Investor Info

Hall Venture Partners was founded to serve our portfolio companies as a industrial focused venture fund that provides a tax advantaged investment opportunity. We support Hall Labs companies on modern-day Edison Lab that develops the smart products of our IoT world. From smart home and garage products—to revolutionary automotive technology—to automated building processes, and much more. Supporting Hall Labs and their team of innovators—scientists and engineers—at a modern, state-of-the-art campus located in Provo, Utah, to tackle some of the world’s most challenging problems ranging from sustainability to personal transportation.

Opportunity Zone

Hall Opportunity Fund 1 has been opened to invest in early growth companies based in Utah, taking advantage of recent Federal legislation to encourage investments into Federally designated “opportunity zones.”

The opportunity zone legislation offers huge benefits to investors. If applied correctly, it allows deferral of capital gains, potential original gain reductions of 10-15%, and potential permanent deferrals on any gains realized within a qualified fund.

Provo, Utah is home to an opportunity zone that has been identified as one of the top 3 most attractive opportunity zones nationally, and HVP is ideally positioned to deploy capital immediately into investments that will meet the strict opportunity zone requirements. The HVP managing partners (David Hall, Derek Weber, Matt Van Dyke and David Kunz) and their affiliates are seeding the fund with a capital commitment of 10% of the overall target fund size.

The 2017 tax revision temporarily authorized tax incentives for investments into a Qualified Opportunity Fund (“QOF”)

A QOF is a vehicle organized for the purpose of making qualified investments within a federally designated Opportunity Zone.

The following are tax benefits of investing in a Qualified Opportunity Fund (QOF) :

  • A temporary tax deferral for capital gains reinvested in a QOF. The deferred gain must be recognized on the earlier of the date on which the QOF investment is sold or December 31, 2026.
  • A step-up in basis for capital gains reinvested in a QOF. The basis of the original investment is increased by 10% if the investment in the QOF is held by the taxpayer for at least 5 years, and by an additional 5% if held for at least 7 years,xcluding up to 15% of the original gain from taxation.
  • A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in a QOF, if the investment is held for at least 10 years.(Note: This exclusion applies to the gains accrued from the investment in the QOF, not the gains on the original investment.)

Opportunity Fund Investment Example

Investment Example Facts
  • Assume that on March 31, 2019, an investor sells an asset (stock, real estate) to an unrelated 3rd party with a basis of $2M for $3M, resulting in a capital gain of $1M.
  • On May 1, 2019 the investor invests the $1M original capital gain in an opportunity fund within the 180-day election period.
  • On January 1, 2030 Fund 1 liquidates the $1M investment for $1.5M, resulting in a $.5M gain in the opportunity fund investment.
Tax Consequences of Investment
  • The above example encompasses two separate capital gains:
$1M Original Capital Gain
  • Tax on gain deferred in 2019.
  • Original gain is permanently reduced by 15% ($150K) due to holding investment 7+ years in Fund.
  • Investor must recognize the $850K gain ($1M - $150K) in its December 31, 2026 tax filing and pay the resulting tax.
$.5M Gain in Opportunity Fund Investment
  • No tax recognized for federal income tax purposes due to investor holding opportunity fund investment for 10+ years.

Provo Campus

Provo, Utah Opportunity Zone Innovation & Growth Campus

  • Over 130 total acres, nearly all contiguous
  • 650,000 square feet of buildings
  • Operating businesses employ over 700 people
  • As companies grow, they may occupy their own building
  • Opportunity Zone Tract #: 49049002802

Campus Highlights

  • Located within minutes of Sundance
  • Governor Gary Herbert and then-Mayor (now Congressman) John Curtis for 180,000+ sqft Vanderhall building
  • 80,000+ sqft campus headquarters
  • Located in Provo, UT, identified as one of the Top 3 Opportunity Zones
  • Fastest growing city in US
  • Most startups per sq mile
  • Silicon slopes backdrop.

Hall Opportunity Fund 1 Initial Target Companies

  • Initial target portfolio companies located in an Opportunity Zone

Vanderhall develops and manufactures conventional and electric roadsters that provide a truly unique motoring experience. Exceptional aesthetics and effortless performance.

Medic is developing advanced health monitoring systems and hardware that provide meaningful information for individualsand their healthcare team

SmarterHome is a first-of-its-kind system that seamlessly integrates smart products for thehome. Includes smart automation of blinds, windows, lighting, security, storage, and more.

Bacon is creating a new way to staffteams by connecting companies to pre-qualified available workerswho will work on-demand for as little as one shiſt.

Sure-Fi has developed the world’s first radio designed to connect reliably through heavy obstruction. Its patented radio features one-mile range with obstructions and 50+ miles line of sight.

Hall Logic’s Near Field Perception Technology provides signals that support Autonomy, ADAS, and Driver Information Systems. Theproduct derivesnovel sensor data from existing hardware.

Comfort Wall reinvents heating and cooling comfort through polished, multi-purpose, radiant tech infused products that seamlessly slot into residential or commercial spaces.

RelChip offers reliable integrated circuit solutions for extreme environments, ranging from -55 to 300 degrees Celsius (-67 to 572 degrees Fahrenheit)

Silicon Slopes

Utah is exploding with growth and it’s through relationships like Silicon Slopes that HVP can identify potential target portfolio companies currently outside the Hall campus.

HVP will leverage the same process, honed and developed over 60+ years, that will supplement our sourcing of opportunities as we look to identify companies that can benefit from the process and structure Hall Labs provides. With more than 6,500 startup and tech companies in Utah, Silicon Slopes is home to entrepreneurs and leaders who have earned global recognition through hard work, and a focus on building exceptional companies.

Dollar-per-deal, Utah leads the nation in venture capital tech funding, and for 3 years in a row, Forbes named Utah as the best state in the nation for business.