crowdfunding the next generation of israeli & global startups
DESCRIPTION
By Gadi Mazor, OurCrowd. Presented at Crowdsourcing Week Europe 2014. Join us at the next event: http://crowdsourcingweek.com/TRANSCRIPT
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Funding Start-Ups
Gadi MazorGeneral Partner and CTO
OurCrowd
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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140
500
1000
1500
2000
2500
3000
3500
Israeli high-tech capital raising
Israeli VCs Foreign Investors
$100
m
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# of investments of Horizons Ventures (李嘉诚 )
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Canada220
Israel
134China192
USA7600
France, 8
Germany, 10
Switzerland, 14
UK, 11
Korea, 1
Japan, 1
India, 14
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5
02468
1012141618
0102030405060708090100
16.4
0.52 1.1 1.9 2.7
10
3.5 2.7 2.61.2
5 5.57.6
63
25
60
5862
79
93
8884
73
23
63
50
80
Volume # of DealsM&A
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1st 2nd 3rd 4th
Total Expenditureon R&D
Finland Sweden Japan
Flexibility & Adaptability
Hong Kong Australia Brazil
Entrepreneurship of Managers
Malaysia Colombia Taiwan
Availability of Scientists
and EngineersJapan USA India
VentureCapital Availability
USA Hong Kong Taiwan
Info Technology Skills
Iceland Denmark Sweden
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The Yozma government plan (1993)• 1-1 matching• Buy back option
Results:• 2 funds @ 10m each to 10 funds >20m in 3
years• Currently 70 local funds (14 international)
+ 220 active international funds• 58m in 1991 to 3.3b in 2014
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1993 vs. 2014
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crowd·fund·ingnoun \ˈkra d-ˌfən-diŋ\u̇�Definition of CROWDFUNDINGthe practice of soliciting financial contributions from a large number of people especially from the online community
Donation
Equity Debt Reward
Democratization of Funding
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Equity crowd funding types:• Diligence and management: • Platform (none)• Angel• Fund
• Investors: • Accredited• Unaccredited (retail)
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VC:Top deal flowProf. due diligenceLegal dealt withRights protected
Large commitmentHefty feesNo control
Angel:LimitedLimitedNeed to deal withCommon shares
NoneLow feesSelf-selection
OurCrowd:Top deal flowProf. due diligenceLegal dealt withRights protected
NoneLow feesSelf-Selection
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200+ potentialdeals per month
Screening by investment team
Meetings with management
Ongoing in-depth diligence
Prep
40+deals
20+deals
5-10deals
2-3deals
Deal#1
Deal#2
web email referral proactive sourcing
13
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Register and accredit online
Browse startups
Review diligence research
Invest a min. of $10K per company
Track your holdings
Crowdbuilding
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Entrepreneur:Angel moneyDeep pocketsStreamlined processSupport of a venture fundCrowd support
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5,500 investor
s
$32,000 average per investor per
company
> 4 investments per active investor
52 companies
funded$500k-4.5m
per company
$70m invested
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OurCrowd:
Legal dealt withRights protected
No commitmentLow feesSelf-Selection
Channel Partner:Top deal flowProf. due diligence
Promise to Investors:Top deal flowProf. due diligenceLegal dealt withRights protected
No commitmentLow feesSelf-Selection
How do we scale internationally?