March 2012
Jan 12, 2015
March 2012
On the agenda
• Vision & mission
• Israel, land of start-ups
• Investment strategy
• Portfolio
Telecom Internet Media Entertainment
“zone”
Vision
To build global media companies using the
strengths & advantages of Israeli global
leadership in the fields of hi-tech & internet
MissionTo Build 5 to 7 global independent and successful media companies
in the next 7 years
Lead Investors
Ilan Shiloah Nir Tarlovsky
$20M of “free” government funds for Investment
• 1:7 Leverage government’s investment in Israeli start-ups
• $450k of non recourse loan for every start-up, paid by the start-up
• Investing in 8-10 new companies per year
• $4-5M Available for Seed Investments every year
• $500k a year for follow up investments
• $20-25M in the next 5 years
• No debt against those funds
Since mid 2009, The Time has invested*
over $20M in 27 new start-ups
positioned today as the leading early stage investor in the country in the Time “zone” (telecom, Internet, media, entertainment)
*Including commitments
To Invest In Israel
Main source of information:• Biz Dev Israel- Research company• Israel startup guide- Information about Israeli startups• IVC’s 2009 exits report• US patent office• Bank of Israel• central Bureau of Statistics
Population (M)
Median age (years)
GDP capita (USD k)
Unemployment%
State
Israel UK
62.4
40
34,800
7.8
Israel - a western economy in the Middle East
63.1
39.9
33,100
9.3
France
46.1
40.5
29,400
20.1
Spain
81.2
44.9
35,700
7.1
Germany
60.7
43.5
30,500
8.4
Italy
7.7
29.4
29,800
5.6
Population – Euromonitor (2010)GDP, Median Age, unemplyment – CIA, World factbookIsrael Central Bureau of Statistics http://www.cbs.gov.il
“The Israeli hi-tech industry has become a huge
success, with a large amount of IPOs, second only to
the US, and high levels of innovation”
Larry Ellison, Oracle
Israel, a land of start-ups
Israel, a land of start-ups
http://www.vccafe.com/jon-meved/israel-second-largest-concentration-of-startups-per-capita-following-silicon-valley/
• 200 Israeli start ups emerge annually - more than any European
country
• Second-largest concentration of start-ups per capita after Silicon Valley
• The number of funded startups has doubled since 2000
• Up to 400 Israeli companies have branches in the US
• Among the highest number of patents per capita in the world
http://www.start-ups.co.il/
http://www.hayadan.org.il/israel-in-13th-place-in-patent-2108091/
Financial Times 30/11/11
Over 3,000 active startups in Israel
Second in number only to the USA
Biz Dev Israel
International recognition for leadership in the fields of hi-tech & start-ups
2009-2010126 Israeli companies were acquired or merged
IVC’s 2010 exits report
• Average acquisition deal size was 35M$
a dollar ratio of 3:1
IVC’s 2010 exits report
• In the last decade hi-tech companies raised $20 billion from investors
• Compared to over $50 billion of capital received through M&A or IPO exits
115 Israeli companies on NASDAQ (Total revenue of 56B$)
http://www.themarker.com/markets/1.596686
• 30 companies on various European exchanges
Some of Israel’s ‘Star’ Companies
PC Board Inspection
Flash Memory acquired by SanDisk for $1.3 bn
Generic Drugs
patient-friendly products
Telecom Billing
Voicemail
Green energy
Firewalls
Software Performance
digital solutions
management solutions
Market cap: 44.13B Market cap: 9.3B Market cap: 5.2B
Market cap: 1.6B
Market cap: 393.7MMarket cap: 447M Market cap: 1.2B
Market cap: 401M Market cap: 459M
Market cap: 1.9B
Source: yahoo finance
Strong internet players
Performance digital media group
Rich media ad server
toolbar platform instant messaging
Website builderOnline forex trading Search engine
behavioral targeting
In-text advertising
search engine Online gaming
Online gambling Digital interface
Israel is highest in R&D investment
Source: central Bureau of Statistics
National expenditure on R&D as percentage of GDP 2009
80 of Fortune 500 have R&D centers in Israel
Source : Biz Dev Israel
Global companies invest billions in Israel
Source : Biz Dev Israel
$6 B
Most have made significant investments and acquisitions in Israel
$3.1B $664M
Capital Raised by Israeli High-Tech Companies by Sectors by Year (%)
IVC 2011 YEARBOOK Israel High-Tech, Venture Capital and Private Equity Directory
Internet – the highest growing sector
!
IVA - Technology Innovation as a Magnet for Venture Investments
Many reasons for Israel’s success in the field of hi-tech
• Major R&D invested in defense & intelligence sectors in the IDF
• Highest ratio of PhDs and engineers per capita in the world
• World-class universities – Weizmann, Technion, Tel Aviv & Jerusalem,
Ben Gurion
• Favorable Regulatory Environment
• Strict international standards for protection of trademarks, patents and
intellectual property of all kinds
"Israel is a country that is hard-wired to compete in a flat world. It has a
population drawn from 100 different countries, speaking 100 different
languages, with a business culture that strongly encourages individual
imagination and adaptation and where being a nonconformist is the
norm. While you were sleeping, Israel has gone from oranges to
software, or as they say around here, from Jaffa to Java.”
Thomas L. Friedman of the New York Times
From Jaffa to Java
Investment Strategy
Diversified Portfolio/deals Telecom Internet Media & Entertainment
(8-10 new investments per year)
1
Leverage and expend OCS Funding to invest & reduce risk
(1:7)
2Business Practices- OCS
OCS - Office of the Chief Scientist (ministry of industry)
Average initial investment 400-600K$ per start- up
3
Follow-up Investment - Focus on “winners”
(1-3 every year)
4
500K- 1,000K$
Investment Criteria
A 1-3M$ investment required to become cash
flow positive
1
Digital sales directly to the end users
2
Ability & Visibility to become an independent company
3
Strong entrepreneurs that have the capacity & ability to built an
independent company
4
Portfolio
Consumer
VISUAL
TotalBooks
Add-Tech
pLURALIS
Sonana
Business Solution
Video
Business management platform for SMB• Over 750,000 registered users• 15,000 daily invoices• MorgenThaler round Completed• Business Insider top 20 global startups to watch
• thetime holdings – 15.05%
Automatic Creation of Smart Phone Apps• 2 min to convert a web-site to native app, and
publish it in all 3 major app stores• The only automatic service for Native App with
complete push notification capabilities• Over 1500 sites converted with 200,000 installations• Mobile Ad Network• Forbes – 1 of 12 candidates to be the next
• thetime Holdings – 35.5%• In a middle of a $1.6mm round
TouchTV
The remote control of the future, for connected TV• Joined R&D project with Sharp and Samsung• Finalizing Android computability• JVs with Hair, Hainsense and more are in negotiations• First PO is expected by mid 2012 (100,000s units per month)
• thetime holdings – 32% + an option for 7.4%• Looking for a new $1-2mm round
Bot and Hackers detection for sites• Paying customers include – all major Israeli sites,
eBay (Denmark and NL), monster.com and others• Israel Levy (ex CEO of CA IL) is the Chairman• Long tail product to be launched Q2 2012
• Thetime holdings – 25% + 5.2% option• Looking for a $1-2mm round
Audience verifications• Cookie free behavioral capabilities based on
breaking through technology• The only audience verification service available• Strategic investment by MediaMind• Negotiations with Nielsen for commercial
implementation
• thetime holdings – 24%
Empowering Publishers
Real Time 2D to 3D conversion• Commercially implemented in Israel• Discussions for commercial implementation with 10
major leagues• VizRT strategic partner• 2012 is expected to be the breakthrough of home 3D
• thetime holdings – 29.3%• Looking for a new $2-3mm round
A shared trainingexperience for distant teams and mangers• A breakthrough combination of social gaming,
virtual worlds and measurable data analysis.• Sales to major IL enterprises.• Next – global expansion
• thetime holdings – 37.5%• Looking for a $1-2mm round
Market Neutral Stock Trading• Stockpair is an innovative online platform for Pair
Options trading. • Pair Options are based on the comparative
performance of the stocks, so the general market direction, up or down, does not matter.
• thetime holdings – 23.5%
Radiation level alert on smart phones• Around 200k downloads for BlackBerry and Android
phones.• In discussions with France Telecom for a pre-
installed application
• thetime holdings – 29% + 7.8% option
Social Commerce Platform• Revolutionizing eCommerce, focusing on media
content – music, games, • Helping brands direct market to their fans via social
media and utilizing them as sales channels to their friends
• Commercial agreements (in various stages) with Warner Music, Universal, Disney and more
• thetime holdings – 30.3% + 9.2% option• Looking for a $1-2 mm round
Long Term Saving Discovery and Management• Discovery of “lost” long term saving plans• Management and Benchmarking • Soft Launch in Israel. Great market acceptance• Next step penetration to Europe• Very high User Value
• thetime holdings – 30.6% + 8.2% option• Looking for $1-2mm round
Investment Stages
Thank You