My View: Arizona has a growing number of entrepreneur funding sources (really)

A common refrain I hear: “There is no venture capital or private equity in Arizona.” Well, relative to Silicon Valley, Chicago or New York, this is an understandable lamentation (often one circulated by the owner of an unfundable business).

In reality, there exists a significant amount of capital in Arizona available to entrepreneurs and owners of growing businesses relative to the number of individuals and companies that are actually worthy of such investment consideration.    

I have personally helped numerous companies find money along the spectrum from the startup to the established company looking for growth capital to the mature company looking to recapitalize or sell. A good portion of this money has come from Arizona.  

While the angel market in Arizona can certainly be inefficient, there exists a large amount ready and willing to take risks on companies with the proper attributes — a founder or CEO who not only has identified a clear problem and a solution but one who possesses the degree of grit and passion to see the company through the trials and tribulations of growing a business.

There is always room for continued improvement in Arizona on this front.  As Arizona’s technology sector continues to grow with the attraction of significant businesses and an ever-increasing population of repeat serial entrepreneurs, I am optimistic that the pool of focused capital resources will continue to grow.  

In an effort to set the record straight, I have identified below the various funds and similar sources of capital that currently exist in Arizona. I intend to shed more light on these groups over the coming months in an effort to better inform the Arizona business and investment community so that they might avail themselves of these resources. 

I am sure that I have missed some and this exercise will no doubt serve to unveil some hidden sources. Note that this does not include the vast number of active angel investors and individual sources of capital who quietly fund or acquire Arizona companies.  

Venture Capital

Traditional Commitment Funds

Fundless Sponsors

Family Office (Early Stage Focus)

Organized Angel Groups

Later-Stage Private Equity (Funds and Family Offices)

Out of State Funds or Family Offices with AZ presence

Dan Mahoney is a partner at Snell & Wilmer LLP and an active angel investor. His law practice is focused on M&A, private equity and venture capital.