Commercialization

Technology Selection

Com

mercialization

OperationsS

trat

egic

Par

tner

ship

s-

Tech

nolo

gy

Acc

ess

Building Coalitions

Public, Private, Academic

Relationships

Edu

catio

n &

K

now

ledg

e Tr

ansf

er

Leveraging

Resources

across

Partners

Sustainability

RO

I = N

ew

Com

pan

y D

evel

opm

ent

Philanthro-

capitalists

Fund Raising (Government & Philanthropy)

Positive Economic Impact/ Public Good

Mission:BioAccel drives economic success by transforming high risk technologies into

new companies, high wage jobs and products that benefit the community

Vision:BioAccel identifies and commercializes new technologies that can make a

difference in the world

Essentials:

Why Focus on New Enterprises & Small Business

• Nearly 42% of job gains were derived from expansions and more than 56% come from new enterprises

• Represent 99.7% of all employer firms• Hire 40% of high tech workers ( scientists, engineers,

computer programmers etc.)• Pay 44% of total US private payroll• Generated 64% of net new jobs over the past 15

years• Create more than 50% of the non-farm private gross

domestic product (GDP)

Description of Problem

•A significant gap in expertise, capital, and facilities limits the accelerated transformation of a research outcome into a technology based company.

•The gap is referred to as the “Valley of Death”.

•New model and/or strategies required to streamline access to necessary resources.

•Need metrics to evaluate success and ensure continuous improvement.

Technical RiskValue

Business RiskValue

Bridging the Discovery to Commercialization Gap

* BioAccel Programs

Scientist ParticipationIndustry Partners

Coalition for

Bioscience

Commercialization

TAP Technology Advancement

Program*

NVDP New Venture Development Program*

Intellectual PropertyBusiness & Commercialization

ExpertiseFinancial Capital

Facilities

Positive Economic Impact:•New co’s•Jobs•Products

BioAccel ProgramsProvide funding and business assistance to late stage research projects and early stage companies

Phase I – Technology Advancement Program (TAP): Proof of concept support for validation studies, prototype development, etc. needed commercialize late stage research projects

•$100-300k•Successful projects provide data for early stage companies (market valuation < $3M) to advance a technology, device, therapeutic•Successful projects may graduate to NVDP with BioAccel serving as the commercialization agent

Phase II - New Venture Development Program (NVDP): Seed funding to launch and stabilize new companies based on proven technology and confirmed market potential

•<$300K

Philanthro-Capitalist NetworkObjective: To establish a network of like-minded individuals with a desire to learn about innovative technologies and local new companies.

•BioAccel Champions that help educate the community by actively investing time, talent and funding •Experienced and successful members of the business community •Individuals who can inspire other philanthropists, corporate leaders, and public policymakers •Leaders that recognize the need to change the paradigm to commercially develop late stage discovery research•Individuals who want to improved Arizona’s economy

Format: Quarterly casual receptions to share updates, meet innovators and build network

By establishing a integrated ecosystem … BioAccel can improve the technology pipeline, quality of deal flow and increase the probability of commercial success…

BioAccel-Technology

AdvancementProgram (TAP)

• Conducts rigorous due diligence

• Technical/business de-risking

• TAP Mission-related funding

• Expert advice on development plans/company formation

BioAccel-New Venture Development

Program (NVDP)

• Seed funding through BioAccel NVDP Mission-related funding

• Funding strategy advice and intros

• Identification of management and technical/business advisors

Coalition for Bioscience

Commercialization (CBC) and Incubators

• Provide technology deal flow thru 8 RPIs

• Access to Technical experts for due diligence

• Leverages resources

• Facilities/resources

Angel and Venture Support

• Seed funding through BioAccel Program Related investments

• Partnership with Angels, VCs and other investors

• On going access to downstream funding

… allowing BioAccel, academic centers, and the inventors to retain meaningful equity stakes….and increased ROI to all parties, including Investors

BioAccel Performance Indicators to be applied and measured:

• Success rate for Phase I - Technology Advancement Projects• Technology advancement beyond Phase I• Number of new companies formed• Amount of downstream financing invested in BioAccel

supported companies • Number of new jobs created• Increase wage per hire to be >average wage in AZ ($42,090)• New products/services made available • Reduced timeline for company formation and receipt of initial

funding • Increased company success rate compared to national

average • Increase in the number of SBIR grants awarded

Diabetes mellitus affects over 20+ million people in the US alone. Due to painful finger prick techniques, compliance to physicians’ orders of 2 to 6 times daily are often ignored. Noncompliance results in cardiovascular disease, amputations, blindness, even death, as well as an estimated $300 billion burden on the US HealthCare System in 2011. Our disposable Tear TOUCH Sensor reduces pain associated with blood glucose sensors. This exciting technology bypasses the interference and pain associated with blood sampling by use of tear fluid as the sampling medium.

BioAccel funded ASU/Mayo Collaborative Project

In order for the Tear Touch technology to be commercialized, a proof of concept project must be done to assess the correlation between this new device using tear fluids and the standard using blood samples.

BioAccel has funded this nine month Phase I project at $150,000 to make this determination. If successful, this project will move to Phase II and a new company will be formed

Case study

Tear Touch: Project status pre-BioAccel(2009)

Early patent filed Initial prototypes developedPreliminary data obtainedProject rejected for funding due to lack of POC

dataNo interest from investors or potential licensees

(want to see more data)Project at risk for termination

Tear Touch: Project status post BioAccel (2011)

Animal studies underway2nd generation prototype builtSBIR application to be submitted Dec. 2011Mayo collaborators engagedStudents from B school participating6 graduate students working on project IP costs paid Investors, licensees, manufacturers, distributors callingFaculty member being recognizedCo Marketing with TTO

Traversing the “Valley of Death”C

omm

erci

aliz

atio

n P

rogr

ess

Level of Investment

Positive C

ash Flo

w

Deal Stage

Typical Firm

Functions

Venture formation

Pre-seed Early/seed-stage angel

capital

2nd round venture capital

Mezzanine Venture

capital pre-IPO or sale

Proof of Concept

Development

Prototypes, pilot projects,

test beds human trials

Product/Service introduction

Market Entry

Break EvenResearch

Institutions

Engineering prototype-

service models

Varies $50k-$500k up to $1M $1M - $2M >$2M

BedsideBench

Tear Touch

RxVigil

CaseWorks

Kemeta

Current Pipeline Under ReviewCompany/

Project NameDescription Status Funding

RequiredPhase

I Phase

II

Quadriceps Orthopedic device used for quadriceps inhibition and rehabilitation

Stage 3(Business Review)

$100k ✔

Immuno-based Microsensing

Hand-held Pathogen Detection Device Stage 2(Technical Review)

$100k

✔

Disimpact This company will discover, develop and manufacture medical devices for GI disorders associated with long-term constipation (IDE approved)

Stage 3(Business Review)

$100k ✔

Cardio Technologies

This product development company will focus on commercializing medical devices aimed at cardiovascular intervention. The company has 7 technologies in the pipeline , 2 which have FDA approval

Stage 3(Business Review)

$300k ✔ ✔

XO-Thermix This company will develop a breakthrough medical device to treat severe asthma and address the limitations of the current FDA approved device.

Stage 2(Technical Review)

$300k ✔ ✔

UPAVE Universal Platform for Accelerated Vaccine Evaluation

Stage 1 (Triage)

$100k ✔

Benefits of the BioAccel Model:

• Drives sustainable economic growth by facilitating viable technology based business creation, high wage jobs and new products

• Leverages existing research assets across state

• Expands and enhances technology pipeline• Accelerates the commercialization process • Reduces investment risk• Legacy lives on beyond initial investments• Lessens the burden on government • Creates a replicable national model

 

What Differentiates BioAccel?

• We are an independent 501c3• We use Philanthropy to fund high risk projects• Our deals provide greater value & benefit back to

research institutes and entrepreneurs• Our goal is to enhance and improve the technology

pipeline to encourage downstream financing• Our ROI is measured in technology advancement

versus profit to BioAccel