2012 GREATER CLEVELAND
VENTURE CAPITAL REPORT
161 EQUIT Y INVESTORS IN NE OHIO COMPANIES 20 0 4-201 2
28 INVESTORS WERE NEW TO THE REGION IN 2012
NEW SCIENCE VENTURES
MIDWEST
Palo Alto Investors
ORIX USA Corporation
Oak Investment Partners
North Coast Angel Fund
Apex Venture Partners
Panorama Capital
Santé Ventures
OrbiMed Advisors LLC
Arboretum Ventures*
The Quercus Trust
ANCORA GROUP
NORTHEAST OHIO MEDICAL UNIVERSITY (NEOMED)
Big Game Capital
Ohio TechAngel Fund
Biomet
BIZDOM
Portal Capital LLC
BlueCrest Capital Finance LP
Roberts Communications Network
Blue Chip Venture Company
Parker Hannifin Corporation
BRANDERY
PHYSICIAN INVESTMENT GROUP LLC
OHIO 23Bell Innovations AKRON BIOINVESTMENTS FUNDS, LLC
Bridge Investment Fund* Case Technology Ventures CID Capital Clarion Direct Investment, LLC Cleveland Clinic Innovations CORENETWORK Directional Aviation Capital E CAPITAL PARTNERS
NDI Healthcare Fund
Primus Capital Funds* Queen City Angels* Reservoir Venture Partners* Resilience Capital Partners River Cities Capital Funds RiverVest® Venture Partners* RMS Investment Corporation
Early Stage Partners*
Rocket Ventures
East Central Ohio Tech Angel Fund
Rockwood Equity Partners Second Generation Ltd.
EDISON VENTURES*
Shaker LaunchHouse
Everett Partners Ltd.
SOLERA QI VENTURES
Evergreen Ventures Ltd.
Student Venture Fund at University of Akron
Evolution Capital Partners FRANTZ MEDICAL VENTURES Glengary LLC* Hatch Partners JumpStart Inc. Kadima Partners
SunBridge Partners* Supply Chain Equity Partners Sunrise Operations Thomas Roulston Investment Partners
PERMAL CAPITAL MANAGEMENT
NORTHEAST
Sutter Hill Ventures
4C Ventures
RLS Investments, Inc.
TAKEDA VENTURES, INC.
Aisling Capital
SV Life Sciences*
Ulupono Initiative
Ampersand Ventures
StarVest Partners
U.S. VENTURE PARTNERS
Amphion Innovations plc
SYCAMORE PARTNERS
Vivo Ventures
Boston Scientific Corporation
Lightbank LLC
WESTERN TECHNOLOGY INVESTMENT
BLUETREE ALLIED ANGELS
Thomas, McNerney & Partners
Medtronic
Wind Energy, Inc.
Rockwell Automation
Z2 Capital
Capital Midwest Fund Entrepreneur’s Fund LLC Hawthorn Group Hopen Therapeutics Hopewell Ventures
Southwest Michigan First Life Science Fund
WEST Cardinal Venture Capital Charter Life Sciences* Chevron Technology Ventures Draper Associates DW Healthcare Partners FLYWHEEL VENTURES FTV Capital
Cowen Healthcare Royalty Partners Draper Triangle Ventures*
Toucan Capital Corp. Venzyme Venture Catalyst
DREAMIT VENTURES
INTERNATIONAL
EASTON CAPITAL
Aberne Limited
Abakan Inc.
Excel Venture Management
Bally Energy Ltd.
Advantage Capital Partners
Fidelity Biosciences
Anderson Growth Partners
Fletcher Spaght Ventures*
Castlerigg Master Investments
Austin Ventures
Foundation Medical Partners
Chrysalis Ventures*
Greatbatch
Cordova Ventures
Greycroft Partners
LIGHTNING PROTECTION INTERNATIONAL
Dresser-Rand
Harris & Harris Group
MA Solar
Energy Ventures
HealthCare Ventures LLC
MWV Financial Inc.
Exoxemis
POWER HEART CONSORTIUM
Frontier Capital
HORIZON TECHNOLOGY FINANCE
HERITAGE GROUP
Investor Growth Capital
Symark LLC VENTURE INVESTORS LLC
Capital Resource Partners
SOUTH
Triathlon Medical Ventures
Intel Capital
MILLSTREAM ANGEL CLUB
JDA Investments, LLC
Kentucky Science and Technology Corporation
Life Sciences Capital
Tri-State Growth Capital Fund II
Mutual Capital Partners
Kearny Venture Partners
WEST CAPITAL ADVISORS LLC
MATW Investments LLC
Midsummer Capital
NCT Ventures*
Microsoft Corporation
Zapis Capital Group LLC
Maverick Capital Funds
mTerra Ventures LLC
Morgenthaler Ventures
MB Venture Partners
New Enterprise Associates
Key Capital Corporation
Polaris Ventures
DSM Venturing DVx Inc.
Siemens Venture Capital
LSKW Investments LP
*Received Ohio Capital Fund Investment | ALL-CAPS: First-time investor in the region in 2012
108 TECH-BASED COMPANIES R AISED $212M 2012
FROM VENTURE CAPITALISTS & ANGEL INVESTORS AROUND THE WORLD In 2012, 108 Greater Cleveland companies raised $212 million from venture capitalists, corporate and angel investors, representing a 34% INCREASE over the capital attracted by companies in 2011. This growth in dollars bucked a national trend: Data released in The MoneyTree™ Report by PricewaterhouseCoopers and the National Venture Capital Association (based on data from Thomson Reuters) showed a decrease of 10% nationwide. The Northeast Ohio region continues to demonstrate upward momentum. Compared to 2006, the amount invested by equity investors has INCREASED BY 43%, while the number of regional tech companies successfully attracting capital has increased by MORE THAN 120%.
212
$ 200
148
$
150
108 100
50
46
2006
2012
NUMBER OF COMPANIE S
2006
2012
DOLLARS INVESTED
NUMBER OF COMPANIES AT TRACTING CAPITAL & DOLLARS INVESTED (2006
VS. 2 01 2)
$212M EQUIT Y C APITAL INVES TED BY STAGE IN 2012
SEED$16M
GROWTH $51M
EARLY $145M
"At Flywheel, we invest in world-class entrepreneurs solving big problems through innovation. The eFuneral founders are clearly thought leaders, bringing first-of-its-kind innovation to the funeral planning and death care market, a sector previously lacking technology-enabled solutions. We are excited to be part of eFuneral and the Northeast Ohio startup ecosystem." Kim Sanchez Rael, General Partner, Flywheel Ventures
LOCAL INNOVATION, GLOBAL REACH ECHOGEN POWER SYSTEMS (echogen.com) received an additional $12 million from Dresser-Rand, on the heels of a $10 million capital investment in 2011. This ongoing financial support has allowed the Akron-based company to continue improving its waste-heat recovery system. In fact, GE Marine recently selected Echogen as the exclusive provider of heat-to-power systems for its commercial and military marine vessels. Managed mobility services provider VOX MOBILE (voxmobile.com) completed a $7.5 million Series A financing round led by New Jersey-based Edison Ventures and Edison’s limited partner, Permal Capital.
$212M EQUIT Y C APITAL INVES TED BY SEC TOR & STAGE IN 2012 SEED$5.5M GROWTH$46M
As in previous years, healthcare is the strongest-performing sector in the region, with 37 companies raising a total of $143.5 million. The majority (43%) of this funding went to medical device companies, followed by healthcare services (38%) and biopharmaceuticals (19%).
EARLY $92M
HEALT
HCA
EARLY STAGE CAPITAL ATTRACTORS
RE $1
4
3.
5M
SEED$5M GROWTH $5M INFORMATI
EARLY $31M
ON
TE
C
HN
SEED$4M
OL
OGY
$41M
SPARKBASE (sparkbase.com), whose software powers loyalty- and rewards-based programs, raised a $5 million Series A round.
CLEA
EARLY $22M
SEED$1M
EARLY $.5M
NTE CH
6M
BUSINES
$2
JUVENTAS THERAPEUTICS (juventasinc.com) closed a $22.5 million Series B round co-led by Triathlon Medical Venture Partners and New Science Ventures. Additional investors included Takeda Ventures, Fletcher Spaght Ventures and the Tri-State Growth Fund. This financing is being used to complete Phase 2 clinical trials of its regenerative medicine treatments for both chronic heart failure and critical limb ischemia.
S &
CO
NSU
MER $1.5
M
108 COMPANIES RECEIVED INVESTMENT BY STAGE IN 2012
GROWTH14
EARLY25
SEED69
“Ohio—and Northeast Ohio in particular—offers a wealth of interesting venture-stage companies that have tremendous growth opportunities. We are fortunate to have raised a new fund to continue capitalizing on the investment opportunities within the region.” Bill Trainor, Co-Founder and Managing Director of Mutual Capital Partners Funds I & II, Investments include Cleveland Heart Lab and OrthoHelix
UNIVERSITY-DEVELOPED TECHNOLOGIES LINESTREAM TECHNOLOGIES (linestream.com) closed $5 million in Series A financing led by Silicon Valley-based U.S. Venture Partners. LineStream’s software, which was developed at Cleveland State University, improves performance in order to make manufacturing equipment and other machines more energy-efficient and precise. In 2011, the company and Texas Instruments signed a licensing agreement, enabling the latter to sell LineStream’s technology to clients. CARDIOINSIGHT (cardioinsight.com) raised a $7.5 million Series C round, which is helping accelerate the company’s clinical and commercial efforts related to its Case Western Reserve University-developed noninvasive 3D cardiac mapping system (e.g., an electrode-filled vest to help doctors pinpoint the exact location of an electrical abnormality in the heart).
108 COMPANIES RECEIVED INVESTMENT BY SEC TOR & STAGE IN 2012 GROWTH2
Information technology—particularly enterprise IT—continues to be a strength for our region, with 47 companies attracting a total of $41 million over the past 12 months.
EARLY9 SEED36
INFOR
STRENGTH IN HEALTHCARE IT
MAT
ION
TE
CH
NO
LOG
Y 47
In Greater Cleveland, enterprise and healthcare IT have a growing influence on the regional economy. ONSHIFT (onshift.com), which developed shift-scheduling software for the long-term care and senior living industries, raised a $3 million Series B round last year after experiencing a 400% increase in revenue and hiring its 50th employee.
GROWTH5
GENOMONCOLOGY (genomoncology.com), whose proprietary software and analytical tools can rapidly and interactively analyze and interpret sequenced genomic data, raised $2 million last year from a combination of angels and a JumpStart investment.
EARLY15
HEA
LTH
CA R
E
37
SEED17
EARLY7 EARLY1
SEED8 SEED8
NTE
NES
CH
BUSI
CLEA
&
S
15
CO
NSU
MER 9
6 COMPANIES E XITED IN 2012 THESE COMBINED DEALS WERE WORTH MORE THAN A QUARTER OF A BILLION DOLLARS
“With the acquisition by Tornier, our combined sales place us at No. 2 in the world, and just a few percentage points behind Johnson & Johnson.” Dr. David Kay, CMO of OrthoHelix Surgical Designs
In August, ORTHOHELIX SURGICAL DESIGNS (orthohelix.com) was acquired by medical device company Tornier N.V. in a deal valued, at minimum, $135 million. The Medina-based company, which plans to remain in Northeast Ohio, produces screw and plate systems for the repair of small bone fractures and foot and ankle deformities. Other notable exits: In April, LivingSocial purchased Cleveland-based ONOSYS (onosys.com), whose software facilitates online restaurant ordering. Akron-based SUMMIT DATA COMMUNICATIONS (summitdata.com), a provider of industrial-grade and medical-grade wireless modules, was acquired in March by Laird Technologies for $22 million.
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 Northeast Ohio, contact Lynn-Ann Gries, JumpStart Chief Investment Officer, at 216.363.3400 or lynn-ann.gries@jumpstartinc.org. For previous years reports go to: jumpstartinc.org/results/reports
www.jumpstartinc.org
www.bioenterprise.org