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2013 1st Quarter Newsletter

Portfolio Company Transactions

December 2012

acquired by

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.
More...

September 2012

acquired by

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.
More...

February 2013

acquired by

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.
More...

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.
Read More
Wright Steenrod

Maybe the Elephants Really Can Dance!

by David A. Jones, Jr.
Originally published in Healthcare Musings (www.gibson-consultants.com)

David Jones, Jr.

When the 900-page-plus Affordable Care Act (ACA) was enacted in March
2010, my first reaction was simple relief that the exhausting, incoherent, multiyear 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...
Read More

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 atwww.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:

Chrysalis Ventures Promotes Derek Fricke to Senior Associate Chrysalis

January 25, 2013

A Digi-Health Explosion
January 24, 2013

IPO Window Closed, M&A Door Wide Open in Health IT

January 21, 2013

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

2010 Chrysalis Ventures - 101 So