As of July 2026, the Texas technology sector is experiencing a remarkable surge, with startup funding reaching an unprecedented $5 billion in the first half of the year.
The vibrant cities of Austin and Dallas are at the forefront of this growth, attracting both national and international investors. According to the Texas Economic Development Corporation, venture capital investments in Texas have increased by 30% year-over-year, largely driven by the infusion of capital into tech startups.
Austin, often dubbed the 'Silicon Hills,' saw a notable uptick with companies such as Everly Health and Chime securing substantial funding rounds. Everly Health, a digital health company, raised $150 million in a Series D funding round led by GV (formerly Google Ventures), which will allow it to expand its telehealth services and user base significantly.
In Dallas, established firms are also capitalizing on this growth. AT&T is investing over $200 million to upgrade its 5G infrastructure, which will support not just consumer devices but also the burgeoning Internet of Things (IoT) landscape. “As we enhance our infrastructure, we are set to lead the way in smart city solutions, which will define urban living in Texas,” said Jessica Lopez, AT&T's Chief Technology Officer.
Another noteworthy player is StackPath, a Dallas-based edge computing company that has doubled its workforce in the past year to accommodate increased demand for its services. CEO Gordon Wylie remarked, “The edge computing market is poised for explosive growth. With our unique solutions, we aim to remain at the cutting edge of technology.”
The surge in Texas tech investment reflects a broader trend, as remote work and digital transformation accelerate demands for technology solutions. Analysts predict that the state’s tech sector will contribute over $40 billion to the Texas economy by the end of the year.
Industry experts credit Texas’ favorable business climate and lower taxes as significant factors attracting startups and established companies alike. The Texas Business Leadership Council reported that the state added over 25,000 tech jobs in 2025, with expectations for similar growth in 2026.
As companies continue to innovate and adapt to changing consumer preferences, the outlook for Texas’ tech industry remains bright. Investors and entrepreneurs alike are keenly watching the trends, as the Lone Star State solidifies its place on the global tech map.