TRANSFORMING THE FUTURE

Transcription

1 FIRST. TRANSFORMATIVE. PROVEN. TRANSFORMING THE FUTURE NASDAQ : TINY

2 SAFE HARBOR STATEMENT This presentation may contain statements of a forward-looking nature relating to future events. Statements contained in this presentation that are forwardlooking statements are intended to be made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. These statements reflect the Company s current beliefs, and a number of important factors could cause actual results to differ materially from those expressed herein. Please see the Company s Annual Report on Form 10-K, as well as subsequent filings, filed with the Securities and Exchange Commission for a more detailed discussion of the risks and uncertainties associated with the Company s business, including but not limited to the risks and uncertainties associated with venture capital investing and other significant factors that could affect the Company s actual results. Except as otherwise required by Federal securities laws, Harris & Harris Group, Inc. undertakes no obligation to update or revise these forwardlooking statements to reflect new events or uncertainties. 2

3 HARRIS & HARRIS GROUP NASDAQ: TINY 32 Years on NASDAQ NAV/Share: $3.39 (1) (1) NAV/Share as of March 31,

4 CORPORATE MISSION Harris & Harris Group Builds Transformative Companies from Disruptive Science 4

5 COMPANY HIGHLIGHTS 30-Year History Building Companies Holds Equity in Over 20 Transformational Companies Value Not Yet Realized Focused Strategy for Accelerated Growth Strong Interdisciplinary Team Ample Resources to Execute Successfully 5

6 BUSINESS MODEL Invest Early Stage BIOLOGY+ NAV Growth Return Build Value Company Building Board Participation Partnerships Evergreen Structure Facilitates Growth 6

7 OUR COMPETITIVE POSITION Liquid Public VC Firms Public Holding Companies Illiquid Private VC Firms Late-Stage Passive Involvement Early-Stage, Active Involvement Investing in Disruptive Science 7

8 OUR COMPETITIVE POSITION BioTherapeutics & Medical Devices Health Care Services Health Care Technology Chemistry Electronics Data & Analytics Physics Materials Science Engineering Mathematics 8

9 WHY EARLY-STAGE Opportunity to Generate Outsized Returns Addressing Unmet Needs of S&P 500 Corporations Limited Competition Ability to Influence Company Strategy & Execution Unique Skillset for Investing in BIOLOGY+ 9

10 RECOGNIZED LEADERSHIP IN EARLY-STAGE #1 Venture Capital Investor in High-Technology As measured by GrantIQ s SBIR Source in February 2014: 10

11 WE HAVE EXPERIENCE BUILDING COMPANIES BioVex Solazyme Crystal IS (Amgen, 2011) (NASDAQ:SZYM, 2011) (Asahi Kasei, 2011) Xradia Ancora Molecular Imprints (Carl Zeiss, 2013) (CordenPharma, 2013) Examples of recent Biology+ exits (Canon, 2014) 11

12 GAME PLAN FOR ACCELERATED GROWTH Realize Value in Current Portfolio Invest in BIOLOGY+ Partner for Resources & Expertise Return Value to Shareholders 12

13 PORTFOLIO BY STAGE Phylagen ORIG3N TARA Biosystems Accelerator UberSeq ProMuc EchoPixel AgBiome Senova ABS Enumeral SiOnyx EARLY Ensemble Molecular Imprints HZO Mersana OpGen Cambrios Nantero MID BIOLOGY+ Other Metabolon D-Wave Champions PWA Adesto Nanosys Bridgelux LATE Note: Equity-focused portfolio companies, year of first investment and stage classifications as of March 31, 2015, not including 1) our publicly traded shares of Solazyme; 2) our rights to milestone payments associated with the acquisitions of BioVex Group, Nextreme Thermal Solutions and Molecular Imprints; and 3) portfolio companies currently in the process of being liquidated, have ceased or are in the process of ceasing operations and/or are seeking a sale of their assets, including Laser Light Engines, Ultora, Synglyco and Cobalt.

14 METABOLON Actionable Diagnosis Leader in Metabolomics: 3,000+ Studies, 60+ Patents, $96+ Million Cumulative Revenue 2013 Released Three Diagnostic Tests Targeting Diabetes & Cancer Initial Investment: 2006 Capital Invested: $ 7.2 Million Voting Ownership: 10-15% Late Stage Genetics Show Disease Risk Metabolomics Measure Disease Status DNA RNA Proteins Biochemicals Disease/ Treatment Mechanism 14

15 D-WAVE Only Commercial Quantum Computer in the World Demonstrating 10, ,000x Faster Problem Solving Partnered with Lockheed, Google, and NASA Initial Investment: 2006 Capital Invested: $5.8 Million Voting Ownership: <2.5% Late Stage 15

16 HZO Provides Submersion Protection for Electronic Devices Submersion Protection Targeting Wearable, Defense, and Mobile Device Markets Customers Include Top Brands and Manufacturers in Wearables Initial Investment: 2011 Capital Invested: $8.4 Million Voting Ownership: 15-20% Mid Stage 16

17 DISTINCTIVE APPROACH Interdisciplinary innovation is required to address these healthcare challenges. BIOLOGY Electronics Physics Materials Science Chemistry IT Engineering Mathematics HEALTHCARE TECHNOLOGY SOLUTIONS 17

18 A DECADE OF BIOLOGY INVESTMENTS BIOLOGY ENABLES H&H PORTFOLIO COMPANY Engineering Big Data Single Cell Analysis Crop Protection Solutions Physics Predictive Physiology IT Mathematics Material Science Protein Structure Analysis High-Quality Molecular Diagnostics Targeted Bio-Compatible Drug Delivery 18

19 UNIVERSITY RELATIONSHIPS Cornell MIT Universities Harvard Cold Spring Columbia Harbor Laboratory College of CalTech Johns Hopkins Stanford Wooster Arizona State University University of Oxford University Duke Minnesota Tufts University College UC Berkeley Princeton London University of UC Santa University of British Columbia Barbara Michigan University of University of University of Wisconsin Illinois University of Texas Washington Toronto RPI University 40+ Portfolio Companies Note: Includes a selection of the universities from which portfolio technology was licenses or founders established since 2002, which is when the first of the current Managing Directors joined the firm. 19

20 PARTNERING EARLY IS BENEFICIAL Scale & Manufacturing Market Access Scale Market Access Technology Platforms Company Building Corporate Partner Technology Platforms Company Building Corporate Partners are Highly Complementary 20

21 PORTFOLIO PARTNERS H&H Portfolio Public Sector ONR NSF NIST DARPA DOE NIH NASA Note: Includes corporate partnerships since 2002, which is when the first of the current Managing Directors joined the firm. BOSCH Private Sector Google Intel syngenta Microsoft Health Diagnostic Mitsui Laboratory, Inc. LIFE Technologies Synaptics Celgene 3M Unilever Tyco Genentech Sephora LG Innotek Crucell Bunge Oxford Biosciences Bristol Myers Squibb Dow Samsung Pfizer Chevron Hitachi Chemical Novartis Lockheed Martin Metter Toledo Illumina Coherent Boehringer Ingelheim Panasonic Sanofi-Aventix 21

22 CURRENT EXAMPLE OF OUR PARTNERING STRATEGY Corporations currently add value to Harris & Harris Group and our portfolio companies in multiple ways. 22

23 RETURNING VALUE FOR SHAREHOLDERS Generate Meaningful Returns by Increasing Net Asset Value (NAV) per Share 23

24 GROWTH IN AVERAGE OWNERSHIP 20% 20%+ Average Ownership 15% 10% 5% 5% 10% 15% 0% Goal Notes: Average ownership data includes investment-weighted ownership percentages on a fully diluted basis as of March 31, 2015, for unrealized investments including investments in pending tranches of previously closed financings, as applicable. Many of our current portfolio companies may raise additional capital, and depending on many factors our ownership could increase or decrease in these companies as a result of these financings. The data for does not include ownership in Ancora Pharmaceuticals Inc. If this investment was included, the investment-weighted average ownership would be approximately 16 percent. There is no guarantee that the projections of average future ownership will be achieved. Do not place undue reliance on such projections. 24

25 STRONG INTERDISCIPLINARY TEAM Doug Jamison CEO, Managing Director Misti Ushio, PhD CSO, Managing Director Daniel Wolfe, PhD President, COO, and Managing Director Alexei Andreev, PhD EVP, Managing Director Blake Stevens, PhD VP, Senior Associate 91 Years of Experience * 35 Exits for $2.5 Billion ** Domain Expertise *Includes Investing and Industry experience ** Total value of portfolio companies at time of exit without milestone payments since 2002, when first deal team member joined 25

26 COMPANY HIGHLIGHTS 30-Year History Building Companies Holds Equity in Over 20 Transformational Companies Value Not Yet Realized Focused Strategy for Accelerated Growth Strong Interdisciplinary Team Ample Resources to Execute Successfully 26

27 CORPORATE MISSION Harris & Harris Group Builds Transformative Companies from Disruptive Science 27

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