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Life Sciences Starters

“The Financial Challenge”

Pieter Rhemrev – PPM OostFebruary 26, 2015

The Challenge

The financial challenge

• Why?

• Subject of today!

Agenda

1. Brief introduction of PPM Oost NV2. The main subject: The financial Challenge3. Lessons Learned4. Questions & Summary

Introduction PPM Oost

• Regional venture capital fund

• Private fund, Public funding

• Public shareholders

• Revolving fund

• Matching fund

• Minority interest

• Standard VC conditions & terms

• Active shareholder

• Positive impact on regional economy

• Market returns (exit driven)

• Maximum € 2,5 mio

Shareholders

Our motivation

Facts & figures portfolio PPM Oost

Figures Life Sciences & Health

Portfolio

Portfolio LS&H

Agenda

1. Brief introduction of PPM Oost NV

2. The main subject: The financial Challenge

3. Lessons Learned

4. Questions & Summary

The Financial Challenge

Entrepreneurs view:

• Enough funds available

• Good proposition

• Successful/profitable

• Success rate 5%-10%

Investors view:

• Many fail (20/80 rule)• Difficult to make a positive ROI

Conclusion:

• No science/formula• People's business

The Financial Challengeeach phase of life cycle has its own source

Vouchers

RedMedtech Discovery Fund

Gelderland voor Innovaties

Vroege fase financiering (Rvo)

I.K.Informals/business angels

PPM Oost Funds

Family /own capital ------------------

Bridge the challenge

Characteristics LS&H

• Capital intensive

• Long time to market

• Severe regulations

• Cost pressure

• High risk

Answers

• Good BP

• Second Opinion

• Experience

• Knowledge of the risks

Bridge the Challenge

• People’s business

• Confidence

• Match

• Understanding

• Many meetings investors

• Meetings experts

• Improve BP

• Positive drive/attitude

Agenda


Lessons learned

• More time

• More money

• Too optimistic/ Not realistic

• No knowledge

• Find investor who understand the business

• Deep pockets

• Scenario’s

• Knowledge

Agenda


Financing is people's business

Thank you for your attention

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