Slide 1: Elron Ventures - Investor Presentation
ELRON VENTURES - INVESTOR PRESENTATION March 2022
Slide 2: Comments
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
Slide 3: Elron Ventures: specializing in early-stage Israeli investments
ELRON VENTURES: Elron was established in 1962 by Uzia Galil WE SPECIALIZE IN EARLY-STAGE ISRAELI To bridge the gap Today the goal is to provide INVESTMENTS WITH THE POTENTIAL TO between Israeli R&D entrepreneurs with a nurturing and industry, and environment, as well as the support BECOME MARKET LEA
Slide 4: Building value in venture capital investments
BUILDING VALUE IN VENTURE CAPITAL INVESTMENTS 1960s Defense Elbit 13 exits totaling $1.7b Investment platform 1970s since 2010, including based on 4 value circles: strategic partnerships, Medical Imaging proceeds of $620m advisory board, Elscint for Elron Ventures experienced founder network, divers
Slide 5: Teamwork
TEAMWORK An experienced team which led 13 exits, dozens of investments, and follow-on financings totaling hundreds of millions of $s over the last decade YARON ELAD NIV LEVY ELIK ETZION KOBI KATZ ZOHAR CEO CFO Head of Cyber and CTO & Partner, ROZENBERG Vast experience in tech Broad experience in Ent
Slide 6: 4 Value Circles
4 VALUE Advisory Board CIRCLES CORE TEAM Guidance and support based on investment expertise built over decades ADVISORY Gil Gur Arie Jeff Trudeau Chief Global Data, CISO at Chime in Consulting ELRONISTS Insights and Analytics Silicon Valley platform of Officer at Ford Motor (previously CISO at Guidi
Slide 7: Validation platform for deep-tech oriented investments in early stages
VALIDATION PLATFORM FOR DEEP-TECH ORIENTED INVESTMENTS IN EARLY STAGES RDC: ELRON VENTURES & RAFAEL’S JOINT INVESTMENT VENTURE FOR INITIATING & DEVELOPING NEW CO’s EXTENSIVE ENGAGEMENT WITH START-UPS AS PART OF DUE DILIGENCE Vast experience in Well-established SUCCESSFUL CASE technological practice
Slide 8: 2021-22: Main Activities
2021-22: MAIN ACTIVITIES 4 exits; 6 new investments EXITS acquired by acquired by acquired by partial secondary Intuit Rapid7 Ping Identity sale to PSG NEW NEW Allero (Term Sheet INVESTMENTS cybersecurity B2B software cybersecurity B2B software signed) cybersecurity 1st drone tech investment! UPROUN
Slide 9: Book value at Dec. 31, 2021 and holdings based on last round valuation
Book value at Our holdings based on valuation Holdings in companies 1 Dec. 31, 2021 ($m) of last financing round 2 ($m) Medical: * Elron Ventures’ CartiHeal (25%) 0.5 50.3 * expected proceeds BrainsGate (25%) 0.3 40.7 ^ from the Bioventus transaction if the Other medical companies3 12.5 45.3 option
Slide 10: Cybersecurity / B2B Software: From Seed to Exit
CYBERSECURITY / B2B SOFTWARE: FROM SEED TO EXIT Sold to PALO ALTO NETWORKS Sold to MICROSOFT Sold to RAPID7 Sold to Sold to PING IDENTITY INTUIT July Apr. Feb. June Dec. 2017 2018 2021 2021 2021 10
Slide 11: Long-standing track record of building new portfolios and scaling investments
LONG-STANDING TRACK RECORD OF BUILDING NEW PORTFOLIOS AND SCALING INVESTMENTS 12 year performance 8 year B2B software/cyber portfolio construction 5 20 exits companies $82m exit proceeds ~25 external follow- on rounds $1.7b $620m exits returns 25 $370m $230m EXIT companies under value created manage
Slide 12: Elron Ventures II - Portfolio Buildup
ELRON VENTURES II - PORTFOLIO BUILDUP 18% 29% 3 co-founders, strong tech background and seasoned in the 2 co-founders, strong tech & business background (IDF unit cybersecurity ecosystem. Hyped space (software supply chain 81 alumni). Rapidly growing space (HR tech), uncrowded security) and one of t
Slide 13: Cybersecurity & B2B Software - Elron Ventures II
CYBERSECURITY & B2B SOFTWARE – Elron Ventures II GROWTH CATALYST IN THE NEXT DECADE Allero Seed Round A Round B Round C 13
Slide 14: News
NEWS Bioventus Sayata extend its Cybersixgilll proceeds with A round and expands executive team to support its option structure raises additional rapid growth and agreement with $35M was selected as CartiHeal one of the 101 top Israeli SaaS companies Datadog has Signed financing Cynerio partners acq
Slide 15: Our Mature Cybersecurity / B2B Software Companies
OUR MATURE CYBERSECURITY / B2B SOFTWARE COMPANIES 3/22/2022 15
Slide 16: OpenLegacy
OPENLEGACY FIRST INVESTMENT: 2014 FROM LEGACY SYSTEM TO APPLICATION IN RECORD SPEED TOTAL INVESTMENT: $68M Over 50 customers worldwide (US, Latin America, MAIN PARTNERS: Commerzbank, Hong Kong, Japan, Europe, Israel), mostly G2000/F500 $8.2M OG Tech, SBI Group, Cardif, OUR Silverhorn, Leumi Partners
Slide 17: IRONSCALES
IRONSCALES FIRST INVESTMENT: 2015 TOTAL INVESTMENT: $57.4M MAIN PARTNERS: K1 Investment $1.1M* Management, Jump Capital, PSG IRONSCALES 2021 milestones THE BALANCE OF OUR INVESTMENT Increased New partnerships More than 3,300 YoY revenue & expansion in 18 new customers by 75% markets (5,750 in total)
Slide 18: Cybersixgill
CYBERSIXGILL FIRST INVESTMENT: 2016 TOTAL INVESTMENT: $50.1M 2020-2021 GROWTH MAIN PARTNERS: The number of The number of Sonae IM, REV Venture Partners, Between 2019 and clients doubled with employees Crowdstrike, OurCrowd, Terra Venture 2021 Cybersixgill a focus on Global worldwide doubled $12M Par
Slide 19: ZenGo
ZENGO FIRST INVESTMENT: 2018 Everything you need in a crypto wallet, simplified Faster setup, easier recovery, bulletproof MPC (multi-party TOTAL INVESTMENT: $27.8M computation) security, all-in-one services, and multi-chain MAIN PARTNERS: Insight Partners, $2.9M Benson Oak Ventures, OUR SamsungNEXT
Slide 20: Cynerio
CYNERIO FIRST INVESTMENT: 2018 2021 TOTAL INVESTMENT: $35.4M MAIN PARTNERS: Accelmed, MTIP, ALIVE Cynerio is partnering with the world's leading technology innovators to deliver its medical-first IoT cybersecurity solution to hospitals worldwide VISION: To protect connected healthcare from cyber att
Slide 21: Sayata
SAYATA FIRST INVESTMENT: 2019 During 2021 Sayata raised two TOTAL INVESTMENT: $62.2M financing rounds totaling $52M to accelerate rapid expansion MAIN PARTNERS: Kamet, $14.1M OurCrowd, Vertex, Team8, OUR Pitango INVESTMENT Sayata is experiencing exponential growth in policy volumes and premiums sinc
Slide 22: Medical Companies
MEDICAL COMPANIES 3/22/2022 22
Slide 23: CartiHeal
CARTIHEAL FIRST INVESTMENT: 2012 CARTILAGE & BONE REGENERATION IN JOINTS SUCH AS THE KNEE Cartilage injuries affect millions of patients worldwide. The need for a simple, fast, TOTAL INVESTMENT: and off-the shelf solution to restore cartilage is an unmet challenge facing $70.5M medicine today. MAIN
Slide 24: CartiHeal-Bioventus Transaction: Highlights
CARTIHEAL-BIOVENTUS TRANSACTION: HIGHLIGHTS On July 16, 2020 Elron Ventures 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 va
Slide 25: Timeline
TIMELINE WE ARE HERE Investment by Statistical report of final PMA submission Bioventus trial results to FDA FDA $100M in 7/2020 8/2021 9/2021 approval revenues Bioventus exercises break- Elron Elron CartiHeal up right Sellers CartiHeal Sellers CartiHeal Ventures’ Ventures’ $30M payment to share: sh
Slide 26: BrainsGate
BRAINSGATE FIRST INVESTMENT: ELECTRICAL STIMULATION-BASED TREATMENT 2005 FOR ISCHEMIC STROKE TOTAL INVESTMENT: The annual number of new ischemic strokes in the USA is approximately 700,000. The current treatment for stroke is very limited. $111M $31M MAIN PARTNERS: OUR Clinical Studies: Based on its
Slide 27: Exits at a value of $1.7B
EXITS AT A VALUE OF $1.7B $620M Our share in proceeds Acquired by COVIDIEN Sold to ROCHE Sold to 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 INTUIT ALVARION RAPID7 CORP VOLCANO ZOLL IDENTITY May June
Slide 28: Summary
$370M 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 13 EXITS A GROWING PORTFOLIO of SUMMARY in the last decade cybersecurity and B2B software companies I
Slide 29: Thank You
= Elron am. Ventures elron.com
Slide 30: Our Cybersecurity Companies
CYBERSIXGILL IRONSCALES ZENGO Cyber intelligence Automated Crypto wallet that 23% 8% 8% platform that phishing by RDC doesn’t compromise automatically & prevention, between security covertly analyzes Our detection & The balance of and user experience Our investment: our investment: investment: the d
Slide 31: Our Software Companies
OUR SOFTWARE COMPANIES OPENLEGACY ONEVIEW KEEPY AUDIOBURST ALLERO Automated API AI-based platform for HR analytics for AI-powered audio A governance and integration platform analyzing & extracting employee and team search platform that visibility platform for that speeds digital insights from satell
Slide 32: Our Medical Device Companies
NOTAL CARTIHEAL BRAINSGATE VISION Implant for Electrical Remote cartilage and 27% stimulation- 28% monitoring of 10% OUR bone regeneration based treatment for patients with age-related MEDICAL Our Our Our in load-bearing investment: ischemic stroke investment: macular investment: joints $18.4m $31m
Slide 33: Our First Drone Tech Company
OUR FIRST DRONE TECH COMPANY WONDER ROBOTICS Software for safe & 24% Commercial drone operations: A autonomous by RDC landing on market waiting to take off unprepared & Our unmarked investment: The commercial use of drones will revolutionize numerous sites $1.5m applications, from package delivery t