Aravaipa is the only fund investing exclusively in green and sustainable early-stage companies in Colorado. Founded in 2008, Aravaipa has already invested in seven Colorado companies.

Aravaipa’s investment focus includes:

1.     Green and Sustainable Companies: Aravaipa invests in technologies and products in the areas of renewable energy/cleantech; green building technologies; green IT; organic foods and sustainable agriculture; and other select green industries. Generally, Aravaipa seeks companies competing in niche markets that offer higher profit margins, and shuns markets we perceive as too crowded or having dominant competitors. Of special interest are products that can be sold to OEMs, thereby having an easier and faster market access.

2.     Colorado-Based Companies: 

a.     Ample Opportunities: Colorado’s Front Range, and the Boulder-Denver-Ft Collins triangle in particular, has become a hotbed for innovation in the cleantech and organic products sectors. Colorado has achieved top national rankings for energy research, including the National Renewable Energy Lab (#3) and University of Colorado Boulder (#6,). Colorado State University is home to the world famous Engines and Energy Conversion Lab while the Colorado School of Mines is known for its best-in-class energy research facilities. As the sole Colorado-only fund, Aravaipa has built strong ties to these institutions, each of which has technology transfer and commercialization programs. However, all are hampered by the lack of startup capital to move fledgling technology companies from the university lab to the market.

b.    Management Focus: Aravaipa’s concentrated geographic focus allows the management team to work regularly and effectively with portfolio companies in a hands-on manner, starting with the due diligence process. This proximity to Colorado entrepreneurs is also a key investment filter.

c.     Place-Based: Aravaipa’s place-based approach allows us to create a tight-knit but expansive community of investors, entrepreneurs and others who are able to meet, share and evolve relationships and entrepreneurial opportunities. This community is reinforced by entrepreneurs who in turn become investors in Aravaipa through our unique “share-swap” program.

3.     Low Capial Intensive, Early-Stage Companies:

a.    To manage our “Funding Risk,” Aravaipa invests only in companies expecting to require less than an additional $5M funding to reach profitability, ensuring that Aravaipa can (i) become the lead active investor with an initial investment of $150K to $500K and (ii) minimize the risk of excessive future dilution. Aravaipa expects to manage several funding rounds for its portfolio companies.

b.    Aravaipa invests in early-stage companies who are already generating revenues or expect to do so within 18 months. We do not invest in science projects. Also, contrary to most venture capital firms, Aravaipa does not seek homeruns, but rather companies that have a strong likelihood of becoming very profitable, in the $20-to-$50M sales range. Our realistic approach to upside potential greatly reduces the risk of failure as we do not push companies to try to rapidly achieve improbable homeruns.