accelerator

Accelerating the development of the next generation of life-enhancing biotechnologies

04/12/2023

accelerator 04/12/2023

Overview: Accelerator

Mission:Efficient and disciplined

IdentificationEvaluationCapitalization; and,Development

of emerging biotechnologies

Focus: Quality of dealsCapital efficiencyBandwidth efficiencyMilestone achievement

Path:Provide key ResourcesLeverage unique Sources

accelerator 04/12/2023

Institute for Systems Biology (ISB)Lee Hood

ARCH Venture PartnersSteve Gillis

OVP Venture PartnersChad Waite, Carl Weissman

Amgen VenturesJanis Naeve, Andrew Gengos

PPD, Inc.Fred Eshelman

WRF CapitalThong Le

Alexandria Real Estate EquitiesJoel Marcus

Accelerator Stakeholders

accelerator 04/12/2023

Accelerator: Summary of Highlights

Ten investments since 2003Diverse portfolio – multiple therapeutic areas and clinical diagnostics

>$187M raised to back Accelerator companies

>$35M in Series A investments in first ten companies$7.9M to expand activities in early successes

Spaltudaq: $2.9M Series A-2Allozyne: $3.0M Convertible NoteSeredigm: $2.0M ($2.0M from Accelerator insiders) – June 2008

$144M in Series B investments in four graduatesVLST: $55M ($34M from Accelerator insiders) – June 2006Spaltudaq: $29M ($14M from Accelerator insiders) – March 2007Allozyne: $30M ($30M from Accelerator insiders) – October 2007Integrated Diagnostics: $30M (new investors) – August 2009

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Accelerator: Summary of Highlights

$44.3M Committed for Investments$22.5M committed in Accelerator III (7/2007 - $13.9M invested)$11.8M committed in Accelerator II (11/2004 – fully invested)$10.0M committed in Accelerator I (5/2003 – fully invested)

Capital EfficiencyMaintained low operational burnPush technologies/companies further on fewer $’s

Bandwidth EfficiencyMultiple investments for the effort of oneOne management team with whom to interact

Proprietary DealflowOf the ten deals, only one (Allozyne) was shopped extensively in the venture community

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Accelerator: Summary of Highlights

Company

Space

Accelerator Series A

Investment Date

Graduation

Series B

XORI Antibody development platform

$4.4M Q2 2009 Q3 2011

Mirina microRNA inhibition $3.5M Q3 2008 Q2 2010

PharmSelex In-silico drug design $4.5M Q2 2008 Q1 2010

Recodagen Oncology $1.5M Q2 2008 NA NA

Seredigm Anti-apoptosis $4.5M Q2 2006 NA NA

Allozyne Improved biotherapeutics $3.4M Q4 2005 Q4 2007 $30M

InDi Biomarker Discovery $5.0M Q3 2005 Q3 2009 $30M

Spaltudaq Oncology $2.0M Q4 2004 Q2 2007 $29M

VLST Autoimmunity/ Inflammation $4.8M Q2 2004 Q2 2006 $55M

VieVax Vaccines $1.6M Q1 2004 NA NA

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Sources

World-class sources of proprietary deal flow unmatched in access to the most exciting emerging biotechnologies

Four primary categories of SourcesISB technologyReferenced by ISBReferenced by InvestorsAccelerator

Proprietary deal flowOf the ten investments made through Accelerator, only one (Allozyne) was widely seen in the venture community

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Sources: ISB

Lee Hood – President & Co-FounderFounder of Integrative DiagnosticsFounded or Co-founded:

Integrative DiagnosticsApplied BiosystemsSyStemixDarwinRosetta Inpharmatics

World Class FacultyCo-founders

Ruedi AebersoldAlan Aderem

Up-and-coming young faculty

Prolific generator of commercial opportunitiesSince founding in 1999, has spun out or formed:

CytopeiaMacrogenicsNanostringIntegrative Diagnostics (InDi)

Accelerator Companies Sourced

Integrative Diagnostics

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Sources: Referenced by ISB

“Moths to a porch lamp”Lee, Ruedi, Alan, et. al. attract entrepreneurs looking for:

Advice/ConsultingService on their SABIntroductions to VC’s

Prior to Accelerator, no formal place to direct these emerging opportunities

Accelerator Companies Sourced

Seredigm Corp.

VieVax Corp.

accelerator 04/12/2023

Sources: Referenced by Investors

“Too Early”Biotech venture firms still see high quality early-stage opportunities

Accelerator syndicate has global reach

Top-tier investorsExtensive networks

Accelerator Companies Sourced

Allozyne, Inc.

Spaltudaq Corp.

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Sources: Accelerator

“Push”More than 600 unsolicited business plans since 2003 inception

“Pull”Accelerator management is well connected in biotech and venture capital communities

Accelerator Companies Sourced

VLST Corp.

Recodagen Corp.

Mirina Corp.

PharmSelex Corp.

XORI Corp.

accelerator 04/12/2023

Resources

In one entity, all of the resources necessary to give emerging

biotechnology start-ups the greatest likelihood of success:

Scientific Expertise & Technical SupportVenture CapitalManagement Facility

accelerator 04/12/2023

Resources: Scientific Expertise & Support

ISBWorld class faculty and staff available to assist in:

IdentificationEvaluationDevelopment

Core FacilitiesExcess capacity in expert-operated core facilities available to Accelerator companies

Investor NetworkCadre of scientific advisors and other connections to thought leaders in virtually any area of interest

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Resources: Venture Capital

Not just $’s, but value added $’sProven track record for building great companiesExtensive network within pharma and biotech to make appropriate partnership introductionsExtensive network within venture capital to enable high quality syndication in future roundsDeep pockets to enable participation all the way to the finish line

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Resources: Management

All non-technical functions including:AdministrationBusiness Development FinanceHuman ResourcesOperations

Pre-negotiated contracts with key service providers:Audit/Tax – PricewaterhouseCoopersFacility Maintenance – Alexandria Real Estate EquitiesInsurance – AH&T, Inc.Legal

Corporate counsel – Foster Pepper, Goodwin Procter, FenwickIntellectual Property – Seed IP

Network Administration – IS OutsourceProfessional Development – Nofsinger Group401k – Acumen Financial

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Resources: Facility

Ideal Location1616 Eastlake Avenue E., Seattle, WA 981025-10 minute drive to the ISBEmerging South Lake Union biotech hub

Thoughtful DesignEfficient use of 18,000 sf of space to:

Foster synergistic interactions between companiesProtect proprietary nature of individual technologiesFlexibly adapt to changing space requirements

Eliminate start-up lag timeDesigned to enable companies to do science on Day 1

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Accelerator Candidates

Leading-edge biotechnology which would benefit from access to Accelerator Resources:

ISB Venture CapitalManagementFacility

“Too Early”Technology not sufficiently developed to attract significant top-tier venture capital independently

Milestones within reachIdentifiable fundable MilestonesClear R&D Plan to reach MilestonesTimeline and Budget that relate to that Plan

Driven Innovators, brilliant Innovations“Old School” technology-based investment

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Accelerator: Investment Process

Rigorous technical and IP due diligenceTap into world leading scientific and industrial experts at ISB and network of scientific advisors affiliated with the InvestorsUtilize Seed IP, successful boutique IP firm in Seattle, to provide IP due diligenceSatisfy investment criteria of all Accelerator Investors

Milestone-based investmentsIdentify financeable Milestones Structure R&D plan to fit milestonesBuild budget & timelines to match R&D plan

Standard Series A Preferred Stock investments with customary terms

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Summary

Vehicle for Emerging Biotech InvestmentCapital efficientBandwidth efficientFocused development (milestone achievement)Disciplined assessment

World-Class StakeholdersTop-tier syndicateAnchored by Institute for Systems Biology

Track Record>$44M committed for investments ($35M invested)>$187M invested in Accelerator Companies

accelerator

Accelerator: Then and Now…

2003

Biotech incubators miserable failures

$10M committed

0 companies

Accelerator (one of a kind)

Today

Accelerator working (others in the making)

$187M invested

10 companies

Accelerators

04/12/2023