Venture capitalists have more faith in Rocky Mountain regional investments than elsewhere in the U.S., according to a recent survey.
A poll by accounting firm KPMG shows 71 percent of respondents expect that investments this year in Rocky Mountain startup companies will be equal to or greater than in 2008.
By contrast, the nationwide venture investment outlook is viewed as dismal, with 89 percent saying they expect funding levels to drop significantly or moderately compared with last year.
Participants expressed a strong preference for making investments in “clean tech” companies compared with other industries. Clean tech includes alternative energy and biotechnology.
“The Rocky Mountain venture community certainly sees clean tech as a focus, reflecting the region’s demonstrated leadership in this arena,” said Denver-based KPMG partner Mike Bearup. “Colorado and New Mexico have very strong governmental research and institutional presence in this area.”
The nonscientific survey was conducted this month during the Venture Capital in the Rockies event in Beaver Creek. About 90 investment firms, representing 40 percent of conference attendees, participated in the poll.
Bearup acknowledged that some of the survey participants are focused on investing in Rocky Mountain-region startup companies and that the poll results partly reflect that regional preference.
Survey respondents said the economic recession is hurting both the financial performance of startup companies and the ability to attract venture capital from investors.
About three-quarters said investment activity will begin to recover next year; 24 percent predicted a rebound later this year.
Steve Raabe: 303-954-1948 or sraabe@denverpost.com
