Midwest PE & VC Quarterly Update Q3-17

1. Bridgepoint Merchant Banking is a division of Bridgepoint Holdings, LLC. Securities offered through an unaffiliated entity, M&A Securities Group,
Inc., member FINRA/SIPC. This entity is not affiliated or associated with, authorized or sponsored by Bridgepoint Advisers Limited
Midwest Capital Raise Quarterly
Update
Third Quarter 2017

2. Midwest Capital Raise Quarterly Update
1bridgepointmb.com
Bridgepoint Midwest Capital Raise Indices
Index Definition
Q1-11 = 100. As defined by Bridgepoint Merchant Banking, the Bridgepoint Midwest M&A Index is assembled by summing the number of transactions (for
transactions that meet the Transaction Requirements below, as sorted by announced date) announced over the latest two quarters. Year-over-year and
quarter-over-quarter percent change is calculated and then applied to the index number for the previous applicable period.
Transaction Requirements
Target/Issuer must be located in the Midwest, and the Investor must be either a private equity or venture capital firm. Midwest defined as Iowa, Kansas,
Missouri, Nebraska, North Dakota, Oklahoma, and South Dakota.
Source: Bridgepoint Merchant Banking, Capital IQ, Pitchbook (9/30/2017)
Private Equity and Venture Capital Volume Depressed While
Valuations Remain High
▪ Private Equity Index Summary: On a year-over-year
basis, the PE Index decreased from 101.6 in Q3-16 to
73.4 in Q3-17, representing a 27.7% decline. On a
quarter-to-quarter basis, the Index decreased 6.0% from
78.1 following recent lows of 71.9 in Q4-16
▪ Perspective / Key Drivers: Both the PE Index and
transaction volume remained low in Q3-17 with the Index
marginally above its lowest point in more than 5 years.
Despite low deal activity, the average transaction size has
increased due to a shift towards larger, higher quality
transactions. Transaction volumes remain low due to
depressed inventory with PEs and strategic buyers
competing for a limited number of deals. Fundraising has
continued at historic levels while, concurrently, dry
powder balances swell, further increasing the competitive
landscape for high quality investment opportunities.
Valuations remain high, with EBITDA multiples seeing
only a slight decrease this year at 10.5x following new
highs of 10.7x in 2016
▪ Venture Capital Index Summary: On a year-over-year
basis, the VC Index decreased 8.2% to 97.1 in Q3-17,
from 105.8 in Q3-16. On a quarter-to-quarter basis, the
Index increased 21.7% from 79.8 in Q2-17, rebounding
from recent lows
▪ Perspective / Key Drivers: The VC Index decline is
supported by low transaction volumes in recent quarters
as the supply of high quality investments are low following
heavy activity in recent years. VC investors have shifted
focus toward supporting existing portfolio companies,
which has resulted in fewer first-time-financings.
Fundraising started the year strong and the momentum
continued in Q3-17, however, the companies receiving
investments remains stable
Third Quarter 2017
While private equity and venture capital activity remains well below recent peaks, we believe
capital markets will continue to provide funding and financing opportunities to high quality
companies with strong profitability and / or growth at favorable valuations
Bridgepoint Midwest Private Equity Index
(Q1-11 = 100)
Bridgepoint Midwest Venture Capital Index
(Q1-11 = 100)
-60%
-40%
-20%
0%
20%
40%
60%
70
80
90
100
110
120
130
Q3-12
Q4-12
Q1-13
Q2-13
Q3-13
Q4-13
Q1-14
Q2-14
Q3-14
Q4-14
Q1-15
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Yr/YrChange(%)
Index
Yr/Yr Change PE Index
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
40
60
80
100
120
140
160
Q3-12
Q4-12
Q1-13
Q2-13
Q3-13
Q4-13
Q1-14
Q2-14
Q3-14
Q4-14
Q1-15
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Yr/YrChange(%)
Index
Yr/Yr Change VC Index

3. Selected Midwest Q3-17 Capital Raise Transaction Statistics(a)
▪ Financials and Information Technology accounted for
55.0% of total Midwest private equity financing
transaction volume in Q3-17
▪ Financials, Information Technology, and Industrials
volumes rose over the quarter (11.2%, 10.5%, and
10.2% respectively), while Healthcare saw a decrease of
13.8%
▪ The Materials, Utilities, and Energy sectors did not have
any volume in Q3-17, down from 5 total transactions in
Q2-17
2bridgepointmb.com
Midwest Capital Raise Quarterly Update
▪ The Information Technology sector captured 40% of the
quarter’s investment activity, an increase of 15.8% from
Q2-17
▪ Healthcare, Consumer Discretionary, and Energy
accounted for more than 50% of the remaining volume
(24.4%, 13.3%, and 13.3%, respectively)
▪ Venture capitalists primarily finance growth and will
continue to seek investments in disruptive technology,
which is illustrated by the Technology and Healthcare
sector’s large allocation of invested capital
Midwest Private Equity Transaction Volume by Sector
Midwest Venture Capital Transaction Volume by Sector
▪ Quarterly Midwest Private Equity financing volume
remained steady at 22 transactions in Q3-17.
Compared to 2016, year-to-date 2017 volume was
down 23%. This drop was larger than the national
trend, where year-to-date volume was down by 11%,
despite the prolonged elevation in fundraising
▪ The Midwest median transaction size decreased by
56.4% to $2.2mm from $5.0mm in Q2-17. Q2-17 was a
noticeable uptick above the historical median
Third Quarter 2017
▪ Quarterly Midwest venture capital volume increased by
40.5% from 42 transactions in Q2-17 to 59 transactions
in Q3-17. On a year-over-year basis, total transaction
size decreased by 9.2% from Q3-16
▪ VC volume in the Midwest remains generally low,
reinforcing the downward trend since Q3-14. On a
national level, transaction volumes are following a
similar trend and multi-year decline
▪ The median transaction size in Q3-17 was $1.7mm, a
spike from recent lows of $0.5mm in Q1-17, but below
the Q2-17 median of $2.2mm
22
2525
22
24
41
28
36
42
34
3232
22
4040
37
25
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
0
5
10
15
20
25
30
35
40
45
MedianTEV($mm)
Volume
Quarterly Midwest PE Financing Volume
PE Volume PE Median Transaction Size
59
4241
36
65
45
5940
73
62
7273
91
6869
73
82
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
0
10
20
30
40
50
60
70
80
90
100
MedianTEV($mm)
Volume
Quarterly Midwest VC Financing Volume
VC Volume VC Median Transaction Size
35.0%
20.0%
15.0%
15.0%
10.0%
5.0%
Financials
Information Technology
Industrials
Consumer Staples
Healthcare
Consumer Discretionary
40.0%
24.4%
13.3%
13.3%
4.4%
2.2% 2.2%
Information Technology
Healthcare
Consumer Discretionary
Energy
Financials
Consumer Staples
Industrials

4. Selected Midwest Q3-17 Capital Raise Transaction Statistics (Continued)(a)
Selected Midwest Q3-17 Capital Raise Transactions(a)
(a) Midwest defined as Iowa, Kansas, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota. Issuer must be located in the Midwest.
Source: Bridgepoint Merchant Banking, Capital IQ
3bridgepointmb.com
Midwest Capital Raise Quarterly Update
Third Quarter 2017
▪ Total private equity and venture capital transactions
with Midwest issuers increased 20.9% from 67 in Q2-17
to 81 in Q3-17
▪ Transactions with Midwest investors decreased 15.4%
from 26 in Q2-17 to 22 in Q3-17
▪ The demand for investments in Midwest companies
continued to increase from recent lows in Q4-16;
however, due to the inadequate local investor base,
local companies routinely seek out-of-market capital to
meet their financing needs – “importing capital”
0
20
40
60
80
100
120
Volume
Quarterly Midwest Financings Issuers and
Investors
Midwest Issuers Midwest Investors
Announced Target Target Location Investor Investor Type Target Sector Transaction Size ($mm)
09/30/2017 Rational Surgical Solutions, LLC IA - Venture Capital Healthcare $0.0
09/26/2017 FSB Financial Services Inc. IA - Private Equity Financials 10.0
09/20/2017 PODYUM, LLC SD - Venture Capital Information Technology 0.0
09/19/2017 CarteGraph Systems, Inc. IA Pamlico Capital Private Equity Information Technology 0.0
09/14/2017 Kindred Systems, Inc. KS First Round Capital; Tencent Holdings Ltd.; Eclipse Ventures, LLC Venture Capital Information Technology 28.0
09/06/2017 OneCor Services, LLC ND Ranch Creek Partners, LLC; Hillstar Capital Private Equity Industrials 0.0
09/06/2017 Acass Systems LLC NE - Venture Capital Consumer Discretionary 1.6
08/31/2017 FSB Financial Services Inc. IA - Venture Capital Financials 2.1
08/23/2017 Heavenly Organics, LLC IA - Private Equity Consumer Staples 4.1
08/17/2017 Certintell, Inc. IA Prairie Crest Capital Venture Capital Healthcare 0.2
08/16/2017 iotaMotion, Inc. IA - Venture Capital Healthcare 2.0
08/07/2017 Nadel and Gussman NV, LLC OK Nadel and Gussman, LLC; Post Oak Energy Capital, LP Venture Capital Energy 100.0
08/03/2017 Interface Security Systems LLC MO Prudential Capital Group, L.P.; SunTx Capital Partners Private Equity Information Technology 125.0
07/26/2017 Premier Crop Systems Holding, LLC IA Syngenta Ventures Venture Capital - 0.0
07/25/2017 Valiant Midstream, LLC OK Tailw ater Capital LLC Venture Capital Energy 150.0
07/24/2017 Prospect Creek Investors, LLC MO - Venture Capital Real Estate 6.0
07/20/2017 GRIT, LLC NE - Venture Capital - 3.8
07/17/2017 MultiMechanics, Inc. NE Invest Nebraska Corporation; Anzu Partners; Solvay Ventures Venture Capital Information Technology 1.9
07/12/2017 West Des Moines Hotel Associates, LLC IA - Venture Capital Consumer Discretionary 3.0
07/11/2017 Ring-Neck Energy & Feed, LLC SD Lake Area Corn Processors, LLC Venture Capital Energy 10.0
07/11/2017 Native Exploration Holdings, LLC OK Kayne Anderson Capital Advisors, L.P. Venture Capital Energy 140.0
07/06/2017 PopBookings KS Missouri Technology Corporation, Investment Arm; iSelect Fund Management, LLC Venture Capital Information Technology 1.0
07/06/2017 Agile Sports Technologies, Inc. NE Accel Partners; Nelnet, Inc. (NYSE:NNI) Private Equity Information Technology 30.0
06/28/2017 New Leaf Symbiotics, Inc. MO
Open Prairie Ventures; Pangaea Ventures Ltd.; Otter Capital LLC; RockPort Capital
Partners; Monsanto Grow th Ventures; Lew is & Clark Venture Capital, LLC
Private Equity Healthcare 24.0
06/23/2017 Native American Natural Foods LLC SD - Private Equity Consumer Staples 1.1
06/22/2017 Ameren Transmission Company of Illinois MO - Private Equity Utilities 450.0
06/19/2017 Connectria Corporation MO Bregal Sagemount Private Equity Information Technology 0.0
06/15/2017 JEO Building Co NE - Private Equity - 0.2
06/14/2017 Iow a Approach inc. IA - Venture Capital Healthcare 5.0
06/14/2017 Cofactor Genomics, Inc. MO
Menlo Ventures; WS Investments; Ascension Ventures;
Y Combinator Management LLC; Data Collective; iSelect Fund Management, LLC
Venture Capital Healthcare 18.0
06/13/2017 Casey's General Stores, Inc. IA - Private Equity Consumer Staples 400.0
06/08/2017 STANDING Rock Sioux Tribe SD Wallace Global Fund Venture Capital - 1.0
06/07/2017 Esculon, Inc. NE - Venture Capital Healthcare 2.9

5. USD5.0 million
Equity Capital Raise
USD2.5 million
Debt Capital Raise
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banking firm that serves clients throughout the corporate lifecycle by providing merger and acquisition and corporate
finance advisory services.
With more than 117+ years of cumulative experience, Bridgepoint Merchant Banking professionals have completed
over $158 billion of merger and acquisition, capital raising, corporate finance and transaction advisory services across
a wide range of industries.
When considering a sale of your business, the acquisition of a business, and/or raising capital for a business or
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at the contact information above to discuss how we can help you.
This update is for informational use only. Information contained in this update is based on data obtained from sources believed to be reliable.
Nothing in this publication is intended as investment advice. Use of any of the included proprietary information for any purpose without the written
permission of Bridgepoint Merchant Banking is prohibited. The list contained herein represents selected transactions completed by Bridgepoint
Principals while associated with Bridgepoint Merchant Banking, as well as securities transactions on which they advised in their capacity as
investment bankers registered with various broker-dealers.
Bridgepoint Merchant Banking Contact Information
Des Moines, Iowa
4bridgepointmb.com
Omaha, Nebraska
Lincoln, Nebraska
Midwest Capital Raise Quarterly Update
Sell-side Advisor
Sole Financial Advisor
Not Disclosed
Sell-side advisory on
sale to Beacon Roofing
Supply,
Inc.
Sole Financial Advisor
Third Quarter 2017
Selected Bridgepoint Merchant Banking Transactions
Not Disclosed
Equity Capital Raise
Sole Bookrunner
June 2014
Adam Claypool
Managing Principal
aclaypool@bridgepointmb.com
515.325.7615
Matt Plooster
Managing Principal
mplooster@bridgepointmb.com
402.817.7900
James Mackay
Managing Principal
jmackay@bridgepointmb.com
515.325.7615
Paul Galloway
Managing Principal
pgalloway@bridgepointmb.com
515.325.7616
Wm. Lee Merritt
Managing Principal
wmerritt@bridgepointmb.com
402.817.7904
Mike Anderson
Managing Principal
manderson@bridgepointmb.com
402.817.7902
Gary Grote
Managing Principal
ggrote@bridgepointmb.com
402.817.7940
Joe Liss
Transaction Principal
jliss@bridgepointmb.com
402.817.7900
About Bridgepoint Merchant Banking
Sell-side Advisor
Sole Financial Advisor