Private Equity (Venture) in 90 seconds

1. Private Equity (Venture) in 90 seconds • The entrepreneur’s view of VC

2. Private Equity (Venture) in 90 seconds • The VC’s view of VC

3. Private Equity (Venture) in 90 seconds • The research institution’s view of VC

4. Private Equity (Venture) in 90 seconds • The attorney’s view of VC • VC syndicate will put $20-50+MM at risk for 5-7+ years to get 5-10X return (but 80% of the time they lose their shirts) • VCs demand an academic license broad enough to cover all therapeutic indications but want to pay reagent prices • Growing concern about the strategic value of university-IP, but they still want it • The second most important aspect of a university license is the ability of the newco to do early, high-value retention deals with pharma

5. What a VC would like to see in an academic license • Apportionment • Assignability • Field (broad) • Founder involvement and retention • Improvements (did you hear pipelining?) • Patent coverage • Pharma-friendly economic terms (generics/biosimilars, royalties)

6. Differences: Corporate VCcf. Institutional VC • Complementary with existing corporate programs vs. alignment with rest of portfolio • Corporate VC must keep in mind broad interests of shareholders vs interests of LPs • Level of governance • Level of risk-takingvs need for high IRR • Level of risk? Daunting in view of decade-long drought /famine

7. Why Corporate VC? • Additional avenue of contract consideration • Seat at board table (often observer) • Opportunity for payout downstream • Research/business dichotomy of large pharma • Depends on resources of the large pharma

8. Dr. Gold (at least 14karat) • A round capitalization ($15MM @ 5MM pre): 15% Gold, 6% UoP, 2% UoA, 2% Angels, <1% crowd-source, ~75% VC • B round ($25MM @ 25MM pre): 7.5% Gold, 3%UoP, 1%UoA, 1% Angels, <<1% crowd, ~78% VC • C round (25MM @ 50MM pre): 5% Gold, • 125MM exit + 125 in earn-outs. Gold clears 6.25MM+