Since 2000, Utah venture capital resources have grown from $300 million under management to over $3.5 Billion. The number of venture funds in the State has increased from 3 to 16 (15 with money) and at least 3 more under development.
In order to capitalize and preserve the VC phenomenon, and continue to solve Utah companies' cash needs, the following list of economic development programs/ideas would showcase Governor Herbert's desire to help expand and create business in Utah. These suggestions are not offered as replacements for existing programs, but as enhancements to GOED's economic development arsenal.
Revolving Loan Fund. A statewide RLF that syndicates with, and provides technical assistance to, local RLFs inventure debt. This would immediately bring millions to bear for exciting new and existing businesses. Salt Lake County has led the way with its RLF with great success.
Manufacturing Extension Partnership. MEP is Utah's only verifiable resource for sales and process improvement for Utah business. MEP has dramatically reduced manufacturers ' failure rates, and is rated the top MEP in the nation. Manufacturing jobs are the highest paying in the State.
Business Resource Centers. BRC unites and promotes Utah's business assistance services under one banner. It will improve service, deliver to, impact from, and access for, Utah's traditional small businesses.
Coldwell Banker - Strategic Services Partnership. Coldwell is the only Utah Realtor with reach to major (boots on the street) US markets, including Silicon Valley. Also, Coldwell is the only Realtor with a national relocation arm, M&A arm, and integrated residential, commercial, industrial and investment departments. Consequently, they arecurrently the source of economic data and collateral information for EDCU. Lastly, they are the only local Realtor that has demonstrated an understanding of the infrastructure needs of the high tech community.
Utah Fund of Funds. Utah Fund of Funds has had great success, but needs to monetize the $200 million of tax credits it received from the legislature last year. Governor Herbert could be instrumental in making that a reality by using his cache with the URS, and the State's various Industrial Loan Corporations (ILCs).
Angel Incentives. While Utah's various angels would like a tax credit for investment, what they want first is an elimination of capital gains on their successful investments in small businesses.
Angel Group Involvement. Utah has at least 6 angel groups all worthy of State support. These groups have investedin is no less than 20 Utah deals in what is the toughest time in the history of the venture capital industry.
SBIR Center. Established through USTAR, this center is assisting Utah companies get federal grants from only one federal program. This should be expanded, not only to increase SBIR participation, but to include other federal granting programs.
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Bradley B. Bertoch is a leader in equity backed business development, and entrepreneurship. Under his direction, companies participating in Institute programs have raised almost $2 billion in private equity and created or retained over 35,000 high tech jobs throughout the United States. Read more about The Wayne Brown Institute at http://www.venturecapital.org/
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