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Economic Development in Rural UtahThrough Entrepreneurism
Alan E. Hall
Chairman
Grow Utah Ventures
Presentation Agenda
MarketStar Corporation
The Hall Foundation
Grow Utah Ventures
Junto Student Program
Top of Utah Angels
Suggestions
MarketStar Corporation Founded in Utah 1988 as an
outsourced sales and marketing company
Successfully operated for 17 years
E & Y Entrepreneur of the year 17th Largest Utah employer (Utah
Biz- May 2004)
Launched some 250 companies
Operations in 100 countries
Clients: Leading technology companies, consumer electronics
Responsible for some $8.5 billion in client sales
Global work force of 2,500 employees
Owned by Omnicom Group
Publicly trade company
Leader of acquisitions for Omnicom’s Channel Trade Group
Alan and Jeanne Hall Foundation
“That there be no poor among us” Food Bank
Health Care
Housing
Education
After school programs
Emergency Services
Scholarships
Introduction
People Want to Be Entrepreneurs
Four in every ten adults will attempt to start a business.
Annually 3.5 million businesses are started[2]
70% of high school seniors want to own their own business. ]
1,800 colleges, universities and community colleges offer entrepreneurial courses
It doesn’t take much to start a business:
57% of Inc. 500 started with less than $20k
53% of Inc. 500 funded with own funds
Only 12% of Inc. 500 obtained venture capital
[
Why? Personal Rewards
69% of entrepreneurs say “They love what they are doing for a living.
They report the highest levels of job satisfaction, challenge, pride, and remuneration
Work is invigorating, meaningful and energizing
It drives self-sufficiency, economic independence, and a self-determined way of life
Rewards are based on performance
[1] Robert Starch, poll of INC 500 company founders from 1992-1996
Entrepreneurs Need Help!
Entrepreneurs Cultivate Encourage
Training Serial
entrepreneurs Tools
Support Mentors Forums
Funding Early stage Just enough
Networking/ Alliances Sales help
Key partners
Entrepreneurial Entrepreneurial ResearchResearch
GUV Initiatives
Increase Increase Available Available
FundsFunds
Educate and Educate and Build Build
AwarenessAwareness
Funding Funding EntrepreneursEntrepreneurs
Cultivate Cultivate EntrepreneursEntrepreneurs
Entrepreneurial Entrepreneurial Training Training
Need for Early Stage Funding
Angel
• Proof concept
• Product dev• Mgt Team
Seed/Start-Up
• Complete prod dev
• Initial marketing
• Planning • First sales
Early Growth
• Production• Facilities • Increasing
sales • No profits
2nd Stage
• Working capital
• Expand market presence
Conditioning
• Encourage entrepreneurs
• Train entrepreneurs
• Business concepts
• Business incubation
Other available funds
Focus of Grow Utah Ventures
Our Areas of Expertise
What types of What types of industries will you industries will you invest in? invest in?
Technology Consumer electronics Sales and marketing Consumer and business data
What Works Best for US
What is the What is the preferred preferred situation? situation?
Investments from $50k - $1.0 million
Given in stages Sales from $500K and up 1/3 ownership Board seat Significant involvement Liquidation event Repeat the process
Portfolio of Companies To date
Mobile Optics – video technology
TecServ – security software
Primary Intelligence – sales analysis
Sharp Analytics – data base analysis
Elemental Business – lead generation
Chappelle - publishing
1-800-Patches – drug delivery
The JUNTO Student Program
Free entrepreneurial educational classesOne class a week for six weeks, three hour sessions
Syllabus developed by successful entrepreneurs
College students from Provo to Logan
100 applied, 55 were accepted
28 students learned they were not entrepreneurs
Ten students were given $50,000 eachDevelop a business in next 18 months.
There will be a new program every spring.
Top of Utah Angels
Benefits
Generate funds for early stage
Better investment opportunities for individuals
Reduced time commitment of angels
Utah businesses funded
Increase number of successful entrepreneurs
GUVManagement
Individual Angels
Deal Flow
Deal Scrub
Deal Structure
Top of Utah
Deal Governance
Starting Angel Groups
Need a startup champion
Need working leadershipPromoting deal flow
Managing the process
Managing operations
Outreach to community
(Sources of deals, VCs, other angel groups
(E-ship Centers, portfolio companies)
Action Steps- What’s Needed
Founders’ commitment Expand membership Consideration of organizational designFormation of Angel GroupSecure funding commitmentsMeet potential portfolio companies Invest in companiesFollow up
Salt Lake City Olympus Angels
Formed July 2005
Twenty members and growing
Accredited Investors
Wide range of professional experiences
They will meet monthly to entertain entrepreneurs
They have an attorney and CPA on the team
They are enthusiastic and ready to invest
Suggestions
Believe in the economic value to your community of starting and growing businesses
Seek out private sector “champions” that are willing to lead your entrepreneurial efforts
Find your local entrepreneurs and investors
Grow Utah Ventures is willing to assist with Educational seminars for entrepreneurs and angels
Counseling and advise
Bring new businesses to your communities.
Contact Information
www.growutahventures.com
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