Transcript History of NanoString

NanoString:
From Research to Start-Up
Amber Ratcliffe
Co-founder of NanoString Technologies
October 23rd, 2008
Presentation Overview
Genesis of the Basic Idea
Seed Funding the Proof of Principle
Decision to Start the Company
The Start Up Process: Nuts and Bolts
Current Status of NanoString Today
A Few Things to Think About
The Backstory
1999 2000 2001 2002 2003 2004 2005 2006 2007
Krassen Dimitrov and
Amber Ratcliffe meet
in Lee Hood’s Lab
Krassen & Amber
build ISB’s microarray
lab
Out of frustration with
arrays idea of
individual molecular
tagging born
Molecular Barcode Idea
Target Specific
Capture Probe
Target Specific
Reporter Probe
Target Specific Capture & Reporter Probes are created to
bind to the mRNA transcript
nCounter Assay
Image Surface
nCounter Assay
Code
Gene
Count
x
3
y
1
z
2
Codes are counted and tabulated
Research Seed Funding
1999 2000 2001 2002 2003 2004 2005 2006 2007
Pitch idea to the Institute for Systems Biology
Seed Funding for Basic Research
ISB Seed Funds Research
IP Licensing Rights for Founders Shares & Royalties
ISB Files First Patent
Amber Starts MBA at UW
Early Proof of Principle Data
1999 2000 2001 2002 2003 2004 2005 2006 2007
Dwayne gets hired and
comes up with idea for
stretching molecules
Preliminary data generation
Amber starts writing
business plan
Dwayne Dunaway
Writing the Business Plan
Identify the Application for the Technology
Calculate the Market Opportunity
Analyze the Competitive Landscape
Identify the Business Model
Create an Operational Plan
Generate Financials
Determine How Much Money You Will Need
Focus on the Business, not the Technology!
Business Plan Competitions
1999 2000 2001 2002 2003 2004 2005 2006 2007
NanoString competes in business plan competitions
Jungle International Business Plan Competition
Purdue National Life Sciences Business Plan Competition
UW Regional Business Plan Competition
Gives access to community members
Seed money
Good press
Validation of idea
Decision to Start the Company
Large Market Opportunity
Clear Business Model
Affiliations with Top Notch Scientists
Investor Interest
Access to Intellectual Property
Personal Passion for the Technology and Market
Desire to Experience the Process
Ability to Take the Risk
Forming a Company
1999 2000 2001 2002 2003 2004 2005 2006 2007
Company officially founded in June
Get corporate identity ready and infrastructure in place
Pitch to VCs - Kleiner Perkins, Paul Allen, Fraiser,
Versant, Arch, Flagship, etc
Select Sonya Erickson for counsel
Meet Perry Fell
Perry introduces us to Chad Waite
OVP gives us term sheet = blood in the water
Starting Up Operations
1999 2000 2001 2002 2003 2004 2005 2006 2007
January 2004 – DFJ starts due diligence
May 2004 – Angel round, start operations
Execute agreement with investors
Start leasing space at ISB
Hire first official employees (half pay)
Find an accountant
Set up IT infrastructure
Continue technology development
July 2004– Close $4.3M First Tranche Series A
Product Development
1999 2000 2001 2002 2003 2004 2005 2006 2007
First “4 spotter”
November - Move in to 4300 sqft of lab/office space
CEO, COO, CSO, Office manager, 3 PhDs, 2 Research Associates
Barcode development, instrument development, image
processing software development
Filing patents
Product Development
1999 2000 2001 2002 2003 2004 2005 2006 2007
Manufacturing scale up
Milestones:
January – make 25 reporters
May - make 100 reporters
August - make 532 reporters
File software patent
Start work on Nature
Biotech Paper
Start Instrument OEM
discussions
Forming Commercial Team
1999 2000 2001 2002 2003 2004 2005 2006 2007
Start offering fee for
service
Commercial group
formed
Chief Commercial Officer
Marketing
Sales
Business development
Open commercial office
in CA
Prepare for commercial
launch
Refresh corporate image
Messaging
Collateral generation
Formulations
Packaging, etc
Today
2001 2002 2003 2004 2005 2006 2007 2008
US Commercial Launch
Made Red Herring Top 200
Most Innovative Companies
Nature Biotech paper!
Raised $17M to date
Multiple System placements
Launching in Europe
January 2009
We currently have 43
employees
Realistic Timeframes
Time from idea to incorporation – 3 years
From incorporation:
Time Amber worked with no pay – 11 months
Time to raise VC $$ - 13 months
Time to produce fully functional prototype – 4 years
Time to get to commercial launch – 5 years
Time to get rich quick – 8 years and counting…
Take Aways
Be very clear about the opportunity
Market
Application
Freedom to operate (IP)
Do it for the passion and process
Understand your role now and going forward
Find experienced management & service providers
Know your tolerance for risk
Network, network, network – but be careful
Commit fully