Subject: Fwd: RSTP Follow up
From: "John DeLoche" <[email-masked]>
To: "Hunter Biden" <[email-masked]>, "Devon Archer" <[email-masked]>
Cc: "Neil Callahan" <[email-masked]>, "William Lee" <[email-masked]>
Date: Sun, 29 Jun 2014 17:27:02 -0700

Hunter and Devon,

FYI email chain w Salman of QIA. I suspect they are discussing Counsyl and RSTP in Doha Monday their time.   Might be worth reaching out to Mohammed to offer support for their process if they need it. Also confirmed with Counsyl over the weekend they would increase the size of the round to accommodate a $50mm check from Qatar. 

Thanks,

John 

Sent from my iPhone

Begin forwarded message:

> From: John DeLoche <[email-masked]>
> Date: June 27, 2014 at 1:38:14 PM PDT
> To: Salman Siddiqui <[email-masked]>
> Subject: Re: RSTP Follow up
> 
> Sounds good. I spoke to the CEO, Ramji Srinivasan, today who can be available for a call for follow up questions and to walk you through the business if you think that will be helpful. He is a very impressive CEO. 
> 
> Have a great weekend. 
> 
> John 
> 
> Sent from my iPhone
> 
>> On Jun 26, 2014, at 12:42 AM, Salman Siddiqui <[email-masked]> wrote:
>> 
>> Many thanks John for the comprehensive response. I’ll let get back to you if there are further questions
>> Regards
>> Salman
>>  
>> Salman H. Siddiqui
>> Qatar Holding LLC
>> Qtel Tower, Corniche
>> P.O.Box 23224
>> Doha, Qatar
>> Office: +974 4459 1839
>> Mobile: +974 5588 9811
>>  
>> From: John DeLoche [mailto:[email-masked]] 
>> Sent: Thursday, June 26, 2014 2:50 AM
>> To: Salman Siddiqui
>> Subject: Re: RSTP Follow up
>>  
>> HI Salman,
>> 
>>  
>> 
>> That's a good question. The 12% market share refers to the Carrier Screening (UGT) test in the U.S. only, of which there were about 1mm tests given per year as of 2013. That base number is growing at about 20% annually as more patients opt for carrier screening. Labcorp and Quest are at about 300k carrier screening tests each as of last year, and Counsyl is taking significant share from both of them as well as in house hospital labs (more on this later).
>> 
>>  
>> 
>> The overall lab testing space is now estimated at about $60 billion annually in the U.S. only. The market share data on pages 38-39 refer to the overall lab testing space, rather than the carrier screening market in particular. The message here is that Counsyl is growing explosively in a huge market and has very small overall market share at this point which suggests a tremendous amount of potential growth for the company as they expand into additional tests. Counsyl is uniquely approaching this market with software and robotics to make lab testing affordable in an unprecedented way for patients. 
>> 
>>  
>> 
>> A good analogy is that Counsyl is to Labcorp and Quest what Amazon was to Barnes & Noble and what Netflix was to Blockbuster.  Both Amazon and Netflix are technology companies which have effectively driven their competition out of business with superior software and technology platforms. Labcorp and Quest are mature, slow moving companies whose corporate cultures make it very difficult to react to Counsyl's ability, through state of the art technology, to deliver their tests at much lower price points and with greater accuracy and faster turnaround time.
>> 
>>  
>> 
>> We view each test that Counsyl introduces onto its platform as at least a $1 billion enterprise value opportunity. They now have two tests on the platform--Carrier Screening and BRCA1/2 (Breast Cancer) which was introduced in Q1 2014. In Q3 2014 they will introduce NIPT (Non-Invasive Prenatal Test--a replacement for amniocentesis which has the potential to become standard for all pregnancies in the US). We expect they will have 5-6 tests in the market when they go public in about 18 months time. As such, given the disruptive nature of their business model in a huge addressable market, we think it is quite reasonable that Counsyl can achieve a market value of several billion $ when public, and has the potential to eclipse the value of the two incumbents over time. This does not include the international opportunity which is larger than that of the U.S. 
>> 
>>  
>> 
>> Also important to highlight on page 38 as that 62% of testing by revenue is still in-house at hospitals. This is another huge growth path for Counsyl as hospitals increasingly outsource this testing to lower cost external providers. Counsyl is by far the lowest cost provider in the industry with the most advanced lab facilities so we feel great about their ability to continue to take share from hospitals as well. 
>> 
>>  
>> 
>> Sorry for the long winded answer. Please feel free to reach out with more questions. I am traveling to NY this evening for the rest of the week so will be available for a call to delve into these, or other, topics further.
>> 
>>  
>> 
>> Best,
>> 
>>  
>> 
>> John
>> 
>>  
>> 
>> 
>> 
>> John DeLoche
>> 
>> Co-founder and Managing Director
>> 
>> Rosemont Seneca Technology Partners
>> 
>> 333 Bush Street, 21st Floor
>> 
>> San Francisco, CA 94104
>> 
>> office: 415 767 1288
>> 
>> mobile: 415 793 7070 
>> 
>>  
>> 
>> This email communication is privileged and confidential and is intended only for the individuals or entities named above. Any unauthorized dissemination of any of the contents of this email is strictly prohibited. If you are not the intended recipient, please do not read, copy, use or disclose to others the contents of this communication. Please notify the sender that you have received this e-mail in error and then delete the e-mail.
>> 
>>  
>> 
>> On Wed, Jun 25, 2014 at 5:14 AM, Salman Siddiqui <[email-masked]> wrote:
>> 
>> Hi John
>> A quick question for you:
>> Market Share: the Company Overview on page 14 of the RSTP IC paper refers to a 12% market share for Counsyl. Could you please reference this to the market share data given on pages 38 and 39, i.e. where does Counsyl stand vs its Independent lab competitors, as well as when compared to the total Lab Industry Market in the US?
>> Many thanks
>> Salman
>>  
>> Salman H. Siddiqui
>> Qatar Holding LLC
>> Qtel Tower, Corniche
>> P.O.Box 23224
>> Doha, Qatar
>> Office: +974 4459 1839
>> Mobile: +974 5588 9811
>>  
>> From: John DeLoche [mailto:[email-masked]]
>> Sent: Tuesday, June 17, 2014 5:24 PM
>> To: Salman Siddiqui
>> Cc: Hunter Biden; Devon Archer; Jasim Jamal; Mohammed Saif Al-Sowaidi; William Lee; Neil Callahan
>> Subject: Re: RSTP Follow up
>>  
>> Salman,
>> 
>>  
>> 
>> Likewise it is nice to meet you. That time works for us tomorrow. We can use the following dial in:
>> 
>>  
>> 
>> 202 446 0487, 333188#
>> 
>>  
>> 
>> I attach our internal investment committee memo for the Counsyl investment as well as an updated overview of RSTP.
>> 
>>  
>> 
>> Best regards,
>> 
>>  
>> 
>> John
>> 
>> 
>> 
>> John DeLoche
>> 
>> Co-founder and Managing Director
>> 
>> Rosemont Seneca Technology Partners
>> 
>> 333 Bush Street, 21st Floor
>> 
>> San Francisco, CA 94104
>> 
>> office: 415 767 1288
>> 
>> mobile: 415 793 7070 
>> 
>>  
>> 
>> This email communication is privileged and confidential and is intended only for the individuals or entities named above. Any unauthorized dissemination of any of the contents of this email is strictly prohibited. If you are not the intended recipient, please do not read, copy, use or disclose to others the contents of this communication. Please notify the sender that you have received this e-mail in error and then delete the e-mail.
>> 
>>  
>> 
>> On Tue, Jun 17, 2014 at 5:13 AM, Salman Siddiqui <[email-masked]> wrote:
>> 
>> Hi John
>> It's good to make your acquaintance. It will be helpful if we could have a call tomorrow to go through my initial thoughts and questions on this opportunity. Would 4pm our time (9am US Eastern time) tomorrow (Wed 18th) work for you and your colleagues?
>> Regards
>> Salman
>> 
>> Salman H. Siddiqui
>> Qatar Holding LLC
>> Qtel Tower, Corniche
>> P.O.Box 23224
>> Doha, Qatar
>> Office: +974 4459 1839
>> Mobile: +974 5588 9811
>> 
>> 
>> 
>> -----Original Message-----
>> From: Mohammed Saif Al-Sowaidi
>> Sent: Tuesday, June 17, 2014 11:55 AM
>> To: John DeLoche
>> Cc: John DeLoche; Hunter Biden; Devon Archer; Jasim Jamal; Salman Siddiqui
>> Subject: RE: RSTP Follow up
>> 
>> Dear John,
>> 
>> Thank you for the follow up. I thought that it was closing beginning June which was a very tight timeline. Good to hear it is now beginning August.
>> 
>> Salamn Siddiqui from my team will get in touch for a call toward the end of this week, then we will update you.
>> 
>> 
>> Regards,
>> 
>> -----Original Message-----
>> From: John DeLoche [mailto:[email-masked]]
>> Sent: Tuesday, June 17, 2014 5:07 AM
>> To: Mohammed Saif Al-Sowaidi
>> Cc: John DeLoche; Hunter Biden; Devon Archer; Jasim Jamal
>> Subject: Re: RSTP Follow up
>> 
>> Dear Mohammed,
>> 
>> We hope your travels have gone well. We wanted to follow up with you regarding the Counsyl opportunity.
>> 
>> It looks like a final closing will take place in August so there is more time to do diligence on our fund and the opportunity.
>> 
>> When would be a good time for a follow up meeting or call?
>> 
>> Best regards,
>> 
>> John
>> 
>> 
>> 
>> Sent from my iPhone
>> 
>> > On Apr 25, 2014, at 11:28 PM, Mohammed Saif Al-Sowaidi <[email-masked]> wrote:
>> >
>> > Thank you Hunter for the introduction, and we have a good meeting today.
>> >
>> > John, thank you for sending the profile across, we will go over it and touch base over the phone beginning May to understand the opportunity in greater details.
>> >
>> > Regards,
>> > Mohammad
>> >
>> > Sent from my iPhone
>> >
>> >> On 25 Apr 2014, at 06:36 pm, "John DeLoche" <[email-masked]> wrote:
>> >>
>> >> Hunter, thank you for the introduction.
>> >>
>> >> Mohammed,
>> >>
>> >> Pleasure meeting you over email.
>> >>
>> >> Following up on Hunter's note, please find attached an overview of our growth equity fund as well as a deal memo for a growth equity investment we are currently leading in Counsyl. Please let me know when would be a good time to connect to discuss.
>> >>
>> >> Best regards,
>> >>
>> >> John
>> >>
>> >>
>> >> John DeLoche
>> >> Co-founder and Managing Director
>> >> Rosemont Seneca Technology Partners
>> >> 333 Bush Street, 21st Floor
>> >> San Francisco, CA 94104
>> >> office: 415 767 1288
>> >> mobile: 415 793 7070
>> >>
>> >> This email communication is privileged and confidential and is intended only for the individuals or entities named above. Any unauthorized dissemination of any of the contents of this email is strictly prohibited. If you are not the intended recipient, please do not read, copy, use or disclose to others the contents of this communication. Please notify the sender that you have received this e-mail in error and then delete the e-mail.
>> >>
>> >>
>> >> On Fri, Apr 25, 2014 at 10:38 AM, Hunter Biden <[email-masked]<mailto:[email-masked]>> wrote:
>> >> Mohammed,
>> >>
>> >> It was a pleasure to meet you today.  Thank you for taking the time. I've cc'd two of my business partners, Devon Archer and John DeLoche, who can provide more information as it relates to our technology investments and our real estate investments.
>> >>
>> >> I will be in Doha in the middle of May and would love to see you at your convenience or possibly when you are in New York or Washington.  In the meantime, John will be sending some information regarding Counsyl, the investment I mentioned today.  There may be an opportunity for co-investment in the immediate, if you have an interest.
>> >> Look forward to seeing you soon.
>> >>
>> >> Best,
>> >> Hunter
>> >>
>> >> --
>> >>
>> >>
>> >>
>> >>
>> >> R. Hunter Biden
>> >> Rosemont Seneca Partners, LLC
>> >> 1010 Wisconsin Ave., NW
>> >> Suite 705
>> >> Washington, DC 20007
>> >> (202) 333-1880<tel:%28202%29%20333-1880>
>> >>
>> >> <Confidential Counsyl Draft Deal Memo.pdf> <Confidential RSTP
>> >> Overview.pdf>
>> >
>> > This e-mail communication is confidential and is intended exclusively for those individuals and entities addressed above and any other persons who have been specifically authorized to receive it.  If you are not such an intended recipient, please do not copy, use or disclose to others the contents of this communication.  Instead, please notify us that you have received this e-mail in error by sending a reply email to this message (together with any attachments). Please then delete the e-mail and any attachments and destroy any copies of it.  We regret any inconvenience resulting from erroneous delivery of this message and thank you for your cooperation.
>> >
>> > Please note that none of the Qatar Investment Authority, Qatar Holding LLC nor any of their respective subsidiaries will have any liability for any incorrect or incomplete transmission of the information contained in this e-mail nor for any delay in its receipt.  Any views or opinions expressed in this email are solely those of the author and do not necessarily represent those of the Qatar Investment Authority, Qatar Holding LLC or any of their respective subsidiaries.
>> 
>> ________________________________
>> 
>> This e-mail communication is confidential and is intended exclusively for those individuals and entities addressed above and any other persons who have been specifically authorized to receive it. If you are not such an intended recipient, please do not copy, use or disclose to others the contents of this communication. Instead, please notify us that you have received this e-mail in error by sending a reply email to this message (together with any attachments). Please then delete the e-mail and any attachments and destroy any copies of it. We regret any inconvenience resulting from erroneous delivery of this message and thank you for your cooperation.
>> 
>> Please note that none of the Qatar Investment Authority, Qatar Holding LLC nor any of their respective subsidiaries will have any liability for any incorrect or incomplete transmission of the information contained in this e-mail nor for any delay in its receipt. Any views or opinions expressed in this email are solely those of the author and do not necessarily represent those of the Qatar Investment Authority, Qatar Holding LLC or any of their respective subsidiaries.
>> 
>>  
>> 
>>  
>> 
>> This e-mail communication is confidential and is intended exclusively for those individuals and entities addressed above and any other persons who have been specifically authorized to receive it. If you are not such an intended recipient, please do not copy, use or disclose to others the contents of this communication. Instead, please notify us that you have received this e-mail in error by sending a reply email to this message (together with any attachments). Please then delete the e-mail and any attachments and destroy any copies of it. We regret any inconvenience resulting from erroneous delivery of this message and thank you for your cooperation.
>> 
>> Please note that none of the Qatar Investment Authority, Qatar Holding LLC nor any of their respective subsidiaries will have any liability for any incorrect or incomplete transmission of the information contained in this e-mail nor for any delay in its receipt. Any views or opinions expressed in this email are solely those of the author and do not necessarily represent those of the Qatar Investment Authority, Qatar Holding LLC or any of their respective subsidiaries.
>>  
>> 
>> 
>> This e-mail communication is confidential and is intended exclusively for those individuals and entities addressed above and any other persons who have been specifically authorized to receive it. If you are not such an intended recipient, please do not copy, use or disclose to others the contents of this communication. Instead, please notify us that you have received this e-mail in error by sending a reply email to this message (together with any attachments). Please then delete the e-mail and any attachments and destroy any copies of it. We regret any inconvenience resulting from erroneous delivery of this message and thank you for your cooperation.
>> 
>> Please note that none of the Qatar Investment Authority, Qatar Holding LLC nor any of their respective subsidiaries will have any liability for any incorrect or incomplete transmission of the information contained in this e-mail nor for any delay in its receipt. Any views or opinions expressed in this email are solely those of the author and do not necessarily represent those of the Qatar Investment Authority, Qatar Holding LLC or any of their respective subsidiaries