Austin startups post record $5.6B quarter led by Boring Co., Base Power

Austin startups post record $5.6B quarter led by Boring Co., Base Power

Austin startups once again recorded their strongest quarter of private fundraising in history, raking in at least $5.6 billion in venture capital, largely driven by an Elon Musk company.

It was the region's strongest quarter of all time, surpassing the $4.2 billion mark set in the first quarter of this year.

Opportunity Austin, the region's independent economic organization, calculated the $5.6 billion total. That's more than 600% higher than the previous quarter and more than 250% higher than the third quarter of last year.

Austin-area startups have raised more than $10.5 billion this year, already surpassing last year's total of more than $7.8 billion.

Here's a look at the third quarter's biggest deals:

Musk's The Boring Company raises $3B

Musk's tunnel startup shattered the Austin-area funding record, a mark that has been broken three times this year, with its $3 billion funding round in September.

The massive round was led by investments from the United Arab Emirates and affiliated entities.

A significant portion of the funding will be used for hiring. It currently has more than 40 open roles out of its Bastrop headquarters, with additional openings in San Antonio, Dubai, Nashville and Las Vegas.

Musk has recently resurfaced the idea of creating a "simple, precursor Hyperloop tunnel between Austin and San Antonio" that would carry passengers at more than 200 mph.

The Boring Company currently runs an underground Las Vegas system carrying passengers in Tesla vehicles.

Musk has floated the idea since 2013, saying passengers would travel through low-pressure or near-vacuum tubes underground. If the project were a true Hyperloop, it would be the world's first.

Zach Dell's Base Power rakes in $1B to scale battery manufacturing

Base Power previously set the record for a single funding round in 2025 when it raised $1 billion for its battery business.

And though that record was broken by Austin-based Saronic Technologies earlier this year and again by The Boring Company, Zach Dell's battery business isn't slowing down.

The company raised another $1 billion in August to boost manufacturing and put more batteries in homes. The round pushed the company's valuation to $13 billion. Base Power has now raised more than $2.5 billion to date.

Battery power has grown increasingly popular across the U.S. as artificial intelligence and data centers stress the grid. Base Power, founded by the son of Dell Technologies Inc. founder Michael Dell, has stuck out as a leading company. The company's home battery storage service was recently made available to Austin Energy customers.