VC is out there - if you've got the right stuff: active investors advise entrepreneurs at 21st Annual Colorado Capital Conference.

• Author: Butler, Mary
• Position: BUSINESS CAPITAL - Venture capital - Conference news

The good news is venture capitalists are still funding Colorado startups. The bad news is VCs are taking far fewer risks.

Entrepreneurs need to create business plans that require less money; they need to do more bootstrapping; and most of all, they need to have real customers and real profits.

These were among the messages of four venture capitalists who spoke at the 21st Annual Colorado Capital Conference on May 12 as part of a panel titled, "The State of Colorado Venture Capital - Active Investors in Today's Market." The Capital Conference is for investors, inventors, entrepreneurs and the supporting service professionals.

Today's A round is "what used to look like a B round," said Joe Zell, general partner with Virginia-based Grotech.

Stephanie McCoy of Denver-based Meritage Funds said she's looking for companies that are "more mature" and have "meat on their bones."

That said, the group of VCs said they are funding companies at all stages. But a company seeking funding has to meet a couple of core requirements right off the bat. The most important condition is to have an appropriate management team.

"All of our firms have different things that we fall in love with," Zell said. "But we reject more deals because the leadership team is inappropriate." A company seeking venture capital absolutely must have a "backable CEO," Zell said. "Some of these companies just don't get it," he said. "You need a CEO who has done it before." Without that, Zell said, the odds of receiving...