Houston's ranking on this global report improved 14 spots between now and last year. Photo via Getty Images

As a startup hub, Houston is movin’ on up.

In a new report from Startup Genome and the Global Entrepreneurship Network, Houston ranks fifth among the world’s top 100 emerging ecosystems for startups. Last year, the groups’ report put Houston at No. 19 in the same category.

Ahead of Houston on the list of the top emerging ecosystems for startups are first-ranked Detroit; second-ranked Hong Kong; third-ranked Dublin, Ireland; and fourth-ranked Minneapolis.

Further bolstering Houston’s status as a rising startup hub, Bayou City ranks third among the top North American challengers to traditional startup anchors like Silicon Valley, Boston, and Seattle. Joining Houston on the challengers’ list are first-ranked Detroit; second-ranked Minneapolis; third-ranked Research Triangle, North Carolina; and fifth-ranked Pittsburgh.

A recent report from Houston Exponential, which was recently acquired by InnovationMap's parent company, emphasizes Houston’s position as the third fastest-growing tech ecosystem in the U.S. for early-stage startups. Houston sits behind Miami (No. 2) and Bridgeport-Stamford-Norwalk, Connecticut (No. 1).

Houston startups at all stages raised $2.34 billion in 2021, setting a record for the region’s annual VC haul, the HX report says. Of that total, early-stage startups collected $618.9 million in 46 deals.

Health and information technology startups dominate the VC landscape in Houston, with each accounting for 30 percent of VC deals in 2021, according to the HX report.

Elsewhere in Texas, Austin ranks 25th among the world’s top 100 ecosystems for startups, while Dallas ties for 31st place, according to the Startup Genome and Global Entrepreneurship Network report. San Antonio is wedged into the 91-to-100 range in the ranking of the world’s top 100 ecosystems.

“The importance and dispersal of tech startups have amplified the influence — for both good and ill — of geopolitics,” the report notes. “Where once the sector was sufficiently small to avoid the kind of pressures experienced by large industries such as energy and travel, those garage-spawned entrepreneurs have grown into a major economic force. Keeping their heads down is no longer an option.”

Houston's density is possibly its biggest challenge when it comes to developing its innovation ecosystem, says a Houston expert. Getty Images

Houston needs to overcome its lack of density to continue to develop as an innovation ecosystem, says expert

Guest column

From the front porch of Houston, Texas, we solve some of humanity's hardest challenges. We're the ones who put humans on the Moon and rovers on Mars, go subsea in search of hydrocarbons, and are discovering a cure for cancer. We solve complex challenges, because of a characteristic seemingly embedded deep within our DNA — we are all explorers of the unknown.

Today, a new challenge is rallying our attention, inspiring us to push the boundaries yet again. And, that's the hard challenge of population density. Houston is fourth in population in the country, and yet 89th in the number of people per unit of area.

Why is this an issue, one might ask? Houston, like many other cities around the world, is racing to become a hub for innovation, a critical catalyst fueling the next generation of growth and economic prosperity. And, density is a key component of innovation — it brings divergent mindsets together to look at challenges from multiple perspectives and creates an environment that brings big bold ideas to life.

However, the nature of our geography has created silos that are not easily broken down and separates us by industries, communities, interests, mindsets, and access to transportation, among other things.

But, let's not underestimate our true spirit — and our ability to explore the unexpected, push the boundaries and tackle the challenges the world throws at us.

If I learned anything from living here my entire life, Houston has grit, imagination, and motivation and knows what it means to be a trailblazer. Houston is the most diverse city in the United States. Our culinary landscape is constantly pushing the boundaries of creativity and imagination. Local graffiti and modern art installations are reshaping the visual identity of our community. Our sports and performing arts "rockstars" consistently deliver real-time experiential immersion.

We need to recognize and embrace how these colors of Houston connect us all regardless of our geographic silos and push innovation forward. Said another way, we have all the colors; we just need to converge and paint the canvas together.

True to our nature, some of our Houstonian friends have begun chipping away at this challenge already. Central Houston is attracting world-renowned incubators and accelerators like MassChallenge and Gener8tor — and this scene alone is ever-expanding. The Cannon, The Ion, Impact Hub, Launchpad, Headquarters, and other players are creating environments that bring people together and meet the needs of an ever-evolving workforce through experiential community. We even have a dedicated publication for all things innovation — Innovation Map — sharing resources across our vast city and ensuring no great story is left untold.

Our rich diversity means we have access to human beings from a multitude of backgrounds, which in itself is a force to be reckoned with. By interacting with a variety of human beings, we become more empathetic, understanding, and celebratory of new ideas. This is fundamental to continuous innovation — how we interact and approach challenges, engage in new experiences, and become an inspirational leader in life and work. So, break down the silos and access the diversity of thinking that's already outside the door.

At the same time, the challenge of density must be tackled not only physically but also digitally. By converging the physical and digital ecosystem through a neural network, we can intelligently connect the activity with centralized access to start-ups, corporations, nonprofits, free-lancers, incubators, accelerators, maker-spaces, academia, local influencers, and public partners. Digitally bridging all of us can make one of the largest and most spread-out cities in the U.S. feel like a small Texas town with big ideas and an ever-stronger dimension of inclusivity.

So, join the movement, strike up a conversation, grab your metaphorical spray paint and converge with all the vibrant colors of Houston as we energize the future of humanity, navigate to Mars and back safely, and annihilate the existence of cancer.

As Steve Jobs said: "The people who are crazy enough to think that they can change the world, are the ones who do." Are we ready?

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Brad Rossacci is creative director at Accenture's Innovation Hub in Houston.

Thomas Rubenak is senior principal of Accenture Ventures. Courtesy of Accenture

New Accenture exec aims to put Houston's innovation ecosystem on the map

Featured Innovator

In most industries, there's a disconnect between startups and major corporations. The startups may have solutions for the big companies, but the two entities might not know how to connect with each other. That's something Accenture hopes to help with.

The company created Accenture Ventures to help connect the dots between emerging technology and big business. As the program has expanded, Thomas Rubenak was selected to serve the Southwest region as senior principal.

With a long career of working in tech, research and design, and startups, Rubenak hopes to use his experience to help grow Houston's blossoming innovation ecosystem.

"It takes a village. It's not just the amazing accelerators we have throughout the region," Rubenak says. "If you look at the Cannon, Houston Exponential, MassChallenge, and all of the ecosystem — it takes all of us together to prop up a thriving economy. That's what we're doing. We're changing not just the face of Houston but really impacting the startups as well as the clients we serve."

Rubenak spoke with InnovationMap to discuss the role Accenture Ventures plays in the ecosystem and how he sees innovation in Houston growing.

InnovationMap: You're new to your role, but you've worked with tech and startups for years. Tell me a little bit about your career to date. 

Thomas Rubenak: I come most recently from EY. I did a few assignments there, primarily working with the EY and Microsoft alliance. I was also a go-to-market lead for deep technical accounting for IPOs and other regulatory compliance issues. I worked a lot with the Entrepreneur of the Year program. Before that, I spent most of my career in tech research with Gartner and Forrester. This space is all about brilliant minds that really focus on helping the world understand what's next in emerging technology. I worked pretty extensively with venture capital, private equity and venture banks.

IM: While you’ve worked on projects across the country, you’ve been based in Houston, so you’ve been able to see the city transform, right?

TR: In my career, I've been really fortunate enough to align with amazing people in the market. Several years ago, we started a community just in Houston to bring entrepreneurs, angel investors, and some VC together. It was a nonprofit, grassroots effort called TeXchange; I just wanted to help entrepreneurs connect to sources of capital.

IM: How did Accenture Ventures get its start and what does it aim to do?

TR: Accenture realized four years ago that in order to stay competitive, it needed to tap the best of the best in the startup world. The only way to do that is to dedicate resources and people to that task, and that's how we started Ventures. As a recent joiner, my role is primarily the lead for the Southwest to bring the best of the startup ecosystem into our clients to help them solve their most pressing problems. And it's not just about problems, but also about opportunities.

It's a win-win-win. The client gets the benefit of having the best of the best and the startups get amazing exposure to companies they might not have been able to get in front of. And, Accenture is happy because it gets to serve the client.

Accenture works in multiple sectors, including resources (oil and gas), chemicals, mining — so for obvious reasons, the Southwest is a big sector for us — but, we also tap the health and public safety sectors.

As we look to design these arrangements with these startups and we find that there is a compelling need to invest in them, we'll become a minority investor. If that startup then has a M&A play that makes sense to everyone, we'll look into that as well.

IM: How do Accenture Ventures and the Innovation Hub work together?

TR: I am part of the hub, and I also serve the broader team.

What we bring to the table is amazing talent to data scientists to designers — many different resources — and we work with our clients to figure out what they want to solve or if there's a play in the market they are interested in. We can pull the best from Accenture and from the startup ecosystem to design solutions.

IM: What’s the most challenging thing about solving clients’ goals?

TR: It's not a challenge so to speak, but it's something I have to be mindful of, and that is always keeping the client's interest at hand, so recognizing and realizing that they have short- and long-term goals that they want to achieve.

IM: What's it like working with companies on the startup side?

TR: We seek specific types of startups. In order for us to be really effective, we keep a pulse on the market. Our focus is on companies that have gotten their source of funding, they've gone through their first round, companies that have great management who have been in industry or served big companies, and companies that are disruptors, innovators, or have something really compelling to bring to us. The challenge is that there are so many of them. There are so many great startup companies doing amazing things. But, as many startups as there are, there's just as many client issues.

IM: In your opinion, what challenges does the Houston innovation ecosystem still have to overcome?

TR: It's no secret that the economic engine of venture capital is in the east and west coasts. We have a lot of great VCs here, but it's about how do we keep our startups here. That's an issue that everyone talks about. But we also have seen a lot of startups move to Houston from other places. But, from the financial aspect of it, I think we could always use more of that. I personally don't think there will ever be another Silicon Valley, but we'll be something different. We'll be ourself. But, we do need those sources of capital in place. But something I want to mention is the diversity and the universities in Houston — we have a lot going for us.

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Portions of this interview have been edited.

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Houston plummets on list of best places to live in new national report

yikes

In a surprise turn of events, Houston has fallen from grace in U.S. News and World Report's "Best Places to Live" ranking for 2023-2024.

Last year, Houston ranked No. 59 on the annual report — not surprising, considering all the Newstonians. However, the Bayou City plummeted to a shocking No. 140.

But why? According to the report: "A paycheck goes further in Houston than it does in other major metro areas, with affordable housing and free or cheap attractions like biking along Buffalo Bayou and exploring the 7,800-acre George Bush Park. The affordability of this region, which is located in southeastern Texas and home to more than 7 million residents in the metro area, is attracting new people from across the country and around the world."

The report takes a look at several different metrics to determine their rankings, including quality of life, housing affordability, desirability, and job market strength.

Somehow, Houston scored a mere 5.6 out of 10 in the livability score. By the numbers (and out of a perfect 10), Houston scored a 6 for desirability, 6.3 for value, 5.5. for job market, a surprising 5 for quality of life, and 5.9 for net migration.

It gets worse: Houston ranks as only No. 10 on the report's Best Place to Live in Texas list for 2023.

Texas overall saw a major drop. Austin, previously the No. 1 place to live in America for three consecutive years from 2017 to 2019, lands at No. 40 overall this year. Austin managed to hang on to its title of the Best Place to Live in Texas for 2023, with San Antonio at No. 2, and Dallas-Fort Worth taking No. 3. Rounding out the top five is Killeen in No. 4, and El Paso at No. 5.

Here's how other Texas cities faired in 2023's Best Places to Live report:

  • No. 103 – San Antonio, down from No. 83 last year
  • No. 113 – Dallas-Fort Worth, down from No. 32 last year
  • No. 122 – Killeen, down from No. 108 last year
  • No. 128 – El Paso, down from No. 124 last year
  • No. 131 – Beaumont, down from No. 109 last year
  • No. 132 – Corpus Christi, up from No. 133 last year
  • No. 134 – Brownsville, unchanged from last year
  • No. 137 – McAllen, up from No. 138 last year
  • No. 140 – Houston, down from No. 59 last year

The full report can be found on U.S. News and World Report's website.

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This article originally ran on CultureMap.

Houston health care institution secures $100M for expansion, shares renderings

fresh funding

Baylor College of Medicine has collected $100 million toward its $150 million fundraising goal for the college’s planned Lillie and Roy Cullen Tower.

The $100 million in gifts include:

  • A total of $30 million from The Cullen Foundation, The Cullen Trust for Health Care, and The Cullen Trust for Higher Education.
  • $12 million from the DeBakey Medical Foundation
  • $10 million from the Huffington Foundation
  • More than $45 million from members of Baylor’s Board of Trustees and other community donors, including the M.D. Anderson Foundation, the Albert and Margaret Alkek Foundation, and The Elkins Foundation.

“The Cullen Trust for Health Care is very honored to support this building along with The Cullen Foundation and The Cullen Trust for Higher Education,” Cullen Geiselman Muse, chair of The Cullen Trust for Health Care, says in a news release. “We cannot wait to see what new beginnings will come from inside the Lillie and Roy Cullen Tower.”

The Baylor campus is next to Texas Medical Center’s Helix Park, a 37-acre project. Rendering courtesy of BCM

The Lillie and Roy Cullen Tower is set to open in 2026. The 503,000-square-foot tower is the first phase of Baylor’s planned Health Sciences Park, an 800,000-square-foot project that will feature medical education and research adjacent to patient care at Baylor Medicine and Baylor St. Luke’s Medical Center on the McNair Campus.

The Baylor campus is next to Texas Medical Center’s Helix Park, a 37-acre project that will support healthcare, life sciences, and business ventures. Baylor is the anchor tenant in the first building being constructed at Helix Park.

“To really change the future of health, we need a space that facilitates the future,” says Dr. Paul Klotman, president, CEO, and executive dean of Baylor. “We need to have a great building to recruit great talent. Having a place where our clinical programs are located, where our data scientists are, next to a biotech development center, and having our medical students all integrated into that environment will allow them to be ready in the future for where healthcare is going.”

In the 1940s, Lillie and Roy Cullen and the M.D. Anderson Foundation were instrumental in establishing the Texas Medical Center, which is now the world’s largest medical complex.

“Baylor is the place it is today because of philanthropy,” Klotman says. “The Cullen family, the M.D. Anderson Foundation, and the Albert and Margaret Alkek Foundation have been some of Baylor’s most devoted champions, which has enabled Baylor to mold generations of exceptional health sciences professionals. It is fitting that history is repeating itself with support for this state-of-the-art education building.”

The Cullen Foundation donated $30 million to the project. Rendering courtesy of BCM