Phoenix, December 18, 2025
Phoenix, Arizona has emerged as the leading U.S. city for startups, according to a recent analysis by CommercialCafe. With a score of 62.1 out of 100, Phoenix surpasses other major metropolitan areas in key metrics, including startup density and new business growth. The city is experiencing a remarkable 27.4% increase in new businesses and a rising pool of college-educated residents, pointing to its thriving entrepreneurial ecosystem.
Phoenix Tops U.S. Cities for Startup Growth and Density
Phoenix, Arizona has been recognized as the leading U.S. city for startups, according to a recent analysis by CommercialCafe. The city achieved a score of 62.1 out of 100, surpassing other major metropolitan areas in key metrics such as startup density, new business growth, and the increase in college-educated residents.
Key Factors Contributing to Phoenix’s Top Ranking
- Startup Density: Phoenix leads in startup density, with 11.2% of new businesses being less than one year old.
- New Business Growth: The city experienced a 27.4% increase in new businesses between 2019 and 2023.
- Educational Attainment: Phoenix recorded a 28.9% rise in college-educated residents from 2019 to 2024, indicating a growing talent pool.
Comparative Performance of Other U.S. Cities
Following Phoenix, the top-ranked cities for startups with populations over one million include:
- San Antonio, Texas: Scored 57.1, excelling in cost-related metrics such as labor costs and office space affordability.
- Jacksonville, Florida: Noted for leading in freelance growth.
- New York City, New York: Recognized for its extensive networking opportunities.
- San Diego, California: Distinguished by its research hub advantages and a high share of residents with bachelor’s degrees.
Background on Phoenix’s Startup Ecosystem
In addition to its recent achievements, Phoenix has been a consistent performer in various startup and innovation rankings. Notably, the city was ranked 52nd globally in the 2020 Startup Ecosystem Rankings, reflecting its growing prominence in the entrepreneurial landscape.
Furthermore, Phoenix’s tech talent workforce has seen significant growth, with a 30.1% increase between 2017 and 2022, positioning it 15th in CBRE’s 2023 Scoring Tech Talent report. These developments underscore Phoenix’s emergence as a dynamic hub for startups, driven by a combination of favorable economic conditions, a supportive business environment, and a rapidly expanding, educated workforce.
Frequently Asked Questions (FAQ)
What factors contributed to Phoenix being ranked as the top U.S. city for startups?
Phoenix’s top ranking is attributed to its high startup density, significant growth in new businesses, and a substantial increase in college-educated residents, all contributing to a robust entrepreneurial ecosystem.
How did other major U.S. cities perform in the startup rankings?
Cities like San Antonio, Jacksonville, New York City, and San Diego also performed well, each excelling in specific areas such as cost of doing business, freelance growth, networking opportunities, and research hub advantages.
What is the significance of Phoenix’s ranking in the 2020 Startup Ecosystem Rankings?
Phoenix’s 52nd place ranking globally in the 2020 Startup Ecosystem Rankings highlights its growing prominence and competitiveness in the global entrepreneurial landscape.
How has Phoenix’s tech talent workforce evolved in recent years?
Between 2017 and 2022, Phoenix’s tech talent workforce grew by 30.1%, reflecting the city’s expanding role as a tech hub and its appeal to technology professionals.
Key Features of Phoenix’s Startup Ecosystem
| Feature | Details |
|---|---|
| Startup Density | 11.2% of new businesses are less than one year old. |
| New Business Growth | 27.4% increase in new businesses from 2019 to 2023. |
| Educational Attainment | 28.9% rise in college-educated residents from 2019 to 2024. |
| Global Startup Ranking (2020) | Ranked 52nd globally in the Startup Ecosystem Rankings. |
| Tech Talent Growth | 30.1% increase in tech talent workforce between 2017 and 2022. |
Deeper Dive: News & Info About This Topic
HERE Resources
USD’s Piña Designs Wins Top Honor at Fowler Business Concept Challenge
Surge in Norovirus Cases Linked to New Strain in California
California’s Parks Uphold Inclusivity Amid National Policy Changes
San Diego Entrepreneurs Invited to Apply for Startup Showcase
Oncolytics Biotech Inc. Reschedules Special Shareholder Meeting
ClickUp Expands AI Horizons with Qatalog Acquisition
TechCon SoCal Returns to San Diego’s Innovation Hub
San Diego Secures 21st Place in WalletHub’s Most Fun Cities Ranking
Local Graduate Student Earns Scholarship for Eco-Innovation
Fabric8Labs Secures $50 Million to Boost Manufacturing in San Diego
Author: STAFF HERE SAN DIEGO WRITER
The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
