This week's batch of innovators have had to be pretty creative in their industries. Courtesy photos

The ability to innovate lives in one's ability to think outside of the box — no matter the industry. This week's Houston innovators to know have had to get creative and think of new ways of doing things, from retailing to creating greeting cards.

Harvin Moore, president of Houston Exponential

Harvin Moore, who has a 20-year career in tech and innovation, has been named as president of Houston Exponential. Courtesy of HX

Harvin Moore has been a banker, an educator, an elected official, and more — but his newest title is president of Houston Exponential, which suits him just fine.

Now, under his new role, he's leading the nonprofit that's focused on connecting, promoting, and attracting within Houston's innovation ecosystem.

"There's no question that five years from now, or 10 years from now, Houston will be a very large and continually rapidly growing tech economy," Moore tells InnovationMap. "The question is just how fast it is going to get here." Read more.

Alex Kurkowski, founder of Tellinga

Alex Kurkowski wanted to tell a better story. Courtesy of Tellinga

Alex Kurkowski has a problem with traditional greeting cards.

"They're templated. They're frozen, stagnant, fixed in what they are," Kurkowski says. "They suck."

The Rice University MBA grad decided he would do something about it. He created his business, Tellinga — short for "telling a story" — to create a new avenue for people to communicate a message to their loved ones. Kurkowski has big plans for his company and the platform he's creating. Read more.

Steve Scala, executive vice president of corporate development for DiCentral

Steve Scala joined DiCentral in 2014 to focus on growing the company worldwide. Courtesy of DiCentral

Something's brewing in retail — and it's scaring the industry. Steve Scala writes in a guest column for InnovationMap that dropshipping — the process of shipping products direct from vendors to customers, cutting out warehouses and storage facilities — is only going to gain traction in the industry.

"The study found that approximately 88 percent of retailers see dropship as inevitable to long-term success," Scala writes. "According to 87 percent of those retailers surveyed also experienced an increase in revenue as a result of dropshipping. Customer service also benefitted from dropship, with 84 percent of retailers noting improvements to customer service after adopting the dropshipping fulfillment model." Read more.

A study found that approximately 88 percent of retailers see dropship as inevitable to long-term success. Pexels

Streamlining supply chain efforts can help retailers survive the changing landscape, says this Houston expert

Guest Column

It's undeniable that retail habits of consumers is changing. DiCentral, a B2Bi managed services provider, recently partnered with the Center for Supply Chain Research at Lehigh University to survey over 180 global retail and manufacturing decision-makers and identify how evolving consumer buying behaviors are driving this dramatic shift in the retail landscape. The transformational supply chain challenges retailers and manufacturers are facing today indicate a new reality for retail.

The first of its kind study titled, "Supply Chain Collaboration in Transformative Vertical Industries: Implications of Omnichannel and Dropshipping," examines the motivations, challenges, benefits, and supply chain implications of the dropshipping model through which retailers ship orders directly from vendor warehouses, thereby reducing excess inventory and warehousing costs.

The study found that approximately 88 percent of retailers see dropship as inevitable to long-term success. According to 87 percent of those retailers surveyed also experienced an increase in revenue as a result of dropshipping. Customer service also benefitted from dropship, with 84 percent of retailers noting improvements to customer service after adopting the dropshipping fulfillment model.

From the manufacturers' perspective, dropshipping can significantly improve relationships with retailers as reported by 71 percent of manufacturing respondents. As many as 66 percent of manufacturers also experienced an increase in revenue after implementation of a dropship order fulfillment capability.

Challenges for both retail and manufacturing respondents point to systems limitations as being a primary obstacle to deploying an enterprise dropship program. According to the study, 40 percent of manufacturers acknowledged system limitations as being a challenge. Retailers responded similarly, with 32 percent identifying systems (ERP, EDI, WMS, etc.) as a hindrance.

While retailers and manufacturers face similar obstacles in streamlining supply chains, the benefits to both remain clear. As businesses look to maximize revenue and enhance customer service, dropshipping is a proven advantage to achieving both goals. Decision-makers in retail and manufacturing would be prudent to explore dropshipping as a means of achieving the ROI and improved quality of customer service.

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Steve Scala is executive vice president of corporate development at Houston-based DiCentral, a growing SaaS company.

With its new German office, Houston-based DiCentral looks to grow into other European markets, such as France, Italy, and Spain. Pexels

Houston SaaS company expands in Europe following acquisition

You're up, Europe

After slowly expanding worldwide for years, a Houston-based software-as-a-service company finally has a firm footing in Europe following its acquisition of a German company.

In December, DiCentral closed its deal with a Munich-based supply chain company named Compello Germany. With that acquisition, DiCentral Europe was born. Steve Scala, executive vice president of corporate development, says the deal was made possible after the company raised $15 million from Kanye Anderson Capital Advisors LP in 2016.

"We have a large supply chain network over Asia and North America, which gave us great coverage for our clients. In Europe, however, we're dealing with different supply chains," Scala says. "We had few people on the ground in Europe even though we have clients based there as well as clients elsewhere who conduct business there. We saw the need to fill that gap."

The new German office opens doors for the company to enter other European markets, and Scala says the company is looking into France, Italy, and Spain.

Currently, DiCentral's largest offices are in Houston and Ho Chi Minh City where they employ 150 and 300 people respectively. The company, which was founded in 2000 by Chairman and CEO Thuy Mai, has about 600 employees in total, and focuses on bonding buyers and suppliers, so both sides can optimize both the physical and digital supply chain.

DiCentral offers cloud-based electronic data interchange and supply chain solutions to its clients. By using DiCentral's propriety software, its clients, which include retailers, original equipment manufacturers, suppliers and more across many industry verticals, can find solutions tailored to their business.

"Global supply chains quickly can become very complex, especially when you add web purchases or individual orders from retailers that are sent from the manufacturers but made to look like they were sent from the retailer," Scala explains.

DiCentral allows businesses to improve their visibility of the supply chain by automating fulfillments, shipping and receiving processes.

"The end result for clients, whether they are a manufacturer, retailer or a third-party involved in distribution, using our software is improving the efficiency of supply chain," Scala continues. "With our solutions, clients can ramp up their operations even when navigating incredibly complex supply chains."

As DiCentral plans its continued European expansion, the company is facing various challenges from training its new 35 employees in Munich to potential logistical and regulatory issues.

"Our primary focus in 2019 is integrating the German operations with DiCentral. There are a lot of privacy challenges in Europe with GDPR, which means we need to be smart and cautious with how to deploy data centers because of stricter data privacy rules," Scala says.

Despite the challenges, Scala expects the new acquisition to lead to large growth for the company.

"I'm excited for the future. We closed on some great business contracts last year, however, the way our business works, we don't make money until there are transactions taking place across our network," Scala says.

It can take months to fully integrate clients into the DiCentral network, but Scala looks forward to the new revenue source. New contracts with large companies will allow DiCentral to continue fueling its global growth. The company continues to grow and hire, both abroad and locally, for various positions in sales, customer support, product management and marketing.

While the business continues to grow with an eye on new market sectors and areas for expansion, the DiCentral global headquarters are still located right by NASA. As a company founded in Texas, many of its original client base is based within the state.

"Texas has been a great location for us. We have data centers here in Texas, our headquarters are in Houston, so the original infrastructure of the company is all in Texas," says Scala.


Steve Scala joined DiCentral in 2014 to focus on growing the company worldwide. Courtesy of DiCentral

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Houston quantum energy chip startup emerges from stealth with $12M round

seed funding

Houston-based Casimir has emerged from stealth with a $12 million seed round to commercialize its quantum energy chip.

The round was led by Austin-based Scout Ventures. Lavrock Ventures, Cottonwood Technology, Capital Factory, American Deep Tech, and Tim Draper of Draper Associates also participated in the round. The oversubscribed round exceeded the company’s original $8 million target, according to a news release.

Casimir’s semiconductor chips can generate power from quantum vacuum fields without the need for batteries or charging. The company plans to commercialize its first-generation MicroSparc chip by 2028.

The MicroSparc chip measures 5 millimeters by 5 millimeters and is designed to produce 1.5 volts at 25 microamps, comparable to a small rechargeable battery, without degradation and no replacement cycle.

“Casimir represents exactly the kind of breakthrough dual-use technology Scout Ventures was built to back,” Brad Harrison, founder and managing partner at Scout Ventures, said in the release. “This is based on 100 years of science and we’re finally approaching a commercial product … We’re proud to lead this round and support Casimir’s journey from applied science to deployed technology.”

Casimir says it aims to scale its technology across the ”full power spectrum,” including large-scale energy systems that can power homes, commercial infrastructures and electric vehicles.

Casimir's scientific work has been supported by DARPA-funded nanofabrication research and its technology was incubated at the Limitless Space Institute (LSI). LSI is a nonprofit that works to innovate interstellar travel and was founded by Kam Ghaffarian. Technology investor and serial entrepreneur Ghaffarian has been behind companies like X-energy, Intuitive Machines, Axiom Space and Quantum Space.

Harold “Sonny” White, founder and CEO of Casimir, believes the technology can power devices for years without replacements.

“Millions of devices will operate for years without a battery ever needing to be replaced or recharged because we have engineered a customized Casimir cavity into hardware capable of producing persistent electrical power,” White added in the release. “I spent nearly two decades at NASA studying how we power humanity’s future. That work led me to the Casimir effect and the quantum vacuum, where new tools have allowed us to build on a century of scientific knowledge and bring abundant power to the world.”

Houston-based Fervo Energy bumps up IPO target to $1.82 billion

IPO update

Houston-based geothermal power company Fervo Energy is now eyeing an IPO that would raise $1.75 billion to $1.82 billion, up from the previous target of $1.33 billion.

In paperwork filed Monday, May 11 with the U.S. Securities and Exchange Commission, Fervo says it plans to sell 70 million shares of Class A common stock at $25 to $26 per share.

In addition, Fervo expects to grant underwriters 30-day options to buy up to 8.33 million additional shares of Class A common stock. This could raise nearly $200 million.

When it announced the IPO on May 4, Fervo aimed to sell 55.56 million shares at $21 to $24 per share, which would have raised $1.17 billion to $1.33 billion. The initial valuation target was $6.5 billion.

A date for the IPO hasn’t been scheduled. Fervo’s stock will be listed on Nasdaq under the ticker symbol FRVO.

Fervo, founded in 2017, has attracted about $1.5 billion in funding from investors such as Bill Gates-founded Breakthrough Energy Ventures, Google, Mitsubishi Heavy Industries, Devon Energy (which is moving its headquarters to Houston), Tesla co-founder JB Straubel, CalSTRS, Liberty Mutual Investments, AllianceBernstein, JPMorgan, Bank of America and Sumitomo Mitsui Trust Bank.

Fervo’s marquee project is Cape Station in Beaver County, Utah, the world’s largest EGS (enhanced geothermal system) project. The first phase will deliver 100 megawatts of baseload clean power, with the second phase adding another 400 megawatts. The site can accommodate 2 gigawatts of geothermal energy. Fervo holds more than 595,000 leased acres for potential expansion.

Cape Station has secured power purchase agreements for the entire 500-megawatt capacity. Customers include Houston-based Shell Energy North America and Southern California Edison.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.