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76988 IVCA AR08.Indd ENGAGE :: 2008 IVCA ANNUAL REPORT The IVCA – the nation’s leading regional private equity association – will continue to work tirelessly for our industry to position us for success ahead. “ - IVCA Chairman Danny” Rosenberg DEAR MEMBERS :: I am pleased to present the Illinois Venture as early as possible and, with its strong students of color for summer internships. Capital Association’s annual report for 2008. relationships with both political parties, The association also helped establish the IVCA is well-positioned to work as the Women in Venture and Private Equity Despite the global economic turmoil, the a trusted partner on a variety of issues. organization and hosted its fi rst event. IVCA posted another very successful year – Further, we launched IVCA Member thanks to the active involvement of our • Events – The IVCA delivered another full Contribution series to highlight the many members and the tireless efforts of our slate of activities. Among them were several charitable efforts led by IVCA members. professional team of Maura O’Hara, Penny programs that continue to strengthen: Cate and Kathy Pyne. With the challenges the Midwest Venture Summit, the annual Undoubtedly, a number of challenges lie currently facing us, our industry needs the CFO Summit, and our signature Annual ahead for our industry. However, be IVCA more than ever to help us speak with Awards Dinner, which honored Kevin assured that as we manage through the one voice on critical issues. Evanich, Dick Thomas and Keith Crandell. current economic problems, the IVCA – the nation’s leading regional private equity Specifi cally, the 2008 highlights included: • Education – The IVCA launched a very association – will continue to work tirelessly successful four-event program, the IVCA • Legislative – We hosted a series of to position our industry for continued Toolkit Series, which focuses on industry legislative dinners with key lawmakers success. Thank you for your support and I topics affecting our members. It already and IVCA Board Members; sponsored look forward to seeing all of you in 2009. has set dates and topics for 2009. a number of trips to Springfi eld; and informed large numbers of legislators • Community Leadership – We expand- about our industry’s economic benefi ts ed the number of fi rms participating to Illinois and our region. We benefi t in the IVCA Scholars Program, with Daniel Rosenberg from developing these critical relationships member fi rms hiring University of Illinois Chairman 2008-2009 ENGAGE :: IVCA’S BYWORD IN PRIVATE EQUITY In less than a decade, the Illinois Venture This engagement refl ects the IVCA’s opportunities for networking, access Capital Association has become the recog- maturity and its growing infl uence within and to industry and educational forums, nized voice for private equity and venture outside Illinois. The IVCA and its members: and events honoring those leaders in capital in Illinois and the premier regional their fi elds. • Ensure that lawmakers and regulators venture capital/private equity association. recognize the critical role the private By being at the vanguard on key fronts, Simply ask Mark Heesen, president of the equity and venture capital community IVCA has become the force making a National Venture Capital Association, who plays in economic growth and innova- difference. The media consult with IVCA. says the IVCA “excels” among regional tion, through active lobbying on issues Entrepreneurs and companies already associations and maintains it has “hit the important to these sectors, political established do, too. So do government, nail on the head in tying public policy contributions and education. trade groups, foreign groups, universities research to public relations.” and others seeking to understand and • Serve as ambassadors and advocates work with the venture capital and private Our current membership stands at 125 for Illinois as an ideal site for investments, equity industry. fi rms, including a core group of 33 found- especially in emerging fi elds. ing members. These members represent Engaging is especially important in • Encourage the success of minorities and the majority of active institutional investors today’s volatile business climate, which women in the private equity and venture in our region. We have come of age and impacts the private equity, venture capital, capital industry through scholarships, become fi rmly engaged in the critical entrepreneurial and employment sectors advocacy and networking events. issues facing home-grown companies so severely. That’s why, now more than and entrepreneurs. • Offer entrepreneurs and private equity ever, an established and engaged IVCA and venture capital professionals proves so invaluable. www.illinoisvc.org • 1 Chicago has become the hub of health care private equity investing…. and we look forward to partnering with the IVCA and its members to further advance Chicago. “ – Tim Dugan, Water Street ”Healthcare Partners ENGAGE :: VENTURE CAPITAL & PRIVATE EQUITY STAKEHOLDERS Media headlines evoked images of a venture private equity investments. The Web site capital and private equity industry in deep also spotlighted members’ expertise, their turmoil in 2008. But the fi nancial storm charitable endeavors, and the promising winds didn’t slow the Illinois Venture Capital portfolio companies of IVCA member fi rms. Association and our activist staff. They The association’s calendar for the 2008 delivered an ambitious agenda for engaging second quarter alone captured the dimension Illinois’ venture capital and private equity and and diversity of its agenda. April: Economist entrepreneurial communities and promoting Carl Tannenbaum presented his economic their interests. The IVCA calendar resembled outlook at the annual IVCA/NVCA luncheon. that of an executive continuing-education May: An IVCA Toolkit Series luncheon program, including networking activities (who focused on using management assessment doesn’t consider U.S. Cellular Field an ideal tools to maximize investment returns. IVCA place to kibitz) for members and the broader members met with U.S. Rep. Melissa Bean investment community. to discuss key industry issues pending in IVCA’s newsy Web site – www.illinoisvc.org – Congress. June: IVCA members enjoyed a kept members apprised of local and national White Sox-Pirates game at U.S. Cellular developments critical to staying abreast of Field. A Toolkit Series session explored the swirling market conditions. Every quarter, for current market terms in private equity instance, the Web site featured the Private investing. Four IVCA Scholars began their Equity Monitor’s review of venture capital and internships at IVCA member fi rms. 2 • IVCA 2008 ANNUAL REPORT IVCA PRIVATE EQUITY PROFILE :: ADVANCED DIAMOND TECHNOLOGIES We Solve Hard Problems™ is Kane; Orlando Auciello, Ph.D., also received several govern- New developments keep occur- the tagline of Advanced Diamond a senior scientist at Argonne ment grants as well as some debt ring. In February 2008, ADT Technologies, Inc., and it’s ap- National Laboratory; and John fi nancing from a vendor, allowing launched a family of diamond propriate. ADT has become the Carlisle, Ph.D., formerly an it to start manufacturing sooner mechanical seals that improve world leader in developing and Argonne scientist and now than otherwise planned. effi ciency and save energy applying thin, smooth diamond ADT’s chief technical offi cer. in fl uid pumping systems. In Its fi rst products were UNCD- fi lm for use in industrial, elec- September came all-diamond At times, they faced nearly coated silicon wafers. With its tronic and biomedical products. probes known as NaDiaProbes® insurmountable obstacles to commercial-scale platform, ADT for atomic scale imaging. ADT’s ADT was formed in late 2003 get the company off the ground. raised its next round of fi nancing product revenues increased 400 by three co-founders to commer- Indeed, it wasn’t until February in November 2006 to launch more percent from 2007 to 2008. cialize the technology that turns 2005 that they fi nished their products. LaSalle Investments natural gas into diamond fi lm in Series A fi nancing round. The reinvested along with Illinois- No longer is ADT quite a a nanocrystalline form known as key investor was LaSalle Invest- VENTURES LLC, Nomad diamond in the rough. UNCD®. They are President Neil ments, Inc. Along the way, ADT Ventures and individual investors. These IVCA profi les are a continuing series of portraits of Illinois venture capital and private equity investments, spotlighting companies that are emerging or proven successes. IVCA PRIVATE EQUITY PROFILE :: FIELDGLASS, INC. If you sought an entrepreneur That wasn’t always the case. Then came 9/11, which damaged expansion purposes. In 2006, who had survived classic start- In November 1999, Shekhawat fundraising efforts. Of 90 it stopped consuming cash as up travails, Jai Shekhawat would incorporated Fieldglass even venture-capital presentations revenues climbed. stand out. He is co-founder though it didn’t have a viable Shekhawat made, all but two Today, Fieldglass makes big and chief executive offi cer of software solution yet. That last rejected Fieldglass. Further international deployments and Chicago-based Fieldglass, Inc. piece of the puzzle soon locked trials followed before American wins new customers regularly. Its The nine-year-old software into place as Internet transac- International Group became software application is available company helps customers tions emerged. In early 2000, the second customer in 2002. in eight languages. He foresees manage the sourcing of all their he lined up half of his initial Others followed, along with further strong growth, noting that human capital and services, $1.5 million in funding from new venture capital partners. less than 10 percent of big North especially for contingent Prism Opportunity Fund. But By June 2003, Fieldglass had America companies employ workers. And while it doesn’t the dot.com crash nearly nixed raised $17 million in third-round a human-capital system like disclose profi t fi gures, Fieldglass the funding. Verizon Wireless funding and two years later, it Fieldglass’ technology platform.
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