Gaselli Accelerated Market Access Program Concentrating on Market

Gaselli Accelerated Market Access Program Concentrating on Market Assessment and Market Validation 2011 Val Arthur Kratzman, Finpro Washington, DC

Gaselli An Evolutionary & Proven History § § § § Conceived in 2004 as Kasvu (market entry for healthcare companies) and then refined in 2008 as the Smart Future program for life and health science companies Developed to bridge the gap between excellent science and successful business, globally Designed to refocus company, management and board on market signals, drivers and needs, enhancing the chance for successful entry and sustained growth Successfully launched with 8 companies by Finpro and 3 US life science experts Adopted by Fin. Node in 2009 and transformed into Gaselli and the Gaselli Boot Camp Refined, expanded and proven in 2009 -2010 with a launch in China and 3 more US Boot Camps Rolling out in 2011 as Gaselli Health Care

Gaselli Philosophy • • • • Finpro research, as well as two Tekes/Finpro initiatives, the Japan Access Program (JAP) and North American Access Program (NAAP) establishes that with the correct market outreach, understanding and network, Finnish life- and healthscience companies can succeed globally. This connection with the market, typically referred to as Opportunity Recognition, is missing from Finnish business models. This also reflects that the focus of Finnish science and technology companies is the technology not the market. Successful global companies are bottom up defined addressing the needs of the markets. People and companies do not buy products and services, they buy solutions and benefits. The future is about teaching and helping Finnish life- and health-science companies see, understand address the market as the market wants to and expects to be served. It is about identifying, creating and capturing market opportunities (opportunity recognition and exploitation). And, it requires building value (Value Creation) that can only come from securing a better understanding of both a company’s internal and external environments, and, then, transforming that knowledge into an interactive state of being innovative and entrepreneurial. Hence, The Smart Future and Gaselli are about bridging the gap between good science and successful business

Gaselli Transforming Thinking and Focus • The future is dependent upon becoming more commercially oriented and partnering with the best, not the first. A company must establish its global positioning and Gaselli is its activation point. Gaselli will teach Finnish life & health science companies how to create value, refocus their resources, think ahead of the market and act more global. It will develop foresight while building long-term value and sustainability. With the local coaches and industry experts, Gaselli will transform the company using its own science and brain power so that it can change, succeed and grow. Market / Need Business Model Technology

Gaselli Paradigm Shifts for Market Entry Gaselli addresses and shifts the paradigms that are critical to success 1. Selecting the companies based on target market criteria 2. Training to US industry business practice standards vis-a-vis market definition, value props, communications, pitching, business planning and follow up activities 3. Companies spend the right amount of time on market assessment – instead of a one week road show, the companies spend a minimum of one month getting a very concrete understanding of the market opportunities and the real ecosystem 4. Companies are “incubated” in the US following US industry standards at the very dynamic state-of-the-art University City Science Center (www. sciencecenter. org) • Connected networked eco-system – potential customers, partners and VCs – are available through City Science, Finpro and Fin. Node networks 5. Companies will concentrate on their business – not wasting time seeking ‘service providers’ or being mislead by the wrong partners. When ‘service providers’ are needed, there is a pre-screened network available for the best help

Gaselli Proven Concept “Being a startup is like being in a circus, you have to play a variety of roles but with perfection. Bootcamp is a great way to start preparation for the biggest show in the Valley. “ QUOTE FROM A PARTICIPANT – – 6+ companies have established an US legal entity (incorporated) 10+ companies have been incubated for a month in Silicon Valley Companies raised 7. 5 million euros of funding To date, 36 companies in ICT/SW&DM in Silicon Valley and 8 companies in Cleantech in China • 11 NIY companies • 75% of companies are active in the US (Linko. Tec) Meontrust

Gaselli Value Proposition Before you spend your 1 million euros – wouldn’t it be good to know what you should know! It will only take you a few months to know that… What is Gaselli • Interactive and hands-on process to validate the market opportunity in target markets • Verifiable Market Assessment and Market Validation preparation for successful market entry Who Needs Gaselli • Growth companies who need to make go/no go decision for market entry (cash flow funded, VC funded, NIY, GAP, Vigo, etc. ) • Companies seeking global expansion in unfamiliar markets Why Gaselli • Because of market characteristics, immersion is a critical success factor for the company executives to validate the investment and learn the market • The phased evaluation process optimizes the costs and time spent Run by experienced people and gurus from the markets and industries (been there – done that)

Road Map and Perspective I D E A / C O N C E P T • Rivals • Customers • Complementors • Substitutes • Government • Entrants • Environment • Suppliers • = Strategic Industry Factors Internal Assessment • Needs definition • HR calculations • Resource & capabilities audit • Ask: why will someone buy this from me • Test where you cannot get hurt • Perfect • Go for low hanging fruit • Refine BP and plan for execution & change • Market soft-test • Ask what’s wrong • Modify • Adapt • Reassess • Enhance your network Gaselli Starts Here and Works Backwards Pitch & Market Strategic Value Go & Target(s) Discovery Research Assessment Proposition Reassess Confirmation • External information applied internally • Prepare for TD • Build your network • First draft of BP • First draft of message platform & positioning • Know your value • Know your benefits • Know your audience • Know your network • Know what's wrong & prevent it / Val Arthur Kratzman© 1994, 1998, 2000, 2002, 2007 ry • Listen to, internalize and exploit your market • Ask what’s wrong and fix it • Position yourself as a valuable & needed resource M A R K E T & D E A L F L O W

Gaselli For Companies - Get selected - Integrated path with other services EVALUATION - Partners preselecting - Each bringing 2 -3 companies - Partners: - VCs - Tekes/NIY - Vigos - OSKEs - Te. Ve - ELY Centers - Communities - Associations - GAP - Value prop and pitch - Market and Biz ecosystem understanding - Tools for future - Evaluate your story - Tap into Community - 1 on 1 debrief € 1. 5 k/company BOOTCAMP - 2 days - 10 -14 comp - 2 pl/comp - interactive - Initial market potential validation - Biz/ecosystem understanding - Preparation for incubation -1 on 1 debrief - Initial market intelligence - Readiness for the incubation & market assessmant € 3 k/company GO NO workshop - By experts - Ind & region specific - Value prop - Pitching - Finpro CR and FINLAND Regions selecting also 2 -3 clients € 15 k- € 20 k/company DISCOVERY TOUR - 1 week - small group GO NO of companies - € 3 k/comp - Initial market validation - Biz environ understanding - Preparation for incubation OPTIONAL/REGION (rarely in US) PREPARATION INCUBATION - Fine tuning of value prop - Interaction with Finpro Region -Initial market intelligence - Preparation for incubation, meetings etc. - Arrangements - 1 month - At incubator - Indiv company - Client specific - Market assessment & validation - Biz dev - Strategy - Ecosystem FINLAND FINPRO ‘REGULAR’ PROCESS AND SERVICES, OTHER REGIONS Bootcamps are 2/yr/industry/region - Biz dev and strategic positioning - Competitive landscape - Go-To-Market strategy - Company infra - Access to companies and ecosystem - Go or No. Go 2 months – 12 months REGION GO NO

Gaselli Your Investment Before you spend your 1 million euros – wouldn’t it be good to know what you should know! It will only take you a few months to know that… SEGMENT COST € TIME Bootcamp 1, 500 2 days Discovery Tour (optional) 3, 000 Gaselli 1, 000 Travel 1, 000 Hotel 500 Per Diem 7 days Preparation Part of Incubation 5 -10 days Incubation 18, 000 Gaselli 1, 000 Travel 3, 000 Accommodation 2, 000 Car 1, 500 Per Diem 1, 000 Incubation 30 days Total Own Expenses 7, 500 – 10, 000 Total Gaselli 19, 500 – 22, 500 Total 27, 000 – 32, 500 Company self-funding VARA: 12, 000 – 17, 500 NIY 0: 6, 750 – 8, 125 44 – 49 days

GASELLI MARKET ACCESS PROGRAM FLOW Submission evaluation by Finpro Plan/1 Pager evaluation by Finpro, trainers Plug & Play others INCUBATION C 1 C 2 C 3 . : C 4 C 10 C 5 Pitch + Biz Plan + screening with Plug & Play, others & Finpro SP 1 Plug & Play or other Incubation, 1 -3 months C 1 SP 2 SP 3 SP 4 SP 5 Company Specific Limited Service + Outside Services + Finpro Services Designed for Market Assessment and Market Validation Company specific Market Entry In Philadelphia Business Development and preparation In Finland Preparation and planning in Finland for Silicon Valley incubation (strategy, plan, Ecosystem, meetings, etc. ) In Finland Bootcamp in Finland TEKES NIY Finpro VCs TE Centers Big companies Others In US PREPARATION Preparation and planning in Finland for the Bootcamp. VERSO OSKE TEVE BOOTCAMP Selection of the companies for the program. Growth Companies Pipeline (100 s) C 1 = company SP 1 = service provider

Gaselli Agenda – Day 1 Thursday, May 19, 2011 8: 30 Registration / Arrival + Coffee 8: 45 Welcome Remarks and Bootcamp Overview 9: 00 Attendee's Self-Introductions 9: 30 Gaselli Program Overview 9: 45 Top 10 Mistakes in Business Plans Today 10: 45 Coffee break 11: 00 Perfecting Your Positioning (Elevator Pitch Version) 12: 45 Lunch 1: 15 Defining & Communicating Your Messages 3: 15 Coffee break 3: 30 Heroes – Real Stories from Real Finns 4: 30 Day Recap 4: 45 Networking Coctails 4: 45 End of the Day 1

Gaselli Agenda – Day 2 Friday, May 20, 2011 8: 30 Arrival + Coffee 8: 45 Day Overview 9: 00 What’s Hot and Key Drivers in the US Healthcare Arena 9: 45 What Your Partners Expect to Hear and How to Say It 10: 45 Coffee break 11: 00 Creating & Leveraging Your US Scientific Advisory Board 12: 00 Elevator Pitch Preparation 12: 45 Lunch 12: 45 Elevator Pitch Test 1: 35 Coffee break 1: 35 Elevator Pitch Workshop 4: 50 Boot Camp Wrap-up & Next Steps 5: 00 Boot Camp ends 6: 30 Graduation @ US Embassy in Helsinki (Ambassador Oreck) 8: 00 Event ends

Gaselli Quotes from the participants in the Boot Camps (1/2) • “Gives your company clear understanding of the challenges and opportunities in entering the US market. Very pragmatic approach. ” • “Highly recommended event for Finnish companies that are looking into the US markets. Great speakers that everyone has a lot to learn from. ” • “The trainers did very well. Very practical/hands on approach was appreciated, I never had the feeling that I should be somewhere else. “ • “After the workshop we had a very clear understanding what is needed to enter and also it highlighted some of our weaknesses. ” • “During this economic downturn, I think it was very valuable to hear what are things that any company should focus on in America and also how to focus on communication techniques in the US. ” • “Fantastic event with up to date insights on how to raise money, communicate, how to set up in the US, definitely worth the time. Want more!” • “You missed great chance to learn – You must attend next time!” • “The boot camp was very valuable event, I give 9 (with the scale of 1 -10). ”

Gaselli Quotes from the participants in the Bootcamps (2/2) • “Being a startup is like being in a circus, where you have to play variety of roles but with perfection. Bootcamp is a great way to start preparation for the biggest show in the Valley. “ • “Are your targeting US market? Do your home work properly and take part in the Gaselli Bootcamp!” • “If you plan to take your business to the US, attend the Bootcamp in as early phase as possible. ” • “Gaselli bootcamp gave us means to build credible investor meeting material and skills to hold one successfully. ” • “If you want to go to USA, listen to those who have done it and do the Gaselli Bootcamp. ” • “Be prepared to fundamentally rethink the way you present your business. We did!” • “Even though I have built a couple of startups before, pitched to international investors and done deals with international customers, I still learned a lot from Bootcamp and more importantly got crystal clear advice on what really matters when approaching investors and the market. ” • “The Bootcamp is encouraging and efficient way to test your business plan and especially your sales and investor pitching. It is not only efficient, but it is also great fun. ” • “The Gaselli Bootcamp was essential to our business because we left the camp with tangible tools to sharpen our sales focus and chart our future path to internationalization. ”

Gaselli Bootcamp trainer, Bill Joos is the principal of "Go To Market Consulting", based in Palo Alto, California. He works with early stage startups, venture capital firms and their portfolio clients. He spent nearly 7 years as the VP of Entrepreneur Development at Garage Technology Ventures, an early stage venture capital firm that he cofounded along with Guy Kawasaki. His reputation at Garage was that he provided their clients with effective, hands-on, action-oriented strategic and tactical mentoring and coaching. Bill has worked with literally hundreds of early-to-mid stage high technology startups and helped them polish and clarify their messages and refine their fund-raising and customer presentations; but his contributions to them extended well beyond being a "Pitch Doctor". He has mentored and coached them in go to market strategies, revenue and pricing optimization, business alliances, business development, partnerships, and marketing. Over 20, 000 entrepreneurs worldwide have attended conferences where Bill has been a featured keynote speaker on various entrepreneurial topics. He has also held sales and marketing positions with a variety of companies, including IBM and as the Sales VP at the software division of Apple Computer.