Under 30, but investing in the late stage: US Capital looks for quick returns.

• Author: Cada, Chryss
• Position: U.S. Capital Corp. - Company overview

Although they didn't have an extensive track record to rely on, the founders of US Capital did have the trump card necessary to start up a private equity investment company: a great idea.

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It has only been a year since Ryan Boykin and Craig Harrison, both under 30 and Colorado natives, founded the Cherry Creek-based firm that focuses on late-stage investments, and the firm already has $6 million under management.

"We find the companies that are producing disruptive technology that will change the way business is done in their industry," Boykin explained. "But we come in at a late stage so that the company has already proven itself and the returns are more assured and immediate."

The entrepreneurial pair had been hunting for their first good idea for a business of their own since they met in business classes at the University of Denver. As students they met once a week to discuss the long list of business ideas they had come up with, with an investment firm always topping the list. When they both went to work in the world of finance they learned more about what type of firm they wanted to start themselves.

"We had the opportunity to sit down with investors and ask them what they liked and what they thought was missing," Harrison said. "The consistent answer we got was that there was a lack of later-stage deals and people had to wait too long to see a return on their money."

The pair also tapped into their network of mentors and heard the same thing.

"People would talk about personally investing and having to wait five, six, sometimes 10 years to see a return on their money," Boykin said. "On top of that maybe one out of 10 of the projects would actually materialize. They continually said that if there was some way they could invest during the last round, that would be very valuable to them."

By seeking to fund the most innovative new technologies, but doing so late in the game, the firm finds a balance between risk and reward.

"We're not going after 30- to 40-times returns," Harrison said. "We want to hit more often. The returns may be lower than riskier projects, but they will be more consistent."

When the pair started investing they were looking out for a very personal interest.

"We were investing our own money, and we didn't have much of it," Boykin said. "We were very critical when it came to the...