Houstonians, now is the time to start that dream company you’ve always wanted. The city’s startup world is seeing an unprecedented amount of growth, making Houston the third fastest growing tech ecosystem in the country.
According to an analysis from entrepreneurship hub, Houston Exponential, 2021 saw a high concentration of early-stage startups, which accounted for 151 venture capital deals under $5 million. About 64% of those deals were less than $1 million.
As for the mega-deals, also known as “unicorns” in the tech world, there were six startup deals worth over $100 million, three of which were over $3 million. The companies; Solugen, HighRadius, Vyripharm Biopharmaceuticals, Lancium, Axiom Space, and Cart.com, as a whole, raised $1.3 billion in 2021.
Healthcare and information technology currently account for 30 percent of the overall deals and remain a key focus for startups coming out of the city. Texas Medical Center Venture Fund increased the size of its fund to $50 million which will be used to provide more funding for early-stage startups in healthcare and life science ventures.
“When we launched the TMC Venture Fund, our goal was to drive collaboration and entrepreneurship, and establish Texas as a life science hub,” William McKeon, president and CEO of TMC, says in a news release. “Our initial investment was extremely successful, and this influx of capital creates a unique opportunity for TMC to invest in companies in the earliest stages of commercialization, further bolstering Houston’s thriving life science community.”
Houston’s early-stage startups collectively saw a deal size of $18 million, which is less than the national average of $21 million. But, still there’s a 68 percent growth since 2019, which far exceeds the national growth rate of 23 percent–demonstrating a “broader expansion and maturities within the Houston ecosystems,” according to the analysis.
While life sciences and information technology startups are seeing a lot more funding, the possibilities are endless when it comes to Houston’s ever growing and diverse business industry. Chasing your dreams has never been so close.
For more information on the analysis and methodology, visit their website.