1. technology and computing

NEEDHAM GROWTH
CONFERENCE
FIRST. TRANSFORMATIVE. PROVEN.
TRANSFORMING THE FUTURE
NASDAQ : TINY
SAFE HARBOR STATEMENT
This presentation may contain statements of a forward-looking nature relating to
future events. Statements contained in this presentation that are forwardlooking statements are intended to be made pursuant to the Safe Harbor
Provisions of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to the inherent uncertainties in
predicting future results and conditions.
These statements reflect the
Company’s current beliefs, and a number of important factors could cause actual
results to differ materially from those expressed herein. Please see the Company’s Annual Report on Form 10-K, as well as subsequent
filings, filed with the Securities and Exchange Commission for a more detailed
discussion of the risks and uncertainties associated with the Company’s business,
including but not limited to the risks and uncertainties associated with venture
capital investing and other significant factors that could affect the Company’s
actual results. Except as otherwise required by Federal securities laws, Harris &
Harris Group, Inc. undertakes no obligation to update or revise these forwardlooking statements to reflect new events or uncertainties.
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HARRIS & HARRIS GROUP
•  NASDAQ: TINY
•  NAV/Share: $3.85(1)
(1) NAV/Share as of September 30, 2014 3
CORPORATE MISSION
Harris & Harris Group Builds Transformative Companies
from Disruptive Science
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COMPANY HIGHLIGHTS
•  30-Year History Building Companies
•  Holds Equity in Over 20 Transformational Companies
•  Value Not Yet Realized
•  Focused Strategy for Accelerated Growth
•  Strong Interdisciplinary Team
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BUSINESS MODEL
Invest
•  NAV Growth
Return
•  Early Stage
•  BIOLOGY+
Build
Value
•  Company Building
•  Board Participation
•  Partnerships
Evergreen Structure Facilitates Growth
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Liquid
OUR COMPETITIVE POSITION
Public VC Firms
Illiquid
Public Holding Companies
Private VC Firms
Late-Stage
Passive Involvement
Early-Stage,
Active Involvement
Investing in Disruptive Science
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WHY EARLY-STAGE
•  Opportunity to Generate Outsized Returns
•  Addressing Unmet Needs of S&P 500 Corporations
•  Limited Competition
•  Ability to Influence Company Strategy & Execution
Unique Skillset for Investing in BIOLOGY+
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RECOGNIZED LEADERSHIP IN EARLY-STAGE
#1 Venture Capital Investor in High-Technology
As measured by GrantIQ’s SBIR Source in February 2014: www.sbirsource.com/sbir/investors
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DISTINCTIVE APPROACH
Interdisciplinary innovation is required to
address these healthcare challenges. BIOLOGY
Electronics
Physics
Materials
Science
Chemistry
IT Engineering
Mathematics
HEALTHCARE
TECHNOLOGY
SOLUTIONS
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A DECADE OF BIOLOGY INVESTMENTS
BIOLOGY
ENABLES
Engineering
Single Cell Analysis
Physics
Non-Invasive, HighResolution Imaging
Mathematics
High-Quality
Molecular Diagnostics
Material Science
Targeted Bio-Compatible
Drug Delivery
Electronics
Personal Genomics
Analytics
Protein Structure
Analysis
H&H PORTFOLIO COMPANY
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WE HAVE EXPERIENCE BUILDING COMPANIES
BioVex
Solazyme
Crystal IS
(Amgen, 2011)
(NASDAQ:SZYM, 2011)
(Asahi Kasei, 2011)
Xradia
Ancora
Molecular Imprints
(Carl Zeiss, 2013)
(CordenPharma, 2013)
(Canon, 2014)
Examples of recent Biology+ exits
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A PORTFOLIO IN THE RIGHT AREAS
Internet
of Things
Microbiome
Promuc
Quantum
Computing
D-Wave
ImmunoOncology
Mersana
Adesto
Enumeral
HZO
Metabolon
Nantero
TARA
Regenerative
Medicine
AgBiome
AgTech
UberSEQ
EchoPixel
ABS
PWA
Deep Learning
Clean
Water
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METABOLON
Metabolon’s mission is to provide researchers and health care
providers unparalleled, actionable knowledge of the phenotype
to prevent, diagnose and treat disease quickly and accurately. Molecular phenotyping actively measures disease-related changes
suggested by genomics, as opposed to merely measuring a genetic
predisposition or assessing risk of disease.
DNA
RNA
Risk of Disease
Genes suggest what might be
Proteins
Small
Molecules
Disease
Treatment
and
Mechanism
Actionable Information
to prevent, diagnose & treat disease
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METABOLON: A CORNERSTONE OF HUMAN HEALTH
Personalized
Medicine
NGS monitoring
technology
Diagnostics &
biomarker
discovery
A cornerstone of human health
METABOLON: PERSONALIZED MEDICINE
Clinical standard of care – individualized
care reaches every patient •  Fewer diagnostic panels needed
•  More cost-effective
•  Greater impact & better health
outcomes
UK
Italy
France
Began IEM screening
2014
China
Target group centers:
Harvard Partners
UCLA
Mayo Clinic
Stanford
Sign up 10
concierge clinics
2015
25 clinics
2016
50+ clinics
2017
METABOLON: NEXT GEN SEQUENCING
Metabolomics becomes the monitoring
technology for next-gen sequencing
and must-have insight to phenotype
CTTV
Genomes BC
Signed agmts with major
organizations
2014
2015
Chan Soon-Shiong Inst.
Major acad. centers:
Broad/MIT
GWU
UWA
NGS/WGS
projects
Expand globally
(esp. Pacific Rim)
2016
2017
METABOLON: DIAGNOSTICS
New diagnostic tests become a major player in
preventing and treating metabolic disease
Metdia Biotech
Quantose IR
FDA approval &
CE mark
Quantose IGT –
CE mark
Fatty liver (LDT)
LDT partners
Regulatory
submissions
Signed agmts with
leading clinical labs &
organizations
2014
Quantose IR –
CE mark
accuGFR (LDT)
2015
2016
Quantose IGT
regulatory
approvals
2017
METABOLON
Actionable Diagnosis
•  Leader in Metabolomics: 3,000+
Studies, 60+ Patents, $96+ Million
Cumulative Revenue
Genetics Show
Disease Risk
•  2013 Released Three Diagnostic
Tests Targeting Diabetes & Cancer
DNA
RNA
Proteins
•  Initial Investment: 2006 •  Capital Invested: $ 7.2 Million •  Voting Ownership: 10-15%
•  Late Stage
Metabolomics
Measure
Disease Status
Biochemicals
Disease/
Treatment
Mechanism
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D-WAVE
High margin, high growth system sales, service and cloud services business Founded in 1999 Premier First Customers 100 US patents granted; over 60 scien2fic papers published Raised over $130M in venture funding and government grants since incep2on D-WAVE: WHY BUILD A QUANTUM COMPUTER?
•  Solve high-value
commercial and scientific
problems that can’t be
solved today
•  Solve complex problems
orders of magnitude faster
•  D-Wave has demonstrated
10,000 – 100,000x
speedups
D-WAVE: MISSION
D-­‐Wave helps solve the most challenging computing problems in the universe. Mission
planning
Search for
exoplanets
Anomaly
detection
Cancer
research
Systems
Optimizatio
n
D-WAVE: THE MOST ADVANCED QUANTUM COMPUTER
IN THE WORLD
10,000
1,000
Number
100
of
Qubits
10
1
D-Wave One 128 qubit 28 qubit
16 qubit
D-Wave Two
512 qubit 4 qubit
2002
2006
2010
2014
D-WAVE: RANKED FOURTH IN PATENT POWER FOR
COMPUTER SYSTEMS BY IEEE
D-Wave patents cover broad range of domains
•  superconducting
qubits •  quantum processor •  magnetic shielding •  cooling •  software •  algorithms
D-WAVE
•  Only Commercial Quantum
Computer in the World •  Demonstrating 10,000-100,000x
Faster Problem Solving
•  Partnered with Lockheed,
Google, and NASA
•  Initial Investment: 2006
•  Capital Invested: $5.8 Million •  Voting Ownership: 2.5-5%
•  Late Stage
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ADESTO: EVOLUTION OF TECHNOLOGY
Era of Computing
Era of Communication
Era of Mobility
Era of Autonomy
1990’s
2000’s
2010’s
2020’s
Technology
Drivers and
Requirements
Speed
(GHz)
Capacity
(Gbits)
Ultra Low Power
Secure
Connected
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ADESTO: GROWTH OPPORTUNITY
Connected
Computers Connected
People
Connected Everything
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DRIVE TOWARDS AUTONOMOUS CONNECTED SYSTEMS
10 years
Low Energy Consumption
Battery Life
1 year
1 month
1 week
1 day
Source: CISCO
10 hours
1 hour
0
1980's 1990's
2000's
2010's
2020's
IoT Requires CONVERGENCE of Low Energy Consumption + High Intelligence
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ADESTO: CRITICAL REQUIREMENT FOR REALIZATION OF
INTERNET OF THINGS
LOW POWER
“…best-in-class low-power nonvolatile memory/flash memory
technologies…”
“Low Power is the number 1 priority for IoT
and battery-operated mobile devices”
Weeks to Years
“We measure the chance of success based on being
light weight (in terms of code footprint), low power
consumption, open and suitable to a multi-platform
environment.”
“Ability To Use Energy Harvesting as Power Source:
Light/Solar, Thermal, RF Scavenging, Vibration”
“…Power efficiency is critical since these devices are
often not connected to power and have to operate using
energy harvesting sources or a single battery for several
years without maintenance or battery replacement…”
Sources:
“…cost of installing new wiring to power
these devices is prohibitive…”
“…for a simple system with a small ARM M0 core,
the flash memory could conceivably consume 70%
of the power…”
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ADESTO: IOT MARKET OPPORTUNITY FOR ADESTO
Semiconductor Revenue Content of IoT Gartner forecasts almost 30 percent
growth [CAGR] through 2020 for IoT
semiconductor revenue
IoT
IoT Non-Volatile
Semi Content Memory Content
2016
$15B
$1.5B
2017
$19B
$1.9B
2018
$25B
$2.5B
2019
$33B
$3.3B
2020
$44B
$4.5B
Assumes 10% of semi content is memory
Assumes 40% of memory content is low density
Adesto’s
IoT SAM
$600M
$750M
$1B
$1.3B
$1.7B
Source: IDC, Applied Materials
"As product designers dream up ways to exploit the inherent
connectivity that will be offered in intelligent products, we expect the
variety of devices offered to explode," added Middleton. Gartner
estimates the incremental IoT supplier revenue related to IoT in 2020 –
hardware, software and services – to be worth $309 billion. 30
ADESTO TECHNOLOGIES
•  Fabless Ultra Low Power, NonVolatile Memory Producer
Enabling IoT with Ultra Low
Power Memory
•  Multiple Design Wins in Internet
of Things (IoT) Market
•  100x Reduction in Power
Consumption Compared to
Competitive Offerings
•  Initial Investment: 2007
•  Capital Invested: $10.5 Million •  Ownership: 10-15%
•  Late Stage
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PARTNERING EARLY IS BENEFICIAL
Scale &
Manufacturing
Technology Platforms
Company
Building
Market
Access
Corporate Partner
Scale
Market
Access
Technology
Company
Platforms Building
Corporate Partners are Highly Complementary
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PORTFOLIO PARTNERS
Private Sector
Public Sector
H&H
Portfolio
BOSCH Google Intel syngenta
Health Diagnostic
Microsoft
Mitsui
Laboratory, Inc.
ONR
LIFE Technologies
Synaptics
Celgene 3M Unilever
NSF
Tyco
NIST
Genentech
Sephora LG Innotek
DARPA
Crucell Bunge Oxford Biosciences
DOE
Samsung
Bristol Myers Squibb Dow
NIH
Pfizer Chevron
Hitachi Chemical
NASA
Lockheed Martin
Novartis
Metter Toledo
Illumina
Note: Includes corporate partnerships since 2002, which
is when the first of the current Managing Directors
joined the firm. Boehringer Ingelheim
Sanofi-Aventix
Coherent
Panasonic
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CURRENT EXAMPLE OF OUR PARTNERING STRATEGY
Corporations currently add value to Harris & Harris Group
and our portfolio companies in multiple ways.
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STRONG INTERDISCIPLINARY TEAM
Doug Jamison Misti Ushio, PhD
Daniel Wolfe, PhD
Alexei Andreev, PhD
Managing Director, CEO
Managing Director, CSO
Managing Director, President
Managing Director, EVP
Blake Stevens, PhD
Senior Associate, VP
• 
• 
• 
• 
• 
90+ Years of Experience* 55+ Companies
150+ Rounds of Financing
30+ Exits for $2.5 Billion+**
$270 Million+ in Revenue Generated By
Portfolio Companies in 2013
*Includes Investing and Industry experience
** Total value of portfolio companies at time of exit without milestone
payments since 2002, when first deal team member joined
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PORTFOLIO BY STAGE
TARA Biosystems
BIOLOGY+
Accelerator
Other
UberSeq
ProMuc Ensemble
Metabolon EchoPixel Molecular Imprints D-Wave AgBiome HZO Champions Senova Mersana PWA
ABS OpGen Adesto Enumeral Cambrios Nanosys SiOnyx Nantero Bridgelux EARLY
MID
LATE
Note: Equity-focused portfolio companies, year of first investment and stage classifications as of September 30, 2014, not including 1) our publicly traded shares of Solazyme;
2) our rights to milestone payments associated with the acquisitions of BioVex Group, Nextreme Thermal Solutions and Molecular Imprints; and 3) portfolio companies currently
in the process of being liquidated, have ceased or are in the process of ceasing operations and/or are seeking a sale of their assets, including Laser Light Engines, Ultora, Synglyco
and Cobalt. GAME PLAN FOR ACCELERATED GROWTH
•  Realize Value in Current Portfolio
•  Invest in BIOLOGY+
•  Partner for Resources & Expertise
•  Return Value to Shareholders
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COMPANY HIGHLIGHTS
•  30-Year History Building Companies
•  Holds Equity in Over 20 Transformational Companies
•  Value Not Yet Realized
•  Focused Strategy for Accelerated Growth
•  Strong Interdisciplinary Team
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