Ambassador Event: The Future of Startups & Entrepreneurship

How local founders and leaders are shaping a stronger, more connected startup ecosystem

As Greater Phoenix continues to evolve into a leading market for innovation and entrepreneurship, the region’s startup activity has drawn national attention. With the seventh-most startups among all metros in the U.S., Greater Phoenix is home to a fast-growing community of founders, investors and ecosystem builders working to ensure the next generation of companies can scale locally.

Leaders joined a recent Greater Phoenix Economic Council (GPEC) Ambassador Event to discuss strengths, challenges and opportunities across the startup landscape. The event took place alongside the release of GPEC’s Future of Startups and Entrepreneurship report, which highlights the region’s momentum and outlines key areas of opportunity for ecosystem growth. Panelists for this event included:

• Jamie Baxter, Co-Founder & CEO, Shopd
• Jasmine Bhatti, Founder & CEO, Navi Nurses
• Clate Mask, CEO, PHX FWD
• Hamed Rabah, Head of Growth, Abel Police
• Moderator: Mark Paratore, Vice President of Business Development, GPEC

The panelists offered insight on capital access, founder mindset, community resources and how to build the kind of ecosystem that attracts and retains talent.

“We have the people,” Bhatti said. “Now it’s about making sure those people can stay, grow and build right here.”

Learning from other ecosystems

Rabah described how some of the strongest startup ecosystems, like San Francisco and Austin, have a network of repeat founders who help new entrepreneurs get started. The proximity to people who have built companies before creates a culture of learning, reinvestment and community.

“You walk into a coffee shop in SF or Austin, and you see people hacking together, building something," Rabah said. "We have the talent here. We just need more centralized places where it comes together."

While Greater Phoenix is still building that density, early momentum is visible. Regional efforts like PHX FWD and the Southwest Mission Acceleration Center are providing the kind of mentorship, infrastructure and community that help early-stage founders grow. Signature events such as Venture Madness and PHX Startup Week also serve as gathering points where founders, funders and supporters can connect and collaborate.

That sense of place, what the panelists called a “third space,” was a recurring theme of the discussion. From co-working hubs like Galvanize to new accelerator models, the group emphasized the need for intentional gathering spots where mentorship, creativity and capital can intersect.

Read the report here.

Founders who think big

Baxter spoke about the need for entrepreneurs to game plan beyond early traction or short-term exits and to instead focus on building transformative companies.

“We need more founders thinking about billion-dollar companies,” he said. “Not just quick exits. Not just lifestyle businesses.”

Many early-stage startups in Arizona start with limited funding and a practical approach to growth, which can lead to a focus on quick traction or modest exits. Baxter and others challenged this norm, advocating for a mindset shift toward building companies with national or global scale, like homegrown startups Keap and WebPT.

Mask added that one of the best things experienced founders can do is help others believe it’s possible to build something big and meaningful.

“We’ve got to help people think differently,” he said. “When people do something amazing, it gives the next group permission to think they can do it too.”

Capital with a plan

One of the key discussions was around the access to early-stage capital. Arizona has crossed the $1 billion mark in venture capital investment for seven consecutive years, but panelists said there’s a disconnect between startups and investors funding opportunities. Too often, founders seek capital before demonstrating traction or a revenue model, which makes it difficult for investors to justify the risk.

“It’s not the investor’s job to validate your idea,” Mask said. “You need revenue first. You need a plan. Then the capital will follow.”

Entrepreneurs who have not yet created revenue can find alternative paths for funding. Before Navi Nurses sought traditional investment, Bhatti funded her company through startup competitions and the Arizona State University (ASU) Venture Devils program, which offers mentorship, training and venture development space, as well as funding opportunities.

“I started with ASU Venture Devils, won a few competitions and kept building,” Bhatti said. There are resources here. You just have to know where to look.”

While capital access remains a challenge for early-stage startups, the broader investment landscape has shown steady growth over the last decade. Recent data from Pitchbook shows that total investments in Arizona grew by approximately 143% from 2014 to 2024, underscoring long-term confidence in the region’s startup potential. Between 2020 and 2024, Greater Phoenix startups secured $7.6 billion in venture capital funding, including $1.2 billion in 2024 alone across more than 140 deals.

Talent is here. Vision keeps it here.

When discussing talent, the panelists made it clear that Greater Phoenix is producing strong graduates and skilled professionals. Where the ecosystem needs to improve is in showcasing its assets and opportunities to retain the talent.

“It’s a leaky bucket,” Baxter said. “We have great talent here. They just don’t always know what’s available, or they think they have to leave to find it.”

A steady stream of STEM graduates, more than 36,000 annually from Arizona’s public universities, demonstrates the region’s potential to power long-term innovation. Colleges and universities across the state, including ASU, Grand Canyon University, University of Arizona (U of A), University of Phoenix and MCCCD, are deeply involved in advancing entrepreneurship through accelerators, startup support programs and industry partnerships.

This includes real-world opportunities for collaboration and contributions to new ventures. ASU partnered with Mayo Clinic for the MedTech Accelerator and with Idealab Arizona to support a direct air capture (DAC) hub. At U of A, the McGuire Center for Entrepreneurship cultivates education through programs, courses and startup resources.

This educational foundation is strengthened by a growing network of accelerators, incubators and venture organizations like StartupAZ, Freeway, PHX FWD, Plug and Play, Tesoro.vc and XLR8 Health Tech, which provide critical resources and mentorship to early-stage companies.

To fully retain this talent, founders must offer more than just opportunity — they must offer vision. Mask emphasized that founders play a key role in keeping talent local by offering a compelling mission that people want to be part of.

“Talent follows vision,” he said. “People want to build something that matters. Founders have to create cultures where people want to stay.”

Looking ahead: Greater Phoenix startup ecosystem

In the closing moments of the discussion, panelists were asked what they want Greater Phoenix to be known for by 2035. Ideas ranged from health innovation and femtech to becoming a top software and GovTech hub.

Panelists emphasized that ecosystem growth won't happen by accident. It will require deliberate alignment between founders, investors, universities and public partners. From creating new third spaces to developing a stronger founder support network, they called for a more unified approach to building what's next.

But their strongest message was one of ownership.

“Don’t wait for someone to build the thing you need,” Baxter said. “If there’s no accelerator for your industry, build your own path. Raise capital differently. Start with customers.”

“Give people a map,” Bhatti added. “Let them see what’s available, where to go, who to talk to. It’ll save them time and help them dream bigger.”

With efforts like PHX FWD and StartupAZ gaining traction, panelists expressed optimism that the region is heading in the right direction.

“We’ve got momentum. Now we just need to organize it,” Mask said.