Partnerships Matter | 2014 JumpStart Community Report

PARTNERSHIPS

MATTER 2014 Community Report

Partnerships Matter When JumpStart was launched a decade ago, it was due to the united efforts of Northeast Ohio’s civic, corporate and philanthropic leaders. Years later, collaboration remains key to the organization’s ability to realize entrepreneurial potential for the benefit of the economy.

Specifically, JumpStart’s work focuses on partnering to ensure entrepreneurial ventures—those with the greatest potential to go on to attract outside capital, generate significant revenue and create new jobs—have the resources they need to form and grow. Sometimes we partner with entrepreneurs directly to help them make progress and achieve milestones. At other times, we partner with organizations to spark and support entrepreneurial activity.

With each engagement, JumpStart brings important resources to the table, such as early-stage capital, mentoring, startup talent recruitment assistance, back-office support, subject matter expertise and practical know-how we’ve gained from our on-the-ground experience. And, in every case, JumpStart hopes to build its partners’ capacity so they can achieve meaningful results sooner.

We appreciate every founder and funder that’s been part of our work during the last 10 years. Thanks to their support and guidance, we’ve been able to increase the impact of entrepreneurship in Northeast Ohio and beyond.

To move the needle, partnerships are truly what make a difference.

Mark Williams | Board Chair

Ray T. Leach | CEO

William Seelbach | Board Vice Chair

Table of Contents

STORIES OF SUCCESSFUL PARTNERSHIPS PARTNERING WITH ENTREPRENEURS Catacel 2 LifeMedix® 4 Intelligent Mobile Support 6 QueenAnn Inc. 8 PARTNERING WITH COMMUNITY LEADERS Burning River Coffee Community 9 North Coast Angel Fund 10 Memphis: Start Co. 12 SUPPORT & IMPACT Funding 14 National Visibility 14 Progress 15 Donors & Board 16

JumpStart’s Mission: To strengthen the economic vitality of Northeast Ohio and the U.S. by helping communities realize their entrepreneurial potential

Catacel recently opened a new plant and technology center to ramp up product development and production for its expanding list of global customers—which include companies in the fuel cell, petro-energy and industrial gas industries.

William Whittenberger, Catacel Co-Founder/President | J. Gary McDaniel, Catacel CEO | Lee Poseidon, JumpStart Senior Partner, Entrepreneurial Services & Investing

PAR T NERI NG W I T H E N T RE P REN E U R S : C ATACE L

Capital as a catalyst

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Catacel’s novel products reduce the fuel used in a

“We really have never looked back,” says

wide range of high-temperature chemical reactions,

co-founder/president William Whittenberger.

enabling these energy-intensive reactions to occur

“That was the right step; we should have done

much more economically. In the early years,

it years earlier.” The capital came in tandem

the Ravenna, Ohio-based company’s founders

with strategic assistance and specialized

bootstrapped its growth. But when the money ran

support. As a result, Catacel has grown at a

out and self-financing was no longer an option,

rate of greater than 50 percent in the last few

Catacel applied to JumpStart, receiving

years and the company is on track to do

an investment in August 2009.

$5 million in sales in 2014.

The stories continue at jumpstartinc.org/annualreport

“We’ve built a team with our investors.

They understand our business and participate in it. It’s all about collaboration and cooperation.”

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companies have received a JumpStart investment coupled with high-impact assistance

— J. Gary McDaniel, Catacel CEO

$29M

in capital has been committed by JumpStart via 113 seed- and early-stage investments Catacel recently opened a new plant and technology center to ramp up product development and production for its expanding list of global customers—which include companies in the fuel cell, petro-energy and industrial gas industries.

390

hours, on average, of technical assistance are provided to companies new to JumpStart’s portfolio

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Dean Banks, Mentor; Ohio Orthopedic Commercialization Center CEO | Dr. Anup D. Salgia, LifeMedix Founder/Chairman Dan Kellogg, Mentor; Crystal Venture Funds Managing Director/Co-Founder

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mentors have shared their expertise as part of the Burton D. Morgan Mentoring Program

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43 3,000

companies have received growth-focused guidance through the program

hours have been donated by mentors since the program’s inception

PA R T N ERI NG W I T H E N T REP REN E U R S : L if e M e d i x ®

Mentoring matters to growth LifeMedix® has developed a portable medical infusion pump that needs no external electrical power source, making it useful for military medics and paramedics working in pre-hospital settings.

The medical device company joined the Burton D. Morgan Mentoring Program in March 2012 and started working with a team of experienced entrepreneurs.

For LifeMedix founder/chairman Dr. Anup Salgia, an emergency physician and former U.S. Navy doctor, working with his mentors has been instrumental to his company’s development and contributed to tangible progress. “For starters, they’ve helped boost my confidence,” he says. “But their experience and advice has also enabled me to raise additional funding from private investors. Because I was able to bounce ideas off them for my pitch, I nailed the presentation.”

“We mentor because we want to give back.

We want to see Anup be successful. We want to see LifeMedix be successful.

We want to see the region be successful.” — Dan Kellogg, Mentor

In October 2013, LifeMedix—the recipient of angel investment and two Innovation Fund awards—received its second patent for the STATfusion™ medical infusion system. The company also attended the 2013 EMS World Conference in Las Vegas, and was able to present its technology to North America’s largest distributor of pre-hospital care products.

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13,000+

jobseekers view open opportunities at entrepreneurial-minded businesses each month

7,595

candidates have applied for positions at early-stage companies through JumpStart

40-80 open positions are advertised monthly on JumpStart’s jobs board

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“Unlike trying to work with a conventional recruiter who doesn’t understand your company, JumpStart knew our business model. They’re very attuned to the needs of a startup. It was a very easy way to work.

It was a matter of finding the right person who was the right fit.”

— John Steidley, Intelligent Mobile Support CEO

Intelligent Mobile Support’s products and services are focused especially on the HVAC, mechanical, electrical and plumbing industries. In early 2014, the Solon-based company introduced Axon, a smartphone/tablet application developed to streamline and strengthen the technical support process.

John Steidley, Intelligent Mobile Support CEO | Fran Paez, Intelligent Mobile Support Vice President of Sales

PAR T N ERI NG W I T H E N T RE P REN E U R S : Int e llig e nt M obil e Suppo r t

The right employee at the right time Intelligent Mobile Support’s cloud-based,

Their deep knowledge about Intelligent Mobile

mobile-friendly software platform provides

Support’s business model and strategic needs

service technicians and dealers easier, faster

assured the candidate—a former naval flight

access to technical documents and expert

officer with an MBA and experience in hardware

information. The company’s second employee,

and software sales—he was looking at the right

Fran Paez, came aboard in early 2012 thanks

opportunity. “I worked in a billion dollar company

to the recruiting efforts of JumpStart.

as an executive, I’ve worked in a number of mid-stage companies and a couple small ones,”

Before being hired, Paez met with JumpStart’s in-

Paez says. “The whole idea in every job I’ve had

house talent team and one of its venture partners.

was about building something new, creating something and going down a new road.”

The stories continue at jumpstartinc.org/annualreport

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466

clients received 15+ hours of technical assistance from JumpStart

36%

of JumpStart-assisted companies are minority- or women-owned

Al “Bubba” Baker, QueenAnn Inc. Founder | Brittani Baker, QueenAnn Inc. Plant Manager

PAR T NERING W I T H EN T REP RENEUR S : Q ueen Ann Inc .

“I’m lucky that my community has developed programs for entrepreneurs like me.

I’m blessed to have a lot of people in my corner, helping us along the way.”

—Al “Bubba” Baker, QueenAnn Inc. Founder

Tackling marketing head-on Former Cleveland Browns player Al “Bubba” Baker has devised a patented way to de-bone baby back ribs. His invention has led to appearances at national and local food shows, articles in magazines and a spot on ABC’s Shark Tank that led to a deal from FUBU founder Daymond John.

Before these experiences, JumpStart helped Baker with press releases, media training and tradeshow displays—all so he could compellingly describe his product’s advantages.

“Marketing is a story,” he says. “You have to bring that story along with you as you evolve.”

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Pa r tne r ing w i t h C ommun i ty L e ade r s Locally : Bur ning R i v er C offee C ommun i ty

Entrepreneurs helping each other The Burning River Coffee Community (BRCC) provides peer support for women entrepreneurs “who are really trying to grow their businesses, but don’t know other women facing their same challenges of raising VC or pivoting their company,” says the group’s founder, Laura Bennett. Though sponsored by outside groups such as JumpStart, BRCC is created for and by entrepreneurs: Members dole out advice and mentoring in an open, idea-charged environment.

“I wish that a group like this was there for me when I was starting out. As an entrepreneur, it’s very satisfying to be able to put together this opportunity—and to see people be successful from it.” — Laura Bennett, Burning River Coffee Community Founder Karen Malone Wright, TheNotMom.com Founder | Laura Bennett, Burning River Coffee Community Founder; Embrace Pet Insurance CEO & Co-Founder Sophie Burkart, SoffiaB Founder

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Todd Federman, North Coast Angel Fund Executive Director | Clay Rankin, North Coast Angel Fund Manager Barbara Morgan, North Coast Angel Fund Investment Associate

Par tne r i ng w i t h C ommun i ty L e ade r s Locally : No r t h C oast Ang el Fund

Growing the capital continuum The North Coast Angel Fund (NCAF) formed

from Ohio Third Frontier—we’ve helped to create a

in 2006 to provide capital for promising young

more accessible ecosystem for young companies.”

Northeast Ohio companies in the IT, healthcare,

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cleantech and other technology sectors. “[Prior

NCAF also created a network with other Ohio

to NCAF] there were angels, but it was hard for

angel groups, including Columbus’ TechAngels and

entrepreneurs to know where to find them,”

Cincinnati’s Queen City Angels. Besides encouraging

explains manager Clay Rankin. “JumpStart has

cross-regional collaboration, this statewide

been our partner in the capital investment con-

partnership raised Ohio’s profile. “Ohio was

tinuum in two unique ways: providing operating

recognized at the national Angel Capital Association

assistance and taking some risk out of early-stage

level for being a real leader in this kind of

investments. With their support—and support

collaborative investing activity,” Rankin says.

The stories continue at jumpstartinc.org/annualreport

“We leverage the experience and resources that we have as a group to make better investment decisions and to help our portfolio grow by giving companies the full benefit of the expertise and the rolodexes of our members.” — Todd Federman, North Coast Angel Fund Executive Director

50%

of Northeast Ohio companies successfully raising capital in 2013 received an angel investment

#6

is North Coast Angel Fund’s national ranking by membership size

John Knific, DecisionDesk CEO/Co-Founder

Since launching, NCAF has invested $10.2 million directly from its two funds and $17 million in direct sidecar investments from NCAF members. Their portfolio includes 35 companies; Northeast Ohio investments include DecisionDesk, 7signal, Juventas Therapeutics, GenomOncology and StreamLink Software.

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15

regions outside of Northeast Ohio have leveraged JumpStart’s experience and expertise

9,105

individuals have engaged in these regional efforts through focus groups, community gatherings and interviews

“JumpStart brought our experience from Northeast Ohio and regions across the country to Start Co.’s vision for Memphis.

But we also learned from them. It was a very cyclical process. It wasn’t a teacher-student model; it was a partner model.”

—Erin Dorsey, JumpStart Inc. Recently, JumpStart and Start Co. announced the creation of MEMx, a development plan to spur intentionally inclusive, community-wide entrepreneurial growth and new programs in the Memphis market. Over 200 Memphis partners and community leaders gave input into the formation of the plan.

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Andre Fowlkes, Start Co. Co-President | Eric Mathews, Start Co. Founder, CEO & President

Par tne r i ng w i t h C ommun i ty L e ade r s N at ionally : S tar t C o.

Regional collaboration is a two-way street Entrepreneurial leadership in Memphis

“What started out as JumpStart helping us develop

initially approached JumpStart in 2011, looking

and execute on a regional entrepreneurial accel-

to increase the number, growth and impact

eration plan has turned into us building on strengths

of high-potential startups in their region.

we’ve seen develop here in Memphis,” says Fowlkes.

Working with Andre Fowlkes and Eric

“Now JumpStart is helping us strategize and get more

Mathews of nonprofit venture development

resources behind us so we can grow.”

organization Start Co., JumpStart evaluated deal flow in the region and developed

Start Co. operates under the mantra “entrepreneur-

strategies to help Memphis leverage its

ship for everyone.” As Mathews says, “We can’t

growing pool of resources.

really advance our community without bringing the entire community along.”

The stories continue at jumpstartinc.org/annualreport

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ORGANIZATIONAL SUPPORT: SOURCES & USES

(7.1.2004-6.30.2013)

Sources of Funds

USES of Funds

$83.4M

$83.4M

$27.3M

$38.8M

Foundations

State of Ohio

$2.3M Investment Proceeds

$7.4M Corporations

$5.2M $2.4M

Federal

86%

$58.2M

to benefit entrepreneurs and the innovation economy in Greater Cleveland

to partner with Northeast Ohio entrepreneurs, providing capital and high-impact assistance

$5.3M to partner with community leaders across the U.S.

$6.8M

operations

$13.1M

to accelerate the entrepreneurial ecosystem in Northeast Ohio

Individuals & Program Fees

National VISIBILITY

(2013)

SS CB Insights named JumpStart one of the country’s 30 most active seed investors.

SS CEO Ray Leach testified before the House of Representatives Subcommittee on Capital Markets and Government Sponsored Enterprises at the hearing “Reducing Barriers to Capital Formation, Part II.”

SS JumpStart published an article in the quarterly SS JumpStart was part of a case study of Northeast Ohio’s entrepreneurial International Economic Development Council (IEDC) ecosystem detailed in a paper released by Babson Global professor journal after receiving the organization’s Gold Excellence Dr. Daniel Isenberg, an internationally recognized expert on in Economic Development Award. IEDC also awarded entrepreneurship, and participated in a Case Western Reserve two Silver Excellence in Economic Development Awards University Massive Online Open Course supported by Burton D. Morgan to the JumpStart Entrepreneurial Network, a coordinated Foundation titled “Beyond Silicon Valley: Growing Entrepreneurship in group of collaborating seed funds, advisors, educators, Transitioning Economies.” incubators and accelerators in Northeast Ohio.

SS JumpStart or its clients were featured on CNBC, Forbes, NYSE, Medium, Huffington Post, VentureBeat, Gizmodo, Blackbox.vc and NPR. 14

SS JumpStart staff spoke at the national HBCU Innovation Summit and JumpStart helped bring ICIC’s Inner City Capital Connections program to Cleveland.

Progress

(7.1.2004-12.31.2013 unless otherwise noted)

JOBS

I n N o r t h e a s t O h i o s i n ce 2 0 0 4

C A P I TA L

JumpStart leverages capital, expert assistance, experience and relationships to help realize entrepreneurial potential and strengthen economic vitality. Our progress is measured largely by the progress of our partners.

$717

M

in cumulative follow-on capital was raised by JumpStart client companies

jobs have been created and retained by client companies

new hires and board members have been recruited to Northeast Ohio startups with JumpStart’s help (1.1.2010-12.31.2013)

$99

$270

I M PA C T

is the three-year average annual revenue rate of JumpStart clients

M

in economic benefits were generated for Ohio by JumpStart and NCAF clients (CY 2012)

(2011-2013)

Ecos y stem De v elopmen t

client companies individually raised $1M+ in outside investment

2,821 518 M

N at i o n a lly s i n ce 2 0 1 0

100

$27

M+

in funding has been raised by partners across the country to support new entrepreneurial efforts

6

new venture development organizations have been launched with JumpStart’s assistance

“Cleveland’s technology industry is attracting the kind of money that launches companies.”

—Cleveland Plain Dealer

“We started in 2009 and there were three of us. We have 74 [employees] today.”

—Teri Hembree, Executive Vice President of Operations and Human Relations, JumpStart portfolio company OnShift

“The technology I saw being developed [in Cleveland]… was just as good, if not better, than what I had seen on both coasts.”

— Jake Orville, CEO, Cleveland HeartLab

“JumpStart and its partners have used creative solutions and inventive ideas, offering other regions a wonderful example to learn and benefit from.”

—Paul Krutko, Chair, IEDC

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DONOR COMMUNITY Without the exceptional support of our public, private and philanthropic partners, we would not be able to create, nurture and grow the kind of partnerships highlighted in this report. We appreciate our donors’ commitment to creating human and economic impact through entrepreneurship.

The Abington Foundation Baker Hostetler Calfee, Halter and Griswold The David and Lindsay Morgenthaler Foundation Dix & Eaton Dollar Bank The Dominion Foundation Eaton Charitable Fund Ernst & Young The Ewing Marion Kauffman Foundation Fifth Third Bank Ford Foundation The GAR Foundation The George W. Codrington Foundation Geis Companies Huntington Bank

JobsOhio Jones Day The Katherine and Lee Chilcote Foundation The Lincoln Electric Foundation The Nord Family Foundation A Northeast Ohio Family (Anonymous) The Parker Hannifin Foundation The Raymond John Wean Foundation Squire Sanders STERIS The Summers Family Foundation Third Federal Foundation Thompson Hine Ulmer & Berne LLP The U.S. Small Business Administration The William J. and Dorothy K. O’Neill Foundation

OUR NORTHEAST OHIO NETWORK In Northeast Ohio, JumpStart is part of a robust Network of entrepreneurial resource providers. We would like to recognize our current partners in Ohio Third Frontier’s Entrepreneurial Signature Program: Akron Global Business Accelerator, Akron Regional Change Angels (ARCHAngels) Network, Austen BioInnovation Institute in Akron, BioEnterprise, Bizdom, Braintree Business Development Center, Great Lakes Innovation and Development Enterprise (GLIDE), LaunchHouse, Manufacturing Advocacy and Growth Network (MAGNET), NorTech, Northeast Ohio Medical University (NEOMED), Ohio Aerospace Institute, The Tech Belt Energy Innovation Center (TBEIC), University of Akron Research Foundation and Youngstown Business Incubator.

JumpStart gratefully acknowledges 100 percent participation of its board of directors and associates in financially supporting the organization.

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LEADERSHIP DONORS

BOARD OF DIRECTORS

Ohio Third Frontier is an internationally recognized technology-based economic development initiative that is successfully changing the trajectory of Ohio’s economy. The $2.3 billion initiative supports existing industries that are transforming themselves with new, globally competitive products and fostering the formation and attraction of new companies in emerging industry sectors.

Ohio Third Frontier provides funding to Ohio technology-based companies, universities, nonprofit research institutions and other organizations to create new technology-based products, companies, industries and jobs.

Mr. Mark Williams, Board Chair Mr. William R. Seelbach, Vice Chair

The Burton D. Morgan Foundation The Charter One Foundation The Cleveland Foundation The Economic Development Administration of the U.S. Department of Commerce The FirstEnergy Foundation Forest City Enterprises Charitable Foundation The Fred A. Lennon Charitable Trust Fund for Our Economic Future

Goldman Sachs Foundation Greater Cleveland Partnership and COSE The John S. and James L. Knight Foundation KeyBank Foundation Medical Mutual A Northeast Ohio Foundation (Anonymous) PNC Foundation The Richard J. Fasenmyer Foundation Surdna Foundation

Dr. Jacqueline Acho Mr. Philip Alexander Ms. Barbara Brown Mr. David Brown Mr. John Davies Ms. Lauren Rich Fine, CFA Mr. Larry Goddard Mr. Jack Harley Mr. William Hartmann Mr. Jim Hickey Mr. Jeff Hoffman Mr. Bob Hurwitz Dr. Joseph Jankowski Mr. Ray T. Leach Ms. Ndeda Letson Ms. Lee Nielsen Dr. Frank Papay Mr. Patrick Pastore Mr. Richard Pohle Mr. Gary S. Shamis, CPA , M. Acc. Dr. Rachel Talton Mr. Todd R. Teter Mr. Steve Walling Mr. Leonard D. Young

Observers Ms. Rebecca O. Bagley Ms. Deborah Hoover Ms. Shilpa Kedar Mr. David Morgenthaler Ohio Development Services Agency Mr. Thomas Wagner Mr. Doug Weintraub, CPA * * Former Board Chair Contributors Photos by Laura Webb, Rose Hileman, Michael Norris/archer>malmo, Cassie Tabora Writing by Annie Zaleski and Samantha Fryberger Design by Meredith Pangrace

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