Beaver Creek – If previous experience holds true, about two-thirds of the 33 presenting companies at this week’s Venture Capital in the Rockies conference will land some amount of venture financing within the next year.
That’s according to the Rocky Mountain Venture Capital Association, which hosted the conference that ended Thursday.
But even among the most promising companies, only the best are likely to reach the ultimate goal of being acquired or staging an initial public offering.
For example, Fort Collins- based WhiteCell Software was a presenter at last year’s conference but has since essentially shuttered. Another presenter from a year ago, data-storage company Creekpath Systems, was acquired for $10 million in July, a figure far smaller than its investors had hoped.
So why take the risk of investing in a startup that may eventually flame out?
It’s the lure of huge returns generated by investing in a company that scores big, said Brad Feld, a successful venture investor and a managing director at Superior-based Mobius Venture Capital.
“What we can deliver is outsized returns,” Feld said during a panel discussion Tuesday.
Among the home-run presenters from years past are Boulder- based Webroot Software and Dante Group, a Denver software company.
Four companies that appear positioned to receive financing, according to a spot poll of conference attendees:
Thought Equity Motion – Characterized by one venture capitalist as nearly a sure bet, this Denver-based company already operates offices in New York, Los Angeles and Tokyo, among others. Thought Equity Motion, which licenses video and film footage to entertainment and advertising companies, has partnerships with a slew of entities, including HBO, the NCAA and Warren Miller Entertainment. The 65-person company already has raised more than $12 million and plans to seek additional capital to possibly “fund an industry-wide consolidation,” according to company materials.
Arca Discovery – A total of 11 biotechnology companies presented at this year’s conference, with Arca emerging as perhaps the biggest draw. Arca, based in Denver, is developing genetically tailored therapies for heart failure and other cardiovascular diseases. By personalizing treatment based on genetics, Arca hopes to “greatly improve health care by enhancing therapeutic responses, minimize adverse events and reduce the cost of new drug development.”
The 18-person company is based on technology developed by researchers at the University of Colorado.
Infinite Power Solutions – Founded in 2001, this thin-film lithium-battery maker recently moved its headquarters from Golden to Littleton. The company’s patented technology is used in a variety of applications, including within the military, aerospace and medical industries. The 20-person company is seeking capital to help ramp up its manufacturing capabilities, increase sales and continue refining its technology.
Copan Systems – Based in Longmont, Copan is a data-storage company with three products on the market. Its patented platform “helps customers address the growing crises of having adequate power and cooling resources in the data center,” according to a company statement.
The 120-person company has received financing from some big names in the venture world, including Austin Ventures.
