Deep-pocketed venture capitalists from across the country will be on the hunt this week for fresh investments – and, in some cases, fresh snow.
The 24th annual Venture Capital in the Rockies Conference is set to open Tuesday in Beaver Creek. The conference is the region’s largest venture-capital event, luring dozens of affluent investors that pump millions of dollars into local companies.
This year, nearly three dozen Colorado companies will get the chance to showcase their wares, ideas and business models to an audience of more than 300 venture and angel investors, chief executives and entrepreneurs.
“The whole point of this conference is to get as many out-of-state venture-capital firms to show up,” said Chris Onan, conference chairman and a principal of Denver-based Appian Ventures. “By having it (in Beaver Creek), we can accomplish that.”
Convening so many venture firms in one place eliminates time and travel expenses of visiting investment meccas such as Silicon Valley or Boston, said Thor Culverhouse, chief executive of Denver-based StrataVia.
“You get the opportunity to present your case, and network like heck, all within 48 hours,” said Culverhouse, whose business-services company will be present at the conference. “It will be critical for us.”
The lure of big-money deals has attracted 33 presenting companies to this year’s conference, culled from more than 100 applicants. There are 22 software or technology companies expected to be present, as well as 11 biotech or life-science firms.
And if history holds true, nearly two-thirds of those firms will land financing within the next year, Onan said. Since 2000, companies have combined to receive more than $3 billion in venture financing after participating in the conference.
More broadly, companies throughout Colorado last year raised $621.8 million from venture capitalists, down 5 percent from 2005, according to a report by Pricewaterhouse Coopers.
Enticing an out-of-state venture-capital firm will be one goal for Rally Software, said Tim Miller, chief executive of the Boulder-based firm.
“If we decide to raise more money, it will be critical to have a large, most likely out-of-state firm take the lead,” said Miller, whose firm raised $8 million after it presented at the conference two years ago.
He noted that as his company grows, it will be helpful to work with a venture firm on the East and West coasts.
“It gives you the access to (a pool of) capital that the local community sometimes can’t support,” Miller said.
With that in mind, conference organizers moved the event from Denver to Beaver Creek about five years ago. Since then, the number of out-of-state venture capitalists attending has mushroomed from 15 to nearly 50.
Onan said some venture capitalists view the conference as part business, part pleasure, adding, “Beaver Creek is where the out-of-state (venture capitalists) want to come.”
Staff writer Will Shanley can be reached at 303-954-1260 or wshanley@denverpost.com.
By The Numbers
33: presenting companies at this year’s Venture Capital in the Rockies Conference, culled from more than 100 applicants
Two-thirds: Proportion of those firms expected to land financing within the next year
$3 billion: Combined amount since 2000 that companies have received in venture financing after participating in the conference
