Houston digital studio closes $2M seed round with local investment

money moves

Umbrage, a Houston-based developer of enterprise software, has closed its seed funding. Photo via umbrage.com

A software startup in Houston has leveled up thanks to new funding. Houston-based digital studio Umbrage has reportedly raised $2 million.

Founded in 2019 by Will Womble, Umbrage creates custom software solutions for companies within digitally transforming industries, such as oil and gas, healthcare, and supply chain.

"Umbrage is a new way that enterprises can overcome the inherent challenges of building and scaling digital solutions," Womble, who also serves as CEO, says in a news release. "Umbrage partners with internal technology teams to create scalable products that directly impact business' success. And by training our clients to effectively scale and improve these custom-built solutions, we're setting up our customers for long-term, sustainable success."

The round was led by Rice Investment Group — which, according to the release, has been a client of Umbrage as well as an investor.

"We've utilized Umbrage's custom solutions in our portfolio companies with great success and we can attest to the customer value proposition," says Danny Rice, a Partner of Rice Investment Group. "We're thrilled to support Umbrage's growth and enable forward-thinking businesses to unlock the business potential that digital solutions from Umbrage can deliver."

According to the release, Umbrage was able to be cash-flow-positive within weeks of starting and has already grown its team to nearly 40 employees. Clients include Cold Bore Technologies, Sumitomo Corp., and cpap.com.

"Umbrage brings a product-first mindset that continues to influence our organization far beyond what is expected from a software vendor," says Edwin Suarez, vice president and chief digital officer at SC Global Tubular Solutions. "Our team has been challenged with digital business models from ideation through product development and partnering with Umbrage helps us focus on long-term strategy while ensuring delivery on our immediate needs."

DocJuris has raised its first round of venture funding to grow its team to keep up with demand for its legal software platform. Image courtesy of DocJuris

Houston B2B software company raises $3.2M in seed funding to grow team and product

money moves

A Houston-based software-as-a-service company that is revolutionizing the contract process has closed a round of funding this week.

DocJuris, founded in 2018, raised $3.2 million in seed funding led by New York-based RTP Seed with additional support from Houston-based Seed Round Capital, California-based Watertower Ventures, Maryland-based Crossbeam, and Remote First Capital.

It's the startup's first round of venture funding and Henal Patel, CEO of DocJuris, says he was looking for funds as well as support from investors who had experience with software and could open doors to new clients for the legal software.

"Our platform is designed to empower legal, sales, and procurement teams and corporations to negotiate and close contracts with greater speed and precision," Patel says. "The underlying mission is to solve the last-mile of contracting."

Henal Patel is CEO of DocJuris. Photo courtesy of DocJuris

The need for funding came at a time of growth, Patel says, as DocJuris was seeing more and more opportunities in light of the pandemic.

"As work has gone more remote, there's a greater need for teams to be able to collaborate on their contracts — instead of sending Word documents over email," he tells InnovationMap.

Within the contract optimization space, Patel says he sees a lot of opportunities for enhancing the experience for lawyers, business owners, contractors, and anyone who has to spend any amount of time on legal papers.

"One of our visions is to — in addition to providing the tactical tools we do to day — revisualize the way that people read contracts," Patel says. "Our platform enables the ability to improve the lives of the people who have to stare at contracts all day."

DocJuris is already hiring for a few positions across sales, customer service, and marketing, and Patel says he will continue to grow his remote team locally.

"We've been remote since before it was cool," Patel says, adding that all but one of his employees is based in Houston. "But we've been locally concentrated in Houston. We're planning on growing our team here in Houston, but keeping the team remote. We believe in Houston."
A Houston startup has closed a $7.5 million round of funding with mostly local investment. Photo courtesy of WizeHire

Houston software startup closes $7.5M series A led by two Houston-area​ VC firms

money moves

A Houston B2B software startup has closed a new round of funding led by two Houston venture capital firms.

WizeHire, a tech-enabled hiring solution for small businesses, 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 company was co-founded by Sid Upadhyay, Nick Carneiro, and Jay Niblick.

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, as well as to hire more staff and expand its partner program.

"We're a small business helping small businesses with a team of people looking out for you," says Upadhyay, who serves the company as CEO, in the release. "Hiring is complex and personal. Our customers see what we do not just as software; they see us as a trusted advisor."

WizeHire's client base includes more than 7,000 businesses, and the company recorded $4.7 million in run rate in 2020, according to the press release, and it was the company's highest year-over-year growth.

"WizeHire is focused on a future where small business owners have easy access to the elevated hiring experience large corporations already have," says Amplo's Sam Garcia, who will join WizeHire's board, in the release. "They're not just creating a better alternative to current recruiting solutions; they're giving employers more peace of mind about the hiring process so they can get back to building their business."

Last year, during the height of the COVID-19 pandemic, the company launched a free version of its product and partnered with lenders to help increase accessibility for the Paycheck Protection Program. Now, in a new year, unemployment continues to soar and more than 10 million people remained out of work. As small businesses continue to recover and plan to rehire, WizeHire provides a service that is hyper-personalized for different industries.

"We are thrilled to support WizeHire's opportunity to define talent acquisition for small businesses," says Heath Butler, managing director at Mercury, who will also join WizeHire's board. "By systematically helping hiring managers align company values, behavioral competencies, technical skills and industry requirements to identify the best candidate, WizeHire is enabling their clients to maximize productivity, reduce turnover cost and increase customer loyalty."
This energy tech startup is using tech to change the game within the exploration and production industry. Photo via Getty Images

Houston-based startup makes a splash with cloud technology for E&P in oil sector

big computing

A Houston area environmental and energy tech company offers a new pay-as-you-go SaaS application that uses chemistry, physics, artificial intelligence, and cloud technology to build simulation platforms for major exploration and production companies.

AquaNRG Consulting's new technology has already been used by major independent E&P companies, helping to increase energy production and optimization. With new products like aiRock™, it uses cloud-based technology to simulate the physical and chemical processes in natural and human-made porous media driven by data.

The company, founded in 2017 by Babak Shafei, a Ph.D. in Earth and Environmental Sciences, uses data chemistry-physics in a new scientific methodology that uses data-driven methods including machine learning to complement and enhance theoretical modeling on reactive transport modeling (RTM) principles.

"We have been working on the product while also thinking of new ways to provide services needed in the energy industry for a number of years," says Shafei.

Babak Shafei founded Houston-based AquaNRG. Photo courtesy of AquaNRG

AquaNRG has been awarded three prestigious Small Business Innovation Research grants totaling $1.4 million from the US Department of Energy and National Science Foundation.

Shafei says that his team of in the research lab continues to develop and improve the set of techniques that can optimize the oil and gas industry. The technology offers a number of solutions in the geology area, including geochemistry or petrophysical calculations, or even in the environmental area for biogeochemistry and remediation calculations.

"Our technology is oriented to big data and big computing," says Shafei. "The platform is armed machine learning and artificial intelligence that uses the chemistry-physics methodology while using a cloud-based application that is very popular and essential for the energy sector."

Shafei says that during the ongoing coronavirus crisis, the digitization of the energy industry has only increased, and helped AquaNRG grow their brand. They plan to use this upward push to their advantage, by expanding their business and thinking well into the future.

"Our team of researchers is focused on our product and our offerings," says Shafei. "There's a lot of exciting things on our mind, including different verticals in terms of new hiring and new facilities, we're looking forward to rolling forward with that."

Parents, coaches, recruiters — they all use sports footage differently. Houston-based VarsityHype is using tech to help them do that better. Photo via varsityhype.com

Houston SaaS company launches to enhance analytics for amateur sports video footage

sports tech

Something about youth sports produces unforgettable memories, but to be able to share them requires a little help. That's where Houston-based VarsityHype comes in.

Fueled by the tagline "capture the moment," the robust and affordable software-as-a-service, cloud-based solution empowers all users to create, interact, communicate, share and analyze their sports video content that matters most in exciting and meaningful ways.

CEO and founder of VarsityHype, Jorge Ortiz, previously founded a video production company, VYPE Media. Through this work, he realized people could be doing so much more with this footage.

"Last year, we covered and filmed or photographed over 13,000 games and through that, this idea for VarsityHype was born," says CEO Jorge Ortiz. "When we delivered footage for a lot of these organizations, we found that most platforms out there are not specifically tailored to sports, and those that are, are extremely convoluted, hard to use and super expensive."

To combat those systemic and costly roadblocks to the delivery of video footage, the analytics platform was launched as a tool for coaches, athletes, families and organizations, whether they're a league, team, middle school, high school, private, or public school, to be able to create their own private ecosystem centered around video.

Now is the perfect time to be a startup in the youth sports market, which is valued at $15.5 billion in the United States. Not surprisingly, video technology is a huge and growing component of that market.

"I've been in the youth space, tech space, youth, and tech space and the media space for the last four years of my career," says Ortiz. "My first company that I started, GameDay Films, was a filming company that basically democratized youth and high school sports films across the state of Texas and Oklahoma. Now, with VarstiyHype, users can upload their videos into a fluid system that allows every single user to tailor their experience to what they need."

That's apropos, because somewhere, someplace, especially in Texas, there is always a must-see youth football play that will blow everyone's mind in real time. But if it's not documented on video, no one not there to see it firsthand will believe it.

"If I'm a parent, I'm only interested in the memorabilia component of this piece of software," says Ortiz. "So now mom and dad can go in and create highlights of little Johnny's best plays to share with grandma and grandpa and invite their whole family to participate."

Users can create profiles and upload videos. Photo via varsityhype.com

Likewise, athletes themselves can go in and create their profile, update all their stats and create highlights from their workout footage, practice footage and game footage in order to promote themselves and possibly get recruited to the next level.

For coaches, there is an extensive tray of analytical tools that allow them to do what John Madden used to do on Monday Night Football, which is write on the actual footage to aggregate stats, look at heat maps and basically do an analytical performance review.

"From a league, school and team perspective, users can go in and organize the entire infrastructure for that organization from the platform," says Ortiz. "For example, a league can go in and create every single division, including non-athletic divisions like the color guard, band and drumline, etc.

"The application is very nimble and fluid to be able to provide whatever the user needs for a specific instance."

Depending on what the user needs, the platform allows them to create from a variety of templates to build out an entire infrastructure for all levels of competition.

All footage is owned by the users and once something is created on the servers, it will remain there indefinitely, allowing for access to the system even after an extended absence.

The system also connects to all social media platforms with one click of a button.

"You'll be able to share in real time when you're at a game and have the ability to check in," says Ortiz. "When someone shows up to a scheduled game, all that information is geo-targeted and time stamped, and you'll be able to build out a storyboard with all the pictures and videos collected."

As the platform that facilitates all video footage, VarsityHype makes it extremely simple for users to upload and manipulate film they've captured.

"Once the footage is up in the system, creating a highlight is very simple," says Ortiz. "Users can cut up and create footage, such as a game recap. We are the delivery mechanism, so to that extent we also have a partnership with a company here in Houston and across the country in certain different areas that go out and do the filming themselves."

For such an advanced platform, VarsityHype has a simple pricing model.

The first is an annual recurring revenue, which allows organizations, schools, league and teams to purchase a six- or 12-month subscription. The second is the individual plan, which is open to anyone for a monthly fee.

"Our ultimate goal in the next year is to be able to hit scale locally (Houston and Texas), with football being the backbone but then hitting on what we call 'passion pockets' or uniquely played sports that a lot of people don't participate in but have an incredibly passionate following like fencing. Our yearly goal is to have 100,000 plus athletes on the website.

"And from there, we want to scale it quick enough to start to layer in our next step which is a machine learning video component and our AI backend infrastructure that's already built out that allows coaches to break down footage and analyze opponents' scout footage to give them a better game plan."
In the golden age of software companies, here's what SaaS entrepreneurs need to focus on to thrive. Getty Images

Local investor shares how Houston SaaS companies can stay afloat amid the pandemic

guest column

The COVID pandemic has created a macro environment that is similar to that of the 1918 Spanish Flu and the 2008 downturn and B2B software-as-a-service companies, like Salesforce, found the 2008 downturn an advantageous environment for cheap revenue growth — I've discussed this in a previous column. Now, I'd like to explore how B2B SaaS founders can position their businesses to capture this opportunity and better prepare themselves for the $400 billion of private equity looking for IT investments.

A prolonged recession due to the global response to COVID-19 provides opportunities for smart founders. Talent and partnerships from non-tech industries are likely to be much easier to access in a recessionary environment. Widespread adoption of technology is likely to result in a much more open and fruitful sales environment. And robust exit opportunities mean that this over performance will be rewarded.

So, how should smart founders operate given this opportunity? Here are a few implications that are congruent with our research.

Know your sales performance data

Many companies forsook effective KPI management while growing. Now is the time to home in on metrics so that you can discern the payoff of different tactics. Knowing sales performance metrics will help founders deploy capital wisely. Good quality and frequent data will also help you assess whether this thesis is working out for your firm.

Get whatever funding you can — and fast

In 2008, funding dropped by 20 percent, valuations by 20 to 25 percent and check sizes by 35 percent, and the current environment could be more drastic. This is paradoxical given the incredible opportunity for B2B SaaS right now, but it is in line with the human urge to run from risk. Despite claiming to be risk-seeking and long-term focused, most venture firms will pull back in this environment. Get what you can and be flexible on valuation. A smart founder who sees the opportunity can overcome additional dilution now.

Hire expert sales talent

The urge to cut back on salaries and freeze pay is high right now. Don't make that mistake, especially not in sales. There will be many firms that make this mistake, giving you the opportunity to hire expert sales talent. Pay them at the top of market, give them uncapped commission plans, and capture the growth opportunity.

Create a survival plan and set limits

This growth opportunity might not materialize. Fortunately for most B2B SaaS, there is operational flexibility built into the cost model. You can cut back on aggressive sales growth and pull expenses within your recurring revenue. Once you have a cash floor in mind and a downside plan of what you will do if either 1) you get to your cash floor or 2) the sales metrics are not proving attractive, you are safe to charge ahead. Armed with compelling acquisition data and a stable customer base, it would be easy to find additional capital.

Prepare for inflation in you customer contracts

While most B2B SaaS investors love long term contracts, the unprecedented level of fiscal and monetary support in the wake of a global shutdown will likely lead to above average levels of inflation. Current inflation expectations are muted (measured by the spread on the 10 year TIPS and the 10 year treasury). Inflation may not take off, but it is wise to prepare for it and include annual increases on multiyear contracts or a CPI price adjustment each year.

Be nice

Most companies are beating up on their vendors right now, if for no reason other than this is 'what you do during a downturn.' It is worth exploring what your vendors can do for you, but this should be a partnership driven discussion. Invite your vendor in and explore how to reach a win-win during this time. Communicate often and clearly and try to their point of view. Larger companies have programs in place to help where smaller ones might not have as much flexibility. This downturn will pass, but how you treat people will have consequences.

Build flexibility into your growth plan

This environment is a great opportunity to add flexibility and optionality into your cost profile. Leveraging flexible development resources from a firm like Golden Section Technology can get you expert talent and execution with month-to-month flexibility. This will help you scale down if your survival plan kicks in, but it will also help you ensure the product keeps up with a successful sales push.

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Dougal Cameron is director of Houston-based Golden Section Venture Capital.
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Houston startup raises $25M, biz plan competition opens apps, and more local innovation news

Short stories

We're on the other side of the hill that is Houston's summer, but the Bayou City's still hot in terms of innovation news, and there might be some headlines you may have missed.

In this roundup of short stories within Houston startups and tech, a Houston venture capital fund has made its latest investment, a hydrogen startup has raised fresh funding, accelerators open apps, and more.

Houston hydrogen startup closes $25M series B

This hydrogen company has fresh funding. Photo via utility.global

Utility Global, a Houston-based sustainable hydrogen company, has closed its series B round of funding to the tune of $25 million, Axios reports.

Houston-based private equity firm Ara Partners led the round. Other participating investors included: Samsung Ventures, NOVA, and Aramco.

Utility Global, founded in 2018, has developed a clean hydrogen solution. The proprietary tech — called the eXERO Technology Platform — includes a zero electricity process that converts sustainable waste streams into high-purity hydrogen. Additionally, the company developed its H2Gen Product Line that delivers customers reliable, low carbon, and high purity hydrogen, which offers unparalleled feedstock flexibility and highly competitive economics.

"Leveraging our industry-first eXERO™ Process, Utility Global is expanding into numerous industrial sectors," reads the company's website. "Whether it's next-gen fueling, green chemicals, or sustainable steel, Utility Global's products can meet your needs. Our ultra-high-purity hydrogen is also ideal for the electronics, food, and glass industries. In the steel industry, our waste-to-hydrogen offering converts waste-gases into pure hydrogen, enabling decarbonization of the steel making process.

Houston female-focused VC fund leads round of fintech company

The Artemis Fund — led by Diana Murakhovskaya, Leslie Goldman, and Stephanie Campbell — has announced its latest investment. Courtesy photos

Houston-based Artemis Fund — a women-led, female-focused venture capital fund, has released information on its latest investment. The firm announced it has led the seed funding round for Los Angeles-based Payverse, a payment processor focusing on enabling global commerce via emerging technologies.

The round also saw participation from Alpha Ascent Ventures, Frank Mastrangelo, Mary Wieler, and Jonathan Palmer. Hunton Andrews Kurth LLP represented Artemis in the deal.

“The Artemis Fund invests in phenomenal female talent modernizing and diversifying wealth. Payverse is poised to transform the payments industry by making it easier and more cost-effective for businesses and consumers to transact globally," says Stephanie Campbell, general partner at The Artemis Fund, in a news release. "We are proud to lead the company’s seed round which includes other top FinTech experts and industry leaders."

Houston public service professional accelerator opens applications for its second cohort

HTXelerator is gearing up for its second cohort. Photo via HoustonTX.gov

With its mission to identify and prepare future-focused leaders for public service, specifically boards, commissions, and city council, HTXelerator, a nonprofit that launched last fall, has opened applications for the second cohort. The three-month program trains class members on the nuts and bolts of city government and ends with a competition known as The Pitch, which enables each participant to put forward a policy platform for a hypothetical race.

“The Houston region continues to grow and subsequently so does the need for public leadership to reflect the city’s dynamic diversity," says Renee Cross, senior director at the University of Houston's Hobby School of Public Affairs, in a news release. "HTXelerator will allow people with an interest in public service to learn from experts in government, non-profit organizations, academia and the private sector. Whether pursuing a leadership position or running for office, HTXelerator graduates will be ahead of the game.”

Applications are due by August 22, and the cohort members will be announced by August 29. There is no fee to apply, but the program costs $250 per participant. Scholarships are available for those that need assistance. The program kicks off with a weekend retreat September 10 and 11 and ends with The Pitch competition on December 7.

Houston startup partners with pet tech giant

Wag, Robinhood, and DonateStock have teamed up on a new initiative. Photo by Jason Briscoe on Unsplash

Houston-based DonateStock, a fintech platform that easily enables stock-based donations, has been adopted by Wag, a mobile-first marketplace for pet services. The company, which also struck a deal with Robinhood. Through these partnerships, the company has launched its Wag! Community Shares Program, a new method of charitable giving for the community of pet caregivers and for domestic pet nonprofit organizations, according to a news release.

Through its SPAC, CHW Acquisition Corp., Wag! will reserve up to 300,000 shares of common stock for the program, to be arranged through and administered by Robinhood. The company goes into more details — including information on how to participate — in the release.

“We are excited to play a key role in this ground-breaking initiative to use common stock to support domestic pet nonprofits at scale,” says Steve Latham, CEO and co-founder of DonateStock, in the release. “Our mission is to democratize charitable stock gifting. By allocating stock to more than 500 pet nonprofits, Wag! is expanding the definition of what that means.”

Annual business competition lifts off

Houston business competition opens applications

Small businesses in Houston can apply for the annual Liftoff Houston competition. Photo via liftoffhouston.smapply.org

The city of Houston's annual business plan competition has kicked off. Liftoff Houston is an entrepreneurial initiative aimed at empowering Houston entrepreneurs mentorship and business support and education.The program's sponsor, Capital One Bank, provides cash prizes totaling $30,000.

To be eligible for the startup program, the applicant:

  • Must be in the start-up phase of your business, which means you either must have a business idea or have a business in operation for less than one year
  • Must have revenue of less than $10,000
  • Must live within the city of Houston limits. Also, if you have a business location, it must be within the city of Houston limits.

Participants can also apply for the 2022 Liftoff Houston Educational Pathway. There are no eligibility requirements for that program, which will support small businesses and provide access to workshops and the final competition event.

There will be three award categories: product, service, and innovation.

  • $10,000 – Awarded for top “Product” Based Business Plan (Retail, resale, merchandise, etc.)
  • $10,000 – Awarded for top “Service” Based Business Plan (Food, labor, consulting, etc.)
  • $10,000 – Awarded for top “Innovation” Based Business Plan (Software, Hardware, inventions, new market businesses, etc.)

The competition will open applications online on July 27 and close August 19. The full schedule is online.

Houston robotics company announces partnership with Shell

subsea agreement

A Houston tech company that has developed subsea and surface robotic services using autonomy software has announced an agreement with Shell.

The partnership will provide technology from Nauticus Robotics Inc. to Shell in order to enhance and optimize subsea integrity data collection via the company's robotic platforms, according to a news release. Nauticus has two robotic vessels — fully electric subsea robot, Aquanaut, which is deployed from Nauticus’ small surface vessel, and Hydronaut, which is used to transport, recharge, and communicate with Aquanaut, among other tasks.

This collaboration comes following the completion of an initial feasibility study for the phase-gated project. The next step is this operational qualification phase, per the release, which will focus on remote operations of the robotics. The collaboration is targeting the preliminary work required for an offshore pilot project.

“Working with a leading company such as Shell marks an exciting milestone for Nauticus, and this collaboration further validates the superior capabilities and extensive use cases of our robots across the energy sector,” says Todd Newell, senior vice president of business development at Nauticus, in the release. “Implementing our supervised autonomous method – one that has proven more robust and dynamic than most of its kind – is expected to provide our partner and future customers more than 50 percent cost savings compared to today’s methods of operation.”

A robotics-as-a-service company, Nauticus's technology — a mix of hardware and software — optimizes and automates subsea data collection for its partners, like Shell.

“An exciting aspect of this project is the opportunity to combine the strengths of advanced inspection tooling with the advanced marine robotic capabilities developed by Nauticus Robotics,” says Shell's Deepwater Robotics Engineer Ross Doak in the release. “This project aims to fundamentally improve how we collect subsea facility data, through the combination of ‘AUV native’ tooling design, supervised autonomy, and recent improvements in remote communications.”

Founded in 2014 as Houston Mechatronics by Nicolaus Radford, the company rebranded to Nauticus in 2021. Earlier this year, the company announced a partnership with Wood, a Houston-based energy company.

You shouldn't be just trusting your gut when hiring, says this Houston expert

guest column

If your startup has gotten to the point of being able to hire in new team members – congratulations! Your hard work and innovative ideas have been recognized, and you are now able to bring in others to help achieve your vision. While you may have specific ideas about the types of individuals you want on your team, interviewing candidates is not an easy feat, and deserves the same amount of strategy and organization you have dedicated to other critical company decisions. It can be tempting to rely on gut instinct when interviewing, but the science suggests there is a better way.

Organizations, regardless of company size or tenure, most commonly conduct unstructured interviews — those in which applicants meet with a bundle of organizational stakeholders and are asked a variety of questions deemed valuable for that interviewer. Questions typically cover topics such as interest in the role, experience in the field, specifics about their application, or anything else intended to develop rapport with the candidate. Interviewers may even utilize brainteaser questions intended to put applicants on the spot or try to gauge their ability to think on their feet.

Despite the fact that interviewers often feel they are a great judge of candidates during these interviews, interviewers actually obtain little usable information from them. Unstructured interviews limit the ability to gather specific, competency-based data on each applicant, create difficulty in comparing candidates along the same dimensions, and do not ensure that rating forms, if they exist at all, are being used in the same way among interviewers. The literature supports these limitations, showing that unstructured interviews can lead interviewers to focus on irrelevant information and increase susceptibility to biases, are highly unreliable are poor predictors of job performance, and can actually hurt predictive accuracy compared to not even interviewing at all. And those brainteaser questions? After years of studying their effectiveness, even Google has admitted they are worthless at predicting future job performance.

The alternative then is to adopt a structured interview. Structured interviews have four key characteristics:The first is that all questions are created prior to the interview, and are based upon a thorough job analysis — a rigorous, multi-method competency modeling process to help organizations identify key competencies required for success in the role. These data are used to develop role-specific interview questions and rating forms. Structured interviews also require that all candidates are asked the exact same questions, and in the same order to provide an equitable opportunity for applicants and reduce any primacy, recency, or contrast effects. Finally, structured interviews require that interviewers are trained not only on how to conduct interviews to maximize utility and minimize bias, but that they are also trained to use the competency rating forms in the same way.

As a result of this structure, these types of interviews have a strong evidence-base behind them. They demonstrate higher levels of reliability between raters, are better able to predict later job performance, and minimize opportunities for racial and gender bias to emerge. Importantly, structured interviews are also more efficient. Studies have shown that it would take three to four unstructured interviews to reach the same levels of accuracy as just one structured interview conducted by one interview. In summary, the structure and standardization embedded within structured interviews is important from the validity, reliability, fairness, and practicality perspectives. For all of these reasons, structured interviews meet best practice and legal standards for a high-stakes assessment method.

When building the team for your startup, it is imperative that you can accurately assess all job candidates and their alignment with your company’s goals, vision, and needs. Informal conversations are unlikely to help achieve this aim. Despite how great a judge of character you think you are, the data are clear — structured interviews are the most efficient and effective way to evaluate candidates for your positions.

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Aimee Gardner is the co-founder of SurgWise, a tech-enabled consulting firm for hiring surgeons, and associate dean at Baylor College of Medicine.

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