Startups

Scale Your Innovation in Greater Phoenix

Greater Phoenix is home to a vibrant startup community that is agile and determined to build the economy and unify the community. Whether you’re a serial entrepreneur taking on your next challenge or a new disruptor looking to scale, you’ll be at home in Greater Phoenix’s startup community. It’s one of the largest in the nation, and innovating like never before.

Startups Report

Get our 30-page, in-depth report on the startup ecosystem in Greater Phoenix.

Supportive Community

Unified by the grassroots #yesphx movement, Greater Phoenix’s startup community provides entrepreneurs the network and resources needed to thrive, including diverse incubators, accelerators and co-work space options.

Diverse Local Ecosystem

Greater Phoenix has a substantial cluster of homegrown and transplant startups with a strong community that provides mentorship, peer support and access to capital.

Exceptional Talent

Greater Phoenix has a skilled existing workforce and exceptional talent pipeline, ready to help you grow in the next stage of your venture.

Affordable Environment

Greater Phoenix offers startups affordable real estate and employment costs compared to peer markets. The state also offers several quality incentives and programs to further decrease operating costs.

Reliable Infrastructure

Greater Phoenix ranks second in the U.S. for power reliability, plus offers excellent connectivity to keep your business in touch and on time with partners, vendors and customers.

High Quality of Life

Greater Phoenix offers shorter commute times than peer markets, more than 300 days of sunshine annually and a vibrant arts, food and entertainment scene, providing an affordable, high quality of life for the individuals behind your business.

Supportive Community

Greater Phoenix has a wide variety of networks, accelerators, incubators and funding challenges of which startups can take advantage.

Coworking Spaces

Greater Phoenix is home to more than 40 coworking spaces. With access to a wide variety of spaces, incubators and accelerators, leaders are able to expand their network in more ways than ever before. Whether you are an established company or just getting your idea off the ground, these spaces can accommodate any sized business. See the regional map and comprehensive list here.

#1

fastest-growing startup city in the country — Scottsdale, AZ

York IE, 'Fastest-Growing Startup Cities' 2022

$2.5B

invested in AZ companies through VC/Equity financing deals from Oct. '20 - March '22

GPEC Analysis

300%

growth in tech leasing activity across Greater Phoenix, from mid-2020 to mid-2021

CBRE, 2022

#7

best U.S. market for new businesses

Clever Real Estate, 2022

An Innovative Network

Experience a vibrant startup and tech community, supported by local organizations, entrepreneurs and government policies.

#yesPHX

The unifying banner for Arizona’s diverse startup ecosystem.

Arizona Innovation Challenge 

A $3 million annual business plan competition, the largest of its kind in the U.S.

Arizona Technology Council 

The largest AZ tech trade association.

Invest Southwest

Hosts Venture Madness, which has raised over $1B in capital in the last 20 years.

Partnership for Economic Innovation 

A network to connect investment and emerging tech research.

PHX Startup Week 

A five-day event to gather Greater Phoenix’s technology community into one place.

Startup AZ  

A twelve-month commitment from emerging leaders to combine talents and resources to build success together.

Venture Café Phoenix 

A capital conference to connect investors with early-stage and growth companies.

Diverse Local Ecosystem

Homegrown Startups

Greater Phoenix’s business environment makes it the ideal place for businesses to start and grow. The following is just a handful of the companies that have found success since launching the region.

Akos logo with tagline: "remedies in real time"

Carvana Logo

Cyber Dive Logo

Footprint Logo

Offerpad Logo

WebPT logo

Phoenix is a top city for startup operations

Headquartered in Greater Phoenix

In addition to the companies that have launched in the region, dozens of startups have relocated their headquarters to Greater Phoenix. This includes companies such as:

  • Anomalie
  • DoorDash
  • Lucid
  • Moov
  • Nuro
  • Sendoso
  • ThredUp
  • ZorroSign
Recent Funding Deals

Greater Phoenix is achieving all-time VC funding marks. Over $2.5 billion was invested in Arizona companies through non-debt, VC/equity financing deals between October 2020 and March 2022. Below is a sample of recent deals that closed over $100 million.

Moon Valley Nurseries Logo

$775 M, Private Equity,  October 2021

Nextiva Logo

$200M, Private Equity, September 2021

paradox logo

$200 M, Series C, December 2021

Lessen™ logo

$170 M, Series B, November 2021

FlipOS Logo

$136M, Venture – Series Unknown, November 2021

Emerge Logo

$130 M, Series B, September 2021

Persefoni logo

$101 M, Series B, October 2021

Sources: CBInsights; Pitchbook

Exceptional Talent Pool & Pipeline

#1

Maricopa County is No. 1 in talent attraction in the U.S.

Source: Lightcast, 2021

#1

Arizona is No. 1 in workforce confidence

Source: LinkedIn, 2022

#2

Greater Phoenix is No. 2 in small business growth

Source: Paychex | IHS Markit Small Business Employment Watch, Feb 2022

Skilled Existing Workforce

Greater Phoenix has a large talent base built on the back of its education system and migration from major markets such as Los Angeles, the Bay Area and Chicago. Its workforce is larger than most other cities in the southwest, including Austin and Denver. Below is a regional comparison of common occupations in the startup labor force.

Startup-Related Occupations By Metro

Startup-Related Occupations By Metro Graph

University alignment helps support startups jobs in Phoenix, AZ
University Alignment
Arizona State University (ASU)

ASU promotes entrepreneurial development with several programs and partnerships. Its J. Orin Edson Entrepreneurship + Innovation Institute offers degrees, programs, collaborative spaces and funding, while its Innovation Hub is a 15,000-square-foot space with room for reservation, 3D printers and tools for prototyping. ASU and Mayo Clinic partnered to run a MedTech Accelerator for medical device and healthcare IT startups.

74878

ASU students (2019-20)

Source: ASU


#1

ASU has been named the country's No. 1 school in innovation seven years in a row

Source: U.S. News & World Report


#6

ASU ranked No. 6 in online bachelor’s degree programs in the U.S.

Source: U.S. News & World Report


University entrepreneurship programs help support the startup ecosystem in Phoenix
University of Arizona (UArizona)

UArizona, which operates in Tucson and has a campus in Greater Phoenix, is one of the few research universities in the country to offer an undergraduate degree in entrepreneurship. Its New Venture Development Program matches students with experienced entrepreneurs and mentors to build a new venture, while the McGuire Entrepreneurship Program at the university is ranked in the top-10 nationally.

36503

UArizona students (2019-20)

Source: UArizona


#1

UArizona's management information systems program is ranked No. 1 among public universities

Source: U.S. News & World Report


#7

UArizona's entrepreneurship program is ranked No. 7 among public universities

Source: U.S. News & World Report


University alignment helps support the Arizona entrepreneurial ecosystem
Other Higher Education Programs

Greater Phoenix features a large group of other universities, community colleges and vocational programs that make up the immense talent pool. Grand Canyon University, located in Phoenix, also operates a business accelerator with over 30 startups working out of the space. Maricopa County Community College District has more than 200,000 students across its 10 campuses and online, and the University of Phoenix headquartered in the region. Greater Phoenix is also home to coding schools and programs such as General Assembly, Galvanize and Dev Mountain.

Download the industry analysis for more on the Greater Phoenix workforce.

Download Startups Industry Analysis

Affordable Environment

Tax incentives and low operating costs make Phoenix the perfect environment for startups
Tax Rates

Greater Phoenix has one of the business-friendliest tax climates in the region. Its average sales tax rate of 8.6% and corporate income tax rate of 4.9% are comparatively low, while its $320 max payment for unemployment insurance is the lowest of any major city in the southwest, about $200 less expensive than Austin and less than half the cost of that of Denver.

Arizona incentive programs support the startup ecosystem in Phoenix
Arizona Incentive Programs

The state offers several quality incentives and programs to further decrease operating costs. The quality Jobs Tax Credit awards $9,000 of tax credits over three years to qualifying companies, while the R&D tax credit offers refundable and nonrefundable corporate income tax credits for qualified research and development done in Arizona, including company funded research at a state university.

Phoenix's Regulatory Sandbox Program (RSP) helps support innovative startup operations
Fintech

In March 2018, Arizona became the first state in the U.S. to create a Regulatory Sandbox Program (RSP) where financial services companies can test innovative products and technology in market for up to 24 months without obtaining a license or other authorizations that might otherwise be required. The sandbox encourages the development of emerging industries like fintech, blockchain and cryptocurrencies throughout the state.

More information can be found here.

Competitive Real Estate

Greater Phoenix’s office and industrial lease rates remain highly competitive compared to competitor markets. Compared to Austin, Greater Phoenix’s office space is about 59% less expensive and industrial is about 23% less expensive. Both office and industrial are about 6% less expensive than Denver, and more than 50% less expensive than in Los Angeles.

Metro Lease Rate Comparison (Average)
Region

Office Lease Rate (annual, per sq. ft.)

Industrial Lease Rate (annual, per sq. ft.)

Phoenix

$27.36

$10.68

Atlanta

$26.88

$7.80

Austin

$43.44

$13.20

Denver

$29.04

$11.40

Los Angeles

$41.76

$17.04

Salt Lake City

$24.48

$9.60

Source: Costar 2022 Q2 Market Reports

Reliable Infrastructure

Phoenix's reliable power grid supports the startup ecosystem
Reliable Power

Arizona has the second-most reliable power grid in the nation and 73% fewer natural disasters than the adjacent state of California. Over the last 10-year period, Arizona recorded only 33 total hours of disturbances. Reduce risk and increase operating efficiency moving to Greater Phoenix.

Phoenix's electric grid system provides continued, uninterrupted support to new to market companies
Electric Grid System

Greater Phoenix has more than 300 megawatts of existing inventory and an additional 250 megawatts of inventory planned for the near future, a proactive approach to support continued growth in the market.

Startup operations in Phoenix can take advantage of quick travel options with reliable airline connectivity
Airline Connectivity & Access

Enjoy prime connectivity in Greater Phoenix with close proximity to southwest markets, the cross-border supply chain in Mexico, and air travel and commerce efficiency through multiple airports. Phoenix Sky Harbor International Airport alone offers over 1,200 daily domestic and international flights.

Download the industry analysis for more information on startups in Greater Phoenix.

Download Startups Industry Analysis

High Quality of Life

Experience a vibrant lifestyle and diverse culture at an affordable cost of living in Greater Phoenix
Greater Phoenix Living

Experience a vibrant lifestyle and diverse culture at an affordable cost of living.

Enjoy the outdoors with more than 300 days of sunshine, average temperatures of 75 degrees, convenient access to over 400 hiking trails and globally recognized sporting events. Take part in a vibrant arts and culture scene that includes prominent classical arts to public art to craft markets and a diverse range of music and cultural events. And, eat well with fresh farmers markets in every city, and globally recognized chefs and culinary experiences at your doorstep.

Calculate your savings

Select your annual income, monthly mortgage, healthcare and grocery costs to find how much you would save with a move to Greater Phoenix.

Austin
Dallas
Denver
Los Angeles
Portland
San Francisco
Seattle
Annual Income
Monthly Mortgage
5,000
Monthly Healthcare
Monthly Groceries
Total Annual Savings
$

Source: ACCRA, Cost of Living Index 2022 Q1

#1

Phoenix was ranked the most relaxed U.S. city

StorageCafe, 2022

#1

on Yelp's 'Top 100 Restaurants in the U.S.' is Cocina Madrigal in Phoenix

Yelp, 2022

#1

least annoying neighborhoods in America

HomeAdvisor, 2022

#1

Scottsdale is the best work-from-home city in the U.S.

SmartAsset, 2021