Building the Best Team that Delivers and that Investors Love TEAMWORK MAKES THE DREAM WORK:

RELEVANT EXPERIENCE Startup CEO (2x) Angel and Venture investment Seed – A – B – C negotiations Strategic partner deals and management Angel investor (Life Science Angels) – screening committee device and therapeutics Limited partner with Quantum Technology Partners (small Venture Fund) Independent startup investment Consultant to entrepreneurs, companies and Venture funds

DEFINITIONS Team = people contributing to product and its interface with medicine Investors = people / organizations supplying capital to enterprise in return for ownership

WHO IS YOUR TEAM? Founder / CEO Employees Management Team BOD Advisors Consultants Investors Suppliers Legal (Corp. & IP) Legal (Corp. & IP) Insurance

SPECTRUM OF INVESTORS Seed / Angels (F&F) Series ASeries B Series C… / IPO/ M&A Private / Family office Venture Fund Strategic

TOP 5 THINGS INVESTORS CONSIDER Need Solution Protection Market, Investment and Return Team

INVESTORS KNOW THAT THE MANAGEMENT TEAM IS MAJOR SOURCE OF RISK AND FAILURE VC survey: 65% of failures within their portfolio companies due to problems with the startup’s management team. Investors report 61% of problems in their portfolio companies involved issue within the team.

INVESTOR TEAM RISK MITIGATION Work with people and teams with whom they had success (exits) Work with people and teams they know Work with people and teams that had success (exits) for others Work with teams that have worked together before Work with teams with lots of experience

BUILDING A TEAM DILEMMA

TEAM YOU NEED DEPENDS ON: Seed / Angels (F&F) Series A Series B Series C… / IPO/ M&A Where you are in product development Where you are in fund raising Concept generation Proof-of- concept First-in- man Filing/ Approval Market Launch

TEAM NEEDS BASED ON PRODUCT DEVELOPMENT STAGE Concept generation Proof-of- concept First-in- man Filing/ Approval Market Launch Medical need Technology solution expertise Market recognition Product engineering Preclinical expertise Regulatory expertise Market understanding Clinical expertise Manufacturing Quality Supply chain Marketing Reimbursement Pipeline Sales Finance

TEAM NEEDS BASED ON FUNDING STAGE Medical expert* Technology expert* Market expert* IP attorney* *can be consultants, advisors, Board members, contractors… CMO CTO CEO Engineering/ science team Preclinical* Regulatory* IP* CMO CTO CEO Engineering/ science team Clinical team Regulatory IP* Manufacturing* CFO Quality Supply chain Marketing Reimbursement* CMO CTO CEO Engineering/ science team Clinical team Regulatory IP* VP Manufacturing CFO Quality Supply chain Marketing Reimbursement* VP Sales Seed / Angels (F&F) Series ASeries B Series C… / IPO/ M&A

TEAM TAKE-HOMES FOR INVESTORS Experience matters Industry/ devices, investors, startups, covering all the bases Network matters Co-founders/team, investors, Board and advisors Success matters Prior marketed products, prior startup successes, prior exits

EVALUATING TEAM STRENGTH A structured approach to

RELATIVE MINIMUM TEAM STRENGTH FOR DIFFERENT INVESTORS & INVESTMENT STAGES Seed / Angels (F&F) Series ASeries B Series C… / IPO/ M&A Private / Family office Strategic Venture Fund

THE EARLY TEAM

START WITH FOUNDER CEO Pick one as CEO: King Famous Rich If you didn’t pick Rich, don’t seek funding You don’t have investors’ priorities

SCORING THE EARLY TEAM Founder experience First time 2 nd 3 or more cos Operating experience or MD experience 12 8 Investor relationship Strangers Introduced Known – v. positive Made money for an investor before For this investor before Other team members Regulatory Clinical (CMO) Consultants known Product Development Commercial/ Market Advisor(s) known to investors Board members known to investors 8 4 8/ea

MD - idea from practice experience (8) Does not know investors or angels (0) Other team members not from medical device industry (0) No well known advisors (0) GOING TO HAVE A DIFFICULT TIME Usual Solutions: Raise money from friends & family (12) Others: Outside advisors or Board members (4-8) Co-founders with industry experience (12) Executive with idea from industry experience (12) Knows investors (12) Other team members with clinical (8) and regulatory (8) medical device industry experience (tot = 16) Highly credible outside Board member (8) TEAM WILL MAKE FINANCING MUCH EASIER HYPOTHETICAL FIRST TIME FOUNDERS

THE FUNDED TEAM

SCORING THE “A” TEAM Founder experience First time 2 nd 3 or more cos Operating experience or MD experience 12 8 Investor relationship Strangers Introduced Known – v. positive Made money for an investor before For this investor before Other team members Regulatory Clinical (CMO) Consultants known Product Development Commercial/ Market Advisors known to investors Board members known to investors Series A

SCORING THE “B” TEAM Founder experience First time 2 nd 3 or more cos Operating experience or MD experience 12 8 Investor relationship Strangers Introduced Known – v. positive Made money for an investor before For this investor before Other team members Regulatory Clinical (CMO) Consultants known Sales & Marketing Quality (QA) Product Development Commercial/ Market Advisors known to investors Board members known to investors Manufacturing/ Supply Chain Prior investor(s)Unknown4Highly credible/ well known16 Series B

SCORING THE “C” TEAM Founder experience First time 2 nd 3 or more cos Operating experience or MD experience 12 8 Investor relationship Strangers Introduced Known – v. positive Made money for an investor before For this investor before Other team members Regulatory Clinical (CMO) Consultants known Sales & Marketing Quality (QA) Product Development Commercial/ Market Advisors known to investors Board members known to investors Manufacturing/ Supply Chain Prior investor(s)Unknown4Highly credible/ well known16 Series C… / IPO/ M&A

MOST IMPORTANT… Getting your medical innovation to the market where it can help patients Who do you need to get the job done? Can you work together synergistically? Can you inspire confidence in investors?

THINGS WILL GO WRONG! Inevitably there will be ups and downs During the downs, how does the team work? Pulls together – steps up – no blame – make it work – accepts help Finger pointing – factions – effort slacks – insular and secretive If someone on the team does not deliver or respond constructively to the downs, must deal with it IMMEDIATELY! Change attitude, roles Leave company

TEAM TAKE-HOMES FOR ENTREPRENEUR Experience matters Network matters Success matters Trust and respect matter most Team that can get the job done will be the team investors (& patients in the future) love!

MICHAEL J. WEICKERT 632 Sylvan Way Emerald Hills, CA Phone (650) Cell (650)