Station Houston CEO Gabriella Rowe and Rice Alliance Managing Partner Brad Burke named 10 startups to watch. Photo by Natalie Harms

Texas is booming with digital startups, and Station Houston and the Rice Alliance for Technology and Entrepreneurship hosted a meeting of the minds to discuss the digital revolution at the inaugural Texas Digital Summit at Rice University on December 6.

Thirty-nine companies presented throughout the day; among the group were 26 from the Houston area. At the conclusion of the day, Gabriella Rowe, CEO of Station Houston, and Brad Burke, managing director of the Rice Alliance, announced 10 "most promising companies" that stood out to a group of investors who attended the event.

All 10 selected were Texas-based, with eight from the Houston area. Here's who the venture capitalists and investors picked for the prize.

Houston-based SafePass

Photo via safepassglobal.com

SafePass pictures a world where visitors on school or corporate campuses can be tracked. The company's technology upends the standard paper or sticker pass you get from the front office, and provides a reusable, trackable device for visitors.

"Our tracking algorithm interacts with already existing WiFi technology — so, the routers that are already at that facility," says Ronald Huff, managing director of SafePass. "We leverage that to get that real-time tracking information."

Houston-based ScribeRule

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ScribeRule operates under the assumption that your company's data has already been breached. The software protects data from both internal and external threats so that companies don't have to worry about any type of threat. The technology is scalable and easy to use.

"The problem is very simple," says Chris Melson, president and COO. "Only allow people who are authorized to see your data, see the data. And that's the problem we've solved."

"It's very difficult to protect data in a collaborative environment."

Houston-based Sensoleak

Photo via sensoleak.com

Sensoleak is making it easier for monitors in the oil and gas industry to be alerted about leaks. Using artificial intelligence, machine learning, and internet of things combined into a software, the company is providing a revolutionary solution for a longstanding problem.

"The problem right now is there is a lot of false alarms," says Shoshi Kaganovsky, founder and CEO, "and if there is a leak, it has to leak a lot before it is caught."

The company recently opened a new round of funding.

Sugar Land-based Commtrex

Photo via commtrex.com

The only open, electronic marketplace for rail shippers and asset providers is right in Houston's backyard of Sugar Land. Commtrex makes communications and connections between these transportation entities more efficient and better executed.

"Commtrex's asset management tools and market data is based on real transactions, and benefits our member companies with engagement efficiencies and financial insights," reads the website.

Houston-based Zenus

Photo via zenus-biometrics.com

Let's face it, face recognition is the future of identification, and Zenus has an award-winning technology to move the needle. Utilizing face recognition doesn't need to compromise privacy.

"We are a leading provider of face recognition software," reads the website. "Our cloud-based service can search a database of faces within a blink of an eye and it can be seamlessly integrated into any application."

Houston-based 3GiG

Photo via 3-gig.com

3GiG is a one-stop shop software company for the "oval office" needs of oil and gas companies. Energy leaders can use the services to manage projects, prospects, and more. President and CEO Kandy Lukats compares her company's services to the trending meal kits — like Blue Apron or Hello Fresh —Americans have been crazy about — all the ingredients sent right to your door.

"We believe we've found the niche between the freezer section and doing it yourself," she says.

Austin-based Towny

Photo via towny.com

This Austin company is making it more appealing to shop local. Towny looks to work in cities with under a million residents. The tool is for small, consumer-focused businesses to market their store to consumers. The small business owners pay a flat monthly rate to utilize digital marketing tools from the convenience of their phones.

Towny is already in five towns with 500 clients, says CEO Nathan Baumeister. In January, the company's monthly revenue was $17,000, but for the last two months, the tool has raked in $90,000 monthly.

"We've built a branding, mobile-first platform, where we've taken all these technologies and tactics and put it together in one package at the affordable price of $199 per month," he says.

Dallas-based CommandHound

Photo via commandhound.com

CommandHound is a B2B software that tracks employee tasks and responsibilities. It reminds users on assigned duties and keeps a record of work outcomes for later performance reviews.

"Our ultimate solution is to turn every organization into a high-performance organization through accountability," says Rene Larrave, chairman and CEO. "It's a checklist on steroids."

Houston-based SecurityGate

Photo via securitygate.io

SecurityGate is disrupting the cyber compliance and the cyber regulation market by providing cyber risk assessments at a faster rate than a human auditor could. The software analyzes data, identifies potential cyber security risks, and communicates with the company how to address the threats.

"No matter what industry vertical you're in, every single supply chain out there is worries about supply chain cyber security," says CEO Ted Gutierrez. "And the problem with that, is everyone is doing it manually."

Houston-based DeepCast.ai

Photo via deepcast.ai

Using artificial intelligence and physics, DeepCast.ai can automate operations for industrial companies.

"We simply integrate with system solutions, try to clean and facilitate the data using AI models important to the oil and gas industry," says Arturo Klie, chief technology officer and senior software engineer. "Once the data is clean, we apply our business-informed AI models to solve and provide forecasting real time and analytics.

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Texas booms as No. 3 best state to start a business right now

Innovation Starts Here

High employment growth and advantageous entrepreneurship rates have led Texas into a triumphant No. 3 spot in WalletHub's ranking of "Best and Worst States to Start a Business" for 2026.

Texas bounced back into the No. 3 spot nationally for the first time since 2023. After dropping into 8th place in 2024, the state hustled into No. 4 last year.

Ever year, WalletHub compares all 50 states based on their business environment, costs, and access to financial resources to determine the best places for starting a business. The study analyzes 25 relevant metrics to determine the rankings, such as labor costs, office space affordability, financial accessibility, the number of startups per capita, and more.

When about half of all new businesses don't last more than five years, finding the right environment for a startup is vital for long-term success, the report says.

Here's how Texas ranked across the three main categories in the study:

  • No. 1 – Business environment
  • No. 11 – Access to resources
  • No. 34 – Business costs

The state boasts the 10th highest entrepreneurship rates nationwide, and it has the 11th-highest share of fast-growing firms. WalletHub also noted that more than half (53 percent) of all Texas businesses are located in "strong clusters," which suggests they are more likely to be successful long-term.

"Clusters are interconnected businesses that specialize in the same field, and 'strong clusters' are ones that are in the top 25 percent of all regions for their particular specialization," the report said. "If businesses fit into one of these clusters, they will have an easier time getting the materials they need, and can tap into an existing customer base. To some degree, it might mean more competition, though."

Texas business owners should also keep their eye on Houston, which was recently ranked the 7th best U.S. city for starting a new business, and it was dubbed one of the top-10 tech hubs in North America. Workers in Texas are the "third-most engaged" in the country, the study added, a promising attribute for employers searching for the right place to begin their next business venture.

"Business owners in Texas benefit from favorable conditions, as the state has the third-highest growth in working-age population and the third-highest employment growth in the country, too," the report said.

The top 10 best states for starting a business in 2026 are:

  • No. 1 – Florida
  • No. 2 – Utah
  • No. 3 – Texas
  • No. 4 – Oklahoma
  • No. 5 – Idaho
  • No. 6 – Mississippi
  • No. 7 – Georgia
  • No. 8 – Indiana
  • No. 9 – Nevada
  • No. 10 – California
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This article originally appeared on CultureMap.com.

Houston lab-test startup seeks $1M for nationwide expansion

Testing Access

Health care industry veteran Jim Gebhart knew there had to be a better way for patients to access lab services, especially those with high health insurance deductibles or no insurance at all.

“This challenge became deeply personal when a close family member developed a serious illness, and we struggled to secure prompt appointments,” Gebhart tells InnovationMap. “It’s incredibly frustrating when a loved one cannot receive timely care simply because of provider shortages or the limited capacity of traditional clinics.”

Driven by the desire to knock down lab-test barriers, Gebhart founded Houston-based TheLabCafe.com in 2024. The platform provides access to low-cost medical tests without requiring patients to carry health insurance. TheLabCafe serves patients in six states: Texas, Georgia, Louisiana, Nevada, New Mexico and Oklahoma. Gebhart, the startup’s CEO, says that by the end of March, LabCafe will be offering services in 20 more states and the District of Columbia.

Gebhart has spent more than 30 years in the lab industry. His career includes stints at Austin-based Clinical Pathology Laboratories, Ohio’s Cleveland Clinic Laboratories and Secaucus, New Jersey-based Quest Diagnostics.

“Since nearly 80 percent of disease diagnoses rely on laboratory testing, I decided to leverage my background to create a more accessible, self-directed process for individuals to order blood and urine tests on their own terms — when and where they need them,” says Gebhart.

So far, Gebhart is self-funding the startup. But he plans to seek $700,000 to $1 million in outside investments in late 2026 to support the nationwide expansion and the introduction of more services.

TheLabCafe contracts with labs for an array of tests, such as cholesterol, hepatitis, metabolic, testosterone, thyroid and sexually transmitted infection (STI) tests. A cholesterol test obtained through TheLabCafe might cost $29, compared with a typical cost of perhaps $39 to $59 without insurance.

A health care professional reviews every test, both when the test is ordered and when the results are delivered, often within 24 hours. After receiving test results, a patient can schedule a virtual visit with a health care professional to go over the findings and learn potential treatment options.

Gebhart says TheLabCafe particularly benefits uninsured patients, including those in Texas. Among the states, Texas has the highest rate of uninsured residents. U.S. Census Bureau data shows 21.6 percent of adults and 13.6 percent of children in Texas lacked health insurance in 2024.

“Uninsured patients often pay the highest prices in the health care system,” Gebhart explains. “We address this by offering straightforward pricing and convenient access to testing without requiring insurance.”

“Our rates are intentionally set to remain affordable, helping individuals take a proactive approach to their health,” he adds. “Regular testing enables people to identify potential health issues early and track their progress as they make lifestyle changes. Ultimately, you can’t measure improvement without data — and laboratory results provide that data.”

Houston geothermal startup secures $97M Series B for next-gen power

fresh funding

Houston-based geothermal energy startup Sage Geosystems has closed its Series B fundraising round and plans to use the money to launch its first commercial next-generation geothermal power generation facility.

Ormat Technologies and Carbon Direct Capital co-led the $97 million round, according to a press release from Sage. Existing investors Exa, Nabors, alfa8, Arch Meredith, Abilene Partners, Cubit Capital and Ignis H2 Energy also participated, as well as new investors SiteGround Capital and The UC Berkeley Foundation’s Climate Solutions Fund.

The new geothermal power generation facility will be located at one of Ormat Technologies' existing power plants. The Nevada-based company has geothermal power projects in the U.S. and numerous other countries around the world. The facility will use Sage’s proprietary pressure geothermal technology, which extracts geothermal heat energy from hot dry rock, an abundant geothermal resource.

“Pressure geothermal is designed to be commercial, scalable and deployable almost anywhere,” Cindy Taff, CEO of Sage Geosystems, said in the news release. “This Series B allows us to prove that at commercial scale, reflecting strong conviction from partners who understand both the urgency of energy demand and the criticality of firm power.”

Sage reports that partnering with the Ormat facility will allow it to market and scale up its pressure geothermal technology at a faster rate.

“This investment builds on the strong foundation we’ve established through our commercial agreement and reinforces Ormat’s commitment to accelerating geothermal development,” Doron Blachar, CEO of Ormat Technologies, added in the release. “Sage’s technical expertise and innovative approach are well aligned with Ormat’s strategy to move faster from concept to commercialization. We’re pleased to take this natural next step in a partnership we believe strongly in.”

In 2024, Sage agreed to deliver up to 150 megawatts of new geothermal baseload power to Meta, the parent company of Facebook. At the time, the companies reported that the project's first phase would aim to be operating in 2027.

The company also raised a $17 million Series A, led by Chesapeake Energy Corp., in 2024.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.