Equity Crowdfunding Changing the world of innovation finance
AshleyDan Krongold Bennett– –GeneralManaging Partner Director OctoberFOSS session,2015 January 2015 1. Global VC over Equity Crowdfunding Equity Crowdfunding Changing2. Who we arethe and world our approach of innovation to investment finance 3. OurCrowd’s Portfolio Snapshot
4. The Opportunity
5.DanOurCrowd Bennett Team– Managing Director FOSS session, January 2015 Market Disruption: Crowdsourcing in Finance
• 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
Source: Massolution Crowdfunding Industry Overview 2013 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”
3 Reward-based crowdfunding: Where is the Reward? The recent acquisition of Oculus raises questions
Pays $2B for company and Original crowd funders get nothing Andreesen, Spark, Matrix Partners back Oculus Rift (virtual reality headset) with $75M Series B, then Facebook acquires the company for $2B December 2013 … March 2014 After raising $2.4M from Kickstarter, Oculus Rift gets the attention of major investors
Now investors are Naturally, this plays into asking why do I the rise of equity only get a tshirt? crowdfunding platforms
4 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 5 The Story of Consumer Physics (SCiO)
Co-investors: Khosla Ventures Crowdfunded seed round on Co-founder, Sun Microsystems OurCrowd - $375k raised | 2013 GP, Kleiner Perkins Dov Moran M-Systems, acquired by SanDisk for ~$1.5B
Menahem Kaplan Global CTO, Alcatel-Lucent $5B optical business The Story of Consumer Physics (SCiO)
Product launch - $2.8M in preorders
Crowdfunded seed round - $375k raised | 2013
Launched consumer product on Kickstarter in 2014 Product launch on Kickstarter at $200 price point saw over $1.2M in pre-orders within a week. Opened follow-on via OurCrowd – raised $3.3M within two weeks Rave reviews in media: VentureBeat, CNN, Bloomberg, Forbes, BBC, Fox, Gizmag, TechCrunch Equity1. Global VC Crowdfunding/ ECF Platform – over half investments in Israel, why? Changing2. Who we arethe and world our approach of innovation to investment finance
3. OurCrowd’s Portfolio Snapshot
4. The opportunity
Dan Bennett – Managing Director 5.FOSSOurCrowd session, JanuaryTeam 2015 The largest ECF platform in the world! $220M+ 120+ 10,000+ invested countries 33 80+ members Up-rounds Companies 0 Failures in portfolio Co-investors OurCrowd - Who are we?
. 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 A hybrid of venture capital and crowdfunding
3000+ companies Researching and OurCrowd invests Open the deals per year selecting only the best its own money to the crowd “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 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
13 Selection of OurCrowd companies Key Investment Criteria 1. Great team Smart and/or serial 4. Traction entrepreneurs Round A: Early product, users, Traction Great Team customers & revenues 2. Market: Address a huge market Addressable Sponsorship Large opportunities Market 5. Sponsorship: Board, mentor, advise, smart investors Simple Value Value Proposition 3. A simple value proposition. Easily understood by us AND by “our crowd”. 6. We seek “deals” and are value-sensitive.
15 Diversification across stage
Seed round Series A-B Rounds Series C-D Rounds Idea phase R&D, early sales POC, sales & revenue Diversification across sectors
Other Optics/Semis Medtech Health 5% 2% 15% Mobile Social Media 11% 8% Software Internet 8% 12% Cleantech 5%
Consumer E-Commerce 6% Cloud/Storage 7% 3% IT Security / Fintech Communications 9% 5% Gaming 4%
17 18 $10.000
19 Equity1. Global VC Crowdfunding/ ECF Platform – over half investments in Israel, why? Changing2. Who we arethe and world our approach of innovation to investment finance
3. OurCrowd’s Portfolio Snapshot
4. The opportunity
Dan Bennett – Managing Director 5.FOSSOurCrowd session, JanuaryTeam 2015 Exoskeleton device Advanced 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
NZ / Israeli water tech impact
Mobile app that enables farmers to control water use.
Israel recycles 75% of its water, #1 in the world. By CropX– the world’s most comparison, #2, Spain, recycles just 11% of its water. affordable water “Israel should be proud of being at the forefront of green innovations” – Angel Gurria, OECD Chair
22 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, CO-INVESTORS: e.g. hotels, airlines and malls
23 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
Israel’s interdisciplinary strengths
Sight Diagnostics represents the convergence of two key Israeli strengths: life sciences/biology and machine vision/advanced algorithms
Malaria has killed millions in the past decade
SightDX’s computer vision technology reduces the time to diagnose from several hours to minutes
25 Biometric security for the army now for civilians
Identifying fraud through mouse/keyboard/touchscreen input monitoring which has 450 identifications that you are the user
26 Keeping the public safe Case study: Boston Marathon Bombing
Problem: 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. .Video synopsis software to turn hours of footage into a short clip .Advanced 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! 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. Putting your surgeon in the cockpit Surgical Rehearsal Platform: highly differentiated Israeli military tech
Applying the science of flight simulation to advanced CT/MRI imaging tech
The only FDA-approved player in its market Surgical Theater’s core technologies are powered by the military technologies pioneered by its founders, Moty Avisar and Reducing surgical errors and costs Alon Geri, with the medical help of Dr. with F-16 simulator technology Warren Selman featured on CNN here
29 Co-investing with leading angel investors
Peter Thiel Li Ka-Shing Eric Schmidt PayPal Horizon Ventures Google
Gigi Levy Ajay Shah 888 Benny Landa Silverlake Sumeru Amdocs Indigo Shah Capital Partners
30 Co-investing with leading investor groups Top-tier funds and institutional investors
31 Co-investing with leading investor groups Top-tier funds and institutional investors
32 Equity1. Global VC Crowdfunding/ ECF Platform – over half investments in Israel, why? Changing2. Who we arethe and world our approach of innovation to investment finance
3. OurCrowd’s Portfolio Snapshot
4. The opportunity
Dan Bennett – Managing Director 5.FOSSOurCrowd session, JanuaryTeam 2015 You can choose to invest in three ways
1. Cherry pick: accredit online and select individual companies
2. Portfolio Reserve: Create a diversified portfolio.
3. Corporate Partnership
You always invest alongside OurCrowd investing its OWN capital Equity1. Global VC Crowdfunding/ ECF Platform – over half investments in Israel, why? Changing2. Who we arethe and world our approach of innovation to investment finance
3. OurCrowd’s Portfolio Snapshot
4. The opportunity
Dan Bennett – Managing Director 5.FOSSOurCrowd session, JanuaryTeam 2015 OurCrowd’s Leadership Team Jon Medved Co-Founder & CEO Pini Lozowick General Partner . Washington Post: "one of Israel’s leading high tech . General Partner at Alta Berkeley venture capitalists” . Among first employees at Broadcom, Dir. . 12 exits >$100M Marketing . Co-founder, CEO of VRNG . Founder and GM of Verisense . Founder & GP Israel Seed Partners, $260M AOM . 5 exits; total value $3B
Elan Zivotofsky General Partner Investments Geoff Levy Chair of Advisory Committee . 15yrs experience in Israeli investing . Extensive experience in law, banking and investing . Managing Partner at Prelude Israel . Non-Executive Chairman of Monash Private Capital, . Former Head of Technology Banking, Lehman Specialty Fashion and Cromwell Property Group Brothers Israel and top analyst at Goldman . Non-Executive Deputy Chairman of Investec Bank (Australia) Limited
Dan Bennett MD Australia Steven Blumgart Co-Founder & Chairman . 12+ years in corporate finance and venture capital . Co-director of Glencore's aluminum division . Former Aust. General Counsel – Babcock & Brown . Senior executive, management committee at fund Glencore 1998-2012 . Structuring financial products in $13B investment house in Mayfair, London Evelyn Rubin BizDev Partner Danna H Mann Partner, Head of Investor . Sr Associate JVP Rel. . Dir BizDev at CipherIT . Global Marketing, Estee Lauder . Sr Editor, Seeking Alpha . VP BizDev, JVP Properties . Kellogg-Recanati EMBA
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