1. Biotech Start Up Life Cycle
Founders Growth Investors Large Pharma
• Technical Founders • Venture Institutions Acquired
• Universities/Academia • Corporate VCs
• Large Pharma • Hedge Funds
$ Acquisition
Intellectual Property
Growth Capital
Biotech Start Up Maturing Biotech
Capital
Start Up Capital Expertise
Contacts
Public Capital
Seed Investors Venture Investors Public Investors
Independent Public
• Family & Friends • Venture Institutions • Mutual Funds Biotech
• Angel Investors • Corporate VCs • Hedge Funds
• Government Grants
CONFIDENTIAL 1

2. Valuation/Dilution Cascade
+  Start Up
Founder Seed Investors Value = $3 Million
IP/Idea Seed Capital Founder: 33%
Value = $1 Million $2 Million Seed Investors: 67%
Capital spent to advance drug candidates
Start Up
Value = $24 Million
Start Up +  Founder: 13%
Seed Investors: 25%
Value = $9 Million Venture Investors
Venture Investors:
Founder: 33% Series A Capital
62%
Seed Investors: 67% $15 Million
Founders Stake has been diluted 100% to 13% in two rounds
BUT Value has increased $1 Million to >$3 Million
CONFIDENTIAL 2

3. Assets and Needs of Biotech Companies by
Stage
Concept/
Infancy Adolescence Maturity
Gestation
• Idea • Company founded • Growing company • POC data
• Some relevant • Idea advancing • Idea/intellectual • Growing pipeline
technical/manageme • Clear development/ property progressing • Lead candidates in
nt expertise
Assets
implementation plan • Clinical data Phase 2/3
• Seed capital in place • Supportive VC • Corporate
investor base organization with
strong management
• Capital • Capital to fund • Capital to fund later • Even more capital
• Structure advancing programs stage/larger trials • Liquidity for founders
• Management • Governance • Proof of concept data and VC investors
Needs
• Entrepreneurial • Additional expertise
expertise
• Contacts
• Structure
CONFIDENTIAL 3