Why startups and VCs should bet on Greater Phoenix
Greater Phoenix is no longer just a low-cost retirement destination — it’s now home to one of the largest and most vibrant startup communities in the U.S.
Why it’s important: The region’s commitment to a diverse economy, advanced tech policies and entrepreneurial support has positioned it as a major player in next-generation industries.
Key numbers:
- Greater Phoenix currently ranks 7th among U.S. cities with the most startups, according to the Arizona Technology Council.
- The region’s startups range from early- to later-stage companies like WebPT, Trainual, Paradox, Carvana, Emerge, Offerpad, Persefoni, Lessen and Virtuous.
- The region is now home to more than 100,000 tech employees.
- Maricopa County leads the U.S. in talent attraction, ranking 7th in 2023 on Lightcast’s annual Talent Attraction Scorecard.
- Idealab Arizona, in partnership with Arizona State University, launched a startup studio to drive innovation in climate, medical, AI and advanced manufacturing.
- Phoenix ranks as a Top 50 Global Startup City based on its size and maturity.
Greater Phoenix is also defying the odds in a challenging venture capital landscape.
- In 2023, non-debt VC and equity financing deals surged by 58%, reaching $1.7 billion.
- Since 2018, the region has generated $7.7 billion across the software, health care, internet services and sustainability industries.
- The state’s Angel Tax Credit program aims to boost early-stage investments in small businesses by offering tax credits to investors.
- With the creation and growth of venture funds over the past several years, the region is now home to key VC firms like AZ-VC and PHX Ventures, accelerating the region’s competitiveness for investment and innovation.
Looking ahead: The Greater Phoenix Economic Council (GPEC), a leading economic development organization, continues to boost the region’s momentum.
💸 GPEC provides essential support and resources for startups, established businesses and investors.
- Over the past 35 years, the organization has assisted more than 1,000 local companies.
- Its support has created more than 190,000 jobs and generated over $69 billion in capital investment.
- GPEC offers a treasure trove of resources for business owners and investors, including a breakdown of economic conditions, operating costs and incentives, opportunities by industry, and more.
Worth a mention: The organization invites entrepreneurs and investors to utilize the Startup Ecosystem Dashboard to learn more about the region’s landscape, funding milestones, job opportunities and startup success stories.
The takeaway: Greater Phoenix represents an ideal opportunity for startups and investors alike — one built on talent, community and a thriving ecosystem ready for even more growth.
Learn how to grow in Greater Phoenix with GPEC.