2004 2nd Half

In this issue:

New Developments
  • Irv Bailey Becomes Senior Advisor
  • Matt Winn Joins Chrysalis as Analyst
  • Bob Saunders Receives Top TeN Award for Excellence in Technology
  • George Emont to Head Triathlon Medical Ventures' New Office in Louisville

New Investments
  • Med-Shred, Inc.
  • CWK Network, Inc.
  • 2004 Summary of New Investments

Portfolio Company Developments
  • iSqFt
  • LifeTrust America LLC
  • Intelliseek, Inc.


New Developments

Irv Bailey Becomes Senior Advisor

In January 2005, Chrysalis Managing Director Irving W. Bailey transitioned to the role of Senior Advisor. This change results from Irv’s relocation to Riga, Latvia, where his wife, Catherine Todd Bailey, is serving as United States Ambassador.

As Senior Advisor, Irv will continue to participate in deliberations of the firm’s investment committee, but will generally not represent Chrysalis in new portfolio investments.

Irv joined Chrysalis as an Executive-in-Residence in 1998 and became Managing Director in 2001. He had previously served as Chairman and CEO of Providian Corporation (NYSE: PVN), which he sold to Aegon in 1997. Irv currently serves as a director of Aegon NV (NYSE: AEG), Computer Sciences Corp. (NYSE: CSC), and Hospira Inc. (NYSE: HSP), as well as of the National Association of Small Business Investment Companies (NASBIC) and the Ethics Resource Center.



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Matt Winn Joins Chrysalis as Analyst

In January 2005, Matthew H. Winn joined Chrysalis Ventures as an Analyst. Matt, a Washington, DC native, earned a BA in Economics from Princeton University in June 2003.

At Chrysalis, Matt will provide analytical support to the investment team for Chrysalis' three primary investment sectors: healthcare information and services, media and communications, and education and training.


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Bob Saunders Receives Top TeN Award for Excellence in Technology

In October 2004, Chrysalis Managing Director Bob Saunders was honored with the MAVEN Award given by The Technology Network of the Greater Louisville Region. The MAVEN Award, a Top TeN Award for Excellence in Technology, is given to an individual for outstanding collaboration on creating relationships and developing resources for a high tech venture.

Other Chrysalis affiliates receiving awards included Appriss Inc., winner in the community service category, and Advanced Imaging Concepts, Inc., winner in the health category. Congratulations to Bob and all the 2004 TeN award winners.

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George Emont to Head Triathlon Medical Ventures' New Office in Louisville

In October 2004, George Emont, formerly of Vital Venture Capital and Humana Ventures, left Chrysalis' Executive-in-Residence program to open the Louisville office for Triathlon Medical Ventures LLC. Cincinnati-based Triathlon is a $96 million SBIC venture capital fund focused on life science investments.

Triathlon will invest in early-stage life science companies in the Midwest with a focus on medical-science research companies. The fund plans to invest in about 20 companies over the next five years, with investments ranging from $500,000 to $4 million per company.





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New Investments

Med-Shred, Inc.

In October 2004, Chrysalis was the largest investor in a $7.0 million Series B equity financing of Houston-based Med-Shred, Inc. Co-investors in the financing included Murphree Venture Partners, Cogene Ventures, Delta Capital, Aldus Equity, Bonaventure Capital, and individual investors.

Med-Shred is the world's premier mobile on-site medical waste treatment services company, providing environmentally friendly, cost effective waste management services to hospitals, clinics, and other producers of medical waste. The company’s patented waste processor units reduce medwaste liabilities, require no hospital capital investment, provide HIPPA protection, and reduce costs.

Concurrent with the financing, waste industry veteran Roger Ramsey became Chairman and CEO of Med-Shred. Roger is the founder and former CEO of Allied Waste Industries, Inc. (NYSE: AW) and previously the co-founder and CFO of Browning Ferris Industries (BFI) which was acquired by Allied in 1999. Throughout his career, Roger has played an important role in taking three companies from start-up to multi-billion dollar public corporations.

Chrysalis Principal Koleman Karleski has joined Med-Shred’s board of directors.


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CWK Network, Inc.

In September 2004, Chrysalis and The Goldman Sachs Foundation co-led a $4.5 million equity investment in Atlanta-based CWK Network, Inc. The company's principal existing investors, including Diamond State Ventures and Cox Communications, Inc., also participated in the financing.

CWK Network distributes news, information, and educational programming focused on the health and well being of children to school districts across the country, and to more than 65% of U.S. households through a network of local television stations and cable partners. The company's programs have become a trusted resource in the market for reality-based programming on children's issues while serving local communities, educators, school districts, and families.

Chrysalis Managing Director Bob Saunders has joined CWK’s board of directors.



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2004 Summary of New Investments



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Portfolio Company Developments

iSqFt

In October 2004, Cincinnati-based iSqFt was named to the Inc. 500 list of the fastest-growing private companies in America. With four year annual sales growth of 496% and total growth of 1,984%, the company was ranked #50 on this year's list and #1 in the construction industry category.

Founded in 1993 as Construction Software Technologies, Inc., iSqFt is an emerging construction industry leader in providing online tools designed to streamline bidding processes and eliminate inefficiencies. The company provides online connectivity so that general contractors, subcontractors, suppliers, and manufacturers can access project information and use a variety of work tools to find more work and manage the bidding process effectively, saving both time and money in the process.

Chrysalis participated in the company's $5.5 million Series A financing in June 2002. Chrysalis Managing Director Bob Saunders serves on iSqFt's board of directors.




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LifeTrust America LLC

In November 2004, Five Star Quality Care, Inc. (AMEX: FVE) of Newton, MA acquired Nashville-based LTA Holdings, Inc. for $211 million. LTA Holdings, formerly known as LifeTrust America LLC, owns and operates Morningside Assisted Living communities throughout the Southeast.

Founded in 1996 by Morgan Stanley Capital Partners, Clayton Associates, and Coleman Swenson, LTA Holdings is a privately held senior services company focused on providing community-based residential and wellness services to the senior population. Chrysalis' original investment was in Richmond, VA-based Manorhouse Assisted Living, Inc., an owner and operator of assisted living centers in the mid-Atlantic states, which was subsequently acquired by LifeTrust America in October 2002.






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Intelliseek, Inc.

In November 2004, Cincinnati-based Intelliseek, Inc. announced that Mike Nazzaro had been named CEO and Mahendra Vora had become Chairman of the board of directors. This announcement followed the October 2004 news that Intelliseek was named to the Inc. 500 list of the fastest-growing private companies in America. The company placed 294th on this year's list and was listed among Advertising/Marketing companies, with a 123% annual growth rate and 493% total growth since its founding in 1997.

Intelliseek is a marketing intelligence firm that provides technology-driven solutions to measure and analyze online word-of-mouth behavior for marketing and advertising professionals.

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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 : www.chrysalisventures.com
E-Mail: info@chrysalisventures.com

2005 Chrysalis Ventures, LLC

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