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VentureDNA Capital Advisors

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Page 1: VentureDNA Capital Advisors
Page 2: VentureDNA Capital Advisors

Overview 2016

FIRM INTRODUCTION

For more information, please contact:

Stewart Dixon, Managing Partner Bill White, Managing Partner Aziz Lalljee, Managing Director

o. 847.604.9400 x 701 o. 847.604.9400 x 703 o. 847.604.9400 x 708

m. 312.497.8995 m. 312.961.5909 m. 845.325.6368

[email protected] [email protected] [email protected]

All information contained herein is for informational purposes only. Recipients agree that they will keep confidential all information contained herein not already in the public domain and will use this information solely for the purpose of evaluating a possible investment. Acceptance of this document constitutes an agreement to be bound by the foregoing terms. This is neither a solicitation to offer investment advice or services, nor an offer to sell to any person, nor a solicitation to any person to buy securities in any state where to do so would be unlawful or to any person who is not an “accredited investor” as defined in the Securities Act of 1933, as amended (“Securities Act”). As a private placement under the Securities Act, neither the offering nor the information provided with respect to the investment will be registered, reviewed or approved by the Securities and Exchange Commission or any state securities commission. This document is not a complete summary of the potential investment or the risks involved. An investment will involve significant risks and lack of liquidity characteristics of the potential investment. Past results are no guarantee of future results and no representation is made that a client, partner or investor will or is likely to achieve results that are similar to those described. An investor should consider VentureDNA Capital Advisor’s investment objectives, risks, and charges and expenses carefully before investing.

Page 3: VentureDNA Capital Advisors

OVERVIEW

Who We Are

Seasoned technologists, strategists, and operators advising and investing in visionary startups

Target Criteria

•  Early-stage capital: $2,000,000 to $10,000,000

•  Disruptive technology

•  Opportunity to back or attract talented management

•  Large addressable market opportunity, sector growth, and participation in sustainable trends

•  Capable of reaching significant scale while consuming limited amounts of capital

•  Seek founders with innovative approaches to lowering the cost of product development and distribution

Approach

•  Use operating partners and internal expertise to assist in new deal review, due diligence, interim management, and portfolio management

•  Collaborate with management to: -  Develop efficient operations; encourage metric/

data driven culture; rely on customer feedback to learn and grow

-  Improve bench strength within senior management; build an experienced and influential Board of Directors and, if applicable, Advisory Board

-  Develop a lean and business model -  Focus on strategic planning and agile capital

allocation -  Leverage technology expertise -  Attract and allocate capital as a flexible,

independent sponsor

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Chicago-based independent sponsor Focused on early- and mid-stage companies

Page 4: VentureDNA Capital Advisors

FIRM DEVELOPMENT

Our goal is to build long term, multi-faceted partnerships for strategic growth

Our Strategy

•  Focus on Underserved Investment Size and Company Stage -  Invest $2 - $10M in Series A-stage companies -  Target superior risk-return profile between Seed and Series

B / Lower Middle Market •  Leverage Team Expertise

-  Bring deep pedigree in mobile technology, IT, medical devices, software, and media to target opportunities

•  Mitigating Risk and Realizing Returns -  Focus on large addressable markets, high inherent returns,

and participation in technology sector trends -  Improve client growth and inherent returns by deploying

Capital Advisory Resources to partners and strengthening teams with industry executives/operators

•  Financial Flexibility -  Build a leading investment platform using the independent

sponsor investment structure

Our Success Levers

•  Develop our brand, infrastructure, and talent for long term growth

•  Attract, execute, and manage high quality investment opportunities and capital as an independent sponsor

•  Build our investment track record and establish deep partnerships

Our Priorities

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•  Substantial Financial and Technology Expertise -  Stewart Dixon: Media and Technology Sales Executive at

ABC news, Chicago Tribune, and Motorola

-  Bill White: Chief Investment Officer. Over thirty years in finance and private investments

-  Stuart Volkow: Over ten years as technology consultant and internet start up advisor

•  Experienced Advisory Board -  Rocky Dixon: Endeavor Capital and Earl Kinship Capital

Corporation -  Peter Smith: Baxter executive, co-founder of Medmark and

CorSolutions

•  Ability to attract talented, passionate people both to our portfolio companies and to VentureDNA

•  Deep, relevant relationships that open doors -  Investment banks and intermediaries -  Institutional investors -  Family offices -  Angel investors -  Lending community -  Third Party diligence providers and domain experts -  Strategy and improvement resources -  Industry executives/operators

Page 5: VentureDNA Capital Advisors

FIRM DEVELOPMENT (continued)

Over the past eighteen months, we’ve built a strong foundation for growth and success

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•  Currently seeing approximately 100-200 target investment opportunities per year

•  Established the VentureDNA brand in order to increase the quality and quantity of deal flow

•  Close ties to 1871, Catapult, Matter, and other major Chicago-based incubators/accelerators

•  Business plan review •  Create executive summary and investor decks •  Formulate financial models and projections •  Introduce legal services; subscription agreements, operating

agreements, disclosure documents •  Offer high value business management advice:

-  Define target market -  Develop or refine business model -  Develop marketing strategy -  Identify technology needs and develop strategy accordingly

Capital Advisory Resources For Client

•  Institutional investors -  Ordinarily take lead investor role in funding rounds -  Strong relationships with various institutions nationwide, particularly in

the Chicago area •  Family Offices

-  25+ relationships ranging from $50mm to $1b in AUM •  Angel Investors

-  Personal and professional networks angels and super-angels

Diverse Investor Relationships •  Sourcing and evaluating potential deals •  Preparing and negotiating term sheets and letters of

intent •  Arranging equity sponsorship for investment •  Securing debt financing necessary for investment •  Organizing investment vehicle (LLC) into which capital is

invested •  Coordinating closing of investment •  Recruiting a management team to run company

following investment (as necessary) •  Providing ongoing strategic, financial, and business

development support to management team and equity sponsors

•  Vigorously protecting and furthering the interest of investors through active board participation

Value for Investors

Deal Flow

Page 6: VentureDNA Capital Advisors

INVESTMENT STRATEGY

Early Stage Focus

Disruptive Technology

Leverage Partner And Advisor

Network

Maximize Value at Exit

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•  Target early stage investments in companies with significant growth potential •  Raise $2,000,000 to $10,000,000 for Seed or Series A Financing Rounds

Deal Flow

Initial Screening

Due Diligence

Submit Offer

Deeper DD with Investors

Closing

Investment Monitoring

Exit

•  Internal expertise in multiple industries including digital media, mobile solutions, consumer products, clean-tech, big data, life sciences, and financial technology

•  We look for platforms that solve large existing problems in these and allied categories

•  Guide early-stage companies through subsequent rounds of funding and to maximize value for investors •  Boost innovation; help partners to continue developing core products, services, and franchise value that will attract

strategic interest

•  Use firm’s professional and personal network for origination, due diligence, fundraising, and portfolio management •  Our network of deeply influential industry leaders provides valuable introductions for clients

Page 7: VentureDNA Capital Advisors

MANAGEMENT TEAM

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Stewart Dixon Stuart Volkow

Stewart is co-Founder and Managing Partner of VentureDNA Capital Advisors. An accomplished executive leader with a record of successes, Stewart manages the firm’s engagement portfolio as well as the day-to-day operations of the business. Prior to forming VentureDNA, Dixon drove sales in the media and technology industries for well-established brands including ABC News, The Chicago Tribune and Motorola. His proven ability to secure new business and penetrate domestic and foreign markets by identifying prospects and creating strong partnerships allowed these businesses to realize immediate growth and success. Dixon is skilled in directing cross-functional teams while providing quality services to clients in time-sensitive environments. Dixon also spent 10 years in Los Angeles developing new technology methodologies for the entertainment industry. This experience allowed him to serve on the technology leadership boards at the American Film Institute and the Academy of Television Arts and Sciences.

Stuart is VentureDNA Capital Advisor’s Chief Strategist. Stuart has over a decade of experience as a digital media strategist, Internet startup advisor, and trans-media producer. He has worked as a creative executive in feature films, a television producer, a business analyst, and a software development project manager for applications including music search and distribution, on-demand video, a machine learning platform, games and a pre-wikipedia interactive encyclopedia for the United Nations. In the government sector he has been a consultant to DARPA and the ODNI. Mr. Volkow is an Instructor at the UCLA Extension Department of the Arts and Entertainment Studies, in addition to teaching courses for the Office of Custom Program. He frequently speaks internationally and writes on Internet and related technologies.

Bill White manages all aspects of investment strategy as well as the management of VentureDNA’s overall firm portfolio as Managing Partner. A trusted financial advisor and portfolio management tactician, Bill has a demonstrated record of delivering accretive earnings, ROI and value in complex business, transactional and investment deals in early stage, growth and restructuring environments. As former Executive VP / Chief Investment Officer of Lurie Investments and as former Managing Director for Sam Zell’s Equity Group Investments, Bill has advised family offices, boards of directors, c-suite executives and PE/VC partners engaged in deal development, turnarounds, and growth and exit strategies across the consumer products, healthcare, technology, telecom, business services and manufacturing industries. Over the course of his tenures at Lurie and Equity Group, Bill managed more than 30 portfolio companies – raising venture funding and growth capital of up to $2B and completing IPOs and M&A exits.

Bill White

Page 8: VentureDNA Capital Advisors

PARTNERS

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Aziz Lalljee Kirk Zafirovski Aziz Lalljee is VentureDNA’s Managing Director, bringing his passion for finding, growing and financing great ideas and teams to the firm’s investment portfolio. Aziz has sourced, vetted and valued growth and mezzanine investments in the food and beverage, retail and defense sectors for Tamarix Capital. Prior to Tamarix, Aziz was with Navigant Consulting, imparting economic, financial and accounting guidance to litigated, arbitrated and public-interest matters. Aziz is an alumnus of the University of Chicago Booth School of Business where he was a Stewart J. Foley Merit Scholar and earned his MBA (with honors) with concentrations in Entrepreneurship, Analytical Finance and Strategic Management. Aziz completed his undergraduate work at the University of Pennsylvania – studying as a Joseph Wharton Scholar and earning both a BS in Economics and a BA in History. Originally from Pune, India and the New York City area, Aziz is fluent in Hindi, Urdu and Marathi.

Kirk Zafirovski serves as a Business Development and Marketing Analyst for VentureDNA, and his diverse background – both personally and professionally – provides a different perspective for the firm’s investment portfolio. Kirk’s primary expertise comes from the sports business world where he spent 4+ years working at one of the world’s largest entertainment and sports agencies, Wasserman Media Group. During his time at Wasserman Kirk was exposed to four separate lines of business – Global Media Rights, Client Golf Group, Consulting, and Business Development. Kirk gained valuable experience in the healthcare space spending the summer at DJO Global and helping to develop sports marketing strategy for their newly formed Consumer business. Kirk is an alumnus of Bucknell University where he received his BA in Economics along with minors in Religion and Creative Writing. He is currently an MBA candidate at Duke’s Fuqua School of Business class of 2016, where he is focused on Marketing, Entrepreneurship, and Data Analytics.

Page 9: VentureDNA Capital Advisors

ADVISORY BOARD

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Rocky Dixon is Managing Director and co-founder of Endeavour Capital, a Portland, OR based private equity firm. Since co-founding the firm in 1991, he has worked with companies in the retail, business services and manufacturing industries. Rocky serves on the board of the Bi-Mart Corporation and was previously a D i r e c t o r o f D e s c h u t e s R i v e r Broadcasting, Lone Star Plywood and Door and Michaels of Oregon. In addition to his roles on Endeavour boards, Rocky also serves on the boards El Aero Services, Adventure Funds, and Beef Northwest. He is also the Chairman of the Kinship Trust Company and sits on the board of O H S U . P r i o r t o c o - f o u n d i n g Endeavour, Rocky spent six years as the West Coast Director for Earl Kinship Capital, a diversified equity investment company that specialized in real estate, technology startups, and oil and gas exploration. In 1983, he co-founded Support Technologies, Inc., a computer-test equipment company.

Peter Smith started his healthcare career at Baxter International, a diversified medical products and services company, from 1978-1990. While at Baxter, Mr. Smith served as Chief Operating Officer of Baxter’s Japanese Subsidiary located in Tokyo. Subsequently, he was the President of Baxter’s Caremark Division. In 1991, Mr. Smith founded and led CorSolutions, Inc., which became a leading national disease management company. CorSolutions was sold in 2005 to Matria Healthcare for an IRR of 25%. Mr. Smith also founded and led Medmark, Inc., a leading specialty pharmaceutical distribution company which was also sold in 2006 to Walgreens for an IRR of 45%. During his career, Mr. Smith has served as a director of a number of both public and private healthcare companies. He currently serves as chairman of E-O2 Concepts, Inc., in addition to holding board positions for Meals to Heal, Inc., Biologictx, and Atherotech, Inc. Peter received his BA from Princeton University and his MBA from the University of Chicago.

Michael Shea brings over 25 years of broad business and consulting expertise to the VentureDNA Advisory Board. Michael is the President and Founder of Phoenix Strategic Advisors, and was previously the Co-Founder and President of Griffin Strategic Advisors, a growth strategy and operations oriented senior advisory consulting firm that was successfully sold to Acosta Sales and Marketing in 2012. While at Acosta, Michael was the EVP of AMG Strategic Advisors and Head of Advanced Analytics. Prior to that, Michael held senior consulting positions at Huron Consulting and AT Kearney. Michael also did scientific consulting and project management while at Geosyntec Consultants and the Battelle Memorial Institute Michael earned his PhD, from the University of Chicago in Nuclear Chemistry, and holds a Certificate in Business Administration from the Stephen M. Ross School of Business at the University of Michigan.