Business & Employment Law Attorney
866-693-5541 | 303-424-4286

Denver businesses see decrease in venture capital last year

One of the most difficult challenges that people face when starting a business is securing the funds necessary to get it up and moving. Some people can rely on personal savings or a network of friends and family to invest in a startup company, but often times, this is insufficient. In general, it can be necessary for a company to get the funds from an investor who is willing to provide venture capital.

Wealthy investors who are willing to make this type of high-risk investment do not just throw money at every opportunity that comes their way. It often takes a strong business idea, effective business plan and the potential for a high return on the initial investment for many angel investors and venture capital companies to be attracted to an idea.

Unfortunately, last year was a rough one for Colorado businesses in terms of venture capital. According to a recent report, investments by venture capitalists shrank by 9 percent in 2012. The report shows that in 2011, there was about $616 million invested in Colorado and last year that dropped to $560 million. The fourth quarter of last year was a particularly unexciting time for state businesses. According to reports, investments made during this time period decreased by a whopping 50 percent when compared to 2011. This trend was seen nationally as well, with an overall decrease of 9 percent in venture capital invested throughout the country.

Many sources agree that the difficult state of the current economy played a role in this decrease. It is also believed that the uncertainty of the presidential election and the possibility of the so-called fiscal cliff contributed to the decline in investments.

However, sources believe that there is a renewed sense of confidence and motivation in the New Year making it likely that these investments will start climbing again soon. This is good news for startup businesses and companies looking to expand in Colorado. Securing this type of capital funding can be extremely important to the success of a company.

Source: Denver Post, "Venture capital plunges in Colorado in fourth quarter and 2012," Andy Vuong, Jan. 18, 2013

No Comments

Leave a comment
Comment Information
  1. "I used the Bryan E. Kuhn, Counselor at Law, P.C. team to help me with a case. They were always professional, upfront, and positive providing guidance while keeping me informed."
    - L.H.

  2. "Everyone at the firm was professional, responsive and courteous. Kate was exceptionally knowledgeable and responsive and she helped me to achieve the desired outcome. I would definitely recommend this firm if you are in need of superior legal assistance."
    - J.S.

  3. "Bryan and his law firm operate with great professionalism and personal touch. I appreciated the way he and his team offered transparent communication."
    - N.S.

  4. "Kate & team were very professional in helping me to get through an uncomfortable ADA situation at my workplace. This was a very good legal experience. I would recommend Bryan E. Kuhn & team to anyone who needs work related legal help."
    - D.L.

  5. "Bryan, Katie, and all the staff in this office are super fast to respond, expert in their fields, and always helpful. We have been extremely pleased with their services for our small business."
    - T.Z.

  6. "Working with Bryan was amazing. His professionalism made a very stressful and difficult challenge as positive as possible. A great lawyer"
    D.K.