From Start-up Nation to Scale-up Nation: Israel in 2014

Post on 13-Sep-2014

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Israel's shown it's proficient at starting and building early-stage companies. It hasn't shown it can create larger, lasting multinational firms. But that's changing. With the 2013 Wix.com IPO and Google's acquisition of social driving app, Waze, Israeli entrepreneurs are changing their focus. Israeli professionals are looking beyond quick exits and are investing in building larger companies headquartered in the holy land.

Transcript of From Start-up Nation to Scale-up Nation: Israel in 2014

F R O M S TA R T U P N AT I O N T O S C A L E U P N AT I O N

T H E S T O R Y O F I S R A E L’ S B O O M I N G E N T R E P R E N E U R I A L E C O S Y S T E M

T H E R I S E O F I S R A E L’ S S TA R T U P E C O N O M Y

S TA R T U P S A T T H E H E A R T O F I S R A E L’ S E C O N O M Y

I S R A E L’ S B E C O M E A M A G N E T F O R I N V E S T M E N T C A P I TA L

I S R A E L R A I S E D $ 6 0 0 M I N Q 3 — T H E H I G H E S T S I N C E 2 0 0 0

I S R A E L’ S E C O N O M Y I S R A M P I N G

I N V E S T M E N T S D R I V E N B Y S U C C E S S

I S R A E L’ S P R E S E N C E O N G L O B A L S T O C K E X C H A N G E S

A C C E S S T O G L O B A L I N V E S T O R S

L O C A L S T O C K M A R K E T ( TA S E ) R E S I L I E N T D U R I N G C R I S E S

O U T P E R F O R M I N G G L O B A L M A R K E T S

I S R A E L G E T T I N G B E T T E R AT E X I T SI S R A E L I M & A G R O W I N G

W H AT M A K E S I S R A E L “ D I F F E R E N T ” ?

T E C H N O L O G Y T R A N S F E R

• About 150 new technologies are licensed from Israeli universities and R&D labs each year

• Israeli tech transfer companies generate over NIS 1B in royalties yearly

I S R A E L’ S # 2 I N S TA R T U P E C O S Y S T E M I N T H E W O R L D

L A C K O F R E S O U R C E S C R E AT E S R E S O U R C E F U L N E S S

I S R A E L’ S G R E A T E S T R E S O U R C E I S I N G E N U I T Y

– W A R R E N B U F F E T T

“If you’re going to the Middle East to look for oil, you can skip Israel. If you’re looking for brains, look

no further.”

O O P S …

F R O M S TA R T U P N AT I O N T O S C A L E U P N AT I O N

L A R G E R M & A

A S P I R AT I O N S A R E E V O LV I N G

"I think that we see maturity among entrepreneurs on the venture capital side too. The market here has become more experienced, which brings better results, and the technology markets are picking up.

We are now simply seeing companies that start here have bigger ambitions.”

— R A V I M H A T R E , L I G H T S P E E D V E N T U R E S

C A S E S T U D Y N O . 1 : W I X

– W I X ’ S AV I S H A I A B R A H A M I

“Maybe it’s time for us to think about ourselves as a country going from a startup nation to a high-tech nation, where startup is the first step, but companies are still built in Israel, maintained

in Israel and grow from Israel.”

C A S E S T U D Y N O . 2 : W A Z E

A C C O R D I N G T O A L LT H I N G S D :

• Google acquires Waze for >$1 billion

• Facebook acquisition talks with Waze in May 2013 failed in part because of conflicts over whether or not the Waze team could remain in Israel

Fewer and bigger deals

“This trend indicates that the Israeli hi-tech market has now come of age, and that individual local companies get to the exit line when they are much more mature.”

- P W C I S R A E L E X I T S R E P O R T

– W A R R E N B U F F E T T

“Israel needs to keep doing what it does. You are a nation of entrepreneurs with amazing capabilities

here.”

O U R C R O W DA B E T T E R W A Y T O I N V E S T I N I S R A E L I S TA R T U P S

F U N D I N G T H E N E X T G E N O F S U C C E S S F U L S TA R T U P S

• Since Feb 2013, invested in over 30 startups

• OurCrowd and our community of investors have invested over $26M in these firms

– V E N T U R E B E AT

“Crowdfunding is growing up.”

H O W I T W O R K S

• OC’s Diligence —> 100 companies/mo

• OC makes an investment, publishes research materials to website

• Opens the investment round to OC members

• OC members can ask questions, do own diligence, invest minimum of $10k/deal

• Post funding, OC shepherds companies through growth curve

O C M O N T H LY D E A L F L O W P R O C E S S

D U E D I L I G E N C E

D E E P E R R E S E A R C H

1 S T M E E T I N G S

I N B O U N D D E A L F L O W100

25

10

5

2-3 I N V E S T M E N T S

O C T E A M

WashPo: “One of Israel’s top VCs 12 exits > $100M Co-founder of VRNG Founder of Israel Seed Partners, $260M

J O N M E D V E D

E L A N Z I V O T O F S K Y15 years experience investing in Israel Former Head of Technology Banking, Lehman Brothers Israel Top ranked Israel equity analyst at Goldman Sachs

S T E V E N B L U M G A R T

Co-director of Glencore’s aluminium division Senior exec, management committee at Glencore 1998-2013

Z A C K M I L L E RVP BizDev, SeekingAlpha Leadership positions with Lending Club, SigFig, Covestor Author, Tradestream your Way to Profits: Building a Killer Portfolio in the Age of Social Media (Wiley, 2010)

G A D I M A Z O RSerial Entrepreneur Founded 3 wireless companies Advisory board, Blackberry Talpiot 8200 Wireless advisor to US Senate

R O B B I E C I T R O N , C F O

25 years experience Partner, CFO of Jerusalem Global Ventures Financial Controller, Hanson PLC’s Israel branch

E M P O W E R I N G G L O B A L I N V E S T O R S W I T H A C C E S S T O I S R A E L I S TA R T U P S

• Investors from 19 countries

• Global regulatory compliance

M E N T O R I N G P R O G R A MN O T C R O W D F U N D I N G , CROWDBU I LD ING

Q U E S T I O N S ?

• Check out www.ourcrowd.com

• Contact Jeremy Pressman (jeremy@ourcrowd.com) or Zack Miller (zack@ourcrowd.com)