The Inc. 5000 list is out — here's how Houston faired this year. Photo by Natalie Harms

One hundred businesses in the Houston area — including the top-ranked company in Texas — have been named to the 2024 Inc. 5000 list of the country’s fastest-growing private companies.

The 2024 Inc. 5000 ranks companies based on their percentage growth in revenue from 2020 to 2023.

Topping the list of Houston-area companies on the list is The Woodlands-based Segment HR, which notched revenue growth of 7,353 percent. That growth rate earned Segment HR the No. 32 spot on the national list and the No. 1 ranking in Texas.

Founded in 2018 by former federal HR specialist Robin Scott, Segment HR specializes in providing HR support for federal agencies. The company employs remote HR specialists in 23 states and the District of Columbia.

Here’s the list of the top 25 Houston-area companies in the 2024 edition of the Inc. 5000, including each company’s headquarters city, growth rate, and national ranking:

  • Segment HR, The Woodlands, 7,353 percent, No. 32
  • Dhanani Private Equity Group, Stafford, 3,617 percent, No. 89
  • Realty.com, Houston 3,052 percent, No. 107
  • Turtlebox Audio, Houston, 1,913 percent, No. 209
  • Amundson Group, Houston, 1,306 percent, No. 332
  • Valiant Business Lending, Houston, 1,286 percent, No. 337
  • Strategic Office Support, Houston, 1,192 percent, No. 367
  • 10xTravel, Houston, 1,102 percent, No. 401
  • NOW Insurance, Houston, 797 percent, No. 559
  • Explore Group, Houston, 796 percent, No. 562
  • Specialty1 Partners, Houston, 728 percent, No. 631
  • FINBOA, Houston, 714 percent, No. 650
  • BroCoTec, Houston, 687 percent, No. 690
  • Elite Roofing, Houston, 675 percent, No. 706
  • Patriot Bolt, Humble, 641 percent, No. 757
  • CT Sounds, Houston, 624 percent, No. 789
  • Supreme Jewelers, Friendswood, 525 percent, No. 965
  • Dometik Commercial Construction, Cypress, 477 percent, No. 1,070
  • Vape City, Houston, 459 percent, No. 1,116
  • Highlands Construction, Houston, 451 percent, No. 1,132
  • Houston Tents and Events, Houston, 438 percent, No. 1,171
  • Goebel Fasteners, Houston, 385 percent, No. 1,340
  • Field Industries, Houston, 376 percent, No. 1,366
  • Coverflex Manufacturing, Houston, 365 percent, No. 1,410

“One of the greatest joys of my job is going through the Inc. 5000 list,” says Mike Hofman, editor-in-chief of Inc. magazine. “To see all of the intriguing and surprising ways that companies are transforming sectors, from health care and AI to apparel and pet food, is fascinating for me as a journalist and storyteller.”

Elsewhere in Texas:

  • Austin-based Maev led the Austin-area pack with a growth rate of 6,734 percent, earning the No. 38 spot on the national list.
  • Dallas-based Archer Review led the Dallas-area pack with a growth rate of 5,771 percent, earning the No. 46 spot on the national list.
  • LaVernia-based Begesh led the San Antonio-area pack with a growth rate of 1,111 percent, earning the No. 396 spot on the national list.
Texas has been known for ages as a business-friendly state, but one recent report suggests it might be falling from grace. Photo via Getty Images

Texas' business friendliness gets mixed reviews from 2 recent reports

lone star standings

It’s a tale of two views of Texas’ business-friendly reputation. For the first time ever, the Lone Star State has fallen out of the top five in CNBC’s annual ranking of the best states to do business. Meanwhile, Texas tops Business Facilities’ new ranking of the best state business climates.

On July 11, CNBC released the 2023 edition of its ranking of the top states for doing business. The ranking puts Texas at No. 6, leaving the Lone Star State out of the top five for the first time since CNBC launched its study in 2007. Texas appeared at No. 5 in 2022 and No. 4 in 2021. The state finished first in 2008, 2010, 2012, and 2018.

For the second consecutive year, North Carolina leads the CNBC ranking, thus “solidifying its position as an economic powerhouse,” according to the Economic Development Partnership of North Carolina.

Despite dropping out of the top five, CNBC acknowledges that Texas remains an economic powerhouse.

Texas grabs CNBC’s No. 2 spot, behind Florida, for the best state economy. And the state witnessed year-over-year job growth of four percent through May, the highest rate of any state. Furthermore, Texas ties with California for access to capital, the study says, and snags the No. 2 spot in the workforce category.

Texas’ fall this year includes a slide from No. 15 to No. 24 in the infrastructure category. CNBC mentions the 2021 wintertime collapse of the state’s electric grid in its explanation of the nine-spot drop.

Other knocks against Texas:

  • A decline from No. 21 to No. 35 in the education category.
  • A dip from No. 12 to No. 16 in the cost-of-doing-business category.
  • A plunge from No. 14 to No. 22 for cost of living.
  • A bottom-of-the-barrel ranking in the life, health, and inclusion category, down from No. 49 last year.

In an email to CNBC, an unnamed spokesman for Gov. Greg Abbott shrugged off this year’s sixth-place showing.

“People and businesses vote with their feet, and continually they are choosing to move to Texas more than any other state in the country,” the spokesman wrote.

The spokesman cited the state’s national lead in job creation, attracting more than 280 new corporate headquarters since 2015, and its status as a perennial front-runner in economic development projects.

“Texas remains number one because people and businesses are choosing our state over any other for the unmatched competitive advantages we offer: no corporate or personal income taxes, a predictable regulatory climate, and a young, skilled, diverse, and growing workforce,” the spokesman wrote.

While Texas didn’t fare as well in this year’s CNBC study, it can brag about its 2023 designation as Business Facilities magazine’s state with the best business climate. In second place: North Carolina.

“The strength and sustained momentum of the Texas economy made the state a clear choice for [No. 1] in this year’s rankings,” Anne Cosgrove, editorial director of Business Facilities, says in a June 26 statement. “Taking the top spot this year is based not only on the impressive capital investment and job creation numbers, but also for diversity of industries, robust infrastructure, and a business-friendly regulatory and tax climate.”

Abbott took the opportunity to publicize the No. 1 ranking from Business Facilities.

“When businesses succeed, so do Texans — and our business climate ensures that Texas continues to offer world-class educational opportunities, good-paying careers to support families, and endless possibilities to prosper,” Abbott says in a news release.

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Houston startup's revolutionary automotive recycling tech to begin commercial operations

houston innovators podcast episode 267

Vibhu Sharma observed a huge sustainability problem within the automotive industry, and he was tired of no one doing anything about it.

"Globally, humans dispose 1 billion tires every year," Sharma says on the Houston Innovators Podcast. "It's a massive environmental and public health problem because these tires can take hundreds of years to break down, and what they start doing is leaking chemicals into the soil."

Today, 98 percent of all tires end up in landfills, Sharma says, and this waste contributes to a multitude of problems — from mosquito and pest infestation to chemical leaks and fire hazards. That's why he founded InnoVent Renewables, a Houston-based company that uses its proprietary continuous pyrolysis technology to convert waste tires into valuable fuels, steel, and chemicals.

While the process of pyrolysis — decomposing materials using high heat — isn't new, InnoVent's process has a potential to be uniquely impactful. As Sharma explains on the show, he's targeting areas with an existing supply of waste tires. The company's first plant — located in Monterrey, Mexico — is expected to go online early in the new year, an impressive accomplishment considering Sharma started his company just over a year ago and bootstrapped the business with only a friends and family round of funding.

"It's about 16 months or so from start to commercial operations, which is phenomenal when you consider what it takes to build and operate a chemical or petrochemical facility," Sharma says.

Currently, with the facility close to operations, Sharma is looking to secure customers for the plant's products — which includes diesel, steel, and carbon black — and he doesn't have to look too far out of the automotive industry for his potential customer base. Additionally, the plant should be net zero by day one, since Sharma says he will be using the output to fuel operations.

While the first facility is in Mexico, Sharma says they are already looking at potential secondary locations with Texas at the top of his list. Houston, where Sharma has worked for 26 years, has been a strategic headquarters for InnoVent.

"When it came to doing the research and development, we were able to work with experts in the Houston and Texas areas to test out our idea and validate it," Sharma says. "One thing that gets under appreciated about Houston is how well it's connected to the rest of the world. There are so many direct connections between Houston and Latin America, as well as Europe, Middle East, and Asia."

"I also find that the Houston ecosystem is very supportive of new companies and helping them grow," he adds.

Houston expert on what AI is changing in the workplace — and why employers need to recognize the 'human edge'

guest column

When OpenAI's GPT-4 made headlines by passing the bar exam and scoring in the top 10 percent on medical licensing tests, I noticed something fascinating: everyone focused on AI replacing professionals, but they missed the deeper story. AI isn't just disrupting work – it's exposing fundamental flaws in how we've built our entire workplace ecosystem. It's holding up a mirror to our organizations, revealing just how far we've strayed from what makes us uniquely human.

The World Economic Forum tells us 44 percent of workers' skills will need updating by 2027, but that statistic only scratches the surface. In my conversations with business leaders, I'm watching a transformation unfold in real-time. Take the accounting industry, where I've observed forward-thinking firms like Deloitte and PwC turning their accountants into strategic business advisors while other firms continue training junior staff for tasks that AI will soon handle. This isn't just a skills mismatch – it's a fundamental misunderstanding of human potential.

The challenge runs deeper than individual industries. McKinsey predicts 30 percent of hours worked globally could be automated by 2030, but I believe they're missing a crucial point. We've spent decades designing jobs around industrial-era ideals of efficiency and standardization – the very qualities that make them perfect targets for AI automation. In our obsession with measuring, standardizing, and streamlining everything, we've created workplaces that treat humans like machines rather than the complex, creative beings we are.

What's emerging is a striking paradox: as work becomes more automated, our workplace cultures are growing more disconnected. Microsoft researchers identified a "collaboration deficit" in remote work environments, with 56 percent of employees reporting a decline in workplace friendships. This cultural shift is occurring precisely when we need human connection most. During the Great Resignation of 2021, 47 million Americans quit their jobs, they weren't leaving because of salary considerations or technological inadequacies. The most common reasons cited were lack of human connection, purpose, and authentic leadership.

Yet instead of heeding this wake-up call, the rise of AI is pushing us further apart. A decade ago, the concept of "workplace family" was commonplace – now it's often dismissed as manipulative corporate rhetoric. This shift reveals a troubling blindspot in our thinking about work. Consider this: we spend more than 90,000 hours at work over our lifetime – more time than we spend with our own families – yet we're increasingly treating these relationships as purely transactional. In our rush to establish boundaries and protect ourselves from corporate exploitation, we've overcorrected, creating sterile workplaces stripped of human connection.

This timing couldn't be worse. As someone who studies the intersection of technology and workplace culture, I've observed a clear pattern: the more we automate routine tasks, the more our success depends on distinctly human qualities like trust, emotional sensitivity, and the ability to navigate complex interpersonal dynamics. Yet we're systematically dismantling the very cultural foundations that enable these qualities to flourish. It's as if we're entering a boxing match by tying one hand behind our back – at precisely the moment we need every advantage we can get.

The real crisis isn't that AI might replace jobs – it's that we're creating workplace environments that suppress the very qualities that make us irreplaceable. When we treat our colleagues as mere interfaces rather than complex human beings, we don't just damage relationships – we damage our capacity for innovation, creativity, and the kind of deep collaboration that complex problem-solving requires.

Some companies are starting to get it right. When I look at examples like IKEA, who chose to retrain their call center workers as interior design advisors rather than simply replacing them with chatbots, I see a glimpse of what's possible. They recognized something profound: you can't automate the human ability to understand what a frustrated customer really needs, or the intuition to read between the lines of what they're saying.

This is what I call the "human edge" – and it's far more nuanced than most leadership teams realize. It's the marketing manager who can sense team tension during a video call and address it before it derails a project. It's the sales representative who builds such strong relationships that clients stay loyal through market upheavals. It's the team leader who knows exactly when to push for more and when to show compassion. These aren't just nice-to-have soft skills – they're becoming our most valuable business assets.

But here's the challenge: we're still trying to measure workplace success like it's 1990. We track productivity metrics, sales numbers, and project timelines, but how do we quantify someone's ability to defuse a tense client situation? How do we measure the value of a team leader who creates an environment where people feel safe to innovate? These human capabilities – empathy, emotional intelligence, relationship building, creative problem-solving – are increasingly what separate successful companies from failing ones, yet they're nearly impossible to capture in a performance review.

When I talk to business leaders, I tell them bluntly: if a job can be reduced to a process, AI will eventually do it better. Our value lies in all the messy, human things that happen between the bullet points of a job description. Instead of asking "How many tasks did you complete?" we should be asking "How did you help your team navigate that difficult change?" Instead of training people to follow processes, we should be developing their ability to build relationships and navigate complexity.

It's time we started treating these human capabilities not as soft skills, but as core business competencies. The question isn't whether AI will change work – it's whether we'll use this moment to finally build workplaces that enhance rather than diminish our humanity.

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Nada Ahmed is the founding partner at Houston-based Energy Tech Nexus and author of Amazon Bestseller “Determined to Lead- The Disruptive Woman's Guide to Stop Playing Small and Transform your Career through Agile Leadership.”

Houston robotics co. closes series B after year of growth

money moves

Houston- and Boston-based Square Robot Inc. closed a series B round of funding last month.

The advanced submersible robotics company raised $13 million, according to Tracxn.com, and says it will put the funds toward international expansion.

"This Series B round, our largest to date, enables us to accelerate our growth plans and meet the surging global demand for our services,” David Lamont, CEO, said in a statement.

The company aims to establish a permanent presence in Europe and the Middle East and grow its delivery services to reach four more countries and one new continent in Q1 2025.

Additionally, Square Robot plans to release a new robot early next year. The robot is expected to be able to operate in extreme temperatures up to 60 C. The company will also introduce its first AI-enabled tools to improve data collection.

Square Robot launched its Houston office in 2019. Its autonomous, submersible robots are used for storage tank inspections and eliminate the need for humans to enter dangerous and toxic environments.

The company was one of the first group of finalists for the Houston Innovation Awards' Scaleup of the Year, which honors a Bayou City company that's seen impressive growth in 2024. Click here to read more about the company's growth.

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This article originally ran on EnergyCapital.