The document discusses lessons learned from being an entrepreneur over 30 years in the diagnostics and life science industry. It covers the challenges of startups, including that 60% of companies fail within 6 months, 82% fail by 10 years, and 90% of new products fail. Key lessons are to use a consistent process to assess progress, understand exit plans, have clear roles, be honest with expectations, and hire only the best people. It also discusses the technology development cycle and importance of cash, partnerships, communication, embracing change, and good management.

1. Lessons Learned as an Entrepreneur

2. 2

3. Agenda
A little about Rocky and past experiences
Some facts about start-ups
Axela Today
Product Life cycle
Tools I have found useful over the years
Axela early days
How we transitioned
Lessons learned
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4. Over 30 Years
Diagnostics & Life Science Industry
Rocky’s Personal Perspective
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5. Rocky’s History
• Technicon Labs
• Becton Dickinson
• Third Wave Technologies (TWTI)
• Genomic Utilities Inc
• Axela Inc
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6. 60% Of Companies Fail, First 6 months
82% Fail by 10th Anniversary
90% New Products Fail
The average CEO life is 2.5 years
Statistically and for someone to be successful multiple
times in succession is hard (if not impossible)
I Have not adjusted these numbers for the lack of capital
in Canada today…..it is likely worse
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7. Enabling Leader in Personalized Medicine
Build Leadership in …For Tomorrow’s
Research Tools & Clinical Research… Personalized Diagnostics
Significantly improve Capitalize on game changing Leverage proprietary
efficiency of post methods for interpreting technology advantages to
discovery biomarker biomarkers (DNA, RNA and deliver novel diagnostics
assay development proteins) in health research
and validation
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8. Proprietary & Complementary Proprietary High Margin
Instrument Platforms Consumables
Ziplex® System Content
Leverage Across
Platforms
dotLab® System Menu, Content and Panels
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9. From April 2003
To Today
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10. > 150 Patents and applications
Core Diffraction IP
Consumable Design
Disease Specific IP
Incremental Diffraction IP
Manufacturing Methods
Signal Amplification
Multiplexing Technology
Others: Johns Hopkins, Proteome Sciences, Large Tech Company,
VWR, CREA Brazil, Many others
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11. Key events in the history of Axela
• Company founded 2001 by Cynthia Goh
• Seed funding from Primaxis and Royal Bay Capital
• 2003 I was recruited from the states to run Axela
• Later stage funding support from VenGrowth
• 2004 the first prototypes systems developed
• Late 2005 Major in-licensing deal with K-C
• 2007 in-licensed multiplexing IP from Beckman
Coulter
• 2010 Amalgamated Axela and Xceed Molecular
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12. Use a consistent process to assess progress
Understand where and when you exit ahead of time
Have clear role definition
Be honest with yourself and others relative to
expectations
Hire only the best…… and LISTEN!!
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13. Competing Modalities Competing Applications
Scientific
Research
Technical
Development
Commercialization
Intensity of Effort
EMK, Internal
SBIR,
Developmen
NIH
Research
t
University Contract
-Research-
Time
Discovering Proving and Learning Committing
• Technological discontinuity • Emergence of viable
-Risk Reward not understood applications • Selection of dominant design
• Intellectual property • Creating industry structure
• Convergence of independent • Market concepts • Claiming intellectual property
streams of know-how • Licensing/Acquiring synergistic technologies
-Bio-Chemistry
-Engineering
Competing
• Increasing rate of competitive entry
-Software • First mover advantage
• Triggers of shakeout
Based on Model developed by Prof. William Hamilton 13

14. Emerging Technology Development
TECHNICAL COMMERCIAL
DEVELOPMENT APPLICATION
RELATIVE IMPORTANCE
SCIENTIFIC
RESEARCH
TIME
SCIENCE TECHNOLOGY COMMERCIALIZATION
PHASES OF TECHNICAL ADVANCE
RESEARCH DEVELOPMENT PRODUCTION MARKETING
TIME
PROGRESSION OF ACTIVITIES IN THE INNOVATION PROCESS
Based on Models developed by Prof.
William Hamilton 14

15. Emerging Technology Development
TECHNICAL COMMERCIAL
Discovery DEVELOPMENT APPLICATION
• Technological discontinuity
RELATIVE IMPORTANCE
-Risk Reward not understood
SCIENTIFIC
RESEARCH
• Convergence of independent
streams of know-how
-Chemistry/Biochemistry
-Engineering
-Software
TIME
SCIENCE TECHNOLOGY COMMERCIALIZATION
PHASES OF TECHNICAL ADVANCE
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16. Emerging Technology Development
Competing TECHNICAL COMMERCIAL
DEVELOPMENT APPLICATION
Proving and Modalities
Learning
RELATIVE IMPORTANCE
Competing
SCIENTIFIC Applications
• Emergence of RESEARCH
viable applications
• Intellectual property
• Market concepts
TIME
SCIENCE TECHNOLOGY COMMERCIALIZATION
PHASES OF TECHNICAL ADVANCE
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17. Emerging Technology Development
TECHNICAL COMMERCIAL
DEVELOPMENT APPLICATION Committing
• Selection of dominant design
• Creating industry structure
RELATIVE IMPORTANCE
SCIENTIFIC
• Claiming intellectual property
RESEARCH • Licensing/Acquiring synergistic
technologies
• High levels of $$$ commitment
Competing
• Increasing rate of
competitive entry
TIME
• First mover advantage
• Triggers of shakeout
SCIENCE TECHNOLOGY COMMERCIALIZATION
PHASES OF TECHNICAL ADVANCE
RESEARCH DEVELOPMENT PRODUCTION MARKETING
TIME
PROGRESSION OF ACTIVITIES IN THE INNOVATION PROCESS
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18. Early Challenges
• The single largest challenge is CASH
Dictates where you can go, how fast you can get
there
• The world economy has made this harder
• Decide what you HAVE (not WANT): a
technology, product, or company
• Align CASH with Exit
• Align management, investors and market
opportunity
• Things can change, re-alignment is not easy
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19. • I should write a book called “Angel turned Devil”
• Third wave example
• Axela Example
• Take away:
• Early capital has higher potential risk, higher
potential gain but it has even less odds of paying
out unless the business strategy is aligned with
investment strategy
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20. • Founder/CEO
• Publish vs Profit
• Individual discovery vs corporate asset
• Deal with serial inventor/founder vs serial entrepreneur
• Expectation creation is important
• As the company’s domain expertise shifts;
• Does the hand off between inventor and company get
easier or more complex?
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21. Later
• Everyone has a shelf life and a moment of
strength
• Understand it, plan for it, and make changes
when needed
• This is very hard especially when it is yourself
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22. How You Try to Change the Odds?
Understanding how important communication is
Failure is inevitable; understand it; scar tissue is
important
Change is constant; embrace it
Always seek to know what you don’t know
The importance of passion alignment
Partner, Partner, Partner
What Ever you do:
• “Don’t’ Run Out of Money”
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23. • In the book the world is flat
• Small companies will act large
• Large companies will act small
• The two things that kill deals is time and greed
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24. • Cash is king!!
• Which is harder the first $20 Thousand or the last $20
Million?
• When they pass the cookies take some, no matter
what it costs
• Balance the single dominant investor value
• Always be ready to learn
• Understand your own limits
• Strong and critical board is as important as good
investors
• Good management wins over good technology
• Be honest with yourself, your fellow employees, and your
investors
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25. Start-Ups
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