Canopy Ventures II will have $100 million to invest in fast-growing companies with technologies that have potential to shake up their industries and drive sales higher, managing director Ron Heinz said Monday.

The largest limited partner in Canopy Ventures II is the family of legendary entrepreneur Ray Noorda, who founded Novell Inc. and was chief executive officer of the software company for 12 years until 1995.

Canopy's first investment fund, Canopy Ventures I, has 11 companies in its portfolio. Most are Utah-based information-technology companies. Heinz said the second fund will widen its focus to include life-science businesses such as medical-device companies or pharmaceutical firms.

"We've seen a lot of growth here in Utah in the life-sciences community, especially out of the University of Utah. The business climate is right for great innovation," Heinz said.

A second reason arises out of the importance Noorda's family puts on medical and pharmaceutical research. Noorda died of complications related to Alzheimer's disease in 2006.

"The Canopy Group has some personal interest in this space," Heinz said.

It's likely Canopy Ventures II will invest even more heavily in Utah companies. Typical investment amounts will be in the $1 million to $4 million range, he said.

Returns on investments made by the first Canopy fund usually exceed 20 percent a year until the companies are sold to bigger companies or launch initial public offerings of stock.

Heinz said the 20 percent figure will be "a minimum benchmark" for future investments.

pbeebe@sltrib.com