The inability to raise venture capital has plagued Colorado Springs in recent years. Few startup companies have been able to raise funds in recent years and the city would have to look back to the first quarter in 2013 to find a computer storage manufacturer securing $2 million. This and another $25 million investment in 2012 have reportedly been the only venture capital that any local company has received during the past four years.
Fortunately, this does not seem to be a statewide phenomenon. Venture capital investments are said to have totaled $112.6 million across Colorado during the first quarter of 2014. This is an increase of 13.1 percent over the fourth quarter of 2013 and a 63.6 percent rise from the first quarter of 2013.
Much of the investment has been in software companies. However, there are also a number of companies that are picking up steam in other markets as well. “We also are seeing more initial public offerings and acquisitions of venture-funded companies so far this year,” stated one corporate head in Denver.
There are attorneys who can help businesses locate the necessary capital for short-term investments. This is especially needed if the business one is contemplating is considered high-risk preventing more conventional financing from being available.
Unfortunately the inability to raise investment capital can prevent a good business idea from ever taking off. When this is happening in a local area such as Colorado Springs, there is the possibility that businesses will instead have to look elsewhere to develop and grow.
Source: The Gazette, “Once again, the venture capital train bypasses Colorado Springs,” Wayne Heilman, April 17, 2014