March 2012

On the agenda

• Vision & mission

• Israel, land of start-ups

• Investment strategy

• Portfolio

Telecom Internet Media Entertainment

“zone”

Vision

To build global media companies using the

strengths & advantages of Israeli global

leadership in the fields of hi-tech & internet

MissionTo Build 5 to 7 global independent and successful media companies

in the next 7 years

Lead Investors

Ilan Shiloah Nir Tarlovsky

$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

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

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

Population (M)

Median age (years)

GDP capita (USD k)

Unemployment%

State

Israel UK

62.4

40

34,800

7.8

Israel - a western economy in the Middle East

63.1

39.9

33,100

9.3

France

46.1

40.5

29,400

20.1

Spain

81.2

44.9

35,700

7.1

Germany

60.7

43.5

30,500

8.4

Italy

7.7

29.4

29,800

5.6

Population – Euromonitor (2010)GDP, Median Age, unemplyment – CIA, World factbookIsrael Central Bureau of Statistics http://www.cbs.gov.il

“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

Israel, a land of start-ups

Israel, a land of start-ups

http://www.vccafe.com/jon-meved/israel-second-largest-concentration-of-startups-per-capita-following-silicon-valley/

• 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/

Financial Times 30/11/11

Over 3,000 active startups in Israel

Second in number only to the USA

Biz Dev Israel

International recognition for leadership in the fields of hi-tech & start-ups

2009-2010126 Israeli companies were acquired or merged

IVC’s 2010 exits report

• Average acquisition deal size was 35M$

a dollar ratio of 3:1

IVC’s 2010 exits report

• 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

115 Israeli companies on NASDAQ (Total revenue of 56B$)

http://www.themarker.com/markets/1.596686

• 30 companies on various European exchanges

Some of Israel’s ‘Star’ Companies

PC Board Inspection

Flash Memory acquired by SanDisk for $1.3 bn

Generic Drugs

patient-friendly products

Telecom Billing

Voicemail

Green energy

Firewalls

Software Performance

 digital solutions

management solutions

Market cap: 44.13B Market cap: 9.3B Market cap: 5.2B

Market cap: 1.6B

Market cap: 393.7MMarket cap: 447M Market cap: 1.2B

Market cap: 401M Market cap: 459M

Market cap: 1.9B

Source: yahoo finance

Strong internet players

Performance digital media group

Rich media ad server

toolbar platform instant messaging

Website builderOnline forex trading Search engine

behavioral targeting

In-text advertising

search engine Online gaming

Online gambling Digital interface

Israel is highest in R&D investment

Source: central Bureau of Statistics

National expenditure on R&D as percentage of GDP 2009

80 of Fortune 500 have R&D centers in Israel

Source : Biz Dev Israel

Global companies invest billions in Israel

Source : Biz Dev Israel

$6 B

Most have made significant investments and acquisitions in Israel

$3.1B $664M

Capital Raised by Israeli High-Tech Companies by Sectors by Year (%)

IVC 2011 YEARBOOK Israel High-Tech, Venture Capital and Private Equity Directory

Internet – the highest growing sector

!

IVA - Technology Innovation as a Magnet for Venture Investments

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

"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

From Jaffa to Java

Investment Strategy

Diversified Portfolio/deals Telecom Internet Media & Entertainment

(8-10 new investments per year)

1

Leverage and expend OCS Funding to invest & reduce risk

(1:7)

2Business Practices- OCS

OCS - Office of the Chief Scientist (ministry of industry)

Average initial investment 400-600K$ per start- up

3

Follow-up Investment - Focus on “winners”

(1-3 every year)

4

500K- 1,000K$

Investment Criteria

A 1-3M$ investment required to become cash

flow positive

1

Digital sales directly to the end users

2

Ability & Visibility to become an independent company

3

Strong entrepreneurs that have the capacity & ability to built an

independent company

4

Portfolio

Consumer

VISUAL

TotalBooks

Add-Tech

pLURALIS

Sonana

Business Solution

Video

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%

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

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

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

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%

Empowering Publishers

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

A shared trainingexperience 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

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%

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

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

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

Investment Stages

Thank You