University of Houston lab reports breakthrough in cancer-detecting technology

making moves

This uniquely Houston technology is an AI program that allows scientists to understand the functions of cells by evaluating cell activation, killing, and movement. Photo via Getty Images

T-cell immunotherapy is all the rage in the world of fighting cancer. A Houston company’s researchers have discovered a new subset of T cells that could be a game changer for patients.

CellChorus is a spinoff of Navin Varadarajan’s Single Cell Lab, part of the University of Houston’s Technology Bridge. The lab is the creator of TIMING, or Time-lapse Imaging Microscopy In Nanowell Grids. It’s a visual AI program that allows scientists to understand the functions of cells by evaluating cell activation, killing, and movement.

Last month, Nature Cancer published a paper co-authored by Varadarajan entitled, “Identification of a clinically efficacious CAR T cell subset in diffuse large B cell lymphoma by dynamic multidimensional single-cell profiling.”

“Our results showed that a subset of T cells, labeled as CD8-fit T cells, are capable of high motility and serial killing, found uniquely in patients with clinical response,” says first author and recent UH graduate Ali Rezvan in Nature Cancer.

Besides him and Varadarajan, contributors hail from Baylor College of Medicine/Texas Children’s Hospital, MD Anderson Cancer Center, Kite Pharma, and CellChorus itself.

The team identified the CD80-fit T cells using TIMING to examine interactions between T cells and tumor cells across thousands of individual cells. They were able to integrate the results using single-cell RNA sequencing data.

T-cell therapy activates a patient’s own immune system to fight cancer cells, but not every patient responds favorably to it. Identifying CD8-fit cells could be the key to manufacturing clinical response even in those for whom immunotherapy hasn’t been effective.

“This work illustrates the excellence of graduate students Ali Rezvan and Melisa Montalvo; and post-doctoral researchers Melisa Martinez-Paniagua and Irfan Bandey among others,” says Varadarajan in a statement.

Earlier last month, CellChorus recently received a $2.5 million SBIR grant. The money allows the company to share TIMING more widely, facilitating even more landmark discoveries like CD8-fit cells.

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CellChorus, a biotech startup operating out of the University of Houston Technology Bridge, has secured fresh funding. Photo via Getty Images

Houston biotech startup secures $2.3M grant

cha-ching

They say it’s all in the timing. For CellChorus, it’s all in the TIMING. That’s Time-lapse Imaging Microscopy In Nanowell Grids. TIMING is a visual AI program that evaluates cell activation, killing and movement, which allows scientists to better understand how cells function.

The technology is important to the development of novel therapies in the realms of oncology, infectious diseases, and countless other disorders and diseases. By allowing scientists to observe those maladies at their roots, it will enable them to create, and ultimately deliver new medications and other therapies faster, at lower cost, and with a higher success rate.

CellChorus is a spinoff of the Single Cell Lab at the University of Houston. Part of UH’s Technology Bridge, CEO Daniel Meyer connected with co-founder and leader of Single Cell Lab, Navin Varadarajan, through co-founder Laurence Cooper.

“The company had been established, but there were limited operations,” recalls Meyer during a phone call with InnovationMap.

That was the fall of 2020. Now, the team has just announced a $2.3 million SBIR (Small Business Innovation Research) Fast-Track grant from the National Institute of General Medical Sciences.

“This funding will support development of a product offering that builds on the success of our early access laboratory,” Cooper said in a press release. “As the next frontier of cellular analysis, dynamic single-cell analysis will increase the impact that immunotherapies have in improving the lives of patients.”

Meyer is based in the Bay Area, but the rest of the team is in Houston. Meyer has a proven track record as an investor and early stage entrepreneur in life sciences companies, including work as COO of Genospace, which was acquired by HCA Healthcare.

Meyer says that what attracted him to CellChorus was a combination of a clear need for the technology and the fact that it was “very well validated.“

“Developers of immunotherapies need better functional data earlier so that they can develop and deliver better therapies,” he explains.

Another aspect of its appeal was the fact that more than 10 publications featured data from the TIMING platform.

“We’ve had both large and small biopharmas publish data,” says Meyer. “That’s important as well because it shows there’s applicability in both nonprofit and for-profit research.”

Though Meyer himself doesn’t currently live in Houston, he recognizes its importance to CellChorus. He says that it can be difficult for an early stage company to find appropriate lab space, so Technology Bridge was of exceptional importance for CellChorus. Since opening the lab a year and a half ago, Varadarajan and his team have been busy.

“Example projects we have completed include understanding mechanism of action for cell therapy products, selecting lead candidates for T cell engagers, identifying biomarkers of response to cell therapies, and quantifying potency and viability for cell therapy manufacturing technologies,” says Meyer.

And now, CellChorus is collaborating with leaders in the industry.

“These include top-25 biopharmaceutical companies and promising venture-backed biotechnology companies, as well as leading not-for-profit research institutions,” says Meyer in a press release. It’s clear that the TIMING is right for CellChorus to excel.

The UH Tech Bridge just received fresh federal funding to expand its space for innovation. Photo via UH.edu

University of Houston receives nearly $3M grant for Tech Bridge upgrades

funds granted

The University of Houston's Technology Bridge, which focuses on providing research and development space to UH-affiliated startups and entrepreneurs, has received funding to work on some upgrades.

UH received $2.875 million from the U.S. Department of Housing and Urban Development through a Community Project Funding award was included in an appropriations bill by U.S. Rep. Sylvia Garcia, who represents the region where the Tech Bridge resides.

“Congresswoman Garcia was instrumental in making this funding a reality and we are incredibly grateful for her support and for promoting the innovation ecosystem in the Houston region,” says University of Houston President Renu Khator in a news release. “The Technology Bridge is a growing community of innovators that supports the overall economic health of Houston while creating new opportunities in academia and industry."

Most of the grant will be put toward the UH Industry & International Innovation Hub, or UHI3, a rising center that will provide space for industry partner engagement, an investor and mentoring studio, startup space, training rooms, and innovation event space. The center will also have satellite office for UH’s Small Business Development Center.

The rest of the funding — $475,000 of the grant — will establish The Deck Innovation & Coworking Center, which will include eight new private offices and mail lockers for startups. According to UH, the project is expected to increase capacity by more than 20 companies.

“I am proud to have secured these funds for the University of Houston Technology Bridge. Through this investment, our community will grow stronger, and our economy will be bolstered,” says Rep. Garcia in the release. “Engagement between universities and industry is a priority as we prepare our students to be the workforce of tomorrow in a rapidly evolving world.

"The University of Houston is a world-class institution deserving of our full support, and these federal dollars are proof of that," she continues. "I am proud to represent so many UH students and faculty in Congress and will always fight to get them the resources they need to be on the cutting edge of innovation.”

Currently, the 15-building Tech Bridge and its 31,000 square feet of incubator space houses more than 20 small companies and startups that provide internship and learning opportunities for UH students, along with several federally funded research centers and institutes. The new funding will allow for the Tech Bridge to expand its impact.

“This funding will result in stronger academic and external partnerships, promote key, nationally relevant research and strengthen industry connections for our students,” says Ramanan Krishnamoorti, vice president of energy and innovation at UH. “But most importantly, it will provide an economic catalyst for startups and small businesses in the underserved communities located near the University of Houston.”

UH has launched its Tech Map, which visualizes startup and innovation activity across the city. Photo via Getty Images

University of Houston launches interactive map of the city's innovation ecosystem

introducing tech map

The greater Houston area spans 9,444 square miles — an area larger than the entire state of New Jersey — and the question was never if Houston's sprawl was going to affect interaction between startups, resources, and opportunities, but how to overcome these physical challenges with digital solutions. The latest of which has launched out of the University of Houston's Technology Bridge.

The Tech Map — an interactive, embeddable visualization that takes data about startups and other innovation players and compiles it into a map of entrepreneurial activity in the Houston area — has officially launched with hundreds of startups represented already.

"This kind of tool — it really tells you where innovation is happening, it's not just in the startup development organizations," says Lindsay Lewis, executive director of communications for the UH Division of Research. "It's amazing to see that it's happening all over the city."

The tool, which is free to embed and available to anyone, is already live on Houston Exponential's homepage and the city of Houston's Innovation Portal. It's comprised of data submitted by startup development organizations, self-submitted information, and research by the Tech Bridge's team.

To be represented on the map, click here.


Lewis stresses the importance of creating the tool in a collaborative way, which is why bringing on partners and their databases was so key. The tool isn't designed in Cougar Red or predominantly feature UH-based startups or anything. The Tech Map isn't meant to rock the boat of what any other organization is doing, rather just visually represent the goings on.

"For us, it was a balance between trying to show the story of Houston and where innovation is happening and aggregating, but what we didn't want to do was be a replacement. We wanted this to be a resource for an individual starting point," says Chris Taylor, executive director for the Tech Bridge. "The biggest challenge for most people is you really don't know where to start."

This year has been one for digital tools focused on better portraying Houston's innovation ecosystem. This summer, Houston Exponential launched the HTX TechList to virtually connect startups, mentors, investors, and other movers and shakers in Houston. The two entities are collaborative — HTX TechList's data is even involved in the Tech Map.

"There was a need for connection," Taylor says. "Since 2013 when I got here, that's always been a challenge and a hurdle. How do we connect all these different stakeholders in a way that's meaningful."

While the map is launched and ready to be used, it's only the beginning for it as it grows its data and adds new features.

"We're not done with this map — this is just the 1.0 version," Lewis says. "We're meeting to talk about next-step functionalities and where we are going to take it."

UH has been ranked among the top schools for new patents. Photo courtesy of University of Houston

University of Houston scores spot on top schools in the world for new patents

put a patent on it

A Houston school has ranked on a global list that recognizes new utility patents issued. University of Houston tied for No. 75 on the list with 39 utility patents issued in 2019.

The list is created by the National Academy of Inventors and the Intellectual Property Owners Association based on data from the U.S. Patent and Trademark Office. UH has made the list every year for the past five years.

"The rankings show that UH continues to make a major contribution to the innovation enterprise on the U.S. and global stage," says Amr Elnashai, vice president/vice chancellor for research and technology transfer at UH.

"To be in the top 100 universities worldwide for U.S. patents emphasizes that the UH research enterprise has been successfully steered towards impactful research with the potential to address societal challenges."

A utility patent, known as a patent for invention, is the most commonly referred to type of patent and regards the creation of a new or improved product, process, or machine.

Two Texas schools ranked above UH on this year's list. The University of Texas ranked at No. 3 with 276 utility patents and Texas A&M University came in a few spots ahead of UH at No. 65 with 44 utility patents issued.

UH tied with Drexel University in Philadelphia, and the University of California scored the top spot by far with 631 utility patents filed last year. All in all, the ranking finds that 7,873 U.S. utility patents were issued in 2019, which is up from 1,046 patents in 2018.

UH's Technology Bridge was revamped in 2018 to focus on cultivating innovation and new technologies as they develop from the lab and into the marketplace.

The Chancellor's Technology Bridging Fund will provide grants to UH faculty to help them bring their research and ideas into reality. Natalie Harms/InnovationMap

UH launches $2 million fund for faculty innovators to help them bring their ideas to the market

Funding the faculty

The University of Houston Technology Bridge exists to help transition university research and ideas into the marketplace, and now the UH System has gone one step further to aid in that transition process.

UH has announced a $2 million fund for faculty inventors who then could use the grants — estimated to range between $25,000 to $75,000 — to bring their invention to the commercialization stage. The fund, called the Chancellor's Technology Bridging Fund, was revealed on July 18.

"University faculty are working to solve some of the most critical problems of the day, from energy and the environment to medicine," says Renu Khator, chancellor of the UH System and president of UH, in a release. "It often requires an additional boost to get technologies from the lab to the commercial arena, and this fund is designed to help our faculty take that leap."

According to the release, UH officials plan to give out anywhere from four to 10 grants each year for the next five years.

The grants are intended to aid in the prototyping or product testing process, says Tom Campbell, executive director of the Office of Technology Transfer and Innovation in the UH Division of Research. He adds that usually that ideas in that stage of growth aren't usually granted basic research funding.

"The Technology Bridging Fund will fill a gap. It's really difficult to find funding at this early stage of development, and as a consequence, a lot of innovative concepts sit on the shelf," Campbell says in the release.

The fund directly aligns with the institution's goal of taking these UH-originated ideas, companies, and technologies and introducing them to the world, where they can be used by other companies.

"It's a way to de-risk these technologies and attract external interest," Campbell says in the release. "We want to move people and ideas closer to the market. Having access to this type of funding to do that can be extremely valuable."

Last year, UH transitioned its Energy Research Park into the Technology Bridge to better facilitate the growth for its innovators and research. The organization also works to bring in corporations that are looking to expand in Houston, and, earlier this year, two organizations set up shop in the Tech Bridge.

Earlier this year, a new ranking, new ranking, published by the National Academy of Inventors and the Intellectual Property Owners Association, puts UH at No. 88 among the world's top 100 universities for patent activity in 2018. And, according to Campbell, UH will continue this patent growth.

"As the UH research portfolio grows and the medical school starts up, we would continue to anticipate a strong IP portfolio going forward for UH," Campbell tells InnovationMap in a previous article.

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Money talks: Top Houston innovation grant and gift news of 2025

Year in Review

Editor's note: As 2025 comes to a close, we're looking back at the stories that defined Houston innovation in 2025. Below, we recap the biggest Houston innovation grant funding and gift news of the year:

Houston scores $120M in new cancer research and prevention grants

The Cancer Prevention and Research Institute of Texas has doled out 73 more grants to health care systems and companies in the state. Carter Smith/Courtesy of MD Anderson

In November 2025, the Cancer Prevention and Research Institute of Texas granted more than $120 million to Houston organizations and companies as part of 73 awards issued statewide. The funds were part of nearly $154 million approved by the CPRIT's governing board earlier that month, bringing the organization's total investment in cancer prevention and research to more than $4 billion since its inception.

TMC lands $3M grant to launch cancer device accelerator

Recent funding from CPRIT will help launch the new Accelerator for Cancer Medical Devices. Photo via TMC

In September 2025, a new business accelerator at Houston’s Texas Medical Center received a nearly $3 million grant from the Cancer Prevention and Research Institute of Texas. The CPRIT grant, awarded to the Texas Medical Center Foundation, will help launch the Accelerator for Cancer Medical Devices. The accelerator will support emerging innovators in developing prototypes for cancer-related medical devices and advancing them from prototype to clinical trials.

Houston foundation grants $27M to support Texas chemistry research

Houston's Welch Foundation has awarded more than 80 grants to support chemical research and careers in Texas for 2025. Photo via Getty Images

Houston-based The Welch Foundation doled out $27 million in its June 2025 round of grants for chemical research, equipment and postdoctoral fellowships. $25.5 million was allocated for the foundation's longstanding research grants, which provide $100,000 per year in funding for three years to full-time, regular tenure or tenure-track faculty members in Texas. The foundation made 85 grants to faculty at 16 Texas institutions for 2025.

Houston Methodist receives $25M gift, renames department of medicine

Houston Methodist will rename its department of medicine the Houston Methodist Charles W. Duncan Jr. Department of Medicine. Photo courtesy Houston Methodist.

In August 2025, Houston-based nonprofit The Duncan Fund awarded a $25 million gift to Houston Methodist's department of medicine to establish new endowed fellowships, streamline complex care and bring artificial intelligence into the fold to develop more personalized treatment plans. In turn, the health care system announced that it would rename the department the Houston Methodist Charles W. Duncan Jr. Department of Medicine.

Houston foundation doles out $700K for Texas chemical research

The Welch Foundation has awarded funding through two of its newest grant programs. Photo via Getty Images.

Houston-based The Welch Foundation issued $700,000 in additional funding in August 2025 to support chemical research through two of its newest grant programs. The foundation named the recipients of its Welch eXperimental (WelchX) Collaboration Retreat and Pilot Grants and the Welch Postdoctoral Fellows of the Life Sciences Research Foundation Grants. The WelchX grants were awarded to teams of two Texas researchers who presented "innovative and collaborative ideas" addressing challenges in the clean energy space, according to the foundation.

CPRIT grants $22M to bring top cancer researchers to Houston

CPRIT recently granted $93 million to 61 organizations and scientists, including many in Houston, to advance cancer research. Carter Smith/Courtesy of MD Anderson

In June 2025, it was announced that several prominent cancer researchers would be coming to the Houston area thanks to $22 million in grants awarded by the Cancer Prevention and Research Institute of Texas (CPRIT). The biggest CPRIT recruitment grant — $6 million — went to genetics researcher Jean Gautier. Gautier, a professor of genetics and development at Columbia University’s Institute for Cancer Genetics, joined the University of Texas MD Anderson Cancer Center to continue his research.

Baylor, Rice win $500,000 to launch humanities-driven health AI center

A new center being developed by Baylor College of Medicine and Rice University aims to develop ethically responsible and trustworthy AI for health care. Photo via Getty Images.

In August 2025, Baylor College of Medicine and Rice University announced they had been awarded a $500,000 grant from the National Endowment for the Humanities (NEH) to create the Center for Humanities-based Health AI Innovation (CHHAIN).

Baylor center receives $10M NIH grant to continue rare disease research

BCM's Center for Precision Medicine Models has received funding that will allow it to study more complex diseases. Photo via Getty Images

Baylor College of Medicine’s Center for Precision Medicine Models received a $10 million, five-year grant from the National Institutes of Health in November 2025, which will allow it to continue its work studying rare genetic diseases. The Center for Precision Medicine Models creates customized cell, fly and mouse models that mimic specific genetic variations found in patients, helping scientists to better understand how genetic changes cause disease and explore potential treatments.

Houston billionaire benefactors will donate almost entire fortune to charity

Pictured: Nancy and Richard Kinder. Photo by Michelle Watson/Catchlight Group

Houston billionaires Rich and Nancy Kinder announced plans to donate an astounding 95% of their multi-billion-dollar wealth to charities. The news came as the Kinder Foundation announced an $18.5 million expansion project for Emancipation Park in the heart of Third Ward. That historic park was founded by slaves in 1872.

Innovative Houston research leads our top health tech news of 2025

year in review

Editor's note: As 2025 comes to a close, we're looking back at the stories that defined Houston innovation this year. The Bayou City continued to grow as a health tech hub, bringing in a multibillion-dollar pharmaceutical development, playing home based to startups developing innovative treatment options and attracting leading researchers and professionals to the city. Here are the 10 most-read Houston health tech stories of the year:

Houston Nobel Prize nominee earns latest award for public health research

Dr. Peter Hotez with Dr. Maria Elena Bottazzi. Photo courtesy of TMC

Houston vaccine scientist Dr. Peter Hotez is no stranger to impressive laurels. In 2022, he was nominated for a Nobel Peace Prize for his low-cost COVID vaccine.

His first big win of 2025 was this year’s Hill Prize, awarded by the Texas Academy of Medicine, Engineering, Science and Technology (TAMEST). Hotez and his team were selected to receive $500,000 from Lyda Hill Philanthropies to help fund The Texas Virosphere Project, which aims to create a predictive disease atlas relating to climate disasters. Rice University researchers are collaborating with Hotez and his team on a project that combines climate science and metagenomics to access 3,000 insect genomes. The goal is to aid health departments in controlling disease and informing policy. Continue reading.

U.S. News ranks Houston hospital No. 1 in Texas for 14th year in a row

Houston Methodist is once again the top hospital in Texas. Photo via Houston Methodist

U.S. News & World Report's 2025 rankings of the best hospitals in Texas prove that Houston is in good hands.

The esteemed Houston Methodist Hospital was rated the No. 1 best hospital in Texas for the 14th consecutive year, and the No. 1 hospital in the metro area. Eleven more Houston-area hospitals earned spots among the statewide top 35. Continue reading.

Eli Lilly to build $6.5B pharmaceutical factory at Generation Park

Eli Lilly is expected to bring a $6.5 billion manufacturing facility to Houston by 2030. Rendering courtesy Greater Houston Partnership.

Pharmaceutical giant Eli Lilly and Co. plans to build a $6.5 billion manufacturing plant at Houston’s Generation Park. More than 300 locations in the U.S. competed for the factory.

The Houston site will be the first major pharmaceutical manufacturing plant in Texas, according to the Greater Houston Partnership. Lilly said it plans to hire 615 full-time workers for the 236-acre plant, including engineers, scientists and lab technicians. The company will collaborate with local colleges and universities to help build its talent pipeline. Continue reading.

How a Houston company is fighting anxiety, insomnia & Alzheimer’s through waveforms

Nexalin develops non-invasive devices that help reset networks in the brain associated with symptoms of anxiety and insomnia. Photo via Getty Images.

Houston-based Nexalin Technology is taking a medicine-free approach to target brain neurologically associated with mental illness. The company's patented, FDA-cleared frequency-based waveform targets key centers of the midbrain. Delivered via a non-invasive device, the treatment gently stimulates the hypothalamus and midbrain, helping to “reset networks associated with symptoms” of anxiety and insomnia.

Nexalin’s proprietary neurostimulation device moved forward with a clinical trial that evaluated its treatment of anxiety disorders and chronic insomnia in Brazil this year and enrolled the first patients in its clinical trial at the University of California, San Diego. Continue reading.

Houston doctor aims to revolutionize hearing aid industry with tiny implant

Houston Methodist's Dr. Ron Moses has created NanoEar, which he calls “the world’s smallest hearing aid.” Photo via Getty Images.

“What is the future of hearing aids?” That’s the question that led to a potential revolution.

Dr. Ron Moses, an ENT specialist and surgeon at Houston Methodist, is the creator of NanoEar, which he calls “the world’s smallest hearing aid.” NanoEar is an implantable device that combines the invisibility of a micro-sized tympanostomy tube with more power—and a superior hearing experience—than the best behind-the-ear hearing aid. Continue reading.

Houston scores $120M in new cancer research and prevention grants

The Cancer Prevention and Research Institute of Texas doled out 73 more grants to health care systems and companies in the state in November. Carter Smith/Courtesy of MD Anderson

The Cancer Prevention and Research Institute of Texas granted more than $120 million to Houston organizations and companies as part of 73 new awards issued statewide this fall. The funds are part of nearly $154 million approved by the CPRIT's governing board, bringing the organization's total investment in cancer prevention and research to more than $4 billion since its inception. A portion of the funding will go toward recruiting leading cancer researchers to Houston. Continue reading.

Digital Health Institute's new exec director aims to lead innovation and commercialization efforts

Pothik Chatterjee was named executive director of Rice University's and Houston Methodist's Digital Health Institute, effective May 1. Photo courtesy Rice University.

The Digital Health Institute, a joint venture between Rice University and Houston Methodist, appointed Pothik Chatterjee to the role of executive director this summer. Chatterjee’s role is to help grow the collaboration between the institutions, but the Digital Health Institute already boasts more than 20 active projects, each of which pairs Rice faculty and Houston Methodist clinicians. Once the research is in place, it’s up to Chatterjee to find commercial opportunities within the research portfolio. Those include everything from hospital-grade medical imaging wearables to the creation of digital twins for patients to help better treat them. Continue reading.

Innovation Labs @ TMC set to launch for early-stage life science startups

Innovation Labs @ TMC will open next year at the TMC Innovation Factory. Photo courtesy JLABS.

The Texas Medical Center announced its plans to launch its new Innovation Labs @ TMC in January 2026 to better support life science startups working within the innovation hub. The 34,000-square-foot space, located in the TMC Innovation Factory at 2450 Holcombe Blvd., will feature labs and life science offices and will be managed by TMC. The expansion will allow TMC to "open its doors to a wider range of life science visionaries." Continue reading.

6 Houston health tech startups making major advancements right now

Tatiana Fofanova and Dr. Desh Mohan, founders of Koda Health. Photo courtesy Koda Health.

The Health Tech Business category in our 2025 Houston Innovation Awards honored innovative startups within the health and medical technology sectors. Six forward-thinking businesses were named finalists for the 2025 award, ranging from an end-of-life care company to others developing devices and systems for heart monitoring, sleep apnea, hearing loss and more. Continue reading or see who won here.

Houston students develop cost-effective glove to treat Parkinson's symptoms

Rice University students Emmie Casey and Tomi Kuye used smartphone motors to develop a vibrotactile glove. Photo by Gustavo Raskosky/ Courtesy Rice University.

Two Rice undergraduate engineering students have developed a non-invasive vibrotactile glove that aims to alleviate the symptoms of Parkinson’s disease through therapeutic vibrations. Emmie Casey and Tomi Kuye developed the project with support from the Oshman Engineering Design Kitchen (OEDK). The team based the design on research from the Peter Tass Lab at Stanford University, which explored how randomized vibratory stimuli delivered to the fingertips could help rewire misfiring neurons in the brain—a key component of Parkinson’s disease. Continue reading.

Houston hailed as one of America's 10 best cities for startups

Startup Report

Houston's favorable economic climate is enticing new opportunities for entrepreneurship and growth, and now the city is being hailed as the 7th-best U.S. city for starting a business.

The recognition comes in CommercialCafe's recent "Best Cities for Startups" report, published December 10. The study analyzed large U.S. cities across two population categories – cities with more than 1 million residents and cities with populations between 500,000 and 1 million residents. The report analyzed relevant metrics such as office or coworking costs, Kickstarter funding success, startup density, and survival rates, among others.

Across the biggest U.S. cities with over a million residents, Phoenix, Arizona landed on top as the No. 1 best place to start a new business.

The report's findings revealed 10.6 percent of all businesses in Houston are startups that have been active for less than a year. These new businesses have a survival rate of 64.5 percent, meaning just under two-thirds of all startups in the city will still be running up to five years after they were first established.

Over the last five years, the number of new businesses established in Houston has grown nearly 15 percent. CommercialCafe said new businesses in cities with high startup growth rates tend to "attract top talent" which can eventually lead to securing "vital funding for expansion."

Independent professionals – also known as freelancers – are another crucial resource for new businesses that may need "specialized services" for a fixed amount of time, the report said. Houston's freelance workforce has grown about 9 percent from 2019-2023, and the analysis found there were 97,295 freelancers working in Houston in 2023, compared to 89,528 in 2019.

"Generally, cities in the South and Southwest have experienced strong growth during the surveyed period, in contrast to California cities like Los Angeles and San Diego, where the share of freelancers and gig workers has either stagnated or slightly declined," the report said.

Houston boasts the second-cheapest office space rent nationally, the report found. The average asking price for a 1,000-square-foot workspace (for five employees) in the city added up to $27,124 annually. For startups that want greater flexibility for their workers, the annual cost for a coworking space for the same number of employees in Houston came out to $13,200, which is the fourth-most affordable rate in the U.S.

Other Texas cities with attractive economic environments for startups

Texas, as a whole, is one of the strongest states for starting a new business. Other than Houston, San Antonio (No. 2), Dallas (No. 3), and Fort Worth (No. 4) were also recognized among the top 10 best places to start a business in the category of U.S. cities with more than a million residents.

Austin topped a separate ranking of best cities to start a business with 500,000 to 1 million residents.

"Specifically, the Texas capital was the frontrunner for indicators that looked at the overall share of startups within the local economy, as well as growth rates in five years (2019 to 2023)," the report said. "On top of that, Austin also topped the rankings for its percentage of college-educated residents and its consulting firms, which provide vital support for burgeoning enterprises."

The top 10 best cities to start a new business are:

  • No. 1 – Phoenix, Arizona
  • No. 2 – San Antonio, Texas
  • No. 3 – Dallas, Texas
  • No. 4 – Fort Worth, Texas
  • No. 5 – Jacksonville, Florida
  • No. 6 – San Diego, California
  • No. 7 – Houston, Texas
  • No. 8 – Philadelphia, Pennsylvania
  • No. 9 – Chicago, Illinois
  • No. 10 – Los Angeles, California
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This article originally appeared on CultureMap.com.

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