There’s a new pre-seed and seed fund in town.
Local venture capital firm Denver Angels launched a DA Ventures Seed Fund on Tuesday to support startups looking for pre-seed funding.
Prior to this fund, Denver Angels invested in companies with more than $1 million in revenue. Round sizes ranged from $250,000 to $3 million and typically went to Series A or Series B-stage companies. Now, Denver Angels is a full-cycle capital resource for nearly any stage company.
“Establishing the DA Ventures Seed Fund allows us to leverage the far-reaching and domain-specific expertise of our members to deploy capital in compelling startup opportunities,” Denver Angels CEO David Prichard said in a statement. “Our Denver Angels members understand the Colorado marketplace because many of them have grown their own businesses here. We’re excited to continue to support the success and growth of local companies.”
Over the next four years, Denver Angels will use this new seed fund to invest between $100,000 and $1 million in 20 to 40 startups. Led by Denver Angels member and Jogan CEO Dan Dietrich, the fund is expected to total $25 million, according to the firm.
The DA Ventures team includes Denver Angels managing directors Prichard, Amy Brandenburg and David Gold, principals Julian Busch and Kalen Acquisto, general council Jackson Killion and human capital advisor Martin Dubin.
The team will use analytical and behavioral assessments to validate company leadership and ultimately decide which startups to invest in.
Denver Angels has already closed its first investment from this seed fund in July. It went toward a $9 million seed round for an IT security company operating in stealth. Denver Angels declined to comment on the name of the startup but said it’s based in Colorado.
Businesses that receive funding from the DA Ventures Seed Fund also have the opportunity to receive later-stage funding from Denver Angels and its network of more than 600 accredited investors. These investors have experience running, raising capital for, investing in and advising Colorado startups.
Since its founding in 2019, Denver Angels has invested more than $30 million in 25 companies.
