It's not Alt Rock, it's Alt Capital: Money that Jives with Entrepreneurs
Jul 20, 2020
Money, it’s top of mind for every body. At Startup Colorado, one of the things we hear over and over again is the need for it: meaning more capital investment for rural startups. So, this week we want to highlight an event focused on solving this problem: the Alternative Capital Summit. If this blog inspires you, register today, because the next summit is coming up on January 29 - 30 in Kansas City, Missouri.
According to the Greater Colorado Venture Fund (GCVF), one of the organizing partners behind the annual event, 83% of businesses don’t have access to traditional debt or venture capital. The world of alternative capital, however, is beginning to attract more awareness within the investor community.
Jamie Finney, a partner with GCVF and co-creator of the first Alt Capital Summit with Startup Colorado in 2018, says that alternative capital can include revenue-based investing, profit-sharing, demand dividends, income sharing, and employee ownership.
“Revenue-based investing isn’t new,” Finney said. “But it is new through a venture capital lens. We want to be proactive in providing a type of risk capital that can jive with rural based founders.”
He added that as investors introduce this new form of VC, it’s important to educate entrepreneurs. The upcoming Alternative Capital Summit will allow investors to learn more about the opportunities available with alternative investment models and how to best inform entrepreneurs about their options.
Finney particularly encourages investors interested in rural Colorado to attend the two-day summit.
“This year it will be even more focused toward investors who are actively using these structures,” he said. “It’s focused on how do fund manages raise a fund effectively; how do they explain it to their investors; how do you do this correctly for entrepreneurs.”
After the success of the inaugural summit in Denver last year, the Kauffman Foundation took a more prominent organizing role along with representatives from Zebras Unite, Access Ventures, Sage Growth Capital, Anzu Partners, GCVF, Collab Capital, 1863 Ventures, and Blueprint Local.