Jordan Table of Contents Link to Book h2p://

Transcription

1 Book

2 Table of Contents Link to Book h2p://

3 Aligning Objec,ves & Concerns Customer = Investor = Acquirer 3

4 A poorly planned and ill- provisioned journey! probability of failure 4

5 Naviga,onal instruments ascertain posi,on & direc,on to a des,na,on 5

6 Waypoints are planned milestones to re- provision ($) & capture value 6

7 Planning & provisioning are aided through the use of tools 7

8 ObjecNve: Provide Tools for Accurate ValuaNon & Strong Exit 1 Find BENCHMARK - Evaluate by comparison 2 To uncover the STANDARD - A measure, norm or model in comparanve evaluanon 3 Through use of TOOLS 4 To obtain KNOWLEDGE - An implement to carry out a parncular funcnon - Acquired understanding through facts, informanon or experience 8

9 ObjecNve: Provide Tools for Accurate ValuaNon & Strong Exit 1 Find BENCHMARK - Evaluate by comparison 2 To uncover the STANDARD - A measure, norm or model in comparanve evaluanon 3 Through use of TOOLS 4 To obtain KNOWLEDGE - An implement to carry out a parncular funcnon - Acquired understanding through facts, informanon or experience 9

10 ObjecNve: Provide Tools for Accurate ValuaNon & Strong Exit 1 Find BENCHMARK - Evaluate by comparison 2 To uncover the STANDARD - A measure, norm or model in comparanve evaluanon 3 Through use of TOOLS 4 To obtain KNOWLEDGE - An implement to carry out a parncular funcnon - Acquired understanding through facts, informanon or experience 10

11 ObjecNve: Provide Tools for Accurate ValuaNon & Strong Exit 1 Find BENCHMARK - Evaluate by comparison 2 To uncover the STANDARD - A measure, norm or model in comparanve evaluanon 3 Through use of TOOLS 4 To obtain KNOWLEDGE - An implement to carry out a parncular funcnon - Acquired understanding through facts, informanon or experience 11

12 ObjecNve: Provide Tools for Accurate ValuaNon & Strong Exit 1 Find BENCHMARK - Evaluate by comparison 2 To uncover the STANDARD - A measure, norm or model in comparanve evaluanon 3 Through use of TOOLS 4 To obtain KNOWLEDGE - An implement to carry out a parncular funcnon - Acquired understanding through facts, informanon or experience 12

13 Uncover the standards by addressing consntuency objecnves & concerns Customer Investor Acquirer Objectives! Outcomes)=))"Access)+))"Quality)+)#Cost)! IRR,)ROI,)Multiples! Price/Earning)Ratio! Placement)amount! Revenue/margin)accretion! Market)share Concerns! Produce)multiByear,)accretive)revenue)stream! Portfolio)balance)&)timing! Aligned)business)models ))B)Clinical)trial)participation! Validation)of)business)model! Defend/expand)existing)categories ))B)New)procedures)(aka)robotics)! Validation)of)product)category! Enter)new)categories/markets! Attain)topBtier)operating)margins! Venture)capital)requirements! Formulary)competitiveness ))B)MultiByear)agreements)(formulary)! Inability)to)participate)in)later)rounds! Maintain/improve)financial)ratios ))B)Reimbursement)category)PPV! Implications)of)public)financing)! Salesforce)leverage) ))B)Predictable)horizontal/longitudinal)costs ))B)Sustainability)of)NewCo! Capture)regional)marketBshare ))B)Technology)guarantee ))B)Clinical)trial)access 13

14 Uncover the standards by addressing consntuency objecnves & concerns Customer Investor Acquirer Objectives! Outcomes)=))"Access)+))"Quality)+)#Cost)! IRR,)ROI,)Multiples! Price/Earning)Ratio! Placement)amount! Revenue/margin)accretion! Market)share Concerns! Produce)multiByear,)accretive)revenue)stream! Portfolio)balance)&)timing! Aligned)business)models ))B)Clinical)trial)participation! Validation)of)business)model! Defend/expand)existing)categories ))B)New)procedures)(aka)robotics)! Validation)of)product)category! Enter)new)categories/markets! Attain)topBtier)operating)margins! Venture)capital)requirements! Formulary)competitiveness ))B)MultiByear)agreements)(formulary)! Inability)to)participate)in)later)rounds! Maintain/improve)financial)ratios ))B)Reimbursement)category)PPV! Implications)of)public)financing)! Salesforce)leverage) ))B)Predictable)horizontal/longitudinal)costs ))B)Sustainability)of)NewCo! Capture)regional)marketBshare ))B)Technology)guarantee ))B)Clinical)trial)access 14

15 Uncover the standards by addressing consntuency objecnves & concerns Customer Investor Acquirer Objectives! Outcomes)=))"Access)+))"Quality)+)#Cost)! IRR,)ROI,)Multiples! Price/Earning)Ratio! Placement)amount! Revenue/margin)accretion! Market)share Concerns! Produce)multiByear,)accretive)revenue)stream! Portfolio)balance)&)timing! Aligned)business)models ))B)Clinical)trial)participation! Validation)of)business)model! Defend/expand)existing)categories ))B)New)procedures)(aka)robotics)! Validation)of)product)category! Enter)new)categories/markets! Attain)topBtier)operating)margins! Venture)capital)requirements! Formulary)competitiveness ))B)MultiByear)agreements)(formulary)! Inability)to)participate)in)later)rounds! Maintain/improve)financial)ratios ))B)Reimbursement)category)PPV! Implications)of)public)financing)! Salesforce)leverage) ))B)Predictable)horizontal/longitudinal)costs ))B)Sustainability)of)NewCo! Capture)regional)marketBshare ))B)Technology)guarantee ))B)Clinical)trial)access 15

16 Uncover the standards by addressing consntuency objecnves & concerns Customer Investor Acquirer Objectives! Outcomes)=))"Access)+))"Quality)+)#Cost)! IRR,)ROI,)Multiples! Price/Earning)Ratio! Placement)amount! Revenue/margin)accretion! Market)share Concerns! Produce)multiByear,)accretive)revenue)stream! Portfolio)balance)&)timing! Aligned)business)models ))B)Clinical)trial)participation! Validation)of)business)model! Defend/expand)existing)categories ))B)New)procedures)(aka)robotics)! Validation)of)product)category! Enter)new)categories/markets! Attain)topBtier)operating)margins! Venture)capital)requirements! Formulary)competitiveness ))B)MultiByear)agreements)(formulary)! Inability)to)participate)in)later)rounds! Maintain/improve)financial)ratios ))B)Reimbursement)category)PPV! Implications)of)public)financing)! Salesforce)leverage) ))B)Predictable)horizontal/longitudinal)costs ))B)Sustainability)of)NewCo! Capture)regional)marketBshare ))B)Technology)guarantee ))B)Clinical)trial)access 16

17 The healthcare payer/provider Outcomes)=))!Access)+))!Quality)+)"Cost) ObjecNves! Produce(multi-year,(accretive(revenue(stream ((-(Clinical(trial(participation ((-(New(procedures((aka(robotics)! Attain(top-tier(operating(margins ((-(Multi-year(agreements((formulary) ((-(Reimbursement(category(PPV ((-(Predictable(horizontal/longitudial(costs ((-(Sustainability(of(NewCo! Capture(regional(market-share ((-(Technology(guarantee ((-(Clinical(trial(access Concerns 17

18 The healthcare payer/provider Outcomes)=))!Access)+))!Quality)+)"Cost) ObjecNves! Produce(multi-year,(accretive(revenue(stream ((-(Clinical(trial(participation ((-(New(procedures((aka(robotics)! Attain(top-tier(operating(margins ((-(Multi-year(agreements((formulary) ((-(Reimbursement(category(PPV ((-(Predictable(horizontal/longitudial(costs ((-(Sustainability(of(NewCo! Capture(regional(market-share ((-(Technology(guarantee ((-(Clinical(trial(access Concerns 18

19 The healthcare payer/provider Outcomes)=))!Access)+))!Quality)+)"Cost) ObjecNves! Produce(multi-year,(accretive(revenue(stream ((-(Clinical(trial(participation ((-(New(procedures((aka(robotics)! Attain(top-tier(operating(margins ((-(Multi-year(agreements((formulary) ((-(Reimbursement(category(PPV ((-(Predictable(horizontal/longitudial(costs ((-(Sustainability(of(NewCo! Capture(regional(market-share ((-(Technology(guarantee ((-(Clinical(trial(access Concerns 19

20 The healthcare payer/provider Outcomes)=))!Access)+))!Quality)+)"Cost) ObjecNves! Produce(multi-year,(accretive(revenue(stream ((-(Clinical(trial(participation ((-(New(procedures((aka(robotics)! Attain(top-tier(operating(margins ((-(Multi-year(agreements((formulary) ((-(Reimbursement(category(PPV ((-(Predictable(horizontal/longitudial(costs ((-(Sustainability(of(NewCo! Capture(regional(market-share ((-(Technology(guarantee ((-(Clinical(trial(access Concerns 20

21 The healthcare payer/provider Outcomes)=))!Access)+))!Quality)+)"Cost) ObjecNves! Produce(multi-year,(accretive(revenue(stream ((-(Clinical(trial(participation ((-(New(procedures((aka(robotics)! Attain(top-tier(operating(margins ((-(Multi-year(agreements((formulary) ((-(Reimbursement(category(PPV ((-(Predictable(horizontal/longitudial(costs ((-(Sustainability(of(NewCo! Capture(regional(market-share ((-(Technology(guarantee ((-(Clinical(trial(access Concerns 21

22 The investor ObjecNves! IRR,$ROI,$Multiples! Placement$amount Concerns! Portfolio(balance(&(timing! Validation(of(business(model! Validation(of(product(category! Venture(capital(requirements! Inability(to(participate(in(later(rounds! Implications(of(public(financing( 22

23 The investor ObjecNves! IRR,$ROI,$Multiples! Placement$amount Concerns! Portfolio(balance(&(timing! Validation(of(business(model! Validation(of(product(category! Venture(capital(requirements! Inability(to(participate(in(later(rounds! Implications(of(public(financing( 23

24 The investor ObjecNves! IRR,$ROI,$Multiples! Placement$amount Concerns! Portfolio(balance(&(timing! Validation(of(business(model! Validation(of(product(category! Venture(capital(requirements! Inability(to(participate(in(later(rounds! Implications(of(public(financing( 24

25 The investor ObjecNves! IRR,$ROI,$Multiples! Placement$amount Concerns! Portfolio(balance(&(timing! Validation(of(business(model! Validation(of(product(category! Venture(capital(requirements! Inability(to(participate(in(later(rounds! Implications(of(public(financing( 25

26 The investor ObjecNves! IRR,$ROI,$Multiples! Placement$amount Concerns! Portfolio(balance(&(timing! Validation(of(business(model! Validation(of(product(category! Venture(capital(requirements! Inability(to(participate(in(later(rounds! Implications(of(public(financing( 26

27 The acquirer ObjecNves! Price/Earning+Ratio! Revenue/margin+accretion! Market+share Concerns! Aligned(business(models! Defend/expand(existing(categories! Enter(new(categories/markets! Formulary(competitiveness! Maintain/improve(financial(ratios! Salesforce(leverage( 27

28 The acquirer ObjecNves! Price/Earning+Ratio! Revenue/margin+accretion! Market+share Concerns! Aligned(business(models! Defend/expand(existing(categories! Enter(new(categories/markets! Formulary(competitiveness! Maintain/improve(financial(ratios! Salesforce(leverage( 28

29 The acquirer ObjecNves! Price/Earning+Ratio! Revenue/margin+accretion! Market+share Concerns! Aligned(business(models! Defend/expand(existing(categories! Enter(new(categories/markets! Formulary(competitiveness! Maintain/improve(financial(ratios! Salesforce(leverage( 29

30 The acquirer ObjecNves! Price/Earning+Ratio! Revenue/margin+accretion! Market+share Concerns! Aligned(business(models! Defend/expand(existing(categories! Enter(new(categories/markets! Formulary(competitiveness! Maintain/improve(financial(ratios! Salesforce(leverage( 30

31 The acquirer ObjecNves! Price/Earning+Ratio! Revenue/margin+accretion! Market+share Concerns! Aligned(business(models! Defend/expand(existing(categories! Enter(new(categories/markets! Formulary(competitiveness! Maintain/improve(financial(ratios! Salesforce(leverage( 31

32 The acquirer ObjecNves! Price/Earning+Ratio! Revenue/margin+accretion! Market+share Concerns! Aligned(business(models! Defend/expand(existing(categories! Enter(new(categories/markets! Formulary(competitiveness! Maintain/improve(financial(ratios! Salesforce(leverage( 32

33 ObjecNve: Provide Tools for Accurate ValuaNon & Strong Exit 1 Find BENCHMARK - Evaluate by comparison 2 To uncover the STANDARD - A measure, norm or model in comparanve evaluanon 3 Through use of TOOLS 4 To obtain KNOWLEDGE - An implement to carry out a parncular funcnon - Acquired understanding through facts, informanon or experience 33

34 ObjecNve: Provide Tools for Accurate ValuaNon & Strong Exit 1 Find BENCHMARK - Evaluate by comparison 2 To uncover the STANDARD - A measure, norm or model in comparanve evaluanon 3 Through use of TOOLS 4 To obtain KNOWLEDGE - An implement to carry out a parncular funcnon - Acquired understanding through facts, informanon or experience 34

35 Tools reveal standards so you can plot a winning strategy ValuaNon Milestones: A review of standard, not comparanves, avails and aligns valuanon and fundable milestones with those of investors and acquirers Disease State Fact Book: DisNnguish the difference between an incremental market improvement and a monumental innovanon Industry Life Cycle: Incumbent s resist acquiring unnl their exisnng investment is threatened or expiring Purchase Trigger Database: Reliance on an early exit is misplaced if uninformed, know your acquirer s habits 35

36 Tools reveal standards so you can plot a winning strategy ValuaNon Milestones: A review of standard, not comparanves, avails and aligns valuanon and fundable milestones with those of investors and acquirers Disease State Fact Book: DisNnguish the difference between an incremental market improvement and a monumental innovanon Industry Life Cycle: Incumbent s resist acquiring unnl their exisnng investment is threatened or expiring Purchase Trigger Database: Reliance on an early exit is misplaced if uninformed, know your acquirer s habits 36

37 ValuaNon standards define Let s look at an example your waypoints Each life sciences verncal differs - PharmaceuNcal - Medical Devices Each product category may differ - Cardiovascular - DiagnosNcs - Healthcare IT Each regulatory category may differ - 510k - Cancer - PMA Note: 2011 Venture Data Set for regional companies F = Fundable milestone move to next class V = Value milestone company value increases 37

38 Data points from Venture Source & Pitchbook Note: 2011 Venture Data Set for regional companies F = Fundable milestone move to next class V = Value milestone company value increases 38

39 ValuaNon standards define your waypoints Note: 2011 Venture Data Set for regional companies F = Fundable milestone move to next class V = Value milestone company value increases Series A - in millions Series B - in millions Series C - in millions Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money / / / / / / months +/ months +/ months +/ !!Creat!proof!of!concept!(F/V)!!Attain!regulatory!pathway!(V)!!Commercial!approval!;!OUS!(V)!!Commercialization!plan!vaibility!(F/V)!!1st!in;human!data/!start!clinical!trial!(F/V)!!Regulatory!trial!approval!;!US!(F/V)!!Buildout!technical!team!(V)!!Design!System!Audit!(V)!!Launch!US!trial!(V)!!Hire!sales!&!marketing!team!(V) Series D - in millions Series E - in millions Exit Details Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money Capital Raise Exit Value Months / / / / / / / months +/ Multiples CAGR % 2.2 +/ /- 7.6!!Regulatory!approval!;!US!(F/V)!!Launch!US!product!(V)!!US!Revenue!in!excess!of!$xxM!run;rate!(F/V)!!Demonstrate!viability!of!2nd!product!(V)!!Demonstrate!hockey;stick!revenue!growth!(F/V)!!Pass!cash;flow!BE!Point!(F/V)!!Regulatory!trial!path!2nd!product!;!US!(V) 39

40 ValuaNon standards define your waypoints Note: 2011 Venture Data Set for regional companies F = Fundable milestone move to next class V = Value milestone company value increases Series A - in millions Series B - in millions Series C - in millions Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money / / / / / / months +/ months +/ months +/ !!Creat!proof!of!concept!(F/V)!!Attain!regulatory!pathway!(V)!!Commercial!approval!;!OUS!(V)!!Commercialization!plan!vaibility!(F/V)!!1st!in;human!data/!start!clinical!trial!(F/V)!!Regulatory!trial!approval!;!US!(F/V)!!Buildout!technical!team!(V)!!Design!System!Audit!(V)!!Launch!US!trial!(V)!!Hire!sales!&!marketing!team!(V) Series D - in millions Series E - in millions Exit Details Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money Capital Raise Exit Value Months / / / / / / / months +/ Multiples CAGR % 2.2 +/ /- 7.6!!Regulatory!approval!;!US!(F/V)!!Launch!US!product!(V)!!US!Revenue!in!excess!of!$xxM!run;rate!(F/V)!!Demonstrate!viability!of!2nd!product!(V)!!Demonstrate!hockey;stick!revenue!growth!(F/V)!!Pass!cash;flow!BE!Point!(F/V)!!Regulatory!trial!path!2nd!product!;!US!(V) 40

41 ValuaNon standards define your waypoints Note: 2011 Venture Data Set for regional companies F = Fundable milestone move to next class V = Value milestone company value increases Series A - in millions Series B - in millions Series C - in millions Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money / / / / / / months +/ months +/ months +/ !!Creat!proof!of!concept!(F/V)!!Attain!regulatory!pathway!(V)!!Commercial!approval!;!OUS!(V)!!Commercialization!plan!vaibility!(F/V)!!1st!in;human!data/!start!clinical!trial!(F/V)!!Regulatory!trial!approval!;!US!(F/V)!!Buildout!technical!team!(V)!!Design!System!Audit!(V)!!Launch!US!trial!(V)!!Hire!sales!&!marketing!team!(V) Series D - in millions Series E - in millions Exit Details Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money Capital Raise Exit Value Months / / / / / / / months +/ Multiples CAGR % 2.2 +/ /- 7.6!!Regulatory!approval!;!US!(F/V)!!Launch!US!product!(V)!!US!Revenue!in!excess!of!$xxM!run;rate!(F/V)!!Demonstrate!viability!of!2nd!product!(V)!!Demonstrate!hockey;stick!revenue!growth!(F/V)!!Pass!cash;flow!BE!Point!(F/V)!!Regulatory!trial!path!2nd!product!;!US!(V) 41

42 ValuaNon standards define your waypoints Note: 2011 Venture Data Set for regional companies F = Fundable milestone move to next class V = Value milestone company value increases Series A - in millions Series B - in millions Series C - in millions Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money / / / / / / months +/ months +/ months +/ !!Creat!proof!of!concept!(F/V)!!Attain!regulatory!pathway!(V)!!Commercial!approval!;!OUS!(V)!!Commercialization!plan!vaibility!(F/V)!!1st!in;human!data/!start!clinical!trial!(F/V)!!Regulatory!trial!approval!;!US!(F/V)!!Buildout!technical!team!(V)!!Design!System!Audit!(V)!!Launch!US!trial!(V)!!Hire!sales!&!marketing!team!(V) Series D - in millions Series E - in millions Exit Details Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money Capital Raise Exit Value Months / / / / / / / months +/ Multiples CAGR % 2.2 +/ /- 7.6!!Regulatory!approval!;!US!(F/V)!!Launch!US!product!(V)!!US!Revenue!in!excess!of!$xxM!run;rate!(F/V)!!Demonstrate!viability!of!2nd!product!(V)!!Demonstrate!hockey;stick!revenue!growth!(F/V)!!Pass!cash;flow!BE!Point!(F/V)!!Regulatory!trial!path!2nd!product!;!US!(V) 42

43 ValuaNon standards define your waypoints Note: 2011 Venture Data Set for regional companies F = Fundable milestone move to next class V = Value milestone company value increases Series A - in millions Pre-Money Capital Raise Post-Money / / months +/ Series B - in millions Pre-Money Capital Raise Post-Money / / months +/ !!Creat!proof!of!concept!(F/V)!!Commercialization!plan!vaibility!(F/V)!!Buildout!technical!team!(V)!!Attain!regulatory!pathway!(V)!!1st!in6human!data/!start!clinical!trial!(F/V)!!Design!System!Audit!(V) 43

44

45 ValuaNon standards define your waypoints Note: 2011 Venture Data Set for regional companies F = Fundable milestone move to next class V = Value milestone company value increases Series A - in millions Pre-Money Capital Raise Post-Money / / months +/ Series B - in millions Pre-Money Capital Raise Post-Money / / months +/ !!Creat!proof!of!concept!(F/V)!!Commercialization!plan!vaibility!(F/V)!!Buildout!technical!team!(V)!!Attain!regulatory!pathway!(V)!!1st!in6human!data/!start!clinical!trial!(F/V)!!Design!System!Audit!(V) 45

46 ValuaNon standards define your waypoints Note: 2011 Venture Data Set for regional companies F = Fundable milestone move to next class V = Value milestone company value increases Series A - in millions A value milestone Pre-Money Capital Raise Post-Money increases company value / / months +/ Series B - in millions A fundable milestone allows movement to next investor class Pre-Money Capital Raise Post-Money / / months +/ !!Creat!proof!of!concept!(F/V)!!Commercialization!plan!vaibility!(F/V)!!Buildout!technical!team!(V)!!Attain!regulatory!pathway!(V)!!1st!in6human!data/!start!clinical!trial!(F/V)!!Design!System!Audit!(V) 46

47

48 ValuaNon standards define your waypoints Note: 2011 Venture Data Set for regional companies F = Fundable milestone move to next class V = Value milestone company value increases Series C - in millions Pre-Money Capital Raise Post-Money / / months +/ Series D - in millions Pre-Money Capital Raise Post-Money / / months +/ !!Commercial!approval!-!OUS!(V)!!Regulatory!trial!approval!-!US!(F/V)!!Launch!US!trial!(V)!!Hire!sales!&!marketing!team!(V)!!Regulatory!approval!.!US!(F/V)!!Launch!US!product!(V)!!US!Revenue!in!excess!of!$xxM!run.rate!(F/V)!!Demonstrate!viability!of!2nd!product!(V) 48

49 Early exits are not always pracncal Note: 2011 Venture Data Set for regional companies F = Fundable milestone move to next class V = Value milestone company value increases Series E - in millions Exit Details Pre-Money Capital Raise Post-Money Capital Raise Exit Value Months / / / / /-21.6 Multiples CAGR % 2.2 +/ /- 7.6!!Demonstrate!hockey/stick!revenue!growth!(F/V)!!Pass!cash/flow!BE!Point!(F/V)!!Regulatory!trial!path!2nd!product!/!US!(V) 49

50 ValuaNon standards define your waypoints Note: 2011 Venture Data Set for regional companies F = Fundable milestone move to next class V = Value milestone company value increases Series E - in millions Exit Details Pre-Money Capital Raise Post-Money Capital Raise Exit Value Months / / / / /-21.6 Multiples CAGR % 2.2 +/ /- 7.6!!Demonstrate!hockey/stick!revenue!growth!(F/V)!!Pass!cash/flow!BE!Point!(F/V)!!Regulatory!trial!path!2nd!product!/!US!(V) 50

51 ValuaNon standards define your waypoints Note: 2011 Venture Data Set for regional companies F = Fundable milestone move to next class V = Value milestone company value increases Series E - in millions Exit Details Pre-Money Capital Raise Post-Money Capital Raise Exit Value Months / / / / /-21.6 Multiples CAGR % 2.2 +/ /- 7.6!!Demonstrate!hockey/stick!revenue!growth!(F/V)!!Pass!cash/flow!BE!Point!(F/V)!!Regulatory!trial!path!2nd!product!/!US!(V) 51

52 ValuaNon standards define your waypoints Note: 2011 Venture Data Set for regional companies F = Fundable milestone move to next class V = Value milestone company value increases Series E - in millions Exit Details Pre-Money Capital Raise Post-Money Capital Raise Exit Value Months / / / / /-21.6 Multiples CAGR % 2.2 +/ /- 7.6!!Demonstrate!hockey/stick!revenue!growth!(F/V)!!Pass!cash/flow!BE!Point!(F/V)!!Regulatory!trial!path!2nd!product!/!US!(V) 52

53 ValuaNon standards define your waypoints Note: 2011 Venture Data Set for regional companies F = Fundable milestone move to next class V = Value milestone company value increases Series E - in millions Exit Details Pre-Money Capital Raise Post-Money Capital Raise Exit Value Months / / / / /-21.6 Multiples CAGR % 2.2 +/ /- 7.6!!Demonstrate!hockey/stick!revenue!growth!(F/V)!!Pass!cash/flow!BE!Point!(F/V)!!Regulatory!trial!path!2nd!product!/!US!(V) 53

54 ValuaNon standards define your waypoints Note: 2011 Venture Data Set for regional companies F = Fundable milestone move to next class V = Value milestone company value increases Series E - in millions Exit Details Pre-Money Capital Raise Post-Money Capital Raise Exit Value Months / / / / /-21.6 Multiples CAGR % 2.2 +/ /- 7.6!!Demonstrate!hockey/stick!revenue!growth!(F/V)!!Pass!cash/flow!BE!Point!(F/V)!!Regulatory!trial!path!2nd!product!/!US!(V) 54

55 Tools reveal industry standards so you can plot a winning strategy ValuaNon Milestones: A review of standard, not comparanves, avails and aligns valuanon and fundable milestones with those of investors and acquirers Disease State Fact Book: DisNnguish the difference between an incremental market improvement and a monumental innovanon Industry Life Cycle: Incumbent s resist acquiring unnl their exisnng investment is threatened or expiring Purchase Trigger Database: Reliance on an early exit is misplaced if uninformed, know your acquirer s habits 55

56 Determine if a technology is an innovanon or a modificanon DISEASE&STATE&FACT&BOOK Row$# Base$Year Year$2 1 Disease$Prevalence Portion$of$the$population$found$to$have$the$condition$(1$in$1000) 24,652,555 25,268,869 2 Incidence$% Percentage$of$new$cases$(generally$a$year) 20% 3 Incidence Occurrence$of$new$cases$since$last$time$periodlater$year$or$in$a$period$ of$time$(generally$a$year) 5,053,774 4 Percentage$Recurring$ Percentage$of$population$with$a$reoccurring$event$in$a$given$year 20% 5 Prevelance$Population [Disease$prevalence$less$incidence]$x$percentage$recurring 4,043,019 6 Number$Diagnosed Number$diagnosed$patients$(the$act$of$identifying$trateable$disease) 9,096,793 7 Diagnosis$Rate$% Number$diagnosed/disease$prevalence$(this$included$incident$ patients) 36.0% 8 Procedural$Approaches Diagnostic,$Medical$Devices,$Pharmaceutical,$LongVterm$Care,$ Rehabilitation,$etc. Medical$ Therapy CABG Inteventional$ Procedure 9 Procedure/Service$Approach$% The$percent$of$diagnosed$cases$that$would$use$this$product/service 84.5% 3.5% 12.3% 10 Number$of$Procedures/Services Number$of$diagnosed$x$procedure/service$approach$% $$$$$$$ 7,687,700 $$$$$$$ 318,388 $$$$$$$$$$$$ 1,119, Type$of$Products/SubVservices List$the$individual$products$or$services$performed Stent Guide$Catheter Guide$Wire 12 Units$per$Procedure/Service Example:$$2$Stents$per$Procedure,$30$pills$per$cycle,$30$days$in$longV term$care Market$Units/Services Number$of$Procedures$x$Units$per$Procedure/Service $$$$$$$$$$$ 2,463,593 $$$$$$$$$$$$ 1,959,677 $$$$$$$$$$$$ 1,231, Average$Revenue$per$Event Revenue$value$per$event$or$service$V$note$revenue$by$manufacturer$ would$be$different$than$at$the$hospital$level $$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ 9.87 $$$$$$$$$$$$$$$$$$$$ Market$Dollars$or$Cost Maket$Units$x$Average$Price $$ 1,354,976,390 $$$$$$$$$ 19,342,008 $$$$$$$$$$ 8,536,351 56

57 Factors that increase market value Disease Prevalence Portion of the population found to have the condition (1 in 1000) """"" """""" """""" """""" """""" """""" """""" """""" """""" """""" """""" """""" """""" """"" """""" """""" """""" """""" """""" """"" Incidence % Percentage of new cases (generally a year) """" Incidence Percentage Recurring Occurrence of new cases since last time period later year or in a period of time (generally a year) Percentage of population with a recurring event in a given year Prevalence Population Number Diagnosed Diagnosis Rate % Procedural Approaches Procedure/Service Approach % [Disease prevalence less incidence] x percentage recurring Number diagnosed patients (the act of identifying treatable disease) Number diagnosed/disease prevalence (includes incident patients) Diagnostic, Medical Devices, Pharmaceutical, Long-Term Care, Rehabilitation, etc. The percentage of diagnosed cases that would use this product/service 10. Number of Procedures/Services Number of diagnosed x procedure/service approach % " Type of products/sub-services Units per Procedure/Service Market Units/Services Average Revenue per Event Market Dollars or Cost List the individual products or services performed Example: 2 stents per procedure, 30 pills per cycle, 30 days in long-term care Number of Procedures x Units per Procedure/Service Revenue value per event or service note revenue by manufacturer would be different than at the hospital level Market Units x Average Price

58 The factors that increase market value DISEASE&STATE&FACT&BOOK Row$# Base$Year Year$2 1 Disease$Prevalence Portion$of$the$population$found$to$have$the$condition$(1$in$1000) 24,652,555 25,268,869 2 Incidence$% Percentage$of$new$cases$(generally$a$year) 20% 3 Incidence Occurrence$of$new$cases$since$last$time$periodlater$year$or$in$a$period$ of$time$(generally$a$year) 5,053,774 4 Percentage$Recurring$ Percentage$of$population$with$a$reoccurring$event$in$a$given$year 20% 5 Prevelance$Population [Disease$prevalence$less$incidence]$x$percentage$recurring 4,043,019 6 Number$Diagnosed Number$diagnosed$patients$(the$act$of$identifying$trateable$disease) 9,096,793 7 Diagnosis$Rate$% Number$diagnosed/disease$prevalence$(this$included$incident$ patients) 36.0% 8 Procedural$Approaches Diagnostic,$Medical$Devices,$Pharmaceutical,$LongVterm$Care,$ Rehabilitation,$etc. Medical$ Therapy CABG Inteventional$ Procedure 9 Procedure/Service$Approach$% The$percent$of$diagnosed$cases$that$would$use$this$product/service 84.5% 3.5% 12.3% 10 Number$of$Procedures/Services Number$of$diagnosed$x$procedure/service$approach$% $$$$$$$ 7,687,700 $$$$$$$ 318,388 $$$$$$$$$$$$ 1,119, Type$of$Products/SubVservices List$the$individual$products$or$services$performed Stent Guide$Catheter Guide$Wire 12 Units$per$Procedure/Service Example:$$2$Stents$per$Procedure,$30$pills$per$cycle,$30$days$in$longV term$care Market$Units/Services Number$of$Procedures$x$Units$per$Procedure/Service $$$$$$$$$$$ 2,463,593 $$$$$$$$$$$$ 1,959,677 $$$$$$$$$$$$ 1,231, Average$Revenue$per$Event Revenue$value$per$event$or$service$V$note$revenue$by$manufacturer$ would$be$different$than$at$the$hospital$level $$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ 9.87 $$$$$$$$$$$$$$$$$$$$ Market$Dollars$or$Cost Maket$Units$x$Average$Price $$ 1,354,976,390 $$$$$$$$$ 19,342,008 $$$$$$$$$$ 8,536,351 58

59 A 4% change in diagnosis rate can increase the market by 11% DISEASE&STATE&FACT&BOOK Row$# Year$2 Year$2 1 Disease$Prevalence 2 Incidence$% 3 Incidence 4 Percentage$Recurring$ 5 Prevelance$Population 6 Number$Diagnosed 7 Diagnosis$Rate$% 8 Procedural$Approaches 9 Procedure/Service$Approach$% 10 Number$of$Procedures/Services Medical$ Therapy 25,268,869 25,268,869 20% 20% 5,053,774 5,053,774 20% 5% 25% 4,043,019 5,053,774 9,096,793 10,107, % 4% 40.0% CABG Inteventional$ Procedure Medical$ Therapy CABG Inteventional$ Procedure 84.5% 3.5% 12.3% 84.5% 3.5% 12.3% $$$$$$$ 7,687,700 $$$$$$$ 318,388 $$$$$$$$$$$$ 1,119,815 $$$$$$$ 8,541,888 $$$$$$$ 353,764 $$$$$$$ 1,244, Type$of$Products/SubLservices 12 Units$per$Procedure/Service 13 Market$Units/Services 14 Average$Revenue$per$Event 15 Market$Dollars$or$Cost Stent Guide$Catheter Guide$Wire Stent Guide$Catheter Guide$Wire $$$$$$$$$$$ 2,463,593 $$$$$$$$$$$$ 1,959,677 $$$$$$$$$$$$ 1,231,797 $$$$$$$$$$$ 2,737,326 $$$$$$$ 2,177,418 $$$$$$$$$$$$ 1,368,663 $$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ 9.87 $$$$$$$$$$$$$$$$$$$$ 6.93 $$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$ 9.87 $$$$$$$$$$$$$$$$$$$$ 6.93 $$ 1,354,976,390 $$$$$$$$$ 19,342,008 $$$$$$$$$$ 8,536,351 $$ 1,505,529,323 $$$ 21,491,120 $$$$$$$$$$ 9,484,835 1,382,854, ,650,528 1,536,505,277 59

60 A 1.2% procedural shig can change the market dollars by 10% DISEASE&STATE&FACT&BOOK Row$# Year$2 Year$2 1 Disease$Prevalence 2 Incidence$% 3 Incidence 4 Percentage$Recurring$ 5 Prevelance$Population 6 Number$Diagnosed 7 Diagnosis$Rate$% 8 Procedural$Approaches 9 Procedure/Service$Approach$% 10 Number$of$Procedures/Services Medical$ Therapy 25,268,869 25,268,869 20% 20% 5,053,774 5,053,774 20% 20% 4,043,019 4,043,019 9,096,793 9,096,793 CABG 36.0% 36.0% Inteventional$ Procedure Medical$ Therapy CABG Inteventional$ Procedure 84.5% 3.5% 12.3% 84.5% 2.0% 13.5% $$$$$$$ 7,687,700 $$$$$$$ 318,388 $$$$$$$$$$$$ 1,119,815 $$$$$$$ 7,687,700 $$$$$$$ 181,936 $$$$$$$ 1,227, Type$of$Products/SubLservices 12 Units$per$Procedure/Service 13 Market$Units/Services 14 Average$Revenue$per$Event 15 Market$Dollars$or$Cost Stent Guide$Catheter Guide$Wire Stent Guide$Catheter Guide$Wire $$$$$$$$$$$ 2,463,593 $$$$$$$$$$$$ 1,959,677 $$$$$$$$$$$$ 1,231,797 $$$$$$$$$$$ 2,699,746 $$$$$$$ 2,147,525 $$$$$$$$$$$$ 1,349,873 $$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$ 9.87 $$$$$$$$$$$$$$$$$$$$ 6.93 $$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$ 9.87 $$$$$$$$$$$$$$$$$$$$ 6.93 $$ 1,354,976,390 $$$$$$$$$ 19,342,008 $$$$$$$$$$ 8,536,351 $$ 1,484,860,398 $$$ 21,196,075 $$$$$$$$$$ 9,354,621 1,382,854,750 1,515,411, ,556,345 60

61 Market factors that a2ract acquirers Factors that increase market value: (all Ndes rise boats) Diagnosis rate Procedure rate Units p/ procedure Factors that require taking share: (fighnng incumbents) Type of products Category transinons Market units Average selling price Market dollars 61

62 Tools reveal industry standards so you can plot a winning strategy ValuaNon Milestones: A review of standard, not comparanves, avails and aligns valuanon and fundable milestones with those of investors and acquirers Disease State Fact Book: DisNnguish the difference between an incremental market improvement and a monumental innovanon Industry Life Cycle: Incumbents resist acquiring unnl their exisnng investment is threatened or expiring Purchase Trigger Database: Reliance on an early exit is misplaced if uninformed, know your acquirer s habits 62

63 Determine an industry s readiness Macro&Map& MEDICAL DEVICE INDUSTRY MACRO MAP HOSPITALS Operating Room Multi speciality ICU/CCU Laboratory based Specialty Figure'5.2'Product'Life'Cycle'Management' Abbott Atrium B Braun Baxter Boston Scientific CR Bard Cook Covidien Drager Gambro GE Health care Gore Medical J&J Kinetic concepts Inc. Medtronic Philips Health Care Siemens Helath care Smith and Nephew Srtyker St.Jude Synergetics Synovis Unomedical/Convotech Zimmer 41& cardiothoracic general colon rectal otolaryngiology orthopedic plastic surgery ophthalmology ob-gyn general laproscopy general-other Vascular urology endoscopy neurology Robot assisted/image guided Micro&Map& anasthetics respiratory devices hemostats tissue sealants adhesion prevention monitoring systems Interventional cardiology Interventional radiology Electrophysiology Interventional neurology CRM Radiology(imaging) Renal Neurology Infusion systems wound care and management!!!!!! Interventional Cardiology Micromap!!!!! angioplasty!! angiography! IVUS! vascular! thrombectomy! closure atherectomy cardiac catheter!!!! angioplasty balloon!! stents! catheters!!!!!!!!!! 42& bare metal drug eluting Abbott Abiomed!! Arrow Medical! Arterial Remodeling Technologies! Ashahi Intecc Co. Atrium B Braun!! Biosensors International! Biotronik Boston Scientific! CR Bard!! Cardiovascular Systems Inc.! Cardiac output technologies!! Cardima! Clear stream technologies!! Cook Concentric Medical! Covidien Edwards Life Sciences Gore Medical!! Great batch medical! perpheral stents peripheral stent grafts 63

64 Determine an industry s readiness Macro&Map& MEDICAL DEVICE INDUSTRY MACRO MAP HOSPITALS Operating Room Multi speciality ICU/CCU Laboratory based Specialty Figure'5.2'Product'Life'Cycle'Management' Wang developed the CRT Word Processor 61% CAGR between Abbott Atrium B Braun Baxter Boston Scientific CR Bard Cook Covidien Drager Gambro GE Health care Gore Medical J&J Kinetic concepts Inc. Medtronic Philips Health Care Siemens Helath care Smith and Nephew Srtyker St.Jude Synergetics Synovis Unomedical/Convotech Zimmer 41& cardiothoracic general colon rectal otolaryngiology orthopedic plastic surgery ophthalmology ob-gyn general laproscopy general-other Vascular urology endoscopy neurology Robot assisted/image guided Micro&Map& anasthetics respiratory devices hemostats tissue sealants adhesion prevention monitoring systems Interventional cardiology Interventional radiology Electrophysiology Interventional neurology CRM Radiology(imaging) Renal Neurology Infusion systems wound care and management!!!!!! Interventional Cardiology Micromap!!!!! angioplasty!! angiography! IVUS! vascular! thrombectomy! closure atherectomy cardiac catheter!!!! angioplasty balloon!! stents! catheters!!!!!!!!!! 42& bare metal drug eluting Abbott Abiomed!! Arrow Medical! Arterial Remodeling Technologies! Ashahi Intecc Co. Atrium B Braun!! Biosensors International! Biotronik Boston Scientific! CR Bard!! Cardiovascular Systems Inc.! Cardiac output technologies!! Cardima! Clear stream technologies!! Cook Concentric Medical! Covidien Edwards Life Sciences Gore Medical!! Great batch medical! perpheral stents peripheral stent grafts 64

65 Industry & companies in a growth phase will fight a category shig Macro&Map& MEDICAL DEVICE INDUSTRY MACRO MAP HOSPITALS Operating Room Multi speciality ICU/CCU Laboratory based Specialty No Figure'5.2'Product'Life'Cycle'Management' Wang developed the CRT Word Processor 61% CAGR between Abbott Atrium B Braun Baxter Boston Scientific CR Bard Cook Covidien Drager Gambro GE Health care Gore Medical J&J Kinetic concepts Inc. Medtronic Philips Health Care Siemens Helath care Smith and Nephew Srtyker St.Jude Synergetics Synovis Unomedical/Convotech Zimmer 41& cardiothoracic general colon rectal otolaryngiology orthopedic plastic surgery ophthalmology ob-gyn general laproscopy general-other Vascular urology endoscopy neurology Robot assisted/image guided Micro&Map& anasthetics respiratory devices hemostats tissue sealants adhesion prevention monitoring systems Interventional cardiology Interventional radiology Electrophysiology Interventional neurology CRM Radiology(imaging) Renal Neurology Infusion systems wound care and management!!!!!! Interventional Cardiology Micromap!!!!! angioplasty!! angiography! IVUS! vascular! thrombectomy! closure atherectomy cardiac catheter!!!! angioplasty balloon!! stents! catheters!!!!!!!!!! 42& bare metal drug eluting Abbott Abiomed!! Arrow Medical! Arterial Remodeling Technologies! Ashahi Intecc Co. Atrium B Braun!! Biosensors International! Biotronik Boston Scientific! CR Bard!! Cardiovascular Systems Inc.! Cardiac output technologies!! Cardima! Clear stream technologies!! Cook Concentric Medical! Covidien Edwards Life Sciences Gore Medical!! Great batch medical! perpheral stents peripheral stent grafts 65

66 Industry & companies in a growth phase will fight a category shig Macro&Map& MEDICAL DEVICE INDUSTRY MACRO MAP HOSPITALS Operating Room Multi speciality ICU/CCU Laboratory based Specialty No Figure'5.2'Product'Life'Cycle'Management' Yes Wang developed the CRT Word Processor 61% CAGR between Abbott Atrium B Braun Baxter Boston Scientific CR Bard Cook Covidien Drager Gambro GE Health care Gore Medical J&J Kinetic concepts Inc. Medtronic Philips Health Care Siemens Helath care Smith and Nephew Srtyker St.Jude Synergetics Synovis Unomedical/Convotech Zimmer 41& cardiothoracic general colon rectal otolaryngiology orthopedic plastic surgery ophthalmology ob-gyn general laproscopy general-other Vascular urology endoscopy neurology Robot assisted/image guided Micro&Map& anasthetics respiratory devices hemostats tissue sealants adhesion prevention monitoring systems Interventional cardiology Interventional radiology Electrophysiology Interventional neurology CRM Radiology(imaging) Renal Neurology Infusion systems wound care and management!!!!!! Interventional Cardiology Micromap!!!!! angioplasty!! angiography! IVUS! vascular! thrombectomy! closure atherectomy cardiac catheter!!!! angioplasty balloon!! stents! catheters!!!!!!!!!! 42& bare metal drug eluting Abbott Abiomed!! Arrow Medical! Arterial Remodeling Technologies! Ashahi Intecc Co. Atrium B Braun!! Biosensors International! Biotronik Boston Scientific! CR Bard!! Cardiovascular Systems Inc.! Cardiac output technologies!! Cardima! Clear stream technologies!! Cook Concentric Medical! Covidien Edwards Life Sciences Gore Medical!! Great batch medical! perpheral stents peripheral stent grafts 66

67 Macro/Micro maps help uncover industry readiness Macro&Map& MEDICAL DEVICE INDUSTRY MACRO MAP HOSPITALS Operating Room Multi speciality ICU/CCU Laboratory based Specialty Figure'5.2'Product'Life'Cycle'Management' Abbott Atrium B Braun Baxter Boston Scientific CR Bard Cook Covidien Drager Gambro GE Health care Gore Medical J&J Kinetic concepts Inc. Medtronic Philips Health Care Siemens Helath care Smith and Nephew Srtyker St.Jude Synergetics Synovis Unomedical/Convotech Zimmer 41& cardiothoracic general colon rectal otolaryngiology orthopedic plastic surgery ophthalmology ob-gyn general laproscopy general-other Vascular urology endoscopy neurology Robot assisted/image guided Micro&Map& anasthetics respiratory devices hemostats tissue sealants adhesion prevention monitoring systems Interventional cardiology Interventional radiology Electrophysiology Interventional neurology CRM Radiology(imaging) Renal Neurology Infusion systems wound care and management!!!!!! Interventional Cardiology Micromap!!!!! angioplasty!! angiography! IVUS! vascular! thrombectomy! closure atherectomy cardiac catheter!!!! angioplasty balloon!! stents! catheters!!!!!!!!!! 42& bare metal drug eluting Abbott Abiomed!! Arrow Medical! Arterial Remodeling Technologies! Ashahi Intecc Co. Atrium B Braun!! Biosensors International! Biotronik Boston Scientific! CR Bard!! Cardiovascular Systems Inc.! Cardiac output technologies!! Cardima! Clear stream technologies!! Cook Concentric Medical! Covidien Edwards Life Sciences Gore Medical!! Great batch medical! perpheral stents peripheral stent grafts 67

68 Macro Map MEDICAL DEVICE INDUSTRY MACRO MAP Operating Room HOSPITALS Multi speciality ICU/CCU Laboratory based Specialty Abbott Atrium B Braun Baxter Boston Scientific CR Bard Cook Covidien Drager Gambro GE Health care Gore Medical J&J Kinetic concepts Inc. Medtronic Philips Health Care Siemens Helath care Smith and Nephew Srtyker St.Jude Synergetics Synovis Unomedical/Convotech Zimmer 68 cardiothoracic general colon rectal otolaryngiology orthopedic plastic surgery ophthalmology ob-gyn general laproscopy general-other Vascular urology endoscopy neurology Robot assisted/image guided anasthetics respiratory devices!!!!!!!!!!!!!!!!!!!!!! hemostats tissue sealants adhesion prevention monitoring systems Interventional cardiology Interventional radiology Electrophysiology Interventional neurology CRM Radiology(imaging) Renal Neurology Infusion systems wound care and management

69 Micro Map Interventional Cardiology Micromap angiography angioplasty IVUS vascular closure atherectomy thrombectomy cardiac catheter angioplasty balloon catheters stents bare metal drug eluting perpheral stents peripheral stent grafts 69 Abbott Abiomed!! Arrow Medical! Arterial Remodeling Technologies! Ashahi Intecc Co. Atrium B Braun!! Biosensors International! Biotronik Boston Scientific! CR Bard!! Cardiovascular Systems Inc.! Cardiac output technologies!! Cardima! Clear stream technologies!! Cook Concentric Medical! Covidien Edwards Life Sciences Gore Medical!! Great batch medical!

70 Determine an industry s readiness Macro&Map& MEDICAL DEVICE INDUSTRY MACRO MAP HOSPITALS Operating Room Multi speciality ICU/CCU Laboratory based Specialty Figure'5.2'Product'Life'Cycle'Management' Abbott Atrium B Braun Baxter Boston Scientific CR Bard Cook Covidien Drager Gambro GE Health care Gore Medical J&J Kinetic concepts Inc. Medtronic Philips Health Care Siemens Helath care Smith and Nephew Srtyker St.Jude Synergetics Synovis Unomedical/Convotech Zimmer 41& cardiothoracic general colon rectal otolaryngiology orthopedic plastic surgery ophthalmology ob-gyn general laproscopy general-other Vascular urology endoscopy neurology Robot assisted/image guided Micro&Map& anasthetics respiratory devices hemostats tissue sealants adhesion prevention monitoring systems Interventional cardiology Interventional radiology Electrophysiology Interventional neurology CRM Radiology(imaging) Renal Neurology Infusion systems wound care and management!!!!!! Interventional Cardiology Micromap!!!!! angioplasty!! angiography! IVUS! vascular! thrombectomy! closure atherectomy cardiac catheter!!!! angioplasty balloon!! stents! catheters!!!!!!!!!! 42& bare metal drug eluting Abbott Abiomed!! Arrow Medical! Arterial Remodeling Technologies! Ashahi Intecc Co. Atrium B Braun!! Biosensors International! Biotronik Boston Scientific! CR Bard!! Cardiovascular Systems Inc.! Cardiac output technologies!! Cardima! Clear stream technologies!! Cook Concentric Medical! Covidien Edwards Life Sciences Gore Medical!! Great batch medical! perpheral stents peripheral stent grafts 70

71 Tools reveal industry standards so you can plot a winning strategy ValuaNon Milestones: A review of standard, not comparanves, avails and aligns valuanon and fundable milestones with those of investors and acquirers Disease State Fact Book: DisNnguish the difference between an incremental market improvement and a monumental innovanon Industry Life Cycle: Incumbent s resist acquiring unnl their exisnng investment is threatened or expiring Purchase Trigger Database: Reliance on an early exit is misplaced if uninformed, know your acquirer s habits 71

72 62% of PMA s are acquired ager FDA approval Note: 2011 Venture Data Set Sample size = 18 Most likely less today before PMA Series A - in millions Series B - in millions Series C - in millions Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money / / / / / / months +/ months +/ months +/ (38%) acquired before regulatory approval Series D - in millions Series E - in millions Exit Details Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money Capital Raise Exit Value Months / / / / / / / months +/ Multiples CAGR % 2.2 +/ /- 7.6!!Regulatory!approval!.!US!(F/V) 11 (62%) acquired ager regulatory approval 72

73 62% of PMA s are acquired ager FDA approval Note: 2011 Venture Data Set Sample size = 18 Most likely less today before PMA Series A - in millions Series B - in millions Series C - in millions Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money / / / / / / months +/ months +/ months +/ (38%) acquired before regulatory approval Series D - in millions Series E - in millions Exit Details Pre-Money Capital Raise Post-Money Pre-Money Capital Raise Post-Money Capital Raise Exit Value Months / / / / / / / months +/ Multiples CAGR % 2.2 +/ /- 7.6!!Regulatory!approval!.!US!(F/V) 11 (62%) acquired ager regulatory approval 73

74 A value proposinon must address consntuency objecnves & concerns IdenNfy consntuency measures of success ValuaNon standards define your waypoints DisNnguish innovanon from improvement Determine an industry s readiness to change M&A history defines triggers (Nming) 74

75 Project management is a methodical approach to planning and guiding a project from start to finish. It is highly valued, and has demonstrated it worth in the most complex of environments. 75

76 Startups pose a particular problem, as t h e r e a r e t h r e e s i m u l t a n e o u s constituencies whose needs must be met; the customer, the investor and the acquirer. 76