Entrepreneurial fervor pervades local economy
By: Development Research Partners, Inc.
With the fifth-most innovative economy in the country according to the U.S. Department of Commerce, Colorado is recognized as a state that supports research, invention and technological advancement.
The state’s diverse entrepreneurial and startup activity receives support from a talented workforce, startup networks, capital and funding resources and a favorable local atmosphere.
Colorado hosts a vibrant entrepreneurial community for which it has received numerous accolades:
- Denver ranked as the second-best city to launch a startup business (Forbes)
- Colorado ranked as the fifth-most entrepreneurial state in 2013 (Kauffman Foundation)
- Denver ranked as the fifth-best place for millennial-aged entrepreneurs (NerdWallet)
- Denver ranked as the seventh-best city for female entrepreneurs (NerdWallet)
- Denver was the ninth-best city in the nation to start a small business (NerdWallet)
Colorado boasts the second-most highly educated workforce in the country, with 38 percent of the adult population holding a bachelor’s degree or higher. Science, technology, engineering and mathematics (STEM) degree fields represent 10.4 percent of all higher education degrees in Colorado.
The state’s higher education system educates about 400,000 students each year at public and private two-year and four-year institutions and occupational and technical schools. Access to a diverse and well-qualified workforce is a necessary component for the success of startup companies.
There are ample networking organizations and groups in Colorado that provide the state’s entrepreneurs with educational resources, access to mentors, a collaborative environment and connection with fellow entrepreneurs. Galvanize is a technology co-working and office space for digital startups that combines venture capital, flexible workspace and an experimental engineering and business school called gSchool to attract new businesses and foster entrepreneurship.
TechStars is a three-month program that provides up to $18,000 in seed funding for startups and an optional $100,000 convertible debt note, intensive mentorship and idea development, and the chance to present to angel investors and venture capitalists. Other entrepreneurial resources include Startup Colorado, the Advanced Industries Accelerator Grant Program and the Women’s Small Business Accelerator.
In 2013, over 122 startups raised $461 million in funding throughout Colorado, with 118 new startups launched during the year. According to PricewaterhouseCoopers and the National Venture Capital Association, Colorado secured 86 venture capital deals valued at $793 million in 2014, an increase of 71 percent from the prior year. The software sector reported the largest portion of total investment, raising $222 million, while the industrial/energy sector investments increased 17 percent over-the-year to $90.1 million.
SOURCES: BuiltInColorado. “2013 Colorado Startup Report.” https://www.builtincolorado.com/blog/2013-colorado-startup-report • Business Insider. “Most Educated States.” https://www.businessinsider.com/most-educated-states-map-2014-3 • Colorado Department of Higher Education. • Denver Business Journal. “Colorado VC deal value in Q4 is the best since 2001.” https://www.bizjournals.com/denver/blog/finance_etc/2015/01/colorado-vc-deal-value-in-q4-is-thebest-since-2001.html?page=2 • Development Research Partners, www.developmentresearch.net • Forbes. “The Best Places To Launch A Startup In 2014.” www.forbes.com/sites/tompost/2014/03/13/the-best-places-to-launch-a-startup-in-2014 • The Kauffman Foundation. “Kauffman Index of entrepreneurial activity.” https://www.kauffman.org/~/media/kauffman_org/research%20reports%20and%20covers/2014/04/kiea_2014_report.pdf • NerdWallet. “Best Cities for Young Entrepreneurs to Start Small Businesses.” www.nerdwallet.com/blog/cities/economics/best-cities-for-young-entrepreneurs • NerdWallet. “Best Cities for Female Entrepreneurs.” www.nerdwallet.com/blog/entrepreneurship/best-cities-female-entrepreneurs • NerdWallet. “Best Cities to Start a Business.” www.nerdwallet.com/blog/cities/economics/best-cities-start-business • Office of State Planning and Budget, Startup Value Survey
