Houston named No. 2 most diverse major U.S. city for 2025

Ranking It

Houston is the No. 2 most diverse large city and the No. 5 most diverse city overall in America. Sky Noir Photography by Bill Dickinson/Getty Images

Houston has always been a diverse place, embracing people of many different cultural and socioeconomic backgrounds. And the city is earning new recognition in WalletHub's rankings of the most diverse large American cities for 2025.

The 2025 edition is the final installment in WalletHub's diversity study series, which annually compared 501 U.S. cities across 13 metrics in five categories that encompass "diversity" across socioeconomic, cultural, economic, household, and religious factors.

Cities were also ranked by population, with large cities defined as those with over 300,000 residents, midsize cities with 100,000 to 300,000 residents, and small cities with fewer than 100,000 residents.

Houston nearly topped the list of large U.S. cities, coming in at No. 2, and ranked at No. 5 in the overall national comparison.

The top three most diverse American cities, which have held their positions for the second consecutive year, are all located in Maryland: Gaithersburg (No. 1), Silver Spring (No. 2), and Germantown (No. 3).

Houston performed spectacularly in the study's overall rankings for socioeconomic (No. 14), cultural (No. 32), and religious diversity (No. 63), but fell behind in the categories for household (No. 129) and economic diversity (No. 165).

In the more detailed comparisons across educational-attainment, linguistic, and industry diversity, Houston ranked among the top 30 in all three categories out of the 501 cities included in the report.

Here's how Houston performed across the remaining eight categories in the study:

  • No. 44 – Racial and ethnic diversity
  • No. 129 – Household type diversity
  • No. 200 – Household size diversity
  • No. 201 – Income diversity
  • No. 207 – Occupational diversity
  • No. 239 – Birthplace diversity
  • No. 284 – Age diversity
  • No. 343 – Worker-class diversity

Embracing diversity is not only good for local communities, it's also beneficial for the economy, the report says.

"Not only have waves of immigration changed the face of the nation, they’ve also brought in fresh perspectives, skills, and technologies to help the U.S. develop a strong adaptability to change," the report's author wrote. "Economies generally fare better when they openly embrace and capitalize on new ideas. Conversely, those relying on old ways and specialized industries tend to be hurt more by changes in the market."

Houston is a repeat performer: It slipped one spot from its 2024 ranking, and previously topped the overall list in 2021 — showing that the city has consistently maintained in diversity over the years.

Other diverse Texas cities
Elsewhere in Texas, Arlington surpassed Houston as the No. 4 overall most diverse city, and took the No. 1 spot in the "large city" category.

Dallas ranked just outside the top 10 this year, landing in 11th place after previously ranking eighth overall in 2024. Dallas also appeared in sixth place in the national rankings for the most diverse large cities, so the city still has some catching up to do.

Fort Worth fell into No. 25 overall this year, in a three-place slip from last year's ranking. The city performed the best in the overall categories for socioeconomic and cultural diversity, earning a respective No. 58 and No. 61.

The top 10 most diverse cities in America in 2025 are:

  • No. 1 – Gaithersburg, Maryland
  • No. 2 – Silver Spring, Maryland
  • No. 3 – Germantown, Maryland
  • No. 4 – Arlington, Texas
  • No. 5 – Houston, Texas
  • No. 6 – New York, New York
  • No. 7 – Charlotte, North Carolina
  • No. 8 – Jersey City, New Jersey
  • No. 9 – Danbury, Connecticut
  • No. 10 – Los Angeles, California
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A version of this story originally appeared on our sister site, CultureMap.com.

From Your Site Articles
Here's your strategy for growing your team with intention and inclusion. Photo via Getty Images

Houston expert: How to recruit a diverse workforce for your company

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Recruiting for diversity is a critical aspect of building a diverse and inclusive workforce. In today’s increasingly global and diverse society, organizations that prioritize diversity and inclusion are well positioned to attract and retain top talent, improve innovation, and enhance overall organizational performance.

There are a few effective strategies to employ when an organization recruits for diversity.

Start with a diverse job posting

The first step in recruiting for diversity is to start with a job posting that is inclusive and welcoming to all candidates. Use inclusive language, avoid generic or racially biased language and highlight your commitment to diversity and inclusion. This can help attract a more diverse pool of candidates from the start.

Expand the candidate pool

One of the biggest barriers to diversity in hiring is a limited candidate pool. To expand your candidate pool, consider posting job openings on job boards and websites that cater to underrepresented groups, partnering with community organizations or schools and attending career fairs that target diverse candidates. It is also important to tap employees and their networks for referrals.

Now that many companies are hybrid or fully remote, employers can look outside the usual geographic area for potential employees. However, it is critical for companies to follow the local, state and federal guidelines when employing this hiring tactic.

Remove biases from the hiring process

Unconscious biases can impact the hiring process and limit diversity. To address potential biases in the hiring process, use objective and consistent evaluation criteria, such as skills, experience and qualifications. Also, consider using blind resumes, where hiring managers review the application without seeing the candidate’s name and identifying information.

Hiring for a culture fit is important, but it can, unintentionally, encourage a homogonous workplace. When a company has a diverse team, values will often align, provided the organization clearly defines its mission and goals, but the perspectives and approaches to business may differ between team members. These unique viewpoints add to the company’s culture and spur innovation.

Ensure diversity on hiring committees

Hiring committees should be staffed with diverse employees to ensure different perspectives and experiences are represented in the hiring process. This can lower the risk of unconscious biases and promote inclusive decision-making. Company leadership should ensure the hiring committee includes individuals from different departments, backgrounds and levels of seniority.

Use structured interviews

Structured interviews use a standardized set of questions and evaluation criteria to assess candidates’ qualifications and fit for the role. A standardized approach can help reduce the impact of biases and promote objective decision-making. When interviewing a candidate, the interviewers should focus on the candidate’s skills and experience rather than personal information or characteristics. This tactic allows companies to find the best fit for the open position.

Provide mentorship and support

Once talent is recruited, provide mentorship and support to help them succeed in the organization. That may include pairing them with a mentor or a support group that shares similar experiences or backgrounds. It can also involve providing access to training and development opportunities for the entire organization, which promotes a culture of inclusivity and respect.

Recruiting is a critical aspect of building a diverse and inclusive workforce; however, it is the first step in a much longer process of creating an organization that retains the new hires. By expanding the candidate pool and becoming more intentional in recruiting efforts, organizations are off to a great start to attract and retain diverse talent and promote a culture of inclusivity and innovation.

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Jill Chapman is director of early talent programs with Houston-based Insperity, a provider of human resources offering a suite of scalable HR solutions available in the marketplace.

Creating a thriving culture for diversity, equity, and inclusion requires intentional focus and allotment of time and resources. Photo via Getty Images

Houston expert: How to attract and recruit a diverse workforce for your startup

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The recent and long overdue awakening to systematic racism in the United States has brought with it a focused attempt to create more equitable opportunities in the workforce. Organizations are investing time reviewing their historical selection and performance data, creating new strategies for attracting applicants from historically underrepresented groups, and investing resources to ensure ongoing support and inclusion for all members of their community.

Startups in the early stages of bringing in personnel and crafting organizational culture have the advantage of building from a blank slate, and can benefit from implementing recruitment and selection strategies shown to help increase diversity.

Internal review

Prior to developing any strategic recruitment plan, companies must first perform an in-depth internal review of company culture, values, and future plans for growth and evolution. Defining these organizational attributes will help the company better understand the types of individuals who will thrive in the environment so that it can 1) accurately market the company and 2) maximize person-organization fit (P-O fit). P-O fit describes the extent to which an individual’s competencies, values, and preferences are compatible with the organization’s core values and offerings and has been linked to higher job satisfaction, job performance, and organizational commitment along with decreased turnover. Carving out the company’s current and desired culture, values, and goals for growth can serve as a starting point for accurately marketing the company to prospective applicants, understanding what applicant attributes and values will be the best fit for the company, and creating outreach and screening methods accordingly.

Information sharing

After an organization has performed a thorough internal exploration, it can then begin to share relevant information with prospective applicants. By and large, much of this information is gleaned by applicants through organizational websites. Indeed, organizational websites are often the main source of information for applicants and can provide a positive first impression and communicate its culture to leverage P-O fit. Research also suggests that companies cannot go wrong by sharing too much information about the organization on their website and through social media.

Companies can also ensure that the information provided on their websites and on social media pages demonstrate pictorial diversity, as including pictures of minorities has been shown to increase organizational attraction among Latinos and Blacks. Including video testimonials from any incumbent employees who reflect the diversity the organization is trying to attract can also enhance employer attractiveness. Finally, organizations seeking to increase diversity – but with little baseline diversity – should be honest about their current diversity climate with prospective applicants. Being transparent about current diversity figures, along with goals for future growth and specific strategies taken to enhance the diversity climate, can be a successful strategy as well. It is much better for an organization to provide an accurate snapshot of the current milieu so that informed decisions can be made, as inflated and inaccurate expectations among new entrants can result in job dissatisfaction and turnover.

Targeted recruitment

Companies seeking to increase the demographic diversity of applicants can also engage in targeted recruitment by focused advertisement and promotion at schools who graduate large number of underrepresented minorities. For example, partnerships with Historically Black Colleges and Universities (HBCUs), such as Prairie View A&M University, Texas Southern University, and St. Phillip’s College, can ensure broad reach. Creating virtual visit days, providing lectures to students, and other educational outreach programs with these institutions can broaden awareness and interest.

Selection

Organizations must continue to ensure equitable opportunities for all even after receiving applications from a diverse group. Shortlisting applicants based on certain pieces of information in the application can be at odds with efforts to create a diverse workforce. For example, reliance on standardized examination scores, such as SAT and ACT, can negatively impact underrepresented minority applicants. Letters of recommendation are also often frequently relied upon in selection, despite their discriminatory origin and evidence showing differences across genders and socioeconomic groups. Finally, use of unstructured interviews can also increase susceptibility to biases against minority groups. Thus, companies should only incorporate screening tools and processes that will not disadvantage applicants from different backgrounds.

Other selection methods can help programs achieve their diversity goals. For example, inclusion of structured interviews can ensure interviewers avoid common interviewing mistakes and providing unbiased ratings.Often, small details can have a large impact on hiring decisions. For example, applicants with accents and ethnic names are often disadvantaged during interviews, receiving less favorable interview ratings. Similarly, overweight candidates receive significantly lower performance ratings in interviews, compared to average weight candidates. Finally, studies have shown an overall bias against pregnant women in interview settings. Fortunately, these studies have also shown that structured interviews reduce these biases. Thus, standardizing which questions are asked and training interviewers to avoid inappropriate and potentially illegal questions is critical.

In conclusion, companies seeking to enhance the diversity of their workforce must consider their practices and policies in recruitment and selection. Unfortunately, there are no “quick fixes.” Creating a thriving culture for diversity, equity, and inclusion requires intentional focus and allotment of time and resources.

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Aimee Gardner is the co-founder of SurgWise, a tech-enabled consulting firm for hiring surgeons, and associate dean at Baylor College of Medicine.

DEI is a commitment that, rather like a good relationship needs to be worked on every day, especially when it comes to maintaining trust. Photo via Getty Images

Houston DEI programs are in place — now it's time to trust them

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It’s no secret to almost any Houston-area businessperson that diversity, equity and inclusion has been front and center on the corporate radar for quite some time. According to the 2021 Deloitte/Fortune CEO survey, 94 percent of the 175 CEOs surveyed reported that diversity, equity, and inclusion are strategic priorities for them. Nearly three-quarters (72 percent) planned to disclose DEI metrics to the public.

How are they doing so far? Pretty well, apparently. Deloitte’s new study, Build trust in diversity, equity, and inclusion commitments, indicates that 80 percent of survey respondents who work in Texas trust their organizations to follow through on their DEI commitments.

But here’s the rub: More than one-third (36 percent) of Texas workers surveyed say they’d consider leaving their jobs should that trust be broken. This should spark concern among Houston business leaders dealing with the white-hot job market and the Great Resignation.

Clearly, follow-through on DEI commitments, and gaining employees’ trust that DEI goals are being thoughtfully and rigorously pursued, is the next step. To be sure, other cities in the country are diverse, but Houston is unique. It’s considered the most diverse city in the United States across five categories: cultural, economic, socioeconomic, household, and religion, according to 2021 research by WalletHub. Another relevant fact: Nearly one in four Houston residents are foreign-born.

Houston is also an important business hub. The metro area boasts 24 Fortune 500 company headquarters, ranking it third among all cities in the United States. This status, paired with the city’s diversity, means that Houston companies—and all of them, not just Fortune 500 firms—should really commit to DEI as an ongoing journey. It matters to employees, with 86 percent of the surveyed general population believing that companies should address environmental and social issues, including DEI, according to Cone Communications research. That figure soars to 94 percent for Generation Z respondents.

Here are some actionable suggestions Houston-area firms should consider to help companies continue to earn and maintain trust around their DEI actions:

Be clear about your DEI strategy. CEOs, chief diversity officers and corporate boards: your role here calls for setting, sponsoring and sharing a sincere vision for DEI strategies. Data can and should be employed for clarity; use it to create solid short and long-term plans. And be sure to put enough of your budget into DEI efforts. Robust and effective results require ample funding.

Involve your employees in DEI initiatives. Setting a sincere strategy means getting input from all levels of the organization, even some external partners — suppliers and perhaps even outsourced service providers — who might be affected by your firm’s DEI initiatives. Gather ample input, including suggestions for new and existing programs as well as any challenges that might arise, from these stakeholders.

Seeking a wide variety of perspectives and understanding experiences across gender identity, race, ethnicity, and other identities can help you develop initiatives that effectively meet the needs of all your people.

Measure success and share it. Crunch and present the numbers just as you would sales figures or any other business metric. The key word here is accountability. Communicate regularly and with transparency on progress and challenges; honesty is paramount — employees are typically aware that not every effort will meet all of its goals right out of the box. They tend to expect a setback here and there and could be more supportive if those setbacks are honestly shared.

More than a year ago, when companies began committing to DEI in earnest, nobody thought it would be easy. And it’s not. DEI is a commitment that, rather like a good relationship needs to be worked on every day, especially when it comes to maintaining trust. It’s a promise that needs to be kept, and then some.

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Amy Chronis is the Houston managing partner at Deloitte. Patti Wilkie is global talent and mobility leader of Deloitte Tax LLP.

Two hiring managers weigh in on corporate DEI initiatives amid the pandemic in a guest article for InnovationMap. Photo via Pexels

How Houston companies can use pandemic challenges to foster innovative corporate inclusion efforts

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They say necessity is the mother of invention, and over the last 18 months, that proverb has proven true across the world, from classrooms to boardrooms. Shuttered classrooms and businesses, overflowing hospitals, and social unrest spurred by the killing of George Floyd have forced communities and leaders across the world, and here at home, to find innovative solutions to a myriad of problems.

But even as many people long for a return to normalcy, the truth is that, in many ways, the bell cannot be "unrung." Remote work, which was a necessity for many at the height of the pandemic, has given rise to an explosion of hybrid working environments that show no signs of reversing course. In the midst of this physical separation among colleagues, leaders across industries have been forced to throw out the rulebook and reimagine what it means to collaborate.

Additionally, the disparate impact experienced by communities of color throughout the pandemic has highlighted the importance of programs focused on increasing diversity and promoting inclusion. It is no coincidence, for example, that roughly six months into the pandemic, the general counsels of 12 major financial institutions penned an open letter to the legal community calling for greater inclusivity in the legal community.

So, how can companies transform the struggles presented by the pandemic into a springboard for lasting, innovative inclusion efforts? The answer lies in taking risks, strengthening the fabric of connectivity, and looking to the future.

Crowdsource new ideas

The concept of crowdsourcing is nothing new, but at the corporate level, leaders may overlook its benefits. Hackathons—large, collaborative events originally developed for computer programming or coding—can be implemented across all employment levels to crowdsource innovative ideas.

At Hunton Andrews Kurth, the firm implements the Hackathon concept during the summer associate program, thus harnessing the creativity and progressive ideas of younger talent. When the pandemic forced the firm's 2020 summer program to go entirely virtual, the firm decided to create groups of summer associates across all offices to brainstorm programming ideas aimed at improving and sustaining diversity and inclusion initiatives.

Together with partner leaders, these summer associate teams worked virtually to create truly innovative programming ideas, several of which the firm is currently implementing to recruit diverse talent. The program was successfully replicated in summer 2021, asking participants to hack the problem of associate inclusion. In addition to generating important programming content, these Hackathons increased participant morale, encouraged cross-office collaboration, forged new relationships across various geographic regions, and tackled the timely topics of enhancing law firm diversity and inclusion that will improve client service in the future.

Other industries—from large, global corporations to small businesses—can implement the Hackathon concept to successfully build bridges and harness innovation around inclusion. For example, MIT recently held a successful hackathon to source solutions to the problem of student inclusion during the pandemic, and Microsoft sponsored a hackathon aimed at solving the education and technology gaps of remote learning brought on by the pandemic.

Moreover, experts agree that equity and inclusion initiatives are only successful with buy-in from the c-suite. In other words, fostering an inclusive corporate culture starts at the top. If corporate leadership participates in the Hackathon experience—as a mentor, judge, or coach, perhaps—as opposed to merely sponsoring the event, it sends a message to all employees that the company as a whole values inclusion as a cornerstone of corporate culture.

Embrace virtual connections

The pandemic forced us all to navigate the world of virtual meetings, and with the popularity of hybrid working environments, virtual connectivity is here to stay. Companies must embrace this new virtual frontier and implement programs that engage employees, promote collaboration, and introduce an element of fun.

At Hunton Andrews Kurth, new hires create introductory videos about themselves that are globally shared firm-wide, while veteran lawyers create their own video content introducing themselves and their practices, thus creating an immediate personal connection.

Additionally, virtual events celebrating diversity and inclusion events, such as Black History Month and LGBTQ Pride Month for example, provide opportunities for fellowship across offices and bolster inclusion efforts. Hunton Andrews Kurth hosted a virtual cooking class, based in a Dallas partner's kitchen, celebrating Asian American and Pacific Islander Month in May, which was virtually attended by 132 attorneys firm wide.

Company-wide virtual events such as escape rooms, cocktail-making classes, games and trivia build camaraderie, which deepens the bonds of collegiality and strengthens feelings of inclusion and belonging. Companies should invest in virtual technologies to help facilitate this important new frontier of connectivity, recognizing that increased digital connectivity supports a collaborative and inclusive working environment.

Highlight community outreach

In global companies, high-level, company-wide diversity and inclusion leadership should work in tandem with leadership at the local level. At our firm, for example, in addition to firm-wide diversity leadership, each local office has a specified leader committed to promoting local inclusion initiatives. While virtual events help connect geographically-diverse employees, it is equally important to offer local employees opportunities to connect in person with one another and support diversity programming in the community.

For example, attorneys in Hunton Andrews Kurth's Richmond office recently came together to learn about and pool resources to support a local artist's public art project focused on creating murals to promote open dialogue around racial and social justice. Additionally, employees might select a local DEI educational experience in which to participate as a group outside of the office, then plan to gather informally (in person or virtually) to discuss lessons learned and continue important conversations. When colleagues come together to support local inclusion programs or participate in shared experiences, new connections are forged that help support a diverse and inclusive corporate culture.

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Rudene Mercer Haynes is a partner at Hunton Andrews Kurth, serves as a firmwide hiring partner, and also sits on the executive committee. Alex Gomez is also a partner and serves as a fellow firmwide hiring partner.

"When researchers include people from various racial, ethnic, and identity backgrounds in health studies, we can be more confident that the results of the studies will apply to everyone." Graphic by Miguel Tovar/University of Houston

Representation in research matters, says this Houston expert

houston voices

Diversifying your human subjects for studies is essential for good research.

"Up to 75 percent of Pacific Islanders are unable to convert an antiplatelet drug into its active form and therefore are at higher risk for adverse outcomes following angioplasty," said the University of California San Francisco Participant Recruitment website. "And if the study population had not included diverse participants, this difference would not have been discovered."

Loretta Byrne of ResearchMatch and Danielle Griffin of University of Houston weigh in.

Need help with recruitment?

"Diversity and inclusion of all people in research is essential, yet the vast majority of people are unaware of research opportunities," said Loretta Byrne, RN, MSN, CCRP national project manager for ResearchMatch, a nonprofit funded by the NIH. ResearchMatch helps to set volunteers up with researchers working on all types of studies that require human subjects. "This nonprofit provides a space for the community to essentially raise their hands and say, 'I'd like to know more.'"

There are other such agencies, including studyscavenger.com that set volunteers up with researchers; and some pharmaceutical companies have dedicated portals like helpresearch.com.

Be a champion

UC San Francisco, a champion for diversity, held a Recruitment of Underrepresented Study Populations webinar which gave practical advice to researchers well, searching, for human subjects for trials. Nynikka Palmer, DrPH, MPH, Assistant Professor, UCSF School of Medicine, and Esteban Burchard, MD, MPH Professor, UCSF School of Pharmacy went on to urge researchers thusly:

"Participants in research should reflect the diversity of our culture and conditions, taking into account race, ethnicity, gender, age, etc. The lack of diversity among research participants has serious ethical and research consequences."

What types of consequences could be incurred from failing to test a representative sample? "It impedes our ability to generalize study results, make medical advancements of effective therapies and it prevents some populations from experiencing the benefits of research innovations and receipt of high-quality care," explained the authors.

Establish trust

Danielle Griffin, Ed.D., CIP, associate director of Institutional Review Boards (IRB) in the Office of Research Integrity and Oversight at the University of Houston, is concerned with researchers' behavior when they do garner volunteers. "Researchers need to go to where people are," and instead of just collecting data, "they must establish relationships. Trust is an important aspect of why people decide to participate in studies."

Trust may be difficult to establish in some cases and with some prospective demographics. It would be remiss to not acknowledge historical traumas in conjunction with medical human subject trials, like the Tuskegee Experiment. Language barriers are another concern, which is why Byrne goes on to say that the participants' first languages are also taken into consideration when volunteers are recruited through ResearchMatch.

The big idea

Avoid taking the easy path. Griffin warns against "convenience sampling." She said it's easiest for researchers to use undergraduate students for their participant pools rather than to look for a set that most resembles the greater, local community. "If your research concerns the general population and the participants in your study are essentially all 18-year old students from your campus," said Griffin, "you're not going to achieve a representative sample."

"When researchers include people from various racial, ethnic, and identity backgrounds in health studies," said Byrne, "we can be more confident that the results of the studies will apply to everyone."

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This article originally appeared on the University of Houston's The Big Idea. Sarah Hill, the author of this piece, is the communications manager for the UH Division of Research.

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Houston climbs to top 10 spot on North American tech hubs index

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Houston already is the Energy Capital of the World, and now it’s gaining ground as a tech hub.

On Site Selection magazine’s 2026 North American Tech Hub Index, Houston jumped to No. 10 from No. 16 last year. The index relies on data from Site Selection as well as data from CBRE, CompTIA and TeleGeography to rank the continent’s tech hotspots. The index incorporates factors such as internet connectivity, tech talent and facility projects for tech companies.

In 2023, the Greater Houston Partnership noted the region had “begun to receive its due as a prominent emerging tech hub, joining the likes of San Francisco and Austin as a major player in the sector, and as a center of activity for the next generation of innovators and entrepreneurs.”

The Houston-area tech sector employs more than 230,000 people, according to the partnership, and generates an economic impact of $21.2 billion.

Elsewhere in Texas, two other metros fared well on the Site Selection index:

  • Dallas-Fort Worth nabbed the No. 1 spot, up from No. 2 last year.
  • Austin rose from No. 8 last year to No. 7 this year.

San Antonio slid from No. 18 in 2025 to No. 22 in 2026, however.

Two economic development officials in DFW chimed in about the region’s No. 1 ranking on the index:

  • “This ranking affirms what we’ve long seen on the ground — Dallas-Fort Worth is a top-tier technology and innovation center,” said Duane Dankesreiter, senior vice president of research and innovation at the Dallas Regional Chamber. “Our region’s scale, talent base, and diverse strengths … continue to set DFW apart as a national leader.”
  • “Being recognized as the top North American tech hub underscores the strength of the entire Dallas-Fort Worth region as a center of innovation and next-generation technology,” said Robert Allen, president and CEO of the Fort Worth Economic Development Partnership.

While not directly addressing Austin’s Site Selection ranking, Thom Singer, CEO of the Austin Technology Council, recently pondered whether Silicon Hills will grow “into the kind of community that other cities study for the right reasons.”

“Austin tech is not a club. It is not a scene. It is not a hashtag, a happy hour, or any one place or person,” Singer wrote on the council’s blog. “Austin tech is an economic engine and a global brand, built by thousands of people who decided to take a risk, build something, hire others, and be part of a community that is still young enough to reinvent itself.”

South of Austin, Port San Antonio is driving much of that region’s tech activity. Occupied by more than 80 employers, the 1,900-acre tech and innovation campus was home to 18,400 workers in 2024 and created a local economic impact of $7.9 billion, according to a study by Zenith Economics.

“Port San Antonio is a prime example of how innovation and infrastructure come together to strengthen [Texas’] economy, support thousands of good jobs, and keep Texas competitive on the global stage,” said Kelly Hancock, the acting state comptroller.

14 Houston startups starting 2026 with fresh funding

cha-ching

Houston startups closed out the last half of 2025 with major funding news.

Here are 14 Houston companies—from groundbreaking energy leaders to growing space startups—that secured funding in the last six months of the year, according to reporting by InnovationMap and our sister site, EnergyCapitalHTX.com.

Did we miss a funding round? Let us know by emailing innoeditor@innovationmap.com.

Fervo Energy

Fervo Energy has closed an oversubscribed Series E. Photo via Fervo Energy

Houston-based geothermal energy company Fervo Energy closed an oversubscribed $462 million series E funding round, led by new investor B Capital, in December.

The company also secured $205.6 million from three sources in June.

“Fervo is setting the pace for the next era of clean, affordable, and reliable power in the U.S.,” Jeff Johnson, general partner at B Capital, said in a news release.

The funding will support the continued buildout of Fervo’s Utah-based Cape Station development, which is slated to start delivering 100 MW of clean power to the grid beginning in 2026. Cape Station is expected to be the world's largest next-generation geothermal development, according to Fervo. The development of several other projects will also be included in the new round of funding. Continue reading.

Square Robot

Houston robotics co. unveils new robot that can handle extreme temperatures

Square Robot's technology eliminates the need for humans to enter dangerous and toxic environments. Photo courtesy of Square Robot

Houston- and Boston-based Square Robot Inc. announced a partnership with downstream and midstream energy giant Marathon Petroleum Corp. (NYSE: MPC) last month.

The partnership came with an undisclosed amount of funding from Marathon, which Square Robot says will help "shape the design and development" of its submersible robotics platform and scale its fleet for nationwide tank inspections. Continue reading.

Eclipse Energy

Eclipse Energy and Weatherford International are expected to launch joint projects early this year. Photo courtesy of Eclipse Energy.

Oil and gas giant Weatherford International (NASDAQ: WFRD) made a capital investment for an undisclosed amount in Eclipse Energy in December as part of a collaborative partnership aimed at scaling and commercializing Eclipse's clean fuel technology.

According to a release, joint projects from the two Houston-based companies are expected to launch as soon as this month. The partnership aims to leverage Weatherford's global operations with Eclipse Energy's pioneering subsurface biotechnology that converts end-of-life oil fields into low-cost, sustainable hydrogen sources. Continue reading.

Venus Aerospace 

Lockheed Martin Ventures says it's committed to helping Houston-based Venus Aerospace scale its technology. Photo courtesy Venus Aerospace

Venus Aerospace, a Houston-based startup specializing in next-generation rocket engine propulsion, has received funding from Lockheed Martin Ventures, the investment arm of aerospace and defense contractor Lockheed Martin, for an undisclosed amount, the company announced in November. The product lineup at Lockheed Martin includes rockets.

The investment follows Venus’ successful high-thrust test flight of its rotating detonation rocket engine (RDRE) in May. Venus says it’s the only company in the world that makes a flight-proven, high-thrust RDRE with a “clear path to scaled production.”

Venus says the Lockheed Martin Ventures investment reflects the potential of Venus’ dual-use technology for defense and commercial uses. Continue reading.

Koda Health

Tatiana Fofanova and Dr. Desh Mohan, founders of Koda Health, which recently closed a $7 million series A. Photo courtesy Koda Health.

Houston-based digital advance care planning company Koda Health closed an oversubscribed $7 million series A funding round in October.

The round, led by Evidenced, with participation from Mudita Venture Partners, Techstars and Texas Medical Center, will allow the company to scale operations and expand engineering, clinical strategy and customer success, according to a news release.

The company shared that the series A "marks a pivotal moment," as it has secured investments from influential leaders in the healthcare and venture capital space. Continue reading.

Hertha Metals

U.S. Rep. Morgan Luttrell, a Magnolia Republican, and Hertha Metals founder and CEO Laureen Meroueh toured Hertha’s Conroe plant in August. Photo courtesy Hertha Metals/Business Wire.

Conroe-based Hertha Metals, a producer of substantial steel, hauled in more than $17 million in venture capital from Khosla Ventures, Breakthrough Energy Fellows, Pear VC, Clean Energy Ventures and other investors.

The money was put toward the construction and the launch of its 1-metric-ton-per-day pilot plant in Conroe, where its breakthrough in steelmaking has been undergoing tests. The company uses a single-step process that it claims is cheaper, more energy-efficient and equally as scalable as conventional steelmaking methods. The plant is fueled by natural gas or hydrogen.

The company, founded in 2022, plans to break ground early this year on a new plant. The facility will be able to produce more than 9,000 metric tons of steel per year. Continue reading.

Helix Earth Technologies, Resilitix Intelligence and Fluxworks Inc.

Helix Earth's technology is estimated to save up to half of the net energy used in commercial air conditioning, reducing both emissions and costs for operators. Photo via Getty Images

Houston-based Helix Earth Technologies, Resilitix Intelligence and Fluxworks Inc. each secured $1.2 million in federal funding through the Small Business Innovation Research (SBIR) Phase II grant program this fall.

The three grants from the National Scienve foundation officially rolled out in early September 2025 and are expected to run through August 2027, according to the NSF. The SBIR Phase II grants support in-depth research and development of ideas that showed potential for commercialization after receiving Phase I grants from government agencies.

However, congressional authority for the program, often called "America's seed fund," expired on Sept. 30, 2025, and has stalled since the recent government shutdown. Continue reading.

Solidec Inc. (pre-seed)

7 innovative startups that are leading the energy transition in Houston

Houston-based Solidec was founded around innovations developed by Rice University associate professor Haotian Wang (far left). Photo courtesy Greentown Labs.

Solidec, a Houston startup that specializes in manufacturing “clean” chemicals, raised more than $2 million in pre-seed funding in August.

Houston-based New Climate Ventures led the oversubscribed pre-seed round, with participation from Plug and Play Ventures, Ecosphere Ventures, the Collaborative Fund, Safar Partners, Echo River Capital and Semilla Climate Capital, among other investors. Continue reading.

Molecule

Sameer Soleja is the founder and CEO of Molecule, which just closed its series B round. Photo courtesy of Molecule Software.

Houston-based energy trading risk management (ETRM) software company Molecule completed a successful series B round for an undisclosed amount, according to a July 16 release from the company.

The raise was led by Sundance Growth, a California-based software growth equity firm. Sameer Soleja, founder and CEO of Molecule, said in the release that the funding will allow the company to "double down on product innovation, grow our team, and reach even more markets." Continue reading.

Rarefied Studios, Solidec Inc. and Affekta

Houston startups were named among the nearly 300 recipients that received a portion of $44.85 million from NASA to develop space technology this fall. Photo via NASA/Ben Smegelsky

Houston-based Rarefied Studios, Solidec Inc. and Affekta were granted awards from NASA this summer to develop new technologies for the space agency.

The companies are among nearly 300 recipients that received a total agency investment of $44.85 million through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Phase I grant programs, according to NASA.

Each selected company received $150,000 and, based on their progress, will be eligible to submit proposals for up to $850,000 in Phase II funding to develop prototypes. The SBIR program lasts for six months and contracts small businesses. Continue reading.

Intuitive Machines 

Intuitive Machines expects to begin manufacturing and flight integration on its orbital transfer vehicle as soon as 2026. Photo courtesy Intuitive Machines.

Houston-based Intuitive Machines secured a $9.8 million Phase II government contract for its orbital transfer vehicle in July.

The contract was expected to push the project through its Critical Design Review phase, which is the final engineering milestone before manufacturing can begin, according to a news release from the company. Intuitive Machines reported that it expected to begin manufacturing and flight integration for its orbital transfer vehicle as soon as this year, once the design review is completed.

The non-NASA contract is for an undisclosed government customer, which Intuitive Machines says reinforces its "strategic move to diversify its customer base and deliver orbital capabilities that span commercial, civil, and national security space operations." Continue reading.

NRG inks new virtual power plant partnership to meet surging energy demands

Powering Up

Houston-based NRG Energy recently announced a new long-term partnership with San Francisco-based Sunrun that aims to meet Texas’ surging energy demands and accelerate the adoption of home battery storage in Texas. The partnership also aligns with NRG’s goal of developing a 1-gigawatt virtual power plant by connecting thousands of decentralized energy sources by 2035.

Through the partnership, the companies will offer Texas residents home energy solutions that pair Sunrun’s solar-plus-storage systems with optimized rate plans and smart battery programming through Reliant, NRG’s retail electricity provider. As new customers enroll, their stored energy can be aggregated and dispatched to the ERCOT grid, according to a news release.

Additionally, Sunrun and NRG will work to create customer plans that aggregate and dispatch distributed power and provide electricity to Texas’ grid during peak periods.

“Texas is growing fast, and our electricity supply must keep pace,” Brad Bentley, executive vice president and president of NRG Consumer, said in the release. “By teaming up with Sunrun, we’re unlocking a new source of dispatchable, flexible energy while giving customers the opportunity to unlock value from their homes and contribute to a more resilient grid

Participating Reliant customers will be paid for sharing their stored solar energy through the partnership. Sunrun will be compensated for aggregating the stored capacity.

“This partnership demonstrates the scale and strength of Sunrun’s storage and solar distributed power plant assets,” Sunrun CEO Mary Powell added in the release. “We are delivering critical energy infrastructure that gives Texas families affordable, resilient power and builds a reliable, flexible power plant for the grid.”

In December, Reliant also teamed up with San Francisco tech company GoodLeap to bolster residential battery participation and accelerate the growth of NRG’s virtual power plant network in Texas.

In 2024, NRG partnered with California-based Renew Home to distribute hundreds of thousands of VPP-enabled smart thermostats by 2035 to help households manage and lower their energy costs. At the time, the company reported that its 1-gigawatt VPP would be able to provide energy to 200,000 homes during peak demand.

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This article originally appeared on EnergyCapitalHTX.com.

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