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Boston Millennia Partners was founded by 7 former Boston Capital Ventures investment professionals in 1997
$700M+ in assets under management
12 investment professionals
BMP team has completed over 125 direct investments and 150 acquisitions
Investors and Partners from 15 countries worldwide
Invest in early stage companies in Healthcare, Life Sciences, and Information Technology industries
Active with early stage companies and “ideas” at various medical/technology centers in the US Tufts MIT Harvard MD Anderson Cleveland Clinic Johns Hopkins UCLA Arizona University
Review 2,000 to 3,000 opportunities annually
Highly active investment process, return potential of 10-20x on investments selected
Identify sectors with the following characteristics Large, high-growth market opportunity Competition is made up of many small companies with no dominant market-share leader Undergoing a fundamental shift in the business as a result of economic or technological change Capital efficient business models
Identify initial company upon which to grow the business Focus on companies that have meaningful revenues Identify the company best positioned to exploit the market opportunity Select a management team capable of carrying out an aggressive growth plan
Accelerate the company’s internal growth through acquisition and consolidation of smaller-sized companies in similar or related market segments
Boston Millennia Partners’ Proprietary, Research-Driven Model
With the goal of building a $500-750 million market capitalization company
1. Basic Information from Companya. PowerPoint deckb. Business Planc. Detailed revenue plan with backup assumptions
2. Ownership Structurea. Detailed Cap Tableb. Will option pool need to be increased?
3. Market Opportunitya. Research analyst reports - size, growth, dynamics of the spaceb. Bottom-up analysis the size of the market
4. Competitiona. Competitive Matrix including:
i. Fundingii. Last Round Valuationiii. Revenuesiv. Business Modelv. Value inflection points
5. Public Comparablesa. Business Modelb. How they compare to the company being consideredc. Revenue Modeld. Market Cap/Revenuese. Time to IPO
6. Customer Interviewsa. Relationship with the companyb. Assessment of the company - Strengths and Weaknessesc. Perceived value propositiond. Project/proposed relationship detailse. Comparison of alternatives - Strengths and Weaknessesf. What might be the potential revenues the company could generate?g. Who else might be interested in the company for their product/service?h. How does the technology/service fit in with other technologies/services
in place at the customeri. Other potential applications/avenues for the product/servicej. Hurdles to success - potential obstacles for the company to be successful
7. Analyst Interviewsa. Assessment of the company - Strenghts and Weaknessesb. Market opportunityc. Competetive landscaped. Hurdles to successe. Exit opportunities - who might acquire the company
8. Managementa. Detailed resumes for each member of management teamb. Management interviews - determine prio experience, track recordc. Open positions that need to be filled
i. When will they be filledii. Who are the candidates, type of candidates
d. Referencesi. From the management teamii. Other references from past co-workers at other companies
9. Previous Rounda. Term Sheetb. Due Diligencec. Conversation with previous round investors
i. From last round to this roundii. Future value inflection points
10. Sales Assessmenta. Review of current accounts
i. Nature of relationship, stage - e.g. pilot, beta, etc.ii. Revenue potential
b. Current pipelinec. Backlog
11. Technical Assessment (if applicable)a. Determine appropriate person to do technical assessmentb. Key questions
i. Does it work as advertised?ii. Will it scale?iii. What are the alternative technologiesiv. How much of a lead, if any, does the company have?
12. Legal Due Diligence13. Company Specific Due Diligence
AssumptionsEach Pre-Money 20% premium to previous Post-Money.Management Ownership starts at 35%, decreases to 25% in second round and decreases to 20% for subsequent rounds.IPO occurs in Year 6 but requires 12 more months due to equity lockup. Assumes same Net Proceeds at liquidation.
Financing scenario:
Series AYear 0
Series BYear 2
Series CYear 3
Series DYear 4
Pre-Money: $10M $24M $53M $99M
Raise: $10M $20M $30M $40.0M
Post-Money: $20M $44M $83M $139M
BMP Investment: $6M $5M $4M $3M
BMP Ownership: 30% 25% 19% 15%
Mgmt. Ownership: 35% 25% 20% 20%
Exit required to attain meaningful venture return:
Market Cap./Exit Value: $500M BMP Proceeds: $73M
BMP Total Investment: $18M BMP Return Multiple: 4x
BMP Ownership at Exit: 15% BMP IRR For Sale In year 6: 37%
Management Proceeds: $100M BMP IRR For IPO-Proceeds in Year 7:
Description: Drug development company focused on anti-cancer agents. The company leverages it expertise to also serve as a value added provider of contract development services.
Role: Lead; small co-investor syndicate
Financing: Initial financing had a pre-money of $15M; market cap reached $1.5B after IPO; acquired by Genzyme
Reasons to Invest
Management Already highly skilled scientifically Helped create focus around strategy Augmentation at middle level
Business Strategy Executed drug development with
outsourced oncology services play Leveraged BMP’s experience in CRO
segment
Capital structure Small initial round Created manageable syndicate with
consistent goals
Key Relationships Multiple existing relationships with large
pharmaceuticals and selected small biotech companies
Value Creation Through Millennia Investment
Case Study of Completed Investment
Lower risk - Phase II and beyond opportunities
Exclusive in-sourcing of drug candidates from Texas
based health system
ILEX one of first movers in cancer therapeutics
combined with CRO experience
BMP team experienced in CRO field after investment
in PAREXEL; considered ILEX to be a “hedged” bet
Founder Dan van Hoff and founding team some of
key thought leaders in oncology in U.S.
CEO experience in drug development Previously developed Betaseron® for multiple sclerosis
= $640 million in 2004 revenues*Due to safety concerns Vioxx was removed from production in September 2004 and Bextra sales were suspended in the U.S. in April 2005
• Founding Partner, Boston Millennia Partners• Founding Partner, Boston Capital Ventures• Consultant, Braxton Associates (Bain/BCG heritage)• Software Engineer, Tymshare/McDonnell Douglas• Dartmouth College (Tuck School), MBA• Tufts University, AB in Economics• Board of Trustees and Investment Committee, Tufts University • Advisory Board, Private Equity Center at Dartmouth College• Board of Overseers, Tufts University Medical School
• Founding Partner, Boston Millennia Partners• Principal, Boston Capital Ventures• Assistant General Counsel, Lifetime Corporation• Attorney, Warner & Stackpole/Kirkpatrick & Lockhart • Georgetown University, JD• University of Maryland, MA in Economics• Boston College, BA in Economics
Robert S. Sherman, PartnerA. Dana Callow, Jr., Managing Partner
Martin J. Hernon, Partner Patrick J. Fortune, Ph.D., Partner
• President & COO, New Era for Networks (Nasdaq: NEON)• CIO, Monsanto Corporation• CIO, Bristol-Myers Squibb• President & COO, Coram Healthcare• Northwestern University, MBA• University of Wisconsin, Ph.D. in Physical Chemistry• University of Wisconsin, BA in Chemistry
• Founding Partner, Boston Millennia Partners• Partner, Boston Capital Ventures• General Partner, Hambro International Venture Fund• Assistant Vice President, Bank of Boston• Harvard Business School, MBA• Amherst College, AB in Economics
• Regional Market Manager, Corning, Inc.• Senior Analyst, Corning Communications• Project Leader, TotalElfFina• Engineer, Saint Gobain• Dartmouth College (Tuck School), MBA• Institut National Polytechnique, MS in Engineering• Lycée Pierre de Fermat, BS in Math & Physics
• Principal, Boston Capital Ventures• Managing Director, Watch Hill Corporation• Finance Director, BBN Communications As (Copenhagen)• Controller, Bolt Beranek & Newman, Inc.• Financial Analyst, General Electric Corporation• Dartmouth College (Tuck School), MBA• Haverford College, AB in Economics
Robert W. Jevon, Jr., PartnerJean-Yves Lagarde, Partner
Millennia Team Experience
• President, Tiedemann & Company• CFO positions at early stage companies (e.g. PAREXEL, HPR)• Certified Public Accountant• Bentley College, BS in Accountancy
Bruce R. Tiedemann, CFO Paul McManus, Executive Search• Entrepreneur in Residence/Lecturer in Strategy & Policy, Boston University• President, The McManus Group• Vice President, Aubin International• Managing Director and Co-Founder, The Bell Mason Group• Manager, Digital Equipment Corporation• Boston University, MBA• Wentworth Institute of Technology, BS in Mechanical Engineering
Boston Millennia Partners Healthcare Portfolio, Additional Information Available on the Internet:
Portfolio Company Web Site Address
Arthrosurface www.arthrosurface.comAthenix Corp. www.athenixcorp.comCardioMEMS www.cardiomems.comCoapt Systems, Inc. www.coaptsystems.comCollegium Pharmaceuticals www.collegiumpharma.comCombinatoRx, Inc. www.combinatorx.comeMed Technologies www.emed.comEpigenesis Pharmaceuticals www.epigene.comEntigo, Inc. www.entigo.comGalt Associates, Inc. www.galt-assoc.comGlycofi, Inc. www.glycofi.comMedAptus, Inc. www.medaptus.comNovalar Pharmaceuticals, Inc. www.novalarpharm.comPHT Corp. www.phtcorp.comPredix Pharmaceuticals, Inc. www.predixpharm.comProtein Forest, Inc. www.proteinforest.comRejuvenon Corp. www.rejuvenon.com
Other resources on Angel Investors and Venture Capital:Association Web Site Address
National Venture Capital Association www.nvca.comAngel Capital Association www.angelcapitalassociation.orgUniversity of New Hampshire - Center for Venture Research www.unh.edu/cvr