Key Insights October 21, 2015 2015 Forum: High-Tech Tel Aviv Selected Speaker Quotes “ “ “ “ “ “ “ “ “ Global TechGlobal Trends Landscape IPO and Sources of Capital for an Israeli High-Tech Israeli for an of Capital Sources Company – A Viable Partner for Growth Companies for Growth Partner –AViable Private Equity Market TrendsPre-IPO There are trillions of dollars seeking to be invested but there are but there invested be to are trillionsThere seeking of dollars If you wantIf really build to ahuge company, you go public. must agreat VCs and the creates stage seed fundingThe between gap are really companies valuations may up be but these Pre-IPO We need to shift from building great products to building to great from building products great shift We to need transparency, access, valueThe in going public better includes Private equity can plug the funding gap between early stage stage early funding plug the between gap can Private equity pros –you the to public need Going is like moving sports from college High valuations are forcing VCs to be more selective than ever than valuationsHigh are forcing before. VCs more selective be to And if a storm comes up, like comes watch act astorm not to if get sick: asailor And Division, Banking Technology Global Director, Managing Metz, John Asaf Homossany, Nasdaq, Senior Managing Director EMEA, Tel Aviv IronSource, CFO, Ami, Ben Assaf York New Investors, NEXT Suisse Credit Partner, Managing Freudenstein, Alan Stockholm Nasdaq, Listings, of International Head Kostyál, Adam and IPO. and Venture Capital It is not a question of ‘if,’ is not aquestion It of ‘when’. itis aquestion Gigi Levy-Weiss, , Tel Investor, Aviv Angel Levy-Weiss, Gigi Shlomo Dovrat, Founder & Managing Partner, Carmel Ventures, Tel Ventures, Aviv Carmel Partner, &Managing Founder Dovrat, Shlomo opportunity for platforms. opportunity changing world the and how we live our lives. companies, we keep to need on dreamingcompanies, of changing world; the management committed. has be to of an overall strategy,recruiting… and part growth be but itmust Laly David, Business Development Director, OurCrowd, Jerusalem OurCrowd, Director, Development Business David, Laly Credit Suisse , San Francisco the private market is starting to dwarf the public the market. dwarf to privatethe market is starting the horizon,the waves. not the to ratchetto up your well and game prepare in advance. less then 100 qualified technology stocks to invest; the result is that is the to result invest; stocks technology 100 then qualified less Richard Sanders, Co-Head of Global Technology Team, Permira, London Team, Permira, Technology of Global Co-Head Sanders, Richard

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” Helping High-Tech Entrepreneurs Create and Preserve Wealth – Private and Investment Banking Join Forces in Israel

On October 21, 2015, Credit Suisse hosted its second annual High-Tech Forum in Tel Aviv Visit www.credit-suisse.com/ bringing together 200 selected high-tech entrepreneurs, investors and experts from Israel, hightech to learn more Russia, Eastern Europe, the UK, the Nordic countries, and the US. By joining forces about how we help high- across Private Banking and Investment Banking, Credit Suisse strives to be the number tech entrepreneurs in Israel one bank for high-tech entrepreneurs in Israel: we provide growth companies access create and preserve wealth, to the exclusive investor network of the Private Bank and, vice versa, introduce Private and to subscribe to news Banking clients to promising companies covered on the Investment Banking side. and insights for the high- tech community. The focus of this year’s Forum was on “trends in sourcing growth for Israeli high-tech companies” and was hosted in partnership with Nasdaq, and OurCrowd, a leading equity crowdfunding platform. John Metz, Managing Director of Global Technology Banking Division at Credit Suisse Investment Banking in San Francisco, opened the Forum discussing the paradox that megatrends in technology create addressable markets and larger opportunities than ever before. Nevertheless, investors increasingly face difficulties to find sufficient investable opportunities in public markets as wealth generation moves more and more to the pre-IPO stage.

Adam Kostyál, Head of International Listings at Nasdaq and based in Stockholm, shared his thoughts on key factors that companies should consider when growing a business towards a public company. In particular, he emphasized the importance of a well-diversified, more resilient revenue portfolio and illustrated this using the example of Nasdaq itself, which is now venturing into services for companies pre-IPO to address this growing demand on the back of the deep capabilities Nasdaq has built in this space.

Richard Sanders, Co-Head of the Global Technology Team at Permira in London then challenged the perception of private equity as an asset-stripping, debt-burdening, control-ridden industry and demonstrated with concrete investment cases from Permira how private equity can be a viable partner in plugging the funding gap between early-stage venture capital and the IPO.

This last point in particular was intensely debated in the subsequent panel discussion led by Philippe Cerf, Co-Head of EMEA TMT at Credit Suisse Investment Banking in London. Panelists voiced the concern that, while the Israeli high-tech sector overall is increasingly attracting attention and capital from around the world, most of it is chasing the same unicorns and a decreasing share is risking investments at earlier stages where entrepreneurs need it the most. Here new concepts such as crowdfunding platforms like OurCrowd can close an important gap.

With that in mind, the Forum reached its culmination in the Pitching Ring Award 2015 which, this year, was sponsored in partnership with OurCrowd’s seed fund OurCrowdFirst. Five innovative start-ups out of over 50 pre-selected contestants pitched in four minutes each. After an electronic vote among the audience, CodeMonkey, a software company that teaches children computer programming in a playful way and reaches kids also in less privileged areas of the world, won this year’s award.

With the Pitching Ring Award, Credit Suisse supports innovative Israeli high-tech entrepreneurs from an early stage, helps them with its global network and leading capabilities in technology banking to grow towards a mature company, and establishes close partnerships for the bank for the long term, both on the Investment Banking and the Private Banking side.

2015 High-Tech Forum: Tel Aviv 3 Welcome Note

Thomas Schornstein, Market Leader for Israel and Managing Director of Credit Suisse Private Banking in Zurich, welcomed 200 guests to the second Credit Suisse High tech Forum in Tel Aviv. In a filled-to-capacity space perched above a leafy courtyard in Tel Aviv’s historic Neve Tsedek district, Mr. Schornstein set the stage for the day’s presentations, for an attentive audience of high tech entrepreneurs, serial entrepreneur-investors, venture capitalists and private equity managers, speakers, and Credit Suisse staff who had gathered from Israel and around the world.

Mr. Schornstein’s brief remarks underscored Credit Suisse’s philosophy and commitment to engage with high tech ventures from an early stage with knowledge, experience, and financing, with a readiness to be integrally involved with deal making at each state of the startup’s lifecycle, including and IPO.

4 2015 High-Tech Forum: Tel Aviv I. Global Tech Trends and IPO Landscape

Presented by: John Metz Managing Director, Global Technology Banking Division, Credit Suisse Investment Banking, San Francisco

Mr. Metz posed the question “What is creating value in the technology landscape?” Mobility, Cloud, Social, and Big Data comprise four of the major mega trends in the technology world. An attractive growth opportunity exists if a company addresses one or more of these trends. Because these trends cross industries, geographies, and demographics, they intersect across a horizontal, not vertical landscape.

1. IPO and Private Placement Market Landscape: Investors must consider the total addressable market of a particular technology. From perhaps 1 million units in the mainframe era to 10 billion mobile device units, each new computing cycle has presented larger opportunities than the last. Some investment players are now only investing in addressable market opportunities of hundreds of millions of units. John Metz has 22 years of experience in the technology “Technology money is looking for at least 30 % growth,” said Metz. “There are trillions of dollars banking sector. He has available, but less than 100 qualified investment opportunities in the public markets.” The result, led over 30 technology he noted, is that the private market is starting to dwarf the public market. “This is creating IPO’s, advised over 100 a unicorn feeding frenzy,” he continued, “Big VC’s are now dollar cost averaging into a future billion dollars in technology equity position by investing pre-IPO. There are deep incentives to undergo a much longer , gestation period before IPO. By the time companies go public these days, they are no longer and overseen over 1 billion growth opportunities.” dollars in technology private placements. Based in San Meanwhile, we are seeing up to 6 years of revenue multiples in private companies. “Is it a Francisco, Mr. Metz focuses bubble?” posed Metz, “No, it is pure Adam Smith supply and demand economics, and will see primarily on enterprise, sustained revenue multiples longer than ever before.” As for value creation after IPO, cloud, and communications however, Metz quoted a leading Google VC investor: “You will never see a Google-like return infrastructure, security, on IPO investment again.” virtualization, networking, and storage. The impressive 2. Themes in Technology: list of companies Mr. “Mega trends like on-demand, the sharing economy, online education, and digital health are Metz has advised includes turning technology verticals into horizontals as these trends permeate the entire economy,” Cisco, HP, Dell, Palo Alto posited Metz, “While people are already accustomed to one-click digital interaction, there is now Networks, and SanDisk a shift to on-demand consumption and fractional labor.” Some figures suggest that 48 % of – whose acquisition by the labor market is already on-demand labor, with 100 new on-demand companies formed in the Western Digital, Mr. past year alone. This has enabled enormous avoidance of infrastructure expense worldwide – For Metz revealed, had been instance 56.6 hotels in that do not need to be built, because of Airbnb. announced just one hour prior to the conference. Online education, meanwhile, is “fixing a broken system.” The solution is coming in the democratization of education though online offerings like Stanford University’s “Intro to AI” course, which evolved from only 200 students in the classroom to 160,000 students online.

In Healthcare, which accounts for 20 % of the annual economic cost in the US, digital sensors and patient data analytics are correcting inefficiencies in the system and delivering 300 – 450 billion dollars in cost savings.

3. Spotlight on Security: IT transformation is made possible by distributed hardware systems and borderless IT environments. While that empowers scale and reach, it creates huge security risks, with hundreds of annual breaches exposing 1 billion records. “With these challenges,” said Metz, “come huge opportunities for emerging security companies.”

2015 High-Tech Forum: Tel Aviv 5 II. Pre-IPO Market Trends

Presented by: Adam Kostyal Head of International Listings, Nasdaq, Stockholm

1. Nasdaq is the Market for Technology Innovation Noting that most of Nasdaq’s International IPOs are coming from Israel, Mr. Kostyal began by noting that the tiny country is Nasdaq’s largest market outside of the USA. While concurring with John Metz’s assertion that there is a trend for a longer runway to IPO these days, Kostyal re-asserted the significance of the public markets and shared with the audience Nasdaq’s enhanced role in supporting the private market.

“Nasdaq is sector agnostic but tech is at the core of Nasdaq’s DNA,” said Kostyal, “60 % of new technology listings and 73 % of public technology companies are on Nasdaq. We offer better investor targeting, brand alignment, and cost efficiency for tech companies.”

Adam Kostyal has worked 2. The Road to IPO for Nasdaq for 12 years, Companies need to have predictable and visible goals before they are ready to go public. rising to Senior Vice “If you can’t get that story across and meet the goals, then don’t go public,” Kostyál cautioned. President of the Global “Moreover, don’t stand on one leg. A company’s ability to diversify its business model across Corporate Client group different segments is key to reducing the vulnerability of the public markets.” Mr. Kostyál and head of International pointed to two trends in pre-IPO companies: larger valuations and startups acquiring startups. Listings. He has rich “The number of 1 billion-dollar-plus valuations of late-stage private companies between 2013 experience in sales, to 2014 jumped from 8 to 21,” said Kostyál, “Meanwhile, with all of this capital, there were account management, more than 450 startup acquisitions in 2015, as late-stage private companies sought to absorb and business development new talent, diversify into more customer segments, and acquire new technology.” in the European region and is responsible for the 3. Nasdaq’s Role in Supporting Growth Companies Nordic exchanges and In response to the trend of staying private longer, Nasdaq has committed to support growth some 120 companies dual companies in the private stage, opening a 13,000 square foot entrepreneurial center in 2015, listed or primarily listed and offering a range of services to support private growth companies. For instance, a on Nasdaq US. SaaS-based platform for managing complex cap tables and waterfall simulation models that offer companies better control and clarity.

Mr. Kostyál says that while the private market will continue to flourish, the public exchanges will remain strong, and he encourages Israeli entrepreneurs to consider Nasdaq on their runway to IPO. Kostyál offered the reduced regulatory requirements of the JOBS act, access to US capital, higher sector valuations, lower listing fees, and a suite of corporate services as reasons Nasdaq is attractive to international companies looking to list.

6 2015 High-Tech Forum: Tel Aviv III. Private Equity – A Viable Partner for Growth Companies Presented by: Richard Sanders Co-Head of Global Technology Team, Permira, London

Mr. Sanders began by proposing that “brainpower is Israel’s most significant natural resource.” Israel has more companies per capita than any other nation on Earth and a huge cast of successful technology companies. “Why then,” asked Sanders, “are there so few global Israeli players?” He cited exits averaging less than four years, challenges attracting global management talent, and a preference for early stage venture capital investment in the country as possible reasons.

“Private equity can plug the funding gap between early-stage Venture Capital and IPO,” said Sanders, “This can help build global leaders while providing an exit to early investors.” But first four myths about Private Equity investors have to be addressed:

Richard Sanders, Co-Head Myth 1: Private equity is about cutting costs and selling assets. PE investors don’t care of Global technology about stimulating growth. at Permira and a member Reality: PE-funded companies outperform public markets by 60 % of the firm’s investment committee, has been Myth 2: PE investors load up with leverage which starves growth as all the cash flow a Permira partner since goes to debt pay-down 2006. He has worked Reality: The average leverage to equity ratio is about 50 % in London and Silicon Valley on investments including Myth 3: PE investors are “control freaks” who tell everyone what to do ABS, Ancestry.com, Reality: PE investors are “dogmatic about influence, but not about control,” are willing to use and Genesys, and is a different structures to cater to different situations board member of several Permira invested firms. Myth 4: PE is a homogenous industry Reality: PE is a mature industry with different strategies, including growth oriented strategy

“Because its roots were as Venture Capitalists in the 1980’s,” explained Sanders, “the DNA of Permira is growth focused. We have 28 billion in investment, including 8 billion in tech. 48 % of the last fund was focused on tech companies and has resulted in growth of 22 %.”

Sanders let the attending crowd know that Permira wishes to help companies go global, offering several examples, including Team Viewer and Genesys, which Permira helped enter new markets and Legal Zoom whose failed IPO bid led to an investment by Permira to help build subscription business which has resulted in a 65 % increase in profit in 12 months.

2015 High-Tech Forum: Tel Aviv 7 IV. Panel Discussion: Sources of Capital for an Israeli High-Tech Company

Moderator: Panelists:

Philippe Cerf Alan Freudenstein Co-Head of EMEA Telecom, Managing Partner, Credit Suisse NEXT Investors, New York Media and Technology, Managing Director, Credit Assaf Ben Ami Suisse Investment Banking, CFO, IronSource, Tel Aviv London Asaf Homossany Senior Managing Director EMEA, Nasdaq, London

Gigi Levy-Weiss Angel Investor, Tel Aviv

Laly David Business Development Director, OurCrowd, Jerusalem

Shlomo Dovrat Founder & Managing Partner, Carmel Ventures, Tel Aviv

The panel assembled to seed funding to that 3-5 million dollar for early-stage companies? According debate sources of capital for VC check,” said Levy-Weiss. to serial entrepreneur/venture capitalist Israeli high-tech ventures and Shlomo Dovrat, “Israel is transitioning other pressing issues in the As a result, new funding sources, like from building great products to building innovation and investment equity crowdfunding, have emerged great companies. We are moving from communities. The following is a to fill the gap. Laly David, from being a community focused on early record of the lively discussion: OurCrowd shared his company’s story: stage to becoming a real hotbed of “OurCrowd is investing alongside over global unicorns,” posited Dovrat, “There 10,000 investors in deals across various was 4.2 billion dollars investment in Do Israeli high-tech companies stages. We are gaining access to Israel this year. About 80 % of that is need to go outside of Israel to opportunities because of the gap.” focused on growth stage, not early find funding? stage.” The first question sought to root out the The problem extends to corporate potential missing links in Israel’s funding investors as well, added Credit Suisse The angel investor Gigi Levy-Weiss eco-system by asking the panelists NEXT Investors’ Alan Freudenstein. demurred. “There is still a lot of available when startups need to go outside “Corporate investors invest along money for good companies at the early of Israel to find financing. The panelists with deals where they can leverage stages,” he held, “Those companies concurred that the role of Venture knowledge, due diligence, etc. – mostly who fail to find financing may in fact Capitalists is changing. As angel investor investing in 15-20 million dollar deals.” simply be the weakest options available Gigi Levy-Weiss pointed out, “VCs who to investors.” once invested in the first or second So what’s behind this trend in the Israeli stage now wait longer and invest in the high-tech scene? What has become of What all the panelists agreed upon was third or fourth stage. There is a gap from the days when there was ready capital that companies in Israel are starting

8 2015 High-Tech Forum: Tel Aviv LTR: Shlomo Dovrat, Assaf Ben Ami, Asaf Homossany, Alan Freudenstein, Laly David, Gigi Levy-Weiss, Philippe Cerf

to focus on building strong, profitable Challenging the premise of the segment Often the contrarian voice in this growth companies rather than simply from the outset, Gigi Levy-Weiss panel, Shlomo Dovrat challenged this tapping financiers to stay afloat. advocated that the aggregate number of idea. “Building a unicorn is more about As IronSource CFO Assaf Ben Ami unicorns in Israel actually equals those the entrepreneurs. I have a 300 million concluded, “Companies in Israel know from all the EU countries combined, dollar fund. The challenge that the best model is to make the a statement which elicited substantial is that Israel does not have enough business profitable early, and not be debate among the panelists. companies with bigger ambitions and entirely reliant upon funding.” appetite for risk. This has to do with True or not, Assaf Homossany product strategy, the executives, and Where are the Israeli Unicorns? suggested that one explanation might how global their vision is.” Unicorns – startups with valuations lie in the difficulty of raising very exceeding 1 billion US dollars – have large capital sums in Israel. “In the Shlomo found immediate support from become the darlings of the investment EU, there are more alternative capital Alan Freudenstein, who called this community as companies stay private markets,” said Homossany, “When you a “mindset issue.” Israeli entrepreneurs, longer and longer these days. The get to the 50-100 million dollar check he said, “don’t have the stomach and moderator Philippe Cerf questioned why in Israel, it is much harder. The Chinese expertise that is needed for that large of there are fewer unicorns in Israel than are coming in and it is happening, but a vision. They prefer to pull the rip cord in Europe, despite the high volume and Israeli companies don’t have as much and get out early.” quality of companies being created. opportunity to raise that deal size.” Alan The panelists were invited to weigh in Freudenstein agreed. “In Israel there But are Israeli entrepreneurs really that on what they think is responsible for is no ‘Fidelity’ or other huge players that different from their counterparts in the this alleged dearth of the mythical late- raise a ton of money they must place EU? Not according to Levy-Weiss, who stage startups. and hold positions on.” pointed to an alternate explanation for

2015 High-Tech Forum: Tel Aviv 9 the presumed lack of unicorns. “What valuation. Why even go public at all, companies was circumstantial more is different in Israel is that there are then, posed the moderator? than a permanent state of affairs. “A lot a lot of MNCs here with a hunger for of Israeli Unicorns are in the AdTech creative Israeli companies. Many Assaf Ben Ami answered first. “If you field, suffering from low multiples more companies are being acquired at really want to build a huge company, you and negative investor sentiment. In an early stage. It is hard for them to must go public. It is not a question of general, the IPO market is dead say no to acquisition money.” ‘if,’ it is a question of ‘when.’ IronSource in the US for these companies, so the wants to be a huge international player, few tech IPOs we have seen recently Dovrat summed up the session with a so for us, eventually going public is part have done very poorly. Most of the profile of a business executive market in of our blueprint.” IPO valuations were down from the transition. “There is not the same talent last private round valuation, which does pool like Silicon Valley,” he held, “but still Carrying on with the “not if, when” not make sense! This is an anomaly, it is a pretty good pool of management idea, Alan Freudenstein posited that which will be corrected. Many Israeli talent, with better access to talent from companies will still go public, they will companies are IPO ready, but have just the Valley now as well. At IronSource, just do so later than in the past. “As long not listed yet. We, as investors, should the CEO and other founders are under as the private companies have access not be overly focused on the short 40. At Outbrain, the CEO is in the US, to large pools of capital that people are term. In the long term, creating public he’s 43 and sold his first company for willing to give them, the IPO runway will companies is the way to go.” 340 million dollars. At Payoneer, the remain long,” Freudenstein predicted. CEO is on his second company.” “Not only that,” added Gigi Levy-Weiss, Assaf Homossany also felt companies “With most of the unicorns, even when With such high valuations in were better off going public in the long the public valuation was lower than the private rounds, is there any run. “The value in going public includes private valuation, the investors still made reason to go public? better access, transparency, recruiting, their money. There’s more than the Much of the focus of the day’s etc.,” he shared, “but it must be part post-IPO valuation to consider.” discussion had been on this very subject. of an overall growth strategy, and When all was said and done, the panel Company valuations are growing larger management has to be committed.” felt that there is still value to Israeli and larger at the late private stage, companies in going public. The timing while some IPO valuations have been Shlomo Dovrat went further, to suggest may be delayed, the public valuation flat or even down from the pre-IPO that the poor IPO showing of Israeli may or may not be attractive as

10 2015 High-Tech Forum: Tel Aviv compared with the private valuation, Assaf Homossany was more specific. but for a constellation of reasons, IPO is “On the 10-year horizon, Agtech, Edtech, still the way to go. and Robotics are the key areas to watch.” Changes in the last five years. “What are you saying differently to So is there a bubble? Or is there truly high-tech growth companies in Israel a revolution of extraordinary companies today than what you said five years that deserve the high valuations that ago?” asked moderator Philippe the Israel hi-tech scene is seeing? Assaf Cerf. Gigi Levy-Weiss was the first to Ben Ami put it this way: “It’s not about respond:“I was telling people to hold the environment and whether there on to money, to be careful. Now people is a bubble or not. We must focus on are saying there is a bubble.” the business. It is important for a business to be profitable so it can wait, Alan Freudenstein shared those and can avoid taking on financing at concerns: “I agree that valuations are a discount. This is something that I think too high. We are very discerning, more and more companies at the early ourselves, and therefore not investing stages need to adopt.” in a high percentage of the companies we look at.” Bringing together all these ideas, Shlomo Dovrat pleased the audience Levy-Weiss was not really convinced, with the last word: “For early stage however. “We do not see investors entrepreneurs, we say ‘keep dreaming, acting foolishly,” he said, “Valuations think about changing the World’. may be up, but these companies really For growth stage companies, we say ARE changing the world. Trends like ‘Raise money now, because ‘the sharing economy,’ are truly changing the market is quite choppy.’ For later the way we live our lives and will create stage companies, we say ‘Be profitable.’ large economic value within 10 years.” When there is a real storm, the only “Technology changes everything,” added way to not get seasick is to look at the Laly David, “OurCrowd, in just two and horizon, not the waves.” a half years, invested 140 million dollars in 80 companies. We are seeing amazing opportunities.”

2015 High-Tech Forum: Tel Aviv 11 V. Startup Pitching Ring 2015: Best of Israeli Early Stage Entrepreneurship

Introductions: Doron Averbuch, Chief Executive of Operations, Credit Suisse, Israel “The pitching ring is a way to support young companies, selected through a rigorous process, on their way to success,” said Mr. Averbuch, “The winner gets the Credit Suisse Scholarship – which includes time with key Credit Suisse advisors, IT professionals, and investment bankers. They also may choose to attend an investment seminar in Israel, the US or Hong Kong, to meet potential investors and customers. What is unique this year is that OurCrowd is partnering with Credit Suisse to select and support the finalists.”

Ori Faran, Founder and CEO of CallVU, Last year’s startup pitch event winner Mr. Faran, CEO of last year’s Pitching Ring award winner CallVU, shared his company’s positive experience as recipient of the Scholarship. From a short video with CallVU co-founder Ziv Orr and Doron Averbuch, we learned how Credit Suisse advised CallVU on finance and management structuring and helped prepare them the for the Credit Suisse Asia Investment Conference in Hong Kong, which was attended as part of its prize. In fact, revealed Mr. Orr and Mr. Faran, thanks to the exposure afforded by their pitching ring win, just three weeks after their win, CallVU received its first round of funding, in the form of a 3 million dollar investment. Watch the full video at: https://youtu.be/E61zpV0ksck

Moderator: Yori Nelken, General Partner, OurCrowd First, Jerusalem Mr. Nelken gave a brief intro about OurCrowd. OurCrowd has 15 people on its deal team. They write the first check, then invite accredited investors to join via their web platform, with as little as 10,000 dollars. OurCrowd will invest 100 million dollars this year. It is probably the most active seed investor in the Israel high tech scene. In 2015, the crowdfunding platform introduced OurCrowd First—a specialized 10 million dollar global early stage fund focusing on 20+ seed and Pre-A startups and providing OurCrowd investors even earlier access to promising opportunities. The winner of this year’s Pitching Ring will receive preferred consideration and fast track due diligence analysis by OurCrowd First, with a potential award of up to 500,000 dollars in early-stage financing.

Five startups then came forward, each with just four minutes to make their timed pitch before the entire audience. They were as follows:

12 2015 High-Tech Forum: Tel Aviv Contestants: ARTWARE, Moti Kintzlinger, CEO GeeME GeeME is an up-to-date messaging app with an inherent monetization mechanism. Mr. Kintzlinger’s previous two companies were successfully acquired. He said that “Mobile is the dominant way to communicate these days, and selfies are the ultimate expression.” GeeME allows users to silhouette their selfie image against a range of backgrounds in the app’s gallery, which include brand messaging in a non-intrusive way. “This is superior to the annoyance of pop-up ads that occur in most mobile apps,” claimed Kintzlinger. Brands pay according to how many times their images have been used through the app.

AWEAR, Liron Slonimsky, CEO Awear combines fashion with IoT technology by embedding a chip in bags and other fashion items to empower brands with knowledge on how their apparel products are used after the sale. “Customers are incentivized to permit this with loyalty rewards for using or wearing the products,” explained Ms. Slonimsky.” The brand receives data which it can use to personalize communication to the customer through the Awear mobile app. Awear has a pending contract with a 1 billion dollar handbag brand, and has closed a 1.2 million dollar round thus far.

Codemonkey, Yishai Pinchover, VP Business Development Codemonkey aims to solve the predicted shortage of computer programmers by teaching kids how to program computers with a fun cartoon game whereby they write code enabling their “monkey” to collect “bananas.” The program uses a simplified javascript language called coffeescript. In the 12 months since its launch, Codemonkey has gained 1 million users. Its business model is subscription based, whereby the company sells licenses to schools to use in their computer programming curriculum. Mr. Pinchover revealed that “A deal has been struck with the Israel Ministry of Education which will see Codemonkey adopted in schools nationwide.”

Tapreason, Nimrod Elias, CEO “With thousands of new apps released every day and user acquisition costs increasing, it is a challenge for app owners to improve their distribution,” claimed Mr. Elias, “Most apps fail before they reach critical mass.” Tapreason uses big data to help app developers know the right time to encourage users to share and promote the app. The company has already seen millions of installs of hundreds of apps in just the last month.

Uniper, Rami Kirshblum, CEO Uniper takes on the challenge of the increasing costs of elder care by producing a device enabling seniors to live effectively at home longer. The device has large, simple buttons that are easy for older people to use, but are in fact equipped with the latest smart mobile technology. “The device can be used to locate lost keys or glasses, communicate with loved ones, adjust the television or air conditioner or obtain remote assistance,” offered Mr. Kirshblum, “It also has an analytics engine that learns about the seniors’ behavior and improves performance over time.” The device will cost 200 dollars, with a 6 dollar monthly fee.

2015 High-Tech Forum: Tel Aviv 13 After completion of the presentations, the audience was invited to vote each for his or her favorite startup, using hand-held remote voting devices that were passed around the room. When the votes were locked in, Codemonkey was selected as this year’s big winner:

GeeMe 8 % Awear 24 % Codemonkey 40 % Tapreason 4 % Uniper 24 %

Please visit www.credit- suisse.com/hightech for more information about the Pitching Ring Award 2015

14 2015 High-Tech Forum: Tel Aviv Our Partners first

Nasdaq (Nasdaq: NDAQ) OurCrowd First is a leading provider of trading, clearing, is OurCrowd’s boutique USD 10 mn exchange technology, listing, information per year seed fund for early-stage and public company services across six investments in Israeli and global startups. continents. Through its diverse portfolio The fund was raised in spring/summer of solutions, Nasdaq enables customers 2015 and has made a series of seed to plan, optimize and execute their busi- and Pre-A investments in high-growth ness vision with confidence, using proven sectors including the internet of things, technologies that provide transparency industrial energy, mobile infrastructure, and insight for navigating today’s global 3D printing and digital radiology. These capital markets. As the creator of the investments were made together with world’s first electronic stock market, its leading investors including Softbank, technology powers more than 70 market- Khosla Ventures, Salesforce CEO Marc places in 50 countries, and one in ten Benioff, and Artis Ventures. OurCrowd of the world’s securities transactions. First plans to make USD 250 – 500 K Nasdaq is home to more than 3,500 investments in about 20 technology start- listed companies with a market value of ups, and is being led by General Partners approximately USD 9.5 trillion and more Eduardo Shoval and Yori Nelken. than 10,000 corporate clients. To learn more, visit: nasdaq.com/ambition or business.nasdaq.com. Our Partners Helping Israeli High-Tech Entrepreneurs to Create and Preserve Wealth

Throughout its history, Credit Credit Suisse has a long-standing track record in advising entrepreneurs on Suisse has been committed to their financial needs and providing industry-leading solutions. We understand the serving entrepreneurs with thin line between success and failure and support you in navigating through the solutions to meet their changing following key decisions: How do I create maximum value for my company? Do needs. Since its founding in I have the right internal set-up to be on IPO track? How do I set-up a winning 1856 by the visionary Swiss internationalization strategy? What profiles should I look for in my board members? entrepreneur and political leader How do I finance growth without losing control over my business? How do I find Alfred Escher, Credit Suisse my first overseas blue-chip investor? What exactly is my company worth and how has been known for its record do I get it valued? What value has to be achieved to plan an exit? How can a pre-IPO of continuous innovation. founding round best enhance my chances of an IPO? How about staying private?

We constantly strive to be a step For many of these choices we have industry-leading capabilities in providing access to ahead by understanding your capital and executing transactions, such as Private Placements, Pre-IPO Finance, specific goals and aspirations, IPOs and Secondary Offerings. and by helping you to shape your next chapter. For serial entrepreneurs and private investors we provide high quality advisory and execution platform to manage your private wealth and help you make decisions such as: What changes when I move from being an entrepreneur to being an investor? How much control and involvement am I looking for? How important is entry valuation? How do I deal with failure? How do I look at building a portfolio of investments? What changes when I invest abroad?

Supporting your needs throughout your business and wealth cycle

Start-up Expansion Stable growth Maturity Post exit

• Network of • Credit Suisse NEXT • Access to Capital Markets • Secondary & Private Follow-on Offerings • Direct Equity Partners • IPO Investors • M&A • Corporate VC • Single Stock Lending • Strategic • Public Bonds Advisory & • Credit Suisse IT • HOLT valuation Coaching • Treasury • Private Placements • Research Coverage Management • Credit Suisse • Loans • Industry Conferences High-Tech Forum & • Pre-IPO Finance Community

• Pre-IPO Conference Your private wealth Israel • Employee Option Plans • Credit Suisse IT • Private Fund Group • • Discretionary Your company Your • Family Portfolio Governance Management • • Private Investment Club • Philanthropy • Private Label • Impact • Global Investment Management Funds Investing • Real Estate • Prime Trading • Inheritance Services Planning • Strategic Asset Allocation • Global • Trusts & • Escrow Diversification Foundations • Alternative Investments • Wealth Planning & Asset • Consolidated • Young Investor Structuring • Aviation & Yacht Finance Reporting Program

Wealth building Liquidity events Wealth preservation Wealth transfer Start-up Capital & expansion

Source: Credit Suisse

16 2015 High-Tech Forum: Tel Aviv Comments from other We help create wealth entrepreneurs • #1 technology IPO issuer listing international companies in the US (2013 – 2015) “We’ve been in contact with Credit Suisse according to FactSet and Dealogic; most active Investment Banking technology since we were private and were working practice worldwide with them step by step from a very early stage. Credit Suisse has always been a • Successful private placement agent on Wall Street with over 30 billion dollars of great mentor and a great help to us.” transactions in the last ten years • Tech-related investment vehicles providing access to expertise and growth Eyal Waldman, Co-Founder and CEO capital of Mellanox Technologies • Network of wealthy private investors in the Private Bank with over 1 trillion of managed assets “Credit Suisse delivered for us. • Credit Suisse itself as a client of Fintech, Cyber Security, Big Data and other We are very pleased on all fronts.” IT-related companies Adam Singolda, Founder and CEO of Taboola We help preserve wealth “I had the chance to join Doron Averbuch, • #1 Private Bank in Israel in 2014 and 2015 according to Euromoney; CEO, Credit Suisse in Israel on a trip to one of the largest Private Banks worldwide the Asian Investment Conference, and I’m • Access to international markets with booking capabilities in 22 financial centers thankful for every minute that I could spend • Comprehensive offering across investing, financing and wealth governance with him.” • Access to the most promising high-tech companies in Israel through a dedicated Ziv Orr, Co-Founder, CallVU and winner of the team in Tel Aviv and a systematic coverage approach 2014 Credit Suisse Pitching Ring Award Credit Suisse strives to be the number one bank for the Israeli high-tech community Selected success cases We have a strong commitment to the Israeli market with our dedicated high-tech BorderFree team in Israel, our annual High-Tech Forum, and our high-tech community Israel USD 92 mn website. We have helped several Israeli high-tech companies to raise capital, Joint Bookrunner such as Secure Islands, Taboola and BorderFree. March 2014 Overall, in the last six years, we have raised 20 billion dollars of equity and debt Secure Islands financing and assisted M&A transactions worth 10 billion dollars involving Israeli Venture Stage Investment companies, across different industries. Direct investment by CS NEXT September 2014 Furthermore, we are the number one Private Bank in Israel in 2014 and 2015 according to Euromoney. Taboola USD 117 mn Private Placement Exclusive Private Placement Agent February 2015 2015 Euromoney Private Banking Survey Named Best private Bank in Israel Winner for the Second Consecutive Year

Take the next step To learn more, please get in touch with us at www.credit-suisse.com/hightech

2015 High-Tech Forum: Tel Aviv 17 CREDIT SUISSE AG P.O. Box 100 CH-8070 Zurich credit-suisse.com

This material has been prepared by the Private Banking & Wealth Management division of Credit Suisse (“Credit Suisse”) and not by Credit Suisse’s Research Department. It is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis. This material is provided for infor- mational and illustrative purposes and is intended for your use only. The information contained in this document has been provided as general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated financial service. It does not take into account the financial objectives, situations or needs of any persons, which are necessary considerations before making any investment decision. The information provided is not intended to provide a sufficient basis on which to make an investment decision and is not a personal recommendation or investment advice. It is intended only to provide observations and views of the said individual Asset Management personnel at the date of writing, regardless of the date on which the reader may receive or access the information. Observations and views of the individual Asset Management personnel may be different from, or inconsistent with, the observations and views of Credit Suisse analysts or other Credit Suisse Asset Management personnel and may change at any time without notice and with no obligation to update. To the extent that these materials contain statements about future performance, such statements are forward looking and subject to a number of risks and uncertainties. Information and opinions presented in this material have been obtained or derived from sources which in the opinion of Credit Suisse are reliable, but Credit Suisse makes no representation as to their accuracy or completeness. Credit Suisse accepts no liability for loss arising from the use of this material. Unless indicated to the contrary, all figures are unaudited. All valuations mentioned herein are subject to Credit Suisse valuation policies and procedures. It should be noted that historical performance indications and financial market scenarios are no reliable indicators of current or future performance.

Every investment involves risk and in volatile or uncertain market conditions, significant fluctuations in the value or return on that investment may occur. Investments in foreign securities or currencies involve additional risk as the foreign security or currency might lose value against the investor’s reference currency. Alternative investments products and investment strategies (e.g. Hedge Funds or Private Equity) may be complex and may carry a higher degree of risk. Such risks can arise from extensive use of short sales, derivatives and leverage. Furthermore, the minimum investment periods for such investments may be longer than traditional investment products. Alternative investment 12.2015 strategies (e.g. Hedge Funds) are intended only for investors who understand and accept the risks associated with investments in such products.

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18 2015 High-Tech Forum: Tel Aviv