What can be learned from Austin-based CrowdStrike's outage? Photo via Getty Images

Airlines, banks, hospitals and other risk-averse organizations around the world chose cybersecurity company CrowdStrike to protect their computer systems from hackers and data breaches.

But all it took was one faulty CrowdStrike software update to cause global disruptions Friday that grounded flights, knocked banks and media outlets offline, and disrupted hospitals, retailers and other services.

“This is a function of the very homogenous technology that goes into the backbone of all of our IT infrastructure,” said Gregory Falco, an assistant professor of engineering at Cornell University. “What really causes this mess is that we rely on very few companies, and everybody uses the same folks, so everyone goes down at the same time.”

The trouble with the update issued by CrowdStrike and affecting computers running Microsoft's Windows operating system was not a hacking incident or cyberattack, according to CrowdStrike, which apologized and said a fix was on the way.

But it wasn't an easy fix. It required “boots on the ground” to remediate, said Gartner analyst Eric Grenier.

“The fix is working, it’s just a very manual process and there’s no magic key to unlock it,” Grenier said. “I think that is probably what companies are struggling with the most here.”

While not everyone is a client of CrowdStrike and its platform known as Falcon, it is one of the leading cybersecurity providers, particularly in transportation, healthcare, banking and other sectors that have a lot at stake in keeping their computer systems working.

“They’re usually risk-averse organizations that don’t want something that’s crazy innovative, but that can work and also cover their butts when something goes wrong. That’s what CrowdStrike is,” Falco said. “And they’re looking around at their colleagues in other sectors and saying, ‘Oh, you know, this company also uses that, so I’m gonna need them, too.’”

Worrying about the fragility of a globally connected technology ecosystem is nothing new. It's what drove fears in the 1990s of a technical glitch that could cause chaos at the turn of the millennium.

“This is basically what we were all worried about with Y2K, except it’s actually happened this time,” wrote Australian cybersecurity consultant Troy Hunt on the social platform X.

Across the world Friday, affected computers were showing the “blue screen of death” — a sign that something went wrong with Microsoft's Windows operating system.

But what's different now is “that these companies are even more entrenched,” Falco said. "We like to think that we have a lot of players available. But at the end of the day, the biggest companies use all the same stuff.”

Founded in 2011 and publicly traded since 2019, CrowdStrike describes itself in its annual report to financial regulators as having “reinvented cybersecurity for the cloud era and transformed the way cybersecurity is delivered and experienced by customers.” It emphasizes its use of artificial intelligence in helping to keep pace with adversaries. It reported having 29,000 subscribing customers at the start of the year.

The Austin, Texas-based firm is one of the more visible cybersecurity companies in the world and spends heavily on marketing, including Super Bowl ads. At cybersecurity conferences, it's known for large booths displaying massive action-figure statues representing different state-sponsored hacking groups that CrowdStrike technology promises to defend against.

CrowdStrike CEO George Kurtz is among the most highly compensated in the world, recording more than $230 million in total compensation in the last three years. Kurtz is also a driver for a CrowdStrike-sponsored car racing team.

After his initial statement about the problem was criticized for lack of contrition, Kurtz apologized in a later social media post Friday and on NBC's “Today Show.”

“We understand the gravity of the situation and are deeply sorry for the inconvenience and disruption,” he said on X.

Richard Stiennon, a cybersecurity industry analyst, said this was a historic mistake by CrowdStrike.

“This is easily the worst faux pas, technical faux pas or glitch of any security software provider ever,” said Stiennon, who has tracked the cybersecurity industry for 24 years.

While the problem is an easy technical fix, he said, it’s impact could be long-lasting for some organizations because of the hands-on work needed to fix each affected computer. “It’s really, really difficult to touch millions of machines. And people are on vacation right now, so, you know, the CEO will be coming back from his trip to the Bahamas in a couple of weeks and he won’t be able to use his computers.”

Stiennon said he did not think the outage revealed a bigger problem with the cybersecurity industry or CrowdStrike as a company.

“The markets are going to forgive them, the customers are going to forgive them, and this will blow over,” he said.

Forrester analyst Allie Mellen credited CrowdStrike for clearly telling customers what they need to do to fix the problem. But to restore trust, she said there will need to be a deeper look at what occurred and what changes can be made to prevent it from happening again.

“A lot of this is likely to come down to the testing and software development process and the work that they’ve put into testing these kinds of updates before deployment,” Mellen said. “But until we see the complete retrospective, we won’t know for sure what the failure was.”

CodeLaunch, which pairs startups with software consultants, is returning to Houston this spring. Photo via codelaunch.com

Early-stage accelerator names finalists for its second Houston cohort

ready to grow

A traveling seed-stage accelerator has announced its return to Houston and named its second cohort.

CodeLaunch, produced by Dallas-based constant and software development company Improving and presented by Ohio-based VC network Cyrannus, is returning to Houston. The company's second Houston accelerator event will be held on March 2.

Putting a fresh spin on the seed accelerator model, CodeLaunch combines a startup competition with a tech tradeshow, as well as allows for networking among attendees. Since its inception ten years ago, the touring competition has doled out over $1.4 million in services to its finalists and overall winners.

"CodeLaunch is a startup and rock-n-roll show like nothing you've ever seen before," says CodeLaunch President and Founder Jason W. Taylor in a news release.

The competition pairs six startups with six startup consulting companies. This year's finalists and mentor pairings are as follows:

  • Lake Charles, Louisiana-based GOPHR's consultant mentor is Softeq
  • Port Arthur, Texas-based DrinKicks is paired with BJSS
  • Energy360, based in Houston, has been matched with Honeycomb Software
  • Inpathy, based in Detroit and Tyler, Texas, will work with Contollo
  • Drivingo, led by a student founder from Virginia Tech, is selected to collaborate with Blue People
  • Houston-based AnyShift's consultant mentor is Improving

Houston-based Softeq is returning to the event after working with software startup Codiac.

“CodeLaunch was great. We gained customers, investors, and a lot of local notoriety. It was the best event we had all last year," says Ben Ghazi, founder of Codiac about the event.

ResQ TRX, a Houston startup that provides solutions for the logistics industry, won CodeLaunch HOU 2022. Houston-based Clutch won Judges' Choice in last year's competition.

This year, investment is also on the line. Presenting partner Cyrannus announced that all startup founders who advance to the semifinal round of CodeLaunch will be competing in a $100,000 investment challenge, as well as the $50,000 challenge for impact startups. There would be one or two winners — either a winner for each award or, if a company scores top marks in both categories, one company can take home the entire $150,000.

“Not only will (a winner) get the cash, but also be introduced to a network that will help them refine their idea and get ready for their first big fundraiser," says Lee Mosbacker, founder of Cyrannus, in a news release.

This year's CodeLaunch event will be a part of Houston Tech Rodeo, which is taking place February 27 to March 2 this year. Tech Rodeo, which announced its schedule this week, will conclude its programming with the CodeLaunch event.

"Houston Exponential could not be more excited about our partnership with CodeLaunch Houston," says Houston Exponential CEO Natara Branch in the release. "They are a fantastic ally in Houston’s efforts to serve its growing startup community and CodeLaunch is an incredible fit for the capstone of the 2022 Tech Rodeo. Finishing off Tech Rodeo with CodeLaunch's exciting atmosphere will be a highly anticipated event for the Houston innovation ecosystem after an engaging week of programming."

This Houston company created its own in-house tech infrastructure — led by Chris Quintanilla — to stay competitive within the alcohol distribution industry. Photo courtesy of Mexcor International

How this Houston-based alcohol importer, distributor uses tech to stay ahead of the curve

boozy innovation

You might say that Mexcor International, a Houston-based importer and distributor of wine, spirits, and other types of alcohol, relies on a single bottle of vodka rather than a case of vodka when it comes to its tech capabilities.

The annual tech budget for the 300-employee company, founded in 1989, falls well below $500,000. Mexcor International's annual revenue hovers around $300 million.

"We do have a decent size tech budget, but it's tiny in comparison to large distributors with multimillion-dollar tech budgets," says Chris Quintanilla, chief sales officer at Mexcor International.

The company leans on an IT director, an IT specialist, and an IT support company to handle tech needs. In other words, Mexcor International's in-house tech resources are minimal.

So, when the company's sales and administration sales team needed to step up its tech game, Quintanilla created a cloud-based software system combining customer relationship management (CRM) and enterprise resource planning (ERP) functions to churn out real-time reporting on inventory, deliveries, and other business matters. He took on the project equipped with IT knowledge he picked up online and at a three-day training session in Colorado, coupled with some simple tech tinkering.

On his own, Quintanilla has developed 46 dashboards that supply details about things such as wine and beer inventory, contacts for account managers, product catalogs, and key performance indicators (KPIs) for the sales team. About 230 employees, or roughly three-fourths of the company's workforce, can access these dashboards. Information on these dashboards can help employees answer myriad questions, such as "Which delivery trucks are arriving today?" or "What percentage of orders are being picked up tonight?"

Quintanilla says one of the key benefits of the dashboards is the ability to see how soon the company will run out of various products at its Texas, California, Florida, and Louisiana warehouses. This functionality enables the company to swiftly head off shortages. It has come in especially handy amid ongoing supply chain snags triggered by the COVID-19 pandemic, he says.

The dashboards also let Mexcor International track which customers' sales have risen or fallen compared with the same time a month or a year ago. With this information at their fingertips, salespeople can chat with customers about whether, for instance, they might like to substitute a brand of poorly selling tequila for another brand of tequila, according to Quintanilla.

In short, the innovation spearheaded by Quintanilla has helped propel Mexcor International well beyond the old days of pen and paper, photocopies, and faxes.

So, why are companies like Quintanilla's turning to in-house capabilities to push past the pen-and-paper approach?

"Companies that develop their own technology have more control over their strategic direction and can better respond to the needs of the market. This can mean a significant competitive advantage when a company develops a compulsory technology before the competition," technology and innovation strategist Evans Baiya wrote for AllBusiness.com.

In a 2020 survey by Boston Consulting Group, 46 percent of corporate executives around the world planned to invest more in their in-house tech capabilities.

"Every enterprise must re-evaluate the capabilities that it can develop in-house with the talent it has and determine which ones to procure from service providers," the consulting giant says. "By building capabilities in-house, companies can reduce the risk of their transformation projects stalling and turn to service providers in areas where they suffer from talent gaps."

At Mexcor International, Quintanilla has stepped in to fill much of the company's gap in tech talent.

Mexcor International established the new cloud-based CRM and ERP system in 2019. It replaced a clunky network-based setup hampered by unwieldy financial, sales, delivery, and routing modules.

"It was just so slow. You could not get the information you needed, and the network was always down," says Quintanilla, adding that the company's network-based system had sustained ransomware and malware attacks.

With the cloud-based system now in place, Mexcor International employees can perform an array of tasks via laptop, desktop, tablet, or smartphone, he says.

Quintanilla says in-house creation of this system aligns with Mexcor International's culture of "wearing multiple hats" to move the business forward, demanding in-house innovation on the tech front.

"If you want to see something happen, you have to grab the bull by the horns and do it yourself," he says. "We are a medium-sized company. We just hired a true IT person in the last two or three years. We don't have million-dollar budgets for big IT departments. We kind of figure it out as we go."

The lab will launch virtually first, before moving into a physical space early next year. Photo via Getty Images

Houston software company to launch innovation lab for enterprise startups

new to hou

A Houston-based global software development company has teamed up to create an innovation lab that will launch virtually before moving into a physical space early next year.

Softeq Development Corporation announced the creation of the Softeq Innovation Lab in partnership with the Massachusetts Institute of Technology's Integrated Design and Management program and Massachusetts-based Boundless Technology. The lab is directed at helping enterprise companies collaborate on the technologies of tomorrow, according to a news release.

"At the Softeq Innovation Lab, we recognize the importance of developing an incubator that goes beyond innovation theatre and are rolling up our sleeves to achieve transformative disruption in enterprise companies," says Christopher A. Howard, Softeq founder and CEO, in the release.

"The first wave of disruption was based in Silicon Valley," he continues. "The second wave of disruption is occurring in industries central to Houston's economy such as energy, health care, and financial services. With technology rewriting the playbooks for these industries, Houston is the perfect venue for our Innovation Lab to enable companies to thrive in this new age of disruption."

First up for the lab is a series of Boundless Bootcamps, which aims to connect participants to corporate disruptors, including David Rose of Warby Parker and MIT Media Lab.

"The city of Houston is at the center of a powerful convergence between industry, innovation and proven intrapreneurs," says Chuck Goldman, principal at Boundless Technology, in the release. "The Softeq Innovation Lab brings together entrepreneurs, corporations and 20X innovators who have achieved ROI of at least 20X and built billion-dollar businesses."

In addition to having access to MIT, Boundless, and Softeq's global networks, the participants will also receive an MIT IDM Certification from the nation's top engineering, design, and business program.

"I'm thrilled to bring our leadership and human-centered design program to Houston to help intrapreneurs drive breakthrough growth in leading organizations" says Matt Kressy, founding director MIT IDM, in the release.

For additional information or to find out more about how to get involved please visit the Softeq Innovation Lab's website.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

New TMC partnership aims to grow Houston’s biomanufacturing workforce

workforce partnership

Houston is a frontrunner in the race to introduce and manufacture advanced therapeutics to the medical world. A new agreement between the Texas Medical Center (TMC) and San Jacinto College (SJC) aims to speed more experts and their technologies towards the finish line.

Earlier this month, the world's largest medical center and the nation’s second-ranked community college announced their new partnership that will set students on a path towards careers not only in life sciences in general, but also in pharmaceutical and biomanufacturing specifically.

SJC already has programs in those majors—its first graduates are now joining the workforce—but working with TMC will help the college recruit new students, as well as aid in enrollment and participation. Thanks to this collaboration, SJC students will benefit from more experiential learning and be able to transition more smoothly into the next steps in their training.

“Houston is a premier global hub for life sciences and biotechnology, and the talent we need to advance therapeutic drugs, diagnostics, and cell and gene therapy is already here,” William McKeon, the TMC’s president and CEO, said in a news release. “With more companies choosing to establish their headquarters in Houston and the daily breakthroughs happening across the TMC campus, partnering with San Jacinto College is an important step toward sustaining that momentum and unlocking even greater innovation and growth through the promising talent that already exists within our state.”

The partnership is currently slated to last two years, but the institutions have the option to extend after that.

For students, their journey to becoming scientists will likely start with Biopath @ TMC, a program that introduces high school students to biomanufacturing careers and what it takes to pursue one. Since its inception two years ago, the program has worked with more than 2,000 students around Harris County.

“This partnership exemplifies San Jacinto College’s ability to design and deliver programs that align with current workforce demands while opening doors for untapped talent across the Houston region,” Brenda Hellyer, SJC chancellor, said in the release. “TMC is a key industry leader in our region, and San Jacinto College has a unique global curriculum that provides the foundation and skills required for students to succeed and graduates to thrive in meaningful careers that will contribute to the innovation and advancement of the life sciences.”

Thanks to this new collaboration, more of Houston’s biomanufacturing workforce will soon be locally grown.

Houston legacy planning platform secures $2.5M investment, adds to board

fresh funding

Houston-based Paige, a comprehensive life planning and succession software company, has secured a $2.5 million investment to expand the AI-driven tools on its platform.

The funding comes from Alabama-based 22nd State Banking Company, according to a news release. Paige says it will use the funding to expand automation, AI-driven onboarding and self-service tools, as well as add to its sales and customer success teams.

The company was originally founded by CEO Emily Cisek in 2020 as The Postage and rebranded to Paige last year. It helps users navigate and organize end-of-life planning with features like document storage and organization, password management, and funeral and last wishes planning.

“Too many families are left trying to piece together important information during some of the hardest moments of their lives,” Cisek said in the news release. “This investment allows us to accelerate the next phase of growth for Paige by improving the product and expanding support for our members, our financial institution partners and the communities they serve,”

In addition to the funding news, the company also announced that 22nd State Banking CEO and President Steve Smith will join Paige's board of directors.

“We believe banking should be grounded in relationships and built around the real needs of the people and communities we serve. Paige brings something deeply relevant to that mission," Smith added in the release. "It helps families prepare for the future in a practical and meaningful way, and it gives the banking community new pathways to support customers through important life transitions.”

Paige estimates that $124 trillion in assets will change hands through 2048. Yet about 56 percent of Americans do not have an estate plan.

Read more on the topic from Cisek in a recent op-ed here; or listen to InnovationMap's 2021 interview with her here.

Houston digital health platform Koda lands strategic investment

money moves

Houston-based advance care planning platform Koda Health has added another investor to the lineup.

The company secured a strategic investment for an undisclosed amount from UPMC Enterprises, the commercialization arm of the University of Pittsburgh Medical Center. The funding is part of Koda's oversubscribed series A funding round that closed in October, according to a release.

"UPMC Enterprises’ investment is a meaningful signal, not just to Koda, but to the broader market," Dr. Desh Mohan, chief medical officer and co-founder of Koda Health, said in the news release. "It validates that health systems are ready to invest in infrastructure that makes advance care planning work the way it should: proactively, at scale, and with the human support that these conversations require. Having UPMC Enterprises as a strategic investor puts us in a unique position to prove what's possible."

Koda has raised $14 million to date, according to a representative from the company. Its series A round was led by Evidenced, with participation from Mudita Venture Partners, Techstars and the Texas Medical Center last year. At the time, the company said the funding would allow it to scale operations and expand engineering, clinical strategy and customer success. The company described the round as a "pivotal moment," as it had secured investments from influential leaders in the healthcare and venture capital space.

Koda Health, which was born out of the TMC's Biodesign Fellowship in 2020, saw major growth last year, as well, and now supports more than 1 million patients nationwide through partnerships with Cigna Healthcare, Privia Health, Guidehealth, Sentara, UPMC and Memorial Hermann Health System.

The company integrated its end-of-life care planning platform with Dallas-based Guidehealth in April 2025 and with Epic Systems in July 2025. It also won the 2025 Houston Innovation Award in the Health Tech Business category. Read more here.