The document summarizes the funding history of Atlas Genetics, a diagnostics company. It received seed funding of £1M in 2005, Series A funding of £2M in 2007, interim funding of £0.5M in 2009, and Series B funding of £18.5M in 2011 from investors including Novartis Venture Funds and J&J Development Corp. The company approached both European and US VCs for funding and was eventually able to build a syndicate including major diagnostic and pharmaceutical companies to fund its product development and launch.

1. John Clarkson, CEO
Venturefest, Bristol 2011
Contact:
john.clarkson@atlasgenetics.com

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

3.  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

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

5.  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

6.  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

7.  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

8.  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

9.  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

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

11.  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

12.  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

13.  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