ENGAGE :: 2008 IVCA ANNUAL REPORT The IVCA – the nation’s leading regional 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 /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. is doing just fi ne. became its fi rst customer. raised another $11 million for

www.illinoisvc.org • 3 KEY IVCA 2008-2009 The IVCA has hit the nail on the head in tying public policy LEGISLATIVE ISSUES research to public relations. If politicians understood the industry, 2008: • Staff and members at the end of the day you wouldn’t see public policies that hurt us. traveled to Springfi eld to meet legislative leaders. - Mark Heesen, president, National Venture Capital Association • IVCA hosted meetings with key state legislators, “ and also with U.S. Rep. Melissa Bean (D., Ill.) to discuss industry issues pending in Congress. ” • Lobbied for eliminating disincentives to venture :: capital and private equity ENGAGE LAWMAKERS & REGULATORS investing in Illinois.

• Fought to avoid unintended As it matures, the Illinois Venture Capital IVCA met initial success in persuading consequences in otherwise important legislation, such Association enhances our government affairs Chicago and county pension funds to as pending pension-fund agenda. Its mission: educate state and local consider investing more in Illinois-based ethics reform. offi cials and agencies about the importance fi rms. In Springfi eld, IVCA persuaded • Backed efforts to let public pension funds invest with and impact of Illinois’ $100 billion venture lawmakers to repeal the Personal Property local funds since local fi rms capital and private equity industry. Replacement Tax assessment of partnership generate 2.2 indirect jobs for every direct job. investment income that hurt Illinois’ funds’ Sentiment has trended negative toward net returns by 1.5 percent. While it doesn’t 2009: the private equity sector. Journalists and lobby Congress, IVCA shared information • Hold further meetings with lawmakers haven’t fully understood the and met occasionally with Illinois lawmakers. key Illinois lawmakers. difference between hedge funds and private • Continue effort to expand equity or the direct benefi ts investors offer Among other projects: encouraging public the ability of the regional established company management. pension funds to report the amount and by Illinois’ treasurer to percent of dollars invested with Illinois private invest in local fi rms. Helping remedy this, IVCA developed IVCA equity and venture capital fi rms; investigating • Maintain efforts to educate Private Equity Profi les™ that spotlight member legislators by creating the effects of merging Illinois’ pension funds; fi rms’ promising portfolio companies. We post materials that highlight the and expanding the state treasurer’s regional role venture capital and the profi les on our Web site and share them private equity fi rms play in fund of funds for investing in local fi rms. with legislators. We also post the quarterly growing companies, among other things. IVCA Private Equity Monitor™ that follows • Lobby for Illinois pension trends in private investing and fundraising. ethics reform.

4 • IVCA 2008 ANNUAL REPORT ENGAGED IN HONORING PRIVATE EQUITY’S BEST • DECEMBER 8 The IVCA Annual Awards Dinner, which celebrates individual achievements in the private equity community and other advances in the fi eld, proved another gala, sold-out event. More than 500 members and guests attended the Dec. 8 event.

The 2008 honorees were: • Keith L. Crandell, co-founder and managing director of ARCH Venture Partners and recipient of The Fellows Medal. Active with IVCA since its inception, he recently served as IVCA chairman. • Kevin R. Evanich, senior member of Kirkland & Ellis LLP Corporate Group and recipient of the Stanley C. Golder Medal. He has specialized in private-equity transactions for more than 25 years and has addressed several IVCA events. IVCA Chairman Danny Rosenberg detailed the association’s most • Richard L. Thomas, retired chairman of First Chicago NBD notable 2008 initiatives and accomplishments, including the Midwest Corporation and the First National Bank of Chicago and recipient Venture Summit, four educational IVCA Toolkit luncheons, the IVCA of the Richard J. Daley Medal. He played a profound role in CFO Summit, new programming specifi c for women in the private establishing the private equity industry in Chicago. equity sector, and expansion of the IVCA scholar program.

IVCA Executive Director Maura O’Hara, reminding attendees that Awards dinner co-chairpersons Ellen Carnahan of Machrie Enterprises the annual dinner can serve as a prelude to worldwide leadership and John Willis of Willis Stein & Partners then transitioned the dinner roles, noted that fi ve years earlier, then-Illinois Sen. Barack Obama to the awards presentations. The dinner, presented by Kirkland & Ellis attended the awards dinner. LLP, culminated with a dessert reception.

IVCA PRIVATE EQUITY PROFILE :: IFBYPHONE, INC.

Irv Shapiro has founded and The company’s revenue model fi rms Origin Ventures and Apex With 20 employees, Ifbyphone nurtured three technology applies a blend of Software as Venture Partners, and himself. has about 4,500 customers that companies. His latest: Ifbyphone, a Service (SaaS) and mobile Within two months, a second Shapiro calls “early adopters” – Inc., begun in January 2005. It phone usage plans. Its Web site, close of that funding accommo- small businesses or divisions of employs advanced telephony www.ifbyphone.com, offers a dated a $250,000 investment large companies that grasp how applications that turn Web-site demonstration of the technology. by i2A Investment Fund of they can use the telephone and visits into phone calls, provide Chicago. In the summer of 2008, the Internet to their advantage. CEO Shapiro, who also serves as intelligently routed local and the Skokie, Ill., company raised Of its customers, about 1,000 chief technical offi cer, initially toll-free numbers and deliver another $3.5 million from existing pay a monthly minimum fee. bankrolled the Ifbyphone voice broadcast services that partners and Spring Mill Venture Since October 2007, sales have technology. But in July 2007, let small- and medium-sized Partners, Indianapolis, and Village compounded about 20 percent he raised $2.25 million from businesses connect with potential Ventures, based in the East. month over month. Chicago-area venture capital customers online or off.

www.illinoisvc.org • 5 THE IVCA Engagement. It best defi nes the full scope of the Illinois Venture TOOLKIT SERIES

The inaugural IVCA Toolkit Capital Association’s outreach program for its members and for Series – four programs that provided immediately useful others in the broader economic-development sector, including “tools” for venture capital and private equity professionals – entrepreneurs. Here are key IVCA events in 2008: proved very popular. Feb. 28: Sam Rovit and Jed Buchanan of Bain & Company spotlighted “Strategic Due Diligence & Post-Investment Planning.” They explained how activism and early and ENGAGE :: ACTIVITIES THAT BROADEN ongoing operational involvement pays off for THE INDUSTRY, ITS PARTICIPANTS private equity investors. May 28: Jim Intagliata and David Works of ghSMART March 17-18 On the second day, Evanston-based Pa- discussed how private equity The Midwest Venture Summit tientImpact, which helps doctor’s offi ces and venture capital fi rms can best use management- More than 400 people, including more than and health-care fi rms better communicate assessment tools to maximize 100 venture capital and angel investors, with customers via online surveys, won the internal rate of return for their portfolio companies. attended the two-day IVCA event, a premier $70,000 grant. Its CEO Patty Riskind cred- June 25: A panel that included vehicle for high-level networking and educa- ited her success largely to coaching from Salam Chaudhary of Wind tional opportunities. IVCA members. Luncheon keynote speaker Point Partners, Howard Lanser John Gartner, author of “The Hypomanic from R.W. Baird and Derek Day one featured the University Business Stoldt from Kaye Scholer Edge,” shared his thesis about why a little reported on term trends in Plan Competition, sponsored by Winston & bit of mania is a common if not useful trait private equity investing. Strawn LLP. ReTel Technologies, the Univer- of successful entrepreneurs. His talk was Nov. 18: Winston & Strawn sity of Chicago Graduate School of Busi- partner Brian M. Schafer sponsored by KPMG LLP. outlined best practices for ness entry, defeated teams from seven other boards of directors. Additional universities for a $50,000 grant from the April 16 perspective was given by Annual IVCA/NVCA Luncheon NASDAQ OMX Group Illinois Department of Commerce & Economic managing director Tim Development. ReTel uses RFID technology to Nearly 135 IVCA members and guests heard Golomb, who covered corporate governance. bring shopper analytics and dynamic pricing economist Carl Tannenbaum, now with the Federal Bank of Chicago, present an amus- Each of the Toolkit to offl ine retail environments. The afternoon presentations is available session included presentations from 24 Early ing and not-entirely pessimistic economic at www.illinoisvc.org. Stage companies competing for the Bob forecast at the joint IVCA and National Ven- Geras Grant. ture Capital Association luncheon, sponsored by Virchow, Krause & Company LLP.

6 • IVCA 2008 ANNUAL REPORT IVCA ANNUAL BASEBALL OUTING • JUNE 19 IVCA ANNUAL BASEBALL OUTING • JUNE 19

Mr. Tannenbaum predicted that as it re- mezzanine funds in a portfolio. “ Illinois conducted a half-day introduction lates to venture capital and private equity, and venture are counter-cyclical. Mezzanine to venture capital and private equity for the companies will fi nd it diffi cult to raise debt brings a smoothing effect. A combined students, all from the University of Illinois. fi nancing and go public for the foreseeable portfolio with exposure in all three is sound This year’s scholars were Jason Aguiar future. He believes the days of blockbuster in theory,” said John O’Malley of WestLB at ARCH Venture Partners, Roy Beckham deals are likely gone but also foresees the Mellon Asset Management. at Beecken Petty O’Keefe & Co., Azure power and innovation of the U.S. economy Jesse Reyes of Bear Stearns (a J.P. Morgan Nelson at Baird Private Equity and Mike emerging stronger after the recession. Company) Private Funds Group outlined Webb at Thoma Cressey Bravo, Inc. Oct. 16 major implications of the credit crunch, th The $15,000 scholarship includes a 8 Annual IVCA CFO Summit including a slowdown in raising funds over $5,000 tuition award and the 10-week paid Nearly 100 attendees, primarily fund the next 24 months, a denominator effect internship. The program seeks to increase fi nance professionals, heard panelists insist that will end only after private-equity valua- minority participation in venture capital and that volatility brings opportunity at the CFO tions drop sharply and diffi culty in access- private equity. The IVCA is seeking 2009 Summit, co-presented by IVCA and Silicon ing the best managers, among others. internship sponsors. Valley Bank. They said the key for limited June 2 partners is to put their dollars on the right IVCA Scholars Begin Internships management team while, for general part- Four business majors tapped as the ners, it’s making it to the third fund. second group of IVCA Scholars began In today’s turmoil, panelists advised em- their summer internships with member ploying the right mix of , venture and fi rms. Dan O’Connell of the University of

www.illinoisvc.org • 7 VENTURE CAPITAL

CASH FLOW

Key management, Product in Product shipping, COMPANY Product St in place, initial development or funds needed for STAGE OF development, like marketing, available, fi rst working capital or market research c DEVELOPMENT pre-sales institutional fi nancing plant expansion

TAXONOMY OF PRIVATE EQUITY

From the Greek taxis meaning TYPE OF arrangement and nomos FINANCING Seed Stage Start-up Financing Other Early Stage Expansion Stage meaning law, taxonomy is the science of classifi cation that offers a conceptual framework for discussion and analysis. Like any good taxonomy, this one of the private equity TYPE OF Angel Venture Capital market is simple, easy to INVESTOR remember and easy to use.

ENGAGE :: GROWING POOL OF LOCAL CAPITAL

We need a commitment from Illinois limited dollars invested that remain with Illinois partnerships to reinvest funds in the state of VC/PE funds. Illinois. The Illinois Venture Capital Association Expansion of TDA continues to work with local LPs – public The Technology Development Account pension funds, endowments, foundations (TDA) is a “fund of funds” structure that and government stakeholders – to encourage allows the Illinois treasurer to invest money them to keep their venture and private equity from the offi ce’s investment portfolio to dollars in Illinois where they can be used to venture and private equity funds located in increase innovation and job growth. Other Illinois. The TDA was created by the Illinois states including Indiana, Ohio and Wisconsin General Assembly in 2002 to attract, assist have focused successfully on this effort, and and retain high-quality technology businesses they have seen a marked increase in invest- in the state. ments in early-stage companies. Under the guidelines of the program, the Illinois’ commitment to the state’s fi rms must Treasurer’s Offi ce can commit no more than come from two places: 1 percent of the state’s investment portfolio • Expansion of the Technology Development to certain venture capital fi rms that have a Account (TDA) commitment to investing in start-up technol- ogy businesses in Illinois. “The TDA supports • Commitment by local LPs to consider local the state’s entrepreneurs in their quest to funds and to report on the percent of total make Illinois a technology hub and bring

8 • IVCA 2008 ANNUAL REPORT PRIVATE EQUITY

Management g, Company to Stable growth rate, Company is acquiring a product r go public or LBOs, acquisitions, Operationally or likely to be profi table, publicly traded line or business r be acquired in recapitalization fi nancially troubled cash fl ow positive or independent at any stage of 6-12 months development

Management/ Later Stage Bridge Financing Open Market Acquisition Turnaround

ital Growth Equity Product development, market research

thousands of professional jobs to our state,” Commitment to Local Funds STATE-SPONSORED says Illinois Treasurer Alexi Giannoulias. Following the lead of the California Public FUND OF FUNDS PROGRAM Employees’ Retirement System, among This program has no incremental cost to the most successful LPs in venture/private 250 $252 the state; rather, funds are allocated from a equity investing, and its successful “Califor- lower-yielding investment to venture/private $228 nia Initiative” program, IVCA supports a equity investments. “Investing in these 200 commitment by Illinois pension funds to $204 venture capital fi rms and, ultimately, Illinois seek local investments that will meet/ companies is the wave of the future,” he exceed return benchmarks. adds. “This creates a welcoming environ- 150 ment for these companies that will provide IVCA knows great fi rms exist in Illinois that $135 high-paying jobs well into the future.” offer above-benchmark returns. We believe many of these fi rms experience diffi culty 100 IVCA is working with the Illinois legislature $100 gaining access to Illinois pension funds to allow the fund to access 3 percent of $75 because their fund sizes generally are the state’s investment portfolio instead of smaller than their out-of-state peers. Illinois 50 1 percent. We believe that this fund can act funds should be considered, and public as an important stimulus to the Illinois pension funds, in particular, should report economy. Even at the 3 percent level, ILLINOIS INDIANA IOWA MICHIGAN OHIO WISCONSIN on the number of Illinois funds considered 0 Illinois will still lag behind its peer states in $ in millions and report on the percent of funds invested funding innovation via venture and private in the state. equity investments.

www.illinoisvc.org • 9 ENGAGE :: GOVERNANCE

THE IVCA OFFICERS BOARD OF DIRECTORS Chairman Danny Rosenberg Sterling Partners 1st Vice Chairman Keith Crandell ARCH Venture Partners 2nd Vice Chairman Danny Rosenberg Ellen Carnahan Machrie Enterprises Chairman 2008-2009 Secretary Sterling Partners Jim TenBroek Wind Point Partners Treasurer Darren Snyder Prairie Capital Keith Bank KB Partners Steve Beitler Dunrath Capital Tom Berman Adams Street Partners LLC Ellen Carnahan Wayne Boulais Apex Venture Partners Vice Chairman: 2008-2009 Paul Carbone Baird Venture Partners Machrie Enterprises Barrett Carlson CapX Partners Tom Churchwell ARCH Development Partners Ed Condon NewEllis Ventures David Cooney Beecken Petty O’Keefe & Company Jim Dugan OCA Venture Partners Robert Fealy Duchossois Technology Partners Robert Finkel Prism Capital Walter Florence Frontenac Company Keith Crandell Bob Geras LaSalle Investments Vice Chairman: 2008-2009 IVCA-PAC Chairman: 2008-2009 Mark Glennon Leo Capital Holdings ARCH Venture Partners John Hoesley Prism Capital Warren Holtsberg MVC Capital Steve Kaplan University of Chicago Booth School of Business Eric Larson Linden LLC Jim Macdonald First Analysis Bret Maxwell MK Capital Matt McCall DFJ Portage Venture Partners Alex Miller Svoboda Capital Partners LLC Darren Snyder Treasurer: 2006-2009 Robert Morgan Northern Trust Global Advisors Prairie Capital Craig Overmyer Hopewell Ventures Tony Palcheck Motorola Ventures Laura Pearl Ceres Venture Fund L.P. J.B. Pritzker New World Ventures Adam Schecter WHI Capital Partners Heather Smith Thorne Thoma Bravo LLC David Tolmie The Edgewater Funds John Willis Willis Stein & Partners James TenBroek Secretary: 2008-2009 Executive Director Wind Point Partners Maura O’Hara Illinois Venture Capital Association

10 • IVCA 2008 ANNUAL REPORT BOARD OF DIRECTORS

(From left to right) Front row: Maura O’Hara, Heather Smith Thorne, Bob Geras, Ellen Carnahan

Second row: Keith Bank, Paul Carbone, Danny Rosenberg, Walter Florence

Third row: Warren Holtsberg, Dave Tolmie, Robert Finkel, Jim Macdonald

Fourth row: Bret Maxwell, Robert Morgan, Mark Glennon, Jim Dugan

Back row: Tom Berman, Darren Snyder, Bob Fealy, Steve Kaplan, Jim TenBroek, John Hoesley

Not pictured: Steve Beitler, Wayne Boulais, Barrett Carlson, Tom Churchwell, Ed Condon, Jr., David Cooney, Keith Crandell, Eric Larson, Matt McCall, Alex Miller, Craig Overmeyer, Tony Palcheck, Laura Pearl, J.B. Pritzker, Adam Schecter, John Willis

2008-2009 EXECUTIVE COMMITTEE 2008-2009 STAFF

Chairman Maura O’Hara Danny Rosenberg Sterling Partners Maura has been Executive Director of IVCA since Keith Bank KB Partners 2003. She oversees all aspects of the Association Steve Beitler Dunrath Capital and represents IVCA in the community. Ellen Carnahan Machrie Enterprises Keith Crandell ARCH Venture Partners Kathy Pyne Jim Dugan OCA Venture Partners Kathy is the IVCA’s Association Coordinator and is Robert Fealy Duchossois Technology Partners responsible for events, member communications and Robert Finkel Prism Capital database management. Kathy joined IVCA in 2005. Mark Glennon Leo Capital Holdings Bret Maxwell MK Capital Penny Cate Matthew McCall DFJ Portage Venture Partners Penny is IVCA’s Government Affairs representative. Jeffrey Moss Sterling Partners Since 2004, Penny has led IVCA’s legislative efforts Laura Pearl Ceres Venture Fund L.P. and develops strategies for IVCA’s Legislative Benedict Rocchio Baird Venture Partners Committee and IVCA-PAC. Darren Snyder Prairie Capital Jim TenBroek Wind Point Partners Steve Vivian Prism Capital John Willis Willis Stein & Partners Jeff Zilka Edelman Maura O’Hara IVCA

www.illinoisvc.org • 11 ENGAGE :: MEMBER LIST

IVCA FOUNDING Adams Street Partners LLC IllinoisVENTURES LLC Quarles & Brady LLP MEMBERS * Advantage JK&B Capital Reed Smith LLP American Capital JPMorgan/JPMorgan River Cities Capital Fund Adams Street Partners LLC Apex Venture Partners Private Bank Robert W. Baird & Co. Apex Venture Partners ARCH Development Katten Muchin Rosenman LLP Roundtable Healthcare Partners ARCH Development Partners LLC Kaye Scholer LLP RSM McGladrey, Inc. Partners LLC ARCH Venture Partners KB Partners Russell Reynolds Associates ARCH Venture Partners Baird Venture Partners Kelley, Drye & Warren LLP * Sandbox Industries Baird Venture Partners Baker & McKenzie Kirkland & Ellis LLP Seneca Partners, Inc. * Beecken, Petty, BDO Seidman LLP KPMG LLP Silicon Valley Bank O’Keefe & Company Beecken, Petty, Kutchins, Robbins & Sonnenschein Nath & O’Keefe & Company Diamond, Ltd. DFJ Portage Venture Partners Rosenthal LLP Bell, Boyd & Lloyd LLC Lake Capital Duchossois Technology Spencer Stuart Partners LLC Blackman Kallick LLP LaSalle Capital Group State Universities Burke, Warren, LaSalle Investments Dunrath Capital Retirement System MacKay & Serritella Lazard Middle Markets Ernst & Young LLP Sterling Partners CapX Partners Leo Capital Holdings First Analysis Svoboda Capital Partners Centerfi eld Capital Partners Linden LLC Teachers’ Retirement System Frontenac Company Ceres Venture Fund L.P. * Machrie Enterprises of Illinois Hopewell Ventures Charter One Bank Madison Dearborn Partners The Edgewater Funds KB Partners Chicagoland Martin Partners The Plexus Groupe LaSalle Investments Entrepreneurial Center Mayer Brown LLP Thoma Bravo LLC Leo Capital Holdings Chrysalis Ventures McDermott, Will & Emery Thompson Flanagan & Co. Mesirow Financial CIVC Partners McGuireWoods LLP TriNet Private Equity Code Hennessy & Mesirow Financial UBS Investment Bank – Mid Oaks Invesments LLC Simmons LLC Private Equity Financial Sponsors and MK Capital Conversus Asset Management Mid Oaks Invesments LLC Leveraged Finance Motorola Ventures Credit Suisse MK Capital UIB Capital New World Ventures DFJ Portage Venture Partners * MorganFranklin Ungaretti & Harris NewEllis Ventures Deloitte & Touche Motorola Ventures University of Chicago Booth Northern Trust Global Advisors Duchossois Technology * MVC Capital School of Business Partners LLC University of Illinois OCA Venture Partners * NASDAQ OMX Group Dunrath Capital University Park at IIT and Prairie Capital Neal, Gerber & Eisenberg LLP Edelman The Knapp Center Prism Capital Ned Heizer EmPower HR Vedder Price P.C. New World Ventures Silicon Valley Bank Ernst & Young LLP Virchow, Krause & NewEllis Ventures Sterling Partners Financial Investments Company LLP Northern Trust Global Advisors Svoboda Capital Partners Corporation * Water Street Northwestern University – The The Edgewater Funds First Analysis Healthcare Partners Larry and Carol Levy Institute WestLB Mellon Asset Thoma Cressey * Foley & Lardner LLP for Entrepreneurial Practice/ Management (USA) LLC Equity Partners Frontenac Company The Farley Center for Willis Stein & Partners FT Capital Partners LLC Entrepreneurship & Innovation WHI Capital Partners Wind Point Partners Golder Investment OCA Venture Partners Wildman, Harrold, Allen & Dixon LLP Management LLC * Open Prairie Venture Willis Stein & Partners Greyrock Capital Group Origin Ventures Wind Point Partners GTCR Golder Rauner LLC * PPM America Capital Partners * Winona Capital Management Hopewell Ventures Prairie Capital Winston & Strawn LLP Horwood, Marcus & Berk Chtd. PricewaterhouseCoopers * WP Global Partners Illinois Municipal Prism Capital Wynnchurch Capital, Ltd. Retirement Fund * Prospect Partners Illinois State Treasurer Zebra Technologies Inc.

Investor fi rms in bold * New Members

12 • IVCA 2008 ANNUAL REPORT ENGAGE :: SPONSOR LIST

SPONSORING MEMBERS • Provide outstanding support for IVCA in the form of services and/or the highest levels of event sponsorship

Kirkland & Ellis LLP

Ernst & Young LLP Virchow, Krause & Company LLP

Kutchins, Robbins & Diamond, Ltd. Mayer Brown LLP Silicon Valley Bank Spencer Stuart

Sonnenschein, Nath & Rosenthal LLP Kaye Scholer LLP Bell, Boyd & Lloyd LLC Printing :: The Fox Company Lithographers • Edelman KPMG Wildman, Harrold, Allen & Dixon LLP

SUPPORTING MEMBERS • Have sponsored at least one event during the year

Adams Street Partners Thoma Cressey Bravo, Inc. Chrysalis Ventures Duchossois Technology Partners Willis Stein & Partners First Analysis Principal Photography :: Steve Ewert, IVCA

• IllinoisVENTURES New World Ventures Hopewell Ventures Winston & Strawn LLP Reed Smith LLP Midwest Venture Partners ARCH Venture Partners The Revere Group, Ltd. MK Capital Blackman Kallick LLP Valuation Research Corporation Motorola Ventures Frontenac Company Square 1 Bank Origin Ventures GTCR Golder Rauner LLC ghSmart River Cities Capital Fund Madison Dearborn Partners The Pritzker Group Sterling Partners McGuireWoods LLP Apex Venture Partners

Design/Editorial :: Edelman Design Mesirow Financial Private Equity Baird Venture Partners SPONSORING MEMBERS