New report shows surge in startup activity in Houston and across Texas

by the numbers

The Houston metro area saw a 92 percent growth in one barometer of startup activity. Getty Images

Houston and the rest of Texas are experiencing a boom in the creation of startups.

One barometer of growth in startup activity: The Houston metro area saw a 92 percent rise from 2024 to 2025 in the number of account applications submitted to Bluevine, a banking platform for small businesses.

New data from Bluevine also shows healthy year-over-year growth in account applications submitted by entrepreneurs in Texas’ three other major metros:

  • 242 percent growth in the San Antonio area
  • 153 percent growth in the Austin area
  • 28 percent growth in Dallas-Fort Worth

Further evidence of Texas’ uptick in business creation comes from a new state-by-state analysis of U.S. Census Bureau data by digital mailbox provider iPostal1.

From 2019 to 2024, the number of new business applications jumped 60 percent in Texas, according to the iPostal1 analysis. Wyoming tops the list, with a five-year growth rate of 216 percent.

“The U.S. has no shortage of ambition, but opportunity isn’t spread evenly,” says Jeff Milgram, founder and CEO of iPostal1. “In states like New York, Florida, and Texas, entrepreneurship is booming — people are starting businesses, taking risks, and finding opportunity.”

“Other states are still catching up,” Milgram adds. “Sometimes it’s access to funding, sometimes local policy, or just the confidence that new ventures will be supported.”

Women own many of the new businesses sprouting in Texas, according to a new analysis of 2024-25 data from the U.S. Small Business Administration. The analysis, done by SimpleTiger, a marketing agency for software-as-a-service (SaaS), shows Texas ranks eighth for the highest concentration of women entrepreneurs (109 per 1,000 female residents) among all states. That rate is three percent higher than the national average.

“Women entrepreneurs are no longer a side story in small business growth; they’re a leading indicator of where local economies are expanding next,” SimplyTiger says. “When women-owned business density is high, it usually signals stronger access to customers, networks, and startup pathways that make it easier to launch and keep going.”

In a December news release, Gov. Greg Abbott highlights Texas’ nation-leading job gains over the past 12 months, driven by employers small and large.

“From innovative startups to Fortune 500 corporations, job-creating businesses invest with confidence in Texas,” Abbott says. “With our strong and growing workforce, we will continue to expand career and technical training programs for better jobs and bigger paycheck opportunities for more Texans.”

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Startup applications in Houston have dipped since their 2021 peak, even as national entrepreneurship hits record highs, according to a new report from The Kaplan Group. Photo via Getty Images.

Houston's surge in new startups cools since pandemic peak, study shows

by the numbers

Startup activity in the Houston metro area has dipped since its pandemic peak, according to a new study.

Dating back to 2005, the volume of applications to form new businesses in the Houston area hit its highest level in 2021 (151,804). Since then, though, the application volume has fallen, according to the study, conducted by business debt collection agency The Kaplan Group. Here's the breakdown from the last few years:

  • Applications dropped to 130,011 in 2022
  • Climbed to 145,926 in 2023
  • Dropped again to 138,595 in 2024

Looking at the Houston area’s figures another way, the 2024 total surpassed the 2015-19 average by roughly 60 percent to 90 percent, the study shows.

Dallas-Fort Worth has seen similar startup declines (162,312 in 2021 vs. 153,378 in 2024), but the San Antonio metro area recorded higher application volume in 2023 and 2024 (37,412 and 35,798, respectively) than it did in 2021 (34,208).

The story is different in the Austin metro area. Application volume in 2023 and 2024 (53,200 and 59,190, respectively) exceeded the 2021 total (47,106).

The picture for startup activity in Texas’ four major metros deviates from the nationwide picture.

“America’s real viral trend is entrepreneurship,” says The Kaplan Group. “New business formations are reaching an all-time high across the country.”

In the U.S., per-month business formations soared 435 percent from 2004 (89,561) to 2025 (478,805), the study says.

Amid the growth of startup activity, business bankruptcies in the U.S. have plummeted almost 74 percent since 2004, according to The Kaplan Group.

“The country’s business scene has grown both more resilient and more ambitious in the past two decades,” the collection agency says.

Sage Geosystems is the No. 3 most innovative startup in Texas. Photo via sagegeosystems.com

3 Houston startups named most innovative in Texas by LexisNexis

report card

Three Houston companies claimed spots on LexisNexis's 10 Most Innovative Startups in Texas report, with two working in the geothermal energy space.

Sage Geosystems claimed the No. 3 spot on the list, and Fervo Energy followed closely behind at No. 5. Fintech unicorn HighRadius rounded out the list of Houston companies at No. 8.

LexisNexis Intellectual Property Solutions compiled the report. It was based on each company's Patent Asset Index, a proprietary metric from LexisNexis that identifies the strength and value of each company’s patent assets based on factors such as patent quality, geographic scope and size of the portfolio.

Houston tied with Austin, each with three companies represented on the list. Caris Life Sciences, a biotechnology company based in Dallas, claimed the top spot with a Patent Asset Index more than 5 times that of its next competitor, Apptronik, an Austin-based AI-powered humanoid robotics company.

“Texas has always been fertile ground for bold entrepreneurs, and these innovative startups carry that tradition forward with strong businesses based on outstanding patent assets,” Marco Richter, senior director of IP analytics and strategy for LexisNexis Intellectual Property Solutions, said in a release. “These companies have proven their innovation by creating the most valuable patent portfolios in a state that’s known for game-changing inventions and cutting-edge technologies.We are pleased to recognize Texas’ most innovative startups for turning their ideas into patented innovations and look forward to watching them scale, disrupt, and thrive on the foundation they’ve laid today.”

This year's list reflects a range in location and industry. Here's the full list of LexisNexis' 10 Most Innovative Startups in Texas, ranked by patent portfolios.

  1. Caris (Dallas)
  2. Apptronik (Austin)
  3. Sage Geosystems (Houston)
  4. HiddenLayer (Austin)
  5. Fervo Energy (Houston)
  6. Plus One Robotics (San Antonio)
  7. Diligent Robotics (Austin)
  8. HighRadius (Houston)
  9. LTK (Dallas)
  10. Eagle Eye Networks (Austin)

Sage Geosystems has partnered on major geothermal projects with the United States Department of Defense's Defense Innovation Unit, the U.S. Air Force and Meta Platforms. Sage's 3-megawatt commercial EarthStore geothermal energy storage facility in Christine, Texas, was expected to be completed by the end of last year.

Fervo Energy fully contracted its flagship 500 MW geothermal development, Cape Station, this spring. Cape Station is currently one of the world’s largest enhanced geothermal systems (EGS) developments, and the station will begin to deliver electricity to the grid in 2026. The company was recently named North American Company of the Year by research and consulting firm Cleantech Group and came in at No. 6 on Time magazine and Statista’s list of America’s Top GreenTech Companies of 2025. It's now considered a unicorn, meaning its valuation as a private company has surpassed $1 billion.

Meanwhile, HighRadius announced earlier this year that it plans to release a fully autonomous finance platform for the "office of the CFO" by 2027. The company reached unicorn status in 2020.

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This article originally appeared on Energy Capital HTX.

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

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

Start up here

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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Rice to lead Space Force tech institute under $8.1M agreement

space deal

Rice University has signed an $8.1 million cooperative agreement to lead the U.S. Space Force University Consortium/Space Strategic Technology Institute 4 (SSTI).

The new entity will be known as the Center for Advanced Space Sensing Technologies (CASST) at Rice and will focus on developing innovative remote sensing technologies.

“This investment positions Rice at the forefront of the technologies that will define how we see, understand and operate in space,” Amy Dittmar, Howard R. Hughes Provost and executive vice president for academic affairs, said in a news release. “By bringing together advanced remote sensing, AI-driven analysis and cross-institutional expertise, CASST will help transform raw space data into real-time insight and expand the frontiers of scientific discovery.

The news comes shortly after the Texas Space Commission approved a nearly $14.2 million grant for the newly created Center for Space Technologies at Rice.

David Alexander, director of the Rice Space Institute, will lead CASST. Alexander is also an inaugural member of the Texas Aerospace Research and Space Economy Consortium and he serves on the boards of the Houston Spaceport Development Corporation, SpaceCom and the Sasakawa International Center for Space Architecture. The team also includes Rice professors and staff Kevin Kelly, Tomasz Tkaczyk, Kenny Evans, Kaden Hazzard, Mark Jernigan and Vinod Veedu, and collaborators from Houston-based Aegis Aerospace, University of California, Los Angeles, University of California, Santa Barbara and Georgia Institute of Technology.

In addition to bringing new space sensor innovation, the team will also work to miniaturize sensors while developing and implementing low-resource fabrication techniques, according to Rice. The researchers will also utilize AI and machine learning to analyze sensor data.

The U.S. Space Force uses space sensors to provide real-time information about space environments and assess potential threats. CASST is the fourth Space Strategic Technology Institute established by the USSF.

“Rice has helped shape the modern era of space research, and CASST marks a bold step into what comes next,” David Sholl, executive vice president for research at Rice, said in a news release. “As space becomes more contested and more essential to daily life, the ability to rapidly sense, interpret and act on what’s happening beyond Earth is critical. This center brings together the materials, engineering and data science innovations needed to deliver that capability."

The USSF University Consortium works with academic teams to develop breakthrough technologies and speed their transition into real-world applications for the U.S. Space Force.

The recent Rice award is part of $16 million over about three years. The USSF also signed a cooperative agreement with the University of Arizona in February.

The consortium has also helped facilitate several technological and commercial transitions over the last two years, including a $36 million commercial contract awarded to Axiom by Texas A&M University's in-space operations team and a follow-on $6 million contract to Axiom to build on technology developed by the University of Texas.

Leading Houston energy ecosystem rebrands for next phase

new look

Houston-based Energytech Nexus has rebranded.

The cleantech founders community will now be known as Energytech Cypher. Organizers say the new name was inspired by the Arabic roots of the word cypher, ṣifr, which is also the root of the word zero.

"A cypher is a key that unlocks what's hidden," Nada Ahmed, co-founder and chief revenue officer of Energytech Cypher, said in a news release. "And zero? Zero is where every transformation begins, the leap from 0 to 1, from idea to reality, from potential to power. We decode the energy transition by connecting the right founders, the right capital, and the right corporate partners at the right time, because the most important journey in energy is the one that takes you from nothing to something."

Energytech Nexus has rebranded to Energytech Cypher.

Co-founder and CEO Jason Ethier says that the name change better reflects the organization's mission.

"The energy transition doesn't have a technology problem. It has a connection problem," Ehtier added in the release. "The right founders exist. The right investors exist. The right partners exist. What's been missing is the infrastructure to bring them together—to decode the complexity, remove the friction, and make sure the best technologies find the markets that need them. That's what this community has always done. Energytech Cypher is the name that finally says it."

Energytech Cypher, previously known as Energytech Nexus, was first launched in 2023 and has grown from a podcast to a 130-member ecosystem. It has supported startups including Capwell Services, Resollant, Syzygy Plasmonics, Hertha Metals, Solidec and many others.

It is known for its flagship programs like the Pilotathon, which connects founders with industry partners for pilot opportunities. The event debuted in 2024.

Energytech Cypher also launched its COPILOT Accelerator last year. The accelerator partners with Browning the Green Space, a nonprofit that promotes diversity, equity and inclusion (DEI) in the clean energy and climatech sectors. The inaugural cohort included two Houston-based startups and 12 others from around the U.S.

It also hosts programs like Liftoff, Energy Tech Market, lunch and learns, CEO roundtables, investor workshops and international partnership initiatives.

Last year, Energytech Cypher also announced a new strategic ecosystem partnership with Greentown Labs, aimed at accelerating growth for clean energy startups. It also named its global founding partners, including Houston-based operations such as Chevron Technology Ventures, Collide, Oxy Technology Ventures, and others from around the world.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

Key energy leaders to converge in Houston for CERAWeek 2026

where to be

CERAWeek returns this month, March 23-27, and will once again bring leading energy executives and government officials to Houston.

The 44th annual event will again host U.S. Secretary of Energy Chris Wright and U.S. Secretary of the Interior Doug Burgum.

Wright will participate in a plenary session focused on energy policy with Daniel Yergin, conference chair and vice chairman of S&P Global, on March 23. The following day, he will be featured in the Celebrating 10 Years of U.S. LNG reception with Jack Fusso, president and CEO, of Cheniere Energy. Both events are part of the Executive Conference track.

Burgum will participate in a leadership dialogue plenary session with Yergin on March 25. It is also part of the Executive Conference track. Burgum is also chairman of the National Energy Dominance Council, established by President Trump in 2025.

Top energy executives, many of whom are based in Houston, will also be featured prominently at the week-long event. Other speakers include:

  • Bill Blevins, director of grid coordination for the Electric Reliability Council of Texas (ERCOT)
  • Trevor Best, CEO of Syzygy Plasmonics
  • Marie Contour Carrere, executive director of the Rice Sustainability Institute
  • Ryan DuChanois, co-founder and CEO of Solidec
  • Reginald DesRoches, president of Rice University
  • Georgina Campbell Flatter, CEO of Greentown Labs
  • Jim Fitterling, chair and CEO of Dow Inc.
  • Vicki Hollub, CEO of Occidental Petroleum Corp.
  • Renu Katon, chancellor and president of the University of Houston
  • Ryan Lance, chairman and CEO of ConocoPhillips
  • Olivier Le Peuch, CEO of SLB
  • Patrick Pouyanné, chairman and CEO of TotalEnergies SE
  • Adrian Tromel, chief innovation officer and interim VP for Innovation at Rice University
  • Bobby Tudor, founder and CEO of Artemis Energy Partners and chairman of HETI
  • Wael Sawan, CEO of Shell plc
  • Lorenzo Simonelli, chairman and CEO of Baker Hughes Co.
  • Mike Wirth, chairman and CEO of Chevron Corp.
  • Jeremy Pitts, managing director of Activate Houston
  • And many others

This year, CERAWeek will center around the theme of Convergence and Competition: Energy, Technology and Geopolitics.

"Change is inescapable," Yergin said in a news release. "The global energy landscape—and to a large extent the entire global economy—is being fundamentally reshaped by the dual forces of convergence and competition. The race for AI is fusing the energy and technology industries like never before, bringing into sharp relief the need to align energy expansion with sustainable economic growth."

"Yet, the potential for collaboration and innovation is increasingly matched by the risk for collision and conflict in a world marked by geopolitical rivalry, tariffs and fragmented supply chains," he continued. "Reconciling an increasingly complex world with the growing demand for energy that is stable, secure and affordable is a complex reality that CERAWeek 2026 will tackle when global energy leaders meet in Houston."

Key topics of discussion will include:

  • Politics, Economics, Trade and Supply Chains
  • Policy, Regulations and Stakeholders
  • Oil Value Chain
  • Power, Renewables, Generation and Grid
  • AI and Digital
  • Minerals and Mining
  • Electrification Technologies
  • Investment and Financing
  • Chemicals and Materials
  • Business Strategies
  • The Innovation Ecosystem
  • Managing Emissions
  • Low-Carbon Fuels and Mobility
  • Climate and Sustainability
  • Workforce Strategy

The CERAWeek Innovation Agora track, which is the program's deeper dive into technology and innovation, will feature thought leadership on "AI, decarbonization, low carbon fuels, cybersecurity, hydrogen, nuclear, mining and minerals, mobility, automation and more," according to the release.

Agora Hubs will return this year and be divided into three zones: new energies, carbon and climate, and AI. The hubs will feature amphitheater-style sessions and panels. Agora Pods will allow energy startups to showcase their ideas in 20- to 30-minute presentations.

Additionally, CERAWeek will introduce a new program this year on Friday, March 27. Known as Look Forward, it will focus on economics, politics and technology.

See the full agenda for the week here. Find more information and register for the event here.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

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