Gadi mazor_crowdfunding

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Equity Crowd Funding

Gadi Mazor, General Partner and CTOOurCrowd

Capital Raised – Israel

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110

500

1000

1500

2000

2500

Israeli VCs Foreign & Other

70% growth and return to 2008 levels

$ (

million

s)

SourceIVC Research Center 2012

2009 Q1

2009 Q2

2009 Q3

2009 Q4

2010 Q1

2010 Q2

2010 Q3

2010 Q4

2011 Q1

2011 Q2

2011 Q3

2011 Q4

2012 Q1

2012 Q2

2012 Q3

2012 Q4

0

100

200

300

400

500

Series A Deals Seed Deals

# US startup financings – CB Insights 2013

The divergence’s size is remarkable. In Q3 of 2012 alone, there were 300+ more seed deals than series A fundings.

Meanwhile, commitments to venture funds are down, VCs are shrinking in both deals and $ amounts.

Where can smart

investors get behind these unfinanced

deals?

Seed deal explosio

n

Series A funding

Series A Crunch

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Equity Crowd Funding

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Growth in crowdfunding by type:

• #1 Reward-based• 524% CAGR growth

• #2 Venture capital-type crowdfunding

• 114% CAGR growth

• #3 Consumer lending (peer-to-peer lending)• 78% CAGR growth

• #4 Donation market• 43% CAGR growth

“2013’s growth will be driven by… equity based crowdfunding”- Tech Crunch 5/2012

Crowdfunding on Fire

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OurCrowd’s Focus

“How can I best invest in the

Start-up Nation?”

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Through VC or as an Angel

• Exposure to top dealflow• Professional due diligence• Legal issues/termsheets

handled by firm• Preempive/other rights

• Independence, self-selection

• Low fees• No large upfront

commitment• Relative speed and ease

OR

Investors’ traditional dilemma

BUTBUT

• 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

Venture Capital Angel Investing

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OurCrowd

A Hybrid VC – Angel Investment Model

OurCrowd provides the professionalism and experience of a venture fund and the flexibility and

choice of angel investing.

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OurCrowd - Investors

• Access to quality dealflow• Professional diligence and negotiation – rights protected• Limited to accredited investors• Aggregate investors into one entity• Manage investments, take board seats, support companies• Operate legally under today’s regulations

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OurCrowd - Entrepreneurs

• Angel money – all futures possible• Deep pockets• Streamlined process• Support of a venture fund• The crowd supports the company

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How the Process Works

200+ potentialdeals per month

Screening by investment team

Meetings with

management

Ongoing in-depth diligence

Prep

• Large volume of quality dealflow

• Startups from across the Israeli tech sector

40+deals

20+deals

5-10deals

2-3deals

Deal

#1

Deal

#2

web email referral proactive sourcing

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The 6-point OurCrowd Approach

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: We look for investments with a simple value proposition Easily understood by us AND by “our crowd”. We like technology, but we like real value added solutions

even better

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The 6-point OurCrowd Approach

4. Traction: Investing in early stage companies, but not just ideas or pre-prototype We want to see an early version of the product Traction can come in many forms: users, customers,

partners, revenues

5.Sponsorship: Investing in startups/building early stage companies is a team sport The right board, advisors, strategic partners or angels is

critical. We think partnering with other smart investors is a big

plus.

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

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Our TeamJon Medved- Washington Post: "one of Israel’s leading high tech venture capitalists”- 12 exits >$100M- Co-founder, CEO of VRNG- Founder & GP at Israel Seed Partners, $260M managed

Elan Zivotofsky- 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-director of Glencore's aluminum division- Senior executive, management committee at Glencore 1998-2012

Pini Lozowick- 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

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Our Team

Robbie Citron, CFO- 25 years of experience- Partner and CFO of Jerusalem Global Ventures- Financial Controller and Company Secretary of Hanson PLC’s Israeli branch

Evelyn Rubin- JVP – focus on semiconductor industry- Senior editor Seeking Alpha- Cipher IT- Business development at OurCrowd

Audrey Jacobs- M3 Solutions - marketing- PR international advocacy organizations- VP Investor Relations at OurCrowd’s first US office

Gadi Mazor- Serial entrepreneur- Founded 3 wireless companies- Advisory board for Blackberry- Talpiot 8200- Wireless advisor to US Senate

Crowdfunding challenges - May 2013

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Our Team

Liora Katz- Israel Seed Partners- Founding team at VRNG- Founding team at OurCrowd

David Arnovitz- Founder, VP R&D @ S1- Cofounder, Pres. SecureWare- VP Ops @ Shalem

Jay Kalish- CEO Patir Tech- VP IR @ Allot- General Counsel @ Teledata- General Counsel @ e-SIM

Zack Miller- VP BizDev at Seeking Alpha- Leadership positions with Lending Club, LearnVest, Covestor, and SigFig- Author of Tradestream Your Way to Profits (Wiley, 2010)

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Press Coverage

“5 Most Important New Companies”

Forbes Online | April 2nd

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

CNN Business 360 | April 30th

“The investment team at OurCrowd

rocks”The Next Web | February

6th

“The most interesting investment of the week goes to OurCrowd…

brought together ten seasoned investment pros to create a

crowdfunding hybrid to back Israeli startups.”WSJ| February 8th

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Press Coverage

“How do you invest in Israel without a lot of money? Try crowdfunding venture capitalists”

IBT | March 22

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Fireblade: biggest crowdfunded round

everApril 2

“5 Most Important New Companies” –

ForbesApril 2

1000+ accrediteds

May 5 $11M+

May 5

Milestones

February

May

Marc

hApril

Launch

Feb 5

$10MApr 20

325+ unique commitments

May 14First US

company funded – $1M+March 5

First follow-on

financingMarch 15

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Equity Crowd Funding

Thank You!

[email protected], 2013