Venture capital activity in the U.S. continued its downward trend during the first few months of 2023, driven by inflation rates, bank failures and global instability, according to data released Thursday from PitchBook.
Reflecting the nationwide downturn, Colorado startups raised less in Q1 than during the last quarter of 2022, going from $1.24 billion raised to $1.07 billion.
The state, again reflecting what's happening nationally, also experienced a drop in new VC funds being created. Two funds raised $73 million for startups in Q1, putting Colorado on pace to raise its lowest amount of VC dollars since 2019.
"The VC market trends that started in the middle of 2022 came into sharper focus in the beginning of 2023," a new PitchBook report states. "Finance — especially VC — is fundamentally prospective, and when the invisible hand that writes the rules of the market is revising them without warning, investors tend to reduce their activity until they can see at least a rough draft."
Despite the gradual slowdown of venture investing in Colorado, 91 startups in the state were able to nab deals, including two that reached into the nine figures.
Here are the top 10 deals of Q1, according to PitchBook.
Deepwatch
Topping the list is the managed detection and response (MDR) startup Deepwatch, which raised $180 million in February. Deepwatch is co-headquartered in Tampa and Denver and plans to use the funding to further develop its platform that helps protect businesses from cyber threats.
Meati Foods
Boulder's plant-based meat company Meati Foods raised $172 million in a Series C round this January, enabling the startup to open its first large-scale factory where it will make millions of pounds of food annually to be sold to restaurants and grocery stores.
Binske
The national cannabis brand Binske raised an $80 million seed round in January. Binkse, based in Oak Creek, is a producer and wholesaler of cannabis products, including vapes, edibles and extracts.
Voyager Space
Voyager Space tied with Binske for snagging the third-largest deal of the quarter, with its $80 million raise in January. The Denver company develops private space stations for research and in March acquired ZIN Technologies, a Cleveland-area aerospace design and engineering business.
Outrider
Golden-based Outrider raised $73 million in a Series C round in January. The startup uses autonomous vehicles to simplify repetitive, manual tasks and reduce congestion in trucking distribution yards.
SALT Lending
The Denver cryptocurrency lender SALT Lending announced in February that it had converted $64 million of its debt by issuing Series A preferred stock. The move strengthened its balance sheet and capital reserves, the startup said.
LongPath Technologies
The Boulder emissions detection startup LongPath Technologies added more funds to its Series A financing in February, bringing the round to $35 million total. The startup's tech can continuously monitor and quantify methane emissions in the oil and gas industry.
OncoVerity
The Aurora-based health tech startup OncoVerity raised $30 million in a Series A round in March. The startup is working on an innovation to better the lives of patients battling cancer.
Strata Identity
The identity orchestration startup Strata Identity, based in Boulder, raised $26 million in Series B financing in January. Strata's platform is used by financial services institutions, retailers, governments, telecommunications companies and insurance agencies.
AquaHydrex
Louisville's AquaHydrex raised $25 million in Series B financing in January. The startup developed an electrochemical system designed to produce green hydrogen.
