The Houston metro area saw a 92 percent growth in one barometer of startup activity. Getty Images

Houston and the rest of Texas are experiencing a boom in the creation of startups.

One barometer of growth in startup activity: The Houston metro area saw a 92 percent rise from 2024 to 2025 in the number of account applications submitted to Bluevine, a banking platform for small businesses.

New data from Bluevine also shows healthy year-over-year growth in account applications submitted by entrepreneurs in Texas’ three other major metros:

  • 242 percent growth in the San Antonio area
  • 153 percent growth in the Austin area
  • 28 percent growth in Dallas-Fort Worth

Further evidence of Texas’ uptick in business creation comes from a new state-by-state analysis of U.S. Census Bureau data by digital mailbox provider iPostal1.

From 2019 to 2024, the number of new business applications jumped 60 percent in Texas, according to the iPostal1 analysis. Wyoming tops the list, with a five-year growth rate of 216 percent.

“The U.S. has no shortage of ambition, but opportunity isn’t spread evenly,” says Jeff Milgram, founder and CEO of iPostal1. “In states like New York, Florida, and Texas, entrepreneurship is booming — people are starting businesses, taking risks, and finding opportunity.”

“Other states are still catching up,” Milgram adds. “Sometimes it’s access to funding, sometimes local policy, or just the confidence that new ventures will be supported.”

Women own many of the new businesses sprouting in Texas, according to a new analysis of 2024-25 data from the U.S. Small Business Administration. The analysis, done by SimpleTiger, a marketing agency for software-as-a-service (SaaS), shows Texas ranks eighth for the highest concentration of women entrepreneurs (109 per 1,000 female residents) among all states. That rate is three percent higher than the national average.

“Women entrepreneurs are no longer a side story in small business growth; they’re a leading indicator of where local economies are expanding next,” SimplyTiger says. “When women-owned business density is high, it usually signals stronger access to customers, networks, and startup pathways that make it easier to launch and keep going.”

In a December news release, Gov. Greg Abbott highlights Texas’ nation-leading job gains over the past 12 months, driven by employers small and large.

“From innovative startups to Fortune 500 corporations, job-creating businesses invest with confidence in Texas,” Abbott says. “With our strong and growing workforce, we will continue to expand career and technical training programs for better jobs and bigger paycheck opportunities for more Texans.”

An aerial view of Stargate’s AI data center in Abilene. Photo courtesy OpenAI.

Abbott highlights Texas AI boom, with Houston projects on the horizon

AI investments are booming in Texas, Gov. Greg Abbott says. And Houston is poised to benefit from this surge.

At a recent Texas Economic Development Corp. gathering in the Dallas-Fort Worth area, Abbott said AI projects on the horizon in the Lone Star State would be bigger than the $500 billion multistate Project Stargate, according to the Dallas Business Journal. So far, Stargate includes three AI data centers in Texas.

Stargate, a new partnership among OpenAI, Oracle, Softbank, and the federal government, is building AI infrastructure around the country. The project’s first data center is in Abilene, and the center’s second phase is underway. Once the second phase is finished, the 875-acre site will host eight buildings totaling about 4 million square feet with a power capacity of 1.2 gigawatts. An additional 600 megawatts of capacity might be added later.

On Sept. 23, Stargate announced the development of another five AI data centers in the U.S., including a new facility in Shackelford County, Texas, near Abilene. That facility is likely a roughly $25 billion, 1.4-gigawatt AI data center that Vantage Data Centers is building on a 1,200-acre site in Shackelford County.

Another will be in Milam County, between Waco and Austin. In conjunction with Stargate, OpenAI plans to occupy the more than $3 billion center, which will be situated on a nearly 600-acre site, the Austin Business Journal reported. OpenAI has teamed up with Softbank-backed SB Energy Global to build the facility.

Abbott said several unannounced AI projects in Texas — namely, data centers — will be larger than Stargate.

“Bottom line is ... when you look at diversification, the hottest thing going on right now is artificial intelligence,” Abbott said.

The Houston area almost certainly stands to attract some of the projects teased by the governor.

In Houston, Taiwanese tech manufacturer Foxconn already is investing $450 million to make AI servers at the 100-acre Fairbanks Logistics Park, which Foxconn recently purchased for a reported $142 million. The park features four industrial buildings totaling one million square feet. It appears Foxconn will manufacture the servers for Apple and Nvidia, both of which have announced they’ll open server factories in Houston.

The Foxconn, Apple, and Nvidia initiatives are high-profile examples of Houston’s ascent in the AI economy. A report released in July by the Brookings Institution identified Houston as one of the country’s 28 “star” hubs for AI.

The Greater Houston Partnership says the Houston area is undergoing an "AI-driven data revolution."

“As Houston rapidly evolves into a hub for AI, cloud computing, and data infrastructure, the city is experiencing a surge in data center investments driven by its unique position at the intersection of energy, technology, and innovation,” the partnership says.

Texas has steadily inched up the ranking each year since 2021. Photo via Getty Images

Texas improves ranking on annual report of most innovative states

moving up

Texas ranks above average — but outside the top 10 — in a new index that ranks the most innovative states.

To come up with its Most and Least Innovative States ranking, personal finance website WalletHub looked at 25 key indicators of innovation for the 50 states and the District of Columbia. These include a state’s share of STEM professionals, research and development spending per capita, and the proliferation of tech companies.

With an innovation score of 48.96 out of 100, Texas lands at No. 13 on the list. The District of Columbia stands atop the list, with an innovation score of 69.79, followed by Massachusetts, California, Colorado, and Washington.

Texas has steadily inched up the list — the state was No. 14 on the list in 2024 and has climbed up one spot each year since 2021.

Two components make up each state’s score: human capital and “innovation environment.” Texas ranks 14th in the human capital category and 13th in the innovation environment category.

“The most innovative states are especially attractive to people who have majored in science, technology, engineering and math, or STEM, as they offer abundant career opportunities and investment dollars, both for jobs at existing companies and for startups,” says WalletHub analyst Chip Lupo. “These states also instill young students with the skills they need to succeed in the current workforce, skills which are useful whether or not they pursue a STEM career.”

Despite not placing in the top 10 of the WalletHub index, Texas continues to produce thousands of jobs.

Citing data from the U.S. Bureau of Labor Statistics, Gov. Greg Abbott says Texas added the most nonfarm jobs in January (27,900) of any state and the most nonfarm jobs from January 2024 to January 2025 (187,700).

“Texas is America’s jobs engine, adding more new jobs in the last year than any other state,” Abbot said in a news release. “Our skilled and growing workforce and our business-friendly climate attract job-creating businesses in diverse industries from across the country and around the world. … Texas continues to remove regulatory red tape and invest in education, innovation, and infrastructure as we build a stronger, more prosperous Texas than ever before.”

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

Is Texas a top state for business? New reports find mixed results

by the numbers

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

First, the good news.

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

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

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

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

Now, the not-so-good news.

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

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

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

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

The magazine covers corporate site selection and economic development.

Other contenders for 2023 State of the Year were:

  • Arizona
  • Florida
  • Georgia
  • Indiana
  • Missouri
  • Nevada
  • North Carolina
  • Tennessee
  • Utah
  • Virginia
Houston-based MD Anderson will help the University of Texas expand its medical school in Austin. University of Texas at Austin/Facebook

MD Anderson, UT team up to expand medical school

ready to grow

Powerhouse and award-winning Houston cancer center MD Anderson will partner with the University of Texas at Austin to expand Dell Medical School and build two new hospitals.

This new medical center, called The University of Texas at Austin Medical Center, will include two facilities: a comprehensive cancer center operated by MD Anderson and a multi-specialty hospital operated by the University of Texas.

The project will be made possible by the demolition of the 500,000-square-foot Frank Erwin Center, which officially closed in May 2022. Its replacement, the Moody Center, officially opened to the public in April 2022, and in April 2023 celebrated its jam-packed first year.

In May, the UT System's Board of Regents approved an item paving the way for Dell Medical School's expansion. The full demolition is estimated to cost $25 million, and the university hopes to finish the demolition project by October 2024.

University Chancellor James Milliken and Board of Regents Chair Kevin Eltife announced the project on Monday along with Gov. Greg Abbott.

MD Anderson is a branch of the UT system and was recently named No. 1 in the country for cancer care by U.S. News & World Report. It is the largest cancer care center in the U.S. and one of the original three comprehensive cancer centers in the country.

--

An earlier version of this story reported one new facility instead of two. It has been updated to reflect the correct information. Read the full story and watch the video at KVUE.com.

Catch up on two big pieces of news landing at the Houston Spaceport. Image via fly2houston.com

Space City News: Houston Spaceport receives grant, unicorn hires architecture firm

rocketing roundup

The Space City is starting 2022 off strong with news launching out of the Houston Spaceport — a 400-acre space in Southeast Houston.

The two big headlines include a unicorn company releasing the latest details of its earthbound project and fresh funds from the state to support the space ecosystem in Texas.

Governor Abbott doles out $10M in spaceport grants

Texas has launched fresh funding into two spaceport projects. Image via fly2houston.com

Last week, Gov. Greg Abbott announced $10 million in funding to two Texas spaceports as a part of the state's Spaceport Trust Fund. The Houston Spaceport Development Corp. received $5 million and the Cameron County Spaceport Development Corp. received $5 million.

The fund is administered by the Governor's Office of Economic Development and Tourism and was created to support the development of spaceport infrastructure, create quality jobs, and attract continuing investments that will strengthen the economic future of the state, according to a news release.

"For decades, Texas has been a trailblazer in space technology and we are proud to help cultivate more innovation and development in this growing industry in Cameron and Harris County," says Abbott in the release. "This investment in the Cameron County and Houston Spaceport Development Corporations will create even more economic opportunities for Texans across the state and continue our legacy as a leader in space technology."

Axiom Space hires Dallas-based architecture and engineering firm

Axiom Space has made progress on developing its 14-acre headquarters. Image via axiomspace.com

Houston-based unicorn Axiom Space has announced that it awarded Dallas-based Jacobs the architecture and engineering phase one design contract. The firm will be working on the 100,000-square-foot facility planned for the 400-acre Houston Spaceport at Ellington Airport.

Axiom Space's plans are ro build the first commercial space station that will provide a central hub for research, to support microgravity experiments, manufacturing, and commerce in low Earth orbit missions, according to a news release.

"This is an exciting and historic moment for Axiom and the greater Houston area," says Axiom CTO Matt Ondler in the release. "For the first time, spacecraft will be built and outfitted right here in Houston, Texas. This facility will provide us with the infrastructure necessary to scale up operations and bring more aerospace jobs to the area. With this new facility, we are not only building next generation spacecraft, but also solidifying Houston as the U.S. commercial industry's gateway to space."

Axiom Space, which raised $130M in venture capital last year, is building out its 14-acre headquarters to accommodate the creation of more than 1,000 high-paying jobs, from engineers to scientists, mathematicians, and machinists.

"Houston is a city built on innovation and is becoming a next-generation tech hub in the United States," says Ron Williams, senior vice president at Jacobs. "Privately funded infrastructure will drive U.S. leadership in space. Jacobs is committed to providing integrated solutions to accelerate the future of commercial space operations."

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CultureMap Emails are Awesome

10 promising Houston startups that made headlines in 2025

year in review

Editor's note: As we reflect on 2025, we're looking back at the stories and startups that made waves in Houston's innovation scene. These 10 startups reached memorable milestones, won prestigious awards, found creative solutions, and disrupted their industries.

Persona AI: Houston humanoid robotics startup inks new deal to deploy its rugged robots

A concept design rendering of Persona AI's humanoid robot. The company is expanding at the Ion and plans to deliver prototype humanoids by the end of 2026 for complex shipyard welding tasks. Rendering courtesy Persona AI.

Persona AI is building modularized humanoid robots that aim to deliver continuous, round-the-clock productivity and skilled labor for "dull, dirty, dangerous, and declining" jobs. The company was founded by Houston entrepreneur Nicolaus Radford, who serves as CEO, along with CTO Jerry Pratt and COO Jide Akinyode. It raised $42 million in pre-seed funding this year and is developing its prototype of a robot-welder for Hyundai's shipbuilding division, which it plans to unveil in 2026. The company won in the Deep Tech Business category at this year's Houston Innovation Awards. Continue reading.

Rheom Materials: Houston startup unveils its innovative leather alternative at the rodeo

Rheom Materials presented its bio-based alternative, Shorai, a 93 percent bio-based leather, at the rodeo and plans to scale it up this year. Photos courtesy Rheom Materials

Rheom Materials presented its scalable, bio-based alternative known as Shorai, a 93 percent bio-based leather, through two custom, western-inspired outfits that showed off cowboy flair through a sustainable lens at the Houston Livestock Show and Rodeo earlier this year.

Next up, the company said it aimed to scale production of Shorai, the Japanese word for “future,” at a competitive price point, while also reducing its carbon footprint by 80 percent when compared to synthetic leather. The company also made a large-scale production partnership with a thermoplastic extrusion and lamination company, Bixby International, this year. Continue reading.

Koda Health: Houston digital health platform Koda closes $7 million funding round

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 this year. 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. Koda Health, saw major growth this year by integrating its end-of-life care planning platform with Dallas-based Guidehealth in April and with Epic Systems in July. The company won the Health Tech Business category at the 2025 Houston Innovation Awards. Continue reading.

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

The H. Albert Napier Rice Launch Challenge awarded $100,000 in equity-free funding to student-led startups, including first-place finisher Veloci Running. Photo courtesy of Rice University.

Veloci Running took home the first-place prize and $50,000 at the annual Liu Idea Lab for Innovation and Entrepreneurship's H. Albert Napier Rice Launch Challenge. 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. Additional prize winners included SteerBio, Kinnections, Labshare and several others. Continue reading.

Square Robot Inc.: Houston robotics co. unveils new robot that can handle extreme temperatures

The new robot eliminates the need for humans to enter dangerous and toxic environments. Photo courtesy of Square Robot

Houston- and Boston-based Square Robot Inc.'s newest tank inspection robot became commercially available and certified to operate at extreme temperatures this fall. The new robot, known as the SR-3HT, can operate from 14°F to 131°F, representing a broader temperature range than previous models in the company's portfolio. According to the company, its previous temperature range reached 32°F to 104°F. The company also announced a partnership with downstream and midstream energy giant Marathon Petroleum Corp. (NYSE: MPC) last month. Continue reading.

Bot Auto: Houston autonomous trucking co. completes first test run without human intervention

Bot Auto completed its first test run without human assistance in Houston. Photo courtesy Bot Auto.

Houston-based Bot Auto, an autonomous trucking company, completed its first test run without human assistance earlier this year. Bot Auto conducted the test in Houston. The transportation-as-a-service startup added that this milestone “serves as a validation benchmark, demonstrating the maturity and safety of Bot Auto’s autonomy stack and test protocols.” This summer, founder Xiaodi Hou told the Front Lines podcast that Bot Auto had raised more than $45 million. Continue reading.

Nomad: Screen-free hiking app developed in Houston earns 'Best of the Best' award

NOMAD aims to help hikers stay in the moment while still utilizing technology. Photo courtesy UH.

An AI-powered, screen-free hiking system developed by Varshini Chouthri, a recent industrial design graduate from the University of Houston, received this year's Red Dot’s “Best of the Best” award, which recognizes the top innovative designs around the world. Known as NOMAD, the system aims to help users stay in the moment while still utilizing technology. Continue reading.

Little Place Labs, Helix Earth, Tempest Droneworx: Houston startups win big at SXSW 2025 pitch competition

Two Houston startups won the SXSW Pitch showcase in their respective categories. Photo via Getty Images

Houston had a strong showing at the SXSW Pitch showcase in Austin this year, with several local startups claiming top prizes in their respective categories.

Little Place Labs, a Houston space data startup, won the Security, GovTech & Space competition. Clean-tech company Helix Earth, which spun out of Rice University and was incubated at Greentown Labs, won in the Smart Cities, Transportation & Sustainability contest. Tempest Droneworx, a Houston-based company that provides real-time intelligence collected through drones, robots and sensors, won the Best Speed Pitch award. Continue reading.