Four Ways Greater Phoenix is shaping the Future of Startups
Published: 10/20/2025
1. Venture Capital Investment
Greater Phoenix has experienced a surge in venture capital funding in recent years. According to PitchBook, investments grew 146% from 2014 to 2024, outpacing peer markets such as Austin (86%), Atlanta (58%) and Miami (55%) — a standout performance amid a broader national decline in the 2020s.
So far in 2025, the region has recorded 98 deals totaling $659 million, concentrated in software (27), healthcare technology systems (16) and commercial services (11).
Big picture: Greater Phoenix is rapidly gaining momentum in venture funding, narrowing the gap with top innovation markets.
2. A Healthy Startup Ecosystem
Greater Phoenix’s startup ecosystem is entering a new era of growth, fueled by expanding infrastructure and supportive programs. Tesoro VC recently announced two cornerstone initiatives: the Global AI + Semiconductor Startup Hub, which will launch and scale 40–60 deep-tech startups annually, and the Global Semiconductor Design Center, an advanced chip design and prototyping facility co-developed with Cadence.
At the same time, AZ-VC has created the largest venture capital fund in Arizona’s history to help homegrown companies grow and thrive, launching its second fund this month to sustain that momentum.
This surge in capital is reinforced by a robust network of incubators, accelerators, venture studios and coworking spaces. Programs like PHX FWD, Freeway, Plug and Play, and XLR8 PBC are expanding access to mentorship, funding and collaboration, strengthening the foundation for early-stage growth.
The ecosystem’s connectivity is further amplified through upcoming events. Freeway’s Tech Talent Summit in November will bring together talent, capital and community through a pitch competition, career fair and industry tracks. In April 2026, Arizona Tech Week will spotlight the state’s innovation ecosystem through a decentralized series of events expected to draw thousands of investors, startups, and industry leaders.
In other words: The list of resources for startups in Greater Phoenix keeps growing and so does the opportunity to scale.
3. Streamlined Regulatory Framework
Arizona has a long history of supporting a regulatory framework that allows companies to innovate and test their products in market.
In 2015, then-Gov. Doug Ducey issued an executive order allowing companies like Waymo to test autonomous vehicles in Arizona, which was later codified into state law to permit fully driverless testing. The framework established clear protocols for companies to begin operations, and included a law enforcement guide developed in partnership with the Department of Public Safety and industry stakeholders.
Continuing this momentum, in 2018, Arizona became the first state in the nation to launch a Regulatory Sandbox Program, enabling companies to test innovative financial products and technologies without obtaining full licenses or authorizations. This forward-thinking approach has spurred growth in sectors such as FinTech, blockchain and cryptocurrency.
Bottom line: Arizona’s regulatory environment continues to evolve with the market, ensuring innovation can thrive alongside responsible oversight.
4. University Collaboration
Universities across Arizona are playing a pivotal role in advancing regional innovation.
Arizona State University has partnered with Mayo Clinic on a MedTech Accelerator and is home to the J. Orin Edson Entrepreneurship + Innovation Institute, a hub for startup development and applied innovation.
Grand Canyon University, University of Phoenix, Maricopa County Community Colleges and Central Arizona College also provide hands-on opportunities for students to launch ventures or support growing businesses through degree-aligned programs, tech transfers, angel initiatives and small business development centers.
Meanwhile, the University of Arizona continues to lead in entrepreneurship education and commercialization through its McGuire Center for Entrepreneurship, helping students turn ideas into viable enterprises.
Together, these institutions are cultivating the next generation of founders and embedding innovation into the fabric of the region. With more than 30,000 students currently enrolled in engineering programs, Greater Phoenix is well positioned to sustain its momentum as a hub for innovation.
The takeaway: Arizona’s educational institutions are fueling the talent and ideas that power Greater Phoenix’s startup ecosystem.