New Opportunities for Direct Investment: Life Beyond VCJon MedvedCEO, OurCrowdPrepared for DC Finance Annual Family Office & Wealth Management Conference

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Massolution: Crowdfunding portals will raise $5.1 billion in 2013 – nearly double the amount raised in 2011

• Consumer Lending• Rewards-based• Donations• Venture Capital

Market Disruption: Crowdsourcing in Finance

Source: Deloitte TMT Predictions 2013 “Let's get together: crowdfunding portals bring in the bucks”

“Venture capital-type crowdfunding is the wild card for 2013. It could raise more than a billion dollars …”

Source: Massolution Crowdfunding Industry Overview 2013

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The recent acquisition of Oculus raises questionsReward-based crowdfunding: Where is the Reward?

Now investors are asking why do I

only get a tshirt?

Andreesen, Spark, Matrix Partners back Oculus Rift with $75M Series B… then Facebook acquires the company for $2BDecember 2013 … March 2014After raising $2.4M from Kickstarter, Oculus Rift gets the attention of major investors

Naturally, this plays into the rise of equity

crowdfunding platforms

Pays $2B for company and Original crowd funders get nothing

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Angel Investing Venture Capital

• Legal issues/termsheets handled by firm• Exposure to top dealflow• Professional due diligence• Preemptive/other rights

• Independence, self-selection• Low fees• No large upfront commitment• Relative speed and ease

• Large Commitment• Hefty management fees• Carried interest fees• No control, no choice

• Very limited dealflow• Term sheet negotiations• Limited due diligence capabilities• No protection, no rights

OurCrowd offers the professionalism and experience of a venture fund, plus the flexibility and choice of angel investing

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Global leader in equity crowdfunding, just 15 months after launching Raised over $50M for 40 companies 20 companies with over $1m raised, 2 deals over $3M First follow-on deal funded in 4 hours, 14 follow-on deals on OurCrowd,

with 16 of our portfolio doing follow-ons total High-quality, continually improving pipeline of new & international deals 5000 Accredited investors, 500 active Average active investor committed to almost $100K on site Experienced investment team - 150 years combined VC experience Portfolio companies doing very well

OurCrowd Overview

“Crowdfunding for real investors” (TheStreet.com)Growing Differentiation from the rest of the pack

• Currently Selecting 2% of the deals we are pitched• 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

OurCrowd’s Investment Model

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Accredited Investors

Management

OurCrowd International

(GP)OurCrowd

management company

OurCrowd investment

vehicle

GP

Special Purpose Vehicle

Control

Portfolio CompanyInvestment

OurCrowd’s Portfolio

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Enabling paraplegics to walk

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

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Feeding the world: water

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

Israeli water tech impactDid you know that Israel is recognized by the OECD, WWF, and UN for being a water tech powerhouse?

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Fighting the most deadly killer: malaria

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.

Israel’s interdisciplinary strengthsSight Diagnostics represents the convergence of two key Israeli strengths: life sciences/biology and machine vision/advanced algorithms

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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.

Saving lives by learning from Israel’s experienceCase study: Chilean earthquake ‘14

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VocalZoom

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.

Technology implementation update

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.

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Consumer Physics (SCiO)

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 - $1.2M in preorders

Product launch on Kickstarter at $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.

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Zula

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)

Founders are giants in the comm. space

Above: Jeff Pulver, Chair & Jacob Ner-David, CEOJacob 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.

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Highcon

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 expertise in digital printing

Israeli entrepreneurs brought Scitex, Jemtex Printing, 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.

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MUV

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.

A look at MUV’s product

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.

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Takes

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.

Israeli expertise in computer vision

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.

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Curiyo

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.

Early traction with major publishers

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.

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NextPeer

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.

Evaluating NextPeer’s virality

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, NextPeer is able to “latch onto” the growth of viral games like 2048n or Candy Crush and grow as the games pick up gigantic user bases.

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Parko

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.

Technology’s applications

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’s predictive map to include estimated parking time.

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Nativeflow

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.

Experienced, successful management team

Nativeflow’s management team has a history of success in the security space. CEO Eitan Bauch was co-founder of and sold Navajo Systems to Salesforce, was CEO of Magnifire, which was sold to F5.

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Co-investing with leading investor groupsTop-tier funds and institutional investors

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Co-investing with leading investor groupsTop-tier funds and institutional investors

* Investor opting for anonymity

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OurCrowd’s Leadership TeamJon Medved Co-Founder & CEO Washington Post: "one of Israel’s leading high tech

venture capitalists” 12 exits >$100M Co-founder, CEO of VRNG Founder & GP Israel Seed Partners, $260M AOM

Elan Zivotofsky General Partner Investments 15yrs experience in Israeli investing Managing Partner at Prelude Israel Former Head of Technology Banking, Lehman Brothers

Israel Top-ranked Israeli tech research analyst for Goldman

Sachs

Steven Blumgart Co-Founder & Chairman Co-director of Glencore's aluminum division Senior executive, management committee at

Glencore 1998-2012

Pini Lozowick General Partner General Partner at Alta Berkeley Among first employees at Broadcom, Dir.

Marketing Chairman of Provigent Founder and GM of Verisense 5 exits; total value $3B

Geoff Levy Chair of Advisory Committee Extensive experience in law, banking and investing Non-Executive Chairman of Monash Private Capital,

Specialty Fashion Group and Cromwell Property Group Non-Executive Deputy Chairman of Investec Bank

(Australia) Limited

Gadi Mazor General Partner & CTO Serial entrepreneur in mobile/wireless US Senate Advisory Board RIM entrepreneur of the year 2013 Ex-8200

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OurCrowd’s Leadership TeamEvelyn Rubin, BizDev PartnerJVP, Senior Editor @ SeekingAlphaZack Miller, Investor CommunityVP Biz Dev @ SeekingAlphaRobbie Citron, CFOPartner @ Jerusalem Global VenturesJay Kalish, SVP & General CounselVP IR @ Allot, CEO Patir Tech

Audrey Jacobs, VP BizDev

M3 MarketingDanna Mann, Biz. Strategies PartnerBiz Dev at JVPDavid Stark, dealflowBlackstoneDavid Arnovitz, COOFounder of S1 and Secureware

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Mentor Program

Eli Campo- GM Israel @ LivePerson (NASDAQ LPSN)- SVP @ Shopping.com/Ebay Israel

Raanan Gewirtzman- CEO Broadlight (sold to Broadcom $200M)

Profile Role Role in companies Relationship- seasoned entrepreneurs- experience with board seats

- active role in diligence- pre-funding review of companies

- directors in OC companies- also availability for consultation

- biannual mentor-company event started June 27th

Some recently joined mentorsDov Rubin- Co-founder of NDS (sold to Cisco, $5B)- CEO Itamar Medical

Ron Moritz- GM @Microsoft- SVP CTO @Symantec- SVP Chief Security Strategist @CA

Mike Berman- President Cardiology @ Boston Scientific- Serial entrepreneur in medical device space

Warren Adelman- CEO GoDaddy- VP at McAfee- VP at Bigfoot International

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6 Key Investment Criteria

Great TeamAddressable MarketSimple Value PropositionValueSponsorshipTraction

1. Great team: Successful startups are founded by great people.

We pay special attention to successful serial entrepreneurs.

2. Market: The startup must address huge market growing like a weed.

No arcane ideas addressing niche markets.

3. Easy to understand: a simple value proposition.

Easily understood by us AND by “our crowd”.

4. Traction: Investing in early stage companies, but not just ideas or pre-prototype.

Early product, users, customers, partners & revenues

5. Sponsorship: Investing in startups/building early stage companies is a team sport.

Board, advisors, smart investors

6. We seek “deals” and are value-sensitive.

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Serial Entrepreneurs/Strong Backgrounds

Bob Rosenschein

Founded Answers.com ($127M exit), Accent Software ($400M on NASDAQ)

Dr. Amit Goffer & Larry JasinskiFounded Odin Medical Technologies (acquired by Medtronic)

CEO Soteira (acquired by Globus), Cortek (acquired by Alphatec)

Jeff Pulver & Jacob Ner-DavidVoIP pioneer, founded Vonage, VOX, FWD, investor in Twitter and Foursquare

Founded Delta Three ($1.8B NASDAQ), founded Nomadiq

Benny Landa & Aviv RatzmanIndigo, major global force in digital printing; HP acquisition ~$800M

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Serial Entrepreneurs/Strong Backgrounds

Richard Demb

Founded GC Zone, Founded Popcorn Indiana (acquired by Goldman Sachs)

Eitan Bauch & Avi YehudaCollectively sold startups to Intel, F5, Salesforce.com

Zvi SchrieberFounded TradeUM ($500M exit), Unicorn (acquired by IBM), Lightec (acquired by GE)

Benny RosenbaumCo-Founder Magic Software (Nasdaq: MGIC)

Isaac BentwichFounded Rosetta Genomics (Nasdaq: ROSG), Pegaus Medical (acquired by McKesson)

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Customers

Distributors

Partners

Other markets

Press contacts

Next round funding, venture debt, loans, equity

Not just capital – we’re creating opportunities“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”Jeff PulverCo-Founder, Zula

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Co-investing with leading angel investors

Gigi Levy888Amdocs

Moshe LichtmanMicrosoft

Rami LipmanMicrosoft Israel

Benny LandaIndigo

Yigal JacobyAllot Communications

Ajay ShahSilverlake SumeruShah Capital Partners

Gideon Ben ZviBriefcam

Tzachi SultanClal Underwriting

Mort MeyersonDellEDS

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Announcing Strategic Co-Investment Agreement with General Electric Ventures

Sue Siegel, GE Ventures CEO :“OurCrowd has 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.”

• GE will co-invest with OurCrowd in select early stage companies in the areas of energy, healthcare, software and advanced manufacturing

• Investing on the same terms as our members/investors.• First time major corporation has made such a commitment to an

equity crowdfunding platform• Huge validation for OurCrowd.

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Press Coverage

“The 5 Most Important New Companies You Need to Know”Forbes Online

“An Israeli company trying to change the way startups are funded”CNN Business 360

“Medved's latest mission is to blow up the exclusivity around tech fundraising”Bloomberg BusinessWeek

"The most interesting investment of the week goes to OurCrowd”Wall Street Journal

“The platform has been an enormous success…the ultimate win-win-win situation, brought to you by an new and improved Israel – innovative & confident.”Haaretz

“Crowdfunding for real investors”thestreet.com

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Press Coverage in 2013

South African Business TV

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Press Coverage in 2014

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Summary

Meeting a demand for a better online way to invest in startups Platform works—Raised record sums ($50M+) for 40 companies online Industry-leading performance to date – worldwide leadership Strong Israeli base, global investor reach into 60 countries, 30 active countries Over a third of our recent deals originate from outside Israel Recruited industry-leading team Strong and impressive initial portfolio 16 companies have completed additional funding rounds after initial funding Have provided real value-add for our startups Achieving strong traction in a gigantic market