Colorado's total venture capital deal values dipped below $1 billion in the third quarter, marking the first time in two years that fundraising failed to reach that benchmark. The state's results mirror nationwide trends that saw deal value ticking even lower.
Startups in Colorado raised $855.42 million in the third — and most recent — quarter, down from $1.2 billion last quarter and dropping to their lowest point since Q3 of 2021, according to PitchBook data released on Thursday.
"Fundraising showed little change during Q3," said Kyle Stanford, a U.S. VC analyst for Pitchbook, in a statement on national fundraising trends. "For the year-to-date, just $42.7 billion has been raised, setting 2023 on pace to reach the lowest full-year total since 2017."
In all, Colorado companies extracted 74 venture capital deals in the third quarter, compared to 105 in Q2 and 114 one year ago. Nationwide, venture capital deal count per quarter has remained steady so far in 2023. But 2023 deal count lags behind numbers seen in previous years.
Colorado’s top venture deals this quarter defied some national trends in procuring more early-stage deals. Such deals have dropped consistently over the past year in other states.
Of the top nine venture deals in the state this quarter, seven were early stage.
Just one “megadeal” — those over $100 million — manifested over that time period in Colorado, consistent with a drop nationwide. Those kinds of numbers appeared in 48.5% of total national deal value in Q3, compared to 60% in Q4 of 2021.
Here are the top nine Colorado deals of Q3, according to PitchBook.
Sierra Space — $290 million
Louisville-based Sierra Space raised $290 million in Series B capital, bringing its valuation to $5.3 billion. Sierra Space is most commonly known for its work on the Dream Chaser, the first winged commercial space plane. The company has raised $1.7 billion since it spun out as a subsidiary of Nevada-based Sierra Nevada Corp. in 2021.
Marsbox Ecommerce — $75 million
The Denver-based company, just founded this year, is the developer of an e-commerce market that intends to revolutionize global supply chains and empower thousands of small and medium-sized sellers, according to Pitchbook. The $75 million was a Series A funding round.
Iontra — $66.5 million
Iontra Inc. aims to improve the lifespan of rechargeable batteries. The company has been on a funding spree this year, having just nabbed $46.9 million from 30 investors in May. The company exited stealth mode last year with a $38 million Series B raise.
Nexo Therapeutics — $60 million
Headquartered in Littleton with a facility in Golden and a research lab in Watertown, Massachusetts, Nexo Therapeutics aims to develop new drugs for cancer patients who currently lack treatment options. The biotech startup emerged from stealth with the $60 million Series A round.
Koloma — $30 million
Koloma aims to find plentiful hydrogen in deep underground rocks and extract it without creating more greenhouse gases. The company emerged from stealth mode in July after securing $91 million from investors. Koloma was incorporated in Dublin but has its headquarters in Denver.
NovoHydrogen — $23.7 million
NovoHydrogen provides green hydrogen solutions to customers in the power, transportation and industrial industries. The Centennial-based company secured this round of funding from 16 investors, according to a Form D filed with the Securities and Exchange Commission.
AOA Dx — $23.6 million
Boston-based AOA Dx announced it was moving its headquarters from Boston to Denver following this Series A raise and said it plans to scale with its first clinical trial for an early detection test for ovarian cancer. The company says its platform, GlycoLocate, can differentiate between cancers down to their tissue of origin in both symptomatic and non-symptomatic patients.
Prins Artificial Intelligence — $22 million
Prins AI offers “AI digital human training” and helps celebrities and businesses create digital identities. Documents procured from the Colorado Secretary of State show that the company was formed over the summer and is based out of an active Chuy’s Tex-Mex restaurant in Lakewood.
Tortuga AgTech — $20 million
Denver-based Tortuga AgTech describes itself as the world’s largest commercial harvesting robot fleet, totaling 150 production robots. The company offers harvesting, forecasting and pest treatment services to help farms be more resilient and sustainable. The latest funding round was a Series A1.
