Light through the clouds: tech companies seeing vibrant futures.

AuthorThomson, Kimball
PositionBusiness Trends High-Tech - Utah's technology sector

DURING THE PAST SEVERAL MONTHS, unmistakable signs of life have begun to appear on Utah's technology landscape "While we're not out of the storm yet, some shafts of light are starting to break through the clouds," opines Todd Stevens, managing director of Wasatch Venture Fund.

There is significant tangible evidence to support Stevens' metaphor. The NASDAQ has returned to above 1,700, and the Standard & Poor 500 is again headed north of 10,000. Technology IPOs are cropping up in greater numbers, and mergers & acquisitions activity is steadily increasing. In addition, technology spending--a traditional leading indicator for economic health--is beginning to pick up.

Even more encouraging, according to Stevens, is the fact that company valuations and acquisition prices are increasing. "Deals are steadily improving, and venture capitalists are eager to get back in the game," he says.

A number of young Utah technology companies have recently closed or are in the process of closing funding rounds. Recipients include First Choice Solutions, which provides outsourced mobile electronics claims handling software and services for auto insurers; Cerberian, which develops software for web filtering and monitoring; NxLight, a provider of digital transactions management technology; and FatPipe Networks, which develops WAN-based router cluster technology. In addition, Salus Therapeutics, which specializes in the identification of DNA- and RNA-based drugs and drug delivery systems, was acquired by New Jersey-based Genta Incorporated.

In concert with the softening of capital for venture capital-level candidates in Utah, Wayne Brown Institute founder Brad Bertoch has observed a number of encouraging trends for high-tech consumers and small-business entrepreneurs. One long-overdue development, he believes, is an emphasis on "making things actually work and do what they're supposed to do." According to Bertoch, consumer demand is forcing development away from features desired more by engineers than by consumers. The demand is being met increasingly by "wise" developers, and will create ongoing opportunities for vendors of a variety of "embedded systems" (computers in PDAs, cell phones and other small electronic devices) as well as responsive systems integrators.

The trend toward making things work is accompanied, Bertoch says, by increasing simplicity and user-friendliness: "We're finally starting to see something I thought would happen a long time ago--a push...

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