Incubit Technology Ventures

Corporate Open Innovation

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© 2017 by Elbit Systems | Elbit Systems Proprietary

Our Story

▪ What’s an Incubator?

▪ Elbit - and why an Incubator

▪ Open Innovation and the Incubit Model

▪ What’s in it for Founders / Corporate

▪ Incubit examples

© 2017 by Elbit Systems | Elbit Systems Proprietary

An Incubator?

Early stage startups struggle to attract VC funding due to high risk

Identified as a market failure meriting government intervention

Risk Sharing scheme 85%/15%Early StageFunding + Mentoring

Early StageStartups

Market Failure

IIA Incubator Program

2013:

IIA Initiative to

attract Corporate

Strategic Players

as Incubator

Operators

© 2017 by Elbit Systems | Elbit Systems Proprietary

Elbit Systems

Largest Israeli privately held defense industry

▪ >$3B/year revenues with strong 2-years backlog

▪ >$280M/year IR&D

▪ Long heritage of technology innovation

▪ Business lines based on technology ‘wild cards’

▪ 4500 strong engineering

work force (~50% of the organization)

▪ Highly diverse business lines

Elbit

So why do we need an Incubator ?

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Defense & CommercialAirborne Systems & Simulation

EW & CountermeasuresSystems

CYBER Solutions

Combat Vehicles & Artillery Systems

Unmanned VehicleSystems

Homeland SecuritySystems

Naval Systems ISR & Electro-opticSystems

C4I & DAPRadio Communication

© 2017 by Elbit Systems | Elbit Systems Proprietary

The Challenge

struggle to recruit, retain and exploit people with strong innovative skills.

now we have many examples of technology migrating from commercial to defense.

is very broad and it is challenging to support R&D across the entire portfolio.

Big organizations

Direction of technology migration reversed

Elbit's portfolio

Time to stop looking only INSIDE the

organization for innovation

© 2017 by Elbit Systems | Elbit Systems Proprietary

Incubit is part of the Open Innovation in

Elbit’s Innovation strategy

Big organizations need to look

outside - That’s Open Innovation

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An open approach to Open Innovation

First and Only defense industry-backed incubator

© 2017 by Elbit Systems | Elbit Systems Proprietary

Incubit Open Innovation Model

Looking for ‘good’ innovative, technology based startups that have:▪ A Strong commercial business case▪ All the good “numbers” for future VC/CV funding▪ Coachable team

With

▪ Technology that can be relevant to Elbit

Investing only in Deep-Tech startups at early stages

▪ Making that technology accessible to Elbit down the roadvia licensing / f-R&D / investment

▪ Make Defense an advantage through “non-compete”

Open

Innovation

Spin-In model

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Early Stage

Deep-Tech

© 2017 by Elbit Systems | Elbit Systems Proprietary

What’s in it for the Founders?

▪ $650K / 2 year / ~$1.5M pre▪ Deep Tech fearless▪ Tolerant to Pivoting in D-D▪ Corporate backed D-D

▪ Strategic w/ R&D background▪ Access to ESL experts / resources / infrastructure ▪ Mentoring and BD support

▪ Technology vetting▪ Possible f-R&D▪ Non diluting licensing

Early stage Deep TechFunding

More then just Funding

Your best launchpad

Unique

DEEP TECH

Opportunity

© 2017 by Elbit Systems | Elbit Systems Proprietary

What’s in it for the Corporate

▪ New ideas from the cutting edge▪ Positioning through OPIN▪ Better Cost/Risk/TTM

▪ TSA through D-D▪ TSA through mentoring▪ Quick & Dirty feasibility checks

▪ LEAN Startup close hand▪ TTM focused ▪ Dev processes

Early access to Technology from the outside

Technological Situational Awareness

Learning from Founders

Unique

Access to

new

Technology

© 2017 by Elbit Systems | Elbit Systems Proprietary

So far…

Open for business since Jan. 2013 10

Made Nine investmentsScouting of

>550 companies

Spin in Examples

© 2017 by Elbit Systems | Elbit Systems Proprietary

So far…

Spin in

StartupESL

Synergy DESCRIPTION

CENS MaterialsLand SuperCap

CNT dispersion in Li-Ion batteries increasing power

Collage Medial

ImagingKnow How

Optical biopsy for diagnostics of local cancerous tumors within organs

NewRocketAerospace/UASI

“Green Propulsion” rocket enginebased on gel-propellant technology

EchoCare Land/ElisraNon-cooperative, elderly-care home monitoring focused on fall detection

L7 Defense CyberBitBio-Inspired automated mitigation of DDOS attacks

Creative IC3D All Copper based, 3D printing of PCBs

VocaSee ElisraHigh accuracy, speaker agnostic automatic transcription

ExBand

NetworksElisra/C4I High power linear RRH for 4G/5G cellular

SensorDesign Land Next generation seismic data collection 11

SensorDesign

Q & A

Thank you

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