Colorado is home to a thriving startup ecosystem, with numerous angel investors and venture capital firms actively supporting innovative businesses.
Many of these investors are based in Denver, with some notable firms including Foundry Group, which has invested in companies like Zynga and Twitter.
Foundry Group's managing director, Brad Feld, has been a prominent figure in the Colorado startup scene, writing extensively on the topic of entrepreneurship and venture capital.
Some notable angel investors in Colorado include Seth Levine, who has invested in companies like Fitbit and Groupon, and Jason Mendelson, who has invested in companies like LivingSocial and Zynga.
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Top Venture Firms in Colorado
Colorado is home to a thriving venture capital scene, with many firms focused on supporting startups in the region. Range Ventures is an early stage venture capital fund in Denver that commits early to its portfolio companies, often providing the first institutional check.
Foundry Group is another prominent venture capital firm in Colorado, with a focus on making investments in early-stage information technology, Internet, and software startups. They're comfortable making small seed investments, as little as $250,000 – $500,000, to help promising entrepreneurs get their ideas off the ground.
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Stout Street Capital is a Denver-based venture capital firm that focuses on startups that are already in the growing stage and need some capital to get a boost. They have funded a total of 65 startups and have a network of investors that looks for startups with the potential to generate profits and have successful exits.
Here are some key facts about these top venture firms in Colorado:
Altira Group
Altira Group is a valued partner for entrepreneurs and portfolio companies alike, thanks to their straightforward and collaborative investment team style. They've earned a reputation for going the extra mile to help companies grow.
Their industry partners, domain expertise, and global network of subject matter experts make them a unique asset in the venture capital world. Altira's rigorous due-diligence requirements ensure that only the most promising ideas make the cut.
Once they've invested, Altira rolls up their sleeves and leverages their expertise and resources to help translate innovative ideas into reality. This hands-on approach sets them apart from other venture capital firms.
Top Peak Ventures
Top Peak Ventures is a venture capital firm that knows the importance of funding and mentorship for startups. They offer a platform for entrepreneurial students to submit their ideas and turn them into a business.
TopPeak Ventures focuses on launching successful companies, which they've done with decades of experience. They've created a space for motivated students to submit their ideas and turn them into a business.
TopPeak Ventures has a unique approach to funding startups, which sets them apart from other venture capital firms. They understand that college is a time when some of the best ideas are born, and they're committed to supporting those ideas.
If you're a student with a business idea, TopPeak Ventures is definitely worth considering. They offer a space for you to submit your idea and turn it into a business.
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Investor Networks and Groups
In Colorado, there are several investor networks and groups that can connect entrepreneurs with angel investors. Foundry Group, a venture capital firm, is located in Boulder, CO, and invests in companies across North America.
Foundry Group is comfortable making small seed investments of $250,000 to $500,000 to help entrepreneurs get their ideas off the ground. They also participate in larger Series A venture financing rounds.
Rockies Venture Club, founded in 1985, is an investment group that connects entrepreneurs and investors in Denver, Colorado. They offer classes and workshops to educate investors and entrepreneurs on angel investing and venture capital.
To secure a warm introduction to angel investors, try participating in startup networks like the Telluride Venture Network, which offers services to support new and growing businesses in Southwest Colorado. Building genuine relationships and demonstrating your passion for your venture can also open doors for warm introductions.
Here are a few key investor networks and groups in Colorado:
- Foundry Group (Boulder, CO)
- Telluride Venture Network (Telluride, CO)
- Rockies Venture Club (Denver, CO)
iSherpa
iSherpa invests in seed-stage and early-stage companies, providing follow-on financing throughout the company's life cycle. Their methodology combines traditional venture capital resources with an innovative process and metrics-focused approach to help build sustainable technology businesses.
iSherpa's investment strategy is designed to support companies from the early stages of growth through to maturity.
Blue Iron IP
Blue Iron IP offers alternative financing for startups and small businesses, focusing on investments in intellectual property.
They provide financing for intellectual property, freeing up cash and offering professional portfolio management.
Typical investments range from $50-200K, but can be higher in some cases.
Rockies Venture Club
Rockies Venture Club is an investment group based in Denver, Colorado, founded in 1985. They have a small team, with a headcount of 1-10.
Their website is rockiesventureclub.org, and they have a strong online presence on LinkedIn.
Rockies Venture Club provides a range of services, including a curriculum of classes and workshops to educate investors and entrepreneurs on angel investing and venture capital.
Telluride Venture Network
Telluride Venture Network is an award-winning entrepreneurial ecosystem launched in 2013. It's located in Telluride, Colorado, and has a headcount of 1-10 people. You can find them online at tellurideventurenetwork.com and connect with them on LinkedIn.
They offer services that are typically unavailable in rural communities and support new, innovative, and growing businesses in Southwest Colorado. This is a great resource for entrepreneurs looking to start or grow a business in the area.
Here are some key facts about Telluride Venture Network:
By supporting new and growing businesses, Telluride Venture Network helps to foster a thriving entrepreneurial ecosystem in Southwest Colorado.
Fundraising and Evaluation
Angel investors in Colorado evaluate startups based on several key factors, including market size and unique value proposition.
Founders need to be prepared to speak the language of finance when engaging with investors. This means understanding and being able to explain financial concepts, such as CAC (customer acquisition cost), in a way that resonates with investors.
Learning the language of finance is crucial for fundraising and day-to-day business operations. Founders should create a financial model and track key business metrics early on to make better operational decisions and prepare for investor meetings.
What Criteria Do Investors Use to Evaluate Startups?
Investors evaluate startups based on several key factors, including market size and revenue potential. They want to know if your business has a unique value proposition that sets it apart from the competition.
Angel investors consider the traction achieved by a startup, which means they want to see if you've made progress in your business. They also want to see alignment with their investment thesis, which is essentially their investment strategy.
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Founders need to be able to speak the language of finance, including terms like CAC, which stands for customer acquisition cost. This is a crucial skill for fundraising and day-to-day business operations.
Learning the language of finance is essential for creating a financial model and tracking key business metrics. This will help you make better operational decisions and be more attractive to investors.
Build Relationships Before Fundraising
Building relationships with investors before you start fundraising is crucial, especially for rural entrepreneurs who may not have the same access to investor networks as urban founders.
Start building relationships 12 months before you actually need capital, as advised by Jeff. This timeline allows you to create an investor pipeline and generate momentum before you officially launch your fundraising efforts.
Sending monthly investor updates, even if you're not actively raising funds, can help you stay top-of-mind and build trust with potential investors.
These updates can be a powerful tool for maintaining investor interest, especially for rural entrepreneurs who may not have the same face-to-face opportunities as urban founders.
Denver
In Denver, you'll find the Denver Angels, an investment firm that's been around since 2016. They're based in Denver, Colorado, and have a small team of 1-10 people.
Their focus is on providing capital and support to the fastest-growing companies in Colorado. Denver Angels invests between $500,000 to $2,500,000 per company.
They concentrate on 8 to 12 outstanding opportunities each year, making them a selective and discerning investment firm.
Related reading: Angel Investment Opportunities
Top Investors in Colorado
Top investors in Colorado have a strong focus on supporting entrepreneurial students, with TopPeak Ventures creating a space for students to submit their ideas and turn them into a business.
TopPeak Ventures has decades of experience launching successful companies, and they know that funding and mentorship are key aspects for success.
TopPeak Ventures encourages entrepreneurial and motivated students to submit their business ideas and work their passion, live their purpose.
High Altitude
High Altitude Investors are an organization of accredited investors who seek private investment opportunities in Southern Colorado and the Front Range.
Membership with High Altitude Investors provides access to special educational programming, entrepreneur presentation forums, and social time to meet other accredited investors.
Members are not required to invest in any deal presented in affiliation with HAI, allowing them to choose their own investment opportunities.
High Altitude Investors is an organization that brings together like-minded individuals who are seeking private investment opportunities in Colorado.
Worth a look: Angel Investment Group
Top Investors in Colorado
Top Investors in Colorado have a special interest in supporting entrepreneurial students, as seen with TopPeak Ventures, which provides funding and mentorship to help students turn their ideas into successful businesses.
TopPeak Ventures knows that college is a time when some of the best ideas are born, and they offer a space for motivated students to submit their ideas and turn them into a business.
TopPeak Ventures has decades of experience launching successful companies, which is a testament to the effectiveness of their approach to supporting student entrepreneurs.
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TopPeak Ventures' mission is to help students work their passion and live their purpose, which is a great reminder that business can be a source of fulfillment and purpose.
TopPeak Ventures encourages students to submit their business ideas today, and with their support, many students have been able to turn their ideas into successful companies.
Frequently Asked Questions
How much do you pay an angel investor?
Angel investors typically take a 10-40% equity stake in your business in exchange for their investment. The exact percentage depends on your business's growth potential and your willingness to give up ownership.
What percentage do angel investors want?
Angel investors typically seek 10% to 50% equity in exchange for funding, which can impact business owners' control over their company.
How do I find angel investors?
Connect with angel investors through networking events, social media, and local startup ecosystems, and consider joining angel groups or incubators to expand your reach
Sources
- https://www.builtincolorado.com/companies/type/angel-vcfirm-companies
- https://angelmatch.medium.com/top-angel-investors-in-colorado-2245eece4821
- https://www.inven.ai/company-lists/top-24-venture-capital-firms-in-colorado
- https://www.startupinvestorsdirectory.com/united-states/colorado
- https://startupcolorado.org/3-essential-tips-for-startup-fundraising-from-angel-investor-jeff-erickson/
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