When it comes to Texas being a top state for business, we guess the jury's out. Photo via Getty Images

Texas economic development boosters are crowing about a new top-in-the-nation ranking. But they’re probably frowning about a different business ranking that’s mediocre.

First, the good news.

Business Facilities magazine just named Texas the 2023 State of the Year in recognition of its business climate, economic development leadership, and “blockbuster” year for capital investment and job creation. It’s the fifth time that Business Facilities has crowned Texas as the top state.

“Texas moves at the speed of business,” Gov. Greg Abbott said in a news release. “As recognized by Business Facilities magazine, Texas leads the nation for corporate relocations, business expansions, and job creation.”

“With the best business climate in the nation, leading investments in education and workforce development, and our young, skilled, diverse, and growing workforce, Texas is poised to lead the nation in 2024,” the governor added.

Additionally, Texas again appears on WalletHub's annual list of "Best States to Start a Business" — but ranks lower than last year. The Lone Star State ranked No. 8 this year compared to last year's No. 3 spot. This ranking looked at business environment, access to resources, and business costs across 25 relevant metrics by analyzing data from U.S. Census Bureau, Bureau of Labor Statistics, and other resources.

Now, the not-so-good news.

Texas landed at No. 32 on Forbes Advisor’s new list of the best states to start a small business in 2024. The Lone Star State received especially low marks economy, workforce, and business climate, but fared better in two other categories: business costs and financial accessibility.

Topping the Forbes Advisor list was North Dakota, followed by Indiana, Arkansas, South Dakota, and North Carolina.

Texas recently was awarded three other No. 1 business climate rankings, though: Best Business Climate in the U.S. by Business Facilities in June, Best Business Climate in the U.S. by corporate executives in September, and Top Business Climate in the U.S. by Site Selection Magazine in November.

“In a state the size of Texas, business is not just finding a home in the metros. A laser focus by economic developers across the state to foster established businesses as well as innovative startups is paying off for communities of all sizes,” Anne Cosgrove, editorial director of Business Facilities, says in a news release.

The magazine covers corporate site selection and economic development.

Other contenders for 2023 State of the Year were:

  • Arizona
  • Florida
  • Georgia
  • Indiana
  • Missouri
  • Nevada
  • North Carolina
  • Tennessee
  • Utah
  • Virginia
So this is how the other half lives. Photo by Austin Distel on Unsplash

Here's the income it takes to live among the top 1 percent in Texas

isn't that rich?

Wondering how "the other half lives" is so outdated, especially when we we can easily peek into what life is like for the "one percent." A new report from SmartAsset reveals how much money you'll need to be considered the top one percent in Texas.

With two Houston suburbs landing among the richest cities in Texas in a recent report, it's obvious that the Lone Star State is dotted with pockets of wealth. But how much do you actually need in your pocket to have a top one percent income?

In Texas, an annual income of $641,400 will land you at the top, while $258,400 only gets you to the top five percent.

To come up with those numbers, SmartAsset analyzed 2019 data from IRS tax units and adjusted the figures to 2022 dollars using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the Bureau of Labor Statistics.

For comparison, "the average American household earns a median income of under $70,000," according to the study. And per the latest figures from the U. S. Census Bureau, the median household income in Texas (in 2021 dollars) is $67,321. That leaves plenty of us with a long way to go in our financial striving.

So now we know how we compare to our neighbors, but where does that put the affluent population of Texas in comparison with other states?

For starters, Texas claimed the 10th highest income required to reach top income levels.

The one percent income threshold is hardest to meet in Connecticut ($955,000), Massachusetts ($900,000), New Jersey ($825,965), New York ($817,796), and California ($805,519). Only these five states have thresholds that exceed $800,00, and it's a pretty steep drop down to Texas ($641,400) in 10th place.

The five states where it's easiest to attain one percent status (even though that doesn't seem like good news) are Kentucky ($447,300), Arkansas ($446,276), New Mexico ($418,970), Mississippi ($383,128), and West Virginia ($374,712).

The SmartAsset report also included average tax rates for top earners in each state. There was surprisingly little variance in the top 10 states, with Washington state having the lowest rate (25.02%) and Connecticut collecting the highest tax rate (27.77%).

Texas was in the middle of the pack with a tax rate of 25.71% levied on top one percent incomes.

The 10 states with the highest earnings required to be a one-percenter and their tax rates are:

  1. Connecticut ($955.3K, Tax rate 27.77%)
  2. Massachusetts ($896.9K, Tax rate 26.4%)
  3. New Jersey ($826K, Tax rate 27.36%)
  4. New York ($817.8K, Tax rate 27.48%)
  5. California ($805.5K, Tax rate 26.78%)
  6. Washington ($736.1K, Tax rate 25.02%)
  7. Colorado ($682.9K, Tax rate 25.24%)
  8. Florida ($678.8K, Tax rate 25.23%)
  9. Illinois ($666.2K, Tax rate 26.23%)
  10. Texas ($641.4K, Tax rate 25.71%)
If you're on your way to being a top earner and want to do a deeper dive on those numbers, you can view the full report on the SmartAsset website.

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This article originally ran on CultureMap.

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Houston cardiac health startup raises $43 million series B to grow AI-backed platform

money moves

A Houston-based tech company that has a product line of software solutions for cardiac health has raised funding.

Octagos Health, the parent company of Atlas AI — a software platform for cardiac devices like pacemakers, defibrillators, ambulatory monitors and consumer wearables — has announced a $43 million series B raise that will bring their technology to many more hearts.

Morgan Stanley Investment Capital led the investment, which also included funds from Mucker Capital and other continuing strategic investors. The goal of the raise is to supply funds to accelerate Atlas AI’s growth across the United States and to expand into other areas of care, including ambulatory monitors, consumer wearables, and sleep.

"This investment will enable us to accelerate enhancements to our platform, in addition to scaling our commercial team and operations. We are currently the only company that helps cardiology practices migrate their historical data from legacy software providers and fully integrates with any EHR (exertion heart rate) system. We do this while enabling customized reporting supported by patient and practice decision-support analytics," says Eric Olsen, COO of Octagos Health, in a press release.

Octagos Health was founded by a team of healthcare pros including CEO Shanti Bansal, a cardiologist and founder of Houston Heart Rhythm, an atrial fibrillation center. The goal was to find a new way to deal with the massive amount of data that clinicians encounter each day in a way that combines software and the work of human doctors.

According to the Octagos Health website, “Our solution allows clinicians to focus on other ways of delivering meaningful healthcare and more efficiently manage their remotely monitored patients.”

It works thanks to customizable reporting features that allow patients’ healthcare teams to get help while monitoring them, but to do it precisely as they would if they were crunching numbers themselves.

"We are excited to partner with Octagos Health and support their vision of transforming cardiac care," says Melissa Daniels, managing director of Morgan Stanley Expansion Capital. "Octagos Health has demonstrated exceptional growth and innovation in a critical area of healthcare. We believe their platform and vertically integrated software and services significantly improve patient care and streamline cardiac monitoring processes for healthcare providers."

Will Hsu, co-founder and partner of Mucker Capital, agrees. “Octagos Health is poised for scale – industry leading gross margins, a very sticky product that doctors and clinical staff love, and a market ready for disruption with artificial intelligence. This is the new wave for diagnostic care,” he says. And with this raise, it will be available to even more clinicians and patients across the country.

Houston biotech company expands leadership as it commercializes sustainable products

joining the team

Houston-based biotech company Cemvita recently tapped two executives to help commercialize its sustainable fuel made from carbon waste.

Nádia Skorupa Parachin came aboard as vice president of industrial biotechnology, and Phil Garcia was promoted to vice president of commercialization.

Parachin most recently oversaw several projects at Boston-based biotech company Ginkjo Bioworks. She previously co-founded Brazilian biotech startup Integra Bioprocessos.

Parachin will lead the Cemvita team that’s developing technology for production of bio-manufactured oil.

“It’s a fantastic moment, as we’re poised to take our prototyping to the next level, and all under the innovative direction of our co-founder Tara Karimi,” Parachin says in a news release. “We will be bringing something truly remarkable to market and ensuring it’s cost-effective.”

Moji Karimi, co-founder and CEO of Cemvita, says the hiring of Parachin represents “the natural next step” toward commercializing the startup’s carbon-to-oil process.

“Her background prepared her to bring the best out of the scientists at the inflection point of commercialization — really bringing things to life,” says Moji Karimi, Tara’s brother.

Parachin joins Garcia on Cemvita’s executive team.

Before being promoted to vice president of commercialization, Garcia was the startup’s commercial director and business development manager. He has a background in engineering and business development.

Founded in 2017, Cemvita recently announced a breakthrough that enables production of large quantities of oil derived from carbon waste.

In 2023, United Airlines agreed to buy up to one billion gallons of sustainable aviation fuel from Cemvita’s first full-scale plant over the course of 20 years.

Cemvita’s investors include the UAV Sustainable Flight Fund, an investment arm of Chicago-based United; Oxy Low Carbon Ventures, an investment arm of Houston-based energy company Occidental Petroleum; and Japanese equipment and machinery manufacturer Mitsubishi Heavy Industries.

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This article originally ran on EnergyCapital.

3 Houston innovators to know this week

who's who

Editor's note: Every week, I introduce you to a handful of Houston innovators to know recently making headlines with news of innovative technology, investment activity, and more. This week's batch includes a logistics startup founder, a marketing expert, and a solar energy innovator.

Matthew Costello, CEO and co-founder of Voyager Portal

Houston logistics SaaS innovator is making waves with its expanded maritime shipping platform. Photo courtesy of Voyager

For several years now, Matthew Costello has been navigating the maritime shipping industry looking for problems to solve for customers with his company, Voyager Portal.

Initially, that meant designing a software platform to enhance communications and organization of the many massive and intricate global shipments happening every day. Founded in 2018 by Costello and COO Bret Smart, Voyager Portal became a integral tool for the industry that helps users manage the full lifecycle of their voyages — from planning to delivery.

"The software landscape has changed tremendously in the maritime space. Back in 2018, we were one of a small handful of technology startups in this space," Costello, who serves as CEO of Voyager, says on the Houston Innovators Podcast. "Now that's changed. ... There's really a huge wave of innovation happening in maritime right now." Read more.

Arielle Rogg, principal and founder of Rogg Enterprises

Arielle Rogg writes in a guest column for InnovationMap about AI in the workforce. Photo via LinkedIn

Arielle Rogg isn't worried about artificial intelligence coming for her job. In fact, she has three reasons why, and she outlines them in a guest column for InnovationMap.

"The advent of AI pushes us humans to acquire new skills and hone our existing abilities so we can work alongside these evolving technologies in a collaborative fashion. AI augments human capabilities rather than replacing us. I believe it will help our society embrace lifelong learning, creating new industries and jobs that have never existed before," she writes in the piece. Read more.

Nathan Childress, founder of Solar Slice

Solar Slice Founder Nathan Childress says his new venture offers a fulfilling way to encourage and promote solar energy and a greener planet. Photo via LinkedIn

Nuclear engineer and entrepreneur Nathan Childress wants consumers to capture their own ray of sunlight to brighten the prospect of making clean energy a bigger part of the power grid. That's why he founded Solar Slice. The new venture offers a fulfilling way to encourage and promote solar energy and a greener planet.

Although trained in nuclear power plant design, solar power drew his interest as a cheaper and more accessible alternative, and Childress tells InnovationMap that he thinks that the transition to cleaner energy, in Texas especially, needs to step up.

Recent studies show that 80 to 90 percent of the money invested into fighting climate change “aren’t going to things that people actually consider helpful,” Childress says, adding that “they’re more just projects that sound good, that are not actually taking any action." Read more.