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Venture capital funding for tech makes strides in Colo.

The roadblock that all but halted financing for technology startups may be falling.

By Aldo Svaldi
Denver Post Staff Writer

http://www.denverpost.com/Stories/0,1413,36~33~2214989,00.html

Denver-based Appian Venture Partners http://www.appianvc.com/ has closed on an $80 million venture capital fund, the first time that has happened since the tech bust began in 2000, said Mark Soane, an Appian managing director.

"Technology is once again interesting to investors," added Donald Parsons Jr., a managing director at Appian.

Parsons, Soane, Phillip Dignan and Stacey McKittrick will oversee the fund, whose largest investors include Denver technology software millionaire Rutt Bridges and his former wife, Barbara.

A team of six investor-advisers, including StorageTek founder Juan Rodriguez and Raindance co-founder Jim Lejeal, works with Appian and its companies.

Venture capital funding in Colorado, which peaked at $4.4 billion in 2000, dropped to $557 million and $620 million the past two years, according to the PricewaterhouseCoopers Money Tree survey.

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Although some existing venture capital funds in the state managed to raise money during the bust, including Vista Ventures, which got its start at the 2000 peak, early-stage financing for technology companies evaporated.

Appian, launched in 2002, has struggled, but investors have become more willing to invest in technology, allowing the state’s newest venture capital fund to close.

Appian, named after the ancient road linking Rome to Greece, focuses on investments related to applied connectivity or technologies that allow a network of users to share information to boost productivity.

Investments will be in the $2.5 million range and target early-stage companies in the West.

Among companies financed are LeftHand Networks, Oxlo Systems, Roving Planet and Cadre Technologies.

Greg Mesch, chief executive of Broomfield-based Roving Planet, said having a venture capital partner in Colorado helped the firm attract $6 million from two California venture firms.

"Silicon Valley money won’t invest in Colorado without a strong local lead," Mesch said.

Venture capitalists and technology entrepreneurs have regained their rationality, said Dignan, which portends better returns than seen from investments made in the late 1990s and early 2000.

"We are at mid-1990, 1997 levels, which is still very healthy," he said.
Staff writer Aldo Svaldi can be reached at 303-820-1410 or [email protected] .

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