Equity Crowdfunding

Changing the world of innovation finance

DanKrongold
Ashley Bennett––General
Managing Director
Partner
FOSS session,
October 2015 January 2015
 1. Global VC over Equity Crowdfunding
Equity Crowdfunding
2. Who we are
Changing theand our approach
world to investment
of innovation finance
3. OurCrowd’s Portfolio Snapshot

4. The Opportunity

5. Dan Bennett Team

OurCrowd – Managing Director
FOSS session, January 2015
Market Disruption: Crowdsourcing in Finance
• 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

Source: Massolution Crowdfunding Industry Overview 2013

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”

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

Pays $2B for company and

Original crowd funders get nothing
Andreesen, Spark, Matrix Partners back Oculus
Rift (virtual reality headset) with $75M Series B,
then Facebook acquires the company for $2B
December 2013 … March 2014
After raising $2.4M from Kickstarter, Oculus
Rift gets the attention of major investors

Now investors are Naturally, this plays into

asking why do I the rise of equity
only get a tshirt? crowdfunding platforms

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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
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The Story of Consumer Physics (SCiO)

Co-investors:
Khosla Ventures
Crowdfunded seed round on Co-founder, Sun Microsystems
GP, Kleiner Perkins
OurCrowd - $375k raised | 2013
Dov Moran
M-Systems, acquired by
SanDisk for ~$1.5B

Menahem Kaplan
Global CTO, Alcatel-Lucent $5B
optical business
The Story of Consumer Physics (SCiO)
Product launch - $2.8M in preorders

Crowdfunded seed round - $375k

raised | 2013

Launched consumer product on

Kickstarter in 2014
Opened follow-on via OurCrowd –
raised $3.3M within two weeks
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
 1. Global VC / ECF Platform – over half investments in Israel, why?
Equity Crowdfunding
2. Who we are
Changing theand our approach
world to investment
of innovation finance

3. OurCrowd’s Portfolio Snapshot

4. The opportunity
Dan Bennett – Managing Director
5. FOSS
OurCrowd Team 2015
session, January
 The largest ECF platform in the world!

$220M+ 120+
10,000+ invested countries 33
80+ members Up-rounds
0
Companies
in portfolio Failures
Co-investors
OurCrowd - Who are we?

 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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 A hybrid of venture capital and crowdfunding

3000+ companies Researching and OurCrowd invests Open the deals

per year selecting only the best its own money to the crowd
 “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
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

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Selection of OurCrowd companies
Key Investment Criteria 1. Great team
 Smart and/or serial
4. Traction entrepreneurs
 Round A: Early
product, users, Traction Great Team
customers &
revenues 2. Market: Address a huge
market
Addressable  Large opportunities
Sponsorship
Market
5. Sponsorship:
 Board, mentor, advise,
smart investors Simple
Value Value
Proposition 3. A simple value proposition.
 Easily understood by us
AND by “our crowd”.
6. We seek “deals” and are value-sensitive.

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Diversification across stage

Seed round Series A-B Rounds Series C-D Rounds

Idea phase R&D, early sales POC, sales & revenue
Diversification across sectors
Other Optics/Semis
Medtech Health 5% 2%
15% Mobile Social Media
11% 8%
Software
Internet 8%
12%
Cleantech
5%

Consumer
E-Commerce Cloud/Storage
6%
7% 3%
IT Security / Fintech
Communications
9%
5%
Gaming
4%

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18
$10.000

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 1. Global VC / ECF Platform – over half investments in Israel, why?
Equity Crowdfunding
2. Who we are
Changing theand our approach
world to investment
of innovation finance

3. OurCrowd’s Portfolio Snapshot

4. The opportunity
Dan Bennett – Managing Director
5. FOSS
OurCrowd Team 2015
session, January
 Exoskeleton device
Advanced 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
NZ / Israeli water tech impact

Mobile app that enables farmers

to control water use.
Israel recycles 75% of its water, #1 in the world. By

CropX– the world’s most comparison, #2, Spain, recycles just 11% of its water.

affordable water “Israel should be proud of being at the forefront of

green innovations” – Angel Gurria, OECD Chair

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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 malls
CO-INVESTORS:

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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
Israel’s interdisciplinary strengths

Sight Diagnostics represents the convergence of two key

Israeli strengths: life sciences/biology and machine
vision/advanced algorithms

Malaria has killed millions in the past

decade

SightDX’s computer vision technology

reduces the time to diagnose from
several hours to minutes

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Biometric security for the
army now for civilians

Identifying fraud through

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

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Keeping the public safe
Case study: Boston Marathon Bombing
Problem: 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.
 Video synopsis software to turn hours
of footage into a short clip
 Advanced 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!
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.
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

Peter Thiel Li Ka-Shing Eric Schmidt

PayPal
Horizon Ventures Google

Gigi Levy Ajay Shah

888 Benny Landa Silverlake Sumeru
Amdocs Indigo Shah Capital Partners

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Co-investing with leading investor groups
Top-tier funds and institutional investors

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Co-investing with leading investor groups
Top-tier funds and institutional investors

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 1. Global VC / ECF Platform – over half investments in Israel, why?
Equity Crowdfunding
2. Who we are
Changing theand our approach
world to investment
of innovation finance

3. OurCrowd’s Portfolio Snapshot

4. The opportunity
Dan Bennett – Managing Director
5. FOSS
OurCrowd Team 2015
session, January
You can choose to invest in three ways

1. Cherry pick: accredit online and select individual companies

2. Portfolio Reserve: Create a diversified portfolio.

3. Corporate Partnership

You always invest alongside OurCrowd investing its OWN capital

 1. Global VC / ECF Platform – over half investments in Israel, why?
Equity Crowdfunding
2. Who we are
Changing theand our approach
world to investment
of innovation finance

3. OurCrowd’s Portfolio Snapshot

4. The opportunity
Dan Bennett – Managing Director
5. FOSS
OurCrowd Team 2015
session, January
OurCrowd’s Leadership Team
Jon Medved Co-Founder & CEO Pini Lozowick General Partner
 Washington Post: "one of Israel’s leading high tech  General Partner at Alta Berkeley
venture capitalists”  Among first employees at Broadcom, Dir.
 12 exits >$100M Marketing
 Co-founder, CEO of VRNG  Founder and GM of Verisense
 Founder & GP Israel Seed Partners, $260M AOM  5 exits; total value $3B

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
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
Evelyn Rubin BizDev Partner
 Sr Associate JVP
 Dir BizDev at CipherIT
 Sr Editor, Seeking Alpha
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
Danna H Mann Partner, Head of Investor
Rel.
 Global Marketing, Estee Lauder
 VP BizDev, JVP Properties
 Kellogg-Recanati EMBA

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