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Gadi mazor_crowdfunding

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Crowdfunding and the Entrepreneur 11.7.2013

Published in: Economy & Finance, Business
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Gadi mazor_crowdfunding

  1. 1. Equity Crowd Funding Gadi Mazor, General Partner and CTO OurCrowd 1
  2. 2. Capital Raised – Israel Israeli VCs Foreign & Other 70% growth and return to 2008 levels $(millions) Source IVC Research Center 2012
  3. 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. 4. Equity Crowd Funding 4
  5. 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 5
  6. 6. OurCrowd’s Focus 6 “How can I best invest in the Start-up Nation?”
  7. 7. Through VC or as an Angel 7 • 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. 8. OurCrowd 8 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. 9. OurCrowd - Investors 9 • 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. 10. OurCrowd - Entrepreneurs 10 • Angel money – all futures possible • Deep pockets • Streamlined process • Support of a venture fund • The crowd supports the company
  11. 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 11
  12. 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 12
  13. 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 13
  14. 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 14
  15. 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 15 Gadi Mazor - Serial entrepreneur - Founded 3 wireless companies - Advisory board for Blackberry - Talpiot 8200 - Wireless advisor to US Senate
  16. 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 16 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. 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 17
  18. 18. Press Coverage “How do you invest in Israel without a lot of money? Try crowdfunding venture capitalists” IBT | March 22 18
  19. 19. Fireblade: biggest crowdfunded round ever April 2 “5 Most Important New Companies” – Forbes April 2 1000+ accrediteds May 5 $11M+ May 5 Milestones 19 Launch Feb 5 $10M Apr 20 325+ unique commitments May 14First US company funded – $1M+ March 5 First follow- on financing March 15
  20. 20. Equity Crowd Funding Thank You! gadi@OurCrowd.com July, 2013 20

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