April 10, 2020
Democratizing access to venture capital – OurCrowd – NOAH19 London

Democratizing access to venture capital – OurCrowd – NOAH19 London


Thank you for those who are here early in the morning we’re gonna run through some quick slides and Talk more about some of these topics that we just discussed Global VC as you probably are aware is still extremely robust last year Was the best year in record? 2018 2019 is shaping up to be a very good year, but it’s gonna be slightly down in particular because the Chinese Numbers are lower and when China goes south and the overall numbers go south But in general there’s one ecosystem of just continuing to power ed and that’s Israel it’s just absurd when you look at these numbers and these are the numbers from 2013 we were very lucky at our crowd that we started in 2013 and this Incredible stair-step really got moving at that point last first half of this year almost four billion dollars invested in the Israeli ecosystem and We’re on track to do about eight billion in total this year that makes Israel. Just an absurdly Potent venture ecosystem. For example if you compare Israel, Australia, Australia has a GDP of 1.3 trillion dollars 25 million people and Their total venture investment for this year will be about 900 million So Israel at 8 billion Australia at 900 million gives you a sense of how potent Israel is by the way the entire Numbers for Latin America if you take all of the Latin American continent this year will be about 2 billion dollars So Israel about 4 times the size of investment is Latin America So the people at Davos have you know named us now the most innovative? country in the world The M&A activity in Israel is going through the roof and there are now primarily Multi-billion dollar companies which are getting the attention and this is leading to a large number of Corporations and multinationals to set up shop in Israel permanently and the number now is well over 400 and there are about a new Multinational setting up shop in Israel. Every two weeks at the moment Israel Also is is quite potent in AI which we all know is sort of the most Sexy and important area in terms of Technology and we’re neck-and-neck with China as number two behind the u.s in terms of total number of artificial intelligence startups our crowd as I had spoken before is Already, you know sharing a quite a large chunk of this ecosystem We’re one point actually three billion in assets we’ve made 200 individual company investments like the beyond meat and we have now 19 different funds and Investors almost all over the world. We’re the most active venture investor in Israel. According to pitchbook or here go ask them That’s the second year running and our model is unique and that we both enable individual what Marco called retail individual wealthy investors who are accredited together with family offices and Institutions and we’re finding now is more and more institutions are coming our way and saying you know what? We have a lot more than a couple of million dollars and we’d like to invest many Double-digit millions of dollars in venture we’re having trouble because we don’t have a team of five or ten people We’d like to deploy 20 30 40 million dollars and that family office area really is our sweet spot So anyone who would like to talk? I’m gonna be leaving unfortunately on a jet plane. But Andy Kay who can raise his hand over there is gonna be here today He’s the president of our crowd it would be happy to be meeting with you all So I think Johnny Neufeld who works with them is here in the audience the difference on our platform. Is that it? It’s democratic the individual at the $10,000 level gets the same treatment not just as Bill Gates But as the family offices and whatnot our scale is huge. I mean, there are very few venture funds so I have 200 Companies in their portfolio who are represented all over the world and we’re highly diversified in a multi vector basis We are sector agnostic So we’re doing all sectors all stages from early to late stage and now increasingly all geographies This is becoming very important because people are realizing that if you’re not Investing in the big companies when they’re still private you’re waiting too long ok, they’re even giving it a name now called the the FBO which is like the the last the final, you know private offering before the public offering comes and then there’s of course the penultimate Final offering which would be the the poof o or Pupo or whatever it is I don’t like that name, but that’s from Bloomberg just of a couple of days ago More important than Bloomberg is what? Secretary of the SEC the chairman of the SEC J Clayton has been saying it’s like he’s been reading our hymnal, and he’s basically saying we must democratize access To the venture capital class the fact that today when you look at it, there are literally a couple of hundred organizations and wealthy families who control the entire tech finance business is Not tenable. We have to open up access to millions of individual investors and Hundreds of thousands of institutions and corporations who want a piece of this bonanza and that’s what we’re doing When you look at our crowd at any given moment You’re going to see today north of 20 different active funding opportunities Remember the difference in a private companies We’ve got to wait either by leaving around or joining around to get you in You can’t just pick up the phone and call your broker and say buy me this startup when it’s a private company So we have to organize the round. We have to set the price. We have to set the terms we do that Okay and then we invite you to join us and in any given time there are about 20 companies and they Run the gamut. I’ll show you at the end just a quick flash of what some of these companies look like This is our portfolio in general It’s again quite diverse including drones and AG tech food tech cyber security Ecommerce the cloud you name it if it’s tech driven, we’re investing in it And we’ve had tremendous results. We’ve had actually 35 exits to date including the beyond meet IPO and the uber IPO These are some of our M&A transactions over the last year and at the moment our portfolio is becoming quite Robust in terms of later stage companies. We actually have just crossed 50 companies in our portfolio who have valuations of over a hundred million dollars We just announced two weeks ago a major partnership with a large us broker dealer called Stifel Nicolaus Wiesel which is number seven in terms of size in the US, but more importantly they have a million clients and 2,200 financial advisors who for the first time in America are now going to bring to Main Street Stifel is a st. Louis Midwestern firm. So we’re literally going to implement this strategy of Democratizing access to venture capital and we’re very very proud of this We’ll be curating both individual deals with Stifel fund products as well as getting their help as an investment bank They have the biggest research platform in America with our portfolio companies. We also are very proud here to remind Friends at NOAA that we’ve signed a partnership with NOAA to work in Europe together and we’re delighted to be here We’d like through knowit again get help with their exceptional investment banking in a boutique and very very smart way as well as their connections to family offices across the Continent we have the 19 funds we mentioned some of them up on stage. Our funds are doing very well These are some preliminary Numbers but in particular we have an index fund called the OSI 50 which allows you to take 50 companies on our crowd and put $1,000 to work in each one with a $50,000 Minimum investment and this fund has got tremendous results they’ve already had five exits the vintage by the way was 2017 and the DPI or the Distribution as a function of paid in capital is already point two three Which is about four years ahead of Cambridge associates top quartile performance Our companies are getting great. Press we were the lead investor in a company called. Halo Which is doing artificial intelligence chips, and they’re being rumored to be literally the the hottest thing in the AI acceleration area and we were part of a team that funded the spin out of kartika, which is a new Automotive company there were three other investors with us BMW Toyota Continental and our crowd We were the only venture investor invited into this company and this company you’re gonna hear a lot about them coming up We also have incubators right now. We run three incubators in Israel getting ready to operate our incubators We have more, you know call it farm teams Companies coming into the bigger platform. We have launched our innovate program for big corporations where we’re offering all kinds of building blocks ranging from corporate venture capital as a service to Corporations who would like to start making investments but don’t have the time or the resources To put hundreds of millions of dollars to work would like to put tens of millions of dollars to work Intelligently, we’re doing that We’re providing corporate innovation education together with NYU and we have a whole department Here who provide added value to our portfolio? Companies because today for us to get into these companies we have to not compete on just a higher valuation That’s stupid. Okay. It’s on higher added value How do you help the small companies get bigger quickly? We’re signing partnerships with major corporations around the world Toyota just announced their partnership with us a week ago We’ll be scouting for Toyota all over and most importantly we want you to come and join us in Israel February 13th to the our crowds summit. There’ll be about 20,000 people registered it’s a huge conference. If you haven’t been to Israel haven’t been to startup nation. You want to check this out? I’m going to leave you with Couple of minutes a couple of seconds about what it’s like and we get volume up here a little bit And this that opportunity existed in my country your country and every country in the world and it is our responsibility to Showcase My father says today I operate under this So I’m gonna leave you in the next 90 seconds with 10 flash companies to give you an idea in just one sector how the power of the crowd Can get active in some of the most exciting companies out there and this is a medical Segment of our platform Alpha Tau is changing the way we fight cancer and there are human trials 80% of their patients had their solid tumors completely destroyed in 3 days using a new kind of radiation Check out Alpha Tau Barcode Diagnostics is doing personalized chemotherapy by barcoding the chemo candidates Injecting it in you and then three days later doing a biopsy to see which candidate works. It was just published in Nature bol Pharma, is Israel’s largest Medical cannabis player sales going through the roof opening up new facilities in Portugal a big leader especially in pharma grade extraction of cannabis oils brain cue is using a next generation of electromagnetic Healing to literally fuse severed spinal cords and create an incredible neuro Healing path which has partnered with Google at the moment dream Med is working with Medtronic on the world’s first truly Artificial pancreas where Coe invested there with Roman Abramovich L mind is doing deep neural intervention as well as tracking of Concussion as well as Alzheimer’s and neural health H. Il medical is a new proton beam therapy Company who is literally taking these quarter billion dollar proton beam therapy Facilities and turning them into a desktop device Insight tech is the lead incisionless surgery. They are using focused ultrasound to stop Parkinson’s tremor, we participated in 150 million dollar round of funding with a 12 million dollar check together with the Koch brothers Mehta where is the first company to have a software solution? to stop the opioid crisis to prevent leakage of opioids at hospitals and Individual doctors memik is one of the leading flexible robotic surgery platforms starting in particular on vagina Can’t canal surgeries, it’s an Extraordinary company you’ll be hearing a lot about memik. Nano medic is using electrostatic gun to spray on artificial skin for burn patients and for wound healing Home one is doing desktop pulmonary testing instead of going into the body box Which looks like a British phone booth? Oh and This company as you can see remarkably real view is doing literally real holographic imaging in the Operation room in the O R where you can actually see the heart in front of you Re walk of course went public and is the leading company providing paraplegics with the way to walk again? This is an example of what? You can do when you unleash the power of the crowd when you get 40,000 and hopefully with the help of Marco and Noah four hundred thousand or four million Investors who are breaking into the venture capital asset class. We’re not going to get second-rate companies We’re going to get leading companies that are changing the world We’re going to make great returns and we’re going to do good at the same time Thank You, Marco So much always Amazing to hear you

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