Fund of Funds
The Utah Fund of Funds 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 2008, more than 200 funds had applied to the Program, from which 20 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.
Thus far in the program, Utah Fund of Funds portfolio firms have completed 359 in-depth reviews of Utah companies and selected 25 to receive funding. Over $127 million has been invested in these companies, and the portfolio firms have helped them raise an additional $365 million through further syndication. Most importantly, these 25 companies have created a total of 1,006 jobs, with an annual average salary of approximately $60,000-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 growth-stage companies. In addition to providing enhanced access to a greater number and diversity of funding sources, Utah Fund of Funds works directly to match the state's entrepreneurs and growth companies with appropriate VC/private equity firms and business mentors.