Utah’s venture capital industry has more than doubled in deal value, exceeding $4 billion in 2021. At Silicon Slopes Summit 2025, industry leaders discussed growth, increasing competition, founder mentorship, and future trends shaping Utah’s investment landscape.
Four billion dollars in annual deal value was produced in 2021 within Utah venture capital firms. This is more than double what it was the previous year, according to Innosphere Ventures of Denver, CO.
This influx in venture capital took center stage at Silicon Slopes Summit 2025, held this month at Utah Valley University and Salt Lake City. A panel of venture capital experts, moderated by Melanie Jones of Utah Business, gathered on January 15, 2025 to share insights, trends, and predictions for the industry’s future in Utah. The panelists included: Karey Barker (Cross Creek), Rob Rueckert (Sorenson Capital), Joe Kaiser (Mercato Partners), and Chad Packard (Pelion Ventures).
The Evolving Landscape of Venture Capital
Like many industries, venture capital is constantly evolving, according to the panelists. Karey Barker, Founder and Managing Partner of Cross Creek (Salt Lake City), highlighted the growing expertise of both founders and investors in Utah. “There’s a growing level here of sophistication of the founders, entrepreneurs, and investors.” Barker continued to discuss how the industry is shifting, with a greater focus on “building syndicates” and the importance of assembling the right team of investors to support these companies at their stage. These changes are helping to grow the venture capital ecosystem in the state, laying the foundation for long-term growth and success.
As far as choosing the right people, there are just more options today. Rob Rueckert, partner at Sorenson Capital (Salt Lake City), highlighted the growth within the industry, not just in terms of dollar value but in the number of firms. “Now we have hundreds of firms all competing for the same types of companies, which has been really good because it has forced [venture capital] to up their game.” As the number of venture capital firms grows and interest from out-of-state investors rises, Utah’s investors are finding themselves in increasing competition, having to refine their strategies just like the companies they invest in.
In regards to industry positioning, Rueckert noted, “Utah is on the map, specifically in application software. The amount of application software we produce is well above what you would expect based on our population.”
Culture of Support: Founders and the Next Generation
A key factor behind Utah’s thriving venture capital scene is the strong culture of support that has been fostered by successful local founders. Joe Kaiser, Managing Director at Mercato Partners (Salt Lake City), credited influential figures like Ryan Smith, Co-founder of Qualtrics and owner of the Utah Jazz. "Smith is not only investing in but also taking the time to mentor the next generation of Utah entrepreneurs. We’ve seen successful founders here invest back into the ecosystem, which reminds me of the early years of Silicon Valley,” remarked Kaiser.
This statement was echoed by Chad Packard, General Partner at Pelion Venture Partners (Draper, UT). By passing on their knowledge and financial backing, Utah’s veteran entrepreneurs are laying the foundation for new ventures to thrive.
Strengthening Utah’s Venture Capital Ecosystem
There are differing views on how Utah can further strengthen its position in the venture capital industry. Joe Kaiser believes that fostering diversity within the state’s economy is crucial. “Ten years ago, Utah was really known for being a sales-centric SaaS environment, and now we have everything from physical infrastructure to biopharmaceuticals and tech.” This expansion of industries will allow for sustainable long-term growth.
Packard, on the other hand, suggested that Utah should focus more on product engineering. “Utah needs to double down on the focus of product engineering in tech,” he said, creating emphasis that innovation in engineering will drive the next wave of growth. Rueckert agreed, adding, “The gap is in engineering, and that starts at the high school and junior high levels,” stressing the importance of early education in building a talented workforce to support Utah’s growing industries.
Choosing the Right Investments
When it comes to picking investments, Packard emphasized the importance of evaluating the people behind the companies. “At the end of the day, we’re just trying to assess people—how big is their vision, how good are they, how audacious is it? In the seed stage and beyond, you need a level of audacity that borders on craziness.”
Future Directions and Consolidation
Looking toward the future, the industry may see a shift toward more specialized sectors. “Maybe it’s healthcare, deep tech, infrastructure software, or security software,” predicted Rueckert.
Both Rueckert and Packard foresee a “massive consolidation” within the venture capital market. Due to increased competition, they predicted fewer firms would survive in the long run, leading to a more concentrated pool of investors. This consolidation of firms could create fiercer competition, resulting in adaptation and refining approaches to stay competitive.