Houston tech ecosystem ranks fifth in the world for emerging startup hubs
As a startup hub, Houston is on the move.
In a new report from Startup Genome and the Global Entrepreneurship Network, Houston ranks fifth among the world’s 100 best startup ecosystems for startups. Last year, the Groups Report placed Houston 19th in the same category.
Detroit ranks first before Houston on the list of the best startup ecosystems for startups. Hong Kong is in second place. 3rd place Dublin, Ireland; Minneapolis ranked fourth.
To cement Houston’s position as an emerging hub for startups, Bayou City has been ranked third among the largest competitors in North America for traditional startups such as Silicon Valley, Boston, and Seattle. Joining Houston in the list of contenders takes first place in Detroit; Minneapolis is in second place; Search Triangle 3rd, North Carolina; Fifth place is Pittsburgh.
A recent report from the Houston Exponential, recently acquired by parent company InnovationMap, confirmed Houston’s position as the third fastest growing technology ecosystem in the US for early-stage startups. Houston is behind Miami (No. 2) and Bridgeport-Stamford-Norwalk, Connecticut (No. 1).
The HX report said that Houston startups at all stages raised $2.34 billion in 2021, setting a record for total annual venture capital in the region. Of this total, early-stage startups raised $618.9 million from 46 deals.
Health and IT startups dominate the venture capital landscape in Houston, each accounting for 30 percent of venture capital deals in 2021, according to an HX report.
Elsewhere in Texas, Austin ranks 25th out of the world’s top 100 startup ecosystems, while Dallas ranks 31st, according to the Startup Genome and Global Entrepreneurship Network report. San Antonio falls in the range of 91 to 100 in the ranking of the world’s 100 best ecosystems.
The report notes that “the importance and dispersal of tech startups has compounded the impact – for good and bad – of geopolitics”. “At a time when the sector was small enough to avoid the kind of pressures that big industries like energy and travel are under, these garage-grown entrepreneurs have grown into a major economic powerhouse. Keeping their heads low is no longer an option.”