Clutch City: Is 2020 a time of devastation or doubling down for Houston?

guest column

Houston has proven to be resilient time and time again. In a guest column, Amy Chronis explores if 2020 has the potential to be Clutch City's breaking point. Photo via Pexels

"Clutch City" may be Houston's most befitting nickname — and it has proven to stand the test of time. Whoever coined the term likely had no idea in how many ways this moniker would be tested and upheld over the next 20-plus years.

Time and time again the fourth largest city in America has proven to be resilient, whether it be a natural catastrophe, tough economic times or the global pandemic. But, will the multi-dimensional stresses of 2020 break the city's winning streak?

Houston is also well known for being The Energy Capital of the World, a qualifier that has meant record revenue and jobs growth, as well as weathering several oil and gas economic down cycles. While the city has taken many hits from previous downturns, it has always been able to recover. The oil, gas and chemicals downturn of 2020, however, is unlike anything we've ever seen before — and could fundamentally transform the energy industry, as well as Houston's economy.

This year, the industry has been grappling with the energy transition while it is also is facing the "Great Compression," sustained low oil prices on top of diminished oil demand from the global pandemic, and the "Great Crew Change." The confluence of these simultaneous challenges could have profound impacts on the workforce and future of work in the oil, gas and chemicals industry. According to Deloitte's latest report, 70 percent of jobs in the industry lost during the pandemic may not return by the end of 2021.

The silver lining "clutch" play may be that Houston already has been on the path and is continuing to diversify its businesses, even within the energy and industrial sectors. The Greater Houston Partnership touts Houston's key industries beyond energy, including advanced manufacturing, aerospace and aviation, life sciences and biotechnology, digital technology and transportation and logistics. Notably, the common thread linking these industries is the need for greater digitalization of and within business models.

The encouraging news is that Houston has anticipated this need and factored it into its future planning. For example, the development of Ion Houston is designed to be the anchor of a 16-plus acre Innovation District in Houston dedicated to innovation, entrepreneurship and technology. This could be the type of investment the city needs to focus on as we grapple with a hard-hit economy. At this point, it is beyond choosing to prioritize moving to what's been called Industry 4.0 — digitalization should be a priority for companies wanting to survive and stay competitive.

According to an analysis conducted by the Greater Houston Partnership of the largest Texas cities, the following sectors had the most VC deals in technology over the last 20 years: life science, oil and gas, oncology, B2B payments, infrastructure and FemTech. The analysis also showcased the top niche tech specialties outside of oil and gas spanned multiple industries including life sciences, legal, space, environmental and FinTech. Houston's dual effort of industry diversification and focus on digitalization has been prescient.

COVID-19 has further accelerated the importance for companies across sectors to get on the fast track to Industry 4.0. The time for transformation is now. The oil, gas and chemicals sector, as well as all sectors, should start building a workforce for the future in order to survive and break the barriers to entry to Industry 4.0. This effort typically includes attracting people across generations by promoting sustainability, offering new digital ways of working, making flexible/remote working a permanent reality while building a sense of pride amongst the workforce toward the work product and organization itself.

Organizational agility is one way through this downturn. Challenging traditional ways of thinking and functioning will likely be required for companies to remain competitive.

The advance work and planning Houston has undertaken to diversify its economy by expanding its industries and focusing on digitalization and the future of workforce, together may ensure that we keep Houston strong and that the "Clutch City" lives up to its name.

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Amy Chronis is the Houston managing partner at Deloitte.

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5+ must-know application deadlines for Houston innovators

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Editor's note: As 2026 ramps up, the Houston innovation scene is looking for the latest groups of innovative startups that'll make an impact. A number of accelerators and competitions have opened applications. Read below to see which might be a good fit for you or your venture. And take careful note of the deadlines. Please note: this article may be updated to include additional information and programs.

Did we miss an accelerator or competition accepting applications? Email innoeditor@innovationmap.com for editorial consideration.

2026 HCC Business Plan Competition

Deadline: Jan. 26

Details: HCC’s annual Business Plan Competition (BPC) is an opportunity for proposed, startup and existing entrepreneurs to develop focused plans to start or grow their businesses. Accepted teams will be announced and training will begin in late February and run through early June, with six free, three-hour training sessions. Advising will be provided to each accepted team. Applicants can apply as a team of up to five persons. Finalists will present to to gudges on May 27, 2026. Last year, $26,000 was awarded in seed money to the top five teams. In-kind prizes were also awarded to all graduating teams including free products, services and memberships, with an estimated in-kind value totaling $147,000. Find more information here.

University of Houston Technology Bridge Innov8 Hub (Spring 2026)

Deadline: Jan . 30

Details: UHTB Innov8 Hub’s immersive, 12-week startup acceleration program designed to help early-stage founders launch and scale their technology startups. Selected participants will gain access to expert mentors and advisors, collaborate with a cohort of peers, and compete for cash prizes during our final pitch event. The cohort begins Feb. 16, 2026. The program culminates in Pitch Day, where participants present their ventures to an audience of investors and partners from across the UH innovation ecosystem. Find more information here.

Rice Business Plan Competition 2026

Deadline: Jan. 31

Details: The Rice Business Plan Competition, hosted by the Rice Alliance for Technology and Entrepreneurship, gives collegiate entrepreneurs real-world experience to pitch their startups, enhance their business strategy and learn what it takes to launch a successful company. Forty-two teams will compete for more than $1 million in cash, investments and prizes on April 9-11, 2026. Find more information here.

Rice Veterans Business Battle 2026

Deadline: Jan. 31

Details: The Rice Veterans Business Battle is one of the nation’s largest pitch competitions for veteran-led startups, providing founders with mentorship, exposure to investors and the opportunity to compete for non-dilutive cash prizes. The event has led to more than $10 million of investments since it began in 2015. Teams will compete April 8-9, 2026. Find more information here.

TEX-E Fellows Application 2026-2027

Deadline: Feb. 10

Details: The TEX‑E Fellowship is a hands-on program designed for students interested in energy, climate, and entrepreneurship across Texas. It connects participants with industry mentors, startup founders, investors and academic leaders while providing practical, "real-world" experience in customer discovery, business modeling, and energy-transition innovation. Fellows gain access to workshops, real-world projects, and a statewide network shaping the future of energy and climate solutions. Participants must be a student at PVAMU, UH, UT Austin, Rice University, MIT or Texas A&M. Find more information here.

Greentown Go Make 2026

Deadline: March 10

Details: Greentown Go Make 2026 is an open-innovation program with Shell and Technip Energies. The six-month program is advancing industrial decarbonization by accelerating catalytic innovations. Selected startups will gain access to a structured platform to engage leadership from Shell and Technip Energies and explore potential partnership outcomes, including pilots and demonstrations. They’ll also receive networking opportunities, partnership-focused programming, and marketing visibility throughout the program. The cohort will be selected in May. Find more information here.

Houston startups closed $1.75 billion in 2025 VC funding, says report

by the numbers

Going against national trends, Houston-area startups raised 7 percent less venture capital last year than they did in 2024, according to the new PitchBook-NVCA Venture Monitor report.

The report shows local startups collected $1.75 billion in venture capital in 2025, down from $1.89 billion the previous year.

Houston-based geothermal energy company Fervo Energy received a big chunk of the region’s VC funding last year. Altogether, the startup snagged $562 million in investments, as well as a $60 million extension of an existing loan and $45.6 million in debt financing. The bulk of the 2025 haul was a $462 million Series E round.

In the fourth quarter of last year, Houston-area VC funding totaled $627.68 million. That was a 22 percent drop from $765.03 million during the same period in 2024. Still, the Q4 total was the biggest quarterly total in 2025.

Across the country, startups picked up $339.4 trillion in VC funding last year, a 59 percent increase from $213.2 trillion in 2024, according to the report. Over the last 10 years, only the VC total in 2021 ($358.2 trillion) surpassed the total from 2025.

Nationwide, startups in the artificial intelligence and machine learning sector accounted for the biggest share of VC funding (65.4 percent) in 2025, followed by software-as-a-service (SaaS), big data, manufacturing, life sciences and healthtech, according to the report.

“Despite an overall lack of new fundraising and a liquidity market that did not shape up as hoped in 2025, deal activity has begun a phase of regrowth, with deal count estimates showing increases at each stage, and deal value, though concentrated in a small number of deals, falling just [8 percent] short of the 2021 figure,” the report reads.

Sandbox VR brings new gaming center to Houston's tech-savvy population

Get In The Game

Sandbox VR, a futuristic, full-body virtual reality gaming experience, has announced it will enter the Houston market this month, opening its first local gaming center on January 23.

"Houston's reputation as a hub for innovation and technology makes it a perfect fit for Sandbox VR," said Steve Zhao, CEO and founder of Sandbox VR, in a statement. "The city's diverse, tech-savvy population and strong entertainment culture create an ideal environment for our immersive VR experiences. LOL Entertainment continues to exceed our expectations as a partner, and we're excited to bring our cutting-edge virtual reality gaming to Texas's largest city."

The new gaming center opens Friday, January 23 at 797 Sorella Court in CityCentre.

One of the games that stands out is the Stranger Things: Catalyst game, based on the blockbuster Netflix television series. Groups of one to six players will be dropped into the sinister Hawkins Lab and the mysterious Upside Down to fight Demogorgons and other monsters. The game features Matthew Modine reprising his role as Dr. Martin "Papa" Brenner, who imbues players with psychic powers.

Other games include the supernatural pirate title The Curse of Davy Jones and other Netflix tie-ins based on Zack Snyder's Rebel Moon and Squid Game. Sandbox VR offers fully-immersive group play activities that range from combat to puzzle solving for a variety of age groups.

The opening of Sandbox VR is another part of the expansion of LOL Entertainment, who touts itself as one of the pre-eminent hosts of immersive and gaming experiences in the U.S. Sandbox VR will be their first entry into the Houston market, with another immersive group adventure game, Time Mission, set to open at the the Marq'E Entertainment District later this year.

“Bringing Sandbox VR to CityCentre Houston is a big milestone for LOL Entertainment, for Sandbox VR, and for this market,” said Rob Cooper, CEO of LOL Entertainment. “Houston is a fast-growing, experience-driven city, and we’re excited to give locals and visitors a truly immersive, social gaming destination that you can’t replicate anywhere.”

Presale tickets for the grand opening of Sandbox VR are available here. Standard pricing is $55-$65 per event, but Sandbox VR is running a special for 30 percent off with code OPEN30 for those who purchase before Thursday, January 22. Presale buyers are also entered into a drawing for free Sandbox VR for one year.

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This article originally appeared on CultureMap.com.

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