The software sector in Arizona seems to grow with every passing year. In 2022 alone, more than 20,000 jobs were created, and over $500 million was invested in software-related businesses.
Similarly, a notable field in the world of software startups is SaaS. In 2024, SaaS startups are gaining a lot of attention from well-known angel investors. Not to forget that the state has a robust infrastructure, a talented workforce, and a supportive community that nurtures startups and established enterprises alike.
Since this shift towards cloud-based services has attracted significant investment from investors, we have shortlisted some of the most active startup investors in Arizona.
So, here is the list of some of the top SaaS angel investors in Arizona. Although the list is quite short, remember that Arizona is quite new to SaaS, and the number of investors funding such startups isn't gigantic.
Onto the list now!
LinkedIn: Gary Benitt
Investor Type: Individual Angel Investor
Investment Interests: Software, Mobile, SaaS, Consumer Products.
Investment Stage: Pre Seed
Gary Benitt is a famous SaaS investor in Arizona and serves as a Managing Partner at Social Leverage. Before joining Social Leverage, he was a serial entrepreneur and part of four founding teams. He brings two decades of founding experience to the fund's portfolio companies, selecting unique startups that have a profitable idea and proven business model.
Discussing his investments, Gary Benitt is quite active in the startup scene and usually makes 2-3 personal investments every year. Benitt prefers businesses that are in the enterprise or healthcare sector and doesn't like to fund startups with high competition. He also has strict criteria for investing in businesses led by highly experienced founders.
Gary Benitt's investment range is around $500,000.
Linkedin: David TeDesco
Preferred Industries: Software, SaaS, Mobile Apps
Funding Since: 2011
Notable Investments: Kustomer
David Tedesco is an entrepreneur, investor, and philanthropist. He serves as the CEO and Founder of Outlier. Some years back, David kickstarted the Stop Dark Money initiative by providing foundational funding, office space, personnel, and technical resources. His main focus is beyond financial investments and is always focused on growing the startup community.
Moreover, David Tedesco can be easily reached through his business emails or social handles. He likes to connect with experienced and talented startup leaders who have something valuable to offer. Each year, around 1-3 startups are selected to receive funding depending on their idea market and what value can they add to the relative sector.
The investment range of David Tedesco is around $250,000.
Website: Robert Nelsen
Preferred Industries: Innovative Tech and SaaS
Notable Investments: Illumina, Alnylam Pharmaceuticals, Juno Therapeutics, Beam Therapeutics, and Karuna Therapeutics
Robert Nelsen is also a well-known angel investor in Arizona who funds SaaS startups. He is a co-founder and Managing Director of ARCH Venture Partners. He has been with ARCH since its founding and played a significant role in financing and developing more than 150 companies.
Discussing the investment activities of Robert Nelson, he invests in companies that align with his vision for transformative technologies and healthcare advancements. Robert Nelson has a strict requirement for startups to solve real-time problems and have low competition.
The average check size of Robert Nelson is around $100,000 as he is an early-stage investor.
Linkedin: Michael Hool
Preferred Industries: technology, healthcare, SaaS, and real estate startups.
Notable Investments: Force Impact Technologies
Michael Hool is a venture lawyer and an active technology investor. He has been the Founder and Managing Partner of Hool Law Group for over 25 years. Hool has helped launch, grow, and exit over 100 technology ventures and formed more than 15 private equity funds and investment organizations.
Michael actively supports accelerators, and incubators, and has formed angel investment groups. He has served on the board of organizations such as Arizona Venture Capital Conference, BioAccel, AzTech Investors, and The Indus Entrepreneurs (TiE) Arizona.
Unlike other investors, Hool isn't about just increasing the portfolio number. He usually conducts a lot of startup meetings and only selects businesses that can deliver what they promise. His investment range isn't publically available but portfolio investments are around $200,000.
Linkedin: Pat Sullivan
Preferred Industries: Innovative Tech, Healthcare, Cybersecurity, and SaaS
Notable Investments: EpiFinder, Armor, Shelvspace
Pat Sullivan is also a SaaS investor who usually makes his investments in Phoenix and Scottsdale. Sullivan has been a dedicated businessman and values startups that have a strong growth plan.
When making investments, Pat Sullivan makes early and seed-staged investments. He arranges several investor meetings and likes to know the startup in every detail before making the investment. Moreover, Pat Sullivan is known for his tough questioning which is why he has a very small portfolio when compared with other investors.
Aside from investment activities, Patt Sullivan also attends some startup events. He isn't just about funding startups but also takes time to guide newer businesses by helping them through paid workshops.
The investment range of Patt Sullivan is around $1M.
Generally, pitching to startup investors isn't a one-line shortcut. It is an art that needs experience, confidence, and, most importantly, a worthy startup idea that deserves to be funded.
However, we have prepared a short practical checklist that will help you pitch to startup investors and secure investment.
An easy way to lose an investor is by lying and telling him/her unrealistic goals. Never promise goals that are unachievable for the business, and always show potential to achieve maximum results.
It's good to include a story in your pitch deck, but it would be a dumb act to only include stories and not realistic statistics. The investor needs to know the potential of the startup he/she might invest in, and that is what you need to display through a straightforward pitch deck.
Your team is equally important and needs to be introduced professionally. Tell the startup investors how your business can achieve the expected results and what contribution your team is making to the business.
Some additional tips:
Include Rich and Concise Data
Personalize Your Pitch for Your Audience
Be Prepared to Answer Questions
Practice Often and Improve Your Public Speaking Skills
Tell a Short, Compelling Story
Research Your Investors BEFORE You Meet
Meet With the Intention of Building Relationships
Yes! The idea of SaaS is still growing in Arizona, but some of its states, especially Phoenix, are already witnessing the boom of the SaaS sector. The city of Phoenix hosts 42 SaaS companies with combined revenues of $141.9 million. These companies employ over 1,700 people, have raised $164.1 million in capital, and serve over 16.2 million customers globally.
Still, in Arizona, there aren't a huge number of individual angel investors who are willing to invest in the SaaS sector compared with the VC firms.
So, we have finally concluded the discussion about the top SaaS investors in Arizona. But! Before wrapping up, we would like to discuss a few important things.
Startup leaders, when they are going to attend their first investor meeting, always overthink and, in many cases, ruin their chances of securing funding. To overcome this extra moment of tension, we would recommend you watch some online interviews and get an understanding of how startup meetings work.
At the end of the day, it is important to remember that angel investors are also looking for a valuable person to invest their capital. This person can be you!
Good Luck!
A: To make a startup investible, focus on a scalable business model, a strong team, a well-defined market opportunity, and evidence of market validation.
A: Yes, many angel investors provide mentorship programs and financial support. They leverage their experience to offer strategic insights, assist in critical decision-making, and facilitate introductions to their network connections. This mentorship is pivotal for startups, aiding them in overcoming obstacles and expediting their growth trajectory.
A: Venture capital firms are organized setups that aggregate capital from various investors and deploy it into startups at a larger scale, offering expertise and guidance.
In contrast, individual angel investors are private individuals who invest personal funds directly into startups, typically at an early stage, using a more personalized approach and hands-on involvement in the startup's growth.
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