2019 Annual Report Annual Report Highlights
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2019 ANNUAL REPORT ANNUAL REPORT HIGHLIGHTS Nashville Capital Network had a productive and insightful year in 2019. In the summer, we updated our ‘Nashville Venture Capital Report’ to assess how activity in Tennessee compared 49 to the rest of the country. Private equity and growth capital availability reached new heights, a trend that continues to benefit NCN’s investments. In 2019, NCN portfolio companies raised COMPANIES more than $120 million in growth capital highlighted by investments in Groups360, Contessa SUPPORTED BY NCN Health, and XOi Technologies. NCN Partners Fund added its seventh portfolio company, digital sales and marketing company JumpCrew. And in October, NCN realized a great return when Primus Capital led a recapitalization of Trilliant Health. $79M In the current market dynamic, NCN’s impact has become even more clearly pronounced. Early stage companies benefit greatly by having strategic investors who help them optimize growth INVESTED BY opportunities. We leverage our roster of successful founders and executives to help the most NCN PARTNERS promising early stage companies accelerate growth, build connections, and create long term value. This approach has led to strong returns for both our investors and stakeholders in the community. $870M NCN is looking forward to 2020 with great excitement. With an expanded team in 2019 we reviewed more opportunities than in any other year in the organization’s history. Our current INVESTED IN NCN pipeline is robust and we are eager to find new companies for partnership. The continued SUPPORTED COMPANIES success and progress of our organization would not be possible without the commitment of our Sponsors, Underwriters, Patrons, and investor partners. Thank you for your partnership. $3B IN ENTERPRISE SID CHAMBLESS CHASE PERRY VALUE ACHIEVED 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 • Former EVP of startup Surfari.com • Former VP of venture-backed • Vanderbilt BA, MBA FrontStream Payments • Former private equity analyst at Harbert Management Corp. • Hampden-Sydney BA, Vanderbilt MBA MORGAN PISANO JAY BAKER DIRECTOR OF OPERATIONS ANALYST • NCN Executive Coordinator • Former Investment Banking since 2013 analyst at Stephens Inc. • Western Kentucky University BS • Rhodes College BA 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 HOSPITAL AFFILIATES INTERNATIONAL POPHEALTHCARE TRUXTON TRUST COUNSEL ON CALL HOSPITAL MANAGEMENT PROFESSIONALS PREMIER PARKING VACO COVENTRY CORPORATION INGRAM INDUSTRIES PREMISE HEALTH WINDSOR HEALTH GROUP EARLY STAGE CAPITAL CONTINUUM CAPITAL GAP CASH FLOW SEED EARLY GROWTH GROWTH LATE GROWTH $0 - $1M IN REVENUE $1M - $3M IN REVENUE $3M - $10M IN REVENUE $10M+ IN REVENUE REVENUE DOLLARS ACCELERATOR PROGRAMS TRADITIONAL VC GROWTH EQUITY VC SEED FUNDS GROWTH EQUITY VC TRADITIONAL PRIVATE EQUITY FRIENDS & FAMILY MEZZANINE LENDERS ANGEL INVESTORS SENIOR LENDERS $0 - $1M $1M - $5M $5M - $15M $15M - $50M INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS NCN CO-INVESTORS INCLUDE ADVANCE VENTURE PARTNERS GOLDMAN SACHS HUMANA PRIMUS BCBS VENTURE PARTNERS GROTECH LEMHI VENTURES RIVER CITIES CAPITAL FUNDS CHRYSALIS VENTURES GV (GOOGLE VENTURES) LRVHEALTH SANTÉ VENTURES CIGNA VENTURES HARBERT MANAGEMENT CORP. MARTIN VENTURES SILICON VALLEY BANK COUNCIL CAPITAL HCA NASDAQ SQUARE 1 BANK CREDIT SUISSE NEXT HEALTH ENTERPRISE PARTNERS NORO-MOSELEY PARTNERS SSM PARTNERS DEERFIELD MANAGEMENT HEALTH VELOCITY OAK HC/FT UNITEDHEALTH GROUP VENTURES ECHO HEALTH VENTURES HERITAGE GROUP OPTUM VENTURES VOCAP INVESTMENT PARTNERS GREAT HILL PARTNERS HLM VENTURE PARTNERS PEAKSPAN Y COMBINATOR TOM WYLLY (Chairman) JEFF FOX JIM MEADE BRENTWOOD CAPITAL ADVISORS CHERRY BEKAERT LBMC VIC ALEXANDER FRANK GORDON ROB METCALF KRAFTCPAS CROFTON CAPITAL CONCERT GENETICS HAL ANDREWS EMILY HAK ANU PARDESHI TRILLIANT HEALTH INSPERITY SUNTRUST BANK JIM BAKER JOHN HARRISON CHASE PERRY TRANQUILITY PARTNERS HARBERT MANAGEMENT CORPORATION NASHVILLE CAPITAL NETWORK TIM BEWLEY PHIL HERTIK CHRISTOPHER RAND PINNACLE FINANCIAL PARTNERS PRIVATE INVESTOR ANGELEYE HEALTH TYSON BICKLEY MICHAEL HOLLEY CLINT SMITH WALLER BASS, BERRY & SIMS EMMA BARBARA CANNON HAYLEY HOVIOUS JOHN TITUS NUSIRT SCIENCES NASHVILLE HEALTH CARE COUNCIL BRADLEY RAY CAPP ERIC JOHNSON BRADFORD VIEIRA CONDUIT CORPORATION OWEN GRADUATE SCHOOL OF SERVISFIRST BANK MANAGEMENT, VANDERBILT UNIVERSITY SID CHAMBLESS PAUL WALLACE NASHVILLE CAPITAL NETWORK KRIS KEMP HERITAGE GROUP NCN ADVISORY BOARD ADVISORY NCN BASS, BERRY & SIMS JOE COOK III BRIAN WALLER MOUNTAIN GROUP CAPITAL JIM KEVER VACO VOYENT PARTNERS NANCY EVERITT STEVE WOOD HEOPS JIM LACKEY BAKER, DONELSON ENABLECOMP BRIAN FOX CONFIRMATION.COM ROB LAIRD MAYNARD COOPER & GALE 2019 ACTIVITY MAY JULY AUGUST SEPTEMBER NEW INVESTMENT FOLLOW ON FOLLOW ON FOLLOW ON $7M $11M $50M $10M SERIES B SERIES C SERIES B SERIES D SEPTEMBER OCTOBER OCTOBER NOVEMBER FOLLOW ON FOLLOW ON RECAPITALIZATION FOLLOW ON RECAPITALIZED BY: $20M $2.5M $32M SERIES B2 SERIES A3 SERIES D ACTIVE HOLDINGS SPONSORS UNDERWRITERS BUTLER SNOW HEOPS ENVISION HEALTHCARE HUB INTERNATIONAL HARBERT MANAGEMENT CORPORATION PINNACLE FINANCIAL PARTNERS PATRONS AYCO | A GOLDMAN SACHS COMPANY COUNCIL CAPITAL INFLAMMO PETRA CAPITAL PARTNERS BONE MCALLESTER NORTON DIVERSIFIED TRUST JONES LANG LASALLE RIVER CITIES CAPITAL FUNDS CADENCE BANK DONNELLEY FINANCIAL SOLUTIONS LIVE OAK BANK SANDBOX INDUSTRIES CAPSTAR BANK FIRSTBANK LLR PARTNERS SANTÉ VENTURES CIBC BANK US HERITAGE GROUP MONTREUX GROWTH PARTNERS SILICON VALLEY BANK NOTABLE EXITS APR 2013 OCT 2013 OCT 2013 NOV 2015 JULY 2016 SEPT 2016 ACQUIRED BY A JOINT VENTURE BETWEEN ACQUIRED BY ACQUIRED BY ACQUIRED BY ACQUIRED BY RECAPITALIZATION BY JULY 2017 SEPT 2017 OCT 2017 NOV 2017 JULY 2019 OCT 2019 RECAPITALIZATION BY ACQUIRED BY ACQUIRED BY RECAPITALIZATION BY ACQUIRED BY RECAPITALIZATION BY BUILDING CONNECTIONS BUILDING 1 1) In August, NCN and NHCC hosted our annual panel discussion. 2) NCN’s Annual Meeting and Reception (February) and 3) Fund Symposium (November) were well attended by local investors, entrepreneurs, and service providers. 2 3 3810 BEDFORD AVENUE, SUITE 110 NASHVILLECAPITAL.COM NASHVILLE, TN 37215 @NASHCAPNETWORK 615.454.3950.