Holly Bradshaw Eakes, Principal, The Holly Company Business Consultants

The greatest challenge an entrepreneur may face is finding capital to launch a business, especially when the business idea is related to high-cost startup such as that found in the technology sector. For an entrepreneur with realistic plans for rapid business growth and the potential to scale to larger markets, trading partial ownership for capital may be the only option.

Venture capitalists currently fund about one out of every thousand startups. With the odds stacked against obtaining equity capital, an entrepreneur must identify the investors most likely to invest in his business. Determining which source to pursue depends largely on industry focus, business stage and the amount of money needed. A handful of equity investors have offices in New Mexico and actively pursue investments in the state.

Bridge Between Self-Funding and Venture Capital

The New Mexico Angels is a network of accredited individuals who invest personal capital in early stage New Mexico businesses with the expectation of substantial return. The New Mexico Angels makes investments in startups with “tremendous potential,” which means your company can increase its value 3-5 times in less than 5 years with the Angels’ investment. Read their investment criteria, and apply online if your venture is a fit.

Early, Seed and Startup Venture Capital

Seed stage, the earliest stage in the business continuum, is the point where an idea or business concept is still being developed and there is no revenue stream. Venture capital firms invest other people’s money, usually comprised of pooled institutional funds, in companies at these stages of development. In New Mexico, most active venture capital firms concentrate on early and seed-stage companies; however, these funds tend come and go as capital is deployed. Search our announcements page for notices about new funds that are actively seeking to invest.

The New Mexico Finance Authority is responsible for deploying $50 million in venture capital allocated to if from the State of New Mexico. It is currently deploying about $15 million in State Small Business Credit Initiative (SSBCI) Funding into venture capital. It maintains an updated list of private equity funds that it has invested in and lists new funds as they are added. Visit the NMFA Venture Capital page for the current list, including contact information.

Article 211 updated 8/10/2024