Houston-based The Now Network's last-mile logistics platform is growing its development team. Getty Images

Houston-based energy logistics software prepares to hire, raise funds as it scales up

now hiring

Many startups turn to offshore outsourcing to fuel their growth. The Now Network, a Houston-based energy tech startup, is doing just the opposite — relying on stateside in-sourcing.

The SaaS company is in the midst of building out its in-house development team, including full stack developers and UX/UI designers. This year, The Now Network plans to add another four to six developers, on top of the six who already are on board. Stacey McCroskey, the company's director of product since September 2019, leads the team.

Previously, the development team consisted of more than a dozen contract workers in Ukraine and India, says Mush Khan, president of The Now Network. Khan assumed the president's role in May 2019.

"We believe that having our own in-house team drives a sense of ownership over the product. We have to eat our own cooking, because what we build, we have to support," Khan says.

Compared with the outsourcing model, the in-house team enables the company to more quickly release higher-quality products and more quickly respond to customers' needs, he says.

"Over the years, The Now Network has seen immense growth, consistently advancing its technology framework to drive faster payments, increased driver retention, an expanded 3PL network, and increased business revenue," Sam Simon, the company's founder, chairman, and CEO, says in a release. "The addition of an in-house development team will only amplify this growth, promoting more opportunities for cross-collaboration and customer feedback, to expand upon and refine existing features."

Members of the in-house development team are working on expansion of The Now Network's last-mile logistics platform for wholesalers, third-party logistics (3PL) carriers, drivers, and users of fuel. Khan says the platform offers "complete visibility and accuracy" throughout the fuel delivery process.

Competition for tech talent in Houston industries like energy and manufacturing is ramping up as the region evolves as "a fast-paced, innovative environment," he says.

"We believe companies like ours offer an opportunity to build a product from the ground up," Khan says, "and in an environment that allows them to express themselves creatively."

In June 2019, staffing firm Robert Half Technology put Houston in fourth place for the anticipated volume of IT hiring in U.S. cities during the second half of the year.

"The technology market in Houston remains strong as more companies are investing in systems upgrades, focusing on security, and taking on digital projects," Robert Vaughn, Robert Half Technology's regional vice president in Houston, said in a release. "The candidate market remains tight, and companies that prolong the interview process or don't make competitive offers tend to have the hardest time staffing open roles."

Today, The Now Network employs 15 people, all but one of whom works in Houston. The company expects to grow its workforce to around 30 by the end of 2020, Khan says. To accommodate the larger headcount, The Now Network is moving this month from WeWork at the Galleria to a 6,000-square-foot office in the Upper Kirby neighborhood.

To help finance its growth, The Now Network will soon launch its first-ever fundraising effort. Khan says the company will seek more than $5 million in investment capital.

Founded in 2015, The Now Network strives to simplify the last mile of the "energy ecosystem," which Khan describes as "slow, opaque, and expensive." Its SaaS platform automates delivery functions in the energy supply chain, doing away with manual labor and tedious paperwork, he says.

Since early 2018, the startup has handled more than 180,000 customer transactions involving over 1.8 billion gallons of fuel.

The Now Network is a portfolio company of Simon Group Holdings, a private equity firm based in Birmingham, Michigan. One of its key areas of focus is the energy sector.

In 2017, The Now Network (previously known as FuelNow Network) entered a strategic partnership with Houston-based Motiva Enterprises LLC, a fuel refiner, distributor, and retailer owned by Saudi Refining Inc. Khan says his company is collaborating with Motiva to roll out The Now Network platform to U.S. fuel wholesalers.

"As of now, Motiva doesn't have a stake in our company," he says.

Motiva owns East Texas' 3,600-acre Port Arthur Refinery, the largest oil refinery in North America, with a daily capacity of more than 600,000 barrels. State-controlled Saudi Aramco — which went public last year in an IPO valued at $2 trillion — owns Saudi Refining.

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Houston engineers develop breakthrough device to advance spinal cord treatment

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A team of Rice University engineers has developed an implantable probe over a hundred times smaller than the width of a hair that aims to help develop better treatments for spinal cord disease and injury.

Detailed in a recent study published in Cell Reports, the probe or sensor, known as spinalNET, is used to explore how neurons in the spinal cord process sensation and control movement, according to a statement from Rice. The research was supported by the National Institutes of Health, Rice, the California-based Salk Institute for Biological Studies, and the philanthropic Mary K. Chapman Foundation based in Oklahoma.

The soft and flexible sensor was used to record neuronal activity in freely moving mice with high resolution for multiple days. Historically, tracking this level of activity has been difficult for researchers because the spinal cord and its neurons move so much during normal activity, according to the team.

“We developed a tiny sensor, spinalNET, that records the electrical activity of spinal neurons as the subject performs normal activity without any restraint,” Yu Wu, a research scientist at Rice and lead author of the study said in a statement. “Being able to extract such knowledge is a first but important step to develop cures for millions of people suffering from spinal cord diseases.”

The team says that before now the spinal cord has been considered a "black box." But the device has already helped the team uncover new findings about the body's rhythmic motor patterns, which drive walking, breathing and chewing.

Lan Luan (from left), Yu Wu, and Chong Xie are working on the breakthrough device. Photo by Jeff Fitlow/Rice University

"Some (spinal neurons) are strongly correlated with leg movement, but surprisingly, a lot of neurons have no obvious correlation with movement,” Wu said in the statement. “This indicates that the spinal circuit controlling rhythmic movement is more complicated than we thought.”

The team said they hope to explore these findings further and aim to use the technology for additional medical purposes.

“In addition to scientific insight, we believe that as the technology evolves, it has great potential as a medical device for people with spinal cord neurological disorders and injury,” Lan Luan, an associate professor of electrical and computer engineering at Rice and a corresponding author on the study, added in the statement.

Rice researchers have developed several implantable, minimally invasive devices to address health and mental health issues.

In the spring, the university announced that the United States Department of Defense had awarded a four-year, $7.8 million grant to the Texas Heart Institute and a Rice team led by co-investigator Yaxin Wang to continue to break ground on a novel left ventricular assist device (LVAD) that could be an alternative to current devices that prevent heart transplantation.

That same month, the university shared news that Professor Jacob Robinson had published findings on minimally invasive bioelectronics for treating psychiatric conditions. The 9-millimeter device can deliver precise and programmable stimulation to the brain to help treat depression, obsessive-compulsive disorder and post-traumatic stress disorder.

Houston clean hydrogen startup to pilot tech with O&G co.

stay gold

Gold H2, a Houston-based producer of clean hydrogen, is teaming up with a major U.S.-based oil and gas company as the first step in launching a 12-month series of pilot projects.

The tentative agreement with the unnamed oil and gas company kicks off the availability of the startup’s Black 2 Gold microbial technology. The technology underpins the startup’s biotech process for converting crude oil into proprietary Gold Hydrogen.

The cleantech startup plans to sign up several oil and gas companies for the pilot program. Gold H2 says it’s been in discussions with companies in North America, Latin America, India, Eastern Europe and the Middle East.

The pilot program is aimed at demonstrating how Gold H2’s technology can transform old oil wells into hydrogen-generating assets. Gold H2, a spinout of Houston-based biotech company Cemvita, says the technology is capable of producing hydrogen that’s cheaper and cleaner than ever before.

“This business model will reshape the traditional oil and gas industry landscape by further accelerating the clean energy transition and creating new economic opportunities in areas that were previously dismissed as unviable,” Gold H2 says in a news release.

The start of the Black 2 Gold demonstrations follows the recent hiring of oil and gas industry veteran Prabhdeep Singh Sekhon as CEO.

“With the proliferation of AI, growth of data centers, and a national boom in industrial manufacturing underway, affordable … carbon-free energy is more paramount than ever,” says Rayyan Islam, co-founder and general partner at venture capital firm 8090 Industries, an investor in Gold H2. “We’re investing in Gold H2, as we know they’ll play a pivotal role in unleashing a new dawn for energy abundance in partnership with the oil industry.”

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This article originally ran on EnergyCapital.

3 Houston innovators to know this week

who's who

Editor's note: Every week, I introduce you to a handful of Houston innovators to know recently making headlines with news of innovative technology, investment activity, and more. This week's batch includes an e-commerce startup founder, an industrial biologist, and a cellular scientist.

Omair Tariq, co-founder and CEO of Cart.com

Omair Tariq of Cart.com joins the Houston Innovators Podcast to share his confidence in Houston as the right place to scale his unicorn. Photo via Cart.com

Houston-based Cart.com, which operates a multichannel commerce platform, has secured $105 million in debt refinancing from investment manager BlackRock.

The debt refinancing follows a recent $25 million series C extension round, bringing Cart.com’s series C total to $85 million. The scaleup’s valuation now stands at $1.2 billion, making it one of the few $1 billion-plus “unicorns” in the Houston area.

Cart.com was co-founded by CEO Omair Tariq in October 2020. Read more.

Nádia Skorupa Parachin, vice president of industrial biotechnology at Cemvita

Nádia Skorupa Parachin joined Cemvita as vice president of industrial biotechnology. Photo courtesy of Cemvita

Houston-based biotech company Cemvita recently tapped two executives to help commercialize its sustainable fuel made from carbon waste.

Nádia Skorupa Parachin came aboard as vice president of industrial biotechnology, and Phil Garcia was promoted to vice president of commercialization.

Parachin most recently oversaw several projects at Boston-based biotech company Ginkjo Bioworks. She previously co-founded Brazilian biotech startup Integra Bioprocessos. Read more.

Han Xiao, associate professor of chemistry at Rice University

The funds were awarded to Han Xiao, a chemist at Rice University.

A Rice University chemist has landed a $2 million grant from the National Institute of Health for his work that aims to reprogram the genetic code and explore the role certain cells play in causing diseases like cancer and neurological disorders.

The funds were awarded to Han Xiao, the Norman Hackerman-Welch Young Investigator, associate professor of chemistry, from the NIH's Maximizing Investigators’ Research Award (MIRA) program, which supports medically focused laboratories. Xiao will use the five-year grant to advance his work on noncanonical amino acids.

“This innovative approach could revolutionize how we understand and control cellular functions,” Xiao said in the statement. Read more.