The state’s replacement for a controversial program designed to help Colorado startup companies will begin investing up to $25 million as soon as this summer.
The Colorado Venture Capital Authority, Colorado’s first state-backed investment fund, has sealed a deal with High Country Venture LLC, an affiliate of Boulder private investment company Tango, to manage the fund.
The authority was created by the legislature last year to replace the Certified Capital Company program, known as CAPCO, which was designed to spur economic growth. But critics – including Gov. Bill Owens – called the program expensive and inefficient.
The authority will use $50 million in tax credits initially designated for CAPCO to provide seed and early-stage funding for small businesses.
“We’re definitely trying to help drive the Colorado economy,” said Mike Imhoff, chairman of the authority’s board of directors, which selected High Country last December. “There is definitely an expectation that this does create jobs.”
The $25 million could fund 10 to 20 companies, said Mark Lupa, a principal at High Country Venture, which also could manage the second $25 million fund.
Broken down by industry, 40 percent of the money will be devoted to software and technology; 40 percent will go to emerging growth companies, such as biomedical and agribusiness; and 20 percent will go to other categories.
The program is required to invest 25 percent of the fund in economically disadvantaged rural zones and 25 percent in distressed urban communities. The other half can be invested in qualified businesses statewide.
Along with Lupa, High Country Venture is led by Chris Marks and Jerome Contro. All three are also partners at Tango, which has invested in more than a dozen companies, including Service Magic and IZZE Beverage Co., in the past seven years.
The Colorado Office of Economic Development and International Trade provides staffing support to the Colorado Venture Capital Authority.
Staff writer Julie Dunn can be reached at 303-820-1592 or jdunn@denverpost.com.
More online: Colorado Venture Capital Authority eligibility requirements. .
