The number of dollars that poured into 10 Utah businesses during the quarter was 48 percent higher than in the same period of last year, according to a PricewaterhouseCoopers MoneyTree Survey released Monday.
The amount was also the largest quarterly investment since the second quarter of 2005, when eight companies brought in $103.14 million. And it was the second-biggest gamble by venture capitalists on Utah companies since the first quarter of 2001.
"What is even more favorable is the diversity of investment sectors. In 2007, companies in Utah in the software, life sciences, telecommunications and financial services industries all received venture funding," said Emily Mendell, vice president of strategic affairs for the National Venture Capital Association in Virginia.
Move Networks Inc., an American Fork-based provider of video streaming services, landed the biggest deal, a $40.1 million investment from three venture capital companies.
"Move Networks is probably one of the best-kept secrets in Utah right now, with online video being one of the hottest markets, and we are just really glad to be in that space," said Mary Kay Evans, a spokesperson for the year-old company.
In second place was Extended Health Inc., a Salt Lake City-based insurance broker, which received $15 million from two investors.
Among the states, Utah ranked No. 15 in the total value of the investments made in U.S. firms during the July-through-September quarter. Among western states, only California ($3.27 billion), Washington ($235.62 million) and Colorado ($196.63 million) brought in more.
"It indicates a continued steady growth in investments in Utah technology companies, probably reflecting the entrepreneurial energy and enthusiasm that has emerged in Utah Valley and Salt Lake Valley," said Gary Crocker, president of Crocker Ventures LLC, a Salt Lake venture capital investment firm.
Other Utah companies that took in money from venture capital investors were Infopia Inc., a Salt Lake e-commerce company ($9.44 million); Venafi Inc., a Sandy encryption technology business ($4 million); Zane Benefits Inc., a Park City health benefits provider ($2.6 million).
NetVision Inc., an American Fork identity management firm ($2.2 million); BioMicro Systems Inc., a Salt Lake provider of biological research products ($1.7 million); World Vital Records, an online genealogical research tool based in Provo ($1.2 million); iArchives Inc., a Lindon company that digitizes archival materials ($1.1 million); and Public Engines Inc., a Salt Lake software developer (1.04 million).
Twenty Five Utah companies have raised a total of $161.09 million since January, enough to rank the state at No. 19, according to the MoneyTree survey.
pbeebe@sltrib.com
