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:

  1. Ohio
  2. South Dakota
  3. Texas
  4. Wyoming
  5. New Mexico
  6. Arkansas
  7. Iowa
  8. Utah
  9. West Virginia
  10. 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

Short stories

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

Texas Money

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

Oil rig

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 startup lands $10M to power up electrician staffing platform

money moves

Houston-based Buildforce, which provides a tech-enabled staff platform geared toward electricians and electrical contractors, has raised a $10 million Series A round led by Houston’s Saepio Capital.

Other investors in the round include Blue Heron Capital, Revolution’s Rise of the Rest Seed Fund, S3 Ventures and Chicago Ventures.

Buildforce says the funding will help fuel its national expansion and further development of its technology.

The startup, founded in 2019, connects electricians with electrical contractors for commercial and industrial construction projects. Buildforce’s mobile app helps electricians find and carry out work, and a web app helps electrical contractors find and manage electricians.

“This financing is a major milestone in furthering our mission to help people dedicated to a career in the construction trades lead more secure and fulfilling lives,” co-founder and CEO Moody Heard said in a news release.

Buildforce focuses solely on the electrical trade within the construction sector.

Nick Graziano, principal at Blue Heron, says the shortage of electricians is intensifying as demand for electricians accelerates, driven by data center construction, infrastructure development and energy transition initiatives.

The U.S. Bureau of Labor Statistics estimates the U.S. will need to hire about 80,000 new electricians per year through 2032 to catch up with demand. According to the National Electrical Contractors Association, the U.S. is grappling with a current shortage of 50,000 electricians.

A 2026 economic report from asset manager BlackRock says the electrical trade is expected to be the single fastest-growing employment category in the U.S. labor market over the next 10 years.

“Buildforce is capitalizing on a clear opportunity in America’s generational infrastructure buildout. We believe their mission to use technology to improve lives in the construction space will allow them to make a positive long-term impact on a large and important labor market,” added Jaan Bains, managing partner at Saepio Capital.

2 Houston companies tapped to build robots for Mars & more innovation news

Trending News

Editor's note: The biggest innovation headlines in July include robots for Mars, the launch of the Texas Stock Exchange, and cancer research funding. Below are the five most-read InnovationMap articles published July 15-31, 2026:

1. Houston space companies win NASA funding to build Mars exploration robots

Two Houston-area spacetech companies have landed a portion of a $17 million award from NASA to develop robots for exploring the surface of Mars, the agency announced. Houston-based Intuitive Machines and Webster, Texas-based MEI Technologies, which does business as Aegis Aerospace, were among the seven companies selected to receive the funding from NASA's Science Transport and Robotic Innovation for Deployment and Exploration (STRIDE) initiative. Continue reading.

2. New Texas Stock Exchange officially begins trading in Dallas

Two-step aside, New York Stock Exchange and Nasdaq. The Dallas-based Texas Stock Exchange, nicknamed Y’all Street, has kicked off live trading with five stocks — and lots of Lone Star ambition. “The Texas Stock Exchange aims to revitalize competition for [stock] issuers, establish the premier venue for listings, and create a world-class trading platform for all market participants,” the exchange says. The exchange — whose Texas-influenced nickname is a nod to New York City’s Wall Street — has collected at least $275 million in investments. Continue reading.

3. Rice, Houston Methodist award $90K for cancer research projects

Rice University’s Synthesis X Center, in partnership with the Houston Methodist Neal Cancer Center, announced earlier this month the organizations would award $90,000 in seed grant funding to two projects that could help fight cancer. One would ease the pain of chemotherapy, while the other could change the way the progression of leukemia is tracked. “We’re excited to be collaborating with the Neal Cancer Center to support collaborative, novel and interdisciplinary proposals to improve cancer care and outcomes,” Han Xiao, Rice professor of chemistry and the director of the SynthX Center, said. “Together, we can achieve translational excellence.” Continue reading.

4. London AI startup selects Houston for first U.S. office after $20M raise

London-based AI firm Applied Computing has announced a $20 million Series A round and a new office in Houston. The new Bayou City office is Applied Computing’s first in the United States and part of its North American expansion. The company is known for its Orbital AI platform, which is tailored for energy operations. The funding round was led by Houston-based KBR Inc., with participation from San Francisco-based Databricks Ventures. KBR’s investment was first announced in March. Continue reading.

Report: Houston ranks among 10 most affordable metros to raise a child

Raising a child is not an easy or inexpensive feat, but a new study has determined Houston parents have the 7th lowest childrearing costs in the country. SmartAsset's new report, "Cost of Raising a Child in Major U.S. Metros – 2026 Study," calculated year-over-year changes in the annual cost of raising a child (factoring in childcare, additional housing costs, food, transportation, medical costs and other necessities) in the 48 largest U.S. metro areas. Continue reading.

Venus Aerospace adds government, C-suite leaders following $91M raise​

new leaders

Fresh off its $91 million Series B, Houston-based Venus Aerospace has made several key additions and promotions to its leadership team.

The company says its expanded team will help it deploy its high-thrust rotating detonation rocket engine (RDRE), which completed its first U.S. flight test last summer.

"We flew the world's first high-thrust RDRE in just over four years on $80 million. We believe that makes it the fastest, most capital-efficient rocket engine program in history," Sassie Duggleby, co-founder and CEO of Venus Aerospace, said in a news release. "Adding this talent to our leadership team is how we bring that same discipline to the company itself, as we scale to meet the technical needs of defense and space customers who need range and speed legacy systems can't deliver."

The key hires include:

Lane Bodian, Vice President of Public Policy

Bodian previously served as the Principal Deputy Assistant Secretary of Defense for Legislative Affairs at the Pentagon.

Dan Rebnord, Director of Federal Government Relations

Rebnord most recently served as Senior Policy Advisor to a member of the Senate Armed Services Committee and previously worked in the Office of Legislative Affairs at the Department of Defense and as Staff Director for a national security subcommittee in the House of Representatives. Rebnord and Bodian will lead Venus' work with government stakeholders.

Tom Barron, Chief Operating Officer

Barron was promoted from his role as vice president of operations for Venus Aerospace. Before his time at Venus, he served as Special Assistant to the Secretary of Defense and consulted aerospace clients at McKinsey & Company. He also served as a U.S. Army Infantry and Special Forces officer.

Nick Cardwell, Chief Product Officer

Cardwell was promoted from his role as vice president of research and development. He previously held product and technology leadership roles at VC-backed tech companies in the San Francisco Bay Area and Austin.

Venus also named Cameron Taylor as its new vice president of operations, Sarah Boland Heine as its head of communications, Matt Stohr as its head of business development, and Sheila Menz as general counsel.

The company also announced a joint technology development agreement to advance the RDRE with defense giant Lockheed Martin last week. Through the partnership, Venus and Lockheed will focus on evaluating the RDRE's propulsion architecture in defense systems, specifically for precision fires applications where weapons are designed to accurately strike targets at long distances.

Lockheed Martin Ventures, the investment arm of the aerospace and defense contractor, is an investor in Venus Aerospace.

"Lockheed Martin is focused on rapidly delivering advanced capabilities that strengthen deterrence and provide decisive advantages for the warfighter," Tim Cahill, president, Lockheed Martin Missiles and Fire Control, said in a news release. "Our collaboration with Venus Aerospace allows us to evaluate a promising propulsion technology and determine how it can be integrated into future precision fires solutions. Efforts like this help accelerate innovation, reduce risk and shorten the path from emerging technology to operational capability."

Venus' RDRE is expected to enable vehicles to travel four to six times the speed of sound from a conventional runway and is about 15 percent more efficient than traditional alternatives, according to the company.

Venus says the reusable, affordable and scalable RDRE is designed with a "common propulsion architecture" that can work for multiple industries and mission types. The company has previously estimated that the hypersonic market is projected to surpass $12 billion by 2030.

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