New data shows that Houston communities saw an uptick in startup founding from Black entrepreneurs. Photo courtesy

It might seem that the formation of startups would have stagnated amid the COVID-19 pandemic. Yet that was anything but the case for Houston startups founded by Black entrepreneurs.

A recent study by economists at Rice University, Boston University, Columbia University, and the Massachusetts Institute of Technology (MIT) found that from 2019 to 2020, the startup rate rose 32 percent in four largely Black areas of Houston: Kashmere Gardens, Missouri City, South Acres, and Sunnyside. By comparison, the statewide startup rate during that period was only 10 percent.

There's no denying that Black-owned businesses already have a significant impact on the economy of the Houston metro area.

A report released in 2019 by the Greater Houston Black Chamber estimated the group's more than 1,500 members collectively generate anywhere from $1 billion to $2 billion in annual revenue. A little over one-fifth of the population in the Houston area is Black. That population is projected to grow 34 percent between 2010 and 2030.

In 2015, personal finance website NerdWallet ranked Houston the 15th best metro in the country and the best metro in Texas for Black-owned businesses.

The Rice economist who contributed to the study is Yupeng Liu, a doctoral student at the university's Jones Graduate School of Business. While he and his fellow researchers note that their study doesn't confirm a cause-and-effect relationship, "it is useful to note that the federal relief payments, and their uniform distribution (independent of eligibility criteria), may have played a role in enabling new firm formation in Black neighborhoods which might otherwise have been constrained by discrimination."

Furthermore, some experts speculate that last year's rise of the racial justice movement may have helped lift up Black entrepreneurs, and that many Black Americans set up new businesses out of necessity in 2020 after being laid off or seeing their work income or hours reduced.

The study, published by the National Bureau of Economic Research, compared startup data for 2020 in Texas and seven other states — Florida, Georgia, Kentucky, New York, Tennessee, Vermont, and Washington — with startup data for 2019. In all, the number of business formations spiked by 21 percent, with the growth of Black-owned startups being especially pronounced. However, an estimated 40 percent of Black-owned businesses closed during the pandemic, compared with 20 percent across all racial and ethnic groups.

The findings of the research bureau's study mirror a subsequent report from the Ewing Kauffman Foundation, a nonprofit that promotes entrepreneurship. The report found more Black-owned businesses were launched last year compared with the total population than at any time in the past 25 years, according to the Los Angeles Times. On average, 380 out of every 100,000 Black adults became new entrepreneurs during the 2020 pandemic, up from 240 in each of the previous two years, the report shows.

In reporting on the National Bureau of Economic Research study, CBS News and The New York Times spotlighted two new Black-owned startups in Houston.

Last July, Destiny McCoy and Oyinda Adebo of Houston launched a mental health company called Wellness for Culture. The company already has been so successful that McCoy says it now supports her financially, according to CBS News.

"All I knew is that I wanted to help Black women," McCoy told CBS News, "and all I knew was I didn't want to do therapy in the typical way."

Another Black entrepreneur from Houston, Pilar Donnelly, enjoyed similar success in 2020. Last summer, Donnelly began making playhouses for her two 6-year-old boys, the Times reported.

"She had been laid off from her job in sports marketing and wanted to give them something for their birthday. With no background in woodworking, she started off with a design she liked online and watched YouTube to learn woodworking techniques," according to the Times. "After making a number of playhouses for her friends and family, she realized it could be a business. That business, which she registered in June, is called Wish You Wood Custom Creations."

Woodworking is now Donnelly's full-time job.

"Everyone I encountered either had a really good year or a really bad year — and for me I had a good year," she told the Times. "Now I'm working outside in the grass and the dirt. I have a workshop in the garage; I have scrap wood everywhere. My life is really different."

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6+ can't-miss Houston business and innovation events in March

where to be

Editor's note: March brings the return of some of Houston’s signature innovation events, plus insightful talks and celebrations in honor of Women's History Month. Here’s what not to miss and how to register. Please note: this article may be updated to include additional event listings.

March 3-4 — Houston MedTech Rodeo

Head to Armadillo Palace for the annual Houston MedTech Rodeo. The casual, Texas-themed conference brings together 350 medtech professionals who come from over 10 countries and 15 states to highlight Houston's growing medtech ecosystem. The event will feature panel discussions, startup showcases, networking sessions—plus, armadillo races, mechanical bull riding and live country music.

The event begins March 3 at Armadillo Palace on Kirby Drive. Register here.

March 4 – Humans of Healthcare

Houston Methodist Center for Innovation will present its new quarterly speaker series, Humans of Healthcare. The series will feature a panel of experts who will share about their career paths and discuss the nuances of the health care industry. This month's session will focus on IT. The panel will be moderated by Houston Methodist's Director of Innovation Murat Uralkan.

The event is Wednesday, March 4, from 5-6 p.m. at the Ion. Register here.

March 5 — The Future of Women in STEM

Celebrate Women's History Month at SUPERGirls SHINE Foundation's The Future of Women in STEM event, presented in partnership with the Ion. The event will feature speakers and panelists, including Kalila Winters Hines, senior public affairs advisor for Holland & Knight; Dr. Natacha Chough, NASA Johnson Space Center Flight Surgeon; and Andrea Course, rocket scientist and founder of Course Investments.

The event is Thursday, March 5, from 8:30-10 a.m. at the Ion. Register here.

March 10-12 — World Hydrogen & Carbon Americas

S&P Global Energy brings together two leading events—Carbon Management Americas and World Hydrogen North America—to form a new must-attend event for those in the hydrogen and carbon industries. More than 800 senior leaders from across the energy value chain will attend this event featuring immersive roundtable discussions, hands-on training, real-world case studies and unparalleled networking opportunities.

This event begins March 10 at the Marriott Marquis Houston. Register here.

March 20 — Ideas to Impact Accelerator Graduation and Showcase

Join Impact Hub Houston as it celebrates its inaugural Ideas to Impact Accelerator cohort. The 16-week accelerator is designed to help early-stage entrepreneurs validate their business models, strengthen confidence and gain traction. Hear short pitches and network with founders and mentors.

The event is Friday, March 20, from noon-2 p.m. at the Ion. Register here.

March 23-27 — CERAWeek 2026

CERAWeek 2026 will focus on "Convergence and Competition: Energy, Technology and Geopolitics." The industry's foremost thought leaders will convene in Houston to cultivate relationships and exchange transformative ideas during the annual event. CERAWeek 2026 will explore breakthroughs, cross-industry connections and powerful partnerships that are accelerating the transformation of the global energy system. 2026 highlights include an appearance by tech magnate Bill Gates.

This event begins March 23. Register here.

March 24-25 — 2026 Energy Venture Day and Pitch Competition

The Energy Venture Day and Pitch Competition, co-hosted by the Rice Alliance, Ion, HETI and TEX-E, offers two days of exciting pitches from more than 40 global energy ventures that are transforming the industry. On Tuesday, March 24, you can attend a fast-paced pitch preview event at the Ion, followed by the official Pitch Competition at 1 pm on Wednesday, March 25, at the George R. Brown Convention Center.

March 30-April 4 — H-Town Roundup

Celebrate innovation, entrepreneurship and collaboration at Houston Exponential's sixth-annual H-Town Roundup. During the free event series, previously known as Houston Tech Rodeo, attendees can expect insightful talks, workshops and networking events at venues across the city.

This event begins Monday, March 30. Register here.

Intuitive Machines secures $175M equity investment to fuel growth

space funding

Houston-based space infrastructure and services company Intuitive Machines has secured a $175 million equity investment from unidentified institutional investors. The investors received shares of Class A stock in exchange for their funding.

Publicly held Intuitive Machines (Nasdaq: LUNR) says it plans to use the capital to help build revenue and invest in technology, including communications and data-processing networks.

“We are building a scalable infrastructure platform from low-Earth orbit to the moon and into deep space,” Intuitive Machines CEO Steve Altemus said in a news release. “With this investment, we can accelerate the integration of the combined company’s collective capabilities to deliver next-generation data, communications, and space-based infrastructure services.”

Intuitive Machines says the $175 million investment will improve its ability to secure deals for satellite systems, the proposed Golden Dome missile defense system and the proposed Mars telecommunications orbiter.

As the company pursues those deals, it’s seeking partners to develop space-based data centers.

The $175 million equity stake comes on the heels of Intuitive Machines completing its $800 million cash-and-stock purchase of Lanteris Space Systems. Intuitive Machines bought the satellite manufacturer from private equity firm Advent International.

In the third quarter, which ended Sept. 30, Intuitive Machines posted a $10 million net loss on revenue of $52.4 million.