The past few years have seen Denver thriving as an entrepreneurial powerhouse. Last November, the Denver Business Journal reported that Colorado is now fourth on the list of states that California businesses are moving to, and recently CBRE announced that Denver ranked in the top 10 cities for commercial real estate investment. Startups, accelerators and events are attracting investors from all around the country, raising from $461 million in 2013, to $683 million in 2015. So what exactly is it that makes Denver so attractive to investors?
Denver thrives in its diversity of industries. Denver began attracting investors due to its high number of tech companies, but now investors in energy, oil, gas, real estate, cyber security, software, digital healthcare and technology and yes, even cannabis, have all flocked to Denver in the past five years for new business opportunities.
There are also a large number of venture capital firms and angel groups in the area, like Rockies Venture Club, Grotech Ventures and Meritage. These organizations work hard to connect entrepreneurs to investors and provide comprehensive information to both. Events like the Angel Capital Summit give early-stage companies a chance to pitch to potential investors.
Certain concerns have additionally been driving more investors to Colorado. According to ColoradoBiz magazine, while most investors say that water shortages do not affect their portfolio, over a quarter of investors in the Denver area have either invested in water-based conservation funds or have plans to do so. Ranking highest on the list of concerns investors have nationwide are healthcare costs. Fortunately, Colorado has relatively lower healthcare costs than traditional investment hubs like New York and San Francisco.
