BIOLOGICAL RESEARCH TOOLS & INFRASTRUCTURE INVESTMENT STRATEGY NLV-III’s investment strategy in Biological Research Tools and Infrastructure will focus on identifying companies that are at or near the commercial stage with novel products targeting established, high growth markets -- such as DNA sequencing and personalized medicine. The products of interest will be those based on differentiated technologies that offer higher quality biological results at significant cost savings to customers than current products. The investment theses for these companies will be based on rapidly building high-gross margins businesses that reach break-even on manageable timelines and limited capital budgets. An example of a tools company in the New Leaf portfolio is Advanced Cellular Diagnostics (NLV-II, commercial stage). Research tools and infrastructure technology companies are benefiting from several positive healthcare industry tailwinds. Technology advancements over the past decade, such as genomic sequencing and personalized diagnostics, have generated the need for additional reagents and instruments to efficiently interrogate vast amounts of biological samples and process massive quantities of resulting data. Unlike biopharmaceutical or medical device product development, these new reagents are not subject to the risks of costly clinical trials, regulatory approvals and payer reimbursement. Thus, timelines are more manageable and predictable, and budgets are much more capital efficient. In fact, in this sector, the Fund Managers expect to identify opportunities for investment in technologies that have been largely de-risked, are commercial- ready, and can be funded to profitability on VC dollars. While substantial commercial adoption will likely be required for most companies in this sector to be acquired, given the high margins, rapid sales adoption, and relatively low sales and marketing costs, funding the launch of a new tool or technology in this sector can represent an a