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Chrysalis Ventures
2013 1st Quarter Newsletter www.chrysalisventures.com

Portfolio Company Transactions


acquired by


December 2012

New York-based private equity firm Snow Phipps purchased a majority stake in HCTec LLC, a clinical IT consulting provider to hospitals and healthcare systems and a high-growth subsidiary of Chrysalis portfolio company HCCA.


Open Kernal Labs

acquired by

General Dynamics

September 2012

General Dynamics (NYSE: GD) acquired Open Kernel Labs, a provider of mobile and automotive virtualization technologies. The deal positions General Dynamics to deliver defense-grade secure mobile devices to government, military and enterprise customers using Android and other operating systems.



acquired by

Health Information Designs

February 2013

Health Information Designs (HID), a portfolio company of BV Investment Partners, acquired Sanovia in December. Sanovia will now operate as Sanovia Health Information Designs, LLC. The combined company now offers healthcare information technology and data analytics solutions to state Medicaid agencies and commercial insurers to reduce healthcare costs and optimize patient care.


Portfolio Company Highlights

  • Last fall, Connecture completed a $20 million recapitalization round of financing provided by Great Point Partners (Connecture Raises $20M Recap Round).  In January, the newly recapitalized company acquired DRX, a provider of healthcare IT services to the federal government, complementing Connecture's solutions for automating private and state exchange health plan sales with DRX's strong presence in Medicare plan sales automation.
  • StraighterLine's new Professor Direct service lets professors set prices, have more control over their online courses.
  • Time Warner Cable picks Digitalsmiths to power sophisticated content searches. (Digitalsmiths also has partnerships with Sony's Gracenote, FOX Sports Mobile, and Tribune Media Services)
  • MyHealthDIRECT welcomes new CEO Tom Cox, most recently COO at Healthways, and new board member Jacque Sokolov
  • HealthTeacher Creates 'Awesome Upstander' – the first anti-bullying mobile game for kids and part of HealthTeacher's suite of interactive youth health products
  • Cloud-based security company Cybera has signed deals with Shell and ExxonMobil to standardize on Cybera security services for thousands of gas stations in the U.S.

Wright Steenrod Promoted to Partner

At the most recent Limited Partners meeting, Chrysalis announced that Wright Steenrod, an eleven-year veteran with the firm, has been promoted to Partner. As Partner, Wright will continue to lead the firm's technology practice and serve on its investment committee.

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Wright Steenrod
David Jones

Maybe the Elephants Really Can Dance!

When the 900-page-plus Affordable Care Act (ACA) was enacted in March 2010, my first reaction was simple relief that the exhausting, incoherent, multi-year political spectacle had finally ended. My second was that implementation of this committee-bred camel, representing the largest health system overhaul since the 1960s, would be a fiasco. As wave after wave of incomplete draft regulations came out, about ACOs, medical loss ratio provisions, state exchanges and so on, I concluded that reform - whatever its substantive merits or defects - would...

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Chrysalis Upgrades Blog, Expands 'Office Hours'

Chrysalis has launched several initiatives to increase engagement with our network and find and cultivate great entrepreneurs. Last fall, the firm started increasing its Twitter presence, beginning with live-tweeting the portfolio company presentations at our annual Limited Partners meeting. Since then, we have materially increased the amount of value-added content published on our blog at www.chrysalisventures.com and tweeted through @ChrysalisVC. We invite you to visit us there or on our Facebook page to continue the conversation.

We also invite you to join us for 'Office Hours' in our offices if you are in the neighborhood. We don't expect anyone to come in with a formal pitch - but we welcome people to come bounce ideas off of us as they develop their concepts. Sign up or contact us at www.chrysalisventures.com/resources.

Recent blog posts at the Chrysalis web site include:

We are always adding new content to our blog - drop by to read the latest!

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