Lessons Learned as an Entrepreneur

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Agenda

  A little about Rocky and past experiences   Some facts about start-ups   Axela Today   Product Life cycle   Tools I have found useful over the years   Axela early days   How we transitioned   Lessons learned

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Over 30 Years Diagnostics & Life Science Industry

Rocky’s Personal Perspective

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Rocky’s History

• Technicon Labs • Becton Dickinson • Third Wave Technologies (TWTI) • Genomic Utilities Inc • Axela Inc

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  60% Of Companies Fail, First 6 months

  82% Fail by 10th Anniversary

  90% New Products Fail

  The average CEO life is 2.5 years

  Statistically and for someone to be successful multiple times in succession is hard (if not impossible)

  I Have not adjusted these numbers for the lack of capital in Canada today…..it is likely worse

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Significantly improve efficiency of post discovery biomarker assay development and validation

Enabling Leader in Personalized Medicine

Leverage proprietary technology advantages to deliver novel diagnostics

Build Leadership in Research Tools & Clinical Research…

…For Tomorrow’s Personalized Diagnostics

Capitalize on game changing methods for interpreting biomarkers (DNA, RNA and proteins) in health research

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Menu, Content and Panels

Proprietary High Margin Consumables

Ziplex® System

Proprietary & Complementary Instrument Platforms

dotLab® System

Content Leverage Across

Platforms

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From April 2003

To Today

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Core Diffraction IP

Consumable Design Disease Specific IP

Incremental Diffraction IP Manufacturing Methods Signal Amplification

Multiplexing Technology

> 150 Patents and applications

Others: Johns Hopkins, Proteome Sciences, Large Tech Company, VWR, CREA Brazil, Many others

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Key events in the history of Axela •  Company founded 2001 by Cynthia Goh

•  Seed funding from Primaxis and Royal Bay Capital •  2003 I was recruited from the states to run Axela

•  Later stage funding support from VenGrowth •  2004 the first prototypes systems developed •  Late 2005 Major in-licensing deal with K-C •  2007 in-licensed multiplexing IP from Beckman

Coulter •  2010 Amalgamated Axela and Xceed Molecular

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  Use a consistent process to assess progress

  Understand where and when you exit ahead of time

  Have clear role definition

  Be honest with yourself and others relative to expectations

  Hire only the best…… and LISTEN!!

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Time Discovering

•  Technological discontinuity -Risk Reward not understood

•  Convergence of independent streams of know-how -Bio-Chemistry -Engineering -Software

Proving and Learning •  Emergence of viable

applications •  Intellectual property •  Market concepts

Committing •  Selection of dominant design •  Creating industry structure •  Claiming intellectual property •  Licensing/Acquiring synergistic technologies

Competing •  Increasing rate of competitive entry •  First mover advantage •  Triggers of shakeout

Based on Model developed by Prof. William Hamilton

Competing Modalities Competing Applications Scientific Research

Technical Development

Commercialization

Inte

nsity

of E

ffort EMK,

SBIR, NIH Research University Contract

-Research-

Internal Development

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Emerging Technology Development

REL

ATIV

E IM

POR

TAN

CE

SCIENTIFIC RESEARCH

TECHNICAL DEVELOPMENT

COMMERCIAL APPLICATION

TIME

SCIENCE TECHNOLOGY COMMERCIALIZATION

PHASES OF TECHNICAL ADVANCE

PROGRESSION OF ACTIVITIES IN THE INNOVATION PROCESS

RESEARCH DEVELOPMENT PRODUCTION MARKETING

TIME Based on Models developed by Prof. William Hamilton

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Emerging Technology Development

REL

ATIV

E IM

POR

TAN

CE

SCIENTIFIC RESEARCH

TECHNICAL DEVELOPMENT

COMMERCIAL APPLICATION

TIME

SCIENCE TECHNOLOGY COMMERCIALIZATION

PHASES OF TECHNICAL ADVANCE

Discovery

• Technological discontinuity -Risk Reward not understood

• Convergence of independent streams of know-how -Chemistry/Biochemistry -Engineering -Software

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Emerging Technology Development

REL

ATIV

E IM

POR

TAN

CE

SCIENTIFIC RESEARCH

TECHNICAL DEVELOPMENT

COMMERCIAL APPLICATION

TIME

SCIENCE TECHNOLOGY COMMERCIALIZATION

PHASES OF TECHNICAL ADVANCE

Proving and Learning

• Emergence of viable applications

•  Intellectual property • Market concepts

Competing Modalities

Competing Applications

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Emerging Technology Development R

ELAT

IVE

IMPO

RTA

NC

E

SCIENTIFIC RESEARCH

TECHNICAL DEVELOPMENT

COMMERCIAL APPLICATION

TIME

SCIENCE TECHNOLOGY COMMERCIALIZATION

PHASES OF TECHNICAL ADVANCE

Committing • Selection of dominant design • Creating industry structure • Claiming intellectual property • Licensing/Acquiring synergistic

technologies • High levels of $$$ commitment

•  Increasing rate of competitive entry

• First mover advantage • Triggers of shakeout

Competing

PROGRESSION OF ACTIVITIES IN THE INNOVATION PROCESS

RESEARCH DEVELOPMENT PRODUCTION MARKETING

TIME

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Early Challenges

•  The single largest challenge is CASH Dictates where you can go, how fast you can get there • The world economy has made this harder

•  Decide what you HAVE (not WANT): a technology, product, or company

•  Align CASH with Exit • Align management, investors and market

opportunity • Things can change, re-alignment is not easy

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•  I should write a book called “Angel turned Devil” • Third wave example • Axela Example

• Take away: • Early capital has higher potential risk, higher potential gain but it has even less odds of paying out unless the business strategy is aligned with investment strategy

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•  Founder/CEO •  Publish vs Profit •  Individual discovery vs corporate asset

•  Deal with serial inventor/founder vs serial entrepreneur •  Expectation creation is important

•  As the company’s domain expertise shifts; •  Does the hand off between inventor and company get

easier or more complex?

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Later •  Everyone has a shelf life and a moment of

strength • Understand it, plan for it, and make changes

when needed • This is very hard especially when it is yourself

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How You Try to Change the Odds?

  Understanding how important communication is

  Failure is inevitable; understand it; scar tissue is important

  Change is constant; embrace it

  Always seek to know what you don’t know

  The importance of passion alignment

  Partner, Partner, Partner

  What Ever you do: •  “Don’t’ Run Out of Money”

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•  In the book the world is flat • Small companies will act large •  Large companies will act small

•  The two things that kill deals is time and greed

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•  Cash is king!! •  Which is harder the first $20 Thousand or the last $20

Million? •  When they pass the cookies take some, no matter

what it costs •  Balance the single dominant investor value

•  Always be ready to learn •  Understand your own limits •  Strong and critical board is as important as good

investors •  Good management wins over good technology •  Be honest with yourself, your fellow employees, and your

investors

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Start-Ups