MDB Firm Overview

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MDB Firm Overview

  1. 1. M A X I M I Z I N G T H E VA L U E O F D I S R U P T I V E T E C H N O L O G Y The IP Investment Bank S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T .
  2. 2. Disruptive Technology Focused, IP Strategy EnabledWe take an end-to-end approach to positioning, financing, and monetizing disruptive technology companies. Evaluate Disruptive Build Leadership Complete Support Post- Technologies Position Transaction TransactionPerform Rigorous Develop Effective Design Financing Proactively ConnectScreening Process Business Strategy Strategy Company & InvestorsConduct Expert Align IP Strategy Select Investors & Bolster InvestorTechnical Diligence to Business Execute Transaction Communications We start from the end and work backwards: Can this be a $1 billion company? How can we help it get there? S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 2
  3. 3. Our End-to-End Process in Action NASDAQ: CLIR Evaluate Disruptive Build Leadership Complete Support Post- Technologies Position Transaction TransactionFound start-up with new Advised on patent / Honed communication of Continuing to introducecombustion technology business strategy complex technology story to investors after IPOValidated technology Arranged $3M early Conducted US / Europe Providing researchwith industry experts stage private financing investor roadshow coverage to Wall StreetDetermined suitability for Helped recruit board Executed successful IPO, Consulting on IR /public venture banking and management raising $13.8MM PR matters “MDB Capital had both the vision to understand our innovations and the end-to-end process to help make that vision a reality.” Rick Rutkowski, ClearSign Combustion CEO S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 3
  4. 4. Our Integrated Teams We leverage cross-functional skill sets to support our end-to-end process. MDB Capital GroupPublic Venture Banking IP Development Services Capital Markets Pre-IPO Financings Invention Discovery Research IPOs IP Strategy Design Equity Sales & Trading Follow-On Financings Patent Filing Execution Post-Financing Marketing S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 4
  5. 5. Public Venture Banking IP Development Services Capital Markets Public Venture Banking We have taken six companies public through our Public Venture Banking process. Four of these have traded at market values over $1 billion.S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 5
  6. 6. Public Venture Banking Key Investment Criteria Public Venture Banking IP Development Services Capital Markets Our mission is to position and finance disruptive technology companies. Large Market Potential Target markets provide > $1 billion opportunities Unique Technology Can create a dominant IP strategy around the technology Early Validation Industry thought leaders believe the technology is feasible Visible Inflection Point Commercialization timeline is short and credible Fair Valuation Provides good risk / reward for investors and company S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 6
  7. 7. Benefits of Our Public Venture Banking Approach Public Venture Banking IP Development Services Capital Markets We view an IPO as an opportunity to launch a company. Traditional venture capital firms view an IPO as a way of cashing out. Traditional Venture Capital MDB Public Venture Banking Adversarial: VCs aim to depress valuation Valuation Collaborative: Early public entry aligns in future rounds, to maximize ownership % Process MDB with company to maximize valuation Expensive: VCs control cap table in future Long-Term Fair: MDB raises follow-on funds based rounds with anti-dilution rights Cost of Capital on public valuation Narrow: VC boards often focused on one Board Broad: MDB finds diverse board / industry, can miss platform opportunities Focus investors to identify new verticals Limited: VCs are just beginning to under- Understanding Expansive: MDB has deep experience stand impact of patent strategies of IP adding value with dominant IP strategies S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 7
  8. 8. Our Public Venture Banking Process Public Venture Banking IP Development Services Capital Markets A successful public financing is a process, not an event. Strengthen Business Design Messaging Execute FinancingRecruit and form world-class Simply complex technology Finance with common stockmanagement team and board for high-quality value investors to attract long-term investorsSimplify capital structure and Set forth roadmap for intellec- Find institutions who believe ineliminate debt tual property dominance company’s long term visionCreate path to industry Articulate plan to maximize Solicit marquee investors thatdomination with IP strategy valuation during development can add validation S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 8
  9. 9. Public Venture Banking IP Development Services Capital MarketsIP Development Services A dominant IP strategy can grow a small company with disruptive technology to a $1 billion enterprise value.S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 9
  10. 10. Dominant IP Strategies Public Venture Banking IP Development Services Capital MarketsOur mission is to create dominant IP portfolios that compel large companies to partner with or acquire our clients. Foundational Consider IP strategy from the outset of business planning Sizable Competitors can easily design around small portfolios Rapidly Scalable Move quickly to strike while technology is truly disruptive Never Ending Stay nimble by continuously capturing new innovations S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 10
  11. 11. Current Disjointed Patent Development Process Public Venture Banking IP Development Services Capital Markets Developing a dominant IP strategy requires cooperation from market, engineering and patent experts.Managers have market Inventors have engineer- IP counsel has patentexpertise, but may be ing expertise, but may be expertise, but is often a thirddistracted by managing siloed off from the rest of party that does not understandday-to-day operations the company business goals or engineering S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 11
  12. 12. The IPDS Difference Public Venture Banking IP Development Services Capital Markets We bring together diverse skillsets to develop dominant IP strategies hand-in-hand with the business.Our investment banking Our dedicated engineering PatentVest,® our proprietaryknowledge keeps business team enables rapid scaling patent database, providesstrategy at the forefront of large portfolios unique insights into IP landscapes S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 12
  13. 13. Intellectual Property Development Services Process Public Venture Banking IP Development Services Capital MarketsWe understand that IP strategy must follow business strategy. Discover Design Execute Work with company & Develop IP strategy and Draft patent applications experts to deeply understand innovation plan with with input from inventors, business opportunity inventors & management management & attorneys Develop fundamental Extract ew patents from Continuously fine tune understanding of inventions that have not yet IP strategy to generate technological differentiators been protected new inventions Analyze IP landscape to Generate new potential Protect against commodiza- discover areas in which inventions in lockstep with tion and copying by fast company can be dominant IP strategy followers S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 13
  14. 14. MDB’s PatentVest ® Public Venture Banking IP Development Services Capital Markets MDB’s proprietary PatentVest® database enables IPDS to offer exceptional value. Measures, scores, and ranks US patents by company and portfolio • Capable of identifying companies with hidden IP value • Able to produce patent landscapes to identify areas where innovation ROI will be highest Provides unique business intelligence • Parses data on over 4,000 public and private companies • Contains 4+ million US patent grants, and 2+ million US patent applications Supported by MDB Capital Group’s operations in Managua, Nicaragua • Over 20 highly qualified technical and legal support professionals • Over 75,000 man-hours invested S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 14
  15. 15. Public Venture Banking IP Development Services Capital Markets Capital Markets Research Equity Sales & Trading Post Financing Marketing We provide ongoing after-market support for investors and companies to enhance liquidity on the path to achieving $1 billion valuations.S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 15
  16. 16. Key Activities: Research Public Venture Banking IP Development Services Capital Markets We keep the market updated on a company’s progress against milestones. Research Equity Sales & Trading Post Financing Marketing • Disseminate information on less well-known disruptive technology companies to broaden investor awareness of the opportunity • Provide MDB perspective on how to best value disruptive technology companies • Traditional metrics such as revenues and earnings do not fully capture the value of a disruptive technology company • Disruptive technology companies increase in value when they achieve major milestones that reduce the risk of commercialization • The key underlying asset of a disruptive technology company is intellectual property S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 16
  17. 17. Key Activities: Equity Sales & Trading Public Venture Banking IP Development Services Capital Markets We provide liquidity to an inherently illiquid asset class. Research Equity Sales & Trading Post Financing Marketing • Build and maintain relationships with leading institutional investors • Partner with research team to understand key business drivers of client companies, and communicate material findings to investors • Discover when investors are considering taking profits or building larger positions in a client company’s stock • Emphasize block transactions between large buyers and sellers to create liquidity and avoid large swings in a stock’s market price S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 17
  18. 18. Key Activities: Post Financing Marketing Public Venture Banking IP Development Services Capital Markets We communicate a client company’s message early and often, to keep it fresh in investor’s minds. Research Equity Sales & Trading Post Financing Marketing • Partner with leading IR/PR firms to deliver a company’s message and news about its key milestone accomplishments • Maintain active dialogue between companies and investors who participated in the financing • Utilize MDB’s client relationships, annual Bright Lights Conference, and non-deal roadshows to help management teams reinforce existing investor relationships and develop new ones S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 18
  19. 19. SummaryS E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 19
  20. 20. Key Takeaways MDB understands how to maximize the value of disruptive technology companies. Evaluate Disruptive Build Leadership Complete Support Post- Technologies Position Transaction TransactionDiscover companies Develop business and Partner with high- Provide post-financingwith truly innovative IP strategies to com- quality investors who support by providingsolutions to large mercialize and protect believe in the compa- the market with infor-market problems those solutions ny’s long term vision mation and liquidity “It takes a team… of insightful, experienced, and daring investment pros to come up with not just stock winners but great super-stock achievers… MDB has taken a number of companies from conception valued at almost zero to a market value of $1 billion or more” Forbes Magazine “An Inside Look Into Spotting and Nurturing Potentially Super Stock Achievers” July 20, 2012 S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 20
  21. 21. Appendix MDB History The MDB Team Case Studies Recent TransactionsS E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 21
  22. 22. MDB History1997 Founded 1997 by Christopher Marlett and Anthony DiGiandomenico (5 total employees), focused on public venture Launched three technologies into the public markets via our public venture1997/03 process that all reached $250MM in market value, with and two reaching over $1B in market value2004 Began development of PatentVest2005/08 Launched two more public companies via our public venture process one exceeded $3B in market value and one exceeded $2B2008 Started development of integrated platform to launch micro cap technology companies2009 MDB discovers that companies with certain IP metrics significantly outperform market averages leading to decision focus on disruptive technology2010 2010 Firm transformed into “The IP Investment Bank” and launched 1st Annual Bright Lights Conference to focus on companies with disruptive technology S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 22
  23. 23. MDB Team: Executive Management Christopher Marlett Chief Executive Officer & Co-Founder Anthony DiGiandomenico Head of Investment Banking & Co-Founder Robert Clifford Head of Capital Markets Gary Schuman Chief Financial Officer & Chief Compliance Officer Daniel Nagy, CFA Head of Fixed Income Research & Trading Sarah Barney General Counsel S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 23
  24. 24. MDB Team: Public Venture Banking Anthony DiGiandomenico Head of Investment Banking Cary Hurwitz Managing Director Daniel Landry Managing Director Robert Levande Sr. Managing Director Jeff Sun Managing Director Amy Wang Managing Director S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 24
  25. 25. MDB Team: IP Development Services Erin-Michael Gill Adam Holiber Chief Intellectual Property Officer Director of Business Development, IPDS Jose Algaba Oscar Chow Project Supervisor Project Supervisor Alenka Bendana Ramon Eyzaguirre Intellectual Property Analyst Intellectual Property Analyst Jacqueline Bermudez Alejandro Marin Intellectual Property Analyst Intellectual Property Analyst Alejandro Borge Ivan Montero Intellectual Property Analyst Intellectual Property Analyst Marcos Cajina Yessica Morales Intellectual Property Analyst Intellectual Property Analyst Alejandro Delgadillo Javier Penalba Intellectual Property Analyst Intellectual Property Analyst Laura Espinoza Veralia Sanchez Intellectual Property Analyst Intellectual Property Analyst S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 25
  26. 26. MDB Team: Capital Markets Robert Clifford Head of Capital Markets George Brandon Managing Director Kevin Cotter Managing Director Todd Ressler VP, Equity Sales & Trading Michael Cullen Equity Sales & Trading Alex Zapanta Equity Sales & Trading Donald Montenegro Roadshow Coordinator Rodrigo Pallais Roadshow Coordinator S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 26
  27. 27. MDB Team: Research Ankur Desai Director of Investment Research David Byrne Chief Software Architect – PatentVest Scarlett Hooker Research Associate Ana Jimenez Research Associate S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 27
  28. 28. Case Study: Medivation NASDAQ: MDVN Start up company with three employees that had licensed technology for Challenge: the treatment of Alzheimer’s disease. Company unsuccessful in raising material amount of capital to enter clinical trials. • Repositioned company as a “virtual” pharmaceutical company that creates value with promising compounds in a focused “capital light” strategy. MDB Delivered: • Successfully crafted and communicated unique company strategy. • Completed reverse merger with $14MM financing. Market value increased from $10MM to over $400MM in less than 24 Results: months, and now has a market cap over $3.6B. S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 28
  29. 29. Case Study: VirnetX NASDAQ: VHC Commercialize and protect valuable patent portfolio to provide solutions Challenge: for secure real-time communications such as instant messaging and voice over internet protocol. • Identified source of unique IP, established working relationship with IP holder (SAIC) and negotiated IP licenses and assignments. • Recruited CEO. MDB Delivered: • Co-authored business plan. • Co-founded private company. • Arranged reverse merger into public company tied to $4.5MM financing. Market capitalization reached market value of over $200MM less than 24 Results: months from founding, and is now over $1.2B. S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 29
  30. 30. Case Study: UniPixel Displays, Inc. NASDAQ: UNXL Uni-Pixel, Inc. is a production stage company delivering superior perfor- mance engineered films to the touch screen, flexible electronics, and light- Challenge: ing and display markets. Company was pre-revenue with 2 months cash and 3.1 million in convertible notes maturing in 2 months. • Advised company on recapitalization and restructuring of company equity and debt. • Advised company on new strategy to focus on flexible touch screen technology. MDB Delivered: • Lifted company from OTC.BB to NASDAQ Capital Markets. • Executed financing to raise $17.25MM including over allotment • Actively covering with research reports and introducing to investors post financing. Results: Maintained stable market value during pre-revenue development phase S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 30
  31. 31. Case Study: Parametric Sound Corporation NASDAQ: PAMT Parametric Sound Corp. developing a unique directional sound technology Challenge: but lacked IP and business strategy as reflected in market valuation. • Advised company on recapitalization and uplisting from OTC to NAS- DAQ listing. • Advised company on new strategy to focus on an IP licensing strategy in the multiple verticals in the audio industry. MDB Delivered: • Served as intermediary between company and new executive chair to negotiate employment terms. • Executed financing to raise $9.24MM. • Actively covering with research coverage and introducing to investors post financing. Results: Market valuation doubled less than 4 months after financing. S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 31
  32. 32. Case Study: ClearSign Combustion Corporation NASDAQ: CLIR Start up company with an inventor and two full-time employees that had developed unique combustion technology. Company needed startup Challenge: capital to recruit team, conduct R&D, and file additional patents, and posi- tion company for successful IPO. • Raised $3M in private funding at early stage of company. • Advised company on patent and business strategy in the combustion industry. MDB Delivered: • Advised and helped recruit board member and CTO for company. • Advised and organized due diligence call with panel of industry experts. • Executed successful IPO raising $13.8MM. Market valuation more than doubled within weeks of initial public Results: offering; company was recently featured in Forbes. S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T . 32
  33. 33. Headquarters New York Managua 401 Wilshire Boulevard 1350 Avenue of the Americas Embajada de Mexico, Suite 1020 2nd Floor una cuadra arriba,Santa Monica, CA 90401 New York, NY 10019 a la esquina, casa #100 310.526.5000 310.526.5000 Managua, Nicaragua 310.526.5000 The IP Investment Bank Member FINRA/SIPC SS EE E II N G E N G V A L U EE V A L U OOT TH H E R S D D O N O T . T . E R S O N O C R E A T IR N A T IVNAG L V AE L UOE T O T HRE SR S C C ANN N O T . . C E G U H E A N O T 33

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