1. Finance Wales Investing in life sciences

2. Who are we?  The Finance Wales Group comprises:  Finance Wales  FW Capital, our non Welsh fund management business  xénos, our business angel network  Commercially independent company providing investment funding to SMEs in Wales  Invests private/public funds

3. Our investments (£’m)

4. Finance Wales funds  Funds we are currently investing:  Wales JEREMIE Fund - £150m  Wales SME Investment Fund - £40m  Wales Technology Seed Fund - £7.5m  Wales Micro-business Loan Fund - £6m  Wales Property Development Fund - £10m  Wales Capital Growth Fund - £20m  Consistently invests over £30m per annum in Welsh companies  Total funds under management in excess of £400m

5. Finance Wales Venture Capital Funds Seed Capital Development Capital Growth Capital What are looking for? Entrepreneurial teams seeking to transform big ideas into game-changing companies.

6. Seed Fund details: £5m over five year investment period Investment of £50k - £150k Operated under De Minimis (must be cumulated) Structure: Convertible Loan notes with conversion discount Straight equity if existing or new co-investors participating Focused on technology based businesses Start ups, University and NHS Spinouts, Large co spin offs Pan Wales coverage

7. Venture Fund details: Investment of £150k - £1m+ Structure: Determined by requirements of opportunity Can invest along or alongside coinvestors Technology focus High growth potential IP-based companies Pan Wales coverage

8. Our co-investors 20 Co-investors 63 investment rounds £31.7m co-investment

9. Desirable attributes: A compelling idea that reflects a deep understanding of a big problem or opportunity, and offers an elegant solution. And……… A strong core team, not a world-class, all-gaps-filled team. But the founders have to have the credibility to launch the company and attract future talent that is needed to fill the gaps. Winning over investors depends on your people skills, not just your technical prowess.

10. Desirable attributes: Market opportunity - you should be targeting a technology sector that is not already crowded, where there is a significant problem that needs to be solved, or an opportunity that has not been exploited, and where your solution will create substantial value. Technology with a robust and sustainable advantage (and IP?) which attracts plenty of customers with plenty of money that desperately need it or want it.

11. Desirable attributes: Competitive advantage – Your product/service must have advantages that address all forms of competition, and that can sustain these advantages over several years. Financial projections – well articulated projections demonstrate that you understand the economics of your business. They should explain what drives your growth, what drives your profit, and how your company will evolve over the next several years.

12. Desirable attributes: Validation – key questions: Is there good evidence that your solution will be purchased by your target customers? Do you have an advisory board of credible industry experts? Do you have a co-development partner within the industry? Do you have beta customers to whom investors can speak? Do you already have paying customers? What other brand name validators can you offer? The more credibility and customer traction you have, the more likely investors are going to be interested.

13. Seed Capital of £150k for Pre Production development Follow on round of £100k for technology enhancement Series A round of £100k to drive first sales Cardiff University spinout with R & D support from Welsh Government Follow on round of £75k to develop new applications Series B round of £300k to drive US sales - Ultrasound training simulators Co-investment of £725k with Fusion and IP Group

14.  Academic research project > International business (10yrs)  FW first investment in 2009 – systems development  2013 sales – £1.6m. 2014 forecast sales £3.2m  Established US office and global distribution partners  Leveraged c. £2.5m of private investment  Employs 16 staff, WG – HPS, Smart grant, R & D tax credits  Recruited US based chairman  2 nd generation systems and software  100 systems across 12 Countries  Exit 2-3 years?  Early OEM interest

15. Thank you Any questions…? Dr Melanie Goward melanie.goward@financewales.co.uk 029 2033 8112