Confidential© Gemini Israel Funds 2009, Private & Confidential

Tech Aviv, March 31st, 2009

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DEMO!!

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The entrepreneur tries to get an answer from the VC.

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The Partners Meeting

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The VC Brush-off

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DATA

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US Venture Capital Data

Q3 2008

Q4 2008

Diff

# of Companies Funded 283 236 -17%

Average Investment per Company $5.4M $4.6M -15%

Total VC Funding $8M $3.5M -56%

Internet Deals $1,100M $787M -28%

Clean technology Deals $1,100M $909M -17%

• Any news?

• Angels decreased $ invested (-26%), but not

the overall # of deals (-3%)

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Israel Venture Capital Data

Q3 2008

Q4 2008

Diff

# of Companies Funded 78 81 4%

Average Investment per Company $5M $3.5M -30%

• VC Fund raising in 2008: $1.1bn, projected to

be $300M in 2009

• Overall, 2008 was excellent, with Q4 much

stronger in Israel than in the US

• But the news from the west coast travels fast…

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The LP Story (1)

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The LP Story (2)

• Endowments – No liquidity

• Fund of funds – Will they survive?

• The ongoing fears

• Defaults

• Capital Calls

• In an odd way, US looks better than Europe

• Asia?

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The VC Story (1)

Perception is

Reality

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The VC Story (2002 vs. 2009)

2002 2009

Term Sheets 3x Liquidation 1x Liquidation

Valuation 50% down 50% down

Angel Investing Gone Not Yet

Sectors Enterprise SW Cleantech

Deal Flow Weak Strong

Labor Market Lots of talent Lots of marketing, Eng.?

Bootstrapping Harder Hard

Investment Period Great ?

Down Turn Shut downs Cost Cutting. 2010?

Fund Raising length

6 Months ?

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Summary

• Good time to start a company?

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The Real Summary

• 2 Years, 10 Months

• 1 Board -> 7 Boards, 1 Company shutdown

• 3 Girls -> 4 Girls

• 10 Pounds

• 70,000 Miles

• Bruce Springsteen, Eddie Vedder, Switchfoot,

Foo Fighters ,כנסית השכל, ריטה