Houston named among the best large cities for early-stage startups

Start up here

Houston came in at No. 5 for best cities — with populations of more than 1 million residents — for startups. Photo by Tim Leviston/Getty Images

When it comes to cities with over a million residents, Houston's at the front of the pack, according to a new study. But, there's a catch.

Last month, Commercial Cafe rounded up the 20 top cities for early-stage startups and entrepreneurs, and Houston missed the list. Now, the commercial real estate blog has broken down the data into three top ten lists based on city size, and Houston has claimed the No. 5 spot on the list of cities with 1 million or more residents.

The study took into account education, affordability, startup financial success (calculated from Kickstarter data), millennial population growth, among other aspects. Houston in particular was called out for being the most affordable major metro and for having the third best startup survival rate.

"The city is home to the fourth-largest percentage of millennial residents out of the total population, and saw the fourth-largest growth in number of millennial residents," the report reads. "Houston ranked fifth in group for the share of population holding a bachelor's degree or higher in a tech discipline. The rate at which the number of such residents has increased placed Houston seventh for tech education growth."

Outpacing Houston on the larger cities were Dallas at No. 1, San Diego, California, at No. 2, San Jose, California, at No. 3, and Los Angeles at No. 4. San Antonio also made the list, coming in at No. 7.

Texas cities were sprinkled throughout the two smaller cities list. Austin came in at No. 1 for the cities with 500,000 to 1 million residents, as well as claimed the top spot in the best cities regardless of population. Fort Worth ranked as No. 10 on this mid-sized city list.

On the small cities list for metros with less than 500,000 residents, Arlington came in at No. 6 for its location and startup density. The city also made the top 20 regardless of size, sliding into the No. 19 spot. Dallas, which topped the large cities list, came in at No. 15 on the size agnostic list for top startup cities.

Recently, Texas was named a top city to start a company by personal finance website, WalletHub, based on similar statistics.

"[I]t's clear why Texas would come in at No. 1," Susan Davenport, senior vice president of economic development for the Greater Houston Partnership, says responding to that study. "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."
The new partnership will result in Capital Factory-branded space in The Cannon's new 120,000-square-foot innovation hub, which is expected to open next month. Courtesy of The Cannon

The Cannon and Capital Factory announce new Houston-based partnership

Teaming up

Two major players in the Texas innovation ecosystem are teaming up for a partnership in Houston.

The Cannon, which is expected to open its 120,000-square-foot space later this summer, announced a partnership with Austin-based Capital Factory, a tech accelerator. The partnership will give Capital Factory space in The Cannon to provide remote mentorship and local programming for its Houston-based companies for six months throughout the cohort.

This alliance allows for more collaboration between Houston companies and mentors and resources across the state.

"The Texas Startup Manifesto is about leveraging the entire Texas startup ecosystem while honoring the unique contributions of each city and region," says Gordon Daugherty, co-founder and president of Capital Factory, in a release. "We can't deliver on that vision in Houston without the help of local partners like The Cannon and their collaborative attitude really sets them apart."

Capital Factory recently entered the Dallas market with the opening of a location in partnership with The Dallas Entrepreneur Center.

This new office space will result in two new hires for Capital Factory — both will be responsible to advancing the Texas-wide program. A venture associate position will be created to recruit and educate local companies. The associate will also find potential investments for the accelerator's venture fund, which has already invested in several Houston startups, including Apartment Butler, Groupraise, Hypergiant, and Zenus Biometrics in 2018.

The second new hire will be a mentor coordinator to seek out new mentors — not necessarily in Houston, as mentors can access startups through a software platform.

Capital Factory's space in The Cannon will be a branded office complete with Cisco Webex video conferencing equipment, according to the release, so that local Capital Factory startups can connect to mentors across the state. As an added plus, the entrepreneurs can also have access to The Cannon community, and vice versa. Capital Factory will also host events at The Cannon.

"We're thrilled that this partnership with Capital Factory will connect Houston startups with more resources," says Lawson Gow, founder and CEO of The Cannon, in the release. "These companies will have a chance to join an incredibly valuable network, and in return, Capital Factory will have the opportunity to invest in Houston's booming startup scene and diverse talent pool." (Gow is the son of InnovationMap's CEO.)

Houston startups stand to benefit from this partnership, according to Aaron Knape, co-founder and CEO of Houston-based sEATz, who says he's already seen the benefit of the alliance.

"The Cannon and Capital Factory's partnership has proven to be a game-changing resource for us, giving our team access to Capital Factory's incredible Accelerator platform while allowing our company to remain in Houston and continue to receive all of the benefits of The Cannon's growing entrepreneurial community," Knape says in the release.
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Houston makes play to score soccer innovation

new goal

Houston is kicking up its 2026 FIFA World Cup bid by a notch or two with a new innovative initiative.

The Houston 2026 World Cup Bid Committee on October 14 committed to establishing the nonprofit Soccer Innovation Institute if Houston becomes a host city for the FIFA World Cup.

"The institute will rely on Houston's spirit of innovation to create a united community investment in building a legacy that goes well beyond the city," according to a news release announcing the potential formation of the nonprofit.

The soccer institute, made up of a network of experts and leaders from various global organizations, would conduct specialized think tanks and would support a series of community programs.

"As the energy capital of the world, the global leader in medicine, the universal headquarters for NASA, and the home to numerous sports tech companies, Houston has an abundance of resources that are unmatched by other cities," Houston billionaire John Arnold, chairman of the 2026 bid committee, says in a news release. "By bringing these organizations together under one umbrella, the Soccer Innovation Institute presents the ultimate opportunity to redefine the player and fan experience, and develop a lasting legacy for the long-term benefit of the FIFA World Cup."

Houston Mayor Sylvester Turner says the institute would align with the city's efforts to build a strong ecosystem for innovation, along with its passion for soccer.

"Houston is recognized as a leader in technology and innovation. We have many innovation hubs around the city that bring bright minds into collaborative spaces where the whole is greater than the sum of the parts," the mayor says.

Held every four years, the World Cup assembles national men's soccer teams from around the world in one of the most planet's most watched sporting events. The traditional 32-team tournament will expand to 48 teams in 2026. After 2026, the World Cup might be staged every two years.

Among those collaborating on the Houston 2026 bid are NRG, the Texas Medical Center, Shell, Chevron, the U.S. Soccer Foundation, the Council for Responsible Sport, the Houston Dynamo, the Houston Dash, the City of Houston, Harris County, and Houston First.

The FIFA World Cup 2026 will be played in 16 cities across the U.S., Mexico, and Canada. Houston and Dallas are among the 17 cities vying to become a U.S. host. A final decision is expected in the first half of 2022. If Houston is selected, it will host six World Cup games at NRG Stadium.

Between October 21 and November 1, World Cup delegates will visit eight cities in the running to be North American hosts: Houston, Dallas, Kansas City, Cincinnati, Denver, San Francisco, Seattle, and Monterrey, Mexico.

Why small businesses are a big deal in Pearland

Small Business, Big Success

Here's a fun fact: 82 percent of businesses in Pearland are locally owned.

Besides providing a warm, fuzzy feeling, that fact actually has a big impact on what the the Lower Kirby city has to offer other companies that are looking to relocate.

Understanding that small businesses are vital to the local economy, the Pearland Economic Development Corporation does all it can to support the formation and growth of new businesses.

To gain a better understanding of the needs of local businesses, PEDC recently conducted a survey of all businesses in the community. The survey found that 92 percent of business owners felt that Pearland is a great place to live, work, and operate a business, and more than 80 percent of survey respondents gave excellent or good marks to Pearland as a place to do business — higher than the national comparison.

The city recently launched an online permitting portal that helps emerging businesses navigate the business registration process with a streamlined, easy-to-use interface that can be accessed anywhere, any time.

By answering just a few questions, potential new business owners can see all the necessary requirements and fees. And commercial permits are reviewed and approved within 20 days, on average.

Additionally, PEDC and community partners are creating an Entrepreneurship Hub, which will enhance Pearland's innovation entrepreneurship culture by creating events, programs, and activities for entrepreneurs and small business owners to inspire ideation and entrepreneurship.

The Hub will connect the city to local and regional entrepreneurship assistance programs, service providers, and funding sources to help businesses maximize their growth potential and overall success. Offerings of the Hub will include business plan competitions, proactive coaching, networking events, and student programs.

In addition to the resources offered, many small businesses that have relocated to Pearland cite the safety of the community and ease of access via multiple thoroughfares as top reasons that led them to the community.

Brask Neela, a small business founded in Louisiana, constructed a new manufacturing facility in Pearland to custom fabricate heat transfer equipment on 9.45 acres in Pearland's Industrial Drive Business Park. After its move to the Pearland area, the company can better service petrochemical and chemical customers in Texas City, Freeport, and Baytown, as well as global clients.

In addition to PEDC's assistance with land acquisition and attractive incentives, Brask Neela was drawn to the location's proximity to the workforce, the area's infrastructure, and open communications with the City of Pearland.

"Pearland provided incentives, proximity to workforce both for shop and office, infrastructure, and clear communication to address any needs with city officials," says Kevin Sareen, Brask Neela's business development manager.

Rollac Shutters manufactures exterior rolling shutters, solar zip shades, and awnings, and opened a 105,000-square-foot headquarters and manufacturing facility that allowed the company to engage in environmentally responsible manufacturing practices and integrate sustainability principles in its day-to-day operations.

"As a family-owned business, location and incentives were most important to us," says Eva Konrad, vice president at Rollac Shutters. "Pearland offered both and we love it here."

Houston-area school scores top 10 status in Texas

star pupils

A Houston-area school earned top honors in Texas in U.S. News & World Report's first-ever ranking of the state's best elementary schools.

Creekside Forest Elementary School comes in at No. 10. Creekside is nestled in the bustling Woodlands and in the Tomball Independent School District.

A public school, Creekside Forest Elementary boasts student population of 571, serving serves kindergarten through fifth grade. Impressively, according to the report, 93 percent of students here scored at or above the proficient level for math, and 87 percent scored at or above that level for reading.

Notably, the student-teacher ratio is at Creekside is 16:1, which is better than that of the district. The school employs 36 equivalent full-time teachers and one full-time school counselor.

The student population at Creekside is made up of 49 percent female students and 51 percent male students, with minority student enrollment at 43 percent. One percent of students here at economically disadvantaged.

According to the school's website, Creekside "is a learning community where all continuously strive for excellence."

Unlike its annual list of the country's best high schools, U.S. News & World Report didn't come up with a national ranking of elementary schools. Rather, it published a ranking for each state.

Myriad other Houston-area schools land later on the list, including West University Elementary at No. 17. According to U.S. News, the 10 best elementary schools in Texas are:

  1. William B. Travis Academy/Vanguard for the Academically Talented and Gifted, Dallas ISD.
  2. Windsor Park G/T Elementary School, Corpus Christi ISD.
  3. Old Union Elementary School, Carroll ISD.
  4. Carroll Elementary School, Carroll ISD.
  5. Hudson Elementary School, Longview ISD.
  6. Sudie L. Williams Talented and Gifted Academy, Dallas ISD.
  7. Canyon Creek Elementary School, Round Rock ISD.
  8. Carver Center, Midland ISD.
  9. Cactus Ranch Elementary School, Round Rock ISD.
  10. Creekside Forest Elementary School, Tomball ISD.
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This article originally ran on CultureMap.

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