The time general presentation apr 12 thenextweb
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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.
The time general presentation apr 12 thenextweb
- 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 $20M in 27 new start-ups positioned today as the leading early stage investor in the country in the Time “zone” (telecom, Internet, media, entertainment) * Including commitments
- 9. To Invest In Israel Main source of information: • Biz Dev Israel- Research company • Israel startup guide- Information about Israeli startups • IVC’s 2009 exits report • US patent office • Bank of Israel • central Bureau of Statistics
- 10. Israel - a western economy in the Middle East State Israel UK France Spain Germany Italy Population (M) 7.7 62.4 63.1 46.1 81.2 60.7 Median age 29.4 40 39.9 40.5 44.9 43.5 (years) GDP capita (USD k) Unemployment % 5.6 7.8 9.3 20.1 7.1 8.4 Population – Euromonitor (2010) GDP, Median Age, unemplyment – CIA, World factbook Israel Central Bureau of Statistics http://www.cbs.gov.il
- 11. Israel, a land of start-ups “The Israeli hi-tech industry has become a huge success, with a large amount of IPOs, second only to the US, and high levels of innovation” Larry Ellison, Oracle
- 12. Israel, a land of start-ups • 200 Israeli start ups emerge annually - more than any European country • Second-largest concentration of start-ups per capita after Silicon Valley • The number of funded startups has doubled since 2000 • Up to 400 Israeli companies have branches in the US • Among the highest number of patents per capita in the world http://www.start-ups.co.il/ http://www.hayadan.org.il/israel-in-13th-place-in-patent-2108091/ http://www.vccafe.com/jon-meved/israel-second-largest-concentration-of-startups-per-capita-following-silicon-valley/
- 14. Over 3,000 active startups in Israel Second in number only to the USA Biz Dev Israel
- 15. International recognition for leadership in the fields of hi-tech & start-ups
- 16. 2009-2010 126 Israeli companies were acquired or merged • Average acquisition deal size was 35M$ 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 $664M Source : Biz Dev Israel
- 24. Internet – the highest growing sector Capital Raised by Israeli High-Tech Companies by Sectors by Year (%) IVC 2011 YEARBOOK Israel High-Tech, Venture Capital and Private Equity Directory
- 25. Many reasons for Israel‟s success in the field of hi-tech • Major R&D invested in defense & intelligence sectors in the IDF ! • Highest ratio of PhDs and engineers per capita in the world • World-class universities – Weizmann, Technion, Tel Aviv & Jerusalem, Ben Gurion • Favorable Regulatory Environment • Strict international standards for protection of trademarks, patents and intellectual property of all kinds IVA - Technology Innovation as a Magnet for Venture Investments
- 26. From Jaffa to Java "Israel is a country that is hard-wired to compete in a flat world. It has a population drawn from 100 different countries, speaking 100 different languages, with a business culture that strongly encourages individual imagination and adaptation and where being a nonconformist is the norm. While you were sleeping, Israel has gone from oranges to software, or as they say around here, from Jaffa to Java.” Thomas L. Friedman of the New York Times
- 29. 1 Diversified Portfolio/deals Telecom Internet Media & Entertainment (8-10 new investments per year)
- 30. 2 Business Practices- OCS Leverage and expend OCS Funding to invest & reduce risk (1:7) OCS - Office of the Chief Scientist (ministry of industry)
- 31. 3 Average initial investment 400-600K$ per start- up
- 32. 4 Follow-up Investment - Focus on “winners” (1-3 every year) 500K- 1,000K$
- 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
- 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
- 55. Thank You
Editor's Notes
- #7: למחוק אחוזים + להוסיף פאי בעלות בשפף לאחר מכן
- #11: http://www.euromonitor.com/spain/country-factfilehttps://www.cia.gov/library/publications/the-world-factbook/fields/2177.htmlhttps://www.cia.gov/library/publications/the-world-factbook/rankorder/2004rank.htmlhttps://www.cia.gov/library/publications/the-world-factbook/fields/2129.html?countryName=&countryCode=&regionCode=%C3%81
- #15: לבדוק את המספר הזה שוב
- #17: V
- #18: Vנדרש לשנות את היחס3:1
- #25: Vhttp://www.ivc-online.com/upload/IVC2011/GetCopy/Book_short_Version.pdf
- #26: להוסיף כתבה על 8200 מה-financial times