Elevate Ventures Inc

ELEVATE VENTURES IS A VENTURE DEVELOPMENT ORGANIZATION FOCUSED ON BUILDING SUSTAINABLE INNOVATION AND ENTREPRENEURSHIP CULTURES IN REGIONS THROUGHOUT INDIANA, AND FOSTERING AND DEVELOPING HIGH-POTENTIAL, HIGH-GROWTH BUSINESSES FOR INVESTMENT AND RETURNS FOR OUR STAKEHOLDERS.

ELEVATE VENTURES WAS FOUNDED IN 2011 TO ASSIST THE INDIANA ECONOMIC DEVELOPMENT CORPORATION (IEDC) MANAGE A PORTFOLIO OF DIRECT CAPITAL INVESTMENTS IN HIGH-GROWTH INDIANA COMPANIES AND MAKE CAPITAL MORE ACCESSIBLE TO INDIANA ENTREPRENEURS. THROUGH A SUBSIDIARY PARTNERSHIP WITH THE INDIANA ECONOMIC DEVELOPMENT CORPORATION (IEDC), ELEVATE MANAGES BOTH DIRECT AND INDIRECT INVESTMENT FUNDS. THE SEPARATELY REPORTABLE PARTNERSHIP HOLDS THE INVESTMENT CAPITAL AND PORTFOLIO INCOME/EXPENSE AND REPORTS EARNINGS VIA THE IRS FORM 1065 U.S. RETURN OF PARTNERSHIP INCOME. ELEVATE RECEIVES STATE FUNDING FROM THE INDIANA ECONOMIC DEVELOPMENT CORPORATION (IEDC) TO MANAGE THESE INVESTMENT FUNDS THROUGH A PROFESSIONAL SERVICES AGREEMENT AND A MANAGEMENT FEE ARRANGEMENT FOR THE VARIOUS FUNDS. OVER THE LAST DECADE, THE TEAM AT ELEVATE VENTURES WORKED ALONGSIDE PARTNERS STATEWIDE TO BOOST INDIANA'S INNOVATION AND ENTREPRENEURIAL SUCCESS THROUGHOUT OUR STATE. SUCCESSFUL STARTUPS ARE KEY TO OUR ECONOMIC FUTURES-AND INNOVATION IS WHAT WILL MOVE OUR STATE FORWARD. INDIANA STARTUP FOUNDERS, SUPPORTED BY INVESTORS, WORK TIRELESSLY TO MAKE THEIR BUSINESSES SUCCESSFUL AND ARE A TESTAMENT TO THE INNOVATION CULTURE THAT IS TAKING HOLD HERE. THIS WORK, COUPLED WITH THE EFFORTS OF INDIANA'S GUBERNATORIAL LEADERSHIP, LEGISLATORS AND STATEWIDE ENTREPRENEURIAL PARTNERS, HAS BEEN INSTRUMENTAL IN INDIANA'S MOMENTUM. WHILE WE HAVE MADE REMARKABLE PROGRESS, INDIANA STILL HAS A LONG WAY TO GO IF WE TRULY ASPIRE TO BE ONE OF THE TOP STATES IN THE COUNTRY THAT THROUGH INNOVATION AND ENTREPRENEURISM CREATE SUCCESSFUL COMPANIES, INVESTORS AND COMMUNITIES OF VISION AND BOLDNESS. THIS IS A GLOBAL RACE, A NEW WORLD, AND A CHANCE FOR US TO TAKE THIS MOMENTUM FURTHER AND ACCELERATE OUR PROGRESS AGGRESSIVELY. IN 2021, ELEVATE WAS RANKED THE #1 MOST ACTIVE VC IN THE GREAT LAKES REGION FOR THE FIFTH YEAR IN A ROW BY PITCHBOOK. CB INSIGHTS NAMED ELEVATE THE MOST ACTIVE VC BY UNIQUE TECH INVESTMENT IN INDIANA AS WELL. ELEVATE VENTURES INVESTMENT PROGRAMS INCLUDE FUND-OF-FUND INVESTMENTS, DIRECT INVESTMENTS, GRANTS AND GRANT-MATCHING PROGRAMS. SINCE INCEPTION IN 2011, ELEVATE VENTURES HAS INVESTED $130.2M IN 457 STARTUPS WHICH HAS BEEN LEVERAGED AGAINST $1.25B IN PRIVATE CO-INVESTMENT FROM 2,116 CO-INVESTORS. THE DIRECT INVESTMENT PROGRAMS INVEST IN HIGH-GROWTH INDIANA STARTUPS. THE 21 FUND (21F) INVESTS IN EARLY-STAGE COMPANIES, GENERALLY AT OR NEAR THE SERIES A STAGE. IN 2021, 21F DOLLARS WERE USED IN 10 TRANSACTIONS TOTALING $7M IN INVESTED CAPITAL. THE ANGEL FUND IANF2 IS USED TO INVEST IN SEED-STAGE COMPANIES. IN 2021, $4.2M ACROSS 23 TRANSACTIONS WAS USED FROM THE IANF2 FUND. THE COMMUNITY IDEATION FUND (CIF) INVESTS IN COMPANIES AT THE IDEATION STAGE. CIF INVESTED $320K IN 16 TRANSACTIONS. THE SMART AND ADVANCED MANUFACTURING/MANUFACTURING EXPANSION FUND (SAM/MEF) IS USED TO INVEST IN COMPANIES INNOVATING WITHIN THE MANUFACTURING INDUSTRY. IN 2021, SAM/MEF INVESTED $1.05M ACROSS 3 TRANSACTIONS. IN ADDITION, ELEVATE LAUNCHED THE CARESOURCE DIVERSITY AND SOCIAL IMPACT FUND TOTALING $2.5M. IN 2021, 1 TRANSACTION WAS COMPLETED TOTALING $200K. IN 2021, THE STATE OF INDIANA APPROVED THE EXPANSION OF THE GRANT-MATCHING SBIR/STTR PROGRAM TO INCLUDE PHASE II. ELEVATE MAINTAINED MANAGEMENT OF BOTH THE PHASE I PROGRAM, AND THE PHASE II PROGRAM. COMBINED, BOTH PROGRAMS RESULTED IN $1.57M BEING GRANT/INVESTED THROUGH 33 TRANSACTIONS. ELEVATE VENTURES PORTFOLIO COMPANIES GENERATED 2,622 JOBS WITH AN AVERAGE SALARY OF $86K TOTALING AN ANNUAL PAYROLL OF $225M. THIS ANNUAL SALARY IS DOUBLE THE MEDIAN HOUSEHOLD INCOME OF INDIANA RESIDENTS. NOTE: REVENUE INCLUDES A PROPORTIONAL SHARE OF THE GAINS AND LOSSES ON 21 FUND INVESTMENTS HELD IN THE PARTNERSHIP. EXPENSES DO NOT INCLUDE THE SEPARATELY REPORTABLE INVESTMENTS.

ELEVATE'S REGIONAL PARTNERSHIPS ARE KEY COLLABORATIONS THAT NURTURE ENTREPRENEURSHIP CULTURES AND INNOVATION WITH A NETWORK OF LEADERS AND INDIVIDUALS DEDICATED TO ECONOMIC GROWTH. PARTNERSHIPS OPERATE ON A 3-YEAR COMMITMENT WITH FUNDS RAISED (PLEDGED AS RESTRICTED CONTRIBUTIONS) AT THE START OF THE 3-YEAR TERM. IN ADDITION TO THE FUNDS RAISED FOR EACH PARTNERSHIP, ELEVATE PROVIDES AN ENTREPRENEUR-IN-RESIDENCE TO SERVE THE PARTNERSHIP REGION WHICH IS FUNDED BY ELEVATE'S OPERATING FUNDS AND NOT DONOR DOLLARS, THUS RESULTING IN THE NET LOSS SHOWN FOR THE PROGRAM. IN 2021, THERE WERE FIVE PARTNERSHIP REGIONS OPERATING ON THREE-YEAR AGREEMENTS. FOUR OF THE FIVE THREE-YEAR AGREEMENTS WERE RENEWED IN 2020 AND ONE SET TO RENEW IN 2022. THE PARTNERSHIP REGIONS INCLUDE STARTUP SOUTH BEND-ELKHART, ELEVATE NORTHEAST INDIANA, VELOCITIES, ELEVATE SOUTHWEST INDIANA, AND 1804, WHICH WAS REBRANDED TO ELEVATE SOUTHEAST INDIANA. IN TOTAL, 25 COUNTIES ARE PART OF PARTNERSHIP REGIONS. BELOW ARE SOME KEY TAKEAWAYS FROM FOUR OF THE FIVE PARTNERSHIPS IN 2021. ELEVATE NORTHEAST INDIANA COVERS 11 COUNTIES IN NORTHEAST INDIANA. IN 2021, NORTHEAST INDIANA WAS AWARDED "2020 REGION OF THE YEAR", HIGHLIGHTING THE WORK OF THE RENEWED PARTNERSHIP LED BY CHAIR DR. MICHAEL MIRRO, MD OF PARKVIEW HEALTH SYSTEM. INVESTMENTS IN THE REGION INCLUDED SEVERAL NEW COMPANIES TO ACHIEVE $11.6 MILLION IN COMBINED DIRECT INVESTMENT AND CO-INVESTMENT (SINCE JANUARY 2020) IN COMPANIES SUCH AS XILLUM, INC., A BUSINESS INTELLIGENCE SOFTWARE COMPANY SERVING THE RADIOLOGY PRACTICE INDUSTRY; RAZOR MEDICAL INSTRUMENTS, INC., A MEDICAL DEVICE COMPANY FOCUSED ON IMPROVING ORTHOPEDIC SURGERIES; AND STRE.ME INC., A SOFTWARE COMPANY FOCUSED ON DIVERSITY, EQUITY AND INCLUSION ACCOUNTABILITY AND AWARENESS. ELEVATE NORTHEAST INDIANA CONTINUED TO DELIVER TRAINING AND EVENTS IN THE REGION DESPITE THE SECOND YEAR OF THE PANDEMIC, HOSTING FOUR EVENTS IN 2021 WITH 100 ATTENDEES AND ATTENDING NUMEROUS OTHER VIRTUAL EVENTS. ELEVATE SOUTHWEST INDIANA COVERS SIX COUNTIES. ELEVATE CLOSED ON ONE TRANSACTION TOTALING $20K. AN ADDITIONAL $515K WAS LEVERAGED AS A RESULT OF PAST INVESTMENTS MADE IN THE REGION. SIX EVENTS WERE EXECUTED THROUGHOUT THE YEAR WITH PARTICIPATION FROM OVER 170 PEOPLE. COMPANIES THAT RECEIVED INVESTMENT FROM ELEVATE'S DIRECT INVESTMENT FUNDS EMPLOY A TOTAL OF 68 PEOPLE, HAVE A COMBINED AVERAGE SALARY OF $70K AND HAVE AN ESTIMATED TOTAL ANNUAL PAYROLL OF $4.7M. STARTUP SOUTH BEND-ELKHART COVERS THREE COUNTIES. NICHOLAS KUHN WAS HIRED IN JUNE 2020 AS ENTREPRENEUR-IN-RESIDENCE; HE COACHED VARIOUS ENTREPRENEURS THROUGHOUT THE REGION AND EXECUTED SEVERAL EVENTS WHICH RESULTED IN DIRECT CONNECTIONS AND INTRODUCTIONS. HE WORKED ALONGSIDE THE ELEVATE INVESTMENT TEAM TO LAUNCH THE LEIGHTON ELEVATE ANGEL DEVELOPMENT FUND IN PARTNERSHIP WITH THE LEIGHTON FOUNDATION. THIS FUND DEPLOYED $575K THROUGH FIVE INVESTMENTS IN THE FIRST YEAR. IN ADDITION, ELEVATE VENTURES CLOSED ON 34 TRANSACTIONS IN THE SOUTH BEND-ELKHART REGION; INVESTING A TOTAL OF $3.1M. COMPANIES THAT RECEIVED INVESTMENT FROM ELEVATE'S DIRECT INVESTMENT FUNDS EMPLOY A TOTAL OF 139 PEOPLE, HAVE A COMBINED AVERAGE SALARY OF $85.8K AND HAVE AN ESTIMATED TOTAL ANNUAL PAYROLL OF $11.9M. ELEVATE WAS ABLE TO EXECUTE 10 EVENTS, A COMBINATION OF IN-PERSON AND VIRTUAL, WITH PARTICIPATION FROM OVER 193 PEOPLE. VELOCITIES COVERS THREE COUNTIES: BARTHOLOMEW, BROWN, AND MONROE. IN 2021, VELOCITIES WON THE 2021 REGION OF THE YEAR AWARD. WITH THE ASSISTANCE OF A REGIONALLY SUPPLIED STARTUP ECOSYSTEM MANAGER, ELEVATE VENTURES ENTREPRENEUR-IN-RESIDENCE, CY MEGNIN, WAS DIRECTLY RESPONSIBLE FOR WELL OVER 100 SPEAKING/TEACHING ENGAGEMENTS, 450+ ONE-ON-ONE MEETINGS WITH COMPANIES, AND HEARING NEARLY 650 COMPANY PITCHES. IN 2021, ELEVATE MADE 18 INVESTMENTS TOTALING $1.1M IN COMPANIES IN THE VELOCITIES REGION - INCLUDING FOLIA, WHICH WON THE 2021 STARTUP OF THE YEAR AWARD. IN 2021, MEGNIN AND ELEVATE HOSTED 10 EVENTS WITH OVER 230 PEOPLE IN ATTENDANCE.

THE ELEVATE NEXUS PROGRAM IS THE "NEXUS" OF FIVE MAIN INITIATIVES FOCUSED ON INDIANA HIGHER EDUCATION INSTITUTIONS AND THE COMMUNITIES THEY SERVE. INITIATIVES INCLUDE: 1. ELEVATE ORIGINS: FOUNDATIONAL ENTREPRENEURSHIP TRAINING FOR EARLY-STAGE STARTUPS AND GROWTH MINDED INDIVIDUALS 2. NEXUS PITCH COMPETITION: LIVE PITCH COMPETITIONS THAT RESULT IN EQUITY INVESTMENTS 3. NEXUS PITCH COMPETITION MATCHING GRANTS: GRANTS THAT GO TO ORGANIZATIONS SUPPORTING THE WINNERS OF THE NEXUS PITCH COMPETITION THAT ARE EQUAL TO 10% OF THE AWARDS. 4. NEXUS ANNUAL CONFERENCE: AN ANNUAL CONFERENCE THAT BRINGS TOGETHER FACULTY, DEPARTMENT HEADS, AND OTHER ENTREPRENEURIAL SUPPORT ORGANIZATIONS FROM ACROSS INDIANA TO EXPLORE NEW AND LEADING WAYS HIGHER-EDUCATION INSTITUTIONS CAN ENGAGE ENTREPRENEURS AS WELL AS SHARE BEST PRACTICES, RESOURCES, AND ENTREPRENEURIAL-FOCUSED INITIATIVES. 5. HIGHER EDUCATION GRANTS: CENTERED AROUND FACULTY AND DEPARTMENT HEADS WORKING TO DEVELOP ENTREPRENEURSHIP PROGRAMMING ON THEIR CAMPUS BY PROVIDING $50K GRANTS FOR THE DEVELOPMENT AND IMPROVEMENT OF ENTREPRENEURSHIP IN 2021, THE ELEVATE ORIGINS PROGRAM SAW AROUND 400 PARTICIPANTS FROM ACROSS THE STATE. PARTICIPANTS INCLUDED INDIVIDUALS THAT FOUND THE PROGRAM ONLINE DUE TO OUR MARKETING STRATEGIES OR VIA A PARTNERSHIP ORGANIZATION. PARTICIPANTS ALSO INCLUDED STUDENTS THAT WERE ENROLLED IN ENTREPRENEURSHIP, INNOVATION, OR BUSINESS COURSES AT AN INDIANA HIGHER ED IN WHICH THE ORIGINS CURRICULUM WAS USED. IN 2021, $1.64M WERE INVESTED IN EARLY-STAGE INDIANA STARTUPS VIA THE NEXUS PITCH COMPETITION VIA TWO REGIONAL COMPETITIONS THAT CULMINATE IN ONE STATEWIDE COMPETITION PER YEAR. EACH REGIONAL COMPETITION IS COMPRISED OF THREE REGIONS - NORTHERN, CENTRAL, & SOUTHERN - AND TWO LEVELS - PRE-SEED AND SEED. 18 $20K, 3 $40K, 12 $80K, AND 2 $100K INVESTMENTS WERE MADE VIA THE NEXUS PITCH COMPETITION IN 2021. IN 2021, A TOTAL OF $164,000 IN NEXUS PITCH COMPETITION MATCHING GRANTS WERE AWARDED TO ORGANIZATIONS SUPPORTING THE WINNERS OF THE REGIONAL AND STATE COMPETITIONS. IN 2021, THE NEXUS ANNUAL CONFERENCE HOSTED OVER 100 PEOPLE INCLUDING STATE GOVERNMENT OFFICIALS, REPRESENTATIVES FROM OVER 15 INDIANA HIGHER ED INSTITUTIONS, AND CONTENT EXPERTS FROM ACROSS THE COUNTRY. IN 2021, $200K IN HIGHER EDUCATION GRANTS WERE AWARDED TO THE FOLLOWING ORGANIZATIONS: 1. BALL STATE UNIVERSITY ($50K): DEVELOP AN ELECTIVE CROSS-DISCIPLINARY COURSE CONNECTING COMPUTER SCIENCE AND ENTREPRENEURSHIP & INNOVATION MAJORS, ENABLING STUDENT-LED VENTURES TO MOVE FROM IDEATION INTO PROTOTYPING AND END USER-TESTING. 2. INDIANA TECH ($50K): EXPAND ENTREPRENEURIAL PROGRAMS AND INITIATIVES THROUGH THE CENTER FOR CREATIVE COLLABORATION (C3), A MULTIDISCIPLINARY ENTREPRENEURSHIP CENTER WITH FOCUS ON CONNECTING BUSINESS CLIENTS WITH THE UNIVERSITY. 3. INDIANA UNIVERSITY SCHOOL OF MEDICINE ($50K): LAUNCH A WEB-BASED INNOVATION PLATFORM TO EVALUATE STUDENT AND CLINICIAN BUSINESS IDEAS. 4. UNIVERSITY OF EVANSVILLE ($50K): CREATE MAKERSPACE, A THREE-PRONGED ENTREPRENEURIAL PROGRAM PROVIDING ACCESS TO INNOVATION FOR K-16 STUDENTS.