January 2019 Most Active Funds in - 2018 Ranked by Number of First Investments1 2 Total First Managed Capital 3 Fund Rank Fund 4 Portfolio Companies Investments ($M) Headquarters Datos Health, D-Fend, EasySend, Identiq Protocol, Nucleai, Vertex Ventures 960 OwnBackup, Quickwy (Nexite), Saga Foundation, Trigo Israel 1 11 Vision, Watchful Technologies, ZenCity Adanite, Buildots, Datagen, Granulate, Guesty, Quantum TLV Partners 267 Israel Machines, Runai, ScyllaDB, Shookit, Silverfort, Skyline Allegro.ai, Anagog, Epistema, Orca AI, Ottopia, QED-it, MizMaa 100 Hong Kong Saga Foundation, Tectonic, VayaVision 9 Alcide, Appdome , Cloudify, Codefresh, EarlySense, Kindite, CE Ventures (CEIIF) 80 Hong Kong 2 Panoply, PlaySight, Pliops Addionics, Arbe Robotics, AutoFleet, Fleetonomy, Next Gear 20 (Targeting 50) Israel Foretellix, Hailo, NoTraffic, Ottopia, TriEye AI21, CyberMDX, D-ID, Perception Point, Quickwy Pitango 1,910 Israel (Nexite),Tailor Brands, Venn, Zerto Altostra, BeeHero, Expain, Flowtune, Innerplant, Simpo, Upwest Labs 27 Israel Snipe, Zone7 3 8 Castor, Cyabra, GlobeKeeper, Hoopo, Loola TV, Medorion, TAU Ventures 20 Israel Treebute, Xtend Arbe Robotics, emedgene, Engie, Lending Express, Orisis, RIO Ventures 20 Brazil RayCatch, Taranis, Valerann Aquant, Epsagon, Kodiak Robotics, MDClone, MemVerge, Lightspeed 5,800 4 7 Saga Foundation, Shookit JVP 1,324 cnvrg, Compira,Mmuze, Nanit, Quali, Stellares, Vicarius Israel

Hanaco 270 Darillium, Moovit, Namogoo, Puls, SeeTree, Sqream Israel

Glory Ventures 200 GetAlert, Guardknox, Hailo, MemVerge, Ottopia, Sqream China 5 6 Meron Capital 70 Binaris, CoreTigo, Genetika+, Lumigo, Mesh, QED-it Israel

Mindset Ventures 25 D-ID, FieldIn, Halo Labs, SeeTree, Sepio, Skyline Brazil Cheq, Habana Labs, Kodiak Robotics, Quantum Machines, Battery Ventures 6,900 United States Quickwy (Nexite) Viola Ventures 1,025 MOV.AI, Origami Logic, PlainID, Taranis, VayaVision Israel

83North 818 AudioBurst, Cappitech, Obligo, Snappy, VDOO Israel

Aleph 334 LawGeex, Platterz, Panorays, TinyTap, Workiz Israel 6 5 SPiCE VC 40 (Targeting 100) INX, ROX, Saga Foundation, Securitize, Slice Israel

Maverick Ventures Israel 80 CrediFi, InZiv, Orasis, Sharegain, Twine Solutions Israel

Angular Ventures Targeting $25 Aquant, Datos Health, Dust Identity, Trellis, Vault Platform Israel In 2018, two veteran VC firms shared first place, each with a record 11 first investments: Vertex Israel ($960m in managed capital) and TLV Partners ($267m in managed capital). The firms deployed capital from two active funds: of 2016 — Vertex IV ($150m) and TLV Partners (115m) and of 2018 vintage year—Vertex V ($160m) and TLV II ($152m).

Three VC funds ranked second with 9 first investments each: CE Ventures from Hong Kong, a veteran in the Israeli market since 2015; MizMaa, another Hong Kong fund dedicated to Israeli investments; and Next Gear, a new (2018) Israeli micro VC dedicated to smart mobility early stage companies.

Third place was shared by four funds, each with 8 first investments: Pitango (a veteran Israeli firm); RIO, a new Brazilian VC, dedicated to companies with solutions for opportunities in connectivity, mobility, longevity and sustainability; TAU Ventures, a new micro VC fund and the first university VC fund in Israel, dedicated to early stage cutting edge technologies; and Upwest Labs, a veteran early stage micro VC fund investing in Israel's Pre-Seed and Seed stage companies.

1. Data are based on the IVC-Online database (http://www.ivc-online.com) and information provided by participating VC funds. 2. Ranking includes Israeli and foreign VC funds. 3. Investments include Israeli high-tech companies only. Excluding investments by VC funds in companies from incubators or accelerators owned by the same fund. 4. Total capital managed refers to the total capital managed by the VC management company 03 First Investments in Israeli High-Tech

327 326 316 305 294

211 204 202 229 195 237 216 171 198 183 149 168 135

67 49 54 56 57 37

2013 2014 2015 2016 2017 2018 Source: IVC-APM Most Active Funds 2018

# of Israeli VC First Investments # of Foreign VC Funds First Investments

# of Israeli VC Management Companies # of Foreign VC Funds

In 2018, venture capital funds made 503 first of active funds and investments. investments in Israeli high-tech companies. This was a 9% decrease from 2017’s record 553 first investments.

Foreign VC funds retained high levels of involvement with their numbers growing in 2018, and number of first investments much higher than the 2013–2014 figures. Israeli VC funds demonstrated a return to average first investment activity, both in number 04 # of Israeli vs Foreign VC Fund First Investments

63% 64% 60% 64% 57% 61%

37% 36% 40% 36% 43% 39%

2013 2014 2015 2016 2017 2018 Source: IVC-APM Most Active Funds 2018 # of First Investment by Israeli VCs # of First Investments by Foreign VCs

Following a very busy 2017 for Israeli VC funds, their share of total number of first investments in 2018 returned to the 5-year average of 39%.

Foreign VCs regained their regular shares of over 60% of total first investments in 2018.

This ratio trend (approximately 40% Israeli VCs versus 60% foreign funds) has remained stable for the last 5 years.

05 # of Israeli vs Foreign VC Fund First Investments

First investments by Israeli and foreign VC funds Israeli VC first investments shrank almost 17% have relatively slowed down in 2018 compared to following an especially active 2017 that saw the 2017. highest number of investments in the last 5 years.

This was in line with a general decrease in the Foreign VCs continued their downward movement number of high-tech financing rounds this year in from 2015, with a small decrease of 4% in 2018. Israel.

327 326 316 294 305

229 237 216 198 183 168 135

2013 2014 2015 2016 2017 2018

Source: IVC-APM Most Active Funds 2018

# of First Investment by Israeli VCs # of First Investments by Foreign VCs

06 # of Average First Investments per VC Fund

There appear to be more foreign VCs in the Israeli market in 2018, while the average number of first investments has slightly decreased—from an average of 1.72 investments in 2014 to 1.45 in 2018.

In the local market, Israeli VCs carry out more first investments annually, than foreigners. Although slightly less active in 2018, Israeli VCs still made almost 3.5 average first investments, similar to previous years.

4.50 4.00 4.00 3.65 3.43 3.54 3.47

3.50 3.27

3.00

2.50

2.00 1.72 1.60 1.67 1.54 1.56 1.45

1.50

1.00

0.50

0.00 2013 2014 2015 2016 2017 2018

Source: IVC-APM Most Active Funds 2018

# of Average Israeli VC Investments # of Average Foreign VC Investments 07 Record # of First Investments Per VC Fund: Israeli vs Foreign

18 17 In 2018, as in the past 5 years, the largest annual number of first 16 investments was by Israeli VC funds 15 15 Vertex and TLV Partners. 2015 was the only exception, when an early-stage 14 13 13 Japanese VC—Samurai Incubate— 12 ranked first, with the largest number of 12 15 first investments, a record for 11 11 foreign VCs for the entire 5-year 10 10 period. 10 9 9

Over the past 5 years, the number of 8 record first investments by Israeli VCs decreased from 17 in 2013 to 11 in 2018. Record foreign investments have 6 also ranked lower in the three past years. This might be one of the signs 4 that they are focusing on supporting current portfolio companies rather than on expanding their holdings. 2

0 2013 2014 2015 2016 2017 2018 Source: IVC-APM Most Active Funds 2018 Israeli VCs Foreign VCs

08 First Investments: Micro VC Funds vs Other VC Funds

427 460 338 406 409 277

87 124 116 103 93 93

2013 2014 2015 2016 2017 2018

Source: IVC-APM Most Active Funds 2018 # of First Investment by Micro VCs # of First Investments by VCs

In the Israeli high-tech market, micro VC funds (up to $50m capital under management) mostly concentrate on Seed and A round financing. In 2018, 83% of their first investments went to these rounds, the same as in 2017.

In the two past years, the share of micro VC funds of total first investments fell below 20%. Among micro VCs, the Israeli ones captured the majority of first investments— 75% share in 2018.

09 First Investments by Stage

600

37 35 500 38 35 25 152 167 400 139 176 10 119

88300

200 318 354 332 351 266 292

100

0 2013 2014 2015 2016 2017 2018

Source: IVC-APM Most Active Funds 2018 Early Stages Mid Stages Later Stages

In 2018, two leading trends were evident: early stage companies (seed and R&D) attracted less first investments than in the 4 previous years, and mid-stage companies (up to $10m annual revenues) experienced an additional 5% growth, following a 20% upsurge in the number of first investments in 2017.

This two-year trend may hint that, of late, VC funds are searching for more stable companies. This is most evident among foreign VCs, whose first investments in mid-stage companies continued to grow in 2018. In 2014 they hit the threshold of over 100 investments. Early stage investments have continued to decrease, reaching in the lowest point in the past 5 years (166 investments, down 10% from 2017).

Israeli VCs carried out the largest number of first investments in mid-stage companies since 2013 (10% growth from 2017), and the same number of early stage investments as in 2016 (126 investments, down 24% from the record high in 2017). 10 First Investments by Round

In 2018, first investments in seed 2018 165 191 84 36 27 rounds captured the lowest share since 2013, only 33% of all investments, compared to a 5 previous years average of 38%. 2017 199 200 86 33 35

The major decrease was seen among foreign VC funds, which made only 2016 177 206 64 40 22 77 first investments in seed rounds, a drop of 28% from the average for the three previous years. 2015 214 152 107 43 27 For the third year in a row, A rounds, with a 38% share this year, were exposed as preferable among VCs expanding their portfolios. 2014 183 160 65 27 27

2013 138 127 51 22 26

Source: IVC-APM Most Active Funds 2018

Seed A Round B Round C Round Later Rounds

11 First Investments by Sector

The number of first VC investments in software grew from 29% in 2013 to 54% in 2018, far ahead of all other 259 251 technology sectors. This was in line with general trend in high-tech capital raising figures in 2018. 210

Two additional sectors followed: 180 Internet (14% share) and life sciences 157 (13% share). While Internet has 137 shown a continued decrease since 122 2016, following a number of 116 105 successful years, life sciences has 101 102 slowed down after the record 2017 73 73 71 with 116 first investments (21% 69 67 share). 50 52

2013 2014 2015 2016 2017 2018 Source: IVC-APM Most Active Funds 2018

Internet Life Sciences Software

12 Methodology

IVC Research Center in cooperation with APM & Co. ranked Israeli and foreign venture capital funds according to the number of first investments they made in Israeli high-tech companies in 2018, excluding investments by venture capital funds in companies belonging to an incubator or an accelerator owned by the same funds, foreign companies or non-technology companies. The data are based on information received directly from the VC funds and from IVC-Online Database (www.ivc-online.com). Rankings reflect the number of first investments only, not capital investments, and in correlation to the distribution of the first investments over the different rounds, including Seed round, A round, B round and Later rounds and company stages - early stage (seed & R&D), mid-stage (initial revenues up to $10m) and later stages (revenue growth over $10m annual revenues).

This press release contains analyses based on the IVC Industry Analytics business intelligence product, and the Most Active Investors Dashboard, which contains detailed information on active VCs and other investors via an interactive, user-friendly interface. The Dashboard is available online to IVC Industry Analytics subscribers and offers a wealth of continually updated investor data, which can be filtered according to year, type of investor, type of investment and more.

Further information on Most Active Investors in 2018 will be reported in the new IVC Magazine, to be published in March 2019. About

IVC Research Center is the leading online APM & Co. is a renowned Israeli law firm with provider of data and analyses on Israel’s high- a robust legal practice. Established in 1956, the tech, venture capital and firm draws on six decades of excellence, to industries. Its information is used by all key offer an up-to-date innovative approach to the decision-makers, strategic and financial practice of law. The firm provides a investors, government agencies and academic comprehensive range of legal services to an and research institutions in Israel. Israeli and international client base that spans • IVC-Online Database (www.ivc-online.com) across all business sectors and stretches to showcases over 8,000 Israeli technology Australia, India, China and Singapore. startups, and includes information on APM & Co.’s high-tech and venture capital private companies, investors, venture practice is one of the most prominent capital and private equity funds, angel practices in Israel. groups, incubators, accelerators, investment firms, professional service The firm is a market leader in fund formation providers, investments, financings, exits, and the formation of other investment acquisitions, founders, key executives and vehicles, including technological incubators, R&D centers. accelerators and various holding companies. • Publications include newsletters; Daily The firm’s fund formation practice, continually Alerts; IVC Magazine; surveys; research rated and perceived as Tier-1, focuses on the papers and reports. formation of venture capital firms, private equity funds, debt & special-situation funds, • IVC Industry Analytics – analysis, research real estate funds, infrastructure funds and and insights into the status, main trends others and has played a key role in the and opportunities related to exits, formation of Israel's most successful funds. investments, investors, sectors and stages. Copyright + Contact

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