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