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While the first quarter was somewhat of a slump for venture capital in Colorado, it appears to be on the rebound for second quarter. According to the Denver Business Journal, venture capital investments reached $78.5 million in Q2, compared to $44.5 million in Q1. However, these numbers are still significantly lower than what we saw in 2014 and 2015.  In 2015 alone, Denver firms raised $345 million in venture capital, according to Metro Denver.

Although the size of the deals aren’t as remarkable, it appears that the number of deals is increasing. Investors provided funding to 19 Denver and Boulder-based startup companies in the second quarter, which is up from 15 in the first quarter. Eight investments went to early-stage companies, which represented 42 percent of the deals in 2016.

According to Metro Denver, the industries leading the pack are internet, software and telecommunications, which make up 84 percent of total venture capital. The internet sector alone has raised $786 million in venture capital over the past five years.

Rob Ward, an audit partner at PricewaterhouseCoopers in Denver, notes that even though venture capital is not as high as it was in 2014 and 2015, the trends overall are promising for startup culture in Denver. Ward says, “To me, that continues to tell the story that Colorado will continue to see its fair share of venture investing now and in the near future.”

Ward also adds that Colorado excels not only in the technology sector, but also innovation as a whole, and education is playing a key role in that. “I continue to be impressed with the universities, they all have robust entrepreneur programs – and it’s not just about technology. It’s about innovating…and that is very impressive.”