2003 1st Half

In this issue:

New Developments
  • Chrysalis Makes Entrepreneur Magazine's List of Top 100 VC Firms
  • Robert J. Bunker Joins Chrysalis as Executive-in-Residence
  • Wright Steenrod Named Senior Associate

New Investments
  • Interquest Communications, Inc.
  • Information Outfitters
  • HealthMedia, Inc.

Portfolio Company Developments
  • Appriss Inc.
  • Genscape, Inc.
  • Advanced Imaging Concepts (AIC)

New Developments

Chrysalis Makes Entrepreneur Magazine's List of Top 100 VC Firms

The July 2003 issue of Entrepreneur magazine listed Chrysalis Ventures among the "top 100 venture capital firms for entrepreneurs" in the United States. This ranking was based on information provided in the "MoneyTree Survey" from PricewaterhouseCoopers, Thomson Venture Economics, and the National Venture Capital Association.

According to the article, Chrysalis closed three early-stage deals in 2002: HCCA International, Inc., Confluent Technologies, and Construction Software Technology, Inc.

Please click here to view the complete list.

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Robert J. Bunker Joins Chrysalis as Executive-in-Residence

Robert J. Bunker, former Chairman, President and Chief Executive Officer of Aperture Credentialing, Inc., has joined Chrysalis Ventures as Executive-in-Residence. Chrysalis was an original investor in Louisville-based Aperture, the nation's leading physician credentialing company. The company was acquired by Ingenix Health Intelligence, a subsidiary of UnitedHealth Group (NYSE: UNH), in October 2002.

Bob has over 26 years of experience in hospital and managed care systems management. Prior to joining Aperture, he served as the Vice President of Public Programs at Humana where he managed Humana's Medicare Risk, Medicaid, Federal Employee Health Benefits Program, and over 300 Large Group and National Account contracts. Prior to his Public Programs assignment, Bob served as Chief Operating Officer of Humana Military Healthcare Services where he played a pivotal role in obtaining a $4 billion dollar government contract that led to the establishment of this new Humana subsidiary. As Chief Operating Officer, Bob managed field operations in seven states, provider network development, customer service, marketing, billing and enrollment, and claims services.

Prior to joining Humana in 1994, Bob served 20 years on active duty in the Air Force Medical Service Corps and is a highly decorated retired Air Force Lieutenant Colonel. He holds a Masters Degree in Business Administration from Pepperdine University and an undergraduate business degree from Golden Gate University.

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Wright Steenrod Named Senior Associate

In July 2003, Chrysalis Ventures announced that Wright Steenrod has been promoted to Senior Associate. Since joining Chrysalis in June 2001, Wright has worked with a wide range of portfolio companies, including Genscape, Inc., HCCA International, Inc., and Advanced Academics, and currently serves on the board of directors of bCatalyst, Inc.

Prior to joining Chrysalis, Wright was Vice President of Business Development for Darwin Networks. From 1995 to 1998, he worked at SunTrust Bank as an associate in Mergers & Acquisitions. Before SunTrust, he served five years in the US Marine Corps from which he was honorably discharged as a Captain. Wright holds a BA from Princeton University.

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New Investments

Interquest Communications, Inc.

In July 2003, Chrysalis Ventures led a $5 million financing for Seattle-based Interquest Communications, Inc., a provider of broadband data services to the real estate industry. Interquest was recently named by Venture Reporter as one of the “Top 100” venture funded companies of 2002. ComVentures of Palo Alto, CA, a leading communications venture firm and current investor in the company, also participated in this Series B round of funding.

Interquest provides on-premise high-speed Internet solutions to high-end apartment and condominium communities owned and operated by large management companies, REITS, and private owners. The company's most recent acquisition, the assets of BroadBandNow!, makes Interquest the largest private ISP specializing in providing high-speed Internet services to the apartment market. Over the course of the past two years, Interquest has purchased the network assets of several bankrupt Internet service providers. Interquest serves buildings with more than 120,000 total apartment units in TX, CO, AZ, UT, CA, OR, and WA, and has more than 10,000 customers.

Chrysalis Managing Director Bob Saunders has joined Interquest's board of directors.

Please click here to view the complete press release.

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Information Outfitters

In April 2003, Chrysalis Ventures agreed to invest $1.4 million in Louisville-based Information Outfitters, a special-interest publishing company.

Information Outfitters owns and operates EMAZING.com, a service that publishes subscription-based newsletters covering a wide variety of topics including home repair, cooking, and technology. Headquartered in Louisville, EMAZING.com was founded in 1998 by entrepreneurs Joe Pierce and Bob Ford, sold to Sony Music in 1999, and acquired by Information Outfitters in April 2003. Information Outfitters also was founded by Pierce and Ford in 2003.

Chrysalis Managing Director Bob Saunders has joined Information Outfitters' board of directors.

Please click here to view the complete press release.

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HealthMedia, Inc.

In March 2003, Chrysalis Ventures led a $3 million investment in Ann Arbor-based HealthMedia, Inc., a technology and health management company.

HealthMedia builds and delivers individualized, one-to-one solutions for pharmaceutical and medical device companies, health plans, self-insured employers, and organizations focused on disease management. Its custom solutions combine the expertise and insight of health professionals with technology to deliver Web and print programs that address an individual's unique health needs.

HealthMedia also offers a comprehensive suite of commercially licensable tailored health products that support health promotion, disease management, and other health initiatives. These products help employers, healthcare plans, integrated health systems, government agencies, hospitals, and universities to combat rising health care costs by targeting the nation's top health risks.

HealthMedia has created successful programs for conditions and issues such as diabetes, HIV, hypertension, hemophilia, arthritis, migraine, lower back pain and other chronic pain conditions, teen health, smoking cessation, nutrition improvement, weight management, physical activity, stress management, and health risk assessment. Its programs have been used by more than 800,000 individuals in the United States, Canada, the United Kingdom, France, Italy, Germany, and Japan.

Chrysalis Principal Koleman Karleski has joined HealthMedia's board of directors.

Please click here to view the complete press release.

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Portfolio Company Developments

Appriss Inc.

On July 21, 2003, Louisville-based Appriss Inc. received front-page coverage in USA TODAY newspaper for its flagship product, Victim Information and Notification Everyday (VINE®). Florida, Texas, and Utah have become the 16th, 17th, and 18th states to implement the VINE® system statewide.

Appriss, formerly Interactive Systems, LLC, provides innovative technology solutions that help governments serve and protect their citizens. VINE® allows crime victims and the general public to obtain offender custody status information over the telephone in more than 1,200 counties in 36 states and two Canadian provinces. Partnering with a team led by AT&T Government Solutions Inc., Appriss provides automated notification services to victims of Federal crimes through the U.S. Department of Justice. Other innovative products and services include JusticeXchange™, an Integrated Criminal Justice application.

Chrysalis has been an investor in Appriss since Appriss was founded in 1994. Doug Cobb, Appriss CEO, was also a co-founder of Chrysalis Ventures.

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Genscape, Inc.

On June 17, 2003, Louisville-based Genscape, Inc. CEO David A. Doctor, Chief Development Officer Sterling Lapinski, and Chief Marketing Officer Sean O'Leary were named Emerging Entrepreneurs of the Year for Southern Ohio and Kentucky by accounting firm Ernst & Young. Genscape is an originator of real-time power supply information to support decision-making by energy traders, power plant and line owners and operators, regulators, and other energy market participants.

These awards are given annually to business owners or operators "who have demonstrated excellence and extraordinary success in such areas as innovation, financial performance and personal commitment to their business and communities." Award winners are eligible for the National Entrepreneur of the Year competition which will be announced on November 22, 2003 in Palm Springs, California.

Chrysalis Ventures has been Genscape's lead investor since November 2001. Chrysalis Managing Director Bob Saunders serves on Genscape's board of directors.

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Advanced Imaging Concepts (AIC)

On July 16, 2003, Chicago-based Allscripts Healthcare Solutions (NASDAQ: MDRX) announced its acquisition of Advanced Imaging Concepts, Inc. (AIC) for $18 million in cash and assumption of stock options. Louisville-based AIC provides document imaging, scanning, and management software for healthcare providers. Allscripts and AIC have worked in a strategic partnership since 2002.

AIC's IMPACT.MD product has recently won a number of prestigious industry awards including Top Honors in the document imaging solutions category at the 2003 TEPR ("Towards Electronic Paper Records") Convention. IMPACT.MD serves as a single, digital repository for all hard copy patient files in the physician's office. Authorized users can access patient records instantly with the click of a mouse from any workstation, which eliminates the need for paper records.

AIC currently has over 250 installations in 40 states and over 14,000 licensed users. The company was named a finalist for the 2003 Emerging Entrepreneur of the Year Award for Southern Ohio and Kentucky by accounting firm Ernst & Young.

AIC is a portfolio company and former incubation services partner of Louisville-based business accelerator bCatalyst, Inc., a Chrysalis Ventures affiliate and portfolio company. Chrysalis Senior Associate Wright Steenrod serves on bCatalyst's board of directors and has monitored the AIC investment.

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Chrysalis Ventures
101 South Fifth Street, Suite 1650
Louisville, KY 40202
(502) 583-7644 phone
(502) 583-7648 fax
Web site : http://www.chrysalisventures.com/
E-Mail: info@chrysalisventures.com

© 2003 Chrysalis Ventures, LLC

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