We're No. 5
With $200M raised last year, Houston cleans up on new report tracking climatetech funding
Climatech funding for Houston-area startups crept toward the $200 million mark in 2023 — putting it ahead of Dallas-Fort Worth, Austin, and several other major metro areas and making it a standout among U.S. climatech hubs.
Last year, the Houston area collected $199.94 million in climatech funding across 14 deals, according to PitchBook data analyzed by Revolution Growth, a venture capital firm based in Washington, D.C.
“With its deep-rooted energy sector, Houston is an attractive HQ for companies innovating within renewable energy, carbon capture, and emissions reduction,” Revolution says. “Partnerships with oil and gas companies also provide unique collaboration opportunities for climate tech startups, accelerating market adoption and helping companies achieve scale quickly.”
Los Angeles led the climatech funding list at $544.62 million, followed by No. 2 Denver, No. 3 D.C., No. 4 Seattle, and No. 5 Houston. In 12th place was Dallas-Fort Worth ($30.55 million). Austin claimed the No. 15 spot ($13.38 million).
“While traditional coastal tech hubs still hold considerable influence, dozens of [climatech] clusters are emerging between them,” says Revolution.
In its new report on America’s top climatech hubs, Revolution cites three Houston startups to watch:
- Buildforce, a platform for workers in the electrical trades
- Fervo Energy, a supplier of carbon-free energy through geothermal projects
- Solugen, a developer of bio-based chemicals that replace traditional petroleum-based products