Annual report highlights Houston's big innovation wins across tech, life science, space, VC funding, and more

by the numbers

The Greater Houston Partnership's annual Houston Facts report recently released. Here's what to know across the city's five most innovative sectors. Photo via Getty Images

Houston, a city known for its energy legacy, is rapidly transforming into a diverse hub of innovation, life science, technology, and aerospace, according to the 2023 Houston Facts report, released by the Greater Houston Partnership.

Here are some highlights from the report.

​The thriving tech ecosystem

Chart via 2023 Houston Facts

With over 230,800 tech workers representing 6.9 percent of the workforce, Houston has firmly established itself as a digital tech talent hub, per the report, which adds that the city is home to a staggering 9,100 tech-related firms, including more than 1,000 venture-backed startups. These startups have secured $6.42 billion in venture capital funding over the past five years, with $1.95 billion in funding in 2022 alone, according to GHP analysis of Pitchbook data.

Houston's technology landscape witnessed significant growth in 2022, with the most heavily invested industries being Energy, Information Technology, and Business Products and Services. A study by Dice revealed that Houston led all cities in tech job posting growth in 2022, boasting a remarkable 45.6 percent year-over-year increase.

Among Houston's largest employers are tech giants such as Asurion, AWS, Dell, HighRadius, HP Enterprise, HP Inc., IBM, PROS, BMC Software, Siemens, Honeywell, Oracle, and Microsoft.

Health startups and biotech advancements

Houston's health tech and life science innovation sector will continue to grow with Helix Park. Courtesy of Elkus Manfredi Architects

Houston's life science and biotech sector is continuing to develop, the GHP finds, with a vast pool of medical professionals, including over 161,800 healthcare practitioners and technical workers, as well as 15,400 life science and biotech researchers.

In 2022, several health startups received significant venture capital funding, showcasing Houston's commitment to advancing medical technologies. The largest deals were from: NuProbe, RadioMedix, Medical Informatics, XCath, Stream Biomedical, Decisio, Adient Medical, Coya Therapeutics, Octagos Health, and Luna Genetics. Collectively, these startups raised over $220 million in funding to develop innovative solutions in diagnostics, monitoring, therapeutics, and more.

The Texas Medical Center Innovation Factory serves as the nucleus of Houston's life science startup activity. With the TMC's Helix Park continuing to rise as an expanded campus, even more activity is on its way to Houston.

Growing innovation infrastructure

Houston's innovation corridor continues to develop. Map via 2023 Houston Facts

When it comes to the development of Houston's innovation ecosystem, the report called out a few milestones the region reached in 2022. Here are some of those wins from last year.

  • The Houston area grew to include more than 80 SDOs, including incubators and accelerators, makerspaces, coworking spaces, nonprofits, and academic institutions. Per the report, there are at least 30 incubator and accelerator programs currently running in Houston — including MassChallenge, Ion Smart Cities Accelerator, Gener8tor, JLABS, Greentown Labs, TMC Innovation and more.
  • The Houston Innovation corridor, which consists of a a four-mile expanse across the city’s urban core and is anchored by Rice University's Ion, continues to take shape.
  • Both Rice University and University of Houston held onto the top spots on The Princeton Review's report on top entrepreneurship programs. And, the annual Rice Business Plan Competition remains the richest pitch competition in the country, according to the Princeton Review, doling out nearly $2.0 million in prizes.

Aerospace advancement

Axiom Space — as well as a few other Houston space tech companies — had some big wins in 2022. Photo courtesy of NASA

Anchored by NASA's Johnson Space Center and the Houston Spaceport, the city's aerospace industry continues to play a major role in the future of space exploration and commercialization.

The Orion, Gateway, and Human Landing System programs, which are part of NASA's Artemis missions, are headquartered at JSC.

Three Houston space tech companies made major moves recently, as Houston Facts calls out:

  • Axiom Space broke ground on the first phase of a 22-acre campus that will house astronaut training and develop Axiom Station, a commercial module that will attach to the ISS.
  • Intuitive Machines, which went public last year, started construction on a 12.5-acre campus. "Intuitive will build lunar landers, operate its mission control center, and make guidance, navigation, and make guidance, navigation, and control products at its site," per Houston Facts.
  • Collins Aerospace, which has a significant presence in Houston, began operations at their eight-acre campus where it will develop systems for NASA’s human spaceflight programs. The company is working with Axiom Space to create the next generation of NASA spacesuits via a NASA contract that is valued at up to $3.5 billion.

Tracking the energy transition

Chart via 2023 Houston Facts

The report highlights the fact that last year Houston's energy transition brought in $6.1 billion in financing from private market investments, which represents a 61.9 percent increase compared to 2021.

"Over the last five years, Houston has seen constant growth in annual energy transition investments, with a notable surge observed from 2020 onwards," reads the report.

Corporate and strategic merger and acquisition investments are what dominated the five deal types, according to the report, representing 68.8 percent of the total investment in 2022. Additionally, private equity accounted for 19.3 percent of all deals, with venture capital comprising 9.5 percent.

EnergyCapital, a sister site to InnovationMap, covered the complete section on the energy industry in the Houston Facts in an article. Read it here.

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This article was generated in part by artificial intelligence.

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"Houston is a thriving hub of digital tech talent." Photo via Getty Images

Report: Venture capital funding, tech jobs up in Houston

by the numbers

In just a five-year span, Houston's annual haul of venture capital has skyrocketed by nearly 200 percent.

Startups in the region raised $283.8 million in 2016, according to Pitchbook data cited in the Greater Houston Partnership's newly released 2021 Houston Facts report. Last year, the figure climbed to a record-breaking $823.9 million. That represents a five-year jump of 190.3 percent.

Health care attracted by far the most venture capital of any sector last year — $323.9 million — with the IT sector in second place ($203.7 million), the report says.

Over the five-year span, the health care sector also reigns as the area's VC leader, with a total of more than $1.1 billion in venture capital, making up 41 percent of the region's venture capital. IT ranks second, collecting $722.7 million in venture capital, or 27 percent of the entire VC pie.

In all, the Houston area is home to over 700 VC-backed startups, with at least 10 of them valued at more than $100 million, the report says.

The Houston Facts report also sheds light on other facets of the regional economy. Here are six of them.

Tech workforce

Economically speaking, Houston may be best known for energy and health care. But the Greater Houston Partnership report shows the tech sector deserves to be part of the conversation.

With more than 243,900 tech workers, the Houston area boasts the 11th largest tech workforce in the U.S. In 2019, Houston's tech industry contributed $29.2 billion to the region's gross domestic product (GDP), a key measure of economic activity.

To put the size of the region's tech workforce into perspective, the number of tech workers in the Houston area is roughly double the population of Pearland.

"Houston is a thriving hub of digital tech talent," the report says.

Economic power

Citing data from the U.S. Bureau of Economic Analysis, the report notes the Houston area's GDP stood at an estimated $512.2 billion in 2019. That makes Houston the seventh largest economy of U.S. metro areas.

If the Houston area were a state, its GDP would rank 15th, behind Michigan ($536.9 billion) and ahead of Maryland ($426.7 billion) and Colorado ($393 billion).

If the region were an independent nation, it would rank as the world's 27th largest economy, behind Belgium ($529.7 billion) and ahead of Nigeria ($448.1 billion) and Austria ($446.3 billion).

Expanding corporate hub

The Houston area ranks third in the U.S. for the Fortune 500 headquarters and fifth for Fortune 1000 headquarters. The 20 companies on the Forbes Global 2000 list that are based in the Houston area have combined revenue of $413.6 billion.

International reach

The Houston areas maintains trading relationships with more than 200 countries.

The Houston/Galveston Customs District handled 266.6 million metric tons of exports valued at $129.5 billion in 2020, according to WISERTrade data cited in the report. These exports accounted for 65.8 percent of the total value that passed through the region last year, up from 44.5 percent in 2011.

Top port

In 2019, the Port of Houston ranked first in total tonnage (foreign and domestic) — after 27 consecutive years in second place — and first in foreign tonnage (imports and exports) for the 24th consecutive year, according to the most recent data from the U.S. Army Corps of Engineers. Globally, the Port of Houston ranked as the world's 16th largest port based on total tonnage.

Business presence

The Houston area was home to more than 160,000 business establishments in 2020, according to Texas Workforce Commission data cited in the report. The three industries with the most establishments were professional, scientific, and technical services; health care and social assistance; and retail. These three industries made up 38 percent of the region's business establishments.


The Greater Houston Partnership has released its 2020 Houston Facts — here's what you need to know. Getty Images

5 innovation-focused takeaways from the Greater Houston Partnership's annual report

BY THE NUMBERS

In an annual economic report from the Greater Houston Partnership, researchers and data scientists outlined the city's economy by the numbers, and Houston's industries such as technology, health care, energy, and more were all represented.

The 2020 Houston Facts was released in an virtual event hosted by GHP and its team of data specialists. Here's what you need to know from the event and the report, which can be found online.

The Texas Medical Center is focusing on five new institutes

Screenshot via Houston Facts 2020

The Texas Medical Center has established itself as a topic of its own in the Houston Facts report. The 61-member nonprofit that connects medical institutions across the city. The organization is working on a new campus, TMC3, that is expected to complete in 2022 and bring an annual economic impact of $5.2 billion to the state of Texas along with 30,000 jobs. From

According to the report, TMC is continuing to develop five institutes that compliment the organization's focus on innovation, regenerative medicine, health policy, and more:

  1. TMC Innovation Institute
  2. TMC Health Policy Institute
  3. TMC Clinical Research Institute
  4. TMC Regenerative Medicine Institute
  5. TMC Genomics Institute

Houston's port business continues to stay strong, with potential for growth following expansion

Screenshot via Houston Facts 2020

The Port of Houston has long been a key part of Houston's history and its economic impact. Across four seaports in the Houston area, the city moved 242.9 million metric tons of trade last year, and the district has been consistently named the busiest or one of the busiest by tonnage for over a decade.

With over 200 companies calling the port home and a busy port district, the Houston Ship Channel has been working on an expansion project, called Project 11. Construction on the project could begin as early as next year, per the report.

Venture capital is on the rise as tech jobs stays steady

Screenshot via Houston Facts 2020

Again, Houston Facts has called out the growth Houston has seen in venture capital investment. According to the report, top industries for VC funding include health tech, software, and energy. Houston Facts reports the ecosystem saw $600 million invested last year. While numbers vary based on sources, Houston Exponential recently reported over $466 million of venture capital invested in Houston between January and July of 2020.

Meanwhile, when it comes to tech jobs in Houston, the city has held its place as 12th in the nation for cities with the most tech jobs. Last year, Houston had 235,802 tech workers according to data from CompTIA, Cyberstates 2020. That count is slightly increased from 2018's 223,000 tech workers in Houston.

Houston's evolving demographics continues to shape the city

Screenshot via Houston Facts 2020

Houston is regularly touted as the most diverse city in the nation, and that diversity has affected the city's business sector. As of last year, largest ethnic population in Houston is hispanic. Houston now has the fourth largest hispanic population in the country, however, according to the report, Houston's percent of African-American citizens has remained consistent.

COVID-19's full effect on Houston is still to be determined, but business has taken a hit

Getty Images

The 2020 edition of Houston Facts doesn't have much on the impact of COVID-19 — the 2021 issue should have more facts and figures from looking back on the pandemic. However, the GHP's team did address some of the economic impacts the coronavirus had on the city.

According to Yelp data based on listings, 3,518 businesses closed due to COVID-19 — of which, only 578 had reopened by mid-June.

The Greater Houston Partnership has the facts. Nick Bee/Pexels

4 things you need to know from the Greater Houston Partnership's annual report as it pertains to innovation

By the numbers

Every year, the Greater Houston Partnership — the city's economic development arm — gathers up data and reports to paint a full picture of the Bayou City. In the past few editions, innovation has been a key component.

The GHP's innovation coverage spans three pages under the top industry and sectors category. From tech startup growth to money raised, here's what you need to know from the 2019 Houston Facts.

Houston has the 12th largest tech sector in the United States

Christina Morillo/Pexels

The innovation section starts pretty strong with this fun fact. The No. 12 tech sector ranking comes from Computing Technology Industry Association, which cites that Houston has more than 223,000 tech workers. According to the report, about two-thirds of Houston's tech workers are in industries outside of computer and software.

GHP credits Houston's large population of tech workers to its connection to aerospace and oil and gas.

"As the home of NASA's Johnson Space Center and headquarters to the global energy industry, Houston has long been a global hub of engineering talent," the report reads. "In recent years, those skills have given rise to a thriving ecosystem of digital technology companies."

GHP's data reflect that Houston has more than 8,200 tech-related firms, which includes over 500 tech startups.

Venture funding was up over 50 percent between 2017 and 2018

Via Houston Facts


Houston's recorded venture funding doesn't have a hockey stick chart to brag about. Over the past few years, venture funding has been up and down, according to S&P Capital IQ.

"Houston companies in clean energy, health innovation and digital technology have received $3.1 billion in venture capital and growth funding across 333 deals since 2014, averaging $576 million every year," the report reads.

But between 2018 and 2017, VC funds were up 50.9 percent. Of the three categories, clean energy technology pulled in the most money each year and was responsible for 64 percent of the funding during the 2014-2018 period. Sunnova, a residential solar company, had the most money raised during this time with $1.3 billion.

The largest deals reported in Houston in 2018 were:

  • Sunnova Energy — $183 million
  • OncoResponse — $40 million
  • Trisun Energy Services — $39 million
  • Arundo Analytics — $25 million
  • Procyrion — $16 million
  • QuVa Pharma — $15 million
  • NeoSensory — $12 million

University-backed entrepreneurship remains strong

Courtesy of Rice University

The Princeton Review ranks Rice University and the University of Houston as having among the best entrepreneurship programs in the country. Rice runs its Rice Alliance for Technology and Entrepreneurship out of its Jones Graduate School of Business, while University of Houston's Cyvia and Melvyn Wolff Center for Entrepreneurship is housed in the Bauer College of Business.

Both schools have run accelerator programs for seven years — the past six of which have been in collaboration. Rice's OwlSpark and UH's RED Labs finished this summer's program on August 1 at the Bayou Startup Showcase with 16 startup pitches.

Meanwhile, the Rice Business Plan Competition is deemed the "richest pitch competition" in the country. In 2019, the competition saw $3 million invested. RBPC companies have gone on to raise $1.2 billion in capital during the competition's 18-year history.

At UH, which has its own set of pitch events, the Wolff Center's graduate students manage a million-dollar Cougar Venture Fund. The fund has a group of experts that analyze and invest in early stage technology companies.

The life science industry continues to grow

Via Houston Facts

In 2018, Houston housed 20.5 percent of the country's clinical trials, with over 1,800 active. The city has more than 1,760 life sciences companies and over 25,100 biotech experts and 7,200 medical researchers.

Thankfully, the money seems to match this volume of activity. Last year, Houston's medical research grant funding from the National Institutes of Health, which totaled $668 million in 2018, was up almost 7 percent from 2017. The city's medical institutions have received nearly $3 billion from NIH since 2014 — an average of $600 million a year.

According to the GHP, the top Houston institutions receiving NIH funding in 2018 were:

  • Baylor College of Medicine — $255 million
  • University of Texas MD Anderson Cancer Center — $149 million
  • University of Texas Health Science Center — $90 million
  • University of Texas Medical Branch Galveston — $87 million
  • University of Houston — $24 million
  • Methodist Hospital Research Institute — $19 million
  • Rice University — $14 million
  • Texas Southern University — $3 million

As mentioned before, venture capital and private equity investment has increased in Houston, and that trend is also represented in the life science sector. In 2018, life science startups raked in $119 million, which represents a a 41.7 percent increase from $84 million in 201717, according to S&P Capital IQ.

In 2018, the top biotech firms receiving investment were:

  • OncoResponse — $40 million
  • Procyrion — $16 million
  • QuVa Pharma — $15 million
  • Pulmotect — $10 million
  • Tvardi Therapeutics — $9 million

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27 Houston companies make Fortune 500 for 2026, led by energy giants

Houston HQs

Houston is a giant among U.S. hubs for corporate headquarters.

The 2026 Fortune 500 lists 27 companies based in the Houston area, with many energy companies claiming top spots. Houston ties with Chicago for the second-most Fortune 500 headquarters, preceded only by New York City (53). Dallas-Fort Worth is home to 23 Fortune 500 headquarters.

Texas leads the nation for Fortune 500 headquarters (57), with California in the No. 2 spot and New York at No. 3.

“Texas is the undisputed headquarters of headquarters,” Gov. Greg Abbott said in a news release. “The world’s leading businesses invest with confidence in Texas because of our welcoming business climate, predictable regulatory environment, and skilled and growing workforce. People and businesses are choosing Texas because Texas works.”

The 2026 Fortune 500 ranks the largest U.S. corporations based on revenue in fiscal year 2025.

Here’s a rundown of the 27 Fortune 500 companies based in the Houston area.

  • No. 9 ExxonMobil
  • No. 21 Chevron
  • No. 29 Phillips 66
  • No.55 Sysco
  • No. 75 ConocoPhillips
  • No. 89 Enterprise Products Partners
  • No. 103 Plains GP Holdings
  • No. 133 Hewlett Packard Enterprise
  • No. 149 NRG Energy
  • No. 157 Quanta Services
  • No. 164 Baker Hughes
  • No. 173 Occidental Petroleum
  • No. 179 Waste Management
  • No. 201 EOG Resources
  • No. 204 Group 1 Automotive
  • No. 207 Halliburton
  • No. 223 Cheniere Energy
  • No. 236 Corebridge Financial
  • No. 262 Targa Resources
  • No. 266 Kinder Morgan
  • No. 388 Westlake
  • No. 435 CenterPoint Energy
  • No. 438 APA
  • No. 440 Comfort Systems USA
  • No. 455 NOV
  • No. 488 KBR
  • No. 496 Coterra Energy. Oklahoma City, Oklahoma-based Devon Energy and Houston-based Coterra Energy merged in early May, with the combined company retaining the Devon Energy name and the Houston headquarters.

The Greater Houston Partnership notes the Houston area soon will welcome its 28th Fortune 500 company. Expand Energy (formerly Chesapeake Energy), appearing at No. 362 on the 2026 list, says it’s moving its headquarters from Oklahoma City to Spring this year.

As the natural gas producer prepares to relocate to Texas, it’s hunting for a new leader. Nick Dell’Osso stepped down as president and CEO earlier this year. Board Chairman Michael Wichterich is interim president and CEO.

Dell’Osso became president and CEO of Oklahoma City-based Gulfport Energy effective May 28.

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This article first appeared on EnergyCapitalHTX.com.

Elon Musk's SpaceX is about to make its debut on Wall Street

Money Moves

Elon Musk's rocket company SpaceX will make its debut on Wall Street Friday, June 12, and both institutional and retail investors are expected to gobble up the 555.6 million shares going up for sale at $135 apiece. Musk, already the world's richest man, could become its first trillionaire.

SpaceX is likely to become the biggest IPO ever, with proceeds of around $75 billion. SpaceX hopes to become the first company to send people to Mars. In fact, part of Musk’s future compensation depends on SpaceX eventually establishing a colony of at least 1 million people on the red planet.

Why SpaceX is going public now

In a video conference on Musk's social media platform X, he told JPMorgan CEO Jamie Dimon that people have suggested for the last 10 years that he take SpaceX public. He's doing it now because the company plans to put 100,000 next-generation Starlink satellites into orbit. Deploying AI data centers in space is a “massive new growth base and you need capital for that,” he said.

Going public provides access to the capital that SpaceX needs. But it also exposes it to more scrutiny from shareholders and more regulatory oversight. That includes filing quarterly financial reports, which critics say incentivizes short-term thinking over longer-term planning and creates unnecessary costs for a company. Securities regulators are currently soliciting public comment on a proposal to require public companies to file the financial reports only twice every year.

How the IPO impacts the company

Musk will hold the majority of a special class of shares, giving him control over decisions related to company strategy, finances and personnel. On the latter, because of his ownership of most of these Class B shares, the only person who can fire Musk as CEO is Musk.

The company credits Musk with being the “driving force” behind its growth, innovation and success. But what happens if Musk is no longer in the picture? SpaceX warns that the loss of Musk could disrupt its ability to execute its strategy as well as hurt its “reputation and relationships with customers, partners and other stakeholders.”

The company also warns that finding a replacement with the same skills and experience as Musk would be time-consuming, if not nearly impossible. As Wedbush Securities analyst Dan Ives wrote Wednesday, “At the end of the day Musk is SpaceX and SpaceX is Musk.”

What could make or break SpaceX

Currently in the test phase, the gigantic reusable Starship rocket is key to SpaceX realizing Musk's ambitions. Much of the commercial space business hinges on SpaceX developing Starship’s capability to be fully reusable and hearty enough for a quick turnaround between flights. If that doesn't happen, SpaceX warns that putting data centers and satellites in space will take longer and cost more money, meaning it risks customers bailing on the company.

Analysts say that by pioneering reusable rockets, SpaceX has established a clear lead on competitors such as Blue Origin, led by Amazon founder Jeff Bezos. The Starlink satellite business competes with, among others, AST SpaceMobile – which is relying on a SpaceX rocket to send its latest generation of satellites into orbit next week.

The prospectus filed last week says SpaceX’s biggest potential market is the sale of business-oriented artificial intelligence products designed to transform how people get work done. It’s an opportunity SpaceX predicts would be worth $22.7 trillion if it could somehow dominate rivals like Anthropic, OpenAI and Microsoft in a highly competitive industry. But the prospectus shows no clear path to profitability for the xAI business, which merged with SpaceX earlier this year.

Why Wall Street is paying attention

If the SpaceX IPO is as successful, the stock could quickly join the Nasdaq 100, a widely followed index that tracks the 100 largest non-financial companies in the composite. That's important because some popular funds, such as the $460 billion QQQ exchange-traded fund, mimic the index and will automatically buy whatever is listed in the index.

Nasdaq recently changed its rules to allow select companies to enter the Nasdaq 100 after just 15 trading days.

S&P Dow Jones Indices, on the other hand, is sticking to established and more traditional thresholds that will not allow SpaceX or other companies with gargantuan IPOs faster entry into its S&P 500 index. That means even high-profile companies will still need to wait for their stocks to trade a full 12 months before they can enter the index.

Companies want to be in the S&P 500 in particular because it's arguably the most important index on Wall Street, with trillions of dollars either mimicking it exactly or benchmarked against it. Vanguard's VOO fund that tracks the S&P 500 has roughly $950 billion invested in it, for example.

NASA unveils Artemis III astronauts at Johnson Space Center in Houston

To the moon

NASA on Tuesday, June 9, revealed the crew for its Artemis III mission, the next step in the space agency's plan to eventually land astronauts on the moon.

The announcement came two months after Artemis II's record-breaking trip around the moon that surpassed the distance record of Apollo 13.

NASA's Randy Bresnik, Frank Rubio, Andre Douglas and the European Space Agency's Luca Parmitano won't fly to the moon or land on the surface. Instead, they’ll orbit Earth while practicing docking their Orion capsule with two lunar landers.

“To the Artemis III crew, we wish you Godspeed on the journey ahead,” said NASA administrator Jared Isaacman.

Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin are racing to deliver the lunar landers. The two-week demo is targeted for 2027. Blue Origin suffered a recent setback when its massive rocket exploded during an engine-firing test on the launch pad in Florida, shaking nearby homes and illuminating the sky with an orange fireball.

NASA's Jeremy Parsons said the setback is a learning opportunity and that the space agency is confident Blue Origin's rocket will be ready in time.

NASA's Artemis program aims to return astronauts to the moon's surface for the first time since the 1970s. A recent revamp of the program announced by Isaacman aims to fast-track it similarly to the Apollo era, adding the upcoming spaceflight around Earth before eyeing a lunar landing in 2028.

“We are certainly humbled as a crew to be able to be your crew that executes this Artemis III mission in space,” said Bresnik, Artemis III commander.

Added Douglas, mission specialist: “My brain — it is going a mile a minute right now. But my heart, it is so warm. It is so full."

In May, NASA awarded hundreds of millions of dollars in contracts to four companies, including Blue Origin, to build landers, rovers and drones for a future moon base. Isaacman said the goal of the moon base is to lay the foundation for a Mars expedition.

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