These three startups are innovating flood damage mitigation tools so that Houstonians can have peace of mind this hurricane season. Getty Images

In light of Houston's frequent floods, a local organization has formed to encourage innovation in resiliency — especially as the city moves throughout the 2020 hurricane season.

The Gulf Coast & Southwest Resilience Innovation Hub was founded last month by the Insurance Information Institute and ResilientH20 Partners in The Cannon's downtown location. The organization is looking into the best innovations within resiliency — especially as it pertains to Houston, where nine of the 10 most expensive hurricanes in the United States have occurred in the past 16 years.

"There has been a widespread interest in, and demand for, best-in-class actionable, alternative disaster mitigation solutions since 2017's Hurricane Harvey and subsequent storms caused extensive insured losses to autos, homes, businesses, and governmental properties," says Richard Seline, managing partner of ResilientH2O Partners, in a news release.

The organization held a virtual panel and pitch session that featured three flood-focused startups. Here are the three companies and their innovative solutions to flood mitigation.

True Flood Risk

True Flood Risk uses machine learning and artificial intelligence to assess a home's flood risk. Image via truefloodrisk.com

Shelly Klose founded her company, True Flood Risk, after she observed Hurricane Sandy devastating New Jersey. But, she wondered, why some homes were hit harder than others. So, she created an artificial intelligence-driven property risk management platform that would easily indicate how susceptible to flood damage each home is. The company even has a way to measure the property's first-floor height based street view images.

"With this key data point for structural height coupled with ground elevation and flood zone data, you have a good indication if that property is at risk," Klose says.

The New York-based company allows users to run their address and learn about their flood damage risk for free — and that's something Klose says thats a tool she's seen used more frequently amid the pandemic.

"What we're finding is people have been so emotionally and financially hit so hard during this pandemic," Klose says. "The last thing you want to do is lose your house."

FloodFrame

Self-deploying flood protection for buildings

FloodFrame is a self-deploying flood protection for buildings. Photo via floodframe.com

Part of the challenge of mitigating flood damage is that it can happen in an instant with little to no warning. FloodFrame provides a solution to that in its self-inflating technology that can detect and prevent flood damage.

FloodFrame works by using buoyancy. A lightweight cloth is wrapped around a tube is installed underground outside the perimeter of your home or business. One end of that cloth is attached to a box that is also installed underground. As flooding begins, an automatic system will release the lids to deploy the inflation of the tube that will protect the structure. When the flood comes in, the system will float on top of the flood — kind of like a pool noodle — and protect the structure from the water. It's easier to install than raising a house, for instance, and can be reused as a long-term solution.

Tasha Nielsen launched the U.S. iteration of FloodFrame — which originated in Denmark — by becoming the company's first franchisee. Now, that process how the company plans to grow and expand and Nielsen is working with home builders and contractors to provide the invention in new homes and buildings. Nielsen also hopes to work with insurance companies, since the device helps prevent costly payouts.

Climaguard

A waterproof container for your car.

Houston-based ClimaGuard is looking to help drivers protect their vehicles from floods. Photo via ClimaGuard/Facebook

Hundreds of thousands of cars were damaged during Hurricane Harvey, and those car owners faced financial burdens from having to find temporary transportation to repairing or even buying a new vehicle. Rahel Abraham, who lost her car during the storm, founded Houston-based ClimaGuard to help enable people to help protect their cars or possessions from the elements.

"We're providing a resilient, practical, and real-time solution," says Abraham.

The tool is easy to use and affordable, considering the costs of potential damages, with a starting price of $399. The average insurance payout for vehicles was $12,000, Abraham says, so it's actually a great risk mitigation tool for auto insurers.

From a water-absorbing tower to sensor-enabled rubber ducks, here are some flooding solution ideas coming out of Houston. Courtesy of Gensler's ByDesign

These Houston entrepreneurs and startups are searching for flooding solutions

Flood tech

The feeling is all too familiar for Houstonians. Tropical Storm Imelda hit Houston with devastating flood waters just two years after Hurricane Harvey did its damage.

With any obstacle or challenge, there is room for innovation. Over the past year, InnovationMap has covered various flood tech startups in Houston. Here are six innovations that can make a difference the next time a storm decides to take its toll on Houston.

Self-deploying flood protection for buildings

FloodFrame's technology can protect a home or commercial building from flood water damage. Photo via floodframe.com

A self-deploying flood damage prevention device caught Tasha Nielsen's eye on a trip to Denmark, and then launched the U.S. iteration of FloodFrame to bring the technology here.

FloodFrame works by using buoyancy. A lightweight cloth is wrapped around a tube is installed underground outside the perimeter of your home or business. One end of that cloth is attached to a box that is also installed underground. As flooding begins, an automatic system will release the lids to deploy the inflation of the tube that will protect the structure. When the flood comes in, the system will float on top of the flood — kind of like a pool noodle — and protect the structure from the water.

FloodFrame adds a level of security during flooding events and can be considered more cost-effective when compared to the high cost of renovating or rebuilding after flooding.

"Right now we are focused on residential but I think there's a huge potential for it to go commercial. A lot of commercial buildings are self insured, and commercial developers, industrial developers, this would be a drop in the bucket for the overall cost of the entire project," Nielsen tells InnovationMap. "For homeowners, it's kind of a bigger expense, but I think there is the potential for homebuilders to include it as an option in the entire package of a new house because when you put it in to a mortgage, it's only another like $0.50 a month."

A waterproof container for your car.

After the floods from Hurricane Harvey totaled her car, Rahel Abraham wanted to find a solution. ClimaGuard/Facebook

Floodwaters from Hurricane Harvey seriously damaged about 600,000 vehicles in the Houston area, which included Rahel Abraham's 2008 Infiniti G35. Now, Abraham's brainchild forms the backbone of her Houston-based startup, ClimaGuard LLC. The company's waterproof, temperature-resistant, portable Temporary Protective Enclosure (TPE) can entirely cover a compact car, sedan, or midsize SUV. It comes in three sizes; the cost ranges from $349 to $499.

To protect a vehicle, someone sets a TPE on the ground, a driveway, or another flat surface, then drives the vehicle onto the bottom part of the product, and connects the bottom and top parts with the zipper. Abraham likens it to a clamshell preserving a pearl.

"My goal is not to make it to where it's an exclusive product — available only to those who can afford it — but I want to be able to help those who it would make even more of an economic impact for," Abraham tells InnovationMap.

A network to find shelter.

Reda Hicks create GotSpot — a digital tool that helps connect people with commercial space with people who need it. Courtesy of GotSpot

It only took a natural disaster for Reda Hicks to make her startup idea into a reality.

"I had been thinking on what it would be like to help people find space to do business in and how businesses find a way to stay in business a long time," Hicks tells InnovationMap. "But, I was afraid of the tech."

Hicks, who has practiced law for almost 15 years, wanted to create a website that allows for people with commercial space — a commercial kitchen, conference room, spare desks, etc. — to list it. Then, space seekers — entrepreneurs, nonprofits, freelancers, etc. — can rent it. When Hurricane Harvey hit, Hicks was kicking herself for not acting on her idea sooner.

"It was really Harvey and having so many people desperate to find space for emergency purposes that made me realize there are so many contexts in which people need space right away for something specific," she says. "Certainly the primary user is the entrepreneur trying to grow their business, but there are so many other reasons why a community would need better access to the space it already has."

Now Hicks is growing GotSpot in hopes that short-term rental space and emergency housing can be smooth sailing no matter the circumstances. Recently, the company was named a finalist for MassChallenge Texas in Austin.

A water-absorbing tower. 

Fil Trat would be able to absorb water, filter it, and release it into the body of water when the time comes. Courtesy of Gensler's ByDesign

In the wake of Hurricane Harvey, many Houstonians began to think of solutions for the next time Mother Nature struck with her full-force of flooding. Gensler designers Chelsea Bryant, Jordan Gomez, Luisa Melendez, Barbara Novoa, Benjamin Nanson, Maria Qi, and Melinda Ubera created a solution as a part of Gensler's By Design program called Fil Trat. The tower can absorb, filter, and store flood waters until the bayou is ready for the water to be released — cleaner than it was before.

During Harvey, thousands of people were displaced, but Fil Trat has a solution for that too. The tower's floors would alternate between filtration floors and shelters, which could house up to 24 families per floor.

While the suggested Houston locale would be by Buffalo Bayou, the group suggests putting the tower in other coastal cities at risk of devastating flooding.

Sensor-enabled rubber ducks that can track weather developments.

Sensor-enabled rubber ducks might be the solution to keeping track of major weather events. Courtesy of Project Owl

Nearly two years after Hurricane Harvey battered the Houston area, a flock of electronic "rubber ducks" flew above homes in Katy in a broader endeavor to keep first responders and victims connected during natural disasters.

Developers and backers of Project Owl, an Internet of Things (IoT) hardware and software combination, conducted a pilot test of this innovation June 1 — the first day of this year's hurricane season. In the Katy test, 36 "ducks" took flight.

"So, our technology can be deployed to help communities that have been destroyed after natural disasters by providing quickly accessible communications network to coordinate and organize a response," Bryan Knouse, co-founder and CEO of Project Owl, tells InnovationMap.

The DuckLink network comprises hubs resembling rubber ducks, which can float in flooded areas if needed. It takes only five of these hubs to cover one square mile. This network sends speech-based communications using conversational systems (like Alexa and Facebook Messenger) to a central application. The app, the Owl software incident management system, relies on predictive analytics and various data sources to build a dashboard for first responders.

Restored native wetland coastal prairies.

Memorial Park Conservancy is gearing up to unveil one if its first projects within its 10-year master plan redevelopment. Photo courtesy of MPC

Before it was the fourth largest city in America, Houston was a prairie. That type of ecosystem — thick with prairie grass — is very absorbing when it comes to rain water. Cassidy Brown Johnson, a Rice University lecturer and president of the Coastal Prairie Partnership, has been taking every opportunity to raise awareness on the importance of prairie restoration.

"It's really surprising to people that the trees and all this lushness is actually all artificial," Johnson says. "We know that this ecosystem evolved with the cyclical flooding events that happened here."

This movement to bring back Houston's ancient ecosystem is a new focus on a few prairie conservationist groups — and even the Harris County Flood Control. This has been going on for a while, but recent flooding events have opened the eyes of people now looking for reliable solutions to flooding problems.

"After Hurricane Harvey, people started realizing that this might be one of the solutions we could actually investigate and see if it can help us," Johnson says. "A green space is going to absorb way more water than a parking lot."

Memorial Park Conservancy's master plan redevelopment project, which is being supported by the Kinder Foundation, includes a lot of prairie restoration plans is expected to deliver by 2028.

The project is a collaborative effort between MPC, Uptown Houston TIRZ, and Houston Parks, Kinder Foundation, and Recreation Department to redevelop the 1,500-acre park. An ongoing part of the transformation will be stormwater management upgrades. MPC has budgeted $3 million to this asset of the renovation. While a part of the plan is tributaries for run-off water, bringing back prairie and wetlands will do a great deal to help abate stormwater.

"We're taking ball fields, parking lots, and roads and converting them back to what was here — native wetland coastal prairie," MPC president and CEO Shellye Arnold tells InnovationMap. "This serves important stormwater purposes."

Airports, spaceports, and carports — these three Houston innovators represent the city's future. Courtesy photos

3 Houston innovators to know this week

Who's who

This week's Houston innovators to keep an eye on are working on technologies that are true testaments to the day and age we live in. From commercial space travel to a product that protects vehicles from floodwaters that are more and more frequent, these entrepreneurs are providing solutions to problems no one even dreamed of having a few decades ago.

Mark Bergsrud, co-founder and CEO of Grab

Courtesy of Grab

For over 20 years, Mark Bergsrud worked at the intersection of travel and technology — first at Continental Airlines, then at United Airlines following the merger, and now for himself as the co-founder of Grab, a Houston startup that's making grabbing a bite at the airport way easier.

Grab's technology digitizes and optimizes the airport dining experience — from ordering pickup remotely ahead of time to kiosks or table tablet ordering. The company, which has operations in 37 airports, just closed a multimillion-dollar Series A fundraising round to help continue its growth.

"We've called ourselves a startup for a long time, and now we think of ourselves as more of a scale-up company," Bergsrud says. "Now it's about having the money to scale faster."

Read more about the company by clicking here.

Rahel Abraham, founder of ClimaGuard

Courtesy of ClimaGuard

For inventors, you can usually pinpoint a particular "eureka" moment. For Rahel Abraham, it was seeing her 2008 Infiniti G35 completely totaled by the rain waters of Hurricane Harvey. She knew there had to be some way to protect cars and valuables from flooding, so she invented ClimaGuard's Temporary Protective Enclosure.

Abraham, who was selected for the 12-week DivInc accelerator program in Austin for her company, wants to make the product available to everyone.

"My goal is not to make it to where it's an exclusive product — available only to those who can afford it — but I want to be able to help those who it would make even more of an economic impact for," Abraham says.

Read more about the company by clicking here.

Arturo Machuca, general manager of Ellington Airport and the Houston Spaceport

Arturo Machuca

Courtesy of the Houston Airport System

Arturo Machuca is playing a waiting game. Various companies are developing commercial spaceflight and — whether that technology delivers in two years or 10 years, Machuca wants Houston to be ready. Ellington Airport and the Houston Spaceport are being developed throughout a multiphase, multimillion-dollar process, while also serving as an active airport.

"We use what we already have at Ellington Airport," Machuca tells InnovationMap. "We're serving aviation today until commercial spaceflight gets here."

Read the full interview by clicking here.

After the floods from Hurricane Harvey totaled her car, Rahel Abraham wanted to find a solution. ClimaGuard/Facebook

Houston entrepreneur has created a way to protect vehicles from devastating floods

Car safety

Floodwaters from Hurricane Harvey seriously damaged about 600,000 vehicles in the Houston area, driving millions upon millions of dollars in auto insurance claims. Rahel Abraham's 2008 Infiniti G35 was among them.

Rather than merely moving on from the hurricane, though, Abraham — drawing upon her experience as an engineer in Houston's petrochemical industry — invented something that she foresaw shielding cars from the economic wrath of flooding.

Now, Abraham's brainchild forms the backbone of her Houston-based startup, ClimaGuard LLC. The next several weeks promise to be momentous for the business — Abraham will enter the 12-week DivInc business accelerator program in Austin in late August, and the company's first product is set to hit the market in early September.

ClimaGuard's waterproof, temperature-resistant, portable Temporary Protective Enclosure (TPE) can entirely cover a compact car, sedan, or midsize SUV. It comes in three sizes; the cost ranges from $349 to $499.

To protect a vehicle, someone sets a TPE on the ground, a driveway, or another flat surface, then drives the vehicle onto the bottom part of the product, and connects the bottom and top parts with the zipper. Abraham likens it to a clamshell preserving a pearl.

Once the vehicle is inside the TPE, it can be anchored with straps to a sturdy fixture. It's designed to withstand up to three feet of water and keep the vehicle from floating away.

One person can set up a TPE in less than five minutes, Abraham says.

She hopes to team up with auto insurers to offer discounts for policyholders that have a TPE. This, Abraham says, would spur more people to buy the product.

"My goal is not to make it to where it's an exclusive product — available only to those who can afford it — but I want to be able to help those who it would make even more of an economic impact for," Abraham says.

Among potential customers for the TPE are car owners, homeowners, small businesses, first-responder organizations, and nonprofit agencies, Abraham says. Other than vehicles, the product could protect valuables like antique pianos and restaurant gear, according to Abraham.

The sense of "helplessness and vulnerability" Abraham felt after her car was lost in Hurricane Harvey propelled her to devise ClimaGuard's TPE, she says, so that others might avoid enduring the sort of "stressful and traumatic" ordeal that she did.

Another catalyst: After hatching the idea for the TPE, Abraham learned that more than 41 million Americans live in federally designated flood zones, and that flooding is the costliest type of natural disaster in the U.S. and is forecast to occur more frequently. That research "validated my gut feeling," she says.

Abraham, a first-time entrepreneur, founded the bootstrapped startup in 2018, just a year after Harvey. Today, she's the only full-time employee of ClimaGuard. She holds a bachelor's in chemical engineering from the University of Texas at Austin and a master's degree in environmental engineering from the University of Houston.

Abraham says she hopes participating in the 12-week DivInc accelerator program in Austin will broaden her business network and hone her marketing skills. ClimaGuard was among 13 companies selected for this fall's DivInc group, which is sponsored by JPMorgan Chase.

DivInc aims to diversify the startup environment by offering workshops, mentoring, and business-strategy assistance to underrepresented entrepreneurs — people of color and women. The Austin-based nonprofit organization chooses participants through an application process that its program director, Brooke Turner, describes as being "extremely competitive" this year.

"It's tough being a developer or entrepreneur when no one looks like you when you walk into a room of other developers or entrepreneurs," DivInc co-founder Ashley Jennings told Crunchbase in 2017. "How can they feel that they fit in? So what we have now is an opportunity to create role models with this generation."
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AI-powered Houston startup helps restaurants boost customer loyalty

order up

It’s no secret that restaurant trends move fast and margins run thin. And with the proliferation of platforms like Uber Eats, DoorDash and Easy Cater, customer loyalty is fleeting.

The solution?

How about an AI-powered restaurant technology platform that helps restaurant brands cut back on third-party platforms in favor of driving direct discovery, conversion and loyalty?

Enter Saivory. Founded in 2025 by Stephen Klein, a software investor, and Fajita Pete’s restaurateur Hugh Guill, the Houston-based startup aims to help eateries better understand and activate guest behavior across digital channels as AI increasingly reshapes how consumers discover and engage with brands.

In less than a year, Saivory has partnered with Shipley Do-Nuts and Fajita Pete’s to bring AI-powered ordering to life.

“With Saivory, we were able to answer the question of, ‘what if the ordering process could be reduced to a single step, where customers simply tell us what they want and AI takes care of the rest?’” Klein tells InnovationMap.

The Houston-based startup made such an immediate impact that it was selected as a semi-finalist during Start-Up Alley at MURTEC, the restaurant industry’s leading technology conference, which took place last month in Las Vegas.

“Houston is a great hub for technology innovation, and we were proud to represent the city at MURTEC this year,” says Klein. “We didn’t win, but we were able to talk about some of the work that we have existing in the market for clients right now and a little bit about what we’re working on in the future.”

In the current restaurant technology ecosystem, the third-party aggregators own the customer attention that brings volume to restaurants, while also taking big commissions and having control over the end relationships with the customer.

That can often make it difficult for restaurants to grow loyalty and repeat business from customers. Saivory aims to level the playing field for restaurants, helping them stay more connected to their customers.

Take Saivory’s recent application with Shipley’s Do-Nuts, for example.

Saivory powered the donut giant’s AI-ordering and launched Shipley's website and mobile app to support its over 300 locations in Texas alone.

Shipley’s new AI-powered assistant helps users create personalized order recommendations based on individual or group preferences. And unlike standard chatbox features, the new assistant makes custom recommendations based on multiple customer factors, including budgetary habits, individual flavor preferences and order size. It can also be used for large catering orders.

“They're seeing more traffic to the site and they're seeing when customers use our AI-enabled flows,” Klein says. “And they're seeing higher basket sizes, bigger tickets, by about 25 percent.”

Klein says Saivory’s technology helps strengthen first-party digital relationships, reduce friction and cart abandonment, improve average order value, and delivers personalized, efficient experiences.

“It’s a win-win: the customer gets the right order quickly, while the restaurant gets a bigger margin,” he adds.

Additionally, the technology makes it easier for restaurants to share rewards, loyalty and discounts, ultimately growing more direct traffic and making restaurants less reliant on third-party delivery apps.

Next up for Saivory is adding new components to its platform to enhance the relationship between restaurant and customer, as well as technology around making it easier for restaurants to get found on Google.

“A lot of people are still searching for the best donuts near me,” Klein says. “Or what’s the best Mexican food near me? Customers will increasingly move to AI, where they’re going to ask where they should eat dinner and expect it to just order them dinner. They will eventually expect the technology to know how to do that. So that’s what we’re driving at.”

Houston leads U.S. in population growth for 2025, Census says

Boomtown

Imagine that the Houston metro area swallowed a city the size of Pearland in just one year. That’s essentially what happened from 2024 to 2025, with the Houston metro ranking first in the U.S. for population growth based on the number of people.

New estimates from the U.S. Census Bureau show the 10-county Houston metro added 126,720 residents from July 1, 2024, to July 1, 2025. That’s just shy of Pearland’s roughly 133,000-resident tally.

To calculate population, the Census Bureau counts births, deaths, new residents, and moved-away residents.

Region’s population approaches 8 million

On July 1, 2025, the Houston metro’s population hovered slightly above 7.9 million, up 1.6 percent from the same time in 2024. In the very near future, the region’s population should break the eight million mark.

This follows massive growth in the past 20 years. From 2005 to 2025, the region’s population soared by 39 percent. By comparison, the growth rate from 2021 to 2025 sat at nine percent.

A forecast from the Texas Demographics Center indicates that under a middle-of-the-road scenario, the Houston metro’s population will reach nearly 8.5 million in mid-2030 and more than 9.5 million in mid-2040.

Dan Potter, director of Rice University’s Houston Population Research Center, attributes much of the region’s population surge to people moving to the area from outside the U.S. In Harris County, this means a combination of military personnel returning home, people living or working overseas coming back to the U.S., and immigrants relocating to the U.S., he tells CultureMap.

But Harris County fell short from 2024 to 2025 when it comes to people moving here from elsewhere in the U.S., according to Potter. Counties surrounding Harris County benefited from that trend, drawing new residents who preferred to settle in the suburbs.

“The incredible pull and attraction of the Houston area is its economy, its people, and its affordability, and the significant growth that was observed in 2024 and again in 2025 speaks to the magnetism of the region,” Potter says. “That pull to Houston is too strong to be turned off overnight.”

Cooling economy and immigration shifts slow down growth

Whether looking at urban or suburban places, population growth in the Houston area slowed in 2025 and appears to be slowing even more this year, Potter says.

“A cooling economy and changes to immigration policy are a one-two combination that could knock out the region’s population growth,” says Potter, citing the region’s addition of a less-than-expected 14,800 jobs in 2025 as an example.

Weaker population growth may not be felt evenly across the metro area, according to Potter.

A continuing influx of people from Houston to outlying counties such as Brazoria, Fort Bend, Liberty, Montgomery, and Waller could curb growth in Harris County, Potter said. Why? If the number of people arriving from other other countries flattens or even drops, then there could be “doughnut-style population growth for the next few years, where Harris County and Houston see declines while the suburban counties see an increase.”

Harris County represents 40 percent of region’s population lift

Houston-anchored Harris County accounted for almost 40 percent of the region’s population spike from 2024 to 2025. In one year, Harris County grew by 48,695 residents, or 1 percent, pushing its population past five million. That increase put Harris County in first place for numeric growth (rather than percentage growth) among all U.S. counties.

From 2020 to 2025, Harris County’s growth rate was 6.6 percent. It remains the country’s third largest county based on population, behind Southern California’s Los Angeles County and Illinois’ Chicago-anchored Cook County.

Harris County is on track to surpass Cook County in size in the near future. As of July 1, 2025, a nearly 150,000-resident gap separated population-losing Cook County and fast-growing Harris County.

The Texas Demographics Center predicts Harris County’s population will be 5.37 million in mid-2030 and just short of six million in mid-2040.

Suburban counties see significant population gains

Harris County isn’t the only county in the area that experienced a growth spurt from 2024 to 2025:

  • Waller County’s population climbed 5.69 percent, winding up at 69,858. Its growth rate ranked second among U.S. counties.
  • Liberty County’s population rose 4.4 percent to 121,364, putting its growth rate in eighth place among U.S. counties.
  • Montgomery County gained 30,011 residents, with its population landing at 781,194. That placed it at No. 4 among U.S. counties for numeric growth.
  • Fort Bend County picked up 24,163 residents, arriving at a total of 975,191 and positioning it at No. 8 among U.S. counties for numeric growth. Fort Bend County, the region’s second largest county based on population, is projected to break the one million-resident mark by July 2030, according to the Texas Demographics Center.

“Lower mortgage rates from 2009 to 2022 and the rise of remote work have made suburban housing more attractive, especially for families seeking affordability,” Pramod Sambidi, the Houston-Galveston Area Council’s assistant director of data analytics and research, said last year. “Additionally, suburban areas are seeing more multifamily developments than before the pandemic.”

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This article originally appeared on CultureMap.com.

5 Houston-area companies named among world's most innovative for 2026

In The Spotlight

Led by Conroe-based Hertha Metals, five organizations in the Houston area earned praise on Fast Company’s list of the World’s Most Innovative Companies of 2026.

Hertha Metals ranked No. 1 in the manufacturing category.

Last year, Hertha unveiled a single-step process for steelmaking that it says is cheaper, more energy-efficient and just as scalable as traditional steel manufacturing. It started testing the process in 2024 at a one-metric-ton-per-day pilot plant.

At the same time, Hertha announced more than $17 million in venture capital funding from investors such as Breakthrough Energy, Clean Energy Ventures, Khosla Ventures, and Pear VC.

“We’re not just reinventing steelmaking; we’re redefining what’s possible in materials, manufacturing, and national resilience,” Laureen Meroueh, founder and CEO of Hertha, said at the time.

Meroueh was also recently named to Inc. Magazine's 2026 Female Founders 500 list.

Hertha, founded in 2022, says traditional steelmaking relies on an outdated, coal-based multistep process that is costly, and contributes up to 9 percent of industrial energy use and 10 percent of global carbon emissions.

By contrast, Hertha’s method converts low-grade iron ore into molten steel or high-purity iron in one step. The company says its process is 30 percent more energy-efficient than traditional steelmaking and costs less than producing steel in China.

Last year, Hertha said it planned to break ground in 2026 on a plant capable of producing more than 9,000 metric tons of steel per year. In its next phase, the company plans to operate at 500,000 metric tons of steel production per year.

Here are Fast Company’s rankings for the four other Houston-area organizations:

  • Houston-based Vaulted Deep, No. 3 in catchall “other” category.
  • XGS Energy, No. 7 in the energy category. XGS’ proprietary solid-state geothermal system uses thermally conductive materials to deliver affordable energy anywhere hot rock is located. While Fast Company lists Houston as XGS’ headquarters, and the company has a major presence in the city, XGS is based in Palo Alto, California.
  • Houston-based residential real estate brokerage Epique Realty, No. 10 in the business services category. Epique, which bills itself as the industry’s first AI brokerage, provides a free AI toolkit for real estate agents to enhance marketing, streamline content creation, and improve engagement with clients and prospects.
  • Texas A&M University’s Nanostructured Materials Lab in College Station. The lab studies nano-structured materials to make materials lighter for the aerospace industry, improve energy storage, and enable the creation of “smart” textiles.
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This article first appeared on our sister site, EnergyCapitalHTX.com.