Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Investor Presentation (February 2024)
29 slides from Elron Ventures's investor presentation, February 2024
Slide 1: Elron Ventures - Investor Presentation
ELRON VENTURES - INVESTOR PRESENTATION February 2024
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 Ventures
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 15 exits totaling $2.2b Investment platform 1970s since 2010, of which Elron based on value circles: Ventures share is ‘CyberFuture’ CISO club, Medical Imaging strategic partnership with Elscint approximately $750m Rafael, advisory bo
Slide 5: 2023: Main Activities
2023: MAIN ACTIVITIES CARTIHEAL G&A MATURE YOUNG NEW CYBERFUTURE EXIT EXPENSES PORTCO’S PORTCO’S INVESTMENTS The mature portco’s Sales traction + 5 new are funded tech recognition investments G&A expenses were No expected cash out significantly from Elron during 2024 Acquired by decreased in 2023; T
Slide 6: M&As During the Last Few Years
M&A’s DURING THE LAST FEW YEARS SOURCE FOR DIVIDENDS Sold to SMITH + NEPHEW Sold to PALO ALTO NETWORKS Sold to Sold to Sold to MICROSOFT Sold to RAPID7 PING INTUIT Sold to IDENTITY ZSCALER July Apr. Feb. June Dec. Feb. Jan. 2017 2018 2021 2021 2021 2023 2024 6
Slide 7: CartiHeal Exit & Dividend Distribution
CARTIHEAL EXIT & DIVIDEND DISTRIBUTION In January 2024 CartiHeal was acquired by Smith+Nephew for up to $330m: $180m immediate consideration + $150m contingent consideration payable upon achieving a sales milestone $61m distributed in Our share in the transaction proceeds – dividends since Nov. up t
Slide 8: Focal Points in 2024
FOCAL In light of current market conditions (particularly in Israel), many POINTS companies worldwide and in Israel are reassessing the pace of their cash use and some have taken measures to reduce expenses IN 2024 and headcount Accordingly: • We’ve taken efficiency measures that significantly reduc
Slide 9: The Team
THE TEAM: Investors with a value creation track record; cyber field experts; tech & innovation leaders Yaron Elad | CEO & Elik Etzion | Managing Managing Partner Partner 16 years of investing 30 years of tech & cyber experience; led dozens of M&A experience; previously Global CISO transactions total
Slide 10: Value Circles
VALUE Advisory Board CIRCLES CYBERFUTURE (CISO CLUB) A closed group of active CISOs from notable firms, backed by Elron Ventures, scouting early-stage cybersecurity startups, investing as a group ADVISORY Gil Gur Arie Jeff Trudeau Consulting Former Chief Global Data, CISO at Chime in ELRONISTS Insig
Slide 11: CyberFuture – CISO Investment Alliance Powered by Elron
CYBERFUTURE – CISO INVESTMENT ALLIANCE POWERED BY ELRON CyberFuture, powered by Elron Ventures, is an exclusive global group of CISO’s and cybersecurity leaders from the world’s leading organizations across various industries seeking to invest in and support promising cybersecurity early-stage start
Slide 12: 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 AD-HOC TEAMS FOR DEEP Vast experience in Well-established SUCCESSFUL CASE T
Slide 13: 10 Year B2B Software/Cyber Portfolio Construction
LONG-STANDING TRACK RECORD OF BUILDING NEW PORTFOLIOS AND SCALING INVESTMENTS 10 year B2B software/cyber portfolio construction $230m Value created* 8 EXITS $94m Invested* $19m Invested in 8 $90m young portfolio EXIT PROCEEDS companies 13 *Excluding first time investments in ventures during the last
Slide 14: Portfolio Buildup – Growth Catalyst in the Next Few Years
PORTFOLIO BUILDUP – GROWTH CATALYST IN THE NEXT FEW Breeze Security YEARS Seed Round A Round B Round C 14
Slide 15: Portfolio Buildup: Cybersecurity
PORTFOLIO BUILDUP CYBERSECURITY 18% 24% 3 co-founders, strong tech background and seasoned in the 2 co-founders, strong tech background (IDF unit 81 alumni), strong cybersecurity ecosystem. Hyped space (software supply chain entrepreneurial skills. Disruptive tech (session protection vs. security) a
Slide 16: Portfolio Buildup: Cybersecurity
PORTFOLIO BUILDUP CYBERSECURITY 5% Breeze 13% Security 2 co-founders who played key roles in building the industry’s first 3 founders with extensive experience in product development & Cloud Security Posture Management (CSPM) solution at Dome9 tech in the cyber space (IDF cyber units, Microsoft, Rez
Slide 17: Portfolio Buildup: B2B Software
PORTFOLIO BUILDUP B2B SOFTWARE SAFE SAFE 2 second-time co-founders (Perfecto Mobile, acquired by Highly experienced second–time co-founders. Perforce for $200m). Webinar utilization is a huge market with The large and growing ecommerce segment still lacks the an unsolved engagement problem leading
Slide 18: Holdings Based on Valuation of Last Financing Round
Our holdings based on valuation of last financing round was determined based on the “Post-Money” valuation of our Portfolio Companies as follows: • Cyber/Software Holdings – Mature Portfolio- based on financing rounds most of which took place until the beginning of 2022. • Cyber/Software Holdings –
Slide 19: Summary
STRONG FINANCIAL POSITION TO WEATHER WARTIME CHALLENGES • Our mature portfolio companies have sufficient cash runway - no expected cash out from Elron during 2024 • We significantly decreased G&A expenses in 2023; an additional decrease is expected in 2024 • Activity in 2024 will center around the s
Slide 20: Appendix – Our Portfolio Companies
APPENDIX- OUR PORTFOLIO COMPANIES 2/19/2024 20
Slide 21: Mature Cybersecurity Companies
CYBERSIXGILL IRONSCALES ZENGO Cyber intelligence Automated Crypto wallet that 23% 8% 9% platform that phishing doesn’t compromise MATURE by RDC automatically & prevention, between security covertly analyzes Our detection & The balance of and user experience Our CYBER- the dark web investment: $14m r
Slide 22: Young Cybersecurity Companies
SCRIBE RED ACCESS CYVERS Continuous code Third generation Cryptocurrency assurance across 18% web protection 24% attack detection in 26% YOUNG by RDC by RDC the software platform real-time using AI- supply chain Our Our based behavioral Our CYBER- investment: investment: profiling investment: $5.5m
Slide 23: B2B Software and Dronetech
B2B SOFTWARE OPENLEGACY SIDETALK BARK Automated API Social webinar Revenue integration 22% platform for optimization SAFE by RDC SAFE platform that increasing platform for speeds digital Our engagement and Our ecommerce Our transformation investment: lead conversion investment: merchants investment:
Slide 24: Medical Devices
NOTAL CORAMAZE VISION Remote Transcatheter MEDICAL monitoring of patients with 9% tricuspid valve repair 23% DEVICES age-related Our system Our macular investment: investment: degeneration $15m €5.6m NITINOTES BRAINSGATE Minimally Electrical invasive 14% stimulation- 28% endoscopic based device for
Slide 25: Cynerio
CYNERIO Cynerio’s healthcare IoT cybersecurity platform protects healthcare institutions’ IoT and connected medical devices, while ensuring service INVESTORS availability, data confidentiality, and patient safety. Cynerio’s suite of solutions stops attacks on day one of implementation, finds critica
Slide 26: IRONSCALES
IRONSCALES IRONSCALES is a pioneer of a cloud-native, AI-driven messaging security, with a solution that continuously detects and remediates INVESTORS advanced threats in the intensifying messaging cyber attack vector. With its native API integrations, IRONSCALES can integrate with today’s modern em
Slide 27: Cybersixgill
CYBERSIXGILL Cybersixgill’s cyber threat intelligence (CTI) platform provides AI-based data collection and analysis. Compared to other INVESTORS vendors which combine manual services in their offering, Cybersixgill’s fully automated solutions allow businesses to perform risk assessment and make cruc
Slide 28: OpenLegacy
OPENLEGACY OpenLegacy’s platform enables any enterprise to become virtually cloud native, by automatically exposing legacy applications and data as INVESTORS digital services, deploying on-prem, private or public cloud. OpenLegacy’s platform provides 10x faster API creation (from 6 months to a few d
Slide 29: Thank You
= Elron am. Ventures elron.com
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