1

February21,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

Israel Technology Innovation Tour 2017—Day 4: OurCrowd Global Innovation Summit and “The Future is Here”

1) OnThursday,February16,thefourthandfinaldayofourIsraelinnovationtour,theFungGlobalRetail&Technologyteamattendedthe2017OurCrowdGlobalInvestorSummit.Theevent’sthemewas“TheFuture,”andapproximately4,000businessleadersfromaroundtheglobewereinattendance.

2) OurCrowdisoneofthelargestcrowdfundingorganizationsintheworld,accordingtoForbes.Theorganizationhasraisedmorethan$400millionformorethan110portfoliocompaniessinceitslaunchinFebruary2013.

3) Israelcontinuestobeaprimelocationfornewstartupsandinvestments.Thecountrysaw$4.8billioninvestedinhigh-techventuresin2016,a120%increasefrom2013.Voicerecognition,digitalhealthandagriculturetechareamongthetoptrendsdrivinginvestment.

4) AttheOurCrowdsummit,DeborahWeinswig,ManagingDirectorofFungGlobalRetail&Technology,participatedinapanelcalled“WagtheElephant:InnovatingatBigCompanies”thatincludedexecutivesfromMicrosoft,Innogy,DropboxandHonda.

5) TheFungGlobalRetail&Technologyteamalsoparticipatedina“startupspeeddating”eventatthesummit.WemetwithleadersfromJumpspeedVentures,aJerusalem-basedventurecapitalfund;Freightos,alogisticscompanythathascreatedanonlinefreightquotetool;ModLi,aonlinemarketplaceformodestclothing;andInvertex,makerofanomnichannelfootwearfit-scanningsolution.

Lastweek,theFungGlobalRetail&Technologyteamwentonafour-daytechnologyinnovationtourofIsrael.MembersofourteammetwithIsraelistartups,presentedattheLeADSportsTechnologyAcceleratorlaunchandattendedtheOurCrowdGlobalInvestorSummit,whereDeborahWeinswigdiscussedcorporateinnovation.

2

February21,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

Thesummitisthebiggestequitycrowdfundingeventintheworldanditfeaturedkeynotespeakerswhodiscussedinnovation,technologyandglobalization.HeldinJerusalem,thesummitwasattendedbymorethan4,000industryleaders,morethandoublethenumberofattendeesthepreviousyear.Themajorthemeofthedaywas“TheFuture,”andtherewasalsomuchdiscussionofcollaboration.Theeventincludedpresentations,panelsessionsandone-on-one“speeddating”networkingsessions.Oneparticipantaffectionatelyreferredtothesummitas“networkingonsteroids.”

The2017OurCrowdGlobalInvestorSummitattheJerusalemInternationalConventionCenterSource:FungGlobalRetail&Technology

Atthesummit,weheardfromanarrayofexecutivesandleaders,including:

• JonMedved,FounderandCEO,OurCrowd

• LalyDavid,BusinessDevelopmentPartner,OurCrowd

• ElanZivotofsky,GeneralPartner,OurCrowd

• NirBarkat,MayorofJerusalem

• DavidBleicher,CEO,Invertex

• AriLeonFruchter,HeadofBusinessDevelopment,Freightos

• ZviSchrieber,CEO,Freightos

• NavaBrief-Fried,Co-FounderandCEO,ModLi

• BenWiener,Founder,JumpspeedVentures

• MeirMorgenstern,SiteLead,Dropbox

• RuthyKaidar,ChiefStartupsandDeveloperRelationsLead,MicrosoftIsrael

• NickSugimoto,SeniorProgramDirector,HondaSiliconValleyLab

• InkenBraunschmidt,ChiefInnovationOfficer,Innogy

3

February21,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

OurCrowdGrowsfrom$100Millionto$400MillioninThreeYearsThesummitopenedwithawelcomeaddressfromOurCrowdFounderandCEOJonMedved,whohighlightedtheglobalnatureoftheevent.Medvedsaidanestimated82countrieswererepresentedatthesummit,alongwith300startupcompanies,250venturecapitalists,200multinationals,170visitingjournalistsand6,000registeredattendees(anestimated4,000actuallyattended).

OurCrowdwasfoundedinFebruary2013,andMedvednotedthatithasraisedmorethan$400millionformorethan110portfoliocompaniessinceitsinception.

SlidefromJonMedved’sopeningremarksatthe2017OurCrowdGlobalInvestorSummitSource:FungGlobalRetail&Technology

Jerusalem:AGrowingCityWhereEveryoneIsWelcomeMedvedthenintroducedJerusalemMayorNirBarkat,whospokeabouthislifeasanentrepreneurandaboutJerusalem.HedescribedJerusalemasacitywhereeveryoneiswelcome.“Therearenoguestsandnohosts.Itisnotjustthepast,itisthefuture,”hesaid.AccordingtoBarkat,tourismandhealth/lifesciencesaretwoindustriesthataregrowinginJerusalem.Hesaidthatfouryearsago,therewere250technologycompaniesinJerusalem,buttodaythereare600.HealsosaidthattherearegreatopportunitiesinJerusalemforyoungcompaniesthatwanttolocateandgrowtheiroperationsinthecity.

Medvedechoedthemayor’scommentsaboutJerusalembeingripeforinvestment,andpresentedtwocontrastingslidesoftheventurecapitalpicturethatillustratedhowIsraelhasthrivedinadecliningmarket.“Worldwideventurecapitalactivitydeclined24%andventure-backedexitsdeclined26%yearoveryear,”Medvedsaid.HethencontrastedthatglobaltrendwiththetrendinIsrael,wherehigh-techcapitalgrewby120%from2013to2016.

NirBarkat,MayorofJerusalemSource:FungGlobalRetail&Technology

4

February21,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

SlidefromJonMedved’sOurCrowdGlobalInvestorSummitpresentationSource:FungGlobalRetail&Technology

WhyisIsraelreceivingsomuchinvestment?Medvedsuggesteditispartiallybecausethecountry’sentrepreneursfocusondifficult,high-techareassuchasmachine-learningalgorithmsanddronetechnology.Headdedthat60%ofmilitarydronescomefromIsrael,andsaidthecountryleadstheworldinautonomousvehicletechnology.Sportstechnologyandagriculturaltechnologyarealsocorestrengths.

Top10TechTrendsthatWillChangeEverythingElanZivotofsky,OurCrowdGeneralPartnerandLalyDavid,OurCrowdBusinessDevelopmentPartner,thendiscussedthetop10techtrendsthatOurCrowdhasidentified:

1. Artificialintelligenceandmachinelearninggomainstream:Fasterprocessing,cloudcomputingand“trainingmachines”arealldrivingtruerevolution.Medvedadvisedthatcompaniesshouldfocusonapplicationsthatsolverealproblems.

2. VRandARbecomeacriticalbusinesstool:Thesetechnologiesarenolongerjustforentertainment;theyhavewideapplication.

3. Voice-drivenappsfilteroutthevoice:Thesearetheprimarymodeofhuman-machinecommunication.Cleaningthesignaliskey.Themissinglinkishearing.

4. Agtechdisruptstheworld’soldestindustry:Youngerfarmersaremoreopentotech.Theindustryisundergoingmassconsolidation.

5. Industrialandagriculturaldronestakeoff:Consumerapplicationsmaybefun,butmining,oil,gasexplorationandcropprotectionareamongtheareastowatchindronedevelopment.

6. Digitalrevolutionizeshealthcare:Digitaltechnologyisrevolutionizingtraditionalcareapproachesandolddatafornewapplications.Bigdata,computervisionandmachinelearningaredrivers.

5

February21,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

7. Blockchainapplicationsfinallytakehold:Theblockchainisnolongerjustforbitcoin;thesharingeconomy,logisticsanddatasecuritywillalluseblockchaintechnology.

8. Spacetech:Governmentsnolongerdominatetheindustry,andcostreductionsdrivefunding.

9. Infrastructurebecomescritical:Cyberprotectionisasimportantasever.Securityisnowaboutprotectingalldigitalthings.Israelremainsinthelead.

10. Autonomousdrivingpicksupspeed:Withautonomouscars,itisjustamatteroftimebeforethecoretechnologybecomesmature.Israelisemergingasahubofinnovation.

“WagtheElephant:InnovatingatBigCompanies”panelattheOurCrowdGlobalInvestorSummitLtor:MeirMorgenstern,SiteLead,Dropbox;NickSugimoto,SeniorProgramDirector,HondaSiliconValleyLab;InkenBraunschmidt,ChiefInnovationOfficer,Innogy;RuthyKaidar,ChiefStartupsandDeveloperRelationsLead,MicrosoftIsrael;DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technology;andLalyDavid,BusinessDevelopmentLead,OurCrowdSource:FungGlobalRetail&Technology

Panel:“WagtheElephant:InnovatingatBigCompanies”Laterintheday,DeborahWeinswigparticipatedinapaneldiscussiontitled“WagtheElephant:InnovatingatBigCompanies,”whichfocusedonpartnerships,corporateculture,communication,brandingandworkingwithstartups.LalyDavid,BusinessDevelopmentLeadatOurCrowd,moderatedthepanel,whichincludedRuthyKaidar,ChiefStartupsandDeveloperRelationsLead,MicrosoftIsrael;InkenBraunschmidt,ChiefInnovationOfficer,Innogy;NickSugimoto,SeniorProgramDirector,HondaSiliconValleyLab;andMeirMorgenstern,SiteLead,Dropbox.Highlightsofthepaneldiscussionfollow:

6

February21,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

Externalpartnerships:RuthyKaiderfromMicrosoftIsraelsaidthathercompany’sCEOtookthecompanyinanewdirectionafewyearsago.Thefocusbecamesellingservicesinsteadofsellingproducts.ThisshifthashadapositiveimpactonMicrosoft’spartnershipmodel.Today,Microsoft’spresenceinacountryenablescustomerstoleverageitssolutions.

Microsoftunderstandsthatstartupsarethenextformofpartnerships,andthatitisthepoweroftheecosystemandthepartnershipsthatallowstartupstosucceed.KaidarsaidthatMicrosoftbuiltcollaborationstohelpstartupsreachcustomersbecausealmosteverycustomerthatstartupswanttoreachisalreadyaMicrosoftcustomer.

Innovativethinking:Whenfacedwithseverechallenges,GermanenergycompanyInnogyexploredmanyoptions,includingaugmentedreality(AR)andartificialintelligence(AI),withtheunderstandingthat,inthefuture,thecompany’sultimatecustomermaynotbeaperson.

Dropboxstillbelievesthatcompaniescangivepeopletheopportunitytodisruptandprovideideas.About30%oftheideasfornewDropboxproductscomefromthecompany’sannualHackWeeks,andcompanyculturedemandsthatemployeesthinklikeentrepreneurs.

Managementsolutions:DropboxSiteLeadMeirMorgensterndescribedhowmanyindividualsspendnearly60%oftheweek(orthreedayseachweek)managingtime.Thecompanyislookingforinnovativetechnologysolutionstofixthisveryrealproblem.

Prioritizinginitiatives:Microsoftdecidesthestrategyandpillarsthatitwillfocusonatthebeginningoftheyear.Thepillarswillnevercompete,andarehorizontal.

Rebranding:Ifaprojectdoesnothavesupportfromleadership,itwillalwaysbeapetproject.Innogy’sInkenBraunschmidtadvisedthatitisnotwisetotrytoconvinceeveryoneofanidea’svalueatthesametime,andsaidindividualsshouldlookforgoodpartnerswhocanhelptheteamsolveproblemsratherthantryingtosolveeverythingontheirown.

Bridgingcross-culturaldifferences:Li&Funghasa250,000-square-footspaceinShanghaicalledTheExplorium,wherepartnerscansharethespace,learnandexperiment.ThecompanyinvitesseniorleaderstoSingularityUniversitytoexperienceAR/VRandintroducethemtonewtechnologiesandtrends.Thecompanyalsoconnectslargecompaniestostartups;thegoalistofindtherightstartupthatfitsthecompany’sneeds,acrossborders.

RuthyKaidar,ChiefStartupsandDeveloperRelationsLead,MicrosoftIsraelSource:FungGlobalRetail&Technology

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technology,andLalyDavid,BusinessDevelopmentLead,OurCrowdSource:FungGlobalRetail&Technology

7

February21,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

WorkingwithIsraelistartups:EveryApril,FungAcademyholdsastartupparkevent.Lastyear,threeoutofthe12participatingstartupswereIsraeli,andthisyear,sixareexpectedtobeIsraeli.FungGlobalRetail&Technology’sexperienceworkingwithanumberIsraelistartupshasbeenpositive.OurteamhasfoundthatthestartupteamsareveryresponsiveandthatthetimezonedifferenceisfavorabletoNewYorkCity.Thestartupswehaveworkedwithseemtobeabletoanticipateourneeds,andtheyknowtheapparelbusinesswell.Inaddition,wehaveworkedwithIsraelistartupswithparticularexpertiseinRFIDtagging,voicerecognitiontechnologyandcybersecurity.

SpeedDatingOne-on-OneAfternoonNetworkingSessionswithStartupsTheFungGlobalRetail&Technologyteammetwithfourstartupsatthesummitin“speeddating”sessionsthatwereheldintheafternoon.Wemetwithleadersfromaninvestmentfund,amarketplaceformodestfashion,astartupthatcreatesfootwear-sizingsolutionsandalogisticssolutionsprovider.

JumpspeedVenturesisthefirstventurefundbuilttocapitalizeontheJerusalemstartupscene.From2012to2016,thenumberofnewstartupsinitiatedinJerusalemgrewby400%,andJumpspeedhasbecomethego-toinvestorforearly-stagestartupsinthecity.Jumpspeed’sfounder,BenWiener,establishedthefundinJanuary2014,andsinceinception,thefundhasbeenabletoidentifysomeofthebestJerusalemsoftwarestartupsattheearlieststages.Wienersayshehasestablisheda“sweetspot”ofcriteriathatallofhisinvestmentsmustmeet.

Jumpspeedisahybridventurecapitalfundandventurebuildermicro-VCfund.Overthepastthreeyears,ithasinvestedin11startups.MostofJumpspeed’sportfoliocompanieshavegoneontoraisemoneyfromotherinvestorsathighervaluationsandhavebroughttheirproductstomarket;onecompany,Breezometer,wasnamedbytheWhiteHouse’sGlobalEntrepreneurshipWeekprogramas“MostPromisingStartup”in2014.Wienerisindiscussionswithinvestorsabouthisnextfund.Thefocuswillcontinuetobeonearly-stagestartupsinJerusalem.

ModLiisamarketplaceformodest,modernwomen.Themarketplacewascreatedmorethan15monthsagoandisthego-betweenfor100differentboutiquesworldwide.ModLibelievesthatmodestycanbedefinedinmanyways,whichallowsittocatertowomenofdifferentlifestylesandreligions.Today,thecompanysellshundredsofdifferentmodestitems.Productsincludeformalandcasualdresses,shirtsandskirts,aswellasheadcoveringsandaccessories.Thecompanysellsitemsrangingfrompreteentoadultstyles,andinsizessmalltoplus-size.ModLisaysthat90%ofitssalesaremadeintheUS.Thewebsitereceivesmorethan150,000visitorseverymonth.FounderandCEONavaBrief-

BenWiener,Founder,JumpspeedVenturesSource:FungGlobalRetail&Technology

NavaBrief-Fried,Co-FounderandCEO,ModLi,andArielCohen,MarketingandBusinessDevelopment,DeloitteSource:FungGlobalRetail&Technology

8

February21,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

Friedsaidthecompanyhaslaunchedprivate-labelbrandsandthatthemarketpresentsmuchgrowthopportunity.

Invertexcreatedaretailandomnichannelsolutionthatscansthebodytoenablemoreaccuratesizing.Today,thetechnologyisbeingusedforfootwearandeyewear.Inlessthan10seconds,theInvertexappcanscanaperson’sfootandtelltheusertheexactsize/fitheorsheneeds,with95%accuracy.DavidBleicher,thecompany’sCEO,saidthatshoesizesdelineatedbydifferentcompaniescandifferbyupto1.5sizes.Hesaysthatvariationinsizingiscontributingtothe30%–40%onlineshoereturnrate,comparedwiththe8%rateforshoesthatareboughtoffline.Invertexissellingitsproductbothinstoresandonlinewithadownloadableapp.Currently,thebrandisworkingwithFamousFootwear.ItisalsoworkingwithPQEyewear,usingthetechnologyforfacialscans.ThecollaborationallowsPQtocustomizeeveryframebasedonfacesizeandshape.

Freightosisalogisticstechnologystartupthatoperatesaninternationalfreightmarketplacewhereretailerscaninstantlycompareglobalair,oceanandtruckingspotquotesfromdozensoffreightforwarders.Companiescanalsousethesitetobookandmanageshipmentsandgetlive,24/7support.TheFreightosmarketplaceislikeanExpediaforfreightpricing.Usersareabletoviewandmanagepricequotesontheirownwithouthavingtowaitforamanualpricequote,whichusuallytakesupwardsoffourdaysandtypicallydoesnotincludeanyoptions.

AFreightospricequoteSource:Freightos.com

DavidBleicher,CEO,InvertexSource:FungGlobalRetail&Technology

9

February21,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

AriLeonFruchter,HeadofBusinessDevelopment,Freightos,andZviSchreiber,CEO,FreightosSource:FungGlobalRetail&Technology

TheFreightostechnologyisalsousedforfreightpricingandroutinginternallyat90%oftheworld’slargestlogisticsproviders.Anumberoflargedistributers,includingSyscoFoodsandMarks&Spencer,alsousethecompany’ssolutions.

10

February21,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comErinSchmidtResearchAssociate

HongKong:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406London:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017FungGlobalRetailTech.com