Friday October 11, 2019 0 comments
DENVER -- Cleantech companies in the Rocky Mountains now have a new funding advocate in the newly-formed Colorado Cleantech Angels investing group.
Rockies Venture Club, in partnership with the Colorado Cleantech Industries Association (CCIA), and Traxion Accelerator, with help from National Renewable Energy Labs (NREL), Rocky Mountain Institute (RMI), and others, have formed an Angel Investing Group to invest specifically in cleantech startups.
According to RVC, while some early cleantech companies struggle to find a market for their solutions, current cleantech companies have become very sophisticated and can now present solutions that provide a high return of up to 10 times on investment for their clients, having overcome much of the technology risks that early cleantech companies experience.
“Cleantech” can mean many things, but generally refers to technologies that improve clean energy use, clean water, advanced materials and recycling, smart grids, solar, wind, transportation, battery systems, biofuels, biomass, air, and more.
These technologies have become more active in recent years now that wind and solar, when partnered with municipal level power management and storage systems, can produce energy at a lower cost per kilowatt-hour than coal and gas plants.
RVC said the partnership solves a huge problem for cleantech startups that struggle to get early-stage funding. Most cleantech investors wait until late-stage institutional investment opportunities arise, leaving startups stranded.
RVC said it specializes in leading early-stage deals, conducting due diligence, negotiating deals, and building investment syndicates big enough to launch early-stage companies.
Recently, the Colorado Office of Economic Development and International Trade (OEDIT) awarded a grant to RVC to help mobilize capital within the state of Colorado. The grant, called the Colorado Capital Mobilization Grant, supports the formation of new angel groups and venture capital funds that are focused on specific vertical markets such as cleantech.
As a result of the grant funding, RVC was able to hire Paul Foley, an entrepreneur-turned-investor who will be spearheading the development of new angel groups that support Colorado’s Advanced Industries.
The partnership is unique and could set a model for economic development relationships with angel groups nationwide, RVC said.
“The establishment of a cleantech angel group is a game-changer for the state of Colorado, for cleantech startups and for our environment worldwide,” said Peter Adams, RVC executive director.
The partnership between OEDIT, the CCIA, Traxion, and RVC furthers the mission of the CCIA by funding new cleantech startups, the mission of OEDIT by creating jobs, and the mission of RVC by effectively matching investors and entrepreneurs to create economic development throughout the region.
The first meeting of the Cleantech Angels will be in Golden on Oct. 17. Accredited Investors (individuals with a net worth of $1 million or more excluding their primary residence), are welcome to attend by registering at https://rockiesventureclub.wildapricot.org/event-3499866
The Colorado Cleantech Angels group is supported by RVC’s statewide infrastructure. It also supports the new Rockies Impact Fund (RIF), which is now open to investors who want to support social and environmental companies who are focused on producing market-rate returns with tax-advantaged deal structures.
For more information about RIF, contact [email protected]