IVC-MEITAR 2019 ISRAELI TECH EXITS REPORT · §In 2019, 4 companies completed their IPO in the US (Fiverr, Tufin, Inmodeand 89bio), raising an aggregate of $393M; compared to 5 Israeli

IVC-MEITAR2019ISRAELITECHEXITSREPORT

ADECADEOFEXITSADECADEOFGROWTH

2

EXITS2010-2019

§ Thevalueofexitshasgrownyearoveryearthroughoutthedecade.§ Thetotalnumberofdealsthroughoutthedecadewas1,210withatotalexitvalueof$111.29billion.§ Whencomparing2010to2019weseeanincreaseof50%inthenumberofexitsandover800%intheexitvalue.

$2,631$6,059 $6,164 $6,756 $8,451 $8,291 $9,904 $8,384

$12,613$14,841

$5,000

$15,300

$6,900

89

115104 108

131 134128

141

122

138

-

20

40

60

80

100

120

140

160

$-

$5,000

$10,000

$15,000

$20,000

$25,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Exits<$5B Exits>$5B #ofDealsSource:IVC-Meitar ExitsReport2019

3

TOPEXITSOFPUBLICCOMPANIES2010-2019

AcquiredbyKLA-Tencor for$3.4billion

AcquiredbyThomaBravofor$2.1billion

Acquired*byNVIDIAfor$6.9billionAcquiredbyIntelCorp.for

$15.3billion

*Subjecttoclosing.

AcquiredbyMedtronicfor$1.6billion

2010 2011 2012 2013 2014

2015 2016 2017 2018 2019

AcquiredbyMellanoxfor$218million

AcquiredbyDGInc.for$517million

AcquiredbyCSRPlcfor$484million

AcquiredbyNCRfor$800million

AcquiredbyCovidienfor$310million

AcquiredbyCovidienfor$970million

AcquiredbyOPKOHealthfor$480million

AcquiredbyNordicCapital(Buyout)for$374million

AcquiredbyXIO(Buyout)for

$510million

AcquiredbyMellanoxfor$811million

AcquiredbySESfor$242million

AcquiredbyMitsubishiTanabePharmafor$1.1billion

AcquiredbyNuveifor$889million

Source:IVC-Meitar ExitsReport2019

4

TOPEXITSOFPRIVATECOMPANIES2010-2019

*Subjecttoclosing.

2010 2011 2012 2013 2014

2015 2016 2017 2018 2019

AcquiredbyCiscofor$5billion

AcquiredbyPMC-SierraInc.for

$240million

Acquiredby3MCo.for$230million

AcquiredbyApplefor$390million

AcquiredbyGTCRfor$388million

AcquiredbyApax Partners(Buyout)for$1billion

AcquiredbyGooglefor$1.196billion

AcquiredbyIBMCorp.for$650million

IPO$1.022billion

AcquiredbyRakutenfor$900million

AcquiredbyIntelCorp.for$2billionAcquiredbyGiantInteractive

Group for$4.4billion AcquiredbySalesforcefor

$1.35billion

AcquiredbyD+Hfor$1.25billion

AcquiredbyProQuestfor$500million

AcquiredbySiris Capital(Buyout)for$643million

AcquiredbyEmersonElectricfor$510million

AcquiredbyAristocratLeisureLimitedfor

$500million

AcquiredbyPermira for$1billion

AcquiredbySalesforcefor$850million

AcquiredbyBaringPrivateEquity(Buyout)for

$1.2billion


5

TOPACQUIRINGCOMPANIES2010- 2019

12companiesfor

$1.77billion

10companiesfor

$17.72billion

9companiesfor

$953.5million

9companiesfor

$202.5million

8companiesfor

$3.42billion

4companiesfor

$6.088billion

6companiesfor

$1.455billion

6companiesfor

$2.286billion

6companiesfor

$907million

7companiesfor

$834million

7companiesfor

$725.9million

7companiesfor

$445million

5companiesfor

$359million

4companiesfor

$566million

4companiesfor

$625million

4companiesfor

$302million

3companiesfor

$615million


6

ExitsbyDealSize2010-2019PrivateCompanies,ExitValueover$20million

$1,067

$904

$701

$833

$998

$1,812

$1,084

$857

$895

$1,144$1,137

$3,584$2,725 $2,571

$3,356$2,897

$1,782$4,207

$1,927

$4,995$1,434 $1,620

$1,592 $510

$1,454

$500

$850

$2,009

$1,000 $1,196$1,022

$2,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Exitsperyearbydealvalue($m)

$20m-$100m $100m-$500m $500m-$1000m >$1000m

21 2215

20 22

37

23 19 2129

6

18

1111

19

14

7 17 13

22

22

2

1

21 1

3

11

1

1

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Numberofexitsperyear

$20m-$100m $100m-$500m $500m-$1000m >$1000m

§ 2019isarecordhighyear:§ 55exitsofover$20millionwithatotalvalueof$10.15billion;and§ 26exitsofover$100millionwithatotalvalueof$9billion.


7


VC-backedVs.Non-VC-backeddealsPrivateCompanies,ExitValueover$20million

174

93

81

211

141

70

Total

VC-backed

Non-VC-backed

Totalnumberofdealsperperiod

2015-2019 2010-2014

$25,740

$13,083

$12,657

$28,617

$18,021

$10,595

Total

VC-backed

Non-VC-backed

Totaldealvalue($m)perperiod

2015-2019 2010-2014

§ ThenumberandvalueofexitsofVC-backedcompanieshasincreasedin2015-2019comparedto2010-2014,whileshowingadecreasefornon-VCbackedcompanies.

§ The total number of deals during 2015-2019 of VC-backedcompanies is 141, compared to 93 in 2010-2014, an increaseof 52%; Exits of non-VC-backed companies decreased by 14%for these periods.

§ The aggregate exit value during 2015-2019 of VC-backedcompanies is $18 billion, compared to $13 billion in 2010-2014, an increase of 38%; the aggregate exit value of non-VC-backed deals for these periods decreased by 16%.

Source:IVC-Meitar ExitsReport2019Source:IVC-Meitar ExitsReport2019

8

2019EXITS

9

KeyFactsandInsights*

§The total value of exits (IPOs, M&A and Buyouts) in 2019 reached $21.7 billion with 138 deals, of which the acquisition ofMellanox by Nvidia* accounted for $6.9 billion.

§The total value of exits of up to $5 billion in 2019 was the highest ever, with $14.84 billion in 2019, compared to $12.61billion in 2018. More specifically, the exit value of private companies dramatically increased in 2019 to $10.33 billion,compared to $3.83 in 2018.

§Exits of VC-backed companies increased significantly in 2019 to $7.12 billion, compared to $2.75 billion in 2018. Togetherwith a continued trend and increased scope of secondary sales (which we estimate at approximately $1 billion in 2019), asan additional path to liquidity, 2019 represented a year of meaningful liquidity to VC-backed companies.

§The number of exits in 2019 was 138, compared to 122 in 2018. Of the total exits, the number of M&A deals was 122 in2019, compared to 106 in 2018. The number of exits of private companies in the range of $100 million to $1 billion was arecord high, with 25 deals in 2019, compared to 14 in 2018; and we see a continued decrease in the number of dealsunder $20 million, from 70 in 2018 to 66 in 2019. With the increase in the exit value of private technology companies andthe stable number of deals, we continue to see an increase in the average value per deal.

* Subject to closing.

# In private to private deals, the value is only based on cash consideration exchanged in the transaction, due to lack of information regarding the value of private equity consideration.

# Deal numbers and value may vary across our annual reports due to continuous updates of historical numbers in the IVC data base.

10

KeyFactsandInsights

§There is a continued increase in the total amount of investments of more than $30 million with 68 investments and atotal amount of $5.147 billion in 2019, compared to 64 investments in the total $3.354 billion in 2018. More specifically,this increase is viewed in companies raising more than $100 million. We chose investments of $30 million and above aswe assume such investment represents companies valued at at least $100 million. These companies represent thepipeline of future exits at high valuations, and the challenge is the expectation that the exits of these companies will be inthe range of $500 million and above. Even with the increase in the number of exits of private companies of over $100million (26 in 2019), there is a still a significant gap when comparing it to the number of companies which we assume arevalued at at least $100 million at the time of investment (68 in 2019).

§US acquirors represented 80% of the value of M&A transactions, similar to 2018. There is stability in the value andnumber of deals of Israeli buy-side M&A deals, which continues to remain modest with 6% of the total exit value.

§ In 2019 we evidenced the largest ever Israeli private-to-private merger (Taboola-Outbrain merger).

§ In 2019 there were 4 IPOs in the US. Despite the growing number of growth companies, IPO on a major US stockexchange still does not represent a common path to liquidity.

11

$7,041 $5,504 $7,284$4,513

$10,291$1,250 $4,400 $1,100 $8,100

$4,550

$15,300 $6,900134

128

141

122

138

110

115

120

125

130

135

140

145

$-

$5,000

$10,000

$15,000

$20,000

$25,000

2015 2016 2017 2018 2019

Exits<$1B Exits$1B-$5B Exits>$5B #ofDeals

Exits2015–2019

Exits2015-2019(US$M)

§Total exit value in 2019 reached $21.7 billion.§There were 4 deals of over $1 billion, with the acquisitions of Mellanox by Nvidia* for $6.9 billion, Habana Labs by IntelCorp. for $2 billion, Click Software by Salesforce for $1.35 billion and Lumenis by Baring Private Equity for $1.2 billion.

§The total value of exits of up to $1 billion was $10.29 billion, a record high.

Source:IVC-Meitar ExitsReport2019* Subject to closing.

$9,904B$8,291B $23,684B $12,613B $21,741B

12

$7,041 $5,504 $7,284 $4,513 $10,291

$1,250$4,400

$1,100

$8,100

$4,550

134128

140122

137

0

20

40

60

80

100

120

140

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

2015 2016 2017 2018 2019

Exits<$1B Exits$1B-$B #ofDeals

Exits2015–2019ExitValueofupto$5Billion

Exits2015-2019(US$M)


§ The methodology used in this report (and since the 2018 annual report) continues to refer to "mega-deals" astransactions valued at $5 billion or more.

§ This methodology results in the exclusion of the Mellanox transaction in 2019.

13

*Excludingpubliccompanies,exitsof$5Bandaboveanddivestitures.

$1,646$716

$1,754 $1,080

$3,210

$2,848

$2,424

$3,288

$2,755

$7,124

7367 66

53 55

4548 49

52

66

0

10

20

30

40

50

60

70

80

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

2015 2016 2017 2018 2019

Value- NonVC-Backed($m) Value- VC-Backed($m)#ofExits- NonVC-Backed #ofExits- VC-Backed

Exits2015-2019:VC-Backedvs.Non-VC-BackedPrivateCompanies

§ The exit value of VC-backed companiesincreased dramatically to $7.124 billion in2019 compared to $2.755 billion in 2018.

§ Number of deals:• There is a continuous trend of increase inthe number of VC backed exits.

• The number of non-VC backed exitsremained stable compared to 2018, aftera significant decrease of 20% in 2018compared to 2017


14

ExitValue2015-2019(US$M) NumberofExits2015-2019

Transactions:NumberofIPOs,M&AsandBuyouts2015-2019

*Excludingexitsof$5Bandabove.

§The aggregate number of M&A transactions increased from 106 in 2018 to 121 in 2019.§The aggregate value of M&A transactions in 2019 was $12.4 billion, a record high value.§The aggregate number of Buyouts and IPOs remained consistent as in previous years.

1,158 1,110 1,5973,361

2,014609 26 440

250423

6,525 8,768 6,347

9,002 12,404

2015 2016 2017 2018 2019

Buyout IPO M&A

5 4 10 8 78 6 13 8 9

121 118117

106121

2015 2016 2017 2018 2019

Buyout IPO M&ASource:IVC-Meitar ExitsReport2019Source:IVC-Meitar ExitsReport2019

15

Transactions:NumberofIPOsperCountry2015-2019

IPOproceedsperCountryofStockExchange(US$M)NumberofIPOsperCountryofStockExchange

§ In2019,4companiescompletedtheirIPOintheUS(Fiverr,Tufin,Inmode and89bio),raisinganaggregateof$393M;comparedto5IsraelilifesciencecompaniesthatcompletedtheirIPOintheUSin2018,raisinganaggregateamountof$238M.

§ CapitalmarketsarenotyetasignificantsourceofliquidityforinvestorsinIsraelitechcompanies.

4 53 2

1

21

3

1

1

2

1

1

6

2

54

2015 2016 2017 2018 2019

Australia Canada IsraelSweden UnitedKingdom UnitedStates

$16 $25 $12 $12$1 $5$4

$165

$39 $14$48$6 $20

$561

$191$238

$393

2015 2016 2017 2018 2019

Australia Canada IsraelSweden UnitedKingdom UnitedStates


16

*Excludingpubliccompanies,exitsof$1Bandaboveanddivestitures.**Inprivatetoprivatedeals,thevalueisonlybasedoncashconsiderationexchangedinthetransaction,withoutattributingvaluetoequityconsideration.Accordingly,theTaboola-Outbrain dealisconsideredas$250Mbeingthecashvalue.

20

12 1014

21

17

118

7

8

11

410

11

16

2

36

2

6

1 1

350

30

35 35

54

0

10

20

30

40

50

60

0

10

20

30

40

50

60

2015 2016 2017 2018 2019

$20m-$50m $50m-$100m $100m-$250m

$250m-$500m $500m-$1000m Total

NumberofExitsbyDealSizeabove$20M

ExitsbyDealSize2015-2019PrivateCompanies,ExitValueBetween$20Millionand$1Billion

§ In 2019 there was an increase in the number of deals in the rangeof $100M to $1B - from 14 deals in 2018, to 25 deals in 2019**.

§We see increasing amounts invested in growth companies. As such,the return on capital invested would only be achieved if therewould also be a significant increase in the number of exits valuedat $250M and above. Such dynamics are also expected to result inan increase in the number and value of secondary sales in thesecompanies, providing additional path to liquidity to early investors.

22

713 10 12

2823 22 25

43

2015 2016 2017 2018 2019

NonVC-Backed VCBacked

NumberofExitsbyDealSizeabove$20M:VCBackedvs.Non-VCBacked



17

Exitsunder$20M:VC-BackedvsNon-VCBacked

5160

5343 43

17

2527

27 23

2015 2016 2017 2018 2019

NonVC-Backed VCBacked

VC-Backedvs.Non-VC-Backed2015-2019PrivateCompaniesExitsunder$20M

§We see a continued decline in the number of Exit dealsvalued at $20 million or less.

§We view this as a positive trend given the overall increasein the number and value of exits.


18

TotalInvestment2015-2019

3,7754,534 4,857

6,353

8,296

436 455 461532 522

0

100

200

300

400

500

600

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2015 2016 2017 2018 2019

CapitalRaised$m #ofDeals

§Total investment amount increased from $6.353 billion in 2018 to $8.296 billion in 2019.§There is an increase in the investment amount per deal, given the decrease in the number of investments from532 in 2018 to 522 in 2019.


19

247 239 234

274

237

2136 40

64 68

0

50

100

150

200

250

300

2015 2016 2017 2018 2019

#ofDeals<$5m #ofDeals>$30m

Investmentsoflessthan$5Mvs.investmentsofmorethan$30M2015-2019

§ A decrease in the number of investments of less than $5 million; and§ An increase over the years of investment of more than $30 million


20

Investmentsofmorethan$30Min2015-2019

1,2931,879 2,238

3,354

5,14721

3640

6468

-

10

20

30

40

50

60

70

80

-

1,000

2,000

3,000

4,000

5,000

6,000

2015 2016 2017 2018 2019

CapitalRaised>30m$ #ofDeals>30m$

§ Total amount of investment of more than $30 million increased significantly from $3.354 billion in 2018 to $5.147billion in 2019. With the relatively stable number of investments, this represents a significant increase in the averageinvestment amount per deal.

§ We chose investments of $30 million and above as we assume such investment represents companies valued at atleast $100 million. These companies are the pipeline of future exit transactions at high valuations, and the challenge isthe expectation that the exits of these companies will be in the range of $500 million and above. Even with theincrease in the number of exits valued over $100 million (26 in 2019), there is a still a significant gap when comparingto the number of companies which we assume are valued at at least $100 million at the time of investment (68 in2019).


21

The ratio is calculated by dividing the total exit value (per year) by the total capital raised by all companies which have completed exit transactions in each year.

Ratio(PrivateCompanies):ExitValue/AmountInvested

*Duetolackofinformationontheamountinvestedinnon-VC-backedcompaniespriortotheexitfunding,theRatiocannotbecalculatedfornon-VC-backedcompanies.


4.22

3.48 3.463.16

4.64

3.16 3.26 3.21 3.12

3.89

2.00

2.50

3.00

3.50

4.00

4.50

5.00

2015 2016 2017 2018 2019

AverageExitRatio*2015-2019

AverageExitRatio AverageVC-BackedExitRatio


22

No.ofDealsperTimeToExit:VCBackedvs.Non-VCBackedExits AverageTimeToExit:VCBackedvs.Non-VCBackedExits

TimeToExit(PrivateCompanies)- VC-Backedvs.Non-VC-BackedExits


§ In 2019 there are 48 exits of VC-backed companies with Time to Exit of up 10 years. This is a record high number,compared to a stable number of 35 exits per year in this range in 2015 through 2018.

§ The number of exits of non-VC-backed companies with the same Time to Exit has decreased significantly from 48 in2017 to 30 in 2018 and 35 in 2019.

8.908.03 8.08

10.258.81

9.928.34 8.39

12.60

9.91

7.24 7.58 7.65 7.85 7.89

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

2015 2016 2017 2018 2019

AverageTTE

AverageTTE(NonVCBackedExit)

AverageTTE(VCBackedExit)

2413

36

13

34

1320 14 20 18

24

22

13

21

14

23 10 22 1530

8

4

6

12

6

64

12 11

136

6

3

1

3

47

3 1

362 3

35

12

113

1

3

3 2

44 3

4 4

1

No Yes No Yes No Yes No Yes No Yes

2015 2016 2017 2018 2019

< 5 5-10 10-15 15-20 20-25 25-30 >30


23

M&As:Foreignvs.IsraeliAcquisitions

§ The number of foreign buy-side M&A deals increasedfrom 74 in 2018 to 90 in 2019.

§ There is stability in the value and number of deals ofIsraeli buy-side M&A deals.

§ In 2019 we evidenced the largest ever Israeli private-to-private merger (Taboola-Outbrain merger).

*Inprivatetoprivatedeals,thevalueisonlybasedoncashconsiderationexchangedinthetransaction,withoutattributingvaluetoequityconsideration.Accordingly,theTaboola-Outbraindealisconsideredas$250Mbeingthecashvalue.**Excludingexitsof$5Bandabove.

$5,955 $7,728 $5,810 $8,443 $11,672

$570

$1,040

$537

$559

$73279 78 76 74

90

42 40 41

32 31

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

0

10

20

30

40

50

60

70

80

90

100

2015 2016 2017 2018 2019

ValueofIsraelibuysideM&Adeal(m$)ValueofforeignbuysideM&Adeal(m$)#offoreignbuysideM&Adeal#ofIsraelibuysideM&Adeal


24

2 2 2 3 31 4 5 2 31 1 7 1 4

42 4041

32 31

9 51

3 4

52 53 4851

64

14 13 1314

12

2015 2016 2017 2018 2019

Canada China GermanyIsrael UnitedKingdom UnitedStatesOther

M&As:AcquirersbyCountryofOrigin

#ofdealsperacquirercountryoforigin Dealvalueperacquirercountryoforigin


§ In terms of the number of deals, we still see mostly US and Israeli acquirers as dominant.§ In terms of the value of deals, Chinese acquirers remain insignificant players (with the exception of Playtika in 2016 andLumenis in 2019).

§Even though we see continuous stability in number of US acquirers, the total deal value during 2018 and 2019 of the USacquirers doubled in comparison to the deal value during 2015-2017.

21%

1%

8%

2%

51%

4%

1%

1%

1%

14%

1%

9%

12%

8%

6%

6%

4%

1%

1%

53%

29%

41%

81%

80%

10%

6%

31%

11%

3%

0% 20% 40% 60% 80% 100%

2015

2016

2017

2018

2019

Canada China Germany Israel

UnitedKingdom UnitedStates Other


25

TopExitsin2019

Acquired*byNVIDIAfor$6.9billion

AcquiredbyNuveifor$889million

AcquiredbyDiscoverOrg for$800million

Acquiredbythefounders&Novalpina Capital forbuyout

AcquiredbyPaloAltoNetworksfor

$560million

*Subjecttoclosing

AcquiredbyQlikTech for$560million

AcquiredbySalesforcefor$1.35billion

#Inprivatetoprivatedeals,thevalueisonlybasedoncashconsiderationexchangedinthetransaction,withoutattributingvaluetoequityconsideration.

AcquiredbyBaringPrivateEquityfor

$1.2billion

AcquiredbyIntelCorp.for$2billion

Acquired*byRibbonCommunicationsfor$486million

AcquiredbyVeevafor$430million

Private-to-PrivateMerger#


26

SECTORSANDVERTICALS

The IVC-Online Database categorizes each company in one sector (even if it can be classified into

more than one sector, based on various aspects of their technological capabilities, target markets

and product and service application).

27

$239 $117 $184 $16 $196$673 $1,271 $720 $1,373 $1,026$1,378

$4,860

$1,397 $140 $448

$4,189

$1,618

$3,318 $4,500

$8,294$1,001

$535$2,189

$2,933

$2,344

$320$21 $551

$197

$271

$491$1,482 $25

$3,455

$2,263

2015 2016 2017 2018 2019

Cleantech CommunicationsInternet IT&EnterpriseSoftwareLifeSciences MiscellaneousTechnologiesSemiconductors

9 9 4 3 5

21 26 28 19 19

36 36 34

18 21

39 32 41

4560

15 1420

26

239 5

10

945

63

25

2015 2016 2017 2018 2019

Cleantech CommunicationsInternet IT&EnterpriseSoftwareLifeSciences MiscellaneousTechnologiesSemiconductors

ExitsbySector2015-2019

ExitsbySector2015-2019(US$M) #ofExitsbySector2015-2019


§ The number of deals in the IT and Enterprise Software sector in 2019 increased to 60 deals, the highest number since2015.

§ There was a decrease in the number of deals in the Internet sector from 34-36 in 2015-2017 to with 18-21 in 2018-2019.§ The number of deals in the Communications, Cleantech and Semiconductors sectors remains stable.


28

IT&Softwareexits2015-2019IT & Software subsectors Averagetimetoexit

Top5IT&Softwareexitsin5years

2018 2015 20182019 2019

$568 $441 $691$2,214 $501$10 $124 $112

$3,621$1,167

$2,503

$2,286$7,681

3932

41 45

60

0

10

20

30

40

50

60

70

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

2015 2016 2017 2018 2019

TotalExitsValue($M)- BuyoutTotalExitsValue($M)- IPOTotalExitsValue($M)- M&ANo.ofExits

10.67

7.59

8.20

7.76

8.15

2015

2016

2017

2018

201933

14

6411

16

79

BusinessAnalytics Design&DevelopmentToolsEnterpriseApplications EnterpriseInfrastructureMiscellaneousSoftware Security


IT&SoftwareExits2015-2019217Deals,$21.9B

29

LifeSciencesExits2015-201998Deals,$9B

Life sciences exits2015-2019Life sciences subsectors Averagetimetoexit

Top5Lifesciencesexitsin5years

2018 2017201520172019

4 28

3

12

1

47

21

Agrobiotech Bioinformatics Biologicals

Diagnostics HealthcareIT Industrial

MedicalDevices Therapeutics

$531 $400$1,248$334

$4

$80$246

$175$136

$531

$1,709$2,687

$92115 14

20

2623

0

5

10

15

20

25

30

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2015 2016 2017 2018 2019

TotalExitsValue($M)- M&ATotalExitsValue($M)- IPOTotalExitsValue($M)- BuyoutNo.ofExits

16.27

10.64

11.80

14.23

11.65

2015

2016

2017

2018

2019


30

InternetExits2015-2019145Deals,$8.22B

Internet exits2015-2019Internetsubsectors Averagetimetoexit

Top5Internetexitsin5years

20172016 2017 2015 2019

*Inprivatetoprivatedeals,thevalueisonlybasedoncashconsiderationexchangedinthetransaction,duetolackofinformationregardingthevalueofprivateequityconsideration.Accordingly,theTaboola- Outbrain dealisconsideredonlyas$250Mbeingthecashvalue.

$341$48 $4 $39$123

$1,330

$4,856

$1,017$140 $325

36 36 34

1821

0

5

10

15

20

25

30

35

40

0

1000

2000

3000

4000

5000

6000

2015 2016 2017 2018 2019

TotalExitsValue($M)- M&ATotalExitsValue($M)- IPOTotalExitsValue($M)- BuyoutNo.ofExits

10 4

23

2

29

1

49

13

6 8

ContentDeliveryPlatforms ContentManagement

e-Commerce E-Learning

InternetApplications InternetInfrastructure

OnlineAdvertising OnlineEntertainment

SearchEngines SocialNetworks

5.14

5.36

6.21

6.56

7.14

2015

2016

2017

2018

2019


31

VERTICALS

32

ArtificialIntelligenceexits ArtificialIntelligenceAveragetimetoexit

Top3ArtificialIntelligenceexitsin5years ArtificialIntelligenceExitMultiple

2018 2019

*Excludingexitsof$5Bandabove(Mobileye)

.

$349 $192 $309 $1,172

$4,11910 1218 16

30

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

05101520253035

2015 2016 2017 2018 2019

ValueofDeals(US$M) #ofDeals10.60

4.92

6.00

9.50

5.90

2015

2016

2017

2018

2019

20194.39

5.16

2.11

6.86 6.56

0

2

4

6

8

2015 2016 2017 2018 2019

AverageExitRatio


ArtificialIntelligence2015-2019

33

CyberSecurityexits CyberSecurityAveragetimetoexit

Top3CyberSecurityexitsin5years CyberSecurityExitMultiple

201920192018

$1,060 $498 $1,355 $2,807 $3,451

18

13 14 13

23

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2015 2016 2017 2018 20190

5

10

15

20

25

ValueofDeals(US$M) #ofDeals9.17

6.54

7.29

6.77

6.74

2015

2016

2017

2018

2019

5.80 4.98 3.89

15.40

8.40

0

5

10

15

20

2015 2016 2017 2018 2019

AverageExitRatio


CyberSecurity2015-2019

34

FintechExits FintechAveragetimetoexit

Top3Fintechexitsin5years FintechExitMultiple

20192015 2015

10.38

5.75

8.17

6.70

11.79

2015

2016

2017

2018

2019

27.92

1.03 0.12 2.099.20

051015202530

2015 2016 2017 2018 2019

AverageExitRatio

$1,069 $164 $6 $52 $2,031

13

86

10

14

0

2

4

6

8

10

12

14

16

0

500

1,000

1,500

2,000

2,500

2015 2016 2017 2018 2019

ValueofDeals(US$M) #ofDeals


Fintech2015-2019

35

ABOUTTHISREPORT

ã All Rights Reserved. Copyright of IVC Research Center Ltd. 2020

This report contains information derived from the IVC-Online Database.

Deal numbers and values may vary across our annual reports due to continuous updates of historical numbers in the IVC data base.

Inprivatetoprivatedeals,thevalueisonlybasedoncashconsiderationexchangedinthetransaction,duetolackofinformationregardingthevalueofprivateequityconsideration.Accordingly,theTaboola- Outbraindealisconsideredonlyas$250Mbeingthecashvalue.

ThereportsummarizesexitsofIsraeliandIsrael-relatedhigh-techcompaniesinM&Adealsandinitialpublicofferings,aswell asbuyoutsperformedbyprivateequityandfinancialinvestorsinIsraeliandIsrael-relatedhigh-techcompaniesbetween2014-2019.

VC-backed deals referred to in this report represent exit deals where at least one venture capital fund was involved as a pre-exit investor.

The report also references M&A deals where Israeli high-tech companies acted as the acquiring party.

36

ABOUTMEITAR

Meitar is Israel’s leading international law firm and the leader in the technology sector. The firm's tech practice has over 135 seasoned professionals whospecialize in representing technology companies and who work with other firm professionals from various practice areas, such as tax, intellectual propertyand labor law, and dozens of attorneys from other practice areas.

Meitar has played a significant role in the majority of the largest and most prominent transactions recorded in the Israeli technology sector, includingM&A (both on the buy side and on the sell side) and public offerings on foreign stock exchanges.

The firm is uniquely qualified to work with companies throughout their corporate “life cycle”. The firm advises clients from their initial establishmentthrough raising seed capital and their growth and through successful exits.

Alongside emerging companies, Meitar represents high growth companies, and has represented the majority of the Israeli technology companies thathave completed their initial public offerings in the US, as well as a diverse range of multinational companies from the US, China and Europe.

The firm represents most of the major Israeli and foreign venture capital funds active in the Israeli technology sector, and played an active role information of some of the most successful and well-known funds in the industry.

Meitar is unique among Israel’s largest law firms in the number of partners who have worked for major international law firms in the US and elsewhere.The firm maintains close working relationships with leading firms from around the world to provide its international and Israeli clients with the highestlevel of service and quality – in line with the finest law firms from across the globe.

37

ABOUTIVCRESEARCHCENTER

Founded in 1997, IVC is the leading data source and business information company in Israel's high-tech industry.

We help our clients understand the market, make connections and identify opportunities with access to the latest news, trends and developments.

From venture capital and private equity funds to industry leading companies and emerging startups across Israel's varied high-tech sectors, we cater to the varied business informationneeds that make up the Israeli high-tech ecosystem. We bring more than 20 years of experience of gathering and analyzing data, serving the IVC community. Our dedicated team ofindustry researchers and analysts has deep knowledge and hands-on experience working with Israel’s high-tech sector.

Our management, professional sales and marketing teams drive IVC’s commitment to excellence and client service. We enable a wide range of local and global clients, includingentrepreneurs, local and foreign investors of all types and service providers such as lawyers and accountants, to get to know the Israeli high-tech ecosystem better.(Registered Database #366723)

38

CONTACTUS

MichalSaam,DataAnalystIVCResearchCenter

[email protected] www.ivc-online.com

+972-(0)73-212-2333

LianSwirsky,HeadofMarketingandBusinessDevelopment,[email protected] l www.meitar.com+972-(0)3-610-3100

39

Documents

IVC-MEITAR 2019 ISRAELI TECH EXITS REPORT · §In 2019, 4 companies completed their IPO in the US (Fiverr, Tufin, Inmodeand 89bio), raising an aggregate of $393M; compared to 5 Israeli