Out in the oilfields, most of us notice the big derricks slowly pumping away.
But it's in the trailers that surround it and in corporate offices where some of the most impressive tech advances in the industry are taking place.
Novi Labs, a 5-year-old software startup that uses artificial intelligence to help plan oil and gas wells and maximize returns, is among the tech startups poised to help improve and capitalize on a sector known for its old school ways.
To help bring its software to more clients, the Austin-based company announced Wednesday it has raised $7 million in Series A funding and named a new CEO, Scott Sherwood, who was previously CEO of Packet Design.
The funding comes from Cottonwood Venture Partners, a Houston-based firm that has invested in several other oil and gas tech startups, including Austin-based MineralSoft, and Bill Wood Ventures, which is led by the former Austin Ventures and Silverton Partners general partner.
"Austin has evolved into an important hub for oil and gas innovation, and I am excited about the opportunity to empower top innovators like Novi with the resources, talent, and support needed to thrive in this industry," Wood said in a news release.
Novi will use some of its funding to hire product development, sales and customer care staff in Austin.
Its founder and former CEO, Jon Ludwig, is becoming president of the company as Sherwood takes the helm as CEO.
Novi's funding comes just a few months after Austin-based RigUp, which has a marketplace for on-demand services and labor for oil and gas operations, raised $60 million in new funding. Meanwhile, Austin has continually added to its roster of startups working on new solutions for the industry. Those include RunTitle, which provides mineral ownership data; MineralSoft, which provides mineral investment management; Drillinginfo, which provides industry insights; and HyperSciences, which uses jet propulsion for drilling and other industries.
