2015-11-12T22:00:24-06:00 2014-12-31 350921680 CROWE HORWATH LLP 3815 River Crossing Parkway Suite 300 Indianapolis IN 462400977 990 2014-01-01 274118692 Elevate Ventures Inc ELEV 3172520258 50 East 91st St Indianapolis IN 46240 Christopher LaMothe CHIEF EXECUTIVE OFFICER 2015-11-12 true RACHEL SPURLOCK P00520729 3175698989 2014 2016-04-25 22:37:26Z Christopher LaMothe 50 East 91st St Indianapolis IN 46240 3127391 false X www.elevateventures.com X 2010 IN Elevate Ventures is a private venture development organization that nurtures and develops emerging and existing high-potential businesses into high-performing Indiana-based companies, with a focus on the technology, life sciences, and advanced manufacturing sectors. 6 4 15 4 0 0 549333 240250 3394922 2879729 921 5279 2516 2133 3947692 3127391 0 218000 0 0 1749028 2006139 0 0 14134 1302747 1277111 3051775 3501250 895917 -373859 4026409 3397850 335914 346762 3690495 3051088 Elevate Ventures nurtures and develops emerging and existing high-potential businesses into high-performing, Indiana-based companies. We accomplish this by providing rigorous business analysis and robust advisory services that connect companies with the resources they need to succeed long-term. false false 2674172 218000 2879729 Direct Investment and Advisory Services Elevate employs Entrepreneurs-in-Residence (EIR) throughout the state to provide direct support and advisory services to Indiana companies. The EIR's work directly with companies to provide mentorship, service and advisory referrals, and introductions to capital sources. EIRs connect companies to potential business partners, service providers, investors, and talent. Elevate EIRs participated in 3 "Startup Weekend" events, mentored teams through Notre Dame's ESTEEM Lean Launchpad program and Business Plan Competition, presented Lean Startup methodology in classes, and established regional investor networks. Elevate launched the Northwest Indiana Tech Foundry, a technology-sector business accelerator in Valparaiso. The first cohort included 6 Indiana technology startups. EIRs provided direct advisory consulting to over 360 companies helping them develop their director and advisory boards, hire management teams, connect with service providers, and a variety of other mentoring activities. EIRs also refer companies into other programs, including Elevate's Direct Investment and Economic Gardening programs. Direct Advisory Services are operated through the Quickstart and Regional Entrepreneurial Action Plan (REAP) Programs. Funding for the REAP and Quickstart programs come from a combination of grants from the Indiana Economic Development Corporation and direct contributions from stakeholders in the regions in which these programs operate. Elevate's EIRs also present companies to regional advisory boards who review and approve High-Potential Startup Grants, a program that awards small grants of $5-25K to high-potential start-ups to enable attainment of measurable outcomes or milestones. In 2014, a total of $223,000 was awarded to a total of 12 companies. Elevate's Economic Gardening program is a 3-step consulting platform that guides and supports second-stage companies to help them achieve high growth at no cost to the company. It allows such companies to access expert leadership, market research, and implementation consulting services that they may not otherwise be able to obtain. Second-stage companies have between $750K-$25M in revenue and between 5-100 employees. Most of the companies served had under $5M in revenue and a median company size of 16 employees. Elevate contracts with 3 vendors to provide the Economic Gardening program to second-stage companies. The value of the consulting averages approximately $5K per company with a maximum cost of $8K. This program currently operates in Northwest, North Central, Northeast and Southwest Indiana. In 2014, 71 companies completed the program, and 62 companies were enrolled during the year. Consulting services include market research services from the Edward Lowe Foundation, leadership assessment services from LeaderMarks, and Implementation services from AutoSolve. Edward Lowe Foundation provides up to 36 hours of consulting services from a team of research specialists specializing in strategic market research, geographic information systems, search engine optimization and social media marketing. Consultants identify market trends, potential competitors and unknown resources, provide geographic data for targeted marketing, increase search engine visibility and web traffic, analyze the competitive marketing landscape, and advise on core strategies and business models. LeaderMarks provides Leadership Assessment of the company's CEO and management team. This is an optional additional service available to companies enrolled in Elevate's Economic Gardening program. On completion of the Edward Lowe Foundation's market research consulting, companies may opt-in to receive up to 20 hours of implementation consulting from AutoSolve. AutoSolve helps companies develop and implement plans to utilize the market research data from the Edward Lowe Foundation to increase revenue and grow their business. The AutoSolve consulting services were added to the program based on feedback from the first 3 years of the program. As a result of adding the expanded service, many companies who completed the program in 2011-2013 reactivated to take advantage of this new services. Those companies were counted in 2014 results. Direct investment: Elevate Ventures was founded in 2011 to assist the Indiana Economic Development Corporation (IEDC) manage a portfolio of direct capital investments in high-potential Indiana companies and to make capital more accessible to Indiana entrepreneurs. Through a subsidiary partnership with the IEDC, Elevate Manages 4 investment funds, the Indiana 21st Century Fund, Indiana Angel Network Fund, Indiana High-Growth Fund, and the Indiana Seed Fund Holdings. The separately reportable partnership holds the investment capital and portfolio income/expense and reports earnings via the IRS Form 1065 U.S. Return of Partnership Income. Elevate receives funding from the IEDC to manage these investment funds through a Professional Services Agreement and a Management Fee arrangement for the various funds. In 2014, Elevate completed 24 investment transactions with a total of nearly $8.3M invested, leveraging $13M in co-investment from private investors. Of those 24 transactions, 16 were new investments and 6 were follow-on funding for existing portfolio companies. Since inception, Elevate invested over $29M in 47 companies, 5 of which have exited successfully. These investments leveraged an additional $190M in private dollars, resulting in a 6.41 leverage ratio. Annual payroll of the portfolio is nearly $50M, employing 746 people with average salaries of nearly $66K. As part of Elevate's efforts to build relationships between capital sources and companies, Elevate sponsored the Forbes Innovation Summit, the 6th Annual Innovation Showcase, 15th Annual TechPoint Mira Awards, and the Fort Wayne Innovation Awards. Elevated hosted 2 Investor Roadshow events in Chicago and Indianapolis in order to facilitate one-on-one introductions of Indiana companies with potential investors. Between 17 and 19 venture firms and 18 to 24 Indiana companies attended each of the 2 events and 169 one-on-one meetings took place. Elevate, in partnership with IEDC, through the 21st Century Research & Technology Fund provides Phase I proposals with a support letter committing $0.50 towards every federal dollar awarded, up to $50K in state matching per federal award with a lifetime maximum of $150K in state matching per company, including affiliates. In 2014, 24 state matching awards to 21 Indiana companies were qualified, totaling $1.165M in state matching dollars against $4.367M in federal grants. 2674172 true true false false false false false false false true true false false false true true false false false false false false false false false false true false true false false false false false false false false false false false false true true true true false false true 17 0 true 15 true false false false false false false false false false false X 6 4 false false true false false false false true false false true true true true true false true false false IN X Barbara Uggen-Davis 3172520258 50 East 91st St Ste 213 Indianapolis IN 46240 John Schneider Board Chair 1.00 X X 0 0 0 Robert Myer Secretary 20.00 X X 74111 0 0 Kip Tom Board Member 1.00 X 0 0 0 Mike Davidson Board Member 1.00 X 0 0 0 Phillip Lodato Board Member and General Counsel 50.00 X 140097 0 5094 Steve Martin Board Member 1.00 X 0 0 0 Stephen Hourigan Chief Executive Officer 50.00 X 245990 0 26708 Barbara Uggen-Davis Chief Financial Officer 50.00 X 103256 0 15195 Ting Gootee Chief Investment Officer 50.00 X 156956 0 21766 Robert Clark Entrepreneur-in-Residence 40.00 X 140134 0 15125 Dan Owen Entrepreneur-in-Residence 40.00 X 115535 0 15453 Kregg Kiel Entrepreneur-in-Residence 40.00 X 113343 0 7103 Kelly Schwedland Entrepreneur-in-Residence 40.00 X 108386 0 19951 Karen Goldner Program Director 40.00 X 106810 0 2888 1304618 0 129283 9 false true false AUTOSOLVE 329 WOOD STREET LAKE MARY FL 32746 ADVISORY SERVICES - ECONOMIC GARDENING PROGRAM 212500 EDWARD LOWE FOUNDATION 58220 DECATUR ROAD CASSOPOLIS MI 49031 ADVISORY SERVICES - ECONOMIC GARDENING PROGRAM 211601 CROWE HORWATH LLP PO BOX 71570 CHICAGO IL 60694 AUDIT AND TAX SERVICES 107675 3 0 0 0 0 0 240250 0 240250 IEDC State Contracts 900099 2727229 2727229 Management Fees 900099 152500 152500 0 0 0 0 2879729 5279 5279 0 0 0 0 0 0 Other Revenue 900099 2133 2133 0 0 0 0 2133 3127391 2879729 0 7412 X 218000 218000 764221 551380 201239 11602 959748 959748 0 0 44603 44603 143131 143131 94436 94436 0 0 15965 1000 14965 0 114456 52714 61742 0 0 0 0 0 0 0 0 0 0 0 708153 583936 124217 0 32205 19323 12882 0 21880 18001 3719 160 57928 22013 35915 0 0 0 0 60260 29323 30750 187 84010 74864 8398 748 0 0 0 0 0 0 0 0 260 214 44 2 0 0 0 6963 5728 1184 51 60441 47144 12693 604 EVENTS AND GIFTS 82006 67466 13941 599 BAD DEBT 13000 11227 1700 73 LICENSES AND MEMBERSHIP FEES 9471 7792 1610 69 PAYROLL PROCESSING 3478 2861 591 26 6635 1438 5184 13 3501250 2674172 812944 14134 64245 373952 1762160 1942555 1009667 352167 611178 411064 0 0 0 0 0 0 25953 36488 28823 10030 24827 18793 0 0 528379 262831 0 0 0 0 0 4026409 3397850 335914 346762 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 335914 346762 X 1715470 1857574 1975025 1193514 0 0 0 0 0 0 0 0 3690495 3051088 4026409 3397850 -373859 -265548 0 0 0 0 X false true X true false X 225000 1714937 548563 237250 2725750 0 225000 1714937 548563 237250 2725750 0 2725750 418 744 921 5279 7362 0 0 0 3286 53370 56656 2789768 10153213 X Schedule A, Part II, Line 10 Other Income DESCRIPTION - REIMBURSED EXPENSES, COLUMN A - , COLUMN B - , COLUMN C - , COLUMN D - 1800.0, COLUMN E - 51237.0, COLUMN F - 53037.0; DESCRIPTION - OTHER INCOME, COLUMN A - , COLUMN B - , COLUMN C - , COLUMN D - 1486.0, COLUMN E - 2133.0, COLUMN F - 3619.0; RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 28823 10030 18793 18793 INVESTMENT IN INDIANA 21ST CENTURY FUND, LP 262831 C 262831 0 X 2853957 -265548 0 -265548 3119505 7886 7886 3127391 3493364 0 0 3493364 7886 7886 3501250 Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote The Internal Revenue Service has determined that Elevate is a tax-exempt organization as defined in Section 501(c)(3) of the Internal Revenue Code and is exempt from federal income taxes on related income. Elevate is not considered to be a private foundation. Current accounting standards require Elevate to disclose the amount of potential benefit or obligation to be realized as a result of an examination performed by a taxing authority. For the years ended December 31, 2014 and 2013, management has determined that Elevate does not have any tax positions that result in any uncertainties regarding the possible impact on Elevate's financial statements. Elevate does not expect the total amount of unrecognized tax benefits to significantly change in the next 12 months. Elevate recognizes interest and/or penalties related to income tax matters in income tax expense. Elevate did not have any amounts accrued for interest and penalties at December 31, 2014 and 2013. Schedule D, Part XI, Line 4(b) Other revenues in form 990 not in audited financial statements UNCOLLECTIBLE PLEDGE - 3000 CAPITAL ASSET WRITE-OFF - 4886 Schedule D, Part XII, Line 4(b) Other expenses in form 990 not in audited financial statements UNCOLLECTIBLE PLEDGE - 3000 CAPITAL ASSET WRITE OFF - 4886 true AdjunctProfessorLink 4403 Stafordshire Lane Valparaiso IN 46383 474315734 Corporation 15000 0 N/A N/A Startup capital assistance Ananse Health POBox 1878 Valparaiso IN 46384 999999999 Corporation 15000 0 N/A N/A Startup capital assistance AssureTech 3831 Burning Bush Dr Indianapolis IN 46235 999999999 Corporation 15000 0 N/A N/A Startup capital assistance DiTara LLC P O Box 50217 Fort Wayne IN 46805 463185402 Corporation 25000 0 N/A N/A Startup capital assistance Gift Utopia 907 S Wayne Street Angola IN 46703 999999999 Corporation 25000 0 N/A N/A Startup capital assistance Go Yodel LLC 13 Lincolnway Valparaiso IN 46383 999999999 Corporation 5000 0 N/A N/A Startup capital assistance NanDio 1400 E Angela Blvd South Bend IN 46556 999999999 Corporation 25000 0 N/A N/A Startup capital assistance One Place Now 13281 Monix Drive Saint John IN 46373 474011372 Corporation 15000 0 N/A N/A Startup capital assistance RockZip LLC 210 Maple St Michigan City IN 46360 999999999 Corporation 5000 0 N/A N/A Startup capital assistance Rusher Medical 1111 Pemberton Drive Fort Wayne IN 46805 999999999 Corporation 25000 0 N/A N/A Startup capital assistance SupplierIQ 1400 East Angela Blvd South Bend IN 46617 461915511 Corporation 25000 0 N/A N/A Startup capital assistance Trek10 506 W South Street South Bend IN 46601 464379653 Corporation 23000 0 N/A N/A Startup capital assistance 0 12 Schedule I, Part I, Line 2 Description Of Procedure For Monitoring Use Of Grant Funds Companies receiving funds are required to provide quarterly financial reports to Elevate Ventures which are reviewed by Elevate's investment team. Schedule I, Part I, Line 1 Grantees listed on Schedule I reflect High Potential Startup Grants made to Indiana startup companies in alignment with Elevate Venture's exempt mission. The organization utilizes volunteer regional advisory groups to review the applications and make recommendations for funding which are then reviewed and approved by the Elevate Investment Committee in accordance with the Elevate Investment Charter. All grant agreements outline that any unused funds should be returned to Elevate Ventures. The organization maintains records of each grantee and the selection criteria used to award such assistance. Grantees are required to provide quarterly financial statements to Elevate. Schedule I, Part II, Line 1(b) Federal Identification Numbers (EIN) Some companies receiving high potential start-up grants are in early stages of development and many have not yet applied for a federal identification number. In order to electronically file the Form 990, "99-9999999" for these companies have been listed on Schedule I, Part II, Line 1(b) Schedule I, Part I, Line 2 Procedures for monitoring use of grant funds. Companies receiving funds are required to provide quarterly financial reports to Elevate Ventures which are reviewed by Elevate's investment team. X X X false false false false false false false false false Stephen Hourigan Chief Executive Officer 245990 0 0 0 0 0 10000 0 16708 0 272698 0 0 0 Ting Gootee Chief Investment Officer 120706 0 36250 0 0 0 6450 0 15316 0 178722 0 0 0 Robert Clark Entrepreneur-in-Residence 108234 0 31900 0 0 0 4400 0 10725 0 155259 0 0 0 Form 990, Part III, Line 4 ELEVATE VENTURES ACCOMPLISHMENTS DURING 2014 In 2014, Elevate achieved its most successful year. Major accomplishments include: Completed 24 seed and early-stage investment transactions with a total of $8.28M invested and nearly $13M co-invested from other sources. Launched the Indiana Seed Fund fund-of-funds co-investment program, with participation from 7 Indiana fund managers and organized angel groups. Additional groups are expected to qualify in 2015. Relaunched the state's SBIR/STTR Phase I matching funds program. The program qualified 24 state matching grants for 21 Indiana companies, with an additional $4.37M in federal grant awards directed to these Indiana companies by federal agencies. The matching program operates in conjunction with SBIR assistance provided in partnership with State of Indiana's Offices of Small Business and Entrepreneurship. Hosted 2 investor roadshows aiming to connect the best Indiana companies with regional and national venture capital firms in Indianapolis and Chicago. Elevate connected more than 75 Indiana companies and institutional investors combined and over 150 quality meetings took place. More than $10M in term sheets and investment interest have already followed. Formal partnerships were formed with Velocity, an accelerator program based in Jeffersonville, IN and with the Purdue Foundry for delivery of Entrepreneur-in-Residence services and the launch of the $2M Elevate Purdue Foundry Fund targeting Purdue Foundry affiliated seed-stage companies. Elevate Ventures' direct investment portfolio includes 47 companies, with nearly $30M invested and over $190M co-invested since 2011. Form 990, Part VI, Line 15b PROCESS TO ESTABLISH COMPENSATION OF OTHER OFFICERS THE CEO HAS THE AUTHORITY TO HIRE AND SET INITIAL COMPENSATION OF OTHER OFFICERS AND KEY EMPLOYEES. SUBSEQUENT RAISES WERE DETERMINED BY THE COMPENSATION COMMITTEE AND APPROVED BY THE BOARD. THIS PROCESS WAS LAST UNDERTAKEN IN JANUARY 2015. Form 990, Part VI, Line 4 Significant changes to organizational documents The organization amended its bylaws to change the following: Section 1.2 was replaced in its entirety as follows: 1) The minimum number of directors was reduced from 4 to 3. Form 990, Part VI, Line 11b Review of form 990 by governing body The form 990 was reviewed in detail by the CFO and CEO. A final draft of the form 990 was distributed via email to every member of the governing body prior to filing with the IRS. Board members were given 10 days to provide feedback and ask questions prior to filing. Form 990, Part VI, Line 12c Conflict of interest policy Every board member, officer and employee is required to sign annually a Conflict of Interest Statement disclosing actual or potential conflicts of interest with the organization. The Compliance Officer has been appointed by the Board to review the disclosure statements and ensure compliance with the Conflict of Interest Policy. Additionally, each board member, officer, and employee is required to disclose actual and potential conflicts of interest in advance of the completion of the organization's investment transactions through Elevate and its subsidiary entities. In the event that there are conflicts of interest that arise that are not related to the organization's investment activities, the board members and staff must disclose the conflict or potential conflict to the compliance officer and abstain from any decision-making as it pertains to the conflict. Form 990, Part VI, Line 15a Process to establish compensation of top management official A compensation committee was appointed to establish compensation for the top management official. The committee used comparability data in their determination to ensure compensation is reasonable. Discussion and analysis of the process was documented in the compensation committee minutes. The compensation committee presented to the Board of Directors their recommendation for compensation and the Board voted on the compensation based on the committee's recommendation. This process was last undertaken in February 2013. No change in compensation was made in 2014. Form 990, Part VI, Line 19 Required documents available to the public Financial statements, governing documents, and conflict of interest policies are not required disclosures pursuant to internal revenue code (IRC) Section 6104. These documents are not available to the public at this time. Form 990, Part IX, Line 11g Other Fees Consulting Fees - Total Expense: 708153, Program Service Expense: 583936, Management and General Expenses: 124217, Fundraising Expenses: ; ELEVATE ADVISORS LLC 50 EAST 91ST ST STE 213 INDIANAPOLIS IN 46204 900906210 GENERAL PARTNER DE -15104 47792 ELEVATE VENTURES INC INDIANA 21ST CENTURY FUND LP 50 EAST 91ST ST STE 213 INDIANAPOLIS IN 46204 453126479 INVESTMENT FUND DE ELEVATE VENTURES INC Excluded -83072 262854 false 0 false 0.55 false false false false false false false false false false false false false true true true true false true