UTAH FUND OF FUNDS The Utah Fund of Funds (Utah FoF; Http://www.UtahFoF.com) was created by the Utah Legislature to maximize the amount, quality and diversity of capital funding available to early-stage and growth-stage companies in the state to help them grow, prosper and mature in Utah. Rather than investing directly in specific companies, the Fund of Funds program is structured to incent high-quality professional venture capital firms within and outside the state to focus more of their investment efforts on Utah entrepreneurs. The Utah FoF invests in these carefully chosen venture firms, which then commit to work closely with Utah companies and entrepreneurs - with the ultimate goal of funding promising ventures. Financing The Utah Utah FoF financing is provided by a third party, and is backed by refundable, transferable, contingent State of Utah tax credits approved by the Utah Legislature. The first “Capital is the life-blood of the $100 million round of the Utah Utah FoF was financed by Deutsche Bank. The program is structured to be financially self-sustaining, with profits biomedical industry. The Utah from Utah FoF investments paying back financers. Only in the case of a Fund of Funds will do more to shortfall, which is not anticipated, would the state be required to place attract capital to innovative life tax credit funds into the Utah FoF. No appropriated dollars from the science companies in the state State of Utah are used to finance this program. Proposals from more than any other single industry or than 30 financial institutions were evaluated with Deutsche Bank being government effort.” selected to provide the initial financing. David Clark President & CEO, Prolexys Pharmaceuticals
Structure The Utah FoF is governed by two boards that oversee and report on the fund’s activities, which are primarily executed by the program’s staff, led by the Utah FoF managing director, with support from a professional investment advisor firm. The Utah Fund of Funds Portfolio As of August 2007, Utah FoF portfolio consists of 15 investment firms, ranging from seed stage to laterstage growth companies, and across a variety of industry areas, from life sciences and information technology to retail, consumer and business services. The Utah FoF is developing a diversified portfolio regarding investment stage, industry specialty, geographic focus (in addition to Utah) and vintage year, resulting from 20 or more fund investments by early 2008. http://utahfundoffunds.com/portfolio.html Early Success of Utah Fund of Funds State
Program Size
Number of Local Companies Funded by Portfolio Funds
Number of State Jobs Created
Average Number of Deals per Year
Oklahoma
12
$99 M
19
1093
1.58
New Mexico
14
$500 M
38
1928
2.71
Tri State I (KY, OH, IN)
6
$40 M
32
N/A
5.33
Iowa
2
$200 M
1
N/A
0.50
Oregon
2
$100 M
5
289
2.50
Ohio Utah Fund I (Current)
48
Program Years
2
$150 M
8
N/A
4.00
1.5
$100 M
23
974
15.33
Governor’s Office of Economic Development • Annual Report 2007
