Page 1

2015 ANNUAL REPORT

Start here. Build the future.

2015 ANNUAL REPORT

1


AdjunctProfessorLink is reaching a national market from its home base in Valparaiso.

2015 ANNUAL REPORT

Contents 4

5

6- 9

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.

WELCOME

INTRODUCTION

2015 IMPACT

20 FUNDS

See how we source and use funds at Elevate Ventures.

2

ELEVATE VENTURES


14

STARTUP CEO KATHY GIBSON’S PROF PUSH Gibson knows firsthand the challenges universities experience in hiring.

10-19

ENTREPRENEURIAL CULTURES People in communities statewide are maximizing the power of entrepreneurism. North Central Indiana

Southern Indiana

Northeast Indiana

Purdue Foundry

Northwest Indiana

21

22-23

Find out who else supports entrepreneurism across our state.

Meet the talent behind Elevate Ventures.

ORGANIZATIONAL SUPPORT

2015 ANNUAL REPORT

ELEVATE VENTURES TEAM


WELCOME

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

4

ELEVATE VENTURES


INTRODUCTION

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

5


2015 IMPACT

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

Elevate Investments

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.

$33M

$258M

INVESTED

LEVERAGED SINCE 2010

• Total amount invested out of Direct Funds: $33,083,843

• Total leverage amount since 2010:

$258,283,460

HIGH SKILL, HIGH PAYING

The high-growth companies Elevate Ventures funds are creating and growing

$67,047

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

$0

• Total payroll of portfolio: $53,268,879

$100K

$53,268,879

TOTAL PAYROLL OF PORTFOLIO

$100M

$0 In 2015, Elevate Ventures’ portfolio companies employed 795 people. 6

ELEVATE VENTURES


OUR PORTFOLIO

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

27. PartTec*

2. AIT Bioscience

28. PDS Biotechnology

3. App Press

29. Pi Lab

4. AquaSpy

30. PolicyStat

5. BabyPlus

31. RedPost

6. CloudOne

32. Salesvue

7. Compendium*

33. Smarter HQ*

8. Courseload*

34. Solstice Medical

9. Curvo

35. SonarMed

10. Diagnotes

36. Spensa Technologies

11. Emerging Threats Pro*

37. Sproutbox

12. EnviroSolve Technologies*

38. SteadyServ Technologies

13. FAST BioMedical

39. Stray Light Optical Technologies

14. FNEX

40. Sword Diagnostics

15. Gusto*

41. Targamite

16. Haven*

42. Trek10

17. hc1.com

43. Ultra Athlete

18. Healthiest Employers

44. Upper Hand

19. Husk (FarmersMarket.com)

45. Vennli

20. ImmuneWorks

46. Verve Health

21. Jada Beauty*

47. VoCare

22. MaxTradeIn*

48. Wellfount

23. myCOI

49. Wolfe Diversified Industries

24. Nano-Rad*

50. Wolfpack Chassis

25. Oak Financial Software Corporation

51. WordSentry

26. PactSafe

52. Xtreme ADS

Five new businesses joined our portfolio in 2015.

*Elevate has exited. Investments made in 2015.

2015 ANNUAL REPORT

7


2015 IMPACT

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

Invested

$2.48 Million

Leveraged

Investing in seed- and early-stage companies

fund managers and angel groups across of pooled capital for Indiana companies

Fund-of-Funds Programs

INDIANA SEED FUND

INDIANA HIGH GROWTH FUND

• Total amount invested: $1.97 MILLION • Total Leveraged: $2.48 MILLION

Four fund managers in Indiana participated

• Partners:

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


2015 IMPACT

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

10

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.

ELEVATE VENTURES


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

a business.

Vennli’s reach.

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.

$500,000

ELEVATE VENTURES’ INVESTMENT IN VENNLI

$0

$1M Vennli has been a part of Elevate Ventures’ portfolio since February 2014.

2015 ANNUAL REPORT

11


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

business vernacular.

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.

12

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

13


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

and administrator.

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.

14

“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.

adjunct professors.

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

ELEVATE VENTURES


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

$125,000

ELEVATE VENTURES’ SEED INVESTMENT IN APL

$0

$200K Elevate also provided APL with $15,000 in a start-up grant.

2015 ANNUAL REPORT

15


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

16

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

Ventures partner.

of business leaders.

ELEVATE VENTURES


$70 MILLION

ESTIMATED VALUE OF THE PAUL W. OGLE FOUNDATION

$0

$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

a breakthrough.

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.

17


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

18

ELEVATE VENTURES


Dr. Kingsley Chin is a surgeon and the founder/CEO of KICVentures. Purdue Foundry helps connect guests like Chin

2015 Funding

to its group of entrepreneurs.

31

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

TOTAL FUNDING

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

for entrepreneurs.

helping them identify resources for things

people start companies, can you help me?’”

$800K

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

GOLD AWARDS

pharmaceuticals, biomedical engineering,

Foundry’s Managing Director, calling

“People who walk in the front door of the

3

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

the table.”

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.”

19


12.1%

4.4% MANAGEMENT FEES (SSBCI) 2.5% REIMBURSED EXPENSES 0.3% INTEREST < 0.1 % MISC INCOME

REGIONAL SUPPORT

13.0%

UNIVERSITY PARTNERSHIPS

SOURCE OF

FUNDS

43.5%

24.1%

IEDC PROFESSIONAL SERVICES

IEDC REAP

FUNDS

Sources & Uses

5.6 % REAP GRANTS

7.6 %

CONSULTING FEES

8.4%

USE OF

FUNDS

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

ECONOMIC GARDENING

64.8% LABOR COST

20

ELEVATE VENTURES


ORGANIZATIONAL SUPPORT

2015 Contributors We are grateful to the people and organizations that support Elevate Ventures and its mission. STATEWIDE SUPPORT

SINGLE-REGION SUPPORT (CONTâ&#x20AC;&#x2122;D)

Indiana Economic Development Corporation

Community Foundation of St. Joseph County

MULTI-REGION SUPPORT

1st Source Foundation

Do it Best Corp.

Frontier Communications

Elkhart County Community Foundation

Lake City Bank

Greater Fort Wayne Chamber of Commerce

Old National Bancorp

McGladrey LLP

SINGLE-REGION SUPPORT

2015 ANNUAL REPORT

Corporate Partnership for Economic Growth

MutualBank Charitable Foundation Inc.

Anonymous (1)

Olive B. Cole Foundation Inc

Ambassador Enterprises

Parkview Health

BEACON Health Systems

STAR Financial

Allen County Board of Commissioners

The MTI Foundation, Inc.

City of Fort Wayne

University of Notre Dame du Lac

21


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

Secretary

22

ELEVATE VENTURES


ELEVATE VENTURES TEAM

Statewide Staff

CHRIS LAMOTHE

TING GOOTEE

Chief Executive Officer

Chief Investment Officer

PHIL LODATO

BARBARA UGGEN-DAVIS

General Counsel &

Chief Financial Officer

Chief Compliance Officer

ROSANNE BURGE

ALEXANDRA BOWERS

ERICA SCHWEYER

Senior Partner

Office Manager

Senior Analyst

Entrepreneurs-in-Residence

ROBERT CLARK

MARK GRAMELSPACHER

JEFF HODGSON

DAN OWEN

Northeast Indiana

Central Indiana

North Central Indiana

Southern Indiana

KELLY SCHWEDLAND

MICHAEL SHEPARD

Northwest Indiana

Purdue Foundry

2015 ANNUAL REPORT

23


CONTACT US 50 East 91st St, Suite 213 Indianapolis, IN 46240 PHONE

317.252.0258

ElevateVentures.com

© 2016 Elevate Ventures. All rights reserved.

Elevate Ventures 2015 Annual Report  
Read more
Read more
Similar to
Popular now
Just for you