The Rockies Space Fund: Investing in Colorado's Aerospace Future

Robert

Welcome to our podcast, where we dive into the exciting world of venture capital and aerospace innovation. I’m your host, Robert, and today we’re exploring the Rockies Space Fund, a groundbreaking venture capital fund dedicated to aerospace startups in Colorado. Joining me is Amanda, who will help us break down the details and explore the fascinating aspects of this fund. Amanda, welcome!

Amanda

Thanks, Robert! I’m really excited to be here. Can you start by giving us an overview of what the Rockies Space Fund is all about?

Robert

Absolutely! The Rockies Space Fund is a venture capital fund organized to make direct equity and debt investments in early-stage private companies, primarily in Colorado. It was founded to capitalize on the state's strong aerospace economy, which is the second largest in the United States. The fund's primary investment strategy is to identify high-growth potential companies with a clear path to exit and the potential to return ten times or more to Limited Partners.

Amanda

Wow, that sounds like a huge opportunity. What makes Colorado such a hub for aerospace? I mean, I know about the big players like Boeing and Lockheed Martin, but what else is happening there?

Robert

Colorado is indeed a hub for aerospace, and it’s not just the big players. The state has a thriving ecosystem that includes a strong presence of government entities, military commands, and research institutions. For example, Colorado is home to the U.S. Space Command, the Space Force Operations Command, and the Air Force Academy. Additionally, there are numerous organizations like the Colorado Space Business Roundtable and the Colorado Space Coalition that foster collaboration and innovation. The state also has a robust network of universities and research institutions, which are crucial for talent development and cutting-edge research.

Amanda

That’s really interesting. So, what are some of the key sectors within the aerospace industry that the Rockies Space Fund focuses on?

Robert

The fund targets a wide range of sectors within aerospace. These include terrestrial space tech, such as geospatial intelligence, satellite imagery, and satellite communications. They also invest in orbital space tech, like satellite manufacturing, propulsion systems, and in-space manufacturing. Additionally, the fund looks at exploratory space tech, which involves technologies for celestial resources, surface navigation, and interplanetary propulsion. Each of these sectors has the potential to drive significant advancements and create new opportunities.

Amanda

It sounds like there are a lot of exciting areas to invest in. What are some of the risks and challenges that the Rockies Space Fund faces in these investments?

Robert

Great question. One of the biggest risks is the high degree of uncertainty and volatility in the aerospace industry. Many of the startups the fund invests in are operating at a loss or with substantial variations in operating results. They also face intense competition from larger, more established companies. Additionally, there’s the risk of product and technological obsolescence, especially in rapidly changing fields like high technology. The fund also has to navigate regulatory and compliance challenges, which can be complex and time-consuming.

Amanda

Those are significant challenges. How does the fund mitigate these risks and ensure that it’s making sound investments?

Robert

The fund has a robust investment process that includes thorough due diligence and a focus on high-growth potential companies with a clear path to exit. They work closely with their network of advisors, including the Rockies Venture Club, which is one of the oldest and most respected angel groups in the U.S. This network provides a steady flow of deal opportunities and helps the fund identify and evaluate the most promising startups. The fund also leverages the expertise of its leadership team, which includes seasoned professionals like Peter Adams, Kevin Kudra, and Kevin Strait, who bring a wealth of experience in venture capital and aerospace.

Amanda

That’s really reassuring. Speaking of the leadership team, can you tell us more about the key figures behind the Rockies Space Fund and their roles?

Robert

Certainly! The fund is managed by Rockies Space GP, LLC, with Peter Adams, Kevin Kudra, and Kevin Strait at the helm. Peter Adams is a career angel investor and venture capital educator, known for his book 'Venture Capital For Dummies.' Kevin Kudra is the Executive Director of the Rockies Venture Club and a board member at the Angel Capital Association. Kevin Strait is an engineer-turned-attorney with a deep focus on the aerospace industry. Together, they bring a diverse set of skills and a strong commitment to the success of the fund.

Amanda

It’s clear that the leadership team is well-equipped to guide the fund. How does the fund source its deal flow and ensure it has a steady pipeline of investment opportunities?

Robert

The fund has a strategic partnership with the Rockies Venture Club, which is a key source of deal flow. The club has a long history of connecting investors with high-potential startups and has a vast network of entrepreneurs, investors, and industry experts. The fund also participates in various conferences, pitch events, and educational programs to stay connected with the startup ecosystem. This multifaceted approach helps the fund identify and evaluate a wide range of investment opportunities.

Amanda

That’s a great strategy. Finally, what is the long-term vision for the Rockies Space Fund, and how do you see it impacting the aerospace industry and the state of Colorado?

Robert

The long-term vision is to establish the Rockies Space Fund as a leading investor in aerospace innovation, not just in Colorado but nationally and globally. By providing early-stage capital and strategic support, the fund aims to help promising startups scale and achieve their full potential. This, in turn, will contribute to the growth of the aerospace industry in Colorado, creating jobs, driving economic development, and fostering a culture of innovation. The fund also hopes to inspire and attract more talent to the state, further solidifying Colorado's position as a hub for aerospace excellence.

Amanda

That’s an inspiring vision. Thank you, Robert, for sharing all these insights with us today. It’s been a fantastic conversation, and I’m sure our listeners have learned a lot about the Rockies Space Fund and the exciting future of aerospace in Colorado.

Robert

Thank you, Amanda! It’s been a pleasure. Be sure to tune in to our next episode where we’ll dive deeper into the specific technologies and startups that the Rockies Space Fund is supporting. Until then, stay curious and keep exploring the possibilities of space!