hot or not

National business magazine names Houston one of the 'hottest startup cities'

As a a part of its annual Inc. 5000 findings, the magazine named Houston the ninth hottest startup city in America. Photo by Tim Leviston/Getty Images

It's not just Texas' weather that's hot. Three Lone Star State cities made Inc. magazine's list of hot startups cities — and Houston came in at No. 9.

The list came out of the Inc. 5000 report — the magazine's list of the fastest-growing 5,000 privately-held companies in the United States. The list was ranked by the three-year revenue growth of each of the cities' companies.

Houston had a three-year revenue growth 117 percent with 84 Houston companies on the 2019 Inc. 5000 list.

"After Hurricane Harvey hit in 2017, the Houston area's construction industry grew tremendously to help rebuild and repair the storm's damage," the short ranking blurb reads, mentioning two Inc. 5000 companies in Houston: oil pipeline services company JP Services (No. 792) and contractor services firm CC&D (No. 1,973).

Houston beat out Dallas (No. 10) by just 4 percent three-year revenue growth and 10 Inc. 5000 companies. The article calls out Dallas for its "low regulations, zero corporate income taxes, and the Dallas Entrepreneur Center, or DEC, which is a nonprofit organization serving as a hub for startup networking, funding, and mentorship."

Meanwhile, Austin, which ranked No. 2 on the list, had a three-year revenue growth 259 percent, and has 87 Inc. 5000 companies this year. Austin was praised for its "high rate of entrepreneurship and job creation" in the article, as well as for having outposts for top tech companies like Amazon, Apple, and Google.

Here's the full list:

  1. San Francisco
  2. Austin
  3. New York City
  4. San Diego
  5. Atlanta
  6. Denver
  7. Los Angeles
  8. Chicago
  9. Houston
  10. Dallas

Earlier this month, Business Facilities magazine named Houston the fourth best startup ecosystem in the U.S., as well as the fourth best city for economic growth potential. Similarly, Commercial Cafe recently named Houston a top large city for early stage startups.

Susan Davenport, senior vice president of economic development for the Greater Houston Partnership, previously told InnovationMap that it's the city's diversity that keeps the city growing and resilient.

"The region's steady population increases, coupled with our relatively low costs of living and doing business, bode well for our economic growth potential reflected in this ranking," Davenport says.

As the city grows, Houston faces more and more challenges from transportation and infrastructure to gentrification and climate change. Getty Images

As technology and infrastructure evolves, Houston is growing and evolving with it — in both good ways and bad.

On October 30, Gensler hosted its annual Evolution Houston forum that brings together various personalities and industries to discuss the future of the city of Houston. The panelists discussed gentrification, climate change, mobility, smart cities, and so many other hot topics Houstonians hear or think about on a regular basis.

Missed the event? Here are some powerful quotes from the discussion.

“I like to think of Houston as an adolescent city, struggling for its identity.”

Peter Merwin, design principal at Gensler, who adds, "If you look at places like New York, London, Paris — those are all luxury cities. They are fully formed, and a consequence of that is that they become unaffordable. It's something that we have to be careful about in Houston."

“One of the things that has been echoed by many of the artists and many of the poor people over the last few years is, [people] ‘want the culture but they don’t want us.’ It’s very reflective when you go [into the communities.]”

Kam Franklin, activist and singer-songwriter of The Suffers. Franklin described how she would move from the various neighborhoods she's lived in after they've grown in culture. She would see such a huge increase in her rent as people were more willing to pay the premium to live in these newly desirable neighborhoods because of the culture, but its pricing out the original inhabitants. Franklin added, "I'm not going to tell any of y'all where I moved."

“We have to continue to support the diversification of mobility options.”

Abbey Roberson, vice president of planning at the Texas Medical Center. Roberson says transportation is something she particularly focuses on considering how many people filter in and out of the TMC on a daily basis. The medical center wouldn't be able to support the traffic with out various modes of transportation — busses, light rails, etc. Roberson adds that this translates to the rest of the city. "We can't just be doing one thing or the other."

“We’re creating this great culture of trail activation.”

Steve Radom, founder & managing principal at Radom Capital LLC, which developed Heights Mercantile off a bike path and is now building out The MKT, which is also along the same bike path. Radom notes that the city has seen a 300 percent year over year in walkability and a 70 percent increase in bike traffic.

“Climate change is not something the city of Houston can change alone.”

Lara Cottingham, chief of staff & chief sustainability officer at the city of Houston. The city's climate action plan is a result of the devastating floods has seen almost annually. The plan is still being drafted but a version is expected to be released before the end of the year. Every city is facing sustainability challenges, and partnerships are what's going to drive change. "In Houston success means partnership," Cottingham adds.

“How do you talk about a city this big and diverse — every neighborhood has its own identity.”

Jon Nordby, managing director of MassChallenge in Houston, discussed how Houston functions differently from other cities in that it its various neighborhoods — the Heights, Montrose, downtown — are different from each other.