Grand Angels_2014 Annual Report_FINAL
Transcription
Grand Angels_2014 Annual Report_FINAL
GRAND ANGELS 2014 annual report ® 01 Grand Angels 2014 Annual Report GRAND ANGELS mission GRAND ANGELS is committed to using its financial, intellectual, and networking capital to foster the success of emerging companies and to enhance the economic development of Michigan. Grand Angels makes investments that positively affect our region through business growth, job creation, and the attraction and retention of local talent. We collaborate with engaged, experienced business leaders to provide capital, expertise and guidance to deserving entrepreneurs. GRAND ANGELS 3 6 W 8 T H S T R E E T, S U I T E 2 0 0 HOLLAND, MI 49423 (616) 566-1770 [email protected] W W W. G R A N D A N G E L S . O R G GRAND ANGELS IS A REGISTERED TRADEMARK OF GA HOLDING CO., LLC Grand Angels 2014 Annual Report TABLE of CONTENTS .03 .04 .05 LETTER to SPONSORS 2014 2014 PORTFOLIO MEMBERS & FRIENDS INVESTMENTS C O M PA N Y P R O F I L E S 2015 G OAL S .13 Q U I C K FA C T S .15 EVENT HIGHLIGHTS .16 .18 B O A R D of T H A N K Y O U to DIRECTORS OUR SP ONSORS 02 03 Grand Angels 2014 Annual Report Dea r S P ONS O R S , M E M B E R S , and FR I E NDS : 2014 was our best year ever. On behalf of the entire Last year as throughout the decade, we’ve been you for your tremendous support throughout the year. from many of our sponsors. This continuity helps ensure Board of Directors, Rich and I want to thank all of Grand Angels achieved all of our annual investment and participation goals and marked our first decade with unprecedented success. Since closing our first deal in 2004, Grand Angels has invested $16.2M in 32 companies across 77 rounds. Last year our numbers exceeded both our annual goals and all previous years’ pace. We invested $2.5M in 12 deals, passing our goal of $2.3M in 10 deals and I’m proud to say all of our deals were syndicated. Last year we worked with a combination of 14 Angel Groups and VC partners as well as a host of individual angels. By June, we invested in four deals; one new company and three follow-on rounds. fortunate to benefit from long-term, consistent support Grand Angels’ sustainability as well as attract new sponsors, such as Spectrum Health Innovations who joined us in 2014. We’ve also received strong, steady leadership from our Board of Directors, particularly last year. The Board noted Co-Investment Fund successes, listened carefully to members and positioned Grand Angels to expand, diversify, and consistently vet deals more deeply prior to group consideration. Paul D’Amato, Chris Gutek and I will be leading this due diligence effort. Grand Angels will also be broadening our deal sourcing efforts and re-evaluating how we look for deals as part of our growth and diversification goals for 2015. During the second half of the year we added eight more from two deals in 2014 and we see strong indications that Software and IT; Advanced Manufacturing and Advanced deals; three new and five follow-on. Grand Angels exited several of our portfolio companies could turn successful exits in 2015 or 2016. Grand Angels also exceeded our membership and participation goals. We totaled 50 members in 2014, The Board and members also embraced a decision to focus 2015 investments in Life Science; Digital Media, Materials; and Advanced Technologies in Agriculture and Food. We believe these strategies support Grand Angels mission and our commitment to Michigan’s entrepreneurial talent. topping our 2012 and 2013 rosters. I’m particularly pleased Several younger members came onboard, which bodes well among our 2014 successes. Finally, Rich and I want to to report we welcomed two more women to our ranks. for Grand Angels’ future. Deal sourcing and deal flow also remained strong and balanced. Members brought seven potential deals to the group and nearly 75% of our members participated in due diligence. Before closing, I want to acknowledge my assistant, Deb Deters, whose addition to Grand Angels I count express a heartfelt thank you to our members, sponsors, and portfolio companies for their support last year and for their genuine enthusiasm for 2015. We wish you all an exciting and prosperous year ahead , RICHARD M. LIEVENSE Chairman JODY D. VANDERWEL President Grand Angels 2014 Annual Report 2014 2015 2015 INVESTED IN 12 DEALS IN 2014 INVEST $1.5M + FUND II 45 MEMBERS INVEST IN 10 DEALS 7 5 % AT T E N D A N C E S Y N D I C AT E 6 D E A L S 60% DUE DILIGENCE investments investments goals S TA R T E D 2 0 1 5 B Y CLOSING ON 2 TO 3 NEW DEALS AV E R A G E $ 1 . 4 8 M I N ANNUAL INVESTMENTS OVER 11 YEARS 04 participation goals 10 POTENTIAL DEALS SOURCED H AV E I N V E S T E D $16,230,868.02 FROM INCEPTION THROUGH 2014 2014 PORTFOLIO COMPANIES 05 Grand Angels 2014 Annual Report 2014 Portfolio Companies Before presenting our portfolio companies, I’d like to share some background about Grand Angels Co-Investment Fund. We launched the Fund four years ago with three goals in mind: 1) investment diversity for our members; 2) more available capital to fill out rounds; and 3) an opportunity to include passive investors. By the end of 2014, we had deployed close to 95% of the Co-Investment Fund on our way to hitting all three goals. Our accomplishment—achieved through active deal sourcing, cautious due diligence, and meaningful mentoring — paid off. In 2014, four of our portfolio companies received substantial private, follow-on funding. This is an unprecedented 12-month performance for our portfolio and, even better, the beginning of several partnerships with exciting exit potential. Thank you to our members who serve as mentors, board members, and observers to our portfolio companies. Abl ati ve Sol uti o n s, In c. Grand Angels closed a bridge round on November 1, 2013 that converted into a Series B round in 2014 led by BioStar Ventures and the Michigan Accelerator Fund. The company is now closing its very successful B round with a capital raise of approximately $16 million, which is approximately $3 million more than the initial target. . Ablative Solutions, Inc. (ASI) was founded by brothers Tim A. Fischell, M.D. and David R. Fischell, Ph.D., who are serial inventor-entrepreneurs. Ablative Solutions has developed and patented a novel drug infusion catheter that is being used to perform “chemical” sympathetic renal nerve denervation (“Renal Denervation”) to deliver precise micro-dosing of a neurolytic agent, such as ethanol alcohol, to the sympathetic nerves that lie just outside the renal (kidney) artery wall. The company believes that this is a next generation device with potential to supplant current radio-frequency “burning” denervation catheters. In addition to treating hypertension, this therapy may prove useful for the management of metabolic syndrome, congestive heart failure, and atrial fibrillation. Ablative has hit a number of substantial clinical and regulatory milestones in 2014. They received FDA 510K clearance for the Peregrine System™ Infusion Catheter, two key patents for the proprietary system, and FDA and ISO certification for commercial manufacturing. The first in-man trial has been completed, with the safe, successful, and encouraging treatment of 18 patients. The company has launched the CE Mark clinical trial, seeking approval for commercialization in Europe in 2015 and anticipates launching the pivotal U.S FDA trial by end of year. Tim A. Fischell, M.D. as CEO, has led many of the scientific efforts and fundraising, and Vartan Ghazarossian, Ph.D., a successful serial biomedical entrepreneur, leads development efforts as President. Drs. Paul Sobotka, and Michael Weber, two highprofile clinicians and hypertension experts, joined their advisory board. Accio Energy Grand Angels invested in Accio Energy in 2014 in a Series C Preferred round led by Resonant Fund I, LP. Accio Energy developed a novel and disruptive approach to traditional, turbine-generated offshore wind power. Aerovoltaic wind power is turbine-free, relying on an array of wind permeable panels to create positively charged droplets of seawater that extract wind energy based on the principle of electrical charge separation. Wind separates the charged droplets, allowing the harvested electrons to be delivered quietly and ecologically as a high-voltage direct current. Accio has hit significant technological industry milestones and acquired 7 patents. They caught the eye of the energy industry and attracted early funding from the National Science Foundation (NSF), Defense Advanced Research Projects Agency (DARPA), the State of Michigan Public Service Commission, and the National Center for Manufacturing Sciences. Accio Energy is headquartered in Ann Arbor and was founded in 2008. Grand Angels 2014 Annual Report 2014 Portfolio Companies Advanced Architectural Products Grand Angels made its first investment in A2P this year as part of a $4M raise led by Byker Associates. Advanced Architectural Products, LLC (A2P), based in Allegan, Michigan, is commercializing its SMARTci™ engineered continuous insulation system. SMARTci™ is a patented system that works with various types of substrates, cladding, and insulations. By using lowconductive materials, SMARTci™ eliminates thermal bridges to deliver exceptional thermal performance and cost savings. SMARTci™ is a green technology that helps buildings meet and exceed key building energy code requirements. of distribution. Upon acquisition, Altus’ management teams works with existing owners to develop plans to increase capitalization, integrate products and processes, and leverage established distribution channels, production, and administration. Altus’ management team includes Gary Lemanski, a West Point graduate with 30 years’ experience in consumer products; Charles Ricci, a graduate of Providence College who brought 30+ years sales and marketing experience and Brian Breneman, a CPA with expertise in all phases of business financing, turnaround, and restructuring deals across multiple industries. inside the chips. The company has shipped over 1 million real-time clock (RTC) ICs, based on its SPOT technology. The company’s growth in 2014 included adding semiconductor industry expert Mike Noonen to their board of directors and appointing London-based Redtree Solutions as their European representative. Altus Brands, LLC Grand Angels invested in Altus Brands in 2012 as a co-investment with Northern Michigan Angels. In June 2014, Grand Angels participated in a D Preferred Convertible Round led by Northern Michigan Angels. Since its 2008 founding, Altus Brands has acquired twelve small to mid-size companies in the hunting, shooting, and outdoor markets, including their 2014 purchase of the app iHUNT CALLS. Altus Brands continues their core strategy of identifying and acquiring companies in their target recreation marketplace that manufacture and sell retail products through similar channels Ambiq Micro, Inc. In June 2013, Grand Angels closed a bridge round alongside several co-investors that converted in September 2013 to a $10M Series B round. This year Grand Angels participated in a $15.6M Series C round led by Kleiner Perkins Caufield & Byers (KPCB) and supported by existing investors, Austin Ventures, Mercury Fund, and ARM Holdings. Grand Angels’ original co-investment was in 2012 with Huron River Ventures and Mercury Fund. Ambiq Micro was founded on the simple yet powerful notion that extremely low power semiconductors are the key to the future of electronics. Their pioneering ultra-low energy technology facilitates the development of smaller, portable, differentiated solutions that reduce or eliminate the need for batteries, and lowers overall system power. Ambiq Micro’s patented Subthreshold Power Optimized Technology (SPOT™) platform dramatically reduces the energy that integrated circuits (ICs) consume by reducing the voltage level at which switching occurs In 2014 Ambiq introduced Apollo, the world’s lowest energy ARM M4 based microcontroller (MCU). Apollo is targeted at Internet of Things (IoT) applications, such as wearable electronic devices, where energy savings will translate into much longer battery life. 06 07 Grand Angels 2014 Annual Report 2014 Portfolio Companies Armune BioScience, Inc. Grand Angels invested in Armune BioScience in 2010. In 2014, Armune made its first close of a $2.5M Series A follow-on round. Grand Angels did not participate. Based in Kalamazoo, Michigan, Armune BioScience is a medical diagnostics company formed to develop and commercialize unique proprietary technology exclusively licensed from the University of Michigan for diagnostic and prognostic tests for prostate, lung, and breast cancers. The company is close to launching Apifiny™, its innovative, non-PSA blood test to aid in the early detection of prostate cancer. The technology will also be used for development of diagnostic and prognostic tests designed to aid early detection of lung and breast cancer. Several management changes occurred at the end of 2014 and early January 2015, including the appointment of a new President and CEO, David Esposito; new Chief Financial Officer, Susan Crookston; and transition of founder Eli Thomssen from President and CEO to Chief Business Officer. 500 corporations, foreign governments, global financial institutions, and a national broadcast company. They also signed a technology IP transfer agreement with VMware which provides a foundation for a new Cloud Management product line. Blue Medora was included in EMC’s product catalog via a reseller agreement (EMC is the #1 storage vendor in the space); more than doubled its number of resellers; and opened negotiations of several strategic reseller agreements with top tier IT vendors. Motility Issues that is also covered by multiple major insurance carriers. filled through normal pharmacy channels. On some plans the Conception Kit is classified as a preventative, which qualifies the patient’s expense as reimbursable prior to the patient reaching their medical spend threshold. Blue Medora LLC Grand Angels invested in Blue Medora in December 2012 along with Start Garden. In late 2014, Grand Angels began negotiating an $850,000 bridge round into a multimillion dollar Series A round. Start Garden and Clarks Fork LLC are co-investors. Based in Grand Rapids, Michigan, Blue Medora develops and delivers software that allows large companies to monitor and manage their enterprise, mission-critical software and hardware systems. The explosive growth of cloud computing drove the company’s notable success in 2014. Blue Medora expanded IBM royalties, increased their employees from 13 to 23, and grew their sales pipeline to include many Fortune Since its 2012 seed round, led by Grand Angels, the company delivered 45% revenue growth in 2013, 50% revenue growth in 2014, and is targeting 60% organic growth for 2015. Conceivex, Inc. Grand Angels invested in Conceivex, Inc. in 2007 with a follow-on round in 2010. Based in Saranac, Michigan, Conceivex Inc. is a reproductive healthcare company. Its product, the Conception Kit, has FDA clearance and CE (European Community) approval. It is the only product approved by the FDA for Low Sperm Count and Sperm In 2014, the kit became available in Maryland; Conceivex began calling on doctors in Maryland in early January 2015 and reported prescriptions have been Creative Byline, Inc./QMinr Grand Angels invested in Creative Byline in 2007 with a follow-on round in 2012. Start Garden participated in the 2012 round. CreativeByline, founded and based in Holland, Michigan set out to connect authors with publishers via its proprietary online database. In 2012, the company pivoted from that model to launch a new software product called QMinr. The new platform utilizes a wide range of available data to help publishing professionals make the best possible decisions. The software is functioning in private beta status at www.QMinr.com. Grand Angels 2014 Annual Report 2014 Portfolio Companies Grand River Aseptic Manufacturing, Inc. Grand Angels first invested in GRAM in 2010, followed with a Series B round in 2012 and bridge rounds in November 2013 and April 2014. GRAM is a co-investment with Pearl Street Ventures of Indianapolis, Indiana, and Charter Capital Partners. Grand River Aseptic Manufacturing (GRAM) based in Grand Rapids, Michigan, specializes in pre-clinical Phase 1 and Phase 2 trials and production of small- to medium-scale commercial quantities of injectable medications. Evolved from a joint venture with Van Andel Research Institute and Grand Valley State University, GRAM was formed in 2010 and in 2013 received FDA clearance for production of parenteral drug products. GRAM met even more business milestones in 2014 when they received a $9.8M capital infusion, led by Michigan public pension fund, Municipal Employees’ Retirement System (MERS), and supported by other Michiganand Indiana-based investors. The investment allowed GRAM to open an additional 28,000 sq. ft. facility in Grand Rapids to house the company’s finishing operations, inspection services, storage, and a substantially larger laboratory. In Q4, GRAM fully executed two commercial production contracts the same day; one with a medium sized publicly held pharmaceutical company, and the other with a multi-billion dollar biopharmaceutical company. exactly where to go to arrange for additional resources, raise or manage an issue, track servicelevel agreements, or compare performance across multiple providers. The wealth of data collected by Janeeva Assurance can also be mined to identify trends and to process bottlenecks and best practices. Janeeva, Inc. Grand Angels invested in Janeeva in July of 2007, partnering with Plymouth Venture Partners. Headquartered in Ann Arbor, Michigan, Janeeva pioneered on-demand “software as a service” (SaaS) tools that enable Outsourcing Relationship Management (ORM) across the extended enterprise. The Janeeva Assurance family of products provides a one-stop shop for governance activities of outsourced operations. With Janeeva Assurance, governance groups, providers, and internal customers know The transparency that can be achieved with Janeeva Assurance and the institutional memory it creates increases efficiency of interactions, promotes trust, and minimizes missed opportunities. With a customer-tested software platform, Janeeva is looking to expand the different markets where its software can add value. By extending its solution beyond outsourcing, Janeeva will be able to achieve further success. Local Orbit, LLC Grand Angels invested in Local Orbit in November 2013 along with Start Garden and Muskegon Angels. Local Orbit is the supply chain platform for people who are creating a new, connected food economy. Local Orbit enables institutions and restaurants to efficiently purchase from local farmers, food makers, and aggregators, while maintaining complete supply chain transparency. Online marketplaces powered by Local Orbit are active in 16 states and Canada. Local Orbit recently launched LocalEyes™, a vendor management service that helps foodservice operators streamline and simplify local purchasing from multiple producers and aggregators, while providing supply chain insight, producer transparency, and product traceability. By enabling efficient, decentralized supply chains, Local Orbit saves money for foodservice buyers while increasing market share for small and mid-size food producers. Beta customers include a large urban public school district with an annual food procurement budget of $22M and a San Francisco-based technology company that serves 20,000 meals per week to employees. 08 09 Grand Angels 2014 Annual Report 2014 Portfolio Companies ProNAi Therapeutics, Inc. Grand Angels first invested in ProNAi in 2005 with follow-on rounds in 2006, 2008, 2010, 2011, 2012, and 2014. ProNAi Therapeutics is a private company dedicated to developing and commercializing a new class of therapies based on its proprietary DNAi platform for patients with cancer and hematological diseases. ProNAi’s lead DNAi drug PNT2258 is specifically designed to treat cancers that overexpress BCL2. To date, 35 patients have been treated with PNT2258 in a Phase I and a pilot Phase II trial, both of which reported compelling efficacy and safety results. In 2014, Grand Angels participated in a $59.9M Series D round led by Vivo Capital of Palo Alto, California that included other significant new investors: Frazier Healthcare Ventures, OrbiMed Advisors, Adams Street Partners, RA Capital Management, Caxton Alternative Management, Hopen Life Science Ventures, Sectoral Asset Management, and Janus Capital Management, LLC. Following this, the Company has significantly strengthened its senior management team, which is now led by Dr. Nick Glover, President and Chief Executive Officer. Salamander offers both iOS and Android apps to help private sector markets comply with National Incident Management System (NIMS) and Personal Identity Verification (PIV ) mandates. Recently, the company received two acquisition offers, one from Tyco Scott Safety and the other from its major equity holder, TruSec ID. The Minneapolisbased group invested $1M in Salamander Technologies in 2013 for 80% equity. testing and instrumentation markets led to the development and sale of the current torque telemetry system. While proven in numerous automotive applications, there remains a large potential such as commercial and off-highway vehicles. Applications in oil and gas, and wind turbines are also being explored. TECAT Performance Systems is based in Ann Arbor, Michigan, with sales representatives in 16 states, including the entire Midwest, western Pennsylvania and western New York. Salamander Technologies, Inc. Grand Angels invested in Salamander in 2004 with follow-on rounds in 2007, 2008, and 2009. Salamander Technologies of Traverse City, Michigan named and framed the niche market of Intelligent Accountability. Their patented solutions for tagging, tracking, and reporting on first responders, volunteers, and civilian victims provide unparalleled situational awareness for responders and emergency managers. TECAT Performance Systems Byker Associates brought TECAT Performance Systems to Grand Angels in 2014. We invested in the company’s first raise totaling $2M. TECAT Performance Systems makes the smallest, lightest, most power efficient wireless sensors available. These features enable the measurement of torque, acceleration, and atmospheric data in places never before accessed. Company founder Dr. Douglas Baker developed the telemetry systems to measure torque on rotating shafts. Demand from the Grand Angels 2014 Annual Report 2014 Portfolio Companies Tetra Discovery Partners, LLC In 2014, Grand Angels led a follow-on co-investment with Muskegon Angels, LLC, Invest Michigan, and the Johnson & Johnson Development Corporation. Our first round, July 2013, included The West Michigan Biosciences Research and Commercialization Center, Ann Arbor SPARK, and a number of individual angels. Based in Grand Rapids, Michigan, Tetra Discovery Partners LLC, a drug discovery company developing a portfolio of innovative drugs for psychiatric, neurological, and inflammatory diseases, is a leader in the chemical design of inhibitors of phosphodiesterase (PDE) enzymes. subtypes. The company is collaborating with the Broad Institute’s Stanley Center for Psychiatric Research in Cambridge, MA to test the potential of Tetra’s drug candidates for improving cognition in the Stanley Center’s proprietary genetic models relating to schizophrenia. Tetra uses a structure-guided drug design chemistry approach to discover mechanistically novel, allosteric inhibitors of phosphodiesterase 4 (PDE4) Tetra has benefited from strong, ongoing grant support through the NIH Blueprint Neurotherapeutics Network (BPN), the National Institute of Aging, and the National Institute of Mental Health. With this and other private funding, the company expects to initiate human clinical trials in 2015 for its first product in either Alzheimer’s disease or schizophrenia. Tolera Therapeutics, Inc. Grand Angels invested in Tolera Therapeutics in 2011, followed with a second round and bridge in 2012 and with a 2013 bridge round. Based in Kalamazoo, Michigan, Tolera is a biotechnology company developing transformational therapies for autoimmune disease. In 2014, the company underwent a leadership change spurring rigorous situational analysis and strategic planning. Tolera opted to transition to a virtual organization and refocus core activities, developing a pipeline of proprietary second generation therapeutics for autoimmune disease, building on its proprietary T-cell targeting platform and to enter into earlystage collaborations and license out TOL101 exclusively for use in Graft versus Host Disease applications. V.I.O. Inc. Grand Angels invested in V.I.O. in 2007, in a round led by Bridge Street Capital. V.I.O. launched in 2000 as a provider of advanced highdefinition video solutions for commercial, industrial, and government applications that required superior camera control. A few years later, the company contributed its assets to a joint venture based in Minneapolis, MN in an effort to commercialize their products. While V.I.O.’s product line expanded under the new joint venture, it ultimately failed to gain any market momentum. The company is now considering various exit strategies. Tolera began collaborating with the Jackson Laboratory ( JAX), a world leading, independent nonprofit dedicated to discovering precise genomic solutions to disease. Concurrently, they partnered with Professors Dale Greiner and Michael Brehm, experts in humanized mouse models for medical research at the Diabetes Center of Excellence, University of Massachusetts. 10 11 Grand Angels 2014 Annual Report 2014 Portfolio Companies Varsity News Network, LLC Grand Angels led investments in VNN in 2012 and 2013, which included Ann Arbor SPARK, Lakeshore Advantage Seed Capital Fund LLC, Start Garden, and other individual angels. Grand Angels participated in a follow-on round in February 2014 led by Arsenal Ventures and North Coast Technologies. VNN is connecting the $675B K-12 market through an athletics & activities platform that facilitates school/ community communication. Led by a team who previously built a $250M, market-leading K-12 fundraising company, VNN is now the leading Official Athletic Platform in the country, with over 3% of all high schools participating. In 2014, VNN grew revenue at pace; expanded its network to 900 schools in 34 states, with the Midwest and SouthCentral regions leading the ranks; expanded from 9 to 48 sales reps; and launched new products, including iOS and Android apps, and new versions of Pressbox and Alert features that after just 45 days brought in more users than the previous, 2-year old version. Vestaron Corporation Grand Angels made bridge round investments in Vestaron in January and June of 2014; a Series C Preferred round led by Cultivation Sandbox Food and Agriculture Fund II, LP followed in August. The original investment was in 2011 with Open Prairie Ventures leading that round. Pangaea Ventures and Michigan Accelerator Fund also invested. In 2014 Vestaron, based in Kalamazoo, Michigan, received regulatory approval for its active ingredient which renewed attention from investors. This regulatory milestone drives continued product development and commercialization of their insecticide. The natural compound, derived from spider venom, safely controls pests and nullifies the resistance that pests have acquired to traditional, chemical based pesticides. Vestaron is targeting 2015 for the commercialization of its first biopesticide, a spray-on pesticide targeted at beetles and caterpillars in high value vegetable and greenhouse crops. Attention from private funds focusing on sustainable science brought Vestaron $14M and promising exit partners. Zipments Corp Grand Angels invested in a first round in October 2014 with coinvestors Huron River Ventures, Start Garden, Muskegon Angels, and Chicago Ventures. Seed capital was provided by First Mark Capital. Responding to the speed of e-commerce, Zipments provides a mobile-based application for on-demand local delivery. The company builds on talent and experience of its cofounders Garrick Pohl, Elliot Nelson, and Travis Brack, who together developed several award winning fleet management applications, including the first mobile app for FedEx. They’ve positioned Zipments to be the next successful non-asset start up, currently offering service in NYC, Washington DC, Chicago, and San Francisco. The company’s growth comes largely from the fact that it is helping to fuel the “on-demand economy” as many ecommerce companies now leverage Zipments to provide fast, flexible delivery service to their customers. The Zipments platform enables thousands of “couriers” to obtain part-time and full-time income opportunities through an opt-in labor model. This means Zipments couriers can earn attractive income when they want and where they want, as they serve businesses and consumers in their local communities. Grand Angels 2014 Annual Report GRAND ANGELS STATISTICS HOW WE COMPARE 2004-2014 Average $ invested per company Average $ per round Average $ per year Rounds per year Investors per round New deals Follow-on rounds Total invested (2004-2014) (Note: through 77 rounds) $507,214.62 $ 2 1 0 , 7 9 0 . 4 9 $ 1 . 4 8 M 6.4 7.8 45% 55% $16,230,868.02 NATIONAL ANGEL STATISTICS Q1Q2 2014 Average $ invested per deal Average investors per deal Average proposals presented Average successful deals Average new deals Average follow-on rounds (Source: Center for Venture Research) $332,120.00 4 - 5 9 2 50% 5 0 % Membership Summary: 75% of Grand Angels individually invested in at least one deal in 2014. 100% of those who have been members for more than one year have invested in at least one deal. 72% of members assisted in mentoring, board services, or due diligence for at least one deal in 2014 . 12 13 Grand Angels QUICK FACTS 2014 Annual Report INDUSTRY SECTORS INVESTED IN BY GRAND ANGELS 2004-2014 INDUS TRIE S 3% 3% 3% BIOTE CHNOLOGY Accu r i Cy tomet er s A r mu n e B ioS c i en c e Con ce ive x Grand Rapids Aseptic Mfg. In ce p t B ioS y st em s ProNA i T h e r a p eu t i c s Te tr a D is co ver y Pa r t n er s Tol e r a T h e r a peu t i c s Tr a n s Cor p S pi n e, I n c . Ve s ta ron Cor p o r a t i on S OFTWA RE B l u e M e d or a Cre a tive B y l i n e Janeeva K a b on go L oc a l O r b it M oc k D r a f t C en t r a l S a l a m a n d e r Tec h n o l o gi es Va r s it y Ne w s Net wo rk Z ipm e n ts , Co r p 3% 6% 31 % 200 4 - 2 0 1 4 INVES TM E N TS B Y IN D U S TRY 2 8% COMPA NIE S 10% 13% OTHE R INDUS TRIA L & E NE RGY HE A LTHCA RE & ME DICA L TE LE COM BUSINE S S P RODUCTS S E RV ICE SEM I CO NDUCTORS & NE TWORK ING ELE CTRONICS & COMP UTE R Ad v a n ce d A rc h i t ec t u r a l Pro d u c A l tu s B r a n d s G re e n D a is y P l u m s ton e, In c . Accio E n e r g y s RF Id e n tics T E CAT Pe r f o r m a n c e S y st em s A b l a tive S ol u t i on s In f or m M e d A z u l S ta r, In c . S im p l e D in e Am b iq M icro V. I. O. In c. Grand Angels 2014 Annual Report QUICK FACTS 35% 2014 I N V E S T M E N T S O N LY NEW IN V E S TM E N TS 14 5% 5% 2014 IN V E S T ME N T S B Y IN D U S T RY FOLLOW -ON ROUN DS 10% 10% 35% 12 63 19 ts application summary ACTIVE DEALS $2.5 MILLION INVESTED A P P L I C AT I O N S RECEIVED COMPANIES PRESENTED TO GRAND ANGELS Ablative Solutions, Accio Energy, AdAdapted, Altus Brands, Advanced Architectural Products, Benefit Mobile, Fusion Coolant Systems, Gemphire Therapeutics, Grand River Aseptic Manufacturing, Larky, Modustri, Playsafe, Plymouth Venture Partners, Respond Well, SurClean, TECAT Performance Systems, Tetra Discovery Partners, Tolera, Zipments 15 Grand Angels 2014 Annual Report HIGHLIGHTS of GRAND ANGELS EVENTS In keeping with our mission to promote regional development, engage business leaders, and mentor entrepreneurship, Grand Angels continued our semi-annual tradition of inviting members, portfolio companies, and sponsors to meet and mingle. We appreciate opportunities to foster the relationships that make Grand Angels and Michigan strong and to publically thank our sponsors for their generous support. We especially want to thank Northern Trust and Hylant for hosting our May 7, 2014 gathering; The Bank of Holland and GR Current for sponsoring our September 24, 2014 dinner. This year we introduced Portfolio Company interviews — to much success. Prepared questions, moderated by Grand Angels leadership, provided investors and non-investors alike a high-level view of the company’s success, business model, management teams, and even exit strategies. The engaging format initiated unexpected dialogue among our guests and provided a nice break from PowerPoint presentations. Thank you to our emcees and companies for participating and interjecting a little humor into our evenings. SPRING EVENT | MAY 7, 2014 | KENT COUNTRY CLUB FA LL E V E NT | S E P T 7 , 2 0 1 4 | K E NT COU N T RY C L U B Graciously sponsored by Northern Trust and Hylant Generously sponsored by The Bank of Holland and GR Current Grand Angels welcomed 119 members, sponsors, portfolio companies, and guests to our 10th Annual Spring Reception and Dinner. We were pleased so many of our investing partners and portfolio company management teams were in attendance to share their business and entrepreneurial expertise. 105 members, sponsors, guests, and portfolio companies joined us to celebrate entrepreneurship and Grand Angels’ continued growth. As in May, leadership from several portfolio companies and co-investors joined us to share their knowledge and to thank our wonderful sponsors for their ongoing support. Before closing the presentation portion of our evening, Paul D’Amato discussed Grand Angels investing goals and strategies for 2015 and beyond. I n t e r v i e w P a n e l : Board member John Jackoboice emceed keynote interviews with Matt Krause of Architectural Products; Tom Ross, Connie Degen, and Nick Bykerk of Grand Rapids Aseptic Manufacturing; and Erika Block of Local Orbit. I n t e r v i e w P a n e l : Founding member Mike Jandernoa led a discussion with Scott Hanson, CEO of Ambiq Micro and with Mark Gurney, CEO of Tetra Discovery Partners. 2015 Upcoming Events for sponsors, members, guests & portfolio companies MAY 6, 2015 GRAND ANGELS SPRING RECEPTION/DINNER 5:30 – 9:00 P.M. KENT COUNTRY CLUB Details for our new Fall Event will be announced when available. Grand Angels 2014 Annual Report BOARD Paul D’Amato Paul is a successful serial entrepreneur with more than 20 years of business building experience. Paul is currently the Managing Director of Trout Creek Ventures, a regional co-investment venture capital fund focusing on early stage investments. He is an active angel investor with several angel groups in the Midwest. Previously, Paul owned and operated a retail chain in the Midwest that he sold to a strategic acquirer. Paul built the chain through organic growth and a series of acquisitions. He holds a Bachelor of Science in Computer Engineering from the University of Illinois in Urbana-Champaign, and a Masters of Business Administration with an emphasis on M&A and analytical decision modeling from The Kellogg School of Management at Northwestern University in Evanston. Paul serves on the board of directors of Grand Angels, and of Tetra Discovery Partners. Carl B. Erickson Carl is the CEO of Atomic Object, a software design and development company with offices in Grand Rapids, Detroit, and Ann Arbor. Carl’s served as the president of the Swedish American Heritage Society, has served as a board member for Mock Draft Central and Varsity News Network, and currently serves on the board of Blue Medora. He is also a managing director of Tappan Hill Ventures. He is a frequent speaker on technology, and blogs at Great Not Big, and for Crain’s Detroit. of 14 16 DIRECTORS Patrick A. Gaughan Patrick is CFO and partner of Brooks Capital Management and a partner of its affiliate real estate development company, IPA Partners. Patrick also is on the Investment Committee of the Kent Community Health Foundation and serves on the Investment Committee of The Community Foundation of the Holland-Zeeland Area. Patrick has been on the Grand Angel board since its inception. Robert L. Herr Secretary/Treasurer Retired 2014 Bob is a board member of Macatawa Bank Corporation, Thornapple Capital, Inc. (Toronto), and Progressive AE. He is an active community leader serving on numerous non-profit boards including Jandernoa Entrepreneurial Mentoring Program, Advantage Health/ St. Mary’s Physician Network, Blue Cross/ Blue Shield of West Michigan Advisory Board, Western Michigan University Foundation, First Steps Commission, Downtown Alliance, and the Economic Club of Grand Rapids. Bob retired from the Grand Angels Board as of January 2015. We thank him for his many years of leadership and service. John S. Jackoboice Past Chairman John currently serves on the board of FeyenZylstra Company, is Vice Chair of Baker Publishing Company, Co-Chairs the Aquinas College Foundation, and Chairs the Northern Trust - West Michigan Advisory Board. Past board chairmanships include Gilda’s Club, Saint Mary’s Health, and Aquinas College as well as serving on the boards of Hospice of Michigan Foundation, The Family Business Alliance and the Manufacturing Council. John retired in 2007 after 41 years with Monarch Hydraulics (Bucher) of Grand Rapids. 17 Grand Angels 2014 Annual Report BOARD Michael J. Jandernoa Mike is the former Chairman of the Board and CEO of Perrigo Company, the nation’s largest manufacturer and marketer of store brand over-the-counter drug and nutritional products. He serves on the Board of Directors of Perrigo Company, Business Leaders for Michigan, Hopen Life Science Fund, and Metabolic Solutions Development Company. Mike is also a member of several other corporate, religious, and community boards and committees. He is the founder of Jandernoa Entrepreneurial Mentoring, co-founder and Board member of both Grand Angels and Bridge Street Capital Partners, and founder and Chairman of 42 North Partners, a family office focusing on investments, entrepreneurship, and community. R. Lawrence Leigh Vice Chairman Larry serves on the Boards of Goodwill Industries and Goodwill Foundation and is a member of the Jandernoa Entrepreneurial Mentoring Program. He also brings to Grand Angels extensive experience on other community boards. He is the former owner and founder of Leighs. Larry holds a B.S. in Business from the University of North Carolina and an M.B.A. from the University of Michigan. of DIRECTORS continued Richard M. Lievense Chairman Rich is the principal founder of Lake Michigan Financial Corporation (LMFC), established in April 1998. He currently serves as its Chairman. He is also Principal of InSite Capital - a subsidiary of LMFC that develops and finances historically significant buildings in the Midwest. Prior to founding LMFC, Rich was employed by a regional bank in various executive positions. He currently serves on the board of directors of Riverview Development Group and chairs the Holland/Zeeland Community Foundation Oversight Board for the MSU Bio-economy Institute. He is on the investment committee of Grow Michigan - a Michigan based private subordinated debt fund. Rich holds a B.A. from Alma College and an M.A. from Western Michigan University. Robert A. Sprotte Bob is the owner of The Sprotte Organization which is a life insurance agency serving both business & personal markets from an independent perspective. He has been active in this industry since 1976 and in Michigan since 1978. He holds the appropriate designations for this trade including CLU, ChFC & LIC. Bob is currently involved in leading men’s Bible studies and is a former Board member of both Goodwill Industries and Bethany Christian Services. As an active investor in numerous private equity offerings, the Grand Angels opportunity proves a logical fit. Jody D. Vanderwel President Since 2005, Jody has been President of Grand Angels. She oversees Grand Angels’ deal sourcing, investing, and portfolio management, and represents the group at networking and educational events across Michigan. Jody worked several years in private practice before joining Herman Miller as Corporate Counsel and then Vice President for Corporate Giving. She is currently a member of the Michigan Venture Capital Association Board, the Michigan Accelerator Fund I Advisory Board, the Baker Publishing Group Board, and the Fuller Theological Seminary Board. She also chairs the Board of Priority Health. In February Governor Snyder appointed her to a four year term on the Michigan Strategic Fund. Jody holds a B.A. degree from the University of Colorado and a J.D. degree from Washington University in St. Louis. Grand Angels 2014 Annual Report Thank you... A q u i na s C o l l e g e BDO USA, LLP C al v i n C o l l e g e DWH F e rri s S ta te U n i v e rs i ty G ran d Val l e y Sta te U n i v e rs i ty H o pe C o l l e g e L a m be rt, E d w a rd s & A s s o c i ate s L e ga c y Trus t S p e c tru m H e al th I n n o v a ti o ns Our appreciation to Zeeland Print for their professional design and printing services. ... for your generous sponsorship in 2014 18 GRAND ANGELS 3 6 W 8 T H S T R E E T, S U I T E 2 0 0 HOLLAND, MI 49423 (616) 566-1770 [email protected] W W W. G R A N D A N G E L S . O R G ® GRAND ANGELS IS A REGISTERED TRADEMARK OF GA HOLDING CO., LLC