it's 'zon

Amazon announces another fulfillment center in the Houston area

Amazon has announced where its latest Houston-area fulfillment center is going to be. Photo by Natalie Harms/InnovationMap

Amazon.com Inc. has expanded its presence in the greater Houston area with the announcement of its latest fulfillment center in Missouri City,. Expected to open in 2021, the new one million square-foot center will create over 500 new full-time jobs.

"We're excited to be expanding our network of operations in Missouri City," says Alicia Boler Davis, Amazon's vice president of global customer fulfillment, in a press release. "We are grateful for the strong support we've received from local and state leaders as we broaden our footprint throughout Texas. Every day at Amazon, incredible employees come together to deliver magical experiences for customers and we look forward to creating over 500 jobs for the local community, with industry-leading pay and comprehensive benefits starting on day one."

While Amazon has opened a few fulfillment centers over the past several years — including some equipped in automation and robotics — the new location will focus on bulky or larger-sized customer items such as patio furniture, outdoor equipment, or rugs, according to the release.

According to Missouri City Mayor Yolanda Ford, this deal represents the city council's priority of expanding the economic base and "moving Missouri City's economy forward into the future."

"Missouri City and Amazon are alike when it comes to success, diversity, customer service and community. We are looking forward to this new business model, which focuses on customer service and expands the economy as this is another partnership that will build on our commercial tax base, helping to ease the property tax burden on residents," says Mayor Ford in the release.

Per the release, Amazon has created more than 43,000 jobs in Texas since 2010 with an estimated economic impact of more than $18.8 billion to the state.

According to city leadership, this is just the first step in what they hope is a long relationship between Missouri City and Amazon.

"We welcome Amazon to Missouri City and are excited that this piece of the City's long-term economic development plan has come to fruition," says City Manager Odis Jones in the release. "Our teams have been working hand-in-hand the last few weeks to finalize the deal and we are looking forward to continuing our corporate-community partnership with this industry giant for years to come."

Trending News

Building Houston

 
 

2020 brought over $700 million in venture funding deals into Houston, and startups saw larger deals in the first half of the year with a growing interest in angel activity. Image via Getty Images

Houston startup's venture capital deals continue to grow in 2020, according to a new report from Houston Exponential. Last year, VC dollars were up, while deal count was down, representing more mature deals coming into the ecosystem — but the second half of the year was defined by a growth in angel investment interest.

The report by Serafina Lalany, chief of staff for HX, found that the Bayou City brought saw $715 million across 117 VC deals, according to Pitch Book data. It's the fourth year Houston has seen VC growth, and last year the city reported over $563 million across 168 deals.

"Houston has put concerted efforts into building its innovation ecosystem," says Harvin Moore, president of HX, in a release, "and 2020's record-breaking results show we are seeing not only resilience in the tech sector, but a significant increase in the rate of formation and success of growth-stage companies, which have an outsized effect on our local economy in terms of high paying job potential and Houston's increasing attractiveness as a great place to work."

Last August, HX published a report on the first half of the year and that study found that Houston — facing the challenges of both the pandemic and the oil price drop — managed to see a 7 percent increase in funding compared to the national average of 2.5 percent. With the second half of the year, the city's VC increase from last year was over 25 percent and up 252 percent since 2014.

The other difference between the first and second halves of the year for Houston VC was the stages of the deals made. Most of Houston's larger deals took place in the first and second quarters — and even the beginning of Q3 — of 2020:

But the second half of the year seemed like Houston's earlier stage VC activity returned, and Blair Garrou, managing partner at Houston-based Mercury Fund, confirmed this to InnovationMap on the Houston Innovator's Podcast in December.

"Seed rounds have definitely bounced back. We're seeing a lot of seed activity, because there's been a lot of seed funds raised," Garrou said on the podcast, adding that he's observed an increase in angel investment interest. "People are realizing that money is in innovation and tech — especially in software."

In her report, Lalany found that in Houston, angel investments are out-pacing seed, creating a "competitive environment."

"The addition of multi-stage and nontraditional investment firms into the arena has created upward pressure in deal valuations and sizes. The average seed round in 2015 was $1 million, whereas today it's double that," the report reads. "With these firms turning inward to focus on protecting their current investments at the start of the pandemic, the propensity for smaller, more riskier investments have declined."

Stephanie Campbell, managing director of the Houston Angel Network, said she's seen a rise in new membership for the organization. Last August, she was on track to get to 150 members — up from just 60 in 2018.

"Despite COVID, we've continued to grow," Campbell told InnovationMap, adding that she's heard investors express that they have more time now to dive in. "People are very much still interested in learning about deploying their capital into early-stage venture. They're looking for a network of like-minded individuals."

In contrast to this early stage activity, the VC activity that was still occurring was defined by larger deals. With VC essentially halting in March and April — especially in cities like Houston, Garrou adds — it makes sense that investors wanted more "sure things" and would invest more funds into companies they already know, versus being able to source new deals in person.

"When you go to later stages, there are a lot fewer deals going on," Garrou continues on the podcast. "Now, there may be larger investments being made, but I think they are into fewer companies, and I think that's just due to the the pandemic and the ability just to not be able to do face-to-face."

As Houston moves through 2021, the city is poised well for more growth and a continued diversification from just oil and gas, as Moore says in the release.

"Houston Exponential was created four years ago by civic and business leaders to deal with an existential problem: our dependence on the energy and medical sector without a thriving startup culture to lead us towards a future that will look very different from the past," he says. "COVID and the de-carbonization movement have made that need much more urgent — it's both a huge challenge and an enormous opportunity."

Trending News