MINDBODY, Inc., the industry leader in cloud-based, business management software for health and wellness organizations worldwide, has received a major investment from two of the country's most respected venture capital firms, Bessemer Venture Partners and Catalyst Investors. The infusion of private equity, totaling $14 million, includes an initial tranche of $11 million, with an additional $3 million option that may be exercised at any time within the next 36 months.  

Named the 21st fastest growing software company by Inc. Magazine's 2009 Inc. 500 list, MINDBODY has capitalized on its successful Software as a Service (SaaS) solution, which includes Web-based scheduling, e-commerce, integrated payment processing and reporting capabilities, as well as a low monthly subscription cost. "To some degree, the recession has worked in our favor, as small and medium-sized businesses search for innovations to help them cut costs and increase revenues," said Rick Stollmeyer, founder and CEO of MINDBODY. "They're also realizing that in the face of rapid technological innovation, they can no longer afford to do business on paper."

Following 60 percent growth and nearly $10 million in revenue in 2009, MINDBODY has accelerated substantially in recent months. The company increased its subscriber base 72 percent year-over-year in the first half of 2010, and is presently serving 9,300 businesses in 62 countries.

"One of the most powerful trends in the software industry is the adoption of Web-based automation by small businesses. With its base fitness, spa, salon and wellness business customers, MINDBODY is already the clear leader in driving this adoption and should continue to experience extraordinary growth," said Jeremy Levine, a partner with Bessemer Venture Partners (BVP) and newly appointed MINDBODY board member. BVP manages more than $2 billion of venture capital invested in more than 130 companies located around the world.

Catalyst Investors, which first contributed $5.6 million to MINDBODY in March 2009, increased their position with a second round of investment. "MINDBODY has demonstrated outstanding performance since our investment last year. We are excited to be 'doubling down' so the company can accelerate its growth going forward," said Tyler Newton, Partner and Research Director at Catalyst Investors. Catalyst makes private equity investments in high-growth, lower middle market companies including SaaS, digital media, Internet infrastructure and wireless communications sectors.

"This investment will further accelerate the pace of our product development. Our aim is to meet or exceed best-of-breed capabilities in every market we serve, while providing game-changing innovations that help our businesses boost their bottom lines, simplify their lives and better focus on the health and wellness of their customers," said Stollmeyer.

The funds will also be used to expand the company's global reach. "We're planning to increase our sales, marketing and support capabilities around the world, with expanded presence in our New York, UK, EU and Australian offices," said Robert Murphy, partner and Chief Sales & Marketing Officer for MINDBODY. "We fully expect these strategic improvements will help us grow another 60 percent in the coming year."

About MINDBODY

MINDBODY delivers innovative business management software to the wellness industry, including fitness, yoga, Pilates, salons, spas and martial arts businesses. In 2009, the company was ranked 370th on Inc. Magazine's 500 fastest growing companies and 21st in the software industry. It was recently named among the most innovative 100 technology companies in North America by Red Herring 100 and by Outside Magazine as among The 50 Best Places to Work. In 2010 MINDBODY expanded its offerings to include mobile applications and a powerful new web technology called MINDBODY Finder that enables consumers to find, book and pay for wellness-oriented classes and appointments through their mobile devices, high-traffic media sites and http://www.mindbodyfinder.com. The company serves nearly 10,000 clients in 62 countries and maintains offices in San Luis Obispo, CA, New York and the United Kingdom. http://www.mindbodyonline.com

About Bessemer Venture Partners

Bessemer Venture Partners is a global investment group with offices in Silicon Valley, Boston, New York, Mumbai and Tel Aviv. One of the oldest venture-capital practices in the United States, BVP has partnered as an active, hands-on investor in Ciena, LinkedIn, Postini, Skype, Staples, VeriSign, W.R. Grace and Yelp. More than 100 Bessemer-funded companies have gone public on exchanges in Canada, India, London and the United States. http://www.bvp.com

About Catalyst Investors

Catalyst Investors is a growth private equity fund founded in 2000 that employs a rigorous top-down research focus to identify investment opportunities in companies and industries that will exhibit strong revenue and margin growth. The firm works in true partnership with talented management teams to build long-term value. Catalyst has consistently achieved superior returns with disciplined risk management and a commitment to investor transparency. http://www.catalystinvestors.com

This press release was issued through eReleases(R).  For more information, visit eReleases Press Release Distribution at http://www.ereleases.com.

SOURCE MINDBODY, Inc.

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Today, The Samuel Zell & Robert H. Lurie Institute for Entrepreneurial Studies at the University of Michigan Ross School of Business announced that Michael Godwin and Jason Townsend, MBAs '10, have formed Resonant Venture Partners, an emerging venture capital firm that makes seed stage investments in regional firms across a variety of technology sectors. Resonant is the first venture capital firm to be established by alumni who previously played critical roles in investment decisions for the Wolverine Venture Fund. The firm, which will focus on investments in the IT, life sciences, advanced manufacturing, alternative energy and defense sectors, closed its first deal late last week.

Headquartered in Ann Arbor, Resonant began subscribing its first fund in July 2010 despite the challenging economic climate, and will continue fundraising efforts while simultaneously sourcing new portfolio companies throughout the next 18 months. The initial investments in the fund were raised from both in-state investors, as well as those from out-of-state, underscoring the investment potential of Michigan and its status as an emerging hub for technology innovation.

"Resonant is committed to keeping promising companies Michigan," said Godwin. "With the entrepreneurial talents and technology innovation coming out of the University, coupled with investors, like us, eager to invest locally, there is tremendous opportunity for companies to succeed in Ann Arbor and its surrounding communities."

Zell Lurie Institute Programs and Support Prove Critical

After successful technology and business development careers in Silicon Valley, Godwin and Townsend attended the Ross School of Business in order to pursue their entrepreneurial passions and hone their venture capital skills. While there, they served together as managing directors of the University's $5.5 million Wolverine Venture Fund, the country's first student led venture fund that has served as a model for other university programs over the years. Both were deeply involved in rigorous due diligence in support of the Fund's investment decisions.  During their time as fund leaders, the Fund made seven investments and benefited from two exits, most notably the acquisition of HandyLab by Becton Dickinson.

Godwin and Townsend credit the hands-on experience and mentorship they received at the Institute for much of Resonant's success, as well as citing the important relationships they established as a result of  the Institute's network of entrepreneurs and investors both locally and nationally. Resonant's advisory board is comprised of several notable members of the local investment community, including Tom Kinnear, executive director of the Institute and seasoned angel investor, as well as  Mary Campbell, managing director at EDF Ventures, and Donald Walker, managing director of Arbor Partners

"It takes an immense amount of passion and effort to start a venture capital firm, especially in today's environment" said Kinnear, Executive Director of the Samuel Zell & Robert H. Lurie Institute for Entrepreneurial Studies, Wolverine Venture Fund Director and member of Resonant's advisory board.  "Based on the experiences and successes both Michael and Jason faced on the Wolverine Venture Fund, I am very confident in their ability not only to make Resonant thrive, but also to make significant contributions to Michigan's flourishing startup community."

Resonant Closes First Deal with Investment in Scio Security

Resonant was part of a $1 million investment in Scio Security, a computer security startup led by serial entrepreneur Dug Song and University of Michigan PhD candidate Jon Oberheide. Palo Alto, Calif.-based True Ventures led the round, which also included two strategic angel investors with extensive security expertise. As part of Resonant's involvement, the firm will be actively involved in building the management team and technology commercialization, and Scio will maintain its Ann Arbor headquarters.

"We are looking to revolutionize the security market and provide strong authentication and fraud prevention by leveraging users' mobile devices," said Dug Song, co-founder, Scio. "The investment from True and Resonant will provide us the necessary capital to launch our flagship product which protects the security of online transactions and remote access.  We are thrilled to have Resonant on board with us as we grow."

About the Samuel Zell & Robert H. Lurie Institute for Entrepreneurial Studies / Center for Venture Capital & Private Equity Finance at the Ross School of Business at the University of Michigan

The Institute and its Center for Venture Capital and Private Equity Finance bring together a potent mix of knowledge, experience and opportunities from the front lines of entrepreneurship and alternative investments. The student learning experience is further enhanced through internships, entrepreneurial clubs and organization and events that serve to provide viable networks and engage the business community. The School's two student-led investment funds, with over $5M in management, immerse students in the business assessment and investment process. Members of the Advisory Board include Samuel Zell, Chairman of Equity Group Investments; Michael Hallman, former COO of Microsoft Corporation; and Eugene Applebaum, Founder of Arbor Drugs, Inc.  For more information, visit the Institute at www.zli.bus.umich.edu.

SOURCE The Zell Lurie Institute

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Swift Biosciences Inc., a Michigan-based life sciences company, today announced the recent completion of a $3 million Series A financing led by the venture firm DFJ Mercury.  DFJ Mercury was joined in the Series A by several Michigan-based individual investors who also helped launch the Company with seed funding in January 2010.  Daniel Watkins of DFJ Mercury will join the company's Board of Directors.

"Swift Biosciences' genetic analysis technology has the potential to significantly advance molecular diagnostics and biomedical research," said Daniel Watkins, a managing director at DFJ Mercury.  "The Swift team has been able to achieve excellent technical performance in testing to date.  Working with entrepreneurs to commercialize this type of break-through innovation is a core element of our approach at DFJ Mercury."

Swift Biosciences is developing molecular biology reagents for research and diagnostic applications. Swift's products will provide customers with powerful new ways to examine disease-related genes.  The Company also aims to help users analyze their samples faster, at higher volume, and at a lower price-per-sample.  Swift's products are designed to be compatible with customers' current instrumentation.

"This funding will help us accelerate product development and customer testing," said David Olson, PhD, Chief Executive Officer of Swift Biosciences.  "DFJ Mercury is an ideal partner for us as we grow from the idea stage into commercial launch.  We have been fortunate to have the early support of both local and national investors."

Dr. Olson added "We have also benefited from the entrepreneurial community in the area, including our local business accelerator, SPARK, who has helped us recruit an outstanding team from across the country.  The abundance of biomedical activity locally makes Ann Arbor a great place to launch a life science start-up."

For more information about Swift Biosciences visit www.SwiftBioSci.com

About DFJ Mercury

DFJ Mercury is a seed and early-stage venture capital firm. Headquartered in Houston, Texas, DFJ Mercury invests in compelling and novel start-up opportunities in information technology, advanced materials and bioscience. DFJ Mercury seeks to partner with extraordinary entrepreneurs to build globally competitive businesses, focusing on investments in the midcontinent. Since inception in 2005, DFJ Mercury has been one of the most active start-up and seed-stage investors in the midcontinent, has consistently rated as a top VC firm for entrepreneurs by Entrepreneur Magazine and TheFunded.com, and has become a "go-to" venture firm for entrepreneurs at the earliest stages of idea generation, company formation, and market execution. DFJ Mercury is a partner in the DFJ Global Network of venture funds.  For more information, visit www.dfjmercury.com.

SOURCE Ann Arbor SPARK

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A surge in venture capital, mergers and acquisition activity, and strategic deal-making has made the summer of 2010 the most active season for Pittsburgh's technology startups in recent years.  2010 as a whole is shaping up to be one of the best years for investment and acquisitions for Pittsburgh's startups in the post-bubble era.  Today's announcement of Biogen Idec's $345 million strategic investment in Southside-based Knopp Neurosciences is the latest addition to the list of Pittsburgh deals announced since June, with more news expected in the coming weeks.

 This summer's deal activity in the Pittsburgh region includes:

• June 17:  Precision Therapeutics* closed on $35 million, in a deal led by Bain Capital Ventures
• June 30:  ModCloth* closed on $19.8 million from Accel Ventures, First Round Capital and Floodgate
• August 2: Hybrid Learning Systems acquired the games developed by ImpactGames*
• August 4: LinkedIn made its first acquisition ever, acquiring Pittsburgh-based mSpoke*
• August 6: Avere Systems closed on $17 million from Tenaya Capital, Menlo Ventures and Norwest Partners
• August 10: Ciespace* closed on $4 million, led by ARCH Venture Partners
• August 18: Knopp Neurosciences* signed a $345 million strategic deal with Biogen Idec

*connotes Innovation Works portfolio company

"We are thrilled to see our investment portfolio and affiliated companies reach these significant milestones," said Rich Lunak, president & CEO of Innovation Works.  "Growth among early-stage companies has a tremendous ripple effect throughout the community, bringing in outside capital, job growth, and significant technological breakthroughs that can improve society."

Innovation Works is the most active investor in seed stage technology companies in the Pittsburgh region and one of the most active seed investors in the nation.  Since the beginning of the organization's seed fund in late-1999, Innovation Works has invested $45 million in 134 companies.  The portfolio companies have gone on to raise more than a billion dollars in follow-on funding.

SOURCE Innovation Works, Inc.

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