Entrepreneurs in Colorado and throughout the country often rely on venture capital to help their companies succeed. In 2017, business owners received $84.2 billion in funding from venture capital firms according to the National Venture Capital Association and Pitchbook. However, there were fewer deals done as the tech industry is going through a period of contraction. This is partially because the median age of companies seeking capital has increased since 2013. The median age of companies seeking Series A funding is about 3.5 years.
Venture capital investment in 2017 reached levels not seen since the dot-com boom that occurred more than 15 years ago. Entrepreneurs in Colorado may be interested to learn that some $84 billion was provided to more than 8,000 business ventures behind a variety of products and services. Sources of funding included angel investors, seed capital specialists and firms specializing in high-risk business ventures.
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.
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.
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.
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.
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.
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.
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.
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.