.png)
How to Find Funding for Your Business: A Practical Guide for Colorado Entrepreneurs I Startup Funding Colorado
Colorado Startup Funding Guide
Mick Freeman of Bridge Entrepreneurs Network joins Ryan Frazier to shares what it takes for companies to navigate the path from early success to long-term growth.
You have an idea. Maybe you’ve already found customers. Revenue is coming in, people are responding to what you’ve built, and suddenly the question changes.
It’s no longer just:
“Can I start this business?”
It becomes:
“How do I fund the next stage of growth?”
For entrepreneurs, finding funding can feel like stepping into an entirely different world. Venture capital. Angel investors. Grants. Loans. Bootstrapping. Revenue financing. Pitch decks. Market size. Investor introductions.
There are seemingly endless strategies—and not every funding source is right for every company.
That is exactly why one of the most valuable things an entrepreneur can do is understand what stage their business is in before trying to raise money.
In a recent conversation, Mick Freeman of Bridge Entrepreneurs Network (BEN Colorado) joined Ryan Frazier to discuss what founders need to navigate the transition from early success to sustainable growth.
And one message came through clearly:
You don't have to figure all of this out alone.
Before Looking for Funding, Understand What You're Funding
One of the first questions founders should ask isn't:
“Where can I find an investor?”
It is:
“What exactly does my business need capital to accomplish?”
Are you funding inventory?
Hiring employees?
Building technology?
Expanding into a new market?
Opening a physical location?
Increasing marketing?
Developing a prototype?
Creating enough runway to reach profitability?
The answer matters because different types of business funding are designed for different situations.
A profitable service business seeking $75,000 to hire its next team members may need a completely different capital strategy than a technology startup trying to raise $3 million to develop a platform and pursue national expansion.
Before searching for money, understand the job you need the money to perform.
7 Ways Entrepreneurs Can Fund a Business
There isn't one correct path to funding a startup or growing company.
Most founders will use some combination of these strategies throughout the life of their business.
1. Bootstrap the Business
Bootstrapping means using your own resources and business revenue to fund growth rather than immediately seeking outside investment.
That might include personal savings, early customer revenue or reinvesting profits back into the company.
Bootstrapping gives founders something extremely valuable:
control.
You maintain ownership and don't have to answer to outside investors.
But it can also limit how quickly you can grow, particularly when the company requires significant upfront capital.
The real question isn't whether bootstrapping is good or bad.
It's:
Can your business model reasonably finance its own growth?
One of the most overlooked forms of startup funding is simply customers.
For many founders—especially consultants, service businesses, agencies, creators and B2B companies—the strongest funding strategy may be creating revenue before trying to raise a formal round.
Early sales help demonstrate something investors care deeply about:
proof that people actually want what you're selling.
Revenue can also help validate your pricing, customer profile and market before you spend significant money scaling.
3. Explore Small
Business Loans
Not every entrepreneur needs venture capital.
Traditional banks, community lenders, SBA-associated programs and specialized economic-development programs can provide small business financing without requiring founders to give up equity.
Colorado, for example, operates a Colorado Startup Loan Fund through participating mission-driven lenders. The program is designed to expand access to capital for entrepreneurs who may have difficulty obtaining conventional financing, with participating lenders offering microloans of less than $150,000. Oedit
Depending on your company, loans may make sense for equipment, inventory, hiring, expansion or working capital.
The important distinction is that debt has to be repaid, so founders should understand projected cash flow before borrowing.
4. Search for Business Grants
Grants are attractive because they generally don't require giving up ownership or repaying the funding.
They're also competitive.
Government agencies, economic-development organizations, universities, foundations and industry organizations may offer grants targeted toward particular industries, technologies, geographic regions or founder populations.
Colorado entrepreneurs can begin with resources such as Startup Colorado's Funding Database, which organizes opportunities into venture capital, loans, grants and alternative sources of funding. Startup Colorado
Instead of searching endlessly for “startup grants”, narrow the search.
Try looking for funding connected to:
your industry
your city or county
your stage of business
research and innovation
rural economic development
job creation
exporting
technology development
The more specific the program, the better your chances may be of finding something relevant.
5. Look for Angel Investors
5Angel investors are individuals who invest their own capital into businesses, often at an earlier stage than traditional venture capital firms.
But entrepreneurs shouldn't think of angels simply as people with money.
The right investor can bring relationships, industry expertise, credibility and introductions that become as valuable as the capital itself.
Before approaching an angel investor, be prepared to explain:
Who is your customer? What problem are you solving? Why is your solution different? How large is the opportunity? What traction have you achieved? And what will their capital allow you to accomplish?
Those questions force founders to understand their businesses at a much deeper level.
6. Pursue Venture Capital—When It Actually Fits
Venture capital gets enormous attention in startup culture.
But venture capital is not the default funding source for every successful business.
Venture firms generally look for companies capable of significant growth and returns.
That means founders pursuing venture funding need to understand things like:
their target customer, serviceable market, growth potential, economics, competitive advantage and scalability.
Startup Colorado notes that venture and angel investment typically focuses on businesses capable of significant national or international growth. Startup Colorado
Colorado also has a Venture Capital Authority designed to increase investment into innovative pre-seed, seed and early-stage Colorado companies through professional fund managers. Oedit
A founder shouldn't ask:
“How do I convince a VC to invest in me?”
A better question is:
“Is this actually a venture-backable business?”
Sometimes the answer is yes.
Sometimes building a highly profitable privately held company is the much better strategy.
7. Find the People Who Know Where the Money Is
This may be the most important strategy on the list.
Funding ecosystems are complicated.
Programs open and close. Grants have narrow eligibility requirements. Investors specialize in specific industries. Economic-development organizations serve particular geographic areas. One founder might qualify for a city program while another is better suited for a state program, lender or angel network.
Trying to discover everything yourself can become a full-time job.
That's where technical assistance, mentorship and entrepreneurial networks become incredibly valuable.
Instead of asking:
“Where is the money?”
Try asking:
“Who understands this ecosystem well enough to point me toward the right money?”
That person may save you months of searching.
Sometimes Mentorship Is More Valuable Than Funding
This is an important distinction.
A founder can receive $100,000 and still make terrible decisions with it.
Capital doesn't automatically solve unclear positioning, weak operations, poor customer acquisition, bad financial models or the wrong growth strategy.
Sometimes the thing you need before funding is experienced guidance.
That is part of the philosophy behind Bridge Entrepreneurs Network Colorado.
BEN Colorado's Signature Program connects growth-stage entrepreneurs with experienced volunteer advisors. Since 2014, more than 160 Colorado entrepreneurs have gone through the program, receiving structured advisory support, mentorship, peer connection and access to experienced business leaders. BEN Colorado
Rather than simply handing founders a directory of resources and sending them on their way, the program helps entrepreneurs identify their most pressing growth challenges and connects them with advisors who have often already navigated similar situations.
BEN describes the model as curated support for founders who are ready to scale. Its broader network includes more than 500 volunteer advisors throughout Colorado. BEN Colorado
That type of startup mentorship can be enormously valuable when you're trying to determine whether to raise capital, bootstrap, pursue lending or rethink the business model entirely.
Know Your Numbers Before Asking for Money
Regardless of which funding strategy you pursue, financial readiness matters.
Before approaching a lender or investor, you should be able to explain:
Current revenue and expenses.Cash flow.Gross margins.Customer acquisition costs.Pricing.Projected growth.How much capital you need.What the capital will fund.What milestone that funding should help you reach.
Investors don't expect founders to predict the future perfectly.
They do expect founders to understand their businesses.
Your financial model should tell a story:
Here is where we are. Here is where we're going. Here is what is preventing us from getting there faster. And here is how this capital changes that equation.
That's a fundamentally different conversation from:
“I need money to grow.”
Create Your Funding Map Before You Start Pitching
One practical exercise for any entrepreneur looking for funding is to create a simple Funding Map.
Start with five questions:
1. What stage is my business in?Idea, validation, early revenue, growth, scale or expansion?
2. How much capital do I actually need?$10,000 and $2 million require completely different strategies.
3. What will the money accomplish?Tie funding to measurable milestones.
4. What forms of capital am I willing to accept?Debt? Equity? Grants? Revenue financing? Personal investment?
5. Who can help me navigate the ecosystem?Mentors, economic-development organizations, lenders, experienced founders, incubators, accelerators and investor networks.
Now you aren't simply looking for money.
You're building a capital strategy.
Colorado Entrepreneurs Have More Resources Than They May Realize
Colorado has developed an extensive entrepreneurial ecosystem.
For example, Metro Denver's financing resources point entrepreneurs toward lending organizations, venture capital organizations, SBIR/STTR funding and the Denver Capital Matrix, which identifies more than 400 potential funding sources across banking, venture capital, private equity, angel investing and other categories. Metro Denver
Startup Colorado also maintains resources covering funding, advisors, state grants, tax incentives and programs for founders throughout the state. Startup Colorado
BEN Colorado offers multiple advisory programs depending on a founder's stage and location, including its Signature Program, Inclusive Impact Catalyst, Rural Reach, BEN Dens and targeted Think Tanks for specific strategic challenges. BEN Colorado
In other words:
You may not have to know the exact answer.
You need to know where to begin asking the right questions.
The Founder Doesn't Have to Know Everything
Building a company is hard.
There is an almost endless stream of decisions:
Should I bootstrap?
Should I raise?
Am I ready for venture capital?
Should I take a loan?
Which grant applies to me?
Do I need a better pitch deck?
Is my market large enough?
Is my financial model realistic?
Should I hire now?
Am I scaling too quickly?
That uncertainty can easily trigger one of the deepest fears entrepreneurs experience:
What if I fail?
But successful entrepreneurship isn't about magically knowing every answer.
It's about building the ability—and the network—to find the next answer.
Mick Freeman summarized the philosophy beautifully:
“Reach out to get unstuck.”
And perhaps even more importantly:
“Don't just ask for help. Ask for all the help you need.”
There are founders, mentors, advisors, lenders, investors and organizations that have already walked pieces of the road you're standing on.
Use them.
Because the goal isn't simply to find funding.
The goal is to build a company worth funding—and a business capable of turning that capital into meaningful growth.
Colorado needs those companies.
Startups and growing small businesses create jobs, introduce new services, strengthen communities and help determine what the state's economy becomes next.
Comments