Last month, we wrote about how Colorado was described as one of country’s new hot spots for venture capital after venture capital professionals from across the country met with some of the state’s top entrepreneurs at the Colorado Venture Summit.
While Colorado isn't exactly considered the epicenter of venture capital investing, talented entrepreneurs and unique companies are beginning to draw more investors in.
Seed funding occurs when to encourage investment an investor ends up purchasing a portion of the business in return for the money it contributes. This seed money is generally needed in the very early stages of an organization when funds may in particular be in short supply.
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.
The initial public offering for companies does not always pay-off the first time around and sometimes subsequent IPOs are required. One Colorado firm is now attempting to raise $35 million through an IPO. It had attempted to raise $75 million in 2012, but those plans fell through when the firm could not locate buyers.
Signpost is a company that produces marketing automation software used by small and medium-sized businesses. It now would like to expand by relocating its Denver office to an 8,500-square-foot location near the downtown area.
At The Broadmoor in Colorado Springs, Front Range entrepreneurs hoping to attract capital heard from the venture capitalists themselves on important steps to take. Venture capital provides money to startup companies in Denver and across the state. The investors had come from states ranging from California to Texas.
One of the most crucial steps in starting a business can be identifying and seeking the funding that is often necessary for startups. Whether a person is reaching out to angel investors or venture capital firms, the goal should be on closing business transactions and securing the financing that can be vital to the initial success of a business.
We have previously discussed how popular Colorado is becoming with entrepreneurs on this blog. Based on a number of factors unique to the state, business owners have been flocking to parts of Colorado to launch their startup business. But a new study confirms just how many startups began last year.
Starting a business in Colorado can be a very exciting experience for eager entrepreneurs. However, this is not to say that it is ever an easy or straightforward process. There are a number of challenges that a business owner will face throughout the life of the business, but one of the first obstacles that many people arrive at is securing venture capital.