Israel High Tech is on Fire - You can participate too

Israel High Tech is on FireApril 6, 2014

BROWSEINVESTMENTS

FOLLOWAN ANGEL

CREATEA PORTFOLIO

2011 2012 2013 Source: PwC, Globes, IVC, publicly available information

Israel High Tech is on FireIsrael’s tech industry producing strong returns for investors

100 companies - $5bn 81 companies - $10bn 80 companies - $7bn

Israel invests about 4.3% of its GDP in R&D, the highest ratio of any country in the world

Average amount invested in Israeli high tech a year

in the world for highest density of technology startups per capita with 3,500-4,000 active startups1

in the world for technological patents per capita

venture funding per capita than in the US, 30x Europe, 850x China

nobel laureates since 2002 – the 5th highest total of any country during that period

in the world for highest ratio of engineers per capita

Interesting Facts About the “Startup Nation” Did you know that…

6

Source: IVC, KPMG, publicly available information(1) out of which ~2,000 have been funded

$2billion

Source: Israel’s Ministry of Industry, Trade and Labor

Northern Region

Jerusalem Region

Southern Region

Haifa Region

Tel Aviv

Haifa

Tel Aviv

Jerusalem

Be’er Sheva

Significant Presence of Global Technology Companies Top Global Technology companies feel comfortable to buy in Israel

First VC investment outside of the US, employing 1,100 Israelis

First R&D facility outside the US, employing 600 Israelis

First R&D facility outside the US

Motorola's Israel facility is the company‘s largest development center worldwide, employing 1,000 Israelis

Intel has 4 R&D facilities and 2 manufacturing centers in Israel, employing 7,000 Israelis

Google opened two R&D centers in Israel

First R&D facility outside the US

Has eight major R&D facilities in Israel (Indigo, Scitex, Mercury, Nur and others), employing 6,000 Israelis

Three acquisitions of Snaptu, Face.com and Onavo with the latter establishing first R&D center in Israel

Company Number of R&D Employees in Israel

Sector

Cisco 1,000+ Software

Applied Materials 1,000 Capital Equipment

SAP 800 Software

Freescale 570 Semiconductors

GE (Healthcare) 400 Medical Equipment

Growing number of R&D centers has made Israel a prime M&A market for strategic buyers

~300 foreign companies have established R&D centers in Israel, employing over 50,000 personnelSource: IVC, KPMG, publicly available information

Significant Presence of Global Technology Companies

Israel High Tech Landscape

Source: Publicly available information

Israel Leadership in Software

Enterprise

Leader in billing, revenue, customer and work force management software applications

Intent based and corporate surveillance software for a wide range of industries

“Big data”, data management, mining and control

Security

World leader in firewall development, management and control

Privileged identity management and network access control

Innovative methods to control and track documents

Security risk compliance management systems

Financial

Electronic platforms and software products for derivatives and forex trading

Software for management and optimization of insurance and reinsurance companies

Digital wallet and electronic payment applications

Mobile

Device management, mobile virtualization and testing

Contextual marketing delivery platforms, idle screen management and push messaging software and applications

Variety of VOIP applications and platforms

SaaS

Project management and internal business unit collaboration software

Network virtualization, proof of concept demos and recovery simulation

ERP testing, implementation and upgrades

Israel High Tech Landscape

Source: Publicly available information

Israel Leadership in Other High Tech Sectors

Comm Tech

IP service optimization and Deep Packet Inspection (DPI) technology

Application delivery and application security solutions

High performance Flash SSD storage applications and memory modems

High definition video up-linking technology

Semis and Electronic

s

Interconnect products for telecom infrastructure equipment

Ethernet network processors and network processing chips

LTE baseband chipsets

Advanced driver assistance technology, wireless charging , touch screen technologies and video networking equipment

Licensing silicon intellectual property (SIP)

Motion Sensor

Companies

Advanced 2D and 3D machine vision technologies and motion sensor technologies

Touch free interfaces for consumer electronics

Both hardware and software applications/solutions

OTT Technolog

y

Wireless high-definition interface (WHDI) chipsets, modules, and reference designs

Cloud-based DVRs and OTT Video solutions

Telco-grade infrastructure specifically for HDTV cloud streaming services

Source: IVC Research Center, Thomson Reuters, Publicly available information

IPO (Public Markets)

Private Equity

Growth / Crossover Funds

Corporate Venture Capital

Venture Capital

Israeli Foreign

Angel/Micro VCs (Seed)

Angels Micro VCs Accelerators

Zohar Gilon Yossi Vardi Gigi Levy Yariv Gilat David Assia Tal Barnoach Rami Lipman

Zohar Zisapel, Yehuda Zisapel

Yair Goldfinger Mori Arkin Guy Gamzu Moshe Lichtman Rafi Gidron

Office of the Chief Scientist

Inimity LY Ventures Startup Factory AfterDox 2B Angels WeKix

EISP 8200 Dreamit Israel Google Israel

Entrepreneurship Center

Microsoft Windows Azure Accelerator

Innodo Nielsen Innovate

$90,000,000Nov-2011

$117,000,000Feb-2007

$400,000,000Feb-2007

$78,000,000Nov-2006

$142,000,000Oct-2004

$106,800,000Oct-2007

$47,500,000Oct-2006

Israel High Tech Funding OverviewFunding Overview

The ChallengeGreat early stage investment opportunities in Israel but only a limited pool of investors

AngelsClosed and exclusive angel network receiving all the early stage deal flow and enjoying the benefits

Private InvestorsHighly difficult for investors worldwide to participate in this asset class due to remote access and no professional guidance

StartupsAbundant exciting investment opportunities coming out of “Startup Nation”

iAngels - Empowering the next generation of angel investing

Opening up Israel’s closed early stage ecosystem to “non-insiders” through a premium online angel investing platform that combines:

Allowing private investors to invest in Israeli startups in a managed, structured and transparent way by following leading angels

The Solution

Why Invest with iAngelsKey Highlights

Highlights Description

Investing in Israel Tech can be lucrative

Israel is the “Startup Nation” with many exciting high tech investment opportunities providing significant investment returns year over year

Current trends make it attractive to invest in early stage Israeli high tech

Coinvestment with professional angels

iAngels coinvests with leading angels and thought leaders of the Israeli high-tech industry

All investment opportunities are sourced from active lead investors that have made a substantial monetary and personal commitment towards the portfolio company

All our lead angels have strong operational backgrounds and investment track records providing invaluable added value to the portfolio companies

Compelling value proposition

Access to an attractive inaccessible asset class

Social investing promotes transparency, increases connectivity, and leverages the wisdom of crowds

Premium product enhances and simplifies startup investing

1

2

3

2014 expected to be a record year with a significant IPO pipeline

Investing in Israel Tech Can be LucrativeNumber and size of exits in Israel are increasing

2014 Notable Exits YTD

IPO Pipeline

1

Coinvestment with Professional AngelsOur exclusive angel network provides and prescreens all the investment opportunities

Due to their reputation for repeated success, they get first dibs on almost all the early stage deal flow in the Israeli market. No other equity

crowdfunding platform in the world has this kind of visibility into the Israel early stage investing scene .

2

Our lead angels are chosen based on

Proven track record and exit history

Years of operational and transactional experience

Proprietary deal flowThought leadership and

expertise in certain sectorsAdded value to portfolio

companies

The angels choose us because of

Longstanding relationships over many years

Many of our angels share our vision and have invested directly in iAngels

An efficient way to bring many investors into the company with one vehicle representing them all

With a limited capital commitment, you can create your own VC portfolio of Israeli startups backed by prominent angel investors and VCs – the typical amount required to invest in 1 startup or 10% of the amount required to invest in 1 VC fund

Invest Alone

Invest in a VC Fund

Ability to Choose Diversification Access to Curation Investments Opportunities

Compelling value propositionEnjoy the best of all worlds

3

Alternatives for aPrivate Investor

Crowd Funding

The iAngels TeamStrong management from diverse technological and business backgrounds

Mor AssiaFounding PartnerAmdocs Corporate Strategy & Development AssociateSAP Technology Business Development AssociateIBM Global Business Services, Strategy teamMBA, Columbia University, NYBA in Mathematics and Computer Science, Technion

Shelly Hod MoyalFounding PartnerGoldman Sachs Investment BankerAvenue Capital Research AnalystUBS Financial AdvisorMBA Candidate, Kellogg Recanati BA (Summa Cum Laude) in Economics, Hunter

Mirella Levy TawilCMO and Associated PartnerNet Group Media Founder

888 Advertising Director Europe and Latin AmericaBA, in International Relations, UDLASpeaks English, Hebrew, Spanish, Italian and French

David PaluyCTOConduit Consultant and Team MentorEzov Ltd. Founder and ConsultantOktako Co-FounderMBF Hedge Fund Co-FounderSoftware Engineer at NDS TIBSc in Computer Science, Hadassah Jerusalem College