Houston and Texas recognized as top regions for startups, according to new reports

best around

Both Houston and the Lone Star State as a whole have been named top places to start a business. Photo via Getty Images

When it comes to corporate giants, the Houston area has plenty to brag about: It’s home to the headquarters of two dozen Fortune 500 companies.

However, Houston can also boast that it’s one of the best U.S. metro areas to launch a business. Houston ranks ninth on a new list from the 42Floors real estate website of the top spots for new entrepreneurs. Austin lands at No. 3 on the list, Dallas appears at No. 8, and San Antonio winds up at No. 19. Las Vegas ranks first.

The website judged metro areas based on factors reflecting business opportunity and affordability.

“Starting out in a business-friendly environment, being able to afford a small office, or even having access to the right consulting services and networking opportunities can all contribute to your new business’s chances for success,” 42Floors says.

Among the factors favoring Houston are:

  • A cost of living on par with the national average, and lower than Austin’s and Dallas’ averages.
  • Average annual labor costs of $45,750 per employee, below the figures for Austin and Dallas.

Referring to Houston, Austin, and Dallas, 42Floors says: “As you might expect, each metro in the Texas trio offered a different context in which different businesses could thrive. For this reason, entrepreneurs will need to weigh the importance of affordability and opportunity for their respective business ideas.”

The presence of Houston, Austin, Dallas, and San Antonio in the top 20 of the 42Floors study underscores the Lone Star State’s standing as a top state for startups.

Job search platform Lensa recently ranked Texas as the best state to launch a startup. To developing its ranking, Lensa examined factors such as volume of new-business applications, corporate tax rates, and cost of living.

Texas earned a 7.09 out of 10 on Lensa’s scale. Helping driving that score was the 492,243 new-business applications filed in the past year in Texas, beating all other states except California and Florida. The application number “demonstrates just how many ambitious entrepreneurs there are in Texas,” Lensa says.

In addition, Texas lands at No. 2 among the top 10 startup states for the lowest corporate tax rate, at 3.95 percent, and at No. 3 among the top 10 startup states for the lowest cost of living.

According to a new report, Houston's workforce isn't among the happiest in the nation. Photo via Getty Images

Report: Texas is home to a not-so happy workforce

by the numbers

Call it the Bayou City Blues. A report from job website Lensa ranks Houston third among the U.S. cities with the unhappiest workers.

The report looks at four factors — vacation days taken, hours worked per week, average pay, and overall happiness — to determine the happiest and unhappiest cities for U.S. workers.

Lensa examined data for 30 major cities, including Dallas and San Antonio. Dallas appears at the top of the list of the cities with the unhappiest workers, and San Antonio lands at No. 8.

Minneapolis ranks first among the cities with the happiest workers.

Here's how Houston fared in the four ranking categories:

  • 16.6 million unused vacation days per year.
  • 40.1 average hours worked per week.
  • Median annual pay of $32,251.
  • Happiness score of out of 50.83.

Dallas had 19.4 million unused vacation days per year, 40.5 average hours worked per week, median annual pay of $34,479, and a happiness score of 53.3 out of 100.

Meanwhile, San Antonio had 5.7 million unused vacation days per year, 39.2 average hours worked per week, median annual pay of $25,894, and a happiness score of 48.61.

Texas tops Lensa's list of the states with the unhappiest workers.

"While the Lone Star State had a decent happiness score of 52.56 out of 100, it scored poorly on each of the other factors, with Texans allowing an incredible 67.1 million earned vacation days go to waste over the course of a year," Lensa says.

In terms of general happiness, Houston shows up at No. 123 on WalletHub's most recent list of the happiest U.S. cities. Dallas takes the No. 104 spot, and San Antonio lands at No. 141. Fremont, California, grabs the No. 1 ranking.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

2 Houston space tech cos. celebrate major tech milestones

big wins

Two Houston aerospace companies — Intuitive Machines and Venus Aerospace — have reached testing milestones for equipment they’re developing.

Intuitive Machines recently completed the first round of “human in the loop” testing for its Moon RACER (Reusable Autonomous Crewed Exploration Rover) lunar terrain vehicle. The company conducted the test at NASA’s Johnson Space Center.

RACER is one of three lunar terrain vehicles being considered by NASA for the space agency’s Artemis initiative, which will send astronauts to the moon.

NASA says human-in-the-loop testing can reveal design flaws and technical problems, and can lead to cost-efficient improvements. In addition, it can elevate the design process from 2D to 3D modeling.

Intuitive Machines says the testing “proved invaluable.” NASA astronauts served as test subjects who provided feedback about the Moon RACER’s functionality.

The Moon RACER, featuring a rechargeable electric battery and a robotic arm, will be able to accommodate two astronauts and more than 880 pounds of cargo. It’s being designed to pull a trailer loaded with more than 1,760 pounds of cargo.

Another Houston company, Venus Aerospace, recently achieved ignition of its VDR2 rocket engine. The engine, being developed in tandem with Ohio-based Velontra — which aims to produce hypersonic planes — combines the functions of a rotating detonation rocket engine with those of a ramjet.

A rotating detonation rocket engine, which isn’t equipped with moving parts, rapidly burns fuel via a supersonic detonation wave, according to the Air Force Research Laboratory. In turn, the engine delivers high performance in a small volume, the lab says. This savings in volume can offer range, speed, and affordability benefits compared with ramjets, rockets, and gas turbines.

A ramjet is a type of “air breathing” jet engine that does not include a rotary engine, according to the SKYbrary electronic database. Instead, it uses the forward motion of the engine to compress incoming air.

A ramjet can’t function at zero airspeed, so it can’t power an aircraft during all phases of flight, according to SKYbrary. Therefore, it must be paired with another kind of propulsion, such as a rotating detonation rocket engine, to enable acceleration at a speed where the ramjet can produce thrust.

“With this successful test and ignition, Venus Aerospace has demonstrated the exceptional ability to start a [ramjet] at takeoff speed, which is revolutionary,” the company says.

Venus Aerospace plans further testing of its engine in 2025.

Venus Aerospace, recently achieved ignition of its VDR2 rocket engine. Photo courtesy of Venus Aerospace

METRO rolls out electric shuttles for downtown Houston commuters

on a roll

The innovative METRO microtransit program will be expanding to the downtown area, the Metropolitan Transit Authority of Harris County announced on Monday.

“Microtransit is a proven solution to get more people where they need to go safely and efficiently,” Houston Mayor John Whitmire said in a statement. “Connected communities are safer communities, and bringing microtransit to Houston builds on my promise for smart, fiscally-sound infrastructure growth.”

The program started in June 2023 when the city’s nonprofit Evolve Houston partnered with the for-profit Ryde company to offer free shuttle service to residents of Second and Third Ward. The shuttles are all-electric and take riders to bus stops, medical buildings, and grocery stores. Essentially, it works as a traditional ride-share service but focuses on multiple passengers in areas where bus access may involve hazards or other obstacles. Riders access the system through the Ride Circuit app.

So far, the microtransit system has made a positive impact in the wards according to METRO. This has led to the current expansion into the downtown area. The system is not designed to replace the standard bus service, but to help riders navigate to it through areas where bus service is more difficult.

“Integrating microtransit into METRO’s public transit system demonstrates a commitment to finding innovative solutions that meet our customers where they are,” said METRO Board Chair Elizabeth Gonzalez Brock. “This on-demand service provides a flexible, easier way to reach METRO buses and rail lines and will grow ridership by solving the first- and last-mile challenges that have hindered people’s ability to choose METRO.”

The City of Houston approved a renewal of the microtransit program in July, authorizing Evolve Houston to spend $1.3 million on it. Some, like council member Letitia Plummer, have questioned whether microtransit is really the future for METRO as the service cuts lines such as the University Corridor.

However, the microtransit system serves clear and longstanding needs in Houston. Getting to and from bus stops in the city with its long blocks, spread-out communities, and fickle pedestrian ways can be difficult, especially for poor or disabled riders. While the bus and rail work fine for longer distances, shorter ones can be underserved.

Even in places like downtown where stops are plentiful, movement between them can still involve walks of a mile or more, and may not serve for short trips.

“Our microtransit service is a game-changer for connecting people, and we are thrilled to launch it in downtown Houston,” said Evolve executive director Casey Brown. “The all-electric, on-demand service complements METRO’s existing fixed-route systems while offering a new solution for short trips. This launch marks an important milestone for our service, and we look forward to introducing additional zones in the new year — improving access to public transit and local destinations.”

———

This article originally ran on CultureMap.

Cart.com's M&A move, energy innovators recognized, and more top articles from the week

trending news

Editor's note:Let's roundup the most-read Houston innovation news from the week. Trending Houston tech and startup articles from InnovationMap and its daily newsletter included a new health tech grant for Houston researchers, Cart.com's latest acquisition, and more.

Houston med school lands $3.5M grant to rollout genetic telehealth platform for underserved newborns

Baylor College of Medicine received $3.5 million to expand its telehealth platform to improve genomic diagnostics and care for critically ill newborns in underserved neonatal intensive care units in West and South Texas. Photo by Tim Bish on Unsplash

Baylor College of Medicine received $3.5 million to help hospitals in Texas better care for and diagnose some of the state's most vulnerable patients.

The funds come from the National Human Genome Research Institute for the Making Genomics Accessible to Newborns in Texas, or MAGNET, program. They'll be used to adapt BCM's Consultagene telehealth platform to be used in underserved neonatal intensive care units in West and South Texas, according to a statement.

Families in this region of the state currently can travel up to 300 miles to reach the nearest in-state geneticist, according to MAGNET. The program aims to help close that gap through BCM's established remote consultation service. Investigators also plan to create educational videos in English and Spanish to educate providers and patient caregivers on genetic diagnoses.

“Only 20 years ago, less than 3 percent of genetic conditions in newborns could be molecularly diagnosed,” Dr. Brendan Lee, co-principal investigator and professor and chair of the Department of Molecular and Human Genetics and Robert and Janice McNair Endowed Chair in Molecular and Human Genetics at BCM, says in a statement. Continue reading.

Houston e-commerce platform expands logistics network with acquisition of fulfillment operations arm

Cart.com has acquired OceanX, adding two new facilities and expanding its logistics network to enhance efficiency and support high-volume beauty, wellness, and lifestyle brands. Photo courtesy of Cart.com

A Houston e-commerce unicorn has made its latest strategic acquisition.

Cart.com, which operates a multichannel commerce platform, announced that it has acquired Guthy-Renker's wholly-owned fulfillment operations arm OceanX. The terms of the deal were not disclosed. Around 200 OceanX employees will be assumed onto the Cart.com team, and the fast-growing company will add two new facilities totaling over 600,000 square feet to its network, expanding to include a West Coast distribution hub in Southern California and its third facility near Columbus, Ohio.

"Acquiring OceanX is part of Cart.com’s strategy to continue to scale our platform and capabilities across industries, leveraging our proprietary technology to improve efficiency and deliver superior results to our clients and their customers,” Omair Tariq, Cart.com founder and CEO, says in a news release. “By deploying our Constellation OMS and WMS software and seasoned operations team across these two new facilities, we will improve order visibility, labor efficiency, shipping costs and customer satisfaction for the benefit of our new clients.” Continue reading.

3 clean energy innovators make Forbes list of top young energy professionals

Three young professionals have made the cut for this year's Forbes Under 30 list in the Energy and Green Tech list for 2025. Photos via Forbes

A handful of Houstonians have been named to the Forbes 30 Under 30 Energy and Green Tech list for 2025.

Kip Daujotas is an investment associate at Aramco Ventures, a $7.5 billion venture capital arm of the world's largest energy company. Houston is the Americas headquarters for Saudi Aramco. Since its inception in 2012, Aramco Ventures has invested in more than 100 tech startups. Daujotas joined the team over two years ago after studying for an MBA at Yale University. He led Aramco’s first direct air capture (DAC) investment — in Los Alamos, New Mexico-based Spiritus.

Also representing the corporate side of the industry, Wenting Gao immigrated from Beijing to obtain an economics degree from Harvard University, then got a job at consulting giant McKinsey, where she recently became the firm’s youngest partner. Gao works on bringing sustainability strategies to energy and materials companies as well as investors. Her areas of expertise include battery materials, waste, biofuels, and low-carbon products.

Last but not least, Houston entrepreneur Rawand Rasheed is co-founder and CEO of Houston-based Helix Earth. He co-founded the startup after earning a doctoral degree from Rice University and co-inventing Helix’s core technology while at NASA, first as a graduate research fellow and then as an engineer. The core technology, a space capsule air filtration system, has been applied to retrofitting HVAC systems for commercial buildings. Continue reading.

Rice University, Houston Methodist launch new institute to revolutionize health care through AI, innovation

Rice University and Houston Methodist have partnered to create the Digital Health Institute, combining advanced technology, artificial intelligence, and interdisciplinary expertise to transform health care. Photos courtesy

Rice University and Houston Methodist have established through a multi-year joint effort the Digital Health Institute, which aims to transform healthcare through advanced technology and the collaborative expertises of the university and hospital.

Rice’s leadership in engineering, digital health and artificial intelligence will combine with Houston Methodist’s academic medicine and research infrastructure.

“This partnership embodies Rice’s bold vision to lead at the forefront of innovation in health and responsible AI,” Rice President Reginald DesRoches says in a news release. “By combining our strengths with Houston Methodist, we are creating a transformative platform to address critical challenges in healthcare with solutions that are ethical, accessible and impactful. This initiative exemplifies our commitment to driving interdisciplinary collaboration and advancing global health for the benefit of humanity.” Continue reading.

2 Houston professors named as fellows for prestigious group of inventors

Omid Veiseh from Rice University and Edward Ratner from the University of Houston have been named 2024 National Academy of Inventors fellows for their innovative contributions. Courtesy photos

The highest professional distinction awarded to academic inventors, the National Academy of Inventors, have elected two fellows from Rice University and the University of Houston for its 2024 class.

Edward Ratner, computer information systems lecturer in the Department of Information Science Technology at the University of Houston’s Cullen College of Engineering, and Omid Veiseh, bioengineer at Rice University and director of the Biotech Launch Pad, were two of the 170 honorees representing 39 states and 12 countries.

The 2024 class will be honored and presented their medals on June 26 in Atlanta, Georgia by a senior official of the U.S. Patent and Trademark Office. Continue reading.

View All Listings