launch
TECHNOLOGY
economy CONNECTIONS
2013 growth
FUTURE energize
COMMITMENT
INSIGHT
EMERGE
DEVELOPMENT
STR ATEGY
expertise
support I N V E Smeasureable T M ED I NV E RTS I T Y IMPACT
FUNDING
ECOSYSTEMS
inclusion
LEADERSHIP
CAPITAL
TARGE T ED
region innovation
reinvestment
milestones C O M M U N I T Y
CRE ATION
fast trackINSIGHT ACHIE VEMENT
EXPANSION
O U T R E A C H
PARTNERSHIPS
VISIONresources STRENGTH
COMMERCIALIZATION
action IN T ER C ON N EC T I V I T Y
GREATER CLEVELAND
2013
SUSTAINABILITY
influence
EFFECTIVENESS
ingenuity
COLLABORATION
M A N A G E M E N T
imperatives
C O M P E T I T I V E NE S S
ATTRACTION
ACHIEVEMENT
development ACTIVE
progress
SUPPORT
EFFECTIVE
VISIONsolutions
experience
THRIVING
EFFICIENCY
PRODUCTS
MILESTONES
VENTURE CAPITAL REPORT
195 EQUIT Y INVESTORS IN NE OHIO COMPANIES 20 0 4-201 3
IN 2013, 31 INVESTORS, INCLUDING 24 FROM OUT-OF-STATE, MADE THEIR FIRST INVESTMENT IN A NEO-BASED COMPANY.
INVESTOR LOCATIONS : OHIO
NCT Ventures*
MIDWEST
K5 VENTURE
Maverick Capital Funds
Permal Capital Management
MB Venture Partners
PITTSBURGH EQUITY PARTNERS Polaris Ventures RKS VENTURES
23Bell Innovations
NDI Healthcare Fund
ALLOS VENTURES
Kearny Venture Partners
ACCURATE EQUITY GROUP
NEXT SPARC, LLC
Apex Venture Partners
Microsoft Corporation
ORIX USA Corporation
Akron BioInvestments Funds LLC
North Coast Angel Fund
Arboretum Ventures*
Morgenthaler Ventures
Santé Ventures
Ancora Group
Northeast Ohio Medical University (NEOMED)
Biomet
Palo Alto Investors
BlueCrest Capital Finance LP
Panorama Capital
NORTHEAST
Capital Midwest Fund
ARIEL ECONOMIC DEVELOPMENT FUND, LLC
Ohio TechAngel Fund
RLS Investments, Inc. SHARK BRANDING
The Quercus Trust
4C Ventures
SV Life Sciences* StarVest Partners
Big Game Capital
Portal Capital LLC
Bizdom
Parker Hannifin Corporation
THE CHILDREN'S MEDICAL RESEARCH FOUNDATION, INC.
Roberts Communications Network
Aisling Capital Ampersand Ventures
SUMMIT PARTNERS
Blue Chip Venture Company
Physician Investment Group LLC
Entrepreneur’s Fund LLC
Sutter Hill Ventures
Amphion Innovations plc
Sycamore Partners
Hawthorn Group
Takeda Ventures, Inc.
Boston Scientific Corporation
TEAM SANFILIPPO
Hopen Therapeutics
TECHNOLOGY CROSSOVER VENTURES
Bluetree Allied Angels
Thomas, McNerney & Partners
Capital Resource Partners
Toucan Capital Corp.
Ulupono Initiative
Cowen Healthcare Royalty Partners
Venzyme Venture Catalyst
U.S. Venture Partners
Draper Triangle Ventures*
Vivo Ventures
Dreamit Ventures
INTERNATIONAL
Western Technology Investment
Easton Capital
Wind Energy, Inc.
Excel Venture Management
Z2 Capital
Fidelity Biosciences
Brandery
Primus Capital Funds*
Bridge Investment Fund*
Queen City Angels*
Case Western Reserve University
RED DIAMOND
Hopewell Ventures
CID Capital
Reservoir Venture Partners*
HYDE PARK ANGELS
Cleveland Clinic Innovations
Resilience Capital Partners
HYDE PARK VENTURE PARTNERS
CoreNetwork
River Cities Capital Funds
Lightbank LLC
Directional Aviation Capital
RiverVest® Venture Partners*
Medtronic
Drummond Road Capital
RMS Investment Corporation
Rockwell Automation
E Capital Partners
Rocket Ventures
Early Stage Partners*
Rockwood Equity Partners
Southwest Michigan First Life Science Fund
East Central Ohio Tech Angel Fund
Second Generation Ltd. Shaker LaunchHouse
Symark LLC Venture Investors LLC
TOBA CAPITAL
Fletcher Spaght Ventures*
SOUTH
Aberne Limited ALOITUSRAHASTO VERA OY Bally Energy Ltd. Castlerigg Master Investments
Foundation Medical Partners
COWEALTH MEDICAL HOLDING CO.
Advantage Capital Partners
Greatbatch
DSM Venturing
WEST
Anderson Growth Partners
Greycroft Partners
DVx Inc.
3X5 SPECIAL OPPORTUNITY PARTNERS
Austin Ventures
Harris & Harris Group
FONDATION SANFILIPPO
Chrysalis Ventures*
HealthCare Ventures LLC
KKP-YHTYMÄ OY
Cardinal Venture Capital
Cordova Ventures
Horizon Technology Finance
Lightning Protection International
Charter Life Sciences*
Dresser-Rand
Investor Growth Capital
MA Solar
Chevron Technology Ventures
Energy Ventures
Life Sciences Capital
MWV Financial Inc.
Draper Associates
Exoxemis
LSKW Investments LP
OURCROWD
Triathlon Medical Ventures
DW Healthcare Partners
Frontier Capital
Midsummer Capital
PLENTIUM OY
Tri-State Growth Capital Fund II
Flywheel Ventures
Heritage Group
mTerra Ventures LLC
Power Heart Consortium
University Innovation Ventures
THE FOUNDERS FUND
New Enterprise Associates
Siemens Venture Capital
Key Capital Corporation
West Capital Advisors LLC
FTV Capital
Kentucky Science and Technology Corporation
SK GROUP
MALISH CORPORATION
Youngstown Business Incubator
Intel Capital
LIBERATION CAPITAL
New Science Ventures
STOP SANFILIPPO
Millstream Angel Club
Zapis Capital Group LLC
JDA Investments, LLC
MATW Investments LLC
Oak Investment Partners
Edison Ventures * Everett Partners Ltd.
Solera Qi Ventures
Evergreen Ventures Ltd.
Student Venture Fund at University of Akron
Evolution Capital Partners
SunBridge Partners*
FAIR OAKS HOLDINGS
Supply Chain Equity Partners
FLASHSTARTS
Sunrise Operations
Frantz Medical Ventures
Thomas Roulston Investment Partners
Glengary LLC* Global Cardiovascular Kadima Partners JumpStart Evergreen Fund
OrbiMed Advisors LLC
Mutual Capital Partners * Received Ohio Capital Fund Investment | ALL-CAPS & coinciding region color: First-time investor in 2013
118 TECH-BASED COMPANIES RAISED $257M 2013
FROM VENTURE CAPITALISTS & ANGEL INVESTORS AROUND THE WORLD
In 2013, 118 tech-based companies in Greater Cleveland raised $257 million from venture capitalists and angel investors—a 14% INCREASE over the amount attracted in 2012 and a return to pre-recession investment levels. This growth outpaces national trends: 2013 U.S. investment data recently released in The MoneyTree™ Report by PricewaterhouseCoopers and the National Venture Capital Association (based on data from Thomson Reuters) showed a slight INCREASE OF 7% over the same timeframe. 80 companies received seed-stage investment, which is the highest number recorded in the last decade. While positive for the region, the increase in the number of seed stage investments will ultimately require a corresponding increase in the amount of local venture and angel capital in order to satisfy the need for growth capital. As such, attraction of new, locally-focused funding sources will be critical to the region’s success moving forward. .
85
78
80
75
65
65
55
46
45
35
34
25
2009
2010
2011
2012
2013
NUMBER OF SEED-STAGE COMPANIES FUNDED
$257M EQUIT Y CAPITAL INVESTED BY S TAGE IN 201 3
E ARLY
$108.66M
SEED
$27.93M
GROW TH
$120.69M
CAPITAL INFUSIONS BOOSTING GROWTH NANOTRONICS IMAGING (nanotronicsimaging.com) raised a $7 million Series B round from the Founders Fund. The company—which is developing super-fine optical microscopy tools for health and medical care, biotechnology and life sciences research, and the semiconductor industry—is using the investment to hire more staff and expand operations to meet growing customer demand. VADXX ENERGY (vadxx.com), whose technology facilitates converting plastic waste to energy, received financing from global private equity firm Liberation Capital. This investment is allowing the Akron-based cleantech company to build its first commercial-scale facility.
$257M EQUIT Y CAPITAL INVESTED BY SEC T OR & S TAGE IN 201 3
SEED
As in previous years, healthcare remains one of the strongest-performing sectors in the region, with 32 companies raising a total of $95.72M. The majority (83%) of this funding went to medical device companies.
E ARLY
HE A L T HC A R E I NNOV AT O R S , NA T I ONA L I NT E R E S T
GROW TH $66.00M
INFORMATION TECHNOLOGY $116.72M
$10.22M
$40.50M
COMS INTERACTIVE (comsllc.com)
E ARLY
$34.65M
SEED
$13.47M
HE ALTHC ARE $95.72M
GROW TH $47.60M
GROW TH
raised a $21 million Series A round from global growth equity firm Summit Partners. The Cleveland- based healthcare IT company has developed the Daylight IQ™ disease management system which enhances nursing home resident quality of life through diease management and reduced hospital readmittance. SECURUS MEDICAL GROUP, LLC the Cleveland-based medical device company, had an initial closing of a $6.5 million Series B round led by St. Louisand Portland, OR-based 3X5 Special Opportunity Fund, with existing investor RiverVest also taking part. The financing supports further development of its proprietary temperature-tracking Aurora™ thermographic mapping system.
$7.09M
CLE ANTECH $44.23M
SEED
$3.77M
E ARLY
$33.37M
SEED
BUSINES S & CONSUMER PRODUC T S $.61M
$.47M
E ARLY $.14M
118 COMPANIES RECEIVED INVESTMENT BY S TAGE IN 201 3
E ARLY 32
GROW TH 66
SEED 80
REGIONAL PARTNERS INVESTING IN SUCCESS STREAMLINK SOFTWARE (streamlinksoftware.com) raised a total of $5.1 million in Series A capital in two rounds. Several sources, including non-Northeast Ohio firms Hyde Park Venture Partners, Hyde Park Angels and Blu Venture Investors, as well as existing local investor North Coast Angel Fund, participated. The Cleveland-based company, which is developing SaaS solutions to streamline the grant management process, recently released version 4.0 of its product, AmpliFund. 7signal (7signal.com) closed a $4 million Series B round led by Allos Ventures and Mutual Capital Partners, which comes on the heels of a capital infusion from the Akron BioInvestments Funds and the North Coast Angel Fund. The Akron-based IT company recently received a patent that describes and protects its Wi-Fi performance assurance and optimization solution that monitors and troubleshoots wireless local area networks (WLANs).
118 COMPANIES RECEIVED INVESTMENT BY SEC T OR & S TAGE IN 2013 E ARLY 12
GROW TH
INFORMATION TECHNOLOGY 66 COMPANIES
Information technology continues to become an area of strength for our region, with 66 companies attracting a total of $116.72M over the past 12 months.
1
SEED 53
S E E DI NG I NFORM AT I O N T E CHNOLOGY’S FUT UR E BOLD GUIDANCE (boldguidance.com)
E ARLY 5
GROW TH 2
CLE ANTECH 15 COMPANIES
SEED 8
received a seed-stage investment by virtue of participating in the inaugural class of the Flashstarts accelerator. The Cleveland company's web- and mobile-optimized app breaks down the college application process and deadlines into manageable tasks, and has already made national waves: In 2013, BOLD Guidance took first place in mobile apps at the national diverse tech conference, FOCUS100. CROWDENTIALS (crowdentials.com) received a post- accelerator follow-on seed-stage investment from Flashstarts. The company, whose software makes equity crowdfunding compliance and investor verification easier, recently signed up customer NIN Ventures, who plans to use Crowdentials' product to expedite and simplify investor accreditation.
SEED 15
SEED
HE ALTHC ARE 32 COMPANIES
GROW TH 3
E ARLY 14
BUSINES S & CONSUMER PRODUC T S 5 COMPANIES
4
GROW TH 1
4 COMPANIES E XITED IN 2013 “With the support of our new investor, we have initiated two new sales channels and acquired a highly regarded pet-related website that will allow us to continue our rapid growth for the foreseeable future.” Laura Bennett, CEO/Co-Founder, Embrace Pet Insurance
In mid-2013, a Canadian investor bought a controlling interest in the Beachwood-based pet insurance company EMBRACE PET INSURANCE (embracepetinsurance.com). However, the company is staying—and expanding—in Northeast Ohio. Besides a move into bigger offices to accommodate a growing number of employees, Embrace has also become the white-label provider of pet insurance for several large international insurance companies, an achievement that brings the company’s services to a much wider audience.
OTHER NOTABLE EXITS: IBM acquired Cleveland-based URBAN CODE (ibmdw.net/urbancode), whose product helps automate software delivery. Answers.com purchased EASY2 TECHNOLOGIES, INC. (easy2.com), a provider of online and interactive content such as product demos and selling solutions for brand manufacturers and retail chains. Pennsylvania-based Evolve IP bought Independence-based PARAGRID (paragrid.net), a provider of cloud computing services.
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 Northeast Ohio, contact Lynn-Ann Gries, JumpStart Chief Investment Officer, at 216.363.3400 or lynn-ann.gries@jumpstartinc.org. For previous years reports go to: jumpstartinc.org/results/reports
www.jumpstartinc.org
www.bioenterprise.org