COMPANY START-UP STAGES

PRE-SEED STAGE

SEED STAGE

EARLY STAGE

COMPANY

Pre-Seed Pre-prototype (most science completed; engineering remains) Pre-molecule but promising early results

Early Seed Stage

Mid-Seed Stage

Later Seed Stage Lab prototype & beta tests complete; validating manufacturability Validating optimized molecule in animals Pending/issued Executing BP, looking for customers and strategic alliances Inventor & 1 or 2 committed and experienced business development persons Letters of intent or some preliminary relationship $350-500K

Early Stage

Lab prototype & feasibility demonstrated in lab Molecule selected & working in cell lines Being written Opportunity analysis complete and surveys underway

Lab prototype & feasibility demonstrated in alpha tests Molecule being optimized & working in cell lines Pending Compelling business plan; well validated w/ customer and expert surveys

Commercial grade prototype & first production runs Molecule optimized & running pre-clinicals trials Adding to foundational patents Developing customer relationships; delivering first products to first customers At least three "real" managers

TECHNOLOGY MILESTONES

PATENT STATUS BUSINESS DEVELOPMENT MILESTONES

Invention disclosure First-cut idea analysis; preliminary presentation

MANAGEMENT TEAM CUSTOMERS AND PRODUCT SALES FUNDING REQUIREMENTS TIME TO ACHIEVE MILESTONES

Inventor

Inventor & one interim Inventor & one committed business development person business development person or coach None Customer interest

None

Customer interest to early sales

~ $50-100K

$100-250K

$250-350K

~ $1-2M

3-6 months Grants, Corporations, You, Family, Friends, Angels, PreSeed Investors (EXCELL), SBIR Phase I Phenomenally high

3-6 months

6-9 months

9-12 months

9 months - 1 year

FUNDING SOURCES

Angels, Seed Investors like EXCELL, SBIR Phase I

Angels, Seed Investors like EXCELL, SBIR Phase I/II

Angels, Seed Investors like EXCELL, SBIR Phase II

Venture Capital, Strategic Partners, SBIR Phase II

INVESTOR RISK LEVEL AVERAGE VALUATION (BASED ON VENTURE ONE DATA)

Extremely high

Extremely high

Extremely high

Very high

Less than $1M

$1M

$2M

$3M

$3-5M

Copyright Excell Partners, Inc., 2007