1. Presentation by Dr. Andreas O. Tobler November 5, 2009

2. Whether you're preparing to launch a startup or want to grow your business, one thing is for certain: You’re going to need money. Debt and equity financing are two different financial strategies:  Debt means borrowing money for your business  Equity entails injecting your own or other stakeholders’ cash into your company

3.  Private Equity provides equity capital to enterprises not quoted on a stock market  Private Equity can be used to develop new products and technologies

4.  Private Equity provides equity capital to enterprises not quoted on a stock market.  Private Equity can be used to develop new products and technologies to expand working capital

5.  Private Equity provides equity capital to enterprises not quoted on a stock market.  Private Equity can be used to develop new products and technologies to expand working capital to make acquisitions or to strengthen a company’s balance sheet

6.  Private Equity provides equity capital to enterprises not quoted on a stock market.  Private Equity can be used to develop new products and technologies to expand working capital to make acquisitions or to strengthen a company’s balance sheet. to resolve ownership and management issues – a succession in family-owned companies

7.  Private Equity provides equity capital to enterprises not quoted on a stock market.  Private Equity can be used to develop new products and technologies to expand working capital to make acquisitions or to strengthen a company’s balance sheet. to resolve ownership and management issues – a succession in family-owned companies to buy out or buy in of a business by experienced managers

8. Venture capital is, strictly speaking, a subset of private equity and refers to equity investments made for  the launch  early development or  expansion of a business. (Definition of EVCA – European Private Equity and Venture Capital Association)

10. BioStartUp Co. €20,000

11. BioStartUp Co. Business Plan €20,000

12.  EXECUTIVE SUMMARY  MARKET OPPORTUNITY  MARKET ANALYSIS  TECHNOLOGY PLATFORM & PRODUCT OVERVIEW  COMMERCIAL PLAN  RESEARCH & DEVELOPMENT  MANUFACTURING & QUALITY CONTROL  CLINICAL & REGULATORY  INTELLECTUAL PROPERTY  CORPORATE STRUCTURE  MANAGEMENT  BOARD OF DIRECTORS, CONSULTANTS & PROFESSIONALS  CORPORATE GOVERNANCE  MARKET PLAYERS/COMPETITION  RISK  FINANCIAL PLAN/ CAPITAL REQUIREMENTS  EXIT STRATEGY  SUPORTING DOCUMENTS

13. BioStartUp Co. Year 1Year 2Year 3 Business Plan €20,000

14. BioStartUp Co. Year 1Year 2Year 3 Business Plan €20,000

15. Performance of an investigation of a business:  Legal Due Diligence  Financial Due Diligence  Business Due Diligence  Technological Due Diligence

16. Specific Due Diligence areas of concern may also include:  Labor  Tax  IT  Environment  Intellectual property  Real and personal property  Insurance and liability coverage  Debt instrument review  Employee benefits and labor matters  International transactions

17. BioStartUp Co. Year 1Year 2Year 3 Business Plan €20,000

18. €200,000 30% of Capital BioStartUp Co.

19. Equity 70% Equity 30% Cash €20k 10% Cash €200,000 90%

23.  Angel investors are wealthy individuals or networks that are willing to fund small businesses  Angels are the largest source of seed and start-up capital for businesses  Angel investors tend to fund small businesses for longer periods of time and expect a lower return on investment than do venture capital firms

24.  Venture Capital firms, on the other hand, provide equity for businesses with the expectation of high returns on their investments within three to five years  VCs generally fund companies with significant growth potential – both, Microsoft and Google attracted VC funding

25. The major advantages of equity (VC) funding are:  You receive capital to start/grow your business along planned timelines  You become part of a financial network  You gain access to valuable strategic advise and support

26. The major drawbacks of equity (VC) financing are:  You are no longer the full owner of your business  You will be relinquishing not just financial control, but will no longer be the sole arbiter of the business’s creative and strategic direction

28.  Total investment levels reached €2.5bn in CEE  CEE companies attracted close to 5% of total private equity investment across Europe  Investment activity was highly concentrated in the 5 biggest countries in the region: Poland, Hungary, the Czech Republic, Ukraine and Romania Source: EVCA – Central and Eastern Europe Statistics 2008

29.  The number of venture companies financed increased, driven by the financing of more start-up businesses  Life sciences attracted more investment than any other sector  The communications sector was the most active in terms of numbers of companies financed Source: EVCA – Central and Eastern Europe Statistics 2008

32.  You should consider starting your own company as one of many possible career paths  If you do, you should consider Venture Capital to grow your company  If you do, you need a business plan  Contact as many VCs as possible  Be prepared for thorough due diligence  Negotiate hard and fair  Once funded, keep communication open and information flowing  Work hard and stay focused