Utah entrepreneurs and investors have a new resource. Welcome to Grow Utah Ventures (www.growutahventures.com). 

A year ago, as an interested party and as a new UITA trustee, I recognized that once technology based startup companies spent their own money and that of family and friends, they generally had nowhere else to go to secure early stage equity capital. Even though Utah has successfully fostered the growth of multiple well-financed venture capital firms, including Wasatch Venture, vSpring Capital, UV Partners, Sorenson Capital and others, these organizations have historically focused their efforts on later- stage investments. 

Seeing the gap and critical need in the Utah IT industry and having the resources to tackle this financial problem head on, Grow Utah Ventures (GUV) has established three key initiatives: (1) communicate to entrepreneurs there are new resources to help them; (2) invest in early stage companies; (3) rally the support of others who can help.

To date, Grow Utah Ventures has been actively spreading the word that we are here to help. Our database of interested parties grows daily. We have also provided free educational classes for entrepreneurs from Provo to Ogden. So far, more than 100 individuals have attended eight weeks of training. During 2005, GUV invested in 30 early stage technology companies, many of which are now experiencing increased sales revenues. This effort alone should have a significant impact on future economic development in Utah. As to our rally initiative, we recently announced the formation of new angel investment groups that will partner with Grow Utah Ventures.

For a number of years, there has been one successful angel group operating out of Utah County, the Utah Angels (www.utahangels.org).

Recently, Grow Utah Ventures helped spur the recent launch of the Olympus Angels, the Salt Lake area’s first organized angel investment group. Headed by Jim Ellsworth, a former CEO of Surety Life, Olympus Angels is a model for similar groups we are helping to develop in Logan, Ogden/Kaysville, Cedar City and St. George. By spring of 2006, we hope these five new Angel groups, with approximately 20 participants each, will be organized and considering investment opportunities.

Just imagine with me, an angel program with 100 participants each investing $25,000 a year. That’s $2.5 million in available investment capital earmarked for early stage companies, annually. These funds coupled with GUV funds will go a long way over the next four years, toward achieving our goal of helping nearly 100 new firms.

In many cases, these companies will grow to a point where, if needed, they can seek additional funding from the traditional venture capital organizations, and may become the next tier of leading companies that employ thousands of individuals.

The possibilities are tremendous. And in a region already known for its business leadership, Grow Utah Ventures can contribute to an even greater level of future economic and IT industry growth for Utah.

Entrepreneurs and entrepreneurial investors who would like to connect with Grow Utah Ventures may start that process by filling out a brief inquiry form on www.growutahventures.com.

For more information about UITA and UITA programs, readers can visit www.uita.org.

Alan E. Hall is a UITA Trustee, UITA Angel Board Chair Founder, Chairman of Grow Utah Ventures Chair and Chairman and CEO of MarketStar Corporation.