DENVER - The Denver chapter of the international angel investor organization Keiretsu Forum plans to shut down its operation at the end of the year.

Chapter President Steve Murchie said the poor economy took its toll on the three-year-old chapter.

"From a high of 35 investor members, we're now down to about ten active participants," Murchie said in an e-mail to friends and colleagues. "A group that size isn't financially sustainable using our membership model, nor is it likely to drive investment volume at a pace that is fair to entrepreneurs."

Keiretsu members paid annual membership dues to attend monthly meetings at which selected startups pitched their business plans.  Members then had a chance to conduct due diligence and invest in the startup at terms negotiated collectively by the chapter.  The forum also included educational and philanthropic events.

Murchie said the Denver chapter had raised nearing $6 million through investors for businesses in Colorado and outside the region during the past three years.

Keiretsu Forum, which was founded in California, has 17 other chapters still operating nationwide.