hybrid funding systems pave way for dynamic investment climate and opportunities
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Funding Start-Ups
Gadi MazorGeneral Partner and CTO
OurCrowd
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
# of investments of Horizons Ventures (李嘉诚 )
Canada220
Israel
134China192
USA7600
France, 8
Germany, 10
Switzerland, 14
UK, 11
Korea, 1
Japan, 1
India, 14
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
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
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
1993 vs. 2014
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
Equity crowd funding types:• Diligence and management: • Platform (none)• Angel• Fund
• Investors: • Accredited• Unaccredited (retail)
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
13
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
Register and accredit online
Browse startups
Review diligence research
Invest a min. of $10K per company
Track your holdings
Crowdbuilding
15
Entrepreneur:Angel moneyDeep pocketsStreamlined processSupport of a venture fundCrowd support
16
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
17
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?
