Frequently Asked Questions (FAQ)
What is Rockies Venture Club?
Rockies Venture Club (RVC) is a nonprofit angel investing group based in Colorado that connects accredited investors with early-stage startups. It also provides educational programs, pitch events, and due diligence support.
How does RVC help investors?
RVC offers accredited investors access to high-quality startup deal flow, collaborative due diligence teams, and flexible investment vehicles like SPVs and funds. Educational programs help new angels get up to speed quickly.
How does RVC support startups?
Startups benefit from pitch coaching, mentorship, investor feedback, and access to funding. RVC’s flagship HyperAccelerator® helps founders become venture-ready in just one week.
What is an accredited investor?
An accredited investor is someone who meets SEC requirements for income or net worth and is eligible to invest in private offerings. Learn more at sec.gov. What is an SPV?
An SPV (Special Purpose Vehicle) is a legal entity created to pool multiple investor funds into a single startup investment. It simplifies cap tables and allows for lower investment minimums.
What valuations does RVC typically see?
RVC seeks market rate valuations, averaging $6–8 million in 2024 for first rounds.Rounds over $10M or under $4M are rare.
What does RVC look for in founding teams?
We prefer teams of three or more, ideally with:
Venture-backed experience
Clear strategy and purpose
Unique industry insights
Exit-oriented focus
Grit and other distinctive qualities
What kind of founder-investor relationship does RVC prefer?
We seek partnership, not competition. RVC sees itself as an “anti-shark”, helping founders beyond just capital.
We avoid:
Late-stage deals
Flash deals
Uncommunicative teams
Restrictive information rights
What company stage does RVC prefer?
RVC prefers Seed and Pre-Seed stage companies. These are defined as post-MVP (Minimum Viable Product) but pre-PMF (Product Market Fit).We like early-stage deals because they allow us to lead, help shape company direction, and seek outsized returns based on lower initial valuations.
Does RVC lead deals?
Yes. We prefer to lead because:
We conduct formal due diligence
We leverage our syndication network
We guide deals toward tax-advantaged structures
We will also follow attractive deals led by syndicate partners.
What geographic regions does RVC invest in?
Primarily: Colorado and the Rocky Mountain West.
Syndicate deals: Mostly from the western U.S., but can come from anywhere.
International: Rare but expected to increase over time.
What does the negotiation process look like?
RVC and Lead Investors negotiate a deal that also takes into account a collaborative agreement with followers and syndication partners (other Angel groups, VCs, etc.). The negotiation process includes valuations, board seats, liquidation preferences, securities type, as well as other terms.
Which industries does RVC typically invest in?
We're typically agnostic when it comes to industry or sector. However, our most successful companies have been in Technology, Cleantech, and Life Sciences.
Does RVC participate in follow-on rounds?
Yes. Most portfolio companies receive follow-on investments from RVC, up to $2,500,000 or more over time.
Objectives include:
Maintaining pro-rata ownership
Avoiding cram-downs in pay-to-play scenarios
Doubling down on winners with insider knowledge
What is RVC’s investment track record?
Rockies Venture Club (RVC) has made over 200 investments in the past decade, developing clear themes and preferences in its decision-making while maintaining some flexibility for opportunistic deals.
Is Rockies Venture Club a broker dealer?
RVC is not an advisor nor a broker dealer. We are a community of investors who enjoy angel investing and the opportunities that come with it.
What is the typical first check size?
RVC typically invests $100,000–$500,000 in initial rounds.
What exit strategies does RVC prefer?
We favor companies with clear exit strategies, including:
Industry trends and recent comps
Relationships with potential acquirers
Multiple exit scenarios
Understanding value creation by addressing gaps in incumbent strategies
What does RVC look for in a deal?
We look for venture capital class companies capable of returning 10 times the investment over five years or less.
What membership types are available?
RVC has a number of different membership types for our various community members. We have active angel membership for people who are interested in education programs, social events, pitch events, curated deal flow and investment management. The Mobile Membership is also for investors, but those who don't want to attend events in person. We also have Entrepreneur Memberships for startup founders who are looking for networking to meet investors and discounts on classes and events. Finally, we have Service Provider/Corporate Memberships for people who are looking to network with the RVC community with promotional opportunities for business development. You can sign up as a member at www.rockiesvc.org How much ownership does RVC aim for?
We generally invest amounts that represent 20–50% of the round being raised and result in 5–20% ownership.
Note: Concentration is not our primary strategy—our focus is on dollar-for-dollar returns.
How does syndication come into play?
We share due diligence and term sheets with other angel groups, VCs and other investors. This helps engage out of state investors and increase the total amount raised if necessary.
Does RVC take board seats?
Yes, in about 40% of deals.
We also pursue board observer seats when board seats are unavailable, ensuring investor representation in all cases.
What are some more perks of RVC's network?
Network with highly motivated entrepreneurs and experienced, accredited investors at monthly pitch events, including the RVC (Rockies Venture Club) Signature Series events, such as Cleantech Night, Life Sciences Night, Women's Investor Network, and more. Additionally, there are ample opportunities to mentor entrepreneurs through RVC's educational programs.
What industries does RVC invest in?
Technically industry-agnostic, but we tend to favor:
Life Sciences
Cleantech
Consumer Packaged Goods (CPG)Technology
Does RVC consider tax strategies?
Yes. Tax advantages can significantly impact returns. We leverage:
Colorado’s OEDIT Advanced Industries Investment Tax Credits
Federal QSBS (Sections 1202, 1244, 1045) benefits at exit
Does the company need to be a C-Corp?
Not initially. While RVC prefers companies organized as Delaware C-Corps, it’s not required before submitting a pitch.
What strategic advantages (“moats”) does RVC look for?
We prefer companies with strong competitive barriers, such as:
Network effects
Proprietary datasets
Intellectual property/patents
Strategic partnerships
Proprietary technology
Significant market share
What is RVC’s target return?
Our target is 10X over five years, but we also consider:
Early exits of 2–3X
Rare later-stage “power law” exits of 100X+
We look for validated and tactical plans to achieve these returns.
What is a Deep Dive ?
Deep dives are two hours of face to face interaction between company executives and angel investors. This time provides the chance to answer any questions that may have arisen from the pitch. We typically do Deep Dives for a few select companies. Investor Members gain access to these Deep Dives.
What deal structures does RVC use?
Preferred: Preferred Equity in C-Corporations (for tax and governance benefits)
Considered in special cases: Convertible Notes and SAFEs (bridge rounds or exceptional situations)
Does RVC invest in capital-intensive companies?
No. We avoid companies requiring extraordinary amounts of capital, as early-stage investors risk excessive dilution unless exits are exceptionally high.
What does the deal flow look like?
Each investor forum presents 3-5 companies. Overall, Rockies Venture Club receive around 100 applications per screening cycle. As a member, you can joining the VCA Screening Committee Meetings to access a higher level of deal flow.