Getting to Know the Utah Fund of Funds
Part IV: The Importance of the Utah Fund of Funds: Entrepreneurial Voices
By Jeremy Neilson and Kimball Thomson
<< Read the first article: Part I: A Local Habitation and a Name
<< Read the second article: Part II: Structured for Maximum Impact
<< Read the third article: Part III: A Portfolio with Purpose
<< Read the fifth article: Part V: Progress and Future of the Utah Fund of Funds
This is the fourth in a series of short articles describing the vision and purpose, structure, direction and progress of the Utah Fund of Funds (Utah FoF; Http://www.UtahFoF.com), one of Utah's most significant ongoing economic development programs.
The first installment of this series provided an overview of the UtahFoF; the second described the program's structure and financing; and the third described the program's current portfolio of the venture/private equity funds. This installment will describe the importance of the Utah Fund of Funds, from the perspective of leading Utah entrepreneurs and national investors. The entire series can be accessed on the UtahFoF website under "In the News".
The mission of the Utah FoF, created by the Utah Legislature through the passage in 2003 of House Bill 240 - the Venture Capital Enhancement Act - is to increase the amount, quality and diversity of capital funding available to help the state's early-stage and growth companies to grow, prosper and mature in Utah.
The Utah FoF is working to fulfill its mission of empowering Utah companies and entrepreneurs withdiverse funding sources, from early-stage to later-stage companies from technology to life sciences to retail, and is poised to bring powerful economic impact to the state.
The following statements represent a range of entrepreneurs' and investors' perspectives about the value and significance of the Utah FoF.
Entrepreneurial Perspectives
"I am happy to help host VCs, particularly the better-known ones that would bring additional credibility to the state. I'm glad to hear of the increased investing activity being fostered by the Utah Fund of Funds. I'm particularly encouraged by the investment in new Utah venture funds, and in outside funds that will spend time in the state. The number one problem in my mind for Utah entrepreneurs seeking money from VCs has been too few firms competing to invest in their deals. More competing VCs will improve practices and the treatment of entrepreneurs, and help the entire ecosystem reach a healthy balance that can only be created through a free market with enough competitors acting in their own interest - versus the virtual monopoly that has historically existed here."
- Josh James
Co-founder & CEO, Omniture
"Capital is the life-blood of the biomedical industry. The Utah Fund of Funds will do more to attract capital to innovative life science companies in the state than any other single industry or government effort."
- David Clark
President & CEO, Prolexys Pharmaceuticals
"In my experiences with the UPSTART fund and with the life science company ZARS, my interactions with the people I've met through the Utah Fund of Funds, the program is extremely valuable in helping entrepreneurs like myself continue to build an awareness of Utah as a growing center of entrepreneurial excellence. The visits by venture funds from around the country and their interactions with both successful and inexperienced Utah entrepreneurs shows to the rest of the country that important things are going on here, and they should be a part of it. The Fund of Fund's serious interest in stimulating the growth of new companies in Utah and helping grow the ideas of budding entrepreneurs at our leading research institutions is essential to continued growth of the state's economy, now and in the future. Fund of Funds is so important to what is going on in this state. It is, in my opinion, key to Utah's growth that what the Fund of Funds is doing continues to happen and to grow in magnitude."
- Ted Stanley, serial entrepreneur
Co-founder, ZARS, UPSTART & Anesta
"The Utah Fund of Funds has been very helpful introducing us to potential investors. One such introduction resulted in the venture capital firm, Flywheel Ventures, making a significant investment in our company."
- David L Bailey
CEO, InteliSum Inc.; co-founder and former CEO, Iomega
"In the two separate fund raising efforts that I have been involved in, the Fund of Funds has been instrumental in seeking out potential investors, providing guidance on how to approach them, being active in setting up meetings and contacts, and getting valuable feedback that helps cut through the 'code' of where interest truly lies. Were it not for the Fund of Funds, many great Utah ideas would go unfunded, companies would wither for lack of capital for growth and expansion, and more jobs and ideas would move out of state. In the case of my current company, we would grow without the funding, but at a very slow pace, and we could not afford the talent level that is necessary to drive development, sales, markets, etc. The Fund of Funds has been great at opening up door that will allow us to get the funding to grow, prosper and bring much-needed jobs and tax revenue dollars into the state. It is a program that should be continued and expanded."
- Dave Hubbard
Founder & CEO, MatchBin.com
"The Utah Fund of Funds has been a valuable resource in identifying venture funds and other potential equity investors in two companies that I am involved with. Currently, discussions with potential investors are proceeding in ways that would never have occurred but for the Fund's assistance. The work being done by the Utah Fund of Funds is a much-needed service for Utah."
- Kent Millington
Entrepreneur in Residence, UVSC; President & CEO, AccessData Corp.
"I have met groups that the Utah Fund of Funds has both invested in and those they have not but that are interested in Utah technology and companies. These meetings have been very helpful and the investors were truly interested in what they heard. Some of the groups have remained interested in my technology and some have not, but I feel the Utah Fund of Funds is an excellent opportunity to link local companies and Centers of Excellence technologies to a wider world of investors, and an opportunity for the investment community to see some unusual and innovative technologies from Utah."
- Dr. Glenn Prestwich
Professor, University of Utah; co-founder, Salus Therapeutics, Sentrx Surgical
Investor Perspectives
"We were interested in working with the Utah Fund of Funds because it provided 5AM with an effective introduction to the State's impressive life science industry at the highest levels. While we have always been aware of Utah's strong resources in the biomedical field, we knew only a fraction of the important people in the state. Within the first year of our relationship, the Utah Fund of Funds has significantly increased our connections to the state's important scientists, entrepreneurs, venture capitalists, academic institutions and governmental officials. We have been very impressed with the State's 'team' effort to grow the life science industry and look forward to building a valuable long-term relationship with Utah."
- Andrew Schwab
Managing Director, 5AM Ventures (San Francisco)
We don't have a 'Utah strategy.' It's an integral part of our focus on investing exclusively in the Intermountain West, which we believe to be the fastest growing venture region in the country, with the greatest momentum. We are excited to be involved in the Utah Fund of Funds because it puts Utah on the radar screen of high quality investment firms that otherwise would not have focused here. Even at $75 million, we're not big enough to fund most of our portfolio companies through to profitability and market leadership by ourselves. What is exciting about the Fund of Funds is that it's opening many doors for co-investment and long-term relationships building. It's not easy to get a lot of these outside firms excited to look at deals here. Now they have an incentive to put their capital to work in Utah. It's the connectivity with other firms, finding quality co-investors and building long-term relationships with them.
- Mark Solon
Founder and Managing Director, Highway 12 Ventures (Boise)
For more information about the Utah Fund of Funds, visit Http://www.utahfof.com or call Jeremy Neilson at 801.521.3072.
Jeremy Neilson serves as managing director for the Utah Fund of Funds. Kimball Thomson is an Alpine-based freelance writer, and president and CEO of Next Phase Communications, an integrated public relations and marketing firm that represents the Utah Fund of Funds.
Jeremy Neilson serves as managing director for the Utah Fund of Funds. Kimball Thomson is an Alpine-based freelance writer, and president and CEO of Next Phase Communications, an integrated public relations and marketing firm that represents the Utah Fund of Funds.
<< Read the first article: Part I: A Local Habitation and a Name
<< Read the second article: Part II: Structured for Maximum Impact
<< Read the third article: Part III: A Portfolio with Purpose
>> Read the fifth article: Part V: Progress and Future of the Utah Fund of Funds
<< Back to 'In The News'
