crowdfunding the next generation of israeli & global startups

Funding Start-Ups

Gadi MazorGeneral Partner and CTO

OurCrowd

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

500

1000

1500

2000

2500

3000

3500

Israeli high-tech capital raising

Israeli VCs Foreign Investors

$100

m

# of investments of Horizons Ventures (李嘉诚 )

Canada220

Israel

134China192

USA7600

France, 8

Germany, 10

Switzerland, 14

UK, 11

Korea, 1

Japan, 1

India, 14

5

02468

1012141618

0102030405060708090100

16.4

0.52 1.1 1.9 2.7

10

3.5 2.7 2.61.2

5 5.57.6

63

25

60

5862

79

93

8884

73

23

63

50

80

Volume # of DealsM&A

1st 2nd 3rd 4th

Total Expenditureon R&D

Finland Sweden Japan

Flexibility & Adaptability

Hong Kong Australia Brazil

Entrepreneurship of Managers

Malaysia Colombia Taiwan

Availability of Scientists

and EngineersJapan USA India

VentureCapital Availability

USA Hong Kong Taiwan

Info Technology Skills

Iceland Denmark Sweden

The Yozma government plan (1993)• 1-1 matching• Buy back option

Results:• 2 funds @ 10m each to 10 funds >20m in 3

years• Currently 70 local funds (14 international)

+ 220 active international funds• 58m in 1991 to 3.3b in 2014

1993 vs. 2014

crowd·fund·ingnoun \ˈkra d-ˌfən-diŋ\u̇�Definition of CROWDFUNDINGthe practice of soliciting financial contributions from a large number of people especially from the online community

Donation

Equity Debt Reward

Democratization of Funding

Equity crowd funding types:• Diligence and management: • Platform (none)• Angel• Fund

• Investors: • Accredited• Unaccredited (retail)

VC:Top deal flowProf. due diligenceLegal dealt withRights protected

Large commitmentHefty feesNo control

Angel:LimitedLimitedNeed to deal withCommon shares

NoneLow feesSelf-selection

OurCrowd:Top deal flowProf. due diligenceLegal dealt withRights protected

NoneLow feesSelf-Selection

13

200+ potentialdeals per month

Screening by investment team

Meetings with management

Ongoing in-depth diligence

Prep

40+deals

20+deals

5-10deals

2-3deals

Deal#1

Deal#2

web email referral proactive sourcing

13

Register and accredit online

Browse startups

Review diligence research

Invest a min. of $10K per company

Track your holdings

Crowdbuilding

15

Entrepreneur:Angel moneyDeep pocketsStreamlined processSupport of a venture fundCrowd support

16

5,500 investor

s

$32,000 average per investor per

company

> 4 investments per active investor

52 companies

funded$500k-4.5m

per company

$70m invested

17

OurCrowd:

Legal dealt withRights protected

No commitmentLow feesSelf-Selection

Channel Partner:Top deal flowProf. due diligence

Promise to Investors:Top deal flowProf. due diligenceLegal dealt withRights protected

No commitmentLow feesSelf-Selection

How do we scale internationally?

Thank You!

Gadi MazorGeneral Partner and CTO

OurCrowdgadi@ourcrowd.com