Why This is the Best Time to Move Your Startup to Texas

When it comes to fostering innovation, Texas stands tall. Known for its business-friendly climate, world-class startup accelerators, and an ever-expanding talent pool, the Lone Star State has become the ultimate destination for startups.

Here’s why Texas in 2025 is your best bet for scaling your startup.

1. A Pro-Business Climate Like No Other

Texas is synonymous with opportunity. Thanks to no state income tax and some of the lowest corporate tax rates in the U.S., entrepreneurs can reinvest their savings into scaling their businesses. The state’s Texas Enterprise Fund also offers incentives to software development companies making significant job creation and capital investments. Additionally, cities like Dallas, Austin, Houston and not Fort Worth offer local grants, tax abatements, and tailored programs to attract businesses.

2. A Thriving Startup Ecosystem

Texas is home to a robust startup culture, with a strong emphasis on collaboration, innovation, and growth. Cities like Austin, Dallas-Fort Worth, Houston, and San Antonio have emerged as hubs for tech and business innovation, providing fertile ground for entrepreneurs.

• Austin: Known as “Silicon Hills,” Austin boasts an unmatched tech community, fueled by startups, venture capitalists, and accelerators like Capital Factory and Techstars Austin.

• Dallas-Fort Worth: With initiatives like Tech Wildcatters and the DEC Network, Dallas-Fort Worth offers a perfect mix of corporate infrastructure and startup support.

• Houston: Ranked as the #1 emerging startup ecosystem in North America for early-stage funding, Houston is a powerhouse in energy tech, aerospace, and health tech. With accelerators like The Ion Accelerator, MassChallenge Texas, and Greentown Labs, Houston is fueling next-generation startups.

• San Antonio: With a growing presence in cybersecurity and health tech, San Antonio is on the rise as a startup hub, backed by local incubators and accelerators.

3. World-Class Accelerators and Resources

Texas accelerators lead the charge in providing startups with funding, mentorship, and connections:

• Plug and Play Tech Center: With hubs in McKinney, Frisco, and Cedar Park, Plug and Play accelerates innovation across industries like fintech, AI, and sports tech.

• Capital Factory: A central hub in Austin, connecting startups to mentors, investors, and venture capital networks.

• Tech Wildcatters: Dallas-based, focused on high-growth, seed-stage startups.

• MassChallenge Texas: A zero-equity accelerator supporting startups across diverse industries.

• The DEC Network: Supporting Dallas-area startups with mentoring, training, and funding.

These programs provide startups with the essential resources to move from idea to execution with speed and clarity.

4. Access to a Rich Talent Pool

With a workforce exceeding 15 million people, Texas offers access to a diverse and skilled labor market. Cities like Austin and Dallas-Fort Worth attract top-tier talent from local universities, major corporations, and even international markets. And with major Tech companies like Tesla, Oracle, and Hewlett Packard relocating to Texas, the state continues to be a magnet for skilled professionals.

5. Affordable Cost of Living and High Quality of Life

Unlike the soaring costs of living in Silicon Valley or New York, Texas offers affordable housing, lower business overheads, and an unbeatable lifestyle. For instance:

• Housing: The average home price in Texas is nearly 15% lower than the national average.

• Culture: Austin’s live music scene, Fort Worth’s rich history, and the diverse culinary landscapes of Dallas and San Antonio create the perfect work-life balance for entrepreneurs and employees alike.

6. A Collaborative Business Environment

In Texas, everything is bigger—including your support network. Organizations like The Dallas Regional Chamber, Austin Chamber of Commerce, and Houston Tech Rodeo actively connect entrepreneurs with investors, mentors, and potential partners.

Dallas, in particular, has established itself as a major hub for startup growth, thanks to platforms like:

• Dallas Innovates: A leading publication covering the latest trends in innovation, startups, and venture capital across North Texas. It provides invaluable insights, industry reports, and startup success stories, making it a must-read for founders and investors alike.
• Venture Dallas: An annual conference and investor network focused on connecting high-growth startups with venture capital firms and angel investors. With speakers from top-tier funds and a mission to drive innovation, Venture Dallas has become a catalyst for startup growth in the region.

The state’s vibrant networking events, pitch competitions, and tech meetups ensure that you’re never too far from an opportunity to collaborate or fundraise.

Texas Boasts a Thriving Consumer Packaged Goods (CPG) Community

Austin: A Nexus for CPG Innovation

Austin has experienced remarkable growth in CPG startups, thanks to a supportive ecosystem that includes retailers like Whole Foods and HEB. The city’s flagship Whole Foods store has been instrumental in providing local brands with shelf space, while HEB’s commitment to local sourcing further bolsters the CPG community. Organizations such as SKU, a leading consumer products accelerator, and Naturally Austin, a nonprofit dedicated to nurturing natural product businesses, play pivotal roles in mentoring and accelerating CPG brands. This collaborative environment has led to the success of notable Austin-based CPG companies, including Yellowbird Foods, Tito’s Vodka, and SkinnyPop.

Dallas-Fort Worth: A Growing CPG Sector

The Dallas-Fort Worth area is witnessing a surge in CPG activity, supported by a robust infrastructure and a growing network of resources. The region’s strategic location and access to major transportation hubs make it ideal for CPG companies focusing on distribution and logistics. Initiatives like the DFW CPG highlight the vibrant community of CPG entrepreneurs, investors, and service providers in the area, fostering connections and knowledge sharing. The DFW CPG Brand Showcase is an event that brings together the local CPG community, connecting early- and mid-stage brands with retailers and industry partners.

Texas Statewide Support and Resources for CPG Businesses

Across Texas, various programs and organizations are dedicated to supporting CPG startups:

• The Office of the Texas Governor provides a comprehensive list of resources dedicated to assisting veteran, minority, and women-owned businesses in starting and growing their enterprises. These resources include guidance on business planning, financing, and certification processes.
• SKU: As the nation’s leading consumer products accelerator, SKU provides an ecosystem that offers mentorship, resources, and access to investors, helping founders scale their brands effectively.
• Naturally Austin: This nonprofit organization focuses on nurturing natural product businesses through networking events, educational programs, and mentorship opportunities, contributing to the growth of the CPG sector in Austin and beyond.

The state’s business-friendly environment, coupled with a collaborative community and access to key retailers, makes Texas an ideal location for CPG startups aiming to innovate and expand.

Women & Minority Entrepreneurship in Texas

Texas actively supports diversity in business, offering specialized programs and funding opportunities for women and minority entrepreneurs:

True Wealth Ventures: A venture capital firm investing in women-led companies focused on sustainability.

Texas Women’s University Center for Women Entrepreneurs: Offering funding and mentorship for women-led startups.

The Texas Small Business Diversity Fund: Providing capital to minority-owned businesses.

National Association of Women Business Owners (NAWBO) and Women’s Business Council – Southwest: Providing networking, funding, and advocacy support.

7. Timing is Everything

With global shifts toward remote work and decentralized operations, Texas is uniquely positioned to support startups. Its infrastructure, low operational costs, and strategic location (central in the U.S.) make it a natural choice for businesses looking to scale efficiently. And as new industries like Artificial Intelligence, clean energy, and EV infrastructure take center stage, Texas is already leading the way.

8. Bigger is Better in Texas

If you’re ready to grow your startup in a thriving ecosystem with world-class resources, a low cost of living, and a network of innovators, Texas is calling.

Texas is not just a state, it’s a movement.

It’s not just a state, it’s a movement. And your technology (healthtech, fintech, logitictech, sports-tech, enterprise AI, innovation) startup could be the next big thing in a place where everything is bigger, even innovation.