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Biotech startup life cycle (proteus 2008)

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Biotech startup life cycle (proteus 2008)

  1. 1. Biotech Start Up Life Cycle Founders Growth Investors Large Pharma• Technical Founders • Venture Institutions Acquired• Universities/Academia • Corporate VCs• Large Pharma • Hedge Funds $ Acquisition Intellectual Property Growth Capital Biotech Start Up Maturing Biotech Capital Start Up Capital Expertise Contacts Public Capital Seed Investors Venture Investors Public Investors Independent Public• Family & Friends • Venture Institutions • Mutual Funds Biotech• Angel Investors • Corporate VCs • Hedge Funds• Government Grants CONFIDENTIAL 1
  2. 2. Valuation/Dilution Cascade +  Start Up Founder Seed Investors Value = $3 Million IP/Idea Seed Capital Founder: 33% Value = $1 Million $2 Million Seed Investors: 67% Capital spent to advance drug candidates Start Up Value = $24 Million Start Up +  Founder: 13% Seed Investors: 25% Value = $9 Million Venture Investors Venture Investors: Founder: 33% Series A Capital 62% Seed Investors: 67% $15 Million Founders Stake has been diluted 100% to 13% in two rounds BUT Value has increased $1 Million to >$3 Million CONFIDENTIAL 2
  3. 3. Assets and Needs of Biotech Companies byStage Concept/ Infancy Adolescence Maturity Gestation • Idea • Company founded • Growing company • POC data • Some relevant • Idea advancing • Idea/intellectual • Growing pipeline technical/manageme • Clear development/ property progressing • Lead candidates in nt expertiseAssets implementation plan • Clinical data Phase 2/3 • Seed capital in place • Supportive VC • Corporate investor base organization with strong management • Capital • Capital to fund • Capital to fund later • Even more capital • Structure advancing programs stage/larger trials • Liquidity for founders • Management • Governance • Proof of concept data and VC investorsNeeds • Entrepreneurial • Additional expertise expertise • Contacts • Structure CONFIDENTIAL 3

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