Business Formation • Funding

How will you fund your new technology business venture?  Many entrepreneurs believe that having an idea, patent or new product is all that is necessary to starting and financing a new venture.  However, there are important things to consider, before approaching traditional and alternative capital funding resources - click here to find out more.

The number one need of emerging technology companies is financial capital.  Your business can secure adequate funding by defining its profit and growth potential, demonstrating the knowledge required to reach this potential, and offering a strategy to effectively reinvest profits. Important questions to consider as you formulate your funding strategy:

What are the financial resources required to launch my new business venture? Can I demonstrate sufficient knowledge and experience to make this launch successful?  What is the profit potential of this venture? Can I acquire the right people to launch operations and sustain success?  What are the intellectual property requirements?  How will I reinvest profits for effective ongoing research and development, and expansion of market share and operations?

Some tips for a successful VC pitch!

For a searchable directory of potential funding resources click here

Arizona is working vigorously to answer the funding needs of emerging tech companies through many new mechanisms.  Some require legislative or regulatory change, while others are being created through the private sector. Two of Arizona’s recent initiatives include the formation of the Governor’s Council on Innovation and Technology (GCIT) and newly passed legislation known as the Angel Investment Bill.

GCIT is the Governor's principal advisory group for innovation and technology, and is charged with:

• Developing the framework and vision to enable Arizona to become a global leader in innovation and technology research, development and product creation
• Strengthening the innovation and technology infrastructure of Arizona
• Evaluating capital formation in Arizona and developing recommendations that support Arizona's global competitiveness in the 21st century
• Promoting technology transfer and inspiring partnerships between Arizona's business community and university researchers
• Creating and retaining an active marketplace of quality jobs in Arizona

In May 2005, Governor Napolitano signed into law a series of business tax relief measures to attract, expand and retain high value growth companies throughout Arizona.  The angel investor's tax credit will assist early-stage companies in attracting the much-needed capital to expand operations and bring new ideas, products and services to market.  Another initiative, referred to as sales factor allows companies to use a new formula to calculate corporate income taxes, which will ultimately inject more dollars into the state's economy.  The last measure championed by the business community offers substantial business property tax relief through a reduction in the assessment ration and will benefit businesses of all sizes.

Following are links for both traditional and alternative capital funding resources in Arizona:

Angel Funding



Desert Angels
Arizona Angels

Venture Capital Funding
Arizona Business Accelerator
Funding Resources

Grant Funding
Federal Grants Gateway
SBIR/STTR Gateway
SBIR/STTR Key Solicitation Dates
Small Business Innovation Research (SBIR)/Small Business Technology Transfer Research (STTR)

For a list of federal SBIR/STTR funding agencies, please click here.

The Arizona Department of Commerce provides assistance programs for small technology companies; click here for more information.

Lending Resources
Arizona MultiBank
SBA Loan Programs

Online Capital Resource Center
The Arizona Small Business Association (ASBA) maintains a Capital Resource Center - one convergent point for the matching of providers and seekers of capital in Arizona.