TEXAS
Everything’s Bigger in Texas
Texas, the second most populous state in the United States has nearly 30 million residents—10 million more than Florida for perspective— and has the 9th largest economy globally, boasting a GDP of $3 trillion. To put this into context, our economy surpasses Canada's and now almost Italy’s by half a trillion dollars.
In recent years, Texas has experienced an unparalleled surge in growth, surpassing the rest of the country. This remarkable momentum has been particularly pronounced within our burgeoning community of early-stage technology, venture, and business enterprises.
A region frequently mentioned as the "Texas Triangle", is home to 75% of Texans, and serves as an essential hub of travel and commerce, connecting the bustling cities of Dallas-Fort Worth ("DFW"), Houston, Austin, and San Antonio.
Explore the vibrant city hubs showcased toward the end of this page, each highlighting their unique industry strengths and charm. As the second largest state in the country, with an expansive 100k square miles more than California, Texas still offers abundant opportunities for business and networking across Texas.
Key individuals have made a “big as Texas” outsized impact in shaping our state’s ecosystem of innovation. At the conclusion of this page, we honor and celebrate their enduring legacies as a testament to their unwavering dedication and invaluable contributions.
Texas has a community that constantly creates and shares helpful resources for startups and venture folks. A collection of these with a statewide approach and authored by longstanding and Texans, are featured here.
NASA space launch in Houston:
Startup Scene
Young companies benefit from a strong sense of collaboration and mentorship here. A mentality of an ecosystem of support have emerged in Austin, Dallas, Houston, and San Antonio.
Moreover, these tech hotspots are also home to some of the nation’s leading tech conferences, including the world-renowned South by Southwest (SXSW), Consensus, Dallas Technology Expo, and TECHSPO Houston. The atmosphere that is created is one of creativity, ambition, and camaraderie, and we believe that this dynamic landscape is truly unparalleled.
Bluebonnets are the state flower:
Each startup hub is known for its own unique characteristics. For example, San Antonio's rich military presence has fostered a dynamic community of veterans turned entrepreneurs. In Houston, the oil and gas industry has made a number of high net worth individuals who are now slowly beginning to invest in startups.
The state's robust talent pipeline is further bolstered by top-ranked universities located across the region. From the University of Texas and Texas A&M to Baylor University, Rice University, Texas State University, and more, Texas is a hub for exceptional talent in the tech sector.
The Longhorn cattle is an old western symbol of Texas:
Venture Activity
In 2022, Texas startups received approximately $10.55 billion in 877 deals, ranked at the 4th most venture funding in the US (Austin accounting for $5B). Carta released a new report for Q1 2023 claiming Texas claimed nearly 7.2% of all venture capital raised on their platform— a leap from 3.2% in 2022.
In the past few years the greater venture community has quadrupled in size as many venture capital funds, accelerators, incubators, studios, and more, continue to move here. According to NVCA’s 2023 Yearbook, there are 273 active investors headquartered here who raised the 6th most amount of funding last year in the country, at a collective total assets under management of $17B.
There are roughly 350+ greater venture organizations that support startups, and many can be viewed in the Texas Venture Directory. We’re also seeing a new trend of Texas universities and city economic development corporations making investments and issuing non-dilutive grants for startups.
The AT&T Dallas Cowboys Stadium in Arlington, Texas:
Business Insider recently published a list of our state’s top venture capitalists. Now more than ever, an increasing amount of family offices and HNWIs have slowly started considering investments in both venture capital funds and startups.
Texas might be the “Lone Star State”, but we shouldn’t have lone star entrepreneurs. The Texas Venture Fest celebrates the fast-expanding ecosystem of startup support, with leadership coming together to co-organize across 10+ cities across the state, simultaneously.
A Tesla car, a new automotive and energy company in Texas:
Business Environment
The Lone Star State’s thriving economy is built on a diverse range of industries, including advanced manufacturing, aerospace, defense, energy, biotechnology, consumer goods, and life sciences. We have been at the forefront of oil and gas production, currently holding approximately 25% of the United States' natural gas reserves.
The state’s business-friendly environment of low cost of doing business and no state income tax, is important for young companies in early stage of innovation. A few chambers of commerce, economic development corporations, and city offices have started to create initiatives and resources to help startups as a specific type of small business support. We also see universities around the state add to their programming focused on entrepreneurship, startups, and venture capital.
The Texas Rangers baseball stadium in Arlington:
In addition to startups and venture firms, many well known corporations are relocating to Texas due to our favorable business conditions. The State of Texas government also offers a deal-closing initiative to welcome big businesses, called the Enterprise Technology Fund. Review past and current legislative efforts here.
Some companies that have relocated and/or added major presence to Texas include: Tesla, HP, Oracle, Google, Boeing, Caterpillar, Chevron, Amazon, and more. Detailed information about startups and investors as part of the overall business ecosystem is linked here.
Big Tex at the State Fair of Texas:
Texan Culture
As far as entertainment, “Big Tex” is a sight to see at the popular State Fair of Texas attraction in Dallas. The sprawling Schlitterbahn waterpark in New Braunfels is the best way to cool off— moseying on down a lazy river is a popular way to handle the summer heat. And of course, hold onto your cowboy hat at the Houston and San Antonio rodeos.
We have a number of top museums in the country such as Fort Worth’s Modern Museum of Art. In Marfa, Texas, art practically makes up half the town. While you’re out there, Big Bend National Park isn’t too far to swing by. Any of our parks will take your breath away, complete with a big blue sky (or starry night) serving as a perfect backdrop for camping or a road trip.
When it comes to our beloved sports rivalries, the options are endless with high school teams, college programs, and professional organizations. From football to basketball, soccer to racing, hockey to golf, now pickleball and beyond— there is never a dull moment.
Texas culture is truly one-of-a-kind. Southern hospitality runs deep in everyday life, and Texans value being neighborly. While you’ll never meet friendlier folks, it’s also baked into our history to be bold and rebellious.
“Prada Marfa” art installation in Marfa:
Texas History
In 1821, the “Father of Texas”, Stephen F. Austin, led the “Texas Venture”, an initiative where Spain granted him free land to move the first 300 settlers to Spanish territory. Not long after, Spain lost a war against Mexico resulting in a change of government.
On March 2, 1836, not wanting to be citizens under Mexico’s new president, the new settlers declared their independence from Santa Anna. They fought as underdogs, far out numbered in many courageous battles. This ultimately resulted in a decade-long run of Texas as it’s own sovereign state known as the “Republic of Texas”.
Battle cries such as “Come and Take It” and “Remember the Alamo” are prominent phrases that have around to this day, conveying a core part of the Texas spirit. Texas likes to revel. We’re defiant and courageous.
Statue of Angelina Eberly, in downtown Austin:
Honoring Legacies:
Texas Trailblazers in Innovation
George Kozmetzky (1917 - 2003)
George Kozmetsky truly embodied the common saying “no days off.” He was an entrepreneur, military veteran, dean, professor, and technology lover. Throughout his career, Kozmetsky was the founder of several companies: Teledyne, IC2 Institute, Austin Technology Incubator, Austin’s first angel network, the Texas Capital Network, and a philanthropic organization, the RGK Foundation. Kozmetzsky invested in and advised over 100 technology companies, resulting in roughly $1B to the Texas economy. He was also famous for consistently working 18 hour days starting at 4am for office hours, while at University of Texas at Austin. He was a great mentor and loved meeting young entrepreneurs, playing a large role in helping Michael Dell and James Truchard in their journeys at an early stage.
Featured in Encyclopedia.com: “Kozmetsky’s vision of the [Austin] technopolis was new in the 1960s and 1970s, rarely seen outside the technological regions of California and Massachusetts, but he promoted it with great vigor.”
Pike Powers (1941 - 2021)
Pike Powers played a large role in the Austin and larger Texas tech ecosystem as an attorney and government representative. Over the years, Powers structured many large deals including Sematech, MCC, 3M, Applied Materials, and AMD. Powers also played a huge role in Texas education as he worked tirelessly to develop statewide initiatives. He collaborated with various universities to help identify needed infrastructure and workforce relationships turning Texas into the early stage tech hub it is today.
On Powers’ bio from the Texas Foundation for Innovative Communities website where he served as Chairman: “He is widely viewed as one of the senior voices on technology development and as the designer of important legislative and public policy solutions resulting in new enterprise and corporate models for attracting and retaining technology-based activities.”