This document provides an overview and summary of an investment strategy and portfolio. The strategy aims to build 5-7 global media companies in 7 years by investing $20-25M from government funds into 8-10 Israeli startups per year focused on telecom, internet, media and entertainment. The portfolio currently includes 27 startups invested in since 2009, including companies in consumer, visual, add-tech, business solutions and video sectors. Several of the portfolio companies are described in 1-2 sentences highlighting their technology, traction and funding status.

1. March 2012

2. On the agenda
• Vision & mission
• Israel, land of start-ups
• Investment strategy
• Portfolio

3. “zone”
Telecom Internet Media Entertainment

4. Vision
To build global media companies using the
strengths & advantages of Israeli global
leadership in the fields of hi-tech & internet

5. Mission
To Build 5 to 7 global independent
and successful media companies
in the next 7 years

6. Lead Investors
Ilan Shiloah Nir Tarlovsky

7. $20M of “free” government funds for Investment
• 1:7 Leverage government’s investment in Israeli start-ups
• $450k of non recourse loan for every start-up, paid by the start-up
• Investing in 8-10 new companies per year
• $4-5M Available for Seed Investments every year
• $500k a year for follow up investments
• $20-25M in the next 5 years
• No debt against those funds

8. Since mid 2009, The Time has invested*
over $20M in 27 new start-ups
positioned today as the leading early stage investor in the country in the Time “zone”
(telecom, Internet, media, entertainment)
* Including commitments

9. To Invest In Israel
Main source of information:
• Biz Dev Israel- Research company
• Israel startup guide- Information about Israeli startups
• IVC’s 2009 exits report
• US patent office
• Bank of Israel
• central Bureau of Statistics

10. Israel - a western economy in the Middle East
State
Israel UK France Spain Germany Italy
Population (M) 7.7 62.4 63.1 46.1 81.2 60.7
Median age 29.4 40 39.9 40.5 44.9 43.5
(years)
GDP capita
(USD k)
Unemployment % 5.6 7.8 9.3 20.1 7.1 8.4
Population – Euromonitor (2010)
GDP, Median Age, unemplyment – CIA, World factbook
Israel Central Bureau of Statistics http://www.cbs.gov.il

11. Israel, a land of start-ups
“The Israeli hi-tech industry has become a huge
success, with a large amount of IPOs, second only to
the US, and high levels of innovation”
Larry Ellison, Oracle

12. Israel, a land of start-ups
• 200 Israeli start ups emerge annually - more than any European country
• Second-largest concentration of start-ups per capita after Silicon Valley
• The number of funded startups has doubled since 2000
• Up to 400 Israeli companies have branches in the US
• Among the highest number of patents per capita in the world
http://www.start-ups.co.il/
http://www.hayadan.org.il/israel-in-13th-place-in-patent-2108091/
http://www.vccafe.com/jon-meved/israel-second-largest-concentration-of-startups-per-capita-following-silicon-valley/

13. Financial Times 30/11/11

14. Over 3,000 active startups in Israel
Second in number only to the USA
Biz Dev Israel

15. International recognition for leadership
in the fields of hi-tech & start-ups

16. 2009-2010
126 Israeli companies were acquired or merged
• Average acquisition deal size was 35M$
IVC’s 2010 exits report

17. • In the last decade hi-tech companies raised $20 billion from investors
• Compared to over $50 billion of capital received through M&A or IPO exits
a dollar ratio of
IVC’s 2010 exits report

18. 115 Israeli companies on NASDAQ
(Total revenue of 56B$)
• 30 companies on various European exchanges
http://www.themarker.com/markets/1.596686

19. Some of Israel‟s „Star‟ Companies
Generic Drugs Firewalls Telecom Billing
Market cap: 44.13B Market cap: 9.3B Market cap: 5.2B
Flash Memory Voicemail management solutions
acquired by SanDisk for $1.3 bn Market cap: 1.6B Market cap: 1.9B
patient-friendly products Green energy digital solutions
Market cap: 393.7M
Market cap: 447M Market cap: 1.2B
PC Board Inspection Software Performance
Market cap: 401M Market cap: 459M
Source: yahoo finance

20. Strong internet players
Performance digital In-text advertising toolbar platform instant messaging
media group
behavioral targeting Rich media ad server search engine Online gaming
Online forex trading Search engine Website builder Online gambling Digital interface

21. Israel is highest in R&D investment
National expenditure on R&D as percentage of GDP 2009
Source: central Bureau of Statistics

22. 80 of Fortune 500 have R&D centers in Israel
Source : Biz Dev Israel

23. Global companies invest billions in Israel
Most have made significant investments and acquisitions in Israel
$6 B $3.1B $664M
Source : Biz Dev Israel

24. Internet – the highest growing sector
Capital Raised by Israeli High-Tech Companies by Sectors by Year (%)
IVC 2011 YEARBOOK Israel High-Tech, Venture Capital and Private Equity Directory

25. Many reasons for Israel‟s success
in the field of hi-tech
• Major R&D invested in defense & intelligence sectors in the IDF
!
• Highest ratio of PhDs and engineers per capita in the world
• World-class universities – Weizmann, Technion, Tel Aviv &
Jerusalem, Ben Gurion
• Favorable Regulatory Environment
• Strict international standards for protection of trademarks, patents and
intellectual property of all kinds
IVA - Technology Innovation as a Magnet for Venture Investments

26. From Jaffa to Java
"Israel is a country that is hard-wired to compete in a flat world. It has a
population drawn from 100 different countries, speaking 100 different
languages, with a business culture that strongly encourages individual
imagination and adaptation and where being a nonconformist is the
norm. While you were sleeping, Israel has gone from oranges to
software, or as they say around here, from Jaffa to Java.”
Thomas L. Friedman of the New York Times

28. Investment Strategy

29. 1
Diversified Portfolio/deals
Telecom Internet Media & Entertainment
(8-10 new investments per year)

30. 2
Business Practices- OCS
Leverage and expend OCS
Funding to invest & reduce risk
(1:7)
OCS - Office of the Chief Scientist (ministry of industry)

31. 3
Average initial investment 400-600K$ per start- up

32. 4
Follow-up Investment -
Focus on “winners”
(1-3 every year)
500K- 1,000K$

33. Investment Criteria

34. 1
A 1-3M$ investment
required to become cash
flow positive

35. 2
Digital sales directly to
the end users

36. 3
Ability & Visibility to become
an independent company

37. 4
Strong entrepreneurs that have
the capacity & ability to built an
independent company

38. Portfolio

39. Consumer
VISUAL

40. Add-Tech

41. Business Solution

42. Video

43. Business management platform for SMB
• Over 750,000 registered users
• 15,000 daily invoices
• MorgenThaler round Completed
• Business Insider top 20 global startups to watch
• thetime holdings – 15.05%

44. Automatic Creation of Smart Phone Apps
• 2 min to convert a web-site to native app, and
publish it in all 3 major app stores
• The only automatic service for Native App with
complete push notification capabilities
• Over 1500 sites converted with 200,000 installations
• Mobile Ad Network
• Forbes – 1 of 12 candidates to be the next
Instagram
• thetime Holdings – 35.5%
• In a middle of a $1.6mm round

45. TouchTV
The remote control of the future, for connected TV
• Joined R&D project with Sharp and Samsung
• Finalizing Android computability
• JVs with Hair, Hainsense and more are in negotiations
• First PO is expected by mid 2012 (100,000s units per month)
• thetime holdings – 32% + an option for 7.4%
• Looking for a new $1-2mm round

46. Bot and Hackers detection for sites
• Paying customers include – all major Israeli sites,
eBay (Denmark and NL), monster.com and others
• Israel Levy (ex CEO of CA IL) is the Chairman
• Long tail product to be launched Q2 2012
• Thetime holdings – 25% + 5.2% option
• Looking for a $1-2mm round

47. Empowering Publishers
Audience verifications
• Cookie free behavioral capabilities based on
breaking through technology
• The only audience verification service available
• Strategic investment by MediaMind
• Negotiations with Nielsen for commercial
implementation
• thetime holdings – 24%

48. Real Time 2D to 3D conversion
• Commercially implemented in Israel
• Discussions for commercial implementation with 10
major leagues
• VizRT strategic partner
• 2012 is expected to be the breakthrough of home 3D
• thetime holdings – 29.3%
• Looking for a new $2-3mm round

49. A shared training
experience for distant teams and mangers
• A breakthrough combination of social gaming,
virtual worlds and measurable data analysis.
• Sales to major IL enterprises.
• Next – global expansion
• thetime holdings – 37.5%
• Looking for a $1-2mm round

50. Market Neutral Stock Trading
• Stockpair is an innovative online platform for Pair
Options trading.
• Pair Options are based on the comparative
performance of the stocks, so the general market
direction, up or down, does not matter.
• thetime holdings – 23.5%

51. Radiation level alert on smart phones
• Around 200k downloads for BlackBerry and Android
phones.
• In discussions with France Telecom for a pre-
installed application
• thetime holdings – 29% + 7.8% option

52. Social Commerce Platform
• Revolutionizing eCommerce, focusing on media
content – music, games,
• Helping brands direct market to their fans via social
media and utilizing them as sales channels to their
friends
• Commercial agreements (in various stages) with
Warner Music, Universal, Disney and more
• thetime holdings – 30.3% + 9.2% option
• Looking for a $1-2 mm round

53. Long Term Saving Discovery and Management
• Discovery of “lost” long term saving plans
• Management and Benchmarking
• Soft Launch in Israel. Great market acceptance
• Next step penetration to Europe
• Very high User Value
• thetime holdings – 30.6% + 8.2% option
• Looking for $1-2mm round

54. Investment Stages

55. Thank You