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A closer look at startup culture in Texas: A booming state for business

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Throughout the pandemic, Texas has been criticized for how it implemented lockdown regulations and health protocols. Now, Texas has fast become a hub for emerging startups and innovative tech businesses. Today, the four major cities, Austin, Dallas, Houston, and San Antonio form the Megalopolis hub for upcoming venture capitalists.

While their economy has seen rapid growth in recent years, Texas alone contributes more than $1.9 trillion towards the overall American GDP. With these figures, and more and more major corporations relocating to the state, it’s no wonder some have already pinned Austin as the Silicon Hills of The Lone Star State.

The state does offer some attractive income and corporate tax jurisdictions, and these and many other reforms have seen a large portion of investors, and major corporations flock towards setting up new headquarters in Texas. The popularity currently surrounding Texas startups and venture capitalists funding new businesses has shaped the booming landscape it is today. But what has been driving venture capitalists and investors to fund small startups and local businesses in the area?

Texas metropolitans are growing – rapidly

Largest Texas cities by population ranked:

  • Houston – 4th
  • San Antonio – 7th
  • Austin – 11th
  • Fort Worth – 13th
  • Dallas metro-region – 4th
  • Houston metro-region – 5th

During the first few months of the pandemic, some Texas cities saw a massive influx of residents moving to cities across the state. Currently, the state houses the 13 largest cities in the US by population, which can be an attractive offering for entrepreneurs looking to launch their new business. What has helped these cities expand, and keep expanding, is the proximity they are within each other. Some companies can operate in a variety of locations from one central office, and if that’s not enough – these metropolitans are now offering a better lifestyle with improved education and health services for residents.

Home of Fortune 500

A survey has reviewed that more than 50 Fortune 500 companies are located in Texas. A closer look revealed that 24 are located in Dallas, and 22 in Houston. Although competitor states California and New York have more, startups are looking to collaborate with these companies, offering better initial startup funding and capital investments.

Capital is bigger in Texas

Yes, everything is bigger and better in Texas – including capital funding. In the past, major corporations and companies in Silicon Valley could easily fund new startups found near their headquarters. Now, these same companies are reaching out to new cities and businesses located across the US. The current economic climate of venture and private capital funding has seen an immense increase of startups rapidly growing overnight.

Startups and new businesses are receiving the attention they should. With an array of accelerator programs offered in the state, startups are quickly raising funds to connect with larger key markets.

Some of the most popular accelerator programs currently available include:

  • Capital Factory
  • Founders Institute
  • Greentown Labs
  • RealCo
  • TMCx
  • MassChallenge TX
  • BuildSecFoundry

Strong history of venture capitalism

Texas has a long-standing history with some of the best venture capitalists in American business history. These and other factors have meant that a talent pool of well-educated, and well-equipped startup entrepreneurs are relocating to places where capital funding is easily attainable. Compared to Silicon Valley, Silicon Hills offers a more affordable lifestyle, allowing innovative teams and companies to take up space in thriving cities.

The history Texas businesses have formed with venture capitalists and angel investors have meant that younger and more dynamic teams can easily operate and network. With younger, and more innovative entrepreneurs breaking through the ceiling – major investors and LLC Texas firms are looking to garner a longstanding relationship with a diverse group of thought leaders.

Business is booming in Texas, and the statistics reveal why. Young entrepreneurs and small business owners are finding it easier to build a network of trusted investors and finding additional venture capital funding. The state offers more than what it has on paper, and the growing sensation around Silicon Hills and the many other cities is only now starting to take off in the post-pandemic boom.


Augusta Health Augusta Free Press Kris McMackin CPA
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Augusta Free Press