The Phoenix market is continuing to show positive signs of growth and development, with over 140 health care startups in the region and significant venture capital investment in life sciences, according to new research from Cushman & Wakefield.
The report, which looked at major metropolitan areas from around the world and was released in September 2023, found that Phoenix is continuing to see significant growth as an emerging life science cluster. The data shows that Phoenix saw $76 million in venture capital investment for life sciences specifically, which is up 67 percent year over year. Major deals include GT Medical Technologies, which raised $45 million in March 2023, and Calviri, a Phoenix Bioscience Core-based company that raised $11.1 million in May 2023. Other big deals include ASU spinout Neolight cashing $5.7 million and Myosin Therapeutics which raised $5 million.
The report showed that Phoenix is primed for continued growth in the sector due to “investment of several large universities and government funding initiatives,” as well as the fact that Arizona “remains focused on building its burgeoning life science industries with several key initiatives, including AZAdvances, an initiative of the Opportunity Through Entrepreneurship Foundation and The Arizona Health Innovation Trust Fund, an endowment administered by the Office of the Arizona State Treasurer.”
The report also highlighted major growth in the number of graduates with life science degrees, up 71 percent over the past decade; and showed that there is more than a 45 percent growth rate in employment in the life sciences sector during that same time period. Additionally, new developments including the Center for Advanced Molecular and Immunological Therapies and other plans for the Phoenix Bioscience Core and greater Phoenix area create new opportunities for companies to establish presences here in Arizona.
Phoenix is still identified as an “emerging market” compared to some other more mature markets such as Boston, San Diego or the Bay Area, putting us in the same category as Dallas-Forth Worth, Salt Lake City and Atlanta.
The latest report tracks with other national reports coming from across the country viewing Phoenix as a growing market for life science and health care startups looking for a strong and developing ecosystem.