svx: unlocking the capital markets for healthcare companies - mars future of medicine™

Future&of&Medicine:&Unlocking)the)Capital)Markets)for)Healthcare)Companies)October)31,)2013)

Contact:(Carlos)Pinto)Lobo:)cpintolobo@marsdd.com)

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  Ventures&lack&access&to&capital:&70%"of"impact"ventures"report"that"access"to"capital"is"a"major"challenge"to"their"success."

  Raising&capital&is&costly:&It"can"cost"tens"to"hundreds"of"thousands"of"dollars"for"impact"ventures"to"raise"capital.""

  Due&diligence&is&costly&and&9me&

consuming:&It"can"be"costly"and"?me"consuming"for"investors"to"conduct"due"diligence."

  There&is&an&uncoordinated&impact&

inves9ng&marketplace:&No"access"point"to"find"investment"opportuni?es"or"connect"with"investors."

Problem&There)is)growing)group)of)social)entrepreneurs)and)impact)investors,)but...)

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  SVX&is"registered"as"a"restricted"dealer"with"the"Ontario"Securi?es"Commission."

  Access:&We"are"a"single"point"of"access"to"a"diverse"range"of"impact"investment"opportuni?es""

  Cost&effec9ve:&Our"services"are"available"at"very"low"or"no"cost;"thereby"reducing"transac?on"and"opera?on"costs."

  An&independent,&values&driven,&nonF

profit&organiza9on:&SVX"is"commiKed"to"suppor?ng"and"enabling"the"growth"of"impact"inves?ng"to"benefit"social,"environmental"and"economic"development."

Solu9on&The)first)plaHorm)of)its)kind)in)the)world)

Impact Investing

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+"Solu9on&A)single)access)point)for)impact)ventures)and)investors)

Target Issuers

Impact ventures and funds (<$25M revenues) including nonprofits (including charities), co-operatives (nonprofits and for-profits), and for-profit businesses looking for $25k - $10M.

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Who are the target ventures and funds?

Target Issuers Who are the target ventures and funds?

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Target&Investors&

  Accredited&investors&as"defined"under"the"Ontario"Securi?es"Commission"(OSC)"regula?ons"(or"the"equivalent"in"other"jurisdic?ons)."

  Investors"will"include"founda9ons&and&endowments&(private,&public,&or&

community),&asset&managers,&wealth&

advisors,&and&high&net&worth&

individuals"that"meet"the"defini?onal"requirements"of"an"accredited"investor"as"per"securi?es"regula?ons."

  Pa9ent,&impactFfirst&investors&with"a"focus"on"achieving"posi?ve"social"and/or"environmental"outcomes"and"modest"to"market"financial"returns"

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Who)are)the)target)investors)for)SVX?)

Investor&Challenges&

  Lack&of&deal&flow:&Given"limited"resources,"impact"investors"cannot"easily"iden?fy"quality"impact"investments"in"order"to"make"an"appropriate"investment."

"  Lack&of&exper9se:&Impact"investors"do"not"

always"have"the"ability"to"prepare"and"conduct"due"diligence."

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•  There&is&a&tremendous&opportunity&in&the&

growing&marketplace:&Currently"the"total"Canadian"impact"investment"market"is"$5.3"billion"and"is"expected"to"grow"to"$30"billion"in"10"years."""

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What)challenges)do)investors)face?)

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Features&&&Benefits&How)does)SVX)work?)

Governance&&&Management&"

•  Ontario"incorporated"•  Strong"governance"structure"•  Evidence"of"relevant"exper?se"within"

management"and/or"directors"•  Disclosure"of"any"current"or"past"legal"ac?ons"

against"management"and/or"directors"

Impact&"

•  Ontario[focused"impact"•  Five"(5)"Key"Performance"Indicators"(IRIS[

based"if"possible)"•  GIIRS,"3rd"party"ra?ng"(or"B"Corp),"for"social"

purpose"businesses"•  Impact"narra?ve"

Financials&"

•  Revenue[genera?ng"($50k"["$25M"annually)"•  Audited"or"reviewed"financial"statements"•  Pro[forma"projec?ons"•  Adequate"current"assets,"fixed"assets,"or"cash"

reserves"•  Ownership"informa?on,"including"past"and"

current"sources"of"capital""

Other&"

•  Complete"business"plan"•  External,"professional"references"•  Auditor/reviewer"&"legal"counsel"contact"

informa?on"•  Debt"&/or"equity"capital"need"($25k[10M"for"

ventures,"$2[50M+"for"funds)"•  IP"&"R&D"informa?on"(if"necessary"should"

venture"not"meet"revenue"requirements)"

Target&Issuers&

PLATFORM&ACCESS&REQUIREMENT&SUMMARY&

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What)are)the)requirements)for)ventures)and)funds?)

Measuring&Impact&

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How)do)we)measure)impact?)

“A(standard(with(a(ra1ng(system(can(help(hold(the(line(on(social(impact(and(differen1ate(those(who(are(truly(making(a(difference(from(those(who(are(simply(telling(a(story."&Antony)BuggRLevine,)Author,)Impact)InvesTng)&)CEO,)Nonprofit)Finance)Fund)(NFF)"

Ra9ngs:&For[profit"organiza?ons"are"required"to"complete"either"a"Global"Impact"Inves?ng"Ra?ngs"and"aKain"a"score"of"100,or"be"a"B"Corp.&"Metrics:&Each"issuer"is"required"to"submit"5"key"metrics."&

Narra9ve:&All"issuers"must"have"an"impact"narra?ve,"which"explains"the"impact"they"are"hoping"to"achieve."&

Third&Party&Ra9ngs&Providers&

""

GIIRS"offers"a"company"seeking"investment"capital"a"ra?ng"of"its"social"and"environmental"impact"including:"""

1.  an"overall"ra?ng;""2.  ra?ngs"in"approximately"15"sub[categories;""3.  key"performance"indicators"(KPI's)"relevant"to"the"company's"

industry,"geography,"size,"and"social"mission;"and"benchmark"data"highligh?ng"a"company's"performance"as"compared"to"its"peers."

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Global)Impact)InvesTng)RaTngs)System)

Third&Party&Ra9ngs&Providers&

•  B Corp is a third-party certification for companies using the power of business to solve social or environmental problems.

•  Certified B Corps are committed to the idea of holistic success that takes into account community investment, environmental impact and workplace experience. They are committed to the “big idea” of using business as a force for good and they’re willing to have an outside group measure their effort & publish the results for all the world to see.

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B)Corps)(Benefit)CorporaTons))

Becoming&a&B&Corps&

1.  Take"the"B"Impact"Assessment"  1"–"3"hours"of"ini?al"self"assessment"  Be"prepared"by"having"all"your"financials"and"business"sta?s?cs"available"to"speed"the"

process"  At"the"end"of"the"assessment"you"will"be"provided"a"B"Impact"ra?ng"

2.  Complete"an"Assessment"Review"  A"B"Labs"staff"member"will"call"and"go"through"the"ques?onnaire"with"you"and"provide"

you"an"assessment"of"what"your"ra?ng"truly"is."

3.  Submit"Suppor?ng"Documenta?on"  The"Assessment"will"randomly"select"8"–"12"ques?ons"answered"in"the"affirma?ve"and"

will"ask"for"further"details"that"demonstrate"those"prac?ces."

4.  Complete"Disclosure"Ques?onnaire"  Your"company"must"disclose"any"sensi?ve"prac?ces,"fines"and"sanc?ons"related"to"the"

company"or"its"partners."

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Investor"Search"Screen"

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Team&

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Adam&Spence&Founder)&)UDP)Social"entrepreneur"with"10+"years"senior"leadership"experience."

Carlos&Pinto&Lobo&Chief)Compliance)Officer)25+"years"senior"leadership"experience"in"compliance"in"mainstream"finance."

Tris9na&Sinopoli&Project)Coordinator)York"University"business"grad"with"experience"in"local"government.""

Who)is)behind)the)SVX?)

Team&

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Legal&Counsel&

Background&Checks&

Third&Party&Impact&Assessment&

STRATEGIC&PARTNERS&

Who)is)behind)the)SVX?)

Board&of&Directors&

 Dr.&Ilse&Treurnicht,&CEO,"MaRS" Ted&Anderson,&Director,"MaRS"Centre"for"Impact"Inves?ng"

 Grace&Lee&Reynolds,&VP"Finance,"MaRS"&

Advisors&  Kevin&Doyle,"Director,"TMX"Group"Inc." Aaron&Emes,"Partner,"Torys"LLP"  Catherine&De&Gius9,&Associate,"Torys"LLP" Allyson&Hewi\,"Director,"MaRS" Marc&Marzo\o,"Associate,"Gryphon"Investment"Counsel"

 Don&McCreesh,"Former"Chair,"Imagine"Canada"  Robert&Peterman,"Director,"TMX"Group"Inc."  Cynthia&Peters,"Owner,"From"the"Farm"Enterprises" Nelson&Switzer,"Director,"PwC" Alberta&Leung,"Partner,"KPMG"

Pla]orm&Development&

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Next&Steps&What)is)next)for)the)SVX)plaHorm?)

  Outreach&and&Pipeline&Building.&We"are"con?nuing"to"build"our"pipeline"of"ventures,"funds,"investors"and"service"providers."

  Public&Launch.&We"launched"the"SVX"at"the"TMX"on"September"19th,"and"since"then"12"ventures"have"placed"their"offering"on"the"SVX"with"more"in"the"background"

  Franchising.&We"are"pursuing"opportuni?es"to"franchise"the"plaporm"in"Canada,"US,"and"around"the"world,"and"exploring"leveraging"the"plaporm"for"other"formats,"including"crowdfunding."

Resources&

SVX:&h\p://www.svx.ca&

MaRS&Discovery&District:&h\p://www.marsdd.com&

GIIRS:&h\p://giirs.org&

B&Corps:&h\p://www.bcorpora9on.net&

IRIS:&h\p://iris.thegiin.org&

SocialFinance.ca:&www.socialfinance.ca&

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Thank&You&Carlos&Pinto&Lobo&

Chief"Compliance"Officer,"SVX"Carlos.pintolobo@svx.ca"cpintolobo@marsdd.com""

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