While it might have flown under the radar, Texas has become one of the hottest areas for startups. Much of Texas' startup success over the past five years can be attributed in large part to the city of Austin, which has become one of the most successful cities in terms of developing successful startups. Austin has been known as a liberal and Democratic city with low property taxes, a low cost of living and a lot of job opportunities.

Low costs and the amount of talent that has moved to Austin has caused the city to become one of the most desirable locations for startup headquarters. Before long, the city will be spoken in the same breath as Silicon Valley and New York City, thanks to its many budding startups.

AppSumo

AppSumo originally started as a deals website that distributed digital goods. This is in stark contrast to the other deals websites and flash sites that offer and deliver physical products to its consumers.

The selection of digital goods that the company offers has expanded to include general apps, e-books, learning courses, copywriting courses, email marketing and project management apps. Thanks to the digital nature of all these products, AppSumo's business model allows it to deliver goods with more flexibility than traditional deal site models.

The business model for AppSumo also cuts down on the company's cost. No shipping or handling is required, making the margins very desirable.

BigCommerce

BigCommerce is the leading e-commerce solution for small to medium businesses. The company is designed to help the best up and coming companies and brands launch online stores that allow the businesses to distribute their products and increase their revenues.

Through the use of BigCommerce's e-commerce platform, retailers can launch, promote and manage online stores. In addition, these retailers can personally design a storefront, configure products, as well as manage, measure and optimize their online business presence.

The company also offers its customers social media marketing, email marketing, promotions and coupons, multichannel marketing, search engine optimization, conversion optimization, e-commerce analytics tools, themes and mobile commerce.

Silvercar

Silvercar was founded in 2012 to eliminate the frustrations and points of friction that have been a part of the rental car industry since its inception.

The company provides a seamless car rental services, offering exclusive and fully loaded silver Audi A4s. Silvercar's service eliminates lines, counters, paperwork and additional hassles with the company's mobile app and its friendly concierge service.

The company's mission is to disrupt the rental car industry and the airport car rental business. With a blend of easy to use services, a fleet of high-quality rental vehicles and its great customer service, the company is quickly becoming one of the biggest rental car companies in Austin.

SpareFoot

SpareFoot is the biggest and simplest marketplace for self-storage. In addition, it provides leading Web marketing solutions for the storage operators that are listed on the platform.

The company's free online marketplace lets customers find and reserve their own self-storage units online through a Web-based platform.

The company has the largest inventory of overall storage units in the United States, with more than 9,400 self-storage facilities. These facilities are made up of everything from independent operators to large, publicly traded real estate investment trusts (REITs).

The idea behind SpareFoot is to connect consumers with facilities in a way that allows both to benefit from an ease of search and discoverability.

AGBeat

AGBeat focuses on delivering business news to small and medium businesses. The differentiating factor of this company is that it commits to delivering the most honest news as well as accurately chronicle the evolution of digital technology and how it affects consumers.

AGBeat condenses the most relevant business news and delivers it to leaders within small and medium businesses, providing them with news, insights, tools and inspiration. The company delivers news that is relevant to technology, business, social media, startups, real estate and economics.

WP Engine

Many of the most successful startups are actually built around the platforms of other companies and startups. WP Engine is a prime example; it is a premium service that manages hosting services for websites and apps built with WordPress.

WP Engine has found success by focusing on only servicing users of WordPress and is able to scale its business due to its focused and specialized service. The service and associated platform offers security and scalability along with great technical support and operational advice and insight for high-growth websites.

TabbedOut

TabbedOut has been able to bring mobile payments to the hospitality industry, especially to businesses such as bars, restaurants and hotels. The company was created by security software professionals and card payment experts to bring the best technology as well as the best thinking behind mobile payments to the hospitality industry.

The mobile platform allows merchants the ability to accept payments, track guest history and then distribute that history to the hospitality staff, which helps to create a more personalized experience.

TabbedOut allows the wait staff to spend more time serving customers instead of splitting and calculating checks. What's more, the company guarantees gratuities from every customer.

Schoox

Schoox offers the best learning and knowledge management system for organizations. It aggregates the best content providers to offer its corporate customers and its individual community members the best courses on a range of topics.

The company allows people to create courses to train staff members, partners or customers. Regardless of the organizational structure, it's possible to create access and assignments based on specific needs.

Beatbox Beverages

Beatbox Beverages is a trendy company that offers boxed wine that is fresh and fun – and definitely not boring. The company offers 5-liter boxes of wine that lets consumers take their wine to a friend's house, to the beach or to a park.

Favor

Favor is a mobile app that delivers literally anything a consumer wants. Whether it is food or a video game, the company's mobile app connects consumers with local delivery drivers who can pick up whatever it is the consumer wants.