Financing Programs
Venture Capital
The state of Colorado has provided funding for two venture capital funding models - Certified Capital Companies and the Venture Capital Authority.
Certified Capital Companies (CAPCOs): The state has six Certified Capital Companies that make loans and provide equity to Colorado businesses. The CAPCOs are independently operated and generally make funding decisions. State approval is limited to ensuring that businesses receiving funding meet minimum specified requirements. CAPCOs' minimum and maximum investment may generally range from $100,000 - $3.3 million. To discuss a venture capital request, please contact one of the 6 CAPCOs. For more information, please see: CAPCO Program and the Certified Capital Companies fact sheet .
Venture Capital Authority (VCA): The Venture Capital Authority has selected a fund manager (High Country Venture, LLC) and established a fund (Colorado Fund 1) to provide seed- and early-stage capital to businesses. High Country Ventures is independently operated and generally makes funding decisions. State approval is limited to ensuring that businesses receiving funding meet minimum specified requirements. The minimum and maximum investment size may generally range from $100,000 - $3.375 million; however, High Country Venture has indicated a preference for investments ranging from $500,000 to $2 million. To discuss a venture capital request, please contact High Country Venture. For additional information, please see: Venture Capital Authority and the Venture Capital Authority fact sheet.
Business Loans
The state has 15 Business Loan Funds that make loans to businesses within their specific service area. The loan funds operate primarily in the rural areas of the state. The loan funds are locally driven, with each loan fund having its own local loan review committee and local Board of Directors.
The loan funds make funding decisions. Generally, the maximum loan size is $250,000; however, this maximum loan size may vary based on the availability of capital and other factors. Businesses typically will need to commit to meet certain job creation requirements (or retention in some cases). To discuss a loan request, please contact the Business Loan Fund in your service area. For more information, please see: Business Loan Funds
Infrastructure Assistance/Grants
The state has funds available to assist with constructing public infrastructure needed by a specific business primarily in rural areas of the state. The state provides the funding to an eligible city or county; however, a specific business will need to commit to meet certain job creation requirements (or retention in some cases). The Governor's Financial Review Committee (FRC) reviews and approves all requests for funding. Generally, funding may be provided up to $500,000; however, this amount may vary based on a number of factors. For more information, please see: Infrastructure Assistance fact sheet.
Feasibility Study Grants
The state has funds available to assist with feasibility studies in primarily rural areas of the state. The state provides the funding to an eligible city or county; however, the study must be completed in support of or in conjunction with a specific business as opposed to general economic development studies. The specific business will need to commit to meet certain job creation requirements (or retention in some cases) if the project is determined to be feasible and is implemented. The Governor's Financial Review Committee (FRC) reviews and approves all requests for funding. Generally, funding may be provided up to $20,000 per study; however, this amount may vary based on a number of factors. One competitive cycle is generally held each year. For more information, please see: Feasibility Study Grants
Private Financing
Colorado is a vibrant location for investment. The state has attracted record venture capital and small business loans in recent months. In addition, significant resources are available to companies and small businesses searching for financing options:
Venture capital awards to Colorado companies surged 68% in 2005 to $647.2 million, the best year since 2002 in terms of total award dollars. Comparatively, venture capital funding in the nation increased only 2.0% in 2005, according to the report by Ernst & Young and Venture-One. Colorado award beneficiaries also increased from 50 companies in 2004 to 59 companies in 2005. 2005 beneficiaries included Boulder-based Webroot ($108 million), Longmont-based Cornice ($75 million) and Louisville-based Replidyne ($63 million). The MoneyTree Survey, a different survey by PricewaterhouseCoopers, reported 75 venture capital deals for Colorado in 2005 totaling $612 million, a 48.2% increase over 2004 awards.
The SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) programs represent the largest source of early-stage funding for high-tech start-up companies in the U.S. These congressionally mandated federal programs provide more than $2.2 billion every year to small, for-profit companies to carry out leading-edge, high-risk research and to grow their businesses. Small businesses in Colorado received $88.9 million in Small Business Innovation Research (SBIR) grants in 2004, ranking it among the top ten states.
For links to various private investment companies and other private financing options, please see: