PARTNERSHIPS

MATTER2014 Communit y RepoRt

When JumpStart was launched a decade ago, it was due to the united efforts of Northeast Ohio’s civic,

corporate and philanthropic leaders. Years later, collaboration remains key to the organization’s ability to realize

entrepreneurial potential for the benefit of the economy.

Specifically, JumpStart’s work focuses on partnering to ensure entrepreneurial ventures—those with the greatest

potential to go on to attract outside capital, generate significant revenue and create new jobs—have the resources

they need to form and grow. Sometimes we partner with entrepreneurs directly to help them make progress and

achieve milestones. At other times, we partner with organizations to spark and support entrepreneurial activity.

With each engagement, JumpStart brings important resources to the table, such as early-stage capital, mentoring,

startup talent recruitment assistance, back-office support, subject matter expertise and practical know-how we’ve

gained from our on-the-ground experience. And, in every case, JumpStart hopes to build its partners’ capacity so

they can achieve meaningful results sooner.

We appreciate every founder and funder that’s been part of our work during the last 10 years. Thanks to their

support and guidance, we’ve been able to increase the impact of entrepreneurship in Northeast Ohio and beyond.

To move the needle, partnerships are truly what make a dif ference.

PArTNerShiPS MATTer

William Seelbach | Board Vice Chairray T. Leach | CeOMark Williams | Board Chair

JumpStart’S miSSion: To strengthen the

economic vitality of Northeast Ohio and the U.S.

by helping communities realize their

entrepreneurial potential

STOrieS OF SUCCeSSFUL PArTNerShiPS

PArTNeriNG WiTh eNTrePreNeUrS

Catacel 2

LifeMedix® 4

intelligent Mobile Support 6

QueenAnn inc. 8

PArTNeriNG WiTh COMMUNiTY LeADerS

Burning river Coffee Community 9

North Coast Angel Fund 10

Memphis: Start Co. 12

SUPPOrT & iMPACT

Funding 14

National Visibility 14

Progress 15

Donors & Board 16

Table of Contents

Catacel recently opened a new plant and technology center to ramp up product development and production for its expanding list of global customers—which include companies in the fuel cell, petro-energy and industrial gas industries.

William Whittenberger, Catacel Co-Founder/president | J. Gary mcDaniel, Catacel Ceo | Lee poseidon, JumpStart Senior partner, entrepreneurial Services & investing

Catacel’s novel products reduce the fuel used in a wide range of high-temperature chemical reactions, enabling these energy-intensive reactions to occur much more economically. In the early years, the Ravenna, Ohio-based company’s founders bootstrapped its growth. But when the money ran out and self-financing was no longer an option, Catacel applied to JumpStart, receiving an investment in August 2009.

Capital as a catalyst “We really have never looked back,” says co-founder/president William Whittenberger. “That was the right step; we should have done it years earlier.” The capital came in tandem with strategic assistance and specialized support. As a result, Catacel has grown at a rate of greater than 50 percent in the last few years and the company is on track to do $5 million in sales in 2014.

2 The stories continue at jumpstartinc.org/annualreport

PAr T Ner iNG W i T h eN T r eP r eNeUr S : C ATACeL

“We’ve built a team with our investors. They understand our business and participate in it. It’s all about collaboration and cooperation.” — J. Gary mcDaniel, Catacel Ceo

Catacel recently opened a new plant and technology center to ramp up product development and production for its expanding list of global customers—which include companies in the fuel cell, petro-energy and industrial gas industries.

$29M in capital has been

committed by JumpStart via 113 seed- and

early-stage investments

390 hours, on average,

of technical assistance are provided to companies

new to JumpStart’s portfolio

76 companies have received

a JumpStart investment coupled with high-impact

assistance

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43 mentors have shared

their expertise as part of the Burton D. morgan

mentoring program

43 companies have

received growth-focused guidance through the

program

3,000 hours have been

donated by mentors since the program’s

inception

Dean Banks, mentor; ohio orthopedic Commercialization Center Ceo | Dr. Anup D. Salgia, Lifemedix Founder/Chairman Dan Kellogg, mentor; Crystal Venture Funds managing Director/Co-Founder

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LifeMedix® has developed a portable medical infusion pump that needs no external electrical power source, making it useful for military medics and paramedics working in pre-hospital settings. The medical device company joined the Burton D. Morgan Mentoring Program in March 2012 and started working with a team of experienced entrepreneurs.

For LifeMedix founder/chairman Dr. Anup Salgia, an emergency physician and former U.S. Navy doctor, working with his mentors has been instrumental to his company’s development and contributed to tangible progress. “For starters, they’ve helped boost my confidence,” he says. “But their experience and advice has also enabled me to raise additional funding from private investors. Because I was able to bounce ideas off them for my pitch, I nailed the presentation.”

in october 2013, Lifemedix—the recipient of angel investment and two innovation Fund awards—received its second patent for the StAtfusion™ medical infusion system. the company also attended the 2013 emS World Conference in Las Vegas, and was able to present its technology to north America’s largest distributor of pre-hospital care products.

Mentoring matters to growth

“We mentor because we want to give back.

We want to see Anup be successful. We want to see

LifeMedix be successful. We want to see the region be

successful.” — Dan Kellogg, mentor

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PAr T Ner iNG W i T h eN T r eP r eNeUr S : L i FeMeD i x ®

intelligent mobile Support’s products and services are focused especially on the HVAC, mechanical, electrical and plumbing industries. in early 2014, the Solon-based company introduced Axon, a smartphone/tablet application developed to streamline and strengthen the technical support process.

7, 595 candidates have applied

for positions at early-stage companies

through JumpStart

40-80 open positions are

advertised monthly on JumpStart’s jobs board

13,000+ jobseekers view open

opportunities at entrepreneurial-minded businesses each month

“Unlike trying to work with a conventional recruiter who doesn’t understand your company, JumpStart knew our business model. They’re very attuned to the needs of a startup. It was a very easy way to work. It was a matter of finding the right person who was the right fit.” — John Steidley, intelligent mobile Support Ceo

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John Steidley, intelligent mobile Support Ceo | Fran paez, intelligent mobile Support Vice president of Sales

Intelligent Mobile Support’s cloud-based, mobile-friendly software platform provides service technicians and dealers easier, faster access to technical documents and expert information. The company’s second employee, Fran Paez, came aboard in early 2012 thanks to the recruiting efforts of JumpStart.

Before being hired, Paez met with JumpStart’s in-house talent team and one of its venture partners.

The right employee at the right time

7The stories continue at jumpstartinc.org/annualreport

PAr T Ner iNG W i T h eN T r eP r eNeUr S : iN T eLL iGeN T MOB i Le SUP P Or T

Their deep knowledge about Intelligent Mobile Support’s business model and strategic needs assured the candidate—a former naval flight officer with an MBA and experience in hardware and software sales—he was looking at the right opportunity. “I worked in a billion dollar company as an executive, I’ve worked in a number of mid-stage companies and a couple small ones,” Paez says. “The whole idea in every job I’ve had was about building something new, creating something and going down a new road.”

Former Cleveland Browns player Al “Bubba” Baker has devised a patented way to de-bone baby back ribs. His invention has led to appearances at national and local food shows, articles in magazines and a spot on ABC’s Shark Tank that led to a deal from FUBU founder Daymond John. Before these experiences, JumpStart helped Baker with press releases, media training and tradeshow displays—all so he could compellingly describe his product’s advantages. “Marketing is a story,” he says. “You have to bring that story along with you as you evolve.”

Tackling marketing head-on“I’m lucky that my community has

developed programs for entrepreneurs like me.

I’m blessed to have a lot of people in my corner,

helping us along the way.” —Al “Bubba” Baker,

QueenAnn inc. Founder

466 clients received

15+ hours of technical assistance from

JumpStart

36% of JumpStart-assisted

companies are minority- or women-owned

Al “Bubba” Baker, QueenAnn inc. Founder | Brittani Baker, QueenAnn inc. plant manager

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PAr T Ner iNG W i T h eN T r eP r eNeUr S : Q UeeN ANN iNC .

The Burning River Coffee Community (BRCC) provides peer support for women entrepreneurs “who are really trying to grow their businesses, but don’t know other women facing their same challenges of raising VC or pivoting their company,” says the group’s founder, Laura Bennett. Though sponsored by outside groups such as JumpStart, BRCC is created for and by entrepreneurs: Members dole out advice and mentoring in an open, idea-charged environment.

Entrepreneurs helping each other

“I wish that a group like this was there for me when I was starting out. As an entrepreneur, it’s very satisfying to be able to put together this opportunity—and to see people be successful from it.” — Laura Bennett, Burning River Coffee Community Founder

Karen malone Wright, thenotmom.com Founder | Laura Bennett, Burning River Coffee Community Founder; embrace pet insurance Ceo & Co-Founder Sophie Burkart, SoffiaB Founder

Tackling marketing head-on

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PAr T Ner iNG W i T h C OMMUNi T Y Le ADer S LOC ALLY : BUr N iNG r i V er C OFFee C OMMUNi T Y

todd Federman, north Coast Angel Fund executive Director | Clay Rankin, north Coast Angel Fund manager Barbara morgan, north Coast Angel Fund investment Associate

The North Coast Angel Fund (NCAF) formed in 2006 to provide capital for promising young Northeast Ohio companies in the IT, healthcare, cleantech and other technology sectors. “[Prior to NCAF] there were angels, but it was hard for entrepreneurs to know where to find them,” explains manager Clay Rankin. “JumpStart has been our partner in the capital investment con-tinuum in two unique ways: providing operating assistance and taking some risk out of early-stage investments. With their support—and support

Growing the capital continuum

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from Ohio Third Frontier—we’ve helped to create a more accessible ecosystem for young companies.”

NCAF also created a network with other Ohio angel groups, including Columbus’ TechAngels and Cincinnati’s Queen City Angels. Besides encouraging cross-regional collaboration, this statewidepartnership raised Ohio’s profile. “Ohio was recognized at the national Angel Capital Association level for being a real leader in this kind of collaborative investing activity,” Rankin says.

The stories continue at jumpstartinc.org/annualreport

PAr T Ner iNG W i T h C OMMUNi T Y Le ADer S LOC ALLY : NOr T h C OA S T ANGeL FUND

#6 is north Coast Angel

Fund’s national ranking by membership size

50% of northeast ohio

companies successfully raising capital in 2013

received an angel investment

“We leverage the experience and resources that we have as a group

to make better investment decisions and to help our portfolio

grow by giving companies the full benefit of the expertise

and the rolodexes of our members.” — todd Federman,

north Coast Angel Fund executive Director

Since launching, nCAF has invested $10.2 million directly from its two funds and $17 million in direct sidecar investments from nCAF members. their portfolio includes 35 companies; northeast ohio investments include DecisionDesk, 7signal, Juventas therapeutics, Genomoncology and StreamLink Software.

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John Knific, DecisionDesk Ceo/Co-Founder

15regions outside of

northeast ohio have leveraged JumpStart’s

experience and expertise

“JumpStart brought our experience from Northeast Ohio and regions across the

country to Start Co.’s vision for Memphis. But we also learned from them. It was a very cyclical process. It wasn’t a teacher-student

model; it was a partner model.” —erin Dorsey, JumpStart inc.

9,105 individuals have

engaged in these regional efforts through focus

groups, community gatherings and interviews

Recently, JumpStart and Start Co. announced the creation of memx, a development plan to spur intentionally inclusive,

community-wide entrepreneurial growth and new programs in the memphis market. over 200 memphis partners and community

leaders gave input into the formation of the plan.

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Andre Fowlkes, Start Co. Co-president | eric mathews, Start Co. Founder, Ceo & president

Regional collaboration is a two-way street

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Entrepreneurial leadership in Memphis initially approached JumpStart in 2011, looking to increase the number, growth and impact of high-potential startups in their region. Working with Andre Fowlkes and Eric Mathews of nonprofit venture development organization Start Co., JumpStart evaluated deal f low in the region and developed strategies to help Memphis leverage its growing pool of resources.

The stories continue at jumpstartinc.org/annualreport

PAr T Ner iNG W i T h C OMMUNi T Y Le ADer S N AT iON ALLY : S TAr T C O.

“What started out as JumpStart helping us develop and execute on a regional entrepreneurial accel-eration plan has turned into us building on strengths we’ve seen develop here in Memphis,” says Fowlkes. “Now JumpStart is helping us strategize and get more resources behind us so we can grow.”

Start Co. operates under the mantra “entrepreneur-ship for everyone.” As Mathews says, “We can’t really advance our community without bringing the entire community along.”

S CB insights named JumpStart one of the country’s 30 most active seed investors.

S JumpStart published an article in the quarterly international economic Development Council (ieDC) journal after receiving the organization’s Gold Excellence in Economic Development Award. ieDC also awarded two Silver Excellence in Economic Development Awards to the JumpStart entrepreneurial network, a coordinated group of collaborating seed funds, advisors, educators, incubators and accelerators in northeast ohio.

S JumpStart or its clients were featured on CNBC, Forbes, NYSE, Medium, Huffington Post, VentureBeat, Gizmodo, Blackbox.vc and NPR.

orGaniZationaL Support: SourCES & uSES

USeS OF FUNDS

$83.4M

S Ceo Ray Leach testified before the House of Representatives Subcommittee on Capital Markets and Government Sponsored Enterprises at the hearing “Reducing Barriers to Capital Formation, part ii.”

S JumpStart was part of a case study of northeast ohio’s entrepreneurial ecosystem detailed in a paper released by Babson Global professor Dr. Daniel isenberg, an internationally recognized expert on entrepreneurship, and participated in a Case Western Reserve university massive online open Course supported by Burton D. morgan Foundation titled “Beyond Silicon Valley: Growing Entrepreneurship in Transitioning Economies.”

S JumpStart staff spoke at the national HBCU Innovation Summit and JumpStart helped bring iCiC’s Inner City Capital Connections program to Cleveland.

nationaL ViSiBiLitY

(7.1.2004-6.30.2013)

(2013)

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86%

$13.1Mto accelerate the

entrepreneurial ecosystem in northeast ohio

$6.8Moperations

$5.3Mto partner with

community leaders across the u.S.

$58.2Mto partner with

northeast ohio entrepreneurs,

providing capital and high-impact

assistance

to benefit entrepreneurs and the innovation economy in

Greater Cleveland

SOUrCeS OF FUNDS

$83.4M$38.8M

State of ohio

$5.2MFederal

$2.4Mindividuals & program Fees

$7.4MCorporations

$27.3MFoundations

$2.3Minvestment proceeds

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proGrESS

JumpStart leverages capital, expert assistance, experience and relationships to help realize entrepreneurial potential and strengthen economic vitality. our progress is measured largely by the progress of our partners.

(7.1.2004-6.30.2013) (7.1.2004-12.31.2013 unless otherwise noted)

in cumulative follow-on capital was raised by JumpStart client companies

client companies individually raised $1m+ in outside investment

is the three-year average annual revenue rate of JumpStart clients (2011-2013)

in funding has been raised by partners across the country to support new entrepreneurial efforts

518 new hires and board members have been recruited to northeast ohio startups with JumpStart’s help (1.1.2010-12.31.2013)

jobs have been created and retained by client companies

in economic benefits were generated for ohio by JumpStart and nCAF clients (Cy 2012)

new venture development organizations have been launched with JumpStart’s assistance

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“Cleveland’s technology industry is attracting the kind of money that launches companies.”

—Cleveland Plain Dealer

“We started in 2009 and there were three of us. We have 74 [employees] today.”

—Teri Hembree, Executive Vice President of Operations and Human Relations, JumpStart portfolio company OnShift

“The technology I saw being developed [in Cleveland]… was just as good, if not better, than what I had seen on both coasts.”

— Jake Orville, CEO, Cleveland HeartLab

“JumpStart and its partners have used creative solutions and inventive ideas, offering other regions a wonderful example to learn and benefit from.”

—Paul Krutko, Chair, IEDC

in n

or

thEa

St o

hio

Sin

CE

2004

nat

ion

aLLY

Sin

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2010

$717M

2,821

$99M

$27M+

$270M

100

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DONOr COMMUNiTY

The Abington Foundation

Baker hostetler

Calfee, halter and Griswold

The David and Lindsay Morgenthaler Foundation

Dix & eaton

Dollar Bank

The Dominion Foundation

eaton Charitable Fund

ernst & Young

The ewing Marion Kauffman Foundation

Fifth Third Bank

Ford Foundation

The GAr Foundation

The George W. Codrington Foundation

Geis Companies

huntington Bank

JobsOhio

Jones Day

The Katherine and Lee Chilcote Foundation

The Lincoln electric Foundation

The Nord Family Foundation

A Northeast Ohio Family (Anonymous)

The Parker hannifin Foundation

The raymond John Wean Foundation

Squire Sanders

STeriS

The Summers Family Foundation

Third Federal Foundation

Thompson hine

Ulmer & Berne LLP

The U.S. Small Business Administration

The William J. and Dorothy K. O’Neill Foundation

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OUr NOrTheAST OhiO NeTWOrK

in Northeast Ohio, JumpStart is part of a robust Network of entrepreneurial resource providers. We would like to recognize our current partners in Ohio Third Frontier’s entrepreneurial Signature Program: Akron Global Business Accelerator, Akron regional Change Angels (ArChAngels) Network, Austen Bioinnovation institute in Akron, Bioenterprise, Bizdom, Braintree Business Development Center, Great Lakes innovation and Development enterprise (GLiDe), Launchhouse, Manufacturing Advocacy and Growth Network (MAGNeT), NorTech, Northeast Ohio Medical University (NeOMeD), Ohio Aerospace institute, The Tech Belt energy innovation Center (TBeiC), University of Akron research Foundation and Youngstown Business incubator.

Without the exceptional support of our public, private and philanthropic partners, we would not be able to create, nurture and grow the kind of partnerships highlighted in this report. We appreciate our donors’ commitment to creating human and economic impact through entrepreneurship.

JumpStart gratefully acknowledges 100 percent participation of its board of directors and associates in financially supporting the organization.

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BOArD OF DireCTOrS

Mr. Mark Williams, Board ChairMr. William r. Seelbach, Vice Chair

Dr. Jacqueline AchoMr. Philip AlexanderMs. Barbara BrownMr. David BrownMr. John DaviesMs. Lauren rich Fine, CFAMr. Larry GoddardMr. Jack harleyMr. William hartmannMr. Jim hickeyMr. Jeff hoffmanMr. Bob hurwitzDr. Joseph JankowskiMr. ray T. LeachMs. Ndeda LetsonMs. Lee NielsenDr. Frank PapayMr. Patrick PastoreMr. richard PohleMr. Gary S. Shamis, CPA , M. Acc.Dr. rachel TaltonMr. Todd r. TeterMr. Steve WallingMr. Leonard D. Young

OBSerVerSMs. rebecca O. BagleyMs. Deborah hooverMs. Shilpa KedarMr. David MorgenthalerOhio Development Services Agency Mr. Thomas Wagner Mr. Doug Weintraub, CPA ** Former Board Chair

LeADerShiP DONOrS

Ohio Third Frontier is an internationally recognized technology-based economic development initiative that is successfully changing the trajectory of Ohio’s economy. The $2.3 billion initiative supports existing industries that are transforming themselves with new, globally competitive products and fostering the formation and attraction of new companies in emerging industry sectors. Ohio Third Frontier provides funding to Ohio technology-based companies, universities, nonprofit research institutions and other organizations to create new technology-based products, companies, industries and jobs.

The Burton D. Morgan Foundation

The Charter One Foundation

The Cleveland Foundation

The economic Development Administration of the U.S. Department of Commerce

The Firstenergy Foundation

Forest City enterprises Charitable Foundation

The Fred A. Lennon Charitable Trust

Fund for Our economic Future

Goldman Sachs Foundation

Greater Cleveland Partnership and COSe

The John S. and James L. Knight Foundation

KeyBank Foundation

Medical Mutual

A Northeast Ohio Foundation (Anonymous)

PNC Foundation

The richard J. Fasenmyer Foundation

Surdna FoundationContributorsPhotos by Laura Webb, Rose Hileman, Michael Norris/archer>malmo, Cassie TaboraWriting by Annie Zaleski and Samantha FrybergerDesign by Meredith Pangrace

6701 Carnegie Avenue, Suite 100 | Cleveland, Oh 44103216.363.3400 | jumpstartinc.org @jumpstartUS | @jumpstartinc