value in transparency: how foresite capital uses anaplan to improve fundamental analysis and scale...

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8Smarter planning appsfor numbers-driven

companies

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Value in TransparencyStephen Peterson, Senior Investment Analyst – Foresite CapitalNoah Dennis, Investment Analyst – Foresite Capital

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Stephen PetersonSr. Investment Analyst

Speaker photo

Noah DennisInvestment Analyst

Speaker photo

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Foresite Capital Management

*Assets Under Management (AUM) = Uncalled Capital + Fair Value of Investments as of March 31, 2016

• Growth equity healthcare• Founded in 2011• ~$1 billion assets under management• Public and private securities• All areas of healthcare: biotechnology,

pharmaceutical, medical device, healthcare services, healthcare technology

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Investment Team

Technical AnalyticsScientific ValidationClinical EvaluationRegulatory AnalysisIP Evaluation

Business AnalyticsCommercial AnalysisFinancial Analysis, Model & Valuation Deal StructuringExit Analysis

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“Deal Sourcing

Woody Allen

80% of Success is Showing Up

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Initial Screen 1,000 Financings per Year

Initial Diligence 300 Companies

Deep Diligence 80-100 Companies

New Investments20 Core Positions

~1,800 Healthcare Financings Raise $160B per Year

“Back of Envelope” Initial Screening Model

Full Financial Model

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Financial Models =

The Link between Quantitative & Qualitative Analysis

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Key Objectives • Understand true business economics

• Determine key value drivers & sensitivities

• Estimate fair range of intrinsic value today and how it will evolve

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Our Job =

Put Every Investment on a Level Playing Field

(Identify True Opportunity Cost of Capital)

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Prior to Anaplan

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Today Q3 2016

Q4 2016

Q1 2017

Q2 2017

Q3 2017

Q4 2017

Q1 2018

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q2 2019

Q3 2019

Q4 2019

$0.0 $20.0 $40.0 $60.0 $80.0

$100.0 $120.0 $140.0 $160.0 $180.0 $200.0

Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6 Scenario 7Scenario 8

Expected value per share

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What’s Important: Transparency & Flexibility

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What’s Important: Internal Consistency

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What’s Important: Efficiency

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Anaplan, Day 1

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Using Anaplan to Find a Solution

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