New study says Houston is best city to grow business

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Houston has been lauded for being home to fast-growing companies. Photo via Getty Images

The Bayou City has again received recognition as a top hub for business.

According to a new study by business revenue experts The RevOps Team, Houston is one of the cities in the US with 10 or more companies listed in the S&P 500, and has been named as the number one city with the fastest growing businesses in the U.S. Houston scored the highest Average Business Growth (ABG) at 26.7 percent. The business experts divided the data from the S&P 500 Index to see what businesses had the highest share-price growth in the last year.

Out of the 28 states and the cities with 10 or more businesses listed in the S&P 500, Houston was No. 1t for growing businesses with Atlanta, in second place with 15 companies listed and reaching an ABG of 24.2 percent. Two cities in Texas ranked in the top five with Dallas taking third place at 14.9 percent.

Texas ranked fifth place overall in the top five states for business growth with high-performing businesses like Vistra. Vistra was the company with the highest growth in Texas at 277.68 percent, followed by NRG Energy (NRG) with 170.43 percent and Caterpillar Inc. (CAT) at 69.13 percent.

“You need to be ready to both leverage opportunity and adapt to challenges,” Kerri Linsenbigler of RevOps Team said in a news release. “Growing a business wherever you are in the U.S. is not for the faint-hearted, and business owners in Texas will be proud that they have ranked highly in the top five.”

Earlier this month, over a dozen Houston-based companies madeU.S. News and World Report's collection of the "Best Companies to Work For" in 2024-2025.

In December, the city was ranked among the 25 best metropolitan areas to start a small business in a report by personal finance website The Credit Review placed Houston in the No. 22 spot.


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This is a Houston resident's sign to launch that small business they've been dreaming of. Photo by Mickey Dziwulski on Unsplash

Houston ranks among best U.S. metros to start a small business, per report

by the numbers

Houstonians whose New Year's resolution is to start their own small business will be happy to learn they're in the right city to do it. Houston-The Woodlands-Sugar Land has been ranked among the 25 best metropolitan areas to start a small business in a new report.

The report by personal finance website The Credit Review placed Houston in the No. 22 spot, touting the city's rapid growth, its diverse economy, and its ever-expanding population as several attractive reasons for its rank.

Small business owners in Houston specifically thrive in the arts, entertainment, and recreation sectors, the report found. Houston has proved its big on business, as several major employers have invested in the city while earning high recognition for their efforts in improving the workplace atmosphere for employees.

With the shift to remote work, it's now much easier for Houston residents to launch their business than ever before, the report claims. But in order to ensure longevity with a small business, the study suggests launching the venture in a place with the right number of resources and connections.

"The more resources a small business owner has, the better chances they have to succeed," the report says. "This is why, despite the overall shift to a remote-centric world, geographic location matters more than ever for a small business’s long-term success."

Austin-Round Rock-Georgetown earned the gold medal as the No. 1 metro for starting a small business. The Central Texas region is also the No. 1 hotspot for businesses in the information services sector, and the arts, entertainment, and recreation industry.

Another thriving Texas metro that earned a spot in the top 10 is Dallas-Fort Worth-Arlington, claiming the No. 8 spot. Elsewhere in Texas, San Antonio-New Braunfels ranked below Houston as No. 32.

The top 10 U.S. metros for starting a small business are:

  • No. 1 – Austin-Round Rock-Georgetown, Texas
  • No. 2 – Provo-Orem, Utah
  • No. 3 – Raleigh-Cary, North Carolina
  • No. 4 – Salt Lake City, Utah
  • No. 5 – Boise, Idaho
  • No. 6 – Nashville-Davidson-Murfreesboro-Franklin, Tennessee
  • No. 7 – Jacksonville, Florida
  • No. 8 – Dallas-Fort Worth-Arlington, Texas
  • No. 9 – Charlotte-Concord-Gastonia, North Carolina-South Carolina
  • No. 10 – North Port-Sarasota-Bradenton, Florida

The report analyzed the top 100 U.S. metro regions across 10 factors to determine the rankings, including unemployment rates, growth rates, new business success rates, and more.

The full report can be found on thecreditreview.com.

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This article originally ran on CultureMap.

The No. 1 city on the list was from Texas, but it wasn't Houston. Photo via Getty Images

Texas cities see mixed results on list of top markets to start a business

progress report

While the Lone Star State secured top marks for states to launch a company, Houston was a bit outpaced by two of its sister cities.

According to a study by The Credit Review, a personal finance website, Texas was one of the best states in which to start a small business in 2023. In fact, Austin was the No. 1 city in the list entitled "25 Best U.S. Metros to Start a Small Business in High-Growth Sectors," which came out at the end of November.

“There are so many reasons why Austin is the best place to start a small business that it would require another article to explain them all,” the article reads.

Austin grabbed the top spot as the best city to start a small business in America in the top five sectors, including arts, entertainment, and recreation; and information services.

But that’s not the only reason that Texas was a winner. Dallas was No. 8 on the list for its fast growth in the area of management of companies and enterprises, while Houston was No. 22.

On the other hand, McAllen and El Paso were among the worst places in the country to start a small business. With McAllen’s 29.3 percent poverty rate, it comes in last for the entire country.

The Credit Review, which hails from Austin, compared the 100 largest MSAs in the United States for fast-growth and small business-survivability indicators such as population change, GDP, and the state of fastest-growing business sectors based on growth projections for 2021-2031 in each MSA. The team’s sources include the U.S. census, U.S. Bureau of Labor Statistics, Tax Foundation, and U.S. Courts.

It's worth noting that Houston’s GDP per capita score was one of the highest on the list, 8.9 out of 10. (Austin’s was 9.3.) The metro area, which also included Sugarland and The Woodlands, was noted for its top sector, arts, and entertainment.

Earlier this year, Texas ranked highly on two separate lists evaluating the best states to start a business. In January, the state ranked No. 3 on WalletHub's annual report, and then in April, Texas cinched No. 3 on Credit on Tap's ranking.

Houston-area Ad Astra Rocket Company, which is working on a technology that could increase the speed of space travel, received fresh funding from NASA. Photo via NASA.gov

NASA doles out $98M in funding to small business innovators, including 6 Texas firms

grants lifting off

Almost 100 small businesses with aerospace technology received the greenlight from NASA on their proposals for grant funding.

NASA approved 112 proposals from 92 small businesses in April. These businesses will receive a slice of the $98 million Phase II funding from the Small Business Innovation Research program. The early-stage $850,000 SBIR grants allow awardees to build on their success from the program's first phase. The firms will have 24 months to execute on their proposals with the fresh funding.

“These Phase II awards support a breadth of technologies that have the potential to be transformational for so many different projects and missions across NASA,” says Jenn Gustetic, director of early stage innovation and partnerships for NASA's Space Technology Mission Directorate, in a news release. “In addition, it’s important that we’re including the innovative potential of all of America’s small businesses and entrepreneurs, so we’re proud that 28% of these awards are to underrepresented small businesses and 31% are to first time SBIR Phase II awardees."

Six of the award recipients are based in Texas. Here are the companies and their proposal technology:

  • Ad Astra Rocket Company, headquartered in Webster: Improved Thermo-Mechanical Design of the VASIMR RF Coupler
  • Lunar Resources Inc., headquartered in Houston: Ultra-Electrical-Efficient Process to Perform Regolith Additive Manufacturing of Complex Structures
  • Lynntech Inc., headquartered in College Station: Miniaturized Reagent Regenerative Ion Analyzer for Elemental Analysis
  • QED Secure Solutions, headquartered in Coppell: Avionics Intrusion Detection and Attack Identification
  • Stone Aerospace Inc., headquartered in Del Valle: Sediment Sequestration for Hot Water Drilling Cryobots
  • Texas Research Institute Austin Inc., headquartered in Austin: Accelerated Creep Test Methodologies for Space Habitat Softgood Structural Materials

The Ad Astra Rocket Company's technology, the Variable Specific Impulse Magnetoplasma Rocket, or VASIMR, is an electrothermal thruster that, once developed using the grant, would allow for faster space travel.

“Our program has the responsibility of supporting ideas and technologies that will have impact on NASA’s work and have strong commercial potential,” says Jason L. Kessler, program executive for NASA's SBIR and Small Business Technology Transfer program, in the release. “We're always excited when we can find technologies that help our agency's missions while also having direct benefits for all."

NASA's SBIR program, which takes no equity, offers up to $1 million to selected business during the first three years. Post Phase II opportunities include up to nearly $3 million in funding. The program is a part of NASA's Space Technology Mission Directorate and managed by NASA’s Ames Research Center in California's Silicon Valley.

Want to secure press coverage on your company this year? Here's what you need to know. Photo via All You Need Method

6 tips for landing press coverage for Houston entrepreneurs, business owners

Guest column

If you’re looking to build brand awareness, establish trust and credibility, and reach more customers in 2023, landing a press placement can be impactful for your small business. A traditional PR placement, also known as “earned media,” is one of the most valuable endorsements for a business, and you do have to earn it.

The good news is that in today’s digital landscape you don’t need a PR agency or consultant to land press coverage, you can pursue media coverage on your own. By prioritizing your brand foundation and telling your brand story through your owned channels (such as your website, newsletter and social media platforms), you can capture the attention of the media. Pair a strong brand and storytelling with the appropriate tactics for working with editors, and you will be set up for success.

Read our insider tips below to help you secure press coverage for your business this year.

1. Good PR starts with your brand

If you’ve ever wondered how to catch the attention of an editor, it starts with your brand — and by brand, we don’t just mean your branding (logo, colors, fonts, etc.) — although that is one component.

Good PR starts with a good story, one that is unique and differentiated. Editors are looking for more than just a product or service – they are looking for something special and new that their readers will benefit from.

Building your brand is about establishing the personality and story behind your business that goes beyond sales and promotions. Taking the time to build your brand is one of the best investments you can make as a small business owner. Not only will it help with your PR and marketing efforts, but it will also support your overall long-term success.

Building a brand foundation and learning how to tell your brand story includes your company positioning, your values, articulating what makes you different, crafting your founding story, refining your visual aesthetic and tone of voice, and much more.

Being able to communicate what makes you different, what you stand for, what you have to offer, and what you want to be known for – and developing a brand aesthetic that reflects your unique point of view – will allow you to stand out from the competition and capture the attention of the media.

2. Tell your own story

In our digital world brands are being discovered online. This means that your website and Instagram channel are often the first impression of your business to both consumers and editors. That said, it’s essential for your success that your digital presence communicates and reflects your brand foundation – the personality and substance behind your business. One question to consider is if your ideal customer or editor came to your website or Instagram for 30 seconds, would they walk away knowing the three most important things about your business and with a clear idea of what you stand for, what makes you different, and what you have to offer?

Your owned channels also provide an exciting opportunity to connect directly with your ideal customers, influencers, potential partners, as well as the media. By sharing your brand narrative consistently across your owned channels, you have the potential to build a meaningful relationship with your audience that can grow into loyal followers and customers.

The key is communicating consistently – you want your brand to be cohesive across all channels, so that everything from an Instagram post to your homepage reflects the unique brand positioning you’ve established. To achieve a consistent brand narrative, you want to make sure your messaging, photography, copywriting, graphics, and any other creative materials reflect the brand foundation you’ve built.

An invaluable practice at any stage of business is to conduct a brand audit in order to evaluate if your digital channels are communicating your brand foundation effectively. Read our three steps for conducting a brand audit here.

3. Draft and organize your materials

Drafting and organizing materials is one of the first tasks to tackle when preparing to reach out to the media. Editors are inundated with emails (thousands and thousands a day) and receiving easy-to-review dropbox links and files makes their job much easier. A lengthy email without a clear hook is a sure way to end up in someone’s Trash folder and left unread.

We cannot express enough how important photography is for securing press. Many publications rely on a brand’s photography. Without images it is oftentimes impossible for an editor to cover a brand. This goes for your personal brand too - if you’re an expert or offer a service, you will also need to provide a professional headshot or lifestyle image. Brands with consumer products will also need to show product photography.

There are a wide range of materials you may need based on your industry, but here are the essentials:

  • About page: a one-page document outlining the who, what, when, where, and why of your company
  • Bio: an overview of your background and why you started your company, with a few personal details
  • Line Sheet: images, pricing and key details for product collections
  • Product photography: Lay flats of your product on a white seamless background
  • Lifestyle photography: Images that bring your product or service to life by showing them in use
  • Headshot: Professional photo of the founder or expert styled in a way that is relevant to the brand. I.e. if you’re a chef or a nutritionist, take your headshot in a beautiful kitchen, if you’re an artist or interior designer take your headshot in your studio

4. Research, research, research

We often get asked how to know who to reach out to. Every publication is different, which is why research is very important. Taking the time to properly research will save you a lot of time in the long-run and allow you to pinpoint which outlets and contacts are the best fit for your business. As you research, be sure to organize contact information and notes into a media list so you can keep track of who to reach out to and any feedback you receive.

We have a free media list template that you can download here.

When researching, keep these four tips in mind:

  • Be targeted – Focus on publications whose audience matches your own and who feel like a fit with your brand aesthetic and values
  • Scope out the competition - Where have your competitors, or brands and experts you admire, been featured?
  • Read recent articles - Whether you pick up magazines or do a Google search, look and see who has been writing about brands or other experts in your industry lately. When you use Google Search, use the Tools option to narrow down your search to articles in the past 6 months or year.
  • Look at the masthead - A magazine’s masthead is a list of its editorial staff and can give you helpful insight into who covers which category. You can usually find a masthead online, or in the front pages of a print publication.

5. Think like an editor

Editors are looking for interesting stories, new items, and pieces that will pop on a page. They work off of editorial calendars, and many magazines have set themes for each month. You can Google a magazine’s editorial calendar to find out their upcoming themes and think about where there might be a fit for your product or service, or for you as the founder of your business.

To think like an editor, keep these three tips in mind:

  1. Utilize Editorial Calendars. Most reputable magazines, outline outlets, and even blogs, share an annual “editorial calendar” on their website. Editorial calendars outline the theme for each issue, the date the issue comes out, and the topics they are covering. While editorial calendars are technically created for advertisers, they are an invaluable free resource for PR planning if you know how to use them to your advantage.
  2. Learn Lead Times. Be sure to keep what PR professionals call “lead times'' in mind. There are two main categories most publications and media outlets fall into: long lead and short lead. Long lead publications are typically glossy print publications or special issues of a newspaper that work about working three to six months in advance. For example, if you want to pitch an item for a holiday gift guide in a December issue (which hits stands in November) you want to be ready to send that information to the publication in July. Short lead publications and/or outlets include daily newspapers, weekly magazines, online outlets, such as digital versions of magazines and blogs, and broadcast news. Their lead times can range from a month in advance, to a week or even less.
  3. Understand What is “Newsworthy” vs. Seasonal/Evergreen. Editors cover what is new and newsworthy, as well as seasonal and evergreen topics that are relevant to their readers. When thinking about what you have to pitch, such as a specific product, consider whether it is evergreen and can be covered at any time, or if it is a seasonal item. This will guide the timing and context of your pitch.

6. Build relationships

Building relationships is incredibly impactful when it comes to landing press placements. Reaching out in a personal way, gifting your product or service, and keeping in touch with editors and writers over time will increase your chances of being covered with the right fit arrives.

When reaching out to editors, what do you have to offer? News? Tips? A cool new product collection to check out? This is not a transactional relationship, think long term and how you can be a resource for this editor or publication beyond what you are pitching at this moment.

Personalization and authenticity are key. Your first email to an editor should not be a “pitch” or a press release, it should be an introduction of yourself and your business. Be sure to research each person in advance and follow them on social media so you can personalize each email – mention a recent article of theirs that you enjoyed reading, or a recent Instagram post on their feed that you found interesting.

If you are able to set up a call, Zoom, or in person meeting, that is ideal for relationship building. We also recommend offering to gift your product or service to contacts at outlets that are on the top of your dream press list. This goes a long way and will allow them to be able to speak about your product or service from firsthand experience.

Lastly, be sure to follow up. If you don’t hear back, there is a good chance they missed your first email. Wait a couple of weeks and send a nice follow up. Remember, this is a long game and it takes time.

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Kathryn Worsham Humphries and Carla M. Nikitaidis are the Co-Creators of All You Need Method, a PR and brand strategy consulting firm for small business owners, creative entrepreneurs, and digital creators who are looking to build a brand and raise brand awareness through PR, content marketing, and partnerships. They offer support through their online course, The Brand Starter Kit, 1:1 Strategy Sessions, and custom client projects.

Retaining employees is no easy feat these days. Encouraging a healthy PTO policy can help avoid burnout. Photo courtesy of Joe Aker

Houston expert shares how small business leaders can encourage PTO use

guest column

As many small businesses continue to operate in a challenging, fast-paced environment, one thing that has arrived at breakneck speed is midyear, along with the summer months. Theoretically, to ensure work-life balance, most employees should have 50 percent of their PTO remaining to use for summer vacations and during the second half of the year. In reality, that is probably not the case given workers are hesitant to use their PTO, leaving approximately five days of unused PTO on the table during 2020 and 2021.

While the pandemic affected PTO usage the last two years, the labor shortage appears to be a major contributor in 2022, which has led to PTO hoarding and increasing levels of employee burnout. Although these factors can be compounded for small business owners because there are fewer employees to handle daily responsibilities, it is imperative for workers to take PTO, returning recharged with a fresh perspective on the tasks at hand.

Many employers might feel caught off guard by the amount of unused PTO that remains, but the good news is there is plenty of time to address the issue. Below are five ways for small business owners to help prevent PTO hoarding and encourage workers to take their allotted time off.

Remind your employees

Midyear is a good time to remind employees about the company’s PTO program, which is typically included in the employee handbook. Employers can share a link to the specific section of the handbook via email, along with key bullet points about the program that should be highlighted. For example, requirements to submit PTO requests in advance to help manage workloads, any blackout dates related to the nature of the business that can affect customer service and maximum number of hours that can be carried over into the new year to avoid losing any PTO hours. While employees are busy juggling numerous professional and personal responsibilities, it can be easy for them to overlook planning for PTO, so a quick reminder can make a big difference as employees and the company prepare for the remainder of 2022.

Leverage summer months

For some companies, the summer months present a great opportunity for workers to use PTO because business is typically slower, many clients also take time off and it might be easier to cover workloads. If leaders explain the situation to workers, they might be more inclined to schedule PTO because they feel encouraged to do so and there is less concern about leaving co-workers to handle heavy workloads. Leveraging the summer months for PTO can be a win-win for employees and the company, as operations continue smoothly and workers enjoy much-needed relaxation.

Stress the health benefits

Leaders should encourage employees to take time off by stressing the importance of taking care of their mental and physical health. A change of scenery away from work helps reduce stress, encourages relaxation and boosts adaptability, which can lead to greater creativity and innovative thinking. If workers do not take time to disconnect and recharge, it can result in low employee morale and decreased performance that may have a snowball effect involving co-workers, departments and family members.

Generate excitement

One way to encourage employees to use their PTO is to generate excitement by developing creative ways to inspire them to plan a getaway or other activities, which can have a positive impact and help prevent hoarding. For instance, organizing a contest on the intranet in which employees share how they used their time off, encouraging employees to vote on the most unique entries and rewarding the top three with gift cards. This activity might inspire others to break their routines and take time for themselves and their families by planning something special with their unused PTO hours.

Lead by example

Small business owners should lead by example and use their PTO hours to recharge, which also sends a clear message to employees that it is okay to take time off. While many owners may feel they cannot take time away from the office, it is critical for them to recharge, especially after two years of heightened stress levels and longer hours. According to a Capital One Business Survey of small business owners, 52% have not taken a vacation in the past year, 42% are currently experiencing burnout or have experienced it within the past month and 44% report having worked more than usual due to employee shortages. Owners who set an example are not only encouraging workers to do the same, but they are also taking care of themselves so they can be better positioned to operate their businesses for ongoing success.

As small business owners continue to navigate the labor shortage, savvy leaders recognize the significance of retaining existing employees, so it behooves them to encourage PTO usage to foster a highly engaged and energized workforce.

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Jill Chapman is a senior performance consultant with Insperity,a leading provider of human resources and business performance solutions.

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Houston-based equitable entrepreneurship tech platform expands programs

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Fresh off of celebrating the dismissal of a lawsuit from former Trump Administration officials, Hello Alice is expanding some of its offerings for entrepreneurs.

In partnership with top organizations — like Progressive, Antares Capital, Wells Fargo, and FedEx — Hello Alice has added new offerings for its 2024 Boost Camp programs, a mix of skill-building support and grant opportunities.

“We are fortunate to continue working with great enterprise partners who share our commitment to supporting Main Street through crucial grants and mentorship programs,” Carolyn Rodz, CEO and co-founder of Hello Alice, says in a news release. “Small businesses drive our economy, yet often lack the necessary financing and resources. By partnering with major companies, Hello Alice is ensuring that small businesses have access to the tools and opportunities they need to thrive and create jobs in their local communities. Together, we are building a robust support system that fosters innovation and growth for small businesses across the country.”

This year's programs, according to Hello Alice, are as follows:

  • Antares Capital REACH Cohort: The Antares REACH Grant Program provides $20,000 grants to small businesses. Grant recipients will also take part in Antares’ Growth Track Boost Camp program, a digital community which will be home to monthly business coaching workshops, mentorship, networking, and more. Applications are open until June 28, and the program begins August 8.
  • Progressive Driving Small Business Forward Grant & Booster Camp Program: Progressive is dedicating $1 million to award 20 deserving businesses with a $50,000 grant each. Grant recipients will be invited to attend an exclusive 12-week virtual Boost Camp coaching program. Applications have closed for the program beginning September 10.
  • Wells Fargo: Wells Fargo is supporting four virtual accelerator programs over the next 18 months, designed to support up to 500 participants for each program, with a focus on business health and credit-building practices. Applications will be announced this summer for the program, which will begin in early fall.
  • FedEx: The FedEx Entrepreneur Fund supports entrepreneurs in the United States by providing them with the necessary funding, resources, and networks to enhance the success of their businesses, including the Boost Camp coaching program.
    • Applications will be announced this fall for the program, which will begin in the winter.

More information and application access is available online.

Last year's Boost programs benefitted 100 small businesses, according to Hello Alice, which reported that the 2023 Antares REACH Cohort resulted in 60 percent of participants seeing an increase in their Business Health Score and 93 percent felt better equipped to confront challenges and capitalize on opportunities. In the end, 85 percent of participants feeling more optimistic about their business growth prospects.

"Hello Alice is proud to partner with high-level enterprise companies to empower small businesses and foster their success," Natalie Diamond, vice president of business development at Hello Alice, adds. "Together, we are creating unparalleled opportunities for entrepreneurs to achieve brand success, drive financial fitness, and thrive in today's competitive market. Our joint endeavors not only offer access to capital and resources but also provide tailored guidance and mentorship, arming small business owners with the insights and support necessary to navigate challenges and seize growth opportunities.”

Houston company's sustainable oil product reaches milestone production capacity 5 years early

overachieving

Houston-based biotech company Cemvita has achieved a key production goal five years ahead of schedule.

Thanks to technology advancements, Cemvita is now capable of generating 500 barrels per day of sustainable oil from carbon waste at its first commercial plant. As a result, Cemvita has quadrupled output at the Houston plant. The company had planned to reach this milestone in 2029.

Cemvita, founded in 2017, says this achievement paves the way for increased production capacity, improved operational efficiency, and an elevated advantage in the sustainable oil market.

“What’s so amazing about synthetic biology is that humans are just scratching the surface of what’s possible,” says Moji Karimi, co-founder and CEO of Cemvita. “Our focus on the first principles has allowed us to design and create new biotech more cheaply and faster than ever before.”

The production achievement follows Cemvita’s recent breakthrough in development of a solvent-free extraction bioprocess.

In 2023, United Airlines agreed to buy up to one billion gallons of sustainable aviation fuel from Cemvita’s first full-scale plant over the course of 20 years.

Cemvita’s investors include the UAV Sustainable Flight Fund, an investment arm of Chicago-based United; Oxy Low Carbon Ventures, an investment arm of Houston-based energy company Occidental Petroleum; and Japanese equipment and machinery manufacturer Mitsubishi Heavy Industries.

Tech disruptions sparked by Texas co.'s update highlight the fragility of globally connected technology

Airlines, banks, hospitals and other risk-averse organizations around the world chose cybersecurity company CrowdStrike to protect their computer systems from hackers and data breaches.

But all it took was one faulty CrowdStrike software update to cause global disruptions Friday that grounded flights, knocked banks and media outlets offline, and disrupted hospitals, retailers and other services.

“This is a function of the very homogenous technology that goes into the backbone of all of our IT infrastructure,” said Gregory Falco, an assistant professor of engineering at Cornell University. “What really causes this mess is that we rely on very few companies, and everybody uses the same folks, so everyone goes down at the same time.”

The trouble with the update issued by CrowdStrike and affecting computers running Microsoft's Windows operating system was not a hacking incident or cyberattack, according to CrowdStrike, which apologized and said a fix was on the way.

But it wasn't an easy fix. It required “boots on the ground” to remediate, said Gartner analyst Eric Grenier.

“The fix is working, it’s just a very manual process and there’s no magic key to unlock it,” Grenier said. “I think that is probably what companies are struggling with the most here.”

While not everyone is a client of CrowdStrike and its platform known as Falcon, it is one of the leading cybersecurity providers, particularly in transportation, healthcare, banking and other sectors that have a lot at stake in keeping their computer systems working.

“They’re usually risk-averse organizations that don’t want something that’s crazy innovative, but that can work and also cover their butts when something goes wrong. That’s what CrowdStrike is,” Falco said. “And they’re looking around at their colleagues in other sectors and saying, ‘Oh, you know, this company also uses that, so I’m gonna need them, too.’”

Worrying about the fragility of a globally connected technology ecosystem is nothing new. It's what drove fears in the 1990s of a technical glitch that could cause chaos at the turn of the millennium.

“This is basically what we were all worried about with Y2K, except it’s actually happened this time,” wrote Australian cybersecurity consultant Troy Hunt on the social platform X.

Across the world Friday, affected computers were showing the “blue screen of death” — a sign that something went wrong with Microsoft's Windows operating system.

But what's different now is “that these companies are even more entrenched,” Falco said. "We like to think that we have a lot of players available. But at the end of the day, the biggest companies use all the same stuff.”

Founded in 2011 and publicly traded since 2019, CrowdStrike describes itself in its annual report to financial regulators as having “reinvented cybersecurity for the cloud era and transformed the way cybersecurity is delivered and experienced by customers.” It emphasizes its use of artificial intelligence in helping to keep pace with adversaries. It reported having 29,000 subscribing customers at the start of the year.

The Austin, Texas-based firm is one of the more visible cybersecurity companies in the world and spends heavily on marketing, including Super Bowl ads. At cybersecurity conferences, it's known for large booths displaying massive action-figure statues representing different state-sponsored hacking groups that CrowdStrike technology promises to defend against.

CrowdStrike CEO George Kurtz is among the most highly compensated in the world, recording more than $230 million in total compensation in the last three years. Kurtz is also a driver for a CrowdStrike-sponsored car racing team.

After his initial statement about the problem was criticized for lack of contrition, Kurtz apologized in a later social media post Friday and on NBC's “Today Show.”

“We understand the gravity of the situation and are deeply sorry for the inconvenience and disruption,” he said on X.

Richard Stiennon, a cybersecurity industry analyst, said this was a historic mistake by CrowdStrike.

“This is easily the worst faux pas, technical faux pas or glitch of any security software provider ever,” said Stiennon, who has tracked the cybersecurity industry for 24 years.

While the problem is an easy technical fix, he said, it’s impact could be long-lasting for some organizations because of the hands-on work needed to fix each affected computer. “It’s really, really difficult to touch millions of machines. And people are on vacation right now, so, you know, the CEO will be coming back from his trip to the Bahamas in a couple of weeks and he won’t be able to use his computers.”

Stiennon said he did not think the outage revealed a bigger problem with the cybersecurity industry or CrowdStrike as a company.

“The markets are going to forgive them, the customers are going to forgive them, and this will blow over,” he said.

Forrester analyst Allie Mellen credited CrowdStrike for clearly telling customers what they need to do to fix the problem. But to restore trust, she said there will need to be a deeper look at what occurred and what changes can be made to prevent it from happening again.

“A lot of this is likely to come down to the testing and software development process and the work that they’ve put into testing these kinds of updates before deployment,” Mellen said. “But until we see the complete retrospective, we won’t know for sure what the failure was.”

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