First-quarter venture capital to Colorado companies has increased to its highest levels since the end of 2002, according to an Ernst & Young/VentureOne survey to be released today.
Colorado companies received $169 million in venture money in 2005’s first three months, an increase of 68 percent compared to the same period in 2004.
The increase largely was fueled by $108 million secured by Boulder’s Webroot Software Inc., whose products battle spyware that cybercriminals use to secretly transmit bank account numbers and other personal information. Three Silicon Valley venture firms financed the January deal, the largest of any in the nation this quarter.
Nationwide, 474 financing deals totaling $4.6 billion were reported. That’s down from $5.4 billion committed in 2004’s first quarter.
The information technology sector received the most money of any industry, $2.7 billion. Health care companies received the next most, $1.2 billion, followed by retail and consumer businesses at $530 million.
The Ernst & Young survey looked at money committed rather than money received.
The infusion of additional capital is a positive step for the state’s economy, one expert said.
“There’s a real solid buzz about Colorado,” said Tom Clark, executive vice president of the Metro Denver Economic Development Corp.
“Investors and venture capitalists tend to be followers of what’s the next best place. Maybe we’ll be the next best place again.”
Staff writer Will Shanley can be reached at 303-820-1473 or wshanley@denverpost.com.
