Texas lands top 10 spot in new future of tech study

report

A report by web-hosting company Hostinger showed that Texas is making one of the biggest impacts on the digital economy. Photo via Getty Images

Texas is among the top 10 states making the biggest investments in digital innovation, according to a new study.

The study, conducted by web-hosting company Hostinger, puts Texas in eighth place among the states when it comes to these key metrics:

  • Financial impact of the digital economy
  • Amount of venture capital and grants received by digital startups
  • Number of government-run tech hubs
  • Presence of top-rated business incubators

“To many, the Texas story is one of oil magnates and real estate tycoons. But in recent decades, the state has emerged as an innovation and high-tech hub,” according to a report from the Federal Reserve Bank of Dallas.

On a scale of 1 to 100, Texas received a score of 79. California nabbed the top spot with a score of 100. Appearing behind California and ahead of Texas in the ranking are:

  • No. 2: New York
  • No. 3: Washington
  • No. 4: Illinois
  • No. 5: Massachusetts
  • No. 6: Missouri
  • No. 7: Wisconsin

In terms of ranking factors, Texas benefited the most from landing at No. 2 among the states for its impact on the digital economy. The study pegged Texas’ digital economic impact at $141.7 billion, well below California’s impact of $492.8 billion.

Hostinger relied primarily on government data on 31 states to come up with the ranking. “The research provides a detailed ranking based on a composite score that reflects each state's overall investment and capacity for digital innovation,” the company says.

More than 30,000 businesses in Texas participate in the digital economy, according to the Computer & Communications Industry Association (CCIA). Those businesses employ more than 633,000 people and account for over six percent of the state’s GDP, a key measure of economic strength.

“As technology companies face increasing scrutiny through state and national legislation and litigation, it’s crucial to recognize the significant positive impacts of the digital economy that resonate across the United States,” says the CCIA.

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Houston palliative care startup partners with new platform to expand reach

palliative care partnership

Houston-based Koda Health and Dallas’ Guidehealth, an AI-powered health care services platform, announced a strategic partnership to provide access to tech-enabled solutions to help improve care and reduce costs for patients navigating serious illness.

Health systems and clinically integrated networks working with Guidehealth can now deploy Koda Health’s Advance Care Planning (ACP) platform, which allows patients to document and share their care preferences, goals and advance directives for health systems. Guidehealth’s platform integrates into primary care workflows and allows providers to identify high-risk patients, coordinate care and reduce administrative burden.

Guidehealth also works with a team of virtual caregivers, known as Guidehealth Healthguides, who help patients navigate end-of-life decisions. With this new partnership, the Healthguides will be able to integrate Koda Health’s ACP platform into their workflows.

“Koda Health’s mission is to ensure that every patient’s voice is heard, especially during the most vulnerable times in their lives,” Dr. Desh Mohan, Chief Medical Officer and co-founder of Koda Health, said in a news release. “This partnership with Guidehealth accelerates our ability to reach patients at scale, especially those in value-based arrangements where care alignment and quality of life are top priorities.”

Guidehealth works with more than 500,000 patients and major systems, such as Emory Healthcare, according to the release. The company closed a $14 million seed round last year, which included investment from Memorial Hermann.

“Advance care planning is essential to delivering care that is not just high quality, but also compassionate and aligned with what matters most to each patient,” Dr. Sanjay Doddamani, founder and CEO of Guidehealth, said in a news release. “Koda Health brings a scalable, digital-first approach to a historically complex and emotional process. By embedding Koda into our value-based care ecosystem, we’re equipping providers to have meaningful conversations with patients, reduce unnecessary interventions and ultimately improve the experience for families and clinicians alike.”

Koda Health was born out of the TMC's Biodesign Fellowship and was launched by CEO Tatiana Fofanova, Dr. Desh Mohan, and Katelin Cherry in March 2020. It closed an oversubscribed seed round for an undisclosed amount last year, with investments from AARP, Memorial Hermann Health System and the Texas Medical Center Venture Fund. The company also added Kidney Action Planningto its suite of services in 2024.

4 trailblazing Houston innovators to know right now

Featured Innovators

Editor's note: Houston innovators are blazing new trails with medical breakthroughs and more. Here are four innovators to know, who have been featured on InnovationMap this month.

Dr. Ron Moses, creator of NanoEar

Dr. Ron Moses, an ENT specialist and surgeon at Houston Methodist is the creator of NanoEar, which he calls “the world’s smallest hearing aid.”

NanoEar is an implantable device that combines the invisibility of a micro-sized tympanostomy tube with more power — and a superior hearing experience — than the best behind-the-ear hearing aid.

Moses initially patented a version of the invention in 2000, but says that it took finding the right team to incorporate as NanoEar. Today, NanoEar has nine active patents. The NanoEar concept has done proof-of-concept testing on both cadavers at the University of Antwerp and on chinchillas, which are excellent models for human hearing, at Tulane University.

Thus far, NanoEar has raised about $900,000 to get its nine patents and perform its proof-of-concept experiments. The next step is to build the prototype, but completing it will take $2.75 million of seed funding. Read more.

Dr. Fong Lam, Baylor College of Medicine, and Sergey Shevkoplyas, UH

A team of Houston researchers has developed a new microfluidic device aimed at making treatments safer for children with hyperleukocytosis, a life-threatening hematologic emergency often seen in patients with leukemia.

Dr. Fong Lam, associate professor of pediatrics at Baylor College of Medicine and a pediatric intensive care physician at Texas Children’s Hospital, partnered with Sergey Shevkoplyas, a professor of biomedical engineering at UH, on the device that uses a large number of tiny channels to quickly separate blood cells by size in a process called controlled incremental filtration.

They tested whether performing cell separation with a high-throughput microfluidic device could alleviate the limitations of traditional conventional blood-filtering machines, which pose risks for pediatric patients due to their large extracorporeal volume (ECV), high flow rates and tendency to cause significant platelet loss in the patient.

“Continuously and efficiently separating leukocytes from recirculating undiluted whole blood — without device clogging and cell activation or damage — has long been a major challenge in microfluidic cell separation,” Shevkoplyas said. “Our study is the first to solve this problem.” Read more.

Elizabeth Gore, "The Big Idea with Elizabeth Gore"

Elizabeth Gore, co-founder and president of Houston's Hello Alice, debuted the first episode of her new video podcast series with Yahoo Finance on April 24.

The weekly series, known as "The Big Idea with Elizabeth Gore," will focus on providing information and resources to small business owners and sharing stories of entrepreneurship.

“Entrepreneurs and small business owners drive our country’s economy forward. With a record number of small businesses launching in our communities, my goal is to help every citizen live the American Dream. On the Big Idea, we will break down barriers for entrepreneurs and lift up opportunities for every person wanting to be their own boss,” Gore said. Read more.

Student-led startup runs away with prestigious prize at Rice competition

winner, winner

Rice University student-founded companies took home a total of $100,000 in equity-free funding at the annual Liu Idea Lab for Innovation and Entrepreneurship's H. Albert Napier Rice Launch Challenge.

Known as the NRLC, the venture competition features Rice University's top student-founded startups. The competition is open to undergraduate, graduate, and MBA students at Rice.

Five finalists were named earlier this year to pitch their five-minute pitch before the Rice entrepreneurship community on April 22. Each startup walked away with equity-free investment.

Veloci Running took home the first-place prize and $50,000. The company was founded by Tyler Strothman, a former track and field athlete and senior at Rice majoring in sport management.

Inspired by the foot pain he suffered due to the narrow toe boxes in his running shoes, Strothman decided to create a naturally shaped shoe designed to relieve lower leg tightness and absorb impact.

SteerBio took home second place and $25,000. The startup has a patented single-surgery hydrogel solution for lymphedema. It was founded by Mor Sela Golan, Martha Fowler and Alvaro Moreno Lozano. Lozano was recently named to the 2025 Rice Innovation Fellows cohort and Golan was named a Commercialization Fellow.

Third place, and $15,000, went to Labshare, which is an AI-powered web app that streamlines lab inventory and resource sharing. It was founded by Julian Figueroa Jr, John Tian, Mingyo Kang, Arnan Bawa and Daniel Kuo.

Other winners included:

  • Outstanding Undergraduate Award and $2,500: Kinnections
  • Audience Choice Award and $2,000: Labshare
  • Interdisciplinary Innovation Prize sponsored by OURI and $1,000: Haast Autonomous
  • Frank Liu Jr. Prize for Creative Innovation in Music, Fashion, & the Arts and $1,500: Craftroom
  • Outstanding Achievement in Artificial Intelligence Prize and $1,000: Kaducia
  • Outstanding Achievement in Social Impact Prize and $1,000: Kinnections
  • Outstanding Achievement in Consumer Goods Prize and $1,000 : Actile Technologies
  • Outstanding Achievement in Healthcare Innovations Prize and $1,000: Haast Autonomous

The NRLC, open to Rice students, is Lilie's hallmark event. HEXASpec, which develops inorganic fillers that improve heat management for the semiconductor industry, won the event last year. The team also won this year's Energy Venture Day and Pitch Competition during CERAWeek in the TEX-E student track.

Lilie also announced its 2025 Rice Innovation Fellows cohort and its first-ever Commercialization Fellows cohort this month. Read more here.

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