In The News - February 2008

2008 Utah Legislature Overwhelmingly Passes Utah Fund of Funds $200 Million Expansion

Spurred by the support of the state's entrepreneurs, Utah's House of Representatives passed Senate Bill 11 by a margin of 68-2; Utah Senate voted unanimously (29-0) to expand Fund of Funds program from $100 to $300 million

SALT LAKE CITY (February 19, 2008) - The Utah Fund of Funds (Utah FoF), 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, today announced that recent legislation, Senate Bill 11, Substitute I, has expanded the program by $200 million - from $100 million to $300 million.

"This is a tremendous victory, not only for the Fund of Funds program, but also for the state's growth companies and entrepreneurial economy," said Jeremy Neilson, managing director of the Utah Fund of Funds. "Entrepreneurship is consistently the greatest accelerator of economic growth in Utah, and it is fitting that entrepreneurs played a key role in ensuring passage of this legislation."

Neilson credited strong support from Utah's entrepreneurs - together with strong leadership from Senate sponsor Scott Jenkins, House sponsor David Clark, Senate President John Valentine, Senate Majority Leader Curt Bramble and House Speaker Greg Curtis - for ensuring the program's lopsided margin of victory in the Utah legislature. The Utah House of Representatives voted to expand the program by a 68-2 count, while the state's Senate voted unanimously, 29-0, in favor of the expansion. Numerous Utah entrepreneurial leaders provided key testimony, perspective and endorsements in support of the Utah FoF. "This is a legislative victory with many contributors," added Peggy Wallace, primary House sponsor for the initial Utah Fund of Funds legislation and current member of the Utah Capital Investment Corporation (UCIC), the non-profit board that directs the operations of the Utah FoF. "The Utah Fund of Funds demonstrates the good that can result when leaders in the state's private, public and education sectors come together to propel our economy forward."

The program has received significant support from a broad base of key economic organizations: the Utah Technology Council (UTC), the leading professional organization for the state's information technology and life science; the Wayne Brown Institute (WBI), which prepares companies to receive venture capital funding; the Utah Science and Technology Research (USTAR) initiative, designed to commercialize world-class research at the state's research institutions; the Governor's Office of Economic Development; and the Economic Development Corporation of Utah (EDCUtah).

News of the Utah Legislature's vote was received with gratitude by Utah's entrepreneurial community.

"We appreciate the Utah Legislature and its commitment to and belief in the state's entrepreneurs," said Tom Hogan, CEO of Revinetix, which recently completed a funding round led by Utah FoF portfolio firm RWI, based in Silicon Valley. "Just as the Utah Fund of Funds is helping our company realize our intention to grow and triple the number of Utah employees in high-paying jobs, expanding the program will allow far more Utah entrepreneurs to achieve their goals and potential."

Equipped with significantly expanded resources, the Utah FoF now has the opportunity to build upon its dynamic beginnings. From late 2005 to the end of the third quarter of 2007:

Utah Fund of Funds portfolio firms had invested $127 million in 25 Utah companies
In total, Utah FoF portfolio firms helped these Utah companies raise $365 million
These 25 companies have created a total of 1,006 jobs, with an annual average salary of $60,000 - far above the Utah average wage
359 Utah companies had been reviewed by Utah FoF portfolio firms
Partners at the program's out-of-state portfolio firms had spent a total of 290 days in Utah
170 funds had applied to the Utah FoF program
20 high-quality venture capital/private equity firms have been selected as Utah FoF portfolio firms, including seven Utah firms (three of which are new firms)

Utah Governor Jon M. Huntsman is expected to sign Senate Bill 11, Substitute I, into law in March 2008.

About the 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 and entrepreneurial ventures. 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 in the state.

Press Contact:

Kimball Thomson
Next Phase Communications (for the Utah Fund of Funds)
801.918.3637
kthomson@npcomm.com