Equity Changing the world of innovation finance

AshleyDan Krongold Bennett– –GeneralManaging Partner Director OctoberFOSS session,2015 January 2015 1. Global VC over Equity Crowdfunding Changing2. Who we arethe and world our approach of innovation to finance 3. OurCrowd’s Portfolio Snapshot

4. The Opportunity

5.DanOurCrowd Bennett Team– Managing Director FOSS session, January 2015 Market Disruption: 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 

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 acquires the company for $2B December 2013 … March 2014 After raising $2.4M from , Oculus Rift gets the attention of major

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: Crowdfunded seed round on Co-founder, OurCrowd - $375k raised | 2013 GP, 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 in , 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 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 ’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

Gigi Levy Ajay Shah 888 Benny Landa Silverlake Sumeru Amdocs Indigo Shah Capital Partners

30 Co-investing with leading 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, 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

36