INNOVATION AND ENTREPRENEURSHIP CHALLENGES & LESSONS

RAFI NAVE

APRIL 2015 INNOVATION AND ENTREPRENEURSHIP CHALLENGES & LESSONS

• The role of Innovation and Entrepreneurship in the fast moving new world • ‘High Tech Nation’ – How exploited its pivotal role in ‘the brave new world’ and helped it become a better world? • The early days – ‘war stories’ • Intra-organizational entrepreneurship • Breakthroughs and their challenges • What all this tells us? • The Entrepreneurship Center at the Technion

THE ROLE OF INNOVATION AND ENTREPRENEURSHIP IN THE FAST MOVING NEW WORLD

The Indian King and the Chessboard problem

If a chessboard were to have wheat placed upon each square such that one grain were placed on the first square, two on the second, four on the third, and so on (doubling the number of grains on each subsequent square), how many grains of wheat would be on the chessboard at the finish?

0 1 2 63 64 19 T64 = 2 + 2 + 2 + . . . + 2 = 2 – 1 = ~ 2*10 1970 2015 1103 1Kb DRAM 256G Flash/DOK 10**3 devices 10**12 devices

10**9 increase in 45 years : 2X every 1.5 years! [ Moore’s Law ] Exponential growth of technologies

The number of patents annually grew dramatically in recent decades

5/15/2015 6 POWER OF TECHNOLOGY PROGRESS WE DRAMATICALLY UNDERESTIMATE THE POWER OF FUTURE TECHNOLOGY PROGRESS

Intuitive linear view: Historical based • We think of a future Exponential view: period at today’s rate • But, we are doubling our of progress rate of progress every ten • Our memories are years dominated by our • So, in this century, we will recent experience experience 20,000 years of • “rear mirror wired” progress, at today’s rate! • And we must! otherwise we’ll need 5 planets!

Source: EU Perspectives 2020; WWRF 2007 Book: “Abundance” by Diamandis&Kotler 7 SOME INDICATIONS:

• The compute power of one current smart-phone exceeds all Mankind compute power 50 years ago! • The amount of data/information produced in one year exceeds the data volume produced since the dawn of history till that year! • A typical Encyclopedia fits on a Disk On Key! • Smart-phones and PCs new models every year

The treadmill analogy ‘HIGH TECH NATION’ – HOW ISRAEL EXPLOITED ITS PIVOTAL ROLE IN ‘THE BRAVE NEW WORLD’ AND HELPED IT BECOME A BETTER WORLD?

• Israel’s economy doubled in the past 20 years [GDP/prs/yr : 17K  >35K] • The Hi-Tec sector exceeds 50% of the Export/output • Thus, Hi-Tec is the locomotive that pulls the economy train. It is the enabler of Israel becoming a Hi - Tech developed nation! ISRAEL FACTS & FIGURES

• The largest per-capita number of research papers • The largest per-capita number of registered patents • The largest per-capita number of startup companies • 70+ technology companies listed on NASDAQ (second only to Canada and the USA) • 7 Nobel-prize winners in past 13 years

10 Israeli Breakthroughs – Selected Examples

Source: http://www.investinisrael.gov.il/; Multi – National companies presence in Israel

HOW DID IT HAPPEN?

• Israelis character & culture: [ strong conviction ( ‘I know better!’ ), Chutzpah, don’t take ‘no’ for answer, utmost commitment to make things happen, not afraid of failures…] • Military experience: Teamwork, Command/Leadership • The Russian immigration & Incubators • Migration from Military to Civilian Apps • Perfect timing for the mid-90s Internet bubble • Availability of venture money for ‘crazy’ apps • A phenomenon that fed itself – Perpetual! Israel Intel Israel The Disk-On-Key - M-Systems – Dov Moran Drive Control - Mobileye – Amnon Shashua The world leading Specialty Foundry – Tower-Jazz Infiniband – Mellanox - Eyal Waldman Firewall pioneers – Checkpoint – Gill Schweid Customer Care & Billing- Amdocs Telecom Business Solutions - Comverse Over a 100 Communication companies: RAD family – The Zisapels VSAT communication – Gilat -Yoel Gat Power/chargers - PowerMat Wireless/Mobile Communication - Alvarion The 1st ‘Chat’ – iCQ - 4 students + Yossi Vardi The right way! – Waze – Uri Levine 3D imaging ( games etc) - Primesense Instant Messaging & Voice over IP - Viber The World Leader in Generic Pharma - Teva CT – Tomography – Philips Healthcare [Elscint] Medical Imaging – MRI & CT – GE Healthcare [Elscint] – Amit Gofer

ReWalk Robotics (formerly Argo Medical Technologies) develops, manufactures and markets wearable robotic exoskeletons for people with lower limb disabilities, such as paraplegia.

ReWalk’s mission is to fundamentally change the health and life experiences of individuals with spinal cord injury.

Published clinical studies demonstrate ReWalk’s ability to mimic a natural gait and deliver functional walking speed

36 Non Invasive tumors & cells removal Insightec - Kobi Vortman PillCam – - Gabi Idan

38 Given Imaging PillCam Video Endoscopy Skin treatment –Syneron - Shimon Eckhouse Medical LASERs- Lumenis GeoThermal Energy – Ormat - The Bronicki’s Solar Thermal Energy – Helio-Focus Drip Irrigation Leadership - Netafim Water & Wastewater Treatment - AqWize Israel Aerospace Industries International Defense Electronics - Elbit Armament Development Authority - RAFAEL Hitting a Bullet…with a Bullet

Iron Arrow 3 Dome

48 THE EARLY DAYS – ‘WAR STORIES’

• The dawn of Israel’s Semiconductor technology [ 1968 to 1973 ] – Prof Kidron • The birth of the Israeli Semiconductor industry [ 1974 – 1977 ] – Intel Israel • Spawning: National Semi; Motorola Semi, Galileo… • Elron – Uzia Galil  Elbit, Elscint… • Scitex – Effi Arazi • Tadiran • RAFAEL [ HEMED, Amos Horev ]

INTRA-ORGANIZATIONAL ENTREPRENEURSHIP

• Israel is on Intel’s map! • 8087 • Corp CAD; Back-End [ Test, QRE… ] • MMX, Centrino, Multi-core • Intel Corporate Intraneurship • CLE, DFM, IDC • Requirements Management [ NDS, Given Imaging ] • The ALPHA MAGNET consortium

BREAKTHROUGHS AND THEIR CHALLENGES – GIVEN IMAGING

• The amazing Given Imaging/PillCam story:

• 1982 – the problem and the idea

• 1998 – why did it take so long?

• 2001 – PillCam is born!

• Market penetration: Regulation ( FDA ) Reimbursement

• Expanding

WHAT ALL THIS TELLS US?

• ‘Necessity’ is mother of invention • ‘Unmet need’ is key to Biz success! • Leadership! The individuals that made the difference! • Teamwork, Devotion and tenacity • Risk taking & daring! • No shortcuts! [ blood, sweat & tears ] • Timing ( and luck! ) • Having fun along the way!

ENTREPRENEURSHIP AND INNOVATION AT THE TECHNION

ENTREPRENEURSHIP AND INNOVATION AT THE TECHNION

 Bronica Entrepreneurship Center (BEC)  Knowledge Center for Innovation (KCI)  Technion R&D Foundation (TRDF)  Technion Technology Transfer (T3), Liaison office, Technion investment fund  Technion Accelerator ( just started )  The Start-up MBA program  The International School [ Entrepreneurship programs ]

THE ENTREPRENEURSHIP CENTER’S MISSION

Position the Technion as a world leader in Entrepreneurship and Innovation THE ENTREPRENEURSHIP CENTER’S ACTIVITIES

• The Center acts as the central point of contact for entrepreneurship at Technion. • It accompanies the entrepreneur [ student, faculty or young alumnus ] through the journey; from the earliest stage to a fully committed entrepreneur The Entrepreneur’s Journey

Bridge to Building a business the Ecosystem

Action Learning, Idea Phase Experimenting

Awareness, Education, Inspiration Aspiring beginners The Entrepreneurship’s Journey

Pre- Aspiring Idea phase Building a entrepreneurs beginners business • Guest talks in • 17 • Minor in • Capstone mandatory academic entreprene course courses courses urship • Advising 4th • StartUP MBA year projects • Zero point

Academic courses initiatives • Dream • eClub and • BizTEC • Bridge to the Factory open • Consultatio ecosystem= • Career events n sessions connecting

managemen • 3DS • Kaplan with network t: New • Themed Prize and curricular

- generation workshops expertise TFL, Engineers • Content workshops Extra activities • 17 academic courses • Minor in Entrepreneurship – Certificate from the Under-Graduate school Academic – 4 courses, 9.5 credit points Activities • Start-Up MBA Entrepreneursh ip Practice TECHNION 3DS (3 DAY STARTUP)

A three day workshop for pre-screened participants to take their ideas to a pitch to a panel of investors through hand-on experience Input: Individuals Output: Teams E-CLUB

• Bi-weekly networking events • Meet leading entrepreneurs and share ideas in an informal, relaxed environment. • The goal: Fun and inspiration Technion For Life (TFL)

• Mentoring, networking & consulting services for Technion alumni • Experienced Alumni coach & help young ones

History • Founded by Reuven & Shai Agassi in 2003 • 4 Exits ≈ $ 120 M • Raised investments ≈ 30M$

Activity • ≈ 15 applications per month • Currently 12 active supported ventures

BizTEC 2015 National business plan competition for students

• 75 teams applied this year ( 2015 ) to the competition

• 50 Judges help to evaluate the teams

• 40 Mentors will guide and assist the teams

• 6 extensive Workshops will provide relevant tools, skills and methods to the teams

• The BizTEC partners will escort and assist the teams

• 25 teams, or so, will proceed to the Spring stage.

• 8 – 10 Teams will reach the finals and one team will win the $10,000 prize

Fitterli Team from BizTEC 2014 won the Intel Europe Business challenge first place BizTec Success Stories Some of the companies that started their journey in Biztec

PolyTouch™ - purchased by Covidien for $40M. Producing placement device for laparoscopic hernia repair LifeBond™ - next-generation surgical sealants, raised ~$20M in third round in 2011 currently in clinical trials [ www.life-bond.com ] WindWard™ - Predictive Maritime Analytics Systems & Services, raised ~$5M in first round in 2013 [ www.windward.eu ] Yevvo™ - Instantly push live HD video app between people, raised $3.7M in first round in 2014 [ www.yevvo.com ]

Technion Nation: The Best Is Yet To Come!