Phoenix Startup Ecosystem
Growing tech scene with lower costs, remote work friendly, and strong enterprise software focus. Attractive for startups seeking affordability.
Ecosystem Overview
💰 Funding
$1.5B+ in total funding, with growing access to VCs and angel investors.
👥 Talent
70K+ tech workers and access to Arizona State University talent.
🏢 Infrastructure
8 accelerators, 15 co-working spaces, and growing support networks.
Key Strengths
Key Industries
Cost of Living
Top Accelerators
Top Funding Sources
Frequently Asked Questions
Why is Phoenix a good city for startups?
Phoenix offers a growing startup ecosystem with lower costs than major tech hubs, remote work friendly environment, strong enterprise software focus, and attractive lifestyle. The city has a growing tech scene with strong presence in enterprise software and attracts startups seeking affordability.
What are the top accelerators in Phoenix?
Top accelerators include Seed Spot, ASU Venture Devils, and RevHub. The ecosystem also benefits from Arizona State University connections and growing startup community. Many accelerators focus on social impact and enterprise software.
How much does it cost to start a startup in Phoenix?
Phoenix has a cost of living index of 110 (10% above national average), making it significantly more affordable than major tech hubs. Average rent for a 1-bedroom is around $1,200/month, allowing startups to extend their runway while accessing growing tech talent.
What industries are strongest in Phoenix?
Phoenix is particularly strong in enterprise software, aerospace, fintech, and health tech. The city's position as a major metropolitan area with lower costs makes it attractive for startups across various industries.
Is Phoenix good for finding tech talent?
Yes, Phoenix has a growing tech talent pool with access to Arizona State University graduates, tech workers relocating from other cities, and competitive salaries. The remote work friendly environment and lower costs attract talent seeking better work-life balance.
What VCs are active in Phoenix?
Active VCs include AZ-VC, Desert Angels, and Grayhawk Capital. Many national VCs also invest in Phoenix startups, recognizing the value proposition of lower costs, growing talent, and attractive lifestyle.
Compare with Other Ecosystems
🤠 Austin
Similar size and costs. Strong B2B SaaS and rapidly growing.
Compare →🤠 Dallas
Similar Southwest location. More established ecosystem with similar costs.
Compare →🏔️ Denver
Similar quality of life focus. Similar costs and growing tech scene.
Compare →🍑 Atlanta
Similar affordability. More established ecosystem with similar costs.
Compare →