This week's roundup of Houston innovators includes Chris Howard of Softeq, Stephanie Hertzog of Sodexo, and Moody Heard of Buildforce. Courtesy photos

Editor's note: In the week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — oil and gas, tech development, and construction staffing — recently making headlines in Houston innovation.


Chris Howard, CEO of Softeq

On this week's episode of the Houston Innovators Podcast, Softeq Founder and CEO Chris Howard shares how he's focusing on supporting the Houston innovation ecosystem. Photo courtesy of Softeq

A sign of a blossoming innovation ecosystem is when experienced and successful founders turn their focus to supporting emerging startups. That's what Chris Howard, who founded his tech company over 20 years ago, is looking to do with a new innovation lab and more in the works.

"I want to give back as an entrepreneur and a Houstonian," Howard says on this week's episode of the Houston Innovators Podcast. "I really want to leverage Softeq's expertise in order to help these companies grow in the same way that we've been doing for a couple of decades now."

Howard shares more about the Softeq Innovation Lab and how COVID-19 has affected his business and technology in general on the episode. Click here to read more and stream the episode.

Stephanie Hertzog, CEO of Sodexo

Stephanie Hertzog is hoping the future workforce of her company and others within the energy industry better reflects the city's diverse populations. Photo courtesy of Sodexo

Ever since taking the helm at Houston-based Sodexo Energy Resources North America, CEO Stephanie Hertzog has been intentional with prioritizing diversifying the workforce of the company. In a Q&A with InnovationMap, she notes on how the energy industry has been known as pretty homogeneous, especially within the gender divide. But things are changing.

"And we need to all be focusing on getting more of not only diversity, but inclusion as well," she says. "It's not just about hiring a diverse group, it's about making those people feel included when they get here and having them want to stay and be a part of our industry." Read more.

Additionally this week, Hertzog expands on her call for the energy industry to diversify in a guest column for InnovationMap. Click here to read it.

Moody Heard, CEO of BuildForce

Houston-based Buildforce is developing a technology to better connect contractors and the trade professionals they employ. Photo courtesy of Buildforce

A Houston innovator is tapping into tech to disrupt a booming industry in Houston, Texas, and beyond .Buildforce is a construction staffing app that aims to more efficiently connect contractors to skilled workers in trades ranging from electrical, mechanical, and plumbing to flooring, concrete, painting, and more.

The company raised a $1.5 million pre-seed round led by Houston-based Mercury Fund and is led by CEO Moody Heard.

"Our key insight is that providing a superior service to construction employers starts with providing a superior experience for tradesmen and women," Heard says in a news release. "Talent is the greatest finite resource in construction in Texas. In order to deliver talent to our contractor partners, we've created a job placement experience that is simple, friendly, and transparent. That's something people in the construction trades aren't used to, and has helped us grow incredibly quickly over the past several months." Click here to read more.

Stephanie Hertzog, CEO of Houston-based Sodexo, shares how she's embracing diversity and innovation within the energy industry. Photo courtesy of Sodexo

Houston CEO talks augmented reality, diversity, how it will all play a role in the energy transition

Q&A

When Stephanie Hertzog first started her role as CEO of Houston-based Sodexo Energy & Resources North America in the fall of 2019, she was on the road every week visiting some of the facility management company's 100 million customers.

"I actually had a conversation with my assistant in early March, and said, 'Okay, our goal is that by April, I not be on the road every week. Let's try to get this to at least every other week,'" she recalls. Shortly after, the world changed, and by March 10 she halted all travel and was forced to lead her company to innovate in more ways than one.

"When we think about innovation, we often think about technology, but we've had to innovate so much in the last 12 months, in how we do everything," she says. "We've really asked a lot of our teams over the last year in regard to having to rethink how they do things and be innovative and adapt."

To Hertzog, it's this adaptation and innovation she's seen in the last year that will allow her industry to support an energy transition and, as she says, "preserve" beyond the pandemic and inevitable future downturns.

InnovationMap talked with Hertzog about the importance of adaptation in the energy industry, new technologies that Sodexo has implemented in that effort, and how a diverse workforce plays a role in all of it.

InnovationMap: Why is it important for the energy industry to continue to adapt and be innovative?

Stephanie Hertzog: Oftentimes, the energy industry gets viewed a bit as being old school. We, as an industry, have really embraced technology for decades now. And I really think that it's what's allowed us to continue to survive during all of the down cycles.

In today's age, where we have renewables growing their percentage of the market, and there's a lot of enhanced enthusiasm around carbon reduction efforts. And technology will be at the forefront of that energy transition. Technology is going to be a big part of how we continue to provide affordable energy for the foreseeable future.

IM: You're originally from the Houston area. How has it changed and what makes you excited for Houston's future?

SH: I'm most excited about Houston and most proud of Houston in that we've always been a very diverse and international city. I think a lot of that has been driven over the years by energy business, bringing in people from all over, but we also have a high immigrant population. And I think that diversity has really led us to be entrepreneurial. Thinking about innovation and technology, having that diversity of thought and opinion has helped us to continue to be a leader in that space over time. We've always been a large city ever since I was young, but we're continuing to grow. And we're seeing more and more people transplanting here from other parts of the country. And I think that's exciting to see us getting more diversity in our economy as well.

IM: Why is it important — from a business perspective — to have a diverse workforce?

SH: There's a lot of research on this topic. It's very clear that businesses that have more diverse leadership teams outperform those that don't, and so having diversity in the room leads people to ask different questions, to have more discussion and to have more questioning of the status quo.

IM: What has been the most impactful adaptation in your industry in recent years?

SH: It's really been embracing software technology. The mobile aspects of being able to get data on your phone has really allowed us to put in a lot of systems that have allowed us to, for example, better track tasks and make sure that things get done to optimize janitorial cleaning schedule. There's a lot of stuff that we used to do on paper at a site that we now do electronically, which allows us to compare site versus site and see not just how well can that site do, but how well is that site doing versus other sites. It's all about doing what we do really well and as efficiently as possible.

We have a recent innovation that we've been working on: augmented reality glasses that allow someone on an offshore platform, for example, to wear the glasses and someone back in Houston in an office tower to see what that person is seeing almost through their own eyes. That is an example being able to get things done faster. I don't have to physically travel someone to the platform, I can just be able to get them in real time. And so there are a lot of things like that. It opens up all new worlds.

IM: Why is augmented reality an especially useful tool in the energy industry? 

SH: We already discussed from an efficiency standpoint of being able to get the expertise on site without physically having to get out there. But another aspect of that is the safety element. We always try to keep as few people on site as possible, just because these environments inherently have some amount of safety precautions that we have to take. Some of the things are as simple as to be able to actually get out to an offshore platform, you have to have been helicopter trained. But also, Heaven forbid, something should happen on that platform you want the least amount of people out there as possible.

IM: Did the pandemic play any role in terms of expediting the adaptation of these technologies?

SH: Yes. We were looking for better ways to do anything remotely that we could. That was everything from these glasses to just straight up video conferencing. We normally do a safety walk in-person, but how can you do a safety walk remotely? So I think any opportunity, we had to try to enhance the experience of being there, but not being there — everything got escalated.

IM: In light of Women's History month, why is it important for the energy industry to focus on inclusion of women as it moves forward?

SH: I think the business case is the same as we discussed earlier: better outcomes, more success if we have diversity at all levels in the energy space. And it's really important in energy, because we've been bad at this. Particularly around the gender dynamic, if we look at the highest levels in the energy space, there's just not historically been a lot of representation of women there. We're starting to make some inroads, but we still have a long way to go. Part of it's been a pipeline issue. A lot of the leaders of energy businesses are engineers. Women are now coming out of undergraduate around 40 percent of chemical engineers, so we're getting we're getting close to having parity there – but overall engineering is still only 20 percent female. And from that first manager position and on up, there are big gaps where we lose women along the way.

We're not keeping up with the pace that we've been putting women into the business for a long time. Companies have got to make some real effort here. Certainly the year that the United States had around some of the racial divide, I think that's an important topic for us to be talking about. And we need to all be focusing on getting more of not only diversity, but inclusion as well. It's not just about hiring a diverse group, it's about making those people feel included when they get here and having them want to stay and be a part of our industry. From a Houston perspective, we continue to be a big part of the economy here. And so if we're not getting it right, then Houston's going to struggle.

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This conversation has been edited for brevity and clarity.

As Women's History Month wraps up, it's time to reflect on the enabling diversity and inclusion in the workplace as a driver of innovation. Photo via Getty Images

Houston expert: Now is the time to diversify your workforce in the name of innovation

Guest column

Pop quiz: What's the best way to introduce and nurture a culture of innovation in your organization?

  1. Give all employees a VR headset
  2. Mandate every team leader offer one new idea per quarter
  3. Add the word "innovate" to the organization's mission statement
  4. Actively recruit, hire and support a more diverse workforce

If you didn't answer D, you have some research to do. A trove of recent research shows an undeniable link between workforce diversity and innovation, not to mention better overall results. From McKinsey to the Boston Consulting Group to HBR the data keeps coming.

For instance, Deloitte found organizations with more inclusive cultures are both significantly more innovative and twice as likely to meet or exceed financial targets than their counterparts. My own company, Sodexo, commissioned a study that found gender-balanced teams contribute to better outcomes across the board, including innovation.

Beyond the hard evidence, pure common sense tells us when we open our doors to people with different perspectives and life experiences, we also welcome new ideas. Diverse teams encourage diverse thinking, new solutions and agile implementation. There's a reason that Great Place to Work calls diverse and inclusive teams "the engines of innovation."

At the same time, innovation has become essential in our current economic climate. If this past year has taught us anything, it's that we need to be nimble and ready to think differently at a moment's notice.

As we close out another Women's History Month, we are rounding out a year that has been a collective setback for women in the workplace, in particular. Millions of women have left the labor market during the global pandemic and it's unclear how many will return and what professional repercussions they will face.

This comes as our industry was already woefully lacking gender parity. According to a 2019 Catalyst study, there were fewer women in oil and gas than almost any other major industry. The group found women accounted for only 22 percent of employees, 17 percent of senior level roles and one percent of top leadership.

In other words, the pandemic has given us even more work to do — both in recruiting women and a more diverse employee base in general. We need to do so if we are to transform into the future-oriented industry our customers need us to be.

The news is not all doom and gloom, however. An eye-opening McKinsey report about our industry, "Oil and gas after COVID-19" argues that the global pandemic "will be a catalytic moment and accelerate permanent shifts in the industry's ecosystem, with new future opportunities." The authors lay out several potential avenues for successful organizations, including the ability to "create the organization of the future," by recruiting a new blend of talent that will bring innovative ideas.

This is a watershed moment to rethink how we recruit and hire. We can look more broadly at what we look for and from which fields we recruit. We can consider how different ideas and perspectives can help us forge paths toward our future.

We have the data to fuel the changes we need. We also have the data to offer us the cautionary tale of not changing. As the McKinsey report put it: "The opportunity to lead has never been better—separation between market leaders and laggards will be increasingly sharp."

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Stephanie Hertzog is the CEO of Houston-based Sodexo Energy & Resources North America.

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Biosciences startup becomes Texas' first decacorn after latest funding

A Dallas-based biosciences startup whose backers include millionaire investors from Austin and Dallas has reached decacorn status — a valuation of at least $10 billion — after hauling in a series C funding round of $200 million, the company announced this month. Colossal Biosciences is reportedly the first Texas startup to rise to the decacorn level.

Colossal, which specializes in genetic engineering technology designed to bring back or protect various species, received the $200 million from TWG Global, an investment conglomerate led by billionaire investors Mark Walter and Thomas Tull. Walter is part owner of Major League Baseball’s Los Angeles Dodgers, and Tull is part owner of the NFL’s Pittsburgh Steelers.

Among the projects Colossal is tackling is the resurrection of three extinct animals — the dodo bird, Tasmanian tiger and woolly mammoth — through the use of DNA and genomics.

The latest round of funding values Colossal at $10.2 billion. Since launching in 2021, the startup has raised $435 million in venture capital.

In addition to Walter and Tull, Colossal’s investors include prominent video game developer Richard Garriott of Austin and private equity veteran Victor Vescov of Dallas. The two millionaires are known for their exploits as undersea explorers and tourist astronauts.

Aside from Colossal’s ties to Dallas and Austin, the startup has a Houston connection.

The company teamed up with Baylor College of Medicine researcher Paul Ling to develop a vaccine for elephant endotheliotropic herpesvirus (EEHV), the deadliest disease among young elephants. In partnership with the Houston Zoo, Ling’s lab at the Baylor College of Medicine has set up a research program that focuses on diagnosing and treating EEHV, and on coming up with a vaccine to protect elephants against the disease. Ling and the BCMe are members of the North American EEHV Advisory Group.

Colossal operates research labs Dallas, Boston and Melbourne, Australia.

“Colossal is the leading company working at the intersection of AI, computational biology, and genetic engineering for both de-extinction and species preservation,” Walter, CEO of TWG Globa, said in a news release. “Colossal has assembled a world-class team that has already driven, in a short period of time, significant technology innovations and impact in advancing conservation, which is a core value of TWG Global.”

Well-known genetics researcher George Church, co-founder of Colossal, calls the startup “a revolutionary genetics company making science fiction into science fact.”

“We are creating the technology to build de-extinction science and scale conservation biology,” he added, “particularly for endangered and at-risk species.”

Houston investment firm names tech exec as new partner

new hire

Houston tech executive Robert Kester has joined Houston-based Veriten, an energy-focused research, investment and strategy firm, as technology and innovation partner.

Kester most recently served as chief technology officer for emissions solutions at Honeywell Process Solutions, where he worked for five years. Honeywell International acquired Houston-based oil and gas technology company Rebellion Photonics, where Kester was co-founder and CEO, in 2019.

Honeywell Process Solutions shares offices in Houston with the global headquarters of Honeywell Performance Materials and Technologies. Honeywell, a Fortune 100 conglomerate, employs more than 850 people in Houston.

“We are thrilled to welcome Robert to the Veriten team,” founder and CEO Maynard Holt said in a statement, “and are confident that his technical expertise and skills will make a big contribution to Veriten’s partner and investor community. He will [oversee] every aspect of what we do, with the use case for AI in energy high on the 2025 priority list.”

Kester earned a doctoral degree in bioengineering from Rice University, a master’s degree in optical sciences from the University of Arizona and a bachelor’s degree in laser optical engineering technology from the Oregon Institute of Technology. He holds 25 patents and has more than 25 patents pending.

Veriten celebrated its third anniversary on January 10, the day that the hiring of Kester was announced. The startup launched with seven employees.

“With the addition of Dr. Kester, we are a 26-person team and are as enthusiastic as ever about improving the energy dialogue and researching the future paths for energy,” Holt added.

Kester spoke on the Houston Innovators Podcast in 2021. Listen here

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