Entrepreneurship 101 - Building a Pitch

hey buddy, can you sparea $100 million?

how to convincesuccessful financiers to give you

millions of dollars in a projectdoomed to fail!

or

Michael PolonskyApril 23rd, 2008

I love love loveentrepreneurs life sciences canada

high quality information

Where we start

generates longlasting, defined,effective, profitablerelationships

power of a narrative

which came first?

hungerno hunger … no plot … no one cares

Coronary Heart Disease

oneNumber

killer!20%of all deaths

B R E A K I N G T H R O U G H

FORTUNE MARCH 22, 2004

2


Wet AMD

> Online Retail’s Biggest Challenge

Too much window shopping and not enoughsales!

$61 billion is spent driving online traffic

evidence evidence evidenceremember: high quality information


50 YEAR CANCER BARRIER

Heart disease

Cancer

600

500

400

300

200

100

0

1950 1960 1970 1980 1990 2002

Age-adjusted death rates per 100,000-population

FORTUNE CHART/SOURCES CDC3

Top 3 drug categories

$ 1billion+

Cytostactics(Cancer)

Antiulcerants(GI tract)

Cholesterol &triglyceride

reducers

World’s Largest Drug Market

5 drugs over

$23.8B

$25.5B

$30.2B

the billion dollar slide

No one invests in hyper growth stories to double their money

“you have to show them the 10 bagger” - Michael Denny

54 millionlow HDL

Americans with

There are

> Imagine You are an Investor

Revenues $1M-$250M

Revenues <$500K

Sitebrand’sTargetMarket

Revenues $250M-$5B +

<250Enterprise

15,000Mid-market

85,000Small Business

Infor

In-house IT

Omniture

Axciom

Certona

at last, your passion…

valueproposition

solution to hunger

value“if only they understood me”

evidence evidence evidenceremember: high quality information

20

Our Customers: Leading U.S. HospitalsOur Advanced Neuro-Diagnostic Instruments are used in over 1,300hospitals in the United States including 6 of the top 10 Neurology andNeurosurgery Hospitals

Neuradiab Survival Data

Clinically compelling difference

42%

1980to

2004

2005

91Surgery + Radiation + Temozolomide + Neuradiab

Surgery + Radiation + Temozolomide

Surgery + Radiation

Survival in weeks

75604515 30 105900

weeks

21

64weeks

53weeks

CRD5 Rapidly Increases HDL

Crestor(Statin)

Niacin - ERCRD5Poorly toleratedLow market share

Levels still rising Non-optimized formulationHealthy volunteers

% in

crea

se in

HD

L

Expanding Clinical Benefit

30

(Source: OGY 07)

No drugs approvedSurgerychemo

OvaRex® MAb extendstime to relapse

13months

Watchful waitingFrontline

TumorBurden

CA 125Level

Months 0 6 16

OvaRex MAb

Relapsediagnosed

10

Initiate OvaRex®

MAb therapy

complete responses

25%

four doses of Proxinium™ complete tumor response

complete responses

25Focused on growth and profitability

0

5

10

15

20

25

30

35

40

45

2002

Revenue EBITDA and EBITDA margin

2003 2004 20050

1

2

3

4

5

6

8

10

2002* 2003 2004 2005

7

9

25

$1.3

$2.9

$4.9

$9.4

93%CAGR

$10.7$15.0

$24.0

$44.6

62%CAGR

12%

19%

20%

21%

$ CD

N m

illio

ns

$ CD

N m

illio

ns*adjusted for allocated costs

Growing faster than the industry average

competitive landscape

be honest/humble - don’t be cavalier

In all likelihood, the person across from you

a) has an opinion

b) knows more than you

respect other interpretations of the truth

don’t forget

milestones

request for cash

current shareholders

financings to date

IP

Milestones

Q3 2005 Q4 2005 Q1 2006

X

X

X

X

X

X

U.S. sales partner

Installed in 25 U.S. hospitals

Initiate studies for expanded indications

Initiate North American multi-centre trial

Initiate combo trial with multi-national partner

File for Canadian and European approval

SPY System

OPTTX System

Exendin-4 Albumin Conjugate: Next Steps(PC-DAC™:Exendin-4)

One month multi-dose Phase I/II trial

Investment Opportunity

– Launchingcommercial platform

– Expanding contentpartnerships

– Developingmolecular tests

– Scaling qualitymanufacturing

Seeking

in financingto drive thebusinessforward

$ million51

closing thoughts

show alittle leg …

speed dating

… move on

…transacts!generatingearnedattributes

TALKlike a person

be authentic!

STOPthe bullshit

how do you get to Carnegie Hall?

100%of zero is zero

dilution

Think

big!!!

communications matter

what is a presentation

?

general specific

objective

350 employees

75 key accounts

Business plan

Momentum

Overcome obstacles

95,000 square feet

8 products

Competitive advantages

Mission

Vision

Values

logo

Track record

Chief financial officer

Strengths

Opportunities

Expert board

Awards

Growth strategy

Organizational chart

Money in the bank

Features and benefits

VC shareholders

Website

Audited statements

Something big coming

Media coverage

Revenue model

Acquisitions

Nice boardroom

Technology

Intellectual property

7 years of hard won memories

You got 45 minutes: on you mark, get set, go …

leave an impression

On June 4 1940, Winston Churchill delivered a 45 minute speech, commonly known as “We shall fighton the beaches”, to the House of Commons of the British Parliament. It was a great inspiration to anembattled United Kingdom as it entered what was probably the most vulnerable phase of the entire war.Public opinion for the war effort was waning in the face of devastating losses and a formidable enemy.Churchill encouraged a country to keep fighting in 45 minutes.

how do you encouragesomeone to give you $10M in

45 minutes?

general specific

keep it high level don’t DROWN in DETAILkeep it clean

tip (not rule) no. 1


?

350 employees

75 key accounts

Business plan

Momentum

Overcome obstacles

95,000 square feet

8 products

Competitive advantages

Mission

Vision

Values

logo

Track record

Chief financial officer

Strengths

Opportunities

Expert board

Awards

Growth strategy

Organizational chart

Money in the bank

Features and benefits

VC shareholders

Website

Audited statements

Something big coming

Media coverage

Revenue model

Acquisitions

Nice boardroom

Technology

Intellectual property

7 years of hard won memories

You got 45 minutes: on you mark, get set, go …

I lied.

You actually only get 23 minutes.

Marathon 100 metres

NOW!

huh aha

(rapid transfer)

are created equal

NOT allpoints

All points are equal

• Interesting point but not really relevant• Uninteresting point but relevant• Major, earth shattering, earth quaking point• Interesting corollary perspective• Necessary background point• Interesting-but-dude-is-now-sleeping point• Because-I-love-the-sound-of-my-voice point

Flowers are red young manGreen leaves are greenThere's no need to see flowers any other wayThan the way they always have been seen

Harry Chapin(Flowers are Red)

The point

Big bigbigsupport

additional support

additional support

additional support

The point

Big bigbigsupport

additional support

additional support

Underlying takeaway message

The point

A


B C

The point

A


B C

1 2 3

But the little boy said...There are so many colors in the rainbowSo many colors in the morning sunSo many colors in the flower and I see every one

Harry Chapin(Flowers are Red)

Not the curmudgeon.

Be the boy!

GRID it to GREATthink about emphasisthink about scalethink about priorities



?

20-30 slides

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the great ones are more than a series of slides

power of a narrative


?

story1

don’t come up flatthink about structure


Complexity/quantity Time constraints Durable goals

right information rapidly transferred High impact/recall

don’t drown in detail grid it to great don’t come up flat

recommended reading

made to stick

presenting to win: the art of telling your story

hard workdigging deep

doing better


wimps/settlers need not apply

if I had only one slide

need expressed: hunger

need addressed: value proposition

market opportunity: greed

thank you

Entrepreneurship 101 - Building a Pitch

Economy & Finance

Transcript of Entrepreneurship 101 - Building a Pitch