Houston VC funding surged in Q1 2025 to highest level in years, report says

by the numbers

In the first quarter of 2025, Houston-area startups raised $544.2 million in venture capital from investors, PitchBook-NVCA data shows. Image via Getty Images.

First-quarter funding for Houston-area startups just hit its highest level since 2022, according to the latest PitchBook-NVCA Venture Monitor. But fundraising in subsequent quarters might not be as robust thanks to ongoing economic turmoil, the report warns.

In the first quarter of 2025, Houston-area startups raised $544.2 million in venture capital from investors, PitchBook-NVCA data shows. That compares with $263.5 million in Q1 2024 and $344.5 million in Q1 2023. For the first quarter of 2022, local startups nabbed $745.5 million in venture capital.

The Houston-area total for first-quarter VC funding this year fell well short of the sum for the Austin area (more than $3.3 billion) and Dallas-Fort Worth ($696.8 million), according to PitchBook-NVCA data.

While first-quarter 2025 funding for Houston-area startups got a boost, the number of VC deals declined versus the first quarters of 2024, 2023 and 2022. The PitchBook-NVCA Monitor reported 37 local VC deals in this year’s first quarter, compared with 45 during the same period in 2024, 53 in 2023, and 57 in 2022.

The PitchBook-NVCA report indicates fundraising figures for the Houston area, the Austin area, Dallas-Fort Worth and other markets might shrink in upcoming quarters.

“Should the latest iteration of tariffs stand, we expect significant pressure on fundraising and dealmaking in the near term as investors sit on the sidelines and wait for signs of market stabilization,” the report says.

Due to new trade tariffs and policy shifts, the chances of an upcoming rebound in the VC market have likely faded, says Nizar Tarhuni, executive vice president of research and market intelligence at PitchBook.

“These impacts amplify economic uncertainty and could further disrupt the private markets by complicating investment decisions, supply chains, exit windows, and portfolio strategies,” Tarhuni says. “While this may eventually lead to new domestic investment and create opportunities, the overall environment is facing volatility, hesitation, and structural change.”

From Your Site Articles
Roughly half of the 2024 fundraising total for Houston-area startups came in the fourth quarter. Photo via Getty Images

Houston VC funding surged in 2024, fueled by major Q4 activity

by the numbers

The venture capital haul for Houston-area startups jumped 23 percent from 2023 to 2024, according to the latest PitchBook-NVCA Venture Monitor.

The fundraising total for startups in the region climbed from $1.49 billion in 2023 to $1.83 billion in 2024, PitchBook-NVCA Venture Monitor data shows.

Roughly half of the 2024 sum, $914.3 million, came in the fourth quarter. By comparison, Houston-area startups collected $291.3 million in VC during the fourth quarter of 2023.

Among the Houston-area startups contributing to the impressive VC total in the fourth quarter of 2024 was geothermal energy startup Fervo Energy. PitchBook attributes $634 million in fourth-quarter VC to Fervo, with fulfillment services company Cart.com at $50 million, and chemical manufacturing platform Mstack and superconducting wire manufacturer MetOx International at $40 million each.

Across the country, VC deals total $209 billion in 2024, compared with $162.2 billion in 2023. Nearly half (46 percent) of all VC funding in North America last year went to AI startups, PitchBook says. PitchBook’s lead VC analyst for the U.S., Kyle Stanford, says that AI “continues to be the story of the market.”

PitchBook forecasts a “moderately positive” 2025 for venture capital in the U.S.

“That does not mean that challenges are gone. Flat and down rounds will likely continue at higher paces than the market is accustomed to. More companies will likely shut down or fall out of the venture funding cycle,” says PitchBook. “However, both of those expectations are holdovers from 2021.”

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

2 Texas cities named on LinkedIn's inaugural 'Cities on the Rise'

jobs data

LinkedIn’s 2025 Cities on the Rise list includes two Texas cities in the top 25—and they aren’t Houston or Dallas.

The Austin metro area came in at No. 18 and the San Antonio metro at No. 23 on the inaugural list that measures U.S. metros where hiring is accelerating, job postings are increasing and talent migration is “reshaping local economies,” according to the company. The report was based on LinkedIn’s exclusive labor market data.

According to the report, Austin, at No. 18, is on the rise due to major corporations relocating to the area. The datacenter boom and investments from tech giants are also major draws to the city, according to LinkedIn. Technology, professional services and manufacturing were listed as the city’s top industries with Apple, Dell and the University of Texas as the top employers.

The average Austin metro income is $80,470, according to the report, with the average home listing at about $806,000.

While many write San Antonio off as a tourist attraction, LinkedIn believes the city is becoming a rising tech and manufacturing hub by drawing “Gen Z job seekers and out-of-state talent.”

USAA, U.S. Air Force and H-E-B are the area’s biggest employers with professional services, health care and government being the top hiring industries. With an average income of $59,480 and an average housing cost of $470,160, San Antonio is a more affordable option than the capital city.

The No. 1 spot went to Grand Rapids due to its growing technology scene. The top 10 metros on the list include:

  • No. 1 Grand Rapids, Michigan
  • No. 2 Boise, Idaho
  • No. 3 Harrisburg, Pennsylvania
  • No. 4 Albany, New York
  • No. 5 Milwaukee, Wisconsin
  • No. 6 Portland, Maine
  • No. 7 Myrtle Beach, South Carolina
  • No. 8 Hartford, Connecticut
  • No. 9 Nashville, Tennessee
  • No. 10 Omaha, Nebraska

See the full report here.

Houston Methodist receives $25M gift, renames department of medicine

med funding

Houston-based nonprofit The Duncan Fund has awarded a $25 million gift to Houston Methodist's department of medicine to establish new endowed fellowships, streamline complex care and bring artificial intelligence into the fold to develop more personalized treatment plans.

In turn, the health care system announced that it will rename the department the Charles W. Duncan Jr. Department of Medicine at Houston Methodist.

“We are deeply appreciative of the Duncan family’s support, which allows us to further programs at the intersection of personalized medicine and preventive health care to benefit our patients,” Dr. Eleftherios Mylonakis, chair of the department and the Charles and Anne Duncan Presidential Distinguished Chair, said in a news release.

The department of medicine is Houston Methodist's largest, and comprises 13 clinical programs, ranging from general medicine to highly specialized care, as well as research and education.

According to Houston Methodist, the latest grant from the Duncan family will:
  • Coordinate complex, multidisciplinary care by hospitalists
  • Implement programs that leverage data and AI to tailor treatments and preventive strategies
  • Establish five endowed fellowships, including a new fellowship for students known as MedTech Innovator

“Our vision is to redefine how care is delivered in our country by creating a national model for true continuity — one that follows the patient across every transition, from home to hospital and back again,” Mylonakis added in the release. “We are also advancing a deeper understanding of health span, shifting from reactive treatment to a proactive, lifelong strategy that maximizes not just how long we live but how well we live.”

The Duncan family has been a longtime supporter of Houston Methodist—and Houston organizations at large. The late Charles Duncan Jr. sat on the system's board for decades, and his son, Charles “Carlos” Duncan III, serves on the Houston Methodist Hospital Foundation Board. Additionally, the family established the Charles and Anne Duncan Scholars Program and endowed chairs in nephrology and endocrinology.

Charles Duncan Jr. is also the namesake behind Rice University's Duncan Residential College and was one of the founders of the Greater Houston Partnership. He served as Secretary of Energy during the Carter Administration.

New York Stock Exchange Texas announces location for Dallas headquarters

NYSE Texas

A location has been chosen for The New York Stock Exchange Texas, the new Dallas-based offshoot of the The New York Stock Exchange in New York.

According to a release, the NYSE Texas has leased 28,000 square-feet of space at Old Parkland, the hospital-turned office space at 3819 Maple Ave. in Oak Lawn, where it will operate as a fully electronic equities exchange headquartered in Dallas. The property is owned by Dallas billionaire Harlan Crowe, who acquired it in 2006.

The NYSE is part of the Intercontinental Exchange, Inc., a global provider of technology and data. It was previously the NYSE Chicago, which will close once the bureau in Texas debuts.

They’ve also named a president to the Texas branch: Bryan Daniel, former chairman of the Texas Workforce Commission. In his new role over the NYSE Texas, Daniel will report to President of NYSE Group Lynn Martin.

Relocating from Chicago to Texas was a response to Texas' pro-business profile, Martin says in a statement.

“As the state with the largest number of NYSE listings, representing over $3.7 trillion in market value for our community, Texas is a market leader in fostering a pro-business atmosphere,” Martin says. “We are delighted to expand our presence in the Lone Star State, which plays a key role in driving our U.S. economy forward.”'

The move comes five months after the Texas Stock Exchange — AKA TXSE — announced plans to launch in Dallas and begin trading in 2026, pending approval from the U.S. Securities and Exchange Commission. The Texas Stock Exchange is backed by financial giants such as BlackRock, Citadel Securities, and Charles Schwab.

The NYSE expects the Texas location to open in 2026, where it will operate electronically, with stocks trading across multiple venues regardless of where they are first listed, according to the release.

---

This article originally appeared on CultureMap.com.

View All Listings