2012V E N T U R E C A P I T A L

G R E A T E R C L E V E L A N D

R E P O R T

23Bell Innovations

AKRON BIOINVESTMENTS FUNDS, LLC

ANCORA GROUP

Big Game Capital

BIZDOM

Blue Chip Venture Company

BRANDERY

Bridge Investment Fund*

Case Technology Ventures

CID Capital

Clarion Direct Investment, LLC

Cleveland Clinic Innovations

CORENETWORK

Directional Aviation Capital

E CAPITAL PARTNERS

Early Stage Partners*

East Central Ohio Tech Angel Fund

EDISON VENTURES*

Everett Partners Ltd.

Evergreen Ventures Ltd.

Evolution Capital Partners

FRANTZ MEDICAL VENTURES

Glengary LLC*

Hatch Partners

JumpStart Inc.

Kadima Partners

Key Capital Corporation

MILLSTREAM ANGEL CLUB

Mutual Capital Partners

NCT Ventures*

NDI Healthcare Fund

North Coast Angel Fund

NORTHEAST OHIO MEDICAL UNIVERSITY (NEOMED)

Ohio TechAngel Fund

Portal Capital LLC

Parker Hannifin Corporation

PHYSICIAN INVESTMENT GROUP LLC

Primus Capital Funds*

Queen City Angels*

Reservoir Venture Partners*

Resilience Capital Partners

River Cities Capital Funds

RiverVest® Venture Partners*

RMS Investment Corporation

Rocket Ventures

Rockwood Equity Partners

Second Generation Ltd.

Shaker LaunchHouse

SOLERA QI VENTURES

Student Venture Fund at University of Akron

SunBridge Partners*

Supply Chain Equity Partners

Sunrise Operations

Thomas Roulston Investment Partners

Triathlon Medical Ventures

Tri-State Growth Capital Fund II

WEST CAPITAL ADVISORS LLC

Zapis Capital Group LLC

Apex Venture Partners

Arboretum Ventures*

Biomet

BlueCrest Capital Finance LP

Capital Midwest Fund

Entrepreneur’s Fund LLC

Hawthorn Group

Hopen Therapeutics

Hopewell Ventures

Lightbank LLC

Medtronic

Rockwell Automation

Southwest Michigan First Life Science Fund

Symark LLC

VENTURE INVESTORS LLC

Cardinal Venture Capital

Charter Life Sciences*

Chevron Technology Ventures

Draper Associates

DW Healthcare Partners

FLYWHEEL VENTURES

FTV Capital

Intel Capital

JDA Investments, LLC

Kearny Venture Partners

Microsoft Corporation

Morgenthaler Ventures

Palo Alto Investors

Panorama Capital

The Quercus Trust

Roberts Communications Network

Sutter Hill Ventures

TAKEDA VENTURES, INC.

Ulupono Initiative

U.S. VENTURE PARTNERS

Vivo Ventures

WESTERN TECHNOLOGY INVESTMENT

Wind Energy, Inc.

Z2 Capital

Abakan Inc.

Advantage Capital Partners

Anderson Growth Partners

Austin Ventures

Chrysalis Ventures*

Cordova Ventures

Dresser-Rand

Energy Ventures

Exoxemis

Frontier Capital

HERITAGE GROUP

Kentucky Science and Technology Corporation

MATW Investments LLC

Maverick Capital Funds

MB Venture Partners

ORIX USA Corporation

Santé Ventures

4C Ventures

Aisling Capital

Ampersand Ventures

Amphion Innovations plc

Boston Scientific Corporation

BLUETREE ALLIED ANGELS

Capital Resource Partners

Cowen Healthcare Royalty Partners

Draper Triangle Ventures*

DREAMIT VENTURES

EASTON CAPITAL

Excel Venture Management

Fidelity Biosciences

Fletcher Spaght Ventures*

Foundation Medical Partners

Greatbatch

Greycroft Partners

Harris & Harris Group

HealthCare Ventures LLC

HORIZON TECHNOLOGY FINANCE

Investor Growth Capital

Life Sciences Capital

LSKW Investments LP

Midsummer Capital

mTerra Ventures LLC

New Enterprise Associates

O H I O

W E S T

N O R T H E A S T

S O U T HI N T E R N A T I O N A L

M I D W E S TNEW SCIENCE VENTURES

Oak Investment Partners

OrbiMed Advisors LLC

PERMAL CAPITAL MANAGEMENT

Polaris Ventures

RLS Investments, Inc.

SV Life Sciences*

StarVest Partners

SYCAMORE PARTNERS

Thomas, McNerney & Partners

Toucan Capital Corp.

Venzyme Venture Catalyst

Aberne Limited

Bally Energy Ltd.

Castlerigg Master Investments

DSM Venturing

DVx Inc.

LIGHTNING PROTECTION INTERNATIONAL

MA Solar

MWV Financial Inc.

POWER HEART CONSORTIUM

Siemens Venture Capital

2 8 I N V E S T O R S W E R E N E W T O T H E R E G I O N I N 2 0 1 2

1 6 1 E Q U I T Y I N V E S T O R S I N N E O H I O C O M P A N I E S

*Received Ohio Capital Fund Investment | ALL-CAPS: First-time investor in the region in 2012

2 0 0 4 - 2 0 1 2

F R O M V E N T U R E C A P I T A L I S T S & A N G E L I N V E S T O R S A R O U N D T H E W O R L D

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%.

2006

50

100

150

200

2012 2006 2012

108

$148

$212

46

N U M B E R O F C O M P A N I E S A T T R A C T I N G C A P I T A L & D O L L A R S I N V E S T E D ( 2 0 0 6 V S . 2 0 1 2 )

N U M B E R O F C O M P A N I E S D O L L A R S I N V E S T E D

1 0 8 T E C H - B A S E D C O M P A N I E S R A I S E D $ 2 1 2 M2 0 1 2

23Bell Innovations

AKRON BIOINVESTMENTS FUNDS, LLC

ANCORA GROUP

Big Game Capital

BIZDOM

Blue Chip Venture Company

BRANDERY

Bridge Investment Fund*

Case Technology Ventures

CID Capital

Clarion Direct Investment, LLC

Cleveland Clinic Innovations

CORENETWORK

Directional Aviation Capital

E CAPITAL PARTNERS

Early Stage Partners*

East Central Ohio Tech Angel Fund

EDISON VENTURES*

Everett Partners Ltd.

Evergreen Ventures Ltd.

Evolution Capital Partners

FRANTZ MEDICAL VENTURES

Glengary LLC*

Hatch Partners

JumpStart Inc.

Kadima Partners

Key Capital Corporation

MILLSTREAM ANGEL CLUB

Mutual Capital Partners

NCT Ventures*

NDI Healthcare Fund

North Coast Angel Fund

NORTHEAST OHIO MEDICAL UNIVERSITY (NEOMED)

Ohio TechAngel Fund

Portal Capital LLC

Parker Hannifin Corporation

PHYSICIAN INVESTMENT GROUP LLC

Primus Capital Funds*

Queen City Angels*

Reservoir Venture Partners*

Resilience Capital Partners

River Cities Capital Funds

RiverVest® Venture Partners*

RMS Investment Corporation

Rocket Ventures

Rockwood Equity Partners

Second Generation Ltd.

Shaker LaunchHouse

SOLERA QI VENTURES

Student Venture Fund at University of Akron

SunBridge Partners*

Supply Chain Equity Partners

Sunrise Operations

Thomas Roulston Investment Partners

Triathlon Medical Ventures

Tri-State Growth Capital Fund II

WEST CAPITAL ADVISORS LLC

Zapis Capital Group LLC

Apex Venture Partners

Arboretum Ventures*

Biomet

BlueCrest Capital Finance LP

Capital Midwest Fund

Entrepreneur’s Fund LLC

Hawthorn Group

Hopen Therapeutics

Hopewell Ventures

Lightbank LLC

Medtronic

Rockwell Automation

Southwest Michigan First Life Science Fund

Symark LLC

VENTURE INVESTORS LLC

Cardinal Venture Capital

Charter Life Sciences*

Chevron Technology Ventures

Draper Associates

DW Healthcare Partners

FLYWHEEL VENTURES

FTV Capital

Intel Capital

JDA Investments, LLC

Kearny Venture Partners

Microsoft Corporation

Morgenthaler Ventures

Palo Alto Investors

Panorama Capital

The Quercus Trust

Roberts Communications Network

Sutter Hill Ventures

TAKEDA VENTURES, INC.

Ulupono Initiative

U.S. VENTURE PARTNERS

Vivo Ventures

WESTERN TECHNOLOGY INVESTMENT

Wind Energy, Inc.

Z2 Capital

Abakan Inc.

Advantage Capital Partners

Anderson Growth Partners

Austin Ventures

Chrysalis Ventures*

Cordova Ventures

Dresser-Rand

Energy Ventures

Exoxemis

Frontier Capital

HERITAGE GROUP

Kentucky Science and Technology Corporation

MATW Investments LLC

Maverick Capital Funds

MB Venture Partners

ORIX USA Corporation

Santé Ventures

4C Ventures

Aisling Capital

Ampersand Ventures

Amphion Innovations plc

Boston Scientific Corporation

BLUETREE ALLIED ANGELS

Capital Resource Partners

Cowen Healthcare Royalty Partners

Draper Triangle Ventures*

DREAMIT VENTURES

EASTON CAPITAL

Excel Venture Management

Fidelity Biosciences

Fletcher Spaght Ventures*

Foundation Medical Partners

Greatbatch

Greycroft Partners

Harris & Harris Group

HealthCare Ventures LLC

HORIZON TECHNOLOGY FINANCE

Investor Growth Capital

Life Sciences Capital

LSKW Investments LP

Midsummer Capital

mTerra Ventures LLC

New Enterprise Associates

O H I O

W E S T

N O R T H E A S T

S O U T HI N T E R N A T I O N A L

M I D W E S TNEW SCIENCE VENTURES

Oak Investment Partners

OrbiMed Advisors LLC

PERMAL CAPITAL MANAGEMENT

Polaris Ventures

RLS Investments, Inc.

SV Life Sciences*

StarVest Partners

SYCAMORE PARTNERS

Thomas, McNerney & Partners

Toucan Capital Corp.

Venzyme Venture Catalyst

Aberne Limited

Bally Energy Ltd.

Castlerigg Master Investments

DSM Venturing

DVx Inc.

LIGHTNING PROTECTION INTERNATIONAL

MA Solar

MWV Financial Inc.

POWER HEART CONSORTIUM

Siemens Venture Capital

2 8 I N V E S T O R S W E R E N E W T O T H E R E G I O N I N 2 0 1 2

1 6 1 E Q U I T Y I N V E S T O R S I N N E O H I O C O M P A N I E S

*Received Ohio Capital Fund Investment | ALL-CAPS: First-time investor in the region in 2012

2 0 0 4 - 2 0 1 2

EARLY$145M

GROWTH$51M

SEED$16M

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.

L O C A L I N N O V A T I O N , G L O B A L R E A C H

$ 2 1 2 M E Q U I T Y C A P I T A L I N V E S T E D B Y S T A G E I N 2 0 1 2

"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

E A R L Y S T A G E C A P I T A L A T T R A C T O R S

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.

SPARKBASE (sparkbase.com),

whose software powers loyalty- and rewards-based programs, raised a $5 million Series A round.

INFO R MA T I O N T E C H N O L O G Y $ 4 1 M

EARLY$31M

GROWTH$5M

SEED$5M

HE A L T H C A R E $ 1 4 3 . 5 M

EARLY$92M

GROWTH$46M

SEED$5.5M

BUS I N E S S & C O N S U M E R $ 1 . 5 M

EARLY$.5M

SEED$1M

CL E A N T E C H $ 2 6 M

EARLY$22M

SEED$4M

B Y S E C T O R & S T A G E I N 2 0 1 2

$ 2 1 2 M E Q U I T Y C A P I T A L I N V E S T E D

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%).

U N I V E R S I T Y - D E V E L O P E D T E C H N O L O G I E SLINESTREAM 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).

SEED69EARLY25

GROWTH14

1 0 8 C O M P A N I E S R E C E I V E D I N V E S T M E N T

“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

B Y S T A G E I N 2 0 1 2

I N F O R MA T I O N T E C H N O L O G Y 4 7

SEED36

GROWTH2

EARLY9

SEED17

GROWTH5

EARLY15H E A L T H C A R E 3 7

SEED8

EARLY1

BU S I N E S S & C O N S U M E R 9

SEED8

EARLY7

CL E A N T E C H 1 5

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.

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.

H E A L T H C A R E I TS T R E N G T H I N

B Y S E C T O R & S T A G E I N 2 0 1 2

1 0 8 C O M P A N I E S R E C E I V E D I N V E S T M E N T

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.

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

T H E V E N T U R E C A P I T A L A D V I S O R Y T A S K F O R C E

“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

T H E S E C O M B I N E D D E A L S W E R E W O R T H M O R E T H A N A Q U A R T E R O F A B I L L I O N D O L L A R S

6 C O M P A N I E S E X I T E D I N 2 0 1 2

www.jumpstartinc.org www.bioenterprise.org

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.