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

Incubators, Accelerators and Coworking Spaces

Greater Phoenix has a wide variety of networks, accelerators, incubators and funding challenges of which startups can take advantage. Whether you are an established company or just getting your idea off the ground, the 40+ spaces housed in the region can accommodate any sized business. Explore an interactive map of coworking spaces and incubators below or find a pdf version here.

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Primary Accelerators

Fennemore Craig Venture Accelerator	Center for Entrepreneurial Innovation	Coplex
Moonshot	MedTech Accelerator	AZ Disruptors
CoFoundersLab	EO Accelerator	WearTech Applied Research Center

#9

Arizona ranked as the ninth-least expensive state to start a business

Source: SimplifyLLC, 2023

$5.1B

invested in AZ companies through VC/Equity financing deals from Oct. '20 - Nov. '23

Source: CBInsights; Pitchbook

#5

Scottsdale has the fifth-most coworking spaces among all US cities; Mesa also ranked in the top-25

Source: Coworking Cafe, 2023

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 annual 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

Connects innovators and entrepreneurs with accessible, high-impact weekly programming and events.

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.

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:

Botco.ai
Campus Logic
Equipifi
eVisit
Prenda
Rivia Health
Trainual
Virtuous

Recent Funding Deals

Greater Phoenix has been achieving all-time VC funding marks in the last few years. Over $5.1 billion was invested in Arizona companies through non-debt, VC/equity financing deals between October 2020 and November 2023. Below is a sample of 2023 deals.

$800M, Venture – Series Unknown

$500M, Venture – Series Unknown

$50M, Series C

$45M, Series C

$28M, Series B

$24M, Series C

$20M, Seed

$19.7M, Series A

Sources: CBInsights; Pitchbook

Exceptional Talent Pool & Pipeline

#1

Maricopa County ranked No. 1 in talent attraction in the U.S. in 2023, the sixth time in seven years

Source: Lightcast

#4

Scottsdale ranked No. 4 in the nation for most business founders per 10k people

Source: OnDeck, 2023

107000+

There were more than 100,000 tech jobs in Greater Phoenix in Q1 2024

Source: Lightcast

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. Get more info in the downloadable document.

Occupation	Phoeix	Atlanta	Austin	Denver	Miami	Nashville	Salt Lake City
Business Operations Specialists	110,266	173,607	61,320	113,098	127,238	44,159	41,398
Healthcare Diagnosing or Treating Practitioners	86,640	97,470	31,996	58,939	110,277	45,033	25,756
Computer Occupations	84,678	116,268	76,108	78,897	61,810	32,248	35,324
Customer Service Representatives	83,651	69,766	32,395	29,302	69,747	24,077	30,036
General and Operations Managers	67,067	66,848	41,756	27,349	55,984	22,346	30,453
Financial Specialists	53,366	69,660	28,880	48,188	62,004	21,455	19,857
Health Technologists and Technicians	46,610	49,880	19,336	22,051	58,061	23,750	14,204
Sales Representatives, Services	38,153	50,321	22,236	42,175	59,175	16,554	14,041
Software Developers	29,306	41,759	24,237	25,265	17,478	7,800	12,796
Engineers	24,945	25,703	16,538	28,922	14,834	6,927	9,625
Sales Representatives, Wholesale and Manufacturing	23,153	37,704	13,388	22,139	36,543	10,459	10,406
Advertising, Marketing, Promotions, Public Relations, and Sales Managers	14,316	19,904	14,500	11,995	15,114	7,121	6,377
Computer Systems Analysts	11,703	11,500	9,461	6,901	6,460	3,596	2,153

Source: Lightcast 2023 Q3

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.

79593

ASU in-state, on-campus students (Fall 2023)

Source: ASU

#1

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

Source: U.S. News & World Report

#1

ASU ranked No. 1 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 among the best in the world.

43465

UArizona in-state, on-campus students (Fall 2023)

Source: UArizona

#5

UArizona's management information systems program is ranked No. 5 among public universities

Source: U.S. News & World Report

#30

UArizona's entrepreneurship program is ranked No. 30 in the world

Source: Poets & Quants

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 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 $240 less expensive than Austin and less than half the cost of that of Denver.

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 33% less expensive and industrial is about 8% less expensive. Both office and industrial is more than 30% 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	$29.28	$12.96
Atlanta	$28.08	$8.52
Austin	$43.68	$14.04
Denver	$29.28	$12.12
Los Angeles	$41.88	$19.08
Salt Lake City	$25.56	$11.16

Source: Costar 2023 Q2 Market Reports

Reliable Infrastructure

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.

Electric Grid System

Greater Phoenix has more than 500 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

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.