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

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