Greater Cleveland
Venture Capital Overview 2007-2011
In the last 5 years, Northeast Ohio tech-based companies have raised nearly $1 billion from 134 equity investors based around the country and the globe.
Regional Investment activity Increases Between 2007-2011, 226 Greater Cleveland companies collectively attracted $961 million—a 133% increase in deals and a 26% increase in dollars for the region when compared to the previous five years (2002-2006).
2007-2011
Over the last five years, Northeast Ohio startups raised capital from 134 equity investors; 67% of these investors were based outside of Ohio. During that same timeframe, 16 regional venture-backed companies exited, in deals worth a total of $2.6 billion. Return-generating exits
2002-2006
include the acquisition of Edgepark Medical Supplies for $850 million (2010) and the acquisition of Solon-based MemberHealth Inc. for $630 million (2007). In addition, there were 21 other exits whose amounts were undisclosed.
Clients of the region’s eight
NUMBER OF DEALS
Entrepreneurial Signature Program
DOLLARS INVESTED
incubators and accelerators represent
203 $ 761M
472 $961M [133% INCREASE]
[26% INCREASE]
71% (162) of the companies successfully attracting VC and angel capital and 51% ($506 million) of the equity dollars raised in Northeast Ohio in the last five years. The Ohio Third Frontier and the Ohio Capital Fund continue to provide capital and other support critical to increasing private investment and accelerating the growth of early stage tech companies in the Ohio.
Total Equity Investments by stage
86
2007-2011 (dollars in millions)
$
seed
479
$
early
growth
158seed Number of companies
Dollars Invested Average Deal Size:
396
$
91early
$
0.34 million seed, $2.84 million early and $7.92 million growth
31 growth
Equity Investments by sector* Cleantech
Healthcare
Environmental $9 Energy $79
Business & Consumer Products & Services
Advanced Specialty Materials & Chemicals $55
65(7 )
$
Biopharmaceuticals $79
143 (15 )
Medical Devices & Equipment 32
35
Medical Devices & Equipment $243
(16%)
Healthcare Services, Healthcare IT & Other $265
39
83 (37 )
(17%)
%
166(17 )
Biopharmaceuticals 12
Healthcare Services, Healthcare IT & Other 39
Business & Consumer Products & Services
%
$
2007-2011 (dollars in millions)
68
$
%
587
$
Information Technology & software
Environmental 3
(61 ) %
Energy 14 Advanced Specialty Materials & Chemicals 22
%
(30%)
Information Technology & software
Dollars Invested
Number of companies
* graphs do not include one (1) $25,000 Agriculture investment
Noteworthy Deals Healthcare
Information Technology & Software
In 2011 Cleveland Heart Lab completed an $18.4 million financing round led by
In 2010 Financial Transaction Services secured a $50 million growth equity
Boston-based firms, Excel Venture Management and HealthCare Ventures. The Cleveland
investment from the private equity firm FTV Capital. The Highland Hills based
Clinic spin-out offers proprietary diagnostic tests that assess cardiovascular disease
company offers a comprehensive suite of electronic transaction processing services
risk using molecular biomarkers. The Series B round was designed to help the clinical
for merchants, independent sales organizations (ISOs) and financial institutions. The
laboratory and disease management company expand its menu of tests and more
financing was used to support expansion through increased sales and acquisitions.
aggressively evaluate and in-license new biomarkers. clevelandheartlab.com
ftservice.com
Business & Consumer Products & Services
Cleantech
In 2008, Beachwood headquartered Embrace pet insurance, an insurance
In 2011, Produced Water Absorbents Inc. in Wooster raised $11 million to accelerate
program manager that designs, sells, and manages flexible policies for cats and
commercial development of oilfield water treatment solutions using a swellable, molecularly-
dogs, raised $2.1 million from NCT Ventures in Columbus, Ohio. Since recieving this
modified glass technology developed by its parent company, ABSMaterials. Produced
institutional investment, the award-winning consumer-focused online company has
Water Absorbents’ produced and flowback water treatment solutions improve resource
raised additional capital, exceeded projected policy sales and quadrupled its staff.
recovery and environmental protections of drilling and mining operations. The financing was
embracepetinsurance.com
led by Energy Ventures, an investment fund focused on upstream oil and gas technologies and joined by Harris and Harris Group and a limited special purpose partnership group comprised of Ohio-based angel investors. pwabsorbents.com
First-time Northeast Ohio investors (in 2011) are in color. * Received investment from The Ohio Capital Fund
134 equity investors in northeast ohio companies 23 Bell Innovations
Early Stage Partners*
Big Game Capital
East Central Ohio Tech Angel Fund
Blue Chip Venture Company Bridge Investment Fund* Case Technology Ventures
Everett Partners Ltd Evergreen Ventures Ltd. Evolution Capital Partners.
CID Capital
Glengary LLC*
Cleveland Clinic Innovations
Hatch Partners JumpStart Inc.
Direction Aviation Capital
Kadima Partners
Key Capital Corporation
Primus Capital Funds* Queen City Angels*
Roulston Investment Partners
Mutual Capital Partners
Reservoir Venture Partners*
Second Generation LTD
NCT Ventures*
Resilience Capital
Shaker LaunchHouse
NDI Healthcare Fund
River Cities Capital Funds
Sunbridge Partners*
North Coast Angel Fund
RiverVest Ventures*
4C Ventures Aisling Capital Amphion Innovations Cowen Healthcare Royalty Partners Draper Triangle Ventures*
Supply Chain Equity Partners
Ohio TechAngel Fund
RMS Investment Corporation
Triathlon Medical Ventures
Portal Capital LLC
Rocket Ventures
Parker Hannifin Corporation
RockWood Equity Partners
Tri-State Growth Capital Fund II
Foundation Medical Partners Greatbatch Greycroft Partners LLC
Zapis Capital Group LLC
Harris & Harris Group Investor Growth Capital
OHIO Northeast
Cardinal Venture Capital Charter Life Sciences* Chevron Technology Ventures Draper Associates DW Healthcare Partners
WEST
Life Sciences Capital LSKW Investments Midsummer Capital MWV Financial Inc. New Enterprise Associates Oak Investment Partners
FTV Capital
OrbiMed Advisors
Intel Capital
RLS Investments, Inc.
JDA Investments, LLC
StarVest Partners
Kearny Venture Partners
Thomas, McNerney& Partners
Microsoft Corporation
Toucan Capital Corp.
Morgenthaler Ventures
Boston
Palo Alto Investors
Ampersand Ventures
Panorama Capital
MIDWEST
Quercus Trust Roberts Communications Network
Sutter Hill Ventures Ulupono Initiative Vivo Ventures
Apex Ventures
Hopen Therapeutics
Arboretum Ventures*
Hopewell Ventures
Biomet
Lightbank LLC
BlueCrest Capital Finance LP
Medtronic
Capital Midwest Fund
Wind Energy, Inc.
Entrepreneur’s Fund LLC
Z2 Capital
Hawthorn Group
Rockwell Automation Southwest Michigan First Life Science Fund Sunrise Operations Symark LLC
Outside the US
Boston Scientific Corporation
SOUTH
Capital Resource Partners
Abakan Inc.
Frontier Capital
Advantage Capital Partners
Kentucky Science and Technology Corporation
Anderson Growth Partners
Austin Ventures Chrysalis Ventures* Cordova Ventures
Dresser-Rand Energy Ventures
MATW Investments LLC Maverick Capital Funds
Excel Venture Management Fidelity Biosciences Fletcher Spaght Ventures*
Healthcare Ventures LLC mTerra Ventures LLC
MB Venture Partners
Polaris Ventures
Orix Capital
SV Life Sciences
SantĂŠ Ventures
Venzyme Venture Catalyst
ExOxEmis
Aberne Limited
DVx Inc.
Bally Energy Ltd.
MA Solar
Castlerigg Master Investments
Siemens Venture Capital
DSM Venturing
The Venture Capital Advisory Task Force The Task Force is comprised of Greater Cleveland investors dedicated to continually increasing regional entrepreneurial investment and success. To learn more about investment opportunities in
bioenterprise.com
jumpstartinc.org
Northeast Ohio, contact Lynn-Ann Gries, JumpStart Chief Investment Officer, at 216.363.3400 or
@BioECorp
@JumpStartInc
lynn-ann.gries@jumpstartinc.org. For previous years reports go to: jumpstartinc.org/results/reports