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2017 ANNUAL REPORT

FUELING INDIANA AMBITION


WELCOME

Indiana is no longer toeing the line in the race to build innovative, entrepreneurial ecosystems. We are aggressively competing to win. ONE OF THE MOST VALUABLE collective attributes we can have as a state is a desire to strive together. With a combined ambition to succeed, Indiana will continue to rise. In this 2017 Elevate Ventures Annual Report, you will find examples of people collaborating throughout our state to raise up each other and their communities. You will hear stories of progress from Elevate’s five partnerships around the state, including Startup South Bend – Elkhart, Elevate Northeast Indiana, Elevate Southwest Indiana, 1804 (Southern Indiana) and Purdue Foundry. And you will read about communities and universities embracing the criticality of entrepreneurship as a driver of the future of our state — it is foundationally important.

Launching regional partnerships was a top priority for Elevate Ventures in 2017.

Launching regional partnerships was one of Elevate’s top priorities in 2017. Forming such alliances has been shown to work. While entrepreneurs operate mostly at the local level, researchers and economists indicate that regions, sharing definable characteristics and resources, are strengthened when entrepreneurs connect with one another. “Programs created to help entrepreneurs should facilitate network formation, peer learning, and mentorships,” the Ewing Marion Kauffmann Foundation reports. Elevate’s regional partnerships do this work as well as make capital more readily available to startup and high-growth companies in these parts of Indiana. Our venture development approach — one that set a $15 million record for investment volume in 2017 — lifts communities toward entrepreneurism and innovation to support the formation and success of startup and early-stage companies. The entrepreneurial ecosystems we are spearheading require key elements: entrepreneurs, financial capital, an accommodating infrastructure, municipal and state support, and sources of ideas and knowledge. Most important, they require perseverance. Our mission is a long distance run! Elevate’s team works to help each piece of this ecosystem develop and thrive. Engagement in regional partnerships focused on growing entrepreneurship is fundamental to Indiana’s future. In Indiana, we have the assets to compete. Elevate, along with our regional partners, is fueling Indiana ambition.

Chris Lamothe, CEO 2

Elevate Ventures 2017 Annual Report


INTRODUCTION

MISSION Elevate Ventures is a venture development organization focused on building sustainable innovation and entrepreneurship cultures in Indiana, and fostering and developing high-potential, high-growth businesses for investment and returns for our stakeholders.

We are fueling Indiana ambition. AMBITION IS WHAT MOTIVATES the people behind Elevate Ventures, including our Indianapolis team, Entrepreneurs-in-Residence and Elevate Advisors. We know how ambition can help turn an entrepreneur’s dream into an achievable vision or a small project into a force for regional change. Elevate works to be the fuel behind Indiana ambition. We power the people launching high-growth startup companies. We are the capital backing innovative teams and the mentors supporting first-time founders. Our fuel is a combination of Regional Partnerships, Critical Investment and the Right Resources. Let’s elevate something special.

CONTENTS

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REGIONAL PARTNERSHIPS

Elevate-supported collaborations across Indiana are fueling statewide entrepreneurship.

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FUNDS

See sources and uses of Elevate funds in 2017.

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CRITICAL INVESTMENT

Elevate’s capital investments drive founders, businesses and local entrepreneurial ecosystems.

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SUPPORT

Introducing the ambitious leaders and organizations that support Elevate and our mission.

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THE RIGHT RESOURCES

Coaching, mentorship, relationships and education power ambitious business goals.

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TEAM

Meet Elevate’s Board of Directors, statewide staff, Entrepreneurs-inResidence and Elevate Advisors.

Fueling Indiana Ambition

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Regional Partnerships Fueling Indiana Ambition

Between January 1 and July 1, 2017, Elevate Ventures and leaders from four regions of Indiana launched three-year, $2.5 million partnerships to develop entrepreneurs from within each geographic area. Elevate has partnered with Purdue University since 2014. “Entrepreneurial activity tends to generate the kinds of economic outcomes that matter to us as a society, such as greater production, earnings, wealth and jobs,� reports the Ewing Marion Kauffmann Foundation. We believe that ambitious communities open to collaboration and innovation can substantially improve the quality of life for their citizens.

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Elevate Ventures 2017 Annual Report


LAUNCHED

COUNTIES SERVED

KEY SUPPORTERS

January 1, 2017

Elkhart Marshall St. Joseph

Community Foundation of Elkhart County Community Foundation of St. Joseph County Garatoni-Smith Family Foundation Interlogic Outsourcing Inc. Judd Leighton Foundation Kem Krest Lake City Bank Marshall County EDC University of Notre Dame

OPPORTUNITY EXPANSION

ATLAS3D AND ITAMCO

SETTING THE BAR IN 2017

BEFORE 2017, the McCloskey New Venture Competition was open only to applicants related to the University of Notre Dame.

IN 2017, SIX COMPANIES in the South Bend – Elkhart region received $25,000 each through pre-seed High Potential Startup Grants. Among them was Atlas3D located in Plymouth, Indiana. With the capital infusion, the software company was able to close a seed round, in which Elevate participated, by the end of 2017.

STARTUP SOUTH BEND – ELKHART experienced a dramatic increase in entrepreneurial activity in 2017. Elevate ramped up its education efforts and engagement in the region, starting with the hiring of Entrepreneur-in-Residence Gavin Ferlic in January. Elevate also planned and/or participated in a record number of events. Those included a pitch event, SBIR/ STTR workshops, investor network meetings, and other events tailormade for high-growth startups.

Startup South Bend – Elkhart worked closely with the IDEA Center at the University of Notre Dame to open the 2017 competition to qualifying individuals and teams throughout the partnership’s three counties — St. Joseph, Marshall and Elkhart — and Notre Dame. The expansion led to a record-setting 173 entries and nearly $300,000 in prize money and in-kind services. McCloskey focuses on ventures that have not yet been launched or are at their earliest stages of launch.

Atlas3D spun out from ITAMCO, a manufacturer of precision-machined components to OEMs. Helping innovation stem from established businesses like ITAMCO is an opportunity the South Bend – Elkhart partnership encourages. Creative financing options such as nondilutive funding, made possible through Elevate, can get these kinds of ventures off the ground. ITAMCO received SBIR/STTR Grant Matching funds in 2017 to pursue another potential spin-off company.

Elevate identified nearly 100 companies as engaged in the ecosystem in 2017, and estimated 54 companies launched new ventures in the region, establishing a baseline for future growth.

Fueling Indiana Ambition

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Fueling Indiana Ambition

R E G I O N A L PA R T N E R S H I P S

COUNTIES SERVED

KEY SUPPORTERS

June 1, 2017

Dubois Gibson Pike Posey Vanderburgh Warrick

Economic Development Coalition of Southwest Indiana German American Bank Koch Industries Old National Bank Vectren Corp.

FERTILE GROUND FOR GROWTH

ADVISING STARTUPS

FOR DECADES, traditional manufacturing bred innovation in Midwestern states and regions, including Southwest Indiana. When technology usurped manufacturing for attention and investment, the economic ramifications on Indiana and most of the country were difficult, but the tide is shifting.

ERIC STEELE BEGAN WORK as the region’s dedicated Entrepreneurin-Residence (EIR) in July 2017. By the end of the year, he was advising 20 companies in Southwest Indiana and will add more in 2018. In Evansville coffee shops and shared spaces, innovative founders and entrepreneurs meet with him to discuss how to build a business model, define who their customers are, and reach their market. On top of that are the more logistical items such as corporate structure and fundraising strategy.

Today, entrepreneurship is beginning to gain ground as a growth mechanism for Southwest Indiana. The newly formed Elevate Southwest Indiana board is focused on tapping into the natural entrepreneurship and innovation lying dormant in the region. With support from the partnership with Elevate Ventures, the board is working to create a city and community their kids want to move back to, one that is home to more innovative industries and leaders.

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Elevate Ventures 2017 Annual Report

Steele (pictured above) previously held leadership positions for startup technology companies in industries ranging from telecommunications to e-commerce. As is the case with Elevate’s other statewide EIRs, he brings his own experience as well as a passion for entrepreneurship to his region.

HUNTINGBURG PITCH COMPETITION ON NOVEMBER 29, 2017, Elevate Southwest Indiana hosted Dubois County’s first ever pitch competition. Inside Current Blend, a Huntingburg coworking space, about 40 people listened to nine entrepreneurs share their business ideas, vying for $8,000 in prize money. Many were presenting for the first time in public. Getting innovative thinkers together at low-pressure events encourages entrepreneurs to think and act more ambitiously. It primes the pump for the development of an entrepreneurial ecosystem. At the end of the competition, a lice detection technology took home the $4,000 top prize. A first step for Elevate Southwest Indiana is to develop entrepreneurial excitement in the region. This sort of spark can lead to the formation of nextgeneration companies. Subsequent competitions are planned for 2018.


LAUNCHED

COUNTIES SERVED

KEY SUPPORTER

July 1, 2017

Clark Floyd

Old National Bank Paul Ogle Foundation

MULTISTATE COLLABORATION, INDIANA INVESTMENT IT’S A MATTER OF PERSPECTIVE. The Ohio River separates Indiana and Kentucky, but it also connects the states’ industries and people. The Elevate partnership in Southern Indiana was developed in this same spirit of collaboration and connection. In adherence to our mission, Elevate investments are made solely in Indiana-based companies, but resources and relationships are cultivated throughout the region, which includes Louisville to the south and Floyd and Clark counties in Indiana to the north. The 1804 organization serves as the official steward of the partnership. Kent Lanum (pictured above), President & CEO of the Paul Ogle Foundation in Jeffersonville, Indiana, leads the nineperson board. “The great thing about Elevate and this partnership is that it brings us closer into the Indiana startup ecosystem statewide with its more advanced strategic approach towards fostering a better entrepreneurial environment,” Lanum says. “It can also provide us greater access and visibility to the much larger venture fund groups that reside in the rest of Indiana and the great talent that resides in our larger cities and world-class universities.”

STARTUP GRIND EVENTS THE TEAM AT 1804 works to empower the startup culture in Southern Indiana by driving, growing and advocating for the entrepreneurial community. In 2017, the team began hosting Startup Grind events as a way to support this mission. Startup Grind is a global startup community designed to educate, inspire and connect entrepreneurs. One of the first events took place October 5, 2017, at Maker13, a makerspace and community workshop in Jeffersonville, Indiana. There, Elevate Ventures CEO Chris LaMothe discussed the new partnership and 1804 before a crowd of more than 70 people. On November 16, Gravely Brewing Co. founder Nathaniel Gravely (pictured above left) spoke during a Startup Grind event that included networking and refreshments. Gravely blended music, technology and strategic partnerships to build the world’s first “music brewery” in Louisville. MEMStim CEO and founder Dr. Angelique Johnson (pictured above right) rounded out the year as guest speaker on December 14. Johnson has raised nearly $2.5 million in nondilutive funds to support growth of her medical device startup focused on high-performance neurostimulators.

Fueling Indiana Ambition

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Fueling Indiana Ambition

R E G I O N A L PA R T N E R S H I P S

COUNTIES SERVED

KEY SUPPORTERS

April 1, 2017

Adams Allen DeKalb Huntington Kosciusko LaGrange Noble Steuben Wabash Wells Whitley

Ambassador Enterprises Fort Wayne Metals Huntington University Lake City Bank Micropulse Northeast Indiana Regional Partnership Old National Bank Olive B. Cole Foundation Parkview Health Segway Capital and Management Ultra Electronics USSI

IMMEDIATE BOARD MOMENTUM

VICTOR LOPEZ’S BIG YEAR

MORE BETS ON ENTREPRENEURS

ELEVATE NORTHEAST INDIANA’S, 15-person board has been full steam ahead since its first meeting, when the team decided to invest in Start Fort Wayne, a downtown incubator.

FOR GLOBAL MEDICAL INDUSTRIES founder and CEO Victor Lopez (pictured above), 2017 was monumental. In January, he cut the ribbon on a new facility in Fort Wayne’s Urban Enterprise Center. By December, his company was generating $40,000 in revenue per month.

IN EARLY 2018, Elevate Northeast Indiana will announce a major program to be a catalyst for changing the entrepreneurial culture of the region. The threeyear program will, in part, identify, mentor and connect a large number of entrepreneurs and founders who will drive the future of Northeast Indiana’s entrepreneurial culture.

“Immediately, we were demonstrating something that has not been typical in Northeast Indiana — one entrepreneurial organization investing in another and creating a collaboration,” board member Marilyn MoranTownsend (pictured above) says. Elevate Northeast Indiana also invested in a study to evaluate its entrepreneurial landscape. Moran-Townsend is a long-time entrepreneur. Joining her on the board are institutional investors, investment capitalists, educators and local officials. “Most important, it’s a group of people who are all committed to entrepreneurial culture shock and making a real difference,” she says.

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Elevate Ventures 2017 Annual Report

An Elevate Ventures $25,000 High Potential Startup Grant (HPSG) received in 2015 helped him get off the ground. That year, after spending more than two decades in the medical device field, Lopez was ready to go off on his own. He used the $25,000 to purchase equipment, refurbish machines and launch Global Medical Industries. The company produces high-quality medical implants and instruments. The HPSG pre-seed program awards $5,000-$25,000 to high-potential startups. For Lopez, the funds laid the foundation for a successful company.


Fueling Indiana Ambition

U N I V E R S I T Y PA R T N E R S H I P

LAUNCHED

KEY SUPPORTERS

January 1, 2014

Indiana Economic Development Corporation Purdue University

COMMERCIALIZING IDEAS

GAMIFYING STEM FOR STUDENTS

INDIANA’S COLLEGES AND UNIVERSITIES are hotbeds of innovation, where research and discussions around big ideas are a regular occurrence. Located on campus at Purdue University, Purdue Foundry offers students and faculty a place to further pursue that innovation by commercializing their ideas and/or products.

TODAY’S ELEMENTARY SCHOOL CHILDREN interested in science, technology, engineering and mathematics (STEM) often have a parent or teacher behind them trying to determine the best tools to support their curious minds. At Purdue University, older students are working to fulfill part of that market demand, with help from a $20,000 Black Award received in October 2017.

Purdue University and Elevate’s partnership began in 2014. Elevate provides funding and an Entrepreneur-in-Residence (EIR) to assist early-stage and high-growth companies within the Purdue ecosystem. EIR Jacob Schpok is currently advising 36 startups through Purdue Foundry. In partnership with the Indiana Economic Development Corporation (IEDC), Purdue Foundry and Elevate developed the Elevate Purdue Foundry Fund, which has two stages of capital. The Black Award (up to $20,000) is for seed-stage companies. Gold Award winners can receive up to $80,000. Since its inception, the partnership has helped start more than 50 companies for a total of $1.5 million in funds awarded. The partnership allows Elevate to leverage the Purdue Foundry EIR network and coach more entrepreneurs than Elevate could on its own. For Purdue University, this relationship has allowed its startups direct access to an EIR affiliated with an investment fund.

Recent Purdue graduate and company founder Wesley Virt (pictured above) launched Explore! Interactive in January 2017 after developing an augmented reality game with attributes of a tabletop card game. The Explore! Interactive team is focused on democratizing access to and improving educational outcomes in STEM through immersive, educational games at an affordable price. The first game is set to go on sale during the 2018 Christmas shopping season. With Elevate Entrepreneurs-in-Residence Jacob Schpok and Gavin Ferlic as sounding boards and advisors, the company is exploring the capital-raise process, valuation, and getting a clearer line of sight on how to develop the product and business. They are also pursuing Gold Award funding and funding through a Notre Dame business plan competition. The company has also increased its headcount to more than 10 employees and hired a talented CEO who once was a Purdue Foundry EIR as well.

Fueling Indiana Ambition

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Critical Investment Fueling Indiana Ambition

Without capital, entrepreneurial ambition will flounder. Elevate Ventures is among the largest venture capital firms in Indiana and a top provider of funding to entrepreneurs launching and building businesses in the state. We make every effort to make capital more accessible to highgrowth startups and entrepreneurs. One way we do that is through the management of funds that provide venture capital-type investments and other funds to Indiana-based companies during their early stages of growth. Another way is through introductions to other venture capital firms and angel investors. The combination of capital and investor connectivity leads to better opportunities for ambitious people and businesses to thrive in our state.

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Elevate Ventures 2017 Annual Report


Bridging the Funding Gap

FINANCING ALLOWS CURVO TEAM TO FOCUS ON CUSTOMERS CURVO’S TWO-YEAR FOCUS on nailing its product-market fit is showing results. Since 2015, the Evansville company has been on an upward trajectory. Over the last eight quarters (2016-2017), Curvo saw 30 percent compounded growth quarter over quarter. In order to concentrate on the business, especially without having any prior founder experience, CEO and co-founder Andy Perry (pictured above) says resources like those from Elevate Ventures were critical.

“I felt like I wanted him to succeed because he was someone we could trust. His transparency and honesty in that meeting made it obvious how coachable he would be.” Ting Gootee, Chief Investment Officer at Elevate Ventures, says two things stood out about Curvo: the team’s domain knowledge in solving the healthcare supply chain problem and its capacity to sell to their market. Elevate believed in the team’s ability to execute and pivot according to changing market dynamics. To do this, Curvo needed funds to staff up and go to market, yet they were too early for most institutional investors. When a company is not quite ready for a venture capital firm but needs more capital than a typical angel investor provides, Elevate can step in to bridge the funding gap.

“The biggest value prop Elevate has for companies like Curvo is early access to capital.”

“The biggest value prop Elevate has for companies like Curvo is early access to capital. This allows you to keep your eye on the ball on the business side. We had good angel investors, but Elevate, being able to participate and go all the way through the journey with us, allowed us to stay focused on the business,” Perry says.

Elevate has made multiple investments in Curvo — in 2013, 2014, 2015 and 2017 — for a total of $490,000. It all began over coffee and a Diet Coke. Bob Myer (pictured at right) knew Perry by reputation first. Evansville isn’t exactly a city where smart people can stay under the radar of an angel investor and entrepreneur like Myer. Their first face-to-face meeting about what would become a clinical spend management platform for hospital and healthcare system supply chains was at the local Barnes and Noble. Perry’s son sat at a nearby table doing homework. “Andy walked through the whole concept and why there was a huge market. He talked about the model and his vision for where it would go,” recalls Myer, who is also a member of Elevate’s board of directors. His interest was piqued and so he arranged for Perry to meet the team at Elevate.

Perry says Curvo was able to “get under the hood with customers” to understand what they need, how they work and what the real challenges are inside hospital supply chains, with all roads leading to customer success. Elevate Entrepreneur-in-Residence Kelly Schwedland got involved in a coaching capacity in 2015, sharing SaaS cloud computing playbook materials and advising the Curvo team on things like sales messaging. Myer says the team members were like sponges. Because they have been able to focus on the business, instead of worrying about how they would finance Curvo, the team has flourished. By the end of 2017, approximately 200 hospital clients had signed on to Curvo’s platform.

Fueling Indiana Ambition

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Fueling Indiana Ambition

CRITICAL INVESTMENT

Investor Connectivity

NETWORK OF INVESTORS HELPS SIGSTR REACH SERIES A COMPANIES SEEKING VENTURE CAPITAL rarely get it from just one source. Instead, they often work with a lead investor who has relationships with other investors. Elevate Ventures both leads and participates in funding rounds with other institutional investors to help ambitious entrepreneurs grow their companies — companies like Sigstr. In August 2017, Sigstr secured $5 million in Series A funding. Hyde Park Venture Partners led the round, with participation from Elevate, Battery Ventures, HubSpot, Grand Ventures and High Alpha Capital. At the end of 2017, the cloud platform for employee email personalization had signed its 350th customer, but back in 2014, Founder & President Dan Hanrahan (pictured at left) was just developing an initial business plan for Sigstr. “At the time, I had a small raise planned to bring on an engineering lead. High Alpha opened my eyes to a much larger opportunity. Every business in the world runs corporate email and there was no category leader,” Hanrahan says. In 2015, Sigstr came on as the first company to launch out of the High Alpha Studio ecosystem in Indianapolis. Elevate works with High Alpha Capital to invest in High Alpha Studio companies and other emerging enterprise cloud companies.

“Elevate Ventures plays an increasingly valuable role in Indiana’s venture ecosystem.”

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Elevate Ventures 2017 Annual Report

“Getting connected to investors is hugely important. Mike Fitzgerald at High Alpha put together a list of investors. They made intros and made it possible for it all to happen in a couple weeks,” Hanrahan says. One such connection was Tim Kopp (pictured above), a venture investor at Hyde Park Venture Partners who has worked with Elevate on several coinvesting deals. “Elevate Ventures plays an increasingly valuable role in Indiana’s venture ecosystem. It’s critical that startups in our region have local, hands-on support and guidance. This creates an increasing network effect of local, regional and national investors working together to provide maximum impact to our startup companies,” Kopp says. Ting Gootee (pictured at left), Elevate Ventures Chief Investment Officer, is an observer on Sigstr’s board of directors. She also touts the advantages of supporting investor connectivity. “Our longstanding coinvesting relationships with institutional investors are valuable to those backing the companies as well as the entrepreneurs trying to build their businesses. Only under unusual circumstances can a company raise a significant amount of money on their own without losing ground on the business side,” Gootee says. Sigstr’s growth best demonstrates the value of having expert guidance and a robust investor network in our community. In 2017 alone, it grew from 24 to 46 employees and tripled its revenue.


Reinvestment In Indiana

POLICYSTAT AND STEVE EHRLICH’S ‘MISSION ACCOMPLISHED’ IN MID-2006, THREE MEN reached into their pockets to contribute $5,000 each to start what became PolicyStat. In 2017, the company announced it had completed its lifecycle after being acquired by New Jersey-based iContracts. While Indiana successes like PolicyStat launch, grow and exit here, many of the related assets are staying close to home. Talent, money and big ideas continue to be reinvested back into our ecosystem. In November 2007, PolicyStat’s founders hired their first employee and CEO, Steve Ehrlich (pictured at left). A pass-the-hat round followed to bring in a full-time developer. Ehrlich had most recently been at Autobase and Aprimo. The Rockford, Illinois, native first moved to Indianapolis to work at Software Artistry. Including PolicyStat, every company he has worked for since college has been acquired. Ehrlich continued to gain experience growing companies worth acquiring, and brought that leadership to PolicyStat. Beginning in 2009, PolicyStat started a string of consecutive quarters with an expanding customer base and increasing revenues. That early growth, including buy-in from St. Vincent health system, attracted investment interest from HALO Capital Group and individual investors. In September 2010, PolicyStat joined what would become the Elevate Ventures investment portfolio as a 21 Fund recipient of $500,000. “Elevate was a great partner for us because they provided an infusion of capital in 2010 at an important point in our history. The flexibility Elevate showed in how they structured the investment made it attractive to our other angel investors,” Ehrlich says.

Following PolicyStat’s acquisition in 2017, Ehrlich didn’t rest long. A former colleague at Software Artistry came calling. Haresh Gangwani (pictured at right) founded Carmel-based Bolstra in July 2015 and was in need of a partner who had been where Bolstra was heading, and who could, as Gangwani says, “hold down the fort.” Ehrlich agreed to join Bolstra as its COO/President in February 2018. Gangwani, who came to the United States as a student in Indiana, is another entrepreneurial transplant who decided to put down roots in Indianapolis. “Although, I have been blessed to be a part of several exits in my career, as the CEO of PolicyStat, the completion of its successful exit was euphoric,” Ehrlich says. “From my first day as the first employee there, I always saw it as my responsibility to optimize the outcome for all four of my primary stakeholder groups — our customers, employees, community and shareholders — and the day the sale closed I had a true sense of ‘mission accomplished.’” In Indiana, leaders like Ehrlich continue to push forward after a successful exit, sharing their gifts and expertise to keep the flow of business growth going. This is the sort of reinvestment in our entrepreneurial ecosystem that fuels Indiana ambition.

“As the CEO of PolicyStat, the completion of its successful exit was euphoric”

Fueling Indiana Ambition

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Fueling Indiana Ambition

CRITICAL INVESTMENT

ELEVATE VENTURES’ RECORD-SETTING 2017 INVESTMENT TOTALS $9,249,996 21 Fund

$15,067,688 Total Invested $2,129,999 Indiana Angel Network Fund

$200,000 High Potential Startup Grant (HPSG)

$300,000 Indiana High Growth Fund

$640,000 Elevate Purdue Foundry Fund

$1,198,820

$1,348,872 Indiana Seed Fund

SBIR/STTR Grant Matching

$70,561,000 Invested

CAPITAL INVESTED TO DATE FOR EVERY DOLLAR Elevate Ventures invests, it pulls in $6.50 from outside investors as coinvestors. A total of 249 companies have received funding and been in Elevate’s portfolio since its inception. Following is capital invested (by fund type) to date:

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Elevate Ventures 2017 Annual Report

$420,741,000 Leveraged


2017 PORTFOLIO COMPANIES ELEVATE’S 2017 INVESTMENT activity made a direct, positive impact on the companies in our portfolio. Our support helps entrepreneurs create jobs and pay their teams competitive salaries, empowering people to stay close to home and contribute to Indiana’s local and regional economies.

2,250 Total Jobs

21 Fund

$172M

$61,966

Total Annual Payroll

Average Yearly Salary

$40.4 Million Invested $269.4 Million Leveraged

Indiana Angel Network Fund

$12.8 Million Invested $71 Million Leveraged

SBIR/STTR Grant Matching

$4.7 Million Invested $21.9 Million Leveraged

Indiana Seed Fund

$5.4 Million Invested $22.1 Million Leveraged

Elevate Purdue Foundry Fund

$1.5 Million Invested $5.4 Million Leveraged

Indiana High Growth Fund

$5 Million Invested $30.3 Million Leveraged

High Potential Startup Grant (HPSG)

$761,000 Invested $641,000 Leveraged

Fueling Indiana Ambition

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The Right Resources Fueling Indiana Ambition

For ambitious entrepreneurs who need more than capital, we have a growing team of Entrepreneursin-Residence and Elevate Advisors across the state who advise Hoosiers at every stage of their business development. In addition, we host educational and networking events, speak on a range of business topics and partner with like-minded organizations. Online resources available through our digital portals empower entrepreneurs, talent and investors. New in May 2018, Elevate will host Kinetic, our inaugural two-day portfolio conference.

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Elevate Ventures 2017 Annual Report


Leveraging Experience

ELEVATE ADVISORS GIVE ENTREPRENEURS ACCESS TO INVALUABLE GUIDANCE IMAGINE YOU ARE a company founder in the early stages of developing a groundbreaking technology that you believe could improve patient outcomes for millions of people around the world. But you’re unsure how to navigate Indiana’s entrepreneurial ecosystem. Sure, you’d love to have the insights of a 20-year veteran of technology and life sciences, but who has the capital to hire such a person? Enter, the Elevate Advisors. These experienced leaders — 25 strong and growing — offer unparalleled guidance to entrepreneurs who need assistance filling gaps. Elevate Advisors represent bright minds in business from across the state, including successful company founders, corporate executives and board members of marketleading companies, and investors experienced in achieving strategic exits. These men and women augment the work of Elevate’s Entrepreneurs-in-Residence to introduce entrepreneurs to people, knowledge and resources to help them grow. As an Elevate Advisor since January 2017, Bill McConnell (pictured at left) has worked on assignments involving Elevate Ventures portfolio companies Diagnotes, Kinney Group and App Press. McConnell is a former senior leader at IU Health and Boston Scientific with extensive experience in multiple sectors, from startups to international corporations, holding CEO, CIO and other executive positions. He sees one of his roles as uncovering entrepreneurs’ blind spots.

It is this kind of insight that first-time founders typically don’t have access to. Elevate Advisors, on the other hand, have deep experience in areas such as banking, mergers and acquisitions, e-commerce, aerospace, manufacturing, cybersecurity and more. They draw from these experiences for the good of the people they advise. “Being an entrepreneur is sometimes a lonely job because it’s you and your ideas and your team,” says Elevate Advisor David Broecker (pictured at right). “Usually, if it’s an extremely valuable and disruptive technology, you’re out there alone,” trying to get the ear of decisions makers who can help you make progress. Broecker knows. He has founded five businesses since 2011. Plus, he was the founding President and CEO of the Indiana Biosciences Research Institute, a former CEO at a publicly traded biotechnology company, and has led teams in a wide range of organizations. “Entrepreneurs need to know what they know and don’t know. Elevate Advisors can fill in in those areas, especially with young teams in emerging technologies. I can share my 25-30 years of experience, which makes me feel good and creates value for the team,” Broecker says. Supporting Indiana entrepreneurs is exciting work for the Elevate Ventures team, including the Elevate Advisors.

“We are nurturing a great entrepreneurial spirit and it’s nice to be part of that”

“In many founders’ cases, it is hard to remember that the world is competitive. You have to pay attention to where the market is and where it’s going, but you also have to know who your competitors are and where they are going,” he says. It can be a challenge to discern who you’re going up against in the startup marketplace. McConnell instructs his advisees to use not only their own reading of the market but also their competitions’ reading of the market to set their strategic direction.

“The tech community here is absolutely wonderful. We are nurturing a great entrepreneurial spirit and it’s nice to be part of that and add value to that by sharing some of the hard-fought lessons you’ve learned along the way,” McConnell says. “At this stage in my career, I see a lot of things and get asked to evaluate a lot of things. When you see a good idea and a good team, you want to pay it forward,” Broecker says. “I’m here to advance good teams and ideas to the marketplace.” Fueling Indiana Ambition

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Fueling Indiana Ambition

THE RIGHT RESOURCES

One-on-One Coaches

ENTREPRENEURS-IN-RESIDENCE ELEVATE VENTURES OFFERS leaders of early-stage and high-growth companies a major competitive advantage: our Entrepreneurs-in-Residence (EIRs). EIRs provide first-time entrepreneurs with business advisory services to help them navigate the uncharted waters of starting a business, from launch to exit and every decision in between. Our team’s industry experience includes semiconductors, agriculture, IT, pharmaceuticals, medical device, NASA, big data and more. What they have in common is desire to see their clients succeed.

CLOCKWISE FROM ABOVE: Elevate CEO Chris LaMothe announces the regional partnership in Southern Indiana. Elevate representatives visit Maker13 makerspace in Jeffersonville, Indiana. Elevate CIO Ting Gootee speaks at inX3 in Indianapolis. EIR Gavin Ferlic (center) talks to entrepreneurs in North Central Indiana.

ELEVATE VENTURES ADVISORY DATA

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Elevate Ventures 2017 Annual Report

2,114

6

25

Companies Assisted (total)

Entrepreneurs-inResidence providing face-to-face advisory services across the state

Elevate Advisors introducing entrepreneurs to people, knowledge and resources to help them grow.


Events & Affiliations

Elevate’s 3 Digital Portals

TO GROW INDIANA’S entrepreneurial ecosystem, Elevate Ventures works to be an active member of that ecosystem. One way we do this is by engaging with organizations and groups focused on entrepreneurship and innovation across the state. These groups include TechPoint, Venture Club of Indiana, Launch Indiana, AgriNovus Indiana, The Startup Ladies, IndyIoT, Centric and others.

TO MAKE MANY Elevate Ventures’ resources available to our stakeholders 24/7, three digital portals are available through the website at ElevateVentures.com.

BEING AN ACTIVE PLAYER FOR ENTREPRENEURSHIP

Our organization participates in statewide events, typically as either a host, sponsor or speaker. These platforms allow us to activate entrepreneurial activity and ambition, and speak about topics such as diversity, youth mentoring and professional development. Portfolio events are also an important newer initiative for Elevate Ventures to serve entrepreneurs in our portfolio more effectively.

Hosted

Knowledge Portal Entrepreneurs can access our collection of valuable articles and resources to educate and guide them.

Talent Portal Recruiting top talent can be a challenge. Through the Talent Portal, Elevate portfolio companies post open positions to find the best fits for their teams.

2017 Elevate Ventures Event Data

Hosted

OPENING ACCESS TO ELEVATE KNOWLEDGE & RESOURCES

Approximately Investor Portal

14

11

4,775

portfolio company events (Indianapolis)

partnership events (across Indiana)

people attended events this year that Elevate hosted or sponsored

Accredited investors interested in top-quality deal flow in Indiana find out what kinds of investments Elevate is currently looking at inside the Investor Portal.

Elevate representatives made 30+ speaking engagements at events including: Indiana Management Association Panel

SWIN Business Competition

Young Professionals of Central Indiana

Indiana Agrobiosciences

Launch-ed Women in Tech Panel

Connect and Collaborate 2017

Mira Awards Judging

inX3 Fueling Indiana Ambition

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FUNDS

SOURCE of Funds

72.1%

IEDC REGIONAL PARTNERSHIP KEY SUPPPORTERS SSBCI OTHER

25%

2.4%

0.5%

USE

of Funds

30%

EIR LABOR & CONSULTING

28%

ADMIN LABOR & CONSULTING

INVESTING LABOR & CONSULTING

16%

DIRECT SERVICES

11%

ADMIN & OVERHEAD

10%

MARKETING

PROFESSIONAL SERVICES

20

4%

1%

Elevate Ventures 2017 Annual Report


SUPPORT

2017 Contributors

Organizational Support WE ARE GRATEFUL to the people and organizations that financially support Elevate Ventures and its mission.

Ambassador Enterprises

Kem Krest

Blue Sky Network

Koch Enterprises Inc.

Community Foundation of Elkhart County

Lake City Bank

Community Foundation St. Joseph County

Marshall County Economic Development Corporation Micropulse Inc.

Fort Wayne Metals Northeast Indiana Regional Partnership Economic Development Coalition of Southwest Indiana

Paul Ogle Foundation

Garatoni-Smith Family Foundation

Old National Bank

German American Bank

Olive B. Cole Foundation

Huntington University

Parkview Health

Indiana Economic Development Corporation

Segway Capital and Management

Interlogic Outsourcing Inc. The Judd Leighton Foundation

Ultra Electronics USSI University of Notre Dame Vectren Corp.

Fueling Indiana Ambition

21


TEAM

BOARD OF DIRECTORS

STATEWIDE TEAM

BOB MYER

LEADERS, INNOVATORS AND EXPERTS across Indiana make up our Elevate Ventures team. Together, we are working to unleash value for public-private entrepreneurial initiatives in communities across Indiana, and the statewide and regional entrepreneurial network.

Director and Chair DON DENSBORN Director LARRY GARATONI

BASED AT ELEVATE HEADQUARTERS

Director CHRIS LAMOTHE

ALEX BOWERS

ALISHA ESTABROOK

Office Manager

Marketing and Communications Manager

TING GOOTEE, CFA

NATHAN HAHN

Chief Investment Officer

Analyst

CHRIS LAMOTHE

PHIL LODATO

CEO

General Counsel & Chief Compliance Officer

KEN MILLER

ERICA SCHWEYER

Chief Operating Officer

Sr. Director of Brand Development and Strategic Initiatives

DAVID STECKLER

BARBARA UGGEN-DAVIS, CPA

Director STEVE MARTIN Director JOHN SAMPSON Director KIP TOM Director PHIL LODATO Secretary

Analyst

Chief Financial Officer

22

Elevate Ventures 2017 Annual Report


ENTREPRENEURS-IN-RESIDENCE

ELEVATE ADVISORS

OUR TEAM OF Entrepreneurs-in-Residence provide entrepreneurs with business advisory services to help them navigate the uncharted waters of starting a business, from launch to exit and every decision in between.

THE SELECTION PROCESS to become an Elevate Advisor is rigorous. Among the criteria are in-depth industry experience, a strong professional reputation and sponsorship by at least two Elevate Ventures full-time employees. Industry targets for Advisors include B2B software, B2C products or solutions, life sciences/health care, manufacturing/energy/defense, agriculture and others.

ROBERT CLARK Northeast Indiana

GAVIN FERLIC North Central Indiana

MARK GRAMELSPACHER Central Indiana

KELLY SCHWEDLAND Central Indiana

JACOB SCHPOK Purdue Foundry West Central Indiana

ERIC STEELE Southwest Indiana

ANIL BANSAL

TIM BRAUN

DAVID BROECKER

DAVE CORCORAN

MAX DUARTE

MICHAEL EARLEY

DAN FANGMAN

FRITZ FRENCH

IRENA GOLOSCHOKIN

KEN GRAMLEY

JEFF HODGSON

RYAN HOU

BARBARA KEW

KARL KOEHLER

WADE LANGE

BILL MCCONNELL

JANE NIEDERBERGER

MONTY RIFFER

MICHAEL SHEPARD

STEVE SMITH

ERIC STINE

TOM STONE

ARI VIDALI

BART WACLAWIK

JIM ZALOUDEK

Fueling Indiana Ambition

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CONTACT US 50 East 91st St, Suite 213 Indianapolis, IN 46240 PHONE 317-975-1901 ElevateVentures.com

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Elevate Ventures 2017 Annual Report

Š 2018 Elevate Ventures. All rights reserved.

Elevate ventures 2017 annual report  
Elevate ventures 2017 annual report