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Colorado Springs startups in the third quarter added to the already record amount of venture capital invested this year in local companies, according to a report from Pitchbook and the National Venture Capital Association.

Motion Intelligence, a Colorado Springs company that has developed a mobile application to reduce distracted driving, landed $4 million in venture funding; meanwhile, Colorado Springs restaurant and entertainment venue operator B Entertainment raised $360,000 in angel funding and ForceNow, a Monument cybersecurity provider, landed $265,000 in angel funding. That funding is an early investment made by wealthy individuals to help companies grow beyond a product or service idea.

Colorado Springs venture firm adds $21 million for early startups

The $4.63 million raised by the three companies is up from the $3.7 million raised by two companies in the second quarter — and about six times the $750,000 raised during the third quarter of 2020. Local startups have raised a record $208.7 million in the first three quarters of the year. That's 28 times the $7.44 million raised during the same period last year. However, nearly all of this year's total comes from a single investment in the first quarter — a $200 million venture investment in Colorado Springs software developer Quantum Metric.

Venture capital funding surges to first-half records in Colorado, U.S.

Venture funding statewide slowed in the third quarter after surging in the first two quarters — the $582 million invested in 87 Colorado startups in the third quarter was down 43.7% from the third quarter of 2020. Venture funds, though, invested a record $3.22 billion in Colorado startups during the first half of the year. As a result, venture funding in the first three quarters of the year more than doubled the total from the same period last year to $3.8 billion.

The state's two largest deals were $159 million invested in Louisville-based cloud computing services company JumpCloud and $52 million invested in Boulder-based lawn care company Sunday. All but $24 million of the statewide total went to companies in the Boulder and Denver areas, with four companies in Fort Collins landing $12.9 million and three companies in Greeley landing nearly $7 million.

Venture capital funding sets record for Colorado Springs, nation

Nationwide, startups raised a record $82.8 billion in the third quarter, up 73.2% from the same quarter last year and the third consecutive record quarterly total. The $238.7 billion in venture funding invested in the first three quarters of the year is already a record annual total with three months left in the year. The two largest deals in the quarter were $2.5 billion invested in Irvine, Calif., electric vehicle manufacturer Rivian and $2 billion in San Francisco clean energy investment firm Generate Capital.

The report by Pitchbook, a Seattle-based research unit of Morningstar, and the National Venture Capital Association, is different from other reports tracking venture capital activity because it also includes angel investments from wealthy individuals and "seed" investments from groups that back startups before they receive money from venture capital funds. PricewaterhouseCoopers no longer produces its quarterly MoneyTree Report (which included data on Colorado Springs) on venture capital funding.

Venture capital funding bypasses Colorado Springs in 2020

Contact Wayne Heilman 636-0234



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