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.
Venture capital plays a vital role in encouraging entrepreneurial spirit and driving business innovation. But finding the right investors can be a challenge, and new businesses could benefit from the advice of those that are involved in the investment process. Some of Colorado's new business entrepreneurs met with a leading venture capitalist recently to pick up some tips on how to attract that winning investment.