Building Commercial Software. It has to work 100% of the time.

Building Commercial Software

Presenters

—  SPI Software:

◦  Jeff Wilder: VP Customer Services

◦  Steve Schmidt: CFO

—  Preclara:

◦  Jack Karabees: CEO

—  U Innovation

Three Important Concepts

①  Hosting: Cloud versus Server

a)  Dirty little secret, all this means is where the

server is located and who takes care of it.

b)  Important from your point-of-view.

②  Freemium Model Rules.

③  Trained Frog Rule.

a)  No one important is interested in HOW it was

written.

b)  Customer’s only concern is what does it do for

Very Different Companies

Very Different Businesses

— 

SPI has provided timeshare and

vacation club operators the

software to manage their

Systems Products International

—  Developing and supporting software since

1978

—  Transitioned through multiple

development and technology platforms

—  Currently has 20 employees

—  65 customers

◦  Over 2500 users

Why Make High Quality Software?

—  A solid foundation to build upon

—  Attract top talent

—  Keep support costs low

—  High customer satisfaction

Making a quality SaaS product

—  Ongoing customer relationships. Not a

one time transaction

—  SaaS Key Features and Expectations

◦  Constant Availability

◦  Intuitive Interfaces

◦  Automatic Upgrades

◦  Easy Customization

SaaS Sales

—  Give a free taste

—  Social media / guerrilla marketing

—  Create a customer service culture

—  Happy customers are your best sales

resource

—  Avoid the “big fish” customer with

SaaS Support

—  Training videos and tutorials

—  Webinars

—  Self service portal

◦  Help desk

◦  Forums

◦  Knowledge base / Wiki

Teams Needed

1. Software Development Planning Team

2. Research and Development

3. Sales and Marketing

4. Support Team

5. Human Resources

Develop Easy To Use Software

Applications

1. Sales Tool

2. Encourages clients to implement the

software

Develop Analytical Reporting

Tools

1. Operated on any device, browser, and on

the cloud

2. Assists management in quick and efficient

analysis

3. Make profitable business decisions in a

User Feedback

1. Value of Software

2. Necessary Improvements

3. Usage tracking

4. Services

5. New Markets

Develop Effective Leaders

1. Measurement Tools

2. Methodologies and Processes

3. Applications and Tools

4. Inspiring Employees

5. Team Building

Emphasize Quality Services

1. Research and Development

2. Implementation

3. Support

Effective Marketing Strategies

1. Social Media

2. Company Website

3. Press Releases

Form Partnerships

1. Revenue partnerships with vendors

2. Beta test partners

3. Consider contracted partnerships for:

A. On-site project management B. Software Development

C. Software Interfaces

Effective Finance Models

1. Keep track of sales pipeline to predict

new business.

2. Record rate of contract renewals and

attrition.

3. Estimate total value of contracts landed.

4. Profit and Loss Forecasting

Preclara  Investor  Presentation  

• Headquarters:  Coral  Gables,  Florida  

•   Employees:  3  FTE’s  

•   Structure  /  Entity:  Delaware  C  Corporation  

•   Founded:  2014  

•   Sales  &  Marketing  Launch:  Q4,  2015  

•   Platform:  Beta-­‐stage  

•   Customers:  40

•   Market  Acceptance:  40,000  Reports    To-­‐Date  

Preclara  Commercial  Applications

•  Predictive  Medicine  (Risk  Determination)  

•  Genotyping  of  Specific  Disease  (to  Guide  Therapies)  

•  Pharmacogenomics  (Optimize  Drug  Therapies)  

•  Carrier  Screening  

•  Newborn  Screening  

•  Forensic  Testing  

             Typical  Reimbursement  Codes    

• Beckwith-­‐Wiedemann:  methylation  and  copy  number  analysis    81402  

• Beckwith-­‐Wiedemann:  CDKN1C  sequencing        81404  

• Beckwith-­‐Wiedemann:  prenatal  diagnosis          81202,   81265,  81404  

• Beckwith-­‐Wiedemann:  familial  mutation          81401,  81403  

• Cancer  Gene  Panel                    81479  

• Familial  Adenomatous  Polyposis            81201  

• FAP:  MYH  Full  Sequencing              81406  

• Familial  Adenomatous  Polyposis            81201  

• FAP:  APC  or  MYH  Familial  Mutation          81202,   81403  

Genetic  &  Healthcare  Industry  Needs

•  Detect  Disease  at  Earlier  Stage  (easier  and  less  expensive  to  treat  effectively)  

•  Stratify  Patients  into  Groups  (enables  selection  of  optimal  therapy)  

•  Reduce  Adverse  Drug  Reactions  (early  assessment  of  individual  drug  responses)  

•  Improve  Selection  of  Biochemical  Targets  (for  new  drug  discovery)  

•  Reduce  Time,  Cost,  and  Failure  Rates  (for  clinical  trials)  

Challenges  in  Genomic  Testing

•  Vast  Volumes  of  Data,  Computationally  Intensive  

•  Require  Specialized  Knowledge  &  Staff  

•  Current  Methods  for  Analysis  Require  Dedicated  Staff  

•  Often  Results  Format  Do  Not  Support  Specific  Clinical  Decisions  

Preclara  Genomic  Diagnostics  Provides:  

•  Robust  Computational  Infrastructure    

•  Genetic  and  Genomic  Diagnostics  to  Support  Clinical  Care  

•  Detailed  Analysis  of  Sequence  Information  (DNA,  RNA)  

•  Higher-­‐Level  &  Complex  Clinical  Laboratory  Diagnostic  Tests    

Bioinformatics Market: $13 Billion*(2018) •  2014:  $8.3B+  

•       2015:  $9.3B+  

•       2016:  $10.4B+  

•       2017:  $11.6B+  

•       2018:  $13  Billion+    

PreClara  Competitive  Advantages

•  Pure  Computational  Solution  

•  Lab  Technology  Neutral  

•  Unlimited  Genetic  Test  Field  

Competition

CAPABILITIES   Preclara     LabCorp  Trans  Genomics.  Neo  Genomics  Foundation  

Pure  Computational  Solution   Yes   No   No   No   No  

Support  Unlimited  Genetic  Tests   Yes   No   No   No   No  

Lab  Technology  Neutral   Yes   No   No   No   No  

Genetic  Online  Reporting   Yes   No   No   No   Yes  

Genetic  Interactive  Reporting   Yes   No   No   No   Yes  

Comprehensive  Newborn  Screens   Yes   No   No   No   No  

Clinically  Actionable  Reporting   Yes   Yes   Yes   Yes   Yes  

Single  Specific  Genetic  Tests   Yes   Yes   Yes   Yes   Yes  

Preclara Projected Operations 2016 - 2020*

.

2016   2017   2018   2019   2020  

Total  Revenue   $1,034,409   $2,542,280   $7,342,192   $15,824,191   $34,782,951  

Gross  Profit   $672,365   $1,652,482   $4,772,424   $10,282,724   $22,608,918  

EBITDA   ($720,709)   ($2,813,584)   ($4,517,608)   $(727,468)   $9,391,396  

Number  of  Customers  (Blended)      70      _{145        301}          650        1320    

Number  of  Tests    _{5,000        15,090      49,030      99,500        254,600}    

*  16  Month  Deployment  of  Funds  (to  Cash-­‐Flow  Positive)**  

Preclara  Executive  Team    

Management Summary

CEO

Jack Karabees

•  20+ years executing high-growth plans for healthcare technology and service companies •  CEO – Consult-A-Doctor, Start-up through Acqusition by Kleiner Perkins-backed

Teladoc

•  EVP – eLabor, VC-backed (Lehman, Redpoint), Start-up through Acquisition by ADP. •  SVP - Enterprise Project, VC-backed (Microsoft, Brentwood), Start-up to Acq. by

Microsoft.

Chief Science Officer

Dr. Nick Tsinoremas

•  20 years+ Scientific Genomics and Bioinformatics Research and Development •  Founding Director and Professor, Medicine, University of Miami

•  Senior Director of Computational Genomics, Merck and Co

•  Senior Director of Informatics, The Scripps Research Institute

•  VP of Genomics Products, DoubleTwist

CTO

Chris Mader

•  20+ years Software Architecture & Design in Genomics & Bioinformatics Applications •  Director of Software Engineering, University of Miami Center for Computational Science •  Head of Software Engineering, Scripps Florida

•  Architect, Agent Search Platform, DoubleTwist

Chief Medical Officer

Klaas Wiirenga, MD

•  10+ clinician and genetic counselor

•  Professor of Pediatric, Oklahoma University Health Science Center •  Clinical Director, Speciality Clinic, Oklahoma University

•  Medical Director, Gentics Program, Oklahoma University Health Science Center •  Professor of Medical Genetics, Miller School of Medicine, University of Miami

Series-­‐AA  Funding  Request:  $500,000  

•  Engagement  of  SalesForce  (CRM)  

•  Engagement  of    Data.com  (Prospect  Data  Provision)  

•  Acquisition  of  Active  Industry  Lists  

•  Engagement  of  HubSpot  /  Constant  Contact  (Email  Campaign  Management  &  Reporting)    

•  Establishment    of  New  Web  Site  &  Digital    Branding    

•  Short  “Explainer”  Video  for  Web  Site  and  email  campaign  

•  SEO  and  3rd  Party  Lead  Generation    

-  Keyword  Analysis  Research  &  Report  for  Pay-­‐per-­‐Click  (PPC)  

-  A-­‐B  Testing:    A-­‐B  Split-­‐testing  for  Google  AdWords    

-  Traditional  and  Digital  Advertising    

-  Account  Maintenance  &  Reporting  of    Preclara’s    ad  campaigns  and  performance    

•  Genetic    &  Healthcare  Industry  &  Channel    Network  Contact    

•  Attend  Vertical    Genetic  &  Healthcare  Channel  Trade  Shows  

Series-­‐A  Funding  Request:  $3  Million*  

Use  Of  Funds:  

 55%      Sales  &  Distribution  Expansion      10%      Hire  Key  Management  /  Personnel  

 35%      Ongoing  Platform  &  Services  Development  

 *16  Month  Deployment  of  Funds  (to  Cash-­‐Flow  Positive)**  

Very Different Companies

Very Different Businesses

— 

Preclara’s analytical software

provides genetic guidance to

medical professionals based on

standard blood tests. It has just

commenced operations.

Questions

—  For the audience: Can you tell me what

language the presenters’ software is written in? How it works?

Take Aways

—  You must be completely customer

oriented.

—  There are hundreds of details requiring a