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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UH receives $2.6M gift to support opioid addiction research and treatment

drug research

The estate of Dr. William A. Gibson has granted the University of Houston a $2.6 million gift to support and expand its opioid addiction research, including the development of a fentanyl vaccine that could block the drug's ability to enter the brain.

The gift builds upon a previous donation from the Gibson estate that honored the scientist’s late son Michael, who died from drug addiction in 2019. The original donation established the Michael C. Gibson Addiction Research Program in UH's department of psychology. The latest donation will establish the Michael Conner Gibson Endowed Professorship in Psychology and the Michael Conner Gibson Research Endowment in the College of Liberal Arts and Social Sciences.

“This incredibly generous gift will accelerate UH’s addiction research program and advance new approaches to treatment,” Daniel O’Connor, dean of the College of Liberal Arts and Social Sciences, said in a news release.

The Michael C. Gibson Addiction Research Program is led by UH professor of psychology Therese Kosten and Colin Haile, a founding member of the UH Drug Discovery Institute. Currently, the program produces high-profile drug research, including the fentanyl vaccine.

According to UH, the vaccine can eliminate the drug’s “high” and could have major implications for the nation’s opioid epidemic, as research reveals Opioid Use Disorder (OUD) is treatable.

The endowed professorship is combined with a one-to-one match from the Aspire Fund Challenge, a $50 million grant program established in 2019 by an anonymous donor. UH says the program has helped the university increase its number of endowed chairs and professorships, including this new position in the department of psychology.

“Our future discoveries will forever honor the memory of Michael Conner Gibson and the Gibson family,” O’Connor added in the release. “And I expect that the work supported by these endowments will eventually save many thousands of lives.”

CenterPoint and partners launch AI initiative to stabilize the power grid

AI infrastructure

Houston-based utility company CenterPoint Energy is one of the founding partners of a new AI infrastructure initiative called Chain Reaction.

Software companies NVIDIA and Palantir have joined CenterPoint in forming Chain Reaction, which is aimed at speeding up AI buildouts for energy producers and distributors, data centers and infrastructure builders. Among the initiative’s goals are to stabilize and expand the power grid to meet growing demand from data centers, and to design and develop large data centers that can support AI activity.

“The energy infrastructure buildout is the industrial challenge of our generation,” Tristan Gruska, Palantir’s head of energy and infrastructure, says in a news release. “But the software that the sector relies on was not built for this moment. We have spent years quietly deploying systems that keep power plants running and grids reliable. Chain Reaction is the result of building from the ground up for the demands of AI.”

CenterPoint serves about 7 million customers in Texas, Indiana, Minnesota and Ohio. After Hurricane Beryl struck Houston in July 2024, CenterPoint committed to building a resilient power grid for the region and chose Palantir as its “software backbone.”

“Never before have technology and energy been so intertwined in determining the future course of American innovation, commercial growth, and economic security,” Jason Wells, chairman, president and CEO of CenterPoint, added in the release.

In November, the utility company got the go-ahead from the Public Utility Commission of Texas for a $2.9 billion upgrade of its Houston-area power grid. CenterPoint serves 2.9 million customers in a 12-county territory anchored by Houston.

A month earlier, CenterPoint launched a $65 billion, 10-year capital improvement plan to support rising demand for power across all of its service territories.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

Houston researchers develop material to boost AI speed and cut energy use

ai research

A team of researchers at the University of Houston has developed an innovative thin-film material that they believe will make AI devices faster and more energy efficient.

AI data centers consume massive amounts of electricity and use large cooling systems to operate, adding a strain on overall energy consumption.

“AI has made our energy needs explode,” Alamgir Karim, Dow Chair and Welch Foundation Professor at the William A. Brookshire Department of Chemical and Biomolecular Engineering at UH, explained in a news release. “Many AI data centers employ vast cooling systems that consume large amounts of electricity to keep the thousands of servers with integrated circuit chips running optimally at low temperatures to maintain high data processing speed, have shorter response time and extend chip lifetime.”

In a report recently published in ACS Nano, Karim and a team of researchers introduced a specialized two-dimensional thin film dielectric, or electric insulator. The film, which does not store electricity, could be used to replace traditional, heat-generating components in integrated circuit chips, which are essential hardware powering AI.

The thinner film material aims to reduce the significant energy cost and heat produced by the high-performance computing necessary for AI.

Karim and his former doctoral student, Maninderjeet Singh, used Nobel prize-winning organic framework materials to develop the film. Singh, now a postdoctoral researcher at Columbia University, developed the materials during his doctoral training at UH, along with Devin Shaffer, a UH professor of civil engineering, and doctoral student Erin Schroeder.

Their study shows that dielectrics with high permittivity (high-k) store more electrical energy and dissipate more energy as heat than those with low-k materials. Karim focused on low-k materials made from light elements, like carbon, that would allow chips to run cooler and faster.

The team then created new materials with carbon and other light elements, forming covalently bonded sheetlike films with highly porous crystalline structures using a process known as synthetic interfacial polymerization. Then they studied their electronic properties and applications in devices.

According to the report, the film was suitable for high-voltage, high-power devices while maintaining thermal stability at elevated operating temperatures.

“These next-generation materials are expected to boost the performance of AI and conventional electronics devices significantly,” Singh added in the release.

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