Mike Francis, CEO & Co-Founder, NanoTech Materials

Invest: sat down with Mike Francis, CEO and co-founder of NanoTech Materials, to discuss the company’s mission to enhance energy efficiency and fire protection through innovative nanoparticle technology.

Could you give us a quick overview of your mission, approach, and history?

I started out in the corporate world here in Houston, and for the last 10 years, I’ve been running my own companies. This is my fourth company, and I’ve had a couple of successful exits along the way. Our mission is quite simple: we provide fire-mitigating coatings for fire-prone states through our patented insulative ceramic particle. We work extensively with the Department of Transportation in California and in the built environment. When our particle is incorporated into building materials, it helps block heat, reducing energy consumption. For example, by coating a roof, we can significantly lower a building’s HVAC energy use. Essentially, our focus is on thermal management — keeping heat in or out — for energy efficiency and fire protection.

Over the past 12 months, have there been any major highlights for Nanotech Materials in terms of product development, market expansion, or partnerships?

We actually started in a two-car garage and have since gone through multiple funding rounds, primarily backed by Houston and Texas investors, which is rare in the hard-tech space. Unlike software, everything we do takes more time. We were part of Halliburton Labs’ clean energy program as their first startup and were also involved with Rice University’s clean energy initiatives. Just last year, we transitioned from the garage and our time at Halliburton to a 43,000-square-foot facility, where we can now produce enough coating to cover 50 million square feet annually. That shift — from three people in a garage to a full-scale operation — has been a significant milestone.

What makes Houston such a great place for your business?

Houston is fantastic. It offers a strong infrastructure and was home to many of our first customers. The city has a gritty, engineering-focused workforce, especially in hard tech and energy. With top universities like Texas A&M, Rice University, and the University of Houston nearby, there’s a continuous pipeline of talent. Plus, the presence of Fortune 500 companies and incubators like Greentown Labs and Halliburton Labs creates an environment where startups like ours can thrive.

Considering your rapid growth since starting in a garage, how do you see demand for your products evolving?

We have a platform technology that can be integrated into various building materials like paints, resins, and windows. The main function is heat management. We started with roofing because it offered a clear market opportunity. From there, we’ve expanded into walls, windows, and other parts of the building envelope. We’re particularly excited about our work with the California government on fire protection for critical wooden infrastructure (bridges, tunnels, retaining walls), to protect lives and property. The goal is to create both emergency response solutions and permanent fire prevention measures. Our mission — enhancing energy efficiency and fire protection — helps attract top talent because people are motivated to work for a purpose-driven company.

What major advancements are you seeing in technology, and how is NanoTech staying ahead?

The next wave is the combination of hard tech and soft tech. We’ve built an AI and machine learning platform that allows us to prototype virtually using digital twins. This system simulates our materials’ performance in real-world conditions with actual weather data. We can test new materials within minutes instead of waiting months for field tests. The AI can even interact with the infrastructure, providing insights through conversational interfaces — basically, you can talk to your walls to learn how to improve efficiency. This fusion of software and hardware drastically shortens our product development cycle.

What steps are you taking to incorporate sustainable practices into your operations?

Sustainability is central to everything we do. We source materials locally to reduce emissions from transportation. Since nearly 40% of U.S. CO₂ emissions come from heating and cooling buildings, we focus on retrofitting structures with energy-efficient coatings to reduce that demand. By lowering HVAC energy use by 30% to 50%, we can significantly reduce the carbon footprint of existing buildings. We also use our own technology in our facilities to minimize our environmental impact.

What are the biggest challenges you are currently facing?

Our biggest challenge right now is scaling the team. We’re fortunate to have the technology and a massive market opportunity. We have a broad swath of corporate investors, including Fortune 500 companies, venture capitalists, and even a few billionaires. But technology alone isn’t enough; you need great people to execute the vision. As we grow from 20 to over 100 people, maintaining a culture of ownership and innovation is crucial. Houston is a great talent pool for this, given the city’s deep roots in energy and engineering.

What are your top priorities for the next two to three years?

Our priority is not to lose sight of our mission as we grow. Scaling the company while preserving our purpose-driven culture is essential. It’s easy to get distracted by operational complexities as you expand, but we want to remain focused on delivering innovative, impactful solutions. Our goal is to continue hiring talented people who share that sense of purpose and commitment to energy efficiency and fire protection.

How would you describe your company culture?

I’m passionate about building things, and I want everyone on the team to feel like a founder within their domain — whether it’s marketing, R&D, or operations. We foster a startup mentality that encourages risk-taking, learning from mistakes, and taking ownership. In a small company, you often have to wear multiple hats, and that flexibility is part of what makes us agile and innovative.

How do you see demand for heat and insulation technology evolving over the next decade?

Thermal management will be critical in the coming years. Energy efficiency plays a fundamental role in addressing global challenges. If we can reduce energy consumption in buildings by even 30% to 50%, we’ll significantly impact CO₂ emissions. This, in turn, makes energy more accessible to underserved areas worldwide. Our mission is to create solutions that can scale globally, providing efficient, affordable energy solutions to communities everywhere. Houston’s ecosystem, with its energy expertise and innovative spirit, gives us the resources and network to help drive that transformation.