Utah Fund of Funds Economic Performance Dramatically Outpaces Federal Stimulus Investment

SALT LAKE CITY, Nov. 2 /PRNewswire/ -- The Utah Fund of Funds (Utah FoF), an innovative program created by the Utah State Legislature to foster entrepreneurship by increasing the amount and diversity of capital available to Utah's established, growth and emerging companies, today announced that the program's economic development effectiveness is far greater than that of the federal stimulus money.

Thus far, Utah's stimulus aid of just under $520 million spent as of the end of September had resulted in retaining or creating 4,164 jobs--approximately eight jobs per million dollars spent. In contrast, the Utah Fund of Funds program has resulted in 2,047 jobs, based on the $60 million deployed as of September 30 by the Fund of Funds program of its $100 million first fund. The Fund of Funds investment has thus far resulted in more than 34 jobs per million dollars spent, approximately 4.26 times the level of job creation provided by the federal stimulus money.

"The performance of the Fund of Funds is a boon to Utah and its entrepreneurial economy, and a testament to the farsightedness of the Utah legislature," said Jeremy Neilson, managing director of the Utah Fund of Funds. "Because of the legislature's efforts to provide growth capital to the state's growth companies, Utah innovation leaders have access to much-needed capital and relationships in this time of sustained economic challenge."

In addition to the number of jobs created through the Utah Fund of Funds program, growth companies in the state have benefitted from exceptionally high-quality jobs. The average salary of the jobs created with the benefit of the program is $63,354, substantially higher than the average Utah salary. The Fund of Funds has also provided Utah growth companies with significant fund-raising opportunities: 37 Utah companies have raised $191,737,758 from the program's portfolio firms, and in excess of $700 million from the portfolio firms and their syndicate partners.

About the Utah Fund of Funds
The Utah Fund of Funds is an innovative economic development program created by the Utah State Legislature to foster entrepreneurship by increasing the amount and diversity of capital available to Utah's established, growth and emerging companies. The program was initially established with the passage of Utah House Bill 240 ("The Venture Capital Enhancement Act") with $100 million of contingent tax credits. In 2008, the Utah Legislature voted to bring the total under the program's management to $300 million. The Fund of Funds invests in strong-performing venture capital/private equity firms, which in turn explore investments in promising Utah companies.

    Press Contact:

    Kimball Thomson
    Utah Fund of Funds
    801.918.3637
    kthomson@npcomm.com