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Equity CrowdfundingChanging the world of innovation finance
Dan Bennett – Managing DirectorFOSS session, January 2015
Ashley Krongold – General PartnerOctober 2015
Equity CrowdfundingChanging the world of innovation finance
Dan Bennett – Managing DirectorFOSS session, January 2015
1. Global VC over Equity Crowdfunding
2. Who we are and our approach to investment
3. OurCrowd’s Portfolio Snapshot
4. The Opportunity
5. OurCrowd Team
• Massolution: Crowdfunding portals raise $5.1 billion in 2013 – nearly double the amount raised in 2011.
• Over $16 billion in 2014 raised!!!• The World Bank estimate places global
crowdfunding at $95B by 2025
Consumer Lending Rewards-based Donations Venture Capital
3
Market Disruption: Crowdsourcing in Finance
Source: Deloitte TMT Predictions 2013 “Let's get together: crowdfunding portals bring in the bucks”Source: World Bank “Crowdfunding’s Potential for the Developing World”
Source: Massolution Crowdfunding Industry Overview 2013
4
The recent acquisition of Oculus raises questionsReward-based crowdfunding: Where is the Reward?
Now investors are asking why do I
only get a tshirt?
Andreesen, Spark, Matrix Partners back Oculus Rift (virtual reality headset) with $75M Series B, then Facebook acquires the company for $2BDecember 2013 … March 2014After raising $2.4M from Kickstarter, Oculus Rift gets the attention of major investors
Naturally, this plays into the rise of equity
crowdfunding platforms
Pays $2B for company and Original crowd funders get nothing
5
Our Story of Consumer Physics (SCiO) – multiple CF uses
Miniaturized spectrometer, allowing for the first hand-held molecular sensor.
Applications: measuring nutritional information in foods, allergens, authenticating precious metals and leathers, etc.
https://www.kickstarter.com/projects/903107259/scio-your-sixth-sense-a-pocket-molecular-sensor-fo
The Story of Consumer Physics (SCiO)
Khosla VenturesCo-founder, Sun MicrosystemsGP, Kleiner Perkins
Dov MoranM-Systems, acquired by SanDisk for ~$1.5B
Menahem KaplanGlobal CTO, Alcatel-Lucent $5B optical business
Co-investors:
Crowdfunded seed round on OurCrowd - $375k raised | 2013
The Story of Consumer Physics (SCiO)
Crowdfunded seed round - $375k raised | 2013
Launched consumer product on Kickstarter in 2014
Product launch - $2.8M in preorders
Product launch on Kickstarter at $200 price point saw over $1.2M in pre-orders within a week.
Rave reviews in media: VentureBeat, CNN, Bloomberg, Forbes, BBC, Fox, Gizmag, TechCrunch
Opened follow-on via OurCrowd –raised $3.3M within two weeks
Equity CrowdfundingChanging the world of innovation finance
Dan Bennett – Managing DirectorFOSS session, January 2015
1. Global VC / ECF Platform – over half investments in Israel, why?
2. Who we are and our approach to investment
3. OurCrowd’s Portfolio Snapshot
4. The opportunity
5. OurCrowd Team
$220M+invested10,000+
members80+Companiesin portfolio
120+countries 33
Up-rounds
Co-investors
0Failures
The largest ECF platform in the world!
Global leader in equity crowdfunding
Almost $220M raised for platform and portfolio
Raised $175M for over 70 companies
30+ companies with over $1m raised, ten over $3m, seven at or
greater than $4m, two at $8m and one over $10m
10
OurCrowd - Who are we?
3000+ companies per year
Open the deals to the crowd
Researching and selecting only the best
OurCrowd invests its own money
A hybrid of venture capital and crowdfunding
“Crowdfunding for real investors” (TheStreet.com)
Currently Selecting 1-2% of the deals pitched (circa 350 a month)
We always Co-invest with crowd (up to 10% of round)
Sophisticated and selected investors only
We mentor our companies and take board seats
13
We offer the professionalism of VC and flexibility of Angel investing
Venture Capital Angel OurCrowd
Access to Deal flow Top deal flow Limited Top deal flow
Due diligence Professional Limited Professional
Legal Dealt with Need to deal with Dealt with
Rights Protected Common shares Protected
Commitment Large No No
Fees Heavy No Lower than VC
Discretion/Choice No Yes Yes
Selection of OurCrowd companies
15
Key Investment Criteria
Great Team
Addressable Market
Simple Value
PropositionValue
Sponsorship
Traction
1. Great team Smart and/or serial
entrepreneurs
2. Market: Address a huge market
Large opportunities
3. A simple value proposition. Easily understood by us
AND by “our crowd”.
4. Traction Round A: Early
product, users, customers & revenues
5. Sponsorship: Board, mentor, advise,
smart investors
6. We seek “deals” and are value-sensitive.
Diversification across stage
Seed roundIdea phase
Series C-D RoundsPOC, sales & revenue
Series A-B RoundsR&D, early sales
Cleantech5%
Cloud/Storage3%
Communications5%
Consumer6%E-Commerce
7%
Gaming4%
IT Security / Fintech9%
Internet12%
Medtech Health15% Mobile
11%
Other5%
Optics/Semis2%
Social Media8%
Software8%
Diversification across sectors
17
18
19
$10.000
Equity CrowdfundingChanging the world of innovation finance
Dan Bennett – Managing DirectorFOSS session, January 2015
1. Global VC / ECF Platform – over half investments in Israel, why?
2. Who we are and our approach to investment
3. OurCrowd’s Portfolio Snapshot
4. The opportunity
5. OurCrowd Team
Exoskeleton deviceAdvanced robotics allowing paraplegics to stand, walk &
climb stairs.
Best performing IPO on NASDAQ 2014
https://www.youtube.com/watch?v=2Xd27c-pz4Y
New Zealand Feeding the world
Mobile app that enables farmers to control water use.
CropX– the world’s most affordable water
Israel recycles 75% of its water, #1 in the world. By comparison, #2, Spain, recycles just 11% of its water.
“Israel should be proud of being at the forefront of green innovations” – Angel Gurria, OECD Chair
NZ / Israeli water tech impact
22
23
Wireless Electricity• CEO Meredith Perry: Forbes’s ‘30
Under 30: Energy’ list and Fast Company’s ‘100 Most Creative People in Business’
• Energy from a wall outlet and uses ultrasound to project a focused beam of invisible energy
• 25+ patents, $7-10 billion market, e.g. hotels, airlines and mallsCO-INVESTORS:
Global Kinetics – Medical Care
• Technology for movement disorder (e.g. Parkinsons)
• Accelerometer / algorithms optimise delivery of medication
• Used in 130+ clinics with relevant regulatory approvals (CE, FDA etc)
OurCrowd has closed Australia’s largest ever equity crowdfunding round for $1.5 million” 19.05.15
Fighting the most deadly killer: malaria
Malaria has killed millions in the past decade
SightDX’s computer vision technology reduces the time to diagnose from several hours to minutes
Israel’s interdisciplinary strengths
Sight Diagnostics represents the convergence of two key Israeli strengths: life sciences/biology and machine vision/advanced algorithms
25
Identifying fraud through mouse/keyboard/touchscreen input monitoring which has 450 identifications that you are the user
26
Biometric security for the army now for civilians
Keeping the public safe
Video synopsis software to turn hours of footage into a short clipAdvanced video analysis algorithms
allow searching by color, direction of motion, size or speed of objects, and more
The ability to review a day of footage in a minute!
Case study: Boston Marathon BombingProblem: Law enforcement had thousands of hours of footage from throughout the city.
Solution: BriefCam’s software allows review of hours of footage in short scenes displaying all “actions” on top of each other.
Hi-tech air treatment
enVerid delivers a patented air treatment system using submarines / space stations tech
Saves energy (up to 40% in existing US and Israeli buildings).
enVerid was recently awarded a $2.4m grant from the US Dept of Energy to accelerate market adoption.
29
Putting your surgeon in the cockpit
Applying the science of flight simulation to advanced CT/MRI imaging tech
The only FDA-approved player in its market
Reducing surgical errors and costs with F-16 simulator technology
Surgical Rehearsal Platform: highly differentiated Israeli military tech
Surgical Theater’s core technologies are powered by the military technologies pioneered by its founders, Moty Avisar and Alon Geri, with the medical help of Dr. Warren Selman featured on CNN here
30
Co-investing with leading angel investors
Gigi Levy888Amdocs
Benny LandaIndigo
Ajay ShahSilverlake SumeruShah Capital Partners
Peter ThielPayPal
Li Ka-ShingHorizon Ventures
Eric SchmidtGoogle
31
Co-investing with leading investor groupsTop-tier funds and institutional investors
32
Co-investing with leading investor groupsTop-tier funds and institutional investors
Equity CrowdfundingChanging the world of innovation finance
Dan Bennett – Managing DirectorFOSS session, January 2015
1. Global VC / ECF Platform – over half investments in Israel, why?
2. Who we are and our approach to investment
3. OurCrowd’s Portfolio Snapshot
4. The opportunity
5. OurCrowd Team
1. Cherry pick: accredit online and select individual companies
2. Portfolio Reserve: Create a diversified portfolio.
3. Corporate Partnership
You can choose to invest in three ways
You always invest alongside OurCrowd investing its OWN capital
Equity CrowdfundingChanging the world of innovation finance
Dan Bennett – Managing DirectorFOSS session, January 2015
1. Global VC / ECF Platform – over half investments in Israel, why?
2. Who we are and our approach to investment
3. OurCrowd’s Portfolio Snapshot
4. The opportunity
5. OurCrowd Team
OurCrowd’s Leadership Team
36
Elan Zivotofsky General Partner Investments 15yrs experience in Israeli investing Managing Partner at Prelude Israel Former Head of Technology Banking, Lehman
Brothers Israel and top analyst at Goldman
Pini Lozowick General Partner General Partner at Alta Berkeley Among first employees at Broadcom, Dir.
Marketing Founder and GM of Verisense 5 exits; total value $3B
Evelyn Rubin BizDev Partner Sr Associate JVP Dir BizDev at CipherIT Sr Editor, Seeking Alpha
Jon Medved Co-Founder & CEO Washington Post: "one of Israel’s leading high tech
venture capitalists” 12 exits >$100M Co-founder, CEO of VRNG Founder & GP Israel Seed Partners, $260M AOM
Danna H Mann Partner, Head of Investor Rel. Global Marketing, Estee Lauder VP BizDev, JVP Properties Kellogg-Recanati EMBA
Dan Bennett MD Australia 12+ years in corporate finance and venture capital Former Aust. General Counsel – Babcock & Brown
fund Structuring financial products in $13B investment
house in Mayfair, London
Geoff Levy Chair of Advisory Committee Extensive experience in law, banking and investing Non-Executive Chairman of Monash Private Capital,
Specialty Fashion and Cromwell Property Group Non-Executive Deputy Chairman of Investec Bank
(Australia) Limited
Steven Blumgart Co-Founder & Chairman Co-director of Glencore's aluminum division Senior executive, management committee at
Glencore 1998-2012