The Texas Entrepreneur Network Startup Index calculates the state of the early stage business environment by measuring the number of new business filings, the number of funded companies, and the average funding per company during the time period. The TEN Startup Index is calculated as follows:
TEN Startup Index = Business Filings/1000 + Funded Companies/10 + Average Raise/1000000
Business Filings account for 60% of the score, while the number of funded companies account for 25%, and funding accounts for 15%. Business filings represent new entities that have been created and comprises the majority of the index. The number of funded companies and their average comprise the rest.
For Q3, 2012, the TEN Startup Index rose to 43 over the previous quarter of 40 and over the year ago quarter of 42. The third quarter is typically the highest quarter of the year for the index.