1. 1 Communicating with Venture Capitalists to Fund Your Research Raising Venture Capita l Michael Jirousek, Ph.D. Senior Advisor, Innovation Support Center May 2, 2016 V Foundation for Cancer Research

2. Sources Of Private Capital 1.F&F: Friends and Family 2.Angel Investors 3.Family Funds 4.Venture Capital Funds 5.Disease Foundations 6.Corporate Venture Funds 7.Corporate Sponsored Research 2

3. Your Pitch Will Ditch Unless You Learn To think like a Venture Capital Fund Know how to get a Venture Capitalist’s attention Prepare and practice your pitch 3

4. Before you pitch, things to consider 1.Do you have something of commercialization value? If there is an unmet medical need, a market for the product, and if you have intellectual property 2.At what point will a VC be interested? Typically when the technology has been sufficiently de risked or when the preliminary in vivo data is compelling 3. How do you find the right VC? Direct introduction is the easiest way, referrals from colleagues, reach out to HDI, having a champion at a company 4

5. Tailor your Presentation Based On Your Situation Are You Seeking Funds Before you have a company Or After you have started a company? 5

6. Reality Few VC’s fund early stage research Unless you can demonstrate that this is disruptive technology that will change the field Third Rock Ventures Hatteras Discovery 5AM Ventures 6

7. Good News Beyond VC’s, more for profit entities are starting to fund research in academia Accelerators – Specialty Large Pharma Accelerators – Centers of Excellence/Innovation Contract Research Organizations – Risk Share Models New Business Models – Harrington Discovery Project Apollo Therapeutics Fund 7

8. Examples of Industry Funding Gilead Sciences signed a cancer research deal with the Yale School of Medicine that could pay the School $100 million over 10 years UCSF in particular has gone on a partnering tear, inking deals with Sanofi- Aventis (financing amount not disclosed), Pfizer (up to $85 million over five years), and Bayer Healthcare (financial terms not disclosed).Sanofi- Aventis PfizerBayer Healthcare GlaxoSmithKline signed Harvard’s Stem Cell Institute to a 5 year, $25 million deal. Agilent Technologies signed the new Synthetic Biology Institute at UC- Berkeley to a “multiyear, multimillion-dollar commitment”. 8

9. Presentation Tips Minimal words, use bullet points Show don’t tell, focus on impact Don't even think about pitching a project without preliminary data Get to the point immediately, what will be your product? Don’t explain everything; leave room for discussion and leave something for their imagination Get help, especially from people with deep expertise 9

10. Contents of Your Pitch Slide Deck 1) Title Slide 2) Overview Slide with 5-6 bullet points 3) Team Members 4) Market Opportunity: Define Market, Size & Target Client 5) Market Problem & Current Solutions 6) Your Solution with Competitive Advantages 7) Intellectual Property 8) The Ask: How much do you need? What would you use funds for? 9) Closing Slide: Questions? Contact Details 10

11. 11 Overview Focus and mission How did the technology or approach evolved? Stage of the technology How have you funded program so far? What you are seeking Why should they consider funding?

12. 12 The problem: Explain the therapeutic area you are working in and limitations Epidemiology Etiology Morbidity and mortality Current therapies or approaches if any to treat and how they miss the mark

13. 13 The Solution: how your approach solves the problem Technology and mechanism of action How it solves the problem or offers a new approach Probability of success Competition, if any

14. 14 Data with your potential solution

15. 15 Putting the data into perspective Probability of success Risk mitigation and derisking Potential pitfalls Competition

16. 16 Market Opportunity Size of market (US and ROW) Prescribing specialty Reimbursement Strategy

17. 17 In the case of a company Business Model Intellectual property and Freedom To Operate Regulatory path and development strategy Value creation points in the company Funding strategy –Raises- convertible notes, equity, Series A, B, …. –Partnerships –Exits- acquisitions, public markets, mergers

18. 18 Use of funds With the funds, what do you propose achieving? What are the key value inflection points for the program How long will it take to reach key milestones Manage expectations

19. 19 Summary

20. 20 Back-up materials