RINASCIMENTO Emerging Industries: a New Engine for Growth

1. Experiences in attracting investment
Paulo Ferreira dos Santos
Chief Executive Officer
T. (+351) 22 096 4700
p.santos@kinematix.pt
www.kinematix.pt

2. Real Time Movement Analysis
Kinematix designs and develops intelligent devices
that extract knowledge from movement and posture

3. PRODUCTS PORTFOLIO & APPLICATIONS
Orthotics & Prosthetics Clinics Orthotics & ProstheticsManufacturerHospitals, Nursing Homes, Home Care s

4. Paulo Ferreira dos Santos
Co-Founder CEO, Director
Joe Ternullo
President U.S., Director
Paulo Ferreira dos Santos
Co-Founder CEO, Director
Lesley Macherelli
Vice President U.S.
Jorge Pinto
Chief Development Officer
Joe Ternullo
President U.S., Director
Pedro Silva
Chief Technology Officer
Vincent van der Pas
European Marketing & Sales
Manager
Jay B. Pieper
Chairman of the Board
José Manuel Mendonça
President, INESC TEC
Heitor Benfeito
Senior Analyst, Portugal Ventures
Key Management
Board Member

5. Sector
Medtech
Based
Portugal, UK & US
Offices
Netherlands
Certifications
ISO 9001, ISO 13485, FDA, CE Mark
Patents
4 Filled
Employees
24
Revenue Range
€0-2 million
Funding to Date
€5 million
Current Investors
Portugal Ventures
Next Funding Stage
Series C

6. FUNDING STORY
2007
• €230k from shareholders and seed capital investor
2008
• June: closed a deal with VC: €535k + more money from founders
2009
• August: last payment of the round
2010
2011
2012
• Until April 2012: 15 loans (investor and founders) – drip feeding
• Total investment: €1.8 million
• VC owns ~76% of the investment … and and also from the company
2013
• Re-investment and re-structure of the model:
• Total investment: €3.7 million
• VC owns ~85% of the investment … but only 45% of the company
2014
• VC provides a €1.5 million credit facility to give time to attract another
investor

7. CHALLENGES FACED
• Difficult to attract VCs to invest in industrial startups, mainly in advanced
technologies … as they find them risky
• Specific challenges in the health sector (time to market, reimbursement policies,
complex regulatory, overprotection of the established players, etc.)
• To be competitive with electronic devices is necessary to achieve production
volumes … but in healthcare the initial scale is small
• We have been involved in some EU granted projects… but the pace and
management of these projects don’t give good help
• Many of the VCs and BAs in EU raise money from EU programs with very strict
rules that often don’t match startups needs and potential

8. CHALLENGES FACED
• Difficult to convince investors from other countries due to the regulatory and
taxes differences between countries
• Lack of competitive taxes incentive for private investment in startups, like
happens in the USA … for the VCs but also for the entrepreneurs
• Lack of people in the VCs with real and field experience in startups
• Lack of champions that can serve as startups’ promoters and interface with
investors (e.g. Stanford University role in Silicon Valley)
• Similar startups on the same stage from USA get on average 3 – 5 times more
money in all investment stages … and develop markets faster as they have
domestic efficiencies compared with European Union

9. WHAT WOULD NICE TO HAVE?
• More private money and less public
• More taxes incentives and less subsidies
• Umbrella for VC contracts and taxes incurred to increase competition
between investors and startups from different countries
• Incentives for consortia of investors from different countries to
leverage higher investments and split risks in the investment on
industrial startups
• Re-frame EU grants to increase the incentive for universities and R&D
institutes for championing startups … instead of dealing with
comfortable programs
• Build a European micro and small cap stock exchange market, to
generate other investment alternatives

10. WHAT CAN BE EXPECTED OF GOOD FUNDING AND GOOD STARTUPS?
IT’S ALL ABOUT JOBS, GROWTH, VALUE GENERATION AND
COMPETITIVE BUSINESS ADVANTAGE

11. OCTOBER 27, 2014 | SLIDE 12
Improving human movement through sensing
technology
Paulo Ferreira dos Santos
Chief Executive Officer
T. (+351) 222 010 752
p.santos@kinematix.pt
www.kinematix.pt