The Washington University Monsanto Graduate Fellows' Symposium on November 7th, 2014 fostered interaction between academia, industry, & entrepreneurship. Jim McCarter, Senior EIR at BioGenerator & Adjunct Professor of Genetics provided a quick tour of resources for start-ups at WashU & in St. Louis.

1. Enabling Innovation Through Entrepreneurship –
Divergence, Inc. and Start-ups in St. Louis
Divergence, Inc.
James McCarter, M.D., Ph.D.
Senior Entrepreneur in Residence, BioGenerator
Adjunct Professor of Genetics, Washington University
Washington University
Monsanto Graduate Fellows Symposium,
November 7, 2014

2. Entrepreneurship is a Contact Sport –
Two Fun Ways to Dive Right In
• Venture Café at Cambridge Innovation Center in CORTEX
Divergence, Inc.
Every Thursday from 3-8pm –
Building a More Inclusive Innovation Economy –
www.vencafstl.org
• Quantified Self St. Louis – Self-Knowledge Through Numbers –
www.quantifiedstl.com
www.meetup.com/QS-STL

3. Key Messages for Innovation & Entrepreneurship
• Accelerated innovation is needed to meet massive global
challenges in health, food & environment.
• Entrepreneurship is uniquely positioned to drive innovation
through creation of multidisciplinary teams with singular focus.
• The capital formation landscape is rapidly changing with the
rise of angel investors, crowd sourcing & corporate venture.
• After a decade of capacity building, St. Louis’ entrepreneurial
ecosystem is nearing critical mass.
• The mission & culture of WashU must expand from leading in
knowledge creation to embrace innovation for societal impact.
• Students are leading WashU’s expansion into entrepreneurship.
Divergence, Inc.

4. Divergence, Inc.
Thank You
Colleagues
Divergence: Derek Rapp, Jeremy Williams, Michelle Insco
Monsanto: Robb Fraley, Tom Adams, John Hamer
BioGenerator: Eric Gulve, Dan Broderick
Washington University: Jeff Milbrandt, Evan Kharasch
Slides
Cortex Innovation District: Dennis Lower
St. Louis Regional Chamber: Jay DeLong
Balsa and Idea Labs: Yinzi Liu, Avik Som
Financial Disclosures: Cultivation Capital, Neurolutions, Mobius Therapeutics

5. Divergence, Inc.
Divergence – an “Overnight Success”
that was a Decade in the Making
• St. Louis biotech acquired
by Monsanto in 2011
• 3 products in agriculture &
veterinary medicine
• Team of 25 scientists,
world-class SAB including a
Nobel laureate & 4 HHMI
Investigators
• Reputation for scientific-excellence
with 80 patents &
publications and leadership
in RNA interference
• Venture & angel financing
of $21M, Revenue of $22M
from contracts & 33 grants
5

6. Divergence Mission: Develop Safe & Effective Products for the
Control of Parasitic Nematodes in Humans, Animals, & Plants
Nematodes (roundworms) -
• Most abundant animals
• Infect 2 billion people
• Cause >$80 billion in crop
damage annually
Root-knot
Cyst
Lesion
Reniform
Divergence, Inc.
Hookworm
Plant Parasites
Trichinella
Whipworm
Livestock
Strongylids
C. elegans
Ascaris
Filarial Worms
Heartworm
Pinworm
• Apply the public
knowledge created by
WashU’s world-leading
effort in
nematode genomics
(McCarter & Waterston,
Mitreva & Wilson)

7. Divergence – Genomics led to Superior Diagnostic Products that
Can Replace Microscopy in Veterinary & Human Medicine
Plate ELISA for detection of
Divergence, Inc.
hookworm, toxocara &
whipworm in dogs
IDEXX whipworm test, launched in
2014, detects infection a month
ahead of microscopy
Divergence achieved proof-of-concept for human Ascaris detection in Brazil
(M. Crawford, Divergence)

8. 2005 - The Pivot: Genomics led to “Divergent” Molecular Targets
But Not Yet Pharmaceutical & Agrochemical Products
• PEAMT: Divergence discovered a unique and essential enzymatic
pathway for nematode phosphocholine biosynthesis
• Partnered with Dr. Joe Jez at Danforth & WashU to characterize
enzyme structure and function
Lee and Jez, Structure 21:1778-87, 2013. Divergence, Inc.

9. 2005 - The Pivot: Divergence Leveraged its Strengths in
Informatics to Create a New Computational Chemistry Platform
The Harvest Chemical Discovery Platform
• Broad R&D platform for rapid and cost-effective
agrochemical discovery
• Developed in collaboration with UK-based
Cresset Biomolecular Discovery
• Able to search chemical structure space based
on electron distributions rather than 2D
structures
• Resulted in discovery of a molecular series with
novel mode of action, high potency, and safety
far superior to commercial nematicide standards
Divergence, Inc.
Jeremy Williams, PhD
Vice President,
Discovery Research
Matt Dimmic, PhD
Senior Director,
Computational
Discovery Research

10. Divergence Nematicide – SCN Reproduction
Reduced at All Three Sites in Illinois and Iowa
Divergence, Inc.
2009 - Jason Bond – Southern Illinois Univ.,
Carmi IL, SCN Seed Treatment
Cysts Per Root at 5 weeks
40
30
20
10
0
DA-I DA-II oxamyl NT
1 mg/seed
2009 - Greg Tylka – Iowa State,
Nevada IA, SCN Seed Treatment
Hg Reproductive Factor
25
20
15
10
5
0
DA-I DA-II oxamyl NT
1 mg/seed
SCN
Performance at 1 mg/seed comparable
to the carbamate oxamyl.
(B. Shortt, Divergence)

11. Divergence Nematicide - Outstanding Mammalian Safety
Divergence, Inc.
and Environmental Safety Profile
Compound Rat Oral LD50
(mg/kg)
Rat Dermal
LD50 (mg/kg)
Rabbit Dermal
Irritant
Rabbit Eye
Irritant
DA-I >5000 >5000 None Mild
DA-II >5000 >5000 Slight Mild
Abamectin 11 >330 Slight Mild
Terbufos 1.3 1.1 Lethal Lethal
Compound
Quail LD50
(mg/kg)
Bee LD50
(μg/bee)
Daphnia
EC50 (μg/L)
Earthworm
LD50
(mg/kg soil)
DA-I >500 >25 >100 >100
DA-II >500 >25 >100 >100
Abamectin >2000 0.002 0.37 33
Terbufos 29 4.1 0.31 4

12. Paraphrasing a Dozen Start-up Lessons
from Divergence CEO Derek Rapp
Be ready for everything to take longer than you expect.
Just because others aren’t doing it doesn’t mean it’s not
worth doing. Position yourself for exposure to smart
experienced people. Build a multidisciplinary and versatile
team. The best situation is being valued for products and
platform. Communicate fully with your team for
a shared vision. Create incentives for your team
including ownership. Things change when you accept
investors’ money. Make every decision with an eye
toward the liquidity event. Do not obsess about
valuation. Find non-dilutive sources of funding. Leading a
start-up company is an intensely personal experience.
(Start-ups are risky but not starting is risky too.)
Divergence, Inc.

13. Forward-Looking Statements
Certain statements contained in this presentation are "forward-looking statements," such as statements
concerning the company's anticipated financial results, current and future product performance, regulatory
approvals, business and financial plans and other non-historical facts. These statements are based on current
expectations and currently available information. However, since these statements are based on factors that
involve risks and uncertainties, the company's actual performance and results may differ materially from those
described or implied by such forward-looking statements. Factors that could cause or contribute to such
differences include, among others: continued competition in seeds, traits and agricultural chemicals; the
company's exposure to various contingencies, including those related to intellectual property protection,
regulatory compliance and the speed with which approvals are received, and public acceptance of biotechnology
products; the success of the company's research and development activities; the outcomes of major lawsuits
and the previously announced SEC investigation; developments related to foreign currencies and economies;
successful operation of recent acquisitions; fluctuations in commodity prices; compliance with regulations
affecting our manufacturing; the accuracy of the company's estimates related to distribution inventory levels; the
company's ability to fund its short-term financing needs and to obtain payment for the products that it sells; the
effect of weather conditions, natural disasters and accidents on the agriculture business or the company's
facilities; and other risks and factors detailed in the company's most recent periodic report to the SEC. Undue
reliance should not be placed on these forward-looking statements, which are current only as of the date of this
presentation. The company disclaims any current intention or obligation to update any forward-looking
statements or any of the factors that may affect actual results.
Trademarks
Trademarks owned by Monsanto Company and its wholly-owned subsidiaries are italicized in this presentation.
All other trademarks are the property of their respective owners.
© 2014 Monsanto Company

14. New Generation of Nematicide Could Provide
Novel Formulations with Excellent Control
SOYBEAN CYST NEMATODE
MONSANTO RESEARCH, SUMMER 2011
• Through the acquisition of
Divergence, Monsanto has added
a new nematicide to its pipeline
• Efficacy of new nematicide equal
to competitive standards against
multiple nematode species
• A variety of crops showing good
results including corn, soy and
cotton
• Regulatory submissions on track
EXPLORATORY
NEMATICIDE CHEMISTRY
UNTREATED
CONTROL
Phase 3
Advanced Product
Development

15. Growth Ventures Creates Transformative Business
and Technology Opportunities for Monsanto
Venture Capital - Gaining Earlier Access to External Innovation
• Sourcing from venture capital & entrepreneurial networks provides strategic
insights to areas of disruptive innovation
• Entrepreneurs bring ideas from other industries and syndication leverages
new capital to solve challenges in agriculture
SFO STL BOS
Innovation is concentrated in entrepreneurial ecosystems with leading
research centers, VCs, angel investors, incubators, accelerators, etc.

16. Growth Ventures Creates Transformative Business
and Technology Opportunities for Monsanto
Venture Capital - Gaining Earlier Access to External Innovation
• Investment builds a portfolio of early-stage assets with opportunities for
partnering, licensing, talent, and M&A
• Monsanto Growth Ventures VC team has sourced investments and
additional deals (licenses, etc.) from hundreds of leads

17. Doubling Yields with 1/3 Less Inputs by 2030 vs. 2000 –
Farming in the Future Will Be Increasingly Information-Driven

18. San Francisco Bay Area Dominants U.S. Venture Capital
Investments Followed by Boston
SFO
STL
BOS
Innovation is concentrated in entrepreneurial ecosystems with leading
research centers, VCs, angel investors, incubators, accelerators, etc.
PWC Moneytree Venture Capital Report, 2013.

20. Wash U
Start-up
Olin
Cup
BioGenerator Arch
Grants
Arch
Angels
Cultivation
Capital
Missouri
Technology
Corporation
Cardialen
(A-fib device)
Sparo Labs
(Asthma device)
( )

21. St. Louis now has
>$2B in
Venture Capital
Under Management

22. the non-profit Venture Arm of BioSTL has…
• Created & funded 50 start-ups
• Invested $8 million, leveraged 20:1 with
over $170 million in additional investment
& revenue
• BioGenerator Accelerator Lab; 18,000
square feet of office & lab space, free for
start-ups
• Entrepreneur in Residence Program;
16 experienced EIRs have mentored over
100 companies
• Funded WashU start-ups Cardialen,
Neurolutions & PixelEXX

23. • Launched in 2012, Arch Grants is a non-profit creating a game-changing
entrepreneurial culture and infrastructure to create jobs & attract talent to St. Louis
• Arch Grants funded companies are winners of an international start-up competition
that has attracted 1,600 applications from 40 states and 20 countries
• 55 starts-up have been awarded $50K each in non-dilutive financing to launch in
St. Louis
• With $3M in grant funding, companies have generated $50M in revenue & follow-on
capital, 53 remain viable and St. Louis-based
• Funded WashU start-ups Sparo Labs, MagBiosense, NanoDx

24. Biotech Has Been Joined By a Thriving IT Start-up Scene That
Boosted St. Louis Capital Raised in 2013 to $380 Million

26. Transform a 200-acre midtown industrial neighborhood into a
vibrant, 24-7, live-work-play-learn innovation community

27. Transform a 200-acre midtown industrial neighborhood into a
vibrant, 24-7, live-work-play-learn innovation community
• $2 billion development
• 3.7 million square feet
• 13,000 permanent jobs
• 5 Innovation Centers
• Green space & transit

29. Student Groups Are Creating a Culture of
Entrepreneurship at Washington University
• Launched in 2010
• Consulting for Bioscience Companies
• 200 Student Participants
• 73 Consulting Projects for 37 clients
• 28 WashU OTM Technologies
• e.g. Business plans for start-ups
• Launched in 2013
• Biomedical Engineering Innovations
• 100 Student Participants
• 14 Teams with inventions based on
clinician-identified challenges
• e.g. Cursor control for locked-in patients

30. Key Messages for Innovation & Entrepreneurship
• Accelerated innovation is needed to meet massive global
challenges in health, food & environment.
• Entrepreneurship is uniquely positioned to drive innovation
through creation of multidisciplinary NEEDS: for teams repeat with Successful singular exits
focus.
• The capital formation landscape is serial rapidly changing with investments &
rise of angel investors, crowd sourcing & corporate entrepreneurs.
the
venture.
• After a decade of capacity building, St. Louis’ entrepreneurial
ecosystem is nearing critical mass.
• The mission & culture of WashU must expand from leading in
knowledge creation to embrace innovation for societal impact.
• Students are leading WashU’s expansion into entrepreneurship.
NEEDS: Leadership for an
entrepreneurial culture
Divergence, Inc.

31. Thank you to Monsanto for support of St. Louis innovation & science education.

32. Appendix

33. Soybean Cyst Nematode (SCN) is the Most
• Over $1 billion in lost yield annually in U.S. alone
• Yield losses of 30% without above ground symptoms
• Neurotoxic pesticides out of favor with growers & regulators
• Rapid breaking of genetic resistance in the field
Divergence, Inc.
Important Disease of U.S. Soybeans
Soybeans damaged
by SCN
U.S. SCN distribution
Uptake of plant proteins
into the SCN intestine
(B. Gao & M. Hresko, Divergence)

34. Our Vision: Sustainable Agriculture
A Strong Vision That Guides All We Do
• Producing More
– We are committed to increasing yields to meet
the growing demand for food, fiber & fuel
• Conserving More
– We are committed to reducing the amount
of land, water and energy needed to
grow our crops
• Improving Lives
– We are committed to improving lives around
the world
Monsanto’s Goal: Double Yields with 1/3
Less Inputs by 2030 versus the year 2000

35. Monsanto is 100% Focused on Agriculture
Monsanto Company is a leading global provider of technology-based tools
and agricultural products that improve farm productivity and food quality.
Headquarters: St. Louis, MO
Total employees: ~22,000
Global locations: >500
Net Sales (FY13) $14.9 billion
United States
Latin America North
Brazil
Argentina
EU 27
India
Australia
Primary Markets
Corn Soybeans Cotton
Vegetables Roundup®
“We succeed when farmers succeed.”
-Hugh Grant, Monsanto CEO

36. Genetically Modified Crops
Produce Food That is as Safe and Nutritious as Conventional
ACRES OF
FARMLAND 3.95 Billion
USED FOR GMO CROPS SINCE 1996
1000+ STUDIES
ACADEMIC
SUPPORT THAT GMO CROPS ARE JUST AS SAFE AS
THOSE DEVELOPED THROUGH TRADITIONAL BREEDING
30 YEARS
THAT GMO CROPS HAVE BEEN RESEARCHED AND DEVELOPED
63 COUNTRIES
WHERE GM CROPS HAVE BEEN APPROVED FOR
CULTIVATION OR IMPORT
13 YEARS
ON AVERAGE TO DEVELOP AND TEST GM SEEDS
BEFORE THEY’RE GROWN COMMERCIALLY IN THE U.S.
www.gmoanswers.com

37. Agriculture is at the Center of Global Changes
RISING CHANGING
4.4B
7.1B
9.6B+
1980 TODAY 2050 1990 2012
1 ACRE
per person in
1961
CHANGING
9%
in 1965
14%
in 2030
less than 1/3 ACRE per person in
2050 DIETARY PERCENTAGE OF MEAT
DECLINING
Challenges
Source: The World Bank, Food and Agriculture Organization of the United Nations (FAO-STAT), Monsanto Internal Calculations

38. Innovation
BIOLOGICALS
INTEGRATED FARMING
SYSTEMSSM
Monsanto’s R&D Pipeline Builds
on a History of Innovation in Agriculture
BIOTECHNOLOGY
BREEDING
CROP PROTECTION
AGRONOMIC PRACTICES
1980s 1990s 2000s

39. PLANNING PRE-PLANTING PLANTING IN-SEASON HARVEST
General Farm Planning
Weed Control Program
Row Spacing
Variety/Hybrid
Selection
Refuge Options
Plant Population
Seed Treatment
Soil Insecticides
Pre-Plant Irrigation
Fertility Program
pH Management
Burn-Down Program
Tillage Level
Primary Tillage Program
Seed Depth
Planting Speed
Through the Field
Other Planting Operation
Decisions
Plant Population
Starter Fertilizer
Herbicide Application
Soil Insecticides
Fungicide Application –
In-Furrow
Variety/Hybrid
Selection In-Field
Keep Stand or Re-Plant
Post-Emergent Herbicide
Application
Foliar Insect Control
Fertility Program
Foliar Disease Control
Irrigation Application
In-Season
Equipment
Timing
Storage
Post-Harvest
Assessment
Grower Decisions Over the Year –
Farming in the Future Will Be Increasingly Information-Driven

40. And One Last Message … The Importance of
Science Literacy
• Innovation requires a scientifically literate public & talented young scientists from
diverse backgrounds
• YSP was launched in 1991 to promote science literacy and attract high school
students from disadvantaged backgrounds into scientific careers through hands-on
research and contact with active scientists
• Each year more than 100 graduate student volunteers reach 1000 students in local
public schools
• More than 250 high school juniors have completed research internships at WashU
– the majority major in science in college and 1/3rd complete a graduate degree
• YSP is supported by the Endowment for Science Literacy at WashU