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

TRANSFORMING THE FUTURE

NASDAQ : TINY

• FIRST. TRANSFORMATIVE. PROVEN.

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SAFE HARBOR STATEMENT

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

• bligation to update or revisethese forward-looking statements to reflect new eventsor uncertainties.

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Harris & Harris Group Builds Transformative Companies from Disruptive Science

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CORPORATE MISSION

HARRIS & HARRIS GROUP

• NASDAQ: TINY
• 32 Years on NASDAQ
• NAV/Share: $2.80(1)

4 (1) NAV/Share as of September 30, 2015

COMPANY HIGHLIGHTS

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• 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

Invest Build Value Return

Evergreen Structure Facilitates Growth

• NAV Growth
• Company Building
• Board Participation
• Partnerships
• Early Stage
• BIOLOGY+

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BUSINESSMODEL

OUR COMPETITIVE POSITION

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Liquid Early-Stage, Active Involvement Late-Stage Passive Involvement Illiquid

Investing in Disruptive Science

Public VC Firms Public Holding Companies Private VC Firms

OUR COMPETITIVE POSITION

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Health Care Technology

BioTherapeutics & Medical Devices

Health Care Services

Physics Materials Science Data & Analytics Mathematics Electronics Engineering Chemistry

WHY EARLY-STAGE

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• 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+

RECOGNIZEDLEADERSHIPIN EARLY-STAGE

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#1 Venture Capital Investor in High-Technology

As measured by GrantIQ’s SBIR Source in February 2014: www.sbirsource.com/sbir/investors

WE HAVE EXPERIENCEBUILDING COMPANIES

Amgen 2011 NASDAQ: SZYM 2011 Corden Pharma 2013 Asahi Kasei 2011 Carl Zeiss 2013 Xradia Ancora BioVex Crystal IS Solazyme Canon 2014 Molecular Imprints

Examples of the public markets and/or corporations being interested in our portfolio companies.

OTC: ENUM 2014 NYSE: NPTN 2011 NeoPhotonics Enumeral DuPont 2011 Innovalight

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WE HAVE BEEN IN TRANSFORMATIVEMARKETS

Solid State Lighting Drug Delivery Plant BioTech Immuno- Oncology Additive Manufacturing / Next Gen Semi Solar

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RECENTREALIZED EXITS ANDLIQUIDITY EVENTS

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.

NASDAQ: SZYM**

Amgen

NYSE: NPTN DuPont

Asahi Kasei OTC: ENUM (CMOS) Canon Carl Zeiss

Corden

Private Acq.

NASDAQ: OPGN

2012 2013 2014 2015 2011

Publicly Traded – All/Portion Unrealized as of 9/30/15

CEC

Private Sale

LATE EARLY MID

OpGen* Magic Leap Enumeral* Senova AgBiome EchoPixel HZO Nanosys Cambrios Adesto** PWA Ensemble Champions* Metabolon

BIOLOGY+ Other

NGX Bio Accelerator ORIG3N

Phylagen ABS

D-Wave Mersana

*Publicly traded companies **Publicly traded as of October 27, 2015

ProMuc

TARA Biosystems

WE HAVE POTENTIAL GAME CHANGINGPORTFOLIOCOMPANIES

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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.

WE ARE NOW IN TRANSFORMATIVEMARKETS

Machine Learning Regenerative Medicine AgTech IoT Health: HZO Microbiome Phylagen Promuc

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METABOLON

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• Leader in Metabolomics: 3,000+

Studies, 60+ Patents, $96+ Million Cumulative Revenue

• 2013 Released Three Diagnostic

Tests Targeting Diabetes & Cancer Actionable Diagnosis

• Initial Investment: 2006
• Capital Invested: $ 7.2 Million
• Voting Ownership: 5-10%
• Late Stage

Metabolomics ¡ Measure ¡ Disease ¡Status DNA RNA Proteins

Disease/ Treatment Mechanism

Biochemicals Genetics ¡Show ¡ Disease ¡Risk

D-WAVE

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• 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.

HZO

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• Provides Submersion Protection

for Electronic Devices

• Targeting Wearable, Defense, and

Mobile Device Markets

• Customers Include Top Brands

and Manufacturers including Motorola and Dell Submersion Protection

• Initial Investment: 2011
• Capital Invested: $8.9 Million
• Voting Ownership: 10-15%
• Mid Stage

Interdisciplinary innovation is required to address these healthcare challenges.

HEALTHCARE TECHNOLOGY SOLUTIONS

BIOLOGY

Electronics Physics Materials Science Chemistry IT Engineering Mathematics

DISTINCTIVE APPROACH

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BIOLOGY ENABLES H&H PORTFOLIO COMPANY

Engineering Single Cell Analysis Big Data Crop Protection Solutions Physics Predictive Physiology IT Protein Structure Analysis Mathematics High-Quality Molecular Diagnostics Material Science Targeted Bio-Compatible Drug Delivery

A DECADE OF BIOLOGY INVESTMENTS

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HISTORICAL PARTNERINGECOSYSTEM

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University Relationships Corporate Relationships

Washington University

Cornell

University of Wisconsin

University College London

Tufts CalTech

University of British Columbia

RPI Harvard

Arizona State University

University of Texas University of Minnesota Columbia

MIT

Johns Hopkins University College of Wooster Oxford UC Santa Barbara University of Toronto University of Michigan UC Berkeley

Stanford

Princeton Duke University of Illinois Cold Spring Harbor Laboratory

Sephora Crucell BOSCH 3M Google Celgene Syngenta Microsoft

Health Diagnostic Laboratory, Inc.

LIFE Technologies

Bristol Myers Squibb

Bunge Chevron

Coherent

Dow

Genentech Hitachi Chemical Illumina

Intel

LG Innotek Lockheed Martin Metter Toledo Mitsui Panasonic Samsung Sanofi-Aventix Synaptics Unilever Tyco Novartis

Boehringer Ingelheim

Oxford Biosciences Pfizer

PARTNERINGTO BUILD COMPANIES

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• Cutting Edge Research
• Landscape Analysis
• Foundational Science
• Corporate Demand
• Market Access
• Scale
• Customer Intelligence
• Company

Building

• Technology &

Deal Sourcing

• Investment

Thought Leaders

University Relationships Corporate Relationships

RETURNINGVALUE FOR SHAREHOLDERS

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Generate Meaningful Returns by Increasing Net Asset Value (NAV) per Share

STRONG INTERDISCIPLINARYTEAM

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Doug Jamison

CEO, Managing Director

Daniel Wolfe, PhD

President, COO, and Managing Director

• 91 Years of Experience*
• 35 Exits for $2.7 Billion**
• Domain Expertise

Alexei Andreev, PhD

EVP, Managing Director

Misti Ushio, PhD

CSO, Managing Director

Blake Stevens, PhD

VP, Senior Associate

*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

COMPANY HIGHLIGHTS

• 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

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CORPORATE MISSION

Harris & Harris Group Builds Transformative Companies from Disruptive Science

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