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 • 33 Years on NASDAQ • NAV/Share: $2.88 (1) (1) NAV/Share as of December 31, 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 NeoPhotonics NASDAQ: NYSE: Asahi Amgen SZYM NPTN Kasei 2011 2011 2011 2011 Innovalight Ancora Xradia Enumeral Carl Corden OTC: DuPont Zeiss Pharma ENUM 2011 2013 2013 2014 Molecular Imprints Nantero OpGen Adesto Canon: Private NASDAQ: NASDAQ: 2014 Sale: OPGN IOTS Private Acq: 2015 2015 2015 2015 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 12/31/15 NASDAQ: IOTS 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, OpGen, and Adesto are unrealized as of 12/31/15. We may receive additional proceeds from releases of escrowed funds or achievement of milestones related to the sales of Molecular Imprints and BioVex. Bridgelux acquisition by CEC has not closed as of 12/31/15.

W E H AVE P OTENTIAL G AME C HANGING P ORTFOLIO C OMPANIES EchoPixel NGX Bio Precision Health ORIG3N And Precision Medicine Portfolio Phylagen Companies ProMuc Champions* TARA Biosystems Metabolon ABS Accelerator Other Biology+ and Enumeral* AgBiome Active Legacy Lodo Ensemble Adesto* Portfolio Magic Leap HZO D-Wave Companies Petra Pharma Mersana Nanosys Senova OpGen* PWA EARLY MID LATE Note: Equity-focused portfolio companies and stage classifications as of December 31, 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. * Publicly traded portfolio company as of December 31, 2015. 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

P RECISION H EALTH AND P RECISION MEDICINE Regenerative Medicine Visualization Tools Microbiome Machine Learning Synthetic Biology Network Science Metabolome CRISPR-Cas9 Epigenome Proteome Computational Advances Genome Biology Data Chemistry Analytics Genomics 2.0 Materials 19

H ARRIS & H ARRIS G ROUP : G ENOMICS 2.0 G ENOME M ICROBIOME E PIGENOME C ELLS P ATIENT N of 1 T RANSCRIPTOME T ISSUE P ROTEOME P OPULATION O RGANS M ETABOLOME 20

R ETURNING V ALUE FOR S HAREHOLDERS Generate Meaningful Returns by Increasing Net Asset Value (NAV) per Share 21

S TRONG I NTERDISCIPLINARY T EAM Doug Jamison Alexei Andreev, PhD CEO, Managing Director Venture Partner Daniel Wolfe, PhD Blake Stevens, PhD President, COO, and VP, Senior Associate Managing Director • 58 Years of Experience * • 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 22

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 23

C ORPORATE M ISSION Harris & Harris Group Builds Transformative Companies from Disruptive Science 24

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