Is Phoenix a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Phoenix has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Phoenix gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Phoenix

Funding is one of the most critical ingredients in building a successful startup – and Phoenix offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

The early-stage funding scene in Phoenix is quite active, with a growing number of resources for local founders. Notable VC firms like Social Leverage, PHX Ventures, and Arizona Founders Fund are key players, often focusing on technology and software startups. Angel networks such as Arizona Tech Investors and Canyon Angels also provide crucial seed funding and mentorship. Government support comes from initiatives like the Arizona Commerce Authority's Arizona Innovation Challenge, offering grants and accelerator programs. Despite positive trends like increased overall VC investment in recent years, challenges remain. A persistent seed-stage funding gap has been noted, and while investment grew significantly from 2014 to 2024, the region still trails larger competitor markets in total dollars invested.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Phoenix has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Phoenix has a thriving and rapidly growing startup and innovation ecosystem, often called the "Silicon Desert". The city boasts a substantial number of coworking spaces and incubators supporting businesses at various stages. There is significant entrepreneurial activity with numerous tech and networking events held regularly. The ecosystem offers support for early-stage founders through programs like the Arizona Innovation Challenge, Venture Start, and incubators like the Center for Entrepreneurial Innovation (CEI), which emphasize tailored guidance and resources. While there are competitive programs, there's also a focus on personalized support and community building for startups at different growth phases.

For many entrepreneurs, the energy and resources available in Phoenix can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Phoenix, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Phoenix is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Phoenix has a growing talent pool that supports its burgeoning startup ecosystem. Educational institutions like Arizona State University (ASU) and the University of Phoenix contribute skilled graduates, particularly in STEM fields. The Maricopa County Community College District also adds to the talent pool. Industry-specific skills in demand include those in technology, healthcare, and sustainability, with a strong need for expertise in areas like software development, cybersecurity, cloud computing, AI, bioscience, and cleantech. Local talent supports entrepreneurial growth through a skilled workforce in engineering, design, and business development. The presence of universities also provides access to interns and entry-level professionals. Additionally, initiatives like the StartupAZ Job Board connect talent with startup opportunities. The city's lower cost of living compared to other tech hubs also helps attract and retain talent.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Phoenix can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Phoenix boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Phoenix offers a robust ecosystem for startups, featuring numerous incubators and accelerators like Seed Spot, Coplex, and the Center for Entrepreneurial Innovation (CEI), which provide mentorship, resources, and funding opportunities. Co-working spaces are also widely available. Arizona State University's Edson Entrepreneurship + Innovation Institute is a key player, offering programs, spaces, and funding. Government initiatives, primarily through the Arizona Commerce Authority (ACA), significantly support startups. Programs like the Arizona Innovation Challenge offer funding and mentorship through Venture Start, Venture Raise, and Venture Scale programs. The state also provides incentives like the Quality Jobs Tax Credit and R&D tax credits. Local government grants, such as the Phoenix Microenterprise Grant Program, further assist small businesses. This comprehensive network helps startups access capital, expertise, and networking crucial for growth.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Phoenix. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Phoenix Be Considered the Best Place to Launch a Startup?

There’s no doubt that Phoenix provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

While Phoenix is recognized for a growing startup ecosystem and a lower cost of living compared to some major tech hubs, entrepreneurs still face challenges. Competition exists within the expanding tech sector. Regulatory issues, such as navigating licensing, permits, employment law, and tax obligations, require careful attention to ensure compliance. Although the cost of living is generally more affordable than some peer markets, managing operational costs remains a factor for startups.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Phoenix or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Phoenix offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash