Wednesday April 15, 2020 0 comments
DENVER -- Despite disruption and uncertainty in the public markets, investors at Rockies Venture Club (RVC) continue to make seed stage investments to support a thriving startup community in Colorado.
RVC’s syndicates invested in three companies in March, bringing the total number of investment deals to seven for 2020. Dave Harris, RVC director of operations, said the club expects to make 25 investments by the end of the year.
RVC said investors are turning to startups and venture capital investments that don’t have the volatility of the public markets in recent times. Because the timeline for angel investments can be three to five years or more, the economy should be going strong by the time the club receives returns on today’s investments, RVC said.
“Angel investments are a lot less risky than people think,” said Peter Adams, RVC executive director.
“Angels who invest in groups typically see portfolio returns of 25% or more each year -- and most of that is tax-free due to angel tax incentives.”
RVC said three companies closed deals in the month of March:
Wander + Ivy offers a single-serve wine experience that combines the exquisite taste and terroir of organic wines from sustainable producers with convenient, premium packaging. The company purchases premium bulk wine from award-winning, family-owned vineyards around the world at a discount, ships the wine via flexitanks to a co-packer to bottle, private label, and package, then sells their single-serve wine bottles or varietals gift sets to distributors and consumers at a premium. Wander + Ivy began selling their product in October 2018 and has sold over 28K bottles, generating $100K in revenue with distribution across 4 states.
PageDip allows knowledge workers to easily bring depth to documents, enabling the reader to read (text), watch (video) and explore (interact) all in the same place. The technology turns a linear reading experience into a multidimensional exploration with the added benefit that content is kept current in a centralized and secure location.
ClinOne is a healthcare IT company providing a cloud-based information and document sharing platform that connects pharmaceutical companies to clinical trial sites and patients globally. They are selling directly to Research Sites and Pharma Sponsors, and have been utilized in over 2,500 active clinical trials across 53 countries. The company is now aiming to take advantage of an opportunity in the clinical trial management systems space.
“These companies represent the diversity of great quality startups coming out of Colorado,” said RVC’s Adams.
“They range from consumer goods to business-to-business SaaS software to a platform for managing medical clinical trials. Rockies Venture Club has leveraged the diverse expertise among its 200 investors to be able to source, do due diligence and negotiate deals in such a broad spectrum of business types.“
Over the last 5 years, RVC has invested in a diverse range of companies from a variety of industries. Although RVC’s investment focus is primarily in Colorado, that hasn’t stopped the organization from investing in startups around the country, leveraging strong syndicate partners as part of the Angel Capital Association.