Annual Report 2012

Page 1

2012 Transforming Indiana’s Business Landscape

A year in review

At Elevate Ventures, our mission is to cultivate the growth of Indiana’s entrepreneurial community. That’s why we’ve spent 2012 developing programs that provide funding to high-potential, high-growth companies. These initiatives provide targeted assistance to entrepreneurs throughout the State, and partnerships to provide a network of investors and stakeholders that share our passion for entrepreneurship.

A Message from Elevate’s CEO

Changing the Business Landscape in Indiana Dear Stakeholders and Partners of Elevate Ventures, Now. Now is an exciting time in Elevate Ventures’ development. No longer are we content to be just an idea. We have truly become a change agent within the Indiana business landscape. In order to be a catalyst for change, we needed to think creatively with the launch of our organization. That meant forming partnerships with community organizations, going after sums of federal money that many states still have not secured, and designing programs with the belief that we weren’t going to be just a bank. We spent this year thinking about entrepreneurs, their companies, and the solution mix that would ultimately help each individual reach his or her own potential. Elevate’s mission is to target high-growth companies because they are engines for job growth. And throughout 2012, that’s what we did. We launched the Regional Entrepreneurship Action Plan*, a three-year initiative meant to cultivate entrepreneurship and the growth of high-potential startups. We provided thousands of hours of assistance to entrepreneurs and coached hundreds of second-stage companies to their next level of growth. All in all, Elevate’s first evolutionary phase was critical for the establishment of its programs. But now that 2012 has come to a close, it’s time for us to begin thinking about what the Elevate team would like to achieve as it begins to evolve in the coming years. The Elevate Ventures team has built a metric driven organization focused on delivering solid outcomes for all of our stakeholders. But job growth tends to be a cumulative process, and we will need to continue to be innovative. Thankfully, the progressive platform that the past and current state leadership has supported through the creation of Elevate Ventures has opened a variety of interesting discussions with potential partners that will be continually significant to the innovation landscape in Indiana. No matter what obstacles or challenges exist in Indiana’s innovation culture, our primary concern is meeting the needs of the entrepreneur, the stakeholder, the investor and the legislator. We do this in the pursuit of making Indiana a robust entrepreneurial ecosystem for growth and wealth creation. Elevate Ventures is the connector that sits in a critical place, balancing the myriad of private and public agendas that include everything from internal rates of return and innovation to translation of research to business models and job acceleration. This is the competitive position that Elevate Ventures has carved out, and our ability to deliver consistent outcomes in the coming years to our stakeholders will be the final test of our sustainability. Thank you for your support,

Stephen Hourigan

How does the data support Elevate’s mission?

“We target high-growth companies because they are engines for job growth.”

– Steve Hourigan, CEO, Elevate Ventures

Critical Period of Job Creation for Early-Stage Companies

In a recent study by Outlier*, the top .1% of Indiana-based companies (a total of 390) firms created 115,458 net new jobs from 2005 – 2010 – 296 jobs per company on average. Overall, the top 1% only created 211,196 jobs, or 54 jobs per company. The data above, however, shows that many high-potential firms capable of high-growth don’t survive past the five year mark. If we support those firms and increase the number of startups that survive, then we can drastically improve what they’re able to contribute to Indiana’s ecosystem.

* The definition for this term is listed in the glossary on pg. 34


“Job growth tends to be a cumulative process.” – Steve Hourigan, CEO, Elevate Ventures

Total Jobs Created by Years of Growth

Number of Jobs Added

Outlier Report, “Indianapolis High-Growth Study”, 2012

The data above shows that the firms that have grown over a period are likely to continue the trend of adding new jobs. If we want companies to continue adding more jobs, we should help them repeat growth even in small increments. This is why it’s critical for us to support Indiana’s existing, high-performing companies as well as high-potential, early-stage companies.

With this data in hand, we began to understand who to target and why. But you’ll have to read on to see how we got started.


Elevate Ventures employee joins startup software company At the beginning of January, former Elevate Entrepreneur-In-Residence (EIR)* Ken Gramley joins Elevate Ventures client Emerging Threats Pro team as its CEO. By the end of 2012, Ken and Matt Jonkman, founder of Emerging Threats Pro, grew the company’s revenue over 500%, introduced a new product in July 2012, developed a new website and product branding in September 2012, and began growing their team with a new Software Engineering Manager and Director of Marketing. They raised a total of $650,000 in financing from private investors by the end of 2012.



Since 2010, the 21st Century Technology & Research Fund* has committed over


$15M and finalized 17 investments.

Elevate Ventures finalizes second investment in Bostech Corporation Bostech Corporation, provider of®, the world’s leading Healthcare Relationship Management™ solution, approached the 21st Century Research and Technology Fund (21 Fund)* in 2010, seeking to raise a round of $2M from new investors. Based on the company’s proven track record and magnitude of the opportunity, the 21 Fund* agreed to provide $1,000,000 to support technology development and initial product roll-out. Over the next two years, with demonstrated sales traction, Bostech approached the 21 Fund* again, this time while under Elevate’s management. They sought to raise an additional $1,000,000 in capital to expand marketing and sales of, with $1M in private co-investment. Since its debut in May of 2011, has been adopted by over 150 lab locations across the country, processing 165 million transactions annually. Healthcare leaders including Alere, St. Vincent Health, South Bend Medical Foundation, and Alegent Creighton Health rely on to deliver the highest level of client service while improving patient care. “Steve Hourigan and the Elevate Ventures team have played a key role in accelerating our launch and commercialization of,” says Brad Bostic, Founder & CEO of Bostech. “With the capital we have received from the 21 Fund* under Elevate’s management, has achieved triple digit annual revenue growth and emerged as the ultimate healthcare CRM.”

* The definition for this term is listed in the glossary on pg. 34


Elevate employee speaks to MBA class at Notre Dame Tim Braun, Elevate Ventures’ EIR* in the North Central Indiana** region, guest lectures at Bob Moore’s Notre Dame MBA class: Funding New Ventures.



Since the first investment from the Indiana Angel Network Fund (IANF)*, Elevate has invested over

$1,125,000 in 7 companies.

* The definition for this term is listed in the glossary on pg. 34


** Regions defined on page 30

Touché Controls, a lighting company in Fort Wayne, Indiana, announces the expansion of its operations Touché Controls, an efficiency control lighting company, announces the expansion of their operations in Fort Wayne, Indiana. This announcement follows their participation in Elevate’s Economic Gardening Program* and was covered in the region’s local Journal Gazette newspaper.



Elevate Ventures makes first investment from its Indiana Angel Network Fund (IANF)* In April 2011, Elevate Ventures and the Indiana Economic Development Corporation* (IEDC) partnered to apply for the State Small Business Credit Initiative* (SSBCI). The funds awarded totaled over $34.3 million for use in entrepreneurial and small business activities. Elevate Ventures used these funds to create a direct investment fund, titled the Indiana Angel Network Fund (IANF)*, and to support other fund-of-fund structures. The Elevate team began making investments from the IANF* as early as February 2012.


Elevate staff members & regional stakeholders host kickoff fundraising meetings to support entrepreneurial assistance programs In October 2011, Elevate launches the first phase of their Regional Entrepreneurship Action Plan (REAP)*. During this phase (nicknamed



Quick Start)*, each of the regions raised an initial sum of $300,000, allowing each region to participate in Elevate assistance programs offered and facilitated by Elevate’s Entrepreneurs-InResidence in the Northern Regions. By March 2012, many of the goals set for programs launched during this first phase had

By the end of 2012, stakeholders in Northern Indiana had already raised

been met. Seeing the many successes throughout

to over support the expansion of entrepreneurial assistance programs in Northeast Indiana**, North Central Indiana**, and Northwest Indiana**.

three-year REAP*, which would exponentially



the region and the potential of expanding these programs, regional stakeholders soon began working with Elevate staff members to raise another $1M per region to fully support the longer, increase the assistance resources available to entrepreneurs in each region and the expansion of programs launched in this initial phase.

Through the Economic Gardening* Program, Elevate’s Entrepreneurs-In-Residence in the Northern Regions worked with

71 companies and provided over 5,000 hours of

assistance to high-potential, high-growth companies by the end of 2012.

“It has been a refreshing experience to work with [the Elevate Ventures team] and [they have] added great confidence to our team in understanding areas of our business that needed more attention in the past or simply needed a more effective approach to reach our desired goals.”

– Economic Gardening* client


Elevate employee judges regional competition for entrepreneurs Elevate participates as a judge in the Big Sell Competition in Northwest Indiana**. The Big Sell is an entrepreneurial competition designed to give applicants two minutes to sell their idea to some of the best and brightest business minds in the region.

* The definition for this term is listed in the glossary on pg. 34

** Regions defined on page 30


Elevate judges at “idea” competition Mark Vreeke, one of Elevate’s Entrepreneurs-In-Residence* in the North Central Region, judges at the BMEidea competition. This is the leading competition in the United States for biomedical and bioengineering students interested in presenting effective, functional and affordable technology solutions to clinical medical problems.




Elevate Ventures invests in website for salons and stylists

The co-owners of My Best Friend’s Hair, a website that connects consumers with local stylists, announces in early April the completion of their first round of funding. Elevate committed a total of $125,000 out of the Indiana Angel Network Fund* to the company and added Ryan Pfenninger as a board member. Elevate was joined in

the investment round by Gravity Ventures and other private investors. Beyond their initial release, My Best Friend’s Hair was featured in publications like Upstart Business Journal, Business Wire, the Indy Star and on WishTV.

* The definition for this term is listed in the glossary on pg. 34


** Regions defined on page 30

First pitch night held in Northern Indiana In early April, Elevate’s regional Entrepreneurs-InResidence* hosted their first “pitch night,” which gave startups an opportunity to run through their pitches to investors. Pitching presentations were given by MyFit, Carex, and Redpost, three companies receiving assistance from Elevate’s Entrepreneurs-In-Residence*.


Community initiative contributes to Elevate’s Regional Entrepreneurship Action Plan* Orthoworx, a community-based initiative in Northwest Indiana** that works strategically and collaboratively with the orthopedic industry, announces their contribution of $12,500 to the REAP* effort in Warsaw, Indiana. The news was covered in the region’s local papers.

“OrthoWorx is interested in expanding the culture of innovation and entrepreneurship and believes it is vital to Kosciusko County. We appreciate the efforts of Elevate Ventures to identify and support new growth companies in our area.”

– Sheryl Conley, CEO, OrthoWorx


Elevate’s EIR’s* host second regional “Pitch Night” for startup companies seeking funding In May, the regions in Northern Indiana host their second regional pitch night. This time, the two pitching companies included Janus Motorcycles and EnPak, both of whom received assistance from Elevate’s EIRs*.



Regional Organization hosts “Thr!ve Entrepreneurial Day” in Northeast Indiana** Robert Clark, Entrepreneur-In-Residence* in Northeast Indiana**, speaks at the Noble County Economic Development Corporation for “Thr!ve Entrepreneurial Day.” The event featured panelists and organizations that explained what entrepreneurial resources were available in the region and what kind of impact those organizations had.

* The definition for this term is listed in the glossary on pg. 34


** Regions defined on page 30

The 21 Fund* IT Portfolio has attracted over

$17M in private

investment to date and the Indiana

Angel Network Fund’s IT Portfolio has attracted over investment.

$1.6M in private


Elevate commits additional investment dollars to previous 21 Fund* recipient Elevate Ventures commits a second round of funding to Wellfount of $1M. This commitment* was given alongside an additional $10M in co-investment from other private contributors. Wellfount provides integrated technology solutions to the institutional market (i.e. skilled nursing facilities), utilizing electronic medical records and automated dispensing technology.


Elevate’s Northeast Indiana** staff in the news Robert Clark (pictured left) and Dave Corcoran (pictured right), two of Elevate’s Entrepreneurs-In-Residence in Northeast Indiana**, are featured in the Greater Fort Wayne Business Weekly article, “Elevate Ventures: Making a Difference in NE Indiana.”

News series on entrepreneurship continues The Elkhart Truth publishes their second article on entrepreneurship in the North Central region, referencing two of Elevate’s clients in the IT/ software industry – Haiku Learning and SMART Temps.




Elevate client featured in an article series on entrepreneurship The Elkhart Truth publishes their first article in the Corporate Partnership for Economic Growth’s (CPEG)* series, featuring one of Elevate’s advanced manufacturing* clients, Janus Motorcycles.

“Elevate has offered advice, input and helped us make connections to an investor group, an accounting firm, and an entrepreneur with manufacturing experience that is now on our advisory board...We would not be where we are without Elevate.”

– Richard Worsham, co-founder, Janus Motorcycles

* The definition for this term is listed in the glossary on pg. 34


** Regions defined on page 30

Elevate staff member attends the South Bend Economic Summit Tim Braun, one of the Entrepreneurs-In-Residence in the North Central Indiana** region, participates as a panelist at the South Bend Economic Summit, an event that attracted over 200 community members in the North Central region to discuss how to grow the economy and break down barriers.

CloudOne, a provider of cloud computing software, announces $1.7 Million Series B* round of venture funding In late June, CloudOne announced the completion of their Series B Funding Round*, which included an


$825,000 commitment* from Elevate Ventures out of the 21st Century and Technology Research Fund* and its Indiana Angel Network Fund*. Other


investors, including former Colts players Ryan Diem and Jeff Saturday, also committed to the round for a total raise of $1.7 million. CloudOne received significant assistance from Elevate Ventures staff, whose members have provided

Third article in entrepreneurship series features more Elevate clients

technical guidance and business

The Elkhart Truth publishes their third article in the region’s series on entrepreneurship in North Central Indiana**, featuring two of Elevate’s clients in the life sciences industry; LightSprite, located in South Bend, IN, and EnPak, located in Warsaw, IN.

Ventures Entrepreneur-In-Residence*,

advice, allowing the CloudOne team to sharpen their leadership and further develop their financial functions and proformas. CloudOne has also recently added Tom Kilcoyne, former Elevate to their team to provide further direction for the company moving forward.


Elevate Ventures hosts “Investor Day” In early July, Elevate hosted its first Investor Day, providing an opportunity for Elevate clients to meet other investors and present their pitch presentation. Investors included entities like Allos Ventures, Halo Capital Group, BioCrossroads, CHV Capital, the Purdue P3 Alliance and investor group representatives. Pitching companies included Emerging Threats Pro, Wolfe Diversified Industries, Lab Automate Technologies and Silicon BioDevices.

“This was a great opportunity for investors to get a good look at potential deals and meet other investors, while giving the presenters an opportunity to pitch to investors and get valuable feedback on their business plans. Partnerships like these are critical as we think about strengthening the State’s entrepreneurial ecosystem.”

– Jim Jay, TechEquity Ventures



Elevate Ventures is invited to speak at the Innovation Showcase Ryan Pfenninger, Venture Partner at Elevate, is invited to speak at the Innovation Showcase, a showcase held in Indianapolis for fundable companies to present their business idea. In 2012, the event featured over 50 high-potential companies in the areas of information technology*, alternative energy, life sciences, medical devices, and industrial products.

* The definition for this term is listed in the glossary on pg. 34


** Regions defined on page 30

Elevate members attend the Indiana Black Expo* Ryan Pfenninger, Venture Partner at Elevate Ventures and Ting Gootee, Vice President of Investments, attend the 40th Annual Indiana Black Expo* to talk about Elevate Ventures, its program structure and the importance of diversity to entrepreneurship.

Lake City Bank commits $90,000 to the Regional Entrepreneurship Action Plan Lake City Bank, the single bank subsidiary of Lakeland Financial Corporation, finalized their commitment* of $90,000 to the Regional Entrepreneurship Plan midway through July. This commitment* was a significant signal of community support and the desire of its members to see future growth of entrepreneurial endeavors and was featured in local news. Michael L. Kubacki, Chairman and Chief Executive Officer, commented, “There is a tremendous history of entrepreneurial success in Northern Indiana…This action plan will provide support for the establishment of the next generation of successful entrepreneurs and we’re looking forward to working with the Elevate Ventures team on the program.”




Elevate Ventures announces partnership with online community for entrepreneurs


Elevate judges local event for entrepreneurship Robert Clark judges the all-day

Elevate Ventures and IdeaCrossing*, a free online community that connects entrepreneurs to potential business mentors, investors and service providers, announces their partnership.

Millennial 2020 Spark Tank event in

“Elevate Ventures is focused on creating a supportive environment in Indiana for entrepreneurs in regions where few resources have traditionally existed,” said Dave Clark, Venture Partner, Elevate Ventures. “Joining forces with IdeaCrossing* means that many Indiana entrepreneurs will have one more access point to a critical online community that will allow them to meet and work with the right people.”

pitch ideas on how to spark change

Fort Wayne at the University of Saint Francis Performing Arts Center. The goal of the event? To explore and in Northeast Indiana**. Two groups of Millenials were the winners of $500 in seed funding to help bring their ideas to fruition.


Elevate reaches and surpasses expected leads to be collected in 2012 Although Elevate had set a goal of collecting 300 leads of qualified companies for its programs by the end of the 2012, they instead reached this anticipated number by mid-August. As pictured by the accompanying graph, by the end of 2012, Elevate eventually collected a total of 536 leads.

Leads Generated by Elevate in 2011 vs. 2012 Due to the extensive expansion of resources in the region and staff members’ diligence, the quantity and quality of companies applying for Elevate’s services significantly increased from 2011 to 2012. 2012

2011 0









Elevate staff speaks at Techpoint* event Howard Bates, Chairman of Elevate Ventures, and Ting Gootee, Vice President of Investments, speak at Techpoint* Thursday to an audience of over 100 attendees about Elevate, its mission and its structure. Techpoint* Thursday is a monthly event, featuring speakers on a wide variety of topics related to the tech activity in Indiana.


Wolfe Diversified provides online gate management and ticketing solutions for public events.

Smarter Remarketer provides Software as a Service (SaaS)* email marketing automation and analysis suite that allows multi-channel retailers to bolster customer lifetime value.

Courseload is the leading deviceand content source-neutral aggregator and distributor of digital textbooks and course materials. Its solution eliminates the barriers that have impeded the print-to-digital evolution in academia.

Three Elevate companies featured on Indiana’s 2012 “Companies To Watch” list In late August, the Chamber of Commerce held their annual “Companies to Watch” event, which showcases many of the fastest-growing, up and coming Indiana businesses. Of the finalists, three were Elevate portfolio companies. They included Wolfe Diversified, Smarter Remarketer, and Courseload. All of the businesses considered employed between six and 150 full-time employees and had between $750,000 - $100M in annual revenue or capital.




“Connecting investors and experienced entrepreneurs with these MBA students is integral to the success of attracting and retaining talents in Indiana.”

– Ting Gootee, Vice President of Investments, Elevate Ventures

Elevate staff participates in Case Challenge Week at the Kelley School of Business Elevate Ventures staff participates in the Case Challenge Week at Indiana University, working with MBA entrepreneurship students on case studies of Elevate’s own portfolio companies.

* The definition for this term is listed in the glossary on pg. 34


Goshen Chamber of Commerce celebrates launch of working environment for local entrepreneurs and service providers Goshen Chamber of Commerce celebrates the launch of the Chamber’s “LaunchPad*,” a co-working space for entrepreneurs and resource providers in the Goshen, IN area.

“This type of space will provide a one stop location for persons looking to start a business [and] connect with the Michiana market place. The Board of Directors of the Goshen Chamber feels that this [space] is an excellent fit with the Chamber and our mission to champion our community’s business future.”

– David Daugherty, President, Goshen Chamber of Commerce



Elevate finalizes investment in technology company Elevate Ventures commits $625,000 out of the 21 Fund* and the Elevate Ventures Indiana Angel Network Fund* to Wolfe Diversified Industries, a technology company located in Anderson, Indiana. This was the sixth investment made by Elevate in an IT company in 2012.

“With successes like ExactTarget, Aprimo and Angie’s List, we start to see a vibrant IT sector* in Indiana. Elevate Ventures has a built a track record of co-investing with private IT investors, and will continue to leverage this growing asset.”

– Stephen Hourigan, CEO, Elevate Ventures

* The definition for this term is listed in the glossary on pg. 34


** Regions defined on page 30

To date, past investments made by the Elevate Ventures Angel Network Fund and the 21st Century Technology and Research Fund in advanced manufacturing* have from the private sector. attracted over


Elevate Ventures invests in advanced manufacturing* startup Elevate Ventures agrees to a final commitment* of $600,000 out of the 21st Century Technology and Research Fund to PartTec, Ltd., a developer and manufacturer of nonhelium-3 neutron detectors for global security, including Homeland Security, neutron research and medial imaging. Earlier in the year, PartTec was named a 2012 R&D100 Award winner in conjunction with Oak Ridge National Laboratories for the development of their non-helium-3 wavelength shifting scintillator neutron detector.



North Central Indiana** raises $1M commitment* for the Regional Entrepreneurship Action Plan CPEG* announces the completion of a significant fundraising effort. They completed this effort in conjunction with Elevate Ventures and various community stakeholders to raise $1M for the Regional Entrepreneurship Action Plan in the North Central Indiana** region. This money will go to benefit the counties of St. Joseph,

Elkhart, Kosciusko and Marshall. Local donors to the program included 1st Source Foundation, CB Richard Ellis, the Community Foundation of St. Joseph County, Crowe Horwath LLP, the Elkhart County Community Foundation, Elkhart General Hospital, KeyBank, Lake City Bank, McGladrey LLP, Memorial Hospital and Health

System, Mutual Bank, NIPSCO, Old National Bank, StepStone Angels - Warsaw, the University of Notre Dame and an anonymous donor. This news was featured in local publications, including the South Bend Tribune.


Within the advanced manufacturing* industry, we are looking for capital-efficient models with clearly validated market opportunities and customer interest. These entrepreneurs have brought not only the opportunity, validation, and execution track record, but a group of well-heeded industry advisors to the table.

– Ting Gootee, Vice President of Investments, Elevate Ventures

Elevate finalizes funding commitment* to Wolfpack Chassis Wolfpack Chassis, a manufacturing operations company that plans to build chassis for recreational vehicles and manufactured homes, receives a funding commitment* of $125,000 from the Elevate Ventures Angel Network Fund. The company raised an additional $630,000 from private investors. The company recently attracted the notice of the Indiana press when they announced their intention to create 100 jobs in its first year. The company considered various locations in northern Indiana and southern Michigan before choosing a former productions building in Kendallville, which is located in Northeast Indiana**.



Elevate Ventures sponsors Indianapolis entrepreneurial conference 22

Elevate Ventures sponsors the Startup Bowl, one segment of the larger PowderKeg Conference hosted by Verge. This was the PowderKeg’s first year, and it featured over 20 speakers experienced in entrepreneurship, fundraising and company growth. The conference was attended by hundreds of entrepreneurs interested in connecting with

investors and hearing the experiences of their peers. Ting Gootee participated on Elevate’s behalf at the Startup Bowl, which featured 12 companies competing for $15,000. Pictured above are team members from FoundOps, the winning startup from the competition.

Techpoint* hosts Innovation Summit, featuring Seth Godin* as the keynote speaker Techpoint* hosts the Innovation Summit, featuring over 50 service providers and companies interested in nurturing technology, innovation and entrepreneurship in Indiana. The summit’s keynote speaker was Seth Godin*, noted marketer and entrepreneur.

“Indiana’s reputation for innovation continues to expand...But the same person who invented the ship also invented the shipwreck. [And that’s because] the process of innovation requires failing over and over and over again...until it works.”

– Seth Godin, renowned marketer and entrepreneur




Local corporation gives to support entrepreneur assistance programs The Post-Tribune, a Chicago Sun-Times publication, publishes NIPSCO’s announcement of its commitment* of $175,000 to the REAP* in the Northwest Indiana** Region. NIPSCO, a corporation that provides gas and electric services throughout Indiana, is a significant supporter of the community and entrepreneurial endeavors and initiatives.

* The definition for this term is listed in the glossary on pg. 34

** Regions defined on page 30


Elevate Ventures funds first company from the Community Development (ICD) Fund* Redpost, an out-of-home advertising medium, receives over $30,000 from Elevate’s Indiana Community Development Fund, a sub-program of the Indiana Angel Network Fund. First developed by Eric Kanagy in 2007, the advertising medium is used in local hangouts and businesses as

a way to broadcast other events and activities throughout the community. “Redpost is a new way of looking at advertising,” said Kanagy. “Consumers have smart, constantly evolving filters to accept only the media they know and are interested in, and social

and mobile formats have found smart ways to connect to that. out-of-home media, on the other hand, has not – until now. That’s what Redpost is – it’s taking a medium that is traditional and stale and connecting in a new way with consumers that they find interesting and meaningful.”

Elevate judges second Startup Weekend Tim Braun participates as a judge in South Bend’s second Startup Weekend. Startup Weekends are 54 hour events where startup enthusiasts come together to share ideas, form teams, build products and launch startups.




Elevate makes IANF* commitment* to Smarter Remarketer Elevate Ventures funds Smarter Remarketer, a Software-as-a-Service email marketing automation and analysis suite that allows multi-channel retailers to bolster customer lifetime value by creating relevant and effective customer experiences. The company received nearly $500,000 from the Elevate Ventures Indiana Angel Network Fund* and raised a co-investment from private investors.



Elevate staff attends My City Summit David Corcoran, Entrepreneur-InResidence* in the Northeast region, is a panelist at the My City Summit in Fort Wayne, Indiana. The My City Summit is organized and executed by the Young Leaders of Northeast Indiana**, an all-volunteer organization committed to making its community a better place. The organization focuses on three tenets, including community growth and development, volunteering and involvement, and personal and professional development.

Elevate announces the launch of the Regional Entrepreneurship Action Plan*

Redpost marks the first investment made out of Elevate’s Indiana Community Development (ICD) Fund*, a fund that is dedicated to supporting community-interested assets focused on early-stage businesses in Indiana with high-growth potential.

In mid-November, Inside Indiana Business announced the launch of Elevate’s Regional Entrepreneurship Action Plan (the REAP)* after the finish of the Quick Start* program in October. The REAP* is a regional initiative that supports innovation, entrepreneurial activity and associated economic growth opportunities throughout the northern regions of Indiana.

The ICD Fund* accomplishes this goal by working with experienced local angel investor groups to leverage their domain knowledge and design to build thriving innovation-based businesses in their communities. The Fund’s maximum investment size is $50,000 per company.

Quick Start*, a one-year bridge strategy to the larger three-year REAP* initiative, provided the Elevate team with an opportunity to launch a smaller scale of the REAP’s* activities, including Elevate’s Economic Gardening Program* and 30 its Entrepreneur-In-Residence (EIR)* resources. This one-year bridge strategy allowed Elevate collect significant data about the effectiveness of the program, as well as launch the fundraising process for the larger REAP* initiative.


Deal Flow: Northern Regions vs. Rest of State 2011






Deal Flow From Northern Regions**

Deal Flow From Northern Regions**

All Other Deal Flow

All Other Deal Flow

In the last year, Elevate Ventures’ deal flow and measurable entrepreneurial activity has increased from under five percent to nearly forty percent.

* The definition for this term is listed in the glossary on pg. 34


Elevate CEO attends national conference for entrepreneurs and venture capitalists Steve Hourigan, CEO at Elevate Ventures, flies to Boston to speak at the 2012 New England Venture Summit*, hosted by youngStartup* Ventures, an organization with a mission to invest its time, experience, knowledge and connections in young entrepreneurs and startups. The conference provided networking opportunities to meet other investors around the nation and to better understand the entrepreneurial environment outside of Indiana.



According to the Minority Business Development Agency* (MBDA), less than 1% of venture capital dollars invested annually has been directed to the country’s

5.8 million minority business owners, who represent 29% of the

businesses in Indiana. The MBDA asserts that closing the funding gap would add $2.5 trillion to the economic output of the U.S. and would create new jobs.

11.8 million

Source: Minority Business Development Agency, Disparities in Capital Access between Minority and Non-Minority Businesses (2010).


Early Stage Capital Received by Women & Men

% of Startups Owned by Women & Men

5% 45%







According to research performed within the Women and Public Policy Program at Harvard Kennedy School, women receive less than 5% of all of the early-stage capital investment in the US, but they account for 55% of new startups. Source: Women and Public Policy Program, Harvard Kennedy School, Entrepreneurial Women? Exploring the Role of Gender in Short-Term and Long-Term Entrepreneurship (2012).


Elevate’s Vice President of Investments attends NAWBO* Holiday Luncheon Ting Gootee, Vice President of Investments at Elevate Ventures, attends the National Association of Women Business Owners (NAWBO)* Holiday Luncheon. NAWBO*-Indianapolis’ mission is to impact, influence and propel Indiana to be a leading state for women-owned businesses.

* The definition for this term is listed in the glossary on pg. 34


a year reviewed

more capital meant more





for startups

investments made in 2012 In 2012, Elevate recommended 13 investments in high-potential, high-growth Indiana-based companies, totaling over $6M.

$15,544,957 private capital invested

In addition to the public dollars invested in Indiana companies, over $14M was attracted from private investors. Said Jim Jay of TechEquity Ventures, “Partnerships like these are critical as we think about strengthening the State’s entrepreneurial ecosystem.”


the leverage ratio of private capital to public capital Of every public dollar invested, over $3 was attracted from the private sector, proving the validity and quality of Elevate’s investments.


more expertise meant more

for entrepreneurs

assistance packages distributed to Elevate clients to date BIS Tookits* contain critical needs checklists for entrepreneurs. Said the CEO of Paragon Motorcycles of the assistance provided, “We are closing our first round of investment this week and would not be where we are without the sort of coaching and network that Elevate shares with startup companies.”


Elevate program applicants In 2012, over 500 applicants applied for Elevate’s funding and assistance programs.


hours of assistance provided to Indiana entrepreneurs by Elevate staff members. Elevate provides assistance to early-stage and second-stage companies, covering topics that range from funding presentations and management hires to marketing strategy and product development.

more support meant more


more outreach meant more

were strengthened




raised for entrepreneurial assistance programs in the Northern Regions

The counties in Indiana’s Northern regions, together with the State of Indiana, raised over $8M for programs that will encourage the growth of Northern Indiana’s early and second-stage businesses.


were connected

investors connected by Elevate’s network


companies paired with private investors

Engagements included competitions, summits, forums, entrepreneurial coaching exercises, and other activities.

Polyfusion, an antimicrobial formulations company, is one example of a company that secured outside funding with the help of Elevate’s EIRs*. Said Denny Springer, CEO of Polyfusion, “We didn’t know how to secure funding and it was a monumental task. Dave and Robert played the devil’s advocate and kept us from falling flat on our faces.”



volunteer engagements by Elevate staff

second-stage companies who received strategic growth guidance Economic Gardening*, a coaching and assistance program for second-stage companies, cultivates growth, expansion and innovation in firms that have stagnated or are struggling to adapt to their competition.

engagements made between Elevate staff and outside investors 29



North Central



BOARD OF DIRECTORS + REGIONS Howard Bates - Indianapolis Jim Jay - Indianapolis Chuck Schalliol – Indianapolis John Schneider – Purdue University Mark Becker – Northeast Glenn Killoren – North Central Mark Maassel – Northwest Robert Myer – Evansville


STAFF + REGIONS Elevate Ventures, Statewide Staff Steve Hourigan, Chief Executive Officer Ting Gootee, Vice President of Investments David Clark, Venture Partner Ryan Pfenninger, Venture Partner John Bodman, Venture Partner Michael Robbins, Entrepreneur-In-Residence* Barbara Uggen-Davis, Controller Rachael Boss, Manager of Marketing & Communications Jonathon Fruchte, Manager of Venture Analysis Eddie Hourigan, Manager, IT Portfolio Alex Bowers, Executive Assistant

Elevate Ventures, Northeast Indiana Region Staff Robert Clark, Entrepreneur-In-Residence*, Northeast Indiana Region Dave Corcoran, Entrepreneur-In-Residence*, Northeast Indiana Region Terry Lewis, Entrepreneur-In-Residence*, Northeast Indiana Region

Elevate Ventures, North Central Indiana Region Staff Tim Braun, Entrepreneur-In-Residence*, North Central Indiana Region Mark Vreeke, Entrepreneur-In-Residence*, North Central Indiana Region

Elevate Ventures, Northwest Region Staff Jack Phelps, Entrepreneur-In-Residence*, Northwest Indiana Region

* The definition for this term is listed in the glossary on pg. 34


STAKEHOLDER ACKNOWLEDGEMENT Elevate Ventures would not be able to launch such impactful initiatives and reach so many entrepreneurs, startups and businesses throughout Indiana without significant contributions from community members that share our passion for entrepreneurial growth in Indiana. From the Elevate Ventures team, thank you for your continued support.



Statewide Support

Adams County Economic Development Corporation Alliance Barnes & Thornburg LLP Cascade Partners LLC CB Richard Ellis Bradley Century Link Chamber of Commerce of St Joseph County Charles Hayes Inc City of Fort Wayne Community Foundation of Kosciusko County, Inc. Community Foundation of St Joseph County, Inc. Corporate Partnership for Economic Growth, Inc. Crowe Horwath, LLP Crown Point Community Foundation D.L & D.J Wiekamp Foundation Dane & Mary Louise Miller Foundation, Inc. DeKalb County Economic Development Partnership Dennis J Schwartz DEPCO Partners, LLC Economic Development Group of Wabash County Elkhart County Community Foundation Faegre Baker Daniels, LLP Ester Pfeiderer Farmers State Bank Fort Wayne-Allen County Economic Development Alliance Garatoni Family Foundation General Sheets Metal Works, Inc. Grabill Bank Greater Fort Wayne Chamber of Commerce Grubb & Ellis Hand Family Foundation, Inc. Holladay Properties HQ Investments Huntington County United Economic Development Corporation

Indiana Economic Development Corportation

Multi-Region Support 1st Source Corporation NIPSCO Lake City Bank Old National Bank KeyBank Foundation Frontier Communications

Single-Region Support Allen County Ambassador Enterprises Carson Boxberger City of Fort Wayne Corporate Partnership for Economic Growth Foundation, Inc. Do It Best Corp. Elkhart Community Foundation Horizon Bank Judd Leighton Foundation Laporte County Economic Development Alliance McGladrey Memorial Hospital Metal Technologies Mutual Bank Northeast Indiana Regional Partnership Olive B. Cole Foundation Parkview Health St. Joseph County Community Foundation STAR Financial StepStone-Kosciusko Community The University of Notre Dame du Lac Tower Financial Corporation


James Schwartz Jim Larkin Judd Leighton Foundation, Inc. Kosciusko REMC Krieg DeVault LLP LaGrange County Economic Development Corporation Lake City Bank Laporte County Economic Development Alliance Legacy Foundation Lexus of Mishawaka Marti & Max Courtney Martin’s Super Markets May Oberfell Lorber McPherson Lean Partnership, Inc Michael Bieganski Michael Lindburg Mutual Bank Noble County Economic Development Corporation Northeast Indiana Regional Partnership Orthopediatrics Corp Olive B. Cole Foundation OrthoWorx, Inc. Parkview Health Phend & Brown, Inc. Porter County Community Foundation Porter County Economic Development Alliance Regency Search Group, LLc Ron & Lisa Fenech Foundation, Inc. RSM McGladrey, Inc. Schurz Communication, Inc. SMACNA of Michiana SMW LMCC St Joseph County Airport Authority STAR Financial Steel Dynamics, Inc.

* The definition for this term is listed in the glossary on pg. 34

Steuben County Economic Development Corporation Synergy Consulting, Inc. Teachers Credit Union The Papers Tower Financial Corporation Tuesley Hall Konopa LLP Unity Foundation of Laporte University of Notre Dame Value Tool & Engineering, Inc. Warsaw/Kosciusko County Chamber of Commerce Wells County Economic Development Whitley County Economic Development Corporation William Schmuhl Trust Woodward Realty & Insurance, Inc Yoder, Ainlay, Ulmer & Buckingham, LLP

** Regions defined on page 30


GLOSSARY 21st Century Technology & Research Fund (21 Fund): The goal of the 21st Century Fund is to support the resolution of next-stage capital formation issues by coinvesting with institutional investors in order to further build innovative, high-impact, high-growth companies. The 21 Fund’s maximum investment size is $1 million per company. Advanced manufacturing sector (AM Sector): This definition, usually defined by class of investment, generally references companies that produce technologically complex products using high-level design skills. Business Ignition Systems (BIS) Toolkit: Elevate Ventures’ Business Ignition System is a set of flexible and validated business tools developed by investors to help their portfolio companies think through building a business and avoid typical pitfalls. Commitment: A term that indicates an investor has “officially” committed funds to a company, but the funds have not yet been transferred and/or received by the company at that time. Corporate Partnership for Economic Growth (CPEG): The Corporate Partnership for Economic Growth represents an ongoing effort to engage regional business leaders and promote the long-term growth and prosperity of Northern Indiana. Economic Gardening Program: Elevate Ventures Economic Gardening is designed to provide significant sophisticated technical assistance to identified secondstage companies that have the intent and capacity to grow their business. Entrepreneur-In-Residence (EIR): An Entrepreneur-InResidence is a position or title within the venture capital industry typically held by a seasoned entrepreneur who is brought on-staff by a venture capital firm, university or other organization. Follow-on capital: “Follow-on capital” is a subsequent investment made by an investor who has made a previous investment in the company, general a later stage investment in comparison to the initial investment. Indiana Angel Network Fund (IANF): The Indiana Angel Network Fund is a source of seed capital dedicated to discovering and nurturing emerging, high-potential, innovation-based companies within the State of Indiana. This IAN Fund strives to empower entrepreneurs to create novel new businesses or transition existing businesses to address customer problems. Indiana Black Expo: An organization that acts as a voice for the social and economic advancement of AfricanAmericans. Indiana Community Development (ICD) Fund: The Indiana Community Development Fund (ICD Fund) provides startup capital to Indiana companies by supporting community-interested assets focused on early-stage Indiana companies in Indiana with high growth potential.


Information technology sector (IT Sector): This definition, usually defined by class of investment, generally references companies in the branch of engineering that deals with the use of computers and telecommunications to retrieve, store and transmit information LaunchPad: An open-floor concept in the second level of the Chamber of Commerce building in Goshen, IN. Meant to be a co-working space for entrepreneurs and service providers in the community. Minority Business Development Agency (MBDA): The Minority Business Development Agency supports job growth and economic expansion. It is a job-creating agency, leading Federal efforts to promote the growth and global competitiveness of America’s minority business community. Outlier: Outlier LLC assists economic development agencies in dramatically increasing the effectiveness of their programs by focusing attention on high-growth firms. “Qualified leads”: Qualified leads are those leads – companies - that are collected by Elevate staff and that meet investment criteria necessary for funding and/or the requirements of an Elevate program. Quick Start: A one-year bridge strategy to the longer REAP initiative (see above term). It included the launch of such programs as the Elevate Ventures Economic Gardening Program, the Entrepreneur-In-Residence Program, and the Angel Network Program (see the term Indiana Investor Network). Regional Entrepreneurship Action Plan (REAP): This plan, also shortened to the “REAP,” is a three-year initiative designed to spur economic growth and activity in the Indiana regions. The plan was launched in 2012 in the Northern Regions and will soon expand to the rest of the state. SaaS: Expanded, this term means “software-as-a-service” or “on-demand” software. The term references a software delivery model in which software and associated data are centrally hosted on the cloud. Series B Funding Round: The second round of financing for a business by private equity investors or venture capitalists. Seth Godin: Seth Godin is a best-selling author, businessman and marketing pioneer. He has also founded several companies, including Squidoo and Yoyodyne, which pioneered permission marketing. State Small Business Credit Initiative (SSBCI): a program that was funded with $1.5 billion by the Small Business Jobs Act of 2010 to strengthen state programs that support lending to small businesses and small manufacturers Techpoint: An Indiana initiative that empowers highgrowth Indiana technology companies through education and networking programs. youngStartup: A not-for-profit that provides investors all over the country and the world with a first look at prescreened high-quality deal flow via venture conferences.

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