Slideshow from Thursday talk @ The Junction. 9.2.12 First steps all the way to the IPO

1. February 2012
Lola Rennet
Yoram Tietz
Managing Partner, Ernst and Young

2. February 2012
Run, Lola Run
Yoram Tietz
Managing Partner, Ernst and Young

3. -
“Move fast and break things. Unless you are breaking stuff,
you are not moving fast enough”.
Mark Zuckerberg

4. Why are you here ?

5. Why are you here ?
Change Passion Urge
Difference Chronic Disease
MONEY
$$$$$$

6. Why are you here ?
BECAUSE THIS IS HOW YOU
START TODAY

7. Everything Starts
Everything Starts with the
Entrepreneur

8. Why - Huge Fundamentals
• Innovation: The concentration of innovation pipeline in Israel is one of the
highest in the world.
• Time to Market: Israeli entrepreneurs have better time to market from product
to revenue than other mature hotbeds' entrepreneurs.
• Maturity: Israel is one of the few mature and vibrant hotbeds around the globe,
and our management skills have matured along with our companies.
• Exits: We had Exits in the amount of $19B in the last 5 Years, on 2006 more
than 10% of the NASDAQ IPO’s were Israeli’s companies
• Diversity: We are diverse in terms of industries. we have IT, Web.2.O,
Cleantech, Healthcare, Medical devices, Gambling
• Global Vision: Israel has no local market ,Israeli entrepreneurs are forced
from day one to think and to act globally, it gives them them a competitive
advantage.
• Private Equity Market -Over the last decade, investments in private equity
funds and other private equity bodies have grown substantially
• Benefits: We have one of the best tax regime’s and availability of R&D grants
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9. Innovation –
Recognized as an Innovation “Hot Spot”
In a recent panel At EY’s last Strategic Growth Forum in Palm Springs,
titled “Innovation-driven deals” - 4 out 5 Executives
mentioned Israel as a strong source for Innovation:
“Our JV with TEVA represents the lessons learned that we need better
accesses to Innovation and global abilities while we can provide the in-
depth consumer knowhow."
Jeff Weedman, Vice President, External BD
“We are looking to buy talent and technology…the acquisition of deal gave
us accesses to their developed e-commerce platform”
Lorraine McDonough SVP BD Ebay
“The Purchase of Scitex Digital Printing helped us to expands participation
in fast-growing digital commercial printing industry while using our inkjet
technology”
Jeremi Salesin, managing & BD director
“ABB – Israel as a hot spot for Innovation in water, If you want so see the
latest in water technology you go to Israel
Allen Burchett, Senior VP BD.
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10. Global VC Trends - Summary
► Later stage dominates.
► LPs look for change.
► Less investments, Less VCs, Higher returns.
► Life Sciences and Clean Tech on the rise, as ICT contracts.
► Series A early stage funding gap leads to the rise of “super
angels” and seed funds.
► Valuations – still a buyer’s market.
► Keep an eye to the East – economic growth to drive India
and China opportunity.
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11. Money……
How do you het the Money $
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12. The “new” tech ecosystem
► New kind of entrepreneurs.
► Emerging of new sectors: Media, entertainment, Health.
IT, cloud , Smart Mobility, Electric Car, Cleantech.
► Micro VC, Super Angels.
► Ordinary shares financing by VCs.
► “Silver lake” Transactions.
► Increase involvement of Israeli government :Angels, LP,
New Tax regime.
► Emerging of new Markets: China, India, Brazil.
► “Rothschild Alley”.
► Corporate VCs.
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13. In the good old days
► Some angels
► Many VC’s
► Time to money
► Efficiency ?
► The Bon Ton
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14. In the good present days
► Crowdfunding
► Accelerators
► Super Angels
► The late stage private equity/ VCs
► Time to money – the long delayed IPO (?)
► Efficiency ?
► The Bon Ton
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15. Page 15

16. Page 16

17. Companies graduating from each Y Combinator class
.
Israeli Accelerators- VentureGeeks, MobileMonday Tel Aviv, Techloft,
Junction, Upwest Labs, Microsoft and Google.
Page 17

18. Typically admit around 1% of applicants
and raise 6-7 figure amounts out of the
gate
Page 18

19. The Way Companies Are Getting Financed
Are Completely Changing
► Super-Angels- now taking place of early-stage VC.
VC are completely reconfiguring. We're getting a VC
industry that's smaller but also very different, with a
bunch of very small funds on one hand, and a handful of
very large funds on the other hand.
► Micro VC’s – lool, Inminity, Cyhawk, Gliliot, TheTime,
Gitam
► Late-stage PE- VC funds are changing the way they
invest: Companies are putting off their IPOs, a new kind
of late-stage venture investing, the rise of secondary
private markets, investing in more mature private
companies is generally getting more efficient.
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20. Today's IPO are happening much later
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21. Page 21

22. Page 22

23. IPO , still something to wait for ? (or
not?)
Page 23

24. The Journey…….
Page 24

25. Venture Capital
◄ OPM ◄ ►
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FFF ►
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Pitch ◄

27. OR
Other?

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29. Look and feel ◄
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31. – – ◄
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CAN800k) - 0K - - ◄
K – K -
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– - Eureka ◄
€ 65M
-Euro-Stars ◄

32. Risk
NIH
eurostars
FP7
Eureka!
Proximity to the Market

33. Israeli 2010-2011 Technology M&A Deals
$325M
$230M $517M
$307M $240M
$484M $313M $86M
$ M $ M $70M
$230M
$ M $160M
$ M
$140M
$55M
$65M $190M
$50M
$175M $172M $80M

34. Ernst & Young unique position in the High-Tech
practice
Leverages years of experience in providing professional services to
numerous high-tech companies including startups and public
companies traded in U.S and in the Europe. The practice is
comprised of 14 partners and 320 professionals who accompany their
clients from their very early stages to IPOs and M&As. The services
offered include: international and local taxation, capital raising,
forming connections between potential investors and startups,
business plans, IT consulting, M&As, employee stock options,
relocation services, filing requests for R&D support from the Chief
Scientist, bi-national funds, governmental funds, tax planning for
Benefited Enterprises etc.

35. ◄
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Due Diligence M A ◄
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