Equity CrowdfundingChanging the world of innovation finance

Dan Bennett – Managing DirectorFOSS session, January 2015

Ashley Krongold – General PartnerOctober 2015

Equity CrowdfundingChanging the world of innovation finance

Dan Bennett – Managing DirectorFOSS session, January 2015

1. Global VC over Equity Crowdfunding

2. Who we are and our approach to investment

3. OurCrowd’s Portfolio Snapshot

4. The Opportunity

5. OurCrowd Team

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

• Over $16 billion in 2014 raised!!!• The World Bank estimate places global

crowdfunding at $95B by 2025

Consumer Lending Rewards-based Donations Venture Capital

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Market Disruption: Crowdsourcing in Finance

Source: Deloitte TMT Predictions 2013 “Let's get together: crowdfunding portals bring in the bucks”Source: World Bank “Crowdfunding’s Potential for the Developing World”

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 (virtual reality headset) 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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Our Story of Consumer Physics (SCiO) – multiple CF uses

Miniaturized spectrometer, allowing for the first hand-held molecular sensor.

Applications: measuring nutritional information in foods, allergens, authenticating precious metals and leathers, etc.

https://www.kickstarter.com/projects/903107259/scio-your-sixth-sense-a-pocket-molecular-sensor-fo

The Story of Consumer Physics (SCiO)

Khosla VenturesCo-founder, Sun MicrosystemsGP, Kleiner Perkins

Dov MoranM-Systems, acquired by SanDisk for ~$1.5B

Menahem KaplanGlobal CTO, Alcatel-Lucent $5B optical business

Co-investors:

Crowdfunded seed round on OurCrowd - $375k raised | 2013

The Story of Consumer Physics (SCiO)

Crowdfunded seed round - $375k raised | 2013

Launched consumer product on Kickstarter in 2014

Product launch - $2.8M 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, CNN, Bloomberg, Forbes, BBC, Fox, Gizmag, TechCrunch

Opened follow-on via OurCrowd –raised $3.3M within two weeks

Equity CrowdfundingChanging the world of innovation finance

Dan Bennett – Managing DirectorFOSS session, January 2015

1. Global VC / ECF Platform – over half investments in Israel, why?

2. Who we are and our approach to investment

3. OurCrowd’s Portfolio Snapshot

4. The opportunity

5. OurCrowd Team

$220M+invested10,000+

members80+Companiesin portfolio

120+countries 33

Up-rounds

Co-investors

0Failures

The largest ECF platform in the world!

Global leader in equity crowdfunding

Almost $220M raised for platform and portfolio

Raised $175M for over 70 companies

30+ companies with over $1m raised, ten over $3m, seven at or

greater than $4m, two at $8m and one over $10m

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OurCrowd - Who are we?

3000+ companies per year

Open the deals to the crowd

Researching and selecting only the best

OurCrowd invests its own money

A hybrid of venture capital and crowdfunding

“Crowdfunding for real investors” (TheStreet.com)

Currently Selecting 1-2% of the deals pitched (circa 350 a month)

We always Co-invest with crowd (up to 10% of round)

Sophisticated and selected investors only

We mentor our companies and take board seats

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We offer the professionalism of VC and flexibility of Angel investing

Venture Capital Angel OurCrowd

Access to Deal flow Top deal flow Limited Top deal flow

Due diligence Professional Limited Professional

Legal Dealt with Need to deal with Dealt with

Rights Protected Common shares Protected

Commitment Large No No

Fees Heavy No Lower than VC

Discretion/Choice No Yes Yes

Selection of OurCrowd companies

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Key Investment Criteria

Great Team

Addressable Market

Simple Value

PropositionValue

Sponsorship

Traction

1. Great team Smart and/or serial

entrepreneurs

2. Market: Address a huge market

Large opportunities

3. A simple value proposition. Easily understood by us

AND by “our crowd”.

4. Traction Round A: Early

product, users, customers & revenues

5. Sponsorship: Board, mentor, advise,

smart investors

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

Diversification across stage

Seed roundIdea phase

Series C-D RoundsPOC, sales & revenue

Series A-B RoundsR&D, early sales

Cleantech5%

Cloud/Storage3%

Communications5%

Consumer6%E-Commerce

7%

Gaming4%

IT Security / Fintech9%

Internet12%

Medtech Health15% Mobile

11%

Other5%

Optics/Semis2%

Social Media8%

Software8%

Diversification across sectors

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18

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$10.000

Equity CrowdfundingChanging the world of innovation finance

Dan Bennett – Managing DirectorFOSS session, January 2015

1. Global VC / ECF Platform – over half investments in Israel, why?

2. Who we are and our approach to investment

3. OurCrowd’s Portfolio Snapshot

4. The opportunity

5. OurCrowd Team

Exoskeleton deviceAdvanced robotics allowing paraplegics to stand, walk &

climb stairs.

Best performing IPO on NASDAQ 2014

https://www.youtube.com/watch?v=2Xd27c-pz4Y

New Zealand Feeding the world

Mobile app that enables farmers to control water use.

CropX– 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” – Angel Gurria, OECD Chair

NZ / Israeli water tech impact

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Wireless Electricity• CEO Meredith Perry: Forbes’s ‘30

Under 30: Energy’ list and Fast Company’s ‘100 Most Creative People in Business’

• Energy from a wall outlet and uses ultrasound to project a focused beam of invisible energy

• 25+ patents, $7-10 billion market, e.g. hotels, airlines and mallsCO-INVESTORS:

Global Kinetics – Medical Care

• Technology for movement disorder (e.g. Parkinsons)

• Accelerometer / algorithms optimise delivery of medication

• Used in 130+ clinics with relevant regulatory approvals (CE, FDA etc)

OurCrowd has closed Australia’s largest ever equity crowdfunding round for $1.5 million” 19.05.15

Fighting the most deadly killer: malaria

Malaria has killed millions in the past decade

SightDX’s computer vision technology reduces the time to diagnose from several hours to minutes

Israel’s interdisciplinary strengths

Sight Diagnostics represents the convergence of two key Israeli strengths: life sciences/biology and machine vision/advanced algorithms

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Identifying fraud through mouse/keyboard/touchscreen input monitoring which has 450 identifications that you are the user

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Biometric security for the army now for civilians

Keeping the public safe

Video synopsis software to turn hours of footage into a short clipAdvanced video analysis algorithms

allow searching by color, direction of motion, size or speed of objects, and more

The ability to review a day of footage in a minute!

Case study: Boston Marathon BombingProblem: Law enforcement had thousands of hours of footage from throughout the city.

Solution: BriefCam’s software allows review of hours of footage in short scenes displaying all “actions” on top of each other.

Hi-tech air treatment

enVerid delivers a patented air treatment system using submarines / space stations tech

Saves energy (up to 40% in existing US and Israeli buildings).

enVerid was recently awarded a $2.4m grant from the US Dept of Energy to accelerate market adoption.

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Putting your surgeon in the cockpit

Applying the science of flight simulation to advanced CT/MRI imaging tech

The only FDA-approved player in its market

Reducing surgical errors and costs with F-16 simulator technology

Surgical Rehearsal Platform: highly differentiated Israeli military tech

Surgical Theater’s core technologies are powered by the military technologies pioneered by its founders, Moty Avisar and Alon Geri, with the medical help of Dr. Warren Selman featured on CNN here

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Co-investing with leading angel investors

Gigi Levy888Amdocs

Benny LandaIndigo

Ajay ShahSilverlake SumeruShah Capital Partners

Peter ThielPayPal

Li Ka-ShingHorizon Ventures

Eric SchmidtGoogle

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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

Equity CrowdfundingChanging the world of innovation finance

Dan Bennett – Managing DirectorFOSS session, January 2015

1. Global VC / ECF Platform – over half investments in Israel, why?

2. Who we are and our approach to investment

3. OurCrowd’s Portfolio Snapshot

4. The opportunity

5. OurCrowd Team

1. Cherry pick: accredit online and select individual companies

2. Portfolio Reserve: Create a diversified portfolio.

3. Corporate Partnership

You can choose to invest in three ways

You always invest alongside OurCrowd investing its OWN capital

Equity CrowdfundingChanging the world of innovation finance

Dan Bennett – Managing DirectorFOSS session, January 2015

1. Global VC / ECF Platform – over half investments in Israel, why?

2. Who we are and our approach to investment

3. OurCrowd’s Portfolio Snapshot

4. The opportunity

5. OurCrowd Team

OurCrowd’s Leadership Team

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

Brothers Israel and top analyst at Goldman

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

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

Evelyn Rubin BizDev Partner Sr Associate JVP Dir BizDev at CipherIT Sr Editor, Seeking Alpha

Jon 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

Danna H Mann Partner, Head of Investor Rel. Global Marketing, Estee Lauder VP BizDev, JVP Properties Kellogg-Recanati EMBA

Dan Bennett MD Australia 12+ years in corporate finance and venture capital Former Aust. General Counsel – Babcock & Brown

fund Structuring financial products in $13B investment

house in Mayfair, London

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

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

(Australia) Limited

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

Glencore 1998-2012