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L ife S c ie

eThe 3rd Annual Life

Science ConferenceThe 3rd Annual Life

Science Conference

February 2001

Batsheva Elran - Batsheva Elran - Concord VenturesConcord VenturesBatsheva Elran - Batsheva Elran - Concord VenturesConcord Ventures

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February 2001

E&Y Life Sciences Meeting, Feb 2001E&Y Life Sciences Meeting, Feb 2001

• Batsheva Elran, General Partner • Concord Ventures• Diversified VC Fund, over $250M• Specialty areas : Telecom, Software and Healthcare• Dedicated Healthcare group• www.concordventures.com

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February 2001

Adapting Your Investment Adapting Your Investment Structure to the Israeli Reality Structure to the Israeli Reality

Technicalities Technicalities FundamentalsFundamentals

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February 2001

What Do We Look for ? What Do We Look for ?

• Big Market opportunity • People • Technology/science• Business model• Financial strategy • Execution ability • Long term vision

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February 2001

Main Financial Resources for Main Financial Resources for Biotechnology Companies Biotechnology Companies

• Venture funds and institutional investors

• Collaborations with strategic partners

• IPO is not an EXIT

Heavily financed sector $$$$ !

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February 2001

Business Model Business Model

Financial Strategy Financial Strategy

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February 2001

Tools Vs. Product Company Tools Vs. Product Company

• Time to Exit • Risk • Growth Potential – long term performance• Sensitivity to Hype

Y2000 - Toolkit group outperformed product group Y2001 –Back to fundamentals – reverse ? !

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February 2001

Combined Business Model Combined Business Model

• Tools for early revenues and risk reduction

• Products for long term growth

Make tool-deals and migrate to therapeutics

Think Big, Think Forward !

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February 2001

Greater Need for Collaboration Greater Need for Collaboration

• Fewer companies accessing larger amounts of cash

• Increase technology depth and IP base• Increase experience base

Create financable milestone events good luck !

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February 2001