israel's strong economy powered by innovation
TRANSCRIPT
March 2016
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Disclaimer
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Israel, a strong economypowered by innovation
4
Israel grew even as global economies contracted
2007 2008 2009 2010 2011 2012 2013 2014-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%Global financial
crisis
% GDP growth
Sources: OECD Data, Trading Economics
OECD
Israel
5
Israel is one of the healthiest free-market economies
Japan
Germany
Israel
US
UK
Australia
Canada
OECD
France
Italy
3.0%
4.8%
5.1%
5.4%
5.5%
6.0%
6.8%
6.9%
10.4%
12.3%
China
Israel
Germany
Canada
UK
Euro Area
France
US
Italy
Japan
41%
68%
75%
87%
89%
92%
95%
103%
132%
230%
UNEMPLOYMENT (% of workforce) DEBT (% of GDP)
Sources: OECD Data, Trading Economics
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A global innovation leader
• Highest # of startups / capita• #3 NASDAQ listings after US, China• Scientific institutions ranked #3• #2 in space science• One of 10 countries capable of satellite launch• Highest # of scientific papers / capita
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The source of some of the most ubiquitous technologies
Firewall VoicemailCrowd-sourced
navigation
Visual driver
assistance
Drip irrigation
Gesture recognitio
n
Instant messagin
gUSB flash
drivePill
camera
8
350+ R&D centers of major global corporations
Pentium 4,
Centrino
Instantsearch
9
Limited naturalresources
“Island” with few open
land borders
Nation built by immigrants from
nothing in 50 years
Former USSR scientistinflux in the 1990s
IDF: critical projects with tight
budgets/deadlinesSupportive
government programs
How Israel became a major innovator and technology exporter with an international mindset
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Israel, a compelling venture market
11
VC investors signal strong confidence in Israel
MexicoBrazilJapan
AustraliaIndia
UKChina
CanadaIsrael
US
2.42.7
3.03.23.3
3.53.53.6
3.94.2
On a scale of
1-5,what is
your confidence
level in each
country?Source: Deloitte and NVCA 2015 Global Venture Capital Confidence Survey (208 VC and PE investors interviewed)
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Capital outflows exceed inflows, significantly
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
1.6 1.8 2.11.1 1.3
2.1 1.9 2.33.4 3.2
10.8
4.4
2.7 2.7 2.6
5.4
9.8
6.77.8
9.0
Source: IVC
RaiseExit
$b
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Increase in growth deals: maturity of the local market
$0
$200
$400
$600
$800
$1,000
$1,200
$20m+
<$5m$5-10m$10-20m
Capital raised by deal size, $m
As part of a sea change in the local market,
companies are raising much
larger rounds in order to build
large, standalone businesses
Source: IVC
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And much larger exits as a result!
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015$0
$2
$4
$6
$8
$10
$12
6.9
0.5
6.4
2.8 1.6
2.7 >$500m
exits
Annual exit proceeds from M&A, $b
Source: IVC
Thank you