28 Hottest Startups in Austin, TX

The COVID-19 pandemic has significantly impacted the Austin startup scene, creating a roller coaster of ups and downs. However, despite economic challenges, the investment landscape remained active throughout the pandemic.

The style of investment has shifted, but the pace has not slowed. Austin’s economy has shown resilience, often feeling the impact of economic downturns less severely and recovering faster than other markets.

In 2022, Austin startups raised a total of $5 billion in funding, which was the second-highest amount in local history, slightly down from the $5.4 billion raised in 2021. The Austin area is home to more than 25 unicorn companies (companies with a $1 billion-plus valuation).

As of now, Austin-based startups are worth more than $128 billion, which is an all-time high​​.

The biggest sectors for Austin startups

Manufacturing is a sector showing strong performance in Austin, with a notable number of companies involved in space, biotech, and medical devices. However, the blockchain, cryptocurrency, and Metaverse sectors have experienced a slowdown due to recent economic conditions and controversies.

Transportation and real estate startups led the way in 2022, each raising $1.8 billion in capital. Over the past five years, the sectors that have received the most venture capital investments are health (13.1% of total investments), property tech (12.5%), financial tech (12%), and transportation (12%)​.

Talent is a crucial driver of Austin’s growth. Despite fluctuations and increasing costs in the talent market, it remains robust and is likely at its strongest point ever. The city has been successful in attracting and retaining talent, filling gaps in senior or specialized roles, and making it an attractive location for company headquarters.

28 hottest startups in Austin, TX

In the following section, we’ve curated a list of Austin’s hottest startups for 2023. These trailblazing companies are not only redefining innovation but also driving the city’s economic growth. They are making waves in their respective industries, pushing boundaries, and setting new standards for what’s possible.

So, without further ado, let’s explore these exciting ventures that are putting Austin on the global startup map.

#1 EnergyX

• Sector: Energy management
• Official website: energyx.com
• Year founded: 2016
• Last funding round: Debt financing, $500.000 in March 2021

EnergyX is a company that focuses on the development of lithium extraction technologies and sustainable energy storage solutions. Their primary offering is a lithium extraction technology that  separates lithium ions from other mineral ions in brine resources.  EnergyX’s patented Direct Lithium Extraction Technologies aim to address the global lithium supply shortage, offering high recovery rates and economic outcomes from various unique brine sources. The company also works on refining technologies to convert brine into sellable products and is innovating in the development of next-generation batteries. EnergyX’s mission is to become a worldwide leader in the global transition to sustainable energy, aiming to power a sustainable future with lithium and batteries.

#2 SchooLinks

• Sector: Education
• Official website: schoolinks.com
• Year founded: 2015​
• Last funding round: Series A, $8.3 million in March 2021

SchooLinks provides a platform that utilizes artificial intelligence to aid in college and career preparedness for K12 districts, thereby enhancing their counseling procedures and overall district results. The platform is designed with a student-focused approach, generating a rich pool of behavioral data, which is then used by the platform’s machine-learning algorithms to personalize college suggestions and content, thereby boosting student involvement. SchooLinks also provides insights to counselors, allowing them to enhance their effectiveness. On a broader scale, the data models provided by SchooLinks furnish administrators with a comprehensive range of tools for accountability, empowering them to track and achieve their college and career readiness objectives.

#3 Everly Health

• Sector: Health care
• Official website: everlyhealth.com
• Year founded: 2015
• Last funding round: Series F, January 2022

Everly Health (previously EverlyWell) creates easy-to-use, self-administered diagnostic kits for an array of home-based, regulatory-compliant tests. These tests cover a wide spectrum of health areas, such as food sensitivity, fertility, hormone levels, sexually transmitted diseases, thyroid function, and metabolism, among others. This enables users to carry out the tests in the comfort of their own homes and receive physician-reviewed results and insights. The kits are designed in such a way that customers can effortlessly collect their samples and mail them back using the prepaid expedited packaging provided. The company then swiftly delivers the results via a secure mobile platform.

#4 SanaBenefits

• Sector: Health care
• Official website: sanabenefits.com
• Year founded: 2017
• Last funding round: Series B, $60 million in June 2022

Sana Benefits offers a Software as a Service (SaaS) platform that facilitates small to medium-sized businesses in providing comprehensive benefit plans for their employees. The service encompasses a wide range of healthcare provisions, including medical, dental, vision, virtual primary care, mental wellness, physical wellness, pediatric care, and maternity care, catering to the needs of employers, members, brokers, and providers alike. The company prides itself on offering transparent, straightforward plans at fair prices, with an emphasis on customer service.

#5 SonderMind

• Sector: Health care
• Official website: sondermind.com
• Year founded: 2014
• Last funding round: Seriec C, $150 million in July 2021

SonderMind is a digital healthcare company that focuses on transforming the field of behavioral health. It achieves this by providing easy access to therapy services, promoting increased usage of these services, and ensuring high-quality outcomes validated by data. The company has an extensive network of licensed therapists, most of whom are recognized by major insurance providers. For individuals not using insurance, SonderMind also offers affordable self-pay rates. To facilitate the optimal therapist-client match, SonderMind uses an online quiz to assess user needs and preferences. Clients then have the flexibility to meet their matched therapist either in person or through a virtual platform. Its customer reviews highlight the swift therapist-matching process.

#6 Diligent Robotics

• Sector: Health care, Robotics
• Official website: diligentrobots.com
• Year founded: 2017
• Last funding round: Series B, $30 million in April 2022

Diligent Robotics is a robotics company that focuses on human-centric design. The company’s mission is to develop technological advancements that facilitate seamless collaboration between humans and robots, specifically in everyday environments. Their development efforts revolve around a suite of artificial intelligence that enables robots to interact with and adapt to human behaviors. The first product they launched is a hospital service robot Moxi that is capable of assisting clinical staff with logistical tasks. This assistance allows healthcare professionals to dedicate more time to direct patient care, which, in turn, enhances patient satisfaction, service quality, and safety.

#7 Wheel

• Sector: Health care
• Official website: wheel.com
• Year founded: 2018
• Last funding round: Series C, $150 million in January 2022

Wheel is a telehealth company that operates a platform designed to connect doctors with patients and empower businesses to establish their own virtual care practices.  Wheel’s software platform is responsible for vetting, training, and credentialing virtual care clinicians, and then matching them with patients in real-time for various companies’ virtual care programs. Over the past year, the platform has demonstrated remarkable growth, facilitating nearly half a million patient visits and significantly increasing its contracted revenue. Wheel has also been successful in attracting thousands of contract clinicians to join its network, and boasts a high retention rate.

#8 data.world

• Sector: Data management
• Official website: data.world
• Year founded: 2015
• Last funding round: Series C, $50 million in April 2022

Data.world is a cloud-native platform that merges virtualization with metadata management, providing a comprehensive solution for data management and analysis. It offers a centralized metadata repository for easy storage, management, and retrieval of metadata. The platform also includes a business glossary, which ensures a common language for business and technical terms across the organization. Other features include data lineage tracking, impact analysis, rule management, semantic frameworks, and metadata ingestion and translation, all contributing to a robust and flexible data management system.

#9 Arrive Logistics

• Sector: Transportation, Logistics
• Official website: arrivelogistics.com
• Year founded: 2014
• Last funding round: Private Equity, $300 million in April 2021

Arrive Logistics is a carrier and customer-centric freight brokerage company. It delivers unparalleled service, seamless tech capabilities, and custom strategic solutions. The company’s core focus is on optimizing operations, identifying efficiencies, and developing technology to enhance the freight process. This includes a critical examination of every element of the freight process, with the goal of anticipating client needs, increasing capacity, and ensuring a consistent freight experience. Arrive Logistics started as a small team and has grown into an organization of over 1,700 employees. It has achieved significant financial success, reaching $30 million in truckload sales in its first year and surpassing $2.35 billion in revenue by 2022.

#10 Shipwell

• Sector: Supply Chain, Logistics
• Official website: shipwell.com
• Year founded: 2016
• Last funding round: Series B, $35 million in October 2019

Shipwell is a cloud-based platform that serves as a nexus for shippers, carriers, and supply chain APIs. It provides real-time communication and uses advanced analytics to identify opportunities within supply chain networks. The platform also functions as a marketplace for shippers to connect with freight companies and offers online tools for shipment management. In addition to these services, Shipwell’s platform includes capabilities for transportation management, visibility, and procurement, all designed to adapt and scale with changing market and business demands. This comprehensive solution allows shippers to manage and optimize their shipping processes seamlessly.

#11 Overhaul

• Sector: Supply Chain, Logistics
• Official website: over-haul.com
• Year founded: 2016
• Last funding round: Private equity + Debt financing, $73 million in March 2023

Overhaul is a company that offers supply chain integrity solutions, enabling shippers to integrate various data sources into a fully transparent platform tailored for the logistics industry. It provides a SaaS solution that encompasses supply chain visibility, risk management, compliance, and insurance for freight transportation. Overhaul offers high configurability and efficient time-to-value without the heavy tech debt associated with hardware-based providers. The company works closely with each client to create a fully customized solution for the entire supply chain. Overhaul serves a range of industries, including pharmaceutical and healthcare, technology, logistics, and food and beverage, and counts Microsoft, Bristol Myers Squibb, and CEVA among its customers.

#12 Fox Robotics

• Sector: Supply Chain, Logistics
• Official website: foxrobotics.com
• Year founded: 2018
• Last funding round: Series Unknown, $33 Million

Fox Robotics is a company that creates autonomous forklift trailer unloaders, designed to automate operations and reduce costs. Their technology transforms standard lift trucks into self-driving machines with precise navigation and robust pallet handling capabilities. The company’s technology takes a standard lift truck and equips it with sensors and software, enabling self-driving and robust pallet handling. This is achieved through the integration of advanced robotics, machine learning, and optimization techniques. Fox’s autonomous forklifts can be installed in a new warehouse in less than a day, significantly improving efficiency. The company has successfully deployed its technology at numerous sites, including high-demand environments like DHL Supply Chain.

#13 Strangeworks

• Sector: Computing
• Official website: strangeworks.com
• Year founded: 2018
• Last funding round: Series A, $24 million in March 2023

Strangeworks is a software company that specializes in making quantum computing technology accessible. They provide a platform where users can access a range of quantum solutions and resources that can be integrated into their existing workflows. The company is also expanding into AI products and services. Strangeworks’ mission is to guide companies through the complexities of quantum computing, making this advanced technology easily accessible to all, from software developers and researchers to IT administrators and CIOs.

#14 8fig

• Sector: Fintech
• Official website: 8fig.co
• Year founded: 2020
• Last funding round: Series B, $40 million in May 2023

8fig is a company that offers a development planning and funding platform specifically designed for e-commerce sellers. The platform provides flexible funding solutions that align with businesses’ supply chain requirements, thereby facilitating their growth. Based in Austin, Texas and Tel Aviv, Israel, 8fig’s team comprises experts in e-commerce, finance, and supply chain management. Their mission is to help e-commerce sellers achieve eight-figure revenue through their funding and supply chain planning tools.

#15 Onuu

• Sector: Fintech
• Official website:onuu.com
• Year founded: 2021
• Last funding round: Seed, $6.3 million in March 2022

Onuu is a fintech company dedicated to serving underserved communities by offering financial literacy advice, low-interest credit lines, and life insurance. With an Onuu membership, individuals can embark on a path toward financial security. The company provides an all-in-one platform where members can access a credit card, savings account, life insurance, and financial literacy resources. Onuu’s mission is to promote financial security for those who lack it.

#16 StellarFi

• Sector: Fintech
• Official website: stellarfi.com
• Year founded: 2021
• Last funding round: Series A, $15.5 million in March 2023

StellarFi is a Public Benefit Corporation aiming to disrupt the cycle of poverty by offering its users the flexibility to pay their bills on their own schedule, while simultaneously building credit and generating value. The company stands out as the first and only credit-builder that reports all bill payments as credit transactions directly to the four major credit bureaus. This innovative approach allows members to pay everyday bills like rent, utilities, and subscriptions while automatically building their credit. Led by a team of experienced fintech veterans, StellarFi seeks to disrupt and enhance conventional credit reporting standards.

#17 Chipper

• Sector: Fintech
• Official website: chipper.app
• Year founded: 2018
• Last funding round: Seed, $5.6 million in March 2022

Chipper is a student loan app designed to help borrowers manage their debt more effectively. The app’s mission is to provide modern financial products for a generation burdened with student debt. Chipper offers a straightforward platform that empowers users to discover forgiveness programs and repayment plans that align with their financial goals. Additionally, the app features tools like Round-Ups and rewards to help users pay off their debt faster. On average, Chipper members save $6,400 and reduce their repayment period by 2.5 years.

#18 Lendflow

• Sector: Fintech
• Official website: lendflow.io
• Year founded: 2019
• Last funding round: Series A, $10.8 million in October 2021

Lendflow is a company that provides tools for embedding credit products into platforms, streamlining processes like applications, decision-making, and underwriting. Their services cater to businesses of varying sizes and credit risks. Lendflow’s embedded credit infrastructure allows fintechs, lenders, and software companies to build and launch credit products. This infrastructure includes a decisioning engine, product placements, and a marketplace of lenders. Lendflow enables fintechs to launch credit products quickly, SaaS companies to enhance customer engagement with embedded credit, and SMBs to access capital swiftly.

#19 CoSell

• Sector: Social networking
• Official website: cosell.io
• Year founded: 2021
• Last funding round: Pre-Seed, $2 million in January 2021

CoSell is a platform designed to foster relationship-driven growth in sales and revenue for organizations. It operates similarly to a dating app, but its focus is on professional networking. The company’s sales software is designed to streamline operations, offering a co-selling technology that works across secure customer relationship management systems. This technology helps identify valuable customer information, acting as a tool for startups and other businesses to accelerate their revenue growth.

#20 Gigaroo

• Sector: HR, Recruitment
• Official website: gigarooapp.com
• Year founded: 2022
• Last funding round: Pre-Seed, $2.5 Million in June 2023

Gigaroo is an AI startup that offers a recruitment platform designed specifically for the service industry. It aims to match job seekers with employers based on their lifestyles, interests, and needs, with a particular focus on Generation Z. Gigaroo uses a comprehensive AI platform to connect GenZ individuals with flexible job options that align with their skills and interests. This approach provides them with opportunities to earn income while pursuing their passions. The company is committed to empowering GenZ individuals, providing them with the tools, resources, and opportunities they need to achieve financial stability and success in today’s rapidly changing economic landscape.

#21 Slingshot Aerospace

• Sector: Aerospace
• Official website: slingshotaeorospace.com
• Year founded: 2017
• Last funding round: Series A, $41 million in December 2022

Slingshot Aerospace is a company that develops space simulation and analytics solutions. Their data and analytics tools provide operators with the necessary clarity to maximize mission success. The company serves both government and commercial space organizations, helping them design, manage, and safeguard their assets, as well as mitigate risks to ensure safe and reliable operations. Slingshot Aerospace’s decision intelligence technologies integrate data streams from various sources, such as satellites and ground-based sensors, to provide comprehensive context for organizations. This allows them to bring physical elements into the digital world, enabling quick navigation, visualization, analysis, and utilization of data from Earth and Space.

#22 Jasper

• Sector: Content creation
• Official website: jasper.ai
• Year founded: 2015
• Last funding round: Series A, $125 million in October 2022

Jasper is an AI company that provides a writing tool designed to help users find the right words or tone to express themselves. The tool generates text based on user prompts, assisting with the creation of various types of marketing copy, including blog entries, product descriptions, company biographies, ad content, and social media captions. Jasper functions as a creative AI assistant that can learn and write in a user’s unique brand tone. It also offers a browser extension, Jasper Everywhere, which keeps the AI assistant accessible across various platforms, from CMS to email to social media. The company prioritizes data safety and privacy, incorporating up-to-date security features. With over 100,000 customers, Jasper is widely used for creating unique, personalized content.

#23 StoryFit

• Sector: Content creation
• Official website: storyfit.com
• Year founded: 2015
• Last funding round: Series A, $5.5 million in October 2022

StoryFit is a startup that leverages artificial intelligence to support creative decision-makers in producing memorable stories. The company offers machine learning insights to narrative content, helping to understand how a story fits into the larger landscape and how to find a story that fits an audience, and vice versa. StoryFit provides AI insights and machine learning solutions for the book publishing, movie, and television production industries. Their products empower publishers and studios to overcome challenges in today’s content-rich economy.  The company’s vision is to support the production of memorable stories by providing adaptable and dynamic machine learning insights into narrative content.

#24 Hearth

• Sector: Fintech
• Official website: gethearth.com
• Year founded: 2016
• Last funding round: Series B, $23 million in May 2021

Hearth is a fintech company that provides an all-in-one software solution designed to help home improvement professionals grow and manage their businesses. The platform offers a range of financial tools, including customer financing, contract modification, digital payments collection, and business marketing features. Hearth’s software is used by over 10,000 contractors, providing them with the resources they need to close more businesses. These resources include financing solutions, invoicing, payment collections, and insurance products, all integrated into a modern system specifically designed for the home improvement industry.

#25 UpEquity

• Sector: Real estate
• Official website: upequity.com
• Year founded: 2019
• Last funding round: Series B, $20 million in October 2021

UpEquity is a platform that aims to streamline the mortgage process and provide every individual with the opportunity to make competitive offers on homes. The platform enables users to buy homes before selling, purchase new homes, or refinance their current homes. UpEquity is particularly focused on serving underserved and underrepresented populations living with rare and serious chronic health conditions in the US and its territories. The company works to improve quality-of-life indicators through research-based outcomes and actionable recommendations. Their goal is to drive change, eliminate barriers for impacted communities, challenge the status quo, and contribute meaningfully to the advancement of health equity.

#26 Steadily

• Sector: Real estate
• Official website: steadily.com
• Year founded: 2020
• Last funding round: Series A, $22.6 million in November 2021

Steadily is a comprehensive insurance provider specifically designed for landlords. The platform offers property and liability insurance for rental property owners and investors, covering a wide array of risks such as fire, water damage, windstorm, hail, lightning, lawsuits, riot and civil commotion, vandalism, theft, and injury. Additional coverages are also available for other perils like explosions, volcanic eruptions, and vehicle-induced damage. Available across all 50 states in the U.S., Steadily’s mission is to modernize landlord insurance, making it fast, affordable, and backed by excellent service. The company leverages its extensive insurance experience along with robust technology and design to provide a positive customer experience.

#27 Royal

• Sector: Music, Blockchain
• Official website: royal.io
• Year founded: 2021
• Last funding round: Series A, $55 million in November 2021

Royal is a unique platform that allows fans to invest in music by purchasing a portion of a song or album’s streaming royalty rights. Users can build a portfolio of artists they believe in and earn royalties with every stream. The platform also features an active marketplace for trading these rights. As the music plays on digital platforms, users collect a portion of royalties, earning more when songs outperform estimates. Artists share ownership through Royal, offering exclusive benefits to investors. With $7.5M in music rights traded and $2.5M raised for artists, Royal is creating a new era of artist-fan connection through collective ownership, empowering artists and connecting them with their biggest supporters.

#28 Osano

• Sector: Compliance
• Official website: osano.com
• Year founded: 2018
• Last funding round: Series A, $11 million in September 2021

Osano is a data privacy management platform that simplifies privacy compliance for organizations. It offers features for consent management, data subject rights management, privacy assessments, and vendor privacy risk management. The platform is designed to help organizations build, manage, and scale their privacy programs, ensuring compliance with regulations like GDPR, CCPA/CPRA, LGPD, and more. Osano provides transparency and control over the personal data processed by organizations, increasing trust. The platform is used by thousands of companies to maintain compliance and build consumer trust. Osano’s vision is to make data privacy compliance accessible and straightforward for all organizations.

Conclusion

The startup scene in Austin continues to thrive and evolve, carving out a unique space in the global entrepreneurial landscape. The city’s ability to attract top-tier talent, coupled with its resilient economy and innovative spirit, has fostered a dynamic ecosystem where startups can flourish.

The companies we’ve highlighted in this article are just a snapshot of the vibrant entrepreneurial activity taking place in Austin. As we move forward, we can expect to see these startups and many others continue to push boundaries, disrupt industries, and redefine what’s possible.

The future of Austin’s startup scene is not only bright but also promises to be a beacon of innovation and creativity in the years to come.

Have you enjoyed exploring our list and feel intrigued by the dynamic Austin scene? There’s so much more to discover! If you’re interested in diving deeper, don’t hesitate to reach out. We’re here to provide you with insights, guidance, and connections that can help you navigate this exciting landscape.

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