Austin's Novi Labs raises $7 million for growth, names new CEO

Austin American-Statesman |

--Austin-based Novi Labs, which makes technology for oil and gas companies, announced Thursday that it has raised $7 million in its latest funding round.

Founded in 2014, Novi Labs uses artificial intelligence-based software to analyze the economic returns of unconventional shale wells. Houston-based Cottonwood Venture Partners and Austin-based Bill Wood Ventures led the Series A funding round.

The startup said it plans to use the funds to scale its technology team and invest in the next generation of its well planning technology.

Novi Labs also announced Thursday that Scott Sherwood, former CEO of Packet Design, has been named as the company's new CEO.

"Novi is the clear leader in leveraging machine learning to optimize unconventional oil and gas development," Jeremy Arendt, managing partner of Cottonwood Venture Partners, said in a written statement. "We are excited to increase our investment in Novi and we welcome (Sherwood) to the team, who has already proven critical to the company's scalability."

Sherwood said the funding round gives Novi Labs the ability to establish the company as a technology leader.

"We are truly grateful for the vote of confidence and funding from Cottonwood Venture Partners and Bill Wood Ventures for fueling Novi's continued success and accelerating the adoption of Novi's cost-optimizing technology at such a crucial time in our industry," he said.

Earlier this year, oil and gas technology startup RigUp landed $15.8 million. The company, founded in 2014, has built an online platform that connects oil and gas companies and service companies.


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