Venturefest Bristol 2011, John Clarkson,

John Clarkson, CEOVenturefest, Bristol 2011Contact:john.clarkson@atlasgenetics.com

Seed Series A Interim Series BFunds £1 m £2 m £0.5 m £18.5 mDate 2005 2007 2009 2011Milestones Product Prototype Clinical validation Transfer to concept development manufacture, Product launch and menu expansion

 Seed ◦ University of Bath, YFM, private investors (SWAIN) Series A ◦ YFM, Braveheart, private investors Interim ◦ YFM, private investors Series B ◦ Novartis Venture Funds, J&J Development Corp, LSP, BB Biotech, Consort Medical plc, private investors

 Seed ◦ Ordinary (EIS qualifying) Series A ◦ Investor (EIS Qualifying plus exit pref) & Pref Interim ◦ Investor & Pref Series B ◦ Investor and Series B Pref

 Most rapidly growing segment of the diagnostics market Experienced management team and board ◦ Diagnostics industry experience: J&J, Siemens, Osmetech, Axis Shield ◦ Successful delivery of similar projects: product launch, licensing, trade sale Major problems being addressed ◦ slow speed of diagnosis; falling GP revenues Significant product benefits, well protected IP Convincing and demonstrable milestones completed – external clinical validation at JHU £1.6m TSB grant for core product development Raising £2m for end 2010

 Approached European and US VCs during Q1 & Q2 2010 ◦ European: interest. Good contacts through IN3 Europe. Funding insufficient to take the company to product launch in US – raise more ◦ US: no interest: too little money, too far away

 Approached European and US VCs during Q1 & Q2 2010 ◦ European: interest. Good contacts through IN3 Europe. Funding insufficient to take the company to product launch in US – raise more ◦ US: no interest: too little money, too far away Approached diagnostic/medical companies: OCD (J&J), Novartis Vaccines & Diagnostics and approached by Consort Medical from July 2010 ◦ Interested, particularly Consort Medical

 Approached European and US VCs during Q1 & Q2 2010 ◦ European: interest. Good contacts through IN3 Europe. Funding insufficient to take the company to product launch in US – raise more ◦ US: no interest: too little money, too far away Approached diagnostic/medical companies: OCD (J&J), Novartis Vaccines & Diagnostics and approached by Consort Medical from July 2010 ◦ Interested, particularly Consort Medical Contacted by Novartis Venture Funds (NVF) and J&J DC in August/September 2010

 Approached European and US VCs during Q1 & Q2 2010 ◦ European: interest. Good contacts through IN3 Europe. Funding insufficient to take the company to product launch in US – raise more ◦ US: no interest: too little money, too far away Approached diagnostic/medical companies: OCD (J&J), Novartis Vaccines & Diagnostics and approached by Consort Medical from July 2010 ◦ Interested, particularly Consort Medical Contacted by Novartis Venture Funds (NVF) and J&J DC in August/September 2010 Term sheet with NVF in December 2011; Used JP Morgan meeting to build syndicate. J&J DC joined Feb 2011; completed July 2011

 Changed business plan: more dilution ◦ £18.5m vs. £2m – bigger, better and more realistic plan. Less financial risk, exceptionally strong syndicate = better exit

 Changed business plan: more dilution ◦ £18.5m vs. £2m – bigger, better and more realistic plan. Less financial risk, exceptionally strong syndicate = better exit Series B prefs dominate ◦ Negotiated better terms for Ordinary shares

 Changed business plan: more dilution ◦ £18.5m vs. £2m – bigger, better and more realistic plan. Less financial risk, exceptionally strong syndicate = better exit Series B prefs dominate ◦ Negotiated better terms for Ordinary shares One early investors wanted to exit ◦ Negotiated share sale to series B investors

 Network ◦ Cold call will never work, but investor conferences might; better to be introduced by a trusted intermediate Power point Business plan: short and sweet. ◦ Management, market, product, finance Get a meeting Make the investors comfortable with the team Find a contact you can contact ◦ Someone who will feel guilty if they don’t respond Persist ◦ And find someone you can complain to

Venturefest Bristol 2011, John Clarkson,

by Science City Bristol on Nov 16, 2011

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