Wednesday 29 January, 2014
There’s good news from the state capital for Colorado entrepreneurs – the State of Colorado is putting together a venture capital fund for startups that should be available by summer 2013. The state is planning to raise $150 million by the fund’s unveiling, and it’s already most of the way there.
The new venture capital fund was announced at the Venture Capital in the Rockies annual winter summit in Beaver Creek by governor John Hickenlooper in a private meeting with the press.
Putting Together a Venture Capital Fund
The state government has partnered with local CEOs, mostly from VCs and tech companies, to put the fund together. As of March 2013, $100 million has already reportedly been raised. Contributors so far include local entrepreneurs like TeleTech founder Ken Tuchman.
The State of Colorado will also contribute as a limited partner, investing small amounts of the state’s retirement pension, the Public Employees Retirement Association (PERA).
In addition to funding already secured, the legal structure of the fund is fully formed. It’s expected to be available this summer.
A Boost for Venture Capital in Colorado
For a state with such a thriving business scene, Colorado is sorely lacking in venture capital funding. Hickenlooper and business leaders see this as a major barrier to encouraging more entrepreneurship in the state. With all the incentives, tax breaks and other help offered to business from the governments of both Colorado and Denver, this fund will round out everything a business needs to get started.
The fund will be available only to Colorado companies. However, it’s not just for start-ups getting started. It’s been reported that the fund will be available for businesses from early to late stages in their development.
The overall goal is to encourage entrepreneurship and stimulate the economy by providing just what businesses need to succeed – money.
What This Means for Your Business
Denver has always been a pro-business community and this new venture capital fund shows that it will continue to be. For businesses considering Denver or other parts of the state for their location, this makes it even more attractive. You can secure the funds you need to start your Denver business and enjoy the city’s favorable economic conditions.
But the venture capital fund isn’t just for businesses in Colorado. In many ways, Colorado, and Denver in particular, has always been a business leader. Other states have sent delegations to the city of Denver to see how it integrates its industries for the betterment of all. With this new venture capital fund, the state hopes to once again act as a role model for other states. Hopefully, this will inspire other state governments to provide more funding for local entrepreneurs.