techy texas

Texas ranks as top state for tech workers

A new report ranks Texas as a top spot for tech workers. Photo via Getty Images

The Houston area can help wave Texas’ newly hoisted flag representing its status as the best state for tech workers.

A new study by IT service automation company SysAid analyzed several factors that affect a state’s desirability for tech workers, such as average internet speed and coverage, number of available tech jobs, and average industry salary compared with the state average. When all the data was tallied, Texas came out on top.

Here are a couple of data points that helped push Texas to the No. 1 position:

  • 31,110 tech jobs are available in the state, demonstrating significant demand for tech workers.
  • The typical tech salary is $103,370, more than double the state’s typical salary of $50,490.

As home to a bevy of tech companies like BMC Software, FlightAware, Hewlett Packard Enterprise, HighRadius, and NetIQ, the Houston area certainly contributes to the state’s No. 1 standing. According to a report released in 2021 by the Greater Houston Partnership and Houston Exponential, the more than 8,800 tech-related businesses in the region help generate $28.1 billion in local GDP.

Statewide, the tech sector pumps $142.8 billion into the economy, according to a recent report from CompTIA, a trade group for the tech industry.

Ranked behind Texas in the SysAid study are four states viewed as tech rivals:

  • California, No. 2.
  • New York, No. 3.
  • Virginia, No. 4.
  • Florida, No. 5.

“Jobs in tech and IT are becoming more in demand, with typically high salaries making the jobs desirable and free courses in coding making the industry more accessible. The data reveals that it is easier in some states to work in tech than others, with demand and salaries varying massively between states,” SysAid says. “Texas tops our list as the best state to work in tech, and it is fascinating to see that California, home to Silicon Valley, is not [at the] top.”

The CompTIA report shows nearly 791,000 people work in Texas’ tech sector. Texas ranks first among all the states for the number of tech jobs (10,851) added in 2021 and second for the size of its tech workforce (behind California). Texas also ranks second, behind Florida, for the number of tech businesses (1,807) launched in 2021.

CompTIA projects Texas will rank second this year, behind California, for the number of tech jobs added (21,303).

“Unlike other would-be innovation hubs, [Texas] has been quietly nurturing high-tech industry for decades. If Texas eventually rivals California, the consequences could be momentous, not just for industry, but for U.S. politics,” according to a Bloomberg opinion piece published in 2021.

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Originally expected to raise $150 million, Mercury's latest fund is the largest raised to date. Photo via mercuryfund.com

A Houston venture capital firm has announce big news of its latest fund.

Mercury, founded in 2005 to invest in startups not based in major tech hubs on either coast, closed its latest fund, Mercury Fund V, at an oversubscribed amount of $160 million. Originally expected to raise $150 million, Fund V is the largest fund Mercury has raised to date.

“We are pleased by the substantial support we received for Fund V from both new and existing investors and thank them for placing their confidence in Mercury,” Blair Garrou, co-founder and managing director of Mercury Fund, says in a news release. “Their support is testament to the strength of our team, proven investment strategy, and the compelling opportunities for innovation that exist in cities across America.”

The fund's limited partners include new and existing investors, including endowments at universities, foundations, and family offices. Mercury reports that several of these LPs are based in the central region of the United States where Mercury invests. California law firm Gunderson Dettmer was the fund formation counsel for Mercury.

Fresh closed, Fund V has already made investments in several companies, including:

  • Houston-based RepeatMD, a patient engagement and fintech platform for medical professionals with non-insurance reimbursed services and products
  • Houston and Cheyenne Wyoming-based financial infrastructure tech platform Brassica, which raised its $8 million seed round in April
  • Polco, a Madison, Wisconsin-based polling platform for local governments, school districts, law enforcement, and state agencies
  • Chicago-based MSPbots, a AI-powered process automation platform for small and mid-sized managed service providers

Mercury's investment model is described as "operationally-focused," and the firm works to provide its portfolio companies with the resources needed to grow rapidly and sustainably. Since 2013, the fund has contributed to creating more than $9 billion of enterprise value across its portfolio of over 50 companies.

“Over the past few years there has been a tremendous migration of talent, wealth and know-how to non-coastal venture markets and this surge of economic activity has further accelerated the creation of extraordinary new companies and technology," says Garrou. "As the first venture capital firm to have recognized the attractiveness of these incredible regions a dozen years ago, we are excited to continue sourcing new opportunities to back founders and help these cities continue to grow and thrive.”

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