DEAL 2019 IDAHO FLOW REPORT Brought To You By Deal Flow Opening Notes We are pleased to present the 2019 Idaho equity funds are coming to Idaho to Deal Flow Report. This is our sixth annual find new investment opportunities report, showcasing many of the companies in Idaho companies. that are starting, growing, and thriving in Idaho. Especially in a time when we are With over 154 deals and $4.42 billion of capital navigating new and unchartered territory, flow, 2019 was a big year for Idaho business we want to recognize the many capital and economic growth. The report confirms that providers, service organizations, Idaho continues to experience rapid growth and supporters of the Idaho and to be one of the best places in the country entrepreneurial ecosystem and to live and do business. highlight entrepreneurs and The Deal Flow Report presents capital innovators who make Idaho such flow throughout the state drawing attention a great place. Entrepreneurs to businesses, capital providers, and support who have successfully built and organizations. The data collected shows sold their business continue to the strength of the Idaho economy which is reinvest into the next generation of driving a demand for more talent and supports entrepreneurs and businesses. This increased capital investment. reinvestment, coupled with new In 2019, Idaho was once again the fastest capital providers, puts Idaho in a growing state in the country. Idaho’s businesses strong position to continue to grow and thrive. received increased attention and investment We are confident that Idaho will continue dollars from capital providers in Idaho and to grow and prosper as our community of beyond. 2019 was a particularly exciting year, innovative enterprises find opportunities to as StageDotO started raising capital for a $50 pivot, navigate and capitalize on a new and million venture fund, the first of its kind in continuously evolving environment. Idaho. More angel, venture capital and private Blake J. Hansen Alison G. Johnson Alturas Capital, LLC Holland & Hart LLP Deal Flow Co-Chair Deal Flow Co-Chair 2019 In Partnership With Printing Partner Table of Contents 2 Message from Governor Brad Little 3 Capital Connect Conference and 2019 Deal Flow Report Committee 5 Deal Flow Data Findings and Conclusions 13 Deal Flow Resource Articles 14 Capital Connecting 16 Trailhead 17 Boise Startup Week 18 VentureCapital.Org 19 StageDotO 20 MoFi 21 Stage Growth Capital 22 Galena Capital 23 VecturePoint Ventures 24 Public Offering 27 Pennent Health Highlight 29 Private Placement 35 indieDwell Highlight 45 Mergers and Acquisitions 51 Black Sage Highlight 58 Index Photo Provided by LOVEVERY Deal Found on Page | 36 ARTICLES 2019 Deal Flow Report Opening Remarks Dear Friends, It is an honor for me to introduce the 2019 Idaho Deal Flow Report, a publication we eagerly await every year because it spotlights many of the industries flourishing in Idaho and their investment partners. The report shows another strong year for capital investment in Idaho companies with private equity, mergers and acquisitions, and public offerings. I appreciate the Idaho Technology Council and all the volunteers and organizers for contributing to this important report. It is a resource that provides us insight into business activity, identifies where we excel, and where we can improve. As this report is being printed, we find ourselves in the middle of a global pandemic. The threat of coronavirus certainly has changed our lives, work, and finances temporarily. However, I am confident that the policies, strategies, and vigor that helped make Idaho one of the fastest growing states in the nation before COVID-19 will help us in recovering from it. With your help, we will rebound from this situation with enthusiasm and determination. I want to thank the business and technology community for your commitment to strengthening Idaho. With your help, we will continue to make Idaho the place where our children and grandchildren choose to stay. Sincerely, Brad Little Governor of Idaho 2 | Deal Flow Articles Capital Connect Conference and 2019 Deal Flow Report Committee Blake Hansen Christina Slaughter Nathan Turner Co-Chair, Alturas Capital Idaho Technology Council Visual Designer, Alturas Capital Alison Johnson Laura Squyres Adam Hurd Co-Chair, Holland & Hart, LLP Holland & Hart, LLP Alturas Capital Jay Larsen Lucas Henken Idaho Technology Council Alturas Capital Idaho Technology Council Executive Committee Paris Cole David Wali Marcus McDonald Shaunna Della Chair ,Truckstop.com Gardner United Heritage Insurance Simplot Amy Lientz George Mulhern Mark Willden Steve Meyer Vice Chair, Idaho National Lab. Cradlepoint Idaho Central Credit Union Intermax Networks Christopher Simboli Jason Huszar Melanie Rubocki Tim Garrigan Secretary, Parsons Behle & Latimer Idaho Power Perkins Coie The Garrigan Lyman Group Dave Pattee Jesse Ronnow James Haynes Tony Lima Treasurer, Deloitte Zions Bank Power Engineers Melaleuca Jay Larsen Jim Gasaway Reid Stephan Jeet Kumar President, ITC Kount St. Luke’s Health System In Time Tec Andy Binder Joel Poppen Rich Raimondi Von Hansen HP Micron Bishop Kelly Konexus Andy Scoggin Kelsie Gwin Rich Stuppy Albertsons Companies Intuit Kount Cory Vaughn Kristen Ruffing Sean Robbins Delta Dental AmerisourceBergen Regence BlueShield of Idaho Idaho Technology Council Board of Trustees Adam Guyton Brian Larsen Jay Reynolds Ron Teagarden PayneWest Insurance Stoel Rives Healthwise Verified First Adam Waldron Cameron Arial Jeff Leonnig Scott Schlange Farm Bureau Insurance City of Meridian CenturyLink KeyBank Alison Johnson Celynda Roach John Abreu Scott Snyder Holland & Hart Sparklight Portneuf Medical Center Idaho State University Amy Salerno Cheryl Charlton John Stiffler Sean Keithly COVR Idaho Digital Learning Academy Boise Cascade City of Boise Bert Glandon Chris Johnson Mark Wennstrom Stephen Cilley College of Westen Idaho Scentsy Saint Alphonsus Ataraxis Bert Roberts Chris Taylor Ken Birch Steve Finsko Sorenson Capital Fisher’s Technology Fiberpipe Hawley Troxell Bill Connors Doug Sayer Rick MacLennan Todd Schwarz Boise Chamber of Commerce Premier Technology North Idaho College College of Southern Idaho Blake Hansen Erin-Todd Hansen Rick Aman Ty Snyder Alturas Capital Intuit College of Eastern Idaho Involta Bob Lokken Harold Blackman Richard Ruiz Zach Olsen Entrepeneur Boise State University TechCU CodeWorks Boise Brad Ritts James Price Rob Weis University of Idaho Clearwater Analytics Bingham Memorial Hospital Deal Flow Committee’s & Trustees 2019 Idaho Deal Flow Report | 3 Idaho Continues to See Growth In July of 2019, Idaho was the fastest growing state in the nation at 2.1%. Two Idaho metropolitan areas were in the top ten in relative population growth. Coeur d’Alene metro grew by 2.784% while the Boise metro area was close behind with 2.783% growth. https://www.census.gov/newsroom/press-releases/2019/popest-nation.html Source(s) https://boisedev.com/news/2020/03/30/boise-idaho-growth-rate/ Boise, Idaho Deal Flow Data Findings & Conclusions Photo Provided by LUMINEYE Deal Found on Page | 37 DATA & Deal Count By Region* CONCLUSIONS NORTHERN 23 Total Deals Amount Bonner 5 $46.10M Boundry 1 Undisclosed Kootenai 17 $214.48M # of Deals by County 0 1-3 4-6 7+ NORTH CENTRAL North Central 5 Total Deals Amount Southeastern Idaho 3 $12.99M Latah 1 Undisclosed Southwestern Nez Perce 1 Undisclosed South Central Eastern EASTERN 14 Total Deals Amount Northern Bonneville 5 $15.96M Clark 1 $1.00M Lemhi 3 $48.88M Madison 4 $6.88M Teton 1 $0.19M SOUTHWESTERN 99 Total Deals Amount Ada 86 $3.85B Canyon 6 $146.40M Owyhee 4 $37.06M Payette 2 Undisclosed Valley 1 $19.90M SOUTH CENTRAL 9 Total Deals Amount Blaine 5 $11.64M Twin Falls 3 Undisclosed Jerome 1 Undisclosed SOUTHEASTERN 4 Total Deals Amount Bannock 3 $1.27M Power 1 Undisclosed 6 | Deal Flow Data Findings & Conclusions DATA & CONCLUSIONS 2019 Deal Flow Insights A closer look behind the curtain of equity deals here in Idaho for this year and decade. This Year environment is improving. The Technology/ Software industry did particularly well this year, 2019 was another strong year for equity deal increasing its share of deal count and volume in flow in Idaho. Total deal count was 154, above the 2019 to 38 and 25%, respectively. 10-year median of 143.5 deals per year. Most of the deal flow came from private placements and mergers & acquisitions. In fact, Idaho had only This Decade one public offering this year. This is in line with Since 2010, Idaho has recorded approximately national trends as more companies are choosing 1,400 known deals and $45B of deal flow. Given to remain privately owned. Over the last decade, that some transactions go unreported, these median private placement count has been 72.5 numbers likely underestimate both the total deals per year, and in 2019 private placement count and dollar volume of deals. count was 87 deals. Furthermore, median In our reported deal flow from the last decade, mergers & acquisitions count over the last ten 27% of deals by count occurred in the Materials years has been 65.5 deals per year and 2019 was & Resources sector and 21% in Technology/ consistent with 66 deals. Software. The remaining deal flow has come More than half of deals in 2019 involved from Consumer/Retail (16%), Healthcare companies that were founded within the past 10 (10%), Financial Services (9%), Other (9%), and years. Of reported deals, median deal size was Services (8%). While the greatest percentage approximately $1.2 million with 35%