ohio third frontier joint meeting december 7, 2017 more aggressively scaling; larger raises and ......

Ohio Third Frontier Joint Meeting

December 7, 2017

VFA: Ohio Fellows Program

Ohio Fellows Program

Amy NelsonCEO, Venture for America

Elizabeth BrakeDirector of Ohio, Venture for America

Opioid Programs Update

Idea Phase• 260+ submissions from 24 states, 39 Ohio counties• 50/50 professionals / citizen scientists• Submissions close Dec. 15; Winners announced Jan. 30

Challenge Phase• Launches in February; 3–4 challenge topics• Expert Advisory Panel• ~$2.5MM in prizes

Extensive Ohio and national coverage• Associated Press, Trade Pubs, Radio & TV• Tech2025

Panel Discussion:Accelerating Scalability

Panel Members

Moderator: Craig Chambers

Bill BaumelManaging Director, Ohio Innovation Fund

Bob BeechChairman, CEO & Co-founder, Eccrine Systems, Inc.

Retreat OutcomesCY 2018 Program Plan

Retreat Outcomes

Big Theme: Significantly increase number of portfolio companies more aggressively scaling; larger raises and revenue.

Connected sub-themes:• Mature the system; more exits • 4 or 5 Ohio-based $100mm VC Funds• Need a “scaling mindset” among startup community – more

advisors/executive talent that knows how to go from $1M to $25M sales

• “Not pipeline, but potential” – do more to support the folks that are already here

• “Speed to capital” – don’t leave entrepreneurs hanging on for six months or more

Third Frontier Research andDevelopment Bond Funds

Current Balance

$230 Million

Previously Committed for CY 2018

Entrepreneurial Services Program $34.4 mm Pre-seed/Seed Plus (projected disbursements) $15.0 mmOhio Fellows Program $0.8 mmDiversity & Inclusion Internship Program $0.5 mmOhio Opioid Technology Challenge $3.0 mm

Total $53.7 mm

Continued and New Programming

Technology Validation & Startup Fund

Accelerator Catalyst Program

Coding Bootcamp Support

Accelerator Catalyst Program

Why• Create access for new

participants• Increase visibility/flexibility• Recognize transience of

accelerator model• Breakout future OTF

accelerator support in one program

Focus• Industry/themed• Support for operations

(versus investments)• Limited OTF commitment

(time and $$)

Accelerator Catalyst (continued)

Structure• 3-year grants, non-renewable

• Operating expenses up to $200,000 per cohort, 1-2 cohorts per year per program, matched 1:1

• Small, non-equity stipends

Eligibility• New applicants

• Current grantees who opt out of their ESP sub-grants* (for 2018 or 2019)

*Note: ESPs may propose to operate an accelerator directly, but as a separate grant/project

Accelerator Catalyst (continued)

• Up to 3 new accelerators funded each year

• New or incremental scope only (no substitution of OTF funds for existing support)

• First cohort(s) second half of 2018

Maximum yearly outlay(assuming five-year program):• Year 1: $0.9M• Year 2: $2.7M• Year 3: $4.5M• Year 4: $3.6M• Year 5: $1.8M

Funding

Coding Bootcamp Support

• Industry is mainly For-profit vs. Nonprofit Organizations

• Generally serve medium to large corporates

• OTF Role to Support:– Emphasis toward

Startup and Early Stage– Increasing diversity and

inclusion

• Further research:– Student demographic

make-up– Graduate placement efforts

(Startup vs. Big Corporates)– Long term expansion

strategies (cohort size vs. campus size)

New Commitments for CY 2018

Technology Validation & Startup Fund $6.0 mmOhio Third Frontier Accelerator Program $1.0 mm Coding Camps $0.5 mmTotal $7.5 mm

Grand Total (including previously committed) $61.2 mm

Ohio Third Frontier Commission Meeting

December 7, 2017

Technology Validation & Start-up Fund Program

Lead Applicants/Phases• Phase 1: Ohio research institutions with sufficient internal deal

flow to support a multitude of Phase 1:Track A type projects. Awards from $200,000–$500,000 with 1:1 cash cost share.

• Phase 2: Ohio start-ups and young companies that are a prospective licensee of a technology from an Ohio institution. Up to $100,000 (or $150,000 if in MedTech) as initial capitalization with no cost share.

External Evaluator: Quantum Commerce

Technology Validation & Start-up Fund Program

15th Cycle of the TVSF program. To date, including this cycle:

Current cycle• 21 proposals with 8 recommended for award• One new Phase 1 applied for funding, three returning for funding

Proposals Awards

Phase 1: Track A 232 93

Phase 1: Track B 13 13

Phase 2 197 72

Phase 1 ProgressTo date, 77 Phase 1 complete.

$3,732,800 Awarded

59 Not YetLicensed

$3,594,000 Spent

12 of which have progressed to Phase 2 15

3

LicensedTo Startup

Licensed To Non-Startup

Phase 2 ProgressTo date, 43 Phase 2 complete.

$4,932,198 Awarded$4,665,435 Spent

30 received equity investments totaling

$43.9M

7 Market Entry

24

11 Pre-MarketEntry

Trials/R&D

Overall MetricsAcross the entire program: 148 Projects Reporting

121For Profit Jobs

Created

157Total Jobs Created

$4.6MProduct Sales

$43.9MFollow On

Equity

$14.9MFederal Grants

$69.04MTotal Leverage

OTF TVSF – ROUND 15EVALUATOR REPORT

07 DEC 2017

27

OVERVIEW – ROUND 15§ 8 of 21 proposals submitted this round are recommended for approval.

§ Total grant dollars recommended is $2,250,000.

**Note: Larger Recommendation Totals Reflective of Track 1B Participation.

Round Approval Rate $$ Recommended1 (APR 2012) 35% $950,0002 (AUG 2012) 52% $900,0003 (DEC 2012) 44% $610,0004 (JUN 2013) 30% $864,0005 (FEB 2014) 46% $1,462,0006 (JUN 2014) 39% $998,0007 (OCT 2014) 57% $1,100,0008 (FEB 2015) 37% $710,0009 (JUN 2015) 31% $550,000

10 (DEC 2015) 38% $925,00011 ( APR 2016) 46% $1,239,00012 (OCT 2016) 46% $3,537,269 **13 (MAR 2017) 38% $1,567,500 **14 (SEP 2017) 27% $498,83215 (DEC 2017) 38% $2,250,000 **

Overall 40% $18,161,601Average $1,210,773

28

ROUND 15 RESULTS - APPLICATIONS BY INSTITUTION

Quantum Commerce, LLC

29

TRENDS- ROUND 15


30

PHASE 1 PROPOSALS RECOMMENDED FOR FUNDINGRound 15


Proposal # Lead Applicant Title State Funds Requested Total Budget Recommend

18-0266 CWRU Phase 1-Technology Validation Start-up Fund-Pool of Funds $500,000 $1,000,000 $500,000

18-2067 OU OU TVSF Phase 1B Program Fund $200,000 $400,000 $200,000

18-0268 CCF Cleveland Clinic Technology Validation and Start Up Fund II (TVSFII) $500,000 $1,000,000 $500,000

18-0269 OSU Accelerator Award $500,000 $1,000,000 $500,000

31

TRENDS- ROUND 15


32

PHASE 2 PROPOSALS RECOMMENDED FOR FUNDINGRound 15


PROPOSAL # Licensing Institution Lead Applicant PROJECT TITLE State Funds

Requested Total Project

Budget Recommended Capital Raised to Date

Time to Market

Additional Capital to Market

18-0276 TheClevelandClinicFoundation

EnhaleMedical,Inc.

HypoglossalNerveStimulationDevicefor

ObstructiveSleepApnea$150,000 $150,000 $150,000 $582,000 5 yr $9.0MM

18-0279 TheOhioStateUniversity

LENTECHSLLCLENTECHSSoftContacts

forPresbyopia$150,000 $150,000 $150,000 $25,000 1 yr $5.0MM


SoteraMedical,Corp

EsophagealProtectionDevice

$150,000 $150,000 $150,000 $500,000 2.5 yr $1.5MM


UbihereUbihere,Inc.

CommercializationProject

$100,000 $100,000 $100,000 $0 1 yr $200,000

33

RESUBMISSION AND CARRY THROUGH

§Resubmission• Phase 2

• Seven of seventeen (41%) Phase 2 proposals are resubmissions.

• Four (57%) are Recommended for Funding.

§Carry Through• One of seventeen (6%) Phase 2 proposals were previous Phase 1 awardees.

• It is Recommended (100%) for Funding in this round.

Round 15


34

TRENDS –PHASE 1 PROGRAMS (AL L ROUNDS TO DATE)

Rounds 12 – 15 Results

10 Cumulative Programs Quantum Commerce, LLC

012345678

OCT2016

MAR 2017

SEP 2017

DEC 2017

Phase 1 - Track B Programs

Original Re-apply

35

TRENDS -COMPARATIVE RESULTS (AL L ROUNDS TO DATE)

Rounds 1 – 15 Results

Phase 2 Applications

37% Cumulative Approval


0

5

10

15

20

25

33% 63% 33%

38% 50%

33% 60% 57%

29% 40%

33% 27% 33% 27% 24%

36

CUMULATIVE RESULTS – PHASE 2 (AL L ROUNDS TO DATE)


Ohio Opioid Abuse, Prevention and Treatment Technology Initiative

BackgroundPurpose• Accelerate development and commercialization of promising new products (or

adaptations or modifications) in medical devices, diagnostics, pharmaceuticals, andhealth technology to address issues associated with the drug crisis driven by use,misuse, abuse and addictive potential of opioids. Projects must provide near-termtangible solutions associated with addiction prevention, treatment and overdoseintervention.

Project Focus• Projects advancing technologies that have already achieved technical proof of concept

and for which there is evidence of interest by a potential end-user

• Products that are already in the market where the objective of the project is to adapt ormodify those products to enable reduction of abuse, addictive potential and morbidityand mortality associated with opioid use.

External Evaluator• Quantum Commerce

OHIO OPIOID ABUSE, PREVENTION AND TREATMENT

TECHNOLOGY INITIATIVEEVALUATOR REPORT

07 DEC 2017

40

OVERVIEW

§ 29 organizations submitted proposals

§ Two removed from consideration during ‘quick down-select’ process

§ 27 proposals were all given an in-depth review

• Each fully assessed by 7 evaluators

§ 16 advanced to the interview stage

• Each further assessed by 5 evaluators

§ 7 proposals are recommended for funding

• Each vetted by a total of 9 team members for a minimum of 192 data points per proposal

• Funding recommendation totals ~ $10MM

41

EVALUATION TEAM


§ Gilbert Block (MD, PhD) - Pharmaceuticals/ Medical Technology

§ Robert Landfried (DO) - Medical Technology/ Diagnostics

§ Phil Drew (PhD) - Medical Device/ Diagnostics/ Health Technology

§ Amanda L Workman (PharmD) - Pharmaceuticals

§ End User* (Prior ER/ICU Nurse) - Opioid addiction and recovery perspective

§ Ellen Schoenfeld (3rdYear Med Student) - Research and Proof Editor

§ Camille Rechel (Chemist) - Business Commercial Review

§ Robert Worden (MBA) - Business Commercial Review/ Pharmaceuticals

§ Greg Workman (MBA, Chemist) - Business Commercial Review/ Pharmaceuticals

§ *Name of the end user reviewer is being withheld for privacy considerations

42

§ Down-Select Phase:

• 3 Reviewers (business/ commercial)

• Consists of 14 largely administrative criteria from the Opioid RFP requirements

§ In-Depth Review Phase

• 7 reviewers (3 business and 4 technical experts).

• Consists of 20 criteria in the areas of:

• Program fit

• Crisis impact

• Scientific soundness

• Technological maturity

• Implementation feasibility

• Team and organizational business acumen

• Financial robustness.

METHODOLOGY

Impact Solution Importance

Solution Uniqueness Market Pull Time to

MarketTech

MaturityScientific

Soundness IP

Impact Technical Readiness

Existing Investment Team Project

ResourcesPath to Market

Commercial Capabilities

Market Barriers

Financial Stability

Commercial Readiness

43

§ Interview Phase

• 5 Reviewers (3 business and Interventional Pain Clinician in person, plus End User indirect)

• Interviewee proposal(s) further appraised by an individual with the ‘End User’ perspective

• 10 specific criteria related to

• Real-world suitability combating the opioid crisis

• Integration/ implementation feasibility

§ Recommendations

• Concurrence with RFP criteria and intent

• Prioritized for Impact and Time to Market

METHODOLOGY – CONT.

44

RYG SCORE CONTEXT

§ The RYG is divided into three main categories:

• Crisis Impact

• Technical Readiness

• Commercial Readiness

§ Further subdivided into 15 more granular segments.

§ Red indicates a high-level concern versus RFP criteria, yellow designates moderate concern, and green affirms criteria meet expectations of the Program.

§ Major concerns (Red) within a single sub-segment does not necessarily indicate a full failure

• Dependent upon the extent of the concerns generated during the review process

§ Full category finalized as red - proposal will not be recommended for funding

• Based upon the significance of concern in one segment, or

• Resultant of the category segments in summation

45

RESULTS


46

PROPOSALS RECOMMENDED FOR FUNDING


Proposal/LOI # Company Name Project Title Focus AreaRecommend Funds $MM

TECG201180006 Elysium Therapeutics, Inc. Novel Opioid Analgesics That Prevent Oral Abuse and Lethal Oral Overdoses

Pharmaceuticals $2.99

TECG201180018 Innovative Medical Equipment, LLC

ThermaZone Thermal Therapy for the Reduction of Opioid Usage

Medical Device $0.18

TECG201180020 Cordata Healthcare Innovations

Technology Enabled Overdose Intervention, Treatment and Prevention

Health Technologies

$1.50

TECG201180035 DeUmbra, Inc Predictive Analytics for the Early Identification of Opioid Addiction, Abuse and Overdose

Health Technologies

$0.86

TECG201180005 Sober First LLC The Ascent Solution Health Technologies

$0.46

TECG201180013 Sollis Therapeutics A long-acting, non-opioid, targeted delivery analgesic for severe sciatica pain.

Pharmaceuticals $2.00

TECG201180022 The University of Akron Post Operative Pain Management using Therapeutic Meshes

Medical Device/ Pharmaceuticals

$2.00

A D D I T I O N A L R E F E R E N C E S B E L O W

• Amanda L Workman (PharmD) Pharmaceuticals

• Doctorate of Pharmacy from the University of Kentucky

• Commercial Pharmacist for more than 15 years

• Board Licensed in Ohio and Kentucky

• Extensive experience dispensing opioids and other controlled substances to pain management patients in rural, urban, and suburban environments

• Practical customer interfacing and abuse challenges insight


TEAM MEMBER CREDENTIALS

• Robert Landfried (DO) Medical Technology/ Diagnostics

• DO from the University of New England College of Osteopathic Medicine

• Board certified in anesthesiology and pain management

• Primary focus in interventional pain management

• Experience in implant technology, opioid management and behavioral cognitive approaches

• Medical Director of a Pain Management Medical Center

• Gilbert Block (MD, PhD) Pharmaceuticals/ Medical Technology

• MD from Case Western Reserve University

• PhD in Reproductive Biology/Neuroendocrinology CWRU

• Lengthy career in neurology / neuropharmacology

• Academic, foundation and NIH review committees

• Venture capital companies

• Fentanyl and non-abusable opiates development programs

• Phil Drew (PhD) Medical Device/ Diagnostics/ Technology

• Ph.D. in Electrical Engineering from Harvard University

• M.S. in Applied Mathematics from Harvard University

• B.S. in Mechanical Engineering from Carnegie-Mellon University

• Extensive experience in Medical Imaging, Health Care, and Hospital Operations

• Strategic Analysis, Facility Planning, and Organizational Feasibility Studies


TEAM MEMBER CREDENTIALS – CONT.

• Ellen Schoenfeld Research and Proof Editor

• Third-year medical student at Marian University College of Osteopathic Medicine

• B.S. Health Sciences from the University of Cincinnati

• -- End User*End-User perspective of Opioid addiction and recovery

• Previous Emergency Room and ICU nurse

• United States Air Force - Air Traffic Control Division

• Addicted to opiates for six years, and overdosed once

• Recovering addict - seven years of sobriety

• Sponsor of more than 50 individuals seeking treatment and recovery

• *Name of the end user reviewer is being withheld for privacy considerations


TEAM MEMBER CREDENTIALS – CONT.

• Robert Worden (MBA) Business Commercial Review/ Pharmaceuticals

• MBA from the Darden School at the University of Virginia

• Certified Six Sigma Black Belt

• Over 20 years experience in life sciences, food and consumer products, specialty chemicals, apparel, and community outreach.

• Front line of the opioid crisis, connecting clients battling addiction with treatment, counseling, housing options and medical care

• Experienced reviewer/ leader for TVSF and TCC programs

• Camille Rechel (Chemist) Business Commercial Review

• BS Chemistry from the University of Cincinnati (ACS)

• Over 25 years of Business Management experience in chemical, food, medical device, pharmaceutical, recruiting, and industrial electronics industries

• Patents for polymeric coatings

• Core competencies in customer service, product commercialization, and business development


• Greg Workman (MBA, Chemist) Business Commercial Review/ Pharmaceuticals

• MBA from American Intercontinental University

• BS Chemistry from Otterbein University (ACS)

• Certified Six Sigma Master Black Belt and Certified Quality Manager

• Over 25 years experience in food, pharmaceuticals, and chemical manufacturing; electronics; logistics, and construction services

• Design implementation of Management Systems and Manufacturing Processes from Biotech startups to Fortune 500 multinationals.


ohio third frontier joint meeting december 7, 2017 more aggressively scaling; larger raises and ......

Documents