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Venture Capital Archives

The effect of gender equality in the investing space

In a world that is moving towards gender equality, numerous beacons pop up in Colorado and elsewhere throughout the country to help light the way forward. A case in point is a San Francisco woman who is an angel investor thriving in an industry that is male-dominated. For context, 7.4% of angel investors are female, and this imbalance affects who ends up being funded. Consequently, this woman strives to level the playing field and offer female entrepreneurs the same opportunities afforded to their male counterparts.

How to pique the interest of a CVC

Colorado startup business owners may be interested in knowing that 75 of the Fortune 100 companies provide some sort of corporate venture capital (CVC). However, these companies will not invest in just any startup. To improve the odds of securing an investment, a startup will strive to have as much diversity as possible in its team of founders. This is because that team will have a variety of backgrounds and skills from which to pull.

Drawbacks to seeking venture capital

Starting a business in Colorado or anywhere else in the country takes money. Everything from paying workers to buying equipment requires capital. While venture capital may be an option for new startups, it's not the best choice for all companies. In some cases, venture capital won't meet all of a new company's funding needs.

Creating a small business

Colorado residents that want to be entrepreneurs should know that it takes a lot of effort and preparation to start a business. Understanding the process that starting a brand-new enterprise entails can help aspiring entrepreneurs to avoid common pitfalls.

Trends in venture capital

Venture capital is a prime, competitive source of financing for new businesses. Investors in Colorado as well as entrepreneurs who are seeking financing for their startups should be aware of the trends that are shaping the venture capital industry.

Increasingly tough times for venture capitalists

Many Colorado residents are aware that it's never been tougher to operate as a venture capitalist firm. Lots of new opportunity seekers means more competition in chasing good ideas, and the ever-increasing difficulties are widely apparent to both new and veteran investors.

Funding and business names

Entrepreneurs in Colorado should know that the type of name that they have for their startup could be a factor in the amount of funding they are able to obtain. Startup names that are easy to pronounce are favored by investors in the early and late stages of a startup's development. Angel investors, venture capitalists, crowd funders and IPO investors tend to provide more funding to these companies.

Venture capital expands in an unlikely industry

Innovative companies in the insurance industry have enjoyed significant growth in venture capital over the past two years. Some Colorado investors may notice an obvious contradiction between the insurance industry's focus on risk management and venture capitalists seeking speculative high rewards. However, the recent turn should not be a shock, according to analysts.

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.