NeuroLaunch  is  the  world’s  first  accelerator   for  neuroscience  startups.

Atlanta Business Chronicle, August 25, 2014

NeuroLaunch  Team

Jim Schwoebel Kyle Grossman

Alex Greven

Chris Klaus Jordan Amadio

Abi Riddle Garrett Wallace

Neurotech  companies  face    many  problems

45%  

23%  

23%  

9%  

Capital  

Experience  

Adop7on  

Access    

Source: NeuroLaunch Investor Demo Day (February 3rd, Poster Company Data)

Problems  NeuroTech  Entrepreneurs  Face    

Trac7on  

Problem  #1  -­‐  Capital • The  most  common  problem  that  entrepreneurs  face  in  the  neurotech  industry  is  access  to  seed  capital  and  investors  at  the  seed  stage.    

Access  to  investors  

• Since  there  is  inherent  risk  in  neurotech  investments  (and  many  failed  phase  3  clinical  trials  in  drug  development),  most  investors  have  shiIed  more  towards  series  A  investment  over  seed.    

Risky  pitch  

• Moreover,  there  is  a  significant  issue  in  that  many  neurotech  companies  take  a  long  7me  to  exit,  which  makes  them  less  inves7ble.    

Time-­‐to-­‐exit  =  SLOW  

Problem  #2  -­‐  Experience

• Many  of  the  entrepreneurs  star7ng  neurotech  companies  are  from  a  research  background  and  do  not  have  significant  commercializa7on  experience.    

Lack  of  experience  

• This  makes  them  want  to  seek  the  right  people  to  help  them  grow  their  company.  

Seeking  mentors  and  advisors  

Problem  #3  –  Technology  AdopHon • What  channel  would  they  need  to  go  to  in  order  for  consumers,  hospitals,  or  physicians  to  adopt  their  technology?  How  do  they  gain  that  access  early  so  their  product  fits  with  what  the  buyer  wants?    

Customer  Adop7on  

• Most  entrepreneurs  in  neurotech  do  not  know  how  they  can  scale  their  technology  from  10  sales/month  to  1,000  sales/month  to  1,000,000  sales/month  (distribu7on).    

Distribu7on  /  Scale-­‐up  

• Reimbursement  considera7ons  are  huge,  and  most  do  not  know  how  exactly  to  make  their  products  reach  customers,  although  many  of  their  products  are  wanted  by  customers  .    

Reimbursement  issues  

Problem  #4  –  DemonstraHng  TracHon   • Some  of  the  startups  in  neurotech  just  need  a  larger  client  or  early  partner  adopter  base,  which  is  oIen  restricted  within  the  neurosurgery  community.  

Early  Adopters  

• Clinical  trials  are  oIen  costly  and  it  is  hard  to  validate  the  technology  without  significant  investment.    

Clinical  Trial  Valida7on  (Phase  1/2/3)  

• Many  companies  in  our  accelerator  face  a  dilemma:  should  I  go-­‐to-­‐market  in  the  consumer  space  first  before  going  into  regulated  territory  to  show  trac7on,  or  pursue  a  direct  medical  device/drug  pathway?    

Revenue  in  consumer  market  vs.  regulated  

space  

SoluHon

2

100+

90 day

Problem #1: Capital Problem #2: Experience

Problem #3: Technology Adoption Problem 4: Demonstrating Traction

Devices  

Pharmaceu8cals  

So:ware  &  Machine  Intelligence  

Wearables  

Why  now?

Neuroscience  research  acHvity  is  increasing

Source: Brain Initiative. http://www.braininitiative.nih.gov/index.htm

+$350 Million

+$1.5 Billion

Neuroscience  startup  acHvity  is  increasing

Since  2005,  the  startup  “accelerator”  model    has  demonstrated  a  proven  track  record

Sources: The Economist (figure); http://techcrunch.com/2014/03/10/these-are-the-15-best-accelerators-in-the-u-s

“Entrepreneurs are almost universally happy with

the accelerator experience.”

- TechCrunch.com

NeuroLaunch, 2014

NeuroLaunch  captures  trend  toward  “niche”  accelerators

Health-Related Accelerators

Neuroscience-Focused Accelerators

All seed accelerators = 228 Worldwide totaling $7.2B in funds.

seed-db.com

What  have  we  done  so  far?

NeuroLaunch’s  TracHon  from  Batch  1 Idea to fully executed accelerator in 8 months. >60 applicants hailing from 10 states & 7 countries, <10% admit rate. >30 guest speakers and 10 tours throughout Atlanta. Community of 120+ mentors and rapidly growing. To date, 6 NeuroLaunch Companies have raised >$3M and continue to grow. 22 NeuroLaunch Poster Showcase startups at Demo Day. Largest single gathering of neuroscience startups ever recorded.

Batch  2  Overview  [June  1st  –  August  25th] •  Surgical  device  technology  to  provide  more  efficient  care  to  children  and  adults  with  hydrocephalus  MonitorMed      

•  Crea7ng  accessible  technologies  that  engage  and  empower  children  with  disabili7es  to  enhance  their  quality  of  life  Zyrobo8cs      

•  Developing  intracerebral  drug  delivery  instruments  that  enable  the  treatment  of  devasta7ng  neurological  diseases  Atanse      

•  Technology  plaaorm  for  improving  pa7ent  outcomes  through  data  driven  concussion  management  Cogni8ve  Health      

•  Loca7on-­‐based  mobile  soIware  providing  support  to  people  with  epilepsy  and  other  neurological  disorders  Neurish      

How  can  we  work  together?

Ways  to  work  together  moving  forward •     Mentors  for  poraolio  companies  •     Strategic  partnerships  /  clinical  partners    •     Abend  VIP  Recep7ons  and  Demo  Day    

• Atlanta  Mentorship  Recep7on  (June  10th  6:30-­‐8:30  PM)  • Boston  Mentorship-­‐Investor  Recep7on  (June  30th,  6:00-­‐9:00  PM)  • San  Francisco  Mentorship-­‐Investor  Recep7on  (August  4th,  6:00-­‐9:00  PM)  •  Investor  Demo  Day  (August  25th,  1:00-­‐8:00  PM)  

•     Sponsorship  Opportuni7es  (Demo  Day,  Accelerator)  •     Investment  Fundraising  (Fall  2015)    

!!!

Thank you!!Jim.Schwoebel@NeuroLaunch.com !

The accelerator for neuroscience startups.!

Appendix • How  much  each  of  our  companies  has  raised  (follow-­‐on  funding)  • Poster  company  raise/sought  data  (from  list  of  problems)  • Demo  day  date/7me  • RSVPs  for  Mentorship-­‐Investor  Recep7ons  and  Demo  Day  • Why  Atlanta?    • Curriculum  &  Value  Delivered  by  NeuroLaunch  to  compainies    

Our  B1  companies •  $300k  round  right  now  (conver7ble  note)  Neurocruitment  –    

•  $100k+  Atlanta  pediatric  device  consor7um  grant  Safe  heart  –    

•  seeking  $700k  seed  Brainchild  technologies  –    

•  $500k  raised,  $200k  nondilu7ve  grant  receively  received  Cogni7on  Medical  –    

•  raised  roughly  $300k,  s7ll  seeking  capital      Mint  Labs  –    

•  raised  $1.1M    Intellimedix  –    

1   2   3   4   5   6   7   8   9   10   11   12   13   14   15   16   17   18   19   20  

Capital  Raised   $0     $0     $0     $0     1500   $26,000     $200,000     $0     $27,000     $50,000     $200,000     $400,000     $200,000     $1,005,000     $1,250,000     $550,000     $90,000     $2,200,000     $300,000     $50,000    

Capital  Sought   $0     $5,000     $10,000     $20,000     $100,000     154,000   $230,000     $250,000     $300,000     $500,000     $500,000     $600,000     $800,000     $900,000     $1,000,000     $1,500,000     $2,000,000     $2,500,000     $2,500,000     $5,000,000    

$0    

$1,000,000    

$2,000,000    

$3,000,000    

$4,000,000    

$5,000,000    

$6,000,000    

Amou

nt  of  M

oney  ($

)  Poster  Company:  Cap8al  Raised/Capital  Sought  

• Experience the future by meeting the top neuro-startups.

• Connect with like-minded investors and innovators. • Expert Panel discussions, such as: ü  “Horizons in Neuroscience Investment and Innovation” ü  “Future of Neuro-Wearable Devices” • Join the global NeuroLaunch community.

August 25, 2015

RegistraHon  Links  

Ø Atlanta  VIP  Recep8on  (June  10th,  6:30-­‐8:30  PM).  h]p://neurolaunchviprecep8on.splashthat.com/    

Ø Boston  VIP  Recep8on  (June  30th,  6:00-­‐9:00  PM).  h]p://neurolaunchviprecep8onboston.splashthat.com/    

Ø SF  VIP  Recep8on  (August  4th,  6:00-­‐9:00  PM).  h]p://neurolaunchviprecep8onsanfran.splashthat.com/        

Ø Demo  Day  Registra8on  Link  (August  25th,  1:00-­‐8:00  PM).  h]ps://neurolaunch2015demoday.splashthat.com/    

Why  Atlanta?

Atlanta  is  primed  to  support  a  robust    community  for  life  science  and  neuro  startups.  

Source: Dr. Paul Judge, July 2014. www.scribd.com/doc/232821080/The-Guide-to-Atlanta-s-Start-Up-Scene

World-class institutions foster an oasis of innovators

Strong ecosystem of successful healthcare startups in Metro Atlanta

Hartsfield  Jackson  Airport  is  the  Busiest  Airport  in  the  World,  Enabling  Streamlined  TransportaHon  to/from  Atlanta  to  other  major  Neuroscience  hubs

http://en.wikipedia.org/wiki/Airport

Headquartered  in  the  heart  of  Atlanta’s  Tech  Square

•  Named Most Outstanding Research/Science Park in 2014 (AURP)

74   90  122   132  

182  

241  248  

0  50  100  150  200  250  300  

#  of  Neuroscience  Faculty  vs.  University  

Huge, Untapped Neuroscience Research Potential in Atlanta

Atlanta  has  cheap  real  estate  relaHve  to  other  major  ciHes

$200    

$500    

$800     $800    

$1,335    

$2,500    

$0    

$500    

$1,000    

$1,500    

$2,000    

$2,500    

$3,000    

Memphis   Nashville   Chicago     Atlanta     Boston   San  Francisco    

Silicon  Valley    

New  York     London,  England  

Major  Ci8es  vs.  Cost  Per  Square  Foot  in  2014  

Atlanta  Investment  Community    is  on  the  Rise

  Over  the  past  five  years  (2009-­‐2014),  the  city  abracted  over  $700  million  in  private  investment  through  InvestAtlanta,  and  Atlanta  added  nearly  $100  million  to  its  cash  reserves  

 

NeuroLaunch  Batch  #1:  Nov.  3  –  Feb.  3,  2015

• 3 months • 6 teams • 15 entrepreneurs • 50% from

outside Southeast U.S.

Tremendous  global  diversity.

0  10  20  30  40  50  60  70  80  90  

100  

mentors   demo  day   partners   seed  funding  

Percent  of  value  (%)   pre-­‐accelerator  

post-­‐accelerator  

Value  Delivered  by  NeuroLaunch    Pre/Post  Accelerator  Delivery  (Batch  1)

100+  Mentors  bring  deep  exper2se  in  key  focus  areas

Clinical and Scientific

Product Design and Marketing

Entrepreneur and Industry

Legal / Reimbursement /

Regulatory

Investment (VCs/Angels)

Intangible  forms  of  value

•   connec7ons  •   confidence  •   mentor  value    •   publicity  •   U.S.  market  

•   small  funding  •   community  •   network,  visibility  •   funds,  connec7ons  •   helped  us  actually  become  a  company  

Most  useful  parts  of  curriculum  (Batch  1)

•  Pitch  nights  were  extremely  useful  to  teams  (3.25/4)  Pitch  nights  

•  Introduc7ons  to  mentors  were  extremely  useful  to  teams  (3.09/4)  Intros  to  mentors  

•  Didac7c  speakers  were  moderately  useful  to  teams  (2.78/4)  Didac7c  talks  

•  Peer-­‐to-­‐peer  interac7ons  were  moderately  useful  (2.54/4)  Peer  interac7ons  

•  Demo  day  was  moderately  useful  to  teams  (2.1/4)  Demo  Day