israel an insider's look

2

Oh No…

Not THIS again…

• A perspective from the inside on how it

looks from the outside

• A new phase in Israel’s Tech evolution

Principal @ Gemini VC

VP Sales & Biz Dev @ Balink

Founder @ VentureApp

Investment Manager

@ Naiot Venture Accelerator

New Media Manager

@ Yes Satellite TV

IDF Major

Top writer on Quora,

Over the past 2 years.

Israel

IDF

Mid east Conflict

VC

Start-ups

Biz Dev

10 AM 10 PM

10 AM 10 PM

BriefingGo inIntense fightingDebriefing, BriefingAnd after 10 days…Update command, get new orders Missed out on Johnny’s B-day… You find the 2nd one and destroy it3 weeks later, you head home.And continue working on Israel’s 2nd IoT Conference.Some more intense fighting

Nablus Jenin Ramallah

Rawabi, the new Palestinian City And I thought

you’d enjoy this

8.7 miles

“From the river to

the sea” is chanted

by people called

“Peace activists”

41 miles

During July 2014,

My family was on

one side, My enemy

was on the other

Both still are

59 miles

The distance

between the Ben

Gurion Airport and

the West bank is

less than 5 miles

4.8 miles

8,500 sq miles.Roughly the size

of New Jersey

• It’s easy to paint the conflict as “Strong = Aggressor” and

“Weak = Victim” (When violence always serves anti Israeli sentiment).

• Israel is open to foreign media, even Al Jazeera, it

backfires, but such is democracy and a good thing too.

• Open debate and freedom of speech gives room for

internal criticism in Israel. Think of the last Palestinian

you heard criticizing the PA in the West Bank.

• The common opinion of Palestinians on the conflict is

not widely discussed.

• The amount of short lies, out of context claims, and

exceptions presented as rules is just too overwhelming.

• The first time the term “Palestinian Arabs appeared, was

with the British mandate in 1920 (But things change over a

century….).

• There were 650,000 Jews, and 330 Jewish settlements in

the land BEFORE 1948.

• The first time the world recognized the 2 state solution

was Nov. 1947:

• The future Israel accepted – The Palestinians Joined a

Pan-Arab annihilation war (A second attempt went down in June

1967 - Both didn’t work).

• Zionism never has and does not contradict a 2 state

solution.

• That this conflict is the biggest issue in the mid east and

origin of the unease in it.

1 state solution

Yugoslavia #2

Annexation

THIS would be

Apartheid #2

2 state solution

Not a happy

Marriage, but a

Civilized DivorceIsraeli Territories

Palestinian Territories

Simple, right?Wrong:

Jordan Valley

Connection

Land swap

Jerusalem

Unsolvable?

No.

Simply serious

issues that

require serious

people.

• A terrorist died, he was

next in line, Never reelected

(who has time for

elections…)

• Net worth $100M … in

money that isn’t his.

• Does not deny the

holocaust, just blames

Zionism for it.

• Does anything but

negotiate, fears change.

• Serial winner of elections through fear. Has nothing else to sell.

• Has very creative memory, especially about his own actions.

• PM 4 times. Just like Ben Gurion, Comparison says it all.

• Hooked on status Quo, fears change.

Simple, right?

“A leader takes people where they want to go.

A great leader takes people where they don't necessarily want to go, but ought to be.”

Rosalynn Carter

Israeli

Right Wing

Israeli Left

Wing

Israeli

Centralists

Orthodox

Jews

Israeli

Arabs

2013

Elections

43

3 Parties

(Even

split)

29

4 Parties

19

1 Party

18

2 Parties

11

3 Parties

2015

Elections

44

3 Parties

(1 with 30)

29

2 Parties

21

2 Parties

13

2 Parties

13

1 Party

Change (?) (+1) (0) (+2) (-5) (+2)

“A leader takes people where they want to go.

A great leader takes people where they don't necessarily want to go, but ought to be.”

Rosalynn Carter

Both people need change.

Change requires leadership.

Neither side has it.

Send CV to: getusoutofthismass@mideast.org

Israel’s Population: 7.9 Million People

Hi-tech exports account for 45% of GDP

Number of technology companies in Israel:

5,342

Number of R&D Centers: 279

Companies listed on Nasdaq:

74 (Ranked 3rd)

23

Source: Bank of Israel, OECD Statistics

Private & Public Venture

Sector

IT Skills

Innovative Capacity

Flexibility & Adaptability

Scientific Research

24

Source: IMD World Competitiveness Survey

R&D Expenditure (Private

& Public Sectors)

Accessibility to Capital

Markets

Entrepreneurship

Quality of Academic

Research

Israeli

Success

StoriesLeading

Multinationals

in Israel

Great Israeli

Start-Ups

Israel has the highest

number of R&D centers

of global companies in

the entire world outside

of the US:

279 companies.

Growth & Buyout Funds

Vodafone

Ventures

Inimity

Angels

VC

Seed

1. Israel is an immigrant country

2. Necessity is the mother of invention

3. Education

4. Investment in Innovation

5. The IDF Technologies

6. Unique intelligence and data tech capabilities

7. The military service

8. Local market too small

9. "Chutzpa"

10. Efficiency over protocol and hierarchy

1. Chief Scientist grants for R&D companies

2. Technological Incubators

3. Tnufa fund – Pre Seed boost for IP potential

4. Binational funds and Eureka program.

5. Incentives for foreign investors.

6. Incentives for foreign companies.

30

Source: Vintage Ventures, IVC Estimation*

80’s 1992 1996

WAVE I

1999

17 Funds

$500 millionraised

39 Funds

$1.5 billion raised

2004

36 Funds

$3.6 billion raised

PIONEERS GROWTH EXPANSION CONSOLIDATION

85 Funds

$6.5 billion raised

2008

25 Funds

$3.1 billion raised

MATURITY

2015

WAVE II WAVE III WAVE IV WAVE V

What’s ahead?

Survival of the fittest.

In 2014, Israeli high-tech capital raising set an all-time record

as 688 companies attracted $3.4 billion.

The amount was up 46 percent from $2.3 billion raised by

659 companies in 2013.

$15B In Exits

$9.8B in IPO

18 Offerings

$5.2 in M&A

52 Deals 32

Since 2011, we have witnessed of a rising number of Israeli IT, VC backed companies, postponing a quick exit option, and advancing towards higher valuations and annual sales.

(The following figures are accurate as of December 2014)

21 Israeli IT companies crossed the $400M valuation threshold, compared with only 3 in 2011.

15 Israeli IT companies crossed the $100M annual sales threshold, compared with only 6 in 2011.

90 Israeli IT companies crossed the $10M annual sales threshold, compared with 50 in 2011.

7 Israeli IT companies performed an NASDAC/LSE IPO in

2014, with an average valuation of $1.75B,

compared with none in 2011. 33

Israel is making a transition from being the “Startup Nation"

(virtually thousands of startups in the country, the highest per

capita ratio) Into becoming a “ Tech Category Leader Nation.“

In other words, Israel is shifting into a phase wherein

founders and investors alike, recognize and focus on fortes,

and are aligning plans accordingly.

In terms of which industries, stand out: Advertising tech,

big data, media, cyber security, enterprise software

(Cloud!) IoT.

Particularly hot niches are: Mobile, consumer web

and business-to-business-to-consumer software.

Next Gen UI

SaaS 2.0

Ad Tech

Cyber Security & Fraud Detection

SMB & SOHO Engagement

Transportation Tech

IoT

Next Gen UI

SaaS 2.0

Ad Tech

Cyber Security & Fraud Detection

SMB & SOHO Engagement

Transportation Tech

IoT

Israeli

companies

Are well

positioned

To become the

Infrastructure

for IoT.

Fintech

Indoor LBS

Social Apps

Social Media Monitoring

Here is the challenge.

Here is the opportunity.

I could be wrong you know…

https://www.quora.com/Noam-Kaiser

This presentation on SlideShare

noam@gemini.co.il