Fuel Choices Initiative progress report - startup-nation.ch Mobility.pdf · Serving the global mobility players Utilizing Israel's top innovation & technologies Fostering and building

BEYOND MOBILITY

Sep. 2017

NOTICE TO ALL PROSPECTIVE INVESTORS

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Smart Mobility Power House

located at the heart of

Israel, serving global mobility

players and helps them

leverage the local

ecosystem

Beyond Mobility

Beyond Mobility

Israeli

startups

Garage VC Fund

GMPs (OEM,Tier1…)

Beyond Mobility Garage (BMG)

Israel's Smart mobility power house

Serving the global mobility players

Utilizing Israel's top innovation &

technologies

Fostering and building next gen

solutions

At the heart of the startup nation

R&D

Venture building

Investment opportunities

MVP / POC with resident startups

Corporate-level secure lab space

Active innovation scouting

Sponsored Events (meetups, networks)

Branded Co-working space

Brightest mobility brain power on-site

The Focal point for Israel’s Smart Mobility domain

BMG set of services

Eyal Rosner • Founder & Chairman of The Fuel

Choices Initiative.

• Build the Smart mobility Ecosystem in

Israel.

• 25Y of investments career.

• Vast experience in early stage

investments

Founding team

This document is confidential and proprietary – Beyond Mobility

More than a decade of friendship and collaboration as members of YPO.

Share the same passion, core values and business agility.

Eitan Naor • CEO of several NASDAQ traded

co’s , senior executive @ Amdocs.

• 30Y of converting technology into

successful global businesses.

• Chairman & advisor to startups

• Strong M&A and fund raising

experience

Beyond Mobility VC fund

• Domain: Smart Mobility technologies (moving people & goods)

• Geography : Israeli related companies

• Size: $75M

• Stage: Mainly Round A , B

• Expertise: Deep knowledge of the domain

• Approach: Involvement and value creation

• Deal flow:

• Unparalleled “Database”

• Beyond mobility Garage as a proprietary source


The opportunity

Smart Mobility (Automotive, Transportation & Energy) – A $10 trillion

market facing a massive disruption.

Israel is fast becoming a significant hub in Smart Mobility with over 500 start-ups in areas like sensing, vision, storage, big data analytics and

cyber security.

As a result, Israel attracts global players who are either in the field

(automotive) or are entering the field (energy, utility, software, Telecom

service providers, etc)

As a young evolving industry, the ecosystem still lack local expertise

and professional funding. As such some startups are totally over looked

while other prefer investments from people with domain expertise.


• Autonomous vehicles, connected cars & drivers

• Transportation IoT & digitization

• Mobility Safety & Security

• Mobility services (car sharing , fleet management, etc.)

• Smart city solutions – Traffic optimization (ITS)

• Automakers Drones & logistics

• Energy for transportation (electrification)

• Maritime & Aviation technologies

Investment focus


Our Domain – moving people & goods*


* See more about the domain in the appendix

Our domain segments

Key trends:


Location based solutions Trip optimization

New materials Battery prices EV Decentralized energy market

Autonomous free time Consumption (connectivity; retail; media, etc)

change in public services / Insurance

Autonomous + EV reduce sharing services cost

Change mobility behavior (from ownership to service)

Change in infrastructure / real estate

Autonomous + Drones + 3D printing change in logistic value chain 3D printing Change in the automotive industry

Macro trend = marginal cost of computing, sensing, communication and Energy = Zero

1

15

9

4 54

13

Companies By Stage

(Percentage)

Public Round A

Round B Round C & above

Seed Self funded

The mobility ecosystem in Israel


# of Companies

Sub Sector

69 Autonomous & Connected Car

42 vehicle technologies + Infotainment

72 Navigation, ITS & Parking

82 Urban Vehicle & Drones

39 Sharing mobility

46 Safety & Security

47 Batteries / storage / e-powertrain

20 Fleet management, logistics

40 Engines + energy efficiency

36 Alternative Fuels

62 Other (infrastructure, manufacturing & more)

555 Total

Where the Israeli startups have an edge

Israel - Domain analysis


Major s.h.

Last valuation

Description Name Major s.h.

Last valuation

Description Name

funds $250M Fleet mgnt Green Road Intel

$15B ADAS Mobileye

Alcoa $250M Batteries Phinergy Google

$1.1B Navigation Waze

Magna $180M Cyber Argus VW

$2B Hailing app Gett

Delphi $150M Data Otonomo Delphi

$600M Chips Valence

Magna $400M Lidar Innoviz BMW, SNCF $450M Transit app Moovit

Funds $150M Lidar Oryx Funds

$330M Fast charging Powermat

Funds $120M safety Nexar OEM

$415M Batteries StoreDot

Sold to Harman

$75M Cyber TowerSec Daimler $1000M Transit app Via

Plastic Omnium

$100M Fuel cells POCell Tech Denso $300M V2V Autotalks

Sold to Ford N/A analytics Spics Sold to Harman $200M Infotainment RedBend

Local activity (Investments & exits)


5Y 200 companies; $3B investments (excl. Mobileye & Waze)

* In red – companies younger than 7Y

Sample of deals

Sourcing deals:

Strong Data Base ~ closely monitor more than 500 companies

identified 15 potential investments

Garage as a proprietary deal source and as a validation process.

Due Diligence:

Relationships with the entrepreneurs for more than 4Y

Clear view about the companies future

Close relationships with industry players

Co Invest:

Intimate knowledge of the domain = Potential partners

After the Investments:

Active roll

Open doors with potential partners

Span of control (not more than 5 companies per partner)

Exit strategy:

Build to last,

via IPO, M&A , PE, or any other options.

Our investment process


Status Company Description

Few pilots Round A

Fleet management and cyber security

Pilots in two countries Round A

Intelligent Transportation system (improve traffic

management and flow)

Sales EU+US Round B

Software management system for EV charging

Few pilots Round A

Real time analysis of visual information for multiple

applications including parking homeland security and

more

Initial sales Round A

Acoustic sensor detecting malfunctions in advances

Initial sales

Round A

3D Imaging radar on a single chip

Potential deals



• Focus on mobility/transportation only*

• We are high caliber experienced team

• Do it in a very different way:

• Engage closely with MNPs and startups (Garage)

• Long term and continuous process

• Unmatched deep knowledge and deal flow

• Bring strategic value to our LPs

Our differentiators

* See appendix: research show that domain specialist funds outperform general funds

Smart mobility related Field

$75 million in limited Partnership interests Offering

8 Years, plus three options for one year extension. Fund lifetime

4 years from last closing Investment period

$1,000,000 Minimum commitment

Select by the general Partner. Any subscriber for $10 million or more may appoint one voting member.

Advisory Board

Full disclosure will be follow shortly Strategic advisory committee

80% to the limited partners and 20% to the general Partner (after return of capital)

Carried Interest

Standard Claw back

2% of the capital commitment for the investment period.

Followed by 2% of the net investments on cost basis .

Management Fee

This document is confidential and proprietary – Beyond Mobility 18

Summary of terms

Beyond Mobility Where smart investors impact smart mobility


Appendix: Specialists outperform generalist

Source: Cambridge Associates

Compiled and designed by Timothy Pollard and Gregg A. Runburg (Nov. 2014)

Constantly Better:

Outperform was consistent across sectors on both IRR and multiple of invested capital basis

Size Doesn’t matter:

Outperformance was consistent across fund size

According to research, domain specialist funds outperform general funds

Connected / Autonomous vehicles:

both vehicles and infrastructure to improve safety and well being while

assist the driver up to the point of autonomous driving system.

On-demand mobility models:

Pay per use - sharing economy.

Mobility related smart city solutions:

Electric vehicles, last mile solutions,

smart infrastructure.

automakers digitization:

Digital manufacturing &

Energy efficiency solutions. 0

10

20

30

40

50

1990 2000 2010 2020F 2030F

Electronics as percentage of auto cost

Appendix: Our domain



Our domain players

Key trends – cont.


lower marginal cost

autonomous Share mobility

services Electrification

Autonomous + Shared + EV:

Increase demand for mobility

reduce private ownership

Compete / complement public transportation

Energy: Decentralize sys.

Batteries:

Cost reduction

Diversification

connectivity

Infrastructure: City planning

Charging

lower marginal cost

PwC estimates market to grow 23% p.a. until

2025

Investments into ride-hailing companies topped

$11B in 2015 and total $21B by mid 2016.

Each CarShare vehicle removes 7-15 vehicles of

the streets and parking spaces. While users drive

60-80% less than people who own cars

Impact on the automotive industry

↓ Reduction of global number of cars on the road

↑ Faster replacement velocity of cars given higher utilization

↓ Acceleration of commoditization of car and loss of brand value power

↑ Positive impact on auto suppliers

Currently ~ 70M people use ride/car sharing services globally. The addressable market is probably 10X

Car / Ride sharing


Annual industry revenues from car connectivity

Mobility management: Functions that allow the

driver to reach a destination quickly, safely, and in

a cost-efficient manner

Safety: Functions that warn the driver of external

hazards and internal responses of the vehicle to

hazards

Vehicle management: Functions that aid the driver

in reducing operating costs and improving ease of

use.

Driver assistance: Functions involving partially or

fully automatic driving

Entertainment: Functions involving the

entertainment of the driver and the passengers

Well-being: Functions involving the driver’s comfort

and fitness to drive

Connected car


Disruptive effect & new business opportunities for many industries such as automotive,

logistics, energy, real estate, insurance and more.

Can reduce up to 80% of cars on the street (based on research made by MIT, TU Delft)

Surfing the internet market potential = 5 billion euros p.a. (autopilot mode) (McKinsey's

European Automotive Consulting Services).

In some areas like agriculture, mining,

wheelhouses, autonomous vehicles are

already reality, reducing labor costs by

as much as 90% and CO2 emission by 60%.

Insurers will focus mainly on Insuring

car manufacturers from liabilities

from technical failure

Autonomous vehicle


With 16% annual improvement , Li-ion pack price fell from $1000 in 2010 to less

than $300 in 2017, and expect to drop as much as $75 by 2025, making the EV

the vehicle of choice.

Regulation + battery prices are pushing automakers into EV

Sharing services is most likely be early adaptor, as EV offer lower marginal cost.

Total cost of ownership should reach par between 2020 – 2025

Bloomberg predict 25% of new car sales to be electric by 2030.

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036

$/mile

Midsize

Compact

BEV 60 kWh

BEV 45 kWh

Between 2020 and 2030, EVs will become cheaper to own than ICE cars on an unsubsidized basis

Electrification


Market size for new technologies

$B 2020

200 Car connectivity

200 Share mobility (car share + Ride share)

15 Personal mobility (western world only)

50 Automated Driving

12 EV charging

10 EV Storage solution

10 Transit app

Automotive related

Transportation market size ~ $10 trillion (New vehicles sales ~ $2 trillion )

$B US market size

750 Automotive

550 Energy

250 Public sector

200 Insurance

100 finance

20 Media

35 Medical & legal

24 Retail

28

Market size


Decrease in personal ownership; Increase in fleet (higher use due to shared mobility)

Automotive

Improve efficiency. Move to electric propulsion; decentralization. Energy

from personal liability to catastrophic systems-failure insurance; personalization Insurance

Higher demand for electricity; EV will be used for peak shaving; lower battery prices will increase decentralization and demand for micro grid

Utilities

Last mile replaced by robots, drones and 3D Logistics

Higher demand due to spare time while commuting Media / telco

Increased use of seniors, could increase retail sales Expands home delivery options

Retail

Shift from personal finance to fleet Finance

Reduce taxes, reduce the need for law enforcement, reduce emergency medical

Public

microprocessors, Lidar/ radar; big data/ deep learning; vision; 3D; AR/VR Technology

Future mobility effects


Investments Vs. Exits ($ million)

(last 5 years ~ 100 exits per year on average)

01,0002,0003,0004,0005,0006,0007,0008,0009,000

10,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Investments Exits

Startup Scene (From 1999):

~11,000 new startups.

~ 5000 closed.

~ 900 exits.

~ 1000 new every year.

#1 per Capita in: R&D, Engineers, IP, Scientific papers, VC money.

#1 for Innovative capacity (MD World Competitiveness Yearbook 2013)

#1 in “The world Clean-tech Innovation index for 2014”

2nd for density of Startup per capita (2nd only to silicon valley)

Appendix: Israel – The startup nation


Documents

Fuel Choices Initiative progress report - startup-nation.ch Mobility.pdf · Serving the global mobility players Utilizing Israel's top innovation & technologies Fostering and building