2020 ANNUAL REPORT

ANNUAL REPORTWhere do we begin in ref lecting on 2020? In Nashville, we endured devastating tornadoes, a pandemic, social unrest, and a downtown bombing on Christmas morning. Thankfully, through all this our NCN family remained safe and healthy. And despite the many unexpected challenges, our portfolio companies have performed admirably and continue to execute their growth plans.

While some of our companies experienced slower sales cycles and other challenges as the pandemic hit, most have bounced back more quickly than expected. This is in large part due to the business-critical nature of their solutions, the relevance of their offerings, and the determination of highly motivated entrepreneurs. NCN’s model of leveraging the expertise of our investor partners has also been extremely valuable through this time. Having experienced operators engaged in our portfolio has been a tremendous resource and advantage for our companies.

Even in this time of great uncertainty, we are f inding promising opportunities. NCN has a pipeline full of high-quality investment prospects. We have sustained our position as a leading early stage investor in the region, while many “tourist” participants in our stage have shifted their focus back to larger or later stage companies. Nevertheless, we will continue to be calculated, thoughtful, and focused on deploying our proven model.

The continued success and progress of our organization would not be possible without the commitment of our Sponsors, Underwriters, Patrons, and investor partners. Your unwavering support provides the foundation for NCN’s continued impact on high growth entrepreneurship.

SID CHAMBLESS CHASE PERRY

HIGHLIGHTS

Companies Supported by NCN

Invested by NCN Partners

Invested in NCN Supported Companies

In Enterprise Value Achieved

2

52Companies

Supported by NCN

$84MInvested by

NCN Partners

SID CHAMBLESSManaging Partner

• Managing Partner of NCN Angel Fund I, LP, NCN Angel Fund II, LP, Tennessee Angel Fund, LP and NCN Partners Fund, LP

• NCN Executive Director since 2003

• Vanderbilt BA, MBA

MORGAN PISANODirector of Operations

• NCN Executive Coordinator since 2013

• Western Kentucky University BS

CHASE PERRYManaging Partner

• Managing Partner of NCN Angel Fund I, LP, NCN Angel Fund II, LP, Tennessee Angel Fund, LP and NCN Partners Fund, LP

• NCN Director since 2010

• Hampden-Sydney BA, Vanderbilt MBA

JAY BAKERAssociate

• NCN Analyst since 2018

• Rhodes College BA

THE TEAM

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NCN INVESTORS ARE FOUNDERS AND EXECUTIVES OF THE FOLLOWING COMPANIES

Acadia Healthcare

AIM Healthcare

Aladdin Industries

American Endoscopy

Amylin Pharmaceuticals

AMSURG

Asurion

Brentwood Capital Advisors

C.B. Ragland

Confirmation.com

CaseLogistix

Century II

Corrections Corp/CoreCivic

Change Healthcare

China Health Care

CHD Meridian

Choice Food Group

Clayton Associates

Cogent/HMG

Counsel On Call

Coventry Corporation

CVS Caremark

Digital Reasoning

Dollar General

EnableComp

Enterprise Electric

Enterprise Holdings

Envoy

Equitable Securities

Essex Technology Group

General Care

Harbert Management

HCA

HealthAmerica

HealthSpring

Healthways

HealthWise of America

HEOPS

Heritage Health Systems

Hospital Affiliates International

Hospital Management Professionals

Ingram Industries

Inspiris

Iroquois Capital Group

JC Bradford

KraftCPAs

McWane Industries

MedInc

MedSolutions

National Imaging Affiliates

naviHealth

NeighborMD

North America Holding Company

NorthWind Partners

O’Charley’s

Optum

Outpatient Imaging Affiliates

Ozburn-Hessey Logistics

Passport Health

Pinnacle Financial Partners

PopHealthCare

Premier Parking

Premise Health

Province Healthcare

Psychiatric Solutions

PureSafety

RegionalCare

REIT Investment Group

Renal Advantage

RevPoint Healthcare

Sharecare

SMS Holdings

Standard Candy

Sterling Card Solutions

Surgical Care Affiliates

Surgical Health Corp

Symbion Healthcare

TeamHealth

Tennessee Bun Company

Thompson Machinery

Triton Boats

Truxton Trust

Vaco

Windsor Health Group

4

NCN CO-INVESTORS INCLUDEAdvance Venture PartnersBaird CapitalBCBS Venture PartnersChrysalis VenturesCigna VenturesCouncil CapitalCredit Suisse NEXTDeerfield ManagementEcho Health VenturesGreat Hill Partners

Goldman SachsGrotechGV (Google Ventures)Harbert Management Corp.HCAHealth Enterprise PartnersHealth VelocityHeritage GroupHiltonHLM Venture Partners

HumanaLemhi VenturesLRVHealthMarriott InternationalMartin VenturesNasdaqNoro-Moseley PartnersOak HC/FT Optum VenturesPeakSpan

PrimusRiver Cities Capital FundsSanté Ventures Silicon Valley BankSquare 1 BankSSM PartnersUnitedHealth Group VenturesViking Global InvestorsVocap Investment PartnersY Combinator

DO

LLA

RS

SEED$0 - $1M in Revenue

$1M - $5MInvestments

$5M - $20MInvestments

$20M+Investments

$0 - $1MInvestments

REVENUE

CASH FLOW

GROWTH$5M - $15M in Revenue

EARLY GROWTH$1M - $5M in Revenue

LATE GROWTH$15M+ in Revenue

Traditional VCsGrowth Equity VCs

Growth Equity VCsTraditional Private Equity

Mezzanine LendersSenior Lenders

Accelerator ProgramsSeed Funds

Friends & FamilyAngel Investors

CAPITAL GAP

EARLY STAGE CAPITAL CONTINUUM

5

NCN ADVISORY BOARDTOM WYLLY (Chairman) Brentwood Capital Advisors

VIC ALEXANDER KraftCPAs

HAL ANDREWS Trilliant Health

JIM BAKER Tranquility Partners

TYSON BICKLEY Waller

BARBARA CANNON NuSirt Sciences

RAY CAPP ConduIT Corporation

SID CHAMBLESS Nashville Capital Network

JOE COOK III Mountain Group Capital

NANCY EVERITT HEOPS

BRIAN FOX Confirmation.com

JEFF FOX Cherry Bekaert

FRANK GORDON Crofton Capital

EMILY HAK Insperity

JOHN HARRISON Harbert Management Corporation

PHIL HERTIK Private Investor

MICHAEL HOLLEY Bass, Berry & Sims

HAYLEY HOVIOUS Nashville Health Care Council

ERIC JOHNSON Owen Graduate School of Management, Vanderbilt University

KRIS KEMP Bass, Berry & Sims

JIM KEVER Voyent Partners

JIM LACKEY EnableComp

ROB LAIRD Maynard Cooper & Gale

JIM MEADE LBMC

ROB METCALF Concert Genetics

CHASE PERRY Nashville Capital Network

CHRISTOPHER RAND AngelEye Health

KEVIN RODDEY Pinnacle Financial Partners

CLINT SMITH Entrepreneur

JOHN TITUS Bradley

BRADFORD VIEIRA ServisFirst Bank

PAUL WALLACE Heritage Group

BRIAN WALLER Vaco

STEVE WOOD Baker, Donelson

6

2020 ACTIVITY

MARCHFollow On

AUGUSTFollow On

APRILFollow On

NOVEMBERFollow On

JULYFollow On

NOVEMBERAcquisition

AUGUSTNew Investment

DECEMBERNew Investment

DECEMBERNew Investment

$27MSeries C2

$2.5MDebt Round

$11MSeries B

$3MSeries C

$50MSeries C

$2MSeries A

$2MSeries A

$6MSeries A

Acquired By

7

ACTIVE HOLDINGS

8

Bone McAllester NortonCadence BankCIBC Bank USCouncil CapitalDiversified Trust

Donnelley Financial SolutionsFirstBankHeritage GroupInf lammoJones Lang LaSalle

Live Oak BankLLR PartnersPetra Capital PartnersRiver Cities Capital FundsSandbox Industries

Santé VenturesSilicon Valley Bank

Butler Snow

Harbert Management Corporation

HEOPS

HUB International

Pinnacle Financial Partners

PATRONS

UNDERWRITERS

SPONSORS

9

NOTABLE EXITS

APR 2013 NOV 2015

JULY 2017

OCT 2013 JULY 2016

SEPT 2017

OCT 2013 SEPT 2016

NOV 2020JULY 2019 OCT 2019NOV 2017

Acquired By a Joint Venture Between Recapitalization ByAcquired By

Acquired By Recapitalization By

Acquired By

Recapitalization By Acquired By

Acquired By

Acquired By

Acquired By

Recapitalization By

10

TOP QUARTILE PERFORMANCE

TOP QUARTILE

THIRD QUARTILE

SECOND QUARTILE

BOTTOM QUARTILE

MEDIAN

TAF PartnersFund (2010)

NCN AngelFund II

(2013)

NCN PartnersFund (2017)

NCN ANNUAL MEETING AND

RECEPTION

Early in 2020, NCN partners gathered at

Graduate Hotel to celebrate NCN’s Annual Meeting and Reception.

11

NCN AngelFund I

(2008)

BUILDING CONNECTIONS1. Distrubuted Capital / Contributed Capital. Source: Cambridge Assoicates, US Venture Capital: Index and Selcted Benchmark Statistics, Q2 2020.

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