Five Key Deals Boost Colorado Venture Investment in Q2
Wednesday, July 20, 2011
Posted by: Su Hawk
MoneyTree: 5 key deals boost Colorado venture investment in Q2
Denver Business Journal - by Heather Draper
Date: Tuesday, July 19, 2011, 10:01pm MDT
Venture capital investment in Colorado rose significantly in the second quarter, largely driven by five deals valued at more than $20 million each, according to the quarterly MoneyTree report developed by PricewaterhouseCoopers LLP and the National Venture Capital Association.
Venture capitalists invested $203.8 million in Colorado in the second quarter, up from $63.1 million in the first quarter and $79.3 million in the second quarter of 2010, according to the report released Wednesday.
"Currently, 2011’s venture capital activity in Colorado is set to outpace investment activity in both 2009 and 2010,” Keith Parsons, a partner in PwC’s Denver office, said in a statement.
But he cautioned that the five large deals, comprising about 76 percent of the VC activity in the quarter, may have skewed the results.
"It is still too early to determine if deals of this magnitude are one-off events or a positive sign for our market,” Parsons said.
Quarterly investment totals in Colorado have not consistently exceeded $200 million since 2008, he said. Prior to 2008, the last time average quarterly investment activity exceeded $200 million was in 2001.
From an industry perspective, the industrial/energy, software and biotechnology sectors remain the top recipients of funding in Colorado in the second quarter. The industrial/energy industry received about 41 percent of the dollars invested in the quarter, with software and biotechnology at 23 percent and 18 percent, respectively.
Geographically, investment dollars were split fairly evenly between metro Denver and Boulder.
"The prior quarter results indicated investment dollars were focused primarily in the Boulder and Louisville areas,” Parsons said. "This change [with more in Denver] is likely driven by the increased investment in the industrial/energy sector.”
Noteworthy Q2 Colorado deals
Inflection Energy LLC - Denver; industrial/energy; natural gas exploration and production company; $40 million.
Proterra, Inc. - Golden; industrial/energy; manufactures electric drive systems; $37.7 million.
OPX Biotechnologies Inc. - Boulder; biotechnology; manufactures renewable bio-based chemicals; $36.5 million.
Ping Identity Corp. - Denver; software; provides secure Internet single sign-on software and on-demand services; $21 million.
Rally Software Development Corp. - Boulder; software; develops application lifecycle management solutions; $20 million.
eWise Group Inc. - Denver; IT services; provides online payment and financial management solutions; $14 million.