Advanced Technology Ventures
Summer 2009 Update
Investor PersepectivesATV HighlightsPortfolio Company NewsEvents

This year, all aspects of the entrepreneurial ecosystem are adjusting to a new reality, yet the climate for start-ups is not as dire as the numbers might suggest.
While the IPO market remains slow, the good news is that there has not been a corresponding slowdown in innovation. From our vantage point, deal flow continues to be strong – and much of it of a very high quality.

As encouraging as it is to see a few companies breathing new life into the IPO market, it’s still too early to expect a sustained comeback. Economic recovery will likely begin this year, yet we’ve taken a more conservative approach in working with our companies based on a strategy that assumes a full recovery is still two to three years out. During this period, the strongest companies will mature and strengthen and be well positioned as the IPO and M&A windows open.

As the economy recovers, many of our companies are poised for significant growth having already taken early, aggressive steps to refocus on core aspects of their businesses. The IT sector, in particular, learned some painful lessons during the bubble burst of 2000 that put them in a better position to weather this storm. This climate is also forcing companies to identify new sources of funding to support growth. In the cleantech sector, for example, there are numerous new funding opportunities to drive companies toward commercialization, such as programs recently launched by the DOE.

The hallmarks of ATV’s investment strategy are well suited for this environment, with a primary focus on partnering with exceptional entrepreneurs, developing strong investment syndicates, and building robust, sustainable companies that lead new market categories.

INVESTOR PERSPECTIVES

A Stimulus for Cleantech
By Andrew Friendly, ATV Principal

The Obama Administration’s focus on clean energy development and climate change mitigation efforts combined with the recently enacted stimulus package will be a boon to the cleantech sector over the next couple of years. ATV and our portfolio companies are looking closely at how to benefit from the money coming from Washington. Read more…

Healthcare Outlook
By Tom Rodgers, ATV Partner

While all sectors are facing challenges in 2009, healthcare should maintain its reputation as one of the safer long-term harbors due to a set of underlying fundamentals that persist despite our economic turmoil. Aging demographics, coupled with a nation that struggles with obesity, drinking, smoking, and stress, creates a healthcare sector in ever-increasing need of innovation and investment. Read more…

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ATV HIGHLIGHTS

ATV PROMOTES TOM RODGERS, CHRISTIAN CORTIS, ANDREW FRIENDLY
ATV announced three well-deserved promotions - Tom Rodgers was named a Partner, and Christian Cortis and Andrew Friendly were both promoted to Principal. Read more…

DAN SCHRAG JOINS ATV AS VENTURE PARTNER
Daniel Schrag, the renowned Director of Harvard’s Center for the Environment and Professor of Earth and Planetary Sciences and Environmental Science and Engineering at Harvard University, has joined ATV as a Venture Partner, advising portfolio companies and providing ATV’s investment team with strategic counsel on new investment opportunities. Read more…

ATV LAUNCHES NEW WEB SITE
ATV kicked off the new year with the launch of a new web site (same URL: www.atvcapital.com), which serves as a resource for entrepreneurs and emerging companies. In addition to information on ATV and its portfolio companies, visitors will also find hundreds of job opportunities; a video series featuring CEOs sharing their entrepreneurial insights; and a timeline of ATV and industry milestones.

JEAN GEORGE AND BOB HOWER NAMED TO FORBES MIDAS LIST
ATV General Partners Jean George and Bob Hower are featured on this year’s Forbes Midas List. The list spotlights an annual ranking of the 100 “top deal makers” of the year. This represents Bob Hower’s second consecutive year on the list.

PORTFOLIO COMPANIES MAKING NEWS

OASYS Becomes ATV’s newest portfolio company.
The Cambridge, MA-based company received a $10 million Series A investment and is developing a desalination and water treatment process, which can produce clean water at significantly lower pressure than traditional reverse osmosis methods. That lower pressure means its system uses 90 percent less electricity and fuel to produce clean water compared to most systems. ATV co-led the round with Flagship Ventures and Draper Fisher Jurvetson.


Portola Signs Global License Agreement with Novartis.
Portola Pharmaceuticals made headlines by entering into an exclusive agreement with Novartis in which Novartis made a $75 million investment in Portola and gained worldwide rights to Portola’s Elinogrel, a Phase II anti-clotting compound with the potential to reduce risk of heart attack and stroke. Novartis also takes on full responsibility for the Phase III development, manufacturing and commercialization of Elinogrel. San Francisco, Calif.-based Portola is eligible for ongoing sales royalties from Novartis.

Host Analytics Secures Series B Funding.
Host Analytics secured just under $9 million in Series B funding to explore new markets for its on-demand budgeting and planning software. Coming off its best year and record-breaking success in Q1, the company will use the new resources to accelerate recent momentum. Existing Host Analytics' investors ATV and Trident Capital were joined in the new round by StarVest Partners.

GreatPoint Energy Takes Top Honors.
GreatPoint Energy was named the overall winner of this year’s GoingGreen East conference. The company is commercializing a technology that converts raw coal into natural gas and can yield dramatic near-term improvements in terms of reducing the pollution associated with coal. Four other ATV portfolio companies were also honored in their respective categories: Coskata (biofuels), Wakonda Technologies (Solar Energy), Oasys (Water Technology), and Rive Technology (Green Nontechnology and Synthetic Genomics).

Hydra Secures $22.2 million in Funding.
Hydra Biosciences, a biotech company developing novel ion channel drugs, announced a $22.2 million Series D round of financing. ATV participated in the round, led by MedImmune Ventures, a wholly-owned VC fund of MedImmune, the biologics business of the AstraZeneca Group. The financing will be used to advance multiple Transient Receptor Potential (TRP) ion channel drug programs, with the most advanced program moving into clinical trials in 2009, to be applied to diseases such as pain, inflammation, and pulmonary disease.

[x+1] Continues to See Dramatic Revenue Growth.
[x+1], the leader in predictive marketing, continued strong growth for both its media and website optimization solutions in the first quarter of 2009. Total revenue increased more than 90% compared with the first quarter of 2008, exceeding the company's expectations.

Ardian Completes $47 Million Financing.
Ardian, developer of a breakthrough catheter-based medical device to treat hypertension, announced that Medtronic, one of the world's leading medical technology companies, led a $47-million round of financing in the company. Joining Medtronic are Ardian's three existing investors: ATV, Morgenthaler Ventures and Split Rock Partners; as well as new investor, Emergent Medical Partners.

Plexxikon Teams with Roche, eyes $335M to Fight Kidney Disease.
Plexxikon joined forces with health-care giant Roche to develop a treatment for polycystic kidney disease. Under the terms of the deal, Roche will have full global rights to commercialize and market the compound, and several other related drug candidates. In exchange (on top of $60 million upfront), Plexxikon will be able to earn up to $275 million as it achieves various milestones. It is also entitled to royalties from drug sales, and will be able to co-promote any resulting products.


Acceleron Announces New Treatment for Anemia.
Acceleron Pharma, a biopharmaceutical company developing novel therapeutics that modulate the growth of cells and tissues including bone, muscle and red blood cells, introduced a breakthrough program for treatment of anemia at the JP Morgan Healthcare Conference. The company announced that it has designated a new development candidate, ACE-536, which selectively increases red blood cells and hemoglobin, as a potential treatment for anemia. Acceleron also recently announced a major expansion of its headquarters in Cambridge, MA.


Valeritas Completes Series B, Boosts Management Team.
Valeritas, a medical device company preparing to commercialize the V-Go disposable insulin pump for Type II diabetics, recently closed a $73M Series B round. Investors included ATV, MPM Capital, USVP, Abingworth Management, HLM Ventures, Onset Ventures, Pitango Venture Capital, CHL Medical Partners, and Kaiser Ventures . In addition, the company also announced the appointments of Kristine Peterson, former Group Chair of Johnson & Johnsonís Biotech Business, as CEO; and Geoff Jenkins, former VP of Worldwide Operations for Inverness Medical and Medisense, as COO. The company expects to launch the V-Go later this year.


For a more complete summary of recent portfolio company news, visit www.atvcapital.com.