nitin mixing digital presentation 11 09-12 nd

1The UK-Israel digital & tech opportunity 12/09/2012

The UK-Israel digital & tech opportunity 12/09/2012 2

The UK-Israel digital & tech opportunity

Nitin Dahad12 September 2012

Agenda

• Introduction to UKTI and its services

• Brief overview of Israeli digital/tech environment

• The UK and Israel

• How UKTI can help

• Summary


INTRODUCTION TO UKTI


The role of UK Trade & Investment

• Dedicated to helping UK exporters in global markets

• Provide expert trade advice and practical support to UK-based companies

• 2,400 staff in 96 countries, ensuring support every step of the journey

• Support for participation at selected trade fairs

• Sector based outward missions to key markets

• Bespoke market intelligence, market reports

• Last year UKTI helped 25,000 UK companies improve overseas performance

• £30bn additional sales generated through UKTI support in 2011/12

• 90% of companies supported are SMEs, and 2/3 have less than 50 staff


UK Trade & Investment – also supporting inward investors

• UKTI also supports foreign companies looking to invest or locate in the UK

• The UK is the number one for headquarter operations in Europe

• In 2010/11, UKTI was involved in some 849 inward investment projects

• 3,200+ companies increased UK R&D activity as a result of UKTI support

• In 2009/10, R&D investment into the UK increased by 36% over 2008/09

• Some selected UK facts:

– UK is world’s second largest exporter of TV programmes

– UK has the top four universities in Europe

– London is the world capital wi-fi hotspot use


A range of services to support export and overseas growth ambitions

• Passport to Export

– Planning advice and support for new and inexperienced exporters

• Gateway to Global Growth

– Strategic review, planning and support for experienced exporters

• Overseas Market Introduction Service

– Tailored market and industry information and identifying potential contacts; or assist in planning an event in market


A range of services to support export and overseas growth ambitions

• Events and seminars

– Sector specific and market-based activities in the UK and all over the world

• Trade missions

– Helping UK companies to visit a market of interest and have face-to-face contact with prospective business partners and buyers

• High Value Opportunities programme

– Proactively identifying global supply chain opportunities around the world in major projects


ISRAEL DIGITAL/TECHENVIRONMENT


Israel – digitally connected

The UK-Israel digital & tech opportunity 12/09/2012 10Source: http:visual.ly, 2011

Israel in the Digital Age 2012 – Google funded study

• Google Israel and Mahshsov Institute study: “Israel in the Digital Age 2012”

• Over 50% Israeli Internet users use social networking at least once a week

• 73% of users age 15-17 use social networking every day

• 25% of teenagers age 15-24 writes a blog

• 12% of older users writes a new blog post each day

• Users age 15-24 spend 20% of Internet surfing time on their mobile phones

• 75% of Israeli web surfers watch videos on the internet

• One third of Israeli Hebrew speakers only visit Hebrew language sites

• Survey sample was 1,200 people of varying demographics


Israel digital/new media sector

• Over 1000 new media companies in Israel, active in

– Internet applications and services,

– e-commerce and marketing

– Online advertising, entertainment and video

– Search and social networks

• These companies play in key areas including:

– Broadcast, digital & cable TV, IPTV and satellite services

– Content creation, delivery and management

– Gaming and new interface solutions in consumer electronics


Technologies developed in Israel

• Intel Centrino and Pentium 4 microprocessors

• NDS conditional access and DRM systems

• USB flash drives (M-Systems)

• VoIP invented by founders of VocalTec

• AOL Instant Messenger developed by ICQ

• Wi-Fi and WiMAX solutions pioneered by Alvarion

• Voicemail invented by Comverse

Source: The Israel Export & International Cooperation Institute


Multinational companies with R&D facilities in Israel

• Intel – one of the first tech investors in Israel in 1974, and now one of the largest private sector and tech employers in Israel with some 8,000 employees

• IBM – employs some 2,000 people in Israel

• SAP – employing about 800 people in Israel

• Siemens – employing about 800 people in Israel

• Microsoft – employing about 600 people in Israel

• Google – employing about 250 people in Israel

• Plus: PayPal, Cisco, Ericsson, HP, IBM and others


Israeli high-tech funds and M&A 2011/2012

• Total Israeli high-tech exits in 2011 totalled $5.23 billion

• 85 Israeli high-tech companies were acquired or merged in 2011

• Average deal size of $60m in 2011

• Largest deal in 2011 was, however, ad technology company MediaMind, acquired by DG Inc for $517m

• In 2H2012, Israeli high-tech companies raised $453m from venture investors

• Key sectors continue to be Internet, software and communications

• Latest news: Pitango announced $150m raised as part of $250m fund to invest in Internet and media, mobile apps, data storage and enterprise computing, telecoms, software, semiconductors and renewable energy


Israel, the ‘Start-up Nation’

• Map connecting and promoting tech community in Israel

• Currently lists:

– 754 startups

– 13 accelerators

– 13 R&D centres

– 8 Coworking spcs

– 19 Investors


UK AND ISRAEL


UK and Israel

• Bilateral trade is now almost £4 billion: £1.57 billion exports from the UK, and £2.18 billion exports from Israel (2011 figure)

• Majority of trade is in pharmaceuticals, machinery, diamonds and technology

• The UK is Israel’s third largest trading partner (Israel-Britain Chamber of Commerce)

• Israel is UK’s largest partner in Near East and North Africa, and its 32nd largest export market worldwide

• Israel is among top 20 countries investing in the UK


UK-Israel Tech Hub

• Launched in October 2011, following agreement between Prime Ministers David Cameron and Benjamin Netanyahu

• Objective: to promote economic growth and innovation in the UK and Israel through cooperation between technology companies in both countries

• Positioning the UK as a natural partner of choice for Israel in technology

• Ensuring UK understands and makes use of Israeli R&D and innovation

• Focus of the hub on technology, business and finance collaboration in:

– Digital

– Life Sciences

– Cleantech


Creating a UK/Israel partnership in technology

• UK Israel Tech Hub supported by UK-Israel Tech Council, co-chaired by UK Minister for Universities and Science David Willetts and Israel’s Chief Scientist Avi Hasson

• The Hub defines key sectors where UK/Israel collaboration could be complementary and fruitful

• Also aims to identify and bring innovative Israeli technology and R&D to UK-based companies

• Positioning the UK in Israel as a centre for technological and services innovation and as a partner of choice for Israeli technology companies

• Tying Israeli technology players into UK capital markets


TeXchange – a UK/Israel tech and innovation exchange programme

• Launched in August 2012, as an exchange programme between British and Israeli entrepreneurs

• First of 3-4 programmes a year to take place on 26-29 November 2012

– Approximately 15 Israeli entrepreneurs will head to UK for a programme of events to meet potential customers, investors and partners

• November programme focus is internet companies with solutions in gaming, adtech, mobile, e-commerce, social media, video and more

• Future activity will include taking selected groups of British entrepreneurs to Israel with a similar programme to tap in to the power of the Israeli ‘Start-up Nation’The UK-Israel digital & tech opportunity 12/09/2012 21

UKTI in Israel

• Key sectors of activity for UKTI in Israel are

– Creative media, digital

– Life sciences

– Cleantech

– Electronics and electro-optics, and electronics in defence

• Most British companies that come to Israel are looking at life sciences

• Market opportunity in all other sectors of digital/technology is good

• Consider collaborating with local partner for market entry, though not essential


How UKTI Israel can help

• For British companies, UKTI Israel offers a range of services to help evaluate the Israeli market, identify contacts, arrange targeted visits and engage with potential partners and customers

• For Israeli companies, UKTI helps with advice on setting up a business in the UK, information on locations, finance, recruitment and assistance with finding partners in the UK

• There are over 250 Israeli companies with their own operations in the UK

• In last 4 years, UKTI Israel has helped 60 Israeli companies to set up in the UK and create more than 1000 new jobs


Summary

• Israel is a digitally connected market, with a good profile of digital users

• Presence of major global tech players + entrepreneurial culture ensures a sound tech ecosystem as potential partners and customers

• Israel has a track record of pioneering globally used technologies

• Israel has a well developed investor/VC ecosystem looking at digital media, Internet, software, mobile apps, communications and electronics

• UK-Israel trading history is strong and growing

• UK Israel Tech Hub designed especially for partnership and collaboration

• UKTI offers a range of services to support market evaluation, entry and growth in Israel


nitin mixing digital presentation 11 09-12 nd

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