Private Equity and Venture Capital volume is depressed amid uncertainty and a changing capital environment during the first quarter of 2017. Read Bridgepoint Merchant Banking's latest Midwest Capital Raise Update, measuring private equity and venture capital throughout the Midwest.

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

2. Midwest Capital Raise Quarterly Update
1bridgepointmb.com
Bridgepoint Midwest Capital Raise Indices
Index Definition
Q1-11 = 100. As defined by Bridgepoint Merchant Banking, the Bridgepoint Midwest M&A Index is assembled by summing the number of transactions (for
transactions that meet the Transaction Requirements below, as sorted by announced date) announced over the latest two quarters. Year-over-year and
quarter-over-quarter percent change is calculated and then applied to the index number for the previous applicable period.
Transaction Requirements
Target/Issuer must be located in the Midwest, and the Investor must be either a private equity or venture capital firm. Midwest defined as Iowa, Kansas,
Missouri, Nebraska, North Dakota, Oklahoma, and South Dakota.
Source: Bridgepoint Merchant Banking, Capital IQ (05/30/2017), PitchBook
Private Equity and Venture Capital Volume Depressed Amid
Uncertainty and a Changing Capital Environment
§ Private Equity Index Summary: On a year-over-year
basis, the index decreased from 100.0 in Q1-16 to 73.4 in
Q1-17, representing a 26.6% decline. On a quarter-to-
quarter basis, the index increased by a marginal 2.2%
from recent lows of 71.9 in Q4-16
§ Perspective / Key Drivers: Both the index and
transaction volume remained low in Q1-17 with the index
marginally above its lowest point in more than 5 years.
Despite low deal activity, the average transaction size has
increased due to a shift towards larger, higher quality
transactions. Transaction volumes remain low due to
depressed inventory with PEs and strategic buyers
competing on a limited number of deals. Fundraising has
continued at historic levels while, concurrently, dry
powder balances swell, further increasing the competitive
landscape for high quality investment opportunities.
Valuations have also been pressured, with EBITDA
multiples increasing to 10.8x nationally in Q1-17 after
reaching new highs of 10.7x in 2016. While appetites are
strong, uncertainty remains high within many sectors
under the new administration
§ Venture Capital Index Summary: On a year-over-year
basis, the index decreased 22.2% to 74.0 in Q1-17, from
95.2 in Q1-16, its lowest point since 2010. On a quarter-
to-quarter basis, the index fell to 74.0 from 97.1 in Q4-16,
a 23.8% decrease
§ Perspective / Key Drivers: The index decline is
supported by low transaction volumes in recent quarters
as the supply of high quality investments are low following
heavy activity in recent years. VC investors have shifted
focus toward supporting existing portfolio companies,
which has resulted in fewer first-time-financings.
Fundraising started the year strong, but below record
setting levels in 2016
First Quarter 2017
While private equity and venture capital activity remains well below recent peaks, we believe
capital markets will continue to provide funding and financing opportunities to high quality
companies with strong profitability and / or growth at favorable valuations
Bridgepoint Midwest Private Equity Index
(Q1-11 = 100)
Bridgepoint Midwest Venture Capital Index
(Q1-11 = 100)
-50%
-40%
-30%
-20%
-10%
%
10%
20%
30%
40%
50%
70
80
90
100
110
120
130
Yr/YrChange(%)
Index
Yr/Yr Change PE Index
-50%
-40%
-30%
-20%
-10%
%
10%
20%
30%
40%
50%
40
60
80
100
120
140
160
Yr/YrChange(%)
Index
Yr/Yr Change VC Index

3. 25
22
24
41
28
36
42
34
3232
22
4040
37
25
28
25
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
0
10
20
30
40
50
MedianTEV($mm)
Volume
Quarterly Midwest PE Financing Volume
PE Volume PE Median Transaction Size
Selected Midwest Q1-17 Capital Raise Transaction Statistics(a)
§ Industrials, Healthcare, Finance and Information
Technology accounted for 87.5% of total Midwest private
equity financing transaction volume in Q1-17
§ Transaction volume by sector in Q1-17 saw a noticeable
increase in Industrial investments relative to Q4-16,
increasing 18.3%. Increased volume in the Industrial
sector offset the decreased Healthcare activity, falling
15.8%
§ Information Technology PE activity has remained
consistent and strong in the Midwest, ahead of the
growth seen at a national level
2bridgepointmb.com
Midwest Capital Raise Quarterly Update
§ Information Technology continues to account for the
bulk of activity in Midwest VC markets, increasing an
additional 3.6% from Q4-16 to 41.7% in Q1-17
§ The Healthcare sector captured 20.8% of investment
activity, an increase of 6.5% from Q4-16
§ Industrials, Consumer Discretionary, Financials and
Energy remained fairly steady from the previous
quarter
§ Venture capitalists primarily finance growth and will
continue to seek investments in disruptive technology,
which is illustrated by the Information Technology
sector’s large allocation of invested capital
Midwest Private Equity Transaction Volume by Sector
Midwest Venture Capital Transaction Volume by Sector
§ Industrials
§ Healthcare
§ Financials
§ Information Technology
§ Consumer Discretionary
§ Energy
§ Utilities
§ Information Technology
§ Healthcare
§ Industrials
§ Consumer Discretionary
§ Financials
§ Energy
§ Consumer Staples
§ Quarterly Midwest Private Equity financing volume
increased by 13.6% to 25 transactions in Q1-17 from
22 transactions in Q4-16. On a year-over-year basis,
quarterly PE Midwest financing volume decreased by
10.7% from Q1-16. The increase in Q1-17 Midwest PE
financing volume was against the trend nationally,
which saw a decline from 2016 levels.
§ The median transaction size increased by 7.1% to
$3.8mm in Q1-17, holding remarkably consistent for the
past 2 years above the historical median
First Quarter 2017
§ Quarterly Midwest venture capital volume increased by
13.9% from 36 transactions in Q4-16 to 41 transactions
in Q1-17. On a year-over-year basis, total financing
volume decreased by 30.5% from Q1-16
§ VC volume in the Midwest remains low, reinforcing the
downward trend since Q3-14. On a national level,
transaction volumes are following a similar trend and
multi-year decline
§ The median transaction size in Q1-17 was $0.5mm, it’s
lowest value since Q4-12
25.0%
20.8%
20.8%
20.8%
4.2%
4.2%
4.2%
41.7%
20.8%
8.3%
8.3%
8.3%
8.3%
4.2%
41
36
65
45
59
40
73
62
7273
91
6869
73
82
70
$0.0
$0.4
$0.8
$1.2
$1.6
$2.0
$2.4
$2.8
0
20
40
60
80
100
MedianTEV($mm)
Volume
Quarterly Midwest VC Financing Volume
VC Volume VC Median Transaction Size

4. Selected Midwest Q1-17 Capital Raise Transaction Statistics (Continued)(a)
Selected Midwest Q1-17 Capital Raise Transactions(a)
(a) Midwest defined as Iowa, Kansas, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota. Issuer must be located in the Midwest.
Source: Bridgepoint Merchant Banking, Capital IQ
3bridgepointmb.com
Midwest Capital Raise Quarterly Update
First Quarter 2017
§ Total private equity and venture capital transactions
with Midwest issuers increased 13.8% from 58 in
Q4-16 to 66 in Q1-17
§ Transactions with Midwest investors increased 180.0%
from 15 in Q4-16 to 42 in Q1-17
§ The demand for investments in Midwest companies
increased from recent lows in Q4-16; however, due to
the inadequate investor base, local companies routinely
seek out-of-market capital to meet their financing needs
– “importing capital”
Announced Target Target Location Investor Investor Type Target Sector Transaction Size ($mm)
03/30/2017 SmartHome Ventures, LLC MO Comporium, Inc.; OPENAIR Equity Partners Venture Capital Consumer Discretionary $8.5
03/29/2017 Precision Virologics, Inc. MO Oncolys BioPharma Inc. Venture Capital Healthcare 0.5
03/27/2017 OssiFi, Inc. KS - Private Equity Healthcare 0.4
03/24/2017 BlueHollar, LLC MO - Venture Capital Information Technology 0.1
03/22/2017 Ascent Resources Utica Holdings, LLC OK - Venture Capital - 1,500.0
03/22/2017 Pear Deck, Inc. IA Hyde Park Venture Partners Venture Capital - 4.0
03/17/2017 Mercury Network, LLC OK Harvest Capital Credit Corporation Private Equity Information Technology 0.1
03/15/2017 Spire Inc. (NYSE:SR) MO - Private Equity Utilities 100.0
03/14/2017 GLN Holdings, Inc. MO - Venture Capital - 0.0
03/14/2017 NewLeaf Symbiotics, Inc. MO - Private Equity Healthcare 3.6
03/12/2017 Brown's Shoe Fit Company IA - Private Equity Consumer Discretionary 0.1
03/12/2017 Edammo, Inc. IA - Venture Capital - 0.1
03/10/2017 Five Q Innovations, LLC IA - Venture Capital - 0.3
03/07/2017 Carden, LLC OK - Venture Capital - 4.0
03/06/2017 Riley Exploration Group, LLC OK - Private Equity Energy 40.0
03/02/2017 CrossFirst Holdings, LLC KS - Private Equity Financials 5.0
03/02/2017 Alberici Corporation MO - Private Equity Industrials 3.8
02/28/2017 Koch Holdings, LLC KS - Private Equity Industrials 2.6
02/28/2017 Koch Industries, Inc. KS - Private Equity Industrials 45.7
02/28/2017 Mycroft AI, Inc. MO Jaguar Land Rover Automotive plc Venture Capital Information Technology 0.1
02/24/2017 MediBeacon Inc. MO - Private Equity Healthcare 11.2
02/22/2017 Ascent ATL-TOR, LLC MO - Venture Capital - 3.3
02/21/2017 Affigen, LLC MO Black Beret Life Sciences Venture Capital Healthcare 17.0
02/15/2017 AirZaar Inc. MO Missouri Technology Corporation Venture Capital Information Technology 0.4
02/09/2017 Mid-America Angels KS - Private Equity Financials 0.3
02/08/2017 CTY, Inc. MO 500 Startups Venture Capital Information Technology 0.2
02/08/2017 Mycroft AI, Inc. MO 500 Startups Venture Capital Information Technology 0.2
02/03/2017 Ascent Resources Officer Investments, LLC OK - Venture Capital - 0.5
02/02/2017 Genesis Systems LLC MO - Venture Capital - 0.1
02/01/2017 Premier Crop Systems Holding, LLC IA - Venture Capital - 4.7
02/01/2017 Ascent Resources, LLC OK - Venture Capital Energy 1.7
01/30/2017 Epicrop Technologies Inc. NE Allen & Company Inc.; Nelnet, Inc. Venture Capital Healthcare 3.2
01/24/2017 Quiet Signal MO New Enterprise Associates Venture Capital Financials 3.3
01/19/2017 Orthman Manufacturing, Inc. NE - Private Equity Industrials 1.0
01/13/2017 Interface Security Systems Holdings, Inc. MO Interface Master Holdings Inc. Private Equity Industrials 5.1
01/04/2017 Revenue Management Solutions, LLC OK Fidus Investment Corporation Private Equity Healthcare 12.3
0
20
40
60
80
100
120
Volume
Quarterly Midwest Financings Issuers and
Investors
Midwest Issuers Midwest Investors

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