Metro Denver startup funding still strong, bucking national trends

Assist for the Denver-Aurora tech scene is staying sturdy to this point this yr, regardless of a nationwide hunch in enterprise capital, new information from Pitchbook exhibits.

Why it issues: The tech trade is a significant driver of Colorado’s financial system, and it might act as a key cushion amid a probable U.S. recession.

• A slowdown in investments might result in fewer startups changing into main employers, and even layoffs.

The massive image: U.S. startup funding fell 23% in 2022’s second quarter, to $62.3 billion, in line with Pitchbook information launched this month.

• That is the steepest drop since 2019, the New York Occasions reviews.

Sure, however: Mile Excessive Metropolis startups raised $1.8 billion in Q2, up roughly 185% from the identical interval final yr, the report exhibits.

By the numbers: The metro space’s second quarter delivered 75 offers — 17% decrease than the identical time interval in 2021.

• Of the $1.8 billion raised in Q2 2022, $505 million went to Crusoe Vitality Programs, a Denver-based startup that makes use of extra pure fuel from oil and fuel firms to energy cryptocurrency mining operations.

Particulars: After Crusoe’s hefty haul, these three startups raised essentially the most cash throughout Colorado in Q2:

What to observe: Denver’s early-stage startups are getting ready for a attainable drop in valuations and a enterprise capital downturn.

What they’re saying: Younger startups face extra stress to show their effectivity and moneymaking talents, Harry Hollines, chief technique officer on the Latino Management Institute, not too long ago instructed the Denver Enterprise Journal.

• “Those that have a line of sight towards profitability will get the VC cash for the following 18 or 24 months,” Hollines mentioned.