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SHARON KEDMI Managing Director, Alstom Israel and Chairperson of the Committee on Innovation, Competitiveness and Public-Private Partnerships ( CICPPP) SHINE

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Page 1: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

SHARON KEDMI

Managing Director, Alstom Israel and Chairperson of the Committee

on Innovation, Competitiveness and Public-Private Partnerships ( CICPPP)

SHINE

Page 2: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

AUTOMOTIVE

AGRICULTURAL

& WATER

DESIGN &

MANUFACTURING

OUR WORLD IS CHANGING ADDRESSING CHALLENGES WITH INNOVATION

Page 3: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

INVESTINISRAEL.GOV.IL

“ WHEN YOU HAVE TWO ALTERNATIVES, THE FIRST THING YOU HAVE TO DO IS TO LOOK FOR THE THIRD THAT YOU DIDN'T THINK ABOUT, THAT DOESN'T EXIST” .

S H I M O N P E R E S

“WE CANNOT

SOLVE OUR

PROBLEMS

WITH THE SAME

THINKING WE

USED WHEN WE

CREATED

THEM”…

ALBERT EINSTEIN

Page 4: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

INVESTINISRAEL.GOV.IL

RADIATING

THE LIGHT OF

INNOVATION

AROUND OUR

WORLD

“ I F P E O P L E W A N T T O S E E T H E F U T U R E O F T H E W O R L D

E C O N O M Y T H E Y S H O U L D L O O K A T T E L A V I V , H O M E T O

H U N D R E D S O F S T A R T U P S A N D R E S E A R C H C E N T E R S ” .

B A R A C K O B A M A "

Page 5: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

INVESTINISRAEL.GOV.IL

ISRAEL

MOST AVAILABLE

VENTURE

CAPITAL

MOST

INNOVATIVE

COUNTRY

BUSINESS

ENTREPRENE-

URSHIP

NO.1 NO.2 NO.3 NO.4

IMD World Competitiveness Yearbook 2016, Bloomberg 2016

RESEARCHERS

IN R&D PER CAPITA

AN ENLIGHTENED ENVIRONMENT FOR INNOVATION

Page 6: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

INVESTINISRAEL.GOV.IL

ISRAELI INGENUITY ILLUMINATING LIVES AROUND THE WORLD

Page 7: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

INVESTINISRAEL.GOV.IL

BRIAN KRZANICH

“IT'S ABOUT THE ONLY PLACE

WHERE YOU HAVE A COMPLETE

CROSS-SECTION OF THE COMPANY

IN ONE COUNTRY”.

ISRAEL TALENT ILLUMINATING INNOVATION

BILL GATES

“THE INNOVATION GOING ON IN

ISRAEL IS CRITICAL TO THE FUTURE

OF THE TECHNOLOGY BUSINESS”.

LI KA-SHING

“IT IS A COUNTRY THAT IS A

WELLSPRING OF KNOWLEDGE AND

SKILL AS WELL AS A FASCINATING

PLACE THAT OFFERS UNLIMITED

OPPORTUNITY”.

WARREN BUFFETT

“IF YOU ARE LOOKING FOR BRAINS –

STOP IN ISRAEL, THERE IS NO NEED

TO GO FURTHER”.

ERIC SCHMIDT

“THE DECISION TO INVEST IN

ISRAEL WAS ONE OF THE BEST

THAT GOOGLE HAS EVER MADE”.

LARRY ELLISON

“ISRAEL HAS ALWAYS HAD A

WEALTH OF INTELLECTUAL

TALENT”.

Page 8: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

INVESTINISRAEL.GOV.IL

HUB FOR THE WORLD’S TOP BRANDS 270+LEADING CORPORATIONS HAVE OPENED DEVELOPMENT AND

MANUFACTURING CENTERS IN ISRAEL.

COMMUNICATION ENTERPRISE INTERNET

MEDICAL ENERGY & WATER SEMI-CONDUCTORS

Page 9: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

THE BEST PLACE FOR STRATUPS

OUTSIDE THE US

Source: The global startup ecosystem ranking 2015

Page 10: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

INVESTORS SUCCESS STORY RATIO OF FUNDING ROUNDS V. EXITS, GAVE INVESTORS ~$ 2 FROM EXITS FOR

EVERY $1 INVESTED IN THE LAST 3 YEARS

IPOs Cap Raising and Exist ($b) - STRATUPS

5.4

6.9 6.6

3.5 3.4

2.3

2015 2014

Capital Raising

2013

Exits

Source: Geektime, Zirra Source: Geektime, Zirra

Page 11: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

AVERAGE INVESTMENTS early stage and growth companies

AVERAGE INVESTMENT Seed, Series A, Series B

Growth Early Stage

2015 ANOTHER RECORD YEAR TOTAL NUMBER OF NEW STARTUPS RISE TO 1,400, OF WHICH ABOUT 373

COMPANIES RAISED AROUND $3.58 BILLION

Source: Geektime, Zirra Source: Geektime, Zirra

Page 12: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

Amount Acquired by Start-up

Cyber $320M

FinTech $350M

Mobile payments $360M

Semiconductors $390M

Communication $900M

Smart

transportation $1.02B

FinTech $1.2B

Amount

TOP DEALS 2014-2015

(*ipo)

Page 13: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

TOP DEALS 2014-2015

$320M

$350M $360M

$390M

$1.02B

$1.2B

$900M Smart transportation

Semiconductors

Mobile payments FinTech Cyber

FinTech

Communication

Page 14: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

WHY IS

SUCH

BRILLIANCE

BLOOMING

IN ISRAEL?

Page 15: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

One of the strongest economies

in the world

Resilient, diverse and open market

Anchored banking system

Elastic labour market and

seasoned policy makers

N O .1 I N T H E W O R L D 2013 C E N T R A L B A N K P O L I C Y

— S O U R C E : I M D G L O B A L

-5.25

-3.5

-1.75

0

1.75

3.5

5.25

7

2007 20082009 2010 2011

Israel United Kingdom

VIBRANT

ECONOMY

20122013

European Union United States

2014

GDP GROWTH RATE %

Page 16: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

INVESTINISRAEL.GOV.IL

ENLIGHTENED

ACADEMICS Tradition of distinguished achievement and

a culture of excellence

Israel values and promotes

ingenuity and creativity

Israeli universities are recognized around the

world for their scientific leadership

•Israeli has given birth to

12 The Noble Prize winners

“ I S R A E L I S A W E L L S P R I N G O F K N O W L E D G E A N D S K I

L L AS W E L L A S A F A S C I N A T I N G P L A C E O F F E R I N G

U N L I M I T E D O P P O R T U N I T Y ” .

— L I KA - S H I N G

HIGHEST CONCENTRATION OF

ENGINEERS IN THE WORLD

GCI REPORT

Page 17: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

Entrepreneurial spirit and

a multicultural workforce

Groundbreaking research

and innovative technologies

Israelis imagine and create

solutions for a successful

businesses and a better future “ W H E N YO U G O T O T H E M I D D L E E A S T L O O K I N G F O R O I L ,

YO U D O N ’ T N E E D T O S T O P I S I S R A E L . B U T I F YO U G O

L O O K I N G F O R B R A I N S , F O R E N E R G Y, F O R I N T E G R I T Y ,

I T ’ S T H E O N L Y S T O P YO U N E E D T O M A K E ” .

BRILLIANT

PEOPLE

NO.1 CYBER SECURITY EFFORT

IMD YEARBOOK 2016

COMPETITIVENESS

NO.2 POSTSECONDARY

EDUCATION

BLOOMBERG

REPORT 2016

NO.3 QUALITY OF

SCIENTIFIC

RESEARCH

INSTITUTIONS

WEF GLOBAL

COMPETITIVENESS REPORT

2016

NO.4 IN

RESEARCH

PERSONNEL

BLOOMBERG REPORT

2016

Page 18: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

BLAZING

R&D • LEADING ACADEMIC RESEARCH

AND A STRONG DEFENCE

INDUSTRY

• ISRAEL IS HOME TO

230,000 HI-TECH

WORKERS, 39% OF WHICH

WORK IN R&D

“ ISRAEL IS THRIVING IN TERMS OF INNOVATION BECAUSE YOU

HAVE A CULTURE THAT MAKES IT POSSIBLE TO QUESTION

AUTHORITY AND TO CHALLENGE EVERYTHING - YOU DON’T

FOLLOW THE RULES” .

— E R I C S C H M I D T

NO. 2 IN THE WORLD R&D

INVESTMENT AS % OF GDP SOURCE :ORCD DATA

2008 2009 2010 2011 2012 2013 2014

Korea

Israel

Japan

Finland

Denmark

OECD

Page 19: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

R&D THAT LEADS TO ADVANCED MANUFACTURING

50% OF GLOBAL LOW-PRESSURE

IRRIGATION SYSTEMS

ARE ISRAELI

ISRAEL HAS SOME OF THE MOST

ADVANCE STEEL AND METAL

MANUFACTURERS SUCH AS ISCAR THAT

WAS ACQUIRED BY WARREN BUFFETT

WITH OVER 500 PLASTIC

MANUFACTURERS ISRAEL IS ONE OF

THE WORLDS LEADER IN ADVANCE

PLASTIC MANUFACTURING

OVER 1 BILLION COMPUTER

PROCESSORS WERE DEVELOPED

AND MANUFACTURED IN ISRAEL

THE WORLD’S TOP DIGITAL AND 3D

PRINTING TECHNOLOGIES ORIGINATE

IN ISRAEL

LEADING ELECTRO OPTICS COMPANIES

IN CONSUMER ELECTRONICS,

MEDICAL, INDUSTRY AND SECURITY

Page 20: SHINE - UNECE · source: the global startup ecosystem ranking 2015. investors success story ratio of funding rounds v. exits, gave investors ~$ 2 from exits for every $1 invested

THE GOVERNMENT OF ISRAEL OFFERS AN ASSORTED RANGE OF INCENTIVES IN THREE MAIN CATEGORIES

INVESTMENTS

AND MANUFACTURING

INDUSTRIAL

R&D EMPLOYMENT

Investments

grants & tax

benefits for

investors

Various

programs that

support

Industrial R&D

Employment

subsidy &

vocational

training

programs