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Venture Capital Archives

Growth in Colorado 2017 venture capital

Businesses seeking seed capital from investors may need to redouble efforts in light of second quarter data in 2017. In Colorado and the nation as a whole, numbers point to larger amounts of venture capital pouring into a smaller number of firms. Appeals to international investors resulted in big gains for businesses in certain sectors. These gains over 2016 increases follow similar ones in the first quarter.

The future of venture capital in the United States

Venture capitalists and angel investors often provide entrepreneurs in Colorado and around the country with crucial startup capital when traditional banks will not. The venture capital industry has changed noticeably with the emergence of micro funds that concentrate mainly on initial seed money, and most industry experts expect the focus of venture capitalists to continue to evolve in the years ahead.

Updating the business plan may help secure capital

Start-up companies in Colorado and around the country are renowned for both needing and blowing through large amounts of cash. The needs and uses are typically expected and written into the business plan used to secure seed capital. After the business has significant cash flow, however, owners may forego the formal business plan until a catastrophe strikes, cash flows enter negative territory or owners face some other reason for seeking capital.

Why the government should not subsidize venture capital

Entrepreneurs in Colorado may have great ideas for startups that require them to seek venture capital so that they can finance their businesses. In Silicon Valley, for instance, there are a large number of unicorn companies precisely because of the influx of venture capital. The success there has led some governments to try to incentivize venture capital investments by offering subsidies.

Venture capital withdraws from cleantech boom

Colorado investors many be interested to learn that the deployment of clean energy technology is facing a decline in venture capital deals and funding. The national trend in cleantech funding showed a 30 percent drop in funding over a five-year period ending in 2016, according to a new report from the Brookings Institution. Cleantech is an umbrella term for several sectors, such as solar power and energy storage. The loss of funding for these sectors is hitting new business ventures harder, and some regions are faring much better than others.

Venture capital investing in the first quarter of 2017

Colorado entrepreneurs who are interested in funding their businesses using venture capital might be interested in learning that in the first three months of 2017, venture capitalists invested more than $16 billion in nearly 1,800 companies. Of that capital, half of it went to more than 500 companies in California. However, of the companies that did receive venture capital investments in that time, 69 percent were not in California. Companies in Washington D.C. and 46 states all received venture capital investment.

The importance of a business plan for funding in Colorado

A number of individuals who have great ideas for new products never obtain the funding they are seeking. One reason for this may be that they have created workable product plans but not full business plans. In reality, both are essential parts of starting up a successful organization.

Businesses outside major cities may struggle for venture capital

Venture capital may be less accessible for investors in Colorado and other locations outside of the Silicon Valley, according to one report. It found that almost half of every dollar of venture capital goes to Silicon Valley. Los Angeles, New York and Boston receive almost a third of all investments, so there is less than 25 cents of each dollar remaining for the rest of the country. In 2015, five states didn't receive any venture capital investments.