Texas named a top state for businesses to survive the pandemic

data point

The Lone Star State's mix of rural and urban settings — and other factors — has set it up for success as the economy reels from the COVID-19 pandemic. Photo by gguy44/Getty Images

A new study has found that businesses in Texas are in a good position to weather the storm that is the COVID-19 pandemic and subsequent economic challenges.

The FitSmallBusiness.com ranking factored in various metrics from overall financial health and emergency reserves to even how consumers feel about their state's ability to bounce back. The researchers weighted five metrics: Economic and financial Health (20 percent); least economic stressors (25 percent); emergency reserves and relief (25 percent); COVID-19 rates and health care infrastructure (20 percent); and consumer confidence (10 percent).

Based on the analysis, Texas ranked as the third best state equipped to survive the economic fallout from COVID-19. Texas ranked No. 1 in the study's emergency reserves and relief category, since the Lone Star State has the second-highest CARES Act endowment at over $10 billion.

"The state also possesses adequate economic reserves and offers decent compensation for the unemployed. When these factors are combined with a relatively low cost of living and what is considered to be a pro-business environment, Texas just might be 'the case study for economic recovery from the COVID-19 recession,'" the report reads.

In contrast, New York is ranked at the bottom of the list at No. 50 due to its disproportionate amount of cases and high density in New York City. The top 10 states are as follows:

Ohio
South Dakota
Texas
Wyoming
New Mexico
Arkansas
Iowa
Utah
West Virginia
Nebraska

Midwestern states did particularly well in the report due to their low density and lack of tourism. Texas too shares these elements, as well as boasting a balance between city and rural environments. Even though Texas is the second-most populous state in the United States, it ranks as No. 24 for density. The Lone Star State's economy was factored in as well with it having the second largest economy by GDP in the U.S. Plus, the state's economy represents a variety of industries — like agriculture, aeronautics, and computer technology.

"So while the state has indeed taken its share of bumps from the current recession, it seems that it has enough resources to weather the storm," according to the report.

The study, which was published June 22, used data that came from sources such as the U.S. Department of Labor, Moody's Analytics, the U.S. Census, the Tax Foundation, the New York Times, and the Center on Budget and Policy Priorities.

The new programming geared at idea-stage startups has officially commenced at TMC Innovation Institute. Courtesy of TMCx

New TMCx program launches, C-level execs named at Houston startups, and more innovation news

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There's been a lot of recent Houston innovation news, and you might have missed something. Keep up to date with all the news happening among startups and technology in Houston in this innovation news roundup.

If you know of innovation-focused news happening, email me at natalie@innovationmap.com with the details and subscribe to our daily newsletter that sends fresh stories straight to your inboxes every morning.

TMCalpha premieres

Courtesy of TMC

The Texas Medical Center has long counseled budding medical entrepreneurs in various capacities through its TMC Innovation Institute, but wanted to introduce programming specifically for early-stage companies. That's how TMC alpha was born and announced at the most recent TMCx Demo Day.

The program officially launched on July 18 and will host meetups on the third Thursday of every month.

"Over the past five years, TMC Innovation has blossomed into a global proving ground for healthcare startup companies from across the world, and we could not be more pleased with the myriad ways in which the ecosystem here has expanded in nature," says TMC Innovation Director Tom Luby in a release. "That being said, we realized that TMC Innovation needed to do more for the local innovation community and offer ample resources to support homegrown talent from within the confines of the largest medical city in the world. With TMC alpha, the hope is to connect anyone with a fledgling healthcare idea to the TMC Innovation network and create a two-way channel of meaningful dialogue."

Innowatts scores extra funding and names new C-level exec

Photo via innowatts.com

Houston-based AI-enabled analytics company, Innowatts, is growing in more ways than one. The company, which is fresh off an over $18.2 million Series B fundraise, added move funds and a new C-level executive.

Veronorte, a South American venture capital firm backed by one of the largest utilities in Colombia, became an additional investor in the company with an undisclosed contribution. Meanwhile, Eric Danziger joined the company as its new chief revenue officer. He will be tasked with the growth and sales of Innowatts' eUtility™ product.

"As the utility grid becomes more complex with the proliferation of electric vehicles and distributed generation," says Danziger in a release, "utility companies have to adapt to the data generated and needs of their consumers to manage these complex requirements."

Startup snags free office space prize

Photo courtesy of The Cannon

Shoot, a digital marketplace that simplifies the photographer and videographer booking process, has scored free office space in the newly opened Cannon building after receiving the second annual Insperity Innovation Scholarship.

The company was co-founded by Simbai Mutandiro and Alina Merida and has already launched its beta platform. The company will release its next version of the platform soon.

"Our relationship with The Cannon and the Insperity Innovation Scholarship are part of our initiative to help startups become successful more quickly by connecting and collaborating with like-minded individuals," says Larry Shaffer, Insperity senior vice president of marketing and business development, in a release. "We congratulate Shoot on receiving this scholarship and wish the co- founders continued success in furthering their entrepreneurial dream."

The other three finalists in the contest — Delfin, Social Chains, and SOTAOG — will receive open desk memberships at The Cannon for six months.

Houston falls low on the list of cities booming with growing private companies

Getty Images

When it comes to the major metros with the biggest jump in private businesses with over $1 million in revenue, Houston is the last on the list for Texas cities. LendingTree looked at the data, and, between 2014 and 2016, Houston only saw an increase of 4.9 percent in million-dollar business growth. This earned the Bayou City a No. 32 ranking across the country.

Dallas was slightly ahead of Houston with 5.2 percent growth and a No. 29 rank. Meanwhile, Austin earned the top spot with 15.1 percent growth. San Antonio, the only other Texas metro in the study, ranked No. 12 with 9 percent growth.

Nesh forms partnership

Photo courtesy of Thomas Miller/Breitling Energy

The Woodlands-based WellDatabase has announced a partnership with Nesh, an AI-optimized tool that's like the Siri or Alexa of oil and gas.

"The technology is amazing and we are thrilled to work with the Nesh team," writes John Ferrell, CEO of WellDatabase, in a blog post. "The integration allows Nesh to run real-time queries against WellDatabase. Users can ask a multitude of questions and get instant answers. They can also work with the Nesh team directly to train and build new questions and workflows."

Rice University and Cognite join forces

Courtesy of Cognite

When Oslo, Norway-based Cognite announced its dual U.S. headquarters in Houston and Austin, it had plans to engage universities from the get go. Now, the company, which specializes in data software with industrial applications, has officially created a partnership and internship program with Rice University.

"This partnership illustrates Cognite's commitment to attracting top people to build the most talented software engineering team in the world," says John Markus Lervik, Cognite co-founder and CEO, in a release. "Cognite solves some of the most complex problems related to industrial digitalization. To do that, we need the best minds, so partnering with Rice University was a natural choice."

Rice students are currently in Norway this summer working for Cognite as a part as the inaugural program.

The Cannon teams up with Thompson & Knight

Courtesy of The Cannon

Houston-based law firm Thompson & Knight has officially signed on to provide resources for The Cannon startups in a strategic partnership between the two companies.

"Thompson & Knight is pleased to partner with Houston-based entrepreneurs who are building the innovation, services, and technological platforms of the very near future," says Mark M. Sloan, managing partner of Thompson & Knight, in a news release. "We will offer our experience in the issues common to startup businesses, including intellectual property, technology, corporate, labor, and other areas of counsel that will help further the goals of these pioneering companies."

The law firm will have an office in The Cannon's recently opened building in West Houston.

Solugen names president

Getty Images

In May, Houston-based chemicals company, Solugen Inc., closed a $32 million round. Now, the company has put a portion of that money to work to hired the newest executive on the team. Jason Roberts, who has a decade of chemicals and oil and gas experience, has joined Solugen as president.

"What I found most compelling about Solugen was the company's quick successes and their overarching goal of decarbonizing the chemicals industry," says Roberts in a release. "The company's fundamental chemistry and technologies have created products that no one in the industry currently has. I am excited to join this young company's fast moving team at such a significant time in its history and look forward to helping scale their innovative products and services."

The Lone Star State stands out for being the best to start a business. Photo by gguy44/Getty Images

Texas named the No. 1 state to start a business

Startup friendly

The entrepreneurial spirit is best cultivated by Texans, apparently. The Lone Star State comes in first place for being business-friendly to startups and their founders in a recent study.

Out of all 50 states, Texas reigns supreme in WalletHub's report of the best and worst states to start a business. Texas earns a score of 61.05, which factored in business environment, access to resources, and business costs. Of those factors, the state ranked No. 1 for business environment, No. 11 for access to resources, and No. 30 for business costs.

Zeroing in on some key factors, Texas was recognized for having the fourth highest average growth in small businesses and the fifth highest total spending on incentives as its percent of gross domestic product. Texas also has the fourth longest work week by hours.

Texas edged out No. 2 Utah by a mere 0.1 points. The rest of the top five includes Georgia, North Dakota, and Oklahoma, respectively. At the bottom of the rankings are Connecticut, Hawaii, New Hampshire, New Jersey, and Rhode Island.

"In looking at the main criteria WalletHub used to determine their best startup state ranking — namely business environment, access to resources and business costs — it's clear why Texas would come in at No. 1," Susan Davenport, senior vice president of economic development for the Greater Houston Partnership, tells InnovationMap. "These are all areas where the Lone Star State consistently excels and why Texas continues to attract both entrepreneurs and existing companies across industry sectors."

Houston recently received a similar distinction from the personal finance site. In May, WalletHub used 19 key metrics — such as five-year business-survival rate and office-space affordability — to name Houston the No. 13 best city for starting a business out of 100 of the largest U.S. metros. In that study, a total of seven Texas cities made the top 20.

"Here in Houston, we're seeing growth in tech-related startups in particular and an increasing momentum of activity to support growth stage companies including the development of The Ion and the TMC3 commercialization campus, and the opening of The Cannon start-up hub, among several others," Davenport adds.

Texas also has a favorable business climate for female entrepreneurs in particular, one study found. Texas moved up to No. 1 from No. 8 in 2018 in this report by Fit Small Business that published in January.

Meanwhile, while known for being best for business, Texas is far from the top ranking in a study that analyzed the states' overall capacity. Texas came in at No. 38 in U.S. News & World Report's best states rankings for 2019, but even this report recognized Texas' business climate.

"Texas' diverse industrial base has drawn many businesses and workers in recent decades because of light regulation, low taxes and a low cost of labor," U.S. News says. "Entrepreneurs are particularly attracted to Austin, which emerged as a major player in the technology industry in the 1990s. Its 'South by Southwest' is one of the preeminent national tech conferences."

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This article was updated to include the comment from GHP.

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Houston named the No.1 emerging city for biopharma in inaugural report

Biopharma Leader

Houston is ranked No.1 on the first-ever Next 10 U.S. Biopharma Clusters report published by Genetic Engineering & Biotechnology News (GEN).

The report, which ranks the best emerging hubs for life science activities, considered patents, NIH funding, lab space, venture capital investments, and the number of jobs in regions in cities, states and “clusters” across the U.S. GEN touts Houston as the top city for the biopharma industry due to a surge in funding, job creation, medical innovations and startup success.

Here’s how Houston ranked in the report’s different categories;

No. 1 for NIH funding with 2,262 awards totaling more than $1.25 billion
No. 2 for emerging regions for jobs, with 28,000 jobs
No. 2 for lab space, with roughly 8 million square feet in the market
No. 6 for patents, with 2,760 patent families

According to BioHouston chairman Jeff Wade, Houston secured half a billion dollars in venture capital funding in 2025 and 2026 to date.

The report called out major biopharm news out of Houston in the last few months, including Bristol Myers Squibb selecting Houston for its $1 billion, 600,000-square-foot manufacturing site and Eli Lily selecting Houston for its $6.5 billion, 236-acre manufacturing site. Both facilities will be located within Generation Park, a 4,300-acre, master-planned commercial district near Lake Houston.

Houston startups like CrossBridge Bio and Duracyte were also mentioned in the report. CrossBridge, which develops antibody-drug conjugates for cancer, was acquired by Eli Lily in April for $300 million. Duracyte, a “living pharmacy” company, was launched out of Rice University’s biotech venture studio RBL LLC this spring and is backed by up to a $45 million Advanced Research Projects Agency for Health (ARPA-H) award.

The startup is working to commercialize its Hybrid Advanced Molecular Manufacturing Regulator (HAMMR) technology, a rechargeable, implantable device that can sense biological signals, monitor tumor environments and adjust therapeutic output in real time.

“There’s a lot of great talent, but the unique advantage that we have is we are able to benefit from a lot of unique clinical infrastructure and clinician insights,” Omid Veiseh, Duracyte co-founder and managing partner of RBL LLC, told GEN. “There are a lot of clinicians here who are eager to partner on investigator-initiated trials.”

The report also touted Houston’s Texas Medical Center, home to the University of Texas MD Anderson Cancer Center and Baylor College of Medicine, and international partnerships like the recently expanded TMC Korea BioBridge.

Other cities to make the list include:

No. 2 Minneapolis-St. Paul
No. 3 Denver-Boulder
No. 4 St. Louis
No. 5 Dallas-Fort Worth

States to make the list include:

No. 1 Ohio (including Cincinnati, Cleveland, and Columbus)
No. 2 Indiana (including Indianapolis)
No. 3 Florida (including Jacksonville and Miami-Fort Lauderdale)
No. 4 Georgia (including Atlanta and Augusta)
No. 5 Wisconsin (including Madison and Kenosha)

Regional state clusters to watch include:

Phoenix
Pittsburgh
Greater Richmond, Virginia
South Carolina
Utah

See the full report here.

Major Texas-based airlines ground humanoid robots as passengers

In The Air

Two major airlines based in Texas are drawing a hard line between human and humanoid: American Airlines and Southwest Airlines won’t permit human-like or animal-like robots to board flights as passengers.

Fort Worth-based American and Dallas-based Southwest recently adopted bans on robotic passengers after two incidents in which human-like robots joined flesh-and-blood passengers on Southwest flights.

In May, Aaron Mehdizadeh, owner of The Robot Studio rental company in Dallas, was heading from Las Vegas to Dallas Love Field with 3.5-foot-tall Stewie, according to CBS News Texas. Rather than shipping Stewie as cargo, Mehdizadeh bought the robot its own seat using a type of ticket often purchased for fragile items such as wedding dresses and equipment.

But because Stewie was technically a carry-on item, the robot wasn’t supposed to occupy a seat, according to eWeek. Crew members wound up disconnecting Stewie’s battery and relocating the robot to a window seat before takeoff.

Mehdizadeh pushed back on Southwest’s stance regarding the battery, telling CBS News Texas that Stewie’s power supply is a standard battery that’s similar to one for a laptop.

Stewie isn’t the only robot making mischief in the skies. In May, a 70-pound, human-like robot named Bebop caused a stir on a Southwest flight from Oakland, California, to San Diego.

The robot prompted a nearly one-hour flight delay after crew members realized it violated restrictions on large carry-ons and raised concerns about the battery, San Francisco TV station KGO reported. Dallas-based Elite Event Robotics owns Bebop.

Southwest seized Bebop’s lithium-ion battery, but the airline did let Bebop take the San Diego-bound flight.

Southwest’s new robot policy prohibits human-like or animal-like robots from riding in an airplane cabin or as checked baggage, no matter their size or purpose. All other robots, including toys, must fit in a carry-on size bag and comply with battery restrictions, the airline says.

In a statement sent to CultureMap, a Southwest spokeswoman says the airline “has taken a strong stance on this issue and has led the U.S. airline industry with our battery policy.”

“The robot policy is a further evolution of a [safety] journey we have been on for several months. This move was not in response to any single incident,” the spokeswoman adds. “To eliminate confusion, the policy applies to all similar devices, regardless of size.”

Lithium-ion batteries can overheat, catch on fire, or explode on airplanes.

American’s new robot policy, which took effect Monday, August 17, is similar to Southwest’s. The policy prohibits human-like and animal-like robots from sitting in a purchased seat, being stored in an overhead bin or traveling as checked baggage. The ban applies to U.S., international, and regional flights.

“While there have been no known events involving this type of robot on any American flight, this policy was developed following a comprehensive review of safety risks associated with these devices, including the large lithium-ion batteries that power them,” the airline said in an internal memo obtained by the View From the Wing travel blog.

American gate agents have been told not to allow a passenger accompanied by a robot to board a plane or to let a robot travel as a checked item, the memo say.

If a robot is discovered after check-in, American employees are supposed to follow the Federal Aviation Administration’s “undeclared dangerous goods” procedures. These procedures cover hazardous shipments like lithium-ion batteries, explosives, flammable liquids, and compressed gases that lack required warning labels or shipping documents.

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This article originally appeared on CultureMap.com.

Texas A&M, UH rise in global rankings of universities attracting the most attention

visibility report

Houston and Texas universities had a strong showing on the 2026-27 Global University Visibility (GUV) Rankings compiled by D.C.-based higher ed market research firm American Caldwell.

Texas A&M ranked No. 6 on the list—the top rank of any Texas university. Meanwhile, the University of Houston ranked No. 52, a 15-spot jump from its previous ranking.

The GUV rankings rate colleges that garner the most global attention via news coverage, social media influence, website traffic, YouTube views, and general public interest. GUV evaluated over 1,200 universities across 193 United Nations-recognized countries.

Texas A&M, with its No. 6 global ranking, also claimed the No. 5 spot among U.S. institutions. The university climbed 21 spots from its previous rank.

“News mentions were a driver of Texas A&M’s movement in this year’s rankings, and earned media remains one of the strongest signals of relevance,” Tim Doty, associate vice president for earned media at Texas A&M, said in a news release. “Much of that visibility begins with our faculty and research experts, whose work helps explain, solve and give context to issues people care about. When Texas A&M experts appear in news stories about research, discovery, national security, agriculture, health, engineering, service and the future of Texas, audiences see the university not only as large or well known, but as useful, relevant and necessary to the conversations shaping our state and country.”

In the “Public Interest” category, UH also claimed a top 10 global ranking at No.6. UH touts its overall GUV rankings success to Guggenheim Fellowships, MacArthur “Genius” grants, National Academy membership, studies like researchers breaking the superconductivity temperature record, and success on the football field and basketball courts.

“Across the board, there is no question that the University of Houston is a brand on the rise,” Shawn Lindsey, interim vice president for marketing and communications, said in a news release. “People are seeing our story, hearing about the amazing things happening at UH and actively seeking us out to learn more. We are seeing it in record-high student applications, we are seeing increases in trademark licensing revenue, our faculty are earning global accolades. It’s an exciting time to be a Houston Cougar.”

Other Texas institutions to make the top 250 on the list include:

No. 22 The University of Texas at Austin
No. 104 University of Texas at Dallas
No. 159 Texas Tech University
No. 178 Rice University
No. 191 University of North Texas
No. 248 Texas State University

For the fourth year in a row, Harvard University secured the top spot on the list, followed by MIT, Stanford University and Purdue University. The University of Oxford was the top non-U.S. institution at No. 5.

See the full list here.

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