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denes@ourcrowd. com Only the first drop Changing the way start ups are funded
Venture Capital - has been a success story
Brought success to the world
In every advanced field you can think of
It also done well for investors
The Accredited Investor Opportunity
8 million accredited households in the US are eligible to invest in private securities, have the sophistication to be solicited for these types of investments.
Meanwhile, only a handful of these households have ever invested in private companies.
Carlyle and other firms lowering minimum commitments to ~$50,000 – allowing “everyone” to participate in PE deals
Market Disruption: Crowdsourcing in Finance
• Consumer Lending
• Rewards-based
• Donation
• Equity-based
Lending Club IPO $9bn = one of the biggest US banks
Unsecured loans to individuals Algorithmic credit analysis Most mature segment of the
“financial returns” crowdfunding space
Personal loans up to $35k Business loans up to $100kFounded: 2006Loans funded: >$5BInterest paid out: $500M
Personal loans up to $35k Moving into business loansFounded: 2005Loans funded: >$1B
Reward-based crowdfunding
Reward based crowdfunding is a way to pre-sell and to validate the existence of a market
Now investors are asking why do I only get a
t-shirt?
Pays $2Billion for company
BUT: The recent acquisition of Oculus raises questions
Andreesen, Spark, Matrix Partners back Oculus Rift with $75M Series B…
Reward-based crowdfunding: Where is the Reward?
What do original crowd funders get?
“62%of funders on equity crowdfunding sites have no experience of early-stage investment”
“crowdfunders were giving misleading or unrealistically optimistic impression of the investments”
1. Approach to Diligence- Research that goes into presenting investment opportunities online
2. Investment Management- What sort of ongoing support does the platform provide companies?
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Two Key Criteria to Evaluate Equity CF
The Investor’s Dilemma: Professionalism or flexibility (you can’t have both)
Venture Capital Angel investing
Access
Professionalism
Commitment
Control and FreedomX
X
XXTop Deals
No Freedom
Millions of $
Professional
Limited
Limited
Yes
Any
Venture Capital
Angel OurCrowdAccess Top deal Limited Top deal Professionalism Professional Limited ProfessionalControl and Freedom No Freedom Yes YesCommitment Large Any Any
20
XX
X
X
OurCrowd offers the professionalism of VC and the flexibility and low entry price of angel investing
Dealflow of2000+
companies per year
Opens the investments to
the crowd- at the same
terms
OurCrowd invests its own money
The way it works
OurCrowd negotiates deal
terms and handles legal
work
Research and select
only the best1-2%
1. Cherry pick: select individual companies
2. Portfolio Reserve: Create a diversified portfolio. Select your reservation and allocation spread with opt out option (for example $5million = 50companies x $100k)
3. Corporate/Institutional Partnership – like with GE
You can choose to invest in three ways
: largest platform in the world
57Companiesin portfolio
$100MInvested
7000Investors
Co-investors
90Countries
Co-investing with leading angel investors
Ajay ShahSilverlake SumeruShah Capital Partners
Peter ThielPayPal, Facebook
Eric SchmidtGoogle
Mort MeyersonDellEDS
李嘉诚 /Li Ka Shing
exoskeleton device Advanced robotics allowing paraplegics to stand, walk &
climb stairs.
One of the Best performing IPOs on
NASDAQ 2014
Pre-IPO round - 100+ members- $2.6M raised
September 2014: ReWalk goes public on NASDAQ
June 2013: OurCrowd members invest - 50+ members- $1.3M raised
FDA Approval
$80
$52
$200
$23
June 2013 June2014 September 2014
Over 150 OurCrowd members benefited
How much fat does this have?How sweet is my watermelon?How much alcohol does it have?Are my medications authentic?
The first molecular sensor that fits in your palm.
The Story of Consumer Physics (SCiO)
Equity Crowdfunded seed round on OurCrowd - $375k raised | 2013
Great Product launch and validation and PR - $2.7M in preorders
Reviews in media: VentureBeat, CNN, Bloomberg, Forbes, BBC, Fox, TechCrunchValidation of strong demand for consumer-friendly devices at ~$200 point.
The Story of Consumer Physics (SCiO)
Opened follow-on via OurCrowd and raised $3.3M within a few days
tracks spending & catch fraud and fees with all-star investors.
Peter Thiel
PayPal, Facebook, Napster, Palantir, and more
Eric Schmidt
Chair, former CEO of Google
Khosla Ventures
Co-founder, Sun MicrosystemsGP, Kleiner Perkins
Feeding the world: water tech from Israel
A mobile app that saves water by enabling farmers to control where their water goes
Fighting the most deadly killer: malaria
computer vision tech reduces the time to diagnose from several hours to minutes, while being more accurate and substantially cheaper.
Biometric monitoring to catch fraud online
Identifying fraud through mouse/keyboard/touchscreen input monitoring
BioCatch: Cyber Security
Public Safety
Case study: Chilean earthquake response
2010 earthquake: Government communications crippled; warning infrastructure severely disrupted.2014 earthquake: After deploying eVigilo, government sends pinpoint alerts to 200k+ tsunami zone residents; safe evacuation.
Geo-targeted alertsMultichannel: TV, radio, online, cell, billboards, sirens
Advanced multi-channel alert system for governments and corporations to keep people safe
Public Safety
Video synopsis software to review hours of footage in a minute
Case study: Boston Marathon BombingProblem: In the hours after the bombing of the Boston Marathon in 2013, law enforcement had compiled thousands of hours of footage from throughout the city, without the means to process it for clues.
Solution: BriefCam’s software allowed enforcement to review hours of footage per camera in short scenes displaying all “actions” on top of each other. As it was used by Norwegians to rapidly identify Anders Breivik in 2011, BriefCam’s display solution may have assisted the identification of the Tsarnev brothers by revealing behavior patterns.
Semiconductors
Speech enhancement software and hardware package
Allows Siri, Google Now, and speech recognition software to work where it currently doesn’t
Making voice recognition work in any environment
Internet of Things
World’s most accurate consumer location tag
Experienced team
CEO Amir Bassan-EskenaziFounder, BigBand Networks (NASDAQ, $750M market cap)
CTO Ofer FriedmanCTO of Texas Instruments Wireless Connectivity Unit
Co-invested
To become a member: 2min and freeOurcrowd.com
ButAccredited orQualified investors ONLY
The leading e-commerce site for natural, organic products in the US
Power of the CrowdRound 1 (Summer 2013):Co-investors
Power of the crowd
Crowdbuilding story: John invest $10k through OurCrowd
alongside with Index and Accel same deal terms
investor meets with Mistral Equity Partners in an elevator.
1 Month later… Mistral invest in Abe’s. 10m USD investment 50% valuation increase Strategic value
Power of the Crowd
Space station and submarine technology for air treatment in commercial buildings
Crowdbuilding story: A real estate investor puts
in $10k through OurCrowd Relationship yields trials on
several properties with great results
enVerid finds a new sales channel through OurCrowd
What is OurCrowd? – by the Press
“The 5 Most Important New Companies You Need to Know”Forbes Online | April 2nd
“An Israeli company trying to change the way startups are funded”CNN Business 360 | April 30th
“Medved's latest mission is to blow up the exclusivity around tech fundraising”Bloomberg BusinessWeek
"The most interesting investment of the week goes to OurCrowd”WSJ | Feb 8th
“Crowdfunding for real investors”thestreet.com
I am sure you are all impressed by our innovative ideas.
But the truth is…we haven’t invented anything new…
- Statue of Liberty paid by the France government as a diplomatic gift
- the US committee was unable to raise $250,000 for a granite base for the statue to have it installed ($6.3m in today's prices)
- Neither Congress or NY City would pay for it
- Joseph Pulitzer born in Hungary
- Pulitzer funded to set up the world's first school of journalism in Columbia university.
- in 1917 established the Pulitzer price
Pulitzer sets up the first known crowdfunding project- Pulitzer launches a fundraising
campaign in his newspaper, The New York World.
- His campaign eventually raised money from more than 160,000 donors, including young children, businessmen, street cleaners and politicians, with more than three-quarters of the donations amounting to less than a dollar.
But Crowdfunding goes back even further
it has existed since the beginning of time
Exodus 38:26 in building the Mishkan/Tabernacle
“One bekka per head; half a shekel according to the holy shekel for each one who goes through the counting, from twenty years old and upward, for six hundred three thousand, five hundred and fifty [people].”
