Triton Technology Fund Presentation to Dean s Engineering Council March 22, 2013
Generate Returns for LPs/GPs Motivation for Fund Catalyze translation of UCSD discoveries for the benefit of society Enable faculty to be entrepreneurial, while keeping focus on teaching and research Fill gap in San Diego Innovation Ecosystem. Generate revenue for Jacobs School/UCSD; support sustainability for von Liebig Center Build the reputation of the Jacobs School/UCSD (and San Diego) as a center of innovation and entrepreneurship
Structure $15 Million Fund Externally managed, for-profit Focused on UCSD technology Experienced VC advisors who have long-term relationships with UCSD Close collaboration with von Liebig Center and TTO Balanced portfolio with targeted exits planned within three years Telecomm, Medical Technologies, Internet/IT, Nanotech/Materials, Energy
Fund Strategy Seed a Large Number of UCSD Inventions Mentor them through Proof of Concept/Validation Selectively Provide Follow-On Funding to Reach Value Inflection Facilitate Early Targeted Exit
Funding Strategy $1 M Jacobs School Conditional Pledge $4M Initial Investors Launch Program $10M Institutional Investors
The Path to $5M Jacobs School of Engineering Steve Hart, Chairman Dean s Council David Schwab, Vice-Chair Dean s Council Presentation to entire Council Presentations to Accredited Investors $1M $250K $250K March 22 March-June Potential participation by Venture Funds
The Path to $15M VC Funds Small Family Offices Corporate Strategic Investors Qualcomm IBM Cisco EMC
Return Participation-First Five Million Distribution of Profits Limited Partners (including Jacobs School) 85% 85% to LP 15% to GP Fund 10% vlc 5% Fund 10% Jacobs School/vLC 5%
Return Participation-Next Ten Million Distribution of Profits Limited Partners (including Jacobs School) 80% 80% to LP 20% to GP Fund 12% vlc 8% Fund 12% Jacobs School/vLC 8%
John Rodenrys John Rodenrys San Diego community Expertise: Life Sciences & Hardware VC Firm: Leading Biosciences Founder of 7 vlc startups Negotiated 14 licenses with the OTT
Strong Partnership with UC San Diego Fund to review disclosures as they are released by Technology Transfer Fund will Benefit from von Liebig Center/VC Advisors Researcher Relationships Service Agreements with von Liebig Center Project management/mentoring provided by von Liebig Advisors Seed Funding for Commercialization in the form of sponsored research agreements with UC San Diego Licensing and Patent Fees
von Liebig Advisors = Triton Project Management Domain Experts Clean Energy Life Sciences Information Technology Software Electronics Structural & Materials Cleantech Semiconductor Wireless Communications Experienced CEOs, angel investors, and serial entrepreneurs Experts in entrepreneurism, technology commercialization, and strategy development 25+ years experience on average IPO, startup buyouts, creating and developing new markets Deal flow and due diligence in technology fields Active members of the San Diego innovation ecosystem Hand selected for their combination of technology and business acumen, their ability to merge the two worlds and successfully translate technical discoveries to successful business outcomes Mary Zoeller Mike Elconin Hal DeLong Michael Krupp Tim Rueth Kai Wenk-Wolff Jaime Guzman-Fournier Steve Flaim Jack Savidge Rick Cooper Jim Corlett Jan D Alvise Rakesh Kumar
Value Proposition The Value Triangle Strong IP Large, addressable market Experienced management team Triton fund unique proposition Unique access to strong IP (excellent starting point) Match IP to markets (strong network of advisors) Leverage von Liebig advisors for true, day-to-day, help Access to technical and management talent as the company expands Access to strategic exit eco-system
Management & Investment Decision Process Managing Director John Rodenrys Operating Committee Dave Schwab John Rodenrys UCSD-designated Investment Professional San Diego-based Investment Professional Investment Decisions Kill Decisions Operational Decisions Advisory Committee Outside Domain Experts Researchers, UCSD & External Entrepreneurs Venture Capitalists
Technology Acceleration Process & Funding Phases Faculty Disclosures Released by Tech Transfer Investment Fund Investment Committee Decisions Fund Independently Screens 100s of disclosures Research Relationships Proof of Concept $60K + IDC License Option Debt instrument A Round $100K + IDC License Executed Debt instrument B Round $250K + IDC Von Liebig Advisors Provide Project Mentoring/Management
von Liebig Track Record Examples Netsift - Sold to CISCO for $30 Million Ortiva Wireless - Sold to Allot Communications Pulsar Diagnostics - Sold to Occusense TAAZ -Revenue Positive, 54 employees InflammaGen Therapeutics - Product in Phase II Clinical Trials: 9 Pharma Companies Under CDA
Unique Strategy Start with strong IP Summary Start with 85% ownership position Surround Project with Working Advisors Leverage SBIR $ s Capitalize on Early Exit Opportunities Leverage Leverage Advisors Leverage Operating Committee Leverage von Liebig Investor points Model produces 3X-5X over 5-7 years Debt program protects capital Cost effective management