2020 ANNUA L RE PORT - Nashville Capital Network
Transcript of 2020 ANNUA L RE PORT - Nashville Capital Network
ANNUAL REPORTWhere do we begin in ref lecting on 2020? In Nashville, we endured devastating tornadoes, a pandemic, social unrest, and a downtown bombing on Christmas morning. Thankfully, through all this our NCN family remained safe and healthy. And despite the many unexpected challenges, our portfolio companies have performed admirably and continue to execute their growth plans.
While some of our companies experienced slower sales cycles and other challenges as the pandemic hit, most have bounced back more quickly than expected. This is in large part due to the business-critical nature of their solutions, the relevance of their offerings, and the determination of highly motivated entrepreneurs. NCN’s model of leveraging the expertise of our investor partners has also been extremely valuable through this time. Having experienced operators engaged in our portfolio has been a tremendous resource and advantage for our companies.
Even in this time of great uncertainty, we are f inding promising opportunities. NCN has a pipeline full of high-quality investment prospects. We have sustained our position as a leading early stage investor in the region, while many “tourist” participants in our stage have shifted their focus back to larger or later stage companies. Nevertheless, we will continue to be calculated, thoughtful, and focused on deploying our proven model.
The continued success and progress of our organization would not be possible without the commitment of our Sponsors, Underwriters, Patrons, and investor partners. Your unwavering support provides the foundation for NCN’s continued impact on high growth entrepreneurship.
SID CHAMBLESS CHASE PERRY
HIGHLIGHTS
Companies Supported by NCN
Invested by NCN Partners
Invested in NCN Supported Companies
In Enterprise Value Achieved
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52Companies
Supported by NCN
$84MInvested by
NCN Partners
SID CHAMBLESSManaging Partner
• Managing Partner of NCN Angel Fund I, LP, NCN Angel Fund II, LP, Tennessee Angel Fund, LP and NCN Partners Fund, LP
• NCN Executive Director since 2003
• Vanderbilt BA, MBA
MORGAN PISANODirector of Operations
• NCN Executive Coordinator since 2013
• Western Kentucky University BS
CHASE PERRYManaging Partner
• Managing Partner of NCN Angel Fund I, LP, NCN Angel Fund II, LP, Tennessee Angel Fund, LP and NCN Partners Fund, LP
• NCN Director since 2010
• Hampden-Sydney BA, Vanderbilt MBA
JAY BAKERAssociate
• NCN Analyst since 2018
• Rhodes College BA
THE TEAM
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NCN INVESTORS ARE FOUNDERS AND EXECUTIVES OF THE FOLLOWING COMPANIES
Acadia Healthcare
AIM Healthcare
Aladdin Industries
American Endoscopy
Amylin Pharmaceuticals
AMSURG
Asurion
Brentwood Capital Advisors
C.B. Ragland
Confirmation.com
CaseLogistix
Century II
Corrections Corp/CoreCivic
Change Healthcare
China Health Care
CHD Meridian
Choice Food Group
Clayton Associates
Cogent/HMG
Counsel On Call
Coventry Corporation
CVS Caremark
Digital Reasoning
Dollar General
EnableComp
Enterprise Electric
Enterprise Holdings
Envoy
Equitable Securities
Essex Technology Group
General Care
Harbert Management
HCA
HealthAmerica
HealthSpring
Healthways
HealthWise of America
HEOPS
Heritage Health Systems
Hospital Affiliates International
Hospital Management Professionals
Ingram Industries
Inspiris
Iroquois Capital Group
JC Bradford
KraftCPAs
McWane Industries
MedInc
MedSolutions
National Imaging Affiliates
naviHealth
NeighborMD
North America Holding Company
NorthWind Partners
O’Charley’s
Optum
Outpatient Imaging Affiliates
Ozburn-Hessey Logistics
Passport Health
Pinnacle Financial Partners
PopHealthCare
Premier Parking
Premise Health
Province Healthcare
Psychiatric Solutions
PureSafety
RegionalCare
REIT Investment Group
Renal Advantage
RevPoint Healthcare
Sharecare
SMS Holdings
Standard Candy
Sterling Card Solutions
Surgical Care Affiliates
Surgical Health Corp
Symbion Healthcare
TeamHealth
Tennessee Bun Company
Thompson Machinery
Triton Boats
Truxton Trust
Vaco
Windsor Health Group
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NCN CO-INVESTORS INCLUDEAdvance Venture PartnersBaird CapitalBCBS Venture PartnersChrysalis VenturesCigna VenturesCouncil CapitalCredit Suisse NEXTDeerfield ManagementEcho Health VenturesGreat Hill Partners
Goldman SachsGrotechGV (Google Ventures)Harbert Management Corp.HCAHealth Enterprise PartnersHealth VelocityHeritage GroupHiltonHLM Venture Partners
HumanaLemhi VenturesLRVHealthMarriott InternationalMartin VenturesNasdaqNoro-Moseley PartnersOak HC/FT Optum VenturesPeakSpan
PrimusRiver Cities Capital FundsSanté Ventures Silicon Valley BankSquare 1 BankSSM PartnersUnitedHealth Group VenturesViking Global InvestorsVocap Investment PartnersY Combinator
DO
LLA
RS
SEED$0 - $1M in Revenue
$1M - $5MInvestments
$5M - $20MInvestments
$20M+Investments
$0 - $1MInvestments
REVENUE
CASH FLOW
GROWTH$5M - $15M in Revenue
EARLY GROWTH$1M - $5M in Revenue
LATE GROWTH$15M+ in Revenue
Traditional VCsGrowth Equity VCs
Growth Equity VCsTraditional Private Equity
Mezzanine LendersSenior Lenders
Accelerator ProgramsSeed Funds
Friends & FamilyAngel Investors
CAPITAL GAP
EARLY STAGE CAPITAL CONTINUUM
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NCN ADVISORY BOARDTOM WYLLY (Chairman) Brentwood Capital Advisors
VIC ALEXANDER KraftCPAs
HAL ANDREWS Trilliant Health
JIM BAKER Tranquility Partners
TYSON BICKLEY Waller
BARBARA CANNON NuSirt Sciences
RAY CAPP ConduIT Corporation
SID CHAMBLESS Nashville Capital Network
JOE COOK III Mountain Group Capital
NANCY EVERITT HEOPS
BRIAN FOX Confirmation.com
JEFF FOX Cherry Bekaert
FRANK GORDON Crofton Capital
EMILY HAK Insperity
JOHN HARRISON Harbert Management Corporation
PHIL HERTIK Private Investor
MICHAEL HOLLEY Bass, Berry & Sims
HAYLEY HOVIOUS Nashville Health Care Council
ERIC JOHNSON Owen Graduate School of Management, Vanderbilt University
KRIS KEMP Bass, Berry & Sims
JIM KEVER Voyent Partners
JIM LACKEY EnableComp
ROB LAIRD Maynard Cooper & Gale
JIM MEADE LBMC
ROB METCALF Concert Genetics
CHASE PERRY Nashville Capital Network
CHRISTOPHER RAND AngelEye Health
KEVIN RODDEY Pinnacle Financial Partners
CLINT SMITH Entrepreneur
JOHN TITUS Bradley
BRADFORD VIEIRA ServisFirst Bank
PAUL WALLACE Heritage Group
BRIAN WALLER Vaco
STEVE WOOD Baker, Donelson
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2020 ACTIVITY
MARCHFollow On
AUGUSTFollow On
APRILFollow On
NOVEMBERFollow On
JULYFollow On
NOVEMBERAcquisition
AUGUSTNew Investment
DECEMBERNew Investment
DECEMBERNew Investment
$27MSeries C2
$2.5MDebt Round
$11MSeries B
$3MSeries C
$50MSeries C
$2MSeries A
$2MSeries A
$6MSeries A
Acquired By
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Bone McAllester NortonCadence BankCIBC Bank USCouncil CapitalDiversified Trust
Donnelley Financial SolutionsFirstBankHeritage GroupInf lammoJones Lang LaSalle
Live Oak BankLLR PartnersPetra Capital PartnersRiver Cities Capital FundsSandbox Industries
Santé VenturesSilicon Valley Bank
Butler Snow
Harbert Management Corporation
HEOPS
HUB International
Pinnacle Financial Partners
PATRONS
UNDERWRITERS
SPONSORS
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NOTABLE EXITS
APR 2013 NOV 2015
JULY 2017
OCT 2013 JULY 2016
SEPT 2017
OCT 2013 SEPT 2016
NOV 2020JULY 2019 OCT 2019NOV 2017
Acquired By a Joint Venture Between Recapitalization ByAcquired By
Acquired By Recapitalization By
Acquired By
Recapitalization By Acquired By
Acquired By
Acquired By
Acquired By
Recapitalization By
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TOP QUARTILE PERFORMANCE
TOP QUARTILE
THIRD QUARTILE
SECOND QUARTILE
BOTTOM QUARTILE
MEDIAN
TAF PartnersFund (2010)
NCN AngelFund II
(2013)
NCN PartnersFund (2017)
NCN ANNUAL MEETING AND
RECEPTION
Early in 2020, NCN partners gathered at
Graduate Hotel to celebrate NCN’s Annual Meeting and Reception.
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NCN AngelFund I
(2008)
BUILDING CONNECTIONS1. Distrubuted Capital / Contributed Capital. Source: Cambridge Assoicates, US Venture Capital: Index and Selcted Benchmark Statistics, Q2 2020.