2020 Rev1 Startup Impact Report

Page 1

REV1

VENTURES

|

2020

IMPACT

REPORT

S TA R T U P I M PA C T


FROM

THE

CHAIRMAN

The year 2020 was all about focus and r e s i l i e n c y. O u r c l i e n t s , p a r t n e r s , a n d staff exhibited both with grace.

&

THE

CEO

Entrepreneurs and startups are built to adapt. It is what they do every day in the best of times, and our clients rose to the challenge remarkably in 2020. Our portfolio companies have retrenched. They prioritized their resources toward their customers. Some startups saw their markets dry up overnight. Others pivoted toward unique opportunities. With a strong market presence and a long-held vision for advances in healthcare services, companies like

The year 2020 was all about focus and resiliency. Our clients, partners, and staff exhibited

Updox, ScriptDrop, and Healthy Roster were especially well-positioned to respond to the

both with grace. As the pandemic took hold, it became clear, very quickly, that we all needed

crisis in unique ways.

to direct 100 percent of our attention toward the things that mattered most—the health and safety of our families, team members, and portfolio companies. Then we worked with

Our commitment to diversity and inclusion continued with 52 percent of the companies we

entrepreneurs and startups on 24-month survival plans.

invested in having diverse leadership teams. Deal flow and investments fought headwinds, yet we supported more companies than ever before, adding 44 new clients and investing $7.3MM

We quickly pivoted to deliver our startup studio services virtually—from our Customer

in 25 companies. We fed the future by expanding Central Ohio’s talent pipeline with the

Learning Labs to specialized mentoring and training for new high-growth ventures.

Innovation Internship Program, which placed 73 interns in 21 startups. We also launched the

Throughout the year, we worked with 137 companies and helped many of our portfolio

$15MM Catalyst Fund II, our second life sciences fund, strengthened our investment network

companies apply for and receive critical funding from the Payroll Protection Program. We

with co-investment partners, and laid the groundwork for three new investment funds.

Andy Rose President & CEO Worthington Industries

Tom D. Walker President & CEO Rev1 Ventures

Chairman of the Board, Rev1 Ventures

also partnered with the City of Columbus, Franklin County, JPMorgan Chase, and several entrepreneur support organizations in awarding more than $9.3MM in grants to more than 900 underserved small businesses in our community.

“ENTREPRENEURS A N D STA R T U P S A R E B U I LT TO A DA P T.”

“Focus and resiliency were the themes of 2020 as we all faced unprecedented challenges.” Focus and resiliency were the themes of 2020 as we all faced unprecedented challenges. The year ended stronger than any of us expected as we came together and learned new things about ourselves and our business—lessons that we can use every day going forward.

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2 0 2 0 S TA R T U P I M PA C T $2.9B

$447MM

2020 Total Startup Impact Revenue | Capital | Exits

All Time Total Startup Impact (2013-2020) Revenue | Capital | Exits

$194MM

$140MM

$114MM

Capital Attracted to Startups

Value of Startup Client Exits

Revenue Generated by Startup Clients

The impact data in this report of Rev1-assisted companies are sourced from PitchBook, Crunchbase, PwC, and CB Insights, and directly from the companies Rev1 supports. The data included are a snapshot in time, highlighting only the progress of companies supported between January 1, 2020, and December 31, 2020. These numbers do not include the impact of companies that have successfully exited the portfolio unless otherwise specified. Our

$7.3MM

25

52%

81

1250

Invested in Startup Clients

Unique Companies Funded

*Diversity of Portfolio Leadership

Companies Accessing Investment (excludes grants)

Jobs Created & Retained

MAKING

data collection process is audited annually.

*Rev1 defines diversity as a company with a minority or woman as the inventor, founder, or leader.

HEADLINES

How to Launch a Business During Economic Uncertainty

5 Out-of-the-Box Strategies for Growing During a Downturn

Aware Raises $12MM in Series B Funding

Telehealth Company Updox Acquired by Denver Unicorn EverCommerce

Housing Market Skirts Coronavirus Crisis as Sellers Use Matterport 3D Virtual Tours

PRA Health Enters Into Strategic Deal With Deep Lens

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INVESTING IN W H AT ’ S N E X T

EKG Leads Organizer

2020 was a challenging year for everyone, yet there were many moments to celebrate. Entrepreneurs are problem-solvers, and in down markets, they get some of their best ideas. The entrepreneurs that we work with are made for challenges. They are resilient. When one thing doesn’t work, they pivot to a different approach.

Mobikit is building data infrastructure

Rev1 funded 25 unique companies last year. These high-potential startups are pivoting to

for connected vehicles.

tackle some of the biggest challenges facing the world today. From COVID-19 testing, to telehealth, to new therapies for pancreatic cancer and ischemic stroke, Central Ohio startups are ushering in a new wave of ideas and innovation.

Basking Biosciences is

PerioFil

developing a novel therapeutic to treat ischemic stroke.

Clarametyx is fighting life-threatening bacterial infections beyond antibiotics.

3Bar Biologics helps improve the quantity and quality

Koru Biopharma

Ubihere provides

of crop production.

real-time asset location Matterport creates Self-Retaining Vein Retractor

The circle size does not indicate company size or investment size.

information GPS-free.

immersive 3D digital tours for building spaces.

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FOSTERING INCLUSIVE I N N O VAT I O N Rev1 believes strongly that startup companies with diverse leadership—including women and people of color—will be more successful. There is more work that each of us can and must do right in our own backyard to improve diversity in every aspect of this industry—from

Akin Lawal Co-founder & CEO

Naveed Iqbal Founder & CEO

Kenny Anunike Founder & CEO

Anjan Contractor Co-founder & CEO

Stash Duell helps subscribers build

Dolr is a student loan repayment platform

Skelo Wear® is an innovative protective

BeeHex is a robotics company

healthy and sustainable financial

accelerating its members to $0 student

equipment company that is geared

modernizing food preparation and

behavior by rewarding them for

debt with their money, employers’ money,

towards keeping athletes in the game.

personalization with a versatile 3D

saving money through gamification.

and money from the apps they use.

food-printing platform technology.

entrepreneurs, to partners in VC firms, to the companies that receive investment, and more. Diversity, Equity and Inclusion are woven into the fabric of our startup studio program, focused on helping our clients diversify their teams by: • Sourcing diverse talent and educating them on the benefits of team diversity; • Connecting them with culturally competent advisors who can help them succeed, and • Diversifying our own team and board to enable the network effect of our work.

59% Client Diversity

52%

61%

of Companies Funded Have Diverse Leadership

Rev1 Innovation Internship Program Diversity

44% Rev1 Staff Diversity

Rev1 has made significant progress in improving the pipeline of our work from outreach through investment and to the ultimate diversification of the client teams we support.

INCLUSIVE

I N N OVAT I O N

PARTNERS ADVANCE REACH For CommercializationTM

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TECH

SOLUTIONS

TO

ACC E L E R AT E

SOCIAL

CHANGE

“SureImpact facilitates continuous improvement and increases efficiency,” Jones said. “It’s

S h e r i C h a n e y J o n e s - C o - f o u n d e r, S u r e I m p a c t

about changing lives.” SureImpact’s intellectual property is based on analysis of 70 different types of organizations and 58 different measurements that a user can choose, based on needs and mission.

Serial entrepreneur Sheri Chaney Jones founded SureImpact, a technology company, specifically to help social sector organizations better track, manage, and report their extraordinary social impact.

The company’s target market includes organizations addressing social determinates of community wellbeing. These include education, job training, basic needs, mentoring, financial literacy, mediation, housing, workforce development, public safety, social supports, and behavioral and physical health, to name a few.

“We went to some of our clients just with a PowerPoint deck and asked them if we built a platform that did this, would they be interested, and would they pay,” said Jones. “Five of them paid upfront for a first-year license. That gave us the resources and the customer validation to build the platform.” SureImpact delivers a customizable, cloud-based software platform that gives social service organizations a way to measure what they have done, who they serve, and how well they

“SureImpact facilitates continuous improvement and increases e f f i c i e n c y. I t ’ s a b o u t c h a n g i n g l i v e s . ”

serve them.

S TA R T I N G U P STA R T U P

42

175

New Clients Entered Startup Studio Program

Entrepreneurs Educated in Rev1 Learning Labs

STUDIO

$549K Discounted Services Delivered by Vetted Service Providers

VA L U E

8

273

Senior Leaders Placed

Companies Assisted

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Samuel Baddoo - Founder & CEO, Fleri

COLUMBUS’S

B AC KYA R D

EFFECT

CONTINUES

“There is an authenticity with relationships in Ohio that pays off in ways you wouldn’t believe.” Samuel Baddoo is like many immigrants who leave their home countries for life-changing

Fleri partners with insurance companies in emerging markets to provide a range of insurance

opportunities and continue to provide care and support for family members and loved ones

plans for individuals, families, and seniors. Immigrants in the U.S. pay sustainable premiums

back home.

for health insurance for their relatives in Africa. Those relatives receive ID cards that gain access to healthcare providers for the care they need.

After immigrating to the United States six years ago from Ghana, Baddoo founded Fleri, a cross-border insurance marketplace. Fleri provides a secure and affordable way for

As a lead generation and customer acquisition partner, Fleri helps insurers add thousands

immigrants in the U. S. to compare and purchase health insurance for family members and

of new policyholders while increasing the number of people in Africa who have access

loved ones in Africa. Even though reputable health insurance coverage is available in many

to quality healthcare. Baddoo is amazed by all the doors that have opened for Fleri in

parts of Africa, many people can’t afford to buy it.

Columbus. “There is an authenticity with relationships in Ohio that pays off in ways you wouldn’t believe,” he says.

S TA R T I N G U P STA R T U P S

TO

WATC H

Portal Green provides employment

Invirsa is developing a new treatment

risk mitigation for the service and

approach for viral diseases that

hospitality industries. In 2020, Portal

Enlighten Mobility combines

ScriptDrop, a pharmacy-integrated

Concur is an organic skincare company

FARE.GAME is a technology

boosts the immune system and

Green launched an online screening

research and innovation to design

prescription service, launched

that focuses on microbiome-protection to

company specializing in solutions

improves healing. Invirsa’s approach

tool to quickly and consistently assess

specialized rehabilitation technology

nationwide delivery for consumers and

reduce common skin issues. Concur added

that allow public transit to truly

to viral infections, including COVID-19,

and track employee readiness to report

for underserved individuals.

experienced a 500 percent increase in

a COVID-19 at-home test to its product suite.

become a public good by eliminating

treats complicated conditions and

the cost of the ride at the fare box.

prevents diseases from spreading.

to work based on CDC Guidelines.

customers across the country.

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I N N OVAT I O N PARTNERS

SPINOUTS

TO

GROWTH

WATC H

PerioFil

Koru Biopharma

PerioFil, a spinout of OhioHealth, is

Vitranu, Inc., a spinout of The Ohio State

Koru Biopharma, a spinout of The Ohio

in clinical trials with a biodegradable

University, is developing an implant

State University Wexner Medical Center, is

injectable FDA-approved material that

system for sustained-release treatment for

determined to revolutionize the treatment of

reduces periodontal pocket depth.

age-related macular degeneration (AMD).

pancreatic cancer through precision therapy.

IN

SPINOUTS

185

15

15

Opportunities Reviewed

Spinouts Funded

New Companies Formed

SPINNING OUT C U T T I N G - E D G E A P P R O A C H TO S O LV I N G A N T I B I OT I C- R E S I STA N T I N F E C T I O N S

“The concept of targeting bacterial biofilms has advanced dramatically in recent years. This new mechanism overcomes many of the limitations of prior technologies,” said Lauren Bakaletz, Ph.D., co-inventor of the technology. “With this novel approach, we have an opportunity to shift the paradigm for clinical management of a multitude of diseases,” she said. Clarametyx Biosciences, a spinout of Nationwide Children’s Hospital, combats the formidable challenge of persistent antibiotic-resistant infections through an innovative technology platform that targets biofilm—the protective layer around bacteria.

In addition to therapeutic applications, the same technology may serve as a powerful vaccination tactic, enabling the body’s immune response to counter new bacterial threats effectively by preventing the development of the biofilm barrier.

Antibiotic resistance is one of the top threats to public health worldwide. Antibiotics are designed to eliminate disease-causing bacteria, but biofilms shield the bacteria from the effects of antibiotics, either requiring higher concentrations of antibiotics to resolve the infection, or rendering the antibiotic ineffective. According to the Centers for Disease Control, these resistant infections cause more than 2.8 million illnesses and more than 35,000 deaths annually in the U.S. Initially, Clarametyx is focusing on chronic and recurrent infections of the respiratory tract.

“With this novel approach, we have an opportunity to shift the paradigm for clinical management of a multitude of diseases.”

L a u r e n B a k a l e t z - S c i e n t i f i c C o - f o u n d e r, C l a r a m e t y x B i o s c i e n c e s REV1 VENTURES

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SCALEUPS

32

25

Companies Raised $1MM+ in Funding

Companies Achieved $1MM+ in Revenue

64 Co-investors

TO

WATC H

Aware provides security, compliance and

pH Matter is an advanced materials

governance for enterprise collaboration.

company that creates carbon

With the massive influx of remote work

nanoparticles to overcome energy

due to the coronavirus pandemic, digital

challenges in batteries and fuel cells. pH

communications platforms are suddenly

Matter received an award from NASA to

top-of-mind for organizations worldwide.

produce and store energy on the moon.

Michael Morgan - President, Updox

SCALING UP Long before the pandemic, Updox envisioned a platform to manage healthcare communications across both in-person and virtual care. Today, Updox serves more than 560,000 users across healthcare practices, health systems, and pharmacies, and more than 210 million patients. Updox facilitated over 3.5 million telehealth visits in the last year and continues to support more than 15,000 visits per day. “2020 underscored the importance of virtual care coordination and the need for our

“Our growth over the past eleven years is in large part due to the support we ’ ve re ce i ve d i n o u r ow n b a c kya rd .”

ubiquitous platform that helps healthcare providers manage the patient journey in its entirety. With the support of EverCommerce, we can continue innovating,” said Michael Morgan, president of Updox. “Our growth over the past eleven years is in large part due to the support we’ve received in our own backyard. The Rev1 partnership was vital to our ability to establish our market, develop our platform, and ultimately, grow to where we are today,” Morgan said.

In 2020, Updox was named to the Inc. 5000 list of America’s fastest-growing private companies for the sixth consecutive year. Then, just a few months later, the company was

The company’s thoughtful approach to market segmentation and validation, the deliberate

acquired by EverCommerce, a leading service commerce platform.

process of building strategic business partner relationships, and the management team’s ability to deliver on the business plan have accelerated Updox’s growth. The plan is to

But perhaps the most exciting news coming out of Updox is the company’s consistent and

continue to build out the communications and human connectivity of the Updox platform

industry-leading success in connecting patients’ entire care teams and giving the foundation

in Dublin, OH, and to segment the healthcare marketplace to address the needs of patient

needed to provide truly effective value-based care.

populations further.

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MANAGING

REV1

LABS

I N N OVAT I O N

CENTER

IN

A

PANDEMIC

Rev1 Labs residents are entrepreneurs, startup companies, and corporate innovators. In 2020,

We aligned residents’ expectations with the realities of the pandemic, managing from

it was more important than ever to keep them connected to the entrepreneurial ecosystem

quarantine, to closure, to reopening. We created floor signage and contactless security and

while supporting their health and safety.

deliveries. We conducted virtual events with quality content, success stories, and struggle stories, too.

Entrepreneurial businesses are always strapped for resources. That’s why Rev1 Labs exists in the first place, to provide flexible and affordable space and services for entrepreneurs and

Frequent communications with residents and adherence to health and safety procedures

their young businesses.

have positioned us to respond quickly and effectively to whatever comes next.

From the beginning of the pandemic, we established safe operating procedures based on

We and our residents share an esprit that connects us in a unique way. We will continue

state regulations and recommendations. We continually communicated as rules changed. As

to work together to conduct business and do our part to preserve an environment that is

the pandemic evolved, we listened and adapted as entrepreneurs and startups told us what

productive and safe for all.

they needed—from initial relief on rent to virtual access to Rev1 advisors.

S PA C E T O I N N O VAT E

46

140

63%

35.4%

$19.2MM

Resident Companies

Resident Employees

Diversity among Resident Leadership

Diversity among Resident Employees

Raised by Resident Companies in 2020

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C O R P O R AT E I N N O VAT I O N

655

339

Opportunities Assessed

Connections Made

17 Pilots | Contracts | Investments

I N N OVAT I O N

Our corporate innovation partners leverage the Rev1 startup studio approach to validate

PROGRAMS

and launch new business opportunities, and engage with the startups that matter most to their business. Rev1 injects an entrepreneurial energy into the enterprise DNA. We help our partners build lasting innovation infrastructure that leads to new technologies, new business models, and investments in startups.

I N N OVAT I N G

TO

REDUCE

Every year, more than a million tons of material enters the Franklin County landfill. Solid Waste Authority of Central Ohio (SWACO) and Rev1 Ventures have teamed up to connect with startups to reduce or divert these materials. Our goal is to help Central Ohio reach 75 percent diversion by 2032. We understand the value entrepreneurs will bring to this mission. SWACO is at the forefront of sustainability, and food waste is a critical sector to tackle.

FOOD

WAST E

“ We r e c o g n i z e t h a t t o revolutionize the way food waste is reduced and managed, we must tap our community of innovators.”

SWACO shares our commitment to supporting innovation by helping startups through access to expert advisors, insights into market needs, and the ability to pilot technologies within real-world environments.

While the food waste initiative is the focus of the first phase of our partnership, the goal is to evolve into a broader approach that supports startups innovating across all segments of the

“We recognize that to revolutionize the way food waste is reduced and managed, we must

waste and recycling industry.

tap our community of innovators,” said Ty Marsh, executive director at SWACO. “By aligning with Rev1 Ventures, we’re able to more clearly identify and support the startups that will

We are happy to welcome SWACO as a new partner in our impressive and growing list of

make a difference.”

innovation partners.

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O P E R AT I O N A L H I G H L I G H T S Fund Management & Corporate 22%

Ohio Third Frontier 35%

Ohio TechAngel Funds 1%

Fund Management, ROI & Other 21%

2020 Inflows

Rev1 Concept Investments 2%

Rev1 is a startup studio that combines capital and strategic services to help startups grow and corporates

Rev1 Labs Facility 14%

innovate. Revenue inflows are comprised of corporate innovation contracts, investment fund management,

2020 Outflows

2020 Investments

community and partner support, returns from our investments, and Ohio Third Frontier funding. Our expense outflows are 78 percent dedicated to startup studio services and the Rev1 Labs facility. In 2020, the

Innovation Service & Contracts 44%

investment profile was made up of concept, seed, and

Startup Studio Services 64%

BOARD

Rev1 Seed Funds 97%

OF

Stephanie Fortener, Vice President, Crane Investment Company Kim Garland, SVP Commercial Lines and Managing Director, State Auto Labs Michele Holcomb, EVP, Strategy and Corporate Development, Cardinal Health

DIRECTORS

angel investment funds. An independent firm annually audits Rev1 Ventures and its investment funds.

REV1

VA L U E S

ENTREPRENEUR FOCUSED

INGRAINED INCLUSION

D U A L- I M PAC T DRIVEN

PERSISTENT CURIOSITY

C O L L A B O R AT I O N

INTEGRITY

David Meuse, Prinicipal, Stonehenge Partners Mike Papadakis, SVP and Chief Financial Officer, The Ohio State University Susan Rector, Attorney at Law, Peterson Conners Kevin Reeves, Vice President, Natural Gas and Power Origination, BP Energy Company Tim Robinson, Chief Executive Officer, Nationwide Children’s Hospital Andy Rose, President, Worthington Industries Carter Stewart, Managing Director, Draper Richards Kaplan Foundation Tom Walker, President & Chief Executive Officer, Rev1 Ventures Kim Zavislak, Columbus Office Managing Partner, KPMG Sue Zazon, President, Central Ohio Region, Huntington Bank REV1 VENTURES

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MADE

POSSIBLE

BY

OUR

PARTNERS

AEP

Columbus State Community College

IGS

Porter Wright Morris & Arthur LLP

AT&T

Continental Office

Insperity

Safelite

Battelle

Crane Group

JPMorgan Chase & Co.

Solid Waste Authority of Central Ohio

Calfee, Halter & Griswold LLP

Dickinson Wright LLC

Kegler Brown Hill + Ritter

Sophisticated Systems

Cardinal Health

EDGE Innovation Hub

Nationwide Children’s Hospital

State Auto Insurance Companies

CAS

Fifth Third Bank

Nationwide Mutual Insurance

Stonehenge Partners

City of Columbus

Franklin County

Ohio Farm Bureau Federation

The Columbus Foundation

City of Dublin

g2o

Ohio REALTORS

The J.M. Smucker Company

City of New Albany

G-Force Innovation

Ohio Third Frontier

The Ohio State University

City of Upper Arlington

Grove City

Ohio Wesleyan University

Thompson Hine LLP

Colliers International

Huntington Bank

OhioHealth

Wolfe Enterprises Inc.

Columbus Partnership

Ice Miller LLP

One Columbus

Worthington Industries

This list represents a partial and growing roster of partners who have supported Rev1 Ventures’ work to help entrepreneurs build great companies.

1590 N High St. Columbus, OH 43201 1275 Kinnear Rd. Columbus, OH 43212 614.487.3700 rev1ventures.com

Rev1 Ventures is the startup studio that combines capital and strategic services to help startups scale and corporates innovate. Based in the Midwest, Rev1 connects entrepreneurs to talent, customers, space, and funding, helping entrepreneurs build great companies. With a proven track record of success, Rev1 is the most active seed investor in Ohio since 2012. For more information, visit www.rev1ventures.com.