Phoenix has rapidly emerged as one of the most dynamic and resilient startup hubs in the United States, attracting founders and investors with its unique blend of opportunity, affordability, and community. The city has seen a remarkable surge in venture capital activity in recent years, even as national funding trends have cooled. In 2023, startups in the Greater Phoenix region raised an impressive $1.9 billion in venture capital and equity financing—a six percent increase over the previous year, making Phoenix one of the few major markets in the country to experience year-over-year growth in VC funding. While 2024 saw a slight dip, with Arizona-based startups raising $1.2 billion across 129 deals, the region’s ability to maintain billion-dollar-plus annual funding through a national slowdown underscores the strength and resilience of its ecosystem.
In this guide, we highlight the top VC firms in Phoenix, fueling the Valley’s momentum, and provide a detailed look at why Phoenix is becoming one of the most founder-friendly ecosystems in the country. From active investors to local resources and networking events, this article is your roadmap to raising capital and building a thriving startup in Arizona’s capital city.
Top VCs in Phoenix
SEED SPOT
About: SEED SPOT is an accelerator focused on supporting impact-driven entrepreneurs across the USA.
Traction metrics requirements: Social Impact-related or within one of the UN Sustainable Development Goals (SDGs).
Social Leverage
About: Social Leverage is a Venture Capital firm which specializes in early-stage investments in the Software, Consumer, and Fintech industries.
Thesis: Social Leverage is a partnership that invests in exceptional entrepreneurs.
PHX Ventures
About: Arizona's most active software investor focused exclusively on B2B SaaS.
Arizona Tech Investors
About: Arizona Tech Investors (ATI) was founded in 2007 by Arizona-based investors committed to supporting the capital needs of early stage, high growth technology driven companies within Arizona and neighboring states.
Bay Wharf Capital
About: Bay Wharf Capital is an early-stage generalist firm with an objective of backing and helping early stage startups. Our goal is to help founders make great products and companies.
True North Venture Partners
About: We invest in and build businesses that help the world transition to a clean and sustainable future.
Arizona Founders Fund
About: Delivering seed capital to Arizona. Established in 2016, Arizona's first-ever dedicated seed fund.
Why Phoenix Is a Hotspot for Startup Fundraising
A Thriving Venture Capital Scene
Phoenix's venture capital scene is not just surviving- it's thriving. The consistent billion-dollar-plus funding rounds, even during economic downturns, highlight the confidence investors have in the region's startups. This robust investment activity is a clear indicator of Phoenix's growing importance as a startup hub.
Sector Diversity and Investment Focus
A key driver of Phoenix’s fundraising momentum is its sector diversity and alignment with high-growth industries. Local investors are particularly active in B2B SaaS, cloud technology, fintech, and digital health—sectors that reflect the city’s established corporate base and its growing reputation as a center for innovation. Venture capital firms such as PHX Ventures, Social Leverage, and Arizona Tech Investors have played a pivotal role in fueling this growth, supporting startups that are building the next generation of software, healthcare, and financial technology solutions.
Cost Advantages and Quality of Life
Phoenix offers founders a significant cost advantage compared to other major tech hubs. Office rents in Phoenix are more than 30 percent lower than in cities like Austin and Los Angeles, allowing startups to extend their runway and invest more in growth. The region’s affordability extends beyond real estate, with Arizona ranking as one of the least expensive states to start a business. This cost efficiency, combined with a high quality of life and more than 300 days of sunshine each year, makes Phoenix an attractive destination for both local and relocating entrepreneurs.
A Magnet for Talent
Talent is another cornerstone of Phoenix’s rise. Maricopa County was ranked number one in the nation for talent attraction in 2023, and the region now boasts over 100,000 tech jobs. The city’s universities, including Arizona State University and the University of Arizona, provide a steady pipeline of skilled graduates, while the influx of professionals from markets like Los Angeles, the Bay Area, and Chicago continues to strengthen the local workforce.
Founder-Friendly Regulatory Environment
Phoenix’s regulatory environment is also founder-friendly. Arizona was the first state in the U.S. to launch a fintech regulatory sandbox, allowing startups to test innovative financial products for up to 24 months without the need for full licensing. This progressive approach has made the region especially attractive to fintech, blockchain, and insurtech startups seeking to innovate without unnecessary barriers.
A Collaborative Startup Community
Perhaps most importantly, Phoenix’s startup community is unified by a collaborative, grassroots spirit. The #yesphx movement, along with regular events like PHX Startup Week and Venture Café, ensures that founders have access to a supportive network of peers, mentors, and investors. Recent successful exits have further energized the ecosystem, with founder capital being recycled into new funds and ventures, creating a virtuous cycle of innovation and investment.
Key Events and Resources for Phoenix Founders
Building a successful startup in Phoenix means tapping into a vibrant, supportive community. Founders here benefit from a robust calendar of networking events, pitch competitions, and meetups, as well as a growing ecosystem of accelerators, incubators, co-working spaces, and online communities.
Top Networking Events, Pitch Competitions, and Meetups
Phoenix’s startup scene is anchored by several high-profile events that bring together founders, investors, and mentors:
- Venture Madness: A premier pitch competition where startups compete for funding and exposure in front of top venture capitalists and business leaders.
- PHX Startup Week: A flagship event featuring a week of panels, workshops, and networking opportunities for hundreds of entrepreneurs.
- Startup Grind Phoenix: Regular fireside chats and mixers that connect local founders with global thought leaders and investors.
- Arizona Innovation Challenge: One of the largest business plan competitions in the country, offering significant funding and support.
- Seed Spot Demo Day: Showcases impact-driven startups to the community and potential investors.
- 1 Million Cups Phoenix: Weekly gatherings where founders present their startups and receive feedback from the community.
- Venture Café Phoenix: Weekly innovation gatherings that foster connections among entrepreneurs, investors, and mentors.
Local Accelerators, Incubators, and Co-Working Spaces
Phoenix founders have access to a growing number of accelerators and incubators designed to help startups scale:
- CEI (Center for Entrepreneurial Innovation): Offers mentorship, funding connections, and lab space for bioscience and tech startups.
- Seed Spot: Nationally recognized for supporting impact-driven ventures with both in-person and virtual programs.
- Arizona State University’s Venture Devils: Supports student, faculty, and community entrepreneurs with mentorship and funding.
- Galvanize Phoenix: A popular co-working space with programming, workshops, and a built-in network of fellow founders.
- CO+HOOTS: A collaborative workspace offering events, resources, and a strong entrepreneurial community.
Online Communities and Support Networks
Phoenix founders can also tap into a range of online communities and support networks:
- #yesphx: A grassroots movement and hashtag that has grown into a citywide initiative to connect and support local entrepreneurs.
- StartupAZ Foundation: Offers resources, peer groups, and leadership development for high-growth founders.
- Meetup: Features dozens of Phoenix-based groups for tech, SaaS, and early-stage founders.
Additional Resources and Opportunities
Phoenix’s entrepreneurial ecosystem is further supported by organizations and programs such as:
- Arizona Commerce Authority: Runs the Arizona Innovation Challenge and provides grants and business development resources.
- Changemaker Central at ASU: Offers programming and support for social impact founders.
- Local First Arizona: Provides additional resources for entrepreneurs focused on local impact.
Connect With Investors in Phoenix Using Visible
At Visible, we often times compare a fundraise to a B2B sales and marketing funnel. At the top of your funnel, you are finding new investors. In the middle, you are nurturing and pitching potential investors. At the bottom of the funnel, you are working through diligence and ideally closing new investors.
With the introduction of data rooms, you can now manage every aspect of your fundraising funnel with Visible.
- Find investors at the top of your funnel with our free investor database, Visible Connect and find a filtered list of Phoenix's investors here.
- Track your conversations and move them through your funnel with our Fundraising CRM
- Share your pitch deck and monthly updates with potential investors
- Organize and share your most vital fundraising documents with data rooms
