Program Summary

The Venture Capital Authority (VCA) collaborates with professional venture capital fund managers to provide equity capital to new and expanding businesses, promoting job creation and economic growth in Colorado.

The Colorado VCA program makes limited partner investments in a range of venture capital funds with expertise in seed and early-stage business investments. Up to six venture capital funds are anticipated to be selected for participation through a competitive process, with the State Small Business Credit Initiative (SSBCI) investment participation ranging from 25% to 50% of each fund’s total size. Historically, the program has supported startups with investment rounds from $50,000 to $3 million and ensures that a portion of the capital is directed towards distressed urban and rural communities in Colorado.

Learn More About The Venture Capital Authority Program

  • Seed and early-stage startups with high-growth potential

  • Each partner fund identifies different strategic focuses

Equity investment

The Venture Capital Authority partners with funds that invest in seed and early-stage Colorado businesses. The objective is to support entrepreneurship, economic diversification, and quality jobs. The business needs to:

  • Be headquartered in and have principal business operations in Colorado
  • Commit to staying in Colorado for at least five years after an initial fund investment
  • Be seeking its first venture capital investment
  • Meet the Small Business Administrations criteria for a small business
  • Have strong growth potential

  • Historically, from $50,000 to $3.25 million per investment

Visit one of these fund manager websites to apply:

Avesta Colorado Fund invests in Colorado-based seed-stage founders driving decarbonization and economic inclusion for a more sustainable and prosperous future. 

Colorado ONE Fund targets early-stage investment into small disruptive companies developing innovative critical technologies in aerospace, defense, and homeland security, with a focus on underserved companies.

DEMI Fund is focused on investing in startups and scale-ups owned and/or operated by business leaders of color. The fund is focused on scalable early to mid-staged businesses as well as transitioning succession companies in information technology, advanced manufacturing, food and agribusiness, biosciences, health/beauty/wellness, tourism, and aerospace industries. This fund will focus on investing in early-stage businesses that have the potential to grow in urban enterprise zones.

FirstMile Venture Fund is focused on founder-driven businesses and seed-stage investments. This fund invests in Colorado technology businesses.

Greater Colorado Venture Fund invests in early-stage startups in rural Colorado. This fund’s mission is to inspire innovation in places formerly overlooked by established venture capital firms.

FAQ’s

Venture capital (VC) is a useful and powerful financing method, but it’s not well-suited for every business. VC is geared toward companies that are designed to grow quickly and where the owners are interested in having their business acquired, merged, or go public. The business is often based on a disruptive technology and may have high startup costs for which the founder is unable to bootstrap or obtain debt financing. VC financed companies share ownership of the company. VCs often take a board seat and will help the company make connections and grow rapidly.