Octane Impact Report 2019

2019 Impact Report

Covering January - December 2019 octaneoc.org

Octane and our community partners had an impactful 2019, the result of strong execution and positive tailwinds.

Together, we have built a movement with continued momentum into 2020. Orange County has become nationally recognized for creating high quality ideas, entrepreneurs and a lifestyle to build sustainable growing businesses.

Entrepreneurs continue to form companies and ideas that are cutting edge and attract capital from large money centers including Boston, New York, and the Bay Area. As a result, Octane portfolio companies raised a record $337M in 2019, up 57% from 2018. Today we stand at a positive inflection point and a powerful catalyst to position our community for sustained growth of companies, create high-paying jobs and deliver successful financial returns for investors.

As the team executed on our strategic plan, we simultaneously announced a variety of initiatives aimed at supporting the community, and drawing national attention to the Southern California region and in particular, Orange County. These new initiatives focus on STEM, Talent Development, Women Leadership and NextGen Leaders. Combined with our existing portfolio of services, this will dramatically impact the growth and competitive

differentiation offered by building a business in Orange County.

In September, we introduced Octane Enterprise Solutions (OES) which will support early and mid-stage companies raise capital, access talent, manage shared services and provide operational expertise. OES accelerates the timeline for a company to raise capital, generate revenue and potentially reach a liquidity event so an entrepreneur can do it all over again right here in Orange County! Finally, our pro bono LaunchPad Accelerator continues to overachieve expectations.

Thank you for being an important part of this journey. It has been an exciting and engaging five years. Your commitment to support our vision and roadmap is critical, I thank you for your continued support and confidence in our entire team.

Bill Carpou, Octane CEO

Contents Octane Overview 04 2019 Initiatives 06 By the Numbers 09 Success Stories 12 Vision Forward 16 Strategic Initiatives 17 Octane Team 18 Octane Board 19

2002 - 2005

2015 - 2017

Octane is created by Jim Mazzo, Mike Mussallem, Dwight Decker, Matt Massengill and Tom Moebus. It starts as a networking organization, and the conference that becomes MedTech Innovation Forum is launched. Okapi Ventures is formed and spun out of Octane.

Octane gains a leadership position within the Southern California innovation ecosystem and LaunchPad’s Accelerator increases momentum and creates positive outcomes.

Creation

Transformation

2006 - 2014

Formation Octane begins to gain traction and expands from a medtech-only focus to include tech and introduces regular convening programs. The pro bono LaunchPad Accelerator, supported by the SBDC is created.

04

2025+

Sustained Leadership Octane will continue to grow & expand outside of Southern California, while retaining focus on creating jobs within Orange County. The model has the opportunity for a national and global reach to further highlight the Orange County region.

2018 - 2025

Growth Octane is recognized as a primary resource for the Southern California innovation community and LaunchPad earns recognition as one of the Top Five SBDC accelerators nationally.

Additionally, Octane creates Visionary Venture Fund and Octane Enterprise Solutions to provide capital and growth resources.

05

2019 Initiatives In 2019, we built the foundation for our future.

We grew our reach beyond Orange County and created partnerships to push innovation further.

Established a Partnership & Innovation Center with FivePoint As Octane anchors innovation at the Great Park through its strategic partnership with FivePoint, a natural center of gravity will be established for ideas, company creation, capital access and growth across Southern California.

Expanded Signature Events with Aesthetics Technology Summit Octane developed a new signature event, Aesthetics Technology Summit, and transitioned Tech Innovation Forum to an Innovation Week on a full-scale Southern California Platform.

These events leverage the InSoCal network with a national and global reach.

Accelerated Octane Enterprise Solutions (OES) A separate Octane-owned entity committed to accelerate Octane’s mission of creating 55,000+ high-paying jobs in Southern California. OES supports companies from ideation through early capital raises, operational capability, growth and strategic or financial exits which maximize investor returns.

Launched Women Leaders of Octane, Non-Profit Accelerator & STEM-Focus Octane’s philanthropy impacts and enables the influence of women leaders in the startup community, enhances the impact of other nonprofits and builds a roadmap for STEM students to follow a path towards entrepreneurship.

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Expanded Investment Banking Relationships As Octane Enterprise Solutions (OES) creates high impact solutions, they have added five new investment banking partners to offer greater access to capital, each having very specific focus areas. Additionally, the Private Investor Network (PIN) continues to engage community leaders and create a new channel to fund early stage companies.

Refreshed Our Brand to Better Reflect Our Vision and Future Our first brand refresh since 2010. The logo reflects growth and expansion. This includes the outreach of our organization for companies utilizing LaunchPad and our Octane Enterprise Solutions offerings, as well as our network’s leadership across the SoCal innovation ecosystem.

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Jobs Created Since 2010 3,338 in 2019

350 300 250 200

In LaunchPad M&A from 2010-2019

Worth $1.8B from 2010 - 2019

LaunchPad Alumni (617) Companies Funded (506, 82%) Companies Operational (456, 74%)

LaunchPad Company Success Rates

Capital Raised 2018 & 2019

22 Exits

Equal to 100 Jobs

$337M

$1.8B

13,830

$267M

2019 was a standout year for Octane and its LaunchPad Alumni Companies. With record capital raised and an increasing rate of success with our companies, Octane looks to continue its positive momentum in 2020.

In addition, we created the Non-Profit Accelerator using the proven LaunchPad Accelerator model, which helped 5 non-profits with building capacity and expanding reach.

We expect to have 10+ non-profits graduate from the accelerator in 2020.

150 100 50

0

2018

2019

$2.4B

Total Capital Raised Since 2010

*Data via Pitchbook Analysis and Deloitte Audit.

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$2.4B $2.0B $1.7B 2019 2018 2017

$1.4B

2016

Capital A successful ecosystem relies on several critical imperatives and capital is one of those. Octane has built relationships with investors, both strategic and institutional in many of the prime money centers to bring capital to Orange County for our companies. At the same time, two funds founded by Octane are operational 10

and there are more to come. Our belief is that capital is not difficult to find for great companies, but at the same time capital that is headquartered in our community will have a longer term impact on the entire innovation ecosystem and lead to further investment in innovation.

Job Creation Octane will create 55,000+ jobs by 2030. This will be accomplished through a joint strategy of both our LaunchPad Accelerator and Octane Enterprise Solutions (OES) platforms.

LaunchPad enables companies to create and refine investment capital strategies at no cost while OES builds company revenue and operational efficiency. The result is the creation of high-paying jobs, efficient use of capital and the ability to develop and maximize talent.

Southern California graduates more engineers and computer scientists than any other region

nationally, yet a disconnect exists between the number of jobs available and the talent pool in Orange County. Octane collaborates with universities and other organizations, to match talent and corporations in Southern California creating an opportunity to balance job requirements with the talent available and unique industry needs.

We’re proud to announce that since 2010, Octane has created 13,830 new high-paying jobs in the Southern California ecosystem, a 34% increase from 2018.

Accelerating LaunchPad Output 55,000+ Jobs

60000 50000

13,830 Jobs

40000 10,290 Jobs

30000

Vision 2025 22,000 Jobs

20000 10000 0

2010

2018

2019

2020

2025

2030

LaunchPad Alumni CLI Studios Completes a $7M Capital Raise

CLI Studios, a platform that leverages technology and video delivery to promote arts education, won the LaunchPad Presentation Award at Tech Innovation Forum 2019. The platform helps inspire teachers and students by allowing them to work with world-renowned instructors, 24/7, by sharing ideas and art education through technology. Just two months after their presentation, CLI Studios closed a $7.5M round that will continue to help them grow and build their Southern California-based company.

Jon Arpino, CLI Studios CEO and Co-Founder, was excited and eager to go through the LaunchPad process. Through the many iterations of their pitch deck with the LaunchPad team, they made continuous adjustments, and found the LaunchPad process to make refining a pitch deck (normally a very difficult process), much easier and more impactful because of the amazing expertise that CLI Studios had access to.

The knowledge and proprietary LaunchPad analytics were the most impactful parts of refining CLI Studios investor presentation leading up to Tech Innovation Forum 2019. Jon repeatedly mentioned that the entire process was enjoyable and rewarding, culminating in presenting on the Tech Innovation Forum 2019 stage in front of investors, strategic advisors and the entire conference. The feedback and analytics CLI Studios received from experienced LaunchPad advisors resulted in a compelling presentation that led to the company obtaining $7.5M in funding.

CLI Studios continues to grow and build their company, increasing their footprint in Southern California. They plan to expand their reach to more countries (currently, they are used in 30 countries) and expand to more schools and art education teachers around the world.

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Changing the Future of Cancer Treatment IntelliStem is a leading biotech company creating the next generation of cell therapy, solving many obstacles impeding the progress of curing cancer with their revolutionary technology. The most unique part about their technology is that IntelliStem will reduce costs, allowing access to cancer cell therapy for millions of patients. Their main mission is to save lives through their cell therapy and technology advancement- a bold goal that Octane is proud to support.

The LaunchPad team helped refine IntelliStem’s investment capital strategy, including the technology, due diligence, business, patent protection and objectives. The advice and feedback that CEO Riam Shamma received was essential to accelerate the growth of the company. Each meeting they had with the LaunchPad Team, allowed IntelliStem to gain deeper insight and make important changes to 14

their plan and presentation. Their product was a phenomenal end result.

While the IntelliStem team is located in Canada, they decided to open an office in Southern California because of the connections that were made during the LaunchPad process. Their collaboration through Octane partner, City of Hope, has allowed them to continue to grow and enhance their research in Los Angeles.

In addition, IntelliStem is continuing to grow, not only in headcount but also in advancing their technology. They have doubled their size and they are prepping for their clinical trial protocols and looking to meet with the FDA in March to April 2020. There is a lot to look forward to as IntelliStem improves their technology to help and find an affordable way to treat cancer.

Vision Forward As Octane looks to 2020 and beyond, we will continue to be a primary resource of the Southern California Business Community as we move towards Sustained Leadership in 2025. A new initiative we are proud to announce in 2020 is the creation of a NextGen Leaders group. It is one our CEO is very passionate about and will create the proper succession for the leaders in our community, building a stronger Orange County. Initially, this will consist of a small group of individual community and business leaders who will pave the way for a new generation of visionaries in Orange County and enable Gen Z and Millennial talent to create, build and grow ideas into companies here in Orange County.

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Strategic Initiatives Our goal is to create 55,000+ jobs in Southern California by 2030. We convene and enable the Southern California Tech and MedTech business ecosystem by connecting people, resources and capital.

We impact our community through LaunchPad, an industry leading pro bono accelerator, Enterprise Solutions, a platform to provide companies capital and growth resources and Signature Events & Programs. As we progress forward, we are guided by our 5 Strategic Initiatives.

1. Accelerate Business Formation & Growth 2. Create Services to Enable Long-Term Sustainability 3. Grow Core Revenue 4. Convene & Enable the Ecosystem 5. Expand the Octane Brand

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Our Team & Advisors Rita Battocchio Janelle Brunette Bill Carpou Maggie Carranza Cara Davidoff Carol DiStanislao Mallory Grimaud Deb Hart Jamie Hill Elsa Kondri Teresa Madden Cara Parchment JC Ruffalo David Ruff Paul Tobin Nicole Washington LaunchPad Advisors

Medical Advisors

Committees

Marc Bellotti Tom Mattoon Shaun Sanders Kenneth Stanigar Paul Symczak

Gregory A. Buford, MD, FACS John Hovanesian, MD, FACS Ehsan Sadri, MD, FACS Ava Shamban, MD Elizabeth Yeu, MD, FACS Steve Yoelin, MD Kamakshi Zeidler, MD, FACS

Executive Compensation Marketing Audit & Finance Nominating Investment LaunchPad Tech Lifesciences Community Engagement Conference Strategy

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Executive Committee, Board & Advisors Executive Committee Bill Carpou, Octane Jag Dosanjh, Allergan, an Abbvie Co. Bruce Feuchter, Strading Emile Haddad, FivePoint Bruce Hallett, Miramar Ventures Bob Jacobson, RSM Jennifer Leuer, CyberScout James Mazzo, Bain Capital + Avellino Jim Peterson, Peterson Capital Group Brett Wall, Medtronic Scott Whitcup, Akrivista & Whitecap Clay Wilemon, Brado

Board of Directors Bobby Azamian, Tarsus Pharma.

Kelly Barba, K&L Gates Thomas Berryman, Soft Health Tech.

Reynolds Bish, Kofax Limited Charles Black, J.P. Morgan Private Bank Caitlin Blanche, K&L Gates Tim Brandt, Deloitte Janelle Brunette, Octane John Casalaspi, AVT Tech/ Tech Data Anthony Chang, MD, MBA, MPH, MS Hazem Chehabi, MD Sean Crafts, Mavenlink Pete Deutschman, The Buddy Group Linda DiMario, Irvine Chamber

Shawn Dougherty, EXOIO Randy Fisher, Insperity Daniel Flynn, Western Digital Rick Gallagher, Experian Russ Garcia, Menlo Micro Fauad Hasan, Ornovi Reza Jahangiri, AAG Richard Henson, PhageTech LLC Kim Kovacs, Arroyo Ventures Sabing Lee, Knobbe Martens Steven Litchfield, MaxLinear Andrew Lyon, Chapman University Joe Manna, Experian Goran Matijasevic, UC Irvine Thomas Mitro, Aerie Pharmaceuticals David Perry, Former K&L Gates Paul Pickle, Lantronix Tom Piechota, Chapman University Aidan A. Raney, M.D., Hoag Hospital Carey Ransom, OC4 Venture Studio Ehsan Sadri, Visionary Eye Institute Earl Slee, Medtronic Dean Stoecker, Alteryx Carrie Strom, Allergan Katie Szyman, Edwards Lifesciences Jay Wadkins, Kobe, Inc. George Wall, Glaser Weil Gregory Washington, UC Irvine Jeffry Weinhuff, Visionary Ventures Ted Wilm, PwC

Ashlie Woods, Goldman Sachs David Zollinger, Edwards Lifesciences

Senior Advisors John Belli, EY Jim Corbett, CathWorks, Ltd. Peter Craig, OC Tech Alliance Reginald Gilyard, BCG Mike Gottfredson, UC Irvine Raouf Halim, Spectra7 Microsystems Matthew Jenusaitis, UCSD Health Jeffrey Kimbell, Kimbell & Associates Rick Lecky, Charting Success Matthew Massengill, Western Digital James McCluny, Emulex Corp.

Dave Meltzer, Sports 1 Marketing Tom Moebus, Former UC Irvine Juli Stone Moran, Deloitte Mike Mussallem, Edwards Lifesciences David Pyott, Former Allergan Robert Rosenbluth, Inceptus Medical Marc Samuels, Advi Paul Symczak, Octane Daniele Struppa, Chapman University Gerard von Hoffmann, Knobbe Martens Brian Ward, Independent

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Contact Us info@octaneoc.org octaneoc.org