Post on 08-Feb-2017
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Trends in venture capital and the Israeli ecosystem
Trends in Venture Capital
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Less IPOs, more late stage funds & acquisitions
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23 20 18
61 45 4875
6 1433 36 39 43 53
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6429 16
2121 29
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55 34
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83 74108
213 252
# of US Technology IPOs# of US Private Financings >= $50mValue of S&P 500 (inflation adjusted)
Source: Jay Ritter (University of Florida), Pitchbook20
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22.8
8.611.7
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31.6 32.137.3
46.8
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Total Deal Value for VC-Backed M&A Transactions$ Billions
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Interesting tech trends to watch
IoT
Industrial IoT
Platforms and Cyber Protection
Consumer and Smart Home
Drones
Physical Security
Platforms and control systems
Agriculture and construction
BotsChatbots for Commerce
Customer Support
Automation of processes
BlockchainOnline/mobile
payments
Smart contracts
Fraud Prevention
The Israeli Ecosystem
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Investing in Israel
Sources: EY Report, Geektime Annual Startup Report, PwC Exit Report, NASDAQ, Startup Nation Central
#1 Startups Per Capita
89companies on NASDAQ
#1 Expenditures on R&D
per Capita
$4BFunding raised in 2015
$11B 2015 exits and M&A
value
>50% Exports derive from Hi-Tech and Life Sciences
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The Israeli Culture“Chutzpah”
OK to fail
Immigrant culture – flexible, understand adversity, inventive
Dream big
Heavy responsibilities at early age
Source: Harvard Business Review, Erin Meyer
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Nurturing Environment for Startups
*Source: MapMe, The Marker
Value-add ServicesAccelerators Conferences &
EventsCo-Working
Spaces & Hubs
Press, PR and Research
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Government Support• Chief Scientist• Bilateral funds• Government funded accelerators• Economic delegation (IEI)
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The IDF - the Worlds Best IncubatorNon – hierarchical, flexible structure Ownership, impact and responsibilityDealing with ambiguityUnique hands-on training
– Cyber security– Big data, infrastructure & NLP– Hardware– And much more…
“There was a team of ten people in one room in the unit. I call it the magic room, because all of them created companies where the average market cap is a half-billion dollars.”
Avishai Avrahami, founder of
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Academic and Technical Leadership
#1 TAU has most VC
backed entrepreneursoutside US
(#9 Global)
4 Israeli Universities in top 50 Shanghai
ranking for CS
Sources: Pitchbook, Wallstreet 24/7 special report, OECD, Shanghai Ranking, Worldbank 2010
#2 Among OECD in post high-school education (46% vs
average of 33%)
Israe
l USJap
an
Netherl
ands
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dRus
sia
Canad
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Taiwan UK
South
Korea
Icelan
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Singa
pore
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Number of engineers per 10,000 em-ployees
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Korea US
Canad
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OECD av
erage
German
y UKIta
lyIre
land
Russia
0%2%4%6%8%
10%Investment in Education as % of GDP
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Challenges of the Israeli Ecosystem
Distance from markets Lack of marketing talent
Lack of product design experience
Limited access to follow-on capital
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What can we learn from Israel? Dream big,
think creatively
Collaborate with global VCs
and corporations
Provide mentorship
and guidance
Build & support the ecosystem
Don’t be afraid to fail
Think global from day 1
Founders
Investors
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Blumberg Capital Israeli Investments
√
Cyber Security Financial Technology Commerce
SAM
Enterprise Software Marketing & Ad Technologies
Sealights
THANK YOUAlon Lifshitzalon@blumbergcapital.com