Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Investor Presentation (August 2021)
34 slides from Elron Ventures's investor presentation, August 2021
Slide 1: Elron - Investor Presentation August 2021
ELRON - INVESTOR PRESENTATION August 2021
Slide 2: Comments
This presentation is for information purposes only. By this presentation, Elron does not intend to solicit offers to purchase its securities and the presentation does not constitute an invitation to receive such offers, and nothing said therein constitutes a “public offering”, as defined in the Isra
Slide 3: Elron: We Specialize in Early-Stage Investments with Significant Exit Potential
ELRON: WE SPECIALIZE IN Elron was established in 1962 by Uzia Galil EARLY-STAGE INVESTMENTS WITH to bridge the gap between Israeli R&D SIGNIFICANT EXIT POTENTIAL and industry, and create “a knowledge- based industry” (later named hi-tech…) THE IDEA We have close to 60 We rely on a We focus our years
Slide 4: Building Value in Venture Capital Investments
BUILDING VALUE IN VENTURE CAPITAL INVESTMENTS 1960s Defense Elbit 1970s Medical Imaging 12 exits totaling $1.6b since Long-standing strategic Elscint 2010, including proceeds of partnership with Rafael, $600m for Elron and RDC providing our startups with tech 1980s assets & knowhow Semiconductors Or
Slide 5: Teamwork
TEAMWORK An experienced team which led 12 exits, dozens of investments, and follow-on financings totaling hundreds of millions of $s over the last decade YARON ELAD NIV LEVY ELIK ETZION ZOHAR ROZENBERG CEO CFO Head of Cyber Venture Partner Vast experience in tech Broad experience in Lt. Col. Ret. Pr
Slide 6: RDC: Validation Platform for Deep-Tech Oriented Investments in Early Stages
RDC: VALIDATION PLATFORM FOR DEEP-TECH ORIENTED INVESTMENTS IN EARLY STAGES KOBI KATZ Chief Information Officer RDC: ELRON & RAFAEL’S JOINT INVESTMENT VENTURE RAFAEL FOR INITIATING & DEVELOPING NEW CO’s 25 years’ experience in system engineering, software Vast experience in technological projects; d
Slide 7: 2021: Cyber / IT Portfolio Development & Ripening the Value of Our Medical Companies
2021: CYBER / IT PORTFOLIO DEVELOPMENT & RIPENING THE VALUE OF OUR MEDICAL COMPANIES DEVELOPMENTS DURING 2021: Raised $20m Series A round led by Insight Partners Our 2nd $34m raised generation Raised $30m Series B round led by ALIVE on the TASE cyber companies Raised $17m Series A round led by Verte
Slide 8: Our Holdings and Book Value at June 30, 2021
Our holdings * Elron’s expected Book value at based on valuation proceeds from the Holdings in companies 1 June 30, 2021 of last financing ($m) Bioventus transaction if round 2 ($m) the option to sell the Medical: company is exercised BrainsGate (25%) 1.0 44.7 amounts to $90m- $129m CartiHeal (25%)
Slide 9: Investing in Cybersecurity
Investing in Cybersecurity Cybersecurity Cybersecurity M&As Funding Time to exit $20b x4.9 0-7 years $10.7b $2.7b in 109 rounds (4th highest all-time) 45.6% of companies (all-time high) (97% YOY) Total M&A Median exit volume in 2020 multiple in 2020 0-10 years Total VC investments Funding raised by
Slide 10: Cyber & Enterprise Software: Building Value in Venture Capital Investments
BUILDING VALUE CYBER & ENTERPRISE SOFTWARE IN VENTURE Value Creation CAPITAL INVESTMENTS Building a portfolio from early stages 8 years 18 companies $164m value created 4 exits (2.6x multiple) $98m: our 22 external follow-on rounds holdings based $74m on last round invested in cyber & $66m: exit ent
Slide 11: Cyber/Enterprise Software: From Seed to Exit
CYBER/ENTERPRISE SOFTWARE: FROM SEED TO EXIT Sold to PALO ALTO NETWORKS Sold to MICROSOFT Sold to RAPID7 Sold to PING IDENTITY July Apr. Feb. June 2017 2018 2021 2021 11
Slide 12: Cyber/Enterprise Software Value Creation
CYBER/ENTERPRISE SOFTWARE VALUE CREATION in $M PROVEN CAPABILITIES IN BUILDING VALUE PARTIAL EXIT FROM SEED STAGE 2014 2015 2016 2017 2018 2019 2020 12 2021
Slide 13: Cyber & Enterprise Software – Growth Catalyst in the Next Decade
CYBER & ENTERPRISE SOFTWARE – GROWTH CATALYST IN THE NEXT DECADE Seed Round A Round B Round C 13
Slide 14: Top Headlines on Our Portfolio Companies
Rapid7 is paying $50 million for Alcide, in which Elron Electronic Industries holds 24%. TOP Sixgill and CrowdStrike will also HEADLINES collaborate to enhance how ON OUR enterprises stay ahead of PORTFILIO emerging threats COMPANIES 14
Slide 15: Our Mature Cyber/Enterprise Software Companies
OUR MATURE CYBER/ ENTERPRISE SOFTWARE COMPANIES
Slide 16: OpenLegacy
OPENLEGACY ESTABLISHED: 2013 FROM LEGACY SYSTEM TO APPLICATION IN RECORD SPEED FIRST INVESTMENT: 2014 Over 50 customers worldwide (US, Latin America, Hong Kong, TOTAL INVESTMENT: $68M Japan, Europe, Israel), mostly G2000/F500 $8.2M OUR MAIN PARTNERS: Key Clients Partners INVESTMENT Commerzbank, OG T
Slide 17: IRONSCALES
IRONSCALES ESTABLISHED: 2014 FIRST INVESTMENT: 2015 TOTAL INVESTMENT: $22.4M IRONSCALES H1/2021 milestones MAIN PARTNERS: $1.4M K1 Investment Management, Increased Increased More than 1,100 THE BALANCE OF Jump Capital YoY revenue headcount new customers OUR INVESTMENT by 96% by 30% (3,900 in total)
Slide 18: Cybersixgill
CYBERSIXGILL ESTABLISHED: 2014 FIRST INVESTMENT: 2016 2020-2021 GROWTH The number of TOTAL INVESTMENT: $20.1M The number of Between 2019 and employees clients doubled with 2020 Cybersixgill worldwide doubled MAIN PARTNERS: a focus on Global doubled its YoY with presence in NA, $6M Sonae IM, REV Vent
Slide 19: Our 2nd Generation Cyber/Enterprise Software Companies
OUR 2ND GENERATION CYBER/ ENTERPRISE SOFTWARE COMPANIES
Slide 20: ZenGo
ZENGO ESTABLISHED: 2018 Everything you need in a crypto wallet Faster setup, easier backups and recoveries, and FIRST INVESTMENT: 2018 unparalleled security TOTAL INVESTMENT: $27.8M ZENGO 2020-21 HIGHLIGHTS MAIN PARTNERS: Benson Oak $2.9M Ventures, SamsungNEXT, Insight Partners Acquired OUR INVESTME
Slide 21: Cynerio
CYNERIO ESTABLISHED: 2017 FIRST INVESTMENT: 2018 2021 TOTAL INVESTMENT: $22.9M MAIN PARTNERS: $5.3M Accelmed, MTIP, ALIVE OUR INVESTMENT Cynerio is partnering with the world's leading technology innovators to deliver its medical-first IoT cybersecurity solution to hospitals worldwide VISION: To prot
Slide 22: Sayata
SAYATA ESTABLISHED: 2016 Sayata raises $17M FIRST INVESTMENT: 2019 to accelerate rapid TOTAL INVESTMENT: $23.8M expansion MAIN PARTNERS: Kamet, $5.3M OurCrowd, Vertex, Team8 OUR INVESTMENT Sayata has more than doubled its volumes each quarter since launching in Q1 of 2020 VISION: Maximizing efficien
Slide 23: Value-Building Events in Pivotal Companies
VALUE-BUILDING EVENTS IN PIVOTAL COMPANIES
Slide 24: CartiHeal
CARTIHEAL CARTILAGE & BONE REGENERATION IN JOINTS SUCH AS THE KNEE Cartilage injuries affect millions of patients worldwide. The need for a simple, fast, and off-the shelf solution to restore cartilage is an unmet challenge facing medicine today. ESTABLISHED: 2009 $18.4M >500 patients were Granted ‘
Slide 25: CartiHeal-Bioventus Transaction: Highlights
CARTIHEAL-BIOVENTUS TRANSACTION: HIGHLIGHTS On July 16, 2020 Elron announced the signing of definitive agreements for an investment in CartiHeal Announcement and an option to acquire CartiHeal by Bioventus LLC for $350M-$500M Transaction • A $15-20M investment in CartiHeal at a pre-money value of $1
Slide 26: Timeline
TIMELINE Statistical report of Investment final trial results PMA by Bioventus Expected: End of submission $100M in 7/2020 2021 to FDA FDA approval revenues Bioventus exercises break- CartiHeal CartiHeal up right Sellers CartiHeal Elron’s Sellers Elron’s $30M payment to share: share: CartiHeal PUT $
Slide 27: Electrical Stimulation-Based Treatment for Ischemic Stroke (BrainsGate)
ELECTRICAL STIMULATION-BASED TREATMENT FOR ISCHEMIC STROKE The annual number of new ischemic strokes in the USA is approximately 700,000. The ESTABLISHED: current treatment for stroke is very limited. 2000 Clinical Studies: Over In Dec. 2020 the Based on its clinical trial $31M FIRST company secured
Slide 28: Pivotal Clinical Trial
PIVOTAL CLINICAL TRIAL May 24, 2019 “The cumulative evidence indicates that, for patients with confirmed cortical ischemia 8-24h after onset, SPG stimulation reduces post-stroke disability over the entire outcome range and increases the proportion of patients alive and independent 3 months after str
Slide 29: Exits at a Value of $1.6B
EXITS AT A VALUE OF $1.6B Our share in proceeds $600M Acquired by COVIDIEN Sold to ROCHE Sold to PALO ALTO Sold to Sold to Sold to NETWORKS ENABLENCE WAVE Sold to Sold to Sold to Sold to BRUKER MICROSOFT Sold to SYSTEMS Sold to PING ALVARION RAPID7 CORP VOLCANO ZOLL IDENTITY May June Sept. Nov. Nov.
Slide 30: Summary
~$310M SPECIALIZING IN EARLY-STAGE Total cash balance & investments INVESTMENTS in existing companies Led by a team with a proven value-creation track record; leveraging on Rafael’s tech capabilities 12 EXITS A GROWING PORTFOLIO of cyber and SUMMARY in the last decade enterprise software companies I
Slide 31: Thank You.
THANK YOU. elron.com
Slide 32: Our Cybersecurity Companies
CYBERSIXGILL IRONSCALES ZENGO Cyber Automated Crypto wallet intelligence phishing that doesn’t 23% 13% 8% platform that prevention, by RDC compromise automatically & detection & The balance of our between covertly analyzes Our investment: response investment: security and Our investment: the dark we
Slide 33: Our Software Companies
OPENLEGACY OZCODE KEEPY Automated Debugging- HR analytics API as-a-Service for employee OUR integration 23% by RDC (DaaS) that 46% by RDC retention & 29% by RDC platform that cuts engagement SOFTWARE speeds digital debugging COMPANIES transforma- Our investment: $8.2m time to Our investment: $4.9m O
Slide 34: Our Medical Device Companies
NOTAL CARTIHEAL BRAINSGATE VISION Implant for Electrical Remote cartilage and stimulation- monitoring OUR bone 27% based 28% of patients 11% regeneration treatment with age- MEDICAL in load- for ischemic related DEVICE bearing Our investment: stroke Our investment: macular Our investment: $14.5m joi