The harrowing incident happened on Loop 20 in the city after the aircraft reported mechanical problems while attempting to reach Laredo International Airport, authorities said. The plane, carrying a total of six people, had departed San José del Cabo, Mexico, and was originally meant to land in Austin before diverting to Laredo.

Mr Baer's death was confirmed a few hours after the crash by the company he co-founded, Capital Factory.

A statement issued on Wednesday read: "It is with profound sadness that Capital Factory announces the tragic passing of our Co-Founder and CEO, Joshua Baer."

Capital Factory President Bryan Chambers described the CEO as a "fearless leader, brilliant partner and a dear friend to so many of us".

He also said: "While we are devastated by this unimaginable loss, Josh built an incredibly resilient organization and a deeply capable team. Capital Factory remains fully operational, and we are completely committed to continuing his mission of backing unstoppable founders."

Among the many paying tribute to the influential figure in the Texan tech startup landscape was state Senator Ted Cruz.

The politician described the tech founder as "one of the most significant figures driving innovation and entrepreneurship across America... In Texas, he made our state a global leader. His impact was incalculable."

The National Transportation Safety Board (NTSB) said it has launched an investigation into the crash, the cause of which is currently unclear.