1. 1 CLEVELAND The Nation’s New Healthcare Innovation Destination 2011

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3. 3 “Cleveland?" Mrs. Rich gasped, "I thought Cleveland comes to New York!" August 14, 2005

4. 4 “Health care has been the major source of job growth over the past five years. Nowhere is that truer than Cleveland.” September 2006

5. 5 “A Resurgence in Cleveland” November 8, 2006

6. 6 “Cleveland Rocks! … Few are aware that since 2002, it has been quietly transforming into a haven for early- stage biomedical start-ups.” June 2007

7. 7 “Cleveland has emerged as a prime location for medical care and research. Longtime manufacturers … have been replaced by the Cleveland Clinic and University Hospitals … and more than 500 companies providing medical goods and services. ” June 13, 2008

8. 8 “High-tech start-ups are increasingly setting up shop in places previously not known for attracting high-tech firms.” May 26, 2009

9. 9 Fast Cities 2010 “Constructing the perfect city means blending the best and boldest ideas from across the nation. For… Venture Capital Mindset—Cleveland” May 2010

10. 10 November 2010

11. 11 Global Advanced Imaging Center $38 million investment “Our company aspires to assist clinicians by providing breakthrough imaging technologies that today are not yet possible … to help improve the healthcare of patients in Ohio and throughout the world.” June 2010

12. 12 2001 Economic recession Disproportionate impact on Cleveland due to heavy exposure to industrial and manufacturing Civic recognition of structural changes, not just cyclical, in regional economy “Quiet Crisis”

13. 13 National Health Care Leadership Health care systems Largest industry sector Growth driven by demographics and international patient care Distinction driven by innovation Broad industry In 2001, ~250 companies Majority in medical devices Some industry leaders (Steris, Invacare, Philips/Picker), many small companies

14. 14 … But Weak Commercialization 8 33 HEALTH CARE VENTURE INVESTMENT $ Millions COMPANIES FUNDED 56

15. 15 Broad Effort Required Pipeline People Clinical Capital Community- wide effort Collaboration Connectedness … regionally and nationally Growth

16. 16 2002: Commitment Private/Institutions Focus on entrepreneurs and innovation Technology transfer Venture firms and professional services Philanthropy Fund For Our Economic Future: $90 million Investments for capital formation Public State of Ohio: $2.3 Billion+ Capital, Operating Support, Business Attraction

17. 17 2002: Setting a Collective Goal Nationally-recognized center for health care innovation Equal to Research Triangle, Minneapolis Single measure: venture capital invested in regional health care companies Starting point ~$30 million per year Goal: >$150 million per year = Research Triangle/Minneapolis

18. 18 BioEnterprise Initiative Vision Make region a nationally recognized center for health care innovation and commercialization (e.g., Minneapolis, Research Triangle) Mission Be the leader in biosciences industry growth focused on recruiting and attracting entrepreneurs, creating, accelerating, and retaining start-ups, and nurturing and promoting a vibrant business environment Performance Metric and Target Capital raised by health care companies in region >$150 million invested in region annually

19. 19 Role 1: Connector Pipeline People Clinical Capital Technology Offices Regional Start-ups Foreign Start-ups Existing Companies C-level talent Contract executives Service firms Workforce programs Clinical champions Advisory boards Venture Firms Seed/Angel Strategic Cos. Debt sources I-banks Gov’t Grants BioE

20. 20 Role 2: Catalyst … Through Collaboration Pipeline People Clinical Capital Research Institutes Technology Offices “101” Courses Business Attraction Events Industry Workforce Development New Funds Angel Groups Grant Resources Conferences National networks BioE

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24. 24 Aurora

25. 25 Hudson

26. 26 Investment Destination California Midwest South Boston New York Cleveland Area Companies $$$

27. 27 Growth in Innovation EQUITY INVESTMENTS $ Millions COMPANIES FUNDED 56 132116222826 21 Avg.146 33

28. 28 Results Health Care Venture ~ Research Triangle ~$150 million per year over last 6 years 28 Healthcare Funding Sources in Ohio 80% of funding from outside region Industry Growth Now at 600 companies Several dozen firms started/attracted each year 29 “Exits” National Recognition

29. 29 Transforming Lives

30. 30 “Cleveland is, in many ways, the medical capital of North America. The medical communities … are home to more physicians than all the hospitals in Boston. Cleveland is also home to myriad medical manufacturers and small businesses that are leading the way in innovative research and technology.”

31. 31 For More Information Baiju R. Shah President & CEO BioEnterprise (216) 658-3972 bshah@bioenterprise.com