2015 ANNUAL REPORT
Start here. Build the future.
2015 ANNUAL REPORT
AdjunctProfessorLink is reaching a national market from its home base in Valparaiso.
2015 ANNUAL REPORT
How can we help elevate Indiana? CEO Chris LaMothe shares our perspective.
Elevate Ventures’ mission can’t be achieved alone. Collaboration is critical.
Learn how our Direct and Indirect Investment Funds, additional funds and programs make a difference.
See how we source and use funds at Elevate Ventures.
STARTUP CEO KATHY GIBSONâ€™S PROF PUSH Gibson knows firsthand the challenges universities experience in hiring.
ENTREPRENEURIAL CULTURES People in communities statewide are maximizing the power of entrepreneurism. North Central Indiana
Find out who else supports entrepreneurism across our state.
Meet the talent behind Elevate Ventures.
2015 ANNUAL REPORT
ELEVATE VENTURES TEAM
Indiana’s stage is set. We at Elevate Ventures have a deep belief that communities and regions will achieve most from Indiana’s fertile business environment when they make entrepreneurism part of their DNA.
It has one of the finest public-private
higher-income jobs in Indiana. And we are
university systems in the country, a cost of
working one-on-one with entrepreneurs
living that allows families to flourish, and
so that they can launch and grow their
a business environment ranked among the
businesses with the ongoing support of
best in the world. Over the past decade in
our accomplished team and our important
particular, Indiana has made remarkable
partners throughout the state.
progress toward strengthening economic development to attract and grow jobs, and that momentum continues today.
As I have crisscrossed Indiana, I have been surprised and incredibly pleased with how interested and passionate leaders in
The next critical piece in our evolution
regions and in our universities are around
is developing a statewide network
entrepreneurism’s potential to elevate the
of entrepreneurial cultures. We at
quality of life and to attract and retain talent
Elevate Ventures have a deep belief that
in communities big and small. Together,
communities and regions will achieve most
I am certain we can realize that potential.
from Indiana’s fertile business environment when they make entrepreneurism part of their DNA. To this end, we are initiating partnerships around the state so that collaboration— not competition—can drive progress.
CHRIS LAMOTHE, CEO
We are investing in exciting start-up and early-stage companies that are generating
Our Shared Mission The power of collaboration for the greater good Entrepreneurial community and culture building is a long-term initiative. It entails active engagement by key community stakeholders, including policymakers, innovators and talent centers like academic institutions, capital providers and—last but not least—entrepreneurial leadership that excels in creating new enterprise value. Elevate Ventures works to unleash value by driving efficiency, alignment and momentum not just for public-private entrepreneurial initiatives in Indiana’s communities, but also for the statewide and regional entrepreneurial network we are building. This is the operating principle behind our community partnerships.
Elevate Ventures’ mission is to create sustainable entrepreneurial development cultures and infrastructure and to drive financial and economic returns for our stakeholders. We accomplish this by providing a combination of value-added services through dedicated personnel and engaged experts, and through providing investment capital via both direct investments and fund-of-fund programs. Elevate Ventures serves as a community catalyst by discovering and developing high-performing, high-growth, Indiana-based businesses. More and more community stakeholders are accepting the invitation to collaborate in meaningful ways. We invite you to share in our mission.
2015 ANNUAL REPORT
Direct Investment Funds To date, we’ve invested in 52 dreams, teams, companies—people. In Indiana, capital isn’t always easy to come by. We strive to make venture capital dollars more accessible to Indiana start-ups and entrepreneurs by offering Direct Investment Funds including the Indiana Angel Fund and 21st Century Technology Fund. In fact, our organization is one of the largest
sources of seed and early-stage capital to support start-up and scale-up companies in Indiana. INVESTING IN INDIANA SINCE 2010
For every dollar Elevate Ventures has invested in a company since its inception, an additional $7.8 dollars has been provided to support further growth.
LEVERAGED SINCE 2010
• Total amount invested out of Direct Funds: $33,083,843
• Total leverage amount since 2010:
HIGH SKILL, HIGH PAYING
The high-growth companies Elevate Ventures funds are creating and growing
attractive jobs for Indiana residents. At the end of 2015, Elevate Ventures’ portfolio companies employed 795 people with an average salary of $67,047.
AVERAGE SALARY OF ELEVATE VENTURES’ PORTFOLIO COMPANIES
• Total payroll of portfolio: $53,268,879
TOTAL PAYROLL OF PORTFOLIO
$0 In 2015, Elevate Ventures’ portfolio companies employed 795 people. 6
Elevate Ventures portfolio companies represent a range of industries, Indiana communities and stages of maturation. Among the considerations in our application and due diligence processes, we analyze the potential for market opportunity, strength of the founding team, current customer traction and mastery of operational infrastructure. 1.
Adjunct Professor Link
2. AIT Bioscience
28. PDS Biotechnology
3. App Press
29. Pi Lab
33. Smarter HQ*
34. Solstice Medical
36. Spensa Technologies
11. Emerging Threats Pro*
12. EnviroSolve Technologies*
38. SteadyServ Technologies
13. FAST BioMedical
39. Stray Light Optical Technologies
40. Sword Diagnostics
43. Ultra Athlete
18. Healthiest Employers
44. Upper Hand
19. Husk (FarmersMarket.com)
46. Verve Health
21. Jada Beauty*
49. Wolfe Diversified Industries
50. Wolfpack Chassis
25. Oak Financial Software Corporation
52. Xtreme ADS
Five new businesses joined our portfolio in 2015.
*Elevate has exited. Investments made in 2015.
2015 ANNUAL REPORT
Indirect Investment Funds Encouraging more funders and sources of capital in Indiana Elevate Ventures’ fund-of-funds programs strive to advance the formation of new
in Indiana, six fund managers participated
the state, and to expand the availability
in our Indiana Seed Fund in 2015.
to fill funding gaps.
INDIANA HIGH GROWTH FUND* $4.26 Million Invested
INDIANA SEED FUND** $1.97 Million
Investing in seed- and early-stage companies
fund managers and angel groups across of pooled capital for Indiana companies
INDIANA SEED FUND
INDIANA HIGH GROWTH FUND
• Total amount invested: $1.97 MILLION • Total Leveraged: $2.48 MILLION
Four fund managers in Indiana participated
in our Indiana High Growth Fund in 2015
Allos Alpha IN, LLC (Allos Ventures)
to support late-stage companies. • Total amount invested: $4.26 MILLION • Partners: Cambridge Ventures, L.P. Indiana Community Business Credit Corp. Indiana Statewide Certified Development Corp.
CVEVSPV (IN), LLC (Connetic Ventures) Innovate Indiana Fund ISFH, LLC (Innovate Indiana) Noyes Indiana Seed Fund (David A. Noyes) Three Rivers Angel Parallel Fund, LLC VisionTech Angel Parallel Fund, LLC (Vision Tech)
LYNX Capital Corp.
*Four partners in 2015 **Six partners in 2015 ELEVATE VENTURES
Additional Funds & Programs More ways businesses and funders participate Indiana’s business environment does not take a one-size-fits-all solution to
ELEVATE PURDUE FOUNDRY FUND
Giving black and gold a whole new meaning,
nurture and develop emerging high-
the Elevate Purdue Foundry Fund is an
potential businesses into high-performing,
established partnership between Elevate
Indiana-based companies. Targeting
Ventures, Purdue Foundry and the Indiana
specific needs across the state, Elevate
Economic Development Corporation that
Ventures’ pre-seed programs are designed
awards companies funds at two levels. (See
to provide institutional capital and
page 18 for more on what’s being done at
encourage collaborative partnerships
the Purdue Foundry.)
and company formation. MATCHING PROGRAMS
The Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) programs can be important sources of pre-seed and seed-stage nondilutive capital for people starting small businesses who want to explore their technological potential. Indiana applicants accepted into Phase I of this highly competitive program win on two fronts.
• Black Award value: Up to $20,000
High Potential Startup Grants
per award • Gold Award value: Up to $80,000 per award • In 2015:
◦ 31 COMPANIES won Black Awards, totaling $620,000
$73K NORTH CENTRAL REGION
◦ 3 COMPANIES won Gold Awards, totaling $180,000
In partnership with the Indiana Economic Development Corporation, through the 21st Century Research & Technology Fund, Elevate Ventures commits State of Indiana dollars to match $0.50 toward every federal dollar awarded up to $50,000 and a lifetime maximum of $150,000 in matching per company. • 2015 matching grants awarded:
29 GRANTS TO 27 COMPANIES
• Grant totals in 2015:
◦ Amount Indiana granted: $1,426,703.14
◦ Federal dollars attracted: $5,036,033.97
HIGH POTENTIAL STARTUP GRANTS
It can take just one hurdle coming down to propel a business forward. To help entrepreneurs tackle their hurdles to attain a specific measurable outcome or milestone, Elevate Ventures developed High
$225K NORTHEAST REGION
Potential Startup Grants. This pre-seed program encourages entrepreneurism in specific communities by awarding small grants ($5,000-$25,000) to high-potential startups in fully funded regions. • Grant amounts: $5,000-$25,000 • Awards by region
◦ North Central—$73,000
$75K NORTHWEST REGION
◦ Northeast—$225,000 ◦ Northwest—$75,000 2015 ANNUAL REPORT
2015 awards by region 9
A former head of U.S. marketing for Microsoft, Gary Gigot (far left) returned to South Bend to co-found Vennli. Notre Dame graduate Pooya Ghiaseddin joined as Chief Product Officer.
ENTREPRENEURIAL CULTURES: NORTH CENTRAL INDIANA
Irish Roots Raise Top Talent Vennli thrives with the right people and resources
“If you are going to pivot, you make it early
the three-circle strategy the software is
and you make it extreme,” says Gary Gigot,
based upon. Vennli (formerly known as
co-founder and CEO of Vennli in South
3CircleGrowth) calls itself a “visualization
Bend, speaking from experience.
and analytics platform” that gathers
In 2012, Gigot hired Pooya Ghiaseddin—a Notre Dame 2003 undergraduate and 2008 MBA—as Vennli’s Chief Product Officer to come in and help launch a product the
customers and why they choose one brand over another, allowing companies to make decisions based on these insights.
startup was in the midst of building. Less
A graduate of Notre Dame, Gigot spent
than one month into the job, Ghiaseddin
16 years in advertising, and was the head
broke the news to Gigot that he didn’t think
of U.S. marketing for Microsoft and the
the software was market viable. After six
CMO of Microsoft Visio before Vennli took
months of development, Gigot and his team
shape. He had explored the venture capital
made the hard decision to scrap the project
world as a founding member of the Irish
and start over.
Angels, a group of about 150 angel investors
The pivot paid off. As of April 2016, the company has grown to 107 clients and
with ties to Notre Dame, and knew the SaaS marketplace. As he was heading for retirement, he became enamored by the
University of Notre Dame marketing
$2.23 million in bookings. As with many
professor Joe Urbany (left) co-founded
entrepreneurial companies, stories like this
Vennli with Gary Gigot.
are easier said than done, and even harder
He had an active connection to his alma
if not for Gigot’s deep experiences and
mater as the benefactor of Notre Dame’s
leadership at the top.
Gigot Center for Entrepreneurship and had
Gigot co-founded Vennli in 2013 with University of Notre Dame marketing professor Joe Urbany, who developed
insights about what’s most important to
challenge of being a company founder or CEO.
visited regularly to judge entrepreneurship competitions and try to build the entrepreneurial culture at the university.
The organization has also introduced him to
Elevate Ventures has invested in four other
investors, other venture capital firms, banks
promising companies in North Central
and people and groups that have extended
Indiana, totaling $1.18 million, and has
granted another $73,000 to four more
Dave Brenner, executive director at the
Even with Notre Dame in their backyard,
At the Innovation Park at Notre Dame, he says a critical mass of talent made South Bend the most attractive place to start
Innovation Park, referred Gigot to Elevate Ventures in 2012 and discussions began
Vennli has looked to Elevate Ventures for assistance finding the best talent.
February 2014, with Elevate Ventures holding a board observer seat as part of its $500,000 investment. The support has allowed Gigot to grow and attract high-skilled talent, including many
Nandio—resulted in additional investment from the organization. Gigot talks about the potential of creating
in earnest in 2013. Vennli has been a part of Elevate Ventures’ portfolio since
businesses, two of which—Trek10 and
Finally, Gigot calls Elevate Ventures a trusted partner: being proactive, critical of the work they’re doing and progress they’re making, while also being patient and supportive.
a robust, leadership-level entrepreneurial culture in terms that are not only hopeful, but almost seem inevitable. “I think South Bend can go a very long way in a very short time,” Gigot says.
Notre Dame graduates who were interested in staying in South Bend. The talent at Vennli is impressive, with a full-time employee salary average of $92,000 and a combined 266 years of tech industry experience spread among its 25-member team. Gigot relies on Elevate Ventures in a number of ways to support Vennli. “Elevate Ventures is robustly funded and interested in providing capital to grow businesses,” he says.
ELEVATE VENTURES’ INVESTMENT IN VENNLI
$1M Vennli has been a part of Elevate Ventures’ portfolio since February 2014.
2015 ANNUAL REPORT
Northeast Indiana Regional Partnership CEO John Sampson (left) and business leader Dave Corcoran collaborate to help develop entrepreneurial cultures.
ENTREPRENEURIAL CULTURES: NORTHEAST INDIANA
Open Source Entrepreneurship Lessons from an engineer’s rise to a successful exit
Dave Corcoran is a former Elevate Ventures
area and then in Austin, Texas, engineering
hadn’t occurred to Corcoran, and he was
Entrepreneur-in-Residence and software
cryptographic devices, before getting the
in a part of the country where “raising
engineer with a fondness for fixer-uppers.
itch to flip houses. His consulting work led
money” for a startup wasn’t part of the
He’s best known for building and selling his
to many U.S. Government consulting clients
6-year-old Fort Wayne business, TrustBearer
such as the Department of Homeland
Labs, in 2010 to VeriSign, the company that
Security, which allowed him to work from
used to manage nearly every Internet domain
just about anywhere, so he moved back to
name and was one of the biggest IPO success
Indiana and bought an 80-acre ranch he
stories during the dot-com boom. VeriSign
planned to flip.
later sold its authentication business unit,
At the same time, John Sampson was working toward building a globally competitive economy in Northeast Indiana as the founding CEO of the Northeast Indiana Regional Partnership,
The calls for “crypto” work kept rolling in,
an organization created to address what
so he made his first hire. Demand grew, he
was in 2006 a dire need. Throughout
rented space out of the Northeast Indiana
the 11-county Indiana region bordering
Corcoran grew up near Fort Wayne outside
Innovation Center, hired more employees
Michigan and Ohio, economic development
of Churubusco, Indiana, and graduated
and then people started telling him he
efforts were weak, and failing in some
from Purdue University. He worked for
should raise money and turn his consulting
cases. Fierce competition among cities
Apple Computer in the San Francisco Bay
business into a product. It was a notion that
and counties was partly to blame, when
including TrustBearer Labs, to Symantec for $1.28 billion.
what these communities needed most was collaboration. Sampson focused on growing partnerships among fellow economic development stakeholders, investors and community leaders during his first three
$1.28 BILLION AMOUNT SYMANTEC SPENT ON VERISIGN
the region wasn’t investing in the region, and Sampson began working with Elevate Ventures to focus on entrepreneurship. forward was hiring Robert Clark, a serial
$2B VeriSign managed nearly every Internet domain name and was one of the biggest IPO success stories during the dot-com boom.
By 2009, he says, it was apparent that
Elevate Ventures’ first major step
(WHICH INCLUDED TRUSTBEARER LABS) $0
years leading the Partnership.
entrepreneur with a history of successful exits, to serve as Entrepreneur-in-Residence in Northeast Indiana. Sampson calls Clark the “backbone” of the entrepreneurial ELEVATE VENTURES
in-Residence in the Northeast Indiana region. Corcoran used his experiences in fundraising, and being on both sides of the table as an investor and an entrepreneur to mentor other people going through the same experiences. “We don’t have a lot of serial entrepreneurs in Northeast Indiana and Indiana, so a lot of people who have the next great ideas and products have never done it before. Much of it boils down to continuous market testing and making confident decisions so you need more people who have done it before to better your chances of success.” He and Clark have also helped target key investors in Northeast Indiana, and Indiana as a whole, to build Elevate Ventures’ Investor Network. The network specific to Northeast Indiana now consists of more than 175 accredited/angel investors seeking deal flow and companies in which to invest. culture in the region, mentoring
Instead of facing a traditional corporate
entrepreneurs to help them develop a
ladder, the TrustBearer Labs team was
business plan, market their plan, build
diving right into huge, challenging projects
a management team, and position them
for clients including the Nuclear Regulatory
to seek seed or venture capital funding.
Commission and the Federal Aviation
Elevate Ventures’ statewide networks, and
Administration. When a South Korean
Clark’s ability to create connections among
team from Samsung needed the impossible
entrepreneurs and investors, have been
done in three days, a project Corcoran says
critical to uncovering deal flow.
a large corporation wouldn’t touch, the
“A lot of entrepreneurs really don’t know how to raise money and communicate effectively
TrustBearer Labs team bore down and did it.
to angel investors, especially in Northeast
Being in a small Midwestern city proved
Indiana. It’s a challenging environment,”
to be a boon for TrustBearer Labs. Living
Corcoran says. He admittedly made every
in a place where an employee could make
mistake in the book before securing an initial
an average salary of $75,000 allows them
$400,000 in 2009 for TrustBearer Labs, and
to live very comfortably and was attractive
then an additional $1.2 million in 2009. He
to young talent. Most of the TrustBearer
used the money primarily to attract whip-
Labs team lived in downtown Fort Wayne,
smart, hard-working talent from the East
regularly met for breakfast, played
and West Coasts.
racquetball together, and golfed (albeit, poorly) every Friday. “You can create that
“If you can find someone who has a lot of enthusiasm and energy, and you can give them a high-profile job that Microsoft and Apple won’t give them, that’s exciting for them and you can get them to move to a place like Fort Wayne over the coasts,” Corcoran says.
incredible sense of team environment and camaraderie in these small Midwestern cities whereas compared to the West Coast where there’s so much competition
Corcoran stayed on as a project manager at Symantec until 2012. He bought a dilapidated building in the heart of downtown Fort Wayne and, with a partner, has converted it into apartments and a coffee shop that has become a hub for downtown foot traffic. As for the 80-acre ranch he planned to flip, he still lives there. Fort Wayne, like other regions across the state, is still in development when it comes to its entrepreneurial ecosystem. Corcoran has become a committed, enthusiastic leader in this environment, and Sampson and Clark continue to strengthen the connections and relationships there.
“Our community was built on the backs of entrepreneurs,” says Sampson, mentioning hometown success stories Sweetwater Sound, Steel Dynamics and Fort Wayne Metals Research Products.
and turnover.” Since the sale of TrustBearer Labs, Corcoran has invested in several businesses, traveled, consulted and welcomed the birth of his two children. He also came on board for
“Day in and day out entrepreneurs are trying to advance their ideas. To us, it’s about taking ideas to market to find consumers of these great ideas.”
two years with Elevate Ventures, serving alongside Clark as an Entrepreneur-
2015 ANNUAL REPORT
ENTREPRENEURIAL CULTURES: NORTHWEST INDIANA
Startup CEO Kathy Gibson’s Prof Push Finding funding and guidance for SaaS venture
Kathy Gibson is at full tilt in the enterprise
at Valparaiso University. The stint led
Entrepreneur-in-Residence for Northwest
phase of her startup. She, six full-time
to a full-time career as a faculty member
Indiana, who guided her through a process
employees and one part-time employee are
of idea validation and introduced her
in the throes of launching multi-state sales campaigns to entice colleges, universities, professors and would-be adjuncts to sign on with AdjunctProfessorLink (APL), which she incorporated in June 2015.
I started to experience the pain that the department chairs and program chairs who hire adjuncts were feeling,” Gibson says. Straddling the lines between administration
Gibson’s entrepreneurial path sounds
and academics, middle-management
familiar: she saw a need, developed a
provosts, deans and others were strapped
solution and built a business around that
with the responsibility of recruiting,
solution. Gibson’s lack of experience
hiring and attempting to manage adjunct
starting and growing a business is also a
professors. The pain was real, and Gibson
familiar story, and it’s often the reason
knew it could be assuaged.
many potential startups never really get started. Fortunately, Gibson sought out resources such as those at Elevate Ventures to help her grow.
“Being in higher education for 14 years,
Her solution began to become clearer in 2010 when she attended the ASU GSV Summit, a renowned education technology conference, where she began to learn about
to resources that could help her build a prototype along with other peer companies in that region.
Out of that process, Elevate provided APL with $15,000 in a start-up grant, which allowed her the space and manpower to focus on validating early product demonstration, developing her presentation skills, and networking with nearly 50 potential investors and mentors. The goal of a start-up grant, in conjunction
Also fortunately, she now belongs to a group
tools and networks across the country for
of women who have the potential to become
entrepreneurs who had ideas about how to
role models in the venture capital world. A
solve problems in education. APL started
2014 report from Babson College reports
to take shape into what it is today, a SaaS
that 85 percent of all VC-funded businesses
company providing recruiting, management
had no women on their executive teams,
and onboarding services for schools and
and only 2.7 percent had a woman CEO.
While practicing law in Valparaiso, Gibson
When she returned home, she contacted
out from graduation, three grant recipients
began teaching as an adjunct professor
Elevate Ventures’ Kelly Schwedland,
had raised a friends-and-family round
with an assistance process, was to identify promising ideas and help these entrepreneurs validate their early products to a point where they could move toward commercialization with an understanding that a business might make it through the Elevate Ventures investment process. A year
Most potential businesses never make it past the ideation stage because they lack things such as funding and expert guidance. APL founder and CEO Kathy Gibson (far right) sought out Elevate Ventures Entrepreneurin-Resident Kelly Schwedland to help steer her startup.
of funding and had begun to monetize
is professional and appealing to potential
for her to be a strong example to her
in some fashion. APL has since raised seed
investors, such as Elevate Ventures.
female students, showing them how
funding—including $125,000 from Elevate Ventures—positioning Gibson to be where she is today, in the go-to-market stage.
“Without the funding that came from Elevate Ventures and the mentorship from Kelly, we wouldn’t be where we are today,”
“It’s been phenomenal,” Gibson says of her
says Gibson, who adds that the greatest
relationship with Elevate Ventures. “The
value Elevate Ventures has for startups is
support I’ve gotten from Kelly has been
its people: coaches and mentors who—week
absolutely incredible and vital to what we’ve
in and week out—deliver on their promises
been able to achieve so far.” Gibson calls
to steer her in the right direction.
Schwedland a confidant and cheerleader, helping her better understand the venture capital world. “Having someone local who can mentor,
While her team is pushing to grow APL across the country, Gibson’s example back at Valparaiso University should be lauded.
you can transition your career and excel in tough environments like venture capital fundraising.
“It can be a catalyst to help more female entrepreneurs start businesses. Elevate Ventures’ investment is a testament to how they’re trying to change that culture,” Gibson says.
When she taught school, it was important
advise and counsel me has been absolutely paramount to the success we’ve had.” Schwedland’s knowledge regarding the people and business dynamic in Northwest Indiana has been particularly important for Gibson. Like Entrepreneurs-in-Residence across the state, Schwedland helps firsttime entrepreneurs understand their investing initiative and strategy, ensuring those seeking funding have financial documentation put together in a way that
ELEVATE VENTURES’ SEED INVESTMENT IN APL
$200K Elevate also provided APL with $15,000 in a start-up grant.
2015 ANNUAL REPORT
ENTREPRENEURIAL CULTURES: SOUTHERN INDIANA
Next-Generation Leadership Kent Lanum and the formula for his region’s growth
Kent Lanum lives just three miles from the Abraham Lincoln Bridge, which connects his home of Jeffersonville, Indiana, to Louisville, Kentucky, home to 1.3 million people in its metro area. As the president and CEO of the Paul W. Ogle Foundation, he leads the 36-year-old organization to, in his words, “figure out ways to improve lives in Southern Indiana.” The Foundation is South Central Indiana’s largest private foundation, estimated at close to $70 million, and awards grants to non-profits that support economic, human need, historical preservation and regionalism efforts. In recent years Ogle’s board has increasingly focused on advancing workforce development that includes post-secondary education, advanced training opportunities and entrepreneurism. Named for the founder of Silgas, a Southern Indiana energy distribution and storage company, the organization was Elevate Ventures’ first partner in providing services to entrepreneurs in Floyd and Clark counties. In 2013, Lanum and his board led efforts to establish and fund Velocity Indiana, a regional entrepreneurial education center and business accelerator, which was a critical step forward in building an entrepreneurial
Southern Indiana will likely be growing faster
culture in Southern Indiana. While Velocity
than the state and national averages over
closed its doors in December 2015, it opened
the next 20 years, says Kent Lanum, CEO
eyes to the need for more focus on individual
of the Paul W. Ogle Foundation, an Elevate
entrepreneurs to lift up the next generation
of business leaders.
ESTIMATED VALUE OF THE PAUL W. OGLE FOUNDATION
$100M This organization was Elevate Ventures’ first partner in providing services to entrepreneurs in Floyd and Clark counties.
Elevate Ventures will play a key role in helping develop the programming and support the region needs to create this focus. More recently, Lanum has guided the Foundation to be the lead funder for Endeavor Louisville, an affiliate of Endeavor Global, a 501(c)3 that promotes entrepreneurism on a global scale. Companies selected as Endeavor Global companies generated over $7.7 billion in 2014 alone and experience an average 50 percent growth rate after their first two years with Endeavor. Seventy-five companies under the non-profit’s guidance have landed on Inc. 500’s list of topgrowing companies. Endeavor seeks to scale up local entrepreneurs and companies around the world to create rapidly jobgrowing entities and keep them in their local region—often in areas you would not expect an entrepreneurial culture to take root. They do so by providing entrepreneurs access to a network of successful global mentors such as Steve Case, Michael Dell and Richard Branson, and exposure to capital and programming from organizations
While large, established corporations are
The location is distinctive. As a bi-state
important for Lanum’s community, when
region, parts of Southern Indiana such as
big companies restructure, merge or simply
Jeffersonville have two governing entities.
change direction, community-minded
At the federal level, regulatory and legal
corporate leaders can change, too. That’s
perspectives can confuse how business gets
one reason it’s important to seek out and
done but companies can now choose what
develop the next David Jones (Humana
benefits them the most when locating in the
co-founder), John Schnatter (Papa’s Johns
region. Fortunately, Indiana is considered
founder and Hoosier) or even a Paul Ogle
by many to be more business friendly than
on a smaller scale at the beginning of their
Kentucky. It’s appealing to entrepreneurs
careers. According to Lanum, momentum
as a right-to-work state with lower taxes,
is strong and the region is on the cusp of
access to an educated workforce and more
affordable real estate.
“Over the next 20 years, Southern Indiana,
While important technicalities might divide
and particularly Clark County, will probably
us, our values connect us, and Lanum has
be growing faster than the state average
observed that entrepreneurs on both sides
and national average,” he says. A massive
of the Ohio River want the same things.
$2 billion bridge infrastructure project and a major industrial park called River Ridge can take much of the credit. River Ridge covers 6,000 acres and is located in Jeffersonville. As the former home of an Army ammunition plant that employed thousands of people, the property is poised to become the Midwest’s top
“Working with entrepreneurs, you get
destination for advanced manufacturing,
to see how their minds work. They are
distribution and industrial companies from
constantly thinking about where the next
across the nation and around the world.
big opportunity is.”
like Bain Capital or Ernst & Young.
The Louisville region is a day’s drive from
“They are trying to replicate that systemic
UPS’s primary global shipping hub, an
organic growth model that happened out in Silicon Valley,” Lanum says. “It has been a game changer.” Thus far, Endeavor Global has selected three Louisville Endeavor companies to support with mentorship, programs and services.
2015 ANNUAL REPORT
“They want to see things succeed and grow. Once they’ve created a company or two, they want to help someone else do it,” he says.
60 percent of the U.S. population and has
Paul Ogle, Lanum says, would have liked to see how Southern Indiana is evolving and
incredibly strategic asset.
how his organization has moved beyond
“If you can dream it and build it, you can
in 1979 to be a part of that economic growth.
anything he could have imagined at its start
also ship it anywhere in the world with ease, great for any new or expanding business in this increasingly competitive global economy,” Lanum says.
ENTREPRENEURIAL CULTURES: PURDUE FOUNDRY
University Collaboration for Fast Track to Market Entrepreneurs-in-Residence guide Purdue-connected innovators
When an entrepreneur is developing an
is navigating the uncharted territory of
idea, it’s often around a kitchen table, in
starting a company, they can gain access
a garage or at a coffee shop. But at some
to perspectives from Entrepreneurs-in-
point, if they’re serious about launching a
Residence (EIR) who have worked in
business, the entrepreneur behind the idea
industries including semiconductors,
has to reach out to people and resources
agriculture IT, pharmaceuticals, medical
beyond their home base.
device, NASA, big data and more.
participants can get ongoing, one-on-one
At the Purdue Foundry, entrepreneurs
Located on the Purdue University campus in
guidance from experts such as Purdue
connect not just to individuals with
West Lafayette, the Foundry helps university
Foundry Managing Director Tim Peoples
expertise in entrepreneurism, but they also
students, faculty and local alumni move
(left) and Elevate Ventures Entrepreneur-
tap into a network of people with experience
ideas to the marketplace quickly. The Elevate
in-Residence Michael Shepard.
and knowledge reaching far beyond what
Ventures and Purdue Foundry Partnership
any single person could ever provide. When
started in 2014 and is a three-year, $2
someone connected to Purdue University
million targeted investment program
In addition to funding, Purdue Foundry
through collaboration among Purdue Foundry, Elevate Ventures and the Indiana Economic Development Corporation. The program makes it possible for Entrepreneurs-in-Residence like Mike Shepard to mentor and assist leaders of early-stage and high-growth companies. EIRs are essentially a “CEO in a box,” guiding clients through just about any decision they face to start and grow a business: What is the best structure for my business? How do I create a strategic plan? What does it mean to get funded by Elevate Ventures? How can I develop my value proposition? What about branding, culture, marketing and human resources? Additionally, Elevate Ventures backs promising companies with two tiers of
Dr. Kingsley Chin is a surgeon and the founder/CEO of KICVentures. Purdue Foundry helps connect guests like Chin
to its group of entrepreneurs.
BLACK AWARDS (UP TO $20,000 PER AWARD)
funding: the Black Award (up to $20,000
starting with a six-week ideation workshop
per award) and the Gold Award (up to
to allow them to think through the idea
$80,000 per award). In 2015, 31 Black
and attempt to build a workable business
Awards and three Gold Awards were
model. Business ideas run the gamut.
provided, totaling $800,000.
Past and current entrepreneurs are working on rocket science, apparel design,
For the people who invest in the companies Elevate Ventures supports, the Purdue Foundry is a valuable pipeline for deal flow. Eighty clients were involved in the organization just in April 2016. “The ability to grant small awards from the Elevate Purdue Foundry Fund has been a great addition to help our clients to grow,” says Tim Peoples, Purdue
predictive modeling for law enforcement and education software. Clients are then placed in a customer discovery program where they gain access to one of Purdue Foundry’s nine EIRs and are encouraged to take their idea to the
model. During the third phase of planning, clients work with an EIR one-on-one to build the business plan.
building the plan, and along the way he is
helping them identify resources for things
people start companies, can you help me?’”
is valid or if they need to pivot to another
these investments “validating moments”
and I understand that the Foundry helps
(UP TO $80,000 PER AWARD)
marketplace to see if the business model
Shepard says he coaches them through
Foundry say, ‘I have this idea for a company
pharmaceuticals, biomedical engineering,
Foundry’s Managing Director, calling
“People who walk in the front door of the
like State of Indiana business registration, accounting, Small Business Innovation Research grant writing, market and competitive analysis from the Krannert
working in venture capital and business development, but also the experiences of every entrepreneur he has worked with through the years. Each of the EIRs share a desire to see their clients win.
School of Management, and more.
“We all believe these are our babies, and
or no business rearing, and they’re looking
Ultimately, all this hard work will lead
for someone to guide them, so an EIR is
to a plan the client can execute, where
to be successful,” he says. “There are no
an extremely valuable asset to bring to
the EIR stays engaged and additional
resources for things like funding, talent and
Peoples says. “These innovators have little
Peoples and his team take accepted applicants through a four-step process
2015 ANNUAL REPORT
manufacturing might be found. Shepard brings to each relationship with a Purdue Foundry client not only his experience
we’re competitive for all of our companies egos in this organization. The EIRs are all in the bullpen—very open about sharing ideas and challenges—and everyone is open to chime in and listen and learn from the collective experiences of the team.”
4.4% MANAGEMENT FEES (SSBCI) 2.5% REIMBURSED EXPENSES 0.3% INTEREST < 0.1 % MISC INCOME
IEDC PROFESSIONAL SERVICES
Sources & Uses
5.6 % REAP GRANTS
2.8 % RENTS AND LEASES 2.7% INSURANCE 2.1% TRAVEL AND ENTERTAINMENT 1.8 % INFORMATION TECHNOLOGY 1.6 % MARKETING 1.3% ADMIN AND OPERATING EXPENSES 1.2% ACCOUNTING FEES AND EXPENSES 0.1% LEGAL FEES
64.8% LABOR COST
2015 Contributors We are grateful to the people and organizations that support Elevate Ventures and its mission. STATEWIDE SUPPORT
SINGLE-REGION SUPPORT (CONTâ€™D)
Indiana Economic Development Corporation
Community Foundation of St. Joseph County
1st Source Foundation
Do it Best Corp.
Elkhart County Community Foundation
Lake City Bank
Greater Fort Wayne Chamber of Commerce
Old National Bancorp
2015 ANNUAL REPORT
Corporate Partnership for Economic Growth
MutualBank Charitable Foundation Inc.
Olive B. Cole Foundation Inc
BEACON Health Systems
Allen County Board of Commissioners
The MTI Foundation, Inc.
City of Fort Wayne
University of Notre Dame du Lac
Leaders, innovators and experts across Indiana make up the Elevate Ventures board, staff and team of Entrepreneurs-in-Residence. Together, we are working to unleash value for public-private entrepreneurial initiatives in Indiana communities, and the statewide and regional entrepreneurial network.
ELEVATE VENTURES TEAM
Board of Directors ROBERT MYER
Chair DON DENSBORN
Director LARRY GARATONI
Director STEVE MARTIN
Director JOHN SAMPSON
Director CHRISTOPHER LAMOTHE
Director PHIL LODATO
ELEVATE VENTURES TEAM
Chief Executive Officer
Chief Investment Officer
General Counsel &
Chief Financial Officer
Chief Compliance Officer
North Central Indiana
2015 ANNUAL REPORT
CONTACT US 50 East 91st St, Suite 213 Indianapolis, IN 46240 PHONE
Â© 2016 Elevate Ventures. All rights reserved.