Author: Ben Pidgeon

Purdue Foundry’s Gibb Named President of VisionTech Angels’ Greater Lafayette Chapter

LAFAYETTE, Ind. (June 27, 2017) – Riley Gibb, director of collaborations for the Purdue Foundry, has added a role to his resume. VisionTech Angels has tapped Gibb to serve as president of the Greater Lafayette chapter of the statewide angel investor network, a role that includes recruiting professionals interested in investing in early growth companies and entrepreneurs who need startup capital for a new technology or business.

Gibb, who is also an instructor at Ivy Tech Community College, succeeds attorney Stuart Guttwein, who served as president of VisionTech Angels’ Greater Lafayette chapter for two years.

Commenting on Gibb’s appointment, VisionTech Angels Executive Director Ben Pidgeon said, “Purdue University is a great source of new technologies and startup companies and advocate for entrepreneurship. Having Riley join VisionTech Angels as our Greater Lafayette chapter president will lead to greater synergy between the ‘makers’ at Purdue who create technologies and startups and angel investor who nurture them through capital investment and business consulting.

Pidgeon, who is also a West Lafayette native and Purdue alum, added, “Stuart (Guttwein) laid a great foundation for VisionTech Angels in Greater Lafayette and we look forward to Riley growing our presence in the local innovation economy.”

Gibb has strong ties in the Greater Lafayette community. In his role at the Purdue Foundry, he is responsible for optimizing the success of Foundry startup companies by cultivating meaningful connections throughout the entrepreneurial ecosystem. He earned his undergraduate degree from Purdue University and his MBA in Marketing from Xavier University Williams College of Business. Gibb has worked with other companies in the area, including North American Dental Group and Promotion Publishing & Marketing, where he served as president.

“At the Foundry, we are always looking for additional opportunities to help our companies reach their next level of success. The Foundry’s relationship with VisionTech Angels has always been strong, and I am excited to build on that foundation moving forward. Together we are excited to grow the entrepreneurial ecosystems in the greater Lafayette area with the Foundry and VisionTech Angels as important pieces for many companies.”

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June 27, 2017
VisionTech Angels Adds Tenant Tracker to Its Expanding Investment Portfolio

INDIANAPOLIS, Ind. (May 24, 2017) – VisionTech Angels, one of Indiana’s most active angel investing groups, has invested in Indianapolis-based startup, Tenant Tracker, increasing the stable of companies in its investment portfolio to 24. The VisionTech Angels investment was matched by Elevate Ventures.

Tenant Tracker is tenant coordination and build-out software for the commercial real estate industry that transfers paper-based processes to the Cloud, resulting in significant gains in efficiency. The solution, which was created at DeveloperTown, is the brainchild of Mike Kelly, managing partner of DeveloperTown, and local commercial real estate broker Keith Kleinmaier, who serves as Tenant Tracker’s chief executive officer.

Kleinmaier says the investment will have a profound impact on the company. “Until now, Tenant Tracker has relied primarily on friends and family to fund our software development and early commercialization efforts, including an extensive beta test. By closing this $600,000 seed round of funding with VisionTech and other investors, Tenant Tracker can break out of our ‘quiet phase’ and dial up our sales efforts. The market is ready and so are we.”

VisionTech Angels Executive Director Ben Pidgeon said Tenant Tracker attracted a good deal of interest from its network of angel investors in Indianapolis, Bloomington, Fort Wayne, and Lafayette. “Tenant Tracker has the potential to transform an untapped market, commercial real estate, that is very detail oriented and still tied to paper. Our investors liked that Tenant Tracker has a good customer base that is successfully using the software and are validating their revenue model; it’s very impressive in an early growth company.”

VisionTech Angels also appreciates that Tenant Tracker’s roots are grounded in both the commercial real estate and tech industry. Kleinmaier is a licensed commercial real estate broker and worked in the technology industry before joining Retail Realty in Fishers, Indiana, as president. Kelly, Tenant Tracker founder and DeveloperTown managing partner, has helped create, advise, and launch a number of tech companies.

“Tenant Tracker delivers a focused user experience,” explained Kelly. “The software allows users to track property leasing deals, manage construction and build-out status, see detailed property reports, access tenant data, and share status reports. Because it’s Cloud-based, the information is available anywhere, a true benefit to our users who are able to access Tenant Tracker from the project site or back in the office.”

Added Kleinmaier, “With all of this data in hand, commercial real estate developers, owners, and landlords have the ability to be more efficient, move tenants into properties sooner, and in turn, add revenue to the bottom line. Good-bye spreadsheets!”

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May 24, 2017
VisionTech Portfolio Company FAST BioMedical Secures $8 Million in New Funding

CARMEL, IND. (May 3, 2017) FAST BioMedical, Inc., a VisionTech Partners portfolio company, announced it has secured $8 million of additional financing. $5 million comes from a Series A2 financing led by one new investor, F&M Investment Office. This financing augments $3 million of grant funding received as a competing renewal award from the National Institute of Diabetes and Digestive and Kidney Diseases at the National Institutes of Health. The proceeds will primarily be used to advance clinical trials of the company’s technology as well as to hire additional talent and advance the company’s global patent portfolio.

FAST BioMedical is one of VisionTech Partners original investments, dating back to June 15, 2011 when the angel investing group operated as StepStone.VisionTech Partners has since made follow-on investments in FAST BioMedical through its angel investing group, VisionTech Angels.

“This financing is an important and validating step to continue our progress,” said FAST BioMedical Chief Executive Officer Joe Muldoon. “We have already begun adding talent to the team, and are excited about their ability to immediately add value.”

“FAST BioMedical has enormous potential to serve large unmet medical needs with its innovative technology,” said Mr. McClure, President of F&M Investment Office. “We are delighted to partner with them, and see great promise in the ability to favorably impact critical patient care.”

FAST BioMedical is a private, clinical-stage medical technology company in Carmel, Indiana. The company’s globally patented first-in-class technologies directly measure blood volume and kidney function in a clinically viable way. This has the potential for profound impact on care of congestive heart failure, major surgery, sepsis, critical care, and kidney disease patients. The company has been financially supported by the NIH, Elevate Ventures, the Indiana 21st Century Fund, Rose-Hulman Ventures, BioCrossroads, Indiana University Medical Group, The Purdue Foundry Fund, Ellipsis Ventures, VisionTech Partners, and private family office investors. The FDA has determined the company’s technology meets the requirements for an Expedited Review.

These products are investigational and not yet approved for human use.

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May 5, 2017
VisionTech Partners’ Helmer Named to WorkHere’s Board of Directors

INDIANAPOLIS, Ind. (April 19, 2017) – Angel investors bring two key things to a start-up company’s table: investment capital and human capital. In naming VisionTech Partners’ general partner David Helmer to its Board of Directors, Indianapolis-based WorkHere has secured both after receiving investment support from VisionTech Angels earlier in 2017.

Helmer, who is also the owner and co-founder of Helmer Scientific, joins the WorkHere Board of Directors after consulting on a pro bono basis with the mobile recruiting/job search app company since February. WorkHere has succeeded in raising more than $2 million in private investment capital, a portion of which is from VisionTech Angels and the VisionTech Partners investment fund. The company will use the funds to fuel its expansion in additional metro areas beyond Indiana over the next 12 months.

“We are so pleased David agreed to taking a more formal role with our company,” said WorkHere President and CEO Howard Bates. “Our relationship with VisionTech began much like other start-up companies, with a pitch to potential investors. Apparently, they liked what our mission, vision and managements positive past track record.”

Added Bates, “Having the investment support of VisionTech Angels and now the counsel of David, who is a very bright, seasoned entrepreneur, businessperson, and community and global advocate, as well as David’s extensive international business experience is very important to a high-growth company like WorkHere.”

WorkHere is one of 20 early expansion phase companies, the majority of which are based in Indiana, in VisionTech’s investment portfolio. Helmer, a general partner in VisionTech since 2014, said WorkHere caught his attention when they first introduced their company to the statewide angel-investing group in 2016.

“What made WorkHere attractive as an investor is that it solved a big problem for employers and workers primarily in the manufacturing, heath care and service industries—how to connect people to jobs efficiently. As an employer, I know exactly how difficult it is to have a pipeline of qualified people when you’re hiring,” Helmer explained.

Helmer added that he is impressed at how quickly people have adopted the GPS-enabled app. “After a year in business, WorkHere has 43,000 users in Indiana alone and is adding upwards of 500 people a day to their user base. It will definitely be exciting to see how people respond in other major metropolitan areas like Chicago and Cincinnati.”

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April 19, 2017
Three Outstanding Companies Headline April Pitch Week!

The VisionTech Angels Screening Committee reviewed five companies in March and selected three to present at our April Pitch Week next week in Fort Wayne, Lafayette, Bloomington, and Indianapolis. We’re so pleased with the all-star line-up, we’re sharing a special sneak preview with you.

Retail shopping is not like it used to be! Consumers flit back and forth between multiple devices, platforms and stores before purchasing. To be successful, retailers have to make the omnichannel, multi-device experience seamless, integrated and consistent—something easier said than done. ZIO is poised to redefine the retailer/shopper relationship with a solution for retailers that have struggled to deliver a true omnichannel experience. ZIO provides an intelligent opportunity engine starts with the retailer’s data. It then uses machine learning to drive best outcome scenarios for customer marketing and merchandising, increasing ROI on the marketing spend.

What We Like: Omnichannel marketing is here to stay and ZIO has it down. They’ve assembled a strong management team with deep experience in this complicated space. Plus they have a go to market strategy that will have them hit the ground running. Learn More

Ear infections are a parent’s worst nightmare. They come with endless doctor visits, prescriptions for the “pink stuff”, and in severe cases, surgery. PhotoniCare is a medical device company set to how physicians diagnose and manage middle ear infections. Their ClearView device – which looks like a modern version of an otoscope – allows physicians to see past the eardrum to the middle ear where infections reside. The data it generates supports more accurate diagnosis, treatment and management; avoids the over-prescription of antibiotics and surgical intervention, and reduces cost, pain and parent frustration.

What We Like: Since originally meeting with VisionTech two years ago. PhotoniCare has raised $2.1 million in non-dilutive federal grants, secured several patents, has third-generation prototypes in multi-site clinical studies, and is preparing for FDA submission and their first product launch. Learn More

Does it drive you crazy to go to a doctor and have no idea what a lab or screening test is going to cost and what insurance is going to pay? Markit Medical is set to change that with a pricing transparency tool for use in medical practices. Here’s how it works. The physician orders an MRI for the patient. Included with that order is a choice of providers within their insurance network, the providers’ qualifications, pricing, and how much their insurance will cover. This allows patients to make informed decisions and get the most from their health insurance. This transparency should bring down the cost of care as healthcare providers will be competing for patients.

What We Like: Markit Medical’s model doesn’t cost the physician or patient a penny. Insurance companies pay for the service as a way to drive down costs. Markit Medical is currently in use in Chicago. Learn More

VisionTech Angels’ April Pitch Week is open to members and their invited guests. If you’d like to bring a guest, please email Ben Pidgeon to RSVP.

Click here for the dates, times and locations of April Pitch Week.

April 12, 2017
R&D Tax Credit Change Could Put Money in the Pockets of SaaS Companies
While we’re not in the tax preparation business, VisionTech Angels member, Steve Sehy, MBA, CPA, has provided some good information regarding a change in the R&D tax credit that could put some money in the pockets of SaaS companies. Here’s what Steve shared:

The old R&D tax credit rules: If you had an income tax loss, the tax credit didn’t do you much good. Any tax benefits would apply sometime in the future.

The new R&D tax credit rules: With the Startup Provision of the new law, a 2016 tax credit can be used against a SaaS company’s 2017 payroll taxes instead of income taxes. Plus, SaaS companies can amend a previous year’s returns to take further advantage of the new provision.

Bottom line: SaaS companies with a tax loss can get an immediate cash benefit.

There are three criteria to qualify for the new tax provision:
- No revenue prior to 2012
- No more than $5 million in revenue
- Qualifying expenditures
How much can a SaaS company expect to save? Let’s do the math using this calculator. If you have $2 million in expenses, of which $1 million supports R&D process and thus would qualify, the federal benefit would be $65,000. The state benefit varies, but for companies in California, the credit would be a much as $75,000.

As stated earlier, we aren’t tax accountants or attorneys. (Steve Iisa CPA.) If you’re a SaaS company and stand to benefit, share this blog with your tax preparer.

Thank you for sharing this info with VisionTech and our members, Steve!

For more information on this topic, here’s another blog from VisionTech Partners’ sponsor Katz, Sapper & Miller. Click here.

https://www.alliantgroup.com/wp-content/uploads/2016/02/CPA-Magazine-The-RD-Tax-Credit-Permanent-Expanded.pdf

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February 14, 2017
Boosterville Receives $830K Investment to “Boost” Loyalty Platform Growth

ZIONSVILLE, IN (February 7, 2017) — Boosterville, an award-winning, offers and loyalty platform that seamlessly connects merchants with cause-driven buyers, announces the completion of the company’s seed round of funding. The round, which will be used to accelerate the rollout of the platform to new markets, totaled $830,000 and was co-led by 316 Investments and VisionTech Angels with a matching investment from Elevate Ventures.

Greg Willman, co-founder and CEO of 316 Investments who will be joining the Board of Directors, stated, “Our excitement for Boosterville stems from our long history in the retail space and understanding of the innovative marketing solution that Boosterville brings to merchants who want to support non-profit groups in their communities as well as grow their customer base.”

Boosterville works with all existing payment card processing and POS systems with no new hardware, integrations or training required. An immediate text message at the time of purchase notifies the buyer of the merchant’s contribution to their selected non-profit, resulting in increased engagement and loyalty for platform merchants.

Ben Pidgeon, executive director of VisionTech Angels, said, “Merchants have long been challenged by measuring return on investment of local marketing dollars spent. Boosterville has developed an elegant, yet powerful solution for businesses to engage with customers in supporting local causes, help local groups raise funds they need to be successful, and in the process, build a more loyal customer base. VisionTech Angels is pleased to have Boosterville as our first investment of 2017.”

Boosterville CEO Pam Cooper stated, “We’ve seen great interest this last year and are thrilled to have these leading retail and technology experts join our team. We’re excited that they recognize the value of our technology and the tremendous opportunity to help the millions of merchants across the country increase their revenues while enhancing their relationship with their local community and non-profits.” Cooper added, “It’s wonderful to join the rising tide of Indiana’s tech startup community and prove that founders don’t need to leave the state to secure angel investment or talent for their growing companies.”

During 2016, Boosterville established a technology partnership with one of the world’s largest credit card networks, secured agreements with national non-profit and faith-based organizations, was selected for Facebook’s FbStart program, and visited with now-Governor Eric Holcomb to introduce Boosterville and discuss fostering entrepreneurial growth in Indiana. Most importantly Boosterville received overwhelmingly positive response during a pilot program in Zionsville after months of testing by local development partner merchants: WB Pizza, Cobblestone Grill, and JiffyLube of Indiana.

Prior to launching from Zionsville’s entrepreneurial and coworking center zWORKS, Boosterville graduated from two tech accelerators — the SeedHatchery in Memphis, TN and Prosper Women Entrepreneurs in St. Louis, MO. The company is currently operating in previously vacant commercial space owned by the Town of Zionsville.

February 7, 2017
VisionTech Portfolio Company WorkHere Adds SalesForce Alum Lisa Helms to Lead Customer Engagement

Start-up companies are a different kind of animal. What works for an established company often doesn’t work for a startup, which is why we agree with Robert Reffken, CEO and founder of Compass, recently quoted in Entrepreneur:

“When getting a company off the ground, there is no room for bosses, only leaders.”

Reffken goes on to explain that bosses stick to a preordained script and defined roles, connoting little else but hierarchal authority and approaching their contributions in the context of their own careers, compensation and personal goals. Leaders, on the other hand, inspire positive change in others, earning trust, creating cohesion and raising morale. In short, bosses tell people what to do, while leaders inspire people to do their best.

Which is why we’re pleased to see Carmel-based WorkHere, a VisionTech portfolio company and disruptive start-up, recently add Lisa Helms as vice president of customer engagement. Lisa joined WorkHere after a number of leadership skills-building positions, including manager of global recruiting for Salesforce Marketing Cloud (formerly ExactTarget) and strategic account director for enterprise accounts at Jobvite, a social recruiting website. Lisa also held various HR and recruiting leadership positions for Yoh, ASSIA, Tradescape and Midwest Transmission System Operator.

WorkHere Founders Howard Bates, Rick Wehrle, Mike Seidle (L-R)

Lisa joins WorkHere’s impressive leadership team that includes Monster.com’s lead architect, Rick Wehrle; Truevision founder and Adobe computer scientist, Brad Pillow; Dice.com data scientist, Doyle Groves; National Labor Exchange architect, Mike Seidle; and entrepreneur Howard Bates.

WorkHere is a work-life social network designed to connect employers and workers. Workers can quickly find a nearby job using a simple map. Employers can connect and instantly reach out to local workers who show interest in their open positions. The WorkHere app is free to workers.

Commenting on Lisa’s hiring, WorkHere CEO Bates said, “It’s not often that you’re able to attract the kind of thought leadership and talent we’ve assembled at WorkHere. We’re working on a product that is changing people’s lives and making the employee hiring and job seeking market much more efficient. We could not be more excited to have Lisa on our team as she is a recognized expert and thought leader in the recruiting and social marketing world. We welcome her as a partner in our company, one who will lead the build-out of our customer engagement team.”

Lisa is up to the challenge. In a news release put out by WorkHere, she said, “WorkHere is addressing a critical need that employers are facing today, locating and engaging with talent in their communities. Employers have lots of choices ranging from job boards to social networks. It’s how employers engage with their prospective employees in a more meaningful way that makes the greatest impact. When it comes to recruiting people that get the work done, there is no other app like WorkHere that utilizes geo-location powered maps to target specific locations. What WorkHere offers is a game changer to the recruiting industry.”

WorkHere’s leadership team—and VisionTech Angel investors—believe that today’s tech savvy workforce will embrace their app, which works much like other successful mobile geo apps such as Uber, Zillow and Pokemon Go. Map-driven apps are easy to understand and are designed to work on Android, Apple and Amazon mobile devices as well as on the web. The app can be downloaded from the App Store, Amazon and GooglePlay.

Please join VisionTech is welcoming Lisa Helms to WorkHere.

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November 15, 2016
VisionTech Portfolio Company NeuroFx Clears FDA Hurdle for Stroke Drug Candidate

The American Heart Association reports that stroke is a leading cause of long-term disability, claiming the life of someone in the United States every four minutes. There are very few treatment options for stroke, and the window of time to deliver treatment is very small. The National Institutes of Health estimates the total cost of stroke in the United States ranges from annual health care expenses of $15 billion to $30 billion when the patients’ lost wages are included.

When VisionTech Angels was approach by NeuroFx, an Indianapolis-based regenerative medicine company founded by successful Indiana University entrepreneur Dr. Keith March about a potential therapeutic solution to stroke, we were quick to listen. Here’s why.

NeuroFx is developing an innovative, cell-free therapeutic factor concentrate derived from adult adipose stem cells called NFx101. This drug candidate has demonstrated, in animal tests, to have great potential to halt brain injury caused by stroke, promote regeneration and repair of brain tissues, and, most impressively, re-establish normal brain function. After thorough due diligence and interest from VisionTech Angels members, we went forward with NeuroFx this year.

Since our investment, NeuroFx has had encouraging interaction with the U.S. Food and Drug Administration (FDA) A recent pre-IND (Investigational New Drug) meeting established that the FDA agrees with NeuroFx’s manufacturing and research plans, paving the way to the company’s its first human clinical trial of NFx101. The FDA also indicated that safety data collected during the first IND study—a step critical for a new therapeutic’s path to clinical trials—would be considered as contributing valuable safety data for selected future indications prioritized by NeuroFx.

Passage of this major milestone led Elevate Ventures to extend a deal that aims to close NeuroFx’s Series A round. The offer promises an investment upon commitments filling the entire raise, thus de-risking the offering for new investors. The remaining total funding ($1.2 million) ensures manufacturing scale up, completion of the IND-enabling study and IND submission. Dr. Jim Hermiller, an interventional cardiologist at St. Vincent, has agreed to be the lead investigator of NeuroFx’s Phase 1 trial, which will evaluate the safety of NFx-101 and provide an approach to identify early signals of efficacy.

VisionTech and other qualified investors interested in more information about NeuroFx should contact Karen Momper at kmomper@neurofx.co. NeuroFx will be presenting to VisionTech’s new affiliate investing group, AngelBom, this month.

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November 3, 2016
VisionTech Angels Member Profile: Keith Davis, Biotech Researcher, Entrepreneur, Angel Investor

VisionTech Angels enjoys a very diverse membership with one thing in common: a passion of investing and supporting promising start-up companies. While many of our members come to angel investing from business, Keith Davis, a member of our VisionTech Angels Bloomington chapter, has taken a different journey.

Keith joined Indiana University in 2014 as the director of the Johnson Center for Innovation and Translational Research at Indiana University (IU) Bloomington. He’s also a senior research scientist in IU’s Biotechnology Program focused on developing cancer chemoprevention agents and therapeutics. Prior to joining IU, Keith was the director of the Owensboro Cancer Research Program in the James Graham Brown Cancer Center at the University of Louisville.

Keith is also a seasoned entrepreneur. From 1999 through 2006, he was affiliated with Icoria, Inc., and its predecessor, Paradigm Genetics, holding positions that included director of plant research, vice president of agricultural biotechnology and executive consultant. In 2005, Icoria sold its agricultural division to Monsanto for $6.75 million and its remaining operations to Clinical Data for about $12.75 million. Today, Keith is CEO of a start-up company, Planta BioProducts, which is developing nutraceutical products based on his research.

As a biotech researcher, entrepreneur and angel investor, Keith’s perspective is unique. Here’s our conversation:

VTA: What got you interested in angel investing?
KD: I had several reasons. First, the unpredictability of the stock market and the fact I have significant assets already invested there. I have some exposure to real estate, but don’t find that a particularly interesting or exciting investment. I wanted to have a portion of my portfolio in high risk/high return investments that I could pick with the maximum amount of transparency possible. Another important factor is that my current position at IU as director of the Johnson Center for Innovation and Translational Research is focused on helping faculty commercialize their research innovations. As such, I advise faculty on whether their concept/technology is sufficient to start a company, and what options are available to pursue this. Thus, I felt it was critical to get integrated into the local investor community and found no better way than to work with VisionTech Angels.

VTA: What do you like most about angel investing with VisionTech Angels?
KD: Although I’ve only been a member since May 2016, it’s clear that the group is well organized and has a number of experienced investors with diverse backgrounds and knowledge. I particularly like the team approach to doing diligence on potential investments.

VTA: What have learned from angel investing that you may not have otherwise?
KD: I’m learning new ways of presenting a company’s materials to potential investors, as well as the mechanics of systematically evaluating a start-up company in areas outside my expertise, biotech.

VTA: How does your current profession help inform your angel investing?
KD: Since one of my job functions is to help faculty start companies, I get to interact with entrepreneurs routinely and see companies at their very early stages. I also work with larger companies that are interested in working with faculty and their companies to co-develop technologies. It also allows me to continue to grow my expertise in evaluating intellectual property and managing IP portfolios.

VTA: How many investments have you made with VisionTech Angels?
KD: One so far: SonarMed, a sophisticated airway management system for health care.

VTA: What is the biggest value add of being a VisionTech Angels member?
KD: As a member of VisionTech Angels, you get an organized way to make angel investments with a knowledgeable support group, which is much, much better than trying to do one offs on my own. Another major value add is that you have a chance to see many more opportunities than you would as an individual investor or as a member of a smaller group.

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October 16, 2016