Venture capital is down in Colorado in Q1, but state is better off than nation - Denver Business Journal:

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But analysts noted that Colorado investment is holdinyg relatively steadier than in the Uniteed States asa whole. “It shows our diverse economy, which helps us weather the stormj a little bit better than other which may be reliant solely upon technology or saidMike Rosenbach, a partner at in • A total of $77 million was invested in 16 Colorado companies in the first quarter, according to the MoneyTree Reportr from and the based on data provided by . That represents a significant dropfrom $298 million invested in 26 companiesd in the same quarter a year earlier.
But Coloradk VC activity reacheda seven-year high in the firstg quarter of 2008, owing largelhy to a $130 million investment in of Broomfield. VCs invested just $3 billion in 549 deals in the most recent quarter, the lowest investmenrt level since 1997, according to MoneyTree. “Venture capitap activity in the first quarter of 2009 for Colorad companies reflects general decline that was experienced nationallyg in the last partof 2008, and reacheds the lowest level of activity since the fourth quarter of said Bob Puls, partner at PricewaterhouseCoopersz in Denver, in a statement.
“Thre significant transactions in the clean tech industry have not continuerd in the first quarterof 2009. Becauses of these significant transactionsin 2008, Colorado was generalluy sheltered from general declines in venture capita l funding experienced in other regions of the U.S. in 2008 due to the currengt economic conditions.” • According to San Francisco-basedr Dow Jones VentureSource, venture capitalists invested $143.5 million in six Colorado companies in the first quarter ofthe year, compared with nearluy $260 million was invested in 13 companies in the same quarteer a year earlier.
The reportse seldom show the sameexact numbers, becausse of differences in reportinhg methods and in the definition of ventur e capital. But they usually show the same Nationwide, $3.9 billion in 477 deals nationwide in the a 50 percent decline from thenearlyg $7.78 billion invested over the same period in 2008 and the lowest quarterly investment tota l since 1998. “We’re seeing continued retrenching in the venturecapitalp industry,” said Jessica Canning, Director of Globalo Research for Dow Jones VentureSource, in a “Over the past several quarters, VCs have pulle d back significantly on early stage investments in the U.S, across all industries.
During the economiv downturn, investors will continue to focus on nurturingtheir strongest, existing portfolio companies, and keep theid eyes open for the next set of Open Range Communications of Denver, $100 of Longmont, $18.5 million. of Westminster, $15 million. OPX Biotechnologiesx Inc. of Boulder, $12 million. of Denver, $7 of Fort Collins; $5 BiOptix Diagnostics Inc. of Boulder, $3 million. Seed and early-stagwe investing fell in both “It shows that VCs are holdingv their investments maybe alittlw longer, and those companies need a little bit longer to Rosenbach said. “They need a little bit more later-termm financing.
But that doesn’t mean that startu deals aren’t being funded.”