Metro Denver startup funding still strong, bucking national trends
- A slowdown in investments could lead to fewer startups becoming major employers, or even layoffs.
The big picture: U.S. startup investment fell 23% in 2022's second quarter, to $62.3 billion, according to Pitchbook data released this month.
- That's the steepest drop since 2019, the New York Times reports.
Yes, but: Mile High City startups raised $1.8 billion in Q2, up roughly 185% from the same period last year, the report shows.
By the numbers: The metro area's second quarter delivered 75 deals — 17% lower than the same time period in 2021.
- Of the $1.8 billion raised in Q2 2022, $505 million went to Crusoe Energy Systems, a Denver-based startup that uses excess natural gas from oil and gas companies to power cryptocurrency mining operations.
Details: After Crusoe's hefty haul, these three startups raised the most money across Colorado in Q2:
- Velocity Global: $400 million raises in series B funding
What to watch: Denver's early-stage startups are preparing for a possible drop in valuations and a venture capital downturn.
What they're saying: Young startups face more pressure to prove their efficiency and moneymaking abilities, Harry Hollines, chief strategy officer at the Latino Leadership Institute, recently told the Denver Business Journal.
- "Those who have a line of sight toward profitability will get the VC money for the next 18 or 24 months," Hollines said.
Editor's note: This story has been corrected to say that Guild Education raised $139 million in the company's series F round of funding, not series G.
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