Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED Innovation Protecting Tomorrow Micheline Devaurs REDI meeting November 2, 2015

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED …Regional Economic Development Slide 2 LANS Venture Acceleration Getting innovation to market faster MBA Internship Providing business data for entrepreneurs and inventors DisrupTECH Celebrating disruptive technology created by the minds at Los Alamos National Laboratory New Mexico Small Business Assistance Program Solving New Mexico small business assistance challenges Licensing Los Alamos Technology Creating value in New Mexico

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED Cumulative VAF Impacts 3 Since 2006, the VAF has invested $3.3 M in 53 companies across 7 counties. These awards generated $138.2M ROI or 43X total impact

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED Cumulative VAF Impacts (cont.) 4 Out of 49companies through 2014*: 4 companies were acquired and successfully exited. Over 50% of awards were made to existing job creators to support their growth. 4 companies were acquired and successfully exited. Over 50% of awards were made to existing job creators to support their growth. * Excludes 2015 round because this data is not yet available for these companies.

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED Venture Acceleration Fund in 2014  10 selected for funding - $407K allocated – Flow Science, Santa Fe – FLuTE, Rio Arriba – Heavy Oil Solutions, Santa Fe – Keystone Restoration, Santa Fe – Milk + Honey, Santa Fe – Private Label Select, Taos – Purple Adobe Lavender, Rio Arriba – Seed Worthy, Bernalillo – Taos Mountain Energy, Taos – Xpress, Santa Fe

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED Venture Acceleration Fund in 2015  4 selected for funding - $144K allocated – ETKIE, Santa Fe – IR Dynamics, Santa Fe – UbiQD, Los Alamos – VIZZIA, Santa Fe 6

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED LANS Venture Acceleration Fund getting innovation to market faster Slide 7 Taos Mountain Foods, LLC 3-year EDA grant received March 2015 Technical assistance Feasibility study for larger see capital fund (equity)

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED New Mexico Small Business Assistance Program (NMSBA) 2000 to 2014: 2,341 small businesses served (all 33 counties) 352 small businesses served in 2014 $43.7M of technical assistance 4086 jobs created or retained Nearly $200M in increased revenue $77M invested in NM goods and services Slide 8

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED Examples of NMSBA technical small businesses assisted McFarland Instrument Services Rio Arriba County Designs and fabricates electronic instrumentation for analytic procedures and data analysis Slide 9

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED Licensing Los Alamos Technology in New Mexico Slide 10

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED First Repayment to Venture Acceleration Fund ( MBA Internship Program Providing business data for entrepreneurs and inventors Slide 11 Representation from over 30 top business schools (including New Mexico universities) Interns work with regional entrepreneurs and Los Alamos inventors Pipeline and workforce development 25% of Interns have obtained full-time jobs in NM Business Experience MBA Coursework

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED  A celebration of disruptive technology created by the minds at Los Alamos National Laboratory in the areas of: – BIOFUELS, SECURITY, WATER TREATMENT, INDUSTRIAL PROCESS IMPROVEMENT, SUSTAINABLE FRACKING, SOLAR CELLS, BIOTECHNOLOGY  The goals of DisrupTech – Expose industry to potentially world-changing, early-stage technologies developed by Los Alamos scientists – Spark the entrepreneurial spirit in our scientists, giving them a chance to present their technologies outside of a research setting. Slide 12

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED Seeding Regional Activities Slide 13 Power of the Network

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED Recent examples  Technology Roundtables  Teen Start up events Slide 14

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED Our Impact Slide 15 2,503 companies helped throughout New Mexico 2,341 New Mexico small businesses have utilized Los Alamos and Sandia technical assistance in all 33 counties 76 New Mexico companies have licensed Los Alamos technology 53 entrepreneurs have received LANS Venture Acceleration Fund awards 47 Laboratory employees have taken Entrepreneurial Leave of Absence to support 27 companies in New Mexico and 5 out of state Results $47.0M $138.2M $407.8M LANS VENTURE ACCELERATION FUND NM SMALL BUSINESS ASSISTANCE PROGRAM ENTREPRENEURIAL LEAVE & LICENSING IN NEW MEXICO

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED Backup Slide 16

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED First Repayment to Venture Acceleration Fund ( New Mexico Small Business Assistance Program Solving New Mexico small business assistance challenges Slide 17 Current State. Through SBIR Awards and NMSBA projects the company is now commercializing advanced X-ray spectrometer systems. Commercial Impacts STAR Cryoelectronics has doubled revenue since its initial project with NMSBA in Future STAR Cryoelectronics is focused on manufacturing and selling X-ray spectroscopy systems. Over the next 5 years the company hopes to manufacture and sell a system a month. One Company’s Path to Commercialization

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED What our customers are saying about NMSBA “I don’t think we could have done what we did without the help from NMSBA. There has been a return on that investment.”—Malcolm Fowler, McFarland Instrumentation Services, Rio Arriba County Slide 18

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED What our customers are saying about NMSBA “What NMSBA did is incalculable; economically, it’s incredible. Everyone on the project is getting business growth and more people are looking at these technologies now. I believe we’re going to have a major economic impact in New Mexico.”—Doug Lenberg, Real Green Building Systems, San Juan County Slide 19

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA UNCLASSIFIED National Security Science Serving National Interest  Anticipate, innovate, and deliver solutions  Span the spectrum: Discovery, Applied Science, Prototypes, Commercialization  Prime Contract: Appendix N - investing in technology commercialization Slide 20 Regional Economic Security  Do more for less funding  Generate jobs outside of the Laboratory  Keep the Los Alamos competitive Los Alamos National Laboratory Mission: