Data Gumbo CEO discusses Houston's startup ecosystem and goals for his company

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Andrew Bruce had the idea for Data Gumbo when he realized how difficult it was to share data in upstream oil and gas. Courtesy of Data Gumbo

For Andrew Bruce, an oil and gas professional and entrepreneur, there's nothing like Houston.

"I've lived in Boston, New York, and London, and I've spent a lot of time in Norway," Bruce says. "They are all wonderful places, but I've never experienced anything quite like Houston."

After a long career in oil and gas, Bruce found himself a victim of the oil downturn. Once laid off, he decided to focus on a new idea for a way to provide access to upstream oil and gas data to companies. He founded Data Gumbo Corp., a blockchain-as-a-service company based in Houston, in 2016. The company closed its seed round last year and is moving toward a series A.

While Bruce credits his trajectory from laid off to startup CEO to a lot of hard work and a bit of blind luck, he says that Houston's people and the help they are willing to provide has been extremely beneficial to the growth of Data Gumbo.

"I'm just brainstorming, but I think a lot of [what makes Houston great for startups] comes from the fact that we all recognize the cyclical nature of the oil and gas industry, we are obligated to look out for each other even when people are laid off," Bruce says. "Maybe it comes from that kind of recognition that we're all in this together and we have to try to work through it."

InnovationMap: Tell me a little bit about your background.

Andrew Bruce: Started out as a programmer, and was transferred from New York City to Houston to build a consulting practice for financial systems. My background originally in London was building systems for the deregulation of banking industry that was happening in the mid 80s.

When I came to houston, I got involved in energy trading systems. I built a small software startup, and eventually got involved in National Oilwell Varco and the drilling business. As part of that, I kicked off a program called NOVOS to build an autonomous drilling rig. Came across the challenge of not having access to data for that rig. Data Gumbo was a direct result of that.

I started Data Gumbo to solve the problem of not being able to get data from industrial installations. Along the way, I came across the opportunity for blockchain because the real problem people were trying to solve was mistrust and inefficiency of the process. I stumbled into blockchain kind of backwards.

IM: How does Data Gumbo work?

AB: The whole idea is to build out the blockchain network, and provide a network that they can subscribe to and start doing business on that network. It's a service, so there's a subscription fee. It gives them access to the savings they already have available within their organizations.

IM: Who are the type of customers you're looking for?

AB: Midstream and upstream oil and gas companies, and the service companies that serve them.

IM: What was the reception like at first?

AB: Difficult. We got a lot of questions and concerns about what blockchain is, why they need it, and whether or not they can trust it. We were introducing a completely new concept to a conservative industry.

IM: What were some challenges and opportunities?

AB: No. 1 is the Operators Blockchain Consortium, which was 19 different oil companies coming together to understand blockchain and its opportunities. That's helped. And 75 percent of our early calls were sort of evangelism of explaining blockchain and how it's different from cryptocurrency. So, it was an educational process. The industry was independently going down the road of understanding the technology. And, to be perfectly honest, it was a bit of blind luck that we chose this technology that the industry was getting behind anyways.

IM: What doors does your recently closed seed round open?

AB: Now we're pursuing a series A equity round. Seed was a bridge to equity funding. It was primarily individuals in town who got behind the company and believed in what we were trying to do. They helped open some doors, but primarily it was financing to get us to series A and prove the concepts from a sales and product market fit perspective.

IM: What are you long-term goals for Data Gumbo?

AB: To take the company public and to remain independent. We believe that we want to provide a service to the customers that is independent from any other offers. We want to stay true to our roots and be a blockchain network infrastructure people can trust and rely on for not just upstream oil and gas, but also getting into trucking and shipping and other adjacent industries so we can satisfy the whole supply chain.

IM: How is it being located in Houston?

AB: Houston's startup community has been amazing. When we started this journey, it had been a while since we had any entrepreneurial contacts, so it was basically like starting from scratch. Organizations like Station Houston and, later on, The Cannon helped provided great contacts. People from those organizations — and the business community as a whole — has been really generous with their time. Houston is probably second to none when it comes to people's willingness to help.

IM: What does Houston still need to work on as an innovation ecosystem?

AB: I don't think it's Houston specifically, but a generalization is that large corporations are set up to buy from large corporations. As a small company or startup to sell to a super major is difficult because the sales cycle is so long and the requirements are set up to buy from other large companies. If there was a way for creating an entrepreneurial division of these companies so that they can experiment with and support startups, that would be tremendous. If you're a startup, you should be focused on sales, but cracking that nut within a large company is really hard.

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

AB: People. I've viewed my roles with a huge responsibility. There are people who make a bet on a company, whether they be investors or employees, and you've got to be able to fund the company. So, whether it be through sales revenue or fundraising, making payroll and building a company that people can get a return on their investment is a huge responsibility. So, that's what keeps me up at night — making sure that I'm repaying people's faith in what we're doing.

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Portions of this interview have been edited.

Christopher Robart leads Ambyint — a technology company creating the Nest thermostat for oil rigs — with his twin brother, Alex. Courtesy of Ambyint

Oil and gas startup exec positions Houston company for more growth in 2019

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Most of Christopher Robart's 10-year career in oil and gas has been deliberate and calculated — researching the right startup to be involved in or finding the right buyer for a company he invested in. However, his actual start in the industry wasn't so intentional.

"I sort of fell into oil and gas after I got of college back in 2003," says Robart, who is the president of Ambyint USA. "Before that, I was involved in a few startup things — some digital and some not. I was always sort of an entrepreneur."

Robart shares the passion of entrepreneurialism with his twin brother, Alex, CEO of Ambyint. The two have similar work experiences, since they act as an oil and gas startup team in Houston. One of the first companies the duo bought and sold was PacWest Consulting Partners, which was sold to IHS Energy in 2014, Robart says. The second one, Digital H2O, they founded, grew the team, lead some investments, and sold it to Genscape in 2015.

The pair's newest endeavor is Ambyint, an oilfield smart technology company with Canadian origins. The Robart brothers have been involved in it for about two and a half years.

Christopher Robart spoke with InnovationMap about his career and what he hopes to accomplish with his oil and gas startup in 2019.

InnovationMap: How did you and your brother first get involved in Ambyint?

Christopher Robart: After we left IHS, we knew that our next up was going to be software and upstream oil and gas, but there were a lot of question marks. We did our due diligence. We leveraged all that information we found and settled on which market we wanted to be in. We ended up finding Ambyint and liked what they had built to date, but they had some gaps and shortcomings, particularly on the commercial side, and they had no U.S. presence. We thought those two gaps were something we'd be helpful filling out. We went through a fairly lengthy process to lead an investment into the company, and essentially took over through that process.

IM: So, Ambyint still has an office in Canada?

CR: The Canada office is primarily a technology office, with some sales capabilities up there. The U.S. is primarily sales, marketing, and customer support.

IM: How does the technology work?

CR: The easiest way to explain it is we're like a Nest thermostat for your oil wells. It's a piece of hardware and a piece of software. It's wired into the well's control system and tied up to cloud-based software. From there, we've been deploying artificial intelligence, machine learning, deep learning, etc.

IM: What do you look for in customers?

CR: Oil companies of any shape or size, really. Oil and gas industry aren't really known for being early adopters of technology. There's a lot of resistance to change, particularly at the production level, which we focus on. So we're looking for early adopters looking to lead the way.

We're in pretty much all the major oil-producing areas in the U.S. and Canada. We also have customers in Mexico, Chili, and Egypt. There's a few more countries in the Middle East we're trying to get into.

IM: Are you planning another fundraising round?

CR: We'll embark on a series B in the near future. We closed our series A, and it was pretty large, so we're in a good place. (The series closed in September of 2017 with $11.5 million raised, according to Crunchbase.)

IM: What are your goals for 2019?

CR: We've built a lot of cool technology, and we continue to do that. Our focus for 2019 is to continue to commercialize and expand our customer base. Our sales cycle is pretty long. It could be a year from the time we bring an initial lead to the table, running a pilot, getting results, and developing a plan. It's a long, slow, and, in some cases, a painful process.

When you're doing things like machine learning, you're teaching a machine how to do something a human would do something. What's required to do that is a massive amount of data to start, and from there, it's a never ending journey of data collection and monitoring your accuracy.

We've been focused on one specific artificial lift pump — every well will eventually take a piece of artificial lift pump. We work on the most common artificial lift pump, but it's just one of six key types. In addition to selling more of that pump, we are in the process of expanding to additional lift types.

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

CR: Change management. Getting our customers to adopt new technology and embrace change. That's it. We're constantly trying to get our customers to move more quickly.

IM: How do you and your brother work together? Do you each play different roles in the company?

CR: Our backgrounds are similar. We're twins, but we have personality differences. I spend a little more time with our customers than he does and with new product initiatives. I get pretty hands on.

His mandate is less focused on walking and talking with customers and more on managing the functions of the business and working with the leadership team. As well as financing and fundraising.

We've got a pretty good division of labor, but there is a lot of overlap of what we do.

IM: What are some of the pros and cons of being in Houston?

CR: Obviously the pro of being in Houston is it being the oil capital of the world. All our customers are here. It's sort of a must.

The downside of running a technology company in town is that tech talent is quite thin on the ground in Houston — especially what we're looking for. So, we don't have any tech team members in the Houston office. I'll put it mildly in that we are skeptical of the talent pool for really strong software developers in the Houston market.

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Portions of this interview have been edited.

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Houston healthtech startup raises $30M to scale surgical healing gel

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Houston-based healthtech startup TYBR Health has raised a $30 million Series A round to scale its B3 GEL System, which helps protect tendons from scarring after surgery.

The round was led by Minneapolis-based Vensana Capital and Cleveland-based Mutual Capital Partners, with participation from Denver-based Neovate Capital Partners and existing investors, according to a news release from the company.

TYBR Health said it plans to use the funding to broaden the B3 GEL System's clinical applications, expand commercialization and conduct studies to evaluate its ability to protect tissue and improve healing outcomes.

"Surgeons are exceptionally good at the structural repair, but the biology that follows is what determines how it heals. That part of the equation has gone largely unaddressed ... There's a shift underway across surgical specialties, from focusing almost entirely on the mechanical repair to also weighing the biological conditions that repair needs to succeed," Tim Keane, co-founder and CEO of TYBR Health, said in the news release. "This financing lets us reach more surgeons and generate the clinical evidence to move that shift forward."

As part of the financing round, Greg Banker of Vensana Capital and Liz Todia Zambory of Mutual Capital Partners will join the TYBR board, alongside independent director Aaron Smith.

"TYBR Health is addressing a gap surgeons have lived with for a long time, with a product that fits the way they already work," Zambory, principal at Mutual Capital Partners, added in the release. "We're excited to co-lead this round and support the company's growth."

TYBR was founded in 2020 and originated from the TMCi’s Biodesign fellowship and participated in the TMC's Accelerator for HealthTech. Its B3 GEL System is a flowable extracellular matrix hydrogel designed to protect tendons, ligaments, muscles, and the surrounding soft tissue while they heal from orthopedic surgery. It received FDA 510(k) clearance last June and launched an Australian clinical trial in the fall.

The B3 GEL System has been used in hand, wrist, shoulder, foot and ankle, and sports medicine procedures since it launched, according to the company, and was first used in the clinical setting earlier this year by Dr. Tammam Hanna with Texas Tech University Health Sciences Center.

Houston space companies win NASA funding to build Mars exploration robots

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Two Houston-area spacetech companies have landed a portion of a $17 million award from NASA to develop robots for exploring the surface of Mars, the agency announced this month.

Houston-based Inuitive Machines and Webster, Texas-based MEI Technologies, which does business as Aegis Aerospace, were among the seven companies selected to receive the funding from NASA's Science Transport and Robotic Innovation for Deployment and Exploration (STRIDE) initiative.

According to the release from NASA, the companies are tasked with creating "innovative mobility systems" that would allow future Mars missions to access more challenging terrain and difficult-to-reach regions of the planet, and to travel farther distances. NASA estimated that the work will begin this fall.

NASA solicited proposals for participants in the STRIDE initiative in January. The seven named companies are the first selected to participate in the program.

The additional five companies to receive STRIDE funding include:

"STRIDE demonstrates NASA’s commitment to strong public-private partnerships, allowing the agency to explore new approaches for Mars surface exploration while identifying key capability gaps and development needs for commercial systems that could operate and traverse realistic Martian environments," NASA shared in the announcement.

Last month, Intuitive Machines was awarded $148.3 million to deliver its Nova-C lander to the moon. The funding was part of $600 million the space agency awarded to three companies as part of its Moon Base Program and was Intuitive Machines' sixth task order under NASA's Commercial Lunar Payload Services (CLPS) program. Astrobotic was also one of the companies to land funding for the Moon Base program, as well as Austin-based Firefly Aerospace.

Around the same time, Firefly Aerospace was awarded a $13 million subcontract from NASA’s Jet Propulsion Laboratory to develop technology for NASA’s SkyFall mission to Mars. The mission aims to deploy three Mars helicopters to "perform science and demonstrate airborne subsurface mapping and resource prospecting on the planet." Read more here.

SpaceX launches Starship test flight with most advanced Starlinks to date

Out in Space

SpaceX’s mammoth Starship rocket blasted off Friday, July 24, on another test flight stretching halfway around the world, this time releasing 20 of the most advanced Starlinks.

Towering 407 feet, Starship soared from the company’s base at the southern tip of Texas. NASA monitored the space-skimming flight, a critical step toward using the Starship as a lunar lander for moon crews.

The hourlong journey ended with a splashdown so soft that the spacecraft remained afloat in the Indian Ocean as the SpaceX webcast drew to a close, drawing cheers from employees back at the launch site.

Elon Musk’s SpaceX had replaced six of the 33 engines on the first-stage booster after they failed to ignite earlier in July, resulting in a last-second launch abort. The previous Starship flight in May also experienced engine trouble, which prevented the booster from making a controlled return.

This time, all of the engines fired at liftoff, but not enough of them lit back up for the booster's return, causing it to descend too fast and slam into the Gulf of Mexico. The spacecraft continued soaring eastward, popping out the Starlinks one by one 124 miles up before reentering.

It was the 13th flight of the world’s biggest and most powerful rocket, and the second this year of the new version dubbed V3. Like the previous demo, neither the booster nor spacecraft was meant to be saved, instead plunging into the sea.

The stainless steel, retro-looking spacecraft hovered upright over the Indian Ocean before lowering into the water, more than 10,000 miles from where the flight began.

It was the best reentry yet, according to SpaceX, with the intact booster floating amid just a few flames. Previous flights ended with the spacecraft engulfed in flames and exploding at splashdown — or rupturing in midair.

“We're really pumped about this,” said SpaceX engineer Kate Tice, calling it “lucky flight 13.”

The Starlinks accomplished all their jobs before reentering over the Indian Ocean.

After being ejected from the Starship’s Pez-like dispenser, the Starlinks managed to communicate via lasers with older Starlink models already in orbit. With more than 10,000 Starlinks currently providing internet, SpaceX boasts the world’s largest satellite constellation.

Six of the newly launched Starlinks carried cameras that photographed Starship’s heat shield at flight's end, beaming back amazingly crisp shots even as the spacecraft bobbed in the ocean. The heat shield was also equipped with sensors to measure the extreme pressure placed on the spacecraft during launch. Most of the heat shield’s thermal tiles were black, but some were deliberately painted white to simulate missing tiles, part of an experiment to test the shield’s robustness.

"We got all the heat shield data we needed and then some!" Musk said on X.

NASA Administrator Jared Isaacman offered congratulations. “Excited for what will be learned from this mission,” Isaacman noted on X.

SpaceX wants to make sure Starship’s heat shield can withstand the heat of entry before trying to return it to the Starbase launch pad near the Texas-Mexico border. The company already has used a pair of giant mechanical arms at the pad to capture a Starship booster. The company plans to do the same with the actual spacecraft, which is designed to be totally reusable.

NASA needs Starship to wrap up testing and reach orbit soon so the Artemis III astronauts — three Americans and one Italian — can practice docking their capsule with it next year.

Starship is also the vehicle with which Musk intends to build a city on Mars. He's already booking tourist trips to Mars, as well as the moon.

The latest test flight was delayed first by the July 16 launch abort, then again July 23 by thick clouds from Tropical Storm Bertha.

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