Innovative Fundraising Strategies for Life Science Start-ups

1 Fundraising for life science start-ups: an alternative perspective on grants and venture capital. The LSH capital journey April 10th, 2024 Max Seignette, MSc Founder - Ensemblate max@ensemblate.com +31 20 308 68 86

2 AGENDA OVERVIEW 1 the impact of regulation on public grants. 2 information management during investor outreach. 3 AI-related fundraising trends.

3 PART ONE THE REGULATION OF PUBLIC GRANTS

4 PART ONE A DEEPER LOOK AT THE REGULATION OF PUBLIC FUNDING the regulatory dilemma of public funding stimulating innovation unfair competition

5 PART ONE A DEEPER LOOK AT THE REGULATION OF PUBLIC FUNDING what defines unfair competition and market disruption? almost everything besides a few exceptions. A company receiving government support may gain a distortive advantage over its competitors. Therefore, Article 107 TFEU generally prohibits State aid unless exceptionally justified.

6 PART ONE A DEEPER LOOK AT THE REGULATION OF PUBLIC FUNDING so, how can state aid be exceptionally justified? 0 - 200k > 200k de-minimis regulation: Algemene Groepsvrijstellingsverordening (AGVV) Aid for R&D (art. 25B): o Fundamental research o Industrial research o Experimental development o Feasibility studies state aid is not unlawful if it encompasses < 200k in a three- year period

7 PART ONE A DEEPER LOOK AT THE REGULATION OF PUBLIC FUNDING takeaways for grant applications: 1. describe your technical activities in an R&D context, listing their newness and associated uncertainties. Avoid framing as standard contract research work. 2. describe your pre-marketing & commercial activities in an R&D context. Avoid framing as commercial activities that will financially benefit you.

8 PART TWO INFORMATION MANAGEMENT DURING INVESTOR OUTREACH

9 PART TWO INFORMATION MANAGEMENT DURING INVESTOR OUTREACH a common mistake: information overload. o 30 slides o business plan o financial annex o publications

10 PART TWO INFORMATION MANAGEMENT DURING INVESTOR OUTREACH the introduction stage. SCENARIO: you got introduced to a VC or you cold emailed them. TIMELINES: somebody will look at your deck for 3-5 minutes (if the first slides are interesting) OBJECTIVE: to get an introduction meeting. prepare a short teaser deck highlighting your key achievements and innovativeness. leave out anything that is not top priority.

11 PART TWO INFORMATION MANAGEMENT DURING INVESTOR OUTREACH the first meeting. SCENARIO: your pitch was well-perceived and you have been invited to an introductory call. TIMELINES: most introductory calls will last 30 minutes. OBJECTIVE: to get an investor excited about you. talk about things that make you unique, ask questions and only pitch critical elements. prevent a pitching monologue of 95% of the meeting.

12 PART TWO INFORMATION MANAGEMENT DURING INVESTOR OUTREACH beyond the first meeting. SCENARIO: an investor is exited about you and explore steps towards an investment. TIMELINES: multiple months. OBJECTIVE: to convince them about your investment proposition. share a comprehensive data room with all scientific, commercial and financial information. do not leave anything out at this stage.

13 PART TWO INFORMATION MANAGEMENT DURING INVESTOR OUTREACH takeaways for information management: 1. each interaction with investors has a different objective. 2. each interaction with investors has different timelines. 3. you need different presentations and narratives at each stage of the process.

14 PART THREE AI-RELATED FUNDRAISING TRENDS

15 PART THREE FUNDRAISING AND AI efficiently riding the wave of AI trends in fundraising. AI SOLUTIONS IN FUNDRAISING BOOK A CALL TODAY Dear Madam, Sir, I am Kevin from AI.Raising. We are an AI fundraising company that specializes in helping businesses create hyper-personalized grants and email campaigns. Our secret sauce? We provide an AI assistant that goes way beyond what online tools can offer. Our clients have experiences success rates of up to 85%! I'm available any time this week if you would like to chat. Oh, we also do contact form outreach :) Kevin Joseph R. P.S One of our clients is also from Amsterdam, he recommends Oche, their Oche's Fresh Pizza is amazing! Great place for meetings too!

16 PART THREE FUNDRAISING AND AI writing-assistant and pitch-building tools. they can help to edit your text & slides, e.g. shortening it and/or rephrasing sentences. they can help you with structuring paragraphs and argumentation. they cannot write technical and/or scientific parts. they cannot (reliably) support you with market calculations and your financial plan.

17 PART THREE FUNDRAISING AND AI your application is too shallow without input from technical experts.

18 PART THREE FUNDRAISING AND AI your application is too shallow without input from technical experts. technical expert AI Our technical challenge relates to increasing the latent TB detection limit of the assay from currently estimated 1000 cells per mL of blood to less than 100 cells per mL of blood. In 10 mL of blood we expect 30x10 PBMCs, of which 1:1000 is CD34 positive and will contain between 30 and 300 Mycobacterium tuberculosis cells. This represents IS6110 Ct values of around 31 cycles which is very close to the limit of detection of a sequencing-based assay. The limit of detection for active TB lies between 23 and 27 cycles, so it will need to be reduced 16-fold. Our technical challenge is to improve our ability to detect latent TB in blood samples by making the test more sensitive. This means the test needs to be able to detect very small amounts of the bacterium, around 31 cycles of amplification, which is close to the limit of what current sequencing-based tests can do. For comparison, when someone has active TB, the test needs to detect the bacterium at between 23 and 27 cycles. So, we need to improve the test's sensitivity by about 16 times to meet this goal.

19 PART THREE FUNDRAISING AND AI and please don t do this. We have conclusively exhibited through rigorous scientific inquiry and meticulous observation the unequivocal assurance of the safety and tolerability profile of ENS-001, an investigational drug compound, within the context of a meticulously conducted Clinical Phase 1 trial. This pivotal study, meticulously designed and meticulously executed, involved the participation of a cohort comprising 12 individuals who were deemed to be in a state of robust health, thus ensuring the foundational integrity of the study. Through an exhaustive regimen of comprehensive assessments, encompassing a diverse array of physiological parameters and vital signs, we have not only substantiated the inherent safety of ENS-001 but also delineated its capacity for tolerability within the confines of human physiology. Such unequivocal findings serve to underscore the promising potential of ENS-001 as a therapeutic agent, while also providing a solid foundation upon which subsequent phases of clinical development may be predicated. We have successfully demonstrated the safety and tolerability of ENS-001 in a Clinical Phase 1 study with 12 healthy participants.

20 PART THREE FUNDRAISING AND AI takeaways on using AI for fundraising. 1. use AI tools to refine your work, not to replace your work. 2. when in doubt, keep it short and simple.

21 ENSEMBLATE BOLD FUNDRAISING FOR BOLD FOUNDERS thank you.