John Clarkson, CEO Venturefest, Bristol 2011

Contact:

john.clarkson@atlasgenetics.com

Seed Series A Interim Series B

Funds £1 m £2 m £0.5 m £18.5 m

Date 2005 2007 2009 2011

Milestones Product

concept

Prototype

development

Clinical validation Transfer to

manufacture,

Product launch and

menu expansion

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

Seed ◦ Ordinary (EIS qualifying)

Series A ◦ Investor (EIS Qualifying plus exit pref) & Pref

Interim ◦ Investor & Pref

Series B ◦ Investor and Series B Pref

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

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 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

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

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

Changed business plan: more dilution ◦ £18.5m vs. £2m – bigger, better and more realistic plan.

Less financial risk, exceptionally strong syndicate = better exit

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

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

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