T RANSFORMING THE F UTURE NASDAQ : TINY S AFE H ARBOR S TATEMENT - - PowerPoint PPT Presentation

TRANSFORMING THE FUTURE

NASDAQ : TINY

• FIRST. TRANSFORMATIVE. PROVEN.

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 obligation to update or revise these forward- looking statements to reflect new events or uncertainties.

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HARRIS & HARRIS GROUP

• NASDAQ: TINY
• NAV/Share: $3.85(1)

3 (1) NAV/Share as of September 30, 2014

CORPORATE MISSION

Harris & Harris Group Harris & Harris Group Builds T Builds Transformativ ansformative Companies e Companies from Disruptiv from Disruptive Science e Science

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COMPANY HIGHLIGHTS

• 30-Year History Building Companies
• Holds Equity in Over 20 Transformational Companies
• Value Not Yet Realized
• Focused Strategy for Accelerated Growth
• Strong Interdisciplinary Team

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Invest Build Value Return

BUSINESS MODEL Evergreen Structure Facilitates Growth

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

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

Investing in Disruptive Science

OUR COMPETITIVE POSITION

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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+

RECOGNIZED LEADERSHIP IN 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 EXPERIENCE BUILDING COMPANIES

(Amgen, 2011) (NASDAQ:SZYM, 2011) (CordenPharma, 2013) (Asahi Kasei, 2011) (Carl Zeiss, 2013) Xradia Ancora BioVex Crystal IS Solazyme

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(Canon, 2014) Molecular Imprints

GAME PLAN FOR ACCELERATED GROWTH

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• Realize Value in Current Portfolio
• Invest in BIOLOGY+
• Partner for Resources & Expertise
• Return Value to Shareholders

Note: Equity-focused portfolio companies, year of first investment and stage classifications as of September 30, 2014, not including 1) our publicly traded shares of Solazyme; 2) our rights to milestone payments associated with the acquisitions of BioVex Group, Nextreme Thermal Solutions and Molecular Imprints; and 3) 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 and Cobalt.

PORTFOLIO BY STAGE

LATE EARLY MID

Mersana Enumeral ABS Senova AgBiome EchoPixel ProMuc Nantero SiOnyx OpGen HZO Bridgelux Nanosys Cambrios Adesto PWA Ensemble Champions D-Wave Metabolon

BIOLOGY+ Other

Molecular Imprints UberSeq Accelerator

TARA Biosystems

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METABOLON

• Leader in Metabolomics: 3,000+

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

• Diabetes Diagnostic Franchise
• Partnerships With Leading Genomics

Researchers and Corporations Including Leroy Hood, Craig Venter, Baylor Univ. and SynapDX

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Actionable Diagnosis

• Initial Investment: 2006
• Capital Invested: $7.2 Million
• Voting Ownership: 10-15%
• Late Stage

Metabolomics Measure Disease Status DNA RNA Proteins

Disease/ Treatment Mechanism

Biochemicals Genetics Show Disease Risk

CHAMPIONS ONCOLOGY (OTC:CSBR)

• Validated & Differentiated Platform

for Personalized Medicine

• Personalizing Treatments for

Otherwise Untreatable Cancers

• Accelerating Development of New

Therapies for Cancers

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>80% Positive Predictive Value

• Initial Investment: 2011
• Capital Invested: $2.2 Million
• Ownership: ~2.5-5%
• Late Stage

TumorGraftTM Mouse

Predictive Treatments

D-WAVE

• Only Commercial Quantum

Computer in the World

• Demonstrating 10,000-100,000x

Faster Problem Solving

• Partnered with Lockheed,

Google, and NASA

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• Initial Investment: 2006
• Capital Invested: $5.8 Million
• Voting Ownership: 2.5-5%
• Late Stage

ENUMERAL BIOMEDICAL (OTC:ENUM)

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• Spin-out of MIT/Harvard
• Unique Platform that Leverages

Human Cell Biology

• Multiple Initial Engagements

with Large Pharmaceutical Companies

• Initial Investment: 2009
• Capital Invested: $5.6 million
• Ownership: 15-20%
• Early Stage

Proprietary Platform New Diagnostics New Therapeutics Recovery of Failed Therapeutics

HZO

• Provides Submersion Protection

for Electronic Devices

• Targeting Wearable, Defense, and

Mobile Device Markets

• Customers Include Top Brands

and Manufacturers in Wearables

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Submersion Protection

• Initial Investment: 2011
• Capital Invested: $8.4 Million
• Voting Ownership: 15-20%
• 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 Physics Non-Invasive, High- Resolution Imaging Mathematics High-Quality Molecular Diagnostics Material Science Targeted Bio-Compatible Drug Delivery Electronics Personal Genomics Analytics Protein Structure Analysis

A DECADE OF BIOLOGY INVESTMENTS

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Technology Platforms Company Building Market Access Scale & Manufacturing

Corporate Partner

Corporate Partners are Highly Complementary

Technology Platforms

Company Building

Market Access Scale

PARTNERING EARLY IS BENEFICIAL

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PORTFOLIO PARTNERS

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H&H Portfolio Public Sector Private Sector

Note: Includes corporate partnerships since 2002, which is when the first of the current Managing Directors joined the firm.

NIST DOE NSF NIH DARPA ONR Sephora Crucell BOSCH 3M Google Celgene syngenta Microsoft

Health Diagnostic Laboratory, Inc. LIFE Technologies

NASA

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

Corporations currently add value to Harris & Harris Group and our portfolio companies in multiple ways.

CURRENT EXAMPLE OF OUR PARTNERING STRATEGY

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RETURNING VALUE FOR SHAREHOLDERS

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

GROWTH IN AVERAGE OWNERSHIP

Notes: Average ownership data includes investment-weighted ownership percentages on a fully diluted basis as of September 30, 2014, for unrealized investments including investments in pending tranches of previously closed financings, as applicable. Many of our current portfolio companies may raise additional capital, and depending on many factors our ownership could increase or decrease in these companies as a result of these financings. The data for 2005-2008 does not include ownership in Ancora Pharmaceuticals Inc. If this investment was included, the investment-weighted average ownership would be approximately 16 percent. There is no guarantee that the projections of average future ownership will be achieved. Do not place undue reliance on such projections.

5% 9% 15% 20%+ 0% 5% 10% 15% 20% 2001-2004 2005-2008 2009-2014 Goal

Average Ownership

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STRONG INTERDISCIPLINARY TEAM

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Doug Jamison

Managing Director, CEO

Daniel Wolfe, PhD

Managing Director, President

• 89 Years of Experience*
• 35 Exits for $2.5 Billion**
• Domain Expertise

Alexei Andreev, PhD

Managing Director, EVP

Misti Ushio, PhD

Managing Director, CSO

Blake Stevens, PhD

Senior Associate, VP

*Includes Investing and Industry experience ** Total value of portfolio companies at time of exit without potential future milestone payments since 2002, when first deal team member joined

COMPANY HIGHLIGHTS

• 30-Year History Building Companies
• Holds Equity in Over 20 Transformational Companies
• Value Not Yet Realized
• Focused Strategy for Accelerated Growth
• Strong Interdisciplinary Team

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CORPORATE MISSION

Harris & Harris Group Harris & Harris Group Builds T Builds Transformativ ansformative Companies e Companies from Disruptiv from Disruptive Science e Science

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