1. Présentation à l’École Polytechnique de Montréal Journée de la Recherche 26 mai 2011 1

2. Value ≥ ƒ (Risk) 2 The Business Paradox ©

3. 3

4. Abandon - Transition Rate - Licenses 4 1:20 1:5 1:25 1 1 commercial success ~ $50M Total cost: $ 331.25M (minus ~ $3M license revenue) 5 VC projects @ $10M Cost: $50M 125 Spin-off @ $250k Cost: $31.25M 2,500 R&D projects @ $100k Cost: $250M The Business Paradox ©

5. $B market PainSolutionSkillsMoney 5 In other words, is it good enough? The Business Paradox ©

6. 6 Opportunity A vs. Opportunity B The Business Paradox ©

7. 7 Cause #1: Push strategy; Cause #2: Little interaction with the market; Cause #3: Opportunistic approach for project selection; Cause #4: Lack of experienced entrepreneur; Cause #5: Dysfunctional value creation chain; Cause #6: Dysfunctional financial community; Cause #7: Reactive governance; Cause #8: Short-term vision. The Business Paradox ©

8. trust 8 The Business Paradox ©

9. “Ultimately, most business will fail to create value as the leaders reject the importance of setting a trusting environment. Trust is the ultimate ingredient that enables people working together defining the critical path, identifying risk factors and assessing the main challenges. Considering those challenges will bring rapid alignment the deliverables, the priorities and create the momentum essential to value creation.” 9 The Business Paradox ©

10. 10 The Business Paradox ©

11. valuable Sustainable Attainable 11

12. MarketVisionDriversGrowthReadinessFamiliarity 12 The Business Paradox ©

13. Landscape The Clients (the prize) Partners (Friends or Foes) competition (the enemies) Market dynamics Gaps and strongholds 13 The Business Paradox ©

14. Business Strategy Time to Market The Food Chain BrandingPartnering Exit Planning 14 The Business Paradox ©

15. Product Need vs opportunity Core ValueValue PropScalabilityNext Gen 15 The Business Paradox ©

16. Competencies RelevancyTimingCommitmentPerformance Advisory 16 The Business Paradox ©

17. 17 The Business Paradox ©

18. Expensive Break-even ProfitableBreak-evenlosses 18 Creation Momentum Depletion Declining The Business Paradox © Acceleration

19. 19 VCO 1 VCO 2VCO 3VCO 4 Total value creation The Business Paradox ©

20.  Are the Basics checked?  Do we understand HOW to do the job?  Is the critical path defined?  The deliverables?  The risks?  The priorities?  Can we assemble the Right team?  The competencies?  The Attitude?  Can we go the distance (Cash & Time)?  Is the team aligned? 20 The Business Paradox ©

21. Only then you are ready! 21 The Business Paradox ©

22. Merci Jacques Denommee Directeur – Investments BDC Capital jacques.denommee@bdc.ca 22 The Business Paradox ©