What cities are ripe for Hard Tech?
Houston, Texas: General Sam Houston, a true frontiersman, yearned to explore. In his younger years, General Houston lived with the Cherokee Tribe, hunted deer and turkey, negotiated treaties, and participated in crop cultivation. General Houston also led Texans to victory over Mexico at the Battle of San Jacinto, was the first president of the Republic of Texas, and helped with the annexation to the U.S. Houston, his namesake, then embraced these frontier ideals, becoming a railroad hub. In 1873, the Houston & Texas Central Railway connected the Lone Star State internally with Dallas, Denison, Corsicana, and externally with St. Louis and a significant portion of the East. Rail allowed Houston to become a strategic location in the U.S., with access to the interior of Texas and the Gulf of Mexico via the Port of Galveston, one of Texas’s busiest ports.
The early 1900s brought the oil boom. In 1901, the Spindletop oil field was discovered just outside Houston, marking the city's emergence as the epicenter of the oil industry. In 1914, a 50.5-mile waterway was created, connecting Houston to the Gulf of Mexico. Bonds funded the waterway, and Woodrow Wilson celebrated its opening by firing a salute. The oil boom continued throughout the 1900s, and shipbuilding added to Houston's key industries as WWII ramped up.In addition to being the gateway to the Gulf of Mexico, Houston became the command center for space exploration. During the space race, @NASA selected Houston for the Manned Spacecraft Center (Now, the Lyndon B. Johnson Space Center), which acted as the mission control center for launches such as Apollo 11, Apollo 13, and the space shuttle program, leading to famous phrases like “Houston, we have a problem.”Now, Houston raised only $1.5B in venture capital in 2023, according to Pitchbook. In comparison, other U.S. giants such as New York raised $10.7B, and Los Angeles raised over $3B. Houston lacks the investment.So, why is Houston ripe for a hard tech revolution, and why now?IndustryEnergyHouston is already the energy capital of the world, home to over 4,700 companies in the energy sector and over 20 Fortune 500 energy company headquarters. The hydrogen market in the U.S. is worth $18B, and Houston produces 30% of it. Major companies like @exxonmobil, @Phillips66Co, and @conocophillips call Houston home.Biotech & HealthcareThe region hosts over 1,000 biotech and life science companies, employing nearly 400,000 people. In 2023, about 20% of active clinical trials in the U.S. took place in Houston, with nearly $2B dedicated to research. The Texas Medical Center, one of the world’s top medical facilities, leads in cancer research, genomics, cardiovascular studies, and more.Space & AerospaceHome to NASA's Johnson Space Center, Houston boasts significant innovation in space and aerospace. Over 500 companies operate in this sector, and the Johnson Space Center has an annual budget of over $6B.Logistics & ManufacturingWith two international airports, four deep-water seaports, and extensive rail lines, Houston/Galveston ranks 6th in the nation for total trade value. The city produces over $70B worth of goods annually, with over 7,000 manufacturing companies based here.TalentHouston is home to top talent in aerospace and chemical engineering, with over 200,000 STEM graduates. Top feeder schools like @RiceUniversity and the @UHouston provide excellent programs in electrical engineering, chemical engineering, bioengineering, and materials science.Real EstateThe hard tech industry needs space, and Houston has plenty. The city offers over 550M square feet of rentable industrial space. @TheIonHouston, Houston’s Innovation District anchored by Rice University, spans over 16 acres and houses over 300 businesses, tech accelerators, and upskilling programs. @GreentownLabs, a climate tech incubator, provides 40,000 square feet of prototyping and office space.Sleeping GiantsHouston is home to significant oil money and many family offices that could invest directly in hard tech startups. Major oil companies have corporate venture capital arms, such as Chevron Technology Ventures, which has invested in hard tech companies like @ChargePointnet, Spear Power Systems, and Zap Energy. Additionally, venture firms like @mercuryfund, @EnergyVentures, @montroseln, Texas Medical Center Venture Fund, @FundArtemis, New Climate Ventures, Fitz Gate Ventures, Knights Gate Ventures, @amplovc Ventures, and First Bight Ventures are headquartered in Houston according to Houston Innovation Map. All these factors create a perfect storm for hard tech innovation in Houston.