July 2009: Growthink Live Deals Call The Ten at Ten Lightning Round. July 17, :00 am 10:45 am PST

Transcription

1 July 2009: Growthink Live Deals Call The Ten at Ten Lightning Round July 17, :00 am 10:45 am PST

2 Overview Conference call protocol The Ten at Ten Lightning Round: Short 2 3 minute blind presentations on private equity deals we are currently representing The Growthink Portfolio Investment Vehicle Questions/discussion

3 Conference Call Protocol Minute Call 2. To request materials on a specific deal: a) GoToWebinar toolbar b) portfolio@growthink.com and we will route c) Contact us after call at Recording of call and copies of the slide will be forwarded automatically approximately 1 hour after the call

4 The Deal List CleanTech Deals 1. Patented, Rapid-Growing Tree Technology 2. Eco-friendly Toxic Site Clean Up Services 3. Oil and Gas Drilling Technology Environmentally-friendly Healthcare Tech and Healthcare/Biotech 1. Electronic Health Record Technology 2. Central Nervous System (CNS) Device 3. Anti-angiogenic Drug

5 The Deal List Mobile/Wireless Deals 1. Mobile e-learning for Enterprises 2. Mobile Web Solution - Emerging Markets Miscellaneous Opportunistic Opportunities 1. Community Banking 2. Real Estate (multi-family)

6 CleanTech Sector 1. Patented, Rapid-Growing Tree Tech. Business and Breakthrough Technology: Breakthrough, patented method of growing trees, shrubs and grasses at several times their typical rate Non-genetically modified Provides means to restore large areas of degraded land quickly Have already planted 5 million trees in North America (applied to 250 species) Enormous Market Opportunity: In aggregate, the markets are valued at tens of billions of dollars Nursery production industry, conservation, wetland mitigation, biomass for renewable energy, carbon sequestration Extremely Fast Traction with Large Customers: US Army Corps of Engineers, US Fish & Wildlife, Department of Agriculture, US DOT, other federal, state and local agencies, private growers Quickly becoming known, branded product due to its one-of-a-kind status Highly Profitable and Scalable Expected $5M in 2009 revenue, high gross margins Update: recently closed large book of business

7 CleanTech Sector 2. Environmental Services Business: Pioneering, environmental technology firm that has developed and commercialized a proprietary technology, called Bioleaching, to remediate highly toxic areas resulting from abandoned mining operations. Billions of dollars of funding now available for clean-up. Publicly-traded, the company is headquartered in Toronto, Ontario, Canada and has been listed on the TSX Venture Exchange since year history of designing, building, and operating bioleaching plants worldwide. Having proven the bioleaching process in gold mining, the company is now expanding the technology in the reclamation of other precious and base metals from mine tailings. Update: Business recently profile in Fortune and on CBS Built-in investor liquidity PIPE security Progress on major remediation project in Canada

8 CleanTech Sector 3. Oil and Gas Drilling Technology Business: Oil & gas exploration and recovery from mature onshore US oil fields Focus on wells that have established, proven reserves and undervalued properties Existence of oil substantiated by third party experts Drilling and field work conducted by best of class companies New Drilling Technology: Patent-pending new drilling technology: Abrasive Fluid Jetting Increases production rates and lowers costs Recent drilling experience has surpassed expectations of volume Current Status: Company is now cash flow positive, self-sustaining 90% completed $3M initial round in short-term pipeline Commencing $12M follow-on round driven by investor demand; in currently active investment sector Investment Note: Extremely favorable tax treatment for investors. Angel Investor Opportunity

9 Healthcare Tech 1. Electronic Health Record Technology Business: Houston-based provider of Electronic Health Records (EHR) software and services for small and medium-sized physician practices 600 current physician practices, 2500 users within 39 specialties and 3 foreign countries Positioned to grow quickly in the sea change of the Obama stimulus bill $17 billion (10 x the size of the entire, current EHR marketplace), in federal funds to reimburse medical practices for EHR implementation and use Current Status: Raising $5M to acquire a practice billing system (PMS) and for advertising and sales

10 Healthcare Tech 2. Central Nervous System (CNS) Device Business: Patented neuro-protective irrigant to replace standard saline solution for CNS procedures (saline can actually harm the brain during surgery) Comprised of proprietary blend of proteins, lipid, electrolytes and other components that mimic s the body s cerebrospinal fluid and protects the brain Preclinical studies have demonstrated protection against brain damage Two SBIR grants; vetted by scientific community; highly recommended Scientific and Development Team: Founder completed post-doctoral training in Neurology at Harvard Medical School Scientific Director is current Chairman, Department of Neurology at prominent East Coast medical school Miscellaneous prominent and respected consultants Current Status: Company requires research funding ($1.5M) and business expertise (which we can provide) Growthink is interested in partnering with a biotech or CNS-focused VC to assist firm

11 Healthcare/Biotech 3. Anti-angiogenic Therapy Business: Anti-angiogenic therapies starve a tumor of its blood supply by interfering with this process The peptide apelin is a strong inducer of blood vessel formation (angiogenesis) Company has shown that anti-apelin antibodies can inhibit blood vessel formation (anti -angiogenesis) in animal models Patented technology Product Comps: The anti-angiogenic drugs Avastin and Lucentis (Genentech) target Vascular Endothelial Growth Factor (VEGF) signaling and have been successfully used to treat cancer and age related macular degeneration (AMD) generating sales of US$3.1 B in 2007 Management and Development Team: New CEO: Corporate Vice President and General Manager of Covance Research Products; Former President and General Manager of Monsanto Choice Genetics Current Status: New investment banking client; deal ready in one month

12 Mobile/Wireless Sectors 1. Mobile e Learning for Enterprises Business: The leading provider of enterprise-level mobile training solutions Creates software-based mobile training programs for large clients with employees spread out in stores, etc. Only training provider that: Uses the enterprises existing infrastructure (no more IT investment; more secure) Can work with any mobile device Provides tracking and measurement with the current enterprise architecture Offers training program improvement and decreases costs by 20-40%. Marquee Clients JC Penny, Sephora, Victoria s Secret, Bath & Body Works, HP, and several others Current Status Seeking to raise $4M from remote learning, mobile applications-focused venture investors Generating revenue and profitable Ingenious. We haven t seen a solution like this. No one has been able to figure this out. Senior Manager, ipod Hardware Development Group, Apple Computer

13 Mobile/Wireless Sectors 2. Mobile Web Solution Emerging Markets Business & Market: Proprietary SMS-based browser application to provide a fully functioning web interface over 2G/GPRS networks. Opens market for mobile web applications to 1.5 billion across Africa, Middle East, and South America currently not within data footprint or cannot afford/get postpaid service. Allows carriers to provide previously unavailable data services to pre-paid customers (95% of target market users are pre-paid) on existing handset base. Carriers, handset manufacturers, and content providers benefit. Live in 4 countries; deals with Nokia, Orange, Vodafone, Axiom; content partners include Google, Hotmail, AFP and dozens of others. Facebook and Sony Music in final negotiations. Current Status: Seeking $4 million to execute on carrier contracts, continue product development, aggressively penetrate markets, and sign pipeline of partners. Short term angel investing opportunity right now

14 Opportunistic Deals 1. Community Banking Business: Well-capitalized 12 year old Michigan-based regional bank with over $280 million in assets, located in 5 th wealthiest county in U.S. Six branches, with a history of winning market share from larger incumbent bank branches. Market: With experienced and cautious lending criteria, profitable lending opportunities exist as relative supply of loans has decreased in Michigan and Nevada. The market opportunity and bank capacity exist to increase loan portfolio by more than $100 million (40% growth) in Unique arbitrage opportunity on Net Interest Margin through gathering deposits in Michigan and lending in Nevada. Current Status: One of few actively lending community banks in Michigan and Nevada. Seeking $5 million in equity financing to support growth initiatives. Midwest bank values have plummeted, but are turning around. Pricing to investor is very attractive.

15 Opportunistic Deals 2. Real Estate (Opportunistic) Business: A multifamily investment firm with six years of operating history. The Company currently owns and manages 1,878 multifamily units Portfolio valued at more than $70 million. Consistent track record Occupancy rates above 90% Annual before tax cash-on-cash returns in excess of 15% Management: Principals collectively bring more than 16 years of experience in the industry and have participated in the acquisition, management and disposition of $100+ million of real estate. Current Status: The Company is seeking $5-10 million in equity to acquire an estimated 1,100 + apartment units with an approximate investment value of $28.3 million.

16 The Deal List CleanTech Deals 1. Patented, Rapid-Growing Tree Technology 2. Eco-friendly Toxic Site Clean Up Services 3. Oil and Gas Drilling Technology Environmentally-friendly Healthcare Tech and Healthcare/Biotech 1. Electronic Health Record Technology 2. Central Nervous System (CNS) Device 3. Anti-angiogenic Drug

17 The Deal List Mobile/Wireless Deals 1. Mobile e-learning for Enterprises 2. Mobile Web Solution - Emerging Markets Miscellaneous Opportunistic Opportunities 1. Community Banking 2. Real Estate (multi-family)

18 The Growthink Portfolio Vehicle 1) Invest in all Growthink deals via an integrated investment vehicle 2) Hedging strategy for those that seek venture and private equity return potential, but are: Weary of the high risk and illiquidity of the asset class Willing to sacrifice the 1,000x return for more predictable return and downside protection via diversification 3) Designed for accredited individual investors and funds seeking managed exposure to startups and emerging technology deals

19 To Learn More To request more information on a specific deal: Indicate interest via questions tool in GoToWebinar control panel Growthink, , portfolio@growthink.com

20 Please Note Not a General Offering or Solicitation This presentation does not constitute a general offering or solicitation to purchase or acquire securities. This presentation is intended for professional and accredited investors in the Growthink network who possess a pre-existing relationship with the firm or its professionals. All potential investors who wish to review detailed information regarding any of the following opportunities must be accredited as defined by Regulation D of the Securities Act of 1933.