Houston ranked in the top emerging North American startup ecosystems

We're No. 4!

Houston fell on the international list of emerging startup hubs, but — when it comes to North America — Houston still ranks favorably. Photo via Getty Images

The evolution of Houston’s startup scene continues: A new report awards the region a No. 1 ranking for the robustness of early-stage funding among North America’s emerging startup ecosystems.

Policy advisory and research firm Startup Genome reports that startups in the Houston area attracted $884 billion in early-stage funding from the second half of 2020 to the end of 2022. Early-stage funding generally refers to a startup’s seed and series A rounds.

The $884 million figure puts Houston at No. 1 for early-stage funding among emerging startup ecosystems in North America and at No. 9 globally. Istanbul, Turkey, grabs the top global spot. Startup Genome characterizes the funding meccas in this ranking category as “Strong Starters.”

Startup Genome’s 2023 report on startup ecosystems emphasizes that early-stage funding “is an important indicator of potential success,” since most startups that receive series A rounds have demonstrated their potential by generating revenue, creating a minimal viable product, or being close to launching a product.

In Startup Genome’s global ranking of emerging startup ecosystems as a whole, Houston falls to No. 11 this year from No. 5 in 2022. The report doesn’t cite a reason for the drop. Copenhagen, Denmark, takes the No. 1 ranking in this category.

While its global ranking slipped, Houston still makes this year’s list of the top five emerging ecosystems in North America:

  1. Detroit (same position as last year)
  2. North Carolina’s Research Triangle (up two spots from last year)
  3. Minneapolis (down one spot from last year)
  4. Houston (down one spot from last year)
  5. Phoenix (up two spots from last year)

Startup Genome pegs the value of Houston’s startup ecosystem at $22 billion, based on startup exits and valuations from the second half of 2020 to the end of 2022.

A 2022 report from the Greater Houston Partnership noted that the Houston area is home to more than 60 organizations that foster startup growth. These include incubators, accelerators, coworking spaces, makerspaces, college and university programs, and nonprofit initiatives.

“These organizations have formed a growing web of resources assisting tech entrepreneurs across the Houston region,” says the report.

Silicon Valley once again tops Startup Genome’s list of the world’s leading startup ecosystems, followed by New York City and London (tied at No. 2), Los Angeles (No. 4), and Tel Aviv, Israel (No. 5).

Startup Genome defines a startup ecosystem as a shared pool of resources generally within a 60-mile radius of a central point, such as the city of Houston. These resources include accelerators, incubators, funding groups, coworking spaces, schools, and policymakers.

Startup Genome’s six ranking factors for ecosystems are performance, funding, talent and experience, market reach, knowledge, and “connectedness.”

“Despite current economic challenges, we are confident that, equipped with the right knowledge, entrepreneurs, policymakers, and community leaders everywhere can leverage opportunities to come together and show how innovative technologies can not only continue to drive growth and job creation, but simultaneously help save the planet and ensure a better future for everyone,” JF Gauthier, founder and CEO of Startup Genome, says in a news release. “This essential mission cannot be put on hold while we wait out rocky economic times.”

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3 Houston innovators who are making headlines right now

Featured Innovators

Editor's note: Houston innovators have kicked off the new year with big developments, from an immune-boosting nanodrug to NSF research funding and more. Below, meet three local innovators who have recently been in the headlines.

Kirsten Adam, Rice University

Kirsten Adam. Courtesy photo.

Rice University psychologist Kirsten Adam has received a $600,000 National Science Foundation CAREER Award to research how visual distractions like phone notifications, flashing alerts, crowded screens and busy workspaces can negatively impact focus—and how the brain works to try to regain it. Adam’s work will aim to clarify how the brain refocuses in the age of screens, instant gratification and other lingering distractions. The funding will also be used to train graduate students in advanced cognitive neuroscience methods, expand access to electroencephalography (EEG) and for public data sharing. Read more.

Houston lab-test startup seeks $1M for nationwide expansion

Jim Gebhart, founder and CEO of TheLabCafe.com. Courtesy photo.

Driven by the desire to knock down lab-test barriers, health care industry veteran Jim Gebhart founded Houston-based TheLabCafe.com in 2024. The platform provides access to low-cost medical tests without requiring patients to carry health insurance. It currently serves patients in six states and is poised for major U.S. expansion early this year. Read more.

Wei Gao, University of Houston College of Pharmacy

Wei Gao (center). Photo courtesy UH.

Wei Gao, assistant professor of pharmacology at the University of Houston College of Pharmacy, may have a solution to regulatory B cells (Bregs) which block the body's natural immunity and are found in pancreatic and lung cancers. Gao and her team have developed Nano-273, a dual-function drug, packaged in an albumin-based particle, that boosts the immune system to help it better fight these cancers. Read more.

Texas booms as No. 3 best state to start a business right now

Innovation Starts Here

High employment growth and advantageous entrepreneurship rates have led Texas into a triumphant No. 3 spot in WalletHub's ranking of "Best and Worst States to Start a Business" for 2026.

Texas bounced back into the No. 3 spot nationally for the first time since 2023. After dropping into 8th place in 2024, the state hustled into No. 4 last year.

Ever year, WalletHub compares all 50 states based on their business environment, costs, and access to financial resources to determine the best places for starting a business. The study analyzes 25 relevant metrics to determine the rankings, such as labor costs, office space affordability, financial accessibility, the number of startups per capita, and more.

When about half of all new businesses don't last more than five years, finding the right environment for a startup is vital for long-term success, the report says.

Here's how Texas ranked across the three main categories in the study:

  • No. 1 – Business environment
  • No. 11 – Access to resources
  • No. 34 – Business costs

The state boasts the 10th highest entrepreneurship rates nationwide, and it has the 11th-highest share of fast-growing firms. WalletHub also noted that more than half (53 percent) of all Texas businesses are located in "strong clusters," which suggests they are more likely to be successful long-term.

"Clusters are interconnected businesses that specialize in the same field, and 'strong clusters' are ones that are in the top 25 percent of all regions for their particular specialization," the report said. "If businesses fit into one of these clusters, they will have an easier time getting the materials they need, and can tap into an existing customer base. To some degree, it might mean more competition, though."

Texas business owners should also keep their eye on Houston, which was recently ranked the 7th best U.S. city for starting a new business, and it was dubbed one of the top-10 tech hubs in North America. Workers in Texas are the "third-most engaged" in the country, the study added, a promising attribute for employers searching for the right place to begin their next business venture.

"Business owners in Texas benefit from favorable conditions, as the state has the third-highest growth in working-age population and the third-highest employment growth in the country, too," the report said.

The top 10 best states for starting a business in 2026 are:

  • No. 1 – Florida
  • No. 2 – Utah
  • No. 3 – Texas
  • No. 4 – Oklahoma
  • No. 5 – Idaho
  • No. 6 – Mississippi
  • No. 7 – Georgia
  • No. 8 – Indiana
  • No. 9 – Nevada
  • No. 10 – California
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This article originally appeared on CultureMap.com.

Houston lab-test startup seeks $1M for nationwide expansion

Testing Access

Health care industry veteran Jim Gebhart knew there had to be a better way for patients to access lab services, especially those with high health insurance deductibles or no insurance at all.

“This challenge became deeply personal when a close family member developed a serious illness, and we struggled to secure prompt appointments,” Gebhart tells InnovationMap. “It’s incredibly frustrating when a loved one cannot receive timely care simply because of provider shortages or the limited capacity of traditional clinics.”

Driven by the desire to knock down lab-test barriers, Gebhart founded Houston-based TheLabCafe.com in 2024. The platform provides access to low-cost medical tests without requiring patients to carry health insurance. TheLabCafe serves patients in six states: Texas, Georgia, Louisiana, Nevada, New Mexico and Oklahoma. Gebhart, the startup’s CEO, says that by the end of March, LabCafe will be offering services in 20 more states and the District of Columbia.

Gebhart has spent more than 30 years in the lab industry. His career includes stints at Austin-based Clinical Pathology Laboratories, Ohio’s Cleveland Clinic Laboratories and Secaucus, New Jersey-based Quest Diagnostics.

“Since nearly 80 percent of disease diagnoses rely on laboratory testing, I decided to leverage my background to create a more accessible, self-directed process for individuals to order blood and urine tests on their own terms — when and where they need them,” says Gebhart.

So far, Gebhart is self-funding the startup. But he plans to seek $700,000 to $1 million in outside investments in late 2026 to support the nationwide expansion and the introduction of more services.

TheLabCafe contracts with labs for an array of tests, such as cholesterol, hepatitis, metabolic, testosterone, thyroid and sexually transmitted infection (STI) tests. A cholesterol test obtained through TheLabCafe might cost $29, compared with a typical cost of perhaps $39 to $59 without insurance.

A health care professional reviews every test, both when the test is ordered and when the results are delivered, often within 24 hours. After receiving test results, a patient can schedule a virtual visit with a health care professional to go over the findings and learn potential treatment options.

Gebhart says TheLabCafe particularly benefits uninsured patients, including those in Texas. Among the states, Texas has the highest rate of uninsured residents. U.S. Census Bureau data shows 21.6 percent of adults and 13.6 percent of children in Texas lacked health insurance in 2024.

“Uninsured patients often pay the highest prices in the health care system,” Gebhart explains. “We address this by offering straightforward pricing and convenient access to testing without requiring insurance.”

“Our rates are intentionally set to remain affordable, helping individuals take a proactive approach to their health,” he adds. “Regular testing enables people to identify potential health issues early and track their progress as they make lifestyle changes. Ultimately, you can’t measure improvement without data — and laboratory results provide that data.”

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