Harris & Harris Group Builds Transformative Companies from - PowerPoint PPT Presentation

FIRST. TRANSFORMATIVE. PROVEN. T RANSFORMING THE F UTURE NASDAQ : TINY 1

S AFE H ARBOR S TATEMENT This presentation may contain statements of a forward-looking nature relating to future events. Statements contained in this presentation that are forward-looking statements are intended to be made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. These statements reflect the Company’s current beliefs, and a number of important factors could cause actual results to differ materially from those expressed herein. Please see the Company’s Annual Report on Form 10-K, as well as subsequent filings, filed with the Securities and Exchange Commission for a more detailed discussion of the risks and uncertainties associated with the Company’s business, including but not limited to the risks and uncertainties associated with venture capital investing and other significant factors that could affect the Company’s actual results. Except as otherwise required by Federal securities laws, Harris & Harris Group, Inc. undertakes no obligation to update or revisethese forward-looking statements to reflect new eventsor uncertainties. 2

C ORPORATE M ISSION Harris & Harris Group Builds Transformative Companies from Disruptive Science 3

H ARRIS & H ARRIS G ROUP • NASDAQ: TINY • 32 Years on NASDAQ • NAV/Share: $2.80 (1) (1) NAV/Share as of September 30, 2015 4

C OMPANY H IGHLIGHTS • 30-Year History Building Companies • Holds Equity in Over 20 Transformational Companies • We Have an Identified Roadmap to Success • We Identify and Invest in Transformative Growth Markets • Strong Interdisciplinary Team • Value Not Yet Realized 5

B USINESS M ODEL • Early Stage Invest • BIOLOGY+ • Company Building Build Return • NAV Growth • Board Participation Value • Partnerships Evergreen Structure Facilitates Growth 6

O UR C OMPETITIVE P OSITION Public VC Firms Liquid Public Holding Companies Illiquid Private VC Firms Late-Stage Early-Stage, Passive Involvement Active Involvement Investing in Disruptive Science 7

O UR C OMPETITIVE P OSITION Chemistry BioTherapeutics & Electronics Health Care Medical Devices Data & Analytics Technology Physics Materials Science Health Care Services Engineering Mathematics 8

W HY E ARLY -S TAGE • Opportunity to Generate Outsized Returns • Addressing Unmet Needs of S&P 500 Corporations • Limited Competition • Ability to Influence Company Strategy & Execution Unique Skillset for Investing in BIOLOGY+ 9

R ECOGNIZED L EADERSHIP I N E ARLY -S TAGE #1 Venture Capital Investor in High-Technology As measured by GrantIQ’s SBIR Source in February 2014: www.sbirsource.com/sbir/investors 10

W E H AVE E XPERIENCE B UILDING C OMPANIES BioVex Solazyme Crystal IS NASDAQ: Asahi Amgen SZYM Kasei 2011 2011 2011 NeoPhotonics Innovalight Ancora NYSE: Corden DuPont NPTN Pharma 2011 2011 2013 Xradia Enumeral Molecular Imprints OTC: Canon Carl Zeiss ENUM 2014 2013 2014 Examples of the public markets and/or corporations being interested in our portfolio companies. 11

W E H AVE B EEN IN T RANSFORMATIVE M ARKETS Additive Solid State Immuno- Manufacturing / Lighting Oncology Next Gen Semi Plant Solar Drug Delivery BioTech 12

R ECENT R EALIZED E XITS AND L IQUIDITY E VENTS Publicly Traded – All/Portion Unrealized as of 9/30/15 NASDAQ: SZYM** NASDAQ: OPGN OTC: ENUM Amgen Private Sale Asahi Kasei (CMOS) Canon Carl Zeiss Private Acq. DuPont CEC Corden NYSE: NPTN 2011 2012 2013 2014 2015 Notes: Returns on our investments in our publicly traded portfolio companies Enumeral and OpGen are unrealized as of 9/30/15. We may receive additional proceeds from releases of escrowed funds or achievement of milestones related to the sales of Molecular Imprints and BioVex.

W E H AVE P OTENTIAL G AME C HANGING P ORTFOLIO C OMPANIES ABS BIOLOGY+ Phylagen Other ORIG3N *Publicly traded companies TARA Biosystems **Publicly traded as of October 27, 2015 Accelerator Mersana D-Wave NGX Bio Metabolon AgBiome ProMuc Ensemble Champions* EchoPixel HZO PWA Senova OpGen* Adesto** Enumeral* Nanosys Cambrios Magic Leap EARLY MID LATE Note: Equity-focused portfolio companies and stage classifications as of September 30, 2015, not including 1) our rights to milestone payments associated with the acquisitions of BioVex Group, Nextreme Thermal Solutions and Molecular Imprints; and 2) portfolio companies currently in the process of being liquidated, have ceased or are in the process of ceasing operations and/or are seeking a sale of their assets, including Laser Light Engines, Ultora, SynGlyco, Cobalt, Bridgelux, and Black Silicon. 14

W E ARE N OW IN T RANSFORMATIVE M ARKETS Machine IoT Health: Microbiome Learning HZO Phylagen Promuc Regenerative AgTech Medicine 15

M ETABOLON Actionable Diagnosis • Leader in Metabolomics: 3,000+ Genetics ¡Show ¡ Studies, 60+ Patents, $96+ DNA Disease ¡Risk Million Cumulative Revenue • 2013 Released Three Diagnostic RNA Tests Targeting Diabetes & Cancer Proteins Metabolomics ¡ • Initial Investment: 2006 Measure ¡ Biochemicals Disease ¡Status • Capital Invested: $ 7.2 Million • Voting Ownership: 5-10% Disease/ Treatment • Late Stage Mechanism 16

D-W AVE Only Commercial Quantum • Computer in the World Demonstrating 10,000-100,000x • Faster Problem Solving Partnered with Lockheed, • Google, and NASA • Initial Investment: 2006 • Capital Invested: $5.8 Million • Voting Ownership: <2.5% • Late Stage *We own voting and non-voting classes of preferred equity of D-Wave Systems, Inc. If the non-voting preferred equity was included in the calculation, our ownership of D-Wave would be in the 2.5-5% range. 17

HZO Submersion Protection • Provides Submersion Protection for Electronic Devices • Targeting Wearable, Defense, and Mobile Device Markets • Customers Include Top Brands and Manufacturers including Motorola and Dell • Initial Investment: 2011 • Capital Invested: $8.9 Million • Voting Ownership: 10-15% • Mid Stage 18

D ISTINCTIVE A PPROACH Interdisciplinary innovation is required to address these healthcare challenges. Electronics Physics Materials HEALTHCARE Science BIOLOGY TECHNOLOGY Chemistry SOLUTIONS IT Engineering Mathematics 19

A D ECADE OF BIOLOGY I NVESTMENTS BIOLOGY ENABLES H&H PORTFOLIO COMPANY Engineering Single Cell Analysis Crop Protection Big Data Solutions Physics Predictive Physiology Protein Structure IT Analysis High-Quality Mathematics Molecular Diagnostics Targeted Material Bio-Compatible Science Drug Delivery 20

H ISTORICAL P ARTNERING E COSYSTEM University Relationships Corporate Relationships Intel Microsoft MIT Google Columbia Cold Spring Syngenta Harbor Laboratory Health Diagnostic CalTech Johns Hopkins LIFE Stanford Mitsui Laboratory, Inc. University Technologies Princeton Oxford Celgene Synaptics Cornell Harvard Unilever Tyco University College 3M Genentech Tufts Duke London Samsung Sephora Arizona State University of Crucell Dow UC Santa LG Innotek University College of Bunge Minnesota Barbara Oxford Wooster Bristol Myers Squibb University of Biosciences BOSCH University of University of Hitachi Illinois Novartis British Columbia Michigan Pfizer Chevron Chemical Washington University of Illumina RPI University Wisconsin Metter Toledo Lockheed UC Berkeley University of Martin Boehringer Ingelheim Texas Coherent University of Toronto Panasonic Sanofi-Aventix 21

P ARTNERING T O B UILD C OMPANIES University Relationships Corporate Relationships Corporate Demand • Cutting Edge Research • Company • Market Access • Building Landscape Analysis • Scale • Technology & • Foundational Science • Customer Intelligence • Deal Sourcing Investment • Thought Leaders 22

R ETURNING V ALUE FOR S HAREHOLDERS Generate Meaningful Returns by Increasing Net Asset Value (NAV) per Share 23

S TRONG I NTERDISCIPLINARY T EAM Doug Jamison Misti Ushio, PhD CEO, Managing Director CSO, Managing Director Daniel Wolfe, PhD Alexei Andreev, PhD President, COO, and EVP, Managing Director Managing Director Blake Stevens, PhD • 91 Years of Experience * VP, Senior Associate • 35 Exits for $2.7 Billion ** • Domain Expertise *Includes Investing and Industry experience ** Total value of portfolio companies at time of exit without milestone payments since 2002, when first deal team member joined 24

C OMPANY H IGHLIGHTS • 30-Year History Building Companies • Holds Equity in Over 20 Transformational Companies • We Have an Identified Roadmap to Success • We Identify and Invest in Transformative Growth Markets • Strong Interdisciplinary Team • Value Not Yet Realized 25

C ORPORATE M ISSION Harris & Harris Group Builds Transformative Companies from Disruptive Science 26

27