Israel’s global leadership in tech exits Venture Capital report

Prepared for

10-11 April 2019 Over $80 billion in tech exits since 2013

Total value ($B) and number of exits in Israel

$ 25B 90 $22.4B 80

$ 20B 70

60 $14.6B $ 15B 50 $11.6B $9.6B 40 $ 10B $9.1B $9.4B 30

$4.7B 20 $ 5B

10

– 0 2013 2014 2015 2016 2017 2018 2019YTD

Big exits in nearly each year

NAME ACQUIROR BACKERS INDUSTRY YEAR TRANSACTION

Mellanox Technologies* Bessemer Venture Partners, Dell $ 6.9B Nvidia Semiconductors 2019 End-to-end InfiniBand and Ethernet Ventures, Starboard Value ACQUISITION interconnect solutions

Frutarom International $ 7.1B Flavors & - Food 2018 Flavor and Fine Ingredients for the Food ACQUISITION and Beverage Industry Fragrances

Mobileye Intel Goldman Sachs, Morgan Stanley, $ 15.3B Transportation 2017 Vision technology for advanced driver Corporation GlenRock Israel, FIBI Holding ACQUISITION assistance systems

Giant Interactive Kaedan Capital, Caesars Interactive $ 4.4B Playtika Gaming 2016 Highly immersive social casino games Group Entertainment ACQUISITION

FUNDtech $ 1.3B D + H - Fintech 2015 Software products and services to ACQUISITION Banks

$ 900M Viber* Rakuten - Telecom 2014 Secure calls and messaging ACQUISITION

Horizons Ventures, BlueRun Ventures, Kleiner Perkins, Magma $ 1.1B Waze* Google Transportation 2013 Social navigation app Venture Partners, Qualcomm ACQUISITION Ventures

Source: Dealroom.co. Includes companies with HQ in the United States, but are Israeli founded. 2 * Has HQ outside of Israel Outperforming even the U.S. by exit value per capita

Total value ($B) of tech exits (2013-2018)

USA $1.7T

United Kingdom $185B

Germany $125B

Israel $81B

France $55B

Sweden $52B

Netherlands $37B

Total value ($B) of tech exits (2013-2018) per capita (2018)

Israel $9,356

USA $5,812

Sweden $5,240

United Kingdom $2,807

Netherlands $2,176

Germany $1,507

France $815

3 Selected recent big exits

NAME ACQUIROR BACKERS INDUSTRY DATE TRANSACTION

Goldman Sachs, Morgan Mobileye Intel $ 15.3B Stanley, GlenRock Israel, Transportation Aug 2017 Vision technology for advanced driver Corporation ACQUISITION assistance systems FIBI Holding

Frutarom International $ 7.1B Flavors & - Food May 2018 Flavor and Fine Ingredients for the Food ACQUISITION and Beverage Industry Fragrances

Mellanox Technologies* Bessemer Venture Partners, $ 6.9B Nvidia Dell Ventures, Starboard Semiconductors Mar 2019 End-to-end InfiniBand and Ethernet ACQUISITION interconnect solutions Value

$ 3.4B KLA Tencor - Semiconductors Mar 2018 Automated Optical Inspection Systems ACQUISITION

$ 3.2B SodaStream PepsiCo Aggregate Media Food Aug 2018 Home-made sparkling water ACQUISITION

Venrock, Accel Partners, $ 2.1B Imperva* Thoma Bravo Security Oct 2018 Provides cyber security solutions Greylock Partners … BUYOUT

Netafim Permira, HSBC, Israel $ 1.5B Mexichem Food Feb 2018 Smart Drip and Micro-Irrigation Discount Bank … BUYOUT Solutions

$ 1.3B Mazor Robotics Medtronic IHCV, Medtronic Health, Robotics Sep 2018 Highly accurate spine surgery robotics ACQUISITION

NeuroDerm Mitsubishi $ 1.1B Robert Taub, The Elias Group Health Jul 2017 Treatments for central nervous system Tanabe Pharma ACQUISITION disorders

$ 1.0B SynaMedia (formerly NDS)* Permira Cisco Media Oct 2018 Shaping the Future of Video BUYOUT

Datorama* Innovation Endeavors, Cedar $ 800M Salesforce Fund, Marker LLC, Lightspeed Marketing Jul 2018 Datorama is AI-powered marketing ACQUISITION intelligence Venture Partners

$ 684M Leumi Card Warburg Pincus Azrieli Group, Fintech Jul 2018 Israeli credit card issuer BUYOUT

$ 680 Otto* Uber - Transportation 2016 Self-driving trucks ACQUISITION

$ 500M Plarium Aristocrat Leisure - Gaming Aug 2017 Game-development company ACQUISITION

IMI Systems $ 495M - Security Jun 2018 Development of comprehensive ACQUISITION combat-proven solutions

Magma Venture Partners, Argus Cyber Security Vertex Ventures, Motus $ 450M Continental AG Security Nov 2017 Protects connected cars and commercial Ventures, Zohar Zisapel, ACQUISITION vehicles OurCrowd

Benchmark, First Round Gigya* Capital, Mayfield Fund, DAG Enterprise $ 314M SAP Sep 2017 Customer identity management Ventures, Advance software ACQUISITION platform Publications

Avgol Indorama $ 314M - Textiles May 2018 Manufacturing lightweight nonwoven Ventures ACQUISITION fabrics

Source: Dealroom.co. Includes companies with HQ in the United States, but are Israeli founded. 4 * has HQ outside of Israel Selected recent big exits (cont’d)

NAME ACQUIROR BACKERS INDUSTRY DATE TRANSACTION

Bessemer Venture Partners, $ 300M Dynamic Yield* McDonald’s Innovation Endeavors, Auren Marketing Mar 2019 Customer engagement platform Hoffman … ACQUISITION

EPD Solutions € 250M Philips - Health Jun 2018 Electromagnetic cardiac imaging and ACQUISITION navigation systems

$ 250M Sygnia Temasek - Security Oct 2018 Cyber technology and services ACQUISITION

Magma Venture Partners, $ 250M CloudEndure Amazon Infosys, Vmware, Mitsui & Security Jan 2019 Cloud migration and data recovery Co… ACQUISITION

OrthoSpace TriVentures, Smith & $ 220M Stryker Nephew, HealthpointCapital, Health Mar 2019 Develops simple-to-implant ACQUISITION biodegradable balloon systems Johnson & Johnson United Square 1 Bank, OrbiMed, $ 216M SteadyMed Therapeutics Therapeutics/Uni Health Apr 2018 Deerfield, Adage Capital Platform for delivering injectable drugs ther ACQUISITION

$ 200M Luminate Security Symantec Aleph Security Feb 2019 Enterprise security software ACQUISITION

Viola Ventures, Vertex Ventures, Globespan Capital Enterprise $ 200M Perfecto Mobile Perforce Software Oct 2018 Mobile application testing platform Partners, FTV Capital software ACQUISITION …

Target Global, Empire Angels, $ 200M Juno* Gett (GetTaxi) Transportation Apr 2017 Platform for ride-sharing Daniel Eskapa… ACQUISITION

Horizons Ventures, Corephotonics Samsung $ 155M BetaAngels, Magma Venture IoT Jan 2019 Dual camera technologies for mobile Electronics ACQUISITION devices Partners

€ 135M Ten Bis Takeaway.com TA Associates Food Jul 2018 Food delivery platform ACQUISITION

Pointer Telocation Systems $ 140M I.D. Systems - Automotive Mar 2019 Streamlined security and fleet ACQUISITION management solutions

$ 228M Yad2 Axel Springer - Media 2014 Israeli classified site ACQUISITION

Source: Dealroom.co. Certain companies have HQ in the United States, but are Israeli founded. 5 * has HQ outside of Israel The next wave: venture capital investment in Israeli startups increasing significantly

Venture capital investment ($ billions) Number of investment rounds over $2 million (1)

Startups with HQ in Israel ($B) Startups with HQ in Israel ($B) US/UK based, Israeli founded startups ($B) US/UK based, Israeli founded startups ($B)

$ 7.0B 400 (Q1 annualized) (Q1 annualized)

350 128 $ 6.0B $ 5.8B 84 84 126 103 $ 5.0B $ 1.8B 300 $ 5.0B $ 4.6B $ 2.2B 250 111 $ 4.0B 244 $ 3.5B $ 2.3B 226 $ 2.3B 200 208 197 $ 3.0B $ 2.7B 178 $ 1.6B 150 $ 4.4B $ 2.0B $ 1.1B $ 3.6B 100 125 $ 2.7B $ 2.3B $ 1.0B $ 1.9B $ 1.6B 50

– – 2014 2015 2016 2017 2018 2019E 2014 2015 2016 2017 2018 2019E

NOTABLE ROUNDS INVESTORS INDUSTRY DATE ROUND VALUATION

$ 300M Landa Digital Printing Altana AG, SKion GmbH Media Jun 2018 $ 1.8B Digital tech for packaging and publishing GROWTH EQUITY

Insight Ventures, Vintage Investment Enterprise $ 165M JFrog Oct 2018 $ 1.0B Binary repository management solution Partners, Sapphire Ventures … software SERIES D

Shenzhen Capital Group, Phoenix Transportatio $ 132M Innoviz Technologies Holdings, New Alliance Capital, Harel Mar 2019 $ 575M n SERIES C Solid-State LiDAR & Perception Software Group, China Merchants Capital

Enterprise $ 118M Orbs - Mar 2018 - Blockchain Infrastructure as a Service software EARLY VC

Bessemer Venture Partners, Pitango Enterprise $ 110M Drivenets Feb 2019 $ 600M Next generation networks Venture Capital software SERIES A

Battery Ventures, Bessemer Venture Enterprise $ 75M Habana Nov 2018 $ 500M AI chip developer Partners, Intel Capital, WRV Capital software SERIES B

Horizons Ventures, OurCrowd, Social $ 70M MeMed Diagnostics Capital, Foxconn Technology Group Health Sep 2018 - SERIES C Developing breakthrough diagnostic …

Edwards Lifesciences , Aperture Ventures Partners, TriVentures , BRM $ 70M V-Wave Health Apr 2018 - Percutaneous implantable devices Capital SERIES C …

Semiconduct € 63M Valens Semiconductor Linse Capital, Oppenheimer & Co Nov 2018 - Provides semiconductor products ors GROWTH EQUITY

Enterprise € 60M Lightricks Insight Venture Partners, ClalTech Nov 2018 - Developing visual editing apps software LATE VC

Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. 1. Only rounds over $2 million are counted because small rounds are reported with delay, making it 6 difficult to compare 2018-2017 like-for like. Explore the Israeli Tech Ecosystem online: https://israel.dealroom.co

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5,875

3,306

2,355

2,250

Number of European VC rounds tracked in 2017

8