September 28, 2015

Cara Michaliszyn

University Ventures & Engagements Manager

STC.UNM

UNIVERSITY OF NEW MEXICO (STC.UNM)

&

NEW MEXICO ANGELS (NMA)

PARTNERSHIP

Presented by

STC AND NMA PARTNERSHIP

2005 –Lisa Kuuttila (CEO, STC.UNM) joined NMA Board of

Directors

Interest in gaining visibility for UNM technologies as potential start-

up investment opportunities for NMA

First technology presentation by STC in March 2008 (one

technology and one early start-up company)

STC presented four technologies to NMA in October 2009

Early History

STC AND NMA PARTNERSHIP

Gap Fund Program ongoing since 2007

Gap Fund @ UNM Committee membership solely from UNM until 2011

Added NMA President, John Chavez, to Committee in 2011

STC received 22 proposals totaling $544,950 that year

NMA selected 7 proposals

for further review (including

the 2 funded by UNM)

Gap Fund

STC AND NMA PARTNERSHIP

Since STC has consistently received a number of excellent

proposals—more than it has been able to fund—this year, we have

partnered with the NMA, a group of 70+ investors, in order to fund

more projects. In addition to the two projects selected for funding

from UNM, NMA plans to select several proposals for presentation

to the NMA. Accordingly, we have asked John Chavez, President

of the NMA, to join our selection committee. (Fall, 2011)

Gap Fund

$John Chavez

STC AND NMA PARTNERSHIP

NMA selected three PIs for presentation of their projects in

November 2011

John Chavez and STC staff coached PIs and helped prepare

presentations

One company formed as a result

Technology Showcase Concept

STC AND NMA PARTNERSHIP

In October 2012, STC added 3 additional outside investors to its

Gap Fund @ UNM Committee

STC received 21 proposals totaling $479,149

NMA and STC held a second Technology Showcase

One new company was started as a result

Technology Showcases Continued

STC AND NMA PARTNERSHIP

By 2012, STC and NMA had developed a template set of

slides for PIs:

● Title of Technology

● Inventors and Funding

● Overview of Technology

● Summary of Data/Findings

● What Is the Product/Who Will Pay for It?

● Market Opportunity

● Intellectual Property

● Specific Expertise Needed

● Review and Request for Action….

Technology Showcases Continued

STC AND NMA PARTNERSHIP

By February 2013, the NMA wanted to see many more technologies, in addition to the gap fund process

STC presented 18 technologies to NMA

The Technology Showcase in 2013 included 3 STC technologies (after selecting 5 technologies for further review), resulting from the gap fund committee process

No companies were started but one technology was incorporated into another start-up

(Another gap fund committee investor member elected to start a company based on one of the proposals)

Evolution to Other Venues for Technology Presentations

STC AND NMA PARTNERSHIP

STC and NMA began to meet more frequently from 2013 - 2015

Presentations were made to John Chavez and small groups of NMA

members on almost a monthly basis

Many of these meetings were called as convenient for NMA, or they

had specific technology opportunities of interest to NMA

Less Formal and More Frequent Communications

STC AND NMA PARTNERSHIP

Lotus Leaf Coatings

Zocere, Inc.

Synfolia, Inc. (no longer active)

EcoPesticides International

Dynamic Photonics, Inc.

ExoVita BioSciences

Start-Ups Evolving from Partnership

WHY?

Why Did We Create The Start Up Factory One

and Two?

● Low Pre-Money Value

● Diversification of Portfolio

● Creating our Own Deal Flow

● Creating opportunities in NM

The Business Plan

Designed to spin out individual investable companies based on

early options of technology from New Mexico Angels technology

partners

Holding Company

TechnologiesNew Mexico

Start Up Factory

Hard work and Magic

New Companies

for NM

TACTICAL PLAN

Seed NM Start-up Factory Two, LLC

Find Technology with Market and Commercial Potential at UNM,

LANL, Sandia or NMSU

Write IP and Commercialization Plans for each potential technology

Simultaneously option, and negotiate licensing agreement with

technology partner

Find the Right People for Start-ups: NM Angels and others

Stand up individual company and support, and send them on their

way according to commercialization plan

CLOSING NM START UP FACTORY TWO

Small amount of individual angel capital to create a diversified

portfolio

Funding opportunities with technology from our technology partners

Low valuation in follow on rounds, so that the individual company

exits can be reasonably priced

It is a technology transfer model that seems to be working!

STC AND NMA PARTNERSHIP

NMA is a strong supporter of Innovate ABQ,

promoted by UNM

NMA was an advocate with UNM Foundation for

establishment of the Co-Investment Fund

NMA presents to STC and UNM constituent

groups on a regular basis

NMA has table display at STC Annual Innovation

Awards and other events

Other Partnerships

STC AND NMA PARTNERSHIP

+

Six start-ups have evolved from the partnership between

STC and the NMA. It has allowed the UNM Co-Investment

Fund to invest $174,000 in Start-Up Factory companies.

Trust and connections have created a solid foundation for

continued growth and larger initiatives

The initiative is being expanded to the state’s other

research institutions