Texas startups are kicking off 2025 with a serious funding boom, fueled by rising investor interest in sectors like cybersecurity, defense tech, robotics—and yes, even de-extincting woolly mammoths.
In just the first quarter of the year, venture capital firms poured nearly $2.9 billion into companies across the Lone Star State, according to data from Crunchbase. This marks the highest quarterly total in over two years, setting a strong tone for what’s shaping up to be a blockbuster year for Texas startup funding.
Mega-Rounds Dominate the Texas Funding Scene
Bigger is definitely better in Texas right now. Nearly two-thirds of all Q1 funding went to just five startups, highlighting a clear trend toward large-scale investments.
At the top of the list is Saronic, an Austin-based defense tech company building autonomous seafaring vessels. The startup pulled in a massive $600 million round in February, led by Elad Gil, landing it a $4 billion valuation. It’s a huge signal of confidence in defense tech, which has been gaining serious momentum with investors.
Two other heavy hitters from Austin and Dallas also played a major role in the Q1 surge:
- NinjaOne, an automated endpoint management platform, secured $500 million at a $5 billion valuation.
- Island, which develops secure enterprise browsers, closed a $250 million round just last week.
These mega-rounds are fueling the state’s climb up the national startup charts.
Robotics and BioTech Add to the Momentum
Tech innovation in Texas isn’t just about software and security—hardware and biology are getting their moment too.
Austin-based Apptronik, which is building humanoid robots for workplace use, announced an additional $53 million to its Series A round, bringing its total haul to over $403 million. The robotics space is heating up fast, and Apptronik is making sure Texas is on the map.
And for something a bit more wild—literally—Colossal Biosciences raised a staggering $200 million Series C in January. The company, also based in Austin, is using gene-editing tools to bring extinct species like the woolly mammoth back to life. Yes, really.
Fewer Deals, But Much Larger Checks
While total dollars are up, the number of funding rounds is actually down. Fewer deals are closing—but when investors do decide to invest, they’re writing much bigger checks.
Part of the dip may be due to reporting delays in early-stage funding, especially for seed deals. Still, the data clearly shows that startup funding in Texas is trending toward larger, late-stage rounds.
If current trends continue, 2025 could see the lowest number of deals in recent years—but possibly one of the highest in total capital raised. For Texas startups, that could mean fewer chances to pitch, but far more capital available for those who impress.
