OHIO

2014

TMVentureReport

Frank E. Samuel, Jr., VentureOhio’s founding president, embodied these words and as such, he succeeded in all his pursuits. In recognition of that success, the 2014 VentureReport is dedicated to his memory.

Frank Samuel was a longtime leader in the innovation and entrepreneurial community in Ohio and beyond. From 1974-1978, Frank served as secretary, vice president, and general counsel to the Advanced Medical Technology Association, then known as the Health Industry Manufacturers Association. He later returned to HIMA to serve as its president from 1984-1989. Frank served as president of the Ohio Edison Biotechnology Center from 1995-2000 where he quickly became a statewide thought leader in building a strong entrepreneurial ecosystem. In 2000, Frank was appointed science and technology advisor to the Governor of Ohio, a role that allowed him to implement many of his ideas to make Ohio a great place to start and grow high-potential businesses. Most notably, Frank was the principal architect of the Ohio Third Frontier Project, a first-of-its-kind program to support entrepreneurs and high-growth companies.

After Frank left state service, he remained very much engaged in the entrepreneurial and economic development community. He founded the Geauga Growth Partnership where he served as president for three years. In 2010, the Brookings Institute published Frank’s report on the need for a more cohesive Great Lakes venture capital strategy.

Among his many other lasting accomplishments, Frank’s leadership and determination were instrumental in establishing VentureOhio. Frank’s unique talents brought together Ohio’s diverse venture community into the first statewide organization dedicated to advocating for the sources of capital that support high-potential entrepreneurial businesses. Under Frank’s leadership, in its first year VentureOhio grew to over 90 members, published two ground-breaking reports about the need for additional venture capital and venture capital funds in Ohio, and hosted its first successful VentureDinner.

As a colleague, friend and mentor to all of us at VentureOhio, we are honored to dedicate this report to our founding president, Frank E. Samuel, Jr.

“ BE GREAT IN ACT, AS YOU HAVE BEEN IN THOUGHT. ” WILLIAM SHAKESPEARE

IN MEMORIAM

Frank E. Samuel, Jr. Founding President

Ohio VentureReport 2014

VentureOhio is pleased to present the 2014 VentureReport. Thanks to the participation of our members and others, we are able to provide a look at investment and exit activity in 2014, as well as the capital needs of Ohio’s startup and early-stage companies. This year’s VentureReport also profiles fast-growing companies from across the state with the potential to achieve highly successful exits like those highlighted below, and various resources available across Ohio to support these companies as they grow.

Capital for seed and startup companies continues to flow strongly in Ohio thanks in large part to Ohio’s Third Frontier Program (OTF) and our active angel investor community. To further fuel the growth of these companies, JobsOhio expanded its Growth Loan Fund program, providing attractively structured loans to early-stage companies. This program complements the existing Innovation Ohio Loan Fund (IOLF) and Commercialization Acceleration Loan Fund (CALF) programs managed by Ohio’s Development Services Agency.

At the other end of the continuum, TOA Technologies, Akebia Therapeutics, and Simbionix achieved highly successful exits in 2014, which were followed by successful exits at DotLoop, Explorys and CardioInsight this year. These transactions collectively delivered well over $1 billion in financial returns to employees and investors and greatly increased regional and national visibility for Ohio. These companies are examples of what can be accomplished by talented entrepreneurs

and business-building support available in Ohio’s vibrant and growing entrepreneurial ecosystem.

While Ohio has much to be proud of and excited about, the state’s growing early-stage capital gap has the potential to slow the growth of Ohio’s current and future high potential startup companies, and make it more difficult for them to achieve the kinds of successes highlighted above. Respondents to VentureOhio’s 2014 survey indicated that 115 of these companies will require $633 million in funding before the end of 2016 to support accelerating growth and job creation. This capital need comes at a time when Ohio’s early-stage venture capital community is at what may be a ten year low in terms of the number of active venture capital firms based in the state, and the capital available from these firms is reported to be well less than half of the need cited above.

In summary, while there has never been a better time to launch a startup company in Ohio, the early-stage capital gap continues to be a serious and growth-limiting issue for the ecosystem. Ensuring there is abundant capital to support early-stage company growth in Ohio remains VentureOhio’s top priority, and we are hopeful that the data and other information provided in the 2014 VentureReport will help readers better understand this challenge and serve as a catalyst for policies and programs that can address it.

We would like to thank VentureOhio’s members for their continuing support of VentureOhio and the companies in the ecosystem. We look forward to working with all of you in the years to come to make Ohio the nation’s leading location to start and grow high-potential companies.

A MESSAGE FROM THE VENTUREOHIO LEADERSHIP

John C. McIlwraith Chairman

Stephen R. Haynes President

Falon Donohue Executive Director

2

OHIO INVESTMENTS $321 MILLION INVESTED ACROSS ALL VENTURE INVESTMENT STAGES

210 OHIO COMPANIES

154 SEED/STARTUP

44 EARLY STAGE

12 GROWTH STAGE

$133 MILLION INVESTED INTO 113 IT SECTOR COMPANIES WITH THE NEXT LARGEST SECTOR BEING LIFE SCIENCES AT

$116 MILLION INVESTED INTO 52 COMPANIES

OHIO INVESTORS 47 INVESTORS RESPONDED TO THE VENTUREOHIO SURVEY

36 INVESTORS ARE HEADQUARTERED IN OHIO

EMPLOYING 103 INVESTMENT PROFESSIONALS

STAGE OF COMPANY INVESTMENT FOCUS:

19 EARLY STAGE

13 SEED/STARTUP

4 GROWTH

ECOSYSTEM $25.7 MILLION FOR SEED/STARTUP COMPANIES AWARDED IN 2014 BY OHIO THIRD FRONTIER

FAST

FACTS

4

SF

Why Venture into Mason?

1675K350

Growth CompaniesNurtured

Supported Tech &Innovation Space

Jobs Created Directly byGrowth Companies

$

Venture Capital Attracted

$73M

www.whymason.com

Learn more: www.assurexhealth.com

© 2015 AssureRx Health, Inc. All Rights Reserved. Assurex Health is a DBA of AssureRx Health, Inc.

What do Sequoia Capital, Claremont Creek Ventures, Cross Creek and Four Rivers Group know about investing in Ohio (that you don’t)?

For starters, they know that real start up ROI is happening right here in the Buckeye

State, right now. And that Ohio is rich with hungry, emerging companies and ripe with

technology, medical, research, and academic talent. Which is why, collectively, these leaders

of venture capital have made significant investments in Mason, Ohio-based Assurex Health,

a rapidly growing biotech company creating and commercializing technologies that are

transforming the precision medicine movement across the globe.

Smart money knows Ohio. Do you?

VentureOhio was created in 2013 to be the unified voice for capital sources and other organizations that finance or support high growth companies based in Ohio, and that seek to make Ohio a preferred location for high potential entrepreneurial activity. VentureOhio works with Ohio’s lawmakers and governor to recommend and advocate for policies and programs to increase Ohio’s success in starting and growing entrepreneurial businesses. VentureOhio focuses on the steps that should be taken promptly to support Ohio’s growing but fragile entrepreneurial ecosystem, and enhance the chances that recently launched and future high growth businesses will achieve the financial returns, job creation and economic vitality essential for the prosperity of Ohio’s families.

VentureOhio’s three primary areas of focus are:

ASSURING ADEQUATE CAPITAL VentureOhio’s first priority is assuring adequate capital is available in Ohio to support high-potential companies at all stages. VentureOhio supports the creation of one or more Ohio-focused fund-of-funds, with an emphasis on the support of early-stage companies

STRENGTHENING THE ENTREPRENEURIAL ECOSYSTEM VentureOhio will collaborate with the Third Frontier, JobsOhio, the state’s Entrepreneurial Signature Programs, state and local officials, incubators and accelerators, and startups, major corporations, foundations, universities, and service providers to strengthen Ohio’s entrepreneurial ecosystem.

TELLING OHIO’S STORY Ohio is a diverse, innovative and entrepreneurial state with a unique and powerful story to tell. Each year we will complete a statewide survey and publish the annual Ohio VentureReport, reflecting angel and venture investment and job creating activities from across the state. The VentureOhio website features stories from the creators, makers and innovators who are working together to put Ohio on the map as a center for entrepreneurial activity.

Ohio is on the cusp of becoming a national innovation hotspot. It takes a community to build an entrepreneurial ecosystem, and with your continued support, we can make VentureOhio’s goals a reality.

Learn more about our mission at ventureohio.org

Ohio VentureReport 2014

TABLE OF CONTENTS Dedication

Leadership Message

Fast Facts

Objectives

07 OHIO DATA Investments

Investors

15 OHIO RESOURCES Business Building Resources - Ohio Third Frontier - JobsOhio - The Entrepreneurial Signature Program

Accelerators and Incubators

Angel Capital

Ohio’s Ecosystem

23 OHIO NETWORK VentureDinner

Board of Directors

Member Directory

Companies to Watch

Notable Exits

To create this report, VentureOhio surveyed members of the Ohio investor community to gather information regarding 2014 venture activity in the state.

The 47 survey responses were augmented by investment data provided by organizations that track regional investment activity in Ohio. The VentureReport methodology utilizes the company stage definitions listed below:

SEED/STARTUP: Companies that have a product or service in alpha/beta testing, proof-of-concept (POC) or pilot stage. In some cases the product or service may be commercially available. A company in this stage may or may not be generating revenue, and typical investments range from $500,000 to $2 million.

EARLY-STAGE: Companies have revenues beyond the alpha/beta testing, POC, or pilot stage (typically $500,000 - $5 million), but have yet to achieve cash flow break even. Early-stage focused venture capital funds usually make these types of investments, but angel groups may also participate. Financing rounds typically involve investments of $2 million to $5 million.

GROWTH-STAGE: Companies with revenues of $5 million or more, and have achieved or are approaching profitability. These investments are usually intended to help a company with a proven business model aggressively accelerate its market penetration.

COMPANY STAGE DEFINITIONS

6

THE FLOW OF CAPITAL IS

“OHIO’S LEVEL OF SEED AND STARTUP

INVESTMENT ACTIVITY HAS BEEN THE ENVY

OF THE REGION FOR YEARS. WHATEVER

YOU ARE DOING TO SUPPORT THESE

FUNDING SOURCES IN THE STATE IS

WORKING.”

Chris Rizik of Michigan’s Renaissance Venture Capital Fund

A vibrant entrepreneurial ecosystem relies on several stages of risk capital investment for growth. Seed and startup companies receive funding from institutional and individual angel investors whose investments may take the form of equity or debt that is convertible into equity. Angel funding typically supports the development of the company’s first generation product or service and the launch of commercialization efforts, and may include several rounds of financing.

As a company’s commercial traction accelerates and revenues approach or exceed $1 million, it will typically turn to venture capital funds for the early-stage capital necessary to hire additional employees for the sales, marketing and product development activities that will further accelerate growth. Increasingly, Ohio’s early-stage companies are taking advantage of loan programs (JobsOhio, IOLF, and CALF) to augment angel or venture fund investments.

Once the business model is proven and revenues approach or exceed $5 million, other venture capital funds provide the growth capital

OHIO DATA 2014

Ohio VentureReport 2014

that will propel the company to revenue levels that will enable it to achieve a successful exit via an IPO or sale.

This section presents data on investments in Ohio’s seed/startup, early-stage, and growth-stage companies during 2014 from angel investors and venture capital funds. The data was provided by 47 institutional investors, 36 of which were headquartered in Ohio, and from organizations around the state that track investment activity in their region. While Ohio is also home to a number of private equity firms and mezzanine lenders with a long history of successful investments and loans in Ohio and elsewhere, the VentureReport does not cover those sources of risk capital.

Based on the experience of investment reports developed by regional organizations within the state, VentureOhio believes that the following data is more complete than the Ohio data included in published national data bases.

Here is Ohio’s 2014 story.

ESSENTIAL

8

Many of the companies receiving investments in 2014 will require substantial investments from venture capital firms over the next few years as they transition to the next stage of growth. This funding will support accelerated commercialization efforts and further product development, producing high paying jobs for the state and increasing the likelihood of the companies’ success. As is detailed later in this report, this expected demand for early-stage venture capital funding comes at a time when the number of venture capital firms based in Ohio that are investing in early-stage companies is at what may be a 10 year low, and the amount of capital such firms have available to invest is well below the indicated need. This imbalance has created an early-stage capital gap that will adversely impact the revenue growth and job creation potential of these companies, as well as the returns they generate for investors.

In 2014, 210 companies received angel or venture funding totaling $321 million. As the numbers below reflect, Ohio continues to see a strong flow of investment activity into the seed and startup stage, thanks in large part to the support from Ohio’s Third Frontier program. Over the past three years the program has provided over $60 million to 17 organizations that make seed and startup investments, which was matched with funding from the private sector. While exact comparisons are difficult to make, VentureOhio believes that Ohio leads the Midwest region in investment activity at this stage, a critical component for building a vibrant entrepreneurial ecosystem.

OHIO

INVESTMENTS

2014 INVESTMENTS BY STAGE 210 OHIO COMPANIES

154

44

12

2014 INVESTMENT AMOUNT BY STAGE $321 MILLION

SEED/ STARTUP

EARLY

GROWTH

SEED/ STARTUP

EARLY

GROWTH

2014 INVESTMENT AMOUNT BY SECTOR $321 MILLION

2014 INVESTMENTS BY SECTOR 210 COMPANIES

$94

$126

$101

$17

$19Alternative Energy Alternative Energy

$17Advanced Materials Advanced Materials

$116Life Sciences Life Sciences

$18Consumer Consumer

$133IT IT

Other Other

113

5

52

6

8

26

Ohio VentureReport 2014

Information Technology (IT) was by far the most active industry sector overall in 2014, and most of the investments in IT were made in software companies. This trend will likely continue as most of the VC funds that are based in or target investments in Ohio are focused on investments in software companies, particularly cloud-based and software-as-a-service (SaaS) companies, rather than life sciences investments (pharma, biotech, devices and diagnostics).

2014 IT INVESTMENTS $133 MILLION

2014 LIFE SCIENCE INVESTMENTS $116 MILLION

SEED/ STARTUP

EARLY

GROWTH

2014 INVESTMENTS IN IT BY STAGE 113 OHIO COMPANIES

88

21

4

SEED/ STARTUP

EARLY

GROWTH

2014 INVESTMENTS IN LIFE SCIENCES BY STAGE

52 OHIO COMPANIES

32

16

4

“OHIO-BASED TRIATHLON WAS CRITICAL TO THE SUCCESS OF OUR FIRST VC ROUND.

WITHOUT THEIR LEADERSHIP AND LOCAL PRESENCE, THE ROUND WOULD HAVE

CERTAINLY TAKEN MUCH LONGER TO COME TOGETHER, WHICH WOULD HAVE

DELAYED THE DEVELOPMENT OF OUR LEAD COMPOUND JVS-100 AND THE GROWTH

OF JUVENTAS.”

Rahul Aras, Juventas

10

The numbers below reflect a troubling trend. While there continues to be strong investment activity at the seed/startup stage, in large part thanks to Ohio’s Third Frontier Program, the number of early-stage investments, particularly by Ohio headquartered firms, declined year over year. This decline reflects the fact that several early-stage focused venture capital firms that were active in past years, and supported the growth of companies like Akebia, CardioInsight and TOA Technologies, no longer have capital to invest in new companies.

This means that high potential seed and startup companies increasingly have to look to out-of-state firms for the capital they require to grow. Often these out-of-state firms prefer to invest in companies at the growth stage, where the business is much further developed and requires less frequent attention. Out-of-state investors who will consider a company at the early stage generally prefer to invest with a local VC co-investor, which can be hard to find given the decreasing number of Ohio-based VC firms.

OHIO

INVESTORS

SURVEY RESPONDER BREAKDOWN

36

8

3

18

2

1

37

8

3

24

7

3

OHIO HQ

OHIO PRESENCE

NON OHIO

Total Investors Investors that made Ohio investment

2014 20142013 2013

Respondents to VentureOhio’s survey indicated that 115 seed/startup and early-stage companies will need to raise $633 million of capital by the end of 2016 to continue growing their businesses. These respondents also reported that the amount of capital available from Ohio-based firms for investment in seed/startup and early-stage companies is only $241 million --a capital gap of $392 million.

Ohio VentureReport 2014

A few years ago, Cincinnati-based Triathlon Medical Ventures led successful early-stage investments in Ohio companies such as Akebia Therapeutics (NASDAQ:AKBA), Aerpio Therapeutics, and Juventus Therapeutics, which led to investments by Ohio-based venture firms Reservoir, Early Stage Partners, Glengary, Athenian Venture Partners, and several nationally recognized venture capital firms from outside Ohio.

While a few of the out-of-state firms that focus on Ohio will invest in life sciences companies, the lack of a local lead investor for Ohio-based companies will likely make it difficult for an Ohio-based seed/startup life sciences company to raise its first venture capital financing. Without funds to fill the gap, Ohio may miss opportunities to leverage some of its greatest intellectual resources and to create the next Akebia, Aerpio or Juventas.

Not surprisingly, the early-stage capital need is nearly 2x the seed/startup need ($423 million vs $210 million). When one considers that, given the regional and national focus of many of Ohio VC firms, less than half of the $241 million available may find its way to Ohio-based companies, the true magnitude of the capital gap is meaningfully greater.

The early-stage capital gap is most acute in the life sciences sector. While Ohio is home to a number of world class healthcare clinical and research institutions, there are currently no institutional venture capital firms based in Ohio that can lead early-stage investments in Ohio life sciences companies.

$31Advanced Materials

$37Alternative Energy

$9Consumer

$345IT$294Life Sciences

$10Other

AMOUNT NEEDED PER SECTOR ALL STAGES $726 MILLION

OHIO CAPITAL NEEDS VS. OHIO CAPITAL AVAILABLE ALL STAGES**

$93

$423

$210$30

$210

$151

CAPITAL NEEDED

**2014 OTF pre-seed capitalization awards ($25.7million) to Seed/Start-up companies were not dispersed by end of year so not counted in available capital

CAPITAL AVAILABLE

SEED/ STARTUP

EARLY

GROWTH

SEED/STARTUP AND EARLY-STAGE CAPITAL GAP$392 MILLION

$633

$241115 OHIO COMPANIES NEED BY 2016

2014 OHIO CAPITAL AVAILABLE

$392 GAP

12

OPEN THE

GATESAs the preceding pages reflect, seed and startup capital continues its strong flow into high-potential companies being founded by talented entrepreneurs across the state. These newly-launched companies are further strengthened by the Entrepreneurial Signature Programs, accelerators and other business building resources that provide much needed mentoring and commercialization guidance. As a result, the number of promising seed and startup companies in Ohio has arguably never been higher, and that number is expected to grow thanks to the seed/startup capital and other resources referenced above. Overall, Ohio continues to be an excellent place to launch a startup company.

Ohio is also experiencing success at the other end of the company growth continuum. In the past year, companies across the state have cumulatively generated over $1 billion in exit value for investors and employee shareholders through sales to large strategic acquires and an IPO. In all cases, these companies have been building for several years and received support from Ohio-based angel and/or venture capital investors and other local business-building resources to fuel their growth. While several companies attracted out-of-state capital to support the later stages of their growth, these exits confirm what those of us who are active in the ecosystem already know--building a company from startup to success

Ohio VentureReport 2014

takes years and significant local support.

Ohio entrepreneurs are hard at work building the next wave of successful startups. Many of these newly formed companies have the potential to be the next TOA Technologies, Explorys, or Akebia. Several of them may achieve even greater success in terms of financial returns and job creation, but they will need help. Several of these startups are approaching a stage that will require capital and ongoing guidance and experience from early-stage venture capital firms to sustain growth. This phenomenon is occurring at a time when the number of active early-stage venture capital firms based in Ohio appears to be at a 10 year low, and the amount of capital available from these firms to support the growth of seed and startup companies is well below the forecasted need.

VentureOhio is working with individuals and organizations in the private and public sectors to address the early-stage capital gap, and ensure that abundant capital and business building resources are available across all stages of the growth continuum to support current and future Ohio companies. We look forward to working with you as we pursue this important mission and seek to make Ohio the best place to start and grow innovative businesses.

“OHIO IS AN EASY

PLACE TO LIVE,

AND THAT MAKES IT

POSSIBLE TO FOCUS

ON BUILDING A

LARGE BUSINESS.”

Matt Scantland, CoverMyMeds

14

AN ALIVE AND

ORGANIC“OHIO’S ABILITY TO BRING PEOPLE

TOGETHER FROM ALL CORNERS OF

THE STATE TO HELP TRANSFORM OHIO’S

ENTREPRENEURIAL ECONOMY HAS BEEN

A HALLMARK OF PROGRESS OVER THE

LAST TEN YEARS.”

Ray Leach, JumpStart, Inc.

COMMUNITY

Ohio VentureReport 2014

OHIO THIRD FRONTIER (OTF) stimulates technology development, company creation, and job growth across the state. Matching state funds with private investments, the OTF has catalyzed the development of a statewide ecosystem well-suited for the launch and growth of new technology companies. In addition to capital, OTF provides programming and support for research and host institutions, ensuring Ohio entrepreneurs are equipped with the knowledge and resources necessary to move technology through the commercialization process.

Since its inception, this internationally recognized program has invested more than $1.5 billion in initiatives that contributed to the growth of high-tech companies and the creation of high-paying jobs across Ohio. An important part of the ecosystem, Ohio business and technology incubators provide facilities, services, and specialized equipment to emerging technology companies. Originally established as the Edison Incubator program, now included in the Ohio Third Frontier, Ohio incubators have a long history of regional business support. Strongly connected to the ESP organizations, JobsOhio, and the network of venture capital, OTF incubators play a part in the growth of vibrant Ohio companies. In 2014, incubator tenants generated more than $175 million in revenue and employed more than 439 Ohio workers.

JOBSOHIO supports the growth of early-stage companies through existing JobsOhio funding programs and helping connect early-stage companies to large corporations, thus promoting economic development in Ohio’s communities. Helping early-stage firms succeed is critical to developing a best-in-class entrepreneurial ecosystem, which is why JobsOhio provides support to firms located in Ohio with a strong record of job creation, primarily in the life sciences and IT industries. The goal is to help Ohio’s early-stage firms attract more investment, drive job creation, and keep these firms in Ohio. JobsOhio may also help early-stage firms access accounting, strategy, and human resources guidance to help them focus on their core strengths.

THE ENTREPRENEURIAL SIGNATURE PROGRAM. The Ohio Third Frontier (OTF) created the Entrepreneurial Signature Program (ESP) to provide assistance for emerging technology companies and nascent entrepreneurs. To create the program, state leaders actively engaged with local communities to better understand barriers to entry, existing assets, and industry concentrations that would help make the program a success. This study resulted in the creation of six offices located across the state, each uniquely positioned to make an impact on entrepreneurship in their region.

The ESP organizations described below have played a significant and extremely valuable role in accelerating the formation and growth of seed and startup businesses in the state and represent a foundational component of the overall OTF strategy to assist entrepreneurial technology companies. Currently, the ESP organizations have a two-year commitment of funding from the OTF that will, in part, support their operations through the end of CY 2016. Discussions are ongoing regarding an additional two-year cycle of funding that would contribute to the support of the ESP organizations through CY 2018.

Entrepreneurs choosing to start and grow a high potential company in Ohio have access to a number of financial and other resources critical to the success of an entrepreneurial enterprise. This section highlights resources that are the result of public-private partnerships.

16

OHIO’S BUSINESS BUILDING RESOURCES

JUMPSTART, INC. provides high-impact assistance to diverse early-stage companies in Northeast Ohio, working one-on-one with entrepreneurs to establish and achieve value-creating milestones of growth. In 2014, client companies raised $252 million and created 140 jobs.

2014 was a year of game-changing deals for two of the non-profit venture organization’s portfolio companies. Ravenna-based clean energy innovator Catacel was acquired by Johnson Matthey, a London-based global specialty chemicals firm, and Columbus-based CoverMyMeds announced one of the largest healthcare technology investments of the year from California-based private equity firm Fransisco Partners. Both companies remain in Ohio, where they continue to experience rapid growth.

Meanwhile, exciting JumpStart clients like Everykey, BoxCast, Darkside Scientific and ABS Materials continued to make news in 2014, receiving attention from a diverse range of outlets including Popular Mechanics, Forbes, Inc., The Wall Street Journal, Reuters, CNBC, Entrepreneur, VentureBeat and Yahoo News. jumpstartinc.org

NORTHEAST OHIO

TECHGROWTH OHIO connects entrepreneurs with resources, and offers valuable tools for growth and sources of funding for technologically-innovative companies. Leveraging the innovation activities of Ohio University, TechGROWTH Ohio seeks to significantly increase revenue growth and early-stage capital investments in technology-based businesses within the 20-county region of Southeast Ohio.

Growing from $2 million to $20 million in one year, TECHGrowth portfolio company EcolibriumSolar has engineered innovative mounting systems for the solar energy industry. EquilibriumSolar introduced the first 100% recycled plastic solar mounting systems for residential customers and followed through with a second product offering for commercial flat-roof systems. Both innovative products were designed to work with panels from virtually any vendor, closing a gap in the marketplace. techgrowthohio.com

SOUTHEAST OHIO

CINCYTECH strengthens Southwest Ohio’s regional economy by driving talent and capital into scalable technology-based companies. In 2014, the public-private seed stage investor invested over $5 million in seven new companies, which led to follow-on investments totaling over $226 million and the creation of 674 jobs.

2014 was a great year for several CincyTech portfolio companies. Akebia (NASDAQ: AKBA) and Ilesfay both achieved successful exits during the year. Enable Injections signed a development agreement with CSL Behring, one of the world’s largest pharmaceutical companies, and LISNR raised $3.5 million in Series A financing and won the CBS Local Digital Media Innovation Demo Day in New York City. cincytechusa.com

SOUTHWEST OHIO

NORTHWEST OHIO

REV1 VENTURES supports high potential companies in Central Ohio through the first phases of growth in order to increase their probability of success. In 2014, Rev1 Ventures guided 88 companies through product validation, and invested $4.8 million in 18 companies, attracting $109 million in follow-on investments and creating 1,004 jobs with an average salary of $78,000 per year.

Rev 1 has supported the launch of several notable companies. Simple-Fill, a Columbus-based spinout of The Ohio State University, is developing a new technology that reliably and affordably compresses natural gas (CNG) so that it can be used to fuel trucks and cars. In early 2014, Simple-Fill was the inaugural recipient of an investment from the Technology Concept Fund, LLC, which was followed by a seed-funding round from the Rev1 Catalyst Fund later that year. Columbus-based Print Syndicate and sister company, Origin Makers, an on-demand printing company, have grown from less than a half-dozen jobs in 2014 to more than 100 employees. The company also jumped from $4 million in revenue in year one to $14 million in year two. In 2014, Print Syndicate closed a $4.25 million Series A funding round that included investment from Rev1 Ventures. The company was named to Forbes’ 2015 List of America’s Most Promising Companies with less than $300 million in revenue. rev1ventures.com

CENTRAL OHIO

ACCELERANT DAYTON helps create and grow promising startup technology businesses in the Western Ohio area. Target sectors include advanced materials and manufacturing, sensors and photonics, aerospace, human sciences and healthcare, and information technology. accelerantdayton.com

ROCKET VENTURES provides entrepreneurial services and prototype and pre-seed funding for high-tech early-stage companies in Northwest Ohio. Portfolio company Roost develops innovative mobile solutions that are capable and affordable, with a focus on independent publishers e-commerce. In 2014, the company closed a funding round with investments from venture capital firms in New York, Japan and the Midwest. rocketventures.org

WESTERN OHIO

18

BIZDOM, CLEVELAND Founded by serial entrepreneur Dan Gilbert, Founder and Chairman of Quicken Loans and Rock Ventures, Bizdom is a non-profit business accelerator created to help provide the support and resources necessary for aspiring entrepreneurs to get their businesses off of the ground in Detroit and Cleveland. In December 2014, Bizdom hosted a successful Demo Day, bringing the Ohio investor community together in Cleveland.

One hundred percent of the returns on investments are recycled back into Detroit and Cleveland to continue to support the entrepreneurial ecosystems in Michigan and Ohio. bizdom.com

THE BRANDERY, CINCINNATIThe Brandery is a seed-stage startup accelerator that leverages the expertise of the Cincinnati region, with a special focus on branding, marketing and design. Focusing on helping portfolio companies become resource efficient and building their brand is a key to their success.

In 2014, The Brandery was ranked the #10 startup accelerator in the United States by the Seed Accelerator Rankings Project and the #1 accelerator in the United States for industry-specific mentorship. Eight founders of Brandery companies were named to Forbes’ 30 under 30 lists, and 2012 graduate FlightCar’s founders became the youngest entrepreneurs in history to raise $20 Million after closing their $13.5 Million series A round in 2014. brandery.org

CINTRIFUSE, CINCINNATICintrifuse connects the region’s high-potential, venture-backable startups with advice, talent, funding and customers. With over 35 ecosystem partners, 50+ participating local corporations, 75+ mentors and advisors, and a $75 million fund-of-funds, Cintrifuse leverages the power of its network to serve over 160 members and improve their chances of success.

Also 2014 was an exciting year for Cintrifuse, as membership reached over 160 startups, and the #StartupCincy movement continues to gain traction, making a noticeable impact on the entrepreneurial scene in Greater Cincinnati, and connecting innovative leaders with corporate leaders. cintrifuse.com

ACCELERATORS AND INCUBATORSOhio’s high level of entrepreneurial activity has led to the creation and continued development of business building organizations across the state. These organizations provide vital connections, support and education for entrepreneurs as they navigate through the business building continuum.

THE LORAIN COUNTY COMMUNITY COLLEGE GREAT LAKES INNOVATION AND DEVELOPMENT ENTERPRISE (GLIDE), ELYRIAGLIDE is a comprehensive regional innovation and resource center that supports all facets of the startup, development and growth of entrepreneurial ventures. GLIDE assists in creating, growing and nurturing jobs that spearhead economic growth in the Northern Ohio region. Since its inception, GLIDE has worked with over 2,800 technology-based companies and entrepreneurs. Acting as a connecting point for NEO entrepreneurs in need of business development assistance, GLIDE routes emerging and existing companies to regional partners who can provide the specialized services necessary to accelerate growing tech companies. lorainccc.edu

OCEAN, CINCINNATIOCEAN is a startup accelerator with God at the center (believed to be the only one of its kind). Each year, OCEAN invests in 10 high-potential technology startups and takes them through a 5-month journey that builds solid infrastructure, deepens character, attracts investors and sets the course for long-term success. OCEAN believes that it can increase the odds of startup success by taking into account the spiritual, relational, physical, intellectual and financial aspects of founders as they launch their venture. So far it’s working: five of ten companies in the first class received follow-on venture or angel funding by the time of their graduation. oceanaccelerator.com

THE OHIO STATE UNIVERSITY TECHNOLOGY ENTREPRENEURSHIP AND COMMERCIALIZATION (TEC) INSTITUTE, COLUMBUSTEC is a proof of concept center that commercializes university technologies that present compelling opportunities for venture-backed startups. Since its inception, the TEC Institute’s programs have trained over 550 graduate students and research scientists, evaluated the commercial potential of more than 400 technologies and launched more than 60 companies that have raised in excess of $50 million in follow-on funding. TEC’s proprietary technology evaluation and training algorithm was recently recognized by Inc. as one of the 10 most innovative programs in the country, and received the coveted Olympus Award for Innovation. With sponsorship from the Ohio Board of Regents, TEC is administering the new I-Corps@Ohio program to research and develop the underlying commercial potential of technology startups from Ohio’s research institutions. OSU.edu

YOUNGSTOWN BUSINESS INCUBATOR, YOUNGSTOWNThe Youngstown Business Incubator is the #1 ranked university affiliated incubator in the world by the University Business Incubator Index in Stockholm, Sweden. YBI focuses on the development of B2B software application companies in the Mahoning Valley, and is the home of 32 portfolio companies operating out of a five building campus in downtown Youngstown. The YBI campus is also home to a federally funded research and development center, America Makes, the National Additive Manufacturing Innovation Institute. ybi.org

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QUEEN CITY ANGELS (QCA) is a group of more than 50 experienced andaccredited investors who provide funding, support and guidance to seed and early-stage companies in Cincinnati and the surrounding region. QCA members, which include former C-level executives and entrepreneurs, draw from their personal operating and management experience to evaluate opportunities and provide ongoing mentorship to young businesses with exceptional growth potential. Since 2000, QCA members have directly invested more than $45 million in nearly 80 portfolio companies. The total capital invested in these companies, including QCA members’ capital, syndication partners’ capital, follow-on venture capital investments and venture debt is in excess of $410 million. CB Insight recently ranked QCA second out of 370 national angel organizations.

NORTH COAST ANGEL FUND (NCAF) was founded in Northeast Ohio in 2006and now includes 180 investors. NCAF’s first two funds have deployed over $30 million in 38 Ohio-based technology companies. Notable investments include Assurex Health, Neuros Medical, Juventas Medical, GenomOncology, Ahalogy, OnShift, StreamLink Software, and Decision Desk.

OHIO TECHANGELS FUNDS (OTAF) is a group of four angel investor funds thatinvest in highly promising early stage Ohio-based companies in IT, advanced materials, and life sciences. More than 340 high net-worth accredited investors contribute to the funds with matching support from the Ohio Third Frontier. OTAF’s 35 active companies have generated more than $93.4 million in revenue and 532 jobs with an average salary of $86,000.

IMPACT ANGEL FUND is a newly formed fund with 40 members and $2 millionin capital. The Fund has a preference for early-stage companies in East Central and Eastern Ohio.

CORENETWORK is a Toledo-based organization with 307 members that aims toinvest in early and growth-stage companies in the Great Lakes-Midwest region with a proven execution record, clearly defined path to solid growth and strong returns in a 3-5 year horizon. The fund seeks companies with technology-based solutions.

AKRON REGIONAL CHANGE ANGELS (ARCHAngels) investment networkprovides a regional forum for introducing investors to high-potential, market-driven, technology-based investment opportunities. Expanded beyond the original accredited investors and now including corporate, entrepreneurial, and education components, ARCHAngels hosts as many as 150 entrepreneurial students from six universities at quarterly events.

X SQUARED ANGELS was created in Columbus, Ohio to demonstrate and promotethe financial effectiveness of gender diverse management business teams through investment in their companies.

ANGEL CAPITALOhio is home to a large number of individuals that invest in exciting seed to startup stage companies launched within the state. These individuals have formed angel groups, funds and clubs to invest in and nurture these high-potential companies. The high level of activity and investment savvy of the Ohio angel community has been nationally recognized by the Angel Capital Association. Within 15 years, Ohio has grown from a state with only one recognized angel group to the home of more than 10 angel groups with 2 funds ranked within the top five nationally.

Several are highlighted below:

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“WE NEED MORE INVESTMENT PARTNERS. BUILDING A SUCCESSFUL COMPANY

TAKES MULTIPLE STAGES OF CAPITAL AND HELP FROM EXPERIENCED INVESTORS.

THAT’S MORE DIFFICULT HERE BECAUSE THERE AREN’T MANY LOCAL FUNDS

TO CO-INVEST WITH. VENTUREOHIO IS WORKING TO CHANGE THAT.”

Mark Kvamme, Drive Capital

OHIO’S ECOSYSTEMAccelerators and Incubators Bad Girl VenturesBioEnterpriseBioMotivBizdomBraintreeThe BranderyCCHMC Tomorrow FundCintrifuseCleveland Clinic Innovations Endeavor ForwardFirst BatchFlashstartsGLIDE at Lorain Community College HCDC Business CenterInnovate New Albany LaunchHouseMAGNETMinority Business AcceleratorNDI Healthcare FundOCEAN AcceleratorOU Innovation CenterWomen’s Small Business Accelerator Youngstown Business Incubator

Angel FundsARCH AngelsCoreNetworkDrummond Road CapitalEast Central Ohio Tech Angel Fund Fast SwitchFounders Factory/10XImpact Angel FundInnovation Fund at LCCC

Millstream Angel ClubNorth Coast Angel FundOhio TechAngels FundsQueen City AngelsTri-State Angel Investment GroupVine Street VenturesX-Squared Angels

Ohio Third Frontier Entrepreneurial Signature ProgramsAccelerant DaytonCincyTech USAJumpstartRocket VenturesRev1 VenturesTechGrowth Ohio

Venture Capital Firms Operating in OhioAllos VenturesArsenal Venture PartnersAthenian Venture PartnersBlue Chip Venture CompanyDraper Triangle VenturesDrive CapitalEdison PartnersFletcher SpaghtHopen Life Science VenturesIKOVE Capital PartnersMutual Capital Partners FundsNCT VenturesNorth Coast Venture FundRiver Cities Capital FundsZeigler LinkAge Longevity Fund

OUR STRENGTH IS OUR

2014 WINNERSSEED-STAGE FINANCING OF THE YEAR: NEXTRONEX

EARLY-STAGE FINANCING OF THE YEAR: LISNR

GROWTH-STAGE FINANCING OF THE YEAR: TOA TECHNOLOGIES

EXIT OF THE YEAR: AKEBIA THERAPEUTICS

LIFETIME ACHIEVEMENT AWARD: DAVID MORGENTHALER, MORGENTHALER VENTURES

Ohio VentureReport 2014

NETWORKTHE VENTUREDINNERLast September, over 230 attendees from across the state gathered at the Blackwell Inn for the inaugural VentureDinner, celebrating successes over the past year and catching up with friends. Four outstanding companies were honored, and David Morgenthaler, founder of Morgenthaler Ventures, received VentureOhio’s Lifetime Achievement Award (now named after Mr. Morgenthaler) for his many valuable contributions to Ohio’s and the nation’s venture community.

The evening also included a review of the health of Ohio’s entrepreneurial ecosystem and a discussion of the growing early-stage capital gap facing the state’s seed and startup companies.

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www.cincinnatichildrens.org/innovation

LEADING,INNOVAT ING & COLLABORATINGto improve child health, here and around the world.

John McIlwraith Allos VenturesChairman

Falon Donohue Executive Director

Mark KvammeDrive CapitalVice Chairman

Daniel T. FlemmingRiver Cities Capital Funds

Ed HartmanMillstream Angel Club

Susan LuriaRMG, Inc.

Will IndestDraper Triangle Ventures

Stephen R. HaynesGlengary LLCPresident

Rich LangdaleNCT VenturesVice President

Claiborne R. RankinNorth Coast Angel Fund

Bob SavageCoreNetwork

Tony ShipleyQueen City Angels

Dwight SmithSophisticated Systems

Tom WalkerRev1 Ventures

Bill TrainorMutual Capital Partners

BOARD OF DIRECTORS

Lisa Delp Lorain County Community College

Karl O. ElderkinAthenian Venture Partners

Ohio VentureReport 2014

Charter MembersCalfee Halter & GriswoldKeating Muething & Klekamp PLLOhio Capital FundOhio Venture AssociationRiver Cities Capital Funds

FundsAllos VenturesArsenal Venture PartnersAthenian Venture PartnersBlue Chip PartnersCintrifuseDetroit Venture PartnersDraper Triangle VenturesDrive CapitalDrummond Road CapitalGlengary LLCHopen Life Science VenturesLinkAge VenturesMercury FundMutual Capital PartnersNCT VenturesSigma Prime Ventures

Angels CoreNetworkMillstream Angel ClubNorth Coast Angel FundOhio TechAngel FundQueen City Angels

Incubators/AcceleratorsBioEnterpriseBioMotiv, LLCHamilton County Business Center, Inc.NorTechThe BranderyThe Incubator at MAGNET

Entrepreneurial Signature ProgramsAccelerant Dayton

CincyTechJumpStart IncRocket VenturesRev1 VenturesTechGROWTH Ohio

CompaniesAssureRx HealthCleveland HeartLabCoverMyMedsDocHaloJuventas Therapeutics, Inc.Market6Neuros Medical, Inc.NineSigmaOnShift, Inc.

Service ProvidersBricker & Eckler LLPBritton GallagherErnst & YoungFay Sharpe LLPHicks Partners, LLCJones DayMcDonald HopkinsThompson HineUlmer & BerneVorys, Sater, Seymour and Pease LLP

CorporationsKey Bank

Institutions/MunicipalitiesAEP OhioCincinnati Children’s Hospital Medical CenterCity of MasonCleveland Clinic InnovationsFifth Third BankInteract for HealthKey BankLorain County Community College FoundationOhio University

The Ohio State University UC Research InstituteUniversity of Akron Research FoundationUniversity of CincinnatiUniversity Hospitals of ClevelandUniversity of Toledo

IndividualsMark ButterworthCarol ClarkLisa DelpLauren D’SouzaLora D’SouzaBob FisherJohn HustonLiz HustonZachary LawrenceParker MacDonellJohn Rice, PhDBarry RosenbaumJacqueline SamuelRick SellersGordon SchorrDwight SmithRenee SmithAdam Winter

MEMBER DIRECTORY

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Each year the VentureReport highlights promising companies from around that state to give readers a sense of the caliber of companies being started and grown because of the support in Ohio.

EVERYTHING BUT THE HOUSE: Online Estate Sale MarketplaceFounded: 2008Ohio Employees: 150Capital Raised: $43 millionInvestors: Greycroft Partners, Spark Capital, Greenspring AssociatesEverything But the House (EBTH) provides an online platform for estate sales around the world. By combining high-touch customer service with the reach and convenience of an e-commerce site, EBTH helps people unlock the true value of their belongings. EBTH handles every aspect of the process for its clients, from photography and cataloging to payment and delivery, then posts the sale for collectors and buyers from all around the world to discover. The company recently announced $30M in Series B funding to launch additional territories, optimize its user experience, and expand its team. EBTH was founded by two Cincinnati natives, Jacquie Denny and Brian Graves, and tripled in size in its first two years. In 2014, a new leadership team including Andy Nielsen as CEO, Jon Nielsen as CSO, and Michael Reynolds as CFO, all from Ohio, joined EBTH to lead its nationwide expansion. Due to the company’s rapid growth and exceptional reputation, EBTH is a standout in the Ohio tech community. In 2011, the company had fewer than 20 employees working in the Ohio area. Now, EBTH employs more than 300 people across the country and continues to expand into new markets. “EBTH’s innovative business model is an incredible tool for movers, downsizers, and buyers alike,” CEO Andy Nielsen said. “Together, we have created a destination for discovering vintage items and everyday necessities, while also helping sellers maximize the value of their unwanted items.”

VOX MOBILE: Complete Enterprise MobilityFounded: 2006Ohio Employees: 111Capital Raised: $11.7 million Investors: Edison Partners, Mutual Capital Partners, Permal Capital ManagementFounded in 2006, Cleveland-based Vox Mobile helps businesses achieve complete enterprise mobility, addressing every aspect of mobile device planning, management and support. The advancement of mobile devices has forever changed the way that businesses communicate over enterprise networks. For companies that issue mobile devices to employees, the task of managing them may strain existing IT departments.Vox provides a wide range of services and software to help businesses manage mobile devices. Vox Architect, the company’s strategic consulting service, helps companies understand, build and execute their mobility blueprint. Another division, Vox Choice, allows companies to embrace bring-your-own-device programs without suffering from the pitfalls of complexity. Vox Deploy orders and configures devices, while Vox Assist troubleshoots issues from support offices located throughout North America. Finally, Vox admin provides mobile security and server setup, while Vox Control optimizes expense management and training.Today, Vox Mobile manages 250,000 connections and 950 servers. More than 600 clients around the world in industries as diverse as banking, healthcare and manufacturing trust their mobile devices to Vox. voxmobile.com

COMPANIES TO WATCH

COURSECHARTING THEIR

CLEVELAND HEARTLAB: Know Your RiskFounded: 2009Ohio Employees: 120Capital Raised: $30 millionInvestors: Glengary LLC, Second Generation, Zapis Capital Group, Bratenahl Capital Partners, Merck, Cleveland Clinic Innovations, Excel Venture Management, HealthCare Ventures, Frantz Medical Ventures, Mutual Capital Partners and Individual InvestorsCleveland HeartLab (CHL), a Cleveland Clinic spinout, has created over 100 jobs in the metro-Cleveland area. While everyone realizes that excessive cholesterol can lead to a heart attack, many are unaware that half of all heart attack patients have normal cholesterol levels. This indicates that cholesterol alone does not reveal a complete cardiovascular disease risk profile. CHL addresses this issue by testing for multiple biomarkers, many discovered by local medical researchers and indicate risk factors such as arterial inflammation. After traveling the country in search for technologies to grow his company, CHL President and CEO Jake Orville was astonished by the resources he found in Cleveland. “The combination of the technology I saw being developed and the opportunity for new company development was just as good, if not better, than what I had seen on both coasts,” said Orville. Cleveland’s 1600-acre HealthTech Corridor is home to world-class healthcare and higher education institutions, several business incubators, and over 130 biomedical and other technology companies. Orville realized that this unique blend of resources make Cleveland the perfect place to create a medical biotechnology company.CHL has received the prestigious Nortech Innovation Award, the Ohio Venture of the Year Award, and the Edison Crystal Award for Excellence. It was also named an Inc. 5000 company in recognition of its innovation and growth. In a 2015 Journal of Medical Economics study, CHL’s CVD management protocol demonstrated the potential to avoid nearly 4,000 heart attacks and strokes per 1 million patients, saving an estimated $187 million.

DOMEDIA: Streamlined Media Buying MarketplaceFounded: 2007Ohio Employees: 12Capital Raised: $12 millionInvestors: NCT Ventures and Individual Angel Investors Based in Columbus, Ohio, DOmedia provides a marketplace platform for media buying and selling. Starting in the Out-of-Home (OOH) sector, DOmedia has automated the planning, buying, and contracting process, helping agencies and brands to buy media more efficiently. DOmedia has a large and growing customer base that includes hundreds of media selling companies and media agencies. The company is now the leading technology for OOH media buying, and it plans to extend geographically and into new media formats. DOmedia has 12 full time employees, with satellite offices in New York and Chicago.Founded in 2007, DOmedia is led by industry veteran Ken Sahlin. Columbus-based venture capital firm NCT Ventures supplied the capital to launch and grow the business, as well as office space for the DOmedia team, and continues to be actively involved in the company’s growth. DOmedia has signed several notable ad agencies as customers, including the world’s largest media buyer, Starcom Mediavest Group. domedia.com

“IN SPITE OF A LACK OF CAPITAL IN THE REGION, DOMEDIA HAS BEEN ABLE

TO MAKE MAJOR STRIDES TOWARDS TRANSFORMING ITS INDUSTRY AND

AGGRESSIVELY GROWING TOP LINE REVENUE YEAR AFTER YEAR.

BUILDING A MARKETPLACE TAKES A LONG TIME. NOW THAT THE COMPANY HAS

REACHED A TIPPING POINT, REVENUE IS POURING IN AND THEY ARE GETTING

LOTS OF INTEREST FROM BOTH CUSTOMERS AND INVESTORS.”

Rich Langdale, NCT Ventures

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AIRWAY THERAPEUTICS: Helping Preterm Babies Breathe EasierFounded: 2011Ohio Employees: 5Capital Raised: $5.1 millionInvestors: Cincinnati Children’s Hospital Medical Center, CincyTech, Queen City AngelsAirway Therapeutics, a spinout of the Cincinnati Children’s Hospital Medical Center, has developed a protein therapy to treat Bronchopulmonary Dysplasia (BPD), a lung condition that afflicts extremely premature babies and can lead to asthma, pneumonia, stunted lung growth, and neurodevelopment problems. The protein, recombinant human surfactant protein D (rhSP-D, dubbed AT-100), is a normal component in human surfactant and is critical for normal lung function, but is missing from commercially available surfactants. AT-100 is a one-two punch to BPD because it not only stabilizes the lungs but strengthens the infant’s immune system. Airway Therapeutics was formed to commercialize the recombinant protein, which is the result of ten years of research by Dr. Jeffrey Whitsett, MD at Cincinnati Children’s Hospital Medical Center (CCHMC). Dr. Marc Salzberg, with over 20 years of academic and pharmaceutical experience in the management of drug development and clinical research, leads Airway as CEO. In June 2014, Airway Therapeutics announced that the FDA had approved AT-100 for orphan status. Orphan status, while important for attracting investors and strategic partners, also provides tax incentives to cut development costs and grants seven years of market exclusivity. CincyTech, joined by CCHMC, Queen City Angels, and private investors led a $4.6 million funding round in September. While the company’s initial target market is premature infants, AT-100 shows potential for other applications including asthma, COPD, and cystic fibrosis. airwaytherapeutics.com

AHALOGY: The Marketer’s Solution for PinterestFounded: 2012Ohio Employees: 56Capital Raised: $14.96 millionInvestors: CincyTech, North Coast Angel Fund, Vine Street Ventures, The Brandery, Drummond Road Capital, Hyde Park Angels, Hyde Park Venture Partners, Origin VenturesAhalogy, based out of Cincinnati, provides Pinterest marketing solutions for brands and content creators. Despite brands’ increased focus on social media marketing, many marketers still struggle to create compelling content on Pinterest. Ahalogy helps brands to determine their most relevant content and optimize audience engagement while continuously analyzing performance. Startup accelerator The Brandery brought the company to Cincinnati. Seed capital investor CincyTech provided the company’s 2013 series A funding, together with North Coast Angel Fund (Cleveland) and Vine Street Ventures (Cincinnati), who joined Drummond Road Capital (Cleveland) and Chicago-based Hyde Park Venture Partners in a Series A2 round. In April 2014, Analogy was named an unofficial Pinterest Marketing Development Partner, gaining access to Pinterest API to further enhance its unique marketing and technology solution. “Ahalogy is a great example of the kind of company you can build in the consumer marketing hub of Cincinnati,” CincyTech managing director Mike Venerable said in an interview with the Cincinnati Business Courier. “It’s a forward-thinking company, a big data company, led by a strong founding team.”

AVER: Fixing the Healthcare Payment ModelFounded: 2010Ohio Employees: 60+ Capital Raised: $11+ MillionDrive Capital, GE Ventures and various angelsAver, a Columbus, Ohio healthcare technology company, has created a sustainable solution to save America billions and fix the healthcare payment model. Aver’s innovative software automatically transforms the healthcare industry’s antiquated and costly “fee-for-service” systems into bundled services and treatments, helping to bring honesty and simplicity to healthcare billing.Amassing the most sophisticated healthcare payers and providers, Aver runs the largest bundled payment programs across the U.S. Funded by Drive Capital and GE Ventures, Aver was selected to be part of StartUp Health’s exclusive entrepreneur program. In recognition of Aver’s innovation, Gartner also named the company one of its “Cool Vendors for Healthcare Payers” in 2014. Drawing from wildly diverse backgrounds—philosophy, neuropsychology, healthcare, auditing, IT, and tech—the company’s team is collection of creative Midwesterners dedicated to making positive change in the healthcare payment system. Aver relocated to Columbus, Ohio to access more direct flights and capitalize on the city’s customer base, cost of living, talent pool, and choice of living arrangements. In the past year alone, the Aver team has grown by more than 400%.

RECENT EXITS: GOING WITH THE FLOWOver the past year, the following angel and venture-backed Ohio companies achieved highly successful exits, with an aggregate value well over $1 billion. These successes are examples of the enormous potential of Ohio’s increasingly vibrant entrepreneurial ecosystem, and a result of the investment activity that has occurred over the last 10 years. The combination of talented leadership and risk capital at these companies created high paying Ohio jobs and delivered attractive returns to their investors and employee shareholders.

RECENT NOTABLE EXITS

AKEBIA THERAPEUTICS (CINCINNATI) INITIAL PUBLIC OFFERING (MARCH 2014)

CARDIOINSIGHT (CLEVELAND) SOLD TO MEDTRONIC (JUNE 2015)

DOTLOOP (CINCINNATI) SOLD TO ZILLOW (JULY 2015)

EXPLORYS (CLEVELAND) SOLD TO IBM (APRIL 2015)

SIMBIONIX (CLEVELAND) SOLD TO 3D SYSTEMS CORPORATION (JULY 2014)

TOA TECHNOLOGIES (CLEVELAND) SOLD TO ORACLE (JULY 2014)

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David J. Willbrand513.352.6646David.Willbrand@ThompsonHine.com

Thompson Hine LLP | www.ThompsonHine.com

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