Investors' Circle

While there is currently a fairly vibrant entrepreneurial and investor ecosystem in Colorado, there remains a significant seed stage capital gap. CB Insights reports that in 2013, seed-stage companies received only 3 percent of the private capital investment made into Colorado companies. This need is also evident in Investors’ Circle’s (IC) existing early stage deal flow in Colorado. In the last 18 months, 46 Colorado companies applied to IC for funding; In aggregate, these companies were looking to raise $58.5 million. Our active network in Colorado could only invest in a fraction of these companies. There is clearly a need to increase the capital pool available to and actively investing in seed-stage Colorado companies to address this significant capital gap.

The Investors’ Circle Colorado Seed-Stage Impact Fund (“IC CO Fund”) project will evaluate the feasibility of structuring and raising a Colorado-focused seed-stage fund that leverages the infrastructure of IC’s existing series of pooled funds. The project will 1) Assess fund structure and administrative options to best leverage our existing infrastructure and maximize financial sustainability; 2) Engage with investors to assess demand for a CO-focused seed-stage fund from individuals, family offices, foundations, and other institutions; and 3) Determine the most effective marketing approaches for the targeted investors in and beyond our network.

IC is encouraged by the strong deal flow and growing investor interest we are seeing in Colorado. An IC seed fund product could be instrumental in activating additional capital — from new entrants for whom a fund vehicle is attractive, as well as existing early-stage investors who appreciate the diversification opportunity — to acclerate companies that are addressing social or environmental challenges with their innovative business models. This work will also support the further development of Colorado’s emerging impact cluster, and serve as a pilot for a replicable strategy that IC could roll out in other markets.