Maayan
This presentation is the property of its rightful owner.
Sponsored Links
1 / 20

Maayan Ventures The Leading Incubator in Israel March, 2012 PowerPoint PPT Presentation


  • 91 Views
  • Uploaded on
  • Presentation posted in: General

Maayan Ventures The Leading Incubator in Israel March, 2012. The Motivation. The initial motivation for establishing the incubators by the Israeli government: Encouraging growth of certain industries, developing high-tech industries

Download Presentation

Maayan Ventures The Leading Incubator in Israel March, 2012

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Maayan ventures the leading incubator in israel march 2012

Maayan Ventures

The Leading Incubator in Israel

March, 2012


The motivation

The Motivation

The initial motivation for establishing the incubators

by the Israeli government:

  • Encouraging growth of certain industries, developing high-tech industries

  • Decreasing dependency of certain areas in one industry (such as: automotive, steel, defense)

  • Increasing activities in “weak” sectors – poor population, development areas

  • Increasing cooperation between the Academia / Research Inst. and the industry – commercializing new technologies

  • Creating new employment opportunities, especially for new immigrants

  • The two main reasons for business failure of new start-ups are lack of managerial experience and funding problems. The incubators professionalize in these areas.


The business model

The Business Model

  • The main principle: leveraging government money for early stage venture capital investments.

  • Basic funding for each new company: $600K:

    • ~$500K (85%) is given by the OCS as a non-recourse loan that is returned from future earnings.

    • ~$100K (15%) is invested as equity by Maayan Ventures.

  • Maayan Ventures receives 40% of the company.

OCS

Maayan Ventures

85% - Non-Recourse Loan

15% - Equity

Portfolio Company


Technological incubators in israel

PRIVATIZATION (2002)

Technological Incubators in Israel

  • Established by the government in 1991

  • Overseen by the Office of the Chief Scientist of Israel’s Ministry of Industry and Trade

  • After 7-8 years, became a government investment channel, and a decline commenced:

    • Economic depression, burst of the high-tech bubble

    • Regarded as “heavy” and bureaucratic government institutions

    • High failure rates of graduate companies


The current situation

The Current Situation

  • 24 active technological incubators

  • 15 of them operate in peripheral areas

  • 23 are privatized

  • More than 200 companies / start-ups operate in the various incubators (at least 100 of them are new)

  • The total incubators budget during 2010 – 177M NIS

  • Since 1993 until today – more than 1200 companies graduated from the incubators

  • In 2010 there were 57 graduates – 68% of them managed to raise additional funds


Maayan ventures

Maayan Ventures

  • The largest early stage investment company in Israel

  • Two “incubators” franchises from the Office of the Chief Scientist of the State of Israel (OCS) enabling leverage of government funds

  • Over 30 portfolio companies in three main fields: Software, Medical Devices and Materials

Rotem Ventures

Industry and Materials

Maayan Ventures

Medical Devices

Iris Ventures

Software and IT


The business model1

The Business Model

  • The main principle: leveraging government money for early stage venture capital investments.

  • Basic funding for each new company: $600K:

    • ~$500K (85%) is given by the OCS as a non-recourse loan that is returned from future earnings.

    • ~$100K (15%) is invested as equity by Maayan Ventures.

  • Maayan Ventures receives 40% of the company.

OCS

Maayan Ventures

85% - Non-Recourse Loan

15% - Equity

Portfolio Company


Typical investment cycle

Typical Investment Cycle

48

Maayan’s Holdings

20%<Maayan<40%

M&A or EXIT

36

Reality Check

Maayan invests only with lead third party

Series B

End of Incubator Period

24

Series A

18

15% Supplementary Funding by Maayan

85% Government Grant

Seed Stage

Maayan > 40%

0

Months

What do we do to get there?


1 st stage selecting the right companies

1st Stage: Selecting The Right Companies

Deal Flow Sources:

Refer a friend

Leading funds

Tech transfer orgs

Patent attorneys

Maayan’s investors

Due Diligence

Technological

Innovation

Entrepreneurs

Legal

Financial

  • Internal Inv Comm

  • Leading professionals

  • Expert opinions from the field

  • Examining worthiness of investment

Appointed examiner

On behalf of the

OCS –

Government

screening

Process

Incubatur

Over 400

Opportunities

per year

Initial

Screening

Internal

Investment

Committee

OCS

Committee

5-10 companies enter the incubator every year


Maayan ventures the leading incubator in israel march 2012

2nd Stage: Providing Added Value

  • Close Accompaniment

  • Recruitment of Key Executives

  • Financial Backing

  • Business Development

  • Strategic Consulting

  • Administration Backing

  • Legal Services

  • Coaching

Company

Entering Maayan Incubator


Maayan ventures the leading incubator in israel march 2012

3rd Stage: Opening The Market

  • Door Opening

  • Exposure to Market

  • Connections with Relevant Players

  • Exposure to Strategic Partners

  • Leading Negotiation with M&A Partners

  • Legal and Financial Advice

  • Bringing Additional Investors


Strategy

Strategy

  • Rich, balanced, high-quality portfolio

  • Focus on three market segments

  • Value creation while creating exits along the way

  • Deep involvement in portfolio companies

  • High-quality, professional and dedicated management

  • Low operational costs

  • Maintenance of high equity stake in key portfolio companies

  • Leverage of the connection with IDB and Infinity China

  • Social awareness - promotion of the Negev


Maayan ventures the leading incubator in israel march 2012

Portfolio – Communications & IT


Maayan ventures the leading incubator in israel march 2012

Portfolio – Medical Devices


Maayan ventures the leading incubator in israel march 2012

Portfolio – Materials & Industrial Eq.


Key portfolio companies

Key Portfolio Companies

Industrial/Material

Medical Devices

Software/IT

37%

43%

34%

Aespira

Breathing New Life Into Healthcare

42%

35%

46%

46%

29%

48%

21%

Major Holdings in Leading Companies


Maayan ventures the leading incubator in israel march 2012

Gizmox

  • Gizmox has developed a unique transposition technology for complex enterprise software applications from client server architecture to new architecture of cloud/web/mobile/HTML5

  • The company had completed the development for Microsoft Applications and is now developing its JAVA based solution

  • Team:

    • Navot Peled- Founder, CEO- vast experience in product marketing

    • Guy Peled- Founder, CTO- vast development experience in MS architecture

    • Itzik Shpizen- VP R&D

    • Doron Libstein- Chairman- Over 15 years at MS, founder of MSN Israel and Head of MS Europe

    • Major Achievements

  • Convertible loan and strategic agreement of $2.5m with Citrix

  • Two major agreements with Microsoft

  • The company is currently in advanced negotiation with a number of potential clients in the financial sector and others for applications transpositioning projects based on Gizmox technology


Maayan ventures the leading incubator in israel march 2012

B-Nano

  • B-Nano is revolutionizing the microscope world - has introduced the first electronic microscope to operate in atmospheric pressure. This development has tremendous implications in the medical and metrology fields

  • Team

    • Dubi Shachal, Founder- Dr. of Chemical Physics from Weizman institute, Held senior management positions at Applied Materials as system engineer, development manager, and product manager of an over $1b revenues product

    • Rafi De Pichoto- Chief Physician, Dr. of Physics from Weizman Institute, over 10 years of research experience at Bell Labs in the US.

    • Major Achievements:

  • The company has signed a $4.4m NRE agreement with a Korean Company

  • Sales agreements with additional Korean companies as well as interest from international semiconductor companies

  • Entrance to the labs market by installations at major labs across the globe, specializing in life sciences and nano technology


Maayan ventures the leading incubator in israel march 2012

  • The company is revolutionizing the hair transplant field- moving from the operation room to a Botox like procedure

  • There are over a billion people globally suffering from balding. The potential is huge, but has not materialized commercially with existing procedures due to high costs and poor results

  • Hair Esthetics offers a revolutionary procedure for “hair injection” which will enable every balding person to enjoy great results for low cost

  • Hair Esthetics is the first company to offer a multiple hair implementation procedure enabling the transplanting of a group of hair versus single hair line in a click of a button, making it the lowest cost, fastest, easiest procedure on the market.

  • The company has received a lot of interest from strategic partners and leading investment institutions:

    • Approval for clinical trials/ completion of clinical prototypes

    • Signed a TS after reviewing several from a leading investment fund at an up round valuation

    • Interest expressed from strategic partners such as AmorePacific (Korean Giant)

  • The Vision: Hair Esthetics will revolutionize hair transplant in the same way Botox has revolutionized wrinkles removal


Thank you

Thank You


  • Login