Venture capital firms, the lifeblood of the startup ecosystem, are investing far less in Front Range companies this year, according to a new report.
Firms invested $75.8 million across 20 deals from Boulder-based companies in the second quarter, according to PitchBook, a financial data company. That’s less than half of the cash invested in Boulder last year.
The story is similar in Denver, where $512 million was invested across 55 deals this year. Investment topped $1.1 billion in Denver during the same timeframe in 2025.
The tepid startup scene is another downbeat indicator for Colorado’s economy. The state’s job growth has lagged below the national average since 2022. Last year, Colorado actually lost jobs for the first time since 2010, excluding the COVID-19 job losses.
At the same time, more people are leaving the state, while affordability erodes the state’s competitive standing when it comes to attracting new businesses.
There are a lot of theories about what’s behind Colorado’s slump. The Federal Reserve Bank of Kansas City points to a slowdown in the tech industry. That dynamic could dovetail with lackluster venture capital investment in the state’s technology hubs.
Funding for venture capital firms nationwide has become heavily concentrated between haves and have-nots, according to the report from PitchBook. Investors are increasingly pouring money into large, established fund managers. Much of that cash is aimed at AI businesses, the report found.
The shift toward larger funds means less money for smaller, newer players. That dynamic could be filtering into the money available for Colorado businesses.
“[The] venture market is setting records at the very top while contracting almost everywhere beneath it,” the report’s authors note.
