In this talk, I try to offer practical advice for you to implement based on real case studies from the past 10 years of working with and investing in dozens of Israeli startups that have successfully brought their companies to the US. Some of the topics covered include: * Plans for creating momentum in the US, even while you are based in Israel * Considerations and best practices for establishing your US office * If, when and how to begin fundraising in the US

1. Strategies for Accessing
the US Market
Siftech, Jerusalem, February 1 2016
The Library, Tel Aviv, February 2 2016

2. Work
Life
Edu

3. Located in Silicon Valley, we are early stage
investors that dedicate years of valuable support
and resources to drive long-term growth
Any stage | Any domain | Pre/Post funding

4. Day 1: UWL Investment
CheckPoint team
Product demo
No customers
+6 Months
Four F500 customers
SV-based Advisors
Raised $3M
+2.5 Years
Many F500 customers
50+ employees
Raised +$37M

5. Day 1: UWL Investment
Israel-based product
No segment focus
+6 Months
Clear strategy
Raised $2M, inc.
Twitter founders
+2.5 Years
Many US customers
60+ employees
Raised +$30M

6. Challenges of Israeli Startups
Fundraising in the US?
Creating Momentum Remotely
Establishing Local Presence
Q&A

7. A Guy Walks Into a Startup….

8. Challenges of Israeli Startups
Understanding market needs, customer validation
Gaining momentum (early adopters, partners)
Accessing value-add investors
….

9. “I Know I Need to Come, But…”
“…I need to first do a pilot in Israel, so I have
something to sell and not ‘burn’ myself”
“… coming every few months is enough”
“… I will hire a US Sales person to do the work”
“…I have the best tech, so they will buy from me”

10. 8200 49
81Talpiot
F-16
“We Are The Startup Nation”

11. V
C
Nobody Cares

12. When Do They Care?
1. They generated significant momentum
2. They have presence in US

13. Challenges of Israeli Startups
Fundraising in the US?
Creating Momentum Remotely
Establishing Local Presence
Q&A

14. The Most Important Thing
to Know When Raising Capital

15. Let’s Take a Step Back…

16. Pension Funds, University Endowments, Wealthy
Families, Corporations, etc
Bonds,
Stocks, etc
VC
Capital Allocation to Venture Capital = 3-10%
Who Invests in VCs?

17. Top 20 VC Funds
Other VC Funds
<1x
1-2x
2-3x
>3x
VC ReturnsVC Funds
98% 95%
2%
5%
Do VCs Meet Investor Expectations?
50%
33%
10%
7%
VC ReturnsVC Funds

18. Fund
Fund Economics
Returns Exits
$1B
$3B
$15B
3X
20%
Equity
* Few Investments per Partner

19. How Do The Best VCs Reach 3x?
Option A Option B
Exit 1
Exit 2
Exit 3
Exit 4
Exit 5
Exit 1
Exit 2
Exit 3
Imagine you made 30 investments….
Returns = $3B Returns = $3B

20. Implications
* VC could agree to smaller exits if you are not going to
be big as they had hoped, IRR & fundraising
considerations, founding team really insist, etc
Startup
“I need to show
potential for $50M
in Revenues in Year 5
(or >100M users)”
VC Partner
“Should I bet part of
my career on this
startup?”

21. Goal: Investing In The Winners

22. VC Economics Impacts All Investors
Large Funds Micro-Funds Angel Investors
“I need
large exits”
“Small exits
are unlikely…
Need micro-funds
to invest in my
startups”
“Medium-size exits
are unlikely…
Need large funds
to invest in my
startups”

23. In Short: Aim High
No, Really: Aim High!

24. If You Are Raising In the US….
No “2-week funding roadshows”
Get local proof: customers, advisory board, etc
Learn from Israeli entrepreneurs (R&D in Israel, etc)
Ask for help, leverage friendly intros
Move before the round (50%+ can work too)
Early Stage Investing is a Local Business

25. Top 5 In-Meeting Mistakes
Israeli Entrepreneurs Make
5 - Not knowing your story or market
4 - Badmouthing/dismissing the competition
3 - “Mr/Miss-know-it-all”
1 (Tie) - Overly transactional/Valuation-focused
1 (Tie) - Not being positive and upbeat

26. Challenges of Israeli Startups
Fundraising in the US?
Creating Momentum Remotely
Establishing Local Presence
Q&A

27. Set-up Visit Follow-Up
Planning
Ahead
What
To Do
Ensuring
Continuation
Creating Momentum

28. The Set-Up
It’s Always Good Timing (advice/feedback, trial, sell)
Identify Customers, Partners, Sources of
Feedback (relevant, motivated)
Plan ~6 Wks Ahead, Visit for at Least 4 Wks
(Anchor, conference/meetups, 50-75% planned)
Ask for Help! (friends, etc)

29. The Visit
Know Your Story (why they should care, what do you need)
Build Relationships, Emphasize Context
(listen & learn, project continuity vs. quick hit)
Ask for & Schedule Follow-Up Meetings
Allow for Semi-Planned Networking
(Meetups, “Stand in Luck’s Way”)
Meet *Some* Investors (friends)
Ask for Even More Help!

30. The Follow-Up
Track & Summarize
Send Personalized Messages (recap, give back)
Ensure Momentum (action items, updates)
Plan Your Next Trip (In person > Skype)

31. Summary
Make the US Part of Your Routine
Focus on Creating Momentum
Plan Ahead, Ask for Help

32. Challenges of Israeli Startups
Fundraising in the US?
Creating Momentum Remotely
Establishing Local Presence
Q&A

33. “Between the execution risk (that is within
your control) and the risk of not being in
Silicon Valley (which becomes out of your
control), I choose the former. I want to
choose the risk I take.”
-- Noam Bardin, Waze CEO
Why Establish US Operations?

34. 9 Best Practices
1. CEO/Founder in US, founder in Israel
2. Product/Engineering alignment
3. Constant flying
How
When
What
4. STSSTIAP  Early product
5. Don’t wait for funding
6. Don’t wait to complete Pilot in Israel
7.Get out of the building
8.Hire US employees
9.Prioritize PR (when ready)

35. Do Your Research

36. Challenges of Israeli Startups
Fundraising in the US?
Creating Momentum Remotely
Establishing Local Presence
Q&A

37. Thank You
gil@upwestlabs.com