Crowdfunding and the Entrepreneur 11.7.2013

1. Equity Crowd
Funding
Gadi Mazor, General Partner and CTO
OurCrowd
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2. Capital Raised – Israel
Israeli VCs Foreign & Other
70% growth and return
to 2008 levels
$(millions)
Source
IVC Research Center 2012

3. Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q
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, commitme
nts to venture funds are
down, VCs are
shrinking in both deals
and $ amounts.
Where can smart
investors get
behind these
unfinanced
deals?
Series A Crunch

4. Equity Crowd
Funding
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5. 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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6. OurCrowd’s Focus
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“How can I best
invest in the Start-up
Nation?”

7. Through VC or as an Angel
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• 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

8. OurCrowd
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A Hybrid VC – Angel Investment Model
OurCrowd provides the professionalism
and experience of a venture fund and the
flexibility and choice of angel investing.

9. OurCrowd - Investors
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• 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

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

11. How the Process Works
200+ potential
deals 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
5-10
deals
2-3
deals
Deal
#1
Deal
#2
web email referral proactive sourcing
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12. 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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13. 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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14. Our Team
Jon 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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15. 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
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Gadi Mazor
- Serial entrepreneur
- Founded 3 wireless
companies
- Advisory board for
Blackberry
- Talpiot 8200
- Wireless advisor to US
Senate

16. Our Team
Crowdfunding
challenges - May 2013
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
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Zack Miller
- VP BizDev at Seeking
Alpha
- Leadership positions with
Lending
Club, LearnVest, Covestor, a
nd SigFig
- Author of Tradestream Your
Way to Profits (Wiley, 2010)

17. 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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18. Press Coverage
“How do you invest in Israel without a lot of money? Try
crowdfunding venture capitalists” IBT | March 22
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19. Fireblade: biggest
crowdfunded round ever
April 2
“5 Most Important New
Companies” – Forbes
April 2
1000+
accrediteds
May 5
$11M+
May 5
Milestones
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Launch
Feb 5
$10M
Apr 20
325+ unique
commitments
May 14First US company
funded – $1M+
March 5
First follow-
on financing
March 15

20. Equity Crowd Funding
Thank You!
gadi@OurCrowd.com
July, 2013
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