Utah Fund of Funds

The Utah Fund of Funds (Utah FoF) is a major economic development program created by the Utah Legislature to provide the state’s entrepreneurs with access to a broad array of quality funding sources. With an initial charter of $100 million approved in 2003, the fund invests in quality venture capital/private equity firms, which in turn explore investments in promising Utah entrepreneurial growth companies. In the 2008 session, the state legislature augmented the program with an additional $200 million.

As of July 2009, more than 500 funds had applied to the Program, from which 26 high-quality venture capital/ private equity firms had been selected as portfolio firms, including seven from Utah. Partners at out of state firms commit to spend a predetermined amount of days in Utah, helping that fund build a strong network of Utah business leaders, entrepreneurs and companies.

Select Company Highlights Success

Allocure-

Allocure Inc., a Salt Lake City biotechnology company developing a stem cell therapy for severe kidney injuries, has received $14.5 million from two venture capital companies. “Allocure has not only established itself as a leader in developing cell therapies to treat kidney patients, they have also built an attractive and sound business models addressing this growing and unmet medical need,” said Lutz Giebel managing partner of SV Life sciences.

Allocure was introduced to SV life Sciences by Jeremy Neilson, managing director of Utah Fund of Funds, an economic development program established by the legislature in 2003 to help business attract investments from out-of-state venture capital firms that typically overlook Utah in favor of better known technology regions. The Fund of Funds invests in venture capital funds willing to bankroll new Utah Technology and medical science business. (Salt lake Tribune 07/10/2008 “Allocure relieved $14.5 M backing: Utah’s Fund of Funds introduces stem cell company to investors)

Top Ten Reviews-

TopTenREVIEWS, a Utah based technology company, announced its plans to expand its online review site and increase its workforce. Through an introduction made by Utah’s Fund of Funds, a state economic development program, the company received $6 million from venture capital firms Highway 12 Ventures and Village Ventures. TopTenREVIEWS.com is a comprehensive review site providing consumers with side-by-side product and pricing comparisons to help them research, shop and purchase technology and entertainment products and services (NEWS @PEHUB 07-02-2008 TopTenReviews Raises $6 Million).

Thus far in the program, Utah FoF portfolio firms have completed 823 in-depth reviews of Utah companies and selected 31 to receive funding. Over $179 million has been invested in these companies, and the portfolio firms have helped them raise an additional $449 million through further syndication. Most importantly, these 31 companies have created a total of 2007 jobs, with an annual average salary of approximately $63,000—far above the Utah average wage.

Utah’s information technology and biosciences sectors have enjoyed significant growth and heightened interest with the help of the program’s impact on both early-stage and growthstage companies. In addition to providing enhanced access to a greater number and diversity of funding sources, Utah FoF works directly to match the state’s entrepreneurs and growth companies with appropriate VC/private equity firms and business mentors.