2016 SPRINGBOARDIMPACT REPORT2005 through 2016

Springboard is CONNECT’s business accelerator program for tech and life sciences companies. It is a mentoring program designed to assist entrepreneurs and innovators in refining their business plan and developing a compelling commercialization strategy and robust investor pitch. The end goal of the coaching process is to prepare the entrepreneur to position the startup for future partnerships, funding and growth.

The mentoring is supported by seasoned, C-level executives - our Entrepreneurs-in-Residence (EIRs) - who have experience in growing companies and raising capital. The EIRs are supported by a group of our Domain Experts who have expertise in a wide variety of technical and functional arenas.

Springboard Impact Report

The Impact Survey data reports on the health of the companies that have gone through CONNECT programs, the various milestones achieved, including the impact on employment. Springboard class denotes the year in which the company completed the accelerator program.

In 2017 CONNECT reached out to all the alumni of the Springboard program from 2005 to 2016 and the Venture Routable Winners from 2006 to 2012 to follow-up on their progress. Sixty-two companies responded to the survey. Their responses have been aggregated and presented in the report. In addition, data on investment capital raised, grant funding secured, and job creation was gathered from M&A, private equity, venture capital and federal grant databases.

Growth after Mentoring 2005 Through 2016

441Companies have completed

Springboard Accelerator program

27 Springboard alumni have

been acquired

254 Springboard alumni are still in business

291 Springboard alumni

raised capital

$1.6B Cumulative capital raised by Springboard alumni

$1.7B Cumulative exit value capital

by Springboard alumni

>6,000 Jobs created by Springboard

alumni companies

57% Springboard Alumni remain

actively in business

64% Springboard Alumni have

raised capital

Pre-screen review

APPLY

WORK WITH MENTORS

Intake panel

Orientationkickoff

Business strategy/Marketing

Finance panel

Dry-run panel

Graduation

(avg 6 weeks)

CONNECT SPRINGBOARD PROGRAM

(avg 6 months)

Technology (52%)

Life Sciences (32%)

Consumer Products (16%)

254SPRINGBOARD

ALUMNI

HIGHLIGHTS

9%

7%

5%

3%

4%

3%

1%

1%

4%

7%

Springboard Alumni Portfolio by Industry Sector14%

5%

4%

3%

2%

2%

2%

2%

2%

1%

1%

1%

2%

2%

3%

Application SoftwareCleantech

FinTech and ServicesHardware, Electronics, and Electrical Equipment

E-CommerceWireless Communications Networks & Systems

DefenseEdTech

Information TechnologyMarketing Tech

Mobile AppSocial Media

Artifical Intelligence and Machine LearningAutomotive

BlueTechCommercial and Building Products

Media and Information ServicesBig Data

Data AnalyticsCyber Security

Unmanned VehiclesPharmaceuticals

Diagnostics, Tools and SuppliesMed Device

Healthcare ServicesHealthcare Technology

Digital HealthBiotechnology and Chemicals

Recreational Goods and ServicesFood and Beverage

Sports and Active Life StylesConsumer DurablesHealth and Wellness

Over 250 Springboard Alumni are Still Actively in Business

1%

1%

1%

1%

<0%

<0%

2%

2%

Almost 440 companies have completed the CONNECT Springboard accelerator program.

More than 290 alumni have raised capital.

Nearly 20 percent of the alumni have undergone liquidity events. Twenty-seven total companies have been acquired.

Ten companies have exited by merging their assets with another private company or have taken the company public through an initial public offering.

As of December 2016, more than 250 Springboard graduates were still actively in operation.

Since 2005

$1.46B Cumulative Total Amount Raised by Springboard Alumni 2005 – 2015

Capital Raised by Industry Cluster 2005 – 2016

CAPITAL

Life Sciences; 46%

Sports Innovation/Active Lifestyle; <1%

Defense/Cyber/Robotics; 3%

Digital Health; 4%

Consumer Products; 4%

Cleantech; 12%

Technology/Digital Media/IT/Software/SaaS; 31%

Digital Health $20M - $50M: 5 companies

Cleantech >50M: 1 company

$20M - $50M: 2 companies

Technology>50M: 1 company

$20M - $50M: 5 companies

Consumer Products

$20M - $50M: 1 company

Defense & Cybersecurity>50M: 1 company

Life Sciences

>50M: 1 company

$20M - $50M: 11 companies

$1.6BRAISED BY 291 SPRINGBOARD

ALUMNI2005 - 2016

TWENTY-EIGHT COMPANIES HAVE RAISED SUBSTANTIAL AMOUNTS OF CAPITAL BETWEEN 2005 - 2016

$1.6B RAISED BY 291 SPRINGBOARD ALUMNI BETWEEN 2005 & 2016

Total Capital Raised by Springboard Alumni in a Calendar Year

In 2016, Springboard alumni in the Life Sciences sector raised almost $69M. Digital Health alumni raised $61M. Other alumni in the Tech sector raised $50M.

Capital Raised By Springboard Alumni by Industry Cluster in 2016

CAPITAL

$195MRAISED BY 64 COMPANIES

in 2016

Fu

nd

s ra

ised

by

Sp

rin

gb

oar

d a

lum

ni

(in

Mill

ion

s)

$150

$100

$50

2012 20142013 2015

$82M

$148M

$102M

$192M

$200

Technology/Digital Media/IT/Software/SaaS; 26%

Cleantech; 2%

Digital Health; 31%

Life Sciences; 36%

Consumer Products; 3%

Sports Innovation/Active lifestyle, <1%

Defense/Cyber/Robotics; 1%

In 2016, 64 companies raised $195 million. In comparison, 96 companies raised $192 million in 2015. Spring-board alumni are raising larger rounds of capital, an indication of quality and growth as they scale.

$195M

2016

CAPITAL

Debt; 8%

Private Equity; 11%

Angel; 5%

Grant; 9%

Strategic Partner; 15%

Others; 9%

Venture Capital; 41%

Friends and Family; 2%

“CONNECT helped us from the incorporation of Biomatrica to the development of a global enterprise. The participation in all of the CONNECT programs allowed us to better develop the concepts and find the funding for our Innovation.”

Judy Muller-Cohn | Founder and Former CEOBiomatrica | Springboard Class of 2009

“

Capital Raised By Springboard Alumni by Source in 2016““CONNECT played an integral part in PureWick’s

success in raising funds and attaining a successful exit.”

Camille Newton | PresidentPurewick | Springboard Class of 2016

Springboard Alumni Continue to Contribute to the Growing Innovation Economy

Springboard alumni companies have created more than 6,000 new jobs since 2005. Almost 5,000 of these jobs were created after the alumni companies completed the Springboard program.

JOBS CREATED BY KEY SECTORS

Technology/Defense/Cybersecurity/Cleantech

4,220 Life Sciences & Digital Health

2,020

JOBS

Total number of employees before acceptance into Springboard.

Total number of employees after completing Springboard, as of December 2016.

After 6,282

Before 1,695

3.7XINCREASE IN NEW JOBS

CONNECT mentors instructed North America Repower’s founders on how to identify strategic investment partners and how to pitch NAR’s story in a concise and clear fashion. They also provided guidance on avoiding many of the pitfalls of private equity investment.

John Reed | Founder | North American Repower Springboard Class of 2011

Note: Others includes microVC, founders capitalization, prize money.

CAPITAL

Company Alumni Class Amount Raised in 2016* Industry Sector

Classy 2009 $30.0M Technology

StatRad 2013 $29.0M Life Sciences

GlySens 2010 $20.0M Life Sciences

Inhibrx 2011 $15.0M Life Sciences

Trefoil Therapeutics 2013 $10.0M Life Sciences

Mabvax Therapeutics 2006 $10.0M Life Sciences

MD Revolution 2013 $9.7M Life Sciences

NanoCellect Biomedical 2012 $8.1M Life Sciences

2C Tech Corporation 2012 $6.0M Life Sciences

eSub 2009 $5.0M Technology

Company Jobs in 2015 Jobs in 2016 Net Increase Industry Sector

Classy 80 200 120 Technology

LIA 38 117 79 Technology

JOB CREATION

* Includes equity and non-dilutive funding

AWARDS AND RECOGNITION

• Eugene Cho, CEO of Echo, fka Echo Laboratories, won the 2016 Quick Pitch contest organized by Tech Coast Angels.

• Camille Newton, former President of PureWick, won the Athena Pinnacle Award in 2016.

• Four of the 38 2016 SDVG Cool Companies were Springboard alumni: Fragmob, Pet Wireless, Secured Universe, and eSub.

• Nine of the 30 Finalists of CONNECT’s 2016 Most Innovative New Product (MIP) Awards were Springboard affiliates.

• Four Springboard companies won 2016 MIP Awards:

Water Pigeon - Bluetech

Echo - Life Sciences Diagnostics & Research Tools

Guru - Software Digital Media & Mobile Apps

ACQUISITIONS

Source: PitchBook and sbir.gov

• SupraMed, a provider of web based medical record keeping, was acquired by Nextech.

• LIA, a provider of business intelligence on mobile platform, was acquired by Showpad.

2016 SPRINGBOARD GRADUATES

BLUETECH CLEANTECH

CONSUMER PRODUCTS

INFORMATION COMMUNICATION TECHNOLOGIES

LIFE SCIENCE THERAPEUTICS & DIAGNOSTIC TOOLS

MEDICAL DEVICES

SUCCESS

10 Companies Raised $5M or More in 2016

Source: PitchBook

• Brain Corporation raised $114M Series C Round from SoftBank’s Vision Fund with participation from Qualcomm Ventures in July 2017. Brain Corp’s primary product is the BrainOS platform, a software designed to make it possible to create autonomous commercial robots using off-the-shelf hardware and sensors.

• Daylight Solutions was acquired by Leonardo DRS for $150M in June 2017. Daylight Solutions developed a laser technology for molecular detection, imaging and illuminations systems used in life sciences research, industrial processes, and military applications.

• North American Repower received a grant from the California Energy Commission to demonstrate improved efficiency in natural gas engines.

• Planck Aerosystems entered a technology partnership with Madrid based Alpha Unmanned Systems (AUS) in October 2017. Planck Aerosystem’s software provides real-time situational awareness, object detection, and tracking to the Alpha 800 helicopter. AUS is a market leader in the helicopter Unmanned Autonomous Vehicle market.

• Portable Genomics (PG) and CFTechnology.org entered into partnership in January 2017 to provide a private and tailored health data management platform for cystic fibrosis patients on their mobile device. PG is a digital health company that enables individuals to control their health and share their personal health data with healthcare providers, payers, and research organizations.

• PureWick Inc. was acquired by C.J. Bard (now BD) in June 2017. PureWick’s female non-invasive, external catheter offers a new option for managing female urinary incontinence.

• Trefoil Therapeutics is collaborating with the National Institutes of Health’s (NIH) National Center for Advancing Translational Sciences (NCATS) to complete the investigational new drug enabling activities for their lead compound. The lead compound has the potential to treat Fuchs endothelial corneal dystrophy, a rare disease indication.

2017 Notable Milestones of Springboard Alumni

“Our company has pivoted greatly, but many relationships today are still heavily connected to our time spent with CONNECT, and our mentors in Springboard.”

Lisa Isaacson | Chief Business Development Officer | NuLeds Springboard class of 2010

“CONNECT – Springboard provided invaluable advice and suggestions for transitioning our products to mobile platforms.”

Gary Miner | President | Vivos Health |Springboard class of 2007

“We have definitely gained a lot of credibility as a Springboard alumnus. It has helped quite a bit as we go through our

fundraising process.”

Ajit Viswanathan | CEO| Doctible | Springboard class of 2014

“Springboard was a fantastic experience for us and led directly to securing a manufacturing partner, which probably cut 6

months off our time to market.”

Bryan Pate | CEO | Elliptigo | Springboard class of 2009

“I have to give special praise to our Springboard mentors. They showed “tough love” from the beginning combined with sage advice. Together, we re-worked our business and produced a

viable plan for long-term success.”

Glenn Oliver | CEO |H2Bid | Springboard class of 2016

“The Springboard process helped us refine and strengthen our pitch and pitch deck, helping us attract our first two investors.”

D.J. Todd |Product Manager |Puptimize | Springboard class of 2016

WHAT SPRINGBOARD GRADUATES HAVE TO SAY

““CONNECT helped us polish our strategy and pitch so we were prepared to begin fundraising.”

Eugene Cho | CEO | Echo | Springboard Class of 2014

“Springboard helped us make sure we had a complete understanding of our business model, go-to-market strategy, and business proposition to be able to speak to investors in their language.”

Brian Haghighi | CEO | California Fruit Wine Corp.Springboard class of 2013

“We gained a massive amount of learning in a short period of time through the CONNECT Springboard program, and made valuable connections with the mentors and beyond. We are deeply grateful for all the support and recommend the opportunity to any ambitious entrepreneur.”

Scott Ferguson | CEO | Aptitude Medical System

Springboard class of 2013

“

CONNECT Springboard Team

Steve HoeyVice President, Springboard Accelerator Program & Innovation Research

Petra StegmannDirector, Springboard Accelerator Program

Anindita SarkarManager, Springboard Accelerator Program& Innovation Research

SPONSORSHIP AND SUPPORTContactspringboard@connect.org