Skip to main content

Houston Ranks Among Top Cities for Sustainability Startup Funding

Published Jan 17, 2023 by Brina Morales

Solar and wind renewable energy

Houston is once again proving it’s a city where green businesses can thrive. A recent report found Houston ranks fourth in the nation for average funding raised by startups focused on sustainability. 

PromoLeaf’s analysis of Crunchbase data found Houston startups leading the way in sectors such as renewable energy, decarbonization and environmental engineering raked in $150.7 million in funding. Salt Lake City ranked first with $204.6 million, followed by Santa Monica, Calif. with $154.3 million and Freemont, Calif. with $153.5 million. 

Companies like Ionada and Renewell Energy are choosing Houston to scale their businesses because of the region’s expertise and global network as the Energy Capital of the World. 

Momentum continues to build in Houston as the region positions itself as a global leader in the energy transition. According to the Partnership’s Houston Tech Report, startups in the energy industry received more than $320 million in venture capital funding between 2017 and  2021.

In October, the Houston Energy Transition Initiative (HETI), a strategic initiative led by the Partnership and dedicated to strengthening Houston’s leadership as the Energy Capital of the World, released a report examining the region's opportunity to fund the energy transition and the success companies across all energy value chains can find in Houston.

Another report recently highlighted how local companies continue increasing their investments in clean energy. Axios Houston reports Houston companies invested more than $1.25 billion in clean technology, climatetech and impact investment in 2022, making the city one of the top five cities in the U.S. for investment in companies focused on environmental, social and governance (ESG) initiatives.

"I think what we're gonna see is a new breed of public companies created within Houston that will go public in 2023 and 2024 that's going to further make Houston more diverse and increase the level of energy transition that we're already seeing in the Houston market," Will Braeutigam, U.S. capital markets transactions leader at Deloitte, told Axios Houston

Related News

Energy

S&P Global Moves Power Conference to Houston, Highlighting Energy Leadership

10/23/24
In a significant nod to Houston's leadership in the energy transition, S&P Global has moved its annual Financing US Power Conference to Houston after 25 years in New York. The shift is more than just geographical. It is symbolic of Houston's role as a unique collaborative hub for traditional energy and scalable technologies for a low carbon future.   The three-day conference this week is set to attract over 200 attendees, including executives and decision makers from more than 100 companies. These leaders will explore the future of power generation and the essential role finance plays in advancing the energy transition.  “We moved the Financing US Power Conference to Houston to better reflect the city’s growing leadership in energy financing and innovation,” Brian Speight, content program manager at S&P Global, said. “Houston has seen a significant increase in capital flows toward both traditional and renewable energy projects. At the same time, we wanted to engage directly with the energy community here while maintaining strong ties with the financial institutions in New York, ensuring that we’re bridging the conversation between these two critical hubs for energy investment.”  Houston-based energy transition startups, businesses, and companies secured more than $3.88 billion in venture capital and private equity funding in the last five years, with corporate and strategic merger & acquisition investments driving the majority of these deals.  This ability to attract significant capital is further bolstered by Houston’s unique ecosystem. A powerful combination of Fortune 500 energy companies, alongside a thriving network of startups, accelerators, incubators, and world-class education institutions like Rice University and the University of Houston, make Houston a hotbed for energy innovation.  Building on this momentum, the Greater Houston Partnership has led efforts over the last six years to ensure the region remains at the forefront of the energy transition. The launch of the Houston Energy Transition Initative (HETI) has catapulted these efforts, leveraging Houston's industry leadership to accelerate global solutions for an energy-abundant, low-carbon future.  The Financing US Power Conference in Houston will play a pivotal role in advancing conversations that drive progress toward a more sustainable global future.  Learn more about Houston’s Energy Transition Initiative. 
Read More
Energy

Houston's Collaborative Approach and Innovation Driving the Global Energy Transition

10/17/24
Houston is poised to lead the global energy transition, but collaboration is key to success. At the Greater Houston Partnership’s fourth annual Future of Global Energy Conference, industry leaders, innovators, and policymakers gathered to explore one central theme: how we can collectively create a low-carbon future that is resilient, reliable and sustainable while meeting growing energy demands. The discussions highlighted the critical role of partnerships, investment and innovation in driving Houston’s leadership on the global stage. The Power of Collaboration “What we have here in Houston that’s really unique…The importance of collaboration with industry is critical.” – Carmichael Roberts, Co-Founder and Managing Partner, Material Impact and Co-Lead, Investment Committee, Breakthrough Energy Ventures  Roberts stressed the importance of industry partnerships, noting that while Houston’s energy ecosystem has matured significantly, collaboration is more important than ever to move at the necessary pace. “Because of our industrial base and our infrastructure, we are uniquely positioned to help those early-stage projects get done. But that also requires risk-taking from capitol providers and incumbent companies.” – Bobby Tudor, CEO of Artemis Energy Partners      The President and CEO of the Federal Reserve Bank of Dallas, Lorie Logan, said transformative issues taking place in our economy provide Houston the ability to lead the energy transition, capitalizing on its robust infrastructure, innovation ecosystem and strategic role in shaping the future of energy. “Structural changes in the economy, like the energy transition and advances in artificial intelligence, are key drivers fueling strong investment demand and unlocking potential productivity gains.” Lorie Logan At the same time, the need to reduce carbon emissions has never been more urgent. With Houston's industrial infrastructure and emerging talent, the region is ready to meet these dual challenges. Ensuring the Talent of Tomorrow  This year’s conference also featured an Emerging Talent Program supported by Chevron, to bolster the energy sector’s reputation with students and early career professionals to bridge the generational divide on the challenges and opportunities created by the dual challenge.  Click to expand In addition to that program, Texas Exchange for Energy and Climate Entrepreneurship (TEX-E) hosted a poster competition featuring TEX-E fellows and local university students.  Chase Sellers, a fourth-year PhD student in the Chemical and Biomolecular Engineering department at Rice University, won the competition. Sellers’ presentation focused on improving the affordability and scalability of green hydrogen production via electrolysis. By fostering connections between experienced professionals and emerging leaders, the conference is helping to cultivate a workforce that is equipped to address the pressing issues facing the industry today. “As we look to the future, it’s clear that Houston’s role is not just to produce energy but to lead the way in developing and deploying the solutions needed to meet the dual challenge of energy security and climate action.” – Jane Stricker, Senior Vice President of Energy Transition, Greater Houston Partnership & Executive Director, Houston Energy Transition Initiative Learn how Houston is leading the global energy transition.
Read More

Related Events

Executive Partners