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phone: 317. 252.0258 www.elevateventures.com

50 East 91st St | Suite 213 Indianapolis, IN 46240

Š 2015 Elevate Ventures. All rights reserved.


2014

ANNUAL REPORT


Contents Values & Mission Statement..............................................................................................1 CEO Letter to Stakeholders................................................................................................2 Capital Catalyst Designed to Fill Perceived Market Gaps...................................................4 Capital Investment Events & Portfolio...............................................................................6 Partnerships & Statewide Collaboration..........................................................................10 Economic Gardening.......................................................................................................12 Regional Highlights.........................................................................................................14 North Central Indiana.......................................................................................................16 Northeast Indiana............................................................................................................18 Northwest Indiana...........................................................................................................20 Southern Indiana.............................................................................................................22 Purdue Foundry...............................................................................................................24 Organizational Support - Sources & Uses.......................................................................26 Leadership.......................................................................................................................28


Values & Mission Statement

Mission Elevate Ventures nurtures and develops emerging and existing high-potential businesses into high-performing, Indiana-based companies.

Values > To build transparent and honest relationships with integrity and communication. > To be passionate, determined, and driven. > To embrace diversity. > To treat everyone with dignity and respect. > To serve entrepreneurs in good faith, responsibly and with care, competence and diligence.

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CEO Letter to Stakeholders

My name is Chris LaMothe, and I am pleased to inform you that I have accepted the position as Chief Executive Officer of Elevate Ventures. I have spent my career in the private sector as President and CEO of the Indiana Chamber of Commerce, as President of Oxford Financial Group, then as a partner and CEO of Sherry Laboratories until its recent sale to Element Materials Technology. I have also had the opportunity to be involved with helping to grow several Indiana companies. Although my work with Elevate does not begin until mid-July, 2015, I am excited to be a part of Elevate’s future. As we close out another year, we are humbled by the investments and, more importantly, the partnerships we have made over the past four years. For those of you who may not be familiar with Elevate Ventures, it is a private venture development organization that nurtures and develops emerging and existing highpotential businesses into high performing Indiana-based companies, with a focus on technology, life science and advanced manufacturing sectors. Throughout the past four years, we have kept our mission and vision of nurturing the developing companies throughout Indiana and as a result we celebrate our most successful year yet. Below are a few examples of the things our team accomplished throughout 2014:

“Throughout the past four years, we have kept our mission and vision... and as a result we celebrate our most successful year yet.”

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> Completed 24 seed and early-stage investment transactions, with a total of $8.28 million invested and nearly $13 million co-invested from other sources. > Launched the Indiana Seed Fund fund-of-funds co-investment program, with participation from seven Indiana fund managers and organized angel groups. Additional groups are expected to qualify in 2015. > Re-opened the state’s SBIR/STTR Phase I matching funds program. The program qualified 24 state matching grants for 21 Indiana companies, with an additional $4.37 million in federal grant awards directed to these Indiana companies by federal agencies. The matching program operates in conjunction with SBIR assistance provided in partnership with the State of Indiana’s Office of Small Business and Entrepreneurship.


“Elevate Ventures’ direct investment portfolio includes 47 companies, with nearly $30 million invested and over $190 million

co-invested since 2011.”

> Hosted two investor roadshows aiming to connect the best Indiana companies with regional and national venture capital firms in Indianapolis and Chicago respectively. Through these events, Elevate connected more than 75 Indiana companies and institutional investors combined in which over 150 quality meetings took place. More than $10 million in term sheets and investment interest have already followed. > Formal partnerships were also operationalized with Velocity, an accelerator program based in Jeffersonville, IN, and with the Purdue Foundry for the delivery of Entrepreneur-in-Residence services and the launch of the $2 million Elevate Purdue Foundry Fund targeting Purdue Foundry affiliated seed-stage companies.

The success we have made is all thanks to the Indiana Economic Development Corporation, community foundations, major corporate and individual donors throughout the State of Indiana and the staff we have standing behind our efforts. Elevate Ventures’ direct investment portfolio includes 47 companies, with nearly $30 million invested and over $190 million co-invested since 2011. My role as CEO begins shortly, and I look forward to traveling extensively around the state, meeting many of you, and listening to how Elevate can continue to work with you to build strong companies, and add solid jobs in your community. I’m excited about applying my experience and passion to the strong Elevate team. I hope to add value to the important work of increasing entrepreneurial passion, creating successful companies of the future, and building strong community support throughout Indiana.

Best Regards,

Christopher LaMothe CEO, Elevate Ventures

3


Capital Catalyst Designed to Fill Perceived Market Gaps

Grant programs and investment funds managed by Elevate provide startup capital to Indiana companies in the life sciences, information technology and advanced manufacturing industries. The intentions of each fund differ and target Indiana startups at different stages in their life cycle.

21 Fund Purdue Foundry Fund

HPSG Grants

SBIR Matching

High-Growth Lending $6 Million

Seed Fund $5.5 Million

21 Fund Extension $10.5 Million

Angel Fund $9.5 Million

Private Donations State $

Federal SSBCI $

Research Core Technologies

Idea Development

Product Development

Early Growth

High Potential Startup Grants (HPSG) The purpose of the grant program is to award small grants ($5,000 to $25,000) to high potential start-ups in fully funded (REAP/Quick Start) regions to enable attainment of a specific measurable outcome or milestone. $100,000 per region, per year can be awarded.

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Rapid Growth

Cap $1.5 Million

Maturity

2014 Grantees North Central Indiana............ $73,000 Northeast Indiana................. $75,000 Northwest Indiana................ $75,000

Total $223,000


SBIR/STTR Phase I Matching Elevate Ventures, in partnership with the Indiana Economic Development Corporation, through the 21st Century Research & Technology Fund, provides Phase I proposals with a support letter committing $0.50 towards every federal dollar awarded up to $50,000 in state matching per federal award with a lifetime maximum of $150,000 in state matching per company, including affiliates. In 2014, 24 state matching awards to 21 Indiana companies were qualified, totaling $1.165 million in state matching dollars against $4.367 million in federal grants.

Investment Funds Direct Investments Catalyze Emergence & Growth of High Potential Indiana Companies

Indirect Investments (Funds of Funds) Stimulate Formation & Capacity Building of Angel Groups & Fund Managers

Angel Fund > Seed Stage Up to $500,000 per company. Over 10% of total available capital is dedicated to investing in companies owned and managed by women and minorities under the Diversity Fund.

Seed Fund > Seed-Early Stage 7 angel groups and fund managers in Indiana are participating. High Growth Fund > Late Stage 4 fund managers in Indiana are participating.

21 Fund > Early Stage Up to $2,000,000 per company.

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Capital Investment Events & Portfolio

“The day was professionally done and very beneficial for me as I met some great entrepreneurs, advisors, and investors. It was nice to see so many quality opportunities coming out of Indiana and to meet several companies one-onone the morning before the showcase.” Bill Trainor, Mutual Capital Partners

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Elevate’s Capital Investment Events A critical piece to the funding circle that Elevate focused on in 2014 was helping portfolio companies connect to follow-on private funding in order to help them grow and scale faster. Some creative ways Elevate sought to accomplish this goal were by creating the Investor Roadshows and the Investor Webinar Series. We planned two roadshows, one in Indianapolis and Chicago. See the results of both below.

Indianapolis Innovation Showcase

Chicago Roadshow: Sponsored by Taft Stettinius & Hollister

19 Venture firms attended

17 Venture firms attended

24 of Elevate’s portfolio companies

18 Indiana companies participated in

85 one-on-one meetings took place

84 one-on-one meetings took place

$10M in term sheet and investment

100+ qualified introductions occurred

participated in the event

interest has occurred as a direct result of these introductions

search for additional capital

Direct results of this event have not been realized yet.


On top of the roadshows, Elevate also began hosting a webinar series the first Tuesday of every month that features two companies who are actively seeking capital. Participating companies include both Elevate portfolio companies and companies currently in due diligence. The webinars serve as an introduction to some of the investable deal flow we have throughout the state of Indiana. Each company is given 15 minutes to pitch their company, followed by 15 minutes of questions from investors.

700+ Investors are part of Elevate’s Investor Network 2014 Investments 2014 was a very busy and productive year for Elevate. We completed 24 investment transactions with a total of nearly $8.3M invested, leveraging $13M in co-investment from private investors. Of those 24 transactions, 16 were new investments and 6 were follow-on funding for existing portfolio companies. Elevate now has 47 companies in its portfolio, 5 of which have exited.

“This is a great event every year, and the one-on-one sessions just made it better!” Jeff Barry, Plymouth Ventures

“I really enjoyed the Chicago Roadshow hosted by the Elevate team. It provided an efficient way for both entrepreneurs and investors to get to know one another. I had the opportunity to meet companies that we otherwise may not have connected with.” James Burgum, Managing Partner and Co-founder of Arthur Ventures

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Capital Investment Events & Portfolio

Highlights from Portfolio

(continued)

At the end of 2014, Elevate’s portfolio employed 746 people with an average salary of

Elevate has invested $29,773,765 in 47 companies throughout Indiana over the last four years. The investments by Elevate have leveraged an additional $190,940,755 in private dollars. That’s a leverage of 6.41!

$65,899. The yearly payroll of our portfolio companies is nearly $50M. Total Investment Per Industry

Since 2011, Elevate has invested $29,773,765 in 47 companies in three market industries: Advanced Manufacturing, Information Technology, and Life Science. Our investments have leveraged over $190M in private dollars.

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Elevate Investments by Year

In 2014, Elevate invested $8,287,789 in Indiana companies. This totaled 24 separate transactions; 16 were new investments and 6 were follow-on funding in existing portfolio companies.


Portfolio Additions in 2014

Existing Portfolio Companies

*

*

*

* *

Nano-Rad

* Elevate has exited 9


Partnerships & Statewide Collaboration Our success wouldn’t be possible

The Innovation Showcase grew to a full-day event that, in addition to Indiana’s largest expo of fundable startups, featured morning educational sessions for Angel investors and founders, as well as a day-after Showcase feedback session for exhibiting companies.

without the help and collaboration of both statewide and regional organizations and stakeholders. The support of so many across the state, whether by formal agreement or simply those that we share a common goal with, is crucial in order

Elevate hosted the Entrepreneurship Luncheon at the Forbes Innovation Summit, which included a panel of seasoned entrepreneurs who built and invested in hundreds of millions and even billion-dollar companies in Indiana. Panelists included Scott Dorsey, Fritz French, and John Mcllwraith.

to see the progress we have seen to date. We want to formally thank you for all the hard work you have put into making Elevate and the state of Indiana what we are today. Specific partnerships that exist throughout Indiana are detailed throughout the next few pages.

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Eight northeast Indiana companies were honored at the special award ceremony for their innovative businesses, products and services. Two companies shared the Innovator of the Year title; 3BG Supply and AdapTek Systems.


2014 Sponsorships Elevate supported several events throughout 2014 whether by direct sponsorship dollars or by donating their time and resources. Below are a few examples:

> F orbes Innovation Summit Elevate hosted the Entrepreneurship Luncheon, which included an entrepreneurship panel consisting of Scott Dorsey, former CEO/Chairman of ExactTarget, Fritz French, former CEO of Marcadia Biotech, and John Mcllwraith, Managing Director of Allos Ventures.

> I nnovation Showcase The sixth annual showcase was record breaking in the number of exhibiting companies. Over 70 companies pitched and exhibited throughout the day for a chance to win $128K in cash and services. Along with a financial commitment, Elevate also hosted nearly 150 guests for a VIP reception to conclude the evening.

> 1 5th Annual TechPoint Mira Awards presented by BKD CPAs and Advisors TechPoint received a record-breaking 170 applications in 2014. Mira Awards is the biggest stage for tech in Indiana that awards and recognizes excellence, innovation and success.

> F ort Wayne Innovation Awards Elevate sponsored Greater Fort Wayne Business Weekly’s 2014 Innovator of the Year awards put on by KPC Media Group, Inc. AdapTek Systems won the “Technology” category and 3BG Supply Co won the “Emerging Company” category.

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Economic Gardening “We received excellent analysis through the program and have used that information to ensure we focus on a combination of bottom line growth and customer satisfaction.” Len Braner, CEO, Automation Engineering, (Fort Wayne)

Elevate’s Economic Gardening program provides services to second stage companies to help them achieve high growth at no cost to the company. It allows such companies to access expert leadership, market research, and implementation consulting services that they might not otherwise be able to obtain. Second stage companies have between $750,000 and $25 million in revenue and between 5 and 100 employees. Most of the companies served are on the smaller end of that range, with under $5 million in revenue and a median company size of 16 employees. Services are provided by three vendors under contract with Elevate. In 2014, 62 companies were enrolled in this program. This was the most enrollments since the program began in late 2011. Elevate’s newest region for Economic Gardening, Southwest Indiana, enrolled two companies. The others were located in North Central, Northeast, and Northwest Indiana. In 2014, 71 companies successfully completed the

program: 27 each in the North Central and Northeast regions, and 17 in the Northwest region. Based on feedback from 2011-2013, Elevate enhanced the economic gardening program in early 2014 by adding implementation consulting services that were targeted to follow the market research Edward Lowe had completed. Elevate contracted with an experienced business consultant who specializes in helping companies translate market research into action. The consultant contacted every company that had been through the program in the previous years and offered services. Many companies who had completed the original program in 2012 and 2013 reactivated to take advantage of this new service. Those companies were counted in 2014 results.

Elevate’s Economic Gardening program is a three-step methodology that guides and supports second-stage companies to greater success.

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Companies that completed the Economic Gardening program in 2014 North Central Indiana

Northeast Indiana

Northwest Indiana

Alicks Home Medical

Daltech Enterprises, Inc.

Bashpole Software

DBConnect Solutions, Inc.

American Limb & Orthopedic Company of Valparaiso

Bender Products

DeerSpace

Chillit Chillers

ECP American Steel

Commercial Office Products & Supply, Inc.

Engineered Systems

Digital Hill Multimedia

IMP Holdings, LLC

EmNet ESGI Exact-Tech Machining, Inc.

Forks RV Knight Mechanical Testing Koester Metals

Explore Media

LaBella Flora Children’s Boutique

FDC Graphic Films, Inc.

Laketronics

Flex Form

MTR Machining Concepts

Foegley Landscape

MyWay RTK

Haiku Learning Systems

Neoti

Hertzler Systems

QIG

Inter Technologies Corporation

Quikcut

Kessler Crane

Razor Products

MCE

SCP Limited

North American Signs

Sites Medical

NTA

Solar Usage Now

Plymouth Products Acquisition

Solfire Contract Manufacturing, Inc.

StrataShops

Structural Composites

Technical Services Division Precision Automotive

Team Quality Services

Treadstone, LLC

Three Birds Casual

Union Station Technology Center Valley Screen Process Company, Inc.

Tempus Technology

Apacks B&E Dage-MTI Digital Print Works DRD Falk-PLI Engineering & Surveying, Inc House of Fara Integrative Flavors Manufacturing Solutions International MCTD

“We had a wonderful experience, and have moved on with getting business consultation after this experience. I would highly recommend this program.” Jeremy Pinckert, CEO, Explore Media (Elkhart)

Models Plus SolaRover Tri-State Industries Vanair Waste Revelation Winn Machine

“Thank you for your help and ideas. The follow up program was appreciated as well.” John Yarger, CEO, North American Signs (South Bend)

Trusted Supply Chain Wrengineering

Wildwood Millwork

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Regional Highlights

Saint Joseph Porter

Lake

Elkhart

Steuben

Noble

De Kalb

Marshall

Starke

Elevate provides Indiana

Kosciusko Pulaski

Jasper

Whitley

Fulton

Allen

Entrepreneurs-in-Residence

Benton

Miami

Wabash

Wells

Adams

Carroll Grant

Howard

(EIRs) are deployed across the

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White

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services to help accelerate growth.

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entrepreneurs with advisory

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Tippecanoe

Warren

Jay

Tipton

Clinton

state and are available to support

Delaware Madison

Fountain Vermillion

emerging companies at all stages of development both pre- and

Boone

Montgomery

Randolph

Hamilton Henry

Parke

Putnam

post-funding.

Hendricks

Wayne

Hancock

Marion

Rush Morgan

Vigo

Johnson

Clay Decatur Brown

Bartholomew

Jennings

Martin

Daviess

Jackson

Washington

Scott

Clark Gibson

Pike

Crawford

Floyd

de Va n

Posey

rbu

rgh

Harrison Warrick Spencer

Perry

Ohio Switzerland

Orange Dubois

Ripley Dearborn

Greene Lawrence

Knox

Union

Franklin

Monroe Sullivan

Fayette

Shelby

Owen

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LaGrange

La Porte

Jefferson


Lean Startup Model

Examples of assistance that our EIRs provide include: •  Product positioning and marketing

IDEAS

•  Technical reviews •  Intellectual property analysis •  Primary and secondary market research

LEARN

• Government procurement

Minimize the total time through the loop

•  Regulatory pathway • Investment pitch creation and investor introductions •  Investor relations

BUILD

DATA

CODE

MEASURE

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product managers and startup

Saint Joseph

Elkhart

enthusiasts come ideas, form teams,

LaGrange

Steuben

Noble

De Kalb

Marshall

Starke

Kosciusko

Marshall on

Jasper

Whitley

Fulton

Allen

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Kosciusko

Pulaski

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together to share

Elkhart

Saint Joseph La Porte

Porter

Lake

White Benton

build products, and

Miami

Cass

Wabash

Wells

Grant

Howard Clinton

Tipton

Boone

Hamilton

rd

kfo

ac

Bl

Tippecanoe

Jay

Delaware Madison

Vermillion

Fountain

Montgomery

Randolph

Henry Parke

Putnam

Hendricks

Wayne

Hancock

Marion

Rush Morgan

Vigo

Clay

Franklin

Brown

Bartholomew

Jennings

Martin

Daviess

Jackson

Washington

Scott

Clark Gibson

Pike

Crawford

Floyd

Va n

de

rbu

rgh

Harrison Posey

Warrick Spencer

Perry

Ohio Switzerland

Orange Dubois

Ripley Dearborn

Greene Lawrence

Knox

Union

Decatur Monroe

Sullivan

Fayette

Shelby

Johnson

Owen

16

Adams

Carroll

Warren

launch startups!

on

designers, marketers,

We participated in two “Startup Weekend” events for both Notre Dame and the greater Michiana area. The program

gt

where developers,

Our staff mentored several teams through Notre Dame’s ESTEEM Lean Launchpad program, an innovative 11-month entrepreneurship master’s program designed to equip an individual with specific skills required to launch a

in

a 54-hour event

focuses on “lean startup” principles helping to validate the business idea and improve the likelihood of success.

nt

Startup Weekend:

Elevate Ventures worked to enhance the entrepreneurial ecosystem in North Central Indiana in 2014 through a variety of means, directly touching over 92 entrepreneurs and organizations with one-on-one meetings.

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North Central Indiana

Jefferson


business. Similarly, the Lean Launchpad program uses the business model canvas to help potential entrepreneurs validate business ideas. At least one of these companies has continued into product development stage and is expecting to raise funds in 2015.

Marketing $14,965 2%

Travel $15,134 2%

Since inception, Elevate has made four investments in North Central Indiana through the Indiana Angel Network Fund totaling $837,500, with three more companies in the pipeline for evaluation as of the end of the year. Throughout the year, 27 second stage companies completed the Economic Gardening program. Additional information can be found in the “Economic Gardening” section of this report.

2014 North Central Use of Funds

Economic Gardening $179,341 26%

Other involvement included mentoring teams through Notre Dame’s business plan competition as well as presenting the Lean Startup methodology in several classes. Beyond building the startup ecosystem, Elevate provided High Potential Startup Grants totaling $73,000 to three early stage companies to support them in achieving specific meaningful milestones. At the end of the year, two additional companies were in process.

Administrative $30,269 5%

Entrepreneur-in-Residence & Support Staff $367,760 54%

High Potential Startup Grants were awarded to three companies totaling

$73,000

High Potential Startup Grants $73,000 11%

Elevate has invested in three companies totaling

$837,500

•  supplierIQ® •  Trek10 • NanDio, Inc.

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Northeast Indiana Elevate has invested in three companies in Northeast Indiana: • Targamite • Wolfpack Chassis • Solstice Medical

Throughout 2014, Elevate found great success in Northeast Indiana in both assistance and investment. Our Entrepreneur-in-Residence engaged with over 100 entrepreneurs by helping them > D  evelop a board of directors or advisory board > H  ire appropriate management team members > Connect with resources such as accountants, lawyers, bankers, etc. > S  upply a variety of other mentoring opportunities to ensure their business scales appropriately.

Targamite’s CEO Gary Kaufman with Jerry, Kay and Lena Miculek. Jerry Miculek is among the top competitive shooters and holds multiple national titles and world records. Elevate’s Northeast Indiana Investor Network meets every other month to connect companies to private capital.

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Travel $21,913 3% Marketing $17,500 2%

The High Potential Startup Grant program took off in 2014. Elevate granted $75,000 to three companies in Northeast Indiana; DiTara (dba m.Tikiti), Rusher Medical, and Gifts Utopia. By the end of 2014, three additional companies had applied to receive funding in 2015. A program within Northeast Indiana that Elevate supports is the Angola Investment Fund (AIF). This is a $1M fund formed by Mayor Dick Hickman and the City of Angola in order to help startups and first and second stage companies in Angola city limits. Companies can receive up to a $100,000 investment which promotes

Administrative $31,596 4%

2014 Northeast Use of Funds

Economic Gardening $198,418 28%

Entrepreneur-in-Residence & Support Staff $367,124 52%

High Potential Startup Grants $75,000 11%


Elevate Investments.................................... $1,404,740

economic development by creating new high-skill, high-wage jobs. The main goal is to make the fund sustainable to support future businesses. The AIF invested $100,000 in one company in 2014.

P rivate Funding from Elevate’s Northeast Indiana Investor Network............ $4,213,980

In addition to assistance, we developed Elevate’s Northeast Indiana Investor Network, which connects companies to private capital and has been recognized as the state model. This network is comprised of over 150 angels/accredited investors who are interested in quality investable deal flow in the Northeast region and across the state. We held our first meeting in April and have met every other month since. Over $200,000 in private dollars was invested in companies as a result of each meeting. In total, more than $5,618,720 was invested in Northeast Indiana by Elevate and private investors.

Saint Joseph

Elkhart

LaGrange

Steuben

Noble

De Kalb

LaGrange

Steuben

Noble

De Kalb

La Porte

Porter

Lake

Marshall

Starke

Kosciusko Pulaski

Whitley

Fulton

Allen

Benton

nt

in

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Wabash

Wells

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Miami

Cass

on

Ne

wt

on

Jasper

White

Clinton

Tipton

Boone

Hamilton

Jay

Delaware Madison

Henry Parke

Putnam

Hendricks

Rush Morgan

Adams

Fayette

Union

Shelby

Johnson

Clay

Franklin Owen

Decatur Monroe

Sullivan

Wells

Wayne

Hancock

Marion

Wabash

nt

Randolph

Hu

Vermillion

Montgomery

on

Tippecanoe

Fountain

Brown

Bartholomew

Jennings

Martin

Daviess

Ripley Dearborn

Greene Lawrence

Knox

Allen

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Grant

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Warren

Vigo

Whitley

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Carroll Howard

A total of 27 companies in Northeast Indiana completed Elevate’s Economic Gardening program, described elsewhere in this report.

Jackson

Ohio Switzerland

Washington

Scott

Jefferson

Orange Clark Gibson

Pike

Dubois

Crawford

Floyd

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Harrison Posey

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Our work in Northeast Indiana wouldn’t be as successful without the help of local individuals and organizations such as the Northeast Indiana Regional Partnership, local economic development organizations, academic institutions, community development organizations, foundations, local officials, and many other stakeholders throughout the region.

$5,618,720

Total 2014 Investment

Warrick Spencer

Perry

19


Northwest Indiana

Elevate Ventures worked to enhance the entrepreneurial ecosystem in Northwest Indiana in 2014 through a variety of means, directly touching over 70 entrepreneurs and businesses.

Startup Weekend Event

In April, Elevate held the region’s first “Startup Weekend” at Purdue UniversityCalumet, bringing an internationally renowned program to Northwest Indiana. In the process, they learned “lean startup” principles to improve the likelihood a business will succeed.

54...........................hours 20.................participants 8......................... mentors 3........businesses created

$75,000 in

High Potential Startup Grants awarded: • Adjunct Professor Link • Ananse Health • AssureTech Inc. • Go Yodel Labs • One Place Now

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Another first for the region was the Northwest Indiana Tech Foundry in downtown Valparaiso. A total of six high tech companies participated, ranging from idea-stage to prototype-stage. For twelve weeks they worked to further develop their technologies and validate their business models, receiving expert coaching and advice, as well as seed funding. Several of the companies are raising private capital and one is being considered for Elevate funding. Beyond the Tech Foundry, another six companies received coaching and mentoring services designed to help make them more likely to grow and obtain capital. Elevate Ventures Entrepreneurs-in-Residence also worked with four companies that were considering moving into the region.

Another ongoing initiative was the Northwest Tech Foundry “meet-up” group. This networking program introduced technically and entrepreneurial minded people to each other. In a region that reaches from Hammond to Michigan City, people often don’t know each other and are unable to make the connections needed for startup businesses to thrive. The meet-up events helped bridge that gap. Over 20 people regularly participate. Throughout the year, 17 second stage companies completed the Economic Gardening program, described elsewhere in this report.

Six Northwest Indiana companies completed the region’s first business accelerator. Companies received mentoring and financing to validate, develop and grow their businesses.


Saint Joseph

La Porte

Porter

Lake

Elkhart

LaGrange

Steuben

Noble

De Kalb

Marshall

Starke

Kosciusko

Ne wt on

Whitley

Fulton

White

Miami

Cass

Benton

Wabash

Lake

Porter

LEARN

Allen

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Pulaski

Jasper

IDEAS La Porte

Wells

Minimize the total time through the loop

Adams

Carroll Grant

Howard Warren

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Tippecanoe Clinton

Tipton

Boone

Hamilton

d

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Jay

Delaware Madison

Vermillion

Fountain

Montgomery

DATA

Randolph

Putnam

Hendricks

Wayne

Hancock

Marion

Rush Morgan

Lean Startup Model

Union

Franklin Decatur Monroe

Sullivan

Fayette

Shelby

Johnson

Clay Owen Brown

Bartholomew

Jennings

Martin

Daviess

Ripley

Ohio

Jackson

Switzerland Washington

Scott

Jefferson

Orange Clark Pike

Dubois

Crawford

Floyd

de Va n

Posey

rbu

rgh

Harrison Warrick Spencer

MEASURE

Dearborn

Greene Lawrence

Gibson

CODE

Henry Parke

Vigo

Knox

BUILD

Perry

Marketing $12,026 2%

2014 Northwest Use of Funds

Travel $10,400 2%

Administrative $25,424 5%

Economic Gardening $99,742 19% High Potential Startup Grants $75,000 14%

Over twenty people participated in Northwest Indiana’s first Startup Weekend, learning Lean Startup methodology as a way to create technology businesses. Three businesses were created over the course of the intensive two and a half days.

Entrepreneur-in-Residence & Support Staff $305,212 58%

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Southern Indiana

Saint Joseph Porter

Lake

Elkhart

LaGrange

Steuben

Noble

De Kalb

La Porte

Marshall

Starke

Kosciusko Pulaski

Whitley

Fulton

Allen

White

Miami

Cass

Benton

Wabash

Wells

Adams

Carroll Grant

Howard

Columbus

Hu nt in gt on

Ne wt

on

Jasper

Warren

Clinton

Tipton

Boone

Hamilton

rd

kfo

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Bl

Tippecanoe

Jay

Delaware Madison

Fountain Vermillion

Bloomington Terre Haute

Montgomery

Randolph

Henry Parke

Putnam

Hendricks

Wayne

Hancock

Marion

Fayette

Rush Morgan

Vigo

Johnson

Clay

Franklin Owen

Decatur Monroe Monroe

Sullivan

Brown

Bartholomew

Lawrence Lawrence Martin

Daviess

Ripley Dearborn

Greene

Jasper Knox

Jennings Jackson

Washington

Jefferson

Scott

Clark Gibson

Pike

Dubois Dubois

Crawford

Floyd Floyd

VVaand nd er erbbu urrggh h

Harrison Posey

Warrick Spencer

Perry

Velocity Radius Indiana Headquarters

22

Ohio Switzerland

Orange

Evansville

Union

Shelby

2014 offered many opportunities for Elevate to provide assistance and investment consideration to companies and communities across Southern Indiana (as shown in the graphic). Elevate deployed an Entrepreneur-in-Residence (EIR) who served well over 100 entrepreneurs, economic development officials, investors and various other stakeholders in both rural and metropolitan areas throughout the year. There are two particular activity hubs that are highlighted on the next page; Radius Indiana and Velocity, with which we have formed partnerships. The dots on the map on the left indicate areas of activity throughout Southern Indiana. These communities include Evansville, Jasper, Bloomington, Terre Haute and Columbus. As our programs continue to develop in Southern Indiana we will foster additional relationships with other communities in the future, with the goal of growing and expanding the entrepreneurial ecosystems statewide. In addition to EIR services, Elevate began serving second stage companies with its Economic Gardening program in the Southwest Region in late 2014. An initial two companies were enrolled with additional companies planned in 2015. Additional information on this program is provided elsewhere in the report.


VELOCITY: Velocity is one of Elevate

Ventures’ strongest entrepreneurship development partners in Southern Indiana. It is an entrepreneurial hub sponsored by the Ogle Foundation and the Blue Sky Network. Their accelerator program hosted 13 startup teams in 2014 and offered co-working space to multiple other new companies, all of which received varying levels of mentoring and assistance from Elevate’s Entrepreneursin-Residence.

RADIUS INDIANA: Radius Indiana

a primary point of contact in Indiana for Naval Support Activity Crane, the gem of Indiana’s defense and national security network that is home to Crane Army Ammunition Activity and Naval Surface Warfare Center (NSWC) Crane. Radius leads regional collaboration by leveraging the diverse assets of Southern Indiana to drive business attraction, retention and expansion, increasing employment and investment opportunities and quality of life within the region. Radius has increased its capacity to provide entrepreneurship services in this area given its partnership with Elevate Ventures.

is one of Elevate Ventures’ strongest regional economic development partners. Together, we are working to transform the economy of Southern Travel $7,528 Indiana and to cultivate and support 2% the growth of entrepreneurship in the Marketing region. Radius Indiana is a regional $6,964 partnership representing eight counties 2% in South Central and Southwest Indiana. Formed in 2009, Radius also serves as

2014 Southern Indiana Use of Funds

Administrative $9,231 3%

Entrepreneur-in-Residence & Support Staff $295,774 93%

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Purdue Foundry

The Foundry is a hub to transform innovators into entrepreneurs. At The Foundry, Purdue faculty, staff and students find fast, effective ways, including Launchbox, Entrepreneur-inResidence (EIR) assistance, networking events, mentor and alumni networks and investment funds, to move their ideas to the marketplace. The Foundry has focused Purdue’s vast resources to accelerate and improve advancement of Purdue ideas and innovations that are changing our world. In 2014, Purdue and Elevate Ventures solidified a partnership, which provides funding for EIRs to assist early stage and high growth companies within the Purdue ecosystem. Michael Shepard, Brian Wolff, and Mark Cisneros serve as EIRs at the

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EPFF BLACK AWARD

EPFF GOLD AWARD

$20,000

$80,000

Investments in seed stage companies

Co-investment dollars for companies who meet established milestones

Purdue Foundry, which is based in Discovery Park’s Burton D. Morgan Center for Entrepreneurship. Foundry EIRs provide guidance to entrepreneurs on business plans, prototype development, funding, grant writing, regulatory requirements, mentoring, and other entrepreneurial activities. In addition to assistance, in conjunction with the Indiana Economic Development Corporation (IEDC), The Foundry and Elevate developed the Elevate Purdue Foundry Fund (EPFF), which provides two stages of capital: Black Awards and Gold Awards. For the Black Award, EPFF will invest up to $20k in seed stage projects; for the Gold Award, EPFF will co-invest up to $80k in Black Award winners who meet established milestones. In November, the EPFF received 26 applications for the Black Award in a wide range of sectors. The six-person committee, which consists of members from both The Foundry and Elevate Ventures, selected ten Black Award recipients. The Black Award winners are listed on the next page.


Black Award Winners

Emily Mishler, CEO / Founder, of Get Involved Be the Change discusses entrepreneurship at a Foundry Grounds event.

Juliana Casavan works with Tom Welborn and Joseph Louis on developing their idea during Launchbox.

Emily Mishler, CEO / Founder, of Get Involved Be the Change presents her company at a Foundry Grounds event.

Prehensile Technologies

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Organizational Support – Sources & Uses

Statewide and Regional Donors:

MutualBank Charitable Foundation, Inc.

Anonymous (1)

Northern Indiana Public Service Company

The majority of the

Ambassador Enterprises

dollars being deployed

BEACON Health Systems

are to stimulate entrepreneurial activity throughout the state of

1st Source Foundation Allen County Board of Commissioners

City of Fort Wayne City of Valparaiso Community Foundation of St. Joseph County

Indiana and in those

Corporate Partnership for Economic Growth

communities in which

Crowe Horwath

we have an active

Do it Best Corp.

presence.

Elkhart County Community Foundation Frontier Communications Greater Fort Wayne Chamber of Commerce Indiana Economic Development Corporation Infiniti of Merrillville Key Bank Lake City Bank McGladrey LLP

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Old National Bancorp Olive B. Cole Foundation, Inc. Parkview Health Porter County Commissioners STAR Financial Stepstone - Kosiusko Community The MTI Foundation, Inc. Tower Bank & Trust Company University of Notre Dame du Lac Valparaiso Economic Development Corporation


2014 Profit & Loss Statement 2014 Net Change in Fund Balance

Temporarily Restricted Net Unrestricted Net Total Net Assets Assets Assets

Income REAP 1,104,169 1,104,169 Quickstart 6,055 6,055 IEDC Professional Services 1,565,768 1,565,768 Management Fees (SSBCI) 152,500 152,500 Misc Income 2,133 2,133 Interest 5,279 5,279 Reimbursed Expenses 51,237 51,237 Restricted Pledges Received 227,250 227,250 Pledges Released from Restriction -1,008,761 1,008,761 0 Total Income -781,511 3,895,903 3,114,391 Gross Profit -781,511 3,895,903 3,114,391 Expense Contracted Program Services 477,501 477,501 High Potential Startup Grants 218,000 218,000 * Labor and Consulting 2,253,473 2,253,473 Marketing 125,394 125,394 Travel and Entertainment 84,011 84,011 Overhead 350,617 350,617 Total Expense 0 3,508,996 3,508,996 Net Income -781,511 386,907 -394,604 = Salary, benefits, taxes, recruiting and outside 3rd-party consultants *Note: Annual report financials are preliminary, unaudited financials.

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Leadership Board of Directors

Regional Advisory Boards

Phil Lodato Elevate Ventures Central Indiana

North Central

Northeast

Northwest

Mark Dobson Kosciusko (County) Chamber of Commerce

Mike Davidson Segway Capital and Management

Don Babcock NIPSCO

Francis Ellert Coca-Cola Bottling, Co.

Don Osika 21 Alive / NBC 33

John Davies Ivy Tech Community College

Larry Garatoni HQ Venture Capital

John Sampson Northeast Indiana Regional Partnership

Erica Dombey Regional Development Company

Shon Steger Biomet, Inc.

Gary Johnson Mortar Net Solutions

Tom Stone Ambassador Enterprises

Patrick Lyp City of Valparaiso

Chris Straw Team Quality Services

Dushan Nikolovski Center for Entrepreneurship Success Purdue University Calumet

Steve Martin BKD CPAs & Advisors Central Indiana Robert Myer Entrepreneur & Professional Investor Southwest Indiana John Sampson Northeast Indiana Regional Partnership Northeast Indiana John Schneider Industry Research at Purdue University Purdue University Kip Tom Tom Farms, LLC North Central Indiana

Shawn Peterson Union Station Technology Center Amish Shah Kem Krest

Alan Tio Whitley County Economic Development Corp. (EDC) Jacque Wilson Carson Boxberger

Kim Ramsey Greater LaPorte EDC/ Michigan City EDC Dave Ryan Lakeshore Chamber of Commerce Tim Scannell HighTower

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About Elevate Ventures Staff

Elevate Ventures is a private venture

Statewide

Regional

development organization that nurtures

Chris LaMothe Chief Executive Officer

Robert Clark Entrepreneur-in-Residence Northeast Indiana

and develops emerging and existing

Dan Owen Entrepreneur-in-Residence Southern Regions

performing, Indiana-based companies.

Kelly Schwedland Entrepreneur-in-Residence North Central & Northwest Indiana

providing access to capital, rigorous

Michael Shepard Entrepreneur-in-Residence Purdue Foundry

right mix of resources businesses need

Alexandra Bowers Office Manager Karen Goldner Economic Gardening Program Director Ting Gootee Chief Investment Officer Phil Lodato General Counsel & Chief Compliance Officer Erica Schweyer Senior Analyst Barbara Uggen-Davis Chief Financial Officer

high-potential businesses into highElevate Ventures accomplishes this by business analysis and robust advisory services that connect companies with the to succeed long term. As a not-for-profit organization, Elevate Ventures is able to offer unbiased, in-depth perspective and recommendations. To learn more about Elevate Ventures, its team and its funds under management, visit www. elevateventures.com.

Profile for Elevate Ventures

Elevate Ventures 2014 Annual Report  

Elevate Ventures 2014 Annual Report