TECHNO VENTURE MANAGEMENT Summit on Innovation National Science

TECHNO VENTURE MANAGEMENT Summit on Innovation National Science and Technology Council Washington, DC November 30, 1999 Dr. Peter L. Levin TVM Techno Venture Management Page Washington - White House - 29 December, 1999 - Peter Levin www. tvmvc. com

TVM Techno Venture Management • Offices in Munich & Boston • Founded in 1984; TVM I, TVM III, TVM IV funds • 160+ investments in D, USA, F, CH, UK, A, E • 40+ IPOs • Have built 22 international companies • $480 million under current management Page 2 Washington - White House - 29 December, 1999 - Peter Levin www. tvmvc. com

TVM Focus • Information Technology • Software • Computer - Network Components and Systems • Telecommunication • IT-Services and E-commerce • Life Sciences • Genomics and Chemistry • Drug Delivery Systems • Tissue Engineering and Replacement Medicine • Bioinformatics Page 3 Washington - White House - 29 December, 1999 - Peter Levin www. tvmvc. com

What Venture Capitalists Look For MARKET TEAM • expertise • experience • prior success • structure • leadership, management, and technical positions • advisory board and external relationships IDEA M AR KE T AM TE DEAL ID EA • represents dramatic technical improvement or innovative constellation of services • reasonable barrier to entry fortified by intellectual property protection speed to market • complements or enhances existing products available from large suppliers • scalable Page 4 Washington - White House - 29 December, 1999 - Peter Levin CE AN N FI • large and growing space • few or no incumbents • typically non-branded products and services • intelligent, adaptable positioning • channel occupation/expansion • TVM brings strategic value, especially for trans-Atlantic opportunities FINANCE • sensible valuation, reasonable terms • sustainable burn rate • clearly defined, achievable milestones • qualified syndication partners www. tvmvc. com

Levels of Innovation, and Government’s Role The design, prototyping, manufacture, distribution and even sales at different levels of hierarchy are increasingly facilitated by ubiquitous and inexpensive electronic networks. design components manufacture devices integration systems assembly networks services phone radio tv Government regulation of access and licensing, facilitation of standards and technical performance requirements. Page 5 Washington - White House - 29 December, 1999 - Peter Levin e-print e-com Government protection of fair market access, intellectual property, transparent tax structure and product safety. www. tvmvc. com

Where Government and VC Drive Innovation Government Labs Research Investments Education NEW IDEAS • Protection of intellectual property • Equal opportunity to access markets • Regulation, taxation, and product safety Public sector procurement Page 6 Exchange of Goods & Services Universities Corporate Labs Entrepreneurs • Commercialization and technology transfer • Forming relationships and alliances that enable new market entrants • Help create new sectors Demand Washington - White House - 29 December, 1999 - Peter Levin Advanced IT services www. tvmvc. com

Sustained Opportunities in the “New Economy” Pu He bli c al th I In nf o fr a r m st at ru io ct n ur e National Security Page 7 Washington - White House - 29 December, 1999 - Peter Levin www. tvmvc. com

Incentives for Innovation • Infrastructure • vibrant and active centers where new ideas can be developed and explored; training new participants • Technology transfer mechanisms • access to publicly funded break throughs, transparent and enforceable regulations that promote innovation and protect public interest • Commercial access • fair and transparent negotiations with incumbent owners of wire-line assets; US access to foreign markets Page 8 Washington - White House - 29 December, 1999 - Peter Levin www. tvmvc. com