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
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Our appreciation
to Zeeland Print for
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... for your generous
sponsorship in 2014
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