Northern Utah is developing a reputation nationally as the next Silicon Valley. From Q3 2015 to Q3 2016, more than $627 million was invested in startup companies in Utah, according to data published by PricewaterhouseCoopers, LLC. This amount is still small compared to California, but we were No. 7 in the nation in 2014 for the total number of dollars spent in funding new tech companies.
Angel List, a website for investors, startup companies and job seekers, listed 145 new startup companies for 2016 in Salt Lake City alone. Our highly educated workforce and the neighbor-like atmosphere of our business community help draw the latest ideas and innovators in the tech industry to the state. In other words, a financial and communal support system is here, and entrepreneurs are taking advantage of it. And based on the pace of this growth, there’s little indication that the startup growth trend in Utah will change anytime in the near future.
Evaluate your own situation
Startup companies typically need investors to get going for those first initial years. Many of the investors in Utah’s new enterprises are locals who seek new business opportunities. Some are motivated to support the local economy, some to support endeavors about which they are passionate, and still others are encouraged by the success stories covered by the media. This final group often contains individuals who hope to capitalize on the tech industry; they take the time to research the startup before they make the decision to invest.
I agree it’s important for investors to develop metrics to measure business growth before they put their money forward for investing. However, the decision to invest needs to go much further than having the capital on hand to…