Everywhere you look around Arizona, startups are gaining momentum. As AZ Inno tracks the innovations that these tiny but mighty businesses are creating — not to mention the big chunks of capital many of them are attracting from venture capital and private equity firms, setting a funding record in 2021 — we're seeing how the state is coming into its own as a startup haven that's drawing on a young pool of talent and research from the state's universities.
Fintech, edtech, proptech and biotech are just four of the startup niches that Arizona is becoming known for, niches that AZ Inno has been covering with increasing regularity. To recognize the state’s fastest-growing, most innovative and impactful startups and their founders, we're debuting the annual Inno Fire Awards, which is AZ Inno's premier recognition for the companies and people that are blazing the trail in our local innovation economy.
This year's award winners were chosen from among finalists in four categories: Software, Health Care/Biotech, Female Founders and Inno Pick, while the 16 finalists were narrowed down from nominations received by AZ Inno. In addition, the inaugural Blazer Award was presented to a Valley executive who has been instrumental in lifting up the Arizona startup community.
— Greg Barr, Editor in Chief
The Blazer Award: Gregg Scoresby
People have built great companies in Arizona before, but few have dedicated themselves to building the state’s startup ecosystem quite like Gregg Scoresby.
Scoresby, an Arizona native, is best known for founding CampusLogic, an education technology company that simplifies financing options for college students.
CampusLogic has been a mainstay of Arizona’s startup ecosystem, reeling in more than $200 million in outside financing over the years, but Scoresby is now at an inflection point following the company’s acquisition.
Ellucian, a major edtech company in Virginia, acquired CampusLogic earlier this year, rolling it into its larger network of edtech offerings. Scoresby is currently serving as a special adviser to Ellucian CEO Laura Ipsen, which will last through the end of the year.
For his next chapter, Scoresby is setting his sights on helping other companies scale through investment.
He founded PHX Ventures in 2019 and has already seeded several Valley software firms; Better Agency, Equipifi, Nurture Boss, Virtuous, Active Class, Nectar, Botco, Trainual, Prenda and more have received funding from PHX Ventures.
Scoresby has a goal of investing in 30 Arizona software companies by 2030, and he’s about a third of the way there.
Building a sense of 'community'
When asked about his business success, he compared himself to a moderately talented lead singer, backed up by world-class guitarists, vocalists and drummers. He said he might be the one credited with CampusLogic’s success, but he could not have done it without help from others.
“I always am a little bit gun shy to take credit for something that worked out well, when in fact, it was a team effort,” he said.
People that worked with him at CampusLogic — including Chris Chumley, Chris Horne, Colleen Shannon, Allison Duquette and Darren Steele — deserve recognition as well, Scoresby said, as does his wife Jill, who has been his chief support system through more than three decades of marriage and multiple startups.
Mentors and investors were also essential on Scoresby’s CampusLogic journey. Clate Mask, CEO and co-founder of Chandler’s Keap, was the first investor in CampusLogic and helped him as a guide and coach, a role Scoresby is now playing for other entrepreneurs in the Valley.
Scoresby is undeniably pro-Arizona, but he said the state is lagging when compared to peers in Denver, Salt Lake City and Austin.
In addition to finding more ambitious founders and providing them with early stage capital to grow, Scoresby said simply building a sense of community among Arizona startups is key.
“You've got to have people that are connecting each other, supporting each other, just being helpful along the way. And that can be a combination of service providers, mentors, founders helping founders, founders investing in founders, it can be events and activities, but just needs to be a lot more robust,” he said.
“I actually think that is maybe the biggest missing ingredient right now… we have plenty of really smart and capable entrepreneurs here, we just need to find a way to connect and support and engage through an active ecosystem.”
— Andy Blye
Software winner: Moov Technologies
The Covid-19 pandemic has tangled up international supply chains and the production of semiconductors, the small computer chips that power modern electronics, has been among the most impacted sectors.
Moov Technologies, a startup based in Tempe, has seen its business boom during this chip shortage by running an online marketplace for used semiconductor manufacturing equipment.
Moov was founded in San Francisco but shifted its head office to Arizona last year. Since its relocation Moov has raised $41 million in venture funding and opened a new office in Austin, Texas, another American hub of semiconductor activity.
The biggest chip-making companies, like Intel and Taiwan Semiconductor Manufacturing, use the most advanced equipment to produce the most complex chips. But most, smaller semiconductor makers rely on used equipment as a key part of their process.
“If you're a manufacturing company, and you urgently need a new piece of equipment because your manufacturing line is down, you can't wait a year or two,” Moov co-founder Steven Zhou told AZ Inno earlier this year. “So we're just seeing a flood of customers coming to the second-hand market.”
Moov’s two-sided marketplace has merchandise worth more than $1.5 billion available for sale.
Moov is planting its roots in Tempe and will soon occupy a new office space at 100 Mill to accommodate its growing team. The company employed about 50 people in March, but has plans to add another 100 to its headcount by year’s end.
— Andy Blye
Software category finalists
Founded: 2002
CEO: Matt Johnston
What they do: GitKraken is a Scottsdale company that makes tools for software developers.
Founded: 2019
CEO: Jonathan Cottrell
What they do: Journeyage is a Phoenix company that partners with businesses to design a modern, personalized learning experience for employees.
Founded: 2001
CEO: Wendy Greenland
What they do: OpenForce is a Phoenix company that uses technology to help companies recruit and manage independent contractors.
• Qwick
Founded: 2017
CEO: Jamie Baxter
What they do: Qwick is Phoenix company that provides an on-demand food and beverage staffing platform.
Female Founder winner: Heidi Jannenga of WebPT
Any discussion of Arizona’s startup ecosystem is incomplete without mention of Heidi Jannenga, co-founder of WebPT in Phoenix. WebPT makes billing software for physical therapy offices. The company officially launched in 2008 and has since grown into one of the Valley’s most successful software companies.
Jannenga, now WebPT’s chief clinical officer, has been working with recently appointed CEO Ashley Glover to continue growing the company as the dominant software provider for physical therapist offices around the country.
In January, WebPT announced that it had acquired Clinicient, a rival software company based in Oregon. By purchasing Clinicient, WebPT secured its place as the market leader and now services more than 27,000 clinics and 43 million patients, which is more than half of the market, according to the company.
The combined company now employs more than 800 people across the country, and WebPT is also looking to fill another 40 jobs.
“As a physical therapist, this is a legacy for me, in my own industry,” Jannenga told the Business Journal earlier this year. “I mean, who gets to do that? Not very many people get to really make such a transformative contribution for the evolution of your own industry and profession, so this is just… it's awesome.”
— Andy Blye
Female Founder category finalists
• Jenny Poon - HUUB
Founded: 2020
What they do: HUUB is a Phoenix company that has created a digital support platform for entrepreneurs.
• Hannah Eherenfeldt - Resuture
Founded: 2019
What they do: Resuture is a Surprise company that has developed vascular simulations for surgical training.
• Scarlett Spring - Taproot Interventions
Founded: 2019
What they do: Taproot is a Phoenix company that runs an AI-powered care management software.
• Shruti Gurudanti - Televeda
Founded: 2018
What they do: Televada is a Phoenix company that uses technology to deliver live and live-streamed body and brain fitness programs to older adults
• Michelle Tinsley - Yellowbird
Founded: 2019
What they do: Yellowbird is a Phoenix company that has developed an app that matches subject-matter experts with construction, manufacturing and insurance companies.
Inno Pick winner: Footprint
Single-use plastics like straws, takeout bags and bottles are a major source of pollution, and Footprint has dedicated itself to replacing these damaging plastics with sustainable alternatives.
Gilbert-based Footprint is a prime example of the Arizona innovation ecosystem; Yoke Chung and Troy Swope co-founded the company in 2014 after working together at Intel as engineers.
Footprint is a material sciences company that makes packaging and other items from plant based materials. The company makes things like plates, cups, straws and other food containers that are recyclable and compostable, making them far less damaging to the environment than plastics.
The company has made major moves recently to raise its profile, including securing the naming rights to the Footprint Center, the downtown arena home to the Phoenix Suns and Phoenix Mercury basketball teams.
![Troy Swope Factory[2][87] copy](https://media.bizj.us/view/img/12057592/troy-swope-factory287-copy*540xx1200-675-0-113.jpg)
Footprint is also in the process of going public and listing on the Nasdaq stock exchange. Later this year, Footprint is expected to merge with Gores Holdings VIII, Inc, a special purpose acquisition company, or SPAC, that is already publicly listed.
Assuming the deal goes through, Footprint will be valued at $1.6 billion upon completion of the merger and will trade under the ticker symbol “FOOT.” The company employs more than 2,000 around the world, including a manufacturing facility in Mexico and an R&D center in the Netherlands.
— Andy Blye
Inno Pick category finalists
Founded: 2018
CEO: James Crowell
What they do: Crow Industries is a Scottsdale company that creates robotic systems for remote and denied field operations.
• Emerge
Founded: 2017
Manager: Jessica Gemmell
What they do: Emerge is a Scottsdale company that empowers logistics relationships through its Freight Procurement Platform.
• Neighbor
Founded: 2020
CEO: Nick Arambula
What they do: Neighbor is a Phoenix company that manufactures outdoor home furnishings.
Founded: 2020
CEO: Eli Chmouni
What they do: Neon Screens is a Tempe company that develops digital signage software.
Health Care winner: Centauri Health Solutions
Steady growth has been the consistent trend for health care service company Centauri Health Solutions since its launch in 2014, and while the pandemic brought challenges to the industry, the Scottsdale firm has continued making acquisitions and expanding its nationwide reach.
Centauri contracts with all major health insurance plans and medical providers with the aim of using technological means to get coverage and access to more people — particularly those who are most underserved. One key element of the company’s business is identifying and helping people who are eligible for Social Security, Medicaid or other benefits to make sure they get the coverage they’re entitled to receive.
The pandemic in many ways threw up obstacles for Centauri’s work, but one thing that was a definite help was the accelerated adoption of technology, and CEO Adam Miller said his company has been able to leverage that.
“What has changed is how people can interact in a world where we’re remote,” he said.
The company said it has reached out to more than 1.6 million members and patients through its multiple businesses, and its Referral Management & Analytics service which grew by nearly 30% by expanding into 14 new markets.
Other highlights from the past year include Centauri’s acquisition of Maryland-based IT platform Security Exchange Solutions, which added clinical data exchange capabilities, and the launch of a service that uses the 5-star rating system to measure the quality of care and service provided to Medicare members.
Centauri employs more than 1,600 people, with about 200 of them in Arizona. They’re working remotely, though, and the company is in the process of “de-officing,” Miller said.
Looking ahead, Miller said his business plan isn’t changing, which means expansion and evolution remain the norm.
“Continue to grow and expand the business,” Miller said. “We’re continuing to look at opportunities for acquisitions, new products, all sorts of stuff.”
— Jeff Gifford
Health Care category finalists
Founded: 2018
CEO: Mohammad Albanna
What they do: Humabiologics is a Phoenix company that derives biological material from donated human tissue and makes it available to researchers.
• SaiOx
Founded: 2020
CEO: Manny Teran
What they do: SaiOx is a Tucson company that is developing a respiratory-assist device that helps treat respiratory diseases.
Founded: 2020
CEO: Michael Rafko
What they do: Vita Touch is a Phoenix company that has developed a door handle that automatically dispenses hand sanitizer into the hand with every pull.
Click on the gallery below to see photos from the 2022 AZ Inno Fire Awards event:
