The MountainWest Venture Group once again has published its annual Deal Flow Report, a document chronicling monies raised by Utah companies during the prior year through public offerings, venture capital/private equity (VC/PE) sources, other funding sources, and/or that completed merger or acquisition transactions.
Now in its seventh year, the MWVG Deal Flow Report provides a valuable barometer of funding/financing activity in the state.
As expected, 2002 saw a significant decline in total funding activities versus 2001, dropping to $3.33 billion versus $4.99 in 2002, a 33 percent drop-off.
Interestingly, Utah saw two members of its tech community complete two of only 19 initial public offerings in the United States in 2002 — Lindon-based Altiris and Salt Lake City-based Overstock.com, — with the Altiris IPO raising $50 million and Overstock.com raising $39 million in its IPO.
Unfortunately, space constraints will not allow me to analyze all 2002 technology company fundings in this column, so I will focus on the 2002 venture capital/private equity activity in Utah.
For example, a total of 31 high tech companies in Utah raised $156.77 million in 2002 from VC/PE sources, an average of $5.06 million per company.
This compares to $318.3 million raised by 43 Utah tech companies in 2001 through VC/PE or a total of $7.4 million raised per company funded.
In other words, there were 39 percent more tech companies that raised venture capital or private equity money in 2001 versus 2002, and those companies that raised VC/PE money in 2001 raised 46 percent more than their Utah counterparts did in 2002.
Additionally, 17 of Utah's high tech companies raised VC/PE monies in both 2001 and 2002.
Of these 17 tech firms, six raised virtually the same amount both years: some more in one year than the other, and some in one deal one year and multiple deals in the other, but basically the amounts raised both years by these companies were similar enough to not warrant number-crunching.
Which leaves 11 firms.
Of these 11 companies, eight raised less money in 2002 than in 2001. On the low-end of the scale, PowerQuest raised 96 percent less money from VC/PE sources in 2002 versus 2001: $219,000 versus $5.27 million, respectively.
Of the three remaining Utah tech firms that raised VC/PE money in both 2001 and 2002, the high-water mark was achieved by WOW Digital TV which landed 62.5 times the money in 2002 versus what it raised in 2001: $10 million versus $160,000, respectively.
Found below is an alphabetical listing of each Utah technology company that raised money in 2002 via a public offering or through a VC/PE source, including city where the firm is based, the amount raised, and its Web site address.
High-tech companies
Public Offerings:
Altiris, Lindon, $50 million, www.altiris.com
Overstock.com, SLC, $39 million, www.overstock.com
Venture Capital/Private Equity:
Agilix Labs, Provo, $1.4 million, www.agilix.com
Altiris, Lindon, $23.3 million, www.altiris.com
American Pioneer Financial (LowRatesUSA), Bluffdale, $453,000, www.lowratesusa.com
Attensity, SLC, $3.4 million, www.attensity.com
Avinti, Provo, $400,000, www.avinti.com
Cerberian, Draper, $2.5 million, www.cerberian.com
E-BusinessControls, SLC, $200,000, www.e-businesscontrols.com
Echopass, SLC, $14.1 million, www.echopass.com
FatPipe Networks, $3.2 million, www.fatpipeinc.com
First Choice Solutions, SLC, $850,000, www.firstchoiceusa.com
Fonix, Draper, $10.7 million, www.fonix.com
FutureSmart Networks, Draper, $4.6 million, www.futuresmart.com
Geolux Communications, Lindon, $4.9 million, www.geolux.com
GlobalSim, $900,000, Draper, www.globalsim.com
Ingeo Systems, Logan, $2.4 million, www.ingeo.com
Linux Networx, Sandy, $11.1 million, www.linuxnetworx.com
NetDocuments, SLC, $250,000, www.netdocuments.com
Northface University, SLC, $1.5 million, www.northfacelearning.com
Omniture, Orem, $500,000, www.omniture.com
packetPointe Technologies, SLC, $2.5 million, www.packetpointe.com
Perimeter Data, SLC, $1.5 million, www.perimeterdata.com
Phonex Broadband, Midvale, $9.6 million, www.phonex.com
PowerQuest, Orem, $219,000, www.powerquest.com
ProPay, Orem, $339,000, www.propay.com
Rappore Technologies, Orem, $4 million, www.rappore.com
Sorotoni, Draper, $130,000, www.sorotoni.com
STSN, Midvale, $21 million, www.stsn.com
Verticore Technologies, SLC, $125,000, www.verticore.com
Videolocity, Park City, $20.2 million, www.videolocity.com
Vultus, Lindon, $500,000, www.vultus.com
WOW Digital Television, South Jordan, $10 million, www.wow.tv
This year, for the first time, I've also included in this now annual column a breakout on monies raised by Utah companies that most accurately fit into the Life Sciences industries.
Here, as with the high-tech breakout above, I have only included firms that either completed public offerings in 2002 or raised VC/PE monies during the year.
For the record, 11 life science companies raised $31.93 million VC/PE deals during 2002 or an average of $2.9 million per company, which is 43 percent less raised (on average) than their high tech counterparts. Interesting.
For additional information on the 2002 Utah Deal Flow Report, you can visit www.mwvgutah100.org.
Public Offerings:
Myriad Genetics, SLC, $57.3 million, www.myriad.com
NPS Pharmaceuticals, SLC, $110.2 million, www.npsp.com
Venture Capital/Private Equity:
Bionic Technologies, SLC, $5 million, www.bionictech.com
EmerGen, SLC, $500,000, www.emergen.com
MacroMed, Sandy, $1.5 million, www.macromed.com
MediConnect.net, South Jordan, $2.5 million, www.mediconnect.net
MedQuest Products, SLC, $2.4 million, www.medquest-inc.com
P5, SLC, $1 million, www.p5ehs.com
Paradigm Medical Industries, SLC, $631,000, www.paradigm-medical.com
Pharmadigm, SLC, $3.5 million, www.pharmadigm.com
Salus Therapeutics, SLC, $3.4 million, www.salustherapeutics.com
Specialized Health Products International, Bountiful, $5 million, www.shpi.com
ZARS, SLC, $6.5 million, www.zars.com
David Politis leads Politis Communications, a public relations, investor relations and marketing communications agency serving the high-tech and biotech markets.
E-mail:dpolitis@politis.com.