February 2025: Austin Startup Ecosystem Update + Event Details

Nabeeha Ghani -

Welcome to the February 2025 update on Austin’s startup ecosystem! The local startup scene is continuing to thrive with entrepreneurs bringing high energy and incredible innovations. Read on to learn about the latest trends, events, and insights that every early-stage founder should know about.

We had a large turnout and excellent pitches at our Austin Startup Meetup this February. As always, we started with ATX Ecosystem, and then gave attendees a list of resources and upcoming deadlines. Then, we had over a dozen founders step out of their comfort zone and give lightning pitches while the audience asked questions about their pitch.

We also gave away a 100% FREE personal subscription to a JetBrains product.

  • 📍 Where
    • Voltron (1st Floor) @ Capital Factory
  • 🕝 When
    • February 3rd, 2025 6pm-9pm CST
  • 🔗 Event details and RSVP for future events here.
  • 💻 Get the event presentation slides here.

State of the Startup Ecosystem

As of February 2025, Austin’s startup ecosystem continues to evolve, showing a mix of challenges and opportunities. While venture capital funding has tapered off from the highs of 2021 and 2022, sectors like AI, greentech, and healthcare are still drawing strong investor interest. Austin remains a vibrant innovation hub, thanks to its top-tier talent pool and close ties to research powerhouses like UT Austin.

Upcoming Events

There are events for startups to look forward to in Austin.

  • TCEA Convention & Exposition - EdTech (February 1-5, 2025): This educator-focused professional development event is annual gathering for educators to connect, learn, and enhance teaching with ed tech tools. Features top seminars, an exhibit hall, and professional learning for teachers, librarians, and administrators.
  • Customer Success Summit (February 11-12, 2025): Gain insights from Customer Success experts to drive customer value, reduce churn, and boost team performance. Network with a global Customer Success community and acquire career-advancing skills to demonstrate Customer Success' strategic value to management.
  • Product Marketing Summit (February 11-12, 2025): Explore trends, connect with thought leaders, and master go-to-market strategies. Network within the largest Product Marketing community, sharpen skills in AI, data storytelling, and win-loss analysis, and showcase your strategic value to management.
  • Product-Led Summit (February 11-12, 2025): Learn the latest trends and strategies to amplify your product’s value in competitive markets. Connect with a vibrant community of product enthusiasts, gain expert advice, and advance your career with insights from seasoned industry leaders.
  • Capital Factory’s House and Startup Crawl (March 7-11, 2025): This event will provide a great opportunity for founders to network and for startups to showcase their products and meet potential partners and customers.
  • As always, the most anticipated event in the Austin calendar is the South by Southwest (SXSW), the annual conglomeration of parallel film, tech, interactive media, and music festivals and conferences. It is scheduled for March 7-15, 2025, with early preparation already starting for this significant tech and culture event. Keep an eye on the discounted ticket sales and applications for showcase or pitch events.

Large events are fun, but do not discount the power and personal nature of local meetups that can be as good or even more fulfilling. Here are some that you should know about:

Upcoming Deadlines

Here are some important upcoming deadlines for accelerator, incubator, and investment programs that Austin startups should keep an eye on:

  • February 11, 2025 – Y Combinator Spring 2025 Batch application deadline. As one of the most prestigious startup accelerators in the world, Y Combinator offers mentorship, funding, and networking opportunities. Startups accepted into the Spring 2025 batch will begin have the chance to pitch to some of the world’s top investors​.
  • March 17, 2025 – Central Texas Angel Network (CTAN) Cycle 2 application deadline. CTAN offers startups an opportunity to raise early-stage capital and gain access to a robust network of investors across Central Texas. The application deadline for Cycle 2 in 2025 is approaching for companies looking to secure funding and mentorship from local angel investors​. There are 6 total cycles in 2025.
  • July 26, 2025 - Founder Institute Austin 2025 Early Application Deadline. FI Core is a 4-month program for pre-seed founders, offering structured growth sprints, constant expert feedback, and a supportive network. It helps build fundable businesses through weekly sessions, tailored tracks, and clear milestones, preparing founders for investment and growth.
  • August 31, 2025 - Founder Institute Austin 2025 Final Application Deadline. FI Core is a 4-month program for pre-seed founders, offering structured growth sprints, constant expert feedback, and a supportive network. It helps build fundable businesses through weekly sessions, tailored tracks, and clear milestones, preparing founders for investment and growth.

Additionally, keep an eye out for other notable programs with rolling or upcoming deadlines, like Techstars and MassChallenge, which offer various programs for startups at different stages of growth. These accelerators often provide a mix of funding, mentorship, and exposure to a global network of investors and mentors.

News of Interest To Startups

The Central Texas Angel Network (CTAN) has launched Version 2.0 of its Startup Success Package, offering over $550,000 in credits and resources to support early-stage startups. The enhanced package includes credits from AWS, Google Cloud, and Microsoft Azure, along with legal, HR, and fundraising services. New partners like Dropbox, Rippling, and Notion add significant value to the package, which aims to help more than 500 founders annually. CTAN’s initiative is designed to foster innovation and accelerate startup growth in Central Texas.

For more information and how to apply, visit ctan.com.

Investments in Austin Startups

Despite a challenging funding environment, several Austin-based companies secured significant investments in recent months:

  • Austin VC Funding Drops 29% in Q4 2024 Despite Yearly Total Matching 2023: Austin startups raised $804.5 million in venture capital in Q4 2024—a 29% drop year-over-year and a 25% decline from Q3—amid a 47% decrease in deals, according to Pitchbook and the NVCA. Despite the quarterly slowdown, Austin startups matched 2023’s total by securing $4.5 billion across 487 deals in 2024, up 7% from the prior year’s 455 deals. The top Q4 deals included Firefly Aerospace ($175.5M), Halcyon ($115M), and Ladder ($105M). Nationally, startups attracted $209 billion in 2024, surpassing pre-pandemic and 2023 totals but lagging behind highs from the near-zero interest rate era. The NVCA notes “cautious optimism” heading into 2025, with potential regulatory shifts and a new tax bill possibly bolstering startup investment.
  • Colossal Biosciences Raises $200M for De-Extinction: Dallas-based Colossal Biosciences secured $200M in Series C funding, boosting its valuation to $10.2B. Led by TWG Global, this supports its efforts to revive the woolly mammoth, Tasmanian tiger, and dodo. CEO Ben Lamm highlighted progress in AI-driven genome editing and artificial womb technology for conservation. The Dallas-based company, with 170 scientists, is advancing gene-editing for its species projects, aiming to restore the mammoth by 2028.
  • MakersHub Grows Seed Round to a Total of $11.5M for AP Automation: Austin-based MakersHub, an accounts payable platform co-founded by Wharton Executive MBA alumni Phong Ngo and Charley Howe, has raised an additional $7 million in Seed funding, bringing its total to $11.5 million. The round was led by QED Investors and TTV Capital, with participation from Dash Fund, TRB Advisors, and several angel investors. As part of the deal, QED Partner Laura Bock and Athletic Brewing CEO Bill Shufelt will join the Board of Directors. The new capital supports MakersHub’s plans to enhance its data-driven platform, expand its sales and marketing efforts, and continue its mission to streamline financial operations for businesses and accounting professionals.
  • enSights Raises $10 Million in Series A for AI-Powered Clean Energy Optimization: Austin-based enSights, co-founded by Alon Mashkovich (CEO), Roy Fadida (CPO), and Dekel Yaacov (CTO), secured $10 million in a Series A round co-led by JAL Ventures and XT VC, with additional support from the Menomadin Foundation. This capital will support enSights’ expansion—particularly in the U.S.—and further develop its AI-driven platform that combats underperformance in photovoltaic (PV) assets. With 6,000 clean energy assets under management across four continents, enSights aims to streamline operations and maintenance for an industry projected to reach $67–$101 billion in software spending by 2027.
  • Billd Secures $17.5 Million in Strategic Funding: Billd, a financial solutions provider for commercial subcontractors, is revolutionizing construction finance with innovative capital access tailored to industry needs. The funding will drive product expansion, accelerate growth, and enhance support for subcontractors nationwide.
  • Marqii Secures $10 Million in New Funding: Marqii, a digital operations platform for hospitality businesses, is doubling down on product innovation, team growth, and expanded partnerships to enhance review management and digital guest experiences for operators of all sizes.
  • RapidCanvas Secures $16M Series A to Address Tech Talent Shortage with AI Agents: RapidCanvas raised $16M in a Series A round led by Peak XV, with Accel, Titanium Ventures, and Valley Capital Partners participating. The funding will accelerate its AI agents, which automate up to 75% of technical tasks, empowering businesses to implement AI solutions faster and at lower costs.

Investors are paying close attention to Austin-based companies working on AI, blockchain, and health tech, signaling continued interest in innovative solutions coming out of Texas.

Launches, Exits, and Mergers

There have been some exciting exits and launches in the Austin startup scene recently.

  • First Dollar Joins Inspira Financial: First Dollar, an Austin-based provider of consumer-directed health benefit solutions, has been acquired by Inspira Financial. The acquisition enhances Inspira’s health and benefits platform and integrates First Dollar’s technology and development team into Inspira’s operations, aiming to streamline health consumerism while maintaining its innovative Austin roots.

Other News

  • Stargate Project – $500B AI Investment Launches in the U.S.: SoftBank and OpenAI have announced Stargate Project, a $500 billion AI infrastructure initiative over four years, starting with a $100 billion investment in Abilene, Texas. Backed by Microsoft, NVIDIA, Oracle, and Arm, the project aims to advance AI and AGI, create hundreds of thousands of jobs, and boost U.S. technological leadership. Expansion plans are underway, with OpenAI deepening its Microsoft Azure collaboration. Leaders call it a transformative step for AI and national security.
  • Austin to Open SBA Women’s Business Center: The Better Business Bureau of Austin will launch a Women’s Business Center with an SBA grant, part of a $26.25M national initiative supporting women entrepreneurs. One of 13 new centers, it will offer business counseling, training, and networking to help local women-owned businesses grow. The initiative aligns with Mayor Kirk Watson’s Task Force on female founders, led by Carla McDonald. The center joins the SBA’s 168-location network, with opening details coming soon.
  • Waterloo Records has new owners and a new home: Iconic Austin record business was searching for new location amid plans to raise a high-rise in its longtime spot.
  • Fewer Tech Deals in Austin, but Optimism Remains: Despite a slowdown in tech deals, the Austin startup ecosystem remains strong. Investors are becoming more selective, focusing on quality over quantity, which could benefit startups with robust business models.
  • Creative Space Incentives: The Planning Commission’s approval sets the stage for City Council to boost creative spaces in Austin, which could positively impact startups in the creative, media, and tech industries.
  • Firefly Aerospace Launches Blue Ghost Lander to Pave Way for Artemis Moon Return: Firefly Aerospace’s Blue Ghost lunar lander launched early Monday aboard a SpaceX Falcon 9 from Kennedy Space Center, aiming for a March landing in the Moon’s Mare Crisium under NASA’s Commercial Lunar Payload Services initiative. After separation, it established contact with mission control in Cedar Park, Texas, and completed initial commissioning. Over the next 60 days, “Ghost Riders in the Sky” will orbit Earth, transit to the Moon, and operate 10 NASA payloads focused on dust mitigation, drilling, and eclipse photography. The mission supports NASA’s broader Artemis campaign, aiming to establish a sustained human presence on the Moon.

Conclusion

As we step into 2025, the Austin startup ecosystem remains a dynamic hub of opportunity, innovation, and collaboration. Despite some challenges, such as a slower funding environment, the community continues to thrive, particularly in high-growth sectors like AI, health tech, and greentech. With a full calendar of networking events, meetups, and accelerator programs, there’s no shortage of ways for founders to connect, share ideas, and fuel their growth. As always, Austin’s creative spirit and strong sense of community ensure the city stays at the forefront of the tech world. Now is the perfect time to get involved, share your vision, and contribute to shaping the future of this thriving startup ecosystem. Join us at the next Austin Startup Meetup, stay connected with fellow innovators, and let's continue building the future of Austin together!