Houston named among the most affordable cities for startups

Start up at a low cost

Houston has affordablility going for its startups. Photo by Zview/Getty Images

Houston has been long known for its great quality of life and low cost of living, and a new study found that when it comes to startup companies specifically, the greater Houston area has a lot to offer.

Clever, a real estate tool and blog, identified Houston as the sixth best metro in the United States for affordability for startups. The study looked into startup density, investment, the education level of the local population, and the cost of living, and more within the top 50 most populated cities in the U.S.

The resulting ranking had all four of Texas' major metros in the top 10. Austin ranked No. 1 overall, Dallas-Fort Worth ranked at No. 3 (after Atlanta), and San Antonio-New Braunfels came in at No. 8. The study ranked each city based on its density of startups, its growth, investment in business, and its cost of living.

At No. 6 for growth, Houston ranked the highest out of its Texas counterparts, but San Antonio and Houston share the ranking of No. 6 for investment.

"Considering Houston's metro is tied with San Antonio's for the highest average investment in small business, and the proximity to great food, the Gulf of Mexico coast, and attractions like Minute Maid Park and the NASA Space Center, we would definitely suggest considering starting a business here," reads the report.

The Houston area touts a startup density of over 25 percent, which earns it 12th place in that particular category. The report finds that Houston has 6.89 million residents across 8,265.8 square miles and 6.54 percent of Houstonians work at a startup, while 2.8 percent are self employed.

When it comes to GDP and education, Houston has a lot of bragging rights. The Houston area's GDP is reported to be $490 billion, which is the 7th highest in the country, according to the Bureau of Economic Analysis.Meanwhile, almost a quarter of the region's population has a bachelor's degree or higher.

Last month, InnovationMap reported that Inc. 5000 named Houston among its hottest startup cities, citing the three-year revenue growth of Houston's companies that made it on to the Inc. 5000 list. Just before that ranking, Business Facilities magazine named Houston the fourth best startup ecosystem in the U.S., as well as the fourth best city for economic growth potential. Similarly, Commercial Cafe recently named Houston a top large city for early stage startups.

TMCx is looking for members for its ninth cohort. Courtesy of TMCx

Houston software company raises $16.3 million, TMCx opens applications, and more innovation news

Short stories

From rounds closing to accelerator applications opening, there's a lot of Houston innovation news that might not have reached your radar. Here's a roundup of short stories within tech and innovation in the Bayou City.

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Houston software company closes a $16.3 million Series A

Innovapptive raised its round lead by a New York-based firm. Getty Images

Innovapptive, a software-as-a-service company with clients in industrial industries, announced it closed on a $16.3 million Series A investment led by New york-based Tiger Global Management LLC. The company will use the funds for continued global growth. As of the raise's completion, company's valuation is now more than $65 million.

"We are connecting the enterprise by providing a platform that improves real-time data collaboration and communications between the field and back office. The communications and collaboration data are captured and converted into executive insights for continuous workforce optimization," says Sundeep Ravande, CEO and co-founder of Innovapptive, in a press release. "This additional capital will allow us to accelerate our strategy and development to transform the digital experience of the industrial worker to help increase revenues and margins for our customers."

TMCx opens its medical device cohort applications

The deadline to apply for the next TMCx cohort is May 24. Courtesy of TMC

The Texas Medical Center has announced that TMCx's 2019 medical device cohort applications are now open. The deadline to apply is May 24, and selected companies will be notified by June 21. The program will run from August 5 to November 8th. For more information, click here.

Nesh closes Seed round of funding

Aristos Ventures lead the round for the Houston energy startup. Courtesy of Nesh

The Siri of oil and gas, Hello Nesh Inc, has raised its first round of funding thanks to seed funding from Aristos Ventures and a LOOP contract with Equinor Technology Ventures. The funding will be used for new hires and expansion plans.

"Securing LOOP funding from ETV and seed funding from Aristos provides us with a unique mix of strategic knowledge and domain expertise, coupled with investment experience in digital technologies, artificial intelligence, and SaaS," says co-founder and CEO of Nesh, Sidd Gupta in a release. "This will enable us to further build Nesh's petrotechnical and natural language understanding and scale our business in the North America market."

ETV has chosen not to disclose the dollar amount of the round, however last fall Gupta at the Texas Digital Summit, Gupta announced that the company was seeking to close a $800,000 seed round. Read more about the company here.

Shell Oil Co. gives $2.5M to fund research, inform public policy at Rice University’s Baker Institute

Shell and Rice University have entered a partnership. Courtesy of Rice University

Following a $2.5 million commitment from Shell Oil Co., the Center for Energy Studies at Rice University's Baker Institute for Public Policy has announced five-year research program to study the global energy system — including the policies, regulations, geopolitical forces, market developments and technologies.

"We are grateful for Shell's commitment to advancing the study of critical energy issues affecting our region, the nation and the world," says Baker Institute Director Edward Djerejian in a release. "This partnership with Shell furthers our mission to provide unbiased, data-driven analysis of factors that will shape our energy future with the aim of engaging policymakers, corporate leaders and the general public with the results."

Texas improves its ranking as an innovative state

The Lone Star State is moving on up as an innovative state. Getty Images

Texas is slowly but surely moving on up as an innovative state. According to Bloomberg's newest U.S. State Innovation Index, Texas is the 17th best state for innovation. The study factors in six metrics: research and development intensity, productivity, clusters of companies in technology, "STEM" jobs, populous with degrees in science and engineering disciplines, and patent activity. Last year, the study found Texas at the No. 19 spot.

Texas' score was 60.1 — which is just over a point's difference from being in the top 15. It's also worth noting that the Lone Star State is the highest ranked in the south.

"What is most important is the construction and catalyzation of super vibrant advanced industry sectors and clusters in a state," says Mark Muro, a senior fellow at Brookings, a think tank in Washington DC, to Bloomberg. "Commercialization has not been a top priority of universities in the heartland, especially in the South."

Houston companies take home Napier Rice Launch Challenge prizes

Abbey Donnell's startup, Work & Mother, won the award for the Best Alumni team at the H. Albert Napier Rice Launch Challenge at Rice University. Courtesy of Work & Mother

On April 4, 10 teams competed in the H. Albert Napier Rice Launch Challenge at Rice University. Here are the Rice University alumni- and student-led companies that won awards.

LilySpec took home $2,500 as the Audience Favorite award winner.
CardStock Exchange won $12,500 in the Best Undergraduate category.
WellWorth walked away with $12,500 as the Best Graduate team winner.
Abbey Donnell, founder of Work & Mother, took home first place the Best Alumni category — along with $12,500.
UrinControl was the Grand Prize winner and scored $20,000.

BBL reverse pitch contest extends deadline

The deadline for a new pitch competition with ExxonMobil and BBL Ventures has been extended. Getty Images

BBL Ventures, which announced its reverse pitch competition with ExxonMobil earlier this year, has extended the challenge deadline to May 13.

"BBL Ventures is excited to be working with a forward-thinking partner like ExxonMobil, engaging the external innovation ecosystem is a key step in advancing the energy industry's continued success," says Patrick Lewis, managing partner of BBL Ventures, in a release. Full details for the competition are available here.

Startup Grind Houston is calling all female founders

Calling all female founders. Getty Images

Houston's Startup Grind chapter announced a female founder pitch event on May 2 at the TMC Innovation Institute. The organization is calling for teams to pitch at the event. The deadline to apply is April 23 at 5 pm.

Click here to nominate yourself or someone else for the pitch.

Sysco invites UH tech students to first-ever UHacks Hackathon competition

Sysco and AWS are teaming up for a hackathon. Getty Images

Houston-based Sysco Corp. — along with Amazon Web Services — is hosting its first-ever, university student-led hackathon event. The one-day competition takes place on Friday, April 19, from 8 am to 5 pm at the new Houston office of AWS ( 825 Town & Country Lane, 10th floor).

The student teams with focus on four hypothetical themes in Sysco's business landscape, including a spend management platform enhancing the customer shopping experience, identifying locally grown foods, proof of purchase technology, and a "best before" portal to streamline expiration data.

Is Texas still full of wildcatters — but for tech and innovation? Some say yes, but with one caveat. Photo by Scott Halleran/Getty Images

Houston's innovation ecosystem channels the wildcatter's spirit — but with one major difference

Tech boom

Historically, Texas has been a land of opportunity, and that might ring true now more than ever since the state's oil boom. As Houston's innovation ecosystem grows and develops, are these entrepreneurs reminiscent of the wildcatter days of the early 1900s? Well, sort of.

"Wildcatting is supposed to be really wild. You're supposed to go out in the field and drill some holes and hope that you find something," says Marc Nathan, vice president of strategy at Egan Nelson in Austin. "Truth is, we're a lot more deliberate than that these days."

Wildcatting and deliberate innovation development were the topics of discussion at a panel in Austin during SXSW. The panel, which was hosted by Rice Business and Texas Monthly, was comprised of three panelists with Houston ties: Gabriella Rowe, CEO of Station Houston, Lawson Gow, CEO and founder of Houston-based The Cannon, and Nathan, who, though based in Austin now, was born and raised in Houston and has done business in town too.

Wildcatting new industries
All three panelists agreed that the entrepreneurial nature of the wildcatters is alive and well within Texas entrepreneurs, just now spread apart multiple industries. Among all of the major Texas cities — or DASH, as Nathan calls it, Dallas, Austin, San Antonio, and Houston — each has its specialty. Austin tends to specialize in consumer-facing technology, Dallas has a hold on B-to-B and transportation, and San Antonio has the military.

For Houston, which is most known for its energy, life sciences, and space technology, has some new territories it's growing in, says Rowe, from cybersecurity to sports technology. And all of these different industries seem to work together, which is encouraging to see for Rowe.

"That's the secret sauce that Houston has in many ways," Rowe says.

This ability to specialize is also what's also special about Houston. Rather than trying to compete with Austin and its consumer technology — Gow gave an example of a startup focusing on a doggy dating app — Houston is doing its own thing.

"What I love about Houston is we're trying to solve big problems," Gow, who is the son of InnovationMap's parent company's CEO, says. "We're not going to be the consumer software capital of the world and, for the most part, we're not going to mess around with doggy dating apps."

Houston's problems to overcome
One of the challenges Houston faces as an innovation ecosystem is access to funds. According to Nathan, putting money into tech is just not Houston investors are used to doing.

"Houstonians invest in the ground, with oil and gas, and on the ground, with real estate, but not in the cloud," Nathan says.

The reason being, Gow says, is investors tend to put money into industries they know, and there's a need for educating these investors in new industries.

"To compare to Austin, more people in Austin have tech startups that have been successful and they turn around and invest in what they know, which is tech startups," Gow says. "There's a generational effect."

Another challenge Houston faces is competition — but not with other Texas cities or the rest of the country. Competition between startups and accelerators for resources has the potential to hinder the city's growth as an ecosystem.

"We are fighting for very scarce resources — and it's not just money," Nathan says. "It's also talent."

Texas Monthly's chief innovation officer, Tim Taliaferro, moderated the panel. Natalie Harms/InnovationMap

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Report: These 10 jobs earn the biggest salary premiums in Texas

A move to Texas bolsters earnings for some, and a new SmartAsset study has revealed the top professions where the median annual earnings in the Lone Star State exceed the national median.

The report, "When it Pays to Work in Texas — and When It Doesn’t," published in April, analyzed over 700 occupations to determine which have the biggest "Texas premium" — meaning jobs where the price-adjusted median annual pay in Texas most exceeds the national median for the same occupation — and which jobs have the biggest “Texas penalty,” where the statewide median annual pay falls furthest below the national median. Salaries were sourced from the U.S. Bureau of Labor Statistics (BLS) and adjusted for regional price parity.

According to the report's findings, geoscientists have the biggest "Texas premium" and make a $159,903 median annual salary. Texas' salary for geoscientists is 61 percent higher than the national median for the same position (after adjusting for regional price parity).

"Texas’s large petroleum industry helps explain why employers in the state retain so many geoscientists," the report's author wrote. "In fact, the Lone Star State is home to more geoscientists than any other state except California."

There are more than 3,600 geoscientists working in Texas, SmartAsset said.

These are the remaining top 10 occupations with the biggest "Texas premiums" (salaries are price-adjusted):

No. 2 – Commercial pilots: $167,727 median Texas earnings; 37 percent higher than the national median
No. 3 – Sailors: $67,614 median Texas earnings; 36 percent higher than the national median
No. 4 – Aircraft structure assemblers: $83,519 median Texas earnings; 35 percent higher than the national median
No. 5 – Ship captains: $108,905 median Texas earnings; 27 percent higher than the national median
No. 6 – Nursing instructors (postsecondary): $100,484 median Texas earnings; 26 percent higher than the national median
No. 7 – Tax preparers: $63,321 median Texas earnings; 25 percent higher than the national median
No. 8 – Chemists: $104,241 median Texas earnings; 24 percent higher than the national median
No. 9 – Health instructors (postsecondary): $128,680 median Texas earnings; 22 percent higher than the national median
No. 10 – Engineering instructors (postsecondary): $129,030 median Texas earnings; 22 percent higher than the national media

The careers where Texas workers earn less

SmartAsset said an editor is the Texas profession where workers earn the furthest below the median for the same occupation elsewhere in the U.S. Not to be confused with film and video editors, BLS defines editors as those who "plan, coordinate, revise, or edit written material" and "may review proposals and drafts for possible publication."

The study found editors make a price-adjusted median wage of $29,710, which is 61 percent lower than the national median for the same position, and there are nearly 8,200 editors in Texas.

It's worth noting that the salaries for editors may be skewed by the fact that there are not major publications in rural areas of Texas, and other professions may also have financial deviations for similar reasons.

Several healthcare jobs also appear to have the worst penalties in Texas compared to elsewhere in the country. Home health aides are the second-worst paying professions in the state, making a median wage of $24,161.

"More home health aides work in Texas than in nearly any other state, with only California and New York employing more," the report said. "However, the more than 300,000 Texans in this occupation earn median annual pay that is about 31 percent below the national median, after adjusting for regional price parity.

SmartAsset clarified that pay penalties are not consistent "across the board" for other healthcare occupations in Texas.

"For physical therapy assistants, occupational therapy assistants, and postsecondary nursing instructors, Texas may be an especially strong place to work, with these occupations offering 'Texas premiums' of between 17 percent and 26 percent," the study said.

These are the remaining top 10 occupations where median annual earnings in Texas fall furthest below the national median for the same occupation:

No. 3 – Cardiovascular technicians: $49,382 median Texas earnings; 27 percent lower than the national median
No. 4 – Semiconductor processing technicians: $38,295 median Texas earnings; 25 percent lower than the national median
No. 5 – Tutors: $30,060 median Texas earnings; 25 percent lower than the national median
No. 6 – Control and valve installers: $56,496 median Texas earnings; 24 percent lower than the national median
No. 7 – Mental health social workers: $46,109 median Texas earnings; 23 percent lower than the national median
No. 8 – Clinical psychologists: $74,449 median Texas earnings; 22 percent lower than the national median
No. 9 – Producers/directors: $65,267 median Texas earnings; 22 percent lower than the national median
No. 10 – Interpreters/translators: $46,953 median Texas earnings; 21 percent lower than the national median

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This article originally appeared on CultureMap.com.

Houston rises in 2026 ranking of best U.S. cities to start a business

Best for Biz

Houston has reaffirmed its commitment to a business-friendly environment and now ranks as the 26th best large U.S. city for starting a business in 2026. The city jumped up eight places after ranking 34th last year.

WalletHub's annual report compared 100 U.S. cities based on 19 relevant metrics across three key dimensions: business environment, access to resources, and costs. Factors that were analyzed include five-year business survival rates, job growth comparisons from 2020 and 2024, population growth of working-age individuals aged 16-64, office space affordability, and more.

Florida cities locked out the top five best places in America for starting a new business: Tampa, Orlando, Jacksonville, Hialeah, and St. Petersburg.

Houston's business environment ranked as the 19th best in the country, and the city ranked 51st in the "business costs" category. However, the city lagged behind in the "access to resources" ranking, coming in at No. 72 overall. This category examined metrics such as Houston's working-age population growth, the share of college-educated individuals, financing accessibility, the prevalence of investors, venture investment amounts per capita, and more.

"From the Gold Rush and the Industrial Revolution to the Internet Age, periods of innovation have shaped our economy and driven major societal progress," the report's author wrote. "However, the past few years have been particularly challenging for business owners in the U.S., due to factors such as the COVID-19 pandemic, the Great Resignation and high inflation."

Earlier this year, WalletHub declared Texas the third-best state for starting a business in 2026, and several Houston-area cities have seen robust growth after being recognized among the best career hotspots in the U.S. Entrepreneurial praise has also been extended to five local companies that were named the most innovative companies in the world, and six powerhouse female innovators that made Inc. Magazine's 2026 Female Founders 500 list.

Texas cities with strong environments for new businesses
Multiple cities in the Dallas-Fort Worth Metroplex can claim bragging rights as the best Texas locales for starting a new business. Dallas ranked highest overall — appearing 11th nationally — and Irving landed a few spots behind in the 16th spot. Arlington (No. 23), Fort Worth (No. 30), Plano, (No. 35), and Garland (No. 65) followed behind.

Only six other Texas cities earned spots in the report: Austin (No. 24), Lubbock (No. 36), Corpus Christi (No. 39), San Antonio (No. 64), El Paso (No. 67), and Laredo (No. 76).

Austin tied with Boise, Idaho and Fresno, California for the highest average growth in the number of small businesses nationally, while Corpus Christi and Laredo topped a separate list of the U.S. cities with the most accessible financing.

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This article originally appeared on CultureMap.com.

Houston humanoid robotics startup taps Amazon veteran to lead manufacturing

new hire

Persona AI, a Houston-based startup that’s developing AI-powered humanoid robots for manufacturers and other businesses, has hired Brian Davis as head of global manufacturing.

Davis previously guided teams at Amazon Robotics and Dell Technologies. During his tenure at Amazon Robotics and Dell, both companies saw major increases in manufacturing volumes within a four-year period. Davis oversaw manufacturing, supply chain, logistics, quality assurance and real estate.

“Davis steps into this role [at Persona AI] as industrial enterprises face an urgent and accelerating challenge: a structural shortage of capacity for welding, fabrication, and heavy maintenance in dynamic environments, precisely the high-value, high-risk tasks where humanoid robots can deliver the greatest impact,” according to a company news release.

Davis comes aboard as Persona AI, founded in 2024, seeks to meet demand generated by deals with HD Hyundai and POSCO Group to make humanoids for shipyards and steel plants, and by a pilot program with the State of Louisiana.

“Now is the perfect time to accelerate our production capabilities as we rapidly close the gap between what’s possible in the lab versus what’s driving real commercial value,” Davis says.

“Building industrial-rated humanoid robots and production-deployable AI is only one piece of the puzzle,” he adds. “Producing humanoids at scale will require systematic supply chain management, stringent quality control, and building the playbook for safe, high-volume manufacturing. That’s what I’m here to build.”

Last year, Persona AI raised more than more than $10 million in pre-seed funding. The company also named a new head of commercial strategy in March.

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