1. DEFINING THE LANDSCAPE FOR NEUROMODULATION 2020 or 20/20 Dana Mead 12/6/2012

2. Over 350,000 jobs More than US $650 billion market cap Company and Market Building Since 1972 KPCB Confidential

3. Innovation Markets KPCB Confidential Information Technology Smartphones + tablets  PCs + laptops Third Wave of Innovation Health Care & Life Sciences Targeted therapeutics “Digital” Health Medical Devices New Energy Technology Science of small  enormous markets Speed and scale

4. Life Sciences Portfolio KPCB ConfidentialDIAGNOSTICSTHERAPEUTICSTOOLS/SERVICESDEVICES

5. Presentation Pathway: 2012 2020 Therapies/Indications Technology Care Continuum Healthcare Economics Markets A Healthy Ecosystem ? KPCB Confidential

6. Neuromodulation Therapies 2012 2020 Foundation of therapies across pain, spasticity, movement disorders, incontinence, epilepsy, sensory deficits Therapy efficacy is mixed despite trial step (SCS) Expanding therapies to more complex neurodegenerative diseases KPCB Confidential 2020 Expanded indications Enhanced efficacy Less invasive implant procedures Improved efficacy, eliminate trial (SCS) 2012

7. Traditional SCS: Trial Success Rates* *Success defined as >50% VAS score improvement Source: Leerink Swann, Physician survey (n=50) and SMI prospective/retrospective data Pelvic/Groin (37%) Foot (59%) Arms (49%) Chest (31%) Leg (75%) Back (50%) Hand (44%) KPCB Confidential

8. Neuromodulation Therapies: Current & Future Parkinson’s Disease Hearing Disorders Vision Disorders Urinary & Fecal Incontinence Spasticity Malignant Pain Gastroparesis Chronic Pain Obsessive Compulsive Disorder Dystonia Essential Tremor KPCB Confidential Depression Pelvic Floor Disorders Bowel Disorders Heart Failure Neurodegenerative Diseases Alzheimer’s Parkinson’s Huntington’s ALS Migraine/Headache Epilepsy Sleep Apnea COPD/Asthma Dry Eye

9. Neuromodulation Technology 2012 2020 Complex programming Intense patient involvement, subpar UI’s Poor connectivity (EHR & provider) High patient burden (size, stimulation, no MRI) Closed loop (sensing & therapy) Therapy less intrusive for patient (stim perception, passive recharging, no MRI restrictions) Device data flow provides for remote Dx, EHR, etc. MEMS/NANO/Next Gen Power Supplies/Wireless Approaching next phase of technology innovation KPCB Confidential 2020 2012

10. Neuromodulation Care Continuum 2012 2020 Disjointed care Best practices undefined or concentrated with leaders Role/sequence of therapy; devices, medication, & other pain therapies remains unclear Neuromodulation often a last-resort therapy Standard protocols for managing pain & other neuro conditions emerge Treatment paths well-defined and adopted Quality outcomes defined, enforced & measured Neuromodulational moving up the care continuum Moving from modest adoption to standard of care KPCB Confidential 2020 2012

11. Neuromodulation Healthcare Economics (US) 2012 2020 Primarily fee for service Rewards treatment vs. outcome Incentives don’t support ACO model $20-25K ASP with mixed outcomes Expanded patient coverage WW Value= quality outcomes/costs Comparative effectiveness filter for de novo therapies ASP pressure for legacy therapies Accountable, at risk care KPCB Confidential Industry must quantifiably demonstrate therapy value 2012 2020

12. Worldwide Neuromodulation Market 2012 2020 KPCB Confidential 2012 2020 New therapies, new indications and market penetration drive WW growth $2.87B WW $1.41B SCS 80% U.S./14% EU 10% CAGR $6.2B WW $3B SCS 70-80% US; Asia? 10% CAGR Source: Analyst reports. Includes SCS, OBS, SNM, VNS, TDD

13. Optogenetics: What does it do? Optogenetics: Potential for Therapeutic and Cellular Specificity Target specific phenotypes Induce suppression or activation Affect specific neuroanatomies Combined genetic and device therapy

14. Brain-Machine Interfacing Progress in tissue-machine interfacing and coupling can provide advanced methodologies to develop neural-based therapies Nanoscafolding and other microfabrication techniques may contribute to providing the ability to control specific neural networks

15. A Healthy Neuromodulation Ecosystem - 2020 Invest in the clinical trials to support efficacy/safety, indication expansion and cost-effectiveness Design “product” for emerging markets Develop closed-loop devices (sensing & therapy) Reduce programming requirements and need for follow-up visits Enhance connectivity (e.g., remote Dx, EHR interface) Make the therapy non-invasive (e.g., reduce size, volume, weight, subcutaneous, etc.) Demonstrate clear value to the system KPCB Confidential