New Opportunities for Direct Investment:
Life Beyond VC
Jon Medved
CEO, OurCrowd
Prepared for DC Finance Annual Family Office &
Wealth Management Conference
Market Disruption: Crowdsourcing in Finance
Massolution: Crowdfunding portals will
raise $5.1 billion in 2013 – nearly double
the amount raised in 2011
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Consumer Lending
Rewards-based
Donations
Venture Capital
“Venture capital-type crowdfunding is the wild
card for 2013. It could raise more than a billion
dollars …”
Source: Massolution Crowdfunding Industry Overview 2013
Source: Deloitte TMT Predictions 2013 “Let's get together: crowdfunding portals bring in the bucks”
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Reward-based crowdfunding: Where is the Reward?
The recent acquisition of Oculus raises questions
Andreesen, Spark, Matrix Partners back Oculus
Rift with $75M Series B… then Facebook acquires
the company for $2B
Pays $2B for company and
Original crowd funders get nothing
December 2013 … March 2014
After raising $2.4M from Kickstarter, Oculus
Rift gets the attention of major investors
Now investors are
asking why do I
only get a tshirt?
Naturally, this plays into
the rise of equity
crowdfunding platforms
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OurCrowd offers the professionalism and experience of a
venture fund, plus the flexibility and choice of angel investing
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Independence, self-selection
Low fees
No large upfront commitment
Relative speed and ease
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Angel Investing
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Very limited dealflow
Term sheet negotiations
Limited due diligence capabilities
No protection, no rights
Legal issues/termsheets handled by firm
Exposure to top dealflow
Professional due diligence
Preemptive/other rights
Venture Capital
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Large Commitment
Hefty management fees
Carried interest fees
No control, no choice
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OurCrowd Overview
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Global leader in equity crowdfunding, just 15 months after launching
Raised over $50M for 40 companies
20 companies with over $1m raised, 2 deals over $3M
First follow-on deal funded in 4 hours, 14 follow-on deals on OurCrowd, with
16 of our portfolio doing follow-ons total
High-quality, continually improving pipeline of new & international deals
5000 Accredited investors, 500 active
Average active investor committed to almost $100K on site
Experienced investment team - 150 years combined VC experience
Portfolio companies doing very well
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“Crowdfunding for real investors” (TheStreet.com)
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Growing Differentiation from the rest of the pack
Currently Selecting 2% of the deals we are pitched
We always Co-invest with crowd
Accredited investors only
Managed investments via SPV
Good for companies (one check), Good for investors (protections, rights)
Truly International ( active investors from 26 countries)
Focus on Follow-on rounds bearing fruit
Mentors program is unique
Taking Board seats in 65-70% of companies
“Crowdbuilding” resonates and works
Co-investor list is indeed impressive
Our goal is to be the “smart money” in crowdfunding
OurCrowd’s Investment Model
OurCrowd
International
(GP)
OurCrowd
management
company
OurCrowd
investment
vehicle
Management
GP
Special
Purpose Vehicle
Accredited
Investors

Control
Investment
Portfolio Company
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OurCrowd’s Portfolio
Enabling paraplegics to walk
Paraplegics face immense social and medical
difficulties living wheelchair-bound. Israeli
entrepreneur Dr. Amit Goffer developed the
ReWalk for over a decade to produce a device
uniquely capable of alleviating key medical
complications that come from a paraplegia and
allowing paraplegics to walk, climb stairs, and
even complete marathons.
Argo – advanced robotics allowing paraplegics
to walk again
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Feeding the world: water
Israeli water tech impact
Did you know that Israel is recognized by the OECD,
WWF, and UN for being a water tech powerhouse?
Farmers waste hundreds of millions of dollars
worth of water – driving up prices and reducing
supply for those most in need of affordable water
– because they’re spraying water uniformly
across their fields. A mobile app that enables
farmers to finely control where their water goes
is already saving countless cubic meters of water
internationally.
Varigate – the world’s most affordable
water
Israel recycles 75% of its water, #1 in the world. By
comparison, #2, Spain, recycles just 11% of its water.
“Israel should be proud of being at the forefront of
green innovations for water management; these
innovations can be decisive in managing scarce water
resources” – Angel Gurria, OECD Chair
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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
and is among the diseases with the highest toll
on human life and economic activity
worldwide. Despite this, diagnostics tools used
in the prevention and treatment of malaria
worldwide remain expensive, slow, and
insufficiently accurate for mass
implementation. SightDX’s computer vision
technology reduces the time to diagnose from
several hours to minutes, while being more
accurate and substantially cheaper.
The story of SightDX being founded and built
by a diverse group of people pooling their
personal intellectual strengths is the archetype
of the Israeli startup.
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Saving lives by learning from Israel’s experience
Case study: Chilean earthquake ‘14
Israel's unique demand for the fastest,
most innovative technologies in
emergency alerting forced eVigilo to
produce the world’s leading mass
alerting system that is now used by
governments around the world as a
core part of their disaster
preparedness plans.
Chile’s 2010 earthquake and tsunami took over 520 lives as
millions were left without means to communicate or be
alerted to the post-quake tsunami for up to 12 hours. In the
minutes after the 2014 earthquake, Chile activated eVigilo’s
newly-implemented system and effectively alerted several
million people in tsunami zones to evacuate.
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VocalZoom
Technology implementation update
Semicon/components company
whose product enables effective
voice communication and
recognition in even the most noisy
environments. “Optical microphone”
monitors vibrations on speaker’s
throat and face, helping to isolate
speech from background noise.
Yechiel Kurtz, CEO, held a successful meeting with
President of Samsung Mobile R&D group.
VocalZoom will be running tests with engineers in
Korea in May 2014.
Strategic investments at this stage in the
company’s development are an open potential.
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Consumer Physics (SCiO)
Product launch - $1.2M in preorders
Miniaturized near-IR spectrometer,
allowing for first hand-held
molecular sensor. Applications:
measuring nutritional information in
foods, identifying allergens,
authenticating precious metals and
leathers, etc.
Co-investors: Khosla Ventures, Dov
Moran
Product launch on Kickstarter at $200 price point
saw over $1.2M in pre-orders within a week.
Rave reviews in media: VentureBeat,
Validation of strong demand for consumerfriendly health-focused devices at ~$200 price
point.
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Zula
Revolutionizing team communications
with cross-platform mobile messaging
application. Called “Whatsapp for
business”, Zula’s core value is its focus
on consolidating communications for
teams into one location and focusing
on team-centered functions above
those offered by existing consumer
solutions.
Co-investors: Microsoft Ventures, Mort
Meyerson (EDS)
Founders are giants in the comm. space
Above: Jeff Pulver, Chair & Jacob Ner-David, CEO
Jacob Ner-David founded and exited three
communications companies, the largest of which
was Delta Three, which he took to IPO on
NASDAQ with a market cap of ~$1.8B.
Jeff Pulver was the co-founder of Vonage and
pioneer of VOIP technology and early legislation.
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Highcon
Moving conventional packaging
production from analogue (die-cutting)
to digital process (one-button
operation). Opens new possibilities for
packaging – short and medium runs,
high-value packaging in small
quantities, labor savings, etc.
Co-investors: Benny Landa (Indigo,
$800M acquisition by HP)
Israeli expertise in digital printing
Israeli entrepreneurs brought Scitex, Jemtex Printing,
Objet, XMPie, and Indigo to the world market,
securing major exits to multinationals like HP and
Eastman Kodak. Indigo, which HP acquired for
$800M to absorb its digital printing technology, was
started by Benny Landa, a Highcon investor.
Current opportunity: Raising $15M for expansion.
Strategic investment possibilities.
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MUV
Pioneering solution for interacting
with multiple screens through touch,
gestures, and voice input.
Proprietary integration of optics and
wireless tech makes its product the
highest accuracy, most versatile and
substantially cheaper than any
options available today.
A look at MUV’s product
CEO Rami Parham demonstrates MUV’s finedetail control over a projected image. MUV’s
solution is both available in a small, unobtrusive
add-on, as well as a sensor capable of being
embedded within projectors by OEMs.
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Takes
Advanced, patent-protected camera
app eliminates the need to choose
between taking a photo and video.
Takes captures video and metadata
including accelerometer inputs,
allowing the user to take still images
but to produce a full-motion video
after-the-fact from the moments
captured while photographing.
Israeli expertise in computer vision
CEO Amit Man is an expert in computer vision
and machine learning and lead algorithm and
core development at Israel’s Briefcam. Israeli
companies like Briefcam, Mobileye, Rafael, Elbit,
and more.
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Curiyo
Lightweight application (browser
plugin or embedded into websites)
allowing content publishers to deliver
in-context information to users when
they ask for it.
Founded by Bob Rosenschein, serial
entrepreneur who founded
Answers.com – top 20 web property in
the US.
Early traction with major publishers
Curiyo launched its first major publisher partnership with
USA Today, running its application embedded into the
Life section online – a top 10 US news property online.
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NextPeer
Fastest growing mobile multiplayer
network for Android and iOS with
over 70M users.
Provides back-end for developers to
quickly deploy their games as fullblown multiplayer games in 10 lines
of code, without the headache of
maintaining server load themselves.
Evaluating NextPeer’s virality
NextPeer’s user adoption rates surpassed 1.5M per day
during recent peak periods, as reported in a VentureBeat
article looking at the network’s explosion. By providing
the backend for game developers to make engagingly
multiplayer products, NextPeer is able to “latch onto”
the growth of viral games like 2048n or Candy Crush and
grow as the games pick up gigantic user bases.
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Parko
Mobile app with proprietary, protected
algorithms analyzing 8 inputs from
phones to predict parking behavior of
users, passively inserting users into an
ecosystem of drivers looking for and
leaving parking spaces.
Parko continually monitors streets to
build a map of parking availability
likelihoods for each street at any given
moment.
Technology’s applications
Parko’s unique behavioral analysis and motion
recognition engines are being licensed to 3rd party
applications, branded as Motionize.
Parko is also pioneering the next generation of “ETA”
– mapping applications that tap into Parko’s
predictive map to include estimated parking time.
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Nativeflow
Experienced, successful management team
Complete enterprise data security solution
for BYOD IT setups. Nativeflow secures any
data on any device and inside of any
application being used by employees. It
runs invisible to the end-user, allowing
employees to enjoy the “native” user
experience that motivated them to bring
their personal devices into the workforce in
the first place. The deep technology behind
their solution is protected and patentpending.
Nativeflow’s management team has a history of
success in the security space. CEO Eitan Bauch was
co-founder of and sold Navajo Systems to Salesforce,
was CEO of Magnifire, which was sold to F5.
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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
* Investor opting for anonymity
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OurCrowd’s Leadership Team
Jon Medved Co-Founder & CEO
Steven Blumgart Co-Founder & Chairman
 Washington Post: "one of Israel’s leading high tech
venture capitalists”
 12 exits >$100M
 Co-founder, CEO of VRNG
 Founder & GP Israel Seed Partners, $260M AOM
 Co-director of Glencore's aluminum division
 Senior executive, management committee at
Glencore 1998-2012
Elan Zivotofsky General Partner Investments
Pini Lozowick General Partner
 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
 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
Geoff Levy Chair of Advisory Committee
Gadi Mazor General Partner & CTO
 Extensive experience in law, banking and investing
 Non-Executive Chairman of Monash Private Capital,
Specialty Fashion Group and Cromwell Property Group
 Non-Executive Deputy Chairman of Investec Bank
(Australia) Limited
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Serial entrepreneur in mobile/wireless
US Senate Advisory Board
RIM entrepreneur of the year 2013
Ex-8200
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OurCrowd’s Leadership Team
Evelyn Rubin, BizDev Partner
Audrey Jacobs, VP BizDev
JVP, Senior Editor @ SeekingAlpha
M3 Marketing
Zack Miller, Investor Community
Danna Mann, Biz. Strategies Partner
VP Biz Dev @ SeekingAlpha
Biz Dev at JVP
Robbie Citron, CFO
David Stark, dealflow
Partner @ Jerusalem Global Ventures
Blackstone
Jay Kalish, SVP & General Counsel
David Arnovitz, COO
VP IR @ Allot, CEO Patir Tech
Founder of S1 and Secureware
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Mentor Program
Profile
Role
Role in companies
Relationship
- seasoned entrepreneurs
- experience with board
seats
- active role in diligence
- pre-funding review of
companies
- directors in OC companies
- also availability for
consultation
- biannual mentorcompany event started
June 27th
Some recently joined mentors
Eli Campo
Dov Rubin
Mike Berman
- GM Israel @ LivePerson
(NASDAQ LPSN)
- SVP @ Shopping.com/Ebay
Israel
- Co-founder of NDS (sold to
Cisco, $5B)
- CEO Itamar Medical
- President Cardiology @
Boston Scientific
- Serial entrepreneur in
medical device space
Raanan Gewirtzman
Ron Moritz
Warren Adelman
- GM @Microsoft
- SVP CTO @Symantec
- SVP Chief Security Strategist
@CA
- CEO GoDaddy
- VP at McAfee
- VP at Bigfoot International
- CEO Broadlight (sold to
Broadcom $200M)
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6 Key Investment Criteria
4. Traction: Investing in early
stage companies, but not just
ideas or pre-prototype.
 Early product, users,
customers, partners
& revenues
Traction
Sponsorship
5. Sponsorship: Investing in
startups/building early stage
companies is a team sport.
 Board, advisors, smart
investors
Value
6. We seek “deals” and are value-sensitive.
Great Team
1. Great team: Successful startups are
founded by great people.
 We pay special attention to
successful serial
entrepreneurs.
Addressable
Market
Simple
Value
Proposition
2. Market: The startup must
address huge market growing
like a weed.
 No arcane ideas
addressing niche
markets.
3. Easy to understand: a simple
value proposition.
 Easily understood by us
AND by “our crowd”.
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Serial Entrepreneurs/Strong Backgrounds
Dr. Amit Goffer &
Larry Jasinski
Founded Odin Medical
Technologies (acquired
by Medtronic)
CEO Soteira (acquired
by Globus), Cortek
(acquired by Alphatec)
Bob Rosenschein
Founded Answers.com
($127M exit), Accent
Software ($400M on
NASDAQ)
Jeff Pulver &
Jacob Ner-David
Benny Landa &
Aviv Ratzman
VoIP pioneer, founded
Vonage, VOX, FWD,
investor in Twitter and
Foursquare
Indigo, major global
force in digital
printing; HP
acquisition ~$800M
Founded Delta Three
($1.8B NASDAQ),
founded Nomadiq
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Serial Entrepreneurs/Strong Backgrounds
Eitan Bauch &
Avi Yehuda
Collectively sold
startups to Intel, F5,
Salesforce.com
Zvi Schrieber
Founded TradeUM
($500M exit), Unicorn
(acquired by IBM),
Lightec (acquired by
GE)
Isaac Bentwich
Founded Rosetta
Genomics (Nasdaq:
ROSG), Pegaus
Medical (acquired
by McKesson)
Richard Demb
Founded GC Zone,
Founded Popcorn
Indiana (acquired
by Goldman Sachs)
Benny
Rosenbaum
Co-Founder Magic
Software (Nasdaq:
MGIC)
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Not just capital – we’re creating opportunities
“I am excited about the value that
OurCrowd brings to early stage investors
who invest in startup companies. Not only
did we raise our seed round on OurCrowd
in a week, but we had people from all over
the world invest in Zula thanks to this
platform”
Jeff Pulver
Co-Founder, Zula
Customers
Distributors
Partners
Other markets
Press contacts
Next round funding, venture debt,
loans, equity
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Co-investing with leading angel investors
Mort Meyerson
Gideon Ben Zvi
Tzachi Sultan
Briefcam
Clal Underwriting
Dell
EDS
Gigi Levy
Rami Lipman
Ajay Shah
888
Amdocs
Microsoft Israel
Silverlake Sumeru
Shah Capital Partners
Moshe Lichtman
Benny Landa
Yigal Jacoby
Microsoft
Indigo
Allot Communications
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Announcing Strategic Co-Investment Agreement
with General Electric Ventures
• GE will co-invest with OurCrowd in select early stage companies in
the areas of energy, healthcare, software and advanced
manufacturing
• Investing on the same terms as our members/investors.
• First time major corporation has made such a commitment to an
equity crowdfunding platform
• Huge validation for OurCrowd.
Sue Siegel, GE Ventures CEO :“OurCrowd has created a unique platform for
dynamic early stage origination and funding. They offer a quality investment
environment and the partnership will give GE increased access to early
innovation.”
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Press Coverage
“The 5 Most Important New
Companies You Need to Know”
Forbes Online
“Medved's latest mission is to blow up the
exclusivity around tech fundraising”
Bloomberg BusinessWeek
“An Israeli company trying to change
the way startups are funded”
CNN Business 360
"The most interesting investment of
the week goes to OurCrowd”
Wall Street Journal
“Crowdfunding for
real investors”
thestreet.com
“The platform has been an
enormous success…the
ultimate win-win-win
situation, brought to you by an
new and improved Israel –
innovative & confident.”
Haaretz
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Press Coverage in 2013
South African Business TV
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Press Coverage in 2014
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Summary
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Meeting a demand for a better online way to invest in startups
Platform works—Raised record sums ($50M+) for 40 companies online
Industry-leading performance to date – worldwide leadership
Strong Israeli base, global investor reach into 60 countries, 30 active countries
Over a third of our recent deals originate from outside Israel
Recruited industry-leading team
Strong and impressive initial portfolio
16 companies have completed additional funding rounds after initial funding
Have provided real value-add for our startups
Achieving strong traction in a gigantic market
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