2007-2011 Greater Cleveland Venture Capital Overview

Greater Cleveland

Venture Capital Overview 2007-2011

In the last 5 years, Northeast Ohio tech-based companies have raised nearly $1 billion from 134 equity investors based around the country and the globe.

Regional Investment activity Increases Between 2007-2011, 226 Greater Cleveland companies collectively attracted $961 million—a 133% increase in deals and a 26% increase in dollars for the region when compared to the previous five years (2002-2006).

2007-2011

Over the last five years, Northeast Ohio startups raised capital from 134 equity investors; 67% of these investors were based outside of Ohio.

During that same timeframe, 16 regional venture-backed companies exited, in deals worth a total of $2.6 billion. Return-generating exits

2002-2006

include the acquisition of Edgepark Medical Supplies for $850 million (2010) and the acquisition of Solon-based MemberHealth Inc. for $630 million (2007). In addition, there were 21 other exits whose amounts were undisclosed.

Clients of the region’s eight

NUMBER OF DEALS

Entrepreneurial Signature Program

DOLLARS INVESTED

incubators and accelerators represent

203 $ 761M

472 $961M [133% INCREASE]

[26% INCREASE]

71% (162) of the companies successfully attracting VC and angel capital and 51% ($506 million) of the equity dollars raised in Northeast Ohio in the last five years.

The Ohio Third Frontier and the Ohio Capital Fund continue to provide capital and other support critical to increasing private investment and accelerating the growth of early stage tech companies in the Ohio.

Total Equity Investments by stage

86

2007-2011 (dollars in millions)

$

seed

479

$

early

growth

158seed Number of companies

Dollars Invested Average Deal Size:

396

$

91early

$

0.34 million seed, $2.84 million early and $7.92 million growth

31 growth

Equity Investments by sector* Cleantech

Healthcare

Environmental $9 Energy $79

Business & Consumer Products & Services

Advanced Specialty Materials & Chemicals $55

65(7 )

$

Biopharmaceuticals $79

143 (15 )

Medical Devices & Equipment 32

35

Medical Devices & Equipment $243

(16%)

Healthcare Services, Healthcare IT & Other $265

39

83 (37 )

(17%)

%

166(17 )

Biopharmaceuticals 12

Healthcare Services, Healthcare IT & Other 39

Business & Consumer Products & Services

%

$

2007-2011 (dollars in millions)

68

$

%

587

$

Information Technology & software

Environmental 3

(61 ) %

Energy 14 Advanced Specialty Materials & Chemicals 22

%

(30%)

Information Technology & software

Dollars Invested

Number of companies

* graphs do not include one (1) $25,000 Agriculture investment

Noteworthy Deals Healthcare

Information Technology & Software

In 2011 Cleveland Heart Lab completed an $18.4 million financing round led by

In 2010 Financial Transaction Services secured a $50 million growth equity

Boston-based firms, Excel Venture Management and HealthCare Ventures. The Cleveland

investment from the private equity firm FTV Capital. The Highland Hills based

Clinic spin-out offers proprietary diagnostic tests that assess cardiovascular disease

company offers a comprehensive suite of electronic transaction processing services

risk using molecular biomarkers. The Series B round was designed to help the clinical

for merchants, independent sales organizations (ISOs) and financial institutions. The

laboratory and disease management company expand its menu of tests and more

financing was used to support expansion through increased sales and acquisitions.

aggressively evaluate and in-license new biomarkers. clevelandheartlab.com

ftservice.com

Business & Consumer Products & Services

Cleantech

In 2008, Beachwood headquartered Embrace pet insurance, an insurance

In 2011, Produced Water Absorbents Inc. in Wooster raised $11 million to accelerate

program manager that designs, sells, and manages flexible policies for cats and

commercial development of oilfield water treatment solutions using a swellable, molecularly-

dogs, raised $2.1 million from NCT Ventures in Columbus, Ohio. Since recieving this

modified glass technology developed by its parent company, ABSMaterials. Produced

institutional investment, the award-winning consumer-focused online company has

Water Absorbents’ produced and flowback water treatment solutions improve resource

raised additional capital, exceeded projected policy sales and quadrupled its staff.

recovery and environmental protections of drilling and mining operations. The financing was

embracepetinsurance.com

led by Energy Ventures, an investment fund focused on upstream oil and gas technologies and joined by Harris and Harris Group and a limited special purpose partnership group comprised of Ohio-based angel investors. pwabsorbents.com

First-time Northeast Ohio investors (in 2011) are in color. * Received investment from The Ohio Capital Fund

134 equity investors in northeast ohio companies 23 Bell Innovations

Early Stage Partners*

Big Game Capital

East Central Ohio Tech Angel Fund

Blue Chip Venture Company Bridge Investment Fund* Case Technology Ventures

Everett Partners Ltd Evergreen Ventures Ltd. Evolution Capital Partners.

CID Capital

Glengary LLC*

Cleveland Clinic Innovations

Hatch Partners JumpStart Inc.

Direction Aviation Capital

Kadima Partners

Key Capital Corporation

Primus Capital Funds* Queen City Angels*

Roulston Investment Partners

Mutual Capital Partners

Reservoir Venture Partners*

Second Generation LTD

NCT Ventures*

Resilience Capital

Shaker LaunchHouse

NDI Healthcare Fund

River Cities Capital Funds

Sunbridge Partners*

North Coast Angel Fund

RiverVest Ventures*

4C Ventures Aisling Capital Amphion Innovations Cowen Healthcare Royalty Partners Draper Triangle Ventures*

Supply Chain Equity Partners

Ohio TechAngel Fund

RMS Investment Corporation

Triathlon Medical Ventures

Portal Capital LLC

Rocket Ventures

Parker Hannifin Corporation

RockWood Equity Partners

Tri-State Growth Capital Fund II

Foundation Medical Partners Greatbatch Greycroft Partners LLC

Zapis Capital Group LLC

Harris & Harris Group Investor Growth Capital

OHIO Northeast

Cardinal Venture Capital Charter Life Sciences* Chevron Technology Ventures Draper Associates DW Healthcare Partners

WEST

Life Sciences Capital LSKW Investments Midsummer Capital MWV Financial Inc. New Enterprise Associates Oak Investment Partners

FTV Capital

OrbiMed Advisors

Intel Capital

RLS Investments, Inc.

JDA Investments, LLC

StarVest Partners

Kearny Venture Partners

Thomas, McNerney& Partners

Microsoft Corporation

Toucan Capital Corp.

Morgenthaler Ventures

Boston

Palo Alto Investors

Ampersand Ventures

Panorama Capital

MIDWEST

Quercus Trust Roberts Communications Network

Sutter Hill Ventures Ulupono Initiative Vivo Ventures

Apex Ventures

Hopen Therapeutics

Arboretum Ventures*

Hopewell Ventures

Biomet

Lightbank LLC

BlueCrest Capital Finance LP

Medtronic

Capital Midwest Fund

Wind Energy, Inc.

Entrepreneur’s Fund LLC

Z2 Capital

Hawthorn Group

Rockwell Automation Southwest Michigan First Life Science Fund Sunrise Operations Symark LLC

Outside the US

Boston Scientific Corporation

SOUTH

Capital Resource Partners

Abakan Inc.

Frontier Capital

Advantage Capital Partners

Kentucky Science and Technology Corporation

Anderson Growth Partners

Austin Ventures Chrysalis Ventures* Cordova Ventures

Dresser-Rand Energy Ventures

MATW Investments LLC Maverick Capital Funds

Excel Venture Management Fidelity Biosciences Fletcher Spaght Ventures*

Healthcare Ventures LLC mTerra Ventures LLC

MB Venture Partners

Polaris Ventures

Orix Capital

SV Life Sciences

SantĂŠ Ventures

Venzyme Venture Catalyst

ExOxEmis

Aberne Limited

DVx Inc.

Bally Energy Ltd.

MA Solar

Castlerigg Master Investments

Siemens Venture Capital

DSM Venturing

The Venture Capital Advisory Task Force The Task Force is comprised of Greater Cleveland investors dedicated to continually increasing regional entrepreneurial investment and success. To learn more about investment opportunities in

bioenterprise.com

jumpstartinc.org

Northeast Ohio, contact Lynn-Ann Gries, JumpStart Chief Investment Officer, at 216.363.3400 or

@BioECorp

@JumpStartInc

lynn-ann.gries@jumpstartinc.org.

For previous years reports go to: jumpstartinc.org/results/reports