When it comes to the nation’s most favorable ecosystems for startups, Arizona is proving to be a robust hot spot. A report by real estate platform CommercialCafe found Phoenix to be the No. 1 large city for nurturing startups while Tucson and Mesa are Nos. 4 and 5 in the ranking for smaller cities, respectively. The report looked at which places are most hospitable for early-stage companies navigating an era of tightening capital since the generous days of 2021. In times like these, CommercialCafe said, “startups must now rely more heavily on fundamental business health and the strength of their local ecosystems.”