Utah Fund of Funds

June 4, 2009

Annual Event

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Primary Objectives of the Utah Fund of Funds

1. Increase entrepreneurial economic development within Utah

2. Fill key gaps between Utah’s emerging industries and the state’s venture capital infrastructure

3. Assist Utah companies connect to a broader spectrum of venture capital firms who have specialized experience and are committed to investing in Utah businesses

4. Achieve the goals above without invoking tax credits, or state funds

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Oversight and Management of the Utah Fund of Funds

Deutsche Bank invests $100 million in Utah Fund of Funds Entity.

Utah Capital Investment Board (UCIB)

Utah Capital Investment Corporation (UCIC)

LP Capital Advisors

UTAH FUND OF FUNDS

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Utah Fund of Funds Mgmt• Jeremy Neilson – Managing Director

– Mr. Neilson holds a BA from BYU, a JD from Wake Forest School of Law and an MBA from the University of Utah. Mr. Neilson has been with the Utah FoF from inception

• Matthew Peterson – Associate– Mr. Peterson holds a BA in Finance from the

University of Utah and has 5 years of finance and mergers and acquisitions experience

• Tamee Roberts – Project Manager & Gov’t Relations– Ms. Roberts has 7 years of government

experience working for Gov. Leavitt, Utah’s incentives program and the Utah Fund of Funds

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Utah Capital Investment Corporation

Board of Directors• Geoff Woolley – 20+ years as venture capitalist• Frank Trumbower – 20+ years as venture

capitalist and investment banker• Will West – Serial entrepreneur having raised over

$250 Million in venture funding • Fred Lane – 30+ years as Investment Banker and

M&A expert• Ed Alter – Former State of Utah Treasurer and Utah

Retirement Systems board member• Peggy Wallace – 20+ years in banking and former

Utah State Representative• Richard Nelson – President and CEO of Utah’s

technology association and former State of Utah incentive director

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Utah Fund of Funds AdvisorLP Capital Advisors

• Advise 6 clients that manage over $53 Billion in private equity allocation

• Opened a Salt Lake City office

• Richard Pugmire manages LP Capital Advisors’ Salt Lake City Office

- Richard returned to Utah after spending 4 years at Ford Motor Company in their pension and investment division

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Utah Fund of Funds Update:Investments

• Twenty Four fund commitments • $107 M committed • Investment Pace:

– 2006 – Nine fund commitments– 2007 – Eight fund commitments– 2008 – Four fund commitments– 2009 – Three fund commitments (to

date)• Over 400 Funds have pitched to the

FoF As of May 2009

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Utah Fund of Funds Update:Investments

Utah FoF Current Allocation: as of May 2009

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Utah Fund of Funds Update:Investments

Utah FoF Target Allocation

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Economic Development

As of May 2009

• 27 Active Companies

• 2,020 Jobs

• $63K Average Salary

• $165 M in direct investment from portfolio

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Utah FoF Referrals

• TopTenREVIEWS, a Utah-based technology company, through an introduction made by Utah's Fund of Funds, received $6 million from venture capital firms Highway 12 Ventures and Village Ventures.

• Allocure credited the Utah FoF program for providing introductions during the fundraising process. “The Utah Fund of Funds team provided direction in matching Allocure with the right funding source,” said Wirthlin. “SV Life Sciences was an ideal lead for our A round, and also brought a great international firm, Novo Ventures, to the table.”

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Notable Utah Companies

• Move Networks: Raised $93 M to date from Hummer Winblad, Benchmark, Steamboat Ventures, Cisco Systems, and Comcast Interactive Capital.

• Fusion IO: Raised $66.5 M to date from NEA, Lightspeed Venture Partners, Dell Ventures, Sumitomo Ventures, UV Partners and Mercato Partners.

• Skullcandy: Skullcandy experienced impressive 140% growth this past year with 239% annual growth internationally and is now selling in 55 countries. Sold a minority interest to Goode Partners.

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Trying to Imitate the Utah FoF

• States that have inquired about the Utah Fund of Funds structure and success

• Colorado• Maine • Idaho• Washington• Montana • Iowa• Vermont

• Arizona• So. Carolina• Wisconsin• Oregon• Hawaii• Michigan• Panama

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Utah Based FundsFlush with Cash

Last 24 Months

• UV Partners: $117 Million• Epic Ventures: $70 Million • vSpring Capital: $150 Million• Mercato Partners: $53 Million• Sorenson Capital: $400+ Million• Peterson Partners: $100+ Million• DW Healthcare Partners: $100+ Million

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University Venture Fund• Independent venture fund that leverages

a team of students from around the country.– $18 M under management.– Student associates perform investment

research, financial analysis, and conduct due diligence, for free.

– Fund seeks to co-invest small dollar amounts (under $1 Million) with venture capital and private equity.

– Many top venture and private equity firms have leveraged the students research

• DFJ• Kleiner Perkins• Fenway Partners• Opus

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SVB Opened a SLC Office

• August 2008 – SVB hires a full-time team member based in SLC – Gary Jackson

• First new SVB office in 8 yearsPress Release – August 2008"Our strategy is to have a local presence in those areas with a significant concentration of technology, life science and venture capital worldwide, and we see plenty of opportunity in Utah," said Greg Becker, president of Silicon Valley Bank. "We've been engaged in Utah for years and have watched it grow into a vibrant technology market.”

Utah has seen and encouraged impressive growth among technology and life science companies in recent years and the state's local venture capital presence is growing. Helping with this acceleration is the Utah state sponsored Fund of Funds…

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GOED’s Incentive Program

• Post performance refundable tax credits for jobs created – Move company to Utah or expand

company within Utah• Economic Development Tax Increment

Financing (EDTIF)– Up to 30% of all State of Utah taxes paid

• Renewable Energy Development Incentive (REDI)

– Up to 100% of all State of Utah taxes paid

Utah Fund of Funds

June 4, 2009

Annual Event