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New Opportunities for Direct Investment: Life B eyond VC. Jon Medved CEO, OurCrowd Prepared for DC Finance Annual Family Office & Wealth Management Conference. Market Disruption: Crowdsourcing in Finance.
Prepared for DC Finance Annual Family Office & Wealth Management Conference
“Venture capital-type crowdfunding is the wild card for 2013. It could raise more than a billion dollars …”
Source: Massolution Crowdfunding Industry Overview 2013
Source: Deloitte TMT Predictions 2013 “Let's get together: crowdfunding portals bring in the bucks”
The recent acquisition of Oculus raises questions
Pays $2B for company and
Original crowd funders get nothing
Andreesen, Spark, Matrix Partners back Oculus Rift with $75M Series B… then Facebook acquires the company for $2B
December 2013 … March 2014
After raising $2.4M from Kickstarter, Oculus Rift gets the attention of major investors
Now investors are asking why do I only get a tshirt?
Naturally, this plays into the rise of equity crowdfunding platforms
We always Co-invest with crowd
Accredited investors only
Managed investments via SPV
Good for companies (one check), Good for investors (protections, rights)
Truly International ( active investors from 26 countries)
Focus on Follow-on rounds bearing fruit
Mentors program is unique
Taking Board seats in 65-70% of companies
“Crowdbuilding” resonates and works
Co-investor list is indeed impressive
Our goal is to be the “smart money” in crowdfunding“Crowdfunding for real investors” (TheStreet.com)Growing Differentiation from the rest of the pack
OurCrowd management company
OurCrowd investment vehicle
Paraplegics face immense social and medical difficulties living wheelchair-bound. Israeli entrepreneur Dr. Amit Goffer developed the ReWalk for over a decade to produce a device uniquely capable of alleviating key medical complications that come from a paraplegia and allowing paraplegics to walk, climb stairs, and even complete marathons.
Argo – advanced robotics allowing paraplegics to walk again
Israeli water tech impact
Farmers waste hundreds of millions of dollars worth of water – driving up prices and reducing supply for those most in need of affordable water – because they’re spraying water uniformly across their fields. A mobile app that enables farmers to finely control where their water goes is already saving countless cubic meters of water internationally.
Varigate – the world’s most affordable water
Israel recycles 75% of its water, #1 in the world. By comparison, #2, Spain, recycles just 11% of its water.
“Israel should be proud of being at the forefront of green innovations for water management; these innovations can be decisive in managing scarce water resources” – Angel Gurria, OECD Chair
Did you know that Israel is recognized by the OECD, WWF, and UN for being a water tech powerhouse?
Israel’s interdisciplinary strengths
Malaria has killed millions in the past decade and is among the diseases with the highest toll on human life and economic activity worldwide. Despite this, diagnostics tools used in the prevention and treatment of malaria worldwide remain expensive, slow, and insufficiently accurate for mass implementation. SightDX’s computer vision technology reduces the time to diagnose from several hours to minutes, while being more accurate and substantially cheaper.
The story of SightDX being founded and built by a diverse group of people pooling their personal intellectual strengths is the archetype of the Israeli startup.
Sight Diagnostics represents the convergence of two key Israeli strengths: life sciences/biology and machine vision/advanced algorithms
Case study: Chilean earthquake ‘14
Israel's unique demand for the fastest, most innovative technologies in emergency alerting forced eVigilo to produce the world’s leading mass alerting system that is now used by governments around the world as a core part of their disaster preparedness plans.
Chile’s 2010 earthquake and tsunami took over 520 lives as millions were left without means to communicate or be alerted to the post-quake tsunami for up to 12 hours. In the minutes after the 2014 earthquake, Chile activated eVigilo’s newly-implemented system and effectively alerted several million people in tsunami zones to evacuate.
Technology implementation update
Semicon/components company whose product enables effective voice communication and recognition in even the most noisy environments. “Optical microphone” monitors vibrations on speaker’s throat and face, helping to isolate speech from background noise.
Yechiel Kurtz, CEO, held a successful meeting with President of Samsung Mobile R&D group. VocalZoom will be running tests with engineers in Korea in May 2014.
Strategic investments at this stage in the company’s development are an open potential.
Product launch - $1.2M in preorders
Miniaturized near-IR spectrometer, allowing for first hand-held molecular sensor. Applications: measuring nutritional information in foods, identifying allergens, authenticating precious metals and leathers, etc.
Co-investors: Khosla Ventures, Dov Moran
Product launch on Kickstarterat $200 price point saw over $1.2M in pre-orders within a week.
Rave reviews in media: VentureBeat,
Validation of strong demand for consumer-friendly health-focused devices at ~$200 price point.
Founders are giants in the comm. space
Revolutionizing team communications with cross-platform mobile messaging application. Called “Whatsapp for business”, Zula’s core value is its focus on consolidating communications for teams into one location and focusing on team-centered functions above those offered by existing consumer solutions.
Co-investors: Microsoft Ventures, Mort Meyerson (EDS)
Above: Jeff Pulver, Chair & Jacob Ner-David, CEO
Jacob Ner-David founded and exited three communications companies, the largest of which was Delta Three, which he took to IPO on NASDAQ with a market cap of ~$1.8B.
Jeff Pulver was the co-founder of Vonage and pioneer of VOIP technology and early legislation.
Israeli expertise in digital printing
Moving conventional packaging production from analogue (die-cutting) to digital process (one-button operation). Opens new possibilities for packaging – short and medium runs, high-value packaging in small quantities, labor savings, etc.
Co-investors: Benny Landa (Indigo, $800M acquisition by HP)
Israeli entrepreneurs brought Scitex, JemtexPrinting, Objet, XMPie, and Indigo to the world market, securing major exits to multinationals like HP and Eastman Kodak. Indigo, which HP acquired for $800M to absorb its digital printing technology, was started by Benny Landa, a Highcon investor.
Current opportunity: Raising $15M for expansion. Strategic investment possibilities.
A look at MUV’s product
Pioneering solution for interacting with multiple screens through touch, gestures, and voice input. Proprietary integration of optics and wireless tech makes its product the highest accuracy, most versatile and substantially cheaper than any options available today.
CEO Rami Parham demonstrates MUV’s fine-detail control over a projected image. MUV’s solution is both available in a small, unobtrusive add-on, as well as a sensor capable of being embedded within projectors by OEMs.
Israeli expertise in computer vision
Advanced, patent-protected camera app eliminates the need to choose between taking a photo and video. Takes captures video and metadata including accelerometer inputs, allowing the user to take still images but to produce a full-motion video after-the-fact from the moments captured while photographing.
CEO Amit Man is an expert in computer vision and machine learning and lead algorithm and core development at Israel’s Briefcam. Israeli companies like Briefcam, Mobileye, Rafael, Elbit, and more.
Early traction with major publishers
Lightweight application (browser plugin or embedded into websites) allowing content publishers to deliver in-context information to users when they ask for it.
Founded by Bob Rosenschein, serial entrepreneur who founded Answers.com – top 20 web property in the US.
Curiyo launched its first major publisher partnership with USA Today, running its application embedded into the Life section online – a top 10 US news property online.
Fastest growing mobile multiplayer network for Android and iOS with over 70M users.
Provides back-end for developers to quickly deploy their games as full-blown multiplayer games in 10 lines of code, without the headache of maintaining server load themselves.
NextPeer’s user adoption rates surpassed 1.5M per day during recent peak periods, as reported in a VentureBeat article looking at the network’s explosion. By providing the backend for game developers to make engagingly multiplayer products, NextPeeris able to “latch onto” the growth of viral games like 2048n or Candy Crush and grow as the games pick up gigantic user bases.
Mobile app with proprietary, protected algorithms analyzing 8 inputs from phones to predict parking behavior of users, passively inserting users into an ecosystem of drivers looking for and leaving parking spaces.
Parko continually monitors streets to build a map of parking availability likelihoods for each street at any given moment.
Parko’s unique behavioral analysis and motion recognition engines are being licensed to 3rd party applications, branded as Motionize.
Parko is also pioneering the next generation of “ETA” – mapping applications that tap into Parko’spredictive map to include estimated parking time.
Experienced, successful management team
Complete enterprise data security solution for BYOD IT setups. Nativeflow secures any data on any device and inside of any application being used by employees. It runs invisible to the end-user, allowing employees to enjoy the “native” user experience that motivated them to bring their personal devices into the workforce in the first place. The deep technology behind their solution is protected and patent-pending.
Nativeflow’s management team has a history of success in the security space. CEO EitanBauch was co-founder of and sold Navajo Systems to Salesforce, was CEO of Magnifire, which was sold to F5.
Top-tier funds and institutional investors
Top-tier funds and institutional investors
* Investor opting for anonymity
Evelyn Rubin, BizDev Partner
JVP, Senior Editor @ SeekingAlpha
Zack Miller, Investor Community
VP Biz Dev @ SeekingAlpha
Robbie Citron, CFO
Partner @ Jerusalem Global Ventures
Jay Kalish, SVP & General Counsel
VP IR @ Allot, CEO Patir Tech
Audrey Jacobs, VP BizDev
Danna Mann, Biz. Strategies Partner
Biz Dev at JVP
David Stark, dealflow
David Arnovitz, COO
Founder of S1 and Secureware
Some recently joined mentors
- Co-founder of NDS (sold to Cisco, $5B)
- CEO Itamar Medical
- President Cardiology @ Boston Scientific
- Serial entrepreneur in medical device space
- GM Israel @ LivePerson (NASDAQ LPSN)
- SVP @ Shopping.com/Ebay Israel
- GM @Microsoft
- SVP CTO @Symantec
- SVP Chief Security Strategist @CA
- CEO GoDaddy
- VP at McAfee
- VP at Bigfoot International
- CEO Broadlight (sold to Broadcom $200M)
Jeff Pulver & Jacob Ner-David
VoIP pioneer, founded Vonage, VOX, FWD, investor in Twitter and Foursquare
Founded Delta Three ($1.8B NASDAQ), founded Nomadiq
Benny Landa & Aviv Ratzman
Indigo, major global force in digital printing; HP acquisition ~$800M
Dr. Amit Goffer & Larry Jasinski
Founded Odin Medical Technologies (acquired by Medtronic)
CEO Soteira (acquired by Globus), Cortek (acquired by Alphatec)
Founded Answers.com ($127M exit), Accent Software ($400M on NASDAQ)
Founded GC Zone, Founded Popcorn Indiana (acquired by Goldman Sachs)
EitanBauch & Avi Yehuda
Collectively sold startups to Intel, F5, Salesforce.com
Founded TradeUM ($500M exit), Unicorn (acquired by IBM), Lightec (acquired by GE)
Co-Founder Magic Software (Nasdaq: MGIC)
Founded Rosetta Genomics (Nasdaq: ROSG), Pegaus Medical (acquired by McKesson)
“I am excited about the value that OurCrowd brings to early stage investors who invest in startup companies. Not only did we raise our seed round on OurCrowd in a week, but we had people from all over the world invest in Zula thanks to this platform”
Gideon Ben Zvi
Shah Capital Partners
Sue Siegel, GE Ventures CEO :“OurCrowdhas created a unique platform for dynamic early stage origination and funding. They offer a quality investment environment and the partnership will give GE increased access to early innovation.”
“The platform has been an enormous success…the ultimate win-win-win situation, brought to you by an new and improved Israel – innovative& confident.”
“The 5 Most Important New Companies You Need to Know”
“An Israeli company trying to change the way startups are funded”CNN Business 360
“Medved'slatest mission is to blow up the exclusivity around tech fundraising”
“Crowdfunding for real investors”
"The most interesting investment of the week goes to OurCrowd”Wall Street Journal
South African Business TV