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Presentation by Steve Scott, Lorna Neilson, Mary Canady, and David Welch at the San Diego Biotechnology Network's Bootstrapping Biotech event October 29th 2009.
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Bootstrapping Biotech
Bootstrapping BiotechWifi Password: tanguero
Presentation: http://sdbn.org/bootstrap
October 29th, 2009 SDBN Networking Event
Bootstrapping Biotech
~60 min. presentationInterrupt at any time
http://sdbn.org/bootstrap Presentation & ResourcesVideos of eventList yourself!
What is Biotech?Area Products Customers Examples No. in SD
County*Biotech/Pharma Therapeutics Investors/Partners,
ConsumersAmylin, Intellikine
133
Life Sciences Research Tools & Services
Research Scientists Invitrogen, Millipore
278
Medical Device, Diagnostics
Point of Care Tools or Tests
Clinical Researchers BioSite 74
Biotech/Ag Biofuels, Food & Consumer Products or Additives
Investors/Partners, Consumers
Sapphire Energy, Verenium
53**
*Data from Biocom’s Product Database**Additional data provided by CleanTECH San Diego
val⋅ue /ˈvælyu/ noun, verb1. relative worth, merit, or importance: the
value of a college education; the value of a queen in chess.
2. monetary or material worth, as in commerce or trade: This piece of land has greatly increased in value.
3. the worth of something in terms of the amount of other things for which it can be exchanged or in terms of some medium of exchange.
Value
CreateGetting fundingWhat is your product?
CommercializeFinding & protecting technologiesTurning products into profits
CommunicateWho cares?
Steve Scott
CEO of Technology Acquisition GroupOver 25 years leading companies to the next level. Frequent Interim CEOSix acquisitions, 3 turn arounds14 boardsLaunched over 220 products300 million raised Twitter: Steve [email protected]
Lorna NeilsonFounder and Principal, inGENEuity Life Science Group, LLC
Ph.D., Molecular BiologyOver 17 years in Biotech/Life Science Industries
Corporate & Business Development, Licensing, Marketing, R&D
– Large and small public companies and start-up private companies» Applied Biosystems, Invitrogen (now Life Technologies),
Sequenom, GeneFormatics, Reprogen, Isis Pharmaceuticals
Certified Licensing ProfessionalServed on several M&A due diligence teamsLead negotiator/ integration leader for company acquisition by Invitrogen
Mary Canady
Founder & Principal, Comprendia LLC & SDBN
10 yrs at bench & computerHighly technical structural biology research
9 yrs marketing & business developmentLarge (Invitrogen, Calbiochem/EMD) & small biotech/life science
Social mediaEstablished biotech & scienceBlogger/microblogger, thought leader
David WelchWritten, directed, and produced more than two hundred films, videos, and commercialsBroadcast-quality presentations cover all three sectors of biotechnology and have focused on:
immunotherapies, Alzheimer’s, MS, various cancers, cellulosic ethanol and biofuels, malaria, transgenic seeding and genetically enhanced farming methods, gene silencing, and animal viruses
First Place honors for several biotech videos in major national film contests. Jim Greenwood, CEO of the Biotechnology Industry Organization, calls David Welch “one of the best in the business when it comes to telling biotech’s story.”
Give Me MoneyPresentations which Attract
Investment
Tell Them What They Want to Know
Steve Scott, CEO, Technology Acquisition Group
Bio-BMonitoring with Style
San Diego, CA
Problem – Crippling Costs
ResearcherLack of Quick Subject IdentificationHigh cost: estimated 25% of staff timeLoss of sensor and data stream
ResidentDesire for individual styles
The Problem
What pain does your solution solve?How big is the problem?How much does it cost?Ideal customer
Bio-Bling
Sensitivity Measurement
Your Solution
Picture of productDiagram of product or serviceMain benefitHow much does it save
Simple Distribution
Standard Lab SupplyCatalogWeb3 distributors signed
Promotional
How do you generate revenues?
Operate your businessGain market share – Go to market strategyFocus on realistic operation and distributionOnly the most important points
Market Growth
Dollars (m)
Marketing and Sales
Size of opportunityMarket segmentsServed available market is keyGraphics best
Competition
Painful
Easy
Slow Fast
Tatoo
Color Dot
Isolation
BLING
Competition
Competitive landscapeDirect and indirectMap
Competitive AdvantageMatrix
Technology
Color change based on chemical sensor and temperature changeFuture activity/passivity sensing
Underlying Magic/Technology
Concepts onlyDifferentiation from competitive methodsIP strategy mentioned in presentation
Projections
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue 1,600 5,300 18,300 31,000 41,000
COS 400 1,325 4,575 7,750 10,250
SG&A 240 795 2,745 4,650 6,150
Net Profit 960 3,180 10,980 18,600 24,600
Projections and Milestones
Typical 5 year forecastReview possible revenue sourcesTotal RevenueCOS, SG&ANet ProfitSome add residual cash lineDon’t need details
Management Team
CEO – E. X. HarveHarvard MedicalKatrina Rodent Project
CTO – Keep M. GlowingCTO 25 yrs - Dow Chemical DOD
CMO – M. SlingerFormer CMO – Roche, J&J, Fischer, Beckman, K-Jewelry, Mousekateers
Your Team
Sell your accomplishmentsHigh value associations
Schools, companies, awards, big titles
One of most important slide in presoOffer a plan to fill gaps
Use of Funds
Funds Raised 750K
Your Funding Need
How much are seeking?Use of moneyHow long will it lastWill you need more money later?
Corporate Development
Yr 1 Yr 2 Yr 3 Yr 4
Phase IDevelopment
Petri RingDevelopment
Pilot Test
Scale up Production (II)
Yr 5
Exit
Scale upProduction (I)
ProjectMilestone
FinancialMilestone
Fund Raising (I)US$ 750k Fund
Raising (II)US$ 1.5M
Yr 0
Market Launch
Status and Timeline
Show what you’ve doneWhere you areWhen you will do the next stepsTechnology, business and fundingExit planGantt chart or timeline
Strong market demand
Scalable product Large cost improvement
Time savingIndividual identity
Seeking $750,000 for market launch
Contact: [email protected]
Summary & Call to Action
How much capital are you seeking?Key strengthsContact info
Life Science Group, LLC
CommercializingTechnology & IP Strategy
Position for Success
Company Core Competency
Technology TrendsMarket Needs
Ideal position for new ventures
Ideal position for new ventures
Commercializing R&D
Idea
Lab
Proof of Concept
Commercial
Produc
t
The Development
Gap
The Development
Gap
The Development Gap
Too Newlack of validation by other parties and/or commercial acceptance
Too early in development vicious cycle - need money to complete development
Weak IP positione.g., early patent applications or need 3rd party IP
Solution for Patent Problems
Key Strategies for Success
Must have a business planExecutive summary, team biographiesProduct(s) description, including IPMarket and competitive researchGo to Market planDevelop a budget/funding strategyHave intellectual property (IP) strategyThink about exit strategies
Intellectual Property
Different factors to considerOne strategy per product or technologySeveral strategies for the businessFunding consideration
PatentsTrade SecretsTechnical InformationKnow-How
IP Strategy
IP creates value by giving investors confidence to investDiscourages others from trying to develop the same technologyThe starting point in develop IP strategy that fits company business objectives
Development Parnerships
Research GrantsUniversities, Foundations and Research InstitutionsBiotech to BiotechBiotech to Big Pharma or Dx
Getting Started
Bi-lateral AgreementsJoint researchInvest in the biotech companyUp front payment and/or milestone paymentsSponsored researchOpting in, Opting out – at different stagesDistribution
What to Pay Attention ToLicense FeesJoint funding of development, manufacturing, commercialization, or marketingLoansEquity InvestmentsJoint InvestmentsSteering TeamsIntellectual Property Issues (prosecuting, enforcing and maintaining patents)Transferability
Agreements Are Often Interrelated
R&D
IP License
manufacture
training
consulting
Services
Distribution
Investment
Technology licensing occurs in the context of a business relationship in which other agreements are often important
An IP Strategy Has 3 Goals
Secure freedom to operateEstablish control over intellectual property assetsDevelop and assert an IP portfolio that provides meaningful exclusionary power for the company’s products in the market
Preparation For NegotiationWhat is the business reason for this license?What leverage do you have?What is the time frame for signing the license agreement?What data and documents do you or the other party need?What are your positions on the key issues of the license?What is your negotiating strategy?Will you need preliminary agreements?What are the strengths of the other side?
Term Sheet
The Term Sheet provides a solid foundation for negotiation
Clarifies issuesShows problem areasCommunicates to each teamClears positionsKeeps track of goals
SummaryA technology at any stage of development may be appealing to an industry strategic alliance partnerLicensing and commercialization occurs more often between people who know each other – network!There are many approaches and ways to structure dealsProper management of IP assets can create greater value for the company
Resources
Licensing Executives Society (LES) www.lesusacanada.org
Association of University Technology Managers (AUTM) www.autm.net
inGENEuity Life Science Group, LLC www.ingeneuityllc.com
Marketing Plan: Commercializing
Market ResearchWhat do your customers want?How much are they willing to pay for it?What is your customers’ perception of you?Format
InterviewsFocus groupsOnline survey
Marketing Plan: Commercializing
Customer ProfilingWho is your customer?What are their daily ‘pains’?Where are you likely to reach them?
Marketing Plan: Commercializing
Competitive AnalysisIdentifyAnalyzeIs your offering unique?How will you compete?
SWOT AnalysisStrengths, Weaknesses, Opportunities, Threats
Marketing Plan: Communicating
Positioning & MessagingWhat is your niche?What is your value?How will you compete in the long term?How will you communicate your message?
Communication TacticsMaterials
ContentBrandingPrint & online mediaPresentations
PlanningCampaignsConferencesPRMedia placements
Communicating 2.0
Smaller companies can do moreGet by with help from friendsEngage, don’t broadcast
Social Media: How?
Create a community that cares about you & your productSpend more time than $$Learn from others
http://sdbn.org/sdsms http://sdbn.org/sms
We can help! http://comprendia.com/socialmedia
Case Study: SDBNSan Diego Biotechnology Network
Founded Oct. 2008 by Mary & PartnerMission: Promote communication in the San Diego Biotechnology communityMonthly events focus on hot science, networking, and workshopsPromotion via Social Media (SM)
LinkedIn (2100+)Twitter (950+)Meetup (175+)Facebook (300+)
Amazing growth—85-100 at each eventBranch out to charity events, mini-conferencesEngage Scientists in SM to help grow
Case Study: TigerTox
Inspired by Comprendia, SDBNBuild Toxicology ‘community’
Needs: Logo, Website/Blog, PowerPoint TemplateBioStartup™ Marketing KitCreative Brief Process
Case Study: TigerTox
Complete PackageAlso Provided
TrainingMaterials
Blog/website upFull story
Bootstrapping Biotech
Science Communication 101
What we will discuss:The importance of videoHow to leverage social mediaIntegration of video with traditional public relationsCreating a buzz
Biotech Branding Campaign
What is it?Why are we doing it?How are we doing it?
Biotech Branding Campaign
Telling the Story
Why it’s important to use stories to communicate science:
Stories help put a human face on the biotech industryThey show how science offers hope to the world
Telling the Story
Using videoWhy it’s important
If you can’t view this video watch it at http://sdbn.org/wcs1
Telling the Story
How video can help explain complicated science
If you can’t view this video watch it at http://sdbn.org/wcs2
Telling the Story
What are your options?
High-end video production Flip cameras
If you can’t view this videos watch them at http://sdbn.org/wcs3
Promoting videos through social media
Video 2.0
Video 2.0
Video 2.0
Cost and analytics
Tota
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Traditional Communications Vs. Web 2.0
Traditional 2.0
Press releases Press releases with integrated video
Earned media Free media (blogs, Twitter, Facebook, FriendFeed)
Top-down messaging
Bottom-up communications, grassroots education efforts (websites, creating an online movement)
Branding your product with paid advertisements
Building online credibility, creating a “buzz” on social media sites, online promotions
“Buzz”: Why You Want it and How You Get it
Leveraging your social media presence
Build your networkDevelop strategic partnerships
“Buzz”: Why You Want it and How You Get it
Self-promote ONLY after promoting othersKnow your audience and cater to their needsMake it worth their while to listen
Provide interesting contentRespond to feedback
How do you create a buzz? It’s simple:Communicate; stay informed; and differentiate yourself, your company, and your products
“Buzz”: Why You Want it and How You Get it
Next Steps
Find us after the presentation to be interviewed on camera for IAmBiotech.org Sign up on IAmBiotech.org and get involved!
Ask us how we can help you: http://WHITECOATstrategies.com
Appendix: Funding Resources
Resource DetailsSan Diego Venture Group Funding, events.Tech Coast Angels Funding, quick pitch competition.
UCSD Connect Workshops and resources for startup/early stage companies.
Keiretsu Forum Angel investing forum and network. Meets monthly in San Diego.
Biocom Myriad resources for established biotech and life science companies in San Diego. Searchable directory of local companies.
OnBioVC Detailed life science funding information.
SDBN Calendar, listing of networking, funding & support organizations, directory of companies.
Founder Institute Business incubator & executive training.
Southern California Venture Capital Community (LinkedIn)
Forum to connect & discuss funding in the region.
Xconomy Great resource for funding & general news about the region.
Appendix: Bootstrapping Resources
Tool Details Resources
WordPress Set up blog/website quickly & affordably. Comprendia Blog: WordPress Wrevol
ution
Google Apps
Gmail: Set up email host for company--mail will come from your domain. Google Sites: Create sites for sharing information. Google Wave (beta): Collaborate in real time.
Google Docs in Plain English
The Company Corporation Incorporate or form an LLC. Skype, Gotomeeting Inexpensive phone calls & webinars.
docstoc Document templates, including contracts, marketing plan.
Salesforce.com, SugarCRM Affordable Customer Relationship Management (CRM) software.
Amazon, PayPal Accept credit card payments.
OpenOffice.org Word processing, presentations, spreadsheets.
LinkedIn Manage contacts, spread the word, create communities.
Comprendia Blog: Getting Your Team 'LinkedIn' for Free Advertising
