PricewaterhouseCoopers just released its quarterly venture capital report, which shows venture capital investments in Utah were down. Again.
For the quarter, venture capital investments in Utah tallied only $25 million from six deals, representing the worst venture financing quarter in the state since the first quarter of 2004.
By comparison, the national level of investment increased to $7.1 billion, representing the best quarter since the second quarter of 2001.
The divergence in the paths of the state vis a vis national venture capital, however, should be short lived. Utah's Fund of Funds is just being deployed. Furthermore, big out of state funds are just now beginning to realize successful exits on earlier investments in Utah. They'll be back.
For the last duration, most of Utah's funds have been in a fundraising mode. From my discussions with fund managers, it appears that they'll be ready to start investing soon.
Add to that, the addition of the Mercato Partners, a new, Utah-based fund, I think we can expect a big shift in venture fundings by the end of the year.
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