city make real progress, but has one major call to action.

"The piece that I am most aware of that I would like to see grow is activating more accredited investors who are interested in this asset class of early-stage companies and plugging in," Miller says. "They can also invest their time and knowledge to help companies in our region grow and scale."

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