Photos: Houston innovation leaders weigh in on cybersecurity, tech, and more at inaugural event

total knock out

The Digital Fight Club made its Houston debut on November 20 at White Oak Music Hall. Emily Jaschke/InnovationMap

What do you get when you cross the information of an innovation panel with the ferocity of a boxing match? A verbal sprawling among innovation leaders that can only be known as the Digital Fight Club.

Houston's DFC came about with the help of Accenture, which had been a partner at the Dallas events, and InnovationMap, who teamed up as presenting sponsors for the event. DFC's founder, Michael Pratt, came up with the idea for Digital Fight Club as a way to liven up technology-focused events and networking opportunities.

The setup of the event is five fights, 10 fighters, and five judges. Each fighter has just a couple minutes to take their stand before the event moves on.

"This is Digital Fight Club," says Pratt, CEO of the company. "You get subject matter experts, and serious founders and CEOs on the stage and make them make their case. You learn something, it's a lot of fun, and it's a lot better than a panel."

The hour of fighting is coupled with a VIP event ahead of the showdown and an after party where further networking can continue on. At Houston's VIP event, InnovationMap got to check in with partners, fighters, and referees about how they thought the event was going to pan out. Check out the VIP event video here.

The panel of referees included GabriellaRowe, CEO of Station Houston; DeniseHamilton, CEO of Watch Her Work; TimKopra, partner at Blue Bear Capital; LanceBlack, Director at TMCx; and BarbaraBurger, president of Chevron Technology Ventures.

The refs asked two questions per fight, and were able to vote on the winners of each round — as was the audience through an interactive web-based application. The break down of the fights, topics, and winners are as follows:

Fight #1: Future Workforce of Robotics/AI. Matt Hager, CEO of Poetic Systems, vs Pablo Marin, senior AI Leader, Microsoft. Hager took the win with 77 percent of the vote.
Fight #2: Whose responsibility is cybersecurity. Ted Gutierrez, CEO of SecurityGate vs Tara Khanna, managing director and Security Lead at Accenture. Khanna won this round, snagging 66 percent of the votes.
Fight #3: Oil & Gas Industry and the Environment. Michael Szafron - commercial adviser for Cemvita Factory, vs Steven Taylor, co-founder of AR for Everyone. Szafron received 76 percent of the voites, securing the win.
Fight #4: Digital in our personal lives. Grace Rodriguez, CEO of ImpactHub, vs Javier Fadul, chief innovation officer at HTX Labs. Rodriguez won with the largest margin of the night — 85 percent.
Fight #5: Future of Primary Care Geetinder Goyal, CEO of First Primary Care, vs Nick Desai, chief medical information officer at Houston Methodist. Goyal received 72 percent of the votes to take home the win.

The fights were heated, and some of the fighters had knockout quotes, from Hager's "AI is mostly bullshit" to Khanna's "Compliance doesn't mean you're secure." For more of the knockout quotes, click here.

The fight is on

Emily Jaschke/InnovationMap

Mike Pratt, who hosted the event, founded the Digital Fight Club in 2016.

With Houston having the fastest growing veteran population in the country, the innovation ecosystem has plenty of veterans turned entrepreneurs. Here are five to know today. Courtesy photos

5 Houston entrepreneurs to know this Veterans Day

American heroes

Over a quarter of a million United States military veterans call Houston home, and that number is growing.

"Houston has the second largest and fastest growing veteran population in the country," says Reda Hicks, a Houston entrepreneur and military spouse herself. "That's a very significant chunk of our city to share an affinity, and it's not something Houston has talked about."

For its large veteran population, Houston was selected in January 2018 as the third location to set up a chapter of Bunker Labs, an acceleration and incubation organization for military-affiliated entrepreneurs.

"Our whole goal is to help empower military-affiliated people to start and grow businesses," says Hicks, who is one of the Houston leads for the program, a lawyer, and the founder of GotSpot Inc.

The program provides resources for veterans, military spouses, or anyone whose lives were affected by a family member in the military. Bunker Labs provides a digital platform for early-stage ideas called Launch Lab that's used by hundreds annually, and also has face-to-face programming through its Veterans in Business program hosted through WeWork.

"It can be the case that veterans can feel siloed, and it's wonderful to have those people around you who can really understand you, but for businesses to grow, they have to really understand the ecosystem they live in," Hicks says.

In honor of Veterans Day, here are a few Houston veteran entrepreneurs to know.

Dyan Gibbens, founder and CEO of Trumbull Unmanned

Dyan Gibbons

Dyan Gibbons translated her Air Force experience with unmanned missiles into a drone services company. Courtesy of Alice

Dyan Gibbons found her dream career in the United States Air Force Academy. She served as engineering acquisitions officer managing stealth nuclear cruise missiles, and even went on to supported Air Force One and Global Hawk UAS engineering and logistics. After her years of service, she transitioned into the reserves, when she discovered she was ineligible to serve again. She went back to the drawing board to recreate herself — this time, as an entrepreneur.

She went into a doctorate program — she already had her MBA — and was close to finishing up when her drone startup took flight. Trumbull Unmanned provides drone services to the energy sector for various purposes. With her experience as a pilot and managing unmanned missiles, she knew the demand for drones was only growing — and, being from Texas, she knew what industry to focus on.

"I wanted to start a company that uses unmanned systems or drones to improve safety and improve the environment and support energy," Gibbons tells InnovationMap in a previous interview.

Nicole Baldwin, chief visionary officer and founder of Biao Skincare

Nicole Baldwin

Photo via toryburchfoundation.org

Before founding her tech-enabled, all-natural skincare line, Biao, Nicole Baldwin served in the Army Civil Affairs Units and was deployed to Bagram, Afghanistan. In honor of Veterans Day, she shared on Facebook an image of her with young girls outside the compound she lived in.

"I often tell people not to thank me for my service, because I don't feel like I should be thanked for doing something I genuinely wanted to do," she writes in the post. "I am grateful every moment of my life knowing that I did all the things in and out of uniform that was felt from the heart."

Baldwin's company, which uses a skin-scanning technology has taken off, and she's participated in Houston's Bunker Labs programming, and she has also been a Tory Burch fellow and appeared on Shark Tank.

Brett Rosenberg, founder of Semper Fi Systems

Photo via LinkedIn.com

Brett Rosenberg spent a few years in the U.S. Air Force before he took his experience from national security to a different kind of security.

Rosenberg's startup is another one utilizing the resources of Houston's Bunker Labs. Semper Fi Systems takes information security experts' knowledge and machine learning solutions to optimize cybersecurity and avoid regulatory financial exclusion.

Nathan Wilkes, CEO of Guidon Holdings

Photo via LinkedIn.com

After four years in the U.S. Army based in Georgia, Nathan Wilkes enrolled in business school at Texas A&M University. It was during the program when he founded Guidon Holdings, a Cypress-based aggregates company that — through screening, washing, separating, clarifying, and much more — can turn a natural resource that is considered waste into something of value.

Wilkes is also a West Point Academy graduate and a member of the 2019 Bunker Labs Houston cohort.

Tim Kopra, partner at Blue Bear Capital

An U.S. Army vet, Tim Kopra spent over 244 days in space, and now he's using his tech background to invest in emerging energy companies. Courtesy of Tim Kopra

Before he spent a career total of 244 days in space, Tim Kopra first served his country in the United States Army. Nowadays, he serves the Houston innovation ecosystem as an investor and adviser to startups and entrepreneurs in the energy tech industry.

As a partner at venture fund Blue Bear Capital, Kopra uses his experience in the Army and in space to do figure out if entrepreneurs have what it takes to go the distance and if their technology is worth investing in.

"On face value, it may sound like an odd match, taking someone with a tech and operational background and putting them in venture, but quite frankly it feels very familiar to me because my career has really been focused on working on complex technology and operations with very small teams," tells InnovationMap in a previous interview. "It's not just a theoretical understanding of the technology, but understanding how to use the technology and how it works."

Houston celebrated 50 years since the Apollo moon landing on July 20. Here are some startups that are going to be a part of the next 50 years of space tech in Houston. Photo via NASA.gov

5 startups keeping Houston known as the Space City

space tech

This month, for the most part, has been looking back on the history Houston has as the Space City in honor of the 50th anniversary of the moon landing on July 20. While it's great to recognize the men and women who made this city the major player in space exploration that it is, there are still entrepreneurs today with space applications and experience that represent the future of the Space City.

From space tech to former NASA expert-founded companies, here are five companies keeping Houston's rep as the Space City.

Cemvita Factory

Cemvita Factory

Courtesy of Cemvita Factory

Carbon dioxide poses a problem for two major Houston-related industries: Oil and gas and Space. Cemvita Factory, which has a technology that can convert CO2 into other chemicals, has the potential to revolutionize both industries. The Houston startup is growing and Moji Karimi, who founded the company with his sister, Tara Karimi, says 2019 is all about execution.

"We're in Houston, and we have a technology that is from biotech and have applications in the space industry and the energy industry," Karimi says. "There would not have been any better place for us in the country than Houston."

Click here to read more about Cemvita Factory.

Re:3D

Courtesy of re:3D

Two NASA colleagues hung up their metaphorical space space suits to start a 3D-printing company. Six years later, re:3D had grown large enough to warrant a new, swankier space — just down the street from the Johnson Space Center.

The company makes an affordable and customizable 3D printer, called the Gigabot, and has clients across industries in over 50 countries. Recently, re:3D introduced sustainable options, including printing using plastic waste. The 7,000-square-foot space allows for anyone in the community to learn about the 3D printing process, tour the facility, attend social events or workshops, or even buy a printer or some of the company's merchandise.

Click here to read more about re:3D.

Cognitive Space

Pexels

Satellites are getting smaller and easier to launch, which has causing a significant growth in these devices entering earth's atmosphere. Former NASA specialist Guy de Carufel — through his company Cognitive Space — created a much-needed solution to managing satellites using cloud-based AI technology.

"By next year we will have major contracts, and growing our team to 15 to 20 people. We'll have a commercial product by then and servicing some commercial players," de Carufel says on his company's growth plan. "Five years from now, we'll probably be in many different verticals, spawning from what we have now to really expand and apply our systems to as many applications as possible."

Click here to learn more about Cognitive Space.

Zibrio

Pexels

Balance is extremely important for humans. Being off balanced can be an indicator of a bigger health issue or a warning sign not to attempt something dangerous. During her postdoctoral work, Katharine Forth and her colleagues at NASA developed a technology to help track balance for astronauts. They designed a compact tool that was a game changer.

"The machines typically used for balance measurement can be as large as a telephone booth, so we invented a new way to measure postural control using a much smaller mechanism that fit inside a moon boot," Forth says.

Forth evolved her technology to create a commercial product that allows for users to track their own balance for her Houston-based company, Zibrio. The startup has grown since its founding in 2015 and just this month worked with the 13,700 athletes at the National Senior Games. Zibrio measured the balance of the seniors aged 50 to 103 in order to make sure they were ready and healthy enough to compete without risking injury.

Click here to read more about Zibrio.

Blue Bear Capital

Courtesy of Tim Kopra

Tim Kopra spent over 244 days in space, and now he's using his tech background to invest in emerging energy companies with his Houston-based investment firm, Blue Bear Capital.

"On face value, it may sound like an odd match, taking someone with a tech and operational background and putting them in venture, but quite frankly it feels very familiar to me because my career has really been focused on working on complex technology and operations with very small teams," Kopra tells InnovationMap in a previous interview. "It's not just a theoretical understanding of the technology, but understanding how to use the technology and how it works."

Blue Bear Capital focuses on cutting-edge technology that has the potential to make waves in the oil and gas industry.

Click here to read more about Blue Bear Capital.

Houston is celebrating 50 years since the Apollo moon landing. Here are somethings you can expect to see in Houston during Space City Month. Photo via NASA.gov

Here's what you should look out for in Houston during Space City Month

The eagle has landed

Fifty years ago, NASA sent a crew of astronauts to the moon and back while a team controlled the mission from the Johnson Space Center in Houston.

In honor of this history-making experience, the Space City is playing host to Space City Month this July, and it's a time to recognize the science and sacrifice it took to put man on the moon, as well as look forward to the future of NASA and space exploration.

Restored Apollo 11 mission control center

Photo via NASA.gov

Ever wonder what it was like to be in the room where it happened — where Neil Armstrong radioed in to give his famous, "One small step for man, one giant leap for mankind" statement? Now you can.

Space Center Houston has restored the mission control center where dozens of professionals kept watch and records over the astronauts making their harrowing journey. The exhibit just opened, and visitors can sign up for free tickets.

The restoration has been years in the making. Retired mission control experts contributed to the exhibit and the efforts were even funded by a Kickstarter campaign that raised over $500,000.

Special NASA programming

The video and audio coverage were an incredible component for the Apollo missions to deliver to an earthly audience. Now, celebrating 50 years, NASA's bringing back the special programming.

From noon to 2 pm on July 19, the organization will broadcast live from NASA's newly-restored Apollo mission control room at Johnson Space Center in Houston, along with a couple other historic locations like the Kennedy Space Center in Florida, the Marshall Space Flight Center in Huntsville, Alabama, the Smithsonian National Air, and the Space Museum in Washington.

Watch the show on something that wasn't available in 1969: The internet. More specifically, find the stream on the NASA Live page.

InnovationMap interviews with space innovators

Tim Kopra

Tim Kopra spent over 244 days in space, and now he's using his tech background to invest in emerging energy companies. Courtesy of Tim Kopra

Much like we did for Pride Month, our Featured Innovator section — where we run weekly innovator interviews — will be taken over by a special series. Four different interviews with four different space innovators will be published on Wednesdays for the rest of the month.

Can't wait until Wednesday? Check out this interview we did with an astronaut turned venture capital investor, Tim Kopra. He spent a career total of 244 days in space before re-entering earth's orbit and civilian life. As different as his career is now compared to life in space, he actually sees a similarity.

"On face value, it may sound like an odd match, taking someone with a tech and operational background and putting them in venture, but quite frankly it feels very familiar to me because my career has really been focused on working on complex technology and operations with very small teams," Kopra tells InnovationMap in the article. "It's not just a theoretical understanding of the technology, but understanding how to use the technology and how it works."

From a former astronaut to growing software company leaders, here are three innovators to know. Courtesy photos

3 Houston innovators to know this week

Who's Who

This week's set of innovators to know are familiar with pivoting careers. All three had successful careers — from energy finance to space exploration — before jumping into a new field. And each set of prior experience prepared them for what they are doing today.

Alex Colosivschi, founder and CEO of Currux

Courtesy of Currux

Alex Colosivschi had a successful career in energy finance before he started his company, Currux. He was walking in his Rice Village neighborhood when the idea came to him. He realized that despite the green surroundings, he was choked by the smell of engine exhaust.

"I started with thinking about the future of energy and how the industry will adapt to a world of electric, autonomous and shared mobility, and the need to reduce CO2 emissions," he says.

Tim Kopra, partner at Blue Bear Capital

Courtesy of Blue Bear Capital

It might not be easy to connect the dots between Tim Kopra's NASA career and his current role at Blue Bear Capital, but for Kopra, it makes perfect sense.

"On face value, it may sound like an odd match, taking someone with a tech and operational background and putting them in venture, but quite frankly it feels very familiar to me because my career has really been focused on working on complex technology and operations with very small teams," Kopra says. "It's not just a theoretical understanding of the technology, but understanding how to use the technology and how it works."

Stuart Morstead, co-founder and COO of Arundo Analytics

Courtesy of Arundo Analytics

Stuart Morstead spent the bulk of his career in consulting, so he knows the importance of understanding the needs an industry has. He co-founded Arundo Analytics to address the analytical needs energy companies have on a regular basis.

Morstead says that most industrial companies that encounter issues with operations such as equipment maintenance "lack the data science and software capabilities to drive value from insights into their daily operations."

Arundo is growing — both from a funding standpoint as well as through its staff. The Houston company has big plans for its 2019.

Tim Kopra spent over 244 days in space, and now he's using his tech background to invest in emerging energy companies. Courtesy of Tim Kopra

Former NASA astronaut is investing in the future of the oil and gas industry

Featured Innovator

When Tim Kopra returned from space in 2009 after he served as flight engineer on NASA's Expedition 20, he was ready to transition into civilian life. The Army vet went to business school, received his MBA in 2013, and started thinking about his next steps here on earth.

That is, until he was called back by NASA to serve as flight engineer then commander of the ISS in Expedition 46/47. He landed in June of 2016 after spending a career total of 244 days in space.

The timing was right this time around for Kopra. A former classmate of his, Ernst Theodor Sack, had worked at a Riverstone Holdings for a decade and had realized the potential for funding smaller, more niche startups. Sack was ready to branch out on his own, and Kopra was looking for his next career opportunity too.

That's how the two partnered up to create Blue Bear Capital, an investment fund that invests in data-driven technology companies in the energy supply chain.

"You can think of it as Silicon Valley tech, IoT, analytics, machine learning, SaaS business models applied to oil and gas, wind, solar, and energy storage," Kopra says.

The energy industry has been known to be slow to adopt new technology, like analytics, machine learning, and the Internet of Things, Kopra says, but Blue Bear's goal is to find the startups creating cutting edge technology and help them gain a footing in the industry.

"In order to adopt new technology, our view is that it has to be able to demonstrate clear value proposition upfront — not something that promises to improve operations down the line. It needs to happen relatively quickly."

Blue Bear capital closed its fund in the fourth quarter of 2018 with a total of eight investments. Kopra spoke with InnovationMap on how he's merged his space career into a tech investment guru.

InnovationMap: What sort of experience do you bring in to your investment responsibilities from your Army and NASA days?

Tim Kopra: On face value, it may sound like an odd match, taking someone with a tech and operational background and putting them in venture, but quite frankly it feels very familiar to me because my career has really been focused on working on complex technology and operations with very small teams. It's not just a theoretical understanding of the technology, but understanding how to use the technology and how it works.

It's something that over time, when you work with different kinds of aircraft or experiments on the Space Station or the space suits we use on space walks or the robotics system we used, you really develop a strong sense of how we as humans are able to work with technology and improve the functions we have in our jobs. That's a valuable aspect I bring to the table.

There's the operational component too. You can have great technology, but if it's not well matched to its job and implementation, it's not going to have the ability to solve the problems it was intended for. Third component is with small teams. I've worked with teams of two to 10 to 30 to several hundred — you recognize the need for people to work more effectively together.

I was on the last couple of astronaut selection committees. Our most recent one was going through 18,300 and select 12. Our job during the last portion of the selection is interviewing the last 50 or so. Those people competing for those spots are rock solid when it comes to their technical background and operational experience. The one thing we were asking ourselves as the interview committee was, "Who'd you want to go camping with?" It's the matter of the kind of people you can spend time with and be effective with. When we look at companies to invest in, we are looking for good small teams like that.

IM: How has Houston's tech ecosystem changed throughout your career?

TK: When we started in January of 2017, we saw one conference every few months that was involved in innovation and new technology and its application in oil and gas. Whereas now, it's pretty much every month that there's a major event about applying new technology in the industry.

IM: So, how has the city been for you as an investor?

TK: Obviously, Houston is the center for traditional energy and oil and gas. One thing that has been notable over our journey is the increased involvement in corporate venture funds. And, then the number of startups — it's a growing number and there's plenty of room for growth when it comes to energy startups. We've definitely seen an improvement in the types of technology provided and the number of startups emerging.

IM: Do you feel like the relationship you have with corporate VCs is competitive or collaborative?

TK: I think that the environment for venture capital in Houston in particular is very collaborative. When it comes to the corporate VCs, we're aligned because often times they are looking for companies farther along and then secondly, we're happy to co-invest with corporate teams. There are plenty of deals to go around, and we think working together we can definitely succeed.

IM: What types of companies are you looking for?

TK: We consider companies that are early revenue companies. We focus on data-driven technology companies, but they need to have recurring commercial revenue, so not just pilots.

IM: What's next for Blue Bear?

TK: We recently closed the fund, and what that means is we need to deploy the capital. We've invested in eight companies and had one exit, which we are excited about.

What we try to do is find the absolute best in class within a sector in which we invest.

IM: What keeps you up at night, as it pertains to your business?

TK: It's a very dynamic world. We have to keep track of macro trends and understand where the market is going. That has everything to do from the price of oil to government incentives to what large companies are investing in. I wouldn't say that it keeps us awake at night, but there's so many facets of the business that can impact what we do — positively and negatively. But we are constantly keeping track of what's going on in the world and what's going on in our sector.

The one thing we are most focused on right now is maintaining deal flow that we've been able to achieve. Going through the thousand or so companies we have over the past couple of years has been an extremely arduous task, but it's necessary for us to be able to understand the market.

We need to be as diligent as we have been over the past couple years. It's a really exciting space to work in, and we just need to maintain that level of excitement.

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Portions of this interview have been edited.

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Houston-based equitable entrepreneurship tech platform expands programs

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Fresh off of celebrating the dismissal of a lawsuit from former Trump Administration officials, Hello Alice is expanding some of its offerings for entrepreneurs.

In partnership with top organizations — like Progressive, Antares Capital, Wells Fargo, and FedEx — Hello Alice has added new offerings for its 2024 Boost Camp programs, a mix of skill-building support and grant opportunities.

“We are fortunate to continue working with great enterprise partners who share our commitment to supporting Main Street through crucial grants and mentorship programs,” Carolyn Rodz, CEO and co-founder of Hello Alice, says in a news release. “Small businesses drive our economy, yet often lack the necessary financing and resources. By partnering with major companies, Hello Alice is ensuring that small businesses have access to the tools and opportunities they need to thrive and create jobs in their local communities. Together, we are building a robust support system that fosters innovation and growth for small businesses across the country.”

This year's programs, according to Hello Alice, are as follows:

  • Antares Capital REACH Cohort: The Antares REACH Grant Program provides $20,000 grants to small businesses. Grant recipients will also take part in Antares’ Growth Track Boost Camp program, a digital community which will be home to monthly business coaching workshops, mentorship, networking, and more. Applications are open until June 28, and the program begins August 8.
  • Progressive Driving Small Business Forward Grant & Booster Camp Program: Progressive is dedicating $1 million to award 20 deserving businesses with a $50,000 grant each. Grant recipients will be invited to attend an exclusive 12-week virtual Boost Camp coaching program. Applications have closed for the program beginning September 10.
  • Wells Fargo: Wells Fargo is supporting four virtual accelerator programs over the next 18 months, designed to support up to 500 participants for each program, with a focus on business health and credit-building practices. Applications will be announced this summer for the program, which will begin in early fall.
  • FedEx: The FedEx Entrepreneur Fund supports entrepreneurs in the United States by providing them with the necessary funding, resources, and networks to enhance the success of their businesses, including the Boost Camp coaching program.
    • Applications will be announced this fall for the program, which will begin in the winter.

More information and application access is available online.

Last year's Boost programs benefitted 100 small businesses, according to Hello Alice, which reported that the 2023 Antares REACH Cohort resulted in 60 percent of participants seeing an increase in their Business Health Score and 93 percent felt better equipped to confront challenges and capitalize on opportunities. In the end, 85 percent of participants feeling more optimistic about their business growth prospects.

"Hello Alice is proud to partner with high-level enterprise companies to empower small businesses and foster their success," Natalie Diamond, vice president of business development at Hello Alice, adds. "Together, we are creating unparalleled opportunities for entrepreneurs to achieve brand success, drive financial fitness, and thrive in today's competitive market. Our joint endeavors not only offer access to capital and resources but also provide tailored guidance and mentorship, arming small business owners with the insights and support necessary to navigate challenges and seize growth opportunities.”

Houston company's sustainable oil product reaches milestone production capacity 5 years early

overachieving

Houston-based biotech company Cemvita has achieved a key production goal five years ahead of schedule.

Thanks to technology advancements, Cemvita is now capable of generating 500 barrels per day of sustainable oil from carbon waste at its first commercial plant. As a result, Cemvita has quadrupled output at the Houston plant. The company had planned to reach this milestone in 2029.

Cemvita, founded in 2017, says this achievement paves the way for increased production capacity, improved operational efficiency, and an elevated advantage in the sustainable oil market.

“What’s so amazing about synthetic biology is that humans are just scratching the surface of what’s possible,” says Moji Karimi, co-founder and CEO of Cemvita. “Our focus on the first principles has allowed us to design and create new biotech more cheaply and faster than ever before.”

The production achievement follows Cemvita’s recent breakthrough in development of a solvent-free extraction bioprocess.

In 2023, United Airlines agreed to buy up to one billion gallons of sustainable aviation fuel from Cemvita’s first full-scale plant over the course of 20 years.

Cemvita’s investors include the UAV Sustainable Flight Fund, an investment arm of Chicago-based United; Oxy Low Carbon Ventures, an investment arm of Houston-based energy company Occidental Petroleum; and Japanese equipment and machinery manufacturer Mitsubishi Heavy Industries.

Tech disruptions sparked by Texas co.'s update highlight the fragility of globally connected technology

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.”

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