By Gadi Mazor, OurCrowd. Presented at Crowdsourcing Week Europe 2014. Join us at the next event: http://crowdsourcingweek.com/

1. Funding Start-Ups
Gadi Mazor
General Partner and CTO
OurCrowd

2. 40
30
20
10
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$100m
Israeli high-tech capital raising
Israeli VCs Foreign Investors

3. # of investments of Horizons Ventures (李嘉诚)

4. Israel
134
Canada
220
China
192
USA
7600
France, 8
Switzerland, 14
Germany, 10
UK, 11
Korea, 1
Japan, 1
India, 14

5. 100
5
16.4
M&A Volume # of Deals
0.5 2 1.1 1.9 2.7
10
3.5 2.7 2.6 1.2
5 5.5
7.6
63
25
60
58
62
79
93
88
84
73
23
63
50
80
80
60
40
20
0
20
15
10
5
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

7. 1st 2nd 3rd 4th
Total Expenditure
on R&D
Finland Sweden Japan
Flexibility &
Adaptability
Hong Kong Australia Brazil
Entrepreneurship of
Managers
Malaysia Colombia Taiwan
Availability of
Scientists
and Engineers
Japan USA India
Venture
Capital Availability
USA Hong Kong Taiwan
Info Technology Skills Iceland Denmark Sweden

8. 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

9. 1993 vs. 2014

10. Donation Equity Debt Reward
Democratization of Funding
crowd·fund·ing
noun ˈkrau̇d-ˌfən-diŋ
Definition of CROWDFUNDING
the practice of soliciting financial contributions from
a large number of people especially from the online
community

11. Equity crowd funding types:
• Diligence and management:
• Platform (none)
• Angel
• Fund
• Investors:
• Accredited
• Unaccredited (retail)

12. VC:
Top deal flow
Prof. due diligence
Legal dealt with
Rights protected
Large commitment
Hefty fees
No control
Angel:
Limited
Limited
Need to deal with
Common shares
None
Low fees
Self-selection
OurCrowd:
Top deal flow
Prof. due diligence
Legal dealt with
Rights protected
None
Low fees
Self-Selection

13. 13
web email referral proactive sourcing
200+ potential
deals per month
Screening by
investment team
Meetings with
management
Ongoing
in-depth
diligence
Prep
40+
deals
20+
deals
5-10
deals
2-3
deals
Deal
#1
Deal
#2
13

14. Register and accredit online
Browse startups
Review diligence research
Invest a min. of $10K per company
Track your holdings
Crowdbuilding

15. 15
Entrepreneur:
Angel money
Deep pockets
Streamlined process
Support of a venture fund
Crowd support

16. 16
5,500
investors
$32,000 average per
investor per company
> 4 investments
per active investor
52 companies
funded
$500k-4.5m
per company
$70m
invested

17. 17

18. OurCrowd:
Legal dealt with
Rights protected
No commitment
Low fees
Self-Selection
Channel Partner:
Top deal flow
Prof. due diligence
Promise to Investors:
Top deal flow
Prof. due diligence
Legal dealt with
Rights protected
No commitment
Low fees
Self-Selection
How do we scale
internationally?

19. Thank You!
Gadi Mazor
General Partner and CTO
OurCrowd
gadi@ourcrowd.com