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Texas has emerged as one of the fastest-growing startup hubs in the U.S., rivaling Silicon Valley.
The best startups in Texas span multiple industries, including tech, health, and sustainability.
The state’s supportive startup ecosystem makes it an ideal location for entrepreneurs.
Texas is no longer just known for its oil and cowboy culture; it has now quietly become a center for startups. Now, with Austin, Houston, and Dallas attracting venture capital, tech talent, and corporate relocations, the state also houses some of the most innovative companies in the United States.
The Texas Economic Development Corporation reports that in 2024, Texas alone saw the establishment of over 13,000 new startups, ranking it among the world's fastest-growing startup hubs, alongside Silicon Valley. This growth is fueled by the reasonable cost of living, the inflow of tech workers, and the business-friendly environment.
Everlywell, an Austin-based company, is well recognized in the health tech arena. They offer lab testing kits that can be used from home, allowing for the testing of food sensitivities and hormone levels. Such kits bring advanced healthcare directly into the hands of consumers.
Industry: HealthTech
Founded: 2015
Highlight: It has raised $325M in funding and continues to expand its digital health services.
ICON, also located in Austin, is addressing the worldwide housing deficit with 3D printing to create cost-effective, eco-friendly housing. Their portfolio includes military barracks, housing for natural disaster relief, and even constructions for NASA's Mars-building simulations.
Industry: ConstructionTech
Founded: 2017
Highlight: Completed the first 3D-printed neighborhood in Texas.
The boom in e-commerce is accompanied by Cart.com's efforts to aid brand growth, as it provides comprehensive online retail services. The startup is often referred to as a ‘Shopify competitor’ and enhances company operations through advanced logistics, analytics, and customer engagement solutions.
Industry: E-commerce/Logistics
Founded: 2020
Highlight: Partnered with hundreds of mid-market brands, growing rapidly into one of the best startups in Texas.
Colossal Biosciences is a biotech company based in Dallas, best known for its daring mission: to resurrect the woolly mammoth through genetic engineering. This kind of work may one day be the hallmark of a sci-fi novel, but its repercussions certainly extend to conservation and biodiversity.
Industry: Biotech
Founded: 2021
Highlight: Backed by investors like Paris Hilton and Chris Hemsworth.
Disco is a Texas-based legal technology startup that utilizes AI to expedite legal discovery. The company is changing one of the most dated industries by automating the review of documents and the preparation of cases.
Industry: LegalTech
Founded: 2013
Highlight: Went public in 2021 and continues to grow its AI-powered platform.
Cybersecurity fatigue is a genuine concern, and Living Security provides a distinctive solution: gamified security awareness training. By providing cybersecurity engagement, the Austin-based startup helps enterprises mitigate human error, which accounts for approximately 95% of breaches (IBM, 2023).
Industry: Cybersecurity
Founded: 2017
Highlight: One of the fastest-growing cybersecurity startups based in the U.S.
Also Read: Top Data Science Startups to Watch in 2025
What, then, really drives the growth of the startup ecosystem in Texas? The collaborative community surrounding the state offers more than just tax benefits and investor confidence. The SXSW conference in Austin remains a pivotal event for the tech industry, and Dallas and Houston are emerging as hubs for energy and healthcare startups.
The best startups in Texas are a testament to the fact that the state has surpassed its competition with Silicon Valley and is working to establish itself as a new global hub for innovation. Texas tech startups that work on the cutting edge of AI and biotech, as well as other innovative companies in Texas, aim to solve world-scale issues, setting a very promising outlook.
