Rocket Ventures Update
Regional Partners and Investors
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Rocket Ventures
This document and its contents may not be used or
reproduced by any other party other than to whom it
was given without the express written consent of
Rocket Ventures Management.
Information from
other parties was relied upon for historical
information.
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Rocket Ventures
We take good development and companies, add
solutions, capital and talent.
Our Mission:
Direction
Capital
Acceleration
… to grow more companies; create more good paying
jobs, and provide profit that stays in NW Ohio!
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Rocket Ventures - Two Divisions under One Roof
RV Services
RV Fund(s)
Direction / Consulting for companies
Traditional For-Profit venture fund structure
Non-profit operation
Funding for a more select group of high
potential RV companies.
Works with many more companies than the funds
– mission is to utilize experience to accelerate the
growth of companies.
State matches regional contributions 1-to-1
Works in partnership with other regional
stakeholders
Special attention to high growth potential
companies
NW Ohio’s Entrepreneurial Signature Program
(ESP) – designated by the State
RV Funds act as a co-investor
State matches regional investment 1-to-1
Run by venture investment professionals
Can direct companies to other investment
sources
Works closely with RV Services
Note: many outsiders do not realize there are
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two RV entities.
Rocket Ventures
2013
$45 MM
$18 MM
$4 MM
$18 MM
Sales Revenue
Investments & Loans
Grants & Other Income
Payroll
$34 MM
$74 MM
Grants & Other Income
Payroll
2007 - 2013
$133 MM
$102 MM
Sales Revenue
Investments & Loans
$300+ Million of Impact! (on $6M investment)
109 New Companies
started
19 Companies
with external
investments > $1 MM
326
FTE Jobs
Avg. salary > $56,000
$6.7 MM
$2.8 MM
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$9.5 MM
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@5.5% State Sales Tax
@4% Avg. Payroll Tax
Tax Revenue
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An investment and entrepreneurial services organization, Rocket Ventures is funded with
private contributions and matched with Ohio Third Frontier funds.
Services & Investment Funding
Strategy
& Planning
Technology
Development
First Funding
Fundraising
Management
Business model development
Business and strategic planning
Financial projection
Go-to-market strategy
Regulatory strategy and guidance
Technology assessment and validation
Product / service development
Prototype assistance
Results
110 New Companies
started up
20 Companies
with external investments over $1 million
7 Companies
with annual sales ranging from $2.5 million
to $20 million+
284 FTE Jobs
with avg. annual wage of $50,836
Ignite Loans of $10K - $50K per company
Grant writing
Rocket Venture Fund Investment of $250K $1MM per company
Co-Investment with Other Funds
Strategic partner attraction
Interim C-Level (CEO / CFO) management
Business advisory board service
Assistance building good boards
Management talent recruitment
Cumulative Impact
$300+ Million Cumulative Impact!
$107 Million Investments & Loans
$34 Million Grants & Other Income
$145 Million Sales Revenue
$77 Million Payroll
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Rocket Venture Fund(s)
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A private, for-profit entity
Owned by the investors – run just as a traditional venture fund
Manages the investment portfolio
Second fund starting (est.) Q4 2014
Fund I
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A $13.4 million fund that began investing in 2008
17 current portfolio companies
Capitalized with $7.4 million in private funds and $6 million of Ohio Third Frontier funds
Per company investments of $250K - $1 million
Portfolio is doing well
Fund II
 A $6 million fund that will commence operation (est.) in late 2014
 Capitalized with $3 million in private funds and $3 million of Ohio Third Frontier funds
 Per company investments of $250K - $750K
 Technology / industry focus in software applications, medical technology, advanced
materials, energy, sensing, automation and technologies
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Board Members
RV Services
• Harlan Reichle, RGP Board Chair, and CEO Reichle Klein
Group
RV Fund
• Bill Pridgeon, EVP & CEO - Hylant Group
• Anne Rex, Vice President - The Andersons
• David Waterman, Managing Partner – Shumaker, Loop &
Kendrick
• Bill McDonnell, President - PNC Bank
• Dean Monske, President – Regional Growth Partnership
• Betsy Brady, Carson Associates
Other members will be added to the RVS Board.
• Dirk VanHeyst, Senior VP - Fifth Third Bank
• Todd Michaelsen, Manager, IBEW Pension Fund
• Jeffrey Bowman, Treasurer - UTIE
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Rocket Ventures
Key Advisory and interim
Management Services
+
Grants/loans for small
development
+
Loans for Pre-Seed development
+
Investments of $250K - $1M /
Company
=
New enterprise cultivation
Investment returns
Wealth generation
Higher in-region spending
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At a Glance:
 Founded in 2007 / Fund mid-2008
 Funded with private dollars and a
competitive Ohio Third Frontier
grant award
 Very good commercialization
outcomes achieved by an
experienced, results-driven team
 18-county Northwest Ohio service
area
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Companies of Rocket Ventures
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Our Companies provide solutions to:
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Customers of our Companies
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Best Practices to Follow
Columbus – launching 4 new Funds targeted at different
development stages, 3 to be launched in Q1.
Ann Arbor – has grown a number of volunteer based
organizations
Cincinnati – large Corporation engagement initiative –
Cintrifuse
Pittsburgh – Helped grow local VCs, and major partnerships
Cincinnati – Top 15 Accelerator nationally
RV needs to proactively follow the well run regions
(including national), and look at their systems too.
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Rocket Ventures
New emphasis in the future will be on:
Develop true Corporate
engagement / partnerships
&
Union
Mentoring – with different target groups
Incubation and Acceleration
Marketing & Promotion
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Team / EIR Candidates
If additional funding were in place, the following additions
could be made to the Rocket Ventures Services team:
The first candidate is a director at Covisint/Compuware, a publically
traded IT company, where he created a partner program that has grown to
over 50 integrated application provided partners. He was president of a
regional software firm, where he led the sale to Covisint, exceeding the
original target valuation. Has good domain expertise in health care and
IT.
The second candidate was director and co-founder of a firm in the medical
devices industry. His firm developed a patented and pioneering oral
device with various applications, and raised money from multiple large
VCs. Prior to that, he was a VP at a large investment banking firm where
he strategically initiated relationships with small middle-market
companies. Recently located to the region, where his wife is from.
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Rocket Ventures – Money Needed
Currently raising $2 million+ locally/regionally
for RV Fund II in investment capital.
Commitments needed by August
The State will match our money 1-to-1.
Nice incentives for the investors
Capital will be drawn in over 1-2 years –
4 capital calls of 25% each
Also raising $2-3 million in donations for
Services side of RV.
State matches all
contributions 1-to-1. This is our primary need.
Investors can also fund contributions through
the RGP.
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Rocket Ventures Fund II
Terms for the Fund investors are:
The first 1x (e.g., $4M if $4M is raised)
will be split proportionately between the
regional investors and the State.
Between a 1x and 2x return all proceeds
go to the Investors. So IF the Fund
doubles, the investors earn closer to
triple their money, net fees. Annual mgt
fees
are
2.5%.
Thereafter
all
distributions are split proportionately.
Much more attractive than terms offered
elsewhere in investment markets.
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Rocket Ventures
This is important to our community, and
absolutely benefits the region.
It has generated good results thus far.
We are very excited about our future.
RV can become, and should be, a source
of pride in NW Ohio.
We look forward to a strong base of
corporate partners.
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