A $200 million investment this year in Colorado Springs software developer Quantum Metric set a record for local venture capital funding during the first quarter, according to a new report.
The deal was the largest ever in Colorado Springs and will put this year’s total in record territory, surpassing the $197 million invested in local startups three years ago, according to the MoneyTree Report from PricewaterhouseCoopers and CB Insights. No local companies landed venture investments last year, the first time local startups have failed to secure such funding in 13 years.
Quantum Metric’s investment, led by venture fund Insight Partners, values the company at more than $1 billion, making it the Colorado Springs area’s first technology “unicorn,” a term for a startup worth at least $1 billion. Quantum Metric employs more than 200 people in Colorado Springs, Denver, Los Angeles, Bethesda, Md., and London to help companies find their best online revenue opportunities.
The venture funding record in Colorado Springs came as such investments in the January-to-March period also set a quarterly record nationwide and hit a 20-year high in Colorado.
In Colorado, venture investments during the first quarter more than tripled the total from the first quarter of 2020 to $1.19 billion, the state’s biggest quarterly total since Colorado startups landed $1.68 billion in the third quarter of 2000. The first quarter total was the fifth highest in the more than 25 years the report has been published, following the final quarter of 1999 and the first three quarters of 2000. The Quantum Metric investment was tied with another $200 million investment in Denver-based DispatchHealth as the state's largest in the first quarter.
Nationwide venture funding in the first quarter more than doubled the total from the same period a year ago to $62.1 billion, breaking the quarterly record of $40.8 billion set in the fourth quarter of 2018 by more than $20 billion. The quarterly total was nearly half of last year’s record annual total of $133.2 billion with deals of more than $100 million making up nearly two-thirds of the first-quarter total. California-based mobile stock trading startup Robinhood landed the most funding in the quarter — $3.4 billion.