Most venture capital rejection is because of one or more of these three reasons. Miguel Tovar/University of Houston

One of the most common questions that pops up in startup circles is, "Why did they turn me down?" There are myriad reasons why a venture capitalist might turn down pitches and decline funding. Here, I'll present the three most common.

They don't understand your business

Einstein once said, "If you cannot explain it to a six-year old, you don't understand it yourself."

If you spend an entire presentation showing well-researched facts and figures, talking about how groundbreaking your idea is, and presenting detailed charts and graphs, but your audience still has no idea what you do, you're in trouble.

Moreover, avoid overusing jargon and esoteric terms in your pitch. Speak simply.

If you cannot explain in simple terms what your startup does and why it's marketable, potential investors have no reason to believe you will know what you're doing with their money. To sum up, they'll think you don't understand your own business.

They don't think you've done the legwork

Some venture capitalists invest in early stage startups, so it's totally normal for them to sit through pitches where a product has not even been built yet. Consequently, the problem comes when it becomes evident the startup founder has failed to do any legwork. As a result, investors are likely to feel insecure about giving their money to someone who couldn't even do simple research.

Sure, the product hasn't been built, but that is not an excuse to sit back on cruise control. In other words, don't take your foot off the gas. Move forward constantly and don't stop learning more about your industry.

What have you done for customer development? Customer discovery? How many potential customers have you talked to? How much would they pay for your product or service? Have you studied the competitive dynamics of the market for which you will enter? Who is your competition and what are their strengths and weaknesses? You get the picture.

Certainly, one big misstep among startup founders is that they tend to believe work should not be done until they attain funding. Wrong. During your struggle to attain money, you should be busy learning everything about your industry, market, and customers. That way, once you finally get that meeting with an investor, they will feel much more confident that you will use their money intelligently.

They don't see that you have a strategy

It's an unfortunate commonality that a startup founder will put together a great pitch, get deep into it in front of a venture capitalist, and then unravel the entire presentation by exposing themselves as not having a plan of attack for the market. To clarify, it is a huge waste of your time to undo all your hard work by showing you don't have a strategy. Remember, investors are looking for reasons to pass on you.

When asked about their strategy for reaching the market, a common refrain is, "we will provide this awesome service (or make this awesome product) and the customers will roll right in." Or even "we will partner with this corporate giant who will sell our product because it's that amazing."

Above all, you must show your potential investor that you have the wherewithal to create, polish, and scale a reliable process that reaches your customer base.

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This article originally appeared on the University of Houston's The Big Idea.

Rene Cantu is the writer and editor at UH Division of Research.

Keep an eye out for these warning signs when looking for funding. Miguel Tovar/University of Houston

5 investor red flags to look out for, according to this University of Houston expert

Houston Voices

Venture capitalists give you plenty of reason to be on the look out for investor red flags.

In The Parable of the Scorpion and the Frog, the frog entrusts the scorpion not to sting it while it helps the scorpion cross a lake. The scorpion promises not to sting the frog, reasoning that both would drown. The scorpion stung the frog anyway. As a result, both drowned. The moral of the story is that a scorpion, like any animal, is true to its nature.

Think of venture capitalists as scorpions. They are constantly trying to undermine established terms in order to either avoid a financial downside, or collect on the financial upside, even at a startup's expense. As a result, they will not think twice about screwing you over.

Venture capitalists have a clear institutional objective: if your company is successful, they collect as much money as they can based on the agreed upon terms. On the other hand, if your company falls flat on its rear, venture capitalists will look to avoid losing money. At all costs. Even if it means bending the terms of your agreement and hurting your company further.

Here are the top five red flags to look out for from a venture capitalist.

Bad terms

Firstly, there are many times when a bad investor will strong-arm a company founder into a tough deal. If the investor even hints that there will be no room for negotiation, that's a definite red flag. You have a right to negotiate certain terms and request flexibility. The best investors will want to work with you because it's unlikely they'll want a sour relationship with their investment. If your investor seems to say "no" a lot to you, how much do they really care about your company's growth?

Unpredictable behavior

Any investor that exhibits unexpected behavior is sure to give you tons of headaches down the road. Imagine after agreeing to terms, your new investor decides he or she do not want to be on your company's board all of the sudden. Either because they don't have the time or just don't want the responsibility. Instead, they would hire an executive from another company to represent their interest on your company's board. Why didn't they tell you this beforehand? Now you'll have to adjust to this sudden change of heart. Consequently, your company will have to adjust, too.

Strict monogamy

Okay, so your relationship with your investor is not a romantic one. That's exactly why it should be okay to work with other investors. If your venture capitalist tries to discourage you from doing that, it shows a glaring insecurity. Multiple investors means more money for your company. Any investor that tries to keep you from working with other investors probably does not have your startup's best interest in mind.

Rotating door of CEOs

If an investor has a history of firing founders or CEOs too fast, it could show that they do not have the patience required to allow a startup to grow. Moreover, bad investors will overreact to a missed milestone (like under-performing for a quarter) and fire a CEO. So, seek an investor that has a reputation of working with founders, even through those bumps in the road.

Dominating discussions

Lastly, any potential investor that completely dominates a discussion does not leave room for other ideas and different perspectives to be brought to the table. Your company meetings should brainstorming sessions and strategic conversations where everyone has input.

Therefore, any one-sided discussion about company operations is sure to leave a bad taste in everyone else's mouths. In short, if your discussions with a potential investor are one-way streets where they are talking way more than they are listening, what do you think board meetings will be like with them at the helm?

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This article originally appeared on the University of Houston's The Big Idea.

Rene Cantu is the writer and editor at UH Division of Research.

Texas doctors and researchers received millions for their transformational work in cancer prevention and treatment. Getty Images

A Texas organization has doled out millions to Houston cancer-fighting professionals

granted

Researchers at medical institutions across the state have something to celebrate. The Cancer Prevention and Research Institute of Texas has made 71 grants this week to cancer-fighting organizations that total a near $136 million.

"CPRIT's priorities of pediatric cancer research and cancers of significance to Texans highlight this large slate of awards," says Wayne Roberts, CPRIT CEO, in a release. "Investments are made across the cancer research and prevention continuum in Texas unlike any other state in the country."

New to the awards this time around is the Collaborative Action Program for Liver Cancer, which has been claimed by Baylor College of Medicine's Hashem B. El-Serag.

"Texas has the highest incidence rates of hepatocellular cancer in the nation," El-Serag says in a release from BCM. "Our CPRIT funded Center will house infrastructure to support and enhance research collaborations among liver cancer researchers; to educate providers, researchers and the general public on best practices and opportunities to reduce the burden of liver cancer; and to engage private and public entities in policy initiatives."

Houston organizations also received recruitment awards, which reward Texas organizations for bringing in great minds from across the world. According to the release, CPRIT has brought in a total of 181 scholars and 13 companies to the Lone Star State.

Of the 71 grants, 58 represent academic research, 10 prevention, and three product development research. Here are the ones awarded to Houston organizations.

The University of Texas MD Anderson Cancer Center

  • $900,000 granted for Shao-Cung Sun's research in regulation of CD8 T cell responses in antitumor immunity (Individual Investigator Research Award)
  • $897,483 granted for Alemayehu A. Gorfe's research in characterization and optimization of novel allosteric KRAS inhibitors (Individual Investigator Research Award)
  • $3 million granted for Hashem B. El-Serag's research at The Texas Collaborative Center for Hepatocellular Cancer (Collaborative Action Program to Reduce Liver Cancer Mortality in Texas: Collaborative Action Center Award)
  • $2.46 million to Jessica Hwang for patient-centered liver cancer prevention in the Houston community (Collaborative Action Program to Reduce Liver Cancer Mortality in Texas: Investigator-Initiated Research Awards)
  • $3.51 million for Kevin McBride's Recombinant Antibody Production Core at Science Park
  • $199,804 granted for Andrea Viale's epithelial memory of resolved inflammation as a driver of pancreatic cancer progression (High Impact High Risk Award)
  • $6 million for the recruitment of Christopher Flowers, M.D. (Recruitment of Established Investigator Awards)
  • $2 million for the recruitment of Kevin Nead, MD, MPhil (Recruitment of First-Time, Tenure-Track Faculty Members Awards)
  • $2 million for the recruitment of Alison Taylor, PhD (Recruitment of First-Time, Tenure-Track Faculty Members Awards)
  • $2 million for the recruitment of Mackenzie Wehner, MD, MPhil (Recruitment of First-Time, Tenure-Track Faculty Members Awards)

Baylor College of Medicine

  • $5.38 million granted for Steven J. Ludtke's new capabilities for cancer research in the TMC CryoEM Cores (Core Facility Support Awards)
  • $1.35 million granted for Bryan M. Burt's novel endoscope-cleaning port for minimally invasive cancer surgery (Early Translational Research Awards)
  • $199,500 granted for Yohannes T. Ghebre's Topical Esomeprazole for Radiation-induced Dermatitis (High Impact High Risk Award)
  • $199,920 granted for Robin Parihar's targeting of cancer associated fibroblasts with anti-IL-11-secreting CAR T cells (High Impact High Risk Award)
  • $2 million for the recruitment of Umesh Jadhav, PhD (Recruitment of First-Time, Tenure-Track Faculty Members Awards)
  • $2 million for the recruitment of Stanley Lee, PhD (Recruitment of First-Time, Tenure-Track Faculty Members Awards)
  • $2 million for the recruitment of Ang Li, MD (Recruitment of First-Time, Tenure-Track Faculty Members Awards)
  • $1.29 million for Jane R. Montealegre's expansion of "a Community Network for Cancer Prevention to Increase HPV Vaccine Uptake and Tobacco Prevention in a Medically Underserved Pediatric Population"

Texas Medical Center

  • $5.44 million granted for William McKeon's Business-Driven Accelerator for Cancer Therapeutics (Core Facility Support Awards)

The University of Texas Health Science Center at Houston

  • $5.95 million granted for Zhiqiang An's Advanced Cancer Antibody Drug Modalities Core Facility (Core Facility Support Awards)
  • $2 million granted for Qingyun Liu's discovery and development of novel peptibody-drug conjugate for treating cancers of the digestive system (Early Translational Research Awards)
  • $199,998 granted for Leng Han's expression landscape and biomedical significance of transfer RNAs in cancer (High Impact High Risk Award)
  • $2 million for Lara S. Savas' Salud en Mis Manos that delivers "Evidence-Based Breast & Cervical Cancer Prevention Services to Latinas in Underserved Texas South and Gulf Coast Communities"

The University of Texas Medical Branch at Galveston

  • $3.55 million granted for William K. Russell's A Targeted Proteomics and Metabolomics Mass Spectrometry Core Facility at the University of Texas Medical Branch at Galveston (Core Facility Support Awards)
  • $199,996 granted for Brendan Prideaux's novel cellular-level imaging approach to assess payload drug distribution in tumors following administration of targeted drug delivery systems (High Impact High Risk Award)
  • $200,000 granted for Casey W. Wright's targeting ARNT and RBFOX2 alternative splicing as a novel treatment modality in lymphoid malignancies (High Impact High Risk Award)

The Methodist Hospital Research Institute

  • $200,000 granted for Robert Rostomily's development of a mini-pig glioma model and validation of human clinical relevance (High Impact High Risk Award)

Texas Southern University

  • $200,000 for Song Gao's alleviating SN-38-induced late-onset diarrhea by preserving local UGTs in the colon (High Impact High Risk Award)

University of Houston

  • $200,000 granted for Sergey S. Shevkoplyas' Novel High-Throughput Microfluidic Device for Isolating T-cells Directly from Whole Blood to Simplify Manufacturing of Cellular Therapies (High Impact High Risk Award)

Rice University

  • $2 million for the recruitment of Jiaozhi (George) Lu, PhD (Recruitment of First-Time, Tenure-Track Faculty Members Awards)
  • $1.67 million for the recruitment of Vicky Yao, PhD (Recruitment of First-Time, Tenure-Track Faculty Members Awards)

The Rose

  • $2 million for Bernice Joseph's Empower Her To Care Expansion

Legacy Community Health Services

  • $999,276 for Charlene Flash's "Increasing Breast and Colorectal Cancer Screening Rates for the Medically Underserved using Population Health Strategies at a Multi-County FQHC"
The device is lighter than a Band-Aid and could be used as robot skin to track movement and health conditions. Photo via uh.edu

University of Houston professors identify super thin wearable device

Data collecting skin

Imagine a wearable device so thin it's less noticeable and lighter than a Band-Aid but can track and record important health information. According to some University of Houston researchers, you might not need to imagine it at all.

A recent paper, which ran as the cover story in Science Advances, identified a wearable human-machine interface device that is so thin a wearer might not even notice it. Cunjiang Yu, a Bill D. Cook associate professor of Mechanical Engineering at the University of Houston, was the lead author for the paper.

"Everything is very thin, just a few microns thick," says Yu, who also is a principal investigator at the Texas Center for Superconductivity at UH, in a release. "You will not be able to feel it."

The device is reported in the paper to be made of a metal oxide semiconductor on a polymer base. It could be attached to a robotic hand or prosthetic, as well as other robotic devices, that can collect and report information to the wearer.

"What if when you shook hands with a robotic hand, it was able to instantly deduce physical condition?" Yu asks in the release.

The device could also be used to help make decisions in situations that are hazardous to humans, such as chemical spills.

Current devices on the market or being developed are much slower to respond and bulkier to wear, not to mention expensive to develop.

"We report an ultrathin, mechanically imperceptible, and stretchable (human-machine interface) HMI device, which is worn on human skin to capture multiple physical data and also on a robot to offer intelligent feedback, forming a closed-loop HMI," the researchers write in the paper. "The multifunctional soft stretchy HMI device is based on a one-step formed, sol-gel-on-polymer-processed indium zinc oxide semiconductor nanomembrane electronics."

The paper's co-authors, in addition to Yu, include first author Kyoseung Sim, Zhoulyu Rao, Faheem Ershad, Jianming Lei, Anish Thukral, and Jie Chen, who are all from UH; Zhanan Zou and Jianliang Xiao of the University of Colorado; and Qing-An Huang of Southeast University in Nanjing, China.


Soft Wearable Multifunctional Human-Machine Interfaces (HMIs) www.youtube.com

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City council approves $24M for East End hub, TMCx opens apps, and more Houston innovation news

Short stories

Houston is busting at the seams with innovation news as the ecosystem prepares to wrap up its year of growth. From grants and M&A activity to expansions and awards, there's a lot of news you may have missed.

In this latest news roundup, millions of federal funds are doled out, a female networking app commits to Houston, an accelerator launches applications, and more.

Makerspace in the East End to receive $24 million in federal funds

The East End Maker Hub

The East End Maker Hub plans to move tenants in next summer. Courtesy of TXRX

Last week, the Houston City Council voted in approval of $24 million in federal funds going toward a makerspace in the East End. The renovated 307,000-square-foot East End Maker Hub will be a place for education, training, and small-batch manufacturing.

The project is a collaboration between Urban Partnerships Community Development Corp., or UP CDC, and TXRX Lab, which will occupy around 60,000 square feet in the facility. The rest of the space will be leased out to startups.

The $37 million project is also being funded by a $5 million grant from the Economic Development Association, $7 million from New Market Tax Credits, and around $1.25 of TXRX's funds, including funds the nonprofit raised in donations.

The new facility is expected to create over 400 jobs, reach 14,000 young people annually, and support 100 small urban manufacturers, including 20 startups. The purchase close is planned for this month, and construction will begin next month. The first tenants are slated to move in next summer.

TMCx opens applications for redesigned accelerator program

The revamped TMCx program is accepting applications until December 13. Courtesy of TMC

Applications for the Texas Medical Center Innovation Institute's new and improved accelerator program are open for the spring 2020 cohort. Life science startups from around the world can apply online.

After celebrating five years of digital health and medical device startup acceleration, TMCx announced its team had been working to rethink the program to make it more something TMC's member institutions can benefit from.

Themes for the upcoming cohort include remote monitoring, virtual care, hospital efficiency, accessibility, and ideating for the clinics and operating rooms of the future.

Applications close on December 13, and finalists for an in-person bootcamp will be announced by the end of January for the two-week program from February 24 to March 6. After the program, TMCx will select the cohort members on March 20. The program then will run five sessions from April to August before a showcase slated for September.

Chevron Technology Ventures makes two strategic investments

Chevron Technology Ventures, lead by CEO Barbara Burger, has committed to two California-based companies. Courtesy of CTV

Chevron's Houston-based tech investment arm, Chevron Technology Ventures, made two moves recently. Silicon Valley-based NovoNutrients was invited to join the CTV Catalyst Program and Palo Alto, California-based Orbital Insight closed a recent round with help from CTV.

NuroNutrients, which has developed a way to create proteins through carbon capture, is the first biotech company to join CTV's Catalyst Program. The program will help advance the company's technology through market validating opportunities like pilot programs.

Orbital Insight, a geospatial analytics software company, closed its series D funding round at $50 million. The round was led by Sequoia Capital and Clearvision Ventures with contribution from CTV, as well as from Invicta Growth, Bunge Ventures Ltd, Goldman Sachs, Tech Pioneers Fund, and others. The company has raised over $125 million of funding since its founding in 2013.

Houston SaaS company makes acquisition

Coworking Space

A Houston company specializing in digital workplace software solutions has made a strategic acquisition following an exit to private equity. Getty Images

Houston-based iOFFICE, a software-as-a-service company providing solutions in the digital workplace experience, recently acquired Canadian management software entity, Hippo CMMS.

"Incorporating Hippo's solution into iOFFICE's broader application suite is a logical next stage in our company's evolution," says Mark Peterson, CEO of iOFFICE, in a news release. "As one of the leading native SaaS, asset management systems on the market today, Hippo is an ideal fit to join our brand. Their culture is very much like our own - they're strong and they move fast. Their offerings are robust, agile and they share our passion for disrupting the market with solutions that are unlike any other."

iOFFICE was recently acquired by Chicago-based private equity, Waud Capital, which has opened doors for the company to grow at a rapid pace.

Two Houston companies rank on Deloitte's annual Technology Fast 500 list

Two Houston companies made Deloitte's international list of growing tech companies. Shobeir Ansari/Getty Images

Two Houston companies have secured spots on Deloitte's annual Technology Fast 500 annual Technology Fast 500. Onit came in at No. 249, and symplr just made the list at No. 495. In its 25th year, the list represents the fastest-growing tech, media, life science, energy tech, and telecommunications companies from around the world.

The top company on the list was New York-based UiPath, which also has a large office in Houston. The company reported 37,458 percent growth. The 500 companies represent 41 states and provinces in North America, and Silicon Valley companies made up 19 percent of the list. New York City companies held on to 12 percent of the list, the New England region comprised 8 percent of the list, Washington D.C. companies were 7 percent of the list, and Los Angeles companies represented 5 percent of the 500 companies.


HerHeadquarters app plans to launch in Houston ahead of relocation

herheadquarters

HerHeadquarters is rolling out its app locally ahead of relocating to Houston. Courtesy of HerHeadquarters

Female-founded, female-focused tech company, HerHeadquarters, has plans to relocate its business operations to Houston — but first, it's rolling out its app to local female executives. The app plans to go live for the over 103,000 female CEOs in Houston on November 25.

The app's user experience is focused on making digital connections between women-run organizations. The app is live in Los Angeles, Miami, and New York City and is expected to launch simultaneously in San Francisco.

"These collaborations give them the power to increase revenue, company exposure, and expand their territory. We're excited Houston women entrepreneurs get to experience a faster and easier way to secure powerful partnerships, " says founder and CEO of HerHeadquarters, Carina Glover, in a news release.

HighRadius expands to Amsterdam

The Houston-based SaaS company is opening its fourth office to support its growth in Europe. Photo via highradius.com

Houston-based HighRadius Corp., a growing fintech software-as-a-service company, has announced a new office in Amsterdam just three years after opening its London office. Since entering the European market, the region has seen a 400 percent increase in bookings. The company, which has its headquarters in West Houston, also has an office in India.

"Automating order-to-cash and treasury management is a problem that transcends borders," says Sashi Narahari, founder and CEO of HighRadius, in a news release. "Building on the recent addition of Jon Keating as our general manager for EMEA, we continue to invest aggressively in the European market with the opening of our Amsterdam office."

Fannin Innovation Studio granted $2 million for new study

microscope

Getty Images

Houston-based Fannin Innovation Studio has received a $2,000,000 Phase II Small Business Innovation Research grant from the National Institute of Health. The grant is for the development of the ChorioAnchor device, which is designed to reduce preterm birth and infections in fetal surgery.

The device is being developed in partnership with Fannin, Texas Children's Hospital, Baylor College of Medicine, and Texas A&M University. The grant will be delivered over the next two years to devlop the device for pre-clinical and clinical testing.

"The ChorioAnchor has the potential to reduce these complications by providing mechanical support to the chorioamniotic membranes following fetal surgery, thus reducing the risk for chorioamniotic separation and PPROM," says Dr. Jimmy Espinoza of Texas Children's and BCM in a news release. "The additional support from the NICHD in the form of a Phase II SBIR grant will significantly help in refining the ChorioAnchor device with the objective of obtaining an investigational device exemption from the FDA to evaluate the efficacy and safety of the device in fetal surgeries."

Zibrio named honoree at CES Innovation Awards

The Zibrio SmartScale received national recognition at CES this year. Courtesy of Zibrio

Houston-based Zibrio, which developed a scale for measuring balance, has been named an honoree for CES Innovation Awards. The company has been invited to exhibit in the 2020 showcase.

Zibrio, founded in 2015 by Katharine Forth and Erez Lieberman Aiden, has a technology that came out of the founders' research at NASA. The medical device allows users to keep track of their balancing abilities as its convenient for them, and is especially helpful for the aging population.

Houston startup adds 2 big names to its board of directors

All aboard

A Houston startup specializing in digital community engagement has added two big names in Houston innovation to its board of directors.

Sandy Wallis and Gina Luna will both be key in moving forward Truss as new board members. Sandy Wallis is the co-founder and managing director of Weathergage Capital and the managing director of the HX Venture Fund, and Gina Luna is CEO of Luna Strategies and active member of several boards of directors.

"Our new board members are leaders in the Houston technology and innovation community, and their joining the Truss team is a testament to our compelling mission and broader market potential," says Patrick Schneidau, CEO of Truss, in a news release. Schneidau is a member if InnovationMap's board of directors.

Schneidau was tapped for his position as CEO in March and was tasked by former CEO Chris Buckner to grow the company. Schneidau is excited about the two additions to Truss's leadership.

"Gina has extensive experience across corporate, nonprofit and startup companies, as well as financial operations," Schneidau says in the release. "Sandy brings invaluable insights into capital raises; her experience in venture funding is unmatched in our city. Both new board members bring the expertise necessary to catapult our growth and expand our customer base."

In September, Truss announced its rebrand and name change from FanReact. The transition opens doors for the company to reach new clients that aren't in the sports industry — but that maybe want to take a page out of the fan experience's book.

Luna, who is the founding chairman of the board for Houston Exponential, has decades of pertinent experience and is very involved in the innovation ecosystem.

"Truss is leading in digital community experiences for athletics and is in a high-growth phase as they expand into other sectors," says Luna in the release. "I'm excited to join the board to help propel the mission and future direction of the company. The sky's the limit as groups of any kind can create the communication, collaboration and connections they desire with Truss."

Wallis has also been very invloved in the ecosystem and was named managing director of HX Venture Fund this summer. Weathergage Capital, a venture capital fund of funds with approximately $1 billion in venture partnership commitments, has been under her leadership for over 13 years.

"Truss is for organizations and their audiences who want better user experiences and levels of engagement in their digital communities," says Wallis in the release. "The market is ready for Truss's privacy-focused platform to serve these organizations. I appreciate the focus on diversity at the company and its passion for hiring the best talent across the board — goals from the company's leaders I look forward to seeing continue long term."

Houston racks up spot among worst cities for credit card debt

Debt dilemma

Many Houstonians are taking it to the limit — the credit limit, that is. A study published by LendingTree's CompareCards website finds that Houston ranks Houston ranks 13th nationally for the share of cardholders with at least one maxed-out card (28.4 percent). Ten percent have maxed out two or more cards.

Experian says the average credit card debt in the Houston metro area was $7,205 in the second quarter of this year, up 3.1 percent versus the same time in 2018. Houston ranks 11th for the highest level of credit card debt among major metro areas.

For its study, CompareCards analyzed an anonymized sample of credit reports from 1.3 million My LendingTree users with active credit cards. In the Alamo City, 29.2 percent of credit card holders have maxed out at least one card, meaning the balance is at least equal to the credit limit, according to CompareCards. Eleven percent have two or more maxed-out cards.

A report released November 4 by Experian, one of the major credit bureaus, shows the average credit card debt in the San Antonio metro area stood at $7,210 in the second quarter of this year, up 2.6 percent from the same period in 2018. That put it in 10th place for the highest amount of credit card debt among major metro areas.

Elsewhere in Texas, San Antonio ranks seventh with maxed-out debt. "The biggest reason for San Antonio appearing near the top of the list is probably income," says Matt Schulz, chief industry analyst at CompareCards. In 2018, the median household income in the San Antonio metro area was $57,379, compared with $60,629 in Texas and $61,937 in the U.S.

Meanwhile, Dallas lands at No. 43 (25.2 percent) and Austin at No. 66 (23.6 percent) on CompareCards' list of places for where cardholders have maxed out at least one credit card. The study indicates 8.7 percent of cardholders in Dallas and 7.6 percent in Austin have maxed out two or more cards.

Cardholders in Dallas-Fort Worth had average credit card debt of $7,291 in the second quarter of this year, up 1.8 percent from the same period in 2018, Experian says. DFW ranked eighth for the highest amount of debt among major metro areas.

In Austin, the average credit card debt in the second quarter of this year was $7,329, up 1.9 percent versus the year-ago period, according to Experian. That was the sixth highest amount among major metro areas.

Schulz points out that lower-income consumers tend to have credit cards with relatively low credit limits, making it easier for them to max out their cards.

At the top of the heap for maxed-out cardholders is Bridgeport, Connecticut, where 32.3 percent of consumers have maxed out at least one card, CompareCards says. In addition, 10.4 percent have maxed out two or more cards. Not surprisingly, cardholders in the Bridgeport metro area carried the highest average credit card debt in the U.S. during the second quarter of this year ($8,679), according to Experian.

The place with the lowest share of maxed-out cardholders is Provo, Utah, according to the CompareCards study. There, 17.9 percent of cardholders have maxed out at least one card, and 6.1 percent have two or more maxed-out cards.

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This article originally ran on CultureMap.