Colorado Attracts VCs
If you want to know where the most innovative businesses are, follow the money—more specifically, the venture capital. It increasingly leads to Colorado.
According to Innosphere Ventures, Colorado is quickly transforming from an emerging venture capital (VC) hub into a VC destination. While approximately 50 percent of VC deal value still originates in the hotspots of San Francisco and New York City, Colorado is beginning to take a significant bite of the remaining pie. In 2022, Colorado VCs originated $5.8 billion in deal value on 557 deals, an all-time high volume. While total deal value was lower than 2021, it demonstrated impressive strength amidst a national and global slowdown and severe economic headwinds in the second half of 2022.
A deeper look at the 2022 data reveals challenges, however. Innosphere notes that the number of micro-VC funds formed in Colorado in 2022 was the lowest since 2008, impacting seed funding for Colorado startups. Also, deal participation from non-traditional investors and corporate VC firms was down in 2022, potentially impacting mega deals and later-stage funding. But Colorado’s VC ecosystem still showed amazing resilience in 2022 and proved that it can perform well in challenging economic conditions.
Innosphere’s report, “2023 Economic Forecast: Boulder and Beyond,” provides a detailed look at Colorado VC activity in 2022. The report touches on deal sizes and types, key verticals, the most active VC investors, and more. It’s fascinating reading for anyone interested in the financial underpinnings of the region. Visit bit.ly/CO-VC to view the report.