In 2004, the State of Colorado passed legislation authorizing the creation of a venture capital program and the Venture Capital Authority (VCA) to oversee the program. The VCA Statute authorized the sale of $50 million in Colorado premium tax credits to initially fund this program through 2014.
The VCA sold the tax credits to insurance companies in exchange for cash as the initial funding. There will be no additional sales of premium tax credits to fund the program. The VCA invested the proceeds from the premium tax credits in Colorado Funds I and II, which are venture capital funds with ‘qualified investments’ made solely in Colorado. The VCA partnered with the Greater Colorado Venture Fund in July of 2018 in a fund focused on investing in rural Colorado.
Per the VCA Statute, the VCA is intended to manage the money as an evergreen fund; meaning, that the distributions will be reinvested in future venture capital funds that meet the requirements of the VCA Statute.
The VCA partners with fund managers who use the VCA’s capital to make investments in “Qualified Businesses” in three designated geographical markets as follows: 50% for a Colorado Statewide Venture Capital Fund (Statewide Funds), 25% for a Colorado Distressed Urban Community Venture Capital Fund (DUC Funds) and 25% for a Colorado Rural Venture Capital Fund (Rural Funds). Qualified businesses must be headquartered in Colorado; meet the Small Business Administration’s definition of a small business; and may not be predominantly engaged in professional services, banking, investing, real estate development, insurance, oil and gas exploration, or direct gambling activities. Investments must be seed or early-stage.
More information about VCA and the Greater Colorado Venture Fund can be found in:
The Colorado Venture Capital Authority is currently conducting a request for proposals (RFP) to partner in a new fund. Per Colorado Revised Statute 24-46-203, this Request for Proposal is exempt from the Colorado Procurement Code.
The VCA plans to allocate a minimum of:
The VCA has an interest in funding businesses that are founded or led by women, minorities, veterans, and other under-served populations.
For the statewide funds, the VCA is not limited to investing in any particular industry sector. The VCA is interested in responses from fund managers with an informed post-COVID strategy and expertise in clean energy, health, and software.
VCA is also open to fund managers with expertise in other industries such as:
The current proposed RFP timeline for selecting one or several fund managers is as follows:
|Date in 2020||Milestone|
|July 3||Publish RFP|
|July 17 at 11:00
July 22 at 11:00
|Bidders Conferences (contact firstname.lastname@example.org for invitation to an on-line meeting)|
|Aug 17||RFP Response Deadline|
|Sep 24||Notification of Finalists|
|Oct 5 to Oct 16||Finalist Interviews|
|Oct 30||VCA Selects Fund Manager(s)|
|Dec 31||Execute the Limited Partner Agreement|
Note: The timeline is subject to modification at the VCA’s discretion.
Those interested in responding to the request for proposal (RFP) must notify staff of their interest by emailing email@example.com with the email subject ‘VCA RFP’. In the body of the email include:
Interested parties will be provided with a secure means to submit application materials.
Please review the RFP Requirements for all requirements and submission materials.
Potential Fund Managers responding to the RFP that have questions should email firstname.lastname@example.org with the email subject “RFP Questions” for a response. Questions will be generalized and made accessible to all potential fund managers here:
Due to COVID-19 and the need to social distance, all meetings will be held virtually until further notice. There will be no physical presence for these meetings. If you wish to participate, please contact email@example.com for the meeting credentials.