Dr. Ed Mlavsky, Chairman Emeritus & Founding Partner, Gemini Israel Funds

1. Israeli VC Indicator Survey
Data from Deloitte Brightman Almagor Zohar, June 12, 2010, (70 participants)
Highlights
Expectations regarding market improvements begin to decline
Forecasts of new investments reflect cautious optimism
Increasing optimism geared towards 2010, as the year that Israeli
IPO’s will resume on NASDAQ
Geopolitical issues raise concerns amongst venture capitalists
Treasury Department should focus on encouraging
1) Seed investments
2) Encouraging Israeli institutions to take a larger role in high-tech
investments
1 Confidential

2. VC Fundraising Activity will become:
Extremely difficult 30%
Difficult 47%
Remain the same (i.e. tough) 23%
Easier A Big Fat Zero!!
2 Confidential

3. Main Investment Gap in the Israeli Start-up Industry?
Seed: 47%
First round: 30%
Second round: 13%
Mezzanine: 10%
No gap: 0% (!!)
3 Confidential

4. EXITS
72% believe that the next Israeli IPOs on NASDAQ will happen
this year.
Additional optimism was unveiled by the fact that 77%
of surveyed participants claim that merger and acquisition
activity is ramping up. Despite being only 1% higher than
the previous quarter and 15% lower than the last quarter
of 2009, recent numbers clearly reflect the apparent
turnaround since the inception of market turmoil.
4 Confidential