Rockies Venture Fund primary investment considerations include a solid and experienced team, a disruptive product, and a process or service with “unfair competitive advantage”.
The product must exist in a large potential market without significant barriers to entry, as well as have a clear path to an exit with the potential of yielding an average of 10 times the fund’s investment within five years.
Including these considerations, the fund also maintains a investment philosophy with the following principles:
As a state, Colorado is rapidly growing, while already housing existing industry giants such as IBM, Oracle, and Lockheed Martin. Colorado also has four of the top cities for entrepreneurial activity in the United States. Diminishing venture capital resources and a high supply of deals create an ideal environment for which Rockies Venture Fund can focus its investments.
Early, Growth Stage Companies
Rockies Venture Club’s will invest in seed and early stage companies that have achieved significant traction in developing their technology or building a market presence. Companies should be anticipating revenues within six months, if not already there. The most common use of funds invested in portfolio companies will be to finalize technology and to take the product to market within a short period of time.
The fund will invest along with angels or other venture funds in a syndicate, will only invest when two or more angels commit to investing with at least the minimum required amount. The fund “leads” in deal selection and due diligence, utilizing its special access to Venture Capital Analytics due diligence and the management team’s decision making expertise.
Rockies venture Fund will focus on companies that have early exit potential, that is the ability to exit in 3 years or less. The fund will be focused on helping companies to form an early exit strategy that keeps them focused on creating value both for their customer, but also for their ultimate acquirer. By focusing on early exits, not only will the fund be able to reinvest, but will also be able to create early value for limited partners.
Rockies Venture Fund is “horizontal” and not dedicated to any single market. Typical investments include these main areas: technology, healthcare/digital healthcare, life sciences, and consumer goods. However the fund will not consider investments in oil and gas exploration, foreign companies, real-estate, marijuana cultivation and/or sales.