How the Arizona Venture Alliance will grow connections and opportunities for Arizona startups

In December, roughly two dozen startup leaders convened at the Arizona Commerce Authority for a watershed moment.

Following years of measurable growth in Arizona’s startup community, investors, founders, mentors and leaders from business and economic development launched a bold new initiative to supercharge Arizona’s startup ecosystem known as the Arizona Venture Alliance (AVA). The AVA works to promote Arizona’s startup and investor ecosystem, exponentially increase funding for Arizona startups and grow deal flow for investors both inside and outside Arizona.

At the charter signing event for the new coalition, the startup leaders expressed their commitment to making Arizona the No. 1 state in the nation for startups and investors.

“Over many years and with the support of countless individuals, Arizona’s startup ecosystem has grown exponentially,” said Sandra Watson, ACA president and CEO, said at the AVA launch on Dec. 16. “This represents the critical next step in our work to support startups and small business owners.”

The AVA launch represented the culmination of more than 18 months of focused efforts to convene partners at the ACA, scale strategic efforts and develop overarching goals to measure the state’s startup advancement.

Over the next three years, the AVA’s strategic goals include:

“As someone who was born and raised in Arizona, I am deeply honored to join the AVA and contribute to the continued growth of the state’s thriving venture ecosystem,” said Allen Smith, managing partner, Musa Capital and AVA founding member. “Together, we will drive impactful investments, champion our innovative entrepreneurs, and propel Arizona’s startup community to a future brimming with opportunity and success.”

Arizona is one of the fastest-growing, talent-rich tech innovation ecosystems in the country. From industry leaders to cutting-edge startups, Arizona has become a go-to destination for companies and entrepreneurs to test, launch and scale.

This growth is fueled by Arizona’s skilled talent, leading industry anchors, forward-thinking startups, a growing list of venture capital firms and investors and world-class research institutions.

But the AVA seeks to take Arizona to new heights, serving as the premier statewide coalition working to promote Arizona’s startup and investor ecosystem.

“AVA plays a critical role in uniting all the amazing groups within the Arizona tech ecosystem, and helps us punch above our collective weight,” said Jack Selby, managing partner, AZ-VC and AVA founding member.

The AVA will focus its effort statewide to benefit all startups and entrepreneurs wherever they choose to start and scale a business.

“Arizona’s venture ecosystem has grown exponentially, fueled by the ingenuity of entrepreneurs from every corner of the state, including its vibrant rural communities,” said Scott Hathcock, president and CEO, Moonshot and AVA founding member. “At Moonshot, we’re proud to partner with the Arizona Venture Alliance (AVA) to ensure that rural innovators have a seat at the table, unlocking new opportunities for funding, mentorship and collaboration. Together, we are building a more inclusive and impactful startup landscape that represents the full potential of Arizona.”

The Arizona Venture Alliance will work to expand access to investor networks for Arizona startups and amplify and promote individual and partner events.

For example, in 2011, the ACA launched the Arizona Innovation Challenge, one of the largest startup competitions in the country designed to advance technology commercialization for the most promising early-stage companies.

Since the launch, 140 startups have been selected as AIC awardees from over 2,800 applicants, representing a combined portfolio value of more than $5.86 billion. View the 2024 Arizona Innovation Challenge Awardees.

In August, the ACA launched three new venture programs designed to scale the highly successful AIC: Venture Scale, Venture Raise, and Venture Start will help more Arizona entrepreneurs access the support, one-on-one mentorship, expert resource and investment connections that are crucial to their success.

“The AVA is really the next evolution,” said Melissa Lamson, ACA’s executive vice president for venture development and innovation strategy. “Now we have an opportunity to work closely together to achieve these meaty goals and objectives.”

The AVA’s goals aim to leverage Arizona’s historic economic momentum over the past decade.

The state’s record-breaking growth in recent years has been fueled, in part, by historic investments from global tech and semiconductor companies, positioning Arizona as the No. 1 state for advanced chip manufacturing, suppliers, packaging and R&D.*

Bolstered by the state’s three public universities and innovative community colleges, business expansions are taking place across the state.

“The Arizona Venture Alliance builds on years of collaborative, strategic efforts to integrate and scale the incredible work taking place in our ecosystem statewide,” said Liz Pocock, CEO, Startup Tucson and AVA founding member. “Startup Tucson is honored to be a part of such a dynamic group of partners, working to take Arizona’s ecosystem to the next level for all types of entrepreneurs.”

To learn more about Arizona’s startup and innovation programs, please visit azcommerce.com/start-up.

* According to Arizona Commerce Authority.