Human-tissue printing technology, blockchain networks, health care solutions, game-changing software — all this innovation and more is coming out of Houston startups. Courtesy photos

Thousands of startups call Houston home. According to the Greater Houston Partnership's data, the Houston area added 11,700 firms between 2013 to 2018. And, if you consider Crunchbase's tally, at the end of 2018, Houston had over 1,400 tech startups on the investment tracking website's radar.

This past year, InnovationMap featured profiles on dozens of these Houston startups — from blockchain and software companies to startups with solutions in health care and oil and gas. Here are 10 that stood out throughout 2019.

Topl — a blockchain startup connecting every step of the way

Houston-based Topl can track almost anything using its blockchain technology. Getty Images

For Topl, 2019 was a year of laying the groundwork. In a January 2019 article on InnovationMap, Kim Raath, president of the Houston-based blockchain company, explained that Topl's mission originated out of the fact that 60 percent of the world lives on $10 a day — and it's in the poorest regions of the world where it's the hardest to get funding for a new business.

Raath says that in her experience backpacking and volunteering all around the world she learned that banks are too overwhelmed to evaluate these potential businesses. Topl has created a technology where banks can easily generate a report on these entrepreneurs that evaluates and makes a loan or investment recommendation on the business.

"We are a generation that wants a story," she says. "We want an origin, and don't want to be fooled. And, because you might be able to reduce the cost by having this transparency, you might be able to bring down the cost on both sides."

Later that year, the company closed a 20 percent oversubscribed $700,000 seed round. With the money, Topl will be able to grow its platforms, provide better product features, and increase marketing efforts. Topl's customers are drawn to the technology because of the business efficiency the blockchain adds to their supply chain, but they are also excited about how having this technology differentiates them from their competition. Raath says she's interested in growing Topl's ability to do joint marketing campaigns with their customers.

Incentifind — finding green incentives for commercial and residential building

Natalie Goodman founded Incentifind, which connects home builders and commercial developers with green incentives. Courtesy of Incentifind

When asked about the origin story of IncentiFind — a Houston-based startup that connects real estate developers and home builders with green construction incentives — founder Natalie Goodman doesn't mince words.

"We're a complete accident," Goodman tells InnovationMap in an interview in March. "I'm an architect. We didn't set out to have a startup."

IncentiFind's mission is to increase the amount of green developments and construction projects in the U.S. The company is equipped with a massive database of green incentives that are offered by utility, county, city, state and federal agencies. Many home builders or commercial developers don't take advantage of green incentives because they're simply not aware of them, Goodman says. Commercial developers can expect to spend around $1,500 with IncentiFind, while homeowners can expect to spend between $50 and $150.

Lazarus 3D — 3D printed organs to better train surgeons

Lazarus 3D is using 3D printing to help advance surgeons' skills. Photo via laz3d.com

It's pretty standard for surgeons in training to practice complicated surgeries on produce — slicing bananas open and sewing grapes back together. But for a pair of Baylor College of Medicine-educated doctors, that didn't seem like sufficient prep for working with living bodies; fruit surgery was not fruitful enough. In 2014, Drs. Jacques Zaneveld and Smriti Agrawal Zaneveld founded Lazarus3D to build a better training model — and layer by layer, they created models of abs and ribs and even hearts with a 3D printer.

"We adapted pre-existing 3D printing technology in a novel proprietary way that allows us to, overnight, build soft, silicone or hydrogel models of human anatomy," Jacques, who serves as CEO, tells InnovationMap in July. "They can be treated just like real tissue."

This year, the company grew to seven people and aims to expand even more to add to its sales and manufacturing teams. Having been funded mostly by friends and family investors, Lazarus3D plans enter its first equity round to raise $6 million, InnovationMap reported last summer.

Mental Health Match — connecting people to the right therapists

Ryan Schwartz realized online dating was easier than finding a therapist. He created a tool to change that. Courtesy of Mental Health Match

Nearly five years ago, Ryan Schwartz sat in a coffee shop in crisis mode. His mother had just died suddenly and he was struggling to find an appropriate therapist. Across the table, his friend sat making a profile on a dating app. Quickly, her endeavor was complete and she was ready to swipe right, but Schwartz was still on the hunt for mental help.

"In two minutes she could have a profile matching her with a partner potentially for the rest of her life and I was sitting there for hours and hours trying to find a therapist," he told InnovationMap in June. "I thought it should be easier to find a therapist than a life partner. That's what sent me on my journey."

That journey reached a watershed last month when Schwartz launched Mental Health Match, a website designed to pair patients with their ideal therapist. The idea gained traction as Schwartz described it to people he met and found that many said they had experienced similar difficulties in finding the right practitioner for their needs.

Grab — making ordering food at the airport easier

Houston-based Grab makes it so you're waiting in one less line at the airport. Getty Images

Most airport lines are unavoidable, but a Houston startup has cut out at least some of those lines with its mobile ordering app. Houston-based software company Grab was founded by Mark Bergsrud in 2015, who worked in senior leadership roles for almost 20 years at Continental Airlines and then United Airlines, following the merger. For Bergsrud, Grab feels like another major mobile game changer the industry experienced.

"I spent many years thinking about the travel experience and how to make it better and faster," Bergsrud told InnovationMap in July. "This feels like how mobile check in felt. There was a problem customers didn't know they had — check in wasn't that difficult anyway, but to be able to have that control, people love it."

Grab now has a presence in over 37 airports around the world, including Dallas and Austin though, ironically, not yet either of Houston's airports. Expansion is in the works for Grab, which closed a multimillion-dollar Series A round this year — London-based Collinson Group was the sole contributor.

NurseDash — An app that connects nurses to shifts

Houston-based NurseDash is the Uber of staffing nursing shifts in medical facilities. Photo via nursedash.com

Across the country, medical facilities are short on nurses. Agencies play a role in matchmaking nurses to open shifts, but agencies charge a high percentage for placement and lack transparency, says Andy Chen, former CFO for Nobilis Health Corporation. That's why he and Jakob Kohl created their app, NurseDash in 2017. The project manager for the app is in New York, but official headquarters in Houston's Galleria area, where a staff of five works with the team spread out around the world.

Since its debut, NurseDash has attracted 40 facilities in Houston, InnovationMap reported in May, including hospitals, surgery centers, and senior living, and about 400 nurses. Chen says he isn't sure just what to call his technology yet, but compares it to the ride hailing of Uber or Lyft and calls it "a virtual bulletin board."

Syzygy — hydrogen cells battery to minimize natural gas

Trevor Best, CEO of Syzygy Plasmonics, walked away from EarthX $100,000 richer. Photo via LinkedIn

A Houston technology company is doing something that, for many decades, wasn't thought to be possible. Syzygy Plasmonics is creating a hydrogen fuel cell technology that produces a cheaper source of energy that releases fewer carbon emissions. The hydrogen-fueled technology originated out of research done over two decades by two Rice University professors, Naomi Halas and Peter Nordlander.

Syzygy's technology, CEO Trevor Best told InnovationMap in August, is structured more like a battery than that of a combustion engine. Inside the technology, there are cells, lights, and mirrors making as bright as possible, which then spurs a reaction that creates energy. It has the potential to be cheaper — it's made with cheaper materials — and, of course, cleaner than traditional fueling technology with fewer carbon emissions released.

This new photocatalytic chemical reactor has the potential to shake up the industrial gas, chemical, and energy industries — something that hasn't gone unnoticed by investors. Syzygy just closed a $5.8 million Series A round, and the funds will allow for Syzygy to continue to develop its technology and grow its team. Best tells InnovationMap that he expects to launch a full-size pilot by the end of 2020 and is already in talks with potential clients who are interested in the technology for industrial purposes.

Volumetric — 3D printed human tissue

Houston researchers are commercializing their organ 3D printing technology. Jordan Miller/Rice University

There may come a time when you or someone you love is in need of a new pair of lungs. Or perhaps it's a liver. It's not a scenario anyone dreams of, but thanks to Houston company Volumetric, you may never end up on a waiting list. Instead, that organ is made to order and 3D printed using a mix of medical plastics and human cells.

And this possibility isn't necessarily in the distant future. On the cover of the May 3 issue of the journal Science, is a contraption that looks a bit like a futuristic beehive. It's a working air sac complete with blood vessels, the beginnings of a technology that is perhaps only a decade from being implanted in humans. And it was crafted on a 3D printer in Jordan Miller's lab at Rice University. Miller and his bioengineering graduate student Bagrat Grigoryan are primed to profit from their inventions.

In 2018, they started Volumetric Inc., a company that sells both the hydrogel solutions used for printing organs like theirs and the printers themselves. Touring Miller's lab in the Houston Medical Center is a visual timeline of his team's progress designing printers. The version being manufactured is a slick little number, small enough to fit under chemical exhaust hoods, but fitted with everything necessary to print living tissues. It's made and sold in cooperation with CellInk, a larger bioprinting company.

"Our technology is based on projection," Miller told InnovationMap in May. Specifically, it's stereolithography, a type of 3D printing that produces the finished product layer-by-layer. Shining colored light of the right intensity turns the polymers into a solid gel.

Voyager — Email-less communication tool for maritime shipping

Voyager, a Houston SaaS company, has received fresh funds to develop its bulk shipping software. Tom Fisk/Pexels

Houston software startup Voyager is making waves in its quest to improve efficiency — and stem billions of dollars in losses — in the maritime bulk-shipping business. Now, it's got some fresh capital to help it achieve that mission.

InnovationMap reported in August that Houston-based Voyager revealed it secured $1.5 million in seed funding from four investors from around the world: Austin-based ATX Venture Partners, Houston- and California-based Blue Bear Capital, New York City-based GreenHawk Capital, and Oman-based Phaze Ventures. Previous investors include Boulder, Colorado-based Techstars and Spring-based Knightsgate Ventures.

With its software-as-a-service offering, Voyager aims to modernize the workflows of operators in the maritime bulk-commodities industry. The company says its technology will become more vital as autonomous shipping and internet- and Internet of Things-enabled cargo vessels grow in popularity. Voyager's technology enables all communication tied to a shipment to be handled via its web dashboard and app, essentially creating a one-stop shop for people who need to track messages about maritime bulk shipments.

"With Voyager, what it allows companies to do is essentially have all of those counter parties working together in a shared environment to manage the voyage together — entirely email free," Matthew Costello, CEO, tells InnovationMap in December.

Galen Data — cloud-based platform for connecting medical devices to the internet

Houston-based Galen Data is growing its clientbase and just formed two new partnerships with medical device companies. Photo via galendata.com

Educated as an engineer, Chris DuPont has stepped outside his professional comfort zone to generate funding for his Houston-based startup, Galen Data Inc. DuPont's pool of technical contacts in Houston is "wide and deep," he says, but his pool of financial contacts had been shallow.

Overcoming obstacles in Houston's business waters, DuPont has raised two rounds of angel funding — he declines to say how much — that have enabled Galen Data to develop and market its cloud-based platform for connecting medical devices to the internet, including pacemakers and glucose monitors. DuPont is the startup's co-founder and CEO.

Galen Data's patent-pending technology lets medical device manufacturers tailor the cloud-based software to their unique needs. DuPont says his company's software is geared toward medical devices that are outside, not inside, hospitals and other healthcare facilities. He declines to divulge how many customers the startup has.

Hatched within Houston-based Tietronix Software Inc., DuPont's previous employer, Galen Data launched in 2016 but didn't roll out its first product until 2018. Galen Data's emergence comes as the market for internet-connected mobile health apps keeps growing. One forecast envisions the global space for mobile health exceeding $94 billion by 2023.

"We want to be at the forefront of that technology curve," DuPont tells InnovationMap in May. "We might be six months early, we might be a year early, but it's starting to happen."

Seven Houston startups are beginning October with fresh funding. Photo by Tim Leviston/Getty Images

These 7 Houston startups closed millions in funding last month

Venture adventures

September was a busy month for several Houston startups. Seven companies closed rounds throughout the month and are now beginning the fourth quarter of 2019 with fresh funds.

InnovationMap has rounded up these seven deals based on previous stories as well as new information. Scroll through to see which Houston startups are catching the eyes — and cashing the checks — of investors.


Galen Data

Houston-based Galen Data is growing its clientbase and just formed two new partnerships with medical device companies. Photo via galendata.com

Texas Halo Fund led a Houston startup's seed round last month. Galen Data, which uses its cloud-based software to connect medical devices, closed a $1 million seed round thanks to the fund's $250,000 investment. Kevin King, one of Texas Halo Fund's managing director, has also been named to the startup's board of directors.

According to the release, the Texas Halo Fund based its decision for the investment "on the large and growing addressable market of connected medical devices, the company's impressive management team, and post revenue status."

Galen Data's emergence comes as the market for internet-connected mobile health apps keeps growing. One forecast envisions the global space for mobile health exceeding $94 billion by 2023.

"We want to be at the forefront of that technology curve," DuPont tells InnovationMap in a previous interview. "We might be six months early, we might be a year early, but it's starting to happen."

Earlier this year, Galen Data formed strategic partnerships with medical device companies. Click here to read more about those.

SurfEllent

Photo via surfellent.com

SurfEllent, an anti-icing coating technology startup founded out of the University of Houston has raised $470,000 in funding. The company won the second place award and a total of $45,000 at the Texas A&M New Ventures competition before receiving an anonymous investment of $350,000 in seed funding. SurfEllent also received two grants: a $50,000 Small Business Innovation Research grant and a $24,999 Small Business Technology Transfer grant.

"Ice is a problem that will exist as long as we live on the earth. It impacts a wide range of things, including aircraft wings and engines, automobiles, buildings and bridges, ships and vessels, and power transmission systems," says SurfEllent Co-Founder Hadi Ghasemi, a Bill D. Cook Associate professor of mechanical engineering at the UH Cullen College of Engineering, says in a news release.

SurfEllent's product can be used in the de-icing of cars and airplane engines.

"The end goal is to improve the quality of human life," Ghasemi says in the release. "This recognition is another proof of the critical need for advanced anti-icing coating technologies and opens opportunities for collaboration with various industries and business partners."

Cemvita Factory

Cemvita Factory

In August, Occidental Petroleum's Oxy Low Carbon Ventures LLC invested in Houston-based Cemvita Factory, and in September, BHP followed suit. While Cemvita Factory isn't able to disclose how much money its raised through these partnerships, the company confirms it has closed its round of funding.

Cemvita Factory is run by a brother-sister team. Moji and Tara Karimi built the company off of Tara's research into mimicking photosynthesis. The process is able to help reduce energy company's carbon emissions.

"We have an ambitious goal to take one gigaton of CO2 out of the carbon cycle in the next decade and are very excited about being a part of Occidental's journey to become a carbon-neutral company," says Tara, co-founder and chief scientist, in a news release.

The investments will help Cemvita Factory continue to develop its biomimicry technology for oil and gas applications to reduce the volume of greenhouse gas emissions.

Read more about Cemvita's technology by clicking here.

Sourcewater

oil and gas It might not be surprising to discover that the energy capital of the world is a hub for energy startups. Getty Images

Houston-based Sourcewater Inc., which specializes in oilfield water intelligence, closed its series A round at $7.2 million. Bison Technologies, Marubeni Corp., and major energy family offices in Houston, Midland, Dallas, and Oklahoma City contributed to the round. The funds will go toward further developing the company's technology.

"For every barrel of oil produced in the Permian Basin there are more than ten barrels of associated water that are sourced, recycled, transported, and disposed of," says Joshua Adler, founding chief executive of Sourcewater, in a news release. "When America became the world's leading energy producer last year, it also became the world's leading water producer, times ten. Water management is now the majority of upstream energy production cost, and water sourcing, recycling and disposal capacity is the primary constraint on America's energy future."

Read more about the raise here.

SEATz

sEATz

Houston startup sEATz has created a platform where fans can order just about anything their stadium has from an app. Much like any other ordering app, once the order is placed, a runner will pick up the food and deliver it to the customer for a small fee and a tip.

The startup is now preparing to scale up from seven venues to 10 before the year is over as well as launching a new version of the app thanks to an oversubscribed near $1.3 million seed round led by Houston-based Valedor Partners. Houston-based Starboard Star Venture Capital also contributed to the round. SEATz has plans to launch its Series A round before the new year.

"We're building enterprise-level, scalable in-seat ordering, delivery, and pick-up software. We'll have all the data and validation we need this fall to really start to push that out," says CEO and co-founder Aaron Knape.

Read more about sEATz's raise by clicking here.

Syzygy

Earlier this year, Trevor Best, CEO of Syzygy Plasmonics, walked away from EarthX $100,000 richer. Now, he has an even bigger check to cash. Photo via LinkedIn

Using research that came out of Rice University, Syzygy Plasmonics has developed a hydrogen fuel cell technology that produces a cheaper source of energy that releases fewer carbon emissions.

The company just closed a $5.8 million Series A round led by MIT's The Engine and Houston-based The GOOSE Society of Texas. Evok Innovations, a previous investor in the company, and angel investors from the Creative Destruction Lab also contributed to the round.

"We're starting to solidify relationships and get customers ready," CEO Trevor Best tells InnovationMap.

Read more about Syzygy's technology by clicking here.

Topl

blockchain

Houston-based Topl can track almost anything using its blockchain technology. Getty Images

Houston-based Topl, a blockchain network with applications across industries, closed a 20 percent oversubscribed $700,000 seed round.

"Every investor that is invested now has focused on both the purpose and the profit, and I'm big on that," Kim Raath, president and co-founder of Topl, says.

The team has built six blockchain platforms that operate on the Topl network — two are live now, and four will go live later this year. The platforms are focused on four different areas: agriculture (tracking food products from the farm to the shelves), mining (diamonds, for instance), sustainability and impact (tracking a program to see how it succeeds), and carbon credits and renewables within the energy industry.

Click here to read more about the raise and what it means to Topl's technology.

Syzygy Plasmonics, which is creating a cleaner energy source that runs on hydrogen, closed a $5.8 million round. Photo via plasmonics.tech

Houston clean energy company closes $5.8M Series A and prepares to revolutionize the industry

Game changer

A Houston technology company is doing something that, for many decades, wasn't thought to be possible. Syzygy Plasmonics is creating a hydrogen fuel cell technology that produces a cheaper source of energy that releases fewer carbon emissions.

The hydrogen-fueled technology originated out of research done over two decades by two Rice University professors, Naomi Halas and Peter Nordlander.

"There are rules in chemical engineering, and you can't break them, but we follow them in a different way," CEO Trevor Best tells InnovationMap. "What we're doing is fundamentally different. We're using light instead of heat to drive chemical reactions."

Syzygy's technology is structured more like a battery than that of a combustion engine. Inside the technology, there are cells, lights, and mirrors making as bright as possible, which then spurs a reaction that creates energy. It has the potential to be cheaper — it's made with cheaper materials — and, of course, cleaner than traditional fueling technology with fewer carbon emissions released.

This new photocatalytic chemical reactor has the potential to shake up the industrial gas, chemical, and energy industries — something that hasn't gone unnoticed by investors. Syzygy just closed a $5.8 million Series A round led by MIT's The Engine and Houston-based The GOOSE Society of Texas. Evok Innovations, a previous investor in the company, and angel investors from the Creative Destruction Lab also contributed to the round.

The funds will allow for Syzygy to continue to develop its technology and grow its team. Best tells InnovationMap that he expects to launch a full-size pilot by the end of 2020 and is already in talks with potential clients who are interested in the technology for industrial purposes.

"We're starting to solidify relationships and get customers ready," Best says.

Earlier this year, the company also received funding from the Department of Energy and from the National Science Foundation SBIR Program. The DOE tasked Syzygy with creating a reactor that transforms ammonia into hydrogen for fueling purposes. For the SBIR Program, the company is creating a reactor that processes carbon dioxide.

Blockchain-as-a-service company closes $6 million Series A round. Courtesy of Data Gumbo

Data Gumbo closes $6M round, Alice partners with accelerator, and more Houston innovation news

Short stories

Houston's innovation ecosystem has been busy, and the ongoing 50th anniversary of the Offshore Technology Conference has claimed a lot of attention in town lately. While I'm sure you've seen the big news pieces, like the Texas Medical Center's new details about TMC3 or WeWork's third Houston location, you may have missed some of these short stories.

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Data Gumbo closes a $6 million Series A round

Data Gumbo's executive team will use the round of funding to grow its operations. Courtesy of Data Gumbo

Data Gumbo Corp., a Houston-based blockchain-as-a-service company, completed a $6M Series A equity funding round. Saudi Aramco Energy Ventures — the venture subsidiary of Saudi Aramco — and Equinor Technology Ventures —the venture subsidiary of Equinor — co-led the round.

The new capital will be used to grow the company's commercial blockchain network, as well as Data Gumbo's technical, sales and marketing teams at their Houston headquarters and office in Stavanger, Norway. This Series A round brings Data Gumbo's total funding to $9.3 million.

"We enabled the first application of blockchain technology in the offshore drilling industry and will continue to break new ground with applications of BaaS to improve the bottom line of companies of all sizes. Blockchain will have a major impact on the oil and gas industry - and all global industries - and we will lead the charge in its broad adoption for sweeping operational improvements," says Andrew Bruce, CEO of Data Gumbo, in a release. "The partnership with Equinor and Saudi Aramco, and their associated supply chains and partnerships, will provide the momentum for the Data Gumbo BaaS network to gain critical mass." Learn more about Bruce and Data Gumbo here.

Alice and Founder Institute team up

Houston's new Founder Institute chapter has teamed up with Alice. Image courtesy Founder Institute

Pre-seed accelerator, the Founder Institute and Houston-based AI startup resource platform, Alice, announced a partnership to present the "Alice Fellowship" within the Founder Institute Program to help aspiring female founders build impactful and enduring startup companies.

The fellowship allows for female entrepreneurs in the Alice community to apply to the Houston FI program for free, waiving the $50 fee. The best applicants will then be selected to receive the fellowship for free as well. Interested female founders can apply https://fi.co/join/Alice before the application deadline of May 19.

Report shows how Houston fares as a startup city

Houston didn't rank among the best cities for startups — but it didn't make the worst either. Photo by Tim Leviston/Getty Images

Houston performed averagely on a new study from SimpleTexting. The report ranked cities based on their startups' performance — valuation of startups, startup jobs available, number of investors in the region, etc. Here's how Houston ranked. (Note: only the top and bottom 10 cities were ranked, and Houston doesn't appear on any of the top or bottom 10 lists.)

  • Average startup valuation: $4 million (This seems to be about the middle of the pack compared to other cities.)
  • Investor to startup ratio: 2.9 (Houston outranks Austin, which has a 1.5 ratio, in this category but seems to be closer to the bottom than the top.)
  • Startups per 100,000 people: 27.1 (Houston ranks pretty low on the spectrum for this. The 10th worst city is Rochester, New York, which has 17.8.)
  • Startup jobs per 100,000 people: 1.8 (Houston again falls closer to the bottom than the top with this number. The 10th worst city is Tuscon, Arizona, which has 0.88.)

While using different metrics, WalletHub found that Houston is a strong city to start a business. Read that story here.

Clean energy company awarded at EarthX

Trevor Best, CEO of Syzygy Plasmonics, walked away from EarthX $100,000 richer. Photo via LinkedIn

Houston-based Syzygy Plasmonics won $100,000 as one Texas' top CleanTech startup companies at the 2019 EarthX CleanTech Investment Challenge in Dallas. Syzygy is a chemicals startup out of Rice University, and one of their technologies focuses on hydrogen as a fuel option and alternative to gasoline.

TMCx company raises $5.14 million Series A

Philadelphia-based RoundTrip, which is in TMCx's current cohort, closed a hefty Series A round. Photo via roundtriphealth.com

An estimated 3.6 million patients miss or postpone their medical appointments annually, which leads to bigger medical issues that could have been prevented or treated earlier. Philadelphia-based RoundTrip created a platform where patients can book transportation to and from appointments. The startup, which is currently completing TMCx's digital health accelerator program, recently closed its Series A round of $5.14 million led by Motley Fool Ventures.

Houston energy professional publishes female-focused book

The new novel tells the stories of the women within the offshore oil and gas industries. Courtesy of Rebecca Ponton

Rebecca Ponton has published her series of 23 short biographies of women in the offshore oil and gas industry called, Breaking the GAS Ceiling: Women in the Offshore Oil & Gas Industry. Ponton timed the publication ahead of the 2019 Offshore Technology Conference. The book is available on Amazon.

The book features a number of Texas women, including:

  • Marni Zabarsky (MADCON Corp.)
  • Mieko Mahi (freelance petroleum photographer)
  • Alyssa Michalke (previously of TAMKO)
  • Jerry Tardivo Alcoser (works in Chevron's Bakersfield office, but has a home in Houston)
  • Melody Meyer, Katie Mehnert, and Ally Cedeno, who wrote endorsements for the book, live and work in Houston.

Houston O&G consulting company named Great Place to Work

oil and gas

EAG Services received a national recognition for its work environment and employee happiness. Getty Images

Great Place to Work and FORTUNE selected Houston-based EAG Services as one of the 2019 Best Workplaces in Consulting and Professional Services in the small to mid-sized company category. The rankings were based on employees' feedback. EAG Services took the Number 17 spot on the list.

"EAG Services is proud to be recognized by our people for creating one of the best workplaces in the consulting and professional services industry. Our ongoing commitment to keeping culture our priority as well as playing an ever-critical role in hiring has proven to be successful in attracting and building an empowering place to work," says Elizabeth Gerbal, CEO and Founder of EAG Services, in a release.

As a part of its Texas Startup Manifesto, Austin-based Capital Factory came into town to talk about the Houston's ecosystem and advice for tech startups looking to do business in town. Natalie Harms/InnovationMap

Here are 3 pieces of Houston startup advice from Capital Factory's emerging tech panel

Tech talk

Throughout the year, Austin-based Capital Factory loads up a bus and takes startup founders and tech entrepreneurs around the Lone Star State in order to better connect the dots of innovation within Texas' major metros. The Texas Startup Manifesto bus recently put it in park outside Station Houston and hosted a tech-focused panel at Accenture's innovation hub.

The panel, which was hosted by two deep tech startup founders, asked some important questions about Houston's ecosystem and startup needs to three experts. Trevor Best of Syzygy Plasmontics and Diana Liu of Arix Technologies represented the startups, while Allison Sawyer of League of Worthwhile Ventures, Mark Volchec of Las Olas VC, and Brian Richards of Accenture fielded their questions.

The panel started out with the state of Houston's innovation ecosystem — which, of course, was the whole point of the one-day field trip to the Bayou City. The panelists seemed to agree that Houston has things it needs to improve on, but the point is not to try to copy any other market.

"We can't try to be Silicon Valley. We're just simply not," Richards says. "What we have to focus on is what our strengths are."

For instance, Houston has a lot of money within the city, but that hasn't yet translated to a large amount of investments in startups. Even if the city found $1 billion to start investing in companies, Richards says that wouldn't solve everything instantly. Houston has to be able work on the ecosystem as a whole, not just one thing in particular.

"We have so many problems to solve, and we have to solve them in parallel," Richards says. "We have to fix them all at once."

The city's ecosystem aside, the panel weighed in on some of their own advice for tech startups making waves in Houston.

Hire a business-minded leader, like, yesterday.

One of the most crucial aspect for any startup is the team behind the product, and having a diversity of expertise on that team is especially in tech startups, which are usually instigated by a tech-focused founder.

"I think it's really important to have a balanced founding team," Volchec says. "If everyone is tech, I think it's really difficult."

As a venture capitalist and former founder himself, Volchec's biggest critique is that, startups and founders don't start sales early enough. Volchec says he once signed a deal with a company before they even had a product let alone revenue. The key distinguisher for him was that the company already had contracts in place from customers.

Having that person to sell the company is so important, and you need a business-focused person at the helm to do so. For most companies, that's not the tech-minded founder.

"If you're the scientist, why do you even want to be the CEO?" Volchec asks. "The CEO's job is to be out there and selling — to investors, to clients, to employees."

According to the panelists, sooner is better for making that hire.

"if you don't hire a CEO, and you raise enough money, someone will hire a CEO for you, and you might not like that CEO," Volchec says.

Have a free discovery.

In particular, B-to-B companies should have a free trial, so to speak, for their product. It's Sawyer's pet peeve, she says, when startups charge for the discover process. It's strategic to give access to some people within the company your startup is trying to sell to, that way they get hooked and want to get more access for their whole team.

It does make the process a little more challenging, Sawyer says, since it requires a little more upfront funds.

"You do have to raise a little bit more money, but you do get to scale a lot faster," she says.

Corporate venture groups can be more than just investment. 

When looking to scale your product into bigger corporations, a way in is through corporate venturing groups, according to the panelists, even if money isn't the right fit. You're more likely to get a meeting with a venture arm than with the company itself.

"I never took corporate venture money, because they were a little too slow and it was a lot of extra accounting work, Sawyer says. "But I loved working with corporate venture when it comes to pilots. I think they are an underused resource for startups."

It also helps that more and more companies are devoting resources to these groups.

"I'm seeing corporate venture groups all over the place," Sawyer says. "Even if you're not taking their money, they will get you in the door for a pilot."

Overall, big companies are more keen to work with startups of late, says Richards, who hosts C-level execs from big companies on a daily basis in Accenture's Innovation Hub.

"I've never seen [corporations] more motivated than they are right now to be able to think differently on how they are able to engage Houston," he says.

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Overheard: Fintech company with Houston ties sees opportunity for growth in new work-from-home age

Eavesdropping in Houston

From esports to telemedicine, some technologies are having a major moment during the COVID-19 crisis. As many businesses are operating remotely with work-from-home policies in place indefinitely, payments automation is another technology that's seen an opportunity amid the pandemic.

AvidXchange, which has invoice and payment processes automation software for mid-market businesses, is one of the companies in this payment automation space that's seen growth in spite of the economic downturn caused by the virus. The Charlotte, North Carolina-based company was founded in 2000 and went on to acquire Houston-founded Strongroom Solutions Inc. in 2015.

Since the acquisition, AvidXchange has quadrupled its presence in Houston and does a good deal of business locally. Equipping companies with tools for remote work is crucial — now and especially in light of Houston's propensity for challenges. Tyler Gill, vice president of sales for AvidXchange based in the Houston office and former CEO of Strongroom, joined Houston Exponential on a virtual panel to discuss this topic.

"We've had a history of disasters in Houston. Any time we can help businesses move to a more cloud-based infrastructure is going to be better," Gill says on the livestream. "I think working from home is maybe the new normal for a lot of employees — so how do we enable this?"

Gill and his colleague, Chris Elmore, senior sales performance director at AvidXchange, joined Joey Sanchez of HX for the talk about the acquisition, the pandemic, and growth for the company. If you missed it or don't have time to stream the whole conversation, here are some impactful moments of the chat.

“Economic downturns have a tendency to put a very bright light on a feature set or a product or a service that’s underperforming."

— Elmore says on how the pandemic affects innovation and startups. "My hope is that entrepreneurs will see this as a real time to get focused on their business — what's working well and what's not working well — and my hope is that they'll say, 'I need to fix that,' not 'I wish this was better,'" he says.

“For a young entrepreneur looking to build a business, make sure you’re looking for the people who are germane to your business.”

— Gill says about starting his business in Houston. At first, he was trying to find investors in oil and gas, but he found more success working with companies with a background in finance technology. "Houston has a history and density in fintech — I just had to find it."

“The fact that Strongroom owned the automated payment process in HOA that made them so attractive to AvidXchange because we didn’t.”

— Elmore says on the 2015 acquisition. He explains that AvidXchange had set up a presence in multifamily and commercial real estate, while Strongroom had a hold on homeowner's association, or HOA, business. The two companies competed for a while, and if Strongroom hadn't had their HOA specialty that made the company ideal for acquisition, Elmore says the two companies would still be competing today.

“When Strongroom was added to AvidXchange, our culture improved. By the way, we went from 40 employees to 1,000 within 14 months, and Strongroom was right at the beginning of that.”

— Elmore says on growth following the acquisition. The company now has 1,500 employees across seven offices and just closed a $128 million round of fundraising in April.

“Customers don’t care how big you get or how much money you raise from investors. They care about if your service is still doing the things they need to operate their business.”

— Gill says, reminding entrepreneurs to always prioritize and be focused on the client experience — through mergers or acquisitions, fundraising rounds, growth, etc.

“When you replace human interaction with technology, what you have to do, is to now move that person on to something more impactful and more important for the business. I don’t like tech for tech’s sake.”

— Elmore says on the importance of automation. "When you automate something, the output of automation is time," he adds.

“Houston couldn’t be a better place to build a business — I found great investors and employees here. It’s a city that’s used to risk. But it’s got to be you, the entrepreneur, that’s got something festering — that’s how you know it’s a great idea.”

— Gill says on inspiring future innovators. "What kept me motivated was I wanted to win. I felt like we had a great product, and we had a big market to serve. … I wanted to build something lasting and build a great team."

“We continue to be a great Houston story — some of my angel investors in Houston are still benefiting."

— Gill says on AvidXchange's presence in Houston. He adds that he's proud of how his former Strongroom team members have risen through the ranks of the company following the acquisition and that he sees the company, which is still privately held, moving toward IPO.

Houston startup teams up with Austin company on medical device amid COVID-19 crisis

texans teaming up

Two Texas companies with NASA roots are joining forces on a technology that can be used to monitor vital signs of seniors or others that are at-risk of contracting COVID-19.

Houston-based Galen Data Inc., which has developed a cloud platform for medical devices, and Austin-based Advanced TeleSensors Inc., the creator of the Cardi/o touchless monitor. Together, the two health tech companies are collaborating to take ATS's device and adding Galen Data's cloud technology.

"We wish we had found Galen Data sooner. We had been building our own cloud for six months, thinking a custom solution would best meet our needs," says Sajol Ghoshal, CEO and president of ATS, in a news release. "Getting up-and-running with them was very easy, and it allowed us to focus on our core competency — which is data-signal processing."

ATS's technology uses radio frequency in its remote, touchless monitoring. The company's founders developed the core technology at NASA's Jet Propulsion Lab. Initially, the technology was intended for assisted living facilities. Now, amid the COVID-19 crisis, monitoring isolated seniors or at-risk patients is even more relevant.

Galen Data, which launched in 2016, also has NASA roots as the founders met as software contractors working on NASA's safety systems. The company has developed and marketed its cloud-based platform for connecting medical devices to the internet, including pacemakers and glucose monitors.

Chris DuPont, co-founder and CEO, has led the company to meet compliance standards set by the U.S. Food and Drug Administration (FDA), the Health Insurance Portability and Accountability Act of 1996 (HIPPA), cybersecurity organizations, and others.

"We knew that our platform would be a great fit for Cardi/o," Chris DuPont, CEO of Galen Data, says. "Speed was critical, accentuated by the COVID-19 crisis. We were well positioned to address ATS' needs, and help those at-risk in the process."

Sajol Ghoshal (left), CEO and president of ATS, and Chris Dupont, (CEO of Galen Data), are bringing together their technologies. Photos courtesy

These are the risks and rewards of prototyping, according to Houston expert

Guest column

We live in a digital world. Music, movies, and even family photos have become primarily digital. Computer software offers us a range of comfort and efficiency and has become part of our daily routine. So, why would anyone want to build a career around physical product development?

Simple, almost every software product or next big thing relies on a well-executed physical product development project. Apps need a place to run, games need a console to be played, and pictures need a camera to be taken.

Physical product development means dreaming of something that does not yet exist and solves an existing problem. It means taking an intangible idea and making it into a physical item that people can see, touch, and use.

The journey from ideation to creation, and then manufacturing can be difficult, but rewarding. By understanding the process, you'll find that not only is your inspiration worth pursuing, but it may be one of the most fulfilling things you will ever do.

From inspiration to perspiration

Every product development project begins with a vision, the identification of a problem and a solution for that problem. That initial spark of inspiration is what drives the entire project.

Look for a problem that hasn't been solved and solve that problem, or try the reverse. Think of a product idea, and then work backwards to find the need. Regardless, one cannot be successful without the other.

Projects require this problem, or need, because it embodies the product's target market. A product idea without a well-defined need has no reason to exist, and if it did, it would be downright perplexing.

Once you identify your need and idea, start your research.

Test the validity of your idea. How much of a market exists for your problem-solving miracle? Send out surveys, look at various markets, conduct data analyses, and generally, do everything in your power to ensure that your product should be made.

Then, start making something.

From concept to reality

The design, prototype and manufacturing stages are what bring your inspiration closer to reality. Turning it into a concrete product means letting go, and that can be scary.

Initial concept designs can be done in a variety of different ways. Detailed sketches and blueprints could be drawn up, or CAD drawings can be created. This concept design can help you explain your idea to others, including partners and investors. What works even better, though, are prototypes.

A prototype is a preliminary model of your product that can help you determine the feasibility of different aspects of your design. You can make a functional prototype, which acts as a proof-of-concept for your idea, or you may create aesthetic prototypes that will test the look and feel of your product.

Once you nail down the ideal appearance and physicality of your product, you will need to combine the two disciplines as seamlessly as possible. This performance prototype will effectively demo your final product.

Finally, you can prepare your product for production. Designing for manufacturability (DFM) means ensuring that your product can be made efficiently and cost-effectively. DFM allows you to mistake-proof your product by choosing the best manufacturing materials and methods, while keeping in mind the appropriate regulations for your desired market.

From nothing into something

The product development process often changes. Trends like crowdsourcing and innovative fast-to-market solutions constantly upend the process and make it new again. Some automakers, for example, want to innovate the design process using existing customer data — similar to how companies like Microsoft and Apple create iterative versions of their software product development projects.

Getting your product to market can be tough, but certain approaches can ease the burden. Create a simpler product. Fail fast and fail cheap with lean development, meaning limit your risk to maximize your return. Also, never underestimate the importance of customer feedback and intellectual property protection throughout the process.

With that said, invest in yourself and your inspiration, and you will avoid that nagging what if-mentality that drives regret. Great reward always requires risk, but there are also ways to invest smarter. Use available resources and give your dream the best chance for success.

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Onega Ulanova is the founder of OKGlobal.