Partnering for growth DTU Symbion Innovation and SEED Capital DTU Entrepreneurship 2009

Agenda DK Venture overview SEED Capital Investment criteria The process from idea to investment After the investment – how do we work An example – Amminex A few cases more

Capital Return Benchmark Ladder Cash -2% inflation loss Bonds/Obligationer 3-5% Active trade Bonds/Obligationer 4-7% Stocks/Aktier 5-8% Active trade Stocks/Aktier 7-10% Hedging 10-15% Enterprises internal rate of return 12-18% Private Equity/Venture Capital 20-25% (ATP 7½% of portfolio) (Danica 72% of portfolio) (Danica 18% of portfolio)

The Venture Capital Industry Public Equity Private Equity Real Estate Secondaries Mezzanine Buy Out Venture Capital Pre-Seed Seed Start Up Expansion

Danish Venture Capital eco-system DVCA (Danish Venture Capital Association) –250 Members Capital / Buy Out funds VC’s (22) –Life Science –ICT –Energy –Other Innovationsmiljøer (6) Business Angles

Venture Capital Value Chain University Entrepreneur Pre-Seed Capital Seed/ Start-up Capital Expansion Capital Exit IPO Trade sale Idea Investment rounds Proof of Concept Accelerace Connect Denmark Gazelle Growth

Pre-Seed Capital Seed/ Start-up Capital Expansion Capital 7 Government funded pre- seed investors Invests 100 MDKK / y Innovationsmiljøer The Venture Industry in Denmark +20 Venture Capital companies Local and few large pan Nordic VC’s More than 20 BDKK under management

DTU Symbion Innovation Pre-Seed Capital 33 MDKK / y 40+ companies investments/year 1 – 4 MDKK/investment Government funded 3-5 investments/year 5-30 MDKK/investment Classic VC Mostly privately funded Almost 1 BDKK under management DTU Symbion Innovation and SEED Capital in brief SEED Capital 530 MDKK ~20 companies

Cooperation with Leading Universities in the region –DTU –Risø –KU - University of Copenhagen –ITU- IT University Other Partners: –HS- The hospitals in Greater Copenhagen –Delta- GTS Institute –Bioneer- GTS Institute –SCION- Science park –Symbion- Science park and manager of support programs

- Investment team Partners Life Science ICT Cleantech

Investment focus Bio Medtech ICT – HW, SW Cleantech and other

Since December 2004 a total funding of DKK 1.4 bn. Total Danish venture capital funding 2007 was DKK 2.5 bn. We are very good at attracting Funding

Strong international syndication Selected syndication partners : Accel, US DeNovo Ventures, US TMP, US Conduit, UK Yasusida, JP Solvey, B Ferd, N Novo Ventures Novo SEED IVS/Northcap Vecata, Aravis Novartis Venture Astellas APIDS Vækstfonden Business Angels (30+) Northzone, N,DK BioFund Ventures, Fi InnFond/Inventures Coloplast Krones AG, D iXcore, F Malmøhus Invest, S Lumitec, S Sarsia Innovation, N BioVision Syddansk Innovation

Investment criteria Management team with good track record/reputation Relevant and complimentary industrial backgrounds Strong and operational board / investor base Documented unmet need / “true customer pain” Tangible / well defined USD 250m+ market Breakthrough and proprietary Sustainable competitive edge Danish centre of competence Focused, coherent and scalable Relevant / realistic in relation to market dev. and funding SEED investment can be defended Multiple exit options /clear “better owner” Market Technology People Business Model Exit

Market Market (A big puzzle) Value Chain Market Size Customer Segments Competition Investment criteria

People Technology SalesManagement Support Investment criteria

Investment Process Screening/deal flow200/y -Advising Detailed investigation 36/y -Business Plan Assessment -Market analysis -IPR analysis -Negotiation of Terms Investments12/y

Hands on approach –Board Member –Business Development –Organization Development –Fundraising Exit after 6-8 years Post Investment

Hydrogen storage technology. Safe and efficient storage in solid form. DTU founder team Pre-Seed investment Of which two joined the company as employees In 2005 by DTU Innovation/SEED Capital Post InvestmentTwo additional investment rounds by SEED Capital and 3 International VCs

Asic’s for microphones use in mobile phones, hand-set’s etc. Enable digital microphones and adding new features Pre-Seed investmentIn 2003 by Symbion/SEED Capital, a Business Angel and Vækstfonden Post Investment Achievements Few internal investment rounds Pilot Customers ExitSold to Analog Devices for MDKK Portfolio examples

High efficient power supplies. 50% lower heat dissipation/energy loss. Pre-Seed investment2008 by SEED Capital and DTU Post InvestmentBuild Board, Initializing fundraising AchievementsPilot Customers Portfolio examples

Q & A