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 $100 million round of the Utah Utah FoF was financed by Deutsche Bank. The program is structured to be financially self-sustaining, with profits from Utah FoF investments paying back financers. Only in the case of a shortfall, which is not anticipated, would the state be required to place tax credit funds into the Utah FoF. No appropriated dollars from the State of Utah are used to finance this program. Proposals from more than 30 financial institutions were evaluated with Deutsche Bank being selected to provide the initial financing.

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

“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

Early Success of Utah Fund of Funds

State Program YearsProgram Size Number of Local Companies Funded byPortfolio Funds Number of State Jobs Created

Average Number of Deals per Year Oklahoma 12 New Mexico 14 $99 M 19 $500 M 38 1093 1928 1.58 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

Ohio 2 $100 M 5 289 2.50

2 $150 M 8 N/A 4.00

Utah Fund I (Current) 1.5 $100 M 23 974 15.33