inovexus presentation 2015
TRANSCRIPT
FINANCING & MANAGEMENT SOLUTIONS FOR INNOVATIVE FAST GROWING
FRENCH COMPANIES
February 2015
SLIDE 2CONFIDENTIAL
MISSION STATEMENT
Based in California, Inovexus reinvents the funding and new venture management process for early stage innovative companies. Inovexus helps raise growth funding for these companies from a variety of sources, including:
Our own private fund US business ventures Traditional PE and VC funding sources from California and FranceCrowd funding platforms
The Inovexus model, which targets seed and cap-dev (pre-IPO) funding stage companies, is a unique solution to the problem of launching a high tech small/mid cap company in the complex US market. Our model combines the best aspects of PE investing, management consulting, and business development to speed up financing and quickly boost funding and launch- steps that greatly increase the potential for acquisition or IPO in the US market.
Inovexus combines 25 years of strategic experience with an impressive track record of financial, business, scientific, technical, and legal expertise to deliver a unique high-growth boosting model.
SLIDE 3CONFIDENTIAL
INOVEXUS BUSINESS MODEL
Our goal is to improve project value and prepare companies for funding using a French-American process.Our assessment of company risk guides us in establishing a suitable collaboration agreement, including both cash + equity.
Reaching our business and financial goals, we are looking to exit the process through an acquisition or IPO.
EXITBOOSTINGFUNDING
Our goal is to boost the launch and development process through the Inovexus US team and the financial California eco-system.Compensation is based on management fees for general services, success fees based on specific milestones, and sweat equity.
Through our various funding sources, we are able to boost the launch and funding of early stage innovative companies with high growth potential.
From initial business boosting to US launch to exit, we expect this process to take anywhere from three to five years.
SLIDE 4CONFIDENTIAL
INOVEXUS BUSINESS PROCESS
Equity US entity
Validation
MOU formation to establish parameters and
roles for the business relationship
Launch
Play an active operational role to boost the launch
process.
Recruit team members (via partnerships, esp. with
MBA programs).
Recruit senior managers (via executive committee
shared network).
Prepare for new funding
Prepare for exit strategy
Funding
French Government grants
Seed fund from France
Seek US Funding
Agreement
Determine optimal funding mix (private
investors, government grants, etc.)
Validate working relationship and establish
contractual agreement
Evaluation
Evaluation of:IP, revenue, team, global
potential growth, portfolio synergies, other factors
Establish milestones, corresponding success
fees, and equity provisions
Validate Budget (including management fees) based
on new Business Plan
Within 4 weeks, deliver a new plan to validate potential growth and
collaboration guidelines
SLIDE 5CONFIDENTIAL
THE INOVEXUS FINANCIAL BOOSTING PROCESS
HR Boost $ Boost
Value Boost
» Inovexus Team» Inovexus Investors» Inovexus Strategic
Committee» Sweat Equity
agreement based on milestones
Agreement
» Improve business model
» Improve financial assets and forecast
» Increase market opportunities
Increase Value» 2 to 3 times value
increase» Lower dilution» Higher and faster fund
raising process» French-American model
Raise Funds
» Inovexus receive equity.
» Inovexus receive management fees to launch and co-manage US operations.
Launch
SLIDE 6CONFIDENTIAL
1
THE U.S. FAVORS STARTUPS
US early-stage companies raise much more funding, on average
Avg funding per early-stage startup in 2013 was $1.1m in the EU and $4.8m in the US
2 Although there are a comparable amount of VC firms in both the EU and the US, total capital is much higher in the US
In 2013, US VC firms had almost 3 times the amount of capital under their management
77% more
793 firms874 firms
$70.5 billion $193 billion
Total venture funding for startups totaled$7.6bn in the EU and $37.9bn in the US in 2014
SLIDE 7CONFIDENTIAL
3
THE U.S. FAVORS STARTUPS (CONT.)
Exit valuations and frequency for early-stage companies is much higher in the U.S.
Avg exit value per early-stage startup in 2013 was $7.0m in the EU and $44.1m in the US
4 Simply put, it’s just easier to do business in the US than the EU
The World Bank’s rankings for “ease of doing business” highlights in credit efficiencies and the ease of raising capital in the US
There were only 211 early-stage exits in 2013 in the EU, compared to 376 in the US
E.U. U.S.
211 exits 376 exits
The US is in the top ten rankings for many major categories pertaining to doing business for startups.
Overall Getting Credit Resolving Insolvency
36
E.U. U.S. E.U. U.S. E.U. U.S.
7
53
2
32
4
SLIDE 8
THE FRENCH-AMERICAN ADVANTAGE
CONFIDENTIAL
The Human Factor
French government is aggressively supporting and financing R&D.French education system produce great scientists and engineers.
The Business Factor
European market and economy still weak in comparison to the US market. In life sciences and IT, California represents the largest number of global leaders.
The Financial Factor
Nasdaq / US is one the most attractive financial system80% of European M&As are being done through a US company
Both, France and US represent a strategic competitive advantage once combined together under one model.
SLIDE 9
THE INOVEXUS MONEY ADVANTAGE
“Those who embrace emerging technologies, disruptive or
sustaining to the core business are to be found in the venture
community. Invest, innovate or be left behind”
-M. Fields in ‘OpenMarkets’ on Alibaba’s IPO
The Inovexus model allows strategic partners to invest in technologies that enhance their business
Capitalizing on the firms managed by Inovexus, strategic partners gain money making and saving opportunities by acquiring access to enhancing technologies sooner than competitors at costs well below a typical IPO
Inovexus & Emerging - Disruptive Firms
Corporate Venture Capital (CVC)Business Development (BD)
Corporate M&A
New, Inexpensive Technologies
CONFIDENTIAL
SLIDE 10
Inovexus utilizes tactical management practices to propel seed and early stage firms that have displayed exponential growth trends
By targeting French firms on pace to reach the knee in the curve, Inovexus capitalizes on technological capabilities that arrive faster than the ones preceding
Through strategic partnerships with Corporate Venture Capital (CVC’s) and Business Development (BD’s), Inovexus creates a platform where emerging and disruptive technology firms rapidly capture exponential growth prior to the M&A and IPO stages
THE INOVEXUS TIME ADVANTAGE
CONFIDENTIAL
SLIDE 11CONFIDENTIAL
STRATEGIC PARTNERSHIP
Since 1985, CONNECT has assisted in the formation and development of more than 3,000 companies. The leadership of CONNECT attributes its success to the unique culture of collaboration between industry, capital sources, professional service providers and research organizations that CONNECT has sought to foster in the region.
CONNECT was originally founded as a part of the University of California (UC) San Diego in the mid-80s. At that time traditional industries in the region were on the decline, the attraction of companies to the San Diego region was very difficult and region leaders were searching for a path to economic renewal and sustained growth.
SLIDE 12CONFIDENTIAL
KEY RELATIONSHIPS WITH INVESTMENT COMMUNITY
Key relationships with top investment leaders in USA and France
The Inovexus model is attractive both for both sides; all parties benefit from our model, which increases the odds of a successful business launch, new jobs, fast
funding and higher potential exit.
US Corporate Venture Capital
European R&D Grants and Financial Supports
SLIDECONFIDENTIAL
Inovexus Team
13
The Inovexus Management team has over 30 years of combinedexperience in French-American business development and management,
focusing on the IT, life science, and med-tech industries. Inovexus also has agrowing team of advisors in place to help boost and launch innovative companies
into the US market under high-growth business models.
This combination of international business knowledge and subject-matterexpertise places the Inovexus team in a unique position to aid companies
targeting acquisition or IPO in the United States.
Founder & CEO
Philippe Roche
www.linkedin.com/in/philipperoche
SLIDECONFIDENTIAL
Inovexus Advisors – Life Science
14
Executive Advisorfr.linkedin.com/pub/laurent-de-narbonne/1/514/a32
Dr. L. de Narbonne
Executive Advisor
Jean-Pierre Hermet
fr.linkedin.com/in/jeanpierrehermet
Executive Advisor
Dr. Steven Cohen
http://www.facesplus.com/dr-steven-cohen/about/
Executive Advisorhttp://www.linkedin.com/in/richardghalie
Dr. Richard Ghalie Executive Advisorwww.linkedin.com/pub/john-lyon/5/ab5/49
John Lyon
Executive Advisorhttps://www.linkedin.com/in/alainrolland
Alain Rolland
SLIDE 15CONFIDENTIAL
Inovexus Advisors – IT and Emeritus
Emeritus Advisorfr.linkedin.com/pub/david-martinon/24/a96/997
David MartinonEmeritus Advisorhttp://www.forbes.com/profile/harvey-white/
Harvey White
Executive Advisor
Jean-Marc Bronoel
www.linkedin.com/in/jmbronoelExecutive Advisor
J. Chris Lonchampt
www.linkedin.com/in/jclonchampt
General Counselwww.linkedin.com/in/rossepsteintechlawllp
Ross EpsteinExecutive Advisorwww.linkedin.com/in/tomashagenfeldt
Tomas Hagenfeldt
Executive Advisorwww.linkedin.com/pub/claude-benchimol/2/82/23b/
Claude Benchimol
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