Top 7 VC Firms in Arizona That Invest in IT Startups
Arizona is a hub for many businesses, but one notable field is its IT sector. As per the latest reports by Arizona Tech Council, data points include a 6.2% employment growth in technology and a 1.02% increase in technology wages.
Currently, there are around 200,000 tech workers and 15,000 tech business establishments in Arizona, creating an economic impact of $341 billion.
With such a thriving tech scene, you must be thinking about, whether are there any IT investors in Arizona.
Well, Yes! Many renowned VC firms are funding startups in Arizona. To help you save time, we have filtered some of the top-ranking IT Investors in Arizona and summed up the results in the form of a list.
Table of content
- Top 7 VC Firms in Arizona That Invest in IT Startups
- Shot Ventures
- Canyon Angels
- Arriss Ventures
- Lobodos Ventures
- Pangaea Ventures
- Startup Tucson
- Social Leverage
- What Are The Best Ways to Find Angel Investors For Your Startup in Arizona?
- Startup Events
- Networking
- Socials
- Wrap-Up
- Frequently Asked Questions
- Q: What is the difference between Venture Capital Firms and Individual Angel Investors?
- Q: How to make your startup investable?
- Q: Do Angel Investors Provide Mentorship Programs?
Top 7 VC Firms in Arizona That Invest in IT Startups
Here is the list of some of the top-ranking IT investors in Arizona with their detailed explanations.
Shot Ventures
Website: Shot Ventures
Founded: 2000
Preferred Industries: Tech and Healthcare
Total Investments: 950
Notable Investments: Planet FWD and Lilac Solutions
Being one of the most active investors in Arizona, Shot Ventures is a famous venture capital firm that invests in early-stage startups. It has been operating for more than 20 years now and has some of the most famous, experienced names in the investor panel. The network consists of around 100 startup investors who have made around 1,000 investments.
Moreover, Shot Ventures prioritizes startups that are looking to expand their operations by raising capital and seeking expert guidance. However, Shot Ventures, in particular, is known to receive thousands of applications from startup leaders which raises a huge competition for businesses planning to get selected for funding.
They invest all across Arizona and also organize numerous startup events to boost the overall startup community. The average check size of Shot Ventures is around $200,000.
Canyon Angels
Website: Canyon Angels
Founded: 2015
Preferred Industries: Tech
Notable Investments: Embody and Naya Energy
Founded in 2015, Canoyon Angels is an IT-targeted VC firm. The network has a mission to hunt some of the most innovative tech-related startups and provide them with funding and guidance. Canyon Angels consists of more than 50 startup investors and conducts numerous pitching competitions every year.
The network focuses on early-stage startups and wants to invest in businesses that are offering innovative solutions. Canyon Angels is actively collaborating with undergraduates for deal screening, research, and event support. Startup leaders who are willing to secure funding can send an email to Canyon Angels and book a meeting or attend their pitching competitions.
The investment range of Canyon Angels is around $250,000.
Arriss Ventures
Website: Arris-Group
Preferred Industries: AR/VR Technology, Robotics Technology, IoT Technology, Blockchain Technology, Big Data Technology, Life Science, and Clean Energy
Notable Investments: Benu Networks and Verivue
Arris Ventures is also a notable venture capital firm that funds IT startups in Arizona. The network’s main focus is on local and international post-incubator stage companies. Arris Ventures consists of many reputable investors who invest in businesses led by experienced founders.
Ever since the inception of Arris Ventures, the VC firm has always been conducting rigorous screening events and ensuring they invest in the best of startups. The investor team doesn’t fund startups that have inexperienced or incapable teams. They invest in startups that are capable of generating a decent ROI.
Moreover, Arris Ventures doesn’t have a policy for attending general/direct business meetings; rather individuals must attend pitching competitions and prove the worth of their startup idea.
The average check size of Arris Ventures is around $2M.
Lobodos Ventures
Website: Lobodos Ventures
Founded: 2010
Preferred Industries: Tech
Notable Investment: Verivue
Headquartered in Chandler, Lobodos Ventures is also operating as a VC firm and makes investments in early and seed-stage businesses. The network has been funding startups for more than 10 years and has a strong interest in tech-related startups.
The aim of Lobodos Ventures is to contribute to the growth of Arizona’s entrepreneurial landscape. Their startup investors are highly qualified in the field of IT and invest in businesses that are capable of scaling on an international level. Most of their portfolio companies are dealing with tech and offering solutions to businesses (B2B).
The investment range of Lobodos Ventures is around $800,000.
Pangaea Ventures
Website: Pangaea Ventures
Founded: 2000
Preferred Industries: Tech, Food, Agriculture, Healthcare, Engineering, Biotech, IT, and Software
Notable Investments: NewLeaf Symbiotics, Vestaron Corporation, Aspect Biosystems, and Redlen Technologies
Pangaea Ventures is a world leader in hardtech venture capital. They invest in start-up companies that are related to the sectors of tech, climate, food & agriculture, and human health.
Pangaea Ventures invests in companies that contribute to a sustainable future by creating products that tackle fundamental problems. Their team of investors is very strict with the firm’s rules and does not compromise on the criteria of selecting a startup.
The investment range of Pangaea Ventures isn’t mentioned on their website. However, the average check size of their portfolio companies is around $300,000-$500,000. This can also increase/decrease depending on the startup’s ROI and idea market.
Startup Tucson
Website: Startup Tucson
Founded: 2012
Preferred Industries: Diverse Investment Interests
Total Investments: 20
Notable Investments: Berry Cultured, Divine Hair Goods, and Micro Safari
Startup Tucson is a nonprofit entrepreneurial support organization based in Southern Arizona. Founded in 2012, it serves as an advocate, educator, and connector for entrepreneurs. The network has a mission to increase the number of startups in Southern Arizona by helping them get funding and the best guidance.
Similarly, Startup Tucson has also introduced many types of startup events where entrepreneurs, investors, and fresh startup leaders can meet each other. Some of their events are
TENWEST Impact Festival: An annual event that brings together leaders, innovators, and community members. It features workshops, panels, and networking opportunities.
Thryve Next: A program designed for early-stage startups. It provides mentorship, resources, and connections to help founders refine their business models, develop prototypes, and prepare for investment.
Startup Labs: A series of workshops covering essential topics such as business planning, marketing, and financial management. These labs empower entrepreneurs with practical skills and knowledge.
The list keeps continuing with their concept of IdeaFunding, Startup 101, and a lot more. The general check size for startups is around $10,000 to $50,000.
Social Leverage
Website: Social Leverage
Preferred Industries: Fintech, Enterprise SaaS, Consumer
Total Investments: 125
Notable Investments: eToro, Stocktwits, and Robinhood
Social Leverage is a venture capital firm that partners with famous entrepreneurs. Founded in 2009, they invest in promising technology companies at the early and seed stages. Social Leverage has a unique reputation for finding top-notch talent and helping them develop a strong business by investing funds and providing the best guidance.
Currently, Social Leverage has funded around 100 startups, most of them being related to the IT sector. The average check size of Social Leverage is around $500,000.
What Are The Best Ways to Find Angel Investors For Your Startup in Arizona?
The list mentioned above covers all of the well-known startup investors in Arizona. However, if you still want to know more about different ways to find angel investors, here is how you can do it.
Startup Events
Many angel investors participate in startup events to find a business with innovative and profitable ideas. Similarly, if you want to find individual angel investors, it is recommended to attend different networking events, startup accelerators, and startup incubators.
Networking
Although the technique isn’t guaranteed to work for every other business, startup leaders can still find an angel investor by evaluating their networks or checking through friends and family. It is also a good idea to list your startup on a crowdfunding platform and see if an investor reaches you.
Socials
Startup leaders can also find investors through social media platforms. LinkedIn remains one of the most common platforms to find like-minded investors that can fund your startup.
Other platforms like Facebook and Instagram may not aid you in direct reach-out strategies but using ads and marketing your startup’s funding requirement can also be a great idea.
Wrap-Up
So, our discussion related to the top IT startup investors in Arizona has come to an end. Through the article, we have discussed the names of several top-ranking VC firms that can help businesses secure an investment.
However, before we sum things up, there are some mandatory points you must always remember before starting your presentation.
- Angel investors value businesses that will make big profits in the future.
- The value of a startup is attached to the market it will operate in.
- Focus less on stories and more on facts that define the future growth of a startup.
Frequently Asked Questions
Q: What is the difference between Venture Capital Firms and Individual Angel Investors?
A: Venture capital firms are organized setups that aggregate capital from various investors and deploy it into startups at a larger scale, offering expertise and guidance.
In contrast, individual angel investors are private individuals who invest personal funds directly into startups, typically at an early stage, using a more personalized approach and hands-on involvement in the startup’s growth.
Q: How to make your startup investable?
A: To make a startup investible, focus on a scalable business model, a strong team, a well-defined market opportunity, and evidence of market validation.
Q: Do Angel Investors Provide Mentorship Programs?
A: Yes, many angel investors provide mentorship programs and financial support. They leverage their experience to offer strategic insights, assist in critical decision-making, and facilitate introductions to their network connections. This mentorship is pivotal for startups, aiding them in overcoming obstacles and expediting their growth trajectory.
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