2. Content
What is a Corporate Venture? 3
Why create a Corporate Venture? 4
Identifying opportunities 9
Setting up the framework 5
Ensuring success 18
About Harrison Hayes 20
3. 3
A corporate venture fund is a business unit within an organization that focuses on investment in
outside revenue generating business opportunities. These opportunities may be within or outside of
the organization’s core business.
The Corporate Venture Fund seeks out early to late stage opportunities for financial investment.
These investments are meant to provide incremental revenue to the investor similar to a traditional
Venture Capital Fund.
To date, companies such as Eli Lilly, Merck, Covidien, Medtronic, GE, and Samsung have all
established successful Corporate Venture Funds.
What is a Corporate Venture?
Corporate
Venture Group
Corporation Venture
External Community
Access Point
Pratices
Measurement
Alighment
Brand
Partners
Customers
Expertise
Capital
Sales
Distribution
Business Models
Intellectural Property
Expertise
Products/Services
Partners
VCs
Law Firms
Search Firms
Corporate VCs
Investment Banks
4. 4
There are numerous reasons why companies should seek to establish a Corporate Venture Fund:
Why Create a Corporate Venture?
Why seek to establish a
Corporate Venture Fund
Provides an open model for innovation
Assists in the scaling up of marketing and distribution
Faster than traditional R&D
Provides flexibility to innovation
Companies with a corporate venturing arm out-perform
those who do not
5. 5
Setting up a Corporate Venture
There are two primary
reasons Corporate
Ventures fail:
There are five attributes
that every successful
Corporate Venture must
have:
The Corporate Venture was not appropriately
established.
The Corporate Venture invests in the wrong
opportunities.
A Visionary Senior Executive
Committed Resources from the Organization
Human Capital
Rational Investment Charter
Expeditious Transfer Process
6. 6
Setting up a Corporate Venture
The experts at Harrison Hayes will work with the interested organization in each of the areas mentioned
above in order to ensure success.
Visionary Senior Executive
It is critically important that an organization’s CEO is a visionary and open to investment in start-
up opportunities. The Harrison Hayes team will meet with the CEO as necessary in order to set
expectations for the new Corporate Venture.
Committed Resources from the Organization
In establishing a successful Corporate Venture, there must be a set dollar amount that the organization
is willing to invest in the corporate venture fund. Harrison Hayes will work with the organization on
determining what the appropriate sum should be on an annual basis.
Success
Visionary
Senior Executive
Committed ResourcesGoverning Mechanism
Human CapitalProject Transfer Process
7. 7
Setting up a Corporate Venture
Human Capital
Every successful Corporate Venture must have the appropriate mix of talent. Harrison Hayes will
identify the most appropriate individuals within and outside the organization that will serve as the
Corporate Venture Fund’s management team. The management committee may include individuals
from:
Finance
R&D
And other business
units as appropriate
MarketingInnovation
Business Intelligence
The Management
Committee
8. 8
Setting up a Corporate Venture
Investment Charter
Once the management committee is in place, Harrison Hayes will work with the management team to
develop the investment charter, which will be approved by the organizations Senior Leadership Team.
The investment charter will seek to define:
Size of the Fund
Areas of Investment
Exit strategies
Appetite for innovation
Role of Harrison Hayes in the
Corporate Venture Fund
Length of Fund
Role of the Fund and fund’s
investment with other business
units
Therapeutic condition
Stage of development
Size of the company to
be invested in
Additional criteria as
noted by the senior
leadership team
Investment Charter
9. 9
Identifying the Opportunities
Once the Corporate Venture fund is successfully established, Harrison Hayes will work with the
Corporate Venture Management team on identifying opportunities that meet the investment charter.
Harrison Hayes will utilize a vast array of tools to identify analyze opportunities:
Technology Scouting
Transforium™
Key Innovation Leaders
PIPV™ Analysis
Strataject Report
10. 10
Provisioning of Technology
Intelligence to Facilitate the
Technology Management
Building and Using a Network of
Experts for Competitive Advantage
Scouts Facilitate the Sourcing
of Technology
Acquisition, Development,
Storage, Usage and Selling of
Technological Knowledge
Identificaiton, Assessment
and Usage of Information on
Technological Development
Scouts Identify and Assess
New Technology
Technology
Intelligence
Technology
Scouting
Technology
Management
Transforium Scouting Tool
Technology Sourcing includes the identification of technology developments and the facilitation of the
sourcing of technology.
Technology Scouting Process consists of five Technology Intelligence steps plus the step of
Technology Sourcing.
Definition of search areas
Selection of Information
sources and methods to
employ
Collection of data
Filtering, analyzing,
interpreting of data
Evaluation and decision
making
Usage of information and
sourcing of technologies
collection of data
11. 11
Technology Sourcing supports the external sourcing of technology and the product specification and
development.
Fuzzy-front-end of Innovation
External Technology Sourcing
Product specification and
development
Storage, Internal generation
and usage of technological
knowledge
Prototype validation and
testing
Technology selling or
licensing
Market Launch
Innovation Management
Technology Management
12. 12
Transforium™
The Transforium™ database is unique and proprietary to the Harrison Hayes. Transforium™ houses
over three million (3,000,000) early stage compounds, technologies, and assets across a multitude of
indications. Indications of assets in Transforium™ include:
Key Innovation Leaders
In order to best assess future value and build an appropriate, futuristic business case for the optioned
assets, we will utilize a select group of Key Innovation Leaders (KILs). Key Innovation Leaders (KILs)
are recognized as the foremost experts and “futurists” in their respective fields. Our proprietary
panel of cross-disciplinary KILs look at the future market trends ten (10) to twenty (years) from the
present day. Because KILs are on the cutting edge of trends, they function as a valuable resource
for understanding the future of the business, new business models, products and platforms including
policy, regulatory, technology, customer conversion, technology adoption, and risk aversion, and for
understanding real-world market evaluation and assessment.
Of the 3,000,000 opportunities within Transforium™, roughly twenty-five percent (25%) are not in
the public domain and are unique to Harrison Hayes. This offers our partners first rights to these
potentially lucrative opportunities.
Indications
of assets in
Transforium™
Cancer; specific focus
on pancreatic, ovarian,
glioblastoma, liver,
lymphoma and melanoma
Huntington’s Disease
Cystic Fibrosis
Hemophilia
Asperger Syndrome
ALS
and many more
Diabete (type 1 and type 2)
Arthritis
Pulmonary conditions such as
COPD and Pulmonary Fibrosis
Alzheimer’s
Chonic pain
13. 13
Researchers and Academic
Researchers
Private Equity Group
Executives
Regulatory and
Reimbursement Experts
Serial Entrepreneurs
Technology Transfer Center
Executives
Industry and Market Sea
Changers
Key Innovation Leaders - Examples of Key Innovation Leaders
14. 14
PIPV Tool
PIPV™ is a proprietary analysis that serves as a method of maximizing value of identified intellectual
property. The PIPV™ provides a comprehensive assessment, quantifying the value of a technology
or compound and identifying the requirements necessary for commercial success.
The PIPV™ analysis serves to:
There are five (5) components of the PIPV™ analysis:
Provide important market
and competitive analysis
Estimate the likelihood of
FDA approval
Assess patents and their
legal defensibility
Perform valuations on
individual compounds or
entire pipelines
Commercial Analysis
Scientific Analysis
Legal Analysis
Financial Analysis
Feasibility Analysis
15. 15
PIPV Tool - Commercial Analysis
The commercial analysis focuses on identifying major hurdles to commercial success. This research
is designed to ensure that the identified asset’s value will be maximized to the fund and potential
acquirers. The commercial analysis examines:
PIPV Tool - Legal Analysis
The purpose of legal analysis is to evaluate the overall patent and legal viability of the assets. We will:
PIPV Tool - Scientific Analysis
The scientific analysis provides our own evaluation of the optioned asset. This assessment includes
items such as:
Commercial
Analysis
Legal
Analysis
Scientific
Analysis
Key research and market data
Existing and potential competitors
Market comparable transactions-including financings,
collaborations and alliances
Investigate all relevant patent initiatives
Assess legal defensibility
Determine overall strength and scope of intellectual property
rights
The method of action
The target compared to the current standard of care
The target compared to other treatments under development
Identify key competitive strengths
16. 16
PIPV Tool - Feasibility Analysis
The feasibility analysis is our opinion on the feasibility of the compound to reach commercialization
based on:
PIPV Tool - Financial Analysis
Here, we utilize our financial acumen to accurately assess the strike price of potential assets and
value of optioned assets. To do this, we:
Feasibility
Analysis
Financial
Analysis
Experience and track record of management team
Development progress and timelines
Competitive and substitute analysis
Potential exit strategies
Identify market comparables
Perform quantitative analysis
Assist in development of pro forma financial statements
Calculate “burn rate” and other financial projections
Develop schedules and timelines for product development
17. 17
Strataject™ Report
The Strataject™ Report serves as our complete strategic analysis and recommendation regarding
identified and optioned assets. The report includes our rationale based on our PIPV™ Analysis, Key
Innovation Leader assessment, and intelligence gathered in our Technology Sourcing process.
The Strataject™ Report will clearly define our findings and recommendations, as well as a thorough
review of the asset(s). Further, the Strataject™ Report provides a forward-looking business case for
each opportunity. The business case will breakdown the opportunity for each asset in time spheres:
evolutionary, revolutionary, and disruptive.
Evolutionary time period is the potential of the asset over the next calendar year. Revolutionary is the
potential from two to seven (2 -7) years in the future. Finally, disruptive is the asset’s potential seven
years or greater into the future. It is the disruptive time period where our team of Key Innovation
Leaders and our team of experts provide tailored, forward-looking expertise.
18. 18
Our deliberate and strategy focused vetting process will ensure success of the Corporate Venture
fund through the evolutionary, revolutionary, and disruptive time periods.
Our vetting process ensures that only the most promising compounds will be invested in by the fund
and see positive returns.
Joint Business Development
R&D services
Licensing out
DivestmentsSpin out
Licensing in
Venturing
Spin in
Acquisitions
Revolutionary
Disruptive
Evolutionary
Ensuring Success
19. 19
Option executed from
Johns Hopkins for the rights
to CDX-1135. Licensed
to Avant Therapeutics
resulting in a net fund gain of
$2.2221M
Option executed from DOV
Pharmaceuticals for the
rights to Bicifadine. Option
sold to XTL Bio resulting in a
net fund gain of $655,000.
Option executed from
Nauch TekhStroy Plus
(Pharmaceuticals) for the
rights to AT001 and AT008.
Sold/Licensed to Affitech
resulting in a net fund gain of
$285,000.
Option executed from Ncomed
for the rights to PRE-4 Inhibitor
Daxas. Sold/Licensed to Forest
Labs resulting in a net fund
gain of $1.4M
Option executed from Kadmus
for the rights to FAAH Inhibitor
technology. Sold/Licensed to
Organon resulting in a net fund
gain of $1.1M
Option executed from ViroMed
for the rights to TAG-72.
Option sold through a licensing
agreement to Enlyton resulting
in a net fund gain of $333,000.
Option executed from Yale
University for the rights to Dela-
foxicin. Sold option to Rib-X
Pharmaceuticals for a net fund
gain of $875,000 plus milestone
and royalty payments.
Option executed from Addrenex
for the rights to ADX-NO5. Sold
option to SK Life Sciences for
a net fund gain of $915,000
plus milestone and royalty
payments.
Option executed from
Biosintetica for the rights to its
entire portfolio. Option sold to
Ache Laboratorios resulting in a
net fund gain of $2.4M.
Option executed from Shimoda
for the rights to Dyloject. Sold
to Abraxis resulting in a net
fund gain of $700K.
Option executed from
Angiochem for the rights to
GRN1006. Option sold to
Geron resulting in a net fund
gain of $3.6M.
Option executed from
Panpharma group for the rights
to selected portfolio products.
Sold/Licensed to Celesio
resulting in a net fund gain
$585,000.
Enlyton
Ensuring Success
20. 20
Harrison Hayes is a unique, life science-focused, strategic research and advisory services company,
developed out of a global brand consultancy. Our strength lies in a network of selective clientele
and an aggressive research team committed to staying abreast of the latest advances, trends and
evolving corporate strategies. Actively maintaining relationships with an international network of
leading business development, R&D, licensing professionals, technology transfer centers, and
venture capital firms provides Harrison Hayes with the resources necessary to uncover the most
promising and thorough deliverables for our clients.
About Harrison Hayes
Bill Smith
CEO & Founder
75 Ninth Avenue
New York, New York 10011
Email: william.smith@brandacumenstudios.com
Phone: 212-299-8454
Mr. Smith is the CEO and Founder of Brand Acumen, LLC. Prior to Brand Acumen, Mr. Smith was
the Founder, CEO, and Chairman of Addison Whitney, the world’s third largest brand consultancy,
which has created over 1,000 brand identities and positioning strategies for companies across
the globe. Mr. Smith sold Addison Whitney in 1995 to Interpublic Group (NYSE:IPG) and led
their Healthcare Acquisition Team for three years which was responsible for over $3 Billion in
transactions. He reacquired Addison Whitney in 1998.
After quadrupling revenues from 1998 through 2006, Mr. Smith sold Addison Whitney to inVentiv
Health in June, 2007. Before founding Addison Whitney, Mr. Smith was founder and CEO of an
executive search firm that he sold to a publicly traded company in 1989. The firm employed 130
professionals with offices in Charlotte, Denver, and New Jersey. Mr. Smith received his Bachelors
of Arts degree from Berklee College and his Master of Arts from Colorado State University.
21. Contact Us
Bill Smith - Chief Executive Officer
Address:
Website:
Email: william.smith@brandacumenstudios.com
Phone: 704-906-3402
Chelsea Market
75 Ninth Avenue, Floor 2R
New York, New York 10011
www.harrisonhayes.com
