Contact:
John Shors
GroundFloor Media
303.926.0973
For Immediate Release
Vista Ventures Receives SBIC License –
Ready To Invest More Than $60 million in Colorado Companies
With limited SBIC-licensed venture capital firms in Colorado, Vista will have a significant impact on young technology companies in the state
Broomfield, CO – March 10, 2003 –
Vista Ventures, a
Colorado-based venture capital firm specializing in early- and growth-stage
investments in information technology and communications companies, announced
today that it has been granted a Small Business Investment Company (SBIC)
license by the U.S. Small Business Administration.
The SBIC program was created by the SBA to provide capital to private equity funds for much-needed investment in small businesses. The SBIC program allows select organizations like Vista Ventures to greatly expand their own private investment capital with funds leveraged by the federal government. The SBA invests equity capital equal to twice the amount of a fund’s private capital.
With the SBIC license, Vista Ventures will have more than $60 million in fresh capital to invest in Colorado technology companies. “Vista Ventures’ grant of an SBIC license is good news for entrepreneurs across Colorado,” says Catharine Merigold, a Vista founder and general partner. “Colorado consistently ranks among the top regions for venture capital investment. Yet over 80% of that money comes from out of state. And while out of state money is nice, it’s advantageous to have Colorado VC money going to Colorado companies.”
Bill Chambers, CEO of LeftHand Networks in Boulder – which received funding from Vista in 2000 – has similar views. "SBIC licensing for Vista Ventures is a boom for the Colorado high-tech community," he says. "At LeftHand, we understand the significant role venture funding can have in the growth of a company. With the SBIC licensing in place, Vista Ventures will have the ability to broaden their impact, helping more early-stage technology companies get off the ground. This cash infusion will ultimately benefit Colorado as a whole."
Merigold adds that as Colorado tries to emerge from a recession, having ample venture capital money available to bright, young companies is crucial to the state’s well being. And such funding has diminished in recent years. For instance, according to PricewaterhouseCoopers, Colorado venture capital investments for 2002 were $547 million, down from the $1.4 billion handed out in 2001.
With less than 10 SBIC-licensed venture capital groups in Colorado, Vista’s SBIC designation and ample funds will provide local companies with a significant opportunity to receive critical funding.
“Our goal is to be true partners with the companies we invest in,” says Dave Dwyer, also a founder and general partner of Vista Ventures. “We want to invest in Colorado companies because our close proximity to such companies allows us to play active roles in their growth and development. All of the principals at Vista have held senior level-operating roles in companies, and therefore, we can provide hands-on guidance to local companies. Overall, we’re quite bullish about investing in Colorado right now, and into the future, as there is an incredible amount of intellectual capital in this state. Talented, visionary people are here doing amazing things. And having $60 million available to such entrepreneurs is incredibly important. It may help us uncover the next Dell or Cisco.”
In 2001, Colorado ranked 5th nationally in venture capital investment received, dropping to 8th in 2002. Last year, seventy-eight Colorado companies were funded with venture capital money. In 2003, Vista expects to invest in four or five local companies.
About Vista Ventures
Vista Ventures is a Colorado-based venture capital firm with offices in Broomfield and Fort Collins. The firm specializes in early- and growth-stage investments in information-technology and communications companies, and in companies with enabling technology designed for more traditional industries. Vista Ventures is founded, run, and financed by successful entrepreneurs for entrepreneurs. The fund has been designed to be a value-added investor to emerging companies. The principals in the fund are all experienced, successful entrepreneurs with executive experience at high-growth technology companies. Vista Ventures is an SBIC-licensed group backed by more than $60 million in investment capital.
For more information, call 303.410.2537 or visit www.vistavc.com.