by Beth Potter, Boulder County Business Report
April 29, 2011 --
April 29, 2011 --
BOULDER — Venture capital investments in Colorado were down in the first quarter, but companies in the Boulder Valley garnered about 85 percent of the total, according to Bob Puls, a partner in PricewaterhouseCoopers' office in Denver.
LogRhythm Inc. in Boulder received $10 million — the largest deal of the quarter. LogRhythm develops software to analyze computer activity logs.
Twelve companies in Boulder and Broomfield counties received $53,939,800 of the state's total of $63,134,000 million for the quarter. There were only three deals in the state outside the two counties, according to The MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association based on data from Thomson Reuters.
That first-quarter total was lower than the $67.9 million invested in the first quarter of 2010 and just 25 percent or so of the $253.7 million in venture capital doled out in fourth-quarter 2010.
“Last quarter was a big, big quarter. This is a good quarter, but down a little bit,” Puls said. “From my perspective, it's not overly negative.”
Quarterly investment totals in Colorado have remained in the $60 million to $90 million range for the last four quarters or so. The broad range of investments to companies in the first quarter seems to indicate that investors are carefully examining startups and their chances of success before giving them funds, Puls said.
“It's nice to see them spread it around a little bit. It's reflective of things picking up a little bit,” Puls said.
From an industry perspective, the software, biotechnology and industrial/energy sectors have again emerged as the top recipients of funding from both the national and Colorado perspective in first-quarter 2011.
Locally, investment activity within these three leading industries occurred predominantly in Boulder and the surrounding areas.
“Eight out of nine transactions that occurred within the software, biotechnology and industrial/energy industries happened at Boulder and Louisville-based companies supporting that the Boulder corridor is still a hotbed of investment in these innovation-driven sectors,” Puls said.
In Colorado, the software industry received approximately 39 percent of dollars invested in the first quarter, industrial/energy received 16 percent, biotechnology and computers and peripherals each received 13 percent of total quarterly funding.
LogRhythm Inc. in Boulder received $10 million — the largest deal of the quarter. LogRhythm develops software to analyze computer activity logs.
Twelve companies in Boulder and Broomfield counties received $53,939,800 of the state's total of $63,134,000 million for the quarter. There were only three deals in the state outside the two counties, according to The MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association based on data from Thomson Reuters.
That first-quarter total was lower than the $67.9 million invested in the first quarter of 2010 and just 25 percent or so of the $253.7 million in venture capital doled out in fourth-quarter 2010.
“Last quarter was a big, big quarter. This is a good quarter, but down a little bit,” Puls said. “From my perspective, it's not overly negative.”
Quarterly investment totals in Colorado have remained in the $60 million to $90 million range for the last four quarters or so. The broad range of investments to companies in the first quarter seems to indicate that investors are carefully examining startups and their chances of success before giving them funds, Puls said.
“It's nice to see them spread it around a little bit. It's reflective of things picking up a little bit,” Puls said.
From an industry perspective, the software, biotechnology and industrial/energy sectors have again emerged as the top recipients of funding from both the national and Colorado perspective in first-quarter 2011.
Locally, investment activity within these three leading industries occurred predominantly in Boulder and the surrounding areas.
“Eight out of nine transactions that occurred within the software, biotechnology and industrial/energy industries happened at Boulder and Louisville-based companies supporting that the Boulder corridor is still a hotbed of investment in these innovation-driven sectors,” Puls said.
In Colorado, the software industry received approximately 39 percent of dollars invested in the first quarter, industrial/energy received 16 percent, biotechnology and computers and peripherals each received 13 percent of total quarterly funding.
