After receiving a $10 million investment, EverFi, a district based education startup company is planning on hiring up to a 100 employees around the country, and hopefully in the Denver area as well within the next 18 months. The $10 million investment was from a group of financiers with some of the biggest names in consumer technology, including Amazon's chief executive Jeff Bezos, Twitter co-founder Evan Williams and Google's Chairman Eric Schmidt.
This time last year 19 companies had made an initial public offering. Not one company has gone public since Facebook went public last month, and 14 companies have delayed or withdrawn their IPO plans, why is that? Additionally, there is not one public offering scheduled for this week, thanks mainly to the European debt crisis. Coloradoans might be wondering if Facebook's rather inauspicious start may be partly or perhaps entirely to blame for the recent drop in new IPOs.
The Kauffman Foundation and Thumbtrack.com released their annual rankings last week and named Colorado Springs, Colorado, as the third best city in the United States for starting a small business. Thumbtrack is a website used for finding and hiring local services. After surveying more than 6,000 small businesses around the nation over a two-month period, the website put Colorado Springs as one of the best places in the country to start and grow a small business and gave it an A+ rating.
It is often said that some of the most innovative thinkers are involved in start-up companies, but the problem is these entrepreneurs often have difficulty finding seed money to get their brilliant ideas off the ground. With the strain on the economy over the last few years, more and more venture capital firms have tightened the purse strings and become adverse to certain risk factors in funding decisions, as reported in a previous post. With the decline in venture capital funding in the last decade, unless a start-up has a commercially viable product ready to launch, it can be difficult to find the funds to help get the product to market.
Social media is here to stay, but how does a business use it to attract and engage customers to boost its bottom line? Many try campaigns on various social media websites such as Facebook, however one such campaign by the Aurora, Colorado, Chik-Fil-A franchise restaurant caught the ire of a startup entrepreneur and self-proclaimed social media expert who slammed the campaign online.
Often, the most challenging part of starting or growing a business is finding enough money. The economy has been hurting for years, and many investors are reluctant to give money to an enterprise that doesn't seem like a sure bet.
Starting a business is hard. It's not enough to simply have a great idea. You also have to have the financing to make your dream a reality.
As readers of this blog may know, starting up a business can be complicated for those not familiar with business law. There is a virtual mountain of paperwork and process. Then there is the venture capital you'll need to fund the start-up. Add to the mix the many legal requirements for initiating a business, and it's easy to see why the entire process can at times seem overwhelming. Additionally, starting a business often requires much more than just a good idea; it requires a lot of funding.
Venture capital appears to be on the rise in the Denver area and throughout Colorado. That is good news for startups, as they benefitted from $158 million in funding statewide for the third quarter. That figure is almost double the amount invested for the same quarter last year. It also appears that most of the venture capital funding stayed in the Denver and Boulder areas. In particular, two alternative energy companies received almost half the third quarter allotment. In all, the third quarter funds were divided between 876 startups, a 3 percent rise from the same period last year.
Venture capital funding is known for its potential to spawn job growth. With today's failing economy and deflated job market, venture capital designed to fund new jobs gets praise all across the board. A Denver company recently closed on a venture capital round that totaled $14 million.