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Utah embraces its tech startups by taking a piece of the action

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Utah embraces its tech startups by taking a piece of the action


Question: When is gambling not just allowed but encouraged in Utah?

Answer: When it’s entrepreneurship.

The newly created Utah Innovation Fund announced its first investments in three Utah-based startups, and Gov. Spencer Cox was there to trumpet the state’s dedication to nurturing nascent technology companies, most of which don’t make it to sustainability.

“We’re now the nation’s fastest-growing startup and entrepreneurial economy,” Cox said. “We’ve led the way, and set the bar.”

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With the Innovation Fund, the state is taking the further step of actually owning a percentage of the companies. Like private venture capitalists, the fund offers early financing in exchange for equity in the startups. The idea is that if and when those startups become successful, the state’s investment will feed revenue back into the fund, so it can become a sustainable source for future companies.

“A lot of these areas take a really long time to mature as investments,” said Gabi Tellez, managing director of the state fund. “It’s hard with a traditional capital fund with a formal traditional structure to take those really early bets.”

In other words, the state is willing to go where private investors are apprehensive — at the early stages when commercial viability is far from certain.

(Chris Samuels | The Salt Lake Tribune) Gabi Tellez, managing director of the Utah Innovation Lab, speaks during an event marking the first investment of the Utah Innovation Lab, a state funded venture capital program, at the Capitol in Salt Lake City, Monday, Dec. 11, 2023. She is joined by Rep. Jefferson Moss, a state legislator who is also a managing director of the fund, and Gov. Spencer Cox.

Tellez acknowledged that most startups fail, but she declined to offer any predictions on what percentage of the Utah Innovation Fund’s chosen companies will break through. She said the fund’s results will be transparent, and annual reports will be issued so Utahns can find out how well it’s doing.

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The fund was created by the Utah Legislature earlier this year, and proponents point out that the $15 million in funding comes from investment income from a 20-year-old state fund that was created for business development. It’s not directly funded by taxpayers, but it’s still state money.

The fund is set up to do more than just invest. It is also creating a data base of Utah startups, so other founders and investors can track progress. It also offers support services, such as accountants and patent attorneys, and it has a cadre of industry experts who can gauge the market climate for new products and advise the entrepreneurs.

Rep. Jefferson Moss, R-Saratoga Springs, who also is a managing director, said the fund’s all-volunteer board has experience in both technology and finance, and the fund has recruited university students to help with analyses of potential investments.

The first investments, totalling $700,000, went to two Salt Lake City biotech companies and a St. George firm with a solution for increasing the fresh water that desalination plants produce.

“The development of the technology was the easy part,” said Hunter Manz, the 24-year-old founder and CEO of Eden Technology, which Manz started while he was a student at Utah Tech University in St. George.

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“I thought that once the technology was even remotely proven out, that a myriad of high-quality investors would come pouring in,” Manz said. “I was mistaken.”

While in school, Manz used Utah Tech’s Atwood Innovation Plaza to help refine his desalination idea and obtain a patent on his device, which uses centrifugal force to increase the amount of clean water a desalination plant can produce.

“Most venture capitalists are not interested in backing a hardware company,” Manz said. “They want software. Software is safe and easy to scale. … I have news for them: Software by itself will not save the world.”

Manz said the $250,000 in state funding will be used to build and test a prototype of his device at the San Rafael Research Center in Emery County. The research center is intended to encourage new energy development as the world moves away from coal as an energy source, but it has struggled to attract enough energy research.

There are 16,000 desalination plants in the world, and the dominant technology is reverse osmosis, where salt water is forced through a membrane that allows the water molecules through but not the salt. It makes fresh water much more expensive, which is why it is not more widely used.

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Manz, who grew up in Las Vegas, said he has been concerned about water scarcity from an early age, and started investigating desalination when he was 14. His device takes the fluid left behind in traditional reverse osmosis and squeezes more water out, making the whole process more efficient.

Manz said he also has developed a relationship with the Navajo Nation, which is working on a desalination project using brackish groundwater that can’t be used for irrigation or human consumption without removing the salts. Another project is in the works in Saudi Arabia.

Another $250,000 went to Inherent Biosciences, headquartered in downtown Salt Lake City, which has developed tests for gauging male infertility and predicting the likelihood of success for such techniques as in vitro fertilization.

(Chris Samuels | The Salt Lake Tribune) Andy Olson, CEO of Inherent Biosciences, during an event marking the first investment of the Utah Innovation Lab, a state funded venture capital program, at the Capitol in Salt Lake City, Monday, Dec. 11, 2023.

“On the male side of infertility today, the standard of care is using a microscope to count how many sperm are there and how many are swimming,” said Andy Olson, co-founder and CEO of Inherent Biosciences.

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Olson’s company relies on epigenetics – the science of how genes are expressed – to catch male fertility problems that previously went undiagnosed. That can keep infertile couples from trying expensive treatments that are doomed to fail. “When men go undiagnosed, the female goes through treatments that aren’t going to work,” Olson said.

Olson said the state funding will be used to complete clinical trials on the company’s tests. The company’s product is currently available to patients, but it is not covered by insurance. He said completing the trials will be necessary to get the test into widespread use and covered by most insurance policies.

(Chris Samuels | The Salt Lake Tribune) Mike Kirkness, CEO and president of 3Helix, during an event marking the first investment of the Utah Innovation Lab, a state funded venture capital program, at the Capitol in Salt Lake City, Monday, Dec. 11, 2023.

The third company, 3Helix, based at the University’s Research Park, received $200,000 from the state fund. The company has developed and sells “collagen hybridizing peptides.” Collagens are proteins that are responsible for much of the structural qualities of muscles and bones, and the peptides can be used to develop diagnostic tools and treatments for a variety of medical conditions.

This story is part of The Salt Lake Tribune’s ongoing commitment to identify solutions to Utah’s biggest challenges through the work of the Innovation Lab. [Subscribe to our newsletter here.]

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Utah

Utah State QB/WR Duo Named To East-West Shrine Bowl Watch List

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Utah State QB/WR Duo Named To East-West Shrine Bowl Watch List


One of the Mountain West’s more intriguing quarterback/wide receiver combinations has received more recognition ahead of the 2024 season.

Each year, the East-West Shrine Bowl provides college football players the opportunity to practice and participate in an all-star game in front of NFL scouts and coaches. Prior to the season, the Shrine Bowl releases a list of 1000 draft eligible players who are good candidates for the game itself. That 2024 list was released this week, including Utah State QB Spencer Petras and wide receiver Jalen Royals.

Rich Rodriguez on NIL Landscape: “Players Should Be Under Contract”

Petras joined the Aggies this offseason after five seasons at Iowa where he played in 37 games and threw for 5199 yards. He was named Utah State’s starter this spring. Royals, a senior, was recently named to the All-Mountain West preseason team and made the league’s all-conference team at the end of last season. Royals caught 71 passes for 1080 yards and 15 touchdown catches, a program record, in 2023.

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Utah State enter the 2024 season under the direction of interim head coach Nate Dreiling, after Blake Anderson was fired from his post as the program’s leader for Title IX compliance violations earlier this month. The Aggies begin their new campaign on August 31 when they host FCS Robert Morris.

The East-West Shrine Bowl will take place at AT&T Stadium in Arlington, TX on January 30, 2025.



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A look into Utah’s favorite (or second favorite, depending on who you are) ice cream brand

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A look into Utah’s favorite (or second favorite, depending on who you are) ice cream brand


After witnessing all the steps taken to create one of Utah’s favorite ice cream brands, Cache Valley resident Savanna Mccay learned an important lesson.

“Cows,” Mccay said, “are the best things on earth.”

Earlier this month, Utah State University held its annual “Cow to Cone” event, where community members had the chance to peek into the entire process behind the delectable taste of Aggie Ice Cream, deemed by many (aside from the devotees of BYU Creamery) as Utah’s most mouth-watering campus confection.

The first step in creating the treat takes place at Utah State University’s various research farms in Cache Valley, where students grow alfalfa. This feed is then used to nourish the university’s dairy cows at the Caine Dairy Teaching and Research Center.

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The Caine Dairy is home to 60 Jersey cows and 60 Holstein cows that each contribute milk that will eventually be made into Aggie Ice Cream. Each of the Jersey cows can produce seven to nine gallons of milk a day — all with high butterfat content, making it great for ice cream and cheese. The dairy’s Holstein cows, meanwhile, can produce nine to 20 gallons a day.

How robots contribute to sweet treats

(Rick Egan | The Salt Lake Tribune) The dairy in Wellsville that produces the milk for Aggie Ice Cream, Friday, July 19, 2024.

About six years ago, the dairy started using robotic milking machines. These robots offer numerous benefits, according to USU Extension dairy specialist Bruce Richards.

For one, they operate around the clock, improving udder health and increasing milk production by allowing cows to be milked up to five times a day. But the biggest benefit of the machines, Richards said, is labor.

“Generally, they don’t need a day off, they don’t get sick, they don’t get into a fight with their girlfriend, they don’t get mad at the cows,” Richards said. “They’re really pretty dependable.”

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The farm used to not have two different breeds of cows, according to Abby Benninghoff, head of the university’s Animal, Dairy and Veterinary Sciences Department, but having both is beneficial for research purposes and for comparing the two breeds.

The Jerseys provide better teaching opportunities for students, she said, because they are smaller, friendlier and easier to interact with.

Benninghoff said the dairy will soon be looking into how different components of the feed they give the cows contribute to higher milk yields.

“In the dairy world, milk yield, milk quality is very important,” she said. “So, if you can have more effective use of the feed, you’ll end up with a more economically sustained dairy operation.”

It’s all in the milk

(Rick Egan | The Salt Lake Tribune) Mason Carter eats an ice cream cone with his family in Logan on Friday, July 19, 2024.

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Rachel Lindstrom, a USU graduate student studying cheddar cheese, said having the dairy near the university is beneficial to her, even when she is not the one interacting with the cows.

“The cow — what it’s fed, how it’s treated — all those things trickle down into the milk and the flavor of the milk,” Lindstrom said. “The quality of the cow will equal the quality of the final product.”

The quality of the Caine Dairy’s cows, she said, shows in Aggie Ice Cream. The cows at the Caine Dairy Teaching and Research Center were ranked the top college dairy herd in the nation by the Holstein Association USA in six of the past seven years.

One of Lindstrom’s professors, Prateek Sharma, said this is what makes Aggie Ice Cream unique.

“Having that superior-quality milk will help us to make superior-quality dairy products,” he said. “So it’s important for us to have a dairy farm close by.”

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After the milk is taken from the famous cows, some of it is transported to the Gary H. Richardson Dairy Products Laboratory next to the Aggie Creamery. There, the milk is tested for quality and safety, pasteurized, homogenized and mixed with other ingredients to create more than 27 flavors.

The milk is also used to make cheeses in food science courses for students and short courses for industry professionals.

But what really makes Aggie Ice Cream — depending on the Utahn — the best? Microbiologist and assistant professor Taylor Oberg said the trick is in the ice cream’s air and fat content. He said his students whip less air into their ice cream than usual and put about 12% fat into the mix, making it denser and creamier.

“It’s better than BYU,” Oberg said. “I’ll just say that.”

(Rick Egan | The Salt Lake Tribune) Ice cream lovers line up for Aggie Ice Cream at the creamery in Logan on Friday, July 19, 2024.

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Watch: Plane crashes in yard of Utah home with family inside – Times of India

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Watch: Plane crashes in yard of Utah home with family inside – Times of India


A small aircraft crashed into the front yard of a home in Utah‘s Roy on Wednesday afternoon, approximately 30 miles north of Salt Lake City. The Federal Aviation Administration reported that two individuals were aboard the twin-engine Piper PA-34 when it went down shortly before 4 pm.
Both occupants sustained minor injuries, and their identities have not been disclosed.
The crash was captured on home security footage, which showed the plane crashing into the front yard. Several concerned neighbours can be seen rushing to the scene to offer assistance. The incident caused damage to one home and nearby trees, but fortunately, no one on the ground was injured.

The Federal Aviation Administration and the National Transportation Safety Board are conducting an investigation to determine the cause of the crash. The NTSB said that a preliminary report will be available in approximately one month.
Anthony Baugh, a resident of the home where the plane crashed, was informed by his wife about the incident while she and their children were inside. Upon viewing the security camera footage on his phone, Baugh said, “I had seen the video footage of the plane kind of sliding towards my house.”
He immediately rushed home, concerned for his family’s safety.
According to Baugh, his wife offered water to the two victims, described as a “gentleman” and a “young lady,” but they declined, likely due to shock.
He mentioned that the man had a cut on or above his eye. Baugh expressed gratitude that his family was unharmed, especially considering that they had lost family members in a plane crash a few years prior.
“My eldest one, he was a little shook up a little bit, we had some family members that passed away in a plane crash a few years ago, so it was a little nerve wracking,” he said. “I don’t know how many people out there are religious, but a lot of people here were blessed,” Baugh added.





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