New data shows that Houston communities saw an uptick in startup founding from Black entrepreneurs. Photo courtesy

It might seem that the formation of startups would have stagnated amid the COVID-19 pandemic. Yet that was anything but the case for Houston startups founded by Black entrepreneurs.

A recent study by economists at Rice University, Boston University, Columbia University, and the Massachusetts Institute of Technology (MIT) found that from 2019 to 2020, the startup rate rose 32 percent in four largely Black areas of Houston: Kashmere Gardens, Missouri City, South Acres, and Sunnyside. By comparison, the statewide startup rate during that period was only 10 percent.

There's no denying that Black-owned businesses already have a significant impact on the economy of the Houston metro area.

A report released in 2019 by the Greater Houston Black Chamber estimated the group's more than 1,500 members collectively generate anywhere from $1 billion to $2 billion in annual revenue. A little over one-fifth of the population in the Houston area is Black. That population is projected to grow 34 percent between 2010 and 2030.

In 2015, personal finance website NerdWallet ranked Houston the 15th best metro in the country and the best metro in Texas for Black-owned businesses.

The Rice economist who contributed to the study is Yupeng Liu, a doctoral student at the university's Jones Graduate School of Business. While he and his fellow researchers note that their study doesn't confirm a cause-and-effect relationship, "it is useful to note that the federal relief payments, and their uniform distribution (independent of eligibility criteria), may have played a role in enabling new firm formation in Black neighborhoods which might otherwise have been constrained by discrimination."

Furthermore, some experts speculate that last year's rise of the racial justice movement may have helped lift up Black entrepreneurs, and that many Black Americans set up new businesses out of necessity in 2020 after being laid off or seeing their work income or hours reduced.

The study, published by the National Bureau of Economic Research, compared startup data for 2020 in Texas and seven other states — Florida, Georgia, Kentucky, New York, Tennessee, Vermont, and Washington — with startup data for 2019. In all, the number of business formations spiked by 21 percent, with the growth of Black-owned startups being especially pronounced. However, an estimated 40 percent of Black-owned businesses closed during the pandemic, compared with 20 percent across all racial and ethnic groups.

The findings of the research bureau's study mirror a subsequent report from the Ewing Kauffman Foundation, a nonprofit that promotes entrepreneurship. The report found more Black-owned businesses were launched last year compared with the total population than at any time in the past 25 years, according to the Los Angeles Times. On average, 380 out of every 100,000 Black adults became new entrepreneurs during the 2020 pandemic, up from 240 in each of the previous two years, the report shows.

In reporting on the National Bureau of Economic Research study, CBS News and The New York Times spotlighted two new Black-owned startups in Houston.

Last July, Destiny McCoy and Oyinda Adebo of Houston launched a mental health company called Wellness for Culture. The company already has been so successful that McCoy says it now supports her financially, according to CBS News.

"All I knew is that I wanted to help Black women," McCoy told CBS News, "and all I knew was I didn't want to do therapy in the typical way."

Another Black entrepreneur from Houston, Pilar Donnelly, enjoyed similar success in 2020. Last summer, Donnelly began making playhouses for her two 6-year-old boys, the Times reported.

"She had been laid off from her job in sports marketing and wanted to give them something for their birthday. With no background in woodworking, she started off with a design she liked online and watched YouTube to learn woodworking techniques," according to the Times. "After making a number of playhouses for her friends and family, she realized it could be a business. That business, which she registered in June, is called Wish You Wood Custom Creations."

Woodworking is now Donnelly's full-time job.

"Everyone I encountered either had a really good year or a really bad year — and for me I had a good year," she told the Times. "Now I'm working outside in the grass and the dirt. I have a workshop in the garage; I have scrap wood everywhere. My life is really different."

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Houston legacy planning platform secures $2.5M investment, adds to board

fresh funding

Houston-based Paige, a comprehensive life planning and succession software company, has secured a $2.5 million investment to expand the AI-driven tools on its platform.

The funding comes from Alabama-based 22nd State Banking Company, according to a news release. Paige says it will use the funding to expand automation, AI-driven onboarding and self-service tools, as well as add to its sales and customer success teams.

The company was originally founded by CEO Emily Cisek in 2020 as The Postage and rebranded to Paige last year. It helps users navigate and organize end-of-life planning with features like document storage and organization, password management, and funeral and last wishes planning.

“Too many families are left trying to piece together important information during some of the hardest moments of their lives,” Cisek said in the news release. “This investment allows us to accelerate the next phase of growth for Paige by improving the product and expanding support for our members, our financial institution partners and the communities they serve,”

In addition to the funding news, the company also announced that 22nd State Banking CEO and President Steve Smith will join Paige's board of directors.

“We believe banking should be grounded in relationships and built around the real needs of the people and communities we serve. Paige brings something deeply relevant to that mission," Smith added in the release. "It helps families prepare for the future in a practical and meaningful way, and it gives the banking community new pathways to support customers through important life transitions.”

Paige estimates that $124 trillion in assets will change hands through 2048. Yet about 56 percent of Americans do not have an estate plan.

Read more on the topic from Cisek in a recent op-ed here; or listen to InnovationMap's 2021 interview with her here.

Houston digital health platform Koda lands strategic investment

money moves

Houston-based advance care planning platform Koda Health has added another investor to the lineup.

The company secured a strategic investment for an undisclosed amount from UPMC Enterprises, the commercialization arm of the University of Pittsburgh Medical Center. The funding is part of Koda's oversubscribed series A funding round that closed in October, according to a release.

"UPMC Enterprises’ investment is a meaningful signal, not just to Koda, but to the broader market," Dr. Desh Mohan, chief medical officer and co-founder of Koda Health, said in the news release. "It validates that health systems are ready to invest in infrastructure that makes advance care planning work the way it should: proactively, at scale, and with the human support that these conversations require. Having UPMC Enterprises as a strategic investor puts us in a unique position to prove what's possible."

Koda has raised $14 million to date, according to a representative from the company. Its series A round was led by Evidenced, with participation from Mudita Venture Partners, Techstars and the Texas Medical Center last year. At the time, the company said the funding would allow it to scale operations and expand engineering, clinical strategy and customer success. The company described the round as a "pivotal moment," as it had secured investments from influential leaders in the healthcare and venture capital space.

Koda Health, which was born out of the TMC's Biodesign Fellowship in 2020, saw major growth last year, as well, and now supports more than 1 million patients nationwide through partnerships with Cigna Healthcare, Privia Health, Guidehealth, Sentara, UPMC and Memorial Hermann Health System.

The company integrated its end-of-life care planning platform with Dallas-based Guidehealth in April 2025 and with Epic Systems in July 2025. It also won the 2025 Houston Innovation Award in the Health Tech Business category. Read more here.