InNOVAcorp Business Model Overview

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InNOVAcorp Business Model Overview

• Dan MacDonald
• March 2007

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Example Clients
Information Communications Technology
Life Sciences
Technology Industries
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Fueling Sustainable Economic Growth
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High Performance Incubation (HPi)TM
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High Performance Incubation (HPi)TM
Access to RD Networks
Specialized Facilities
IP Identification Protection Strategies
Product Development Best Practices
R D
State-of-the-Art Marketing Best Practices
Access to Capital
Capitalization
Business Planning
Access to Services
Networks Alliances
Value Proposition Development
Business Development
Champions
Sales Distribution Channel Strategies
Strategy Development
Exchange of Ideas
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Pipeline
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InNOVAcorp Entry Criteria

• Opportunities are considered by analyzing the
  following criteria
• Nova Scotia based early stage company
• Business plan credibility, management experience,
  and entrepreneurial track record
• Unique proprietary technology (product, system,
  and/or service) with defendable intellectual
  property
• Large national/international addressable market
• Probability of obtaining fully funded business
  plan
• InNOVAcorps HPiTM model focuses on the highest
  potential opportunities

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High Performance Incubation (HPi)TM
Stages of Growth
Stage 1
Stage 2
Stage 3
Stage 4
Stage 5
Maturity
Idea
Developmental
Start-Up
Growth
Commercialization Process
InNOVAcorp (HPi) Incubation, Mentoring,
Investment
Commercialization A sequence of strategic and
tactical actions intended to achieve market entry
and sustained competitiveness of new innovative
technologies, products, and/or services
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Incubation

• InNOVAcorps incubation facilities provide the
  environment needed to help emerging technology
  companies mature
• Incubator facilities deliver more than office,
  dry and wet lab, and industrial space they also
  offer a comprehensive blend of business services,
  resources and synergies that result in
  entrepreneurial success
• InNOVAcorp hosted the Canadian Association of
  Business Incubation (CABI) 15th annual conference
  in autumn 2006, the most successful CABI
  conference to date

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Incubation
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BioScience Enterprise Centre
De facto meeting place for Nova Scotia's life
sciences industry Entrepreneurs Scientists Indu
stry experts Sector associations Economic
agencies Patent agents Legal experts Business
consultants
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BioScience Enterprise Centre

• Life Sciences Work Environment
• Purpose-built infrastructure for life sciences
  companies
• Wet and dry lab space capacity
• Traditional office space (adjacent to labs)
• Meeting space
• 24-hour building access
• Advanced secure building
• Kitchen / cafeteria space and amenities
• Short-term flexible leasing arrangements
• Fit-up fund to facilitate leasehold
  improvements
• Specialized Building Attributes
• Pyrex piping throughout (safety)
• Acid neutralization
• Reverse osmosis water
• Specialized gases
• 28 fume hoods and other sophisticated
  ventilation

• Location
• Proximity to universities, medical school,
  federal
• Research labs, financial institutions, downtown
  core
• Access to ample parking
• Prestigious address and environment for client
  company customers, investors, partners
• Desirable location - significant benefit for
  recruiting
• Hub of Activity
• More than 1,000 meetings conducted at the Centre
  in the last 23 months
• Average number of visitors to client companies
  per month 290
• Standard venue for major life sciences
  announcements, client board and annual general
  meetings, Entrepreneurs' Forum gatherings,
  off-site meetings of other downtown businesses,
  etc.
• Important destination for dignitaries and trade
  missions
• Business Services and Resources
• Professional reception
• Shared administrative and secretarial services

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Technology Innovation Centre

• ITC Work Environment
• Purpose-built infrastructure for technology
  companies
• Advanced integrated data and voice infrastructure
  and services
• Office and light industrial space
• Meeting space
• 24-hour building access
• Advanced secure building
• Kitchen / cafeteria space and amenities
• Short-term flexible leasing arrangements
• Specialized Building Attributes
• State-of-the-art enterprise-grade integrated
  voice and data network, including
• WiFi in all common areas
• Centralized managed security
• Advanced voice services via VoIP
• Full integration of remote employees
• Fully managed network 24X7X365

• Location
• Located in InNOVAcorps Knowledge Park
• Access to ample free parking
• Prestigious address and environment for client
  company customers, investors, partners
• Near new Metro NSCC campus
• Hub of Activity
• More than 800 meetings conducted at the Centre in
  the last 18 months
• Average number of visitors to client companies
  per month 200
• Standard venue for client board and annual
  general meetings, Entrepreneurs' Forum
  gatherings, workshops and info sessions
• Important destination for dignitaries and trade
  missions
• Business Services and Resources
• Professional reception
• Shared administrative and secretarial services
• Business services support (eg. accounting)

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Mentoring

• There is a GAP between promising entrepreneurial
  ventures and access to capital
• The GAP is mostly a people/talent/experience
  issue
• Helping to make pre-seed and seed client
  companies venture capital ready through HPi TM

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High Performance Incubation (HPi)TM
Access to RD Networks
Specialized Facilities
IP Identification Protection Strategies
Product Development Best Practices
R D
State-of-the-Art Marketing Best Practices
Access to Capital
Capitalization
Business Planning
Access to Services
Networks Alliances
Value Proposition Development
Business Development
Champions
Sales Distribution Channel Strategies
Strategy Development
Exchange of Ideas
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Mentoring Future Direction

• Strategically scale resources in ICT and life
  sciences
• Actively engage emerging sectors
• leverage horizontal expertise and scale in-house
  when appropriate
• Continue to build robust external mentoring
  network
• Continue involvement with post secondary
  innovation programs
• - proof-of-concept fund - Springboard ILOs
• Use our collective experience to influence post
  secondary curriculum in the area of business
  planning and go-to-market strategies

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Investment Access to Capital
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Streaming Deals
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Atlantic Canada Capital Players
Est. 25 M/yr invested by angels in Atlantic
Canada
Illustrative
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• Progress
• Pipeline of credible business plans has increased
• Early Stage Commercialization Fund has
  strengthened links with university and college
  research and entrepreneurial initiatives
• Current state industry-led RD understood,
  incentives to increase

• Progress
• Larger venture capital rounds occurring in
  region
• Significant increase in venture capital
  investment in Nova Scotia-based companies, from
  17M in 2005 to 24M in 2006

• Progress
• Private sector engagement and collaboration
  flourishing
• Numerous initiatives underway that are Atlantica
  in scope
• Clean technology and aerospace and defence
  sectors being scoped HPi business model has been
  refined to enable scalability

• Progress
• Increased awareness of First Angel Network
• Fully-funded (fundable) business plan thinking
  becoming pervasive

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Investment Go Forward Direction

• Maximize leverage at investee and fund level
• Further gain and maintain private sector
  engagement
• Build the communitys investment performance
  track record in the risk capital asset class
• Strive toward efficient private sector risk
  capital marketsin Nova Scotia and in Atlantic
  Canada

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InNOVAcorp Board of Directors
Chair Colin Latham, P.Eng. Former Executive
Vice-President of Telecommunications, Aliant
Inc. Rick Andrews SMB BCS Executive IBM Canada
Limited Michael Dennis, Ph.D. President and
CEO Genome Atlantic Stephen Duff, Director, New
Business Development Precision BioLogic Vicki
Harnish Deputy Minister N.S. Department of Finance
Eleanor Humphries President and CEO Halifax
International Airport Authority Robert
McCharles Managing Partner Dillon Consulting
Limited Paul Taylor Chief Executive
Officer Office of Economic Development Jacquelyn
Thayer Scott, Ph.D. President and Chair CBU
Foundation Tom Traves, Ph.D. President and
Vice-Chancellor Dalhousie University
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2007 2008 Operational Objectives

• Fuel Sustainable Economic Growth
• I-3 Monetize Innovation in Rural Nova Scotia
• Monetize Innovation from University Research
• Maximize the Economic Impact of NSFF
• Expand HPi Business Model Services
• Ensure the Continuity of the BioScience
  Enterprise Centre