Maven has expanded from one Pilates studio to multiple different businesses and over 130 commercial tenants.
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This story is part of CNBC’s quarterly “Cities of Success” series, which examines cities that have transformed into business hubs through an entrepreneurial spirit that attracts capital, companies and employees.
Less than 15% of businesses in Salt Lake City, Utah, are owned by women, one of the lowest reported percentages in the country, according to the latest data from the U.S. Census Bureau. Still, efforts are being made to allow women to start their own companies.
When Tessa Arneson opened her small Pilates studio in 2015, she noticed that her clients were frequently asking for recommendations for local services, and she started thinking about building a network of related businesses.
“My dream was to leave big corporate America and go give people a little bit of happiness,” said Arneson, co-founder and CEO of Maven.
Through a Pilates studio, Arneson met Rocky Donati, who had recently moved to Salt Lake City from San Francisco. Together, the two worked to create an entrepreneurial community where businesses could build and grow near each other in an area of the city known as the “Maven District.”
“We saw a vision,” said Donati, Maven’s co-founder and chief marketing officer. She also saw something bigger. “I felt it had the potential to bring women together.”
Maven has expanded from one Pilates studio to several different businesses including coworking spaces, boutique hotels, and over 130 commercial tenants. Arneson and Donati said 85% of these businesses are run by women. In 2013, the Pilates studio was bringing in about $200,000 a year, the couple said. This year, all the companies they own will generate about $4 million.
Funding for undervalued founders
Despite the increase in women-owned businesses, access to capital remains a major barrier. Investing in founders of undervalued startups is what inspired Kimmy and Sergio Paruch to launch Beta Boom, a venture fund in Salt Lake City.
Kimmy Paruch, managing partner at venture capital firm Betaboom, said:
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“There’s a lot of untapped potential. We’re getting there, but we’re not there yet,” said Beta Boom Managing Partner Kimmy Palucci. “The possibilities I think are to fund more diverse businesses, fund more women, fund more people of color, and that’s where the opportunity lies. .”
The couple founded the company in 2018 with less than $1 million in pilot funding. The second fund currently has $15 million in holdings. Beta Boom invests an average of $300,000 in software companies in the health, fintech, and future of work sectors. It has already committed $5 million to women-owned businesses. “What attracts investors is results and returns, and that’s happening in abundance here,” Parti said.
Build your brand with mom influencers
Susan Petersen, founder and CEO of Freshly Picked, a baby and toddler lifestyle brand she launched 15 years ago, knows what it means to break down barriers.
“We have a religion that is in high demand here,” Petersen said of the dominance of The Church of Jesus Christ of Latter-day Saints in Utah. Another hurdle is that online retail is a male-dominated field. “So whenever I think I have those two things, there are preconceptions that I have to fight, there are walls that I have to break down, there are ceilings that I have to break through – and I have to do a lot of things. “I shouldn’t have done that,” she said.
Susan Petersen is the founder and CEO of Freshly Picked, a baby and toddler lifestyle brand.
CNBC
In 2009, Petersen began sewing baby shoes for newborns. She first tried selling on Etsy and gained marketing traction through the state’s many “mom influencers” on social media. “I valued them and built relationships with them. They really helped me grow my business,” Petersen said.
By 2014, when Mr. Petersen appeared on “Shark Tank,” the business was generating $500,000 a year in revenue. The broadcast boosted sales and expanded the product line, including diaper bags and toys, now available online and in boutiques and retail stores nationwide, including Target.
Revenue is now close to $20 million, Petersen said. She credits part of her success to the women who helped her achieve her dreams. “I love how it feels like we’re all in this together,” she said.
