as a PDF - JumpStart Entrepreneurial Network

Greater Cleveland
Venture Capital
Overview
2007-2011
In the last 5 years, Northeast Ohio tech-based companies
have raised nearly $1 billion from 134 equity investors
based around the country and the globe.
Regional Investment activity Increases
Between 2007-2011, 226 Greater Cleveland companies collectively attracted $961 million—a 133% increase in deals and
a 26% increase in dollars for the region when compared to the previous five years (2002-2006).
2007-2011
Over the last five years, Northeast Ohio startups raised capital from 134
equity investors; 67% of these investors were based outside of Ohio.
During that same timeframe, 16 regional venture-backed companies
exited, in deals worth a total of $2.6 billion. Return-generating exits
2002-2006
include the acquisition of Edgepark Medical Supplies for $850
million (2010) and the acquisition of Solon-based MemberHealth Inc.
for $630 million (2007). In addition, there were 21 other exits whose
amounts were undisclosed.
Clients of the region’s eight
NUMBER OF DEALS
Entrepreneurial Signature Program
DOLLARS INVESTED
incubators and accelerators represent
203
$
761M
472
$961M
[133% INCREASE]
[26% INCREASE]
71% (162) of the companies successfully
attracting VC and angel capital and 51% ($506 million) of the equity dollars raised in Northeast Ohio in the last five years.
The Ohio Third Frontier and the Ohio Capital Fund continue to provide capital and other support critical
to increasing private investment and accelerating the growth of early stage tech companies in the Ohio.
Total Equity Investments by stage
86
2007-2011
(dollars in millions)
$
seed
479
$
early
growth
158seed
Number of companies
Dollars Invested
Average Deal Size:
396
$
91early
$
0.34 million seed, $2.84 million early and $7.92 million growth
31
growth
Equity Investments by sector*
Cleantech
Healthcare
Environmental
$9
Energy
$79
Business & Consumer
Products & Services
Advanced Specialty
Materials & Chemicals
$55
65(7 )
$
Biopharmaceuticals
$79
143
(15 )
Medical Devices &
Equipment
32
35
Medical Devices &
Equipment
$243
(16%)
Healthcare Services,
Healthcare IT & Other
$265
39
83
(37 )
(17%)
%
166(17 )
Biopharmaceuticals
12
Healthcare Services,
Healthcare IT & Other
39
Business & Consumer
Products & Services
%
$
2007-2011
(dollars in millions)
68
$
%
587
$
Information Technology
& software
Environmental
3
(61 )
%
Energy
14
Advanced
Specialty Materials
& Chemicals
22
%
(30%)
Information
Technology
& software
Dollars Invested
Number of companies
* graphs do not include one (1) $25,000 Agriculture investment
Noteworthy Deals
Healthcare
Information Technology & Software
In 2011 Cleveland Heart Lab completed an $18.4 million financing round led by
In 2010 Financial Transaction Services secured a $50 million growth equity
Boston-based firms, Excel Venture Management and HealthCare Ventures. The Cleveland
investment from the private equity firm FTV Capital. The Highland Hills based
Clinic spin-out offers proprietary diagnostic tests that assess cardiovascular disease
company offers a comprehensive suite of electronic transaction processing services
risk using molecular biomarkers. The Series B round was designed to help the clinical
for merchants, independent sales organizations (ISOs) and financial institutions. The
laboratory and disease management company expand its menu of tests and more
financing was used to support expansion through increased sales and acquisitions.
aggressively evaluate and in-license new biomarkers. clevelandheartlab.com
ftservice.com
Business & Consumer Products & Services
Cleantech
In 2008, Beachwood headquartered Embrace pet insurance, an insurance
In 2011, Produced Water Absorbents Inc. in Wooster raised $11 million to accelerate
program manager that designs, sells, and manages flexible policies for cats and
commercial development of oilfield water treatment solutions using a swellable, molecularly-
dogs, raised $2.1 million from NCT Ventures in Columbus, Ohio. Since recieving this
modified glass technology developed by its parent company, ABSMaterials. Produced
institutional investment, the award-winning consumer-focused online company has
Water Absorbents’ produced and flowback water treatment solutions improve resource
raised additional capital, exceeded projected policy sales and quadrupled its staff.
recovery and environmental protections of drilling and mining operations. The financing was
embracepetinsurance.com
led by Energy Ventures, an investment fund focused on upstream oil and gas technologies
and joined by Harris and Harris Group and a limited special purpose partnership group
comprised of Ohio-based angel investors. pwabsorbents.com
First-time Northeast Ohio
investors (in 2011) are in color.
* Received investment from
The Ohio Capital Fund
134 equity investors in northeast ohio companies
23 Bell Innovations
East Central Ohio
Tech Angel Fund
Big Game Capital
Blue Chip Venture
Company
Everett Partners Ltd
Bridge Investment
Fund*
Case Technology
Ventures
Evergreen Ventures
Ltd.
Evolution Capital
Partners.
Fairmount
Investments LLC
CID Capital
Cleveland Clinic
Innovations
Glengary LLC*
Hatch Partners
Direction Aviation
Capital
JumpStart Inc.
Early Stage Partners*
Kadima Partners
Key Capital
Corporation
Primus Capital Funds*
Queen City Angels*
Mutual Capital
Partners
Reservoir Venture
Partners*
NCT Ventures*
Resilience Capital
NDI Healthcare
Fund
River Cities Capital
Funds
North Coast Angel
Fund
RiverVest Ventures*
Roulston Investment
Partners
4C Ventures
Aisling Capital
Second Generation LTD
Amphion Innovations
Shaker
LaunchHouse
Cowen Healthcare
Royalty Partners
Sunbridge Partners*
Draper Triangle
Ventures*
Supply Chain Equity
Partners
Ohio TechAngel Fund
RMS Investment
Corporation
Triathlon Medical
Ventures
Portal Capital LLC
Rocket Ventures
Parker Hannifin
Corporation
RockWood Equity
Partners
Tri-State Growth
Capital Fund II
Foundation
Medical Partners
Greatbatch
Greycroft Partners LLC
Zapis Capital Group LLC
Harris & Harris Group
Investor Growth
Capital
OHIO
Northeast
Cardinal Venture
Capital
Charter Life Sciences*
Chevron Technology
Ventures
Draper Associates
DW Healthcare
Partners
WEST
Life Sciences Capital
LSKW Investments
Midsummer Capital
MWV Financial Inc.
New Enterprise
Associates
Oak Investment
Partners
FTV Capital
OrbiMed Advisors
Intel Capital
RLS Investments, Inc.
JDA Investments, LLC
StarVest Partners
Kearny Venture
Partners
Thomas, McNerney&
Partners
Microsoft Corporation
Toucan Capital Corp.
Morgenthaler
Ventures
Boston
Palo Alto Investors
Ampersand Ventures
Panorama Capital
MIDWEST
Quercus Trust
Roberts
Communications
Network
Sutter Hill Ventures
Ulupono Initiative
Vivo Ventures
Apex Ventures
Hopen Therapeutics
Arboretum Ventures*
Hopewell Ventures
Biomet
Lightbank LLC
BlueCrest Capital
Finance LP
Medtronic
Capital Midwest
Fund
Wind Energy, Inc.
Entrepreneur’s Fund
LLC
Z2 Capital
Hawthorn Group
Rockwell Automation
Southwest Michigan
First Life Science
Fund
Sunrise Operations
Symark LLC
Outside the US
Boston Scientific
Corporation
SOUTH
Capital Resource Partners
Abakan Inc.
Frontier Capital
Advantage Capital
Partners
Kentucky Science
and Technology
Corporation
Anderson Growth
Partners
Austin Ventures
Chrysalis Ventures*
Cordova Ventures
Dresser-Rand
Energy Ventures
MATW Investments LLC
Maverick Capital
Funds
Excel Venture
Management
Fidelity Biosciences
Fletcher Spaght Ventures*
Healthcare Ventures LLC
mTerra Ventures LLC
MB Venture Partners
Polaris Ventures
Orix Capital
SV Life Sciences
Santé Ventures
Venzyme Venture Catalyst
ExOxEmis
Aberne Limited
DVx Inc.
Bally Energy Ltd.
MA Solar
Castlerigg Master
Investments
Siemens Venture Capital
DSM Venturing
The Venture Capital Advisory Task Force
The Task Force is comprised of Greater Cleveland investors dedicated to continually increasing
regional entrepreneurial investment and success. To learn more about investment opportunities in
bioenterprise.com
jumpstartinc.org
Northeast Ohio, contact Lynn-Ann Gries, JumpStart Chief Investment Officer, at 216.363.3400 or
@BioECorp
@JumpStartInc
lynn-ann.gries@jumpstartinc.org.
For previous years reports go to: jumpstartinc.org/results/reports