by the numbers

Houston makes top 10 list for major metros based on startup growth

A new report finds both Houston and Texas rank highly based on startup creation. Photo by Tim Leviston/Getty Images

Houston is a bustling hub for startup activity — and the numbers don't lie.

A new ranking from real estate investment marketplace Roofstock places Houston at No. 10 among the major U.S. metro areas with the highest rates of startup formation. Roofstock's ranking, based on data from the U.S. Census Bureau, puts the Houston area's startup formation rate at 9.48 percent. The startup formation rate refers to the number of new businesses in a given year divided by the total number of businesses.

Here's the other Houston startup data cited by Roofstock:

  • Annual number of startup formations: 9,214
  • Annual number of jobs created by startups: 55,475
  • Number of jobs created by startups as a share of all new jobs: 14.44 percent

"In the past years, Houston has seen a massive burst in its startup ecosystem. … Houston is one of the best places in the United States for entrepreneurs to launch and grow a business," Houston-based app developer Bixlabs says.

As a matter of fact, the Houston area's ratio of new business founders to total business founders stood at a healthy 21 percent as of December 2020, according to career website LinkedIn. Houston was sandwiched between Salt Lake City (26 percent) and Dallas-Fort Worth (20 percent). Also in 2020 and 2019, Houston ranked sixth on a list published by residential real estate platform Clever of the most affordable U.S. metros for startups.

"Considering Houston's metro is tied with San Antonio's for the highest average investment in small business, and the proximity to great food, the Gulf of Mexico coast, and attractions like Minute Maid Park and the NASA Space Center, we would definitely suggest considering starting a business here," Clever says.

Two other Texas metros appear on Roofstock's list — Austin at No. 3 (startup formation rate of 10.61 percent) and Dallas-Fort Worth at No. 5 (startup formation rate of 9.82 percent).

Here's the additional data for the Austin metro area:

  • Number of annual startup formations: 3,858
  • Number of annual new jobs created by startups: 21,357
  • Number of jobs created by startups as a share of all new jobs: 16.49 percent

Here's the additional data for the Dallas-Fort Worth metro area:

  • Number of annual startup formations: 10,731
  • Number of annual new jobs created by startups: 69,696
  • Number of jobs created by startups as a share of all new jobs: 15.11 percent

The Las Vegas metro area holds the No. 1 spot on the Roofstock list, with a startup formation rate of 11.44 percent.

Trending News

Building Houston

 
 

With Clutch, connecting brands with creators has never been easier and more inclusive. Photo courtesy of Clutch

An app that originally launched on Houston college campuses has announced it's now live nationwide.

Clutch founders Madison Long and Simone May set out to make it easier for the younger generation to earn money with their skill sets. After launching a beta at local universities last fall, Clutch's digital marketplace is now live for others to join in.

The platform connects brands to its network of creators for reliable and authentic work — everything from social media management, video creation, video editing, content creation, graphic design projects, and more. With weekly payments to creators and an inclusive platform for users on both sides of the equation, Clutch aims to make digital collaboration easier and more reliable for everyone.

“We’re thrilled to bring our product to market to make sustainable, authentic lifestyles available to everyone through the creator economy," says May, CTO and co-founder of Clutch. "We’re honored to be part of the thriving innovation community here in Houston and get to bring more on-your-own-terms work opportunities to all creators and businesses through our platform.”

In its beta, Clutch facilitated collaborations for over 200 student creators and 50 brands — such as DIGITS and nama. The company is founded with a mission of "democratizing access to information and technology and elevating the next generation for all people," according to a news release from Clutch. In the beta, 75 percent of the creators were people of color and around half of the businesses were owned by women and people of color.

“As a Clutch Creator, I set my own pricing, schedule and services when collaborating on projects for brands,” says Cathy Syfert, a creator through Clutch. “Clutch Creators embrace the benefits of being a brand ambassador as we create content about the products we love, but do it on behalf of the brands to help the brands grow authentically."

The newly launched product has the following features:

  • Creator profile, where users can share their services, pricing, and skills and review inquiries from brands.
  • Curated matching from the Clutch admin team.
  • Collab initiation, where users can accept or reject incoming collab requests with brands.
  • Collab management — communication, timing, review cycles — all within the platform.
  • In-app payments with a weekly amount selected by the creators themselves.
  • Seamless cancellation for both brands and creators.
Clutch raised $1.2 million in seed funding from Precursor Ventures, Capital Factory, HearstLab, and more. Clutch was originally founded as Campus Concierge in 2021 and has gone through the DivInc Houston program at the Ion.

Madison Long, left, and Simone May co-founded Clutch. Photo courtesy of Clutch

Trending News