StartupAZ Newsletter: Issue 16
It depends on who you ask and where you look. Read the commentary of nearly any major business media outlet and you’re likely to find a less-than-favorable outlook on the state of startup investment.
Just a few months ago, the venture giant Sequoia Capital warned of a crucible moment, urging founders to start shoring up expenses and extending their runways. Y Combinator followed suit, suggesting founders “plan for the worst”.
There certainly have been areas of regress, but while others are sending warning signals, Arizona investors are going strong. (It should also be noted that despite its warning signal, Sequoia is actually on track to make more investments this year than it did in 2021.)
“My strategy hasn’t changed,” said Gregg Scoresby, founder and managing partner at PHX Ventures. “I want PHX Ventures to be the most active software investor in Arizona.”
Leib Bolel, a partner at Grayhawk Capital, echoed a similar sentiment.
“Our strategy and focus have not changed,” Bolel said. “We always continue to monitor and assess market conditions, and new waves of technology transformation. But we remain in focus with our investment thesis and philosophy. While many firms have taken a step back, we think 2022 will be one of our most active years.”
The outlook here in Arizona may look a little sunnier than it does in other regions, but investors are still looking for the same core fundamentals: demonstrable repeatable traction, ambition, and an understanding of the math and economics of the business.
“It might take a little longer to raise that capital and it might be a little more expensive than it was in 2021, but I believe that there continues to be more investable capital than investable companies,” Scoresby said. “Founders need to make their companies investable.”
Part of what helps cultivate more investable companies is the ecosystem in which they grow up (which we talked about in last month’s newsletter).
“There are many dynamics needed to foster a healthy ecosystem,” Bolel said. “Integral to these dynamics are resources, community, peer networks and mentors. StartupAZ is all of these and so much more.”
“There are a lot of wonderful programs and organizations supporting entrepreneurship in Arizona, but I believe StartupAZ is at the top of the list when it comes to creating a community of performance-driven entrepreneurs,” Scoresby said. “A significant percentage of the tech-oriented startup companies that are scaling and winning here in Arizona are part of the StartupAZ ecosystem.”
One of those performance-driven entrepreneurs is Bryce Deeney, CEO of equipifi, a buy-now, pay-later platform. In this month’s Collective Conversation, he shares how he discovered a gap in the fintech space and got to work to bridge it. Read on for more!
Don’t forget to apply for the Arizona Innovation Challenge! Applications close next Wednesday, Aug. 31. It’s a chance for up to 10 awardees to win up to $150,000 and join the mentor-led accelerator, Venture Ready.
Apply Here.
It takes a keen eye to identify a need in the marketplace, but only the fervent few will take on the challenge and responsibility of building a solution to fill that need. Bryce Deeney happens to be one who poses both of those two traits, and that’s what led to equipifi, a buy-now, pay-later platform that launched last year and is already realizing hockey-stick-like growth.
In this Collective Conversation, Bryce shares how he identified the opportunity, took it from concept to reality and how the growth has been since.
Watch the full interview (or check out the Q&A).
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