Venture capital appears to be on the rise in the Denver area and throughout Colorado. That is good news for startups, as they benefitted from $158 million in funding statewide for the third quarter. That figure is almost double the amount invested for the same quarter last year. It also appears that most of the venture capital funding stayed in the Denver and Boulder areas. In particular, two alternative energy companies received almost half the third quarter allotment. In all, the third quarter funds were divided between 876 startups, a 3 percent rise from the same period last year.
The total funding of nearly $444 million for the first three quarters is only $60 million shy of the figure for all of last year and doubles the amount for the same quarters last year. Nevertheless, the figures represent a decline in both the number of transactions and amount invested from the prior quarter. That decline appears to be linked to continuing concern about the stock market and the prospect of taking a startup public, which is the point where venture capital funding generally receives its return on investment.
Overall, the news is positive and indicates a trend towards more money being available for projects with a solid business plan and good prospects of success. The pursuit of venture capital funding can be complicated, requiring both an attention to detail and a high level of diligence. With an eye toward making their business dreams a profitable reality, hard-working venture capitalists are sure to be seeking out sage advice in the months to come.
Source: gazette.com, “Springs again bypassed by venture capital,” Wayne Heilman, Oct. 19, 2011