Report: Texas ranks as the best state to start a business

lone star startups

How's startup life in Texas? Well, it's the best in the nation, according to a new ranking. Photo via Getty Images

If you're a Texan looking to launch a startup, you appear to be in the right place.

Personal finance website WalletHub puts Texas at No. 1 in its new ranking of the best and worst states for starting a business. Across the 50 states, WalletHub compared 28 key indicators of startup success to come up with the list.

In the general bucket for "business environment," Texas ranked second. It dropped to 12th in the "access to resources" category and 32nd in the "business costs" category. Digging deeper, Texas appears at No. 4 for the average length of the workweek, No. 5 for the highest total spending on incentives as a percentage of GDP, and No. 6 for average growth in number of small businesses. However, Texas scored a below-average 29th-place ranking for labor costs.

"Choosing the right state for a business is … crucial to its success," WalletHub explains. "A state that provides the ideal conditions for business creation — access to cash, skilled workers, and affordable office space, for instance — can help new ventures not only take off but also thrive."

The WalletHub accolade follows a handful of other recent plaudits for Texas' business-friendly environment.

In March, Site Selection magazine awarded its Governor's Cup to Texas. The Governor's Cup honors the top states for job creation and capital investment.

"Despite the challenges faced from the COVID-19 pandemic, we've seen what Texas can achieve when we foster an environment that empowers people to succeed," Gov. Greg Abbott said in a statement about the Governor's Cup win. "The Texas model continues to inspire entrepreneurs and innovators and attract job creators from across the country, and I look forward to spurring more job growth and opportunity for all Texans in every corner of our great state."

A month later, Chief Executive magazine crowned Texas the best state for business for the 17th consecutive year.

But Texas ranked fourth in CNBC's recent rundown of the top states for business in 2021. "A fourth-place finish would be good for most states, but not Texas. This year's finish ties for the worst-ever for the four-time Top State, which last won in 2018," CNBC says.

CNBC says Texas finished fourth based on the strength of its workforce and economy.

"But Texas was hurt this year by policies that run counter to the study's increased focus on inclusiveness," adds CNBC, pointing out that Abbott is pressing ahead with these policies during the current special session of the Texas Legislature.

Abbott's agenda for the special session includes legislation that critics view as watering down voting rights, attacking public school education about racism, and punishing transgender competitors in school sports. Supporters say these measures would preserve election integrity, strip critical race theory from public education in Texas, and protect females participating in school sports whose gender identity aligns with their birth gender.

Texans have been rightfully wary of the grid. Photo by Getty Images

ERCOT announces plan to improve Texas power grid reliability

a better grid

Texas Gov. Greg Abbott recently demanded aggressive action from state utility regulators to shore up the power grid.

Now, the Electric Reliability Council of Texas, or ERCOT, is revealing its plan to address improvements.

On Tuesday, July 13, ERCOT released a 60-item roadmap it said will be updated regularly through the end of the year. The council says it includes both existing and new initiatives.

Here are a few of the items, according to ERCOT:

  • Taking a more aggressive approach by bringing more generation online sooner if it's needed to balance supply and demand. The grid operator is also purchasing more reserve power, especially on days when the weather forecast is uncertain.
  • Requiring CEO certifications. After a rule change, all market participants who own or operate generation resources and/or transmission/distribution power lines will be required to submit a letter signed by their CEO twice a year certifying their companies have completed their weatherization preparations to protect the electric grid for the summer and winter seasons.
  • Adding new requirements for generation owners. ERCOT is proposing a new market rule that requires generators to provide operational updates more frequently.
  • Assessing on-site fuel supplies. ERCOT is reviewing the need for on-site fuel supplies for some generators.
  • Performing unannounced testing of generation resources. ERCOT says this testing helps verify that generators have provided accurate information about their availability.
  • Addressing transmission constraints in Rio Grande Valley. ERCOT and the PUC (Public Utility Commission) are initiating a process to address RGV transmission limitations and provide increased market access for resources in the Valley. ERCOT says this will improve reliability for customers during normal conditions and high-risk weather events.


ERCOT and grid woes continue to be top of mind for Texans. At least 220 generators were offline the week of June 14 when council officials called for Texans to conserve power.

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Tesla's Fremont, California, factory employs around 10,000 people and uses a fleet of robots to create the vehicles. Photo courtesy of Tesla Motors

Tesla taps Texas for new factory with construction already underway

Lone star state bound

Tesla CEO Elon Musk is putting an end to months of speculation of if the Lone Star State is to be considered for Tesla's next U.S. factory. Multiple cities including Tulsa, Oklahoma, were attempting to woo the electric car manufacturer.

But, as Musk announced this week, work is already underway on a new site in Austin. The 2,100-acre site sits near the Austin-Bergstrom International Airport. Previous reporting by numerous sources revealed that Tesla had a $5 million option to purchase the property, which has around two miles of frontage on the Colorado River. A sand and gravel mining company currently operates on the site, which is off Texas State Highway 130, just south of Harold Green Road. Google already marks the site as Tesla GigaAustin.

"Tesla is one of the most exciting and innovative companies in the world, and we are proud to welcome its team to the State of Texas," Texas Gov. Greg Abbott said in a statement. "Texas has the best workforce in the nation and we've built an economic environment that allows companies like Tesla to innovate and succeed.

"Tesla's Gigafactory Texas will keep the Texas economy the strongest in the nation and will create thousands of jobs for hard-working Texans," he continues. "I look forward to the tremendous benefits that Tesla's investment will bring to Central Texas and to the entire state."

Travis County, where the plant is located, recently approved to grant a tax break for the company that is projected to amount to $14 million in savings on property taxes over the next 10 years. The Del Valle school district, where the site is located, also approved a tax holiday for the company, granting approximately $50 million in tax rebates over the same timespan.

Tesla has promised to reinvest 10 percent of the tax rebate amount back into the community.

The company is planning to spend $1.1 billions to built a 4 to 5 million square foot factory on the site that will employ around 5,000 acres according to documents filed with Travis Country. Workers would earn an average salary of around $47,000 and have benefits and stock options. Minimum pay will be $15 per hour. The workers would not be unionized.

The factory will be company's second automotive plant in the U.S. The other is located in Fremont, California, and employed around 10,000 people.

Tesla intends to make its new Cybertruck at the facility in addition to Tesla Model Y crossovers, Model 3 sedans that are destined for delivery in the Eastern U.S. The Tesla semi truck is also slated for production at the site.

On an earnings call today, Musk said that the plant will be an "ecological paradise" and it will be open to the public.

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This article originally ran on AutomotiveMap.

Tesla plans to manufacture its new Cybertruck at the facility, along with Tesla Model Y crossovers, the Tesla semi truck, and Model 3 sedans. Photo courtesy of Tesla Motors

Texas was named the second best state for business by Forbes, and Oxford Economics predicted Houston's economic growth to be more significant over the next few years than most other major metros. Getty Images

Texas recognized as second best state for business, while Houston expected to see key economic growth

Feathers for our cap

Houston and the rest of Texas received two early Christmas presents signaling that their economies continue to percolate.

In a report released December 23, economic forecasting and analysis firm Oxford Economics predicted Houston and Dallas-Fort Worth will enjoy a greater share of economic growth through 2023 than any other mega-metro area in the U.S. except San Francisco.

Meanwhile, Forbes magazine declared on December 19 that Texas is the second best state for business, behind only North Carolina. Texas previously sat in the No. 3 spot on the Forbes list, preceded by North Carolina and Utah.

Through 2023, Oxford Economics forecasts average compound GDP growth of 2.4 percent in Houston and Dallas-Fort Worth. Among the country's 10 biggest metro areas, only the projection for San Francisco is higher (2.7 percent).

For Houston, the 2.4 percent figure would be an improvement over recent economic performance. From 2014 to 2018, the region's GDP growth rate was 1 percent, while it was 1.5 percent for 2015-19. In the 2020-21 timeframe, the growth rate for Houston is expected to be 1.9 percent.

In a recent forecast, the Greater Houston Partnership envisions the Houston area adding 42,300 jobs in 2020, mostly outside the energy sector. Among the region's top-performing sectors in 2020 will be healthcare, government, food services, and construction, the partnership says. Meanwhile, the energy, retail, and information sectors are expected to shrink.

In November, Robert Gilmer of the University of Houston's Institute for Regional Forecasting explained that by the end of 2022, job losses in the oil industry should have a limited effect on the region's economy. Still, he anticipates Houston's job growth through 2024 will be "moderate and just below trend."

In forecasting strong economic growth for Houston and DFW, Oxford Economics says the "industrial structures" of the two regions "are not exceptional, but low costs and low regulation mean that the industries that they do have grow faster than elsewhere."

"San Francisco's very high costs are creating affordability problems and rising inequalities that may eventually undermine its model," Oxford Economics adds. "Competitive advantages never last forever. The Sunbelt cities [including Houston and DFW] may yet give it a run for its money."

Houston's and DFW's competitive advantages mesh with those of the entire state. Texas' high points include lower taxes, lower labor expenses, lower cost of living, and low levels of regulation, Oxford Economics says.

As noted by Forbes, Moody's Analytics predicts Texas businesses will add close to 1 million new jobs by 2023, which would be the third highest average annual job growth rate among the states. Meanwhile, the share of Texans who launched businesses last year was the fourth highest in the country, according to Kauffman Foundation data cited by Forbes. And just three states — California, New York and Washington — saw more venture capital flow into them in 2018 and 2019 than Texas did, according to PwC.

Texas earned these rankings on the Forbes list:

  • No. 1 state for growth prospects
  • No. 1 state for business costs
  • No. 4 state for economic climate
  • No. 10 state for labor supply
  • No. 15 state for quality of life
  • No. 21 state for regulatory environment
In his 2019 State of the State address, Gov. Greg Abbott praised Texas as "the most powerful state in America," thanks in part to healthy job growth, low unemployment, and rising wages. "Texas is the premier economic destination in the United States," he said.
Apps like Favor and Instacart can now apply for permits to deliver booze from stores and restaurants straight to your door. Photo courtesy of Favor

Houstonians have access to ordering liquor at their fingertips — thanks to a new Texas law

There's an app for that

It's about to be a lot easier to order your favorite handle of booze straight to your door, thanks to new legislation. The Texas Alcoholic Beverage Commission just began accepting applications for permits enabling services like Favor and Instacart to bring alcohol to your home.

In June, Governor Greg Abbott signed legislation that widens the door for liquor delivery across the Lone Star State. Any third-party company seeking to launch the service can now obtain a so-called consumer delivery permit from TABC. Chris Porter, a TABC spokesman, tells CultureMap that the first permits should be issued during the third week of December — just in time for Christmas Day and New Year's Eve parties.

In a December 5 news release, TABC executive director Bentley Nettles says this law is "an important step forward for Texas consumers, as well as alcohol retailers. For years, Texans across the state have relied on third-party services to deliver everything from clothing to vehicles. Now, at long last, alcohol can be delivered as well."

Before enactment of the law, certain businesses like liquor stores could distribute beer, wine, and liquor in Texas to homes and businesses. But through this year's legislative update, third-party companies now will be permitted to pick up beer, wine, and liquor from a state-licensed retailer such as a bar, restaurant, or liquor store and then take it to customers — either as solo purchases or along with food orders.

"We primarily see this as appealing to third-party delivery services," Porter says. "There are laws on the books which became effective in September that allow restaurants with the proper permit to deliver alcohol along with food on their own. Of course, if these businesses opt instead to contract that delivery to a third party, then the third party would need the new consumer delivery permit."

The new law mandates that drivers and booze buyers be at least 21 years old, which is the legal age for alcohol consumption in Texas.

Among the businesses and organizations that backed the legislation are San Antonio grocery chain H-E-B, which owns the Austin-based Favor delivery app; Instacart; the Houston-based Landry's restaurant conglomerate; e-commerce giant Amazon; TechNet; the Texas Restaurant Association; Beer Alliance of Texas; Wholesale Beer Distributors of Texas; and the California-based Wine Institute.

"This law will allow more businesses to take advantage of on-demand delivery apps that enable them to reach more customers, while ensuring deliveries of alcohol are carried out safely and responsibly," David Edmonson, TechNet's executive director for Texas and the Southeast, said in a June news release.

The Texas Restaurant Association applauds the law as a way for restaurants to better compete in the on-demand economy.

"With customers increasingly craving convenience, and hotels, grocery stores, and package stores already permitted to allow alcohol to be taken or delivered off the premises, this legislation [levels] the playing field for restaurants," the association says in a statement.

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This article originally ran on CultureMap.

According to a new study, there's still a lot the Lone Star State needs to do to protect its citzens online. Getty Images

New study finds that Texas is more at risk for cyber privacy concerns than other states

safety online

If Texas' standards for online privacy were graded, the Lone Star State would earn an "F," a new study indicates.

An analysis of online privacy laws in the 50 states shows Texas adheres to only five (25 percent) of the 20 privacy standards examined by pro-consumer tech research website Comparetech. Just two states surpassed the 50 percent mark — California (75 percent) and Delaware (55 percent). At 5 percent, Wyoming was ranked the worst state for online privacy protection laws.

Texas did, however, have some redeeming qualities. The state has laws on the books regarding how companies dispose of consumers' data, how organizations protect data about students in kindergarten through 12th grade, how biometric data is protected, and how journalists are shielded from revealing their sources, according to Comparetech.

Ranking 23rd in the Comparetech study, Texas fell short in areas such as social media privacy, security of insurance data, third-party sharing of data, and disclosure of what types of data companies collect about consumers.

"Texas still has a long way to go in protecting its residents' privacy, particularly when it comes to how companies and government entities can collect, use, and share personal data," says Paul Bischoff, a privacy advocate with Comparetech.

During Texas' 2019 legislative session, one comprehensive measure aimed at tightening online privacy laws, the Texas Consumer Privacy Act, failed to reach the governor's desk.

However, lawmakers passed and Gov. Greg Abbott signed the Texas Privacy Protection Act. This law, far less sweeping than the Texas Consumer Privacy Act, revises notification requirements under the Texas Identity Theft Enforcement and Protection Act, according to the Data Privacy Monitor blog. It also establishes the 15-member Texas Privacy Protection Advisory Council, which will recommend future legislation tied to data privacy.

In Texas, Bischoff says, companies still "have few restrictions on how they are allowed to gather information from users, how long that data can be retained, and with whom it can be shared. Likewise, government entities like schools and law enforcement are not bound by laws that would prevent them from invading people's privacy."

He notes, however, that Texas is among only four states that protect biometric data such as fingerprints and facial-recognition scans.

Among all the states, California "sets a fairly high bar" for protection of online privacy, Bischoff says, but even it fails to meet all of the pro-privacy criteria set out in the Comparetech study.

Around the country, most people support beefing up state laws governing online privacy, he says, "but technology has outpaced legislation, so many states just need time to catch up."

Some Americans, though, doubt that any laws can safeguard their online privacy. In a 2019 survey commissioned by privacy-technology company FigLeaf Inc., 29 percent of U.S. adults said they thought it was impossible to safeguard their digital information.

"Without question, consumers are telling us that online privacy is important to them. However, far too many believe online privacy is difficult, if not impossible, to achieve," Slava Kolomeichuk, co-founder and CEO of Deerfield, Illinois-based FigLeaf, says in a news release. "This attitude is resulting in individuals who are choosing to restrict their own online activity, which limits their personal freedom. Unfortunately, current tools do not give consumers the assurance they need that it is possible to control one's own online privacy."

Control of online privacy is a serious concern for U.S. adults. In a 2019 survey by SurveyMonkey, 58 percent of adults viewed online privacy as a crisis. For Texans, this concern won't be addressed by state lawmakers until the Legislature reconvenes in 2021. Meanwhile, federal lawmakers aren't expected to take action this year on an online privacy bill.

U.S. Sen. Richard Wicker, a Mississippi Republican who chairs the Senate Commerce Committee, is one of the main sponsors of the federal privacy legislation. He says Americans deserve the same online protections regardless of where in the U.S. they live or travel.

"That means internet privacy regulations should not vary across state lines," Wicker says on his website. "Not only would 50 different privacy standards leave Americans uncertain about what is being done with their data, but a patchwork of state-level interventions could also lead to uncertainty for businesses, bad internet service, and slower economic growth."
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Houston-based startup expands hangover product line with new beverage launch

cheers to health

Houston-based startup Cheers first got a wave of brand devotees after it was passed over by investors on Shark Tank in 2018. In the years since, Cheers secured an impressive investment, launched new products, and became a staple hangover cure for customers. When the COVID-19 pandemic disrupted businesses, the company rose to the occasion and experienced its first profitable year as drinking and wellness habits changed across America.

Cheers initially started its company under the name Thrive+ with a hangover-friendly pill that promised to minimize the not-so-fun side effects that come after a night out. The capsules support the liver by replacing lost vitamins, reduce GABAa rebound and lower the alcohol-induced acetaldehyde toxicity levels in the body. The company's legacy product complemented social calendars and nights on the town, providing next day relief.

With COVID-19 lockdowns and social distancing measures, the days of pub crawls and social events were numbered. Cheers founder Brooks Powell saw the massive behavior change in people consuming alcohol, and leaned into his vision of becoming more than just a hangover cure but an "alcohol-related health company," he says.

When the pandemic first hit, Powell and his team noticed an immediate dip in sales — a relatable story for businesses in the grips of COVID-19.

"There is a three day period where we went from having the best month in company history to the worst month in company history, over a 72 hour stretch," he remarks.

He soon called an emergency board meeting and rattled off worst-case "doomsday" scenarios, he says.

"Thankfully, we never had to do any of these strategies because, ultimately, the team was able to rally around the new positioning for the brand which was far more focused on alcohol-related health," he says.

"We found that a lot less people were getting hangovers during 2020, because generally when you binge drink, you tend to binge drink with other people," he explains.

He noticed that health became an important focus for people, some who began to drink less due to the lack of social gatherings. On the contrary, some consumers began to drink more to fill the idle time.

According to a JAMA Network report, there was a 54 percent increase in national sales of alcohol for the week stay-at-home orders began last March, as compared to the year prior.

"All of a sudden, you have all of these people who probably aren't binge drinking but they're just frequently consuming alcohol. Their drinks per week are shooting up, and they're worried about liver health," explains Powell.

Outside of day-after support, Cheers leaned into its long-term health products to help drinkers consume alcohol in a healthier way. Cheers Restore, a dissolvable powder consumers can mix into their water, rehydrates the body by optimizing sodium and glucose molecules.

For continued support, Cheers Protect is a daily supplement designed to increase glutathione — an antioxidant that plays a key role in liver detoxification — and support overall liver health. Cheers Protect, which was launched in 2019, became a focus for the company as they pivoted its brand strategy and marketing to accommodate consumer behavior.

"The Cheers brand is just trying to reflect the mission statement, which is bringing people together through promoting fun, responsible and health-conscious alcohol consumption," says Powell. "It fits with our vision statement, which is a world where everyone can enjoy alcohol throughout a long, healthy and happy lifetime,."

At the close of 2020, Cheers had generated $10.4 million in revenue and over $1.7m in profit — its first profitable year since launch.

During the brand's mission to stay afloat during the pandemic, the Cheers team was also laying the groundwork for its entry into the retail space. When Powell launched the company during his junior year at Princeton University, bringing Cheers to brick-and-mortar stores had always been a goal. He envisioned liquor and grocery stores where Cheers was sold next to alcohol as a complementary item. "It's like getting sunscreen before going to the beach, they kind of go hand in hand," he says.

"When we spoke with retailers, specifically bars and liquor stores, what we learned is that a lot of these places were hesitant to put pills near alcohol," he says. Wanting an attractive and accessible mode of alcohol-support, the Cheers team created the Cheers Restore beverage.

Utilizing the technology Cheers developed with Princeton University researchers, the Cheers Restore beverage incorporates the benefits of the pill in a liquid, sugar-free form. The company states that its in-vivo study found that the drink is up to 19 times more bioavailable than pure dihydromyricetin (DHM), a Japanese raisin tree extract found in Cheers products and other hangover-related cures.

"What we figured out is that if you combine DHM — our main ingredient — with something called capric acid, which is an extract from coconut oil, the bioavailability shoots way up," says Powell. He notes the unique taste profile and the "creaminess" capric acid provides. "Now you have this lightly carbonated, zero-sugar, lemon sherbert, essentially liver support, hangover beverage that tastes great in 12 ounces and can mix with alcohol," he explains.

The Cheers Restore beverage is already hitting the Houston-area, where its found a home on menus at Present Company. The company has also run promotions with Houston hangouts like Memorial Trail Ice House, Drift, and The Powder Keg.

Currently, the beverage is only available in retail capacity and cannot be ordered on the Cheers website. As Powell focuses on expanding Cheers Restore beverage presence in the region, he welcomes the idea of expanding nationally in the future to come. While eager customers await the drink's national availability, they can actively invest in Cheers through the company's recently-launched online public offering.

Though repivoting a company and launching a new product is exciting, the process did not come without its caveats and stressors. While Cheers profited as a business in 2020, the staff and its founder weren't immune to the struggles of COVID-19.

"I think 2020 was the first year that it really became real for me that Cheers is far more than just some sort of alcohol-related health brand and its products," says Powell. "Cheers is really its employees and everything that goes into being a successful, durable company that people essentially bet their careers on and their family's well-being on and so forth," he continues.

"It really does weigh on you in a different way that it's never weighed on you before," says Powell, describing the stress of the pandemic. The experience was "enlightening," he says, and he wants others to know it's not embarrassing to need help.

"There is no lack of great leaders out there that at long periods of their life they needed help in some way," he says. "For me that was 2020 and being in the grinder and feeling the stress of the unknown and all of that, but it could happen to anyone," he continues.

Get a glimpse at the schedule and speakers for global healthtech event

Itinerary Time

HealthTech Beyond Borders is coming up August 10-13, 2021, where American healthtech companies can find their perfect match with Chilean collaborators. But what exactly can you expect from the free, virtual event?

Besides answering the question "why Chile?," the seminars will touch on everything from software solutions and medical facility management to healthcare products and services, and even venture capital opportunities.

A curated group of successful Chilean and U.S. healthtech companies are participating, including those that specialize in artificial intelligence, 3-D printing, medical robotics, gene therapies, nanomedicine, neurotechnology, eye care tech, telehealth, imaging diagnostics, wellness and fitness, mental health, and more.

The first day includes such panelists as Matias Gutierrez, CEO of Genosur LLC, and Alberto Rodríguez Navarro from Levita Magnetics.

A discussion on the current healthcare innovation ecosystem in Chile and the region's strengths, as well as developments for key sub-sectors are also on tap.

Day two kicks off with everything you'd want to know about venture capital, and why the U.S. has been the largest for Chilean startups.

Find answers to questions like what do early stage companies need to consider and what steps do they need to take to best prepare themselves to receive funding, as well as what are the important tools for companies to reach VC on each territory?

Day three examines the question "Why the U.S.?" What have Houston, Chicago, and Philadelphia done to become key healthcare hubs in the world, and what role do international partners play in these efforts? Representatives from each city are participating.

Likewise, why do international healthcare companies prioritize your respective markets, and how do these cities support expansion? Learn how the global U.S. private healthcare sector can reach Latin America, and how ProChile — the event's sponsor — can help make these connections.

Registration is now open, so get your free tickets here.

Houston cancer-fighting institution names 10 innovative fellows

curing cancer

A Houston institution has identified 10 researchers moving the needle on curing cancer.

The University of Texas MD Anderson Cancer Center named 10 "early career" faculty members to its 2021 class of Andrew Sabin Family Fellows. The fellowship was established by philanthropist Andrew Sabin through a $30 million endowment in 2015 and "encourages creativity, innovation and impactful cancer research at MD Anderson in the areas of basic science, clinical, physician-scientist and population and quantitative science," according to a news release.

Sabin has served as a member of the MD Anderson Cancer Center Board of Visitors since 2005.

"Researchers at MD Anderson are unmatched in their ability to develop bold tactics aimed at tackling cancer," he says in the release. "My hope is that through our support, we can inspire and assist these brilliant minds in their dedicated work to end cancer."

The program will dole out $100,000 to each fellow over two years. Since its inception, the program has selected and supported 52 fellows specializing in cancer research from basic science to translational research to survivorship.

"Our early career researchers are a pivotal part of the innovative discoveries that fuel our mission to end cancer," says President Peter WT Pisters, in the release. "We are extremely grateful for the generosity of the Andrew Sabin Family Foundation in allowing our institution to recruit and retain the highest caliber of young researchers through this fellowship program. Together, we will continue Making Cancer History."

The 2021 class of Sabin Family Fellows includes:

Basic/Translational Scientists

Clinical Researchers

Physician-Scientists

Population/Quantitative Scientists