FY 2012 Annual Report

I N N OVAT I O N 20 1 2

i2E ANNUAL REPORT

We work directly with entrepreneurs, researchers and companies to help them develop their technolo-gies, launch and grow new businesses and access needed capital. We do that through our team of ven-ture advisors who bring a depth of knowledge and experience to clients that provide them with the tools to successfully launch a company and navigate the treacherous early stages of the business life cycle. We provide access to capital through nearly $40 million of investment capital under our management. And we actively engage in entrepreneurial development through initiatives such as our Entrepreneur-in-

Residence workshops and Donald W. Reynolds Governor’s Cup Business Plan competition.

Busy entrepreneurs tell us that our model works for them because we not only provide high quality venture advice, capital and entrepreneurial development, we act as a portal to other private and public resources – making it easier to access the right information, expertise and investment at the right time.

i2E’s commitment to transparency in our operations, along with demonstrated evidence of strong cor-porate governance and management were recognized in October 2010 when we received the Certificate

of Excellence by the national Standards for Excellence Institute.

The certification reflects fundamental values of honesty, integrity, fairness, respect, trust, responsibility and accountability that we show in our everyday operations. i2E’s programs and services, management, fundraising and financial practices were examined in-depth before the certification was awarded. i2E was one of the first organizations to be certified under the national Standards accreditation program

that began in 2006 and only the second non-profit in Oklahoma to achieve the certification.

We’re proud of the recognition that our efforts have received, as well of the results that are demon-strated on these pages in new jobs, investments dollars and increased wealth for all of Oklahoma.

Our Mission:

To Nurture Entrepreneurs and Build High-Growth Companies

in Oklahoma.H I G H L I G H T S

2 0 1 2

Provided advisory services to 105 Oklahoma high-growth start-up companies

Assisted 28 companies in raising $24.5M in private capital

Established Ardmore SeedStep Angels chapter

Reached a milestone by providing $1 million in scholarships, fellowships

and cash awards to college students

Featured in the federal Economic Development Administration annual report

Selected to manage $13.1M in funding from the U.S. Treasury

through the State Small Business Credit Initiative

1

We work directly with entrepreneurs, researchers and companies to help them develop their technolo-gies, launch and grow new businesses and access needed capital. We do that through our team of ven-ture advisors who bring a depth of knowledge and experience to clients that provide them with the tools to successfully launch a company and navigate the treacherous early stages of the business life cycle. We provide access to capital through nearly $40 million of investment capital under our management. And we actively engage in entrepreneurial development through initiatives such as our Entrepreneur-in-

Residence workshops and Donald W. Reynolds Governor’s Cup Business Plan competition.

Busy entrepreneurs tell us that our model works for them because we not only provide high quality venture advice, capital and entrepreneurial development, we act as a portal to other private and public resources – making it easier to access the right information, expertise and investment at the right time.

i2E’s commitment to transparency in our operations, along with demonstrated evidence of strong cor-porate governance and management were recognized in October 2010 when we received the Certificate

of Excellence by the national Standards for Excellence Institute.

The certification reflects fundamental values of honesty, integrity, fairness, respect, trust, responsibility and accountability that we show in our everyday operations. i2E’s programs and services, management, fundraising and financial practices were examined in-depth before the certification was awarded. i2E was one of the first organizations to be certified under the national Standards accreditation program

that began in 2006 and only the second non-profit in Oklahoma to achieve the certification.

We’re proud of the recognition that our efforts have received, as well of the results that are demon-strated on these pages in new jobs, investments dollars and increased wealth for all of Oklahoma.

Our Mission:

To Nurture Entrepreneurs and Build High-Growth Companies

in Oklahoma.H I G H L I G H T S

2 0 1 2

Provided advisory services to 105 Oklahoma high-growth start-up companies

Assisted 28 companies in raising $24.5M in private capital

Established Ardmore SeedStep Angels chapter

Reached a milestone by providing $1 million in scholarships, fellowships

and cash awards to college students

Featured in the federal Economic Development Administration annual report

Selected to manage $13.1M in funding from the U.S. Treasury

through the State Small Business Credit Initiative

1

Tulsa’s Word Industries Fabrication, LLC produces fabricated pipe, metering and other products for the nation’s energy industry. Founded in 2011 by long-time manufacturing veteran Tom Word, the company’s products help producers bring oil and gas out of the ground and keep

it flowing to U.S. consumers.

For the company’s 65 employees, there is a sense of urgency and mission to meet high demand for oil field equipment that translates into more U.S. energy production and less

dependence on foreign sources.

“Our employees have a certain pride and swagger that they are helping America declare its energy independence,” Word said. “You might not think that welders and pipefitters would

see their role in global energy markets, but they do.” Its production techniques and on-time delivery of critical oilfield equipment differentiates Word from other manu-facturers that can’t meet industry demands of time and quality. “Until the infrastructure catches up, many wells will remain capped,” Word said. “(Producers) only wish we

could deliver more and have greater capacity.”

Among various products the company makes at its 40,000 square foot manufacturing location in north Tulsa is a patent-pending pipe flange called the Talon Flange that reduces vibration in oilfield equipment and results in less downtime for maintenance. It also owns patents for a safety skid and a pipe gripper that add efficiency to its operations.

Tom Word turned to i2E to position the company for funding that will allow expansion of its production capacity.

“i2E has been tremendous, they have asked tough ques-tions that make me stop and say, ‘how do they know that when they’ve never fabri-cated a pipe in their life?’

We are fortunate enough to have such highly experienced

and educated resources to seek direction from.”

Out on the manufacturing floor, the company’s skilled workers have seized the mission and adopted a slogan that declares “we’re proud of our opportunity to rid the USA of

the dependence on foreign oil.”

WORD I NDU STR I ES FAB RI C AT I ON , LLC

EVERY DAY ISINDEPENDENCE DAY

2 3

Tulsa’s Word Industries Fabrication, LLC produces fabricated pipe, metering and other products for the nation’s energy industry. Founded in 2011 by long-time manufacturing veteran Tom Word, the company’s products help producers bring oil and gas out of the ground and keep

it flowing to U.S. consumers.

For the company’s 65 employees, there is a sense of urgency and mission to meet high demand for oil field equipment that translates into more U.S. energy production and less

dependence on foreign sources.

“Our employees have a certain pride and swagger that they are helping America declare its energy independence,” Word said. “You might not think that welders and pipefitters would

see their role in global energy markets, but they do.” Its production techniques and on-time delivery of critical oilfield equipment differentiates Word from other manu-facturers that can’t meet industry demands of time and quality. “Until the infrastructure catches up, many wells will remain capped,” Word said. “(Producers) only wish we

could deliver more and have greater capacity.”

Among various products the company makes at its 40,000 square foot manufacturing location in north Tulsa is a patent-pending pipe flange called the Talon Flange that reduces vibration in oilfield equipment and results in less downtime for maintenance. It also owns patents for a safety skid and a pipe gripper that add efficiency to its operations.

Tom Word turned to i2E to position the company for funding that will allow expansion of its production capacity.

“i2E has been tremendous, they have asked tough ques-tions that make me stop and say, ‘how do they know that when they’ve never fabri-cated a pipe in their life?’

We are fortunate enough to have such highly experienced

and educated resources to seek direction from.”

Out on the manufacturing floor, the company’s skilled workers have seized the mission and adopted a slogan that declares “we’re proud of our opportunity to rid the USA of

the dependence on foreign oil.”

WORD I NDU STR I ES FAB RI C AT I ON , LLC

EVERY DAY ISINDEPENDENCE DAY

2 3

Look into the future, say, 40 years from now and what do you see? Go ahead, squint if you have to. If you see yourself as an older Oklahoman still living independently

in your own home, you are no different from your peers.

An overwhelming 9 out of 10 individuals over the age of 50 say they want to “age in place,” which means they don’t see themselves in an assisted living center or nursing home.

The challenge, of course, will be to continue living indepen-dently when status or situations change and long term care services are needed. That’s where a new Tulsa-based company founded by a veteran of the long term care industry steps in.

EmpowrNet is a web-based concierge-like business that connects aging people and their families, long term care insurance carriers and service providers, ensuring their day-

to-day needs are met while still living at home.

How will it work? EmpowrNet founder Deborah Karns describes a scenario where a husband dies, leaving his

elderly wife as a widow.

With the EmpowrNet application, the widow or her family could notify the insurance provider through a web portal that her husband has died. This would immediately trig-ger an assessment of her situation and calls to necessary in-

home service providers.

Without home maintenance, health care or even house-keeping services brought to her by EmpowrNet, the new widow might otherwise be forced to move into a nursing facility right away. “If the insurer can service the widow at home even for three months, that’s a savings to them,”

Karns said.

Karns said with even a 5-10 percent reduction in use of nursing home care, cost savings to the long term care indus-

try would be $750-$1.5 billion annually.

A serial entrepreneur who had a successful career within the long term care industry, Karns sought assistance from i2E with building EmpowrNet because of past experience she

had with i2E.

“I needed a lot of coaching, a lot of information and a lot of advice. That’s

what I’ve been getting here.”

Bottom line for aging consumers is that EmpowrNet will reduce costs, improve long term care and allow more peo-ple to continue living independently longer throughout

their lives.

EMP OWR NET

A PLAN IN PLACE

4 5

Look into the future, say, 40 years from now and what do you see? Go ahead, squint if you have to. If you see yourself as an older Oklahoman still living independently

in your own home, you are no different from your peers.

An overwhelming 9 out of 10 individuals over the age of 50 say they want to “age in place,” which means they don’t see themselves in an assisted living center or nursing home.

The challenge, of course, will be to continue living indepen-dently when status or situations change and long term care services are needed. That’s where a new Tulsa-based company founded by a veteran of the long term care industry steps in.

EmpowrNet is a web-based concierge-like business that connects aging people and their families, long term care insurance carriers and service providers, ensuring their day-

to-day needs are met while still living at home.

How will it work? EmpowrNet founder Deborah Karns describes a scenario where a husband dies, leaving his

elderly wife as a widow.

With the EmpowrNet application, the widow or her family could notify the insurance provider through a web portal that her husband has died. This would immediately trig-ger an assessment of her situation and calls to necessary in-

home service providers.

Without home maintenance, health care or even house-keeping services brought to her by EmpowrNet, the new widow might otherwise be forced to move into a nursing facility right away. “If the insurer can service the widow at home even for three months, that’s a savings to them,”

Karns said.

Karns said with even a 5-10 percent reduction in use of nursing home care, cost savings to the long term care indus-

try would be $750-$1.5 billion annually.

A serial entrepreneur who had a successful career within the long term care industry, Karns sought assistance from i2E with building EmpowrNet because of past experience she

had with i2E.

“I needed a lot of coaching, a lot of information and a lot of advice. That’s

what I’ve been getting here.”

Bottom line for aging consumers is that EmpowrNet will reduce costs, improve long term care and allow more peo-ple to continue living independently longer throughout

their lives.

EM POWR NET

A PLAN IN PLACE

4 5

IDE F I MUS IC

idefi music flourished in 2012. Dozens of musicians and bands began to upload and sell music off of their unique music website. They were named Innovator of the Year winner by the Journal Record. Brady Deaton took his story to the SXSW music, film and interactive software conference in Texas. And it was named one of the participants in the inaugural Venture Spur program.

Deaton dreams big. A decade before founding idefi music, he built a recording studio in his Tulsa home. That dream became more of a nightmare when the first band he signed and invested thousands of dollars in suddenly disbanded. A decade later, the dream still burned in Deaton, so he created idefi music as

an online platform where musicians could upload and sell their music. idefi music has no upfront investment in the bands and begins providing more traditional record label services as sales grow. The innovative approach to the music business benefits musicians by allowing them to control the music sold directly to fans.

“The music industry is changing, but one thing remains constant,” Deaton says. “Millions of artists worldwide dream of the day they get one shot, that one chance to show the world. They hope for a day they can defy what others thought they could do and defy the norm.”

idefimusic.com defies the traditional music model. It’s risk free to both bands and idefi music. And it connects musicians and fans any-where the world.

Brady Deaton’s dream is alive in idefi music.

“When I first showed up at i2E, all I had was an idea and a dream, i2E helped me develop

my dream into a viable business. It has not al-ways been easy, but they ask the hard questions

while giving guidance and support.”

HI-DEFIANCE

7

ID E F I M US IC

idefi music flourished in 2012. Dozens of musicians and bands began to upload and sell music off of their unique music website. They were named Innovator of the Year winner by the Journal Record. Brady Deaton took his story to the SXSW music, film and interactive software conference in Texas. And it was named one of the participants in the inaugural Venture Spur program.

Deaton dreams big. A decade before founding idefi music, he built a recording studio in his Tulsa home. That dream became more of a nightmare when the first band he signed and invested thousands of dollars in suddenly disbanded. A decade later, the dream still burned in Deaton, so he created idefi music as

an online platform where musicians could upload and sell their music. idefi music has no upfront investment in the bands and begins providing more traditional record label services as sales grow. The innovative approach to the music business benefits musicians by allowing them to control the music sold directly to fans.

“The music industry is changing, but one thing remains constant,” Deaton says. “Millions of artists worldwide dream of the day they get one shot, that one chance to show the world. They hope for a day they can defy what others thought they could do and defy the norm.”

idefimusic.com defies the traditional music model. It’s risk free to both bands and idefi music. And it connects musicians and fans any-where the world.

Brady Deaton’s dream is alive in idefi music.

“When I first showed up at i2E, all I had was an idea and a dream, i2E helped me develop

my dream into a viable business. It has not al-ways been easy, but they ask the hard questions

while giving guidance and support.”

HI-DEFIANCE

7

Millions of high school students graduate each year with a dream of higher education, but they are unsure of how to make it a reality. The college application process is daunting. They

don’t know how they will pay or what financial aid is available.

Tulsa entrepreneur William Tisdale watched the scenario play out in his own home. His two oldest children graduated from a public high school with good grades but with little knowledge of

the college application process.

Tisdale was inspired to create a Tulsa-based company called Col-lege Influence, which better prepares high school students and

parents for the college application process.

College Influence has devised an innovative Web-based interac-tive tool that assists high school students in the college selection

and application process.

The College Influence proprietary technology collects important data that indicates a student’s ability, aptitude, readiness and likeli-hood of attending college or other post secondary school. The tool also is valuable for school counselors in that it provides data that will allow them to quickly identify and act up on opportunities,

and help students reach their desired destination.

With a friendly, social media-like online environment, College Influence helps students gain a better understanding of their aca-demic strengths and weaknesses, heightened awareness of finan-cial aid and scholarship opportunities, and improve their commu-

nication with targeted colleges.

Counselors and parents can also easily track the status of their students, be proactive and avoid missing important application deadlines. Likewise, Colleges win as they can more easily target

prospective students who fit their profile.

Tisdale turned to i2E early on to help him develop his business plan and with strategic planning.

“The relationship with i2E has been in-valuable. Their expertise definitely steered

us away from many common mistakes new businesses often make. They have

also provided many networking opportu-nities where we have made connections

with development resources.”

With a website already established, College Influence is reaching out to its target market of 17 million U.S. high school students and their parents, high schools, school districts and college campuses

across the nation.

College Influence will ensure that prospective college students have the tools available to complete the application process and

turn their college dreams into reality.

COLLEGE INFLUENCE

TRACKING OUR FUTURE8 9

Millions of high school students graduate each year with a dream of higher education, but they are unsure of how to make it a reality. The college application process is daunting. They

don’t know how they will pay or what financial aid is available.

Tulsa entrepreneur William Tisdale watched the scenario play out in his own home. His two oldest children graduated from a public high school with good grades but with little knowledge of

the college application process.

Tisdale was inspired to create a Tulsa-based company called Col-lege Influence, which better prepares high school students and

parents for the college application process.

College Influence has devised an innovative Web-based interac-tive tool that assists high school students in the college selection

and application process.

The College Influence proprietary technology collects important data that indicates a student’s ability, aptitude, readiness and likeli-hood of attending college or other post secondary school. The tool also is valuable for school counselors in that it provides data that will allow them to quickly identify and act up on opportunities,

and help students reach their desired destination.

With a friendly, social media-like online environment, College Influence helps students gain a better understanding of their aca-demic strengths and weaknesses, heightened awareness of finan-cial aid and scholarship opportunities, and improve their commu-

nication with targeted colleges.

Counselors and parents can also easily track the status of their students, be proactive and avoid missing important application deadlines. Likewise, Colleges win as they can more easily target

prospective students who fit their profile.

Tisdale turned to i2E early on to help him develop his business plan and with strategic planning.

“The relationship with i2E has been in-valuable. Their expertise definitely steered

us away from many common mistakes new businesses often make. They have

also provided many networking opportu-nities where we have made connections

with development resources.”

With a website already established, College Influence is reaching out to its target market of 17 million U.S. high school students and their parents, high schools, school districts and college campuses

across the nation.

College Influence will ensure that prospective college students have the tools available to complete the application process and

turn their college dreams into reality.

CO L L E GE I NFLU E NCE

TRACKING OUR FUTURE8 9

A DROI T SURGICAL

It happens on the battlefield. Or in the streets of a neighborhood. Someone is wounded by gunfire or injured in an auto accident, and medics or emergency medical personnel need to quickly clear their airway so

they can breathe.

These are often life-and-death situations that require med-ical professionals to place a tube down the throat of the injured person in a process called intubation. Intubation allows air to reach the lungs, but it requires passing a tube between the vocal cords without causing more harm to the patient. In an emergency situation, this can be hard to do.

Doctors in a hospital setting have the advantage of using a device called an indirect laryngoscope that provides ac-cess to the throat with views through a video screen. It is

expensive and not readily portable.

Outside of the hospital, medical personnel rely on standard intubating laryngoscopes that often require numerous in-tubation attempts because of poor lighting or fluids that block a clear view of throat. Sometimes it is unsuccessful. Oklahoma City physician Nilesh R. Vasan, M.D., has cre-ated a self-contained, disposable, light weight, self-powered laryngoscope that replicates the set-up of an operating room but portable so emergency personnel can take it anywhere. “The key to this product is how simple and intuitive it is to use,” Dr. Vasan said. “Patent pending modifications have been introduced to improve the illumination of the device so even personnel outside the hospital such as on a battle-field, for example, will have the best chance of securing the

airway quickly.”

Adroit Surgical was founded as a medical device company to develop the airway technology. Dr. Vasan turned to i2E for assistance in developing his business and very quickly

prototypes have been developed.

“i2E has been instrumental in taking my idea and patent application to the

next level in a very short time.”

Dr. Vasan envisions the portable laryngoscope eventu-ally being routinely used by health care providers both in hospital settings and in the field after it obtains Food and

Drug Administration approval.

“Ultimately, the health care provider may have only sec-onds to save someone or avoid further complications, and

this device satisfies those goals,” Dr. Vasan said.

Whether on the battlefield or in the streets of a city, the Adroit Surgical device will help medical personnel save

lives when seconds count.

CLEARING THE WAY

1110

ADROIT SURGICAL

It happens on the battlefield. Or in the streets of a neighborhood. Someone is wounded by gunfire or injured in an auto accident, and medics or emergency medical personnel need to quickly clear their airway so

they can breathe.

These are often life-and-death situations that require med-ical professionals to place a tube down the throat of the injured person in a process called intubation. Intubation allows air to reach the lungs, but it requires passing a tube between the vocal cords without causing more harm to the patient. In an emergency situation, this can be hard to do.

Doctors in a hospital setting have the advantage of using a device called an indirect laryngoscope that provides ac-cess to the throat with views through a video screen. It is

expensive and not readily portable.

Outside of the hospital, medical personnel rely on standard intubating laryngoscopes that often require numerous in-tubation attempts because of poor lighting or fluids that block a clear view of throat. Sometimes it is unsuccessful. Oklahoma City physician Nilesh R. Vasan, M.D., has cre-ated a self-contained, disposable, light weight, self-powered laryngoscope that replicates the set-up of an operating room but portable so emergency personnel can take it anywhere. “The key to this product is how simple and intuitive it is to use,” Dr. Vasan said. “Patent pending modifications have been introduced to improve the illumination of the device so even personnel outside the hospital such as on a battle-field, for example, will have the best chance of securing the

airway quickly.”

Adroit Surgical was founded as a medical device company to develop the airway technology. Dr. Vasan turned to i2E for assistance in developing his business and very quickly

prototypes have been developed.

“i2E has been instrumental in taking my idea and patent application to the

next level in a very short time.”

Dr. Vasan envisions the portable laryngoscope eventu-ally being routinely used by health care providers both in hospital settings and in the field after it obtains Food and

Drug Administration approval.

“Ultimately, the health care provider may have only sec-onds to save someone or avoid further complications, and

this device satisfies those goals,” Dr. Vasan said.

Whether on the battlefield or in the streets of a city, the Adroit Surgical device will help medical personnel save

lives when seconds count.

CLEARING THE WAY

1110

The menu of i2E Venture Advisory services that Oklahoma entrepreneurs access to grow their businesses continued to expand in fiscal 2012 when OSCR and our new Chief Fi-nancial Officer-in-Residence came on board.

OSCR is an acronym for the Oklahoma SBIR Collabora-tive Resource, which is an innovative new program designed to assist entrepreneurs in making successful applications for federal funding through the Small Business Innovation Re-search and Small Business Technology Transfer programs. i2E’s Rick Rainey is co-director of the OSCR program, along with Steven Martinez from the Oklahoma Center for the Advancement of Science and Technology. OSCR’s goal is to increase both the number of SBIR applicants from Okla-homa and the number of applicants that successfully compete for Phase 1 and Phase 2 SBIR awards.

i2E clients gain valuable perspective on the financial future of their company from Sonja Wilson, our new CFO-in-Res-idence. Sonja assists Oklahoma entrepreneurs with financial modeling and creating a proper financial structure within their new businesses. She provided unique financial model-ing services to 12 client companies in fiscal 2012, helping them create realistic future revenue projections and develop the financial structure to support operations.

i2E’s Sales Executive-in-Residence also provided critical market development and sales services to 10 startup busi-nesses throughout the year.

Our Entrepreneur-in-Residence program continued to pro-vide assistance and education to Oklahoma entrepreneurs in group settings through popular EinR workshops throughout the year as well as one-on-one mentoring sessions. Work-shops were devoted to such topics as Valuing Emerging High Growth Companies and Due Diligence.

The Executives-in-Residence and Entrepreneur-in-Resi-dence programs, as well as an expanded i2E Fellows program, all were developed as part of the OKC Technology Business Launch Initiative, which is a three-year pilot business devel-opment program to offer enhanced business growth services to technology-based start-up companies and entrepreneurs with high-growth potential.

The bottom line is that i2E has now provided business advisory services to more than 500 high-growth ventures since 1998.

FY2012 reported economic impact

$92M in annualized revenues

80% of revenues obtained outside the state

$48M in annualized payroll

987 current full time equivalent employees

53 patents filed and 17 issued

V E N T U R E A DV I S O RY S E RV I C E S

In fiscal 2012, i2E provided its unique menu of targeted venture

advisory services to 105 STARTUP COMPANIES, providing en-

trepreneurs with the tools they need to grow their companies

to create new jobs, revenue and wealth for Oklahoma.

In fy2012 we

helped posItIon

26 entrepreneurIal

companIes for fundIng

and 28 of our clIents

obtaIned $24.5m

In prIvate equIty.

i2E offers a continuum of investment capital for

Oklahoma’s emerging high growth companies no

matter where they are along the business life cycle.

Our investment team manages five state and fed-

erally appropriated funds that invest in companies

from the concept to growth stages, as well as an

Angel investment group composed of successful

Oklahomans who are co-investors on many deals.

In FY2012, we helped position 26 entrepreneur-

ial companies for funding across all five stages of

development; 28 of our client firms obtained $24.5

million in private equity.

FY2012 reported sales distribution

International

Oklahoma

20%

11%

i2E’s portfolio of high-growth companies is producing technology-

related products or services targeted at large domestic and international

markets. Our client companies continue to report that 80% of their

revenue is generated from sales outside Oklahoma. That brings revenue

into the state and creates jobs and wealth for Oklahomans.

643=+ $70,643 i2E Portfolio

246= $37,246 Oklahoma Average

portfolio companies by industry 11+24+5+19+4111% Energy & Environmental

24% Life Sciences

5% Advanced Materials 19% Other

41% IT/Software

portfolio companies by geography

FY2012 portfolio companies average annual wage comparison

OKC MSA

Tulsa MSA

259=169+=108=

259169

108 Balance of State

12 13

Our clients are true small businesses, with 78% employing 10

people or less, paying 90% higher than the state average.

JOB GROWTH

i2E Portfolio 26% 36% 20% 22% 39%

State Average 1.4% -1.9% -0.1% 1.2% 1.3%

2008 2009 2010 2011 2012

FY2012 portfolio companies’ job growth

69%

The menu of i2E Venture Advisory services that Oklahoma entrepreneurs access to grow their businesses continued to expand in fiscal 2012 when OSCR and our new Chief Fi-nancial Officer-in-Residence came on board.

OSCR is an acronym for the Oklahoma SBIR Collabora-tive Resource, which is an innovative new program designed to assist entrepreneurs in making successful applications for federal funding through the Small Business Innovation Re-search and Small Business Technology Transfer programs. i2E’s Rick Rainey is co-director of the OSCR program, along with Steven Martinez from the Oklahoma Center for the Advancement of Science and Technology. OSCR’s goal is to increase both the number of SBIR applicants from Okla-homa and the number of applicants that successfully compete for Phase 1 and Phase 2 SBIR awards.

i2E clients gain valuable perspective on the financial future of their company from Sonja Wilson, our new CFO-in-Res-idence. Sonja assists Oklahoma entrepreneurs with financial modeling and creating a proper financial structure within their new businesses. She provided unique financial model-ing services to 12 client companies in fiscal 2012, helping them create realistic future revenue projections and develop the financial structure to support operations.

i2E’s Sales Executive-in-Residence also provided critical market development and sales services to 10 startup busi-nesses throughout the year.

Our Entrepreneur-in-Residence program continued to pro-vide assistance and education to Oklahoma entrepreneurs in group settings through popular EinR workshops throughout the year as well as one-on-one mentoring sessions. Work-shops were devoted to such topics as Valuing Emerging High Growth Companies and Due Diligence.

The Executives-in-Residence and Entrepreneur-in-Resi-dence programs, as well as an expanded i2E Fellows program, all were developed as part of the OKC Technology Business Launch Initiative, which is a three-year pilot business devel-opment program to offer enhanced business growth services to technology-based start-up companies and entrepreneurs with high-growth potential.

The bottom line is that i2E has now provided business advisory services to more than 500 high-growth ventures since 1998.

FY2012 reported economic impact

$92M in annualized revenues

80% of revenues obtained outside the state

$48M in annualized payroll

987 current full time equivalent employees

53 patents filed and 17 issued

V E N T U R E A DV I S O RY S E RV I C E S

In fiscal 2012, i2E provided its unique menu of targeted venture

advisory services to 105 STARTUP COMPANIES, providing en-

trepreneurs with the tools they need to grow their companies

to create new jobs, revenue and wealth for Oklahoma.

In fy2012 we

helped posItIon

26 entrepreneurIal

companIes for fundIng

and 28 of our clIents

obtaIned $24.5m

In prIvate equIty.

i2E offers a continuum of investment capital for

Oklahoma’s emerging high growth companies no

matter where they are along the business life cycle.

Our investment team manages five state and fed-

erally appropriated funds that invest in companies

from the concept to growth stages, as well as an

Angel investment group composed of successful

Oklahomans who are co-investors on many deals.

In FY2012, we helped position 26 entrepreneur-

ial companies for funding across all five stages of

development; 28 of our client firms obtained $24.5

million in private equity.

FY2012 reported sales distribution

International

Oklahoma

20%

11%

i2E’s portfolio of high-growth companies is producing technology-

related products or services targeted at large domestic and international

markets. Our client companies continue to report that 80% of their

revenue is generated from sales outside Oklahoma. That brings revenue

into the state and creates jobs and wealth for Oklahomans.



portfolio companies by industry 11+24+5+19+4111% Energy & Environmental

24% Life Sciences

5% Advanced Materials 19% Other

41% IT/Software

portfolio companies by geography

FY2012 portfolio companies average annual wage comparison

OKC MSA

Tulsa MSA

259=169+=108=

259169

108 Balance of State

12 13

Our clients are true small businesses, with 78% employing 10

people or less, paying 90% higher than the state average.

JOB GROWTH

i2E Portfolio 26% 36% 20% 22% 39%

State Average 1.4% -1.9% -0.1% 1.2% 1.3%

2008 2009 2010 2011 2012

FY2012 portfolio companies’ job growth

69%

E N T R E P R E N E U R I A L

D E V E LO P M E N T

As a learning experience for Oklahoma college students, the reach of the Donald W. Reynolds Governor’s Cup extends far beyond the classroom. Students are intro-duced to the real world opportunities and challenges faced by entrepreneurs as they conduct market research, formulate financial projections and write business plans. Then they pitch them to a panel of potential investors.

Students brought expertise from academic areas such as finance, engineering, marketing and accounting as they turned innovative ideas into legitimate concepts. New and exciting business opportunities emerged this year, including a patented way to enhance the productions of methane to produce a clean source of natural gas, a unique fire-suppression technology, calcium supple-ments totally free of heavy metals and a device that al-lows speakers to roam a classroom or auditorium while wirelessly interacting with the audience.

Along the way to the oral presentation semifinals and finals rounds, the Governor’s Cup offered opportunities for students to interview for paid i2E Fellowships and Oklahoma Business Roundtable scholarships, as well as meet some of the state’s top business and commu-nity leaders through networking events. The teams that reached the podium gained a new perspective on entre-preneurship that will carry over into their classroom and careers long after the celebrations have ended.

First place teams in both the Graduate and Undergraduate divisions won $20,000 each, while second place earned $10,000 each and third place $5,000 each. The top two teams in each division competed against teams from Arkansas and Nevada in the Tri-State Competition in Las Vegas, Nev. Total awards for this year’s Oklahoma competition exceeded $200,000, while the Las Vegas

event offered another $118,000.

2 0 1 2 G OV ERN O R ’ S C U PT H E I N T E R V I E W

In the real world, ideas don’t make it far without input from industry experts. Each team sat down with indus-try experts. There were no presentations, no handouts, no guests, just the students and the experts. The winning category teams were chosen based on the knowledge of their business and competitive advantages, how well they articulated the business model and how the busi-ness makes money and the competency across the team.

T H E E X P E R T S

Alba Weaver is the economic development project manager for OGE Energy corp. She has experience in brand development, advising new businesses on forma-tion of corporations and business structures, and strate-gic consulting, including business plan and sales strategy development.

Bill Botts has over 48 years of management experience having been president, CEO or chairman of the board of more than 15 public and private companies. His major focus has been in the high tech arena including software, computer systems, semiconductors and services. He has served in director roles for public and private corpora-tions as well as on charitable and non-profit boards.

Bill Payne is an active angel investor, board member, and advisor to entrepreneurs. He assisted in found-ing four angel groups: the Frontier Angel Fund, Tech Coast Angels, Vegas Valley Angels and Aztec Venture Network.

Jack Anthony has over 35 years of medical device and biotechnology leadership experience including: Baxter Healthcare, Applied Immune Sciences, Inhale Thera-peutics, Fibrogen, Tularik, Saegis Pharmaceuticals, and Pharmix Corporation.

Joel Wiggins is the president and CEO of the Enter-prise Center of Johnson County. He is an international business plan coach, entrepreneurial educator, and con-sultant specializing in incubation and technology com-mercialization.

Seven-Year Impact

26 campuses from

across the state

950 college students

290innovative ideas

$1,000,000+in cash awarded

$40,000in scholarships

$85,240in fellowships

1514

E N T R E P R E N E U R I A L

D E V E LO P M E N T

As a learning experience for Oklahoma college students, the reach of the Donald W. Reynolds Governor’s Cup extends far beyond the classroom. Students are intro-duced to the real world opportunities and challenges faced by entrepreneurs as they conduct market research, formulate financial projections and write business plans. Then they pitch them to a panel of potential investors.

Students brought expertise from academic areas such as finance, engineering, marketing and accounting as they turned innovative ideas into legitimate concepts. New and exciting business opportunities emerged this year, including a patented way to enhance the productions of methane to produce a clean source of natural gas, a unique fire-suppression technology, calcium supple-ments totally free of heavy metals and a device that al-lows speakers to roam a classroom or auditorium while wirelessly interacting with the audience.

Along the way to the oral presentation semifinals and finals rounds, the Governor’s Cup offered opportunities for students to interview for paid i2E Fellowships and Oklahoma Business Roundtable scholarships, as well as meet some of the state’s top business and commu-nity leaders through networking events. The teams that reached the podium gained a new perspective on entre-preneurship that will carry over into their classroom and careers long after the celebrations have ended.

First place teams in both the Graduate and Undergraduate divisions won $20,000 each, while second place earned $10,000 each and third place $5,000 each. The top two teams in each division competed against teams from Arkansas and Nevada in the Tri-State Competition in Las Vegas, Nev. Total awards for this year’s Oklahoma competition exceeded $200,000, while the Las Vegas

event offered another $118,000.

2 0 1 2 G OV ERN O R ’ S C U PT H E I N T E R V I E W

In the real world, ideas don’t make it far without input from industry experts. Each team sat down with indus-try experts. There were no presentations, no handouts, no guests, just the students and the experts. The winning category teams were chosen based on the knowledge of their business and competitive advantages, how well they articulated the business model and how the busi-ness makes money and the competency across the team.

T H E E X P E R T S

Alba Weaver is the economic development project manager for OGE Energy corp. She has experience in brand development, advising new businesses on forma-tion of corporations and business structures, and strate-gic consulting, including business plan and sales strategy development.

Bill Botts has over 48 years of management experience having been president, CEO or chairman of the board of more than 15 public and private companies. His major focus has been in the high tech arena including software, computer systems, semiconductors and services. He has served in director roles for public and private corpora-tions as well as on charitable and non-profit boards.

Bill Payne is an active angel investor, board member, and advisor to entrepreneurs. He assisted in found-ing four angel groups: the Frontier Angel Fund, Tech Coast Angels, Vegas Valley Angels and Aztec Venture Network.

Jack Anthony has over 35 years of medical device and biotechnology leadership experience including: Baxter Healthcare, Applied Immune Sciences, Inhale Thera-peutics, Fibrogen, Tularik, Saegis Pharmaceuticals, and Pharmix Corporation.

Joel Wiggins is the president and CEO of the Enter-prise Center of Johnson County. He is an international business plan coach, entrepreneurial educator, and con-sultant specializing in incubation and technology com-mercialization.

Seven-Year Impact

26 campuses from

across the state

950 college students

290innovative ideas

$1,000,000+in cash awarded

$40,000in scholarships

$85,240in fellowships

1514

T H E J U D G E SBob Danner ChairmanBio-Cide International, Inc.

Tom Friedemann Superintendent/CEOFrancis Tuttle Technology Center

Larry Parman President and CEOParman & Easterday

Chris Scully PresidentDell

T H E W I N N E R SRocky Chavez University of OklahomaJay Omanson Oklahoma State University

The Oklahoma Business Roundtable was formed in 1991 as a non-profit public/private partner-ship and is composed of more than 170 top Oklahoma corporations and business organizations.

The Roundtable is Oklahoma’s top economic development support organization with emphasis on entrepreneurship, business expansion, and new business location.

Now in its fifth year, the Oklahoma Business Roundtable has awarded $5,000 Paulsen Award scholarships to two of this year’s Governor’s Cup participants. These scholarships, named in honor of longtime OBR President Don Paulsen, are designed to encourage Oklahoma’s future leaders to continue their education while at the same time contributing their viewpoints to the ongoing dialogue on key economic issues.

All students competing in the Governor’s Cup are eligible to apply, and finalists participate in an interview process before a panel of Business Roundtable members. Candidates answer questions re-lating to their views on shaping Oklahoma economic policy and are asked to share their future plans for education and career.

The scholarships can be used next fall to pay for tuition at any Oklahoma college or university.

O KLA H O M A B U S I N ES S RO U N DTA B LE2 0 1 2 I N T E R V I E W W I N N E R S AT&TIT Communications CategoryPerk Rogers State UniversityTeam members: Michael Orr, Katrina Loy, Lori Keough, Linsey Curtis and Patrick Johnston

Greater Oklahoma City ChamberHealthcare CategoryPristineCal Oklahoma State UniversityTeam members: Stacey Brandhorst, Cory Perkins, Jay Omanson and Rachel Mui

i2EStudent Generated CategoryMaxQ Oklahoma State UniversityTeam members: Saravan Kumar, Shanmugavelayudam, Balaji Jayakumar, Venkat Gidda and Jessica Shelton

OG&E Positive Energy and Environmental CategoryOrganic Energy University of OklahomaTeam members: Christina Hopson, Bryan Duncan, Roger Satur, and Rocky Chavez

Oklahoma Business RoundtableManufacturing Material Sciences and Transportation CategorySpectrum FX University of TulsaTeam members: Amethyst Cavallaro, Kathryn Junk, John Galbraith, and Jessica Casper

Entrepreneurial Development Entrepreneurial Development

1st Place Moleculera Labs Oklahoma City UniversityA clinical testing laboratory that performs tests for auto-immune diseases that cause psychiatric disorders Advisor: Craig ShimasakiTeam Leader: Jacob LambTeam Members: Emily Sanders, Bethany Layman and Luke Reese

2nd Place Bright SanitationUniversity of OklahomaLow-cost public toilets for dense urban areas lacking proper sewage , disposing of waste through a bio-digester, converting it to compost, biogas and water that can safely be released into lakes and streams.

Advisor: Lowell BusenitzTeam Leader: Steve BrachtenbachTeam Members: Garett Pearce,Tom Spurgat and Megan Walsh

3rd Place SoLoKnow University of TulsaOnline social communities for universities, providing personalized, real time information on campus, class and club events.

Advisor: John HaleTeam Leader: Ahmed El-KishkyTeam Members: Phoebe Hardwicke, Eric Kuxhausen and Jack Lestina

1st Place Spectrum FXThe University of TulsaA fire suppression liquid that extinguishes all spec-trums of fires marketed to the aviation industry.

Advisor: Claire CornelTeam Leader: Amethyst CavallaroTeam Members: Kathryn Junk, John Galbraith and Jessica Casper

2nd Place PsychSavvyThe University of Tulsa A customizable, online mental health resource for mental health professionals, college educa-tors, students and clients.

Advisor: Claire CornellTeam Leader: Robyn UndiemeTeam Members: Kathryn Packell, Cary Taylor

3rd Place Precision HealthTechOklahoma City UniversityMedical device start-up company developing an interactive physical therapy workstation that incor-porates software to measure patient progress.

Advisor: Craig ShimasakiTeam Leader: Brian MullinsTeam Members: Christina Truong, Talia Berning and Anthony Moorehead

G R A D U A T E W I N N E R S

U N D E R G R A D U A T E W I N N E R S

Blake Wade, former President of the Oklahoma Business Roundtable, presents Paulsen Awards to Rocky Chavez, University of Oklahoma, and Jay Omanson, Oklahoma State University.

1716

T H E J U D G E SBob Danner ChairmanBio-Cide International, Inc.

Tom Friedemann Superintendent/CEOFrancis Tuttle Technology Center

Larry Parman President and CEOParman & Easterday

Chris Scully PresidentDell

T H E W I N N E R SRocky Chavez University of OklahomaJay Omanson Oklahoma State University

The Oklahoma Business Roundtable was formed in 1991 as a non-profit public/private partner-ship and is composed of more than 170 top Oklahoma corporations and business organizations.

The Roundtable is Oklahoma’s top economic development support organization with emphasis on entrepreneurship, business expansion, and new business location.

Now in its fifth year, the Oklahoma Business Roundtable has awarded $5,000 Paulsen Award scholarships to two of this year’s Governor’s Cup participants. These scholarships, named in honor of longtime OBR President Don Paulsen, are designed to encourage Oklahoma’s future leaders to continue their education while at the same time contributing their viewpoints to the ongoing dialogue on key economic issues.

All students competing in the Governor’s Cup are eligible to apply, and finalists participate in an interview process before a panel of Business Roundtable members. Candidates answer questions re-lating to their views on shaping Oklahoma economic policy and are asked to share their future plans for education and career.

The scholarships can be used next fall to pay for tuition at any Oklahoma college or university.

O KLA H O M A B U S I N ES S RO U N DTA B LE2 0 1 2 I N T E R V I E W W I N N E R S AT&TIT Communications CategoryPerk Rogers State UniversityTeam members: Michael Orr, Katrina Loy, Lori Keough, Linsey Curtis and Patrick Johnston

Greater Oklahoma City ChamberHealthcare CategoryPristineCal Oklahoma State UniversityTeam members: Stacey Brandhorst, Cory Perkins, Jay Omanson and Rachel Mui

i2EStudent Generated CategoryMaxQ Oklahoma State UniversityTeam members: Saravan Kumar, Shanmugavelayudam, Balaji Jayakumar, Venkat Gidda and Jessica Shelton

OG&E Positive Energy and Environmental CategoryOrganic Energy University of OklahomaTeam members: Christina Hopson, Bryan Duncan, Roger Satur, and Rocky Chavez

Oklahoma Business RoundtableManufacturing Material Sciences and Transportation CategorySpectrum FX University of TulsaTeam members: Amethyst Cavallaro, Kathryn Junk, John Galbraith, and Jessica Casper


1st Place Moleculera Labs Oklahoma City UniversityA clinical testing laboratory that performs tests for auto-immune diseases that cause psychiatric disorders Advisor: Craig ShimasakiTeam Leader: Jacob LambTeam Members: Emily Sanders, Bethany Layman and Luke Reese

2nd Place Bright SanitationUniversity of OklahomaLow-cost public toilets for dense urban areas lacking proper sewage , disposing of waste through a bio-digester, converting it to compost, biogas and water that can safely be released into lakes and streams.

Advisor: Lowell BusenitzTeam Leader: Steve BrachtenbachTeam Members: Garett Pearce,Tom Spurgat and Megan Walsh

3rd Place SoLoKnow University of TulsaOnline social communities for universities, providing personalized, real time information on campus, class and club events.

Advisor: John HaleTeam Leader: Ahmed El-KishkyTeam Members: Phoebe Hardwicke, Eric Kuxhausen and Jack Lestina

1st Place Spectrum FXThe University of TulsaA fire suppression liquid that extinguishes all spec-trums of fires marketed to the aviation industry.

Advisor: Claire CornelTeam Leader: Amethyst CavallaroTeam Members: Kathryn Junk, John Galbraith and Jessica Casper

2nd Place PsychSavvyThe University of Tulsa A customizable, online mental health resource for mental health professionals, college educa-tors, students and clients.

Advisor: Claire CornellTeam Leader: Robyn UndiemeTeam Members: Kathryn Packell, Cary Taylor

3rd Place Precision HealthTechOklahoma City UniversityMedical device start-up company developing an interactive physical therapy workstation that incor-porates software to measure patient progress.

Advisor: Craig ShimasakiTeam Leader: Brian MullinsTeam Members: Christina Truong, Talia Berning and Anthony Moorehead

G R A D U A T E W I N N E R S

U N D E R G R A D U A T E W I N N E R S

Blake Wade, former President of the Oklahoma Business Roundtable, presents Paulsen Awards to Rocky Chavez, University of Oklahoma, and Jay Omanson, Oklahoma State University.

1716

Rupesh AgrawalMBA student Oklahoma State UniversityCompany: Precision Health TechnologiesProject: Rupesh built a management system that allows Precision Healthcare Group to measure “in real time” financial results against forecasted results and make modifications to financial modeling.

Carol CurtisPost-doctorial Fellow Oklahoma Medical Research Foundation (OMRF)Company: i2E and OMRFProject: Carol worked with i2E’s Venture Advisory staff and the OMRF Office of Tech Transfer evaluating new technologies for commercialization.

Corey GingrichMBA student University of OklahomaCompany: Altheus TherapeuticsGovernor’s Cup Team: Kemmx Corp.Project: Corey supported Altheus Therapeutics in the evaluation of licensing and partnership opportunities within the specialty pharmaceuticals industry.

Mary HestilowSenior Economics major University of OklahomaCompany: i2EProject: Mary worked with i2E’s Venture Advisory and Operations staff on competi-tive market research and benchmarking projects.

Alvin LySenior Finance major Oklahoma City UniversityCompany: i2EProject: Alvin worked with i2E’s Investment and Venture Advisory staff on financial mod-eling and competitive market research.

Marybeth MurphySenior Entrepreneurship and Venture Man-agement major University of OklahomaCompany: MintivaGovernor’s Cup Team: NanomedProject: Marybeth assisted Mintiva with operational activities along with new and existing business development initiatives.

Edward (Ted) PerryMBA Student Oklahoma State UniversityCompany: i2E, Inc.Governor’s Cup Team: Golf AnaltixProject: Ted worked with i2E’s Venture Advisory and Operations staff on competi-tive market research, investor presentations, benchmarking, and reporting projects.

Roger SaturMBA Student University of OklahomaCompany: WeGoLook.comGovernor’s Cup Team: Organic EnergyProject: Roger assisted WeGoLook with tracking and evaluating multiple new and existing marketing and corporate business development initiatives.

Ekaterina ShernstnevaMBA student University of TulsaCompany: DermaMedicsProject: Ekaterina worked on marketing initiatives for new and existing Derma-Medics products.

Chuck ShirleyMBA and Master of Science Quantitative Financial Economics student Oklahoma State UniversityCompany: i2E, Inc.Governor’s Cup Team: Golf AnaltixProject: Chuck worked with i2E’s Venture Advisory and Investment staff on com-petitive market research, business model development, financial modeling, and due diligence projects.

More than 50 Oklahoma college students applied for the summer 2012 i2E Fellows program, drawn by the promise of a hands-on, real world experience with an Oklahoma entrepreneur. No theory, case studies or hypothetical examples included. Seven were selected for 10-week Fellowships at i2E or Oklahoma City area companies, earning a collective $52,575. In return, i2E and the startup companies gained employees who tackled meaningful assignments that both advanced the companies and provided a taste of the challenges faced by entrepreneurs.

Over the 4-year history of the program, 28 students from campuses across Oklahoma have served i2E Fellowships, earning $163,625 along the way. Some have gone on to work full- or part-time for the host companies, while

others have taken the experience gained through the Fellowship to employ-ment at other companies or on to graduate programs for advanced degrees.

We hope they all eventually pursue entrepreneurship in Oklahoma as a ca-reer choice, fulfilling our mission of growing companies and creating wealth for the state by developing the next generation of entrepreneurial talent to lead startup companies to successful futures.

The program is sponsored by the Greater Oklahoma Chamber, the city of Oklahoma City, the Oklahoma Medical Research Foundation, the Okla-homa Business Roundtable, the Presbyterian Health Foundation and the federal Economic Development Administration.

T H E F E L L O W S H I P S M E D I A & M A R K E T I N G

i2E’s ability to connect with Oklahoma entrepreneurs, thought leaders and people near and far continued to expand in fiscal 2012 with greater use of digital and social media. The number of followers of our Twitter feed almost doubled to 462 by year’s end. And our Governor’s Cup Facebook page grew in a similar manner.

We guided our Twitter followers to our website with direct links to the 119 blog posts written by i2E team members during the year, as well as numerous articles published in Oklahoma media about our clients or programs.

We used Facebook to promote every step along the way in the Governor’s Cup competition, posting photo albums and even breaking news from the Awards Dinner when the winning teams were announced. By the end of the year 552 Facebook users had “liked” our page. We also promoted our clients with video interviews shot on location that highlighted Oklahoma entrepreneurs and the exciting products they are developing. We shot, edited and posted 42 video interviews during the year.

Our Tech-E-News also was used to connect with our stakeholders, with 10 electronic newsletters published during the year along with 21 “e-blasts” with breaking news that were emailed out.

We also published three editions of our i&E magazine during fiscal 2012, highlighting up-and-coming client companies, i2E partners and programs, and conducted 25 networking events at which we connected with hundreds of Oklahomans face to face.

Of course, we didn’t ignore traditional media venues in 2012. Oklahoma newspapers published 50 articles about i2E clients, and our Innovation & Entrepreneur’s column appeared weekly in The Oklahoman, which is the state’s largest daily newspaper.

As the world tunes in more and more to digital media to connect with news sources and each other, i2E will be there to tell the story of Oklahoma entrepreneurs and our innovative programs.

10Electronic Newsletters Published

3i&E Magazine Publications

25 Networking Events

50 Client Articles

42Video Blogs

48 Weekly Columns Published

119 Blog Posts

21 E-Blasts


Office of Entrepreneurial DevelopmentOur commitment to entrepreneurial education was enhanced by our Office of Entrepreneurial Devel-opment, which is a two-year partnership with the Greater Oklahoma City Chamber. The OED sup-ports i2E initiatives such as the Oklahoma SBIR Collaborative Resources (OSCR) program, the Don-ald W. Reynolds Governor’s Cup business plan com-petition and the Who Wants to Be an Entrepreneur? workshop. This program also allows us to work with others in the community who support entrepreneur-ship in Oklahoma.

1918

Rupesh AgrawalMBA student Oklahoma State UniversityCompany: Precision Health TechnologiesProject: Rupesh built a management system that allows Precision Healthcare Group to measure “in real time” financial results against forecasted results and make modifications to financial modeling.

Carol CurtisPost-doctorial Fellow Oklahoma Medical Research Foundation (OMRF)Company: i2E and OMRFProject: Carol worked with i2E’s Venture Advisory staff and the OMRF Office of Tech Transfer evaluating new technologies for commercialization.

Corey GingrichMBA student University of OklahomaCompany: Altheus TherapeuticsGovernor’s Cup Team: Kemmx Corp.Project: Corey supported Altheus Therapeutics in the evaluation of licensing and partnership opportunities within the specialty pharmaceuticals industry.

Mary HestilowSenior Economics major University of OklahomaCompany: i2EProject: Mary worked with i2E’s Venture Advisory and Operations staff on competi-tive market research and benchmarking projects.

Alvin LySenior Finance major Oklahoma City UniversityCompany: i2EProject: Alvin worked with i2E’s Investment and Venture Advisory staff on financial mod-eling and competitive market research.

Marybeth MurphySenior Entrepreneurship and Venture Man-agement major University of OklahomaCompany: MintivaGovernor’s Cup Team: NanomedProject: Marybeth assisted Mintiva with operational activities along with new and existing business development initiatives.

Edward (Ted) PerryMBA Student Oklahoma State UniversityCompany: i2E, Inc.Governor’s Cup Team: Golf AnaltixProject: Ted worked with i2E’s Venture Advisory and Operations staff on competi-tive market research, investor presentations, benchmarking, and reporting projects.

Roger SaturMBA Student University of OklahomaCompany: WeGoLook.comGovernor’s Cup Team: Organic EnergyProject: Roger assisted WeGoLook with tracking and evaluating multiple new and existing marketing and corporate business development initiatives.

Ekaterina ShernstnevaMBA student University of TulsaCompany: DermaMedicsProject: Ekaterina worked on marketing initiatives for new and existing Derma-Medics products.

Chuck ShirleyMBA and Master of Science Quantitative Financial Economics student Oklahoma State UniversityCompany: i2E, Inc.Governor’s Cup Team: Golf AnaltixProject: Chuck worked with i2E’s Venture Advisory and Investment staff on com-petitive market research, business model development, financial modeling, and due diligence projects.

More than 50 Oklahoma college students applied for the summer 2012 i2E Fellows program, drawn by the promise of a hands-on, real world experience with an Oklahoma entrepreneur. No theory, case studies or hypothetical examples included. Seven were selected for 10-week Fellowships at i2E or Oklahoma City area companies, earning a collective $52,575. In return, i2E and the startup companies gained employees who tackled meaningful assignments that both advanced the companies and provided a taste of the challenges faced by entrepreneurs.

Over the 4-year history of the program, 28 students from campuses across Oklahoma have served i2E Fellowships, earning $163,625 along the way. Some have gone on to work full- or part-time for the host companies, while

others have taken the experience gained through the Fellowship to employ-ment at other companies or on to graduate programs for advanced degrees.

We hope they all eventually pursue entrepreneurship in Oklahoma as a ca-reer choice, fulfilling our mission of growing companies and creating wealth for the state by developing the next generation of entrepreneurial talent to lead startup companies to successful futures.

The program is sponsored by the Greater Oklahoma Chamber, the city of Oklahoma City, the Oklahoma Medical Research Foundation, the Okla-homa Business Roundtable, the Presbyterian Health Foundation and the federal Economic Development Administration.

T H E F E L L O W S H I P S M E D I A & M A R K E T I N G

i2E’s ability to connect with Oklahoma entrepreneurs, thought leaders and people near and far continued to expand in fiscal 2012 with greater use of digital and social media. The number of followers of our Twitter feed almost doubled to 462 by year’s end. And our Governor’s Cup Facebook page grew in a similar manner.

We guided our Twitter followers to our website with direct links to the 119 blog posts written by i2E team members during the year, as well as numerous articles published in Oklahoma media about our clients or programs.

We used Facebook to promote every step along the way in the Governor’s Cup competition, posting photo albums and even breaking news from the Awards Dinner when the winning teams were announced. By the end of the year 552 Facebook users had “liked” our page. We also promoted our clients with video interviews shot on location that highlighted Oklahoma entrepreneurs and the exciting products they are developing. We shot, edited and posted 42 video interviews during the year.

Our Tech-E-News also was used to connect with our stakeholders, with 10 electronic newsletters published during the year along with 21 “e-blasts” with breaking news that were emailed out.

We also published three editions of our i&E magazine during fiscal 2012, highlighting up-and-coming client companies, i2E partners and programs, and conducted 25 networking events at which we connected with hundreds of Oklahomans face to face.

Of course, we didn’t ignore traditional media venues in 2012. Oklahoma newspapers published 50 articles about i2E clients, and our Innovation & Entrepreneur’s column appeared weekly in The Oklahoman, which is the state’s largest daily newspaper.

As the world tunes in more and more to digital media to connect with news sources and each other, i2E will be there to tell the story of Oklahoma entrepreneurs and our innovative programs.

10Electronic Newsletters Published

3i&E Magazine Publications

25 Networking Events

50 Client Articles

42Video Blogs

48 Weekly Columns Published

119 Blog Posts

21 E-Blasts


Office of Entrepreneurial DevelopmentOur commitment to entrepreneurial education was enhanced by our Office of Entrepreneurial Devel-opment, which is a two-year partnership with the Greater Oklahoma City Chamber. The OED sup-ports i2E initiatives such as the Oklahoma SBIR Collaborative Resources (OSCR) program, the Don-ald W. Reynolds Governor’s Cup business plan com-petition and the Who Wants to Be an Entrepreneur? workshop. This program also allows us to work with others in the community who support entrepreneur-ship in Oklahoma.

1918

TBFP 2012 Investment Mintiva creates and provides customers with the highest qual-ity products, specially formulated for distinct topical applications. Mintiva incorporates maximum strength FDA-approved topical pain relievers, unique all-natural botanical ingredients, and cutting-edge cosmetic formulations.

i2E’s arsenal of investment capital grew substantially in fiscal 2012 when we teamed with the Oklahoma Department of Commerce to create the $13.1 million Accelerate Oklahoma! initiative with funding provided by the U.S. Treasury Department’s State Small Business Credit Initiative.

With the federal dollars, three investment funds were created that tar-get businesses at any stage of their life cycle, from concept to seed to start-up to growth. We now manage the StartOK Accelerator Fund, the GrowOK Fund and the OK Angel Sidecar Fund, all of which are part of the Accelerate Oklahoma! program. The new funds comple-ment our state appropriated capital sources, the OCAST Technology Business Finance Program and Oklahoma Seed Capital Fund, which have provided critical concept financing and seed stage funding to 113 Oklahoma startups since 1998.

We also manage the Oklahoma SeedStep Angels group composed of successful Oklahomans who often act as private co-investors to the state- and federally-appropriated investment funds.

ACC E SS TO C A P I TA L

Since 1999, the OCAST Technology Business Finance Program has provided a timely answer to a dilemma facing many Oklahoma entre-preneurs: where do they turn for critical capital to build a prototype and prove their concept. In increments of $100,000 to $150,000, the i2E managed fund has provided proof-of-concept capital to 108 companies since its inception.

Structured as an unsecured loan with a payback provision, the TBFP has funded over $10.3 million in investments and generated more than $4.5 million in repayments. Those repayments provided 44 percent of capital available for new investments in succeeding generations of en-trepreneurs with new ideas. This is the equivalent of providing proof-of-concept funding for 44 Oklahoma start-up companies.

Over its history, TBFP funding has helped companies subsequently raise more than $268 million in private capital, creating a leverage ratio of 33:1 for the state’s investment.

i2E’s portfolio attracts investment to the region with more than $770 million in funding.

Approximately $489 million of this has been in private investment from venture capital,

angels and strategic investors.

TBFP

8+7+7+2+25+51108

Companies Funded

IT/Software51%

portfolio companies by industry 1999-2012

private equity investment 1999-2012

sources of capital

Energy & Environmental

Advanced Materials

Other

Manufacturing Equipment

Life Sciences

7%

7%

2%

8%

25%

$40.5M in annualized revenues 90% of revenues outside state $22M in annualized payroll

316 full time employees equivalent average wage of $74,84216 patents filed, 10 issued

34% job growth



44%

Entrepreneurs Funding Entrepreneurs

Angel Venture Strategic Convertible Debt Capital Partners Note

41%

8%14%

66%

20%

10%

3%

25%23%

13%

Percent of 12 Month Capital Raised

Percent Source of Funding

2120

Capital raised from angel investors

- more than doubled - to 8% while capital

raised from VC investors fell 66% to 19%

OK Angel Side Car FundDermaMedics is a pharmaceutical skin care company specializing in the development of novel topical, non-steroidal, non-prescription therapeutics that effectively treats inflammatory skin problems. The products are specifically designed to be sold exclusively by physicians and/or other medical professionals such as medical spas, pharmacies and oncology related facilities.

Perk Dynamics enables you to take control of your Coffee and Espres-so Operations Management. Perk Dynamics product line provides easy to use Automated controls for coffee and espresso systems.

Selexys Pharmaceuticals is committed to advancing the understand-ing of inflammation and developing novel new products to treat in-flammatory diseases. Their pioneering work on the molecular mecha-nisms of inflammation has led to breakthroughs in novel therapeutics for inflammatory and thrombotic diseases and positioned Selexys with strong scientific underpinnings.

Start OKAccele Biopharma, Inc. Acting as an accelerator/incubator specifically for pharmaceutical and biotechnologies discovered in or transferred into Oklahoma, ABP will provide the core management (including raising and managing investment capital) components needed to de-velop these discoveries locally. Accele Venture Partners (AVP), a com-panion venture fund, is currently raising an Oklahoma based venture fund to support the 4 to 5 anticipated ABP spinout companies, each being treated as an individual investment opportunity.

All Concept Fund Companies $268,497,418

In Business $173,997,100

Concept Funding $10,392,477

2012

FY2012 TBFP companies average annual wage comparison

TBFP 2012 Investment Mintiva creates and provides customers with the highest qual-ity products, specially formulated for distinct topical applications. Mintiva incorporates maximum strength FDA-approved topical pain relievers, unique all-natural botanical ingredients, and cutting-edge cosmetic formulations.

i2E’s arsenal of investment capital grew substantially in fiscal 2012 when we teamed with the Oklahoma Department of Commerce to create the $13.1 million Accelerate Oklahoma! initiative with funding provided by the U.S. Treasury Department’s State Small Business Credit Initiative.

With the federal dollars, three investment funds were created that tar-get businesses at any stage of their life cycle, from concept to seed to start-up to growth. We now manage the StartOK Accelerator Fund, the GrowOK Fund and the OK Angel Sidecar Fund, all of which are part of the Accelerate Oklahoma! program. The new funds comple-ment our state appropriated capital sources, the OCAST Technology Business Finance Program and Oklahoma Seed Capital Fund, which have provided critical concept financing and seed stage funding to 113 Oklahoma startups since 1998.

We also manage the Oklahoma SeedStep Angels group composed of successful Oklahomans who often act as private co-investors to the state- and federally-appropriated investment funds.

ACC E SS TO C A P I TA L

Since 1999, the OCAST Technology Business Finance Program has provided a timely answer to a dilemma facing many Oklahoma entre-preneurs: where do they turn for critical capital to build a prototype and prove their concept. In increments of $100,000 to $150,000, the i2E managed fund has provided proof-of-concept capital to 108 companies since its inception.

Structured as an unsecured loan with a payback provision, the TBFP has funded over $10.3 million in investments and generated more than $4.5 million in repayments. Those repayments provided 44 percent of capital available for new investments in succeeding generations of en-trepreneurs with new ideas. This is the equivalent of providing proof-of-concept funding for 44 Oklahoma start-up companies.

Over its history, TBFP funding has helped companies subsequently raise more than $268 million in private capital, creating a leverage ratio of 33:1 for the state’s investment.

i2E’s portfolio attracts investment to the region with more than $770 million in funding.

Approximately $489 million of this has been in private investment from venture capital,

angels and strategic investors.

TBFP

8+7+7+2+25+51108

Companies Funded

IT/Software51%

portfolio companies by industry 1999-2012

private equity investment 1999-2012

sources of capital

Energy & Environmental

Advanced Materials

Other

Manufacturing Equipment

Life Sciences

7%

7%

2%

8%

25%

$40.5M in annualized revenues 90% of revenues outside state $22M in annualized payroll

316 full time employees equivalent average wage of $74,84216 patents filed, 10 issued

34% job growth



44%

Entrepreneurs Funding Entrepreneurs

Angel Venture Strategic Convertible Debt Capital Partners Note

41%

8%14%

66%

20%

10%

3%

25%23%

13%

Percent of 12 Month Capital Raised

Percent Source of Funding

2120

Capital raised from angel investors

- more than doubled - to 8% while capital

raised from VC investors fell 66% to 19%

OK Angel Side Car FundDermaMedics is a pharmaceutical skin care company specializing in the development of novel topical, non-steroidal, non-prescription therapeutics that effectively treats inflammatory skin problems. The products are specifically designed to be sold exclusively by physicians and/or other medical professionals such as medical spas, pharmacies and oncology related facilities.

Perk Dynamics enables you to take control of your Coffee and Espres-so Operations Management. Perk Dynamics product line provides easy to use Automated controls for coffee and espresso systems.

Selexys Pharmaceuticals is committed to advancing the understand-ing of inflammation and developing novel new products to treat in-flammatory diseases. Their pioneering work on the molecular mecha-nisms of inflammation has led to breakthroughs in novel therapeutics for inflammatory and thrombotic diseases and positioned Selexys with strong scientific underpinnings.

Start OKAccele Biopharma, Inc. Acting as an accelerator/incubator specifically for pharmaceutical and biotechnologies discovered in or transferred into Oklahoma, ABP will provide the core management (including raising and managing investment capital) components needed to de-velop these discoveries locally. Accele Venture Partners (AVP), a com-panion venture fund, is currently raising an Oklahoma based venture fund to support the 4 to 5 anticipated ABP spinout companies, each being treated as an individual investment opportunity.

All Concept Fund Companies $268,497,418

In Business $173,997,100

Concept Funding $10,392,477

2012

FY2012 TBFP companies average annual wage comparison

2012 Seed Fund InvestmentsDermaMedics is a pharmaceutical skin care company special-izing in the development of novel topical, non-steroidal, non-prescription therapeutics that effectively treats inflammatory skin problems. The products are designed to be sold exclusively by physicians and/or other medical professionals such as medi-cal spas, pharmacies and oncology related facilities. Failsafe Hazmat Compliance’s software is the first logic based, comprehensive hazardous materials shipping software for multi-modal transportation methods on the market that will standardize preparation, processing, and management of ship-ping documentation. Failsafe Hazmat can help companies avoid millions of dollars of potential fines and litigation, which can be incurred when shipping hazardous materials domestically and internationally, and enhance productivity.

OMRF Glioblastoma Multiforme (GBM) is the most preva-lent and aggressive type of malignant brain tumor in humans. At this time, there are no effective treatments available for this type of tumor. OMRF researchers have identified a compound, OKN-007, that has the unique ability to cross the blood-brain barrier and has been successfully shown to decrease both tumor size and tumor vasculature in animal models of glioblastoma.

Perk Dynamics enables you to take control of your Coffee and Espresso Operations Management. Perk Dynamics product line provides easy to use Automated controls for coffee and espresso systems.

2012 Follow-On InvestmentsAltheus Therapeutics was established to develop novel thera-pies for Inflammatory Bowel Disease (IBD). Altheus’ technolo-gies, developed at the University of Oklahoma, are the result of 30 years of research and insight into the disease.

Emotion Media, LLC is a professional multi-media design studio that specializes in creating custom media services for the professional photography industry and other businesses. Our dedicated team of programmers, designers, and service profes-sionals take special care in creating and delivering high quality, high-impact presentations.

66 full time employees38% job growth rate

average annual wage of $88,081 4 patents filed, 2 issued

$4.7M in revenue

For Oklahoma companies ready to move from concept to product launch, i2E’s Oklahoma Seed Capital Fund provides the investment capital to help them reach the market and achieve success that creates jobs and wealth for Oklahoma. Since it was launched in 2007, the Seed Fund has invested $5.6 million in 16 companies, which have attracted more than $25 million in co-investment.

S EED CA P I TA L F U N D

Access to Capital Access to Capital

Dr. Allen Apblett, co-founder & Chief Scientific Officer, Associated Material Processing, LLC

2012 Concept Investment from Seed Fund Associated Material Processing, LLC (AMP) is a waste abatement company fo-cused on the efficient, cost effective removal and recovery of toxic arsenic from ef-fluent streams produced at semiconductor facilities. Based on bench scale validation and preliminary results, AMP believes commercial production of their proprietary sorbent, will be simplistic, rapid and cost effective.

Companies receiving seed capital funding created 66 full time jobs that

pay more than double the average annual wage in Oklahoma.

2322

2012 Seed Fund InvestmentsDermaMedics is a pharmaceutical skin care company special-izing in the development of novel topical, non-steroidal, non-prescription therapeutics that effectively treats inflammatory skin problems. The products are designed to be sold exclusively by physicians and/or other medical professionals such as medi-cal spas, pharmacies and oncology related facilities. Failsafe Hazmat Compliance’s software is the first logic based, comprehensive hazardous materials shipping software for multi-modal transportation methods on the market that will standardize preparation, processing, and management of ship-ping documentation. Failsafe Hazmat can help companies avoid millions of dollars of potential fines and litigation, which can be incurred when shipping hazardous materials domestically and internationally, and enhance productivity.

OMRF Glioblastoma Multiforme (GBM) is the most preva-lent and aggressive type of malignant brain tumor in humans. At this time, there are no effective treatments available for this type of tumor. OMRF researchers have identified a compound, OKN-007, that has the unique ability to cross the blood-brain barrier and has been successfully shown to decrease both tumor size and tumor vasculature in animal models of glioblastoma.


2012 Follow-On InvestmentsAltheus Therapeutics was established to develop novel thera-pies for Inflammatory Bowel Disease (IBD). Altheus’ technolo-gies, developed at the University of Oklahoma, are the result of 30 years of research and insight into the disease.

Emotion Media, LLC is a professional multi-media design studio that specializes in creating custom media services for the professional photography industry and other businesses. Our dedicated team of programmers, designers, and service profes-sionals take special care in creating and delivering high quality, high-impact presentations.

66 full time employees38% job growth rate

average annual wage of $88,081 4 patents filed, 2 issued

$4.7M in revenue

For Oklahoma companies ready to move from concept to product launch, i2E’s Oklahoma Seed Capital Fund provides the investment capital to help them reach the market and achieve success that creates jobs and wealth for Oklahoma. Since it was launched in 2007, the Seed Fund has invested $5.6 million in 16 companies, which have attracted more than $25 million in co-investment.

S EED CA P I TA L F U N D


Dr. Allen Apblett, co-founder & Chief Scientific Officer, Associated Material Processing, LLC

2012 Concept Investment from Seed Fund Associated Material Processing, LLC (AMP) is a waste abatement company fo-cused on the efficient, cost effective removal and recovery of toxic arsenic from ef-fluent streams produced at semiconductor facilities. Based on bench scale validation and preliminary results, AMP believes commercial production of their proprietary sorbent, will be simplistic, rapid and cost effective.

Companies receiving seed capital funding created 66 full time jobs that

pay more than double the average annual wage in Oklahoma.

2322

The SeedStep Angels group continued its remarkable story of growth and expansion in fiscal 2012, a year in which a new chapter was launched in Ardmore, along with increased capital investment in Oklahoma startups, stronger syndication efforts with regional Angel networks and the introduction of best practices to the investment group.

The Ardmore chapter debuted in January with six founding members, joining already established Oklahoma City and Tulsa groups and increasing the network’s total statewide membership to 30. The Ardmore angels heard their first investor pitches in May.

Angel investment grew during the year, as well, when individual SeedStep

Angels invested $573,000 in seven companies, a 57 percent increase over

the previous year.

Founded in 2009, the SeedStep Angels also continued to build relationships with regional Angel networks. Syndicated deals from angel groups in Kansas, Missouri and Texas, were presented at SeedStep Angel screening meetings, and resulted in one investment from an Oklahoma Angel.

The group also worked to promote best practices in Angel investing. In March, John May, a nationally recognized Angel investor and founder of several Angel groups in the Washington, D.C., area, gave a Power of Angel Investing Seminar on due diligence in Oklahoma City. Trish Brasted, founder of the Midwest Venture Alliance in Wichita, KS also sat on a panel for the seminar. The group also held events with Rob Adams (Texas Venture Labs) revolving around the subject of market validation and Rob Wiltbank (Willamette University) regarding revenue capital.

S EED S T EP A N G EL S


fy2012 investments Associated Material Processing, LLC (AMP) is a waste abatement com-pany focused on the efficient, cost effective removal and recovery of toxic arsenic initially from effluent streams produced at semiconductor facilities. Based on bench scale validation and preliminary results, AMP believes commercial production of their proprietary sorbent, will be simplistic, rapid and cost effective.

CritiTech specializes in optimizing the delivery of challenging drug sub-stances – potent molecules, poorly soluble compounds and biomolecules. Using proprietary SCF Technology and ability to simplify formulations, the company can extend the potential delivery options to oral, injection and inhalation routes, as well as to implantable devices.

DermaMedics is a pharmaceutical skin care company specializing in the development of novel topical, non-steroidal, non-prescription therapeutics that effectively treats inflammatory skin problems. The products are specifi-cally designed to be sold exclusively by physicians and/or other medical pro-fessionals such as medical spas, pharmacies and oncology related facilities.

Exerbotics technology is considered by industry experts to be the most ad-vanced and innovative strength-training equipment in the world. The Exer-botics series of strength-training equipment incorporates LCD touch screen monitors that display in real time a client’s effort level, motion and force, providing data that is revolutionizing personal and fitness training.

Expert TA enables Professors and Teaching Assistants to focus their time on educating your students. Leave the homework grading to the computer, complete with partial credit grading of the most complex of math and phys-ics problems.


Selexys Pharmaceuticals’ pioneering work on the molecular mechanisms of inflammation has led to breakthroughs in novel therapeutics for inflamma-tory and thrombotic diseases and positioned Selexys with strong scientific underpinnings.

Rick Alvarez co-founder and Vice President of Operations and Research for Selexys Pharmaceuticals.

Commitments Commitments

6 Angels12 Screened 10 Presented6 Investments

TULSA GROUP

2


OKC GROUP

2

Commitments

7 Angels3 Presented

ARDMORE GROUP

224 25

The SeedStep Angels group continued its remarkable story of growth and expansion in fiscal 2012, a year in which a new chapter was launched in Ardmore, along with increased capital investment in Oklahoma startups, stronger syndication efforts with regional Angel networks and the introduction of best practices to the investment group.

The Ardmore chapter debuted in January with six founding members, joining already established Oklahoma City and Tulsa groups and increasing the network’s total statewide membership to 30. The Ardmore angels heard their first investor pitches in May.

Angel investment grew during the year, as well, when individual SeedStep

Angels invested $573,000 in seven companies, a 57 percent increase over

the previous year.

Founded in 2009, the SeedStep Angels also continued to build relationships with regional Angel networks. Syndicated deals from angel groups in Kansas, Missouri and Texas, were presented at SeedStep Angel screening meetings, and resulted in one investment from an Oklahoma Angel.

The group also worked to promote best practices in Angel investing. In March, John May, a nationally recognized Angel investor and founder of several Angel groups in the Washington, D.C., area, gave a Power of Angel Investing Seminar on due diligence in Oklahoma City. Trish Brasted, founder of the Midwest Venture Alliance in Wichita, KS also sat on a panel for the seminar. The group also held events with Rob Adams (Texas Venture Labs) revolving around the subject of market validation and Rob Wiltbank (Willamette University) regarding revenue capital.

S EED S T EP A N G EL S


fy2012 investments Associated Material Processing, LLC (AMP) is a waste abatement com-pany focused on the efficient, cost effective removal and recovery of toxic arsenic initially from effluent streams produced at semiconductor facilities. Based on bench scale validation and preliminary results, AMP believes commercial production of their proprietary sorbent, will be simplistic, rapid and cost effective.

CritiTech specializes in optimizing the delivery of challenging drug sub-stances – potent molecules, poorly soluble compounds and biomolecules. Using proprietary SCF Technology and ability to simplify formulations, the company can extend the potential delivery options to oral, injection and inhalation routes, as well as to implantable devices.

DermaMedics is a pharmaceutical skin care company specializing in the development of novel topical, non-steroidal, non-prescription therapeutics that effectively treats inflammatory skin problems. The products are specifi-cally designed to be sold exclusively by physicians and/or other medical pro-fessionals such as medical spas, pharmacies and oncology related facilities.

Exerbotics technology is considered by industry experts to be the most ad-vanced and innovative strength-training equipment in the world. The Exer-botics series of strength-training equipment incorporates LCD touch screen monitors that display in real time a client’s effort level, motion and force, providing data that is revolutionizing personal and fitness training.

Expert TA enables Professors and Teaching Assistants to focus their time on educating your students. Leave the homework grading to the computer, complete with partial credit grading of the most complex of math and phys-ics problems.


Selexys Pharmaceuticals’ pioneering work on the molecular mechanisms of inflammation has led to breakthroughs in novel therapeutics for inflamma-tory and thrombotic diseases and positioned Selexys with strong scientific underpinnings.

Rick Alvarez co-founder and Vice President of Operations and Research for Selexys Pharmaceuticals.

Commitments Commitments


TULSA GROUP

2


OKC GROUP

2

Commitments

7 Angels3 Presented

ARDMORE GROUP

224 25

i2E TeamDavid Thomison, Vice President, Investments

Rex Smitherman, Vice President, Operations

Sarah Seagraves, Vice President, Marketing

Tom Francis, Director, Investment Funds

Josh O’Brien, Director of Entrepreneurial Development

David Daviee, Director Finance

Shintaro Kaido, Venture Advisor

Mark Lauinger, Venture Advisor

Richard Rainey, Venture Advisor

Sonja Wilson, CFO-In-Residence

Casey Harness, Business Analyst

Kenneth Knoll, Manager Concept Funds

Scott Thomas, IT Manager

Grady Epperly, Marketing Manager

Michael Kindrat-Pratt, Coordinator SeedStep Angels

Cindy Williams, Investment Analyst

Jay Sheldon, eMedia Specialist

Jim Stafford, Communications Specialist

Katelynn Henderson, Events Specialist

Jennifer Buettner, Executive Assistant

Kate Nelson, Administrative Assistant

Board Of Directors

Roy Williams, Chairman, Greater Oklahoma City Chamber

Michael LaBrie, Secretary, McAfee & Taft

Jonathan Adamson, Hall Capital Partners

Howard Barnett, Jr., OSU-Tulsa and OSU-CHS

Leslie Batchelor, The Center for Economic Development Law

C. James Bode, Bank of Oklahoma, N.A.

Robert Brearton, American Fidelity Assurance Company

Bill W. Burgess, Vortex, Inc.

Michael Carolina, OCAST

Bob Craine, TSF Capital, LLC

Steve Cropper

Philip Eller, Eller Detrich, P.C.

Suzette Hatfield, Crawley Ventures

David Hogan, Hogan Taylor, LLP

Philip Kurtz, Benefit Informatics

Hershel Lamirand III, Oklahoma Health Center Foundation

Merl Lindstrom, Phillip 66

Scott Meacham, Crowe & Dunlevy

Fred Morgan, The State Chamber

David Myers, Ponca City Development Authority

Michael Neal, Tulsa Metro Chamber

David Pitts, Stillwater National Bank

Mark Poole, Summit Bank

Stephen Prescott, OMRF

Meg Salyer, Accel Financial Staffing

Darryl Schmidt, BancFirst

Sheri Stickley, OKBio

Wes Stucky, Ardmore Industrial Development Authority

Richard Williamson, TD Williamson, Inc.

Duane Wilson, LDW Services, LLC

Don Wood, Norman Economic Development Coalition

Institutional Governancei2E strives to have the highest standards of corporate

governance practice and ethical conduct by all board

members and staff. Consistent with those intentions,

i2E has adopted the following charters for its

Board of Directors and Board Committees:

Board of Directors Charter of Governance: Sets and

ensures fidelity to i2E’s mission. Reviews and approves

organizational strategy, goals, plans, and budgets. In addition

the board is charged with establishing policies, approving

major engagements in public policy, and ensuring that

management systems are in place for compliance.

Executive Committee Charter: The function of the

Executive Committee is to exercise powers of the Board

of Directors on matters which arise between regularly

scheduled Board meetings or when it is not practical

or feasible for the Board to meet. This Committee

also reviews and monitors all compensation, benefit

and human resource policy matters, plus monitors and

evaluates the performance of the corporation’s CEO.

Finance and Audit Committee Charter: The primary

purpose of this Committee is to assist the Board of Directors

in fulfilling its fiscal oversight responsibilities. It serves as

an independent and objective party to monitor the integrity

of the Corporation’s financial accounting and reporting

processes and internal control system. Nominating and

Governance Committee Charter: The Committee assists

the Board in developing and overseeing the Corporation’s

policies and procedures regarding Board composition and

recommendations of candidates for nomination to the Board.

Investment Committee Charters: The Board engages two

Investment Committees, the Technology Business Finance

Program Committee and The Oklahoma Seed Capital Fund

Investment Committee to consider and approve applications for

investment within the requirements of the investment programs.

Code of Ethics and Conflict of Interest

The i2E Code of Ethics and Conflict of Interest Policy

outlines principles and standards of honesty and ethical

accountability by which all board members and employees agree

to adhere to with respect to the company and its associates.

Board Evaluation

The Board completes a board evaluation survey annually.

The results of the evaluation are compiled and presented

to the full Board for review and discussion.

46+10+8+16+11+926 27

Statement of Financial Position FY2012 FY2011

Assets

Current Assets

Cash & Cash Equivalents 1,360,309 219,589

Accounts Receivable 271,190 191,895

Prepaid Expenses 1,647 –

Certificates of Deposit 467,811 697,001

Total Current Assets 2,100,957 1,108,485

Furniture, Fixtures and Equipment, Net 65,686 43,580

Accelerate Oklahoma Funds Investment 737,000

Investment in Oklahoma Seed Capital Fund 59,282 78,822

Other Assets 9,290 4,551

Total Assets 2,972,215 1,235,438

Liabilities and Net Assets

Current Liabilities

Accounts Payable 17,632 8,474

TBFP Reinvestment Fund Payable 126 120

Accelerate Oklahoma Funding Payable 908,000

Deferred Revenue 166,451 63,570

Accrued Liabilities 68,396 51,462

Total Current Liabilities 1,160,605 123,626

Accrued Liabilities, Noncurrent 9,290 4,551

Total Liabilities 1,169,895 128,177

Net Assets

Unrestricted 408,778 312,369

Unrestricted - Board Designated 1,393,542 794,892

Total Unrestricted Net Assets 1,802,320 1,107,261

Total Liabilities and Net Assets 2,972,215 1,235,438

Statement of Activities FY2012 FY2011

Revenues

OCAST Funding 2,134,027 1,812,821

Governor’s Cup Sponsorships & Grants 438,625 402,299

Fund Management Fees 375,000 375,000

Accelerate Oklahoma Investment Funding 737,000 –

OKC Technology Business Launch Initiative 515,235 423,968

Other Revenues 395,943 101,886

Total Revenues 4,593,205 3,115,974

Expenses

Commercialization Services 2,473,259 2,081,411

Concept Financing Program 194,487 194,487

i2E Seed Capital, LLC 375,011 375,061

Accelerate Oklahoma Program 135,002 –

Donald W. Reynolds Governor’s Cup 457,657 374,917

Other Expenses 262,730 80,959

Total Expenses 3,898,146 3,106,835

Excess of Revenues Over Expenses 695,059 9,139

Net Assets at Beginning of Year 1,107,261 1,098,122

Net Assets at End of Year 1,802,320 1,107,261

63+5+10+3+12+7

10%8%

16%

11%

9% 46%

FY2012 Revenues

Other Revenues

Accelerate Oklahoma Investment Funding

Accelerate Oklahoma Program

OKC Technology Business Launch Initiative OCAST Funding

Governor's Cup Sponsorships & Grants

Fund Management Fees

FY2012 Expenses

10%

3%

63%

i2E Seed Capital, LLC

Other Expenses

Commercialization Services

Donald W. Reynolds Governor’s Cup

Concept Financing Program5%

12%7%

Sources of State Funding: OCAST provides funding for i2E Commercialization Services, the TBFP Concept Fund and is the primary investor in the Oklahoma Seed Capital Fund.

i2E FY2012 FINANCIAL REPORTS

i2E TeamDavid Thomison, Vice President, Investments

Rex Smitherman, Vice President, Operations

Sarah Seagraves, Vice President, Marketing

Tom Francis, Director, Investment Funds

Josh O’Brien, Director of Entrepreneurial Development

David Daviee, Director Finance

Shintaro Kaido, Venture Advisor

Mark Lauinger, Venture Advisor

Richard Rainey, Venture Advisor

Sonja Wilson, CFO-In-Residence

Casey Harness, Business Analyst

Kenneth Knoll, Manager Concept Funds

Scott Thomas, IT Manager

Grady Epperly, Marketing Manager

Michael Kindrat-Pratt, Coordinator SeedStep Angels

Cindy Williams, Investment Analyst

Jay Sheldon, eMedia Specialist

Jim Stafford, Communications Specialist

Katelynn Henderson, Events Specialist

Jennifer Buettner, Executive Assistant

Kate Nelson, Administrative Assistant

Board Of Directors

Roy Williams, Chairman, Greater Oklahoma City Chamber

Michael LaBrie, Secretary, McAfee & Taft

Jonathan Adamson, Hall Capital Partners

Howard Barnett, Jr., OSU-Tulsa and OSU-CHS

Leslie Batchelor, The Center for Economic Development Law

C. James Bode, Bank of Oklahoma, N.A.

Robert Brearton, American Fidelity Assurance Company

Bill W. Burgess, Vortex, Inc.

Michael Carolina, OCAST

Bob Craine, TSF Capital, LLC

Steve Cropper

Philip Eller, Eller Detrich, P.C.

Suzette Hatfield, Crawley Ventures

David Hogan, Hogan Taylor, LLP

Philip Kurtz, Benefit Informatics

Hershel Lamirand III, Oklahoma Health Center Foundation

Merl Lindstrom, Phillip 66

Scott Meacham, Crowe & Dunlevy

Fred Morgan, The State Chamber

David Myers, Ponca City Development Authority

Michael Neal, Tulsa Metro Chamber

David Pitts, Stillwater National Bank

Mark Poole, Summit Bank

Stephen Prescott, OMRF

Meg Salyer, Accel Financial Staffing

Darryl Schmidt, BancFirst

Sheri Stickley, OKBio

Wes Stucky, Ardmore Industrial Development Authority

Richard Williamson, TD Williamson, Inc.

Duane Wilson, LDW Services, LLC

Don Wood, Norman Economic Development Coalition

Institutional Governancei2E strives to have the highest standards of corporate

governance practice and ethical conduct by all board

members and staff. Consistent with those intentions,

i2E has adopted the following charters for its

Board of Directors and Board Committees:

Board of Directors Charter of Governance: Sets and

ensures fidelity to i2E’s mission. Reviews and approves

organizational strategy, goals, plans, and budgets. In addition

the board is charged with establishing policies, approving

major engagements in public policy, and ensuring that

management systems are in place for compliance.

Executive Committee Charter: The function of the

Executive Committee is to exercise powers of the Board

of Directors on matters which arise between regularly

scheduled Board meetings or when it is not practical

or feasible for the Board to meet. This Committee

also reviews and monitors all compensation, benefit

and human resource policy matters, plus monitors and

evaluates the performance of the corporation’s CEO.

Finance and Audit Committee Charter: The primary

purpose of this Committee is to assist the Board of Directors

in fulfilling its fiscal oversight responsibilities. It serves as

an independent and objective party to monitor the integrity

of the Corporation’s financial accounting and reporting

processes and internal control system. Nominating and

Governance Committee Charter: The Committee assists

the Board in developing and overseeing the Corporation’s

policies and procedures regarding Board composition and

recommendations of candidates for nomination to the Board.

Investment Committee Charters: The Board engages two

Investment Committees, the Technology Business Finance

Program Committee and The Oklahoma Seed Capital Fund

Investment Committee to consider and approve applications for

investment within the requirements of the investment programs.

Code of Ethics and Conflict of Interest

The i2E Code of Ethics and Conflict of Interest Policy

outlines principles and standards of honesty and ethical

accountability by which all board members and employees agree

to adhere to with respect to the company and its associates.

Board Evaluation

The Board completes a board evaluation survey annually.

The results of the evaluation are compiled and presented

to the full Board for review and discussion.

46+10+8+16+11+926 27

Statement of Financial Position FY2012 FY2011

Assets

Current Assets

Cash & Cash Equivalents 1,360,309 219,589

Accounts Receivable 271,190 191,895

Prepaid Expenses 1,647 –

Certificates of Deposit 467,811 697,001

Total Current Assets 2,100,957 1,108,485

Furniture, Fixtures and Equipment, Net 65,686 43,580

Accelerate Oklahoma Funds Investment 737,000

Investment in Oklahoma Seed Capital Fund 59,282 78,822

Other Assets 9,290 4,551

Total Assets 2,972,215 1,235,438

Liabilities and Net Assets

Current Liabilities

Accounts Payable 17,632 8,474

TBFP Reinvestment Fund Payable 126 120

Accelerate Oklahoma Funding Payable 908,000

Deferred Revenue 166,451 63,570

Accrued Liabilities 68,396 51,462

Total Current Liabilities 1,160,605 123,626

Accrued Liabilities, Noncurrent 9,290 4,551

Total Liabilities 1,169,895 128,177

Net Assets

Unrestricted 408,778 312,369

Unrestricted - Board Designated 1,393,542 794,892

Total Unrestricted Net Assets 1,802,320 1,107,261

Total Liabilities and Net Assets 2,972,215 1,235,438

Statement of Activities FY2012 FY2011

Revenues

OCAST Funding 2,134,027 1,812,821

Governor’s Cup Sponsorships & Grants 438,625 402,299

Fund Management Fees 375,000 375,000

Accelerate Oklahoma Investment Funding 737,000 –

OKC Technology Business Launch Initiative 515,235 423,968

Other Revenues 395,943 101,886

Total Revenues 4,593,205 3,115,974

Expenses

Commercialization Services 2,473,259 2,081,411

Concept Financing Program 194,487 194,487

i2E Seed Capital, LLC 375,011 375,061

Accelerate Oklahoma Program 135,002 –

Donald W. Reynolds Governor’s Cup 457,657 374,917

Other Expenses 262,730 80,959

Total Expenses 3,898,146 3,106,835

Excess of Revenues Over Expenses 695,059 9,139

Net Assets at Beginning of Year 1,107,261 1,098,122

Net Assets at End of Year 1,802,320 1,107,261

63+5+10+3+12+7

10%8%

16%

11%

9% 46%

FY2012 Revenues

Other Revenues

Accelerate Oklahoma Investment Funding

Accelerate Oklahoma Program

OKC Technology Business Launch Initiative OCAST Funding

Governor's Cup Sponsorships & Grants

Fund Management Fees

FY2012 Expenses

10%

3%

63%

i2E Seed Capital, LLC

Other Expenses

Commercialization Services

Donald W. Reynolds Governor’s Cup

Concept Financing Program5%

12%7%

Sources of State Funding: OCAST provides funding for i2E Commercialization Services, the TBFP Concept Fund and is the primary investor in the Oklahoma Seed Capital Fund.

i2E FY2012 FINANCIAL REPORTS

i2E is a 501(c)(3) private not-for-profit corporation focused on wealth creation by growing the technology-based entrepreneurial

economy in Oklahoma. We are able to accomplish our mission through support from the Oklahoma Center for the Advancement

of Science and Technology (OCAST). We would like to thank OCAST, the state of Oklahoma, and all of our partners for their

ongoing financial support. The success of i2E and our client companies also relies on the contributions of many individuals and

organizations who invest their time, expertise, and capital in Oklahoma’s start-up technology companies. The economic impact

statistics used throughout this report are based on client company responses to i2E’s annual impact survey and internal database.

State Small Business Credit Initiativewww.treasury.gov/resource-center

i2E is a 501(c)(3) private not-for-profit corporation focused on wealth creation by growing the technology-based entrepreneurial

economy in Oklahoma. We are able to accomplish our mission through support from the Oklahoma Center for the Advancement

of Science and Technology (OCAST). We would like to thank OCAST, the state of Oklahoma, and all of our partners for their

ongoing financial support. The success of i2E and our client companies also relies on the contributions of many individuals and

organizations who invest their time, expertise, and capital in Oklahoma’s start-up technology companies. The economic impact

statistics used throughout this report are based on client company responses to i2E’s annual impact survey and internal database.

State Small Business Credit Initiativewww.treasury.gov/resource-center

840 Research Parkway, Suite 250 • OKC, OK 73104 • 618 E. Third, Suite 1 • Tulsa, OK 74120

800.337.6822 • www.i2E.org • facebook.com/OKGOVCUP • twitter.com/i2E_Inc

FY 2012 Annual Report

Documents

investment capital

entrepreneurial development

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business life cycle

busy entrepreneurs

build highgrowth companies

new businesses

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