Houston reported to have among the most minority-owned startups in the nation

Melting pot

Houston, named the most diverse city in the country, also has a strong representation of minority-owned startups. Photo by Tim Leviston/Getty Images

While Houston's population is considered diverse, the breakdown of startup founders doesn't necessarily follow suit. However, according to a new report, the city of Houston has among the highest percentage of minority-owned startups in the United States.

Using data from the U.S. Census Bureau's Annual Survey of Entrepreneurs, Volusion published a report naming the 15 cities with the most minority-owned startups, and the Houston, The Woodlands, and Sugar Land market ranked at No. 13. The city has 35.4 percent of its startups (3,697 startups) owned by minorities. While this percentage is enough to secure placement on the list, Houston's actual minority population is 62.8 percent, so the Bayou City still has room to close the gap.

According to Volusion's study, 15,673 people work at Houston's minority-owned startups and the gross sales of these companies ranges from $1 billion to less than $5 billion. The top industry for minority-owned startups is accommodation and food services.

"One of the major resources for minority business owners is the Greater Houston Black Chamber of Commerce, which offers a Business Readiness Training Program to help new entrepreneurs develop their skills," the report reads. "Although Houston is well-known for its petroleum and technology industries, minority-owned businesses are most active in accommodation and food services."

The Dallas, Fort Worth, and Arlington market ranks immediately ahead of Houston at No. 12 with the slightest edge of a fraction of a percentage. Dallas startups are 35.5 percent minority owned, making up 4,357 startups with 23,992 employees. Meanwhile, San Antonio and New Braunfels slides into the No. 6 spot on the list with 45 percent of its startups (1,534 companies) being minority owned and employing 4,160.

Five of the top 15 metros on this list are in California, and the top three markets are all in California: No. 1 San Jose-Sunnyvale-Santa Clara, No. 2 Riverside-San Bernardino-Ontario, and No. 3 Los Angeles-Long Beach-Anaheim. Each of the top three boasts around 50 percent of their startups being minority owned.

According to Volusion's report, the national trend is disproprotionate when you compare the markets' population diversity to its minority-owned startups. Chart via Volusion

All of the Texas markets have a higher percentage of minority-owned startups compared to the national average, which is 27.4 percent. According to the U.S. Census Bureau, almost 40 percent of the country's population identifies as nonwhite, and some estimates, predict the U.S. will be considered a "majority-minority" country by 2044.

According to Volusion, some of the aspects that are holding back these types of companies include lack of resources and access to capital.

"In fact, a recent survey by Morgan Stanley found that while eight out of 10 investors perceive the funding landscape as balanced, investments in minority and women-owned ventures fall short by as much as 80 percent," reads the report. "The researchers cite increased risk perception, as well as lack of access and familiarity with minority and women-led businesses as key drivers of what they coin The Trillion-Dollar Blind Spot."

According to another report, money isn't the city's biggest issue. Houston was named as an affordable city for startups in a national report last month.

In April, Houston was named as the most diverse city in the nation, and earlier this month, a report found that diversity was well represented in Houston's STEM industries.

Houston ranks among the top markets with most diverse STEM workforce. Getty Images

Houston ranks as the No. 6 best city for diversity in STEM

stemming from inclusion

Houston has long been known as a melting pot with almost 1 in 4 Houstonians being foreign born and no ethnic majority, but a recent study has shown that this diversity translates to the science, technology, engineering, and mathematics industry.

SmartAsset studied the demographics within STEM employment in 35 technology hubs in the United States. The company factored in racial, ethnic, and gender diversity using Census Bureau's 2017 one-year American Community Survey data and the Shannon index.

As a result of the research, Houston was named the No. 6 market for diversity among the tech hubs considered. Fifty percent of Houston's STEM workforce is not white, and of that, 21 percent are Asian, 15 percent are hispanic, and 14 percent are black.

Less exciting, Houston has some room for improvement when it comes to gender diversity, the study found. Only 27 percent of Houston's STEM workforce are women, and that's more of a middle-of-the-pack ranking compared.

Washington D.C. claimed the top spot for STEM diversity after jumping from 10th place on last year's report. The U.S. capital boasts the highest percentage of female workers in STEM at 43 percent. Behind DC is Philadelphia, Sacramento, New York, and Boston. Dallas also appears on the top 10 list, coming in at No. 9. Dallas was also called out for its low percentage of women in STEM with women making up only 24 percent of the STEM workforce — the lowest representation among the top 10.

In April, the city of Houston was named the most diverse city in America, according to data from personal finance website, WalletHub. That study analyzed 501 of the most populated cities in America across five key dimensions: socioeconomic diversity, cultural diversity, economic diversity, household diversity, and religious diversity.

When you zero in on technology specifically, Houston does pretty well with female representation in the industry. In a separate report from SmartAsset that was released earlier this year, Houston was named the fourth best major metro for women in technology based on quality of life, pay, and more.

From Houston being named the most diverse city in the nation to an update from a fintech company, here's what news trended this week. Photo by PeopleImages

5 most popular innovation stories in Houston this week

What's trending

Editor's note: Heading into Easter Weekend, news might slow down a bit. However, last week was chock full of trending news — from entrepreneurs giving back to funding rounds closing. Check out what news readers were into this week.

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3 Houston entrepreneurs changing the world with their B2B startups

The Cannon hosted a B2B pitch night, and all three companies have a mission to change the world. Courtesy of The Cannon

I think it's safe to say that most B2B startups don't have sustainability or a mission-driven purpose at the core of their business model. In fact, it's probably safe to say that about any for-profit company of any size.

Three Houston entrepreneurs pitched their companies at The Cannon's recent B2B pitch night, and they all have something in common: They're not normal B2B startups. Each company has a mission to change the way we're doing something — from hiring to construction — in a way that's better for the world. Read the full story here.

Houston software company raises $16.3 million, TMCx opens applications, and more innovation news

TMCx is looking for members for its ninth cohort — and other Houston innovation news. Courtesy of TMCx

From rounds closing to accelerator applications opening, there's a lot of Houston innovation news that might not have reached your radar. Here's a roundup of short stories within tech and innovation in the Bayou City. Read the story here.

Houston crowned most diverse city in America by new report

The Bayou City has staked its claim as most diverse city in the nation. Photo by Tim Leviston/Getty Images

Last year, many locals cried foul when Houston was named the No. 2 most diverse city in the nation, behind — gasp! — Jersey City, New Jersey. But a new report confirms what we here already know: Houston is, indeed, the most diverse city in the country. Read the story here.

3 Houston innovators to know this week

This week's innovators to know represents a homecoming, an accelerator launch, and a call for tech education. Courtesy photos

This week's innovators to know span across industries — from sports tech to education, but they are all fighting for something here in Houston. Here's what they are focused on bringing to the Houston innovation ecosystem. Read the story here.

Houston fintech startup partners with local coworking space to grow investment opportunities

LetsLaunch, a Houston-based fundraising platform, has teamed up with The Cannon. Courtesy of LetsLaunch

A Houston fintech software company has joined forces with The Cannon to help connect its members to capital. LetsLaunch, a platform that allows for smaller investments from non-accredited investors, and The Cannon — along with its venture arm, Cannon Ventures — have officially entered a partnership as of this month.

"We're basically providing a transactional tool to allow Cannon Ventures to access more members who, legally, they couldn't access before," says Nick Carnrite, co-founder and CEO of LetsLaunch. "For us, it's a good thing because instead of having to go out and create a community of startups and investors, that gets brought to us." Read the story here.

The Bayou City has staked its claim as most diverse city in the nation. Photo by Tim Leviston/Getty Images

Houston crowned most diverse city in America by new report

We're No. 1

Last year, many locals cried foul when Houston was named the No. 2 most diverse city in the nation, behind — gasp! — Jersey City, New Jersey. But a new report confirms what we here already know: Houston is, indeed, the most diverse city in the country.

The new ranking comes courtesy of personal finance website WalletHub, which, in 2018, placed Houston in a dubious second place. "Yes, Jersey City may be listed as more ethnically diverse," Dr. Stephen Klineberg, noted local demographic expert, told CultureMap last year. "But it's much smaller." (Some consolation: Last year's WalletHub report found Houston was the most diverse big city in America.)

To crown the diversity champion, WalletHub compared 501 of the most populated cities in America across five key dimensions: socioeconomic diversity, cultural diversity, economic diversity, household diversity, and religious diversity. The report drills down into metrics such as industry diversity, income, age, religious affiliation, education, language, worker class, and marital status.

While not standing out in any one category, Houston toppled Jersey City by achieving an overall diversity score of 71.6; Jersey City scored a 71.52. Houston scored best in industry diversity (No. 16) and racial and ethnic diversity (No. 33), while scoring lowest in marital status diversity (No. 226).

Elsewhere in Texas, Dallas comes in at No. 5 overall, with an overall ranking of 71.12. Arlington follows at No. 9, with an overall ranking of 70.87. Fort Worth comes in at No. 25, with an overall score of 69.88. Further down the list is Austin at No. 42, with an overall score of 69.2. Plano comes in at No. 57, with an overall score of 68.55, while San Antonio follows at No. 62 with an overall score of 68.42.

The least diverse city in America? The scenery apparently doesn't change much in Provo, Utah, which comes in last on WalletHub's list.

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This article originally ran on CultureMap.



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6 female-founded startups shaping the Houston innovation ecosystem

meet the finalists

Female-founded businesses reached a new milestone last year. According to payroll company Gusto, female founders launched 49 percent of new businesses in 2024, reaching near parity with male-founded businesses for the first time.

And though they still face challenges, with access to VC funding at the top of the list, those women-led companies are driving major impact in the startup and innovation ecosystem.

The fifth-annual Houston Innovation Awards will honor six women-led startups that are shaping Houston innovation in our Female-founded Businesses category.

The finalists for the 2025 award, selected by our esteemed panel of judges, range from a company developing natural carbon-free fuel to another launching at-home sleep apnea technology.

Read more about these innovative startups and the visionary female founders behind them below. Then join us at the Houston Innovation Awards on Nov. 13 at Greentown Labs, when the winner will be unveiled at our live awards ceremony.

Tickets are now on sale for this exclusive event celebrating all things Houston innovation.

Anning Corporation

Clean energy company Anning Corporation is working to develop geologic hydrogen, a natural carbon-free fuel, using its proprietary stimulation approaches and advanced exploration modeling. The company said that geologic hydrogen has the potential to be the lowest-cost source of reliable baseload electricity in the U.S.

The company was founded by CEO Sophie Broun in 2024 and is a member of Greentown Labs. Last month, it also announced that it was chosen to participate in Breakthrough Energy’s prestigious Fellows Program. Anning raised a pre-seed round this year and is currently raising a $6 million seed round.

Bairitone Health

Bairitone Health is bringing anatomy imaging for sleep apnea to the home environment. The company's platform maps users' anatomy during natural sleep using a facial patch to determine the root cause of airway obstruction. It then offers effective therapies for each patient. The system is currently in the research and development phase and is being used in clinical trials and studies.

The company was founded in 2022 in the Texas Medical Center's Biodesign program by CEO Meagan Pitcher, CTO Onur Kilic and chief medical officer Britt Cross. It was a member of Activate Houston's inaugural cohort and has participated in numerous accelerators and incubators. It raised a pre-seed round last year of $435,000.

Brain Haven

Founded at the University of Houston, Brain Haven is developing neuroscience-based, clinically validated protocols that use sensory stimulation through smell and sound to offer a natural and non-invasive way to activate the brain and preserve neuroplasticity. The company aims to deliver an accessible and affordable way for the aging population to preserve memory, delay cognitive decline and improve quality of life.

The company was co-founded by Gail Aflalo, a graduate student in the University of Houston College of Optometry, and Jokūbas Žiburkus, an associate professor in the department of biology and biochemistry at UH. It was selected to participate in the 2024 Innov8 Cohort, where it won the cohort's Startup Pitch Day, and was included in Class 13 of UH RED Labs. Brain Haven was awarded $70,000 in seed funding from UH in June 2025 to support a year-long research initiative in adults aged 50 and above.

FlowCare

Sugar Land-based FlowCare is developing a period health platform that integrates smart dispensers, education and healthcare into one system to make free, high-quality organic period products more accessible.

The company was founded by CEO Tanu Jain, a registered nurse and product management executive, in 2024. It participated in the TiE Women Program and the Houston Community College Business Plan Competition, placing in the top five in both pitch competitions.

March Biosciences

Houston cell therapy company March Biosciences aims to treat unaddressed challenging cancers, with its MB-105, a CD5-targeted CAR-T cell therapy for patients with relapsed or refractory CD5-positive T-cell lymphoma, currently in Phase 2 clinical trials.

The company was founded in 2021 by CEO Sarah Hein, Max Mamonkin and Malcolm Brenner and was born out of the TMC Accelerator for Cancer Therapeutics. The company completed a $29.6 million series A last year and also raised a $4.2 million seed round.

TrialClinIQ

Houston-based TrialClinIQ is an AI-powered clinical trial recruitment platform that helps identify, qualify and enroll eligible patients in appropriate trials faster and more accurately.

The company was founded in 2025 by CEO Jontel Pierce and Janette Obi.

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The Houston Innovation Awards program is sponsored by Houston Community College, Houston Powder Coaters, FLIGHT by Yuengling, and more to be announced soon. For sponsorship opportunities, please contact sales@innovationmap.com.

Former NASA astronaut, official joins Venus Aerospace board

astronaut appointment

Retired Air Force colonel and former NASA astronaut Pamela Melroy, who previously served as deputy administrator of NASA, recently joined the board of directors at Houston-based Venus Aerospace.

Venus Aerospace, a startup founded in 2020, develops rocket engine technology, including rotating rocket detonation engines for hypersonic flights. These engines promise higher power, greater fuel efficiency and lower emissions than conventional rocket engines or jet engines, according to the Interesting Engineering website. The global rocket propulsion market is expected to grow from $9.5 billion in 2025 to $29.9 billion by 2034, according to a forecast by ResearchAndMarkets.com.

“Advanced rocket propulsion has been of interest to me for over a decade, and Venus Aerospace’s recent achievements in demonstrating the stability of rotating detonation rocket engines represent a significant development,” says Melroy, who left NASA earlier this year and is now a self-employed consultant living in Arlington, Virginia.

Melroy, a member of the United States Astronaut Hall of Fame, has built an illustrious career in the aerospace sector. Aside from being a NASA official, she was:

  • One of only two female astronauts to command a space shuttle mission
  • Deputy program manager of Orion space exploration initiatives at aerospace and defense contractor Lockheed Martin
  • Senior technical adviser and director of field operations for the Federal Aviation Administration’s Office of Commercial Space Transportation, where she came up with the first safety guidelines for commercial human spaceflight
  • Deputy director of the Tactical Technology Office at the Defense Advanced Research Projects Agency (DARPA).
  • An adviser for the establishment of the Australian Space Agency

Venus Aerospace said in a news release that as a leader at three federal agencies, “Melroy shaped America’s strategy in space, accelerated commercial space partnerships, and deepened space exploration.”

Sassie Duggleby, co-founder and CEO of Venus Aerospace, called Melroy “a preeminent leader in the world of aerospace.”

In May, Venus Aerospace completed the inaugural test flight of its rotating detonation rocket engine. The startup, whose headquarters is at the Houston Spaceport, says it’s the only company in the world that has manufactured a flight-proven, high-thrust rotating detonation rocket engine.

On the horizon for Venus Aerospace is production of Stargazer M4, a high-speed aircraft capable of two-hour global travel.

Venus Aerospace’s investors include Airbus Ventures, America’s Frontier Fund, Trousdale Ventures, and Prime Movers Lab. The startup also gets support from the Air Force Research Laboratory (AFWERX), the Air Force, NASA and DARPA.

Jordan Blashek, co-founder and managing partner of America’s Frontier Fund, which backs startups creating breakthrough technologies, said his firm’s investment in Venus Aerospace “underscores our focus on supporting American companies that are revolutionizing industries of the future.”

“With recent hypersonic advancements from China and Russia, safeguarding American innovation and securing our industrial base has never been more urgent,” Blashek added. “Venus Aerospace is poised to redefine hypersonic flight and ensure America’s continued leadership in aerospace innovation.”

Since its founding, Venus Aerospace has raised $78.3 million in investments, according to PitchBook data.

Texas-based energy startup raises $1 billion on heels of Houston expansion

Powering Up

Austin-based startup Base Power, which offers battery-supported energy in the Houston area and other regions, has raised $1 billion in series C funding—making it one of the largest venture capital deals this year in the U.S.

VC firm Addition led the $1 billion round. All of Base Power’s existing major investors also participated, including Trust Ventures, Valor Equity Partners, Thrive Capital, Lightspeed Venture Partners, Andreessen Horowitz (a16z), Altimeter, StepStone Group, 137 Ventures, Terrain, Waybury Capital, and entrepreneur Elad Gil. New investors include Ribbit Capital, Google-backed CapitalG, Spark Capital, Bond, Lowercarbon Capital, Avenir Growth Capital, Glade Brook Capital Partners, Positive Sum and 1789 Capital Management.

Coupled with the new $1 billion round, Base Power has hauled in more than $1.27 billion in funding since it was founded in 2023.

Base Power supplies power to homeowners and the electric grid through a distributed storage network.

“The chance to reinvent our power system comes once in a generation,” Zach Dell, co-founder and CEO of Base Power, said in a news release. “The challenge ahead requires the best engineers and operators to solve it, and we’re scaling the team to make our abundant energy future a reality.”

Zach Dell is the son of Austin billionaire and Houston native Michael Dell, chairman and CEO of Round Rock-based Dell Technologies.

In less than two years, Base Power has developed more than 100 megawatt-hours of battery-enabled storage capacity. One megawatt-hour represents one hour of energy use at a rate of one million watts.

Base Power recently expanded its service to the city of Houston. It already was delivering energy to several other communities in the Houston area. To serve the Houston region, the startup has opened an office in Katy.

The startup also serves the Dallas-Fort Worth and Austin markets. At some point, Base Power plans to launch a nationwide expansion.

To meet current and future demand, Base Power is building its first energy storage and power electronics factory at the former downtown Austin site of the Austin American-Statesman’s printing presses.

“We’re building domestic manufacturing capacity for fixing the grid,” Justin Lopas, co-founder and chief operating officer of Base Power, added in the release. “The only way to add capacity to the grid is [by] physically deploying hardware, and we need to make that here in the U.S. ... This factory in Austin is our first, and we’re already planning for our second.”

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This article originally appeared on EnergyCapitalHTX.com.

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