Houston hailed as one of America's 10 best cities for startups

Startup Report

Houston joins major other Texas cities on the startup report. Photo via Getty Images

Houston's favorable economic climate is enticing new opportunities for entrepreneurship and growth, and now the city is being hailed as the 7th-best U.S. city for starting a business.

The recognition comes in CommercialCafe's recent "Best Cities for Startups" report, published December 10. The study analyzed large U.S. cities across two population categories – cities with more than 1 million residents and cities with populations between 500,000 and 1 million residents. The report analyzed relevant metrics such as office or coworking costs, Kickstarter funding success, startup density, and survival rates, among others.

Across the biggest U.S. cities with over a million residents, Phoenix, Arizona landed on top as the No. 1 best place to start a new business.

The report's findings revealed 10.6 percent of all businesses in Houston are startups that have been active for less than a year. These new businesses have a survival rate of 64.5 percent, meaning just under two-thirds of all startups in the city will still be running up to five years after they were first established.

Over the last five years, the number of new businesses established in Houston has grown nearly 15 percent. CommercialCafe said new businesses in cities with high startup growth rates tend to "attract top talent" which can eventually lead to securing "vital funding for expansion."

Independent professionals – also known as freelancers – are another crucial resource for new businesses that may need "specialized services" for a fixed amount of time, the report said. Houston's freelance workforce has grown about 9 percent from 2019-2023, and the analysis found there were 97,295 freelancers working in Houston in 2023, compared to 89,528 in 2019.

"Generally, cities in the South and Southwest have experienced strong growth during the surveyed period, in contrast to California cities like Los Angeles and San Diego, where the share of freelancers and gig workers has either stagnated or slightly declined," the report said.

Houston boasts the second-cheapest office space rent nationally, the report found. The average asking price for a 1,000-square-foot workspace (for five employees) in the city added up to $27,124 annually. For startups that want greater flexibility for their workers, the annual cost for a coworking space for the same number of employees in Houston came out to $13,200, which is the fourth-most affordable rate in the U.S.

Other Texas cities with attractive economic environments for startups

Texas, as a whole, is one of the strongest states for starting a new business. Other than Houston, San Antonio (No. 2), Dallas (No. 3), and Fort Worth (No. 4) were also recognized among the top 10 best places to start a business in the category of U.S. cities with more than a million residents.

Austin topped a separate ranking of best cities to start a business with 500,000 to 1 million residents.

"Specifically, the Texas capital was the frontrunner for indicators that looked at the overall share of startups within the local economy, as well as growth rates in five years (2019 to 2023)," the report said. "On top of that, Austin also topped the rankings for its percentage of college-educated residents and its consulting firms, which provide vital support for burgeoning enterprises."

The top 10 best cities to start a new business are:

No. 1 – Phoenix, Arizona
No. 2 – San Antonio, Texas
No. 3 – Dallas, Texas
No. 4 – Fort Worth, Texas
No. 5 – Jacksonville, Florida
No. 6 – San Diego, California
No. 7 – Houston, Texas
No. 8 – Philadelphia, Pennsylvania
No. 9 – Chicago, Illinois
No. 10 – Los Angeles, California

---

This article originally appeared on CultureMap.com.

From Your Site Articles

Houston dropped a few spots, but still appears in the top 15. Photo via Getty Images

Houston ranks among the 15 best cities in America for 2025

Ranking It

A new national report ranking the best cities in America has declared Houston is the 13th best U.S. city in 2025.

The annual "America's Best Cities" report from Resonance Consultancy, a Canada-based real estate and tourism marketing firm, ranks the relative qualities of livability, cultural "lovability," and economic prosperity in America's principal cities with metropolitan populations of 500,000 or more.

These top 100 cities "brilliantly weave local culture with economic prospects, aligning with global and domestic travel trends to create premier experiences for both residents and travelers."

Houston's new placement is three spots lower than its triumphant No. 10 rank in 2024. Though it no longer holds a prized top-10 spot, the report hails Houston as a "coveted hometown for the best and brightest on earth."

Among Houston's other shining attributes are its booming population growth – which has now grown to a staggering 7.51 million people – plus its competitive real estate market and a vibrant hospitality and culinary scene. Additionally, Houston earned a well-deserved No. 4 rank in the report's "restaurants" subcategory.

"A 221-room Home2 Suites/Tru by Hilton debuted near Toyota Center in March, while Marriott’s newly renovated Residence Inn NASA/Clear Lake keeps surging visitors happy," the report said. "West Houston’s Greenside will convert 35,000 square feet of warehouses into a park-laced retail hub by 2026, while America’s inaugural Ismaili Center, rising along Allen Parkway, remains on schedule for later this year, adding yet another cultural jewel to H-Town’s festival-fueled mosaic."

The report additionally puts a large focus on Houston's innovative energy sector and its numerous large companies that boost the local economy and create thousands of jobs. Several of these Houston-based companies are some of the best places to work, according to U.S. News and World Report.

One such company that was specifically praised in the report was the HyVelocity Hub, which aims to "ensure economic resilience and long-lasting, domestic energy production" along the Gulf Coast.

"The HyVelocity Hydrogen Hub just locked in up to $1.2 billion from the U.S. DOE, targeting 45,000 jobs and slicing 7.7 million tons of CO₂ a year," the report said.

Elsewhere in Texas

Dallas (No. 14) and Austin (No. 15) ranked right behind Houston in the top 20, while San Antonio sank into the No. 41 spot after previously ranking 32nd last year. El Paso also fell from No. 83 in 2024 to No. 100 this year.

Jason McGrath, the executive vice president and head of U.S. Corporate Reputation at Ipsos, said in the report that American cities are proving their resiliency as they are faced with "climate issues, increasing infrastructural demands, and shifting geopolitical landscapes affecting international relations and travel."

"Despite these hurdles, cities are creatively reinventing themselves to shine as examples of cultural vibrancy and innovation, keeping their competitive edge both locally and globally," McGrath said. "Our report shows that the allure of American cities remains strong, thanks to their rich diversity and vast attractions — from natural wonders to buzzing cultural hubs."

The top 10 best cities in America in 2025 are:

No. 1 – New York City, New York
No. 2 – Los Angeles, California
No. 3 – Chicago, Illinois
No. 4 – San Francisco, California
No. 5 – Seattle, Washington
No. 6 – Miami, Florida
No. 7 – Boston, Massachusetts
No. 8 – Washington, D.C.
No. 9 – Las Vegas, Nevada
No. 10 – San Diego, California

---

This article originally appeared on CultureMap.com.

Houston jumped four spots to No. 34 this year. Photo via Getty Images

Houston improves ranking among best U.S. cities to start a business

Business News

Houston's reputation for being an entrepreneurial and business powerhouse was confirmed in WalletHub's new list of the "Best Large Cities to Start a Business" in 2025. The Energy Capital of the World moved up four spots this year and ranked No. 34 nationwide.

The annual report ranked 100 U.S. cities based on 19 metrics across three main categories: business environment, access to resources, and costs. Factors considered in the report include five-year business survival rates, job growth comparisons from 2019 and 2023, office space affordability, and more.

The sunny Florida city of Orlando (No. 1) topped the list as the best large city for starting a business this year.

Houston's business climate has improved slightly since 2024, when the city previously ranked No. 38.

Houston performed the best in the national business environment category, ranking No. 33 out of all 100 cities in the report. It fell behind in the categories for "business costs" and "access to resources" ranking No. 50 and No. 65, respectively.

"Starting a business can be very scary, considering one in every five startups doesn’t make it past the first year," said WalletHub analyst Chip Lupo. "That’s why it’s especially important to live in a city that provides an environment where new businesses can thrive, with enough capital, workers and customers to keep it going long-term."

Elsewhere in Texas
Austin was the only Texas city to rank among the top 10 best big cities to start a business in 2025, climbing up into the No. 3 spot.

"Businesses that are currently in Austin are thriving, as the city has a very high growth rate in the number of small businesses," the report said. "It also has the best employment growth in the country, which makes it more likely that new businesses will be able to find employees."

Dallas-Fort Worth had the greatest concentration of cities on the list, contributing six out of 13 total Texas cities, and all of them among the top 50: Fort Worth (No. 11), Arlington (No. 15), Dallas (No. 16), Irving (No. 22), Garland (No. 29), and Plano (No. 43).

Other large Texas cities that were named among the best places to start a business in 2025 include Lubbock (No. 33), Laredo (No. 44), San Antonio (No. 64), El Paso (No. 67), and Corpus Christi (No. 70).

The top 10 best large cities to start a business in 2025 are:

No. 1 – Orlando, Florida
No. 2 – Tampa, Florida
No. 3 – Austin, Texas
No. 4 – Jacksonville, Florida
No. 5 – Miami, Florida
No. 6 – St. Petersburg, Florida
No. 7 – Boise, Idaho
No. 8 – Atlanta, Georgia
No. 9 – Raleigh, North Carolina
No. 10 – Hialeah, Florida

---

A version of this story originally appeared on our sister site, CultureMap.com.

Houston made a big leap back into the top 50, ranking No. 40, after previously plummeting into No. 72 last year. Photo by Natalie Harms/InnovationMap

Houston leaps back into top 50 'World's Best Cities' list for 2025

call it a comeback

Lively Houston has regained its rightful place among the top 50 best cities in the world, according to a prestigious new report by Resonance Consultancy.

The Canada-based real estate and tourism marketing advisors ranked Houston the 40th best city worldwide for 2025 in its annual "World's Best Cities" list.

The report quantifies the relative qualities of livability, "lovability," and prosperity for the world's top 100 cities with metropolitan populations of 1 million or more. New to the 10th anniversary edition, Resonance partnered with global market researchers Ipsos to include perception-based data into the rankings, surveying over 22,000 people in 30 countries worldwide to determine "the most desirable places to visit, live or work."

Houston made a major rebound after plummeting to No. 66 in last year's report. In 2022, Houston ranked No. 42.

Resonance refers to its previous "World's Best Cities" reports and its 2024 "America's Best Cities" list – which ranked Houston in the top 10 – when explaining the Bayou City's successes. The report praised Houston's vast cultural diversity and placed a great focus on its economic prosperity, even going so far as to suggest Houston residents make more money "and can sock more away."

"...[W]here America’s fourth-largest city truly takes off is in its economic heft and wealth, ranking No. 9 globally for GDP per Capita and No. 14 for Fortune 500 companies in town," the report said. "All that rolls up into an overall Prosperity index ranking of No. 36, which is even more impressive given the No. 14-ranked Price-to Income Ratio [of the city]."

Elsewhere in Texas, Austin and Dallas also earned spots on the World's Best Cities list for 2025, but only one made a similar rebound from the previous year's rankings. Dallas moved up from No. 66 in last year's report to its current rank as No. 55. Meanwhile, Austin took its first tumble out of the 43rd spot (which it had occupied for two years straight) and now ranks No. 53.

London held onto its crown as the No. 1 best city in the world for 2025, followed by New York (No. 2), Paris (No. 3), Tokyo (No. 4), and Singapore (No. 5).

------

This article originally ran on CultureMap.

Three Texas cities made the new ranking. Photo via Getty Images

Houston makes top 10 list for best US cities to start a business

best of the rest

Houston plays a historic role in launching spacecraft. But it’s also a great place to launch a business.

A new list from USA Today Blueprint puts Houston in ninth place among the best U.S. cities to start a business in 2024. Austin grabs the No. 1 spot, and Dallas sits at No. 4.

“Starting and sustaining it is a major challenge, and there are a vast number of factors that can affect your chances of success,” says USA Today Blueprint. “While the best businesses and entrepreneurs can succeed anywhere and beat any odds, it can help to think about where your business might be more likely to succeed.”

USA Today Blueprint combed through data for 46 of the country’s most popular cities to create the ranking. Houston fares especially well in two categories — business openings and growth in GDP (gross domestic product):

In 2021, Houston saw 16,816 business openings and 13,785 business closures, resulting in a net gain of 3,031 businesses, according to USA Today Blueprint’s analysis. The net gain gives Houston a fourth-place showing for business openings.
From 2021 to 2022, Houston experienced GDP growth of 14.2 percent. That was a high enough rate to earn a third-place ranking for GDP growth. Only El Paso (15 percent) and Austin (14.3 percent) notched higher rates.

“Startups in Miami, Austin, and Dallas are particularly high contributors to their city’s total employment numbers. These cities also — alongside Houston and Jacksonville — make up five of the top 10 in terms of GDP growth,” says USA Today Blueprint.

Was Houston snubbed? Photo by John Schnobrich on Unsplash

Houston falls behind other Texas cities in report ranking best tech hubs

ouch

In a recent report analyzing metrics for best cities for tech hubs, Houston failed to crack the top 20 — unlike a few other Texas cities.

The new report, "The Top Tech Cities in the US: Ranking 100 Cities in 2024," by online security experts Cloudwards, examined 100 tech-reliant cities in the nation across 17 key indicators, including salaries for information technology professionals, a city's cost of living, internet quality, job opportunities and tech-related companies, and more.

Austin is the No. 7 best tech city in the nation, yet somehow not the best in Texas; The Dallas suburb of Plano outshone the capital city at No. 4, and its neighbor Frisco came in at No. 10. Houston, however, came in at No. 22.

Courtesy of: Cloudwards.net

Here's how Houston stacked up in the major categories in the study:

No. 13 – Cost of Living and Tech Salaries
No. 16 – Career and Education
No. 40 – Tech Community
No. 44 – Innovation and Entrepreneurship
No. 53 – Internet Coverage and Quality

Austin's spot in No. 7 behind Plano's No. 4 might be surprising, but, according to the report, the Texas capitol's higher cost of living is to blame.

"Texas’s capital, Austin is a good place for startups since it’s easy to find top talent, initial capital and inexpensive office space," wrote the report's author. "However, due to the rapid rise in population (3 percent between 2021 and 2022), the cost of living has increased and access to good real estate has become more costly. Even so, the city’s distinct culture, access to educational opportunities and work-life balance continue to make Austin a popular choice for many IT professionals."

With many employers still embracing remote work, having a good wifi connection can make or break a person's ability to work from home. It seems that helped Plano get a leg up on Austin; 96 percent of Plano households have internet access, which was the single best connection rate of any city in the study. Austin didn't make the top five — but at least it didn't make the bottom five either.

Frisco also topped out in one category in particular, earning the title as "the most livable city in the U.S." according to Cloudwards.

Average salaries for IT professionals in Frisco come out to about $95,516 annually, which is only a $217 difference from Plano at $95,733. Given Austin's middling rank on the list above, no data was shared.

Central Texas didn't have much representation on the list. Although there were several North Texas suburbs, the only city near Austin was San Antonio, which came in at No. 18. It was the "Innovation and Entrepreneurship" category that brought it down, ranking No. 72.

Nationally, the cities that round out the top five most tech-savvy cities in the U.S. are:

No. 1 – New York City, New York
No. 2 – Washington, D.C.
No. 3 – San Francisco, California
No. 4 – Plano, Texas
No. 5 – Jersey City, New Jersey

------

This article originally ran on CultureMap.

Ad Placement 300x100

Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

Innovative Houston-area hardtech startup closes $5M seed round

fresh funding

Conroe-based hardtech startup FluxWorks has closed a $5 million seed round.

The funding was led by Austin-based Scout Ventures, which invests in early-stage startups working to solve national security challenges.

Michigan Capital Network also contributed to the round from its MCN Venture Fund V. The fund is one of 18 selected by the Department of Defense and Small Business Administration to participate in the Small Business Investment Company Critical Technologies Initiative, which will invest $4 billion into over 1,700 portfolio companies.

FluxWorks reports that it will use the funding to drive the commercialization of its flagship Celestial Gear technology.

"At Scout, we invest in 'frontier tech' that is essential to national interest. FluxWorks is doing exactly that by solving critical hardware bottlenecks with its flagship Celestial Gear technology ... This is about more than just gears; it’s about strengthening our industrial infrastructure," Scout Ventures shared in a LinkedIn post.

Fluxworks specializes in making contactless magnetic gears for use in extreme conditions, which can enhance in-space manufacturing. Its contactless design leads to less wear, debris and maintenance. Its technology is particularly suited for space applications because it does not require lubricants, which can be difficult to control at harsh temperatures and in microgravity.

The company received a grant from the Texas Space Commission last year and was one of two startups to receive the Technology in Space Prize, funded by Boeing and the Center for the Advancement of Science in Space (CASIS), in 2024. It also landed $1.2 million through the National Science Foundation's SBIR Phase II grant this fall.

Fluxworks was founded in College Station by CEO Bryton Praslicka in 2021. Praslicka moved the company to Conroe 2024.

5 Houston scientists named winners of prestigious Hill Prizes 2026

prized research

Five Houston scientists were recognized for their "high-risk, high-reward ideas and innovations" by Lyda Hill Philanthropies and the Texas Academy of Medicine, Engineering, Science and Technology (TAMEST).

The 2026 Hill Prizes provide seed funding to top Texas researchers. This year's prizes were given out in seven categories, including biological sciences, engineering, medicine, physical sciences, public health and technology, and the new artificial intelligence award.

Each recipient’s institution or organization will receive $500,000 in direct funding from Dallas-based Lyda Hill Philanthropies. The organization has also committed to giving at least $1 million in discretionary research funding on an ad hoc basis for highly-ranked applicants who were not selected as recipients.

“It is with great pride that I congratulate this year’s Hill Prizes recipients. Their pioneering spirit and unwavering dedication to innovation are addressing some of the most pressing challenges of our time – from climate resilience and energy sustainability to medical breakthroughs and the future of artificial intelligence,” Lyda Hill, founder of Lyda Hill Philanthropies, said in a news release.

The 2026 Houston-area recipients include:

Biological Sciences: Susan M. Rosenberg, Baylor College of Medicine

Rosenberg and her team are developing ways to fight antibiotic resistance. The team will use the funding to screen a 14,000-compound drug library to identify additional candidates, study their mechanisms and test their ability to boost antibiotic effectiveness in animal models. The goal is to move toward clinical trials, beginning with veterans suffering from recurrent infections.

Medicine: Dr. Raghu Kalluri, The University of Texas MD Anderson Cancer Center

Kalluri is developing eye drops to treat age-related macular degeneration (AMD), the leading cause of vision loss globally. Kalluri will use the funding to accelerate studies and support testing for additional ocular conditions. He was also named to the National Academy of Inventors’ newest class of fellows last month.

Engineering: Naomi J. Halas, Rice University

Co-recipeints: Peter J. A. Nordlander and Hossein Robatjazi, Rice University

Halas and her team are working to advance light-driven technologies for sustainable ammonia synthesis. The team says it will use the funding to improve light-driven catalysts for converting nitrogen into ammonia, refine prototype reactors for practical deployment and partner with industry collaborators to advance larger-scale applications. Halas and Nordlander are co-founders of Syzygy Plasmonics, and Robatjazi serves as vice president of research for the company.

The other Texas-based recipients include:

Artificial Intelligence: Kristen Grauman, The University of Texas at Austin
Physical Sciences: Karen L. Wooley, Texas A&M University; Co-Recipient: Matthew Stone, Teysha Technologies
Public Health: Dr. Elizabeth C. Matsui, The University of Texas at Austin and Baylor College of Medicine
Technology: Kurt W. Swogger, Molecular Rebar Design LLC; Co-recipients: Clive Bosnyak, Molecular Rebar Design, and August Krupp, MR Rubber Business and Molecular Rebar Design LLC

Recipients will be recognized Feb. 2 during the TAMEST 2026 Annual Conference in San Antonio. They were determined by a committee of TAMEST members and endorsed by a committee of Texas Nobel and Breakthrough Prize Laureates and approved by the TAMEST Board of Directors.

“On behalf of TAMEST, we are honored to celebrate the 2026 Hill Prizes recipients. These outstanding innovators exemplify the excellence and ambition of Texas science and research,” Ganesh Thakur, TAMEST president and a distinguished professor at the University of Houston, added in the release. “Thanks to the visionary support of Lyda Hill Philanthropies, the Hill Prizes not only recognize transformative work but provide the resources to move bold ideas from the lab to life-changing solutions. We are proud to support their journeys and spotlight Texas as a global hub for scientific leadership.”

Investment bank opens new Houston office focused on energy sector

Investment bank Cohen & Co. Capital Markets has opened a Houston office to serve as the hub of its energy advisory business and has tapped investment banking veteran Rahul Jasuja as the office’s leader.

Jasuja joined Cohen & Co. Capital Markets, a subsidiary of financial services company Cohen & Co., as managing director, and head of energy and energy transition investment banking. Cohen’s capital markets arm closed $44 billion worth of deals last year.

Jasuja previously worked at energy-focused Houston investment bank Mast Capital Advisors, where he was managing director of investment banking. Before Mast Capital, Jasuja was director of energy investment banking in the Houston office of Wells Fargo Securities.

“Meeting rising [energy] demand will require disciplined capital allocation across traditional energy, sustainable fuels, and firm, dispatchable solutions such as nuclear and geothermal,” Jasuja said in a news release. “Houston remains the center of gravity where capital, operating expertise, and execution come together to make that transition investable.”

The Houston office will focus on four energy verticals:

Energy systems such as nuclear and geothermal
Energy supply chains
Energy-transition fuel and technology
Traditional energy

“We are making a committed investment in Houston because we believe the infrastructure powering AI, defense, and energy transition — from nuclear to rare-earth technology — represents the next secular cycle of value creation,” Jerry Serowik, head of Cohen & Co. Capital Markets, added in the release.

---

This article originally appeared on EnergyCaptialHTX.com.

View All Listings

INNOVATIONMAP EMAILS ARE AWESOME