2020 Annual Report
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2020 ANNUAL RE PORT ANNUAL REPORT HIGHLIGHTS Where do we begin in reflecting on 2020? In Nashville, we endured devastating tornadoes, a pandemic, social unrest, and a downtown bombing on Christmas morning. Thankfully, through all this our NCN family remained safe and healthy. And despite the many unexpected challenges, 52 our portfolio companies have performed admirably and continue to execute their growth plans. CompaniesCompanies While some of our companies experienced slower sales cycles and other challenges as the SupportedSupported by NCN by NCN pandemic hit, most have bounced back more quickly than expected. This is in large part due to the business-critical nature of their solutions, the relevance of their offerings, and the determination of highly motivated entrepreneurs. NCN’s model of leveraging the expertise of $ our investor partners has also been extremely valuable through this time. Having experienced 84M operators engaged in our portfolio has been a tremendous resource and advantage for our companies. InvestedInvested by by NCN NCN Partners Partners Even in this time of great uncertainty, we are finding promising opportunities. NCN has a pipeline full of high-quality investment prospects. We have sustained our position as a leading early stage investor in the region, while many “tourist” participants in our stage have shifted their focus back to larger or later stage companies. Nevertheless, we will continue to be calculated, thoughtful, and focused on deploying our proven model. Invested in NCN The continued success and progress of our organization would not be possible without the Supported Companies commitment of our Sponsors, Underwriters, Patrons, and investor partners. Your unwavering support provides the foundation for NCN’s continued impact on high growth entrepreneurship. In Enterprise SID CHAMBLESS CHASE PERRY Value Achieved 2 THE TEAM SID CHAMBLESS CHASE PERRY Managing Partner Managing Partner • Managing Partner of NCN Angel • Managing Partner of NCN Angel Fund I, LP, NCN Angel Fund II, LP, Fund I, LP, NCN Angel Fund II, LP, Tennessee Angel Fund, LP and Tennessee Angel Fund, LP and NCN Partners Fund, LP NCN Partners Fund, LP • NCN Executive Director since 2003 • NCN Director since 2010 • Vanderbilt BA, MBA • Hampden-Sydney BA, Vanderbilt MBA MORGAN PISANO JAY BAKER Director of Operations Associate • NCN Executive Coordinator • NCN Analyst since 2018 since 2013 • Rhodes College BA • Western Kentucky University BS 3 NCN INVESTORS ARE FOUNDERS AND EXECUTIVES OF THE FOLLOWING COMPANIES Acadia Healthcare CVS Caremark Inspiris Province Healthcare AIM Healthcare Digital Reasoning Iroquois Capital Group Psychiatric Solutions Aladdin Industries Dollar General JC Bradford PureSafety American Endoscopy EnableComp KraftCPAs RegionalCare Amylin Pharmaceuticals Enterprise Electric McWane Industries REIT Investment Group AMSURG Enterprise Holdings MedInc Renal Advantage Asurion Envoy MedSolutions RevPoint Healthcare Brentwood Capital Advisors Equitable Securities National Imaging Affiliates Sharecare C.B. Ragland Essex Technology Group naviHealth SMS Holdings Confirmation.com General Care NeighborMD Standard Candy CaseLogistix Harbert Management North America Holding Company Sterling Card Solutions Century II HCA NorthWind Partners Surgical Care Affiliates Corrections Corp/CoreCivic HealthAmerica O’Charley’s Surgical Health Corp Change Healthcare HealthSpring Optum Symbion Healthcare China Health Care Healthways Outpatient Imaging Affiliates TeamHealth CHD Meridian HealthWise of America Ozburn-Hessey Logistics Tennessee Bun Company Choice Food Group HEOPS Passport Health Thompson Machinery Clayton Associates Heritage Health Systems Pinnacle Financial Partners Triton Boats Cogent/HMG Hospi tal Affiliates International PopHealthCare Truxton Trust Counsel On Call Hospital Management Professionals Premier Parking Vaco Coventry Corporation Ingram Industries Premise Health Windsor Health Group 4 EARLY STAGE CAPITAL CONTINUUM CAPITAL GAP CASH FLOW SEED EARLY GROWTH GROWTH LATE GROWTH $0 - $1M in Revenue $1M - $5M in Revenue $5M - $15M in Revenue $15M+ in Revenue REVENUE DOLLARS Accelerator Programs Traditional VCs Growth Equity VCs Seed Funds Growth Equity VCs Traditional Private Equity Friends & Family Mezzanine Lenders Angel Investors Senior Lenders $0 - $1M $1M - $5M $5M - $20M $20M+ Investments Investments Investments Investments NCN CO-INVESTORS INCLUDE Advance Venture Partners Goldman Sachs Humana Primus Baird Capital Grotech Lemhi Ventures River Cities Capital Funds BCBS Venture Partners GV (Google Ventures) LRVHealth Santé Ventures Chrysalis Ventures Harbert Management Corp. Marriott International Silicon Valley Bank Cigna Ventures HCA Martin Ventures Square 1 Bank Council Capital Health Enterprise Partners Nasdaq SSM Partners Credit Suisse NEXT Health Velocity Noro-Moseley Partners UnitedHealth Group Ventures Deerfield Management Heritage Group Oak HC/FT Viking Global Investors Echo Health Ventures Hilton Optum Ventures Vocap Investment Partners Great Hill Partners HLM Venture Partners PeakSpan Y Combinator 5 NCN ADVISORY BOARD TOM WYLLY (Chairman) FRANK GORDON JIM MEADE Brentwood Capital Advisors Crofton Capital LBMC VIC ALEXANDER EMILY HAK ROB METCALF KraftCPAs Insperity Concert Genetics HAL ANDREWS JOHN HARRISON CHASE PERRY Trilliant Health Harbert Management Corporation Nashville Capital Network JIM BAKER PHIL HERTIK CHRISTOPHER RAND Tranquility Partners Private Investor AngelEye Health TYSON BICKLEY MICHAEL HOLLEY KEVIN RODDEY Waller Bass, Berry & Sims Pinnacle Financial Partners BARBARA CANNON HAYLEY HOVIOUS CLINT SMITH NuSirt Sciences Nashville Health Care Council Entrepreneur RAY CAPP ERIC JOHNSON JOHN TITUS ConduIT Corporation Owen Graduate School of Management, Bradley Vanderbilt University SID CHAMBLESS BRADFORD VIEIRA Nashville Capital Network KRIS KEMP ServisFirst Bank Bass, Berry & Sims JOE COOK III PAUL WALLACE Mountain Group Capital JIM KEVER Heritage Group Voyent Partners NANCY EVERITT BRIAN WALLER HEOPS JIM LACKEY Vaco EnableComp BRIAN FOX STEVE WOOD Confirmation.com ROB LAIRD Baker, Donelson Maynard Cooper & Gale JEFF FOX Cherry Bekaert 6 2020 ACTIVITY MARCH APRIL JULY AUGUST AUGUST Follow On Follow On Follow On New Investment Follow On $50M $2.5M $3M $2M $27M Series C Debt Round Series C Series A Series C2 NOVEMBER NOVEMBER DECEMBER DECEMBER Follow On Acquisition New Investment New Investment Acquired By $11M $6M $2M Series B Series A Series A 7 ACTIVE HOLDINGS 8 SPONSORS UNDERWRITERS Butler Snow HUB International Harbert Management Corporation Pinnacle Financial Partners HEOPS PATRONS Bone McAllester Norton Donnelley Financial Solutions Live Oak Bank Santé Ventures Cadence Bank FirstBank LLR Partners Silicon Valley Bank CIBC Bank US Heritage Group Petra Capital Partners Council Capital Inflammo River Cities Capital Funds Diversified Trust Jones Lang LaSalle Sandbox Industries 9 NOTABLE EXITS APR 2013 OCT 2013 OCT 2013 NOV 2015 JULY 2016 SEPT 2016 Acquired By a Joint Acquired By Acquired By Acquired By Acquired By Recapitalization By Venture Between JULY 2017 SEPT 2017 NOV 2017 JULY 2019 OCT 2019 NOV 2020 Recapitalization By Acquired By Recapitalization By Acquired By Recapitalization By Acquired By 10 TOP QUARTILE PERFORMANCE NCN Partners TOP QUARTILE NCN Angel Fund Fund II (2017) TAF Partners (2013) Fund (2010) THIRD QUARTILE NCN Angel Fund I (2008) MEDIAN SECOND QUARTILE BOTTOM QUARTILE 1. Distrubuted Capital / Contributed Capital. Source: Cambridge Assoicates, US Venture Capital: Index and Selcted Benchmark Statistics, Q2 2020. BUILDING CONNECTIONS NCN ANNUAL MEETING AND RECEPTION Early in 2020, NCN partners gathered at Graduate Hotel to celebrate NCN’s Annual Meeting and Reception. 11 3810 BEDF ORD AVEN UE, SUITE 110 NASHVILLECAPITAL.COM NASHVILLE, TN 37215 @NASHCAPNETWORK 615.454.3950.