Download the 2008 Venture Capital Report for the Cleveland Plus region to learn details of the 73 companies that recieved $259 million in capital last year.

1. the 2008
venture capital
report
the annual survey of venture investing activity
across the cleveland plus™ region of ohio

2. In 2008, more companies in the Cleveland Plus region received investment than in VENTURE CapiTal
aDViSORY TaSk fORCE
any of the past four years. In a year that will be remembered for the national financial and
Dorothy Baunach, NorTech
economic slowdown, this positive trend demonstrates that the Cleveland Plus region continues Tim Biro, Ohio Innovation Fund
its purposefully conceived role as a nationally significant center for innovation and growth. While Greg Blonder, Morgenthaler Ventures
Becca Braun, JumpStart Inc.
nationally there was a four percent decline in the number of investments in 2008, the Cleveland
Melford Carter, Ohio-Midwest Fund
Plus region actually experienced a five percent increase. It is this steady activity that leads us to Chris Coburn, Cleveland Clinic
Foundation
believe that our regional goal of ensuring that $1.2 billion of venture capital is raised by Cleveland
Paul Cohn, Fort Washington Capital
Plus area companies over five years (beginning in 2007) will be met. Completing the second year Partners
Mark Coticchia, Case Western
of this ambitious goal, companies have raised $577 million, or 48% of that five year goal. Reserve University
Lorelei Davis, Frantz Medical
Other highlights of this report include: Ventures
Michael Goldberg, Bridge Investment
• 73 companies received $259 million in investment capital. The dollar amount is a decline Fund, LP
from 2007, largely because of a few significant non-recurring later and growth stage William Grimberg, Consumer
Innovation Partners
investments. Jack Harley, JWH Group, Inc.
Steve Haynes, Glengary Ventures LLC
• 60 percent of the capital raised in 2008 was in the Healthcare sector, demonstrating this
Joe Hudson, OneEarth Capital
region’s status as a national center for healthcare innovation and entrepreneurship. James Ireland III, Early Stage
Partners, LP
• With 27 Healthcare venture firms now located in Ohio, the state is one of the top five states in Don Knechtges, GLIDE/Lorain County
Community College Fund
the nation in terms of Healthcare venture firms having offices established within its bounds. Ray Leach, JumpStart Inc.
Floyd D. Loop, M.D., Radius Ventures
• Cleantech, which consists of the Energy, Advanced Materials, and Environmental sectors,
Chris Mather, TechLift/North Coast
more than doubled the investment dollars from 2007 to 2008, leveraging the region’s Opportunities Technology Fund
Kevin McGinty, Peppertree Capital
strengths in materials-based sciences and manufacturing. Management, Inc.
Joe Michael, Fort Washington Capital
• Seed and early stage investment dollars increased by ten percent, demonstrating a steady Partners
pipeline of innovation and continuing development of the venture capital continuum. Bill Mulligan, Primus Capital Funds
Don Murfin, DCC Growth Fund
• 14 firms from outside the region made their first investment here in 2008. Jonathan Murray, Early Stage
Partners, LP
Along with these achievements, this report highlights the progress and celebrates the successes Clay Rankin, North Coast Angel Fund
Barry Rosenbaum, Akron
of companies and investors in the region in 2008. These stories demonstrate the great opportunity ARCHAngels
the Cleveland Plus region offers to investors at all stages of the venture capital continuum. Scott Roulston, Fairport Asset
Management, LLC
What kind of progress should we expect for 2009? While we remain concerned about the Charlie Schliebs, iNetworks
Bill Seelbach, The Riverside
significant national slowdown of the IPO market, and the overall near- and mid-term economic Company
outlook, where crisis lies, opportunity abounds. Entrepreneurs and investors specialize in taking Baiju Shah, BioEnterprise
Corporation
advantage of opportunities (such as the strong market for strategic aquisitions of entrepreneurial Chris Sklarin, Chrysalis Ventures
companies), and the Cleveland Plus region is no exception, offering continuing opportunities for Jon Snyder, Arboretum Ventures
Karen Spilizewski, RiverVest Ventures
successful innovation and growth.
Bill Stuart, Portal Capital
Mike Stubler, Draper Triangle
Ventures
Bill Trainor, Mutual Capital Partners
Dorothy Baunach James Ireland III
Eric Von Hendrix, MWV Pinnacle
President and Managing Director,
Capital Fund, LP
Chief Executive Officer, Early Stage Partners, LP
NorTech Chair, NorTech Venture Capital Brad Whitehead, Fund for Our
Economic Future
Advisory Task Force
Bob Williams, Roulston Ventures
Neil Wyant, Everett Partners, LTD.
Wayne Zeman, MAGNET
Ray Leach Baiju Shah
Chief Executive Officer, President,
JumpStart Inc. BioEnterprise

3. More Northeast Ohio companies received investment
in 2008 than in any of the past four years.
Cleveland Area Venture Investments
$ Millions Companies Financed
124 260 157 318 259 42 56 51 71 73
2004 2005 2006 2007 2008 2004 2005 2006 2007 2008
Source: Dow Jones VentureWire; Venture Source; Private Raise, LLC; BioEnterprise; JumpStart Inc.; Ohio Department of Development; TITC
Investments by Stage (2004-2008) Building Pipeline
Number of Companies by Stage of Financing
15 14
SEED EARLy GROWTH
1 8
8 27 29
GROWTH
84 438 600 22 16
$ MilliONS
EARLy
19
# Of DEalS 164 122 47
0.51 3.59 12.77 26 27 29 33
aVg. DEal SizE
SEED 22
2004 2005 2006 2007 2008
Investments by Sector
Healthcare Services, Medical Agriculture
Information Systems, & Other
Biopharmaceuticals Business & Healthcare Services,
Consumer Products Medical Information
Systems, & Other Agriculture
& Services Biopharmaceuticals
NUMBER OF EqUITy INVESTMENTS
Business
INVESTMENTS By By SECTOR & Consumer
Medical Information Products &
SECTOR [2004-2008] Devices & Technology [$ Millions 2004-2008] Services
Equipment Medical Devices
& Equipment Information
Advanced Technology
Specialty Energy
Materials &
Chemicals Environmental Energy
Environmental
Advanced Specialty Materials & Chemicals
Healthcare Healthcare
n 33 Healthcare Services, Cleantech n 68 information n $249 Healthcare Services, Cleantech n $148 information
Medical information n 38 advanced Technology Medical information n $48 advanced Technology
Systems, & Other Specialty Materials Systems, & Other Specialty Materials n $147 Business &
n 55 Business &
& Chemicals & Chemicals Consumer products &
n 28 Biopharmaceuticals Consumer products & n $228 Biopharmaceuticals
n 17 Energy Services n $49 Energy Services
n 81 Medical Devices & n $247 Medical Devices &
Equipment n 5 Environmental n 1 agriculture Equipment n $3 Environmental n $.32 agriculture

4. Incentives for Investors
X
G The Ohio Capital Fund, supported by the State
of Ohio, has committed over $98 million to 18 Opportunity Taken
venture funds to date. Eight funds managing
over $600 million have taken advantage of Funds under management
Ohio Capital fund incentives to establish a new of firms taking advantage
presence in Ohio. of Ohio Capital Fund
G The Ohio Midwest Fund, comprised of $102 incentives to establish
million from OPERS and Credit Suisse, has now a new Ohio presence
committed $72 million to 12 funds.
G The third and newest fund, the NEO Capital Fund,
will commit capital to venture capital firms that
have or establish a presence in Northeast Ohio. $255 $330 $624
G The Ohio Technology Investment Tax Credit
program allows individual investors in qualified
technology-based Ohio companies to reduce their
X 2006 2007
Source: Ohio Capital Fund
2008
X
taxes by 25–35 percent of the amount invested.
Featured Deals
Tursiop Technologies Ovation polymers partsSource Brulant
Tursiop Technologies is Ovation Polymers, based in Medina, Founded in 2001, PartsSource is Brulant, a digital marketing
commercializing a novel magnetic Ohio, is at the leading-edge of the nation’s only alternative parts firm, has been growing steadily
resonance imaging (MRI) coil that polymer compound innovation. The aggregator for hospital equipment since it was founded in 1989.
will greatly increase MRI resolution, company’s breakthrough polymer parts. The company supports Brulant
allowing clinicians to capture products are used in electronics, over 2,500 different makes and provides
more detailed images or use less optical technologies, medical models of hospital equipment and marketing
expensive or smaller MRI machines devices, energy production products has automated the process for programs EXIT X
for the same results. Led by CEO such as batteries and fuel cells, ordering them through an online for its
Brad Goldstein, who brings 20 years and products for the wind and interface, saving its customers clients
experience in commercializing solar industries. By creating significant time and that—beyond
advanced technologies, the alliances with their clients money. With a people- being user friendly and
company raised its $1.4 million seed and selecting forward- oriented, continuous technologically savvy—are
round for continued research and thinking polymer GROWTH X improvement culture differentiated by their
development from local investors, industry partners, the forged by serial stringent focus on being
RMS Management and JumpStart company has continued entrepreneur, CEO insight-driven and focused
Inc. Soon after, Goldstein and his to grow since Ray Dalton, the company on business results. In 2008,
team received FDA certification it was founded shows a commitment to Brulant was acquired by
on their initial design and are in 2004 by 30-year growth at all levels. A winner of Rosetta out of Princeton, New
currently continuing down the plastic veteran, numerous awards for growth, Jersey, with the resulting
path to commercialization.
EARLy X Asis Banerjie. customer service, training and company enjoying status as
Banerjie and his its commitment to humanitarian the largest and most profitable
team have raised efforts, PartsSource is a true independent interactive
over $9 million in success story. In 2008, PartsSource agency in the country, with
financing to-date from Early Stage raised a $50 million investment 30% growth in 2008.
SEED X Partners of Cleveland, Ohio and led by Polaris Venture Partners
other investors, including a Series of Boston and joined by Primus
B round this year. Capital Funds of Cleveland.

5. National Investment EXTERNAL EqUITy INVESTORS IN CLEVELAND PLUS AREA COMPANIES [2004-2008]
MiDwEST (OUTSiDE NEO) OUTSiDE U.S.
Advantage Capital Partners *08 Aberne Limited *08
Apex Ventures
BOSTON
Beecken Petty
Ampersand Ventures Fletcher Spaght
BioOhio Ventures *08
Boston Scientific Corp.
Blue Chip Venture Company
M/C Venture Partners *08
CID Equity Capital Resource Partners
Norwich Ventures
Entrepreneurs Fund Eastward Capital
Polaris Ventures
Hopen Therapeutics *08 Fidelity BioSciences *08
RA Capital Management
Hopewell Ventures
Medtronic
NCT Private Equity Fund NEw YORk/EaST COaST
Orix Capital Aisling Capital *08 Midsummer Capital
OTAF Amphion Innovations *08 MPM BioEquities
Southwest Michigan First Life Behrman Capital mTerra Ventures LLC
Science Fund *08
Brown Brothers New Enterprise
Talisman Capital Harriman & Co. Associates
Thomas McNerney Partners CMG Capital Oak Investment Partners
Triathlon Medical Ventures SOUTH
Columbia Capital OrbiMed Advisors
Accipiter Capital
Management LLC Cowen Healthcare Psilos Group
wEST COaST Domain Associates Radius Ventures
Cordova Ventures
Angiotech Advance Panorama Capital
ExOxEmis GMG Capital RLS Investments *08
Chevron Technology Ventures Parker Price Venture Capital
MB Ventures Greycroft Partners StarVest Partners
Compass Group Roberts Communications
Network Pappas Ventures Halyard Capital Sunrise Equity
DW Healthcare Partners
Sierra Ventures River Associates Investor Growth Capital Toucan Capital Corp. *08
Hambrecht & quist
SV Life Sciences Symark Johnson & Johnson Welsh Carson
Intel Capital *08
Vivo Ventures Texas Pacific Life Sciences Capital *08
Kearny Venture Partners *08
Western Technology LSKW Investments
Morgenthaler Ventures
Palo Alto Investors
*08= FIRST INVESTMENT IN NORTHEAST OHIO IN ‘08
Ohio Venture, Angel, Seed & Pre-Seed Funds
iNVESTMENT CapiTal fUNDS Isabella Capital Second Generation Ltd. SEED & pRE-SEED
Adena Ventures Key Principal Partners SunBridge Partners iNVESTMENT fUNDS
Arboretum Ventures *08 Luxemburg Capital Talisman Capital Blue Chip Validation Fund
Athenian Venture Partners Max-Ventures Triathlon Medical Venture Partners Case Technology Ventures
Blue Chip Venture Company Morgenthaler Ventures Walnut Capital Partners Cincinnati Children’s Tomorrow
Fund
Bridge Investment Fund Mutual Capital Partners Xgen LTD
Cincytechusa
Charter Life Sciences MWV Pinnacle Capital Fund Zapis Capital Group LLC
Cleveland Clinic Innovations
Chrysalis Ventures Nationwide Mutual Capital
aNgEl NETwORkS & fUNDS Flashline Partners LP *08
CID Capital NCIC Capital Fund
Akron ARCHAngel Network Glengary Ventures
Consumer Innovation Partners NCT Ventures
C-Cap JumpStart Inc.
Crystal Ventures Oakwood Medical Investors
Clarion Capital Lorain County Community College
Development Capital Ohio Innovation Fund Innovation Fund
CoreNetwork
Draper Triangle Ventures Peppertree Capital Management Miami Valley Venture Fund
Custer Capital
Early Stage Partners Primus Capital Funds Rocket Ventures
Findaway Ventures
Everett Partners Radius Ventures Southern Ohio Creates Companies
Growth Strategies Group
Fletcher Spaght Ventures Reservoir Venture Partners TechColumbus
North Coast Angel Fund
Frantz Medical Ventures River Cities Capital Funds
Ohio TechAngel Fund
Hercules Technology Growth Capital Riverside Capital Microcap Fund
queen City Angels
iNetworks RiverVest Ventures
RMS Capital
Roulston Ventures
Sycamore Partners
*08= NEW OFFICE IN OHIO IN ‘08

6. Companies That Have Raised Capital [2004-2008]
iNfORMaTiON Think-a-Move, Ltd. Turning Technologies Interscopic Analysis
Cleantech
TECHNOlOgY TOA Technologies Victory Solutions Interventional Imaging
ARDC aDVaNCED SpECialTY
Unitask Visual Edge Technology Lifeline Screening
AVE Intervision MaTERialS & CHEMiCalS
Vox Mobile m2m Imaging Corp.
Axentis HEalTHCaRE 6062 Holdings
Workflow.com MDG Medical
Ayalogic AcelleRX Therapeutics Inc. AMTI
yeboTV MemberHealth
Banyan Technology American Safety & Health Aria Analytics
Institute Merlot OrthopediX
BlueBridge Networks BUSiNESS & CONSUMER Blue Spark Technologies
AnalizaDx NDI Medical
BSK Live pRODUCTS & SERViCES Carbolytic Materials
Accessmount Aris Teleradiology Systems NeoMed
Clear Image Technology Helios Coatings
Aerodynamic Trailer Arteriocyte NextMed Systems
ComSense Technology, Inc. MemPro Ceramics
Amish Naturals Athersys Ogenix Corporation
CutterCroix LLC
Technology Management AxioMed Spine OrthoHelix MesoCoat, Inc.
DimpleDough Surgical Designs
BDC Management Group CardioInsight Technologies MIMFlow Technologies
DIy Real Estate Solutions LLC PartsSource LLC
Cell Targeting Inc. Nanomimetics
Embedded Planet Cleveland Unlimited, Inc. PeriTec BioSystems
Cervilenz Ovation Polymers
Employ Media Cohesant PrognostiX
ChanTest RSP Tooling
Everstream Collaborent ProPractica
Clear Catheter Systems Stanton Advanced
Flashline CoupAd Ricerca Ceramics
Cleveland BioLabs
FLX Micro DMI Manufacturing, Inc. Roscoe Medical Stratum Energy Systems
CleveX
Myriad Health Embrace Pet Insurance Simbionix Trivium Technologies
Cone Instruments
I2C Technologies Fire-Dex Inc. SpineMatrix
Copernicus Therapeutics
InSet Systems Symphony Medical ENERgY
Gauntlet Technology CornerStone Medical
Systems Arisdyne Systems
Inspherion Synapse Biomedical
Critisense Contained Energy
Inspiron Hartville Group Syncro Medical
CSF Therapeutics Energy Focus
IqS HF Food Technologies Telerad Express
Early Sense Five Star Technologies
Knotice InnoDesk Thermedx
Endotronix Greenfield
LogiSync Insurance.com Tolera Therapeutics
Franklin & Seidelmann Light Resonance
Monarch Teaching Ladies Who Launch Subspeciality Radiology Transcutaneous
Technologies
Technologies Learning Horizons Inc. Technologies
Freedom Meditech, Inc. Ocean Energy Systems
NCRx Optical Nine Iron Innovations Trek Diagnostics
Fused Multimodality reXorce Thermionics Inc.
quickPayNet NineSigma Imaging Tursiop Technologies
Wireless Environment
Northcoast PCS PetsDx Ganeden Biotech Vascular Biogenics
One Source Technologies Pfingsten Publishing Great Lakes Vasolux Microsystems ENViRONMENTal
PC On Call Inc. Pharmaceuticals ViewRay MAR Systems
Predictive Services
PsiBase Icon Interventional WholeHealth Management MORK Process
PsyMax
Sagequest Imadent within3 Polyflow
Stack Media
SamePage Solutions Imalux Sorbent Technologies
Teraphysics
Improvita Health agRiCUlTURE
Sypherlink Tooling University Products Delta Plant
Telisys Inc. Treatment Online IntElect
Private Investments in Public Equities (PIPES) were included in cases where it appeared that venture investors were involved.
Special thanks to the Fund for Our Economic Future
www.jumpstartinc.org www.nortech.org www.bioenterprise.com for underwriting this report.
www.futurefundneo.org