Houston expert looks into behavioral analytics in private equity, growth equity, and venture capital

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The larger the deal, the higher the chances of failure, says this Houston expert. Photo via Getty Images

Study after study puts the failure rate of mergers and acquisitions somewhere between 70 percent and 90 percent (2011, HBR). One KPMG study narrowed the band of M&A failures to 75 percent to 83 percent (2015, KPMG). One constant in the research is that the larger the deal, the higher the chances of failure.

A FAILED MERGER, ACQUISITION, OR DIVESTITURE CAN BE UNDERSTOOD IN 2 WAYS:

Qualitative – what the companies had in mind that caused them to merge in the first place doesn't work out that way in the end.
Quantitative – shareholders suffer because operating results deteriorate instead of improve.

Deloitte's M&A Trends 2020 reports that 38 percent of PE firms cite revenue and growth improvement strategies as their primary strategy or focus area for driving value in their portfolio companies.

In the same report, EFFECTIVE INTEGRATION is key for the success of the deal. It accounts for 20 percent of a successful transaction, tied for top place with ACCURATELY VALUING A TARGET.

Post-M&A integration is defined as the implementation of changes in functional activities, organizational structures, and cultures of the two organizations to expedite their consolidation into a functional whole. Of course, this all involves people.

Moreover, Aon Hewitt research shows that:

There is a 23 percent increase in "actively disengaged employees" after a change event – even if no one's job is affected.
It takes about three years to return to pre-merger engagement levels.

With these figures, it is startling that there is not more focus on talent. Executives attribute 72 percent of their company's value to their employees, yet a mere 12 percent of companies align their talent strategy with their business strategy (Predictive Index, The 2020 State of Talent Optimization).

HOW ARE INVESTORS IN THE PRIVATE MARKET CHANGING THE TIDE?

According to Mike Zani, CEO of The Predictive Index, "When you look at the world of PE, growth equity, and to a lesser extent, VC, we are starting to see more talent officers, someone on staff to assist with strategic HR challenges with their portfolio." For example, Vista Equity has a consulting division that is solely focused on the talent and people analytics of its portfolio companies. They go beyond just finding the right executives, they have proprietary analytics tools to add value.

THERE ARE THREE USE CASES FOR ANALYTICS WITHIN THE PRIVATE MARKET:

1. Due Diligence

"One of the most powerful ways behavioral analytics are used for due diligence is understanding the strengths and blind spots of the future leadership team. It's about applying analytical rigor to the people side of the business to create a nuanced understanding of individual and team dynamics so you can be intentional about how to enable and de-risk the execution of future growth plans. We surface people challenges and opportunities early in the process so our clients can put strategies in place for effective change management and talent optimization." Heather Haas, President, ADVISA.

After signing a letter of intent, a consultant can assess the leadership team with behavioral, cognitive, and organizational assessments. In the process of evaluating leadership fit, consultants may identify gaps between the leadership abilities needed and those present in the executive team, and investors must focus attention on closing those gaps. It is much easier to suggest fixing them before the deal is closed, where investors can work with the company to create leadership development or hiring plans. If investors discover that the executive team lacks financial or operational excellence 6 months after close, it is going to be much harder to communicate that in a positive, forward-looking way.

Predictive Index isn't the only tool used for due diligence. Specialty consulting firms that provide due diligence support with people analytics include GH Smart, Green Peak Partners, Korn Ferry, and Deloitte. They use a host of tools ranging from Hogan assessments to proprietary software. "Out of the 150 PE clients with The Predictive Index," Zani says "about 1/3 are using it in due diligence regularly."

2. Post-Deal Value Creation

Effective M&A integration accounts for 20 percent of the success of a deal. As I mentioned in the last post, behavioral analytics can provide insights that allow each person to easily understand how their new team members are wired. This can drastically reduce the time it takes to build cohesion among the group and make for more effective collaboration as project teams are regularly assembled and reassembled. Put simply, instead of using our energy to try to figure each other out, we cut through the noise so we can run faster.

3. Scale

The use of behavioral analytics for hiring is nothing new. With an infusion of cash, one of the first thing a company does in response to growth goals is to hire. People data can help companies scale quickly and with confidence. Max Yoder, CEO and Founder of Lessonly shares about Predictive Index, "Now, every time we hire, we use the assessments as another tool in our toolkit. The results will never decide whether a person gets hired or not, but they do provide guidance as to whom should be in sales, whom should be in client experience, whom should sit in a quiet space, and whom thrives on commotion."

Even with such impressive results, still there are two schools of thought when it comes to how much control private market firms want to have over the operations of their portfolio companies. General Catalyst, the PE firm that invested in Predictive Index, in particular, says they don't want to be the management team. Kirk Arnold, Executive In Residence, General Catalyst says "We're very founder supportive. We invest in entrepreneurs and innovators and work to support them. We share feedback and insights with those teams – and encourage them to The Predictive Index toolset to help them scale effectively. But we don't force any of our teams to invest in any particular tool or strategy. We believe great businesses are built by great teams, and we believe that PI can help companies excel in team building – but we look to the leadership team to make those investment decisions based on their needs and culture.

Prior to becoming a Predictive Index Consultant, I spent five years integrating acquisitions. I only had access to PI for the very last year. It was so powerful in building dream teams that I wished I had known about it sooner. Areas I used PI heavily was in post-deal value creation as well as scaling. In my current practice, I spend about 20 percent of my time performing due diligence for start-ups as well as working with them to round out their team from a data-driven perspective.

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This article was written by Wendy Fong, founder and principal of Chief Gigs, and originally appeared on Liu Idea Lab for Innovation & Entrepreneurship's blog.

Houston expert: Finding your tech talent through analytics

Houston Voices

You know the work that needs to get done, and you know the environment that you want to build. How do you find the people who will build it with you? Historically, we relied on relationships, intuition, and track record when we evaluate potential team members. This is the same approach we use to find our mates, and well, the divorce rate speaks for itself.

Perhaps you know your potential partner from a previous job when you both worked for a public company, and they were a high performer. Even when we have worked with someone before and they had a great track record, things can go awry. Humans are messy beings. When factors that affect motivation (such as equity percentages, the potential for exit, working 80-plus hours a week) change, performance can be affected. The people who do really well as a cog in the wheel do not necessarily have the same drive to BUILD the wheel. So how do we pick the team members who will best suit the work and environment?

Did you know that 95 percent of people think they're self-aware, yet only 10 to 15 percent actually are (Tasha Eurich)? If people don't know themselves, how can you possibly know your potential partner's fit?

Behavioral assessments aren't new. If you've ever worked for a large company, you've likely taken one. What is different now is that The Predictive Index is harnessing the power of behavioral analytics to predict success and help us visualize teams in a whole new way. We can now look at people's work style in under 6 minutes and quickly give you data on how people will perform in their role and with your team to drive alignment in your organization.

As a founding board member and active investor in Valhalla Investment Group, we recently implemented the practice of using behavioral analytics in our due diligence. We then look at individual and team results to identify any gaps between strategy and the team's ability to execute the strategy. We specifically look at a team's appetite for risk, approach to change, and response to pressure.

The results for one startup we were evaluating came back with a potential red flag. Five of the six in the executive team were exploring leaders in the "Innovation and Agility" quadrant. These leaders are independent and comfortable with risk. We had one who was a very strong stabilizing leader in the "Process and Precision" quadrant. This person is very precise and cautious with risk. We immediately reached out to the CEO to schedule a Zoom to ask how the team works with what could be seen as an "outlier" and how they deal with the friction. The CEO understood the strengths and cautions of his team and explained that while this person is different, they are very much needed. They provide balance and contribute to areas that are blind spots for the rest of the team. The way the CEO handled the question showed us that he was self-aware enough to manage such differences and gave us the confidence to invest in this startup.

HOW IS THIS RELEVANT FOR YOUR STARTUP?

Founders

Wouldn't it be great to know potential partners' appetite for risk, how they deal with deadlines, their proactivity or reactivity to issues before you meet them? Or how they respond to pressure? Founding partners can be evaluated to ensure their behavioral drives align with the startup strategy.

For example, if the strategy is to fail fast to obtain product-market fit and grow market share quickly, founders would need to be innovative, risk-tolerant, comfortable with ambiguity, and they'd need to thrive under pressure. Conversely, if your startup serves a highly regulated environment, your founding team needs to be well-organized, careful with rules, and cautious with risk.

Team dynamics and inclusivity

Without insight into team dynamics, results are left to chance. Behavioral analytics can provide insights that allow each person to easily understand how their new team members are wired. This can drastically reduce the time it takes to build cohesion among the group and make for more efficient and effective collaboration as project teams are regularly assembled and reassembled. Put simply, instead of using our energy to try to figure each other out, we cut through that noise so we can run faster.

Lastly, by creating a job profile and looking for candidates who fit the profile, we can cut out the biases that relationship-based recruiting can introduce to an organization.

"The alignment of business strategies and talent strategies is known as talent optimization."

Talent optimization goes beyond human resources practices, management consulting, and productivity tooling to describe a model that empirically aligns strategy and people practices. It weaves talent improvement practices into the everyday workings of a company to nurture and employ a workforce that is specifically calibrated to the company's strategic objectives. The sooner we utilize people data to look at our organization, the sooner we can spot potential blind spots. Leaders can then address the issues and focus on what's most important for their startup.

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This article was written by Wendy Fong, founder and principal of Chief Gigs, and originally appeared on Liu Idea Lab for Innovation & Entrepreneurship's blog.

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7+ can't-miss Houston business and innovation events in June 2026

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Editor's note: The FIFA World Cup comes to Houston this month, joined by major energy conferences and a lineup of fan-favorite, recurring events. Here’s what not to miss and how to register. Please note: this article may be updated to add more events.

June 1-4 — CLEANPOWER 2026 Conference and Exhibition

CLEANPOWER unites policymakers, experts, and corporate leaders to solve the challenges that none can solve alone. This must-attend, four-day conference is packed with cutting-edge discussions about wind, solar, storage, and transmission; dealmaking; networking; and fun.

This event begins June 1 at the George R. Brown Convention Center. Register here.

June 2 — Humans of Healthcare

Houston Methodist Center for Innovation will present its quarterly speaker series, Humans of Healthcare. The series will feature a panel of experts who will share about their career paths and discuss the nuances of the health care industry. This month's session will focus on today’s nursing landscape, the industry’s expectations of nurses and what career paths are possible in the field.

The event is Tuesday, June 2, from 5-6:30 p.m. at the Ion. Register here.

June 9 — Greentown Go Make Kickoff

Head to the Ion to celebrate the Greentown Go Make 2026 cohort. The open-innovation program with Shell Catalysts & Technologies and Technip Energies focuses on catalytic solutions for industrial decarbonization and the energy transition. Hear pitches from the founders and network with a select group of startups while enjoying food and drink.

This event is Tuesday, June 9, from 5:30-8 p.m. Register here.

June 9-10 — Texas Brain Economy Summit

The Center for Houston’s Future and UTMB are bringing the Texas Brain Economy Summit back to Houston this summer to continue to position the region as a global leader in brain health. Expect to hear from leaders of global institutions, including the World Economic Forum, U.S. Chamber of Commerce, McKinsey Health Institute, Global Brain Economy Initiative, Davos Alzheimer’s Collaborative, Business Collaborative for Brain Health (UsAgainstAlzheimer’s), Rice University, Memorial Hermann, MD Anderson and many others. Read InnovationMap's full preview of the event here.

This event begins Tuesday, June 9. Purchase tickets here.

June 10 — MIT Future of Healthcare Technology Forum

The MIT Club of South Texas will host an in-person forum to explore how innovation, government and policy are changing the healthcare industry. The event will feature MIT alumni and Houston healthcare leaders, including Dr. Tim Boone, dean of the Texas A&M School of Engineering Medicine; Cynthia Reinhart-King, chair of bioengineering at Rice University; Dr. Tony Lin, CEO and chairman emeritus of Kelsey-Seybold Clinic; and others.

This event is Wednesday, June 10, from 5:15-8:30 p.m. at the TAMU EnMed Building. Register here.

June 11 — Goals & Gigawatts: Houston Energy & Climate Week The Power of & Kickoff Party

Come watch the Mexico City FIFA opening match while celebrating energy and innovation at the Goals & Gigawatts Kickoff Party. The event will feature food, drinks, and a showcase on Houston Energy & Climate Week. Learn what to expect and how to get involved in HECW before closing the night with a DJ and karaoke.

This event is Thursday, June 11, from 1:30-6:30 p.m. Find more information here.

June 16-17 — Energy Projects Conference & Expo

The Energy Projects Conference & Expo (EPC Show) is the largest event in North America for professionals working at the heart of major energy projects. The essential event for engineering, construction, commissioning, operations and maintenance across multiple energy sectors brings together five leading conferences under one roof. Conference subjects span LNG exporting, hydrogen and ammonia, midstream, petrochem and refining, and sustainable aviation fuels.

This event begins June 16 at George R. Brown Convention Center. Register here.

June 25 – NASA Tech Talk

Every fourth Thursday of the month, NASA experts, including longtime engineer Montgomery Goforth, present on technology development challenges NASA’s Johnson Space Center and the larger aerospace community are facing, and how they can be leveraged by Houston’s innovation community. Stick around after for drinks and networking at Second Draught.

This event is Thursday, June 25, from 6-7 p.m. at the Ion. Register here.

Houston researchers report promising first in-human trial for implantable cancer therapy

cancer breakthrough

When it comes to cancer remedies, the treatment can be as challenging for the body as its cause. But what if immunotherapy could be localized? That’s precisely what a Houston team may soon make a reality.

Rice University researchers, in partnership with MD Anderson Cancer Center, recently published their findings from the first in-human trial of an implantable cancer-fighting treatment in the journal Clinical Cancer Research. The paper details testing of AVB-001, encapsulated cells engineered to release interleukin-2 (IL-2)—a naturally occurring signaling protein that boosts immunity—in the peritoneal cavities of 14 patients. The goal is to avoid the toxicity usually experienced with less targeted treatments, as well as find a solution to IL-2s’ abbreviated half-lives.

“Traditional IL-2 therapy has shown potent antitumor activity, but its clinical use has been limited by severe side effects and delivery challenges,” Omid Veiseh, director of the Rice Biotech Launch Pad, professor of bioengineering at Rice and a senior author on the study, said in a press release. “This platform allows us to localize and sustain cytokine exposure directly where tumors reside while minimizing systemic toxicity.”

Serous ovarian carcinoma is especially well-suited to the use of AVB-001 because it tends to spread throughout the abdomen. After a minimally invasive laparoscopic procedure, patients implanted with the cells were noted to tolerate the treatment well. Half of the enrolled patients’ cancer was stabilized, with several among them reporting extended signs of benefit. No maximum tolerated dose was reached and there were no life-threatening events tied to the study.

If that sounds like less-than-earth-shaking results, this is only the beginning. The capsules were implanted for about one week because IL-2 activity drops off after that. The researchers now know that further testing should include either higher levels, repeated doses, or a combination thereof, in order to create stronger advances.

The team has already made early headway on this next step. Preclinical studies in nonhuman primates were not only tolerated well, but without added toxicity, the apes had consistent pharmacological effects.

“This is a foundational step,” Veiseh explained. “We now have evidence that the platform is safe, biologically active and potentially scalable. The next phase is optimizing dosing and exploring combination therapies to unlock its full clinical potential.”

The combination would also include a checkpoint inhibitor, which might improve AVB-001’s tumor-fighting power. “What is exciting is that we are not just delivering a drug, we are programming a microenvironment,” added Dr. Amir Jazaeri, professor of gynecologic oncology at MD Anderson, member of the Rice Biotech Launch Pad’s clinical advisory board and a senior author on the study. “This opens the door to combination strategies that could amplify immune responses in ways that have not been feasible before.”

5 must-read innovation headlines: Pharma giant considers Houston hub + more

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Editor's note: With May coming to a close, it's time to look back at the biggest innovation headlines for the second half of the month. Major moves were made in May, with NuScale Power entering the market, Persona AI inking a deal with Under Armour, and a pharma giant considering Houston for its next manufacturing hub. Here are the most-read InnovationMap stories published May 15-29, 2026:

1. Pharma giant considers Houston for $1 billion manufacturing campus

Another pharmaceutical giant is considering Houston’s Generation Park for a manufacturing hub. According to a recent filing with the Texas Jobs, Energy, Technology and Innovation (JETI) program, Bristol Myers Squibb Co. is considering the northeast Houston management district for a new $1 billion multi-modal pharmaceutical manufacturing campus.

2. Modular nuclear reactor co. NuScale Power moves into Houston market

The nuclear energy renaissance continues in Texas with an announcement by NuScale Power. The Oregon-based provider of proprietary and innovative advanced small modular reactor (SMR) nuclear technology announced in April it would be opening office space in Houston’s CityCentre.

3. Persona AI teams with Under Armour to protect next-gen robots

Houston-based Persona AI has cemented a partnership with sportswear manufacturer Under Armour to provide materials to protect future robots operating in dangerous conditions. Through the partnership, Persona AI and Under Armour will launch a research initiative to explore whether advanced performance textiles can improve the durability and resilience of humanoid robots operating in harsh industrial environments.

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

Houston-based Casimir has emerged from stealth with a $12 million seed round to commercialize its quantum energy chip. The round was led by Austin-based Scout Ventures. Lavrock Ventures, Cottonwood Technology, Capital Factory, American Deep Tech, and Tim Draper of Draper Associates also participated in the round. The oversubscribed round exceeded the company’s original $8 million target.

5. Global summit spotlights Houston's growing role in brain health, innovation

The Center for Houston’s Future and UTMB are bringing the Texas Brain Economy Summit back to Houston this summer to continue to position the region as a global leader in brain health. The summit, held June 9-10 at the Texas Medical Center's Helix Park, will bring together more than 500 executives, researchers, policymakers and innovators from around the world to discuss the global brain economy.

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