SALT LAKE CITY — Popular shows like "Shark Tank" may make it seem like the only way to get a business off the ground is by winning over wealthy donors.

While raising venture capital and finding affluent backers can be a path to funding, entrepreneurs should also consider looking toward another type of donor: the government.

Business and government leaders at the Utah Technology Innovation Summit advised entrepreneurs Wednesday on ways to raise funding for their ideas, and shared tips and resources to help startups get off the ground and scaling up.

Timothy Bean, CEO of Fortem Technologies, said that venture capitalists often receive several hundred pitches a month. They often choose to invest in larger, more established companies, however, because it's less risky.

For a startup, it can be difficult to form rapport. That's where government funding can come in handy.

Government funding for Utah startups

USTAR is one such source that provides funding to qualified companies that are in the tech sector, to try and support innovators in this field.

In addition to funding, USTAR also provides discounted office space to entrepreneurs, as well as connections to other science and tech partners and two innovation centers with prototyping equipment like 3D printers, waterjet cutters and a wood and metal shop.

Another powerful government funding tool for research and development or smaller projects is Small Business Innovative Research grants. The federal government invests more than $2.5 billion annually in the program, and USTAR has free resources for Utah entrepreneurs looking to apply.

So far, the support has really paid off. USTAR-supported companies have received more than $123 million in follow-on funding, according to global research leader TEConomy Partners.

Many of Utah's science and tech-based companies like Orbital ATK and L3 Technologies work closely with the government and have millions of dollars of federal funding.

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So how do you get that funding?

Simply having a good idea and prototype is not enough for government funding. Panelists at the summit told entrepreneurs to ask themselves the following four questions:

1. Do you have the right team?

2. What's your model?

3. Is it sustainable?

4. Think about the problem you're solving. Does your solution save the government money?

"You build trust by asking questions. So many times, someone raising money will throw themselves at the other person," Bean said. "There has to be a two-way conversation of trust."

The government will look at the sustainability of the company and whether it's overly reliant on federal funding, said Melissa Flagg, one of the summit panelists and a lead at the U.S. Army Research Laboratory.

"We're not supposed to be the sustainer of your company for the long term," Flagg said. "If you have only a federal customer, do you believe that the government is the only customer that can keep you alive for the life of the company? If we're the only customer, we find that we lose the supply chain."

Ben Dahl, a venture capitalist with Pelion Ventures, echoed Flagg's comments on sustainability.

"We invest in bridges, not claims," he said. "You have to have an understanding of how you get to the next step."

While there is money to be had outside of venture capitalists and popular pitch competitions, it takes time and work, said summit panelist Mike Bockelie.

"There's certainly funding out there to pursue and demonstrate your idea, but you have to have the right people to do it."

Editor's note: An early version of this article indicated that USTAR works with established organizations that have run out of funding. KSL.com has since learned this is not accurate. This article has been updated to remove that claim.

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