The rise of ladies entrepreneurs in Salt Lake Metropolis

Maven has expanded from a single Pilates studio to several different businesses and more than 130 commercial tenants.

CNBC

This story is part of CNBC's quarterly Cities of Success series, which examines cities that have transformed into business hubs with an entrepreneurial spirit that has attracted capital, companies and employees.

According to the latest data from the U.S. Census Bureau, less than 15% of businesses in Salt Lake City, Utah, are owned by women, one of the lowest reported proportions in the United States. However, there are efforts to give women the opportunity to start their own businesses.

When Tessa Arneson opened a small Pilates studio in 2015, she noticed that customers often asked for local service recommendations, which led her to think about building a network of related businesses.

“My dream was to turn our backs on corporate America and give people a little piece of happiness,” said Arneson, co-founder and CEO of Maven.

Through the Pilates studio, Arneson met Rocky Donati, who had recently moved from San Francisco to Salt Lake City. Together, the two worked to create a community of entrepreneurs who could build and grow their businesses close to each other in a neighborhood called the Maven District.

Cities of Success: Complete Coverage

“I could see the vision,” said Donati, co-founder and chief marketing officer of Maven. She also saw something even bigger. “I could see the potential to bring women together.”

Maven has expanded from a single Pilates studio to several different businesses, including a co-working space, a boutique hotel, and more than 130 commercial tenants. Arneson and Donati said 85% of these companies are owned by women. In 2013, the Pilates studio brought in about $200,000 a year, the duo said. This year, all the companies they own will generate about $4 million.

Raising capital for underrepresented founders

Despite an increasing number of women-owned businesses, access to capital remains a significant barrier. Investing in underrepresented startup founders was the reason Kimmy and Sergio Paluch founded the venture fund Beta Boom in Salt Lake City.

Kimmy Paluch, managing partner of venture capital firm Beta Boom.

CNBC

“There is still a lot of untapped potential. So we’re getting there, but we’re not there yet,” said Kimmy Paluch, managing partner of Beta Boom. “I see the potential in funding more diverse companies, funding more women, funding more people of color, and there are opportunities here.”

The couple founded the company in 2018 with a pilot fund of less than $1 million. The second fund now has $15 million. Beta Boom invests in software companies in the healthcare, fintech and future of work sectors, with an average investment of $300,000. It has already put $5 million into women-owned businesses. “What attracts investors are results and returns on sales. That’s happening here in droves,” Paluch said.

Building a brand with influencers for moms

Susan Petersen, founder and CEO of Freshly Picked, a lifestyle brand for babies and toddlers she founded 15 years ago, knows what it means to break down barriers.

“We have a very popular religion here,” Petersen said of the dominance of the Church of Jesus Christ of Latter-day Saints in Utah. Another hurdle is that online retail has previously been a male-dominated field. “So when I think of those two things, you have preconceptions that you have to fight, you have walls that you have to break down, you have ceilings that you have to break through – and I had to do a lot of that. “That,” she said.

Susan Petersen, founder and CEO of baby and toddler lifestyle brand Freshly Picked.

CNBC

In 2009, Petersen began sewing baby shoes for her newborn. She initially tried selling them on Etsy and gained marketing traction through numerous social media “mom influencers” who live in the state. “I took care of them and built a relationship with them, and they really helped me grow my business,” Petersen said.

When Petersen made a television appearance on Shark Tank in 2014, the company was generating $500,000 in annual revenue. The show led to increased sales and an expansion of their product line to include diaper bags and toys, available online and through boutiques and retailers across the country, including Target.

Petersen said sales are now nearly $20 million. She owes part of her success to the women who helped her make her dream a reality. “I love how it feels like we’re all in this together,” she said.