Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Investor Presentation (November 2021)
35 slides from Elron Ventures's investor presentation, November 2021
Slide 1: Elron Ventures - Investor Presentation
ELRON VENTURES - INVESTOR PRESENTATION November 2021
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: We specialize 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 12 exits totaling $1.6b Investment platform since 2010, including based on 4 value circles: 1970s strategic partnerships, Medical Imaging proceeds of $600m for advisory board, Elscint Elron Ventures experienced founder network, divers
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 and Venture Partner Vast experience in tech Broad experience in accounting,
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: MCI: Validation platform for deep-tech oriented investments in early stages
MCI: VALIDATION PLATFORM FOR DEEP-TECH ORIENTED INVESTMENTS IN EARLY STAGES KOBI KATZ RDC: ELRON VENTURES & RAFAEL’S JOINT INVESTMENT Chief Information Officer VENTURE FOR INITIATING & DEVELOPING NEW CO’s RAFAEL 25 years’ experience in system engineering, software development and large-scale technol
Slide 8: 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: $34m Financing Raised $20m Raised Raised $17m Acquired Acquired Raised $64m raised on rounds and Series A $30m Series Series A by Rapid7 by Ping Series C exits round led by B round led roun
Slide 9: Book value at Sept. 30, 2021 and holdings based on last round valuation
Book value at Our holdings based on valuation Holdings in companies 1 Sept. 30, 2021 ($m) of last financing round 2 ($m) Medical: BrainsGate (25%) 0.8 40.7 CartiHeal (25%) 0.7 50.3 * * Elron Ventures’ Other medical companies3 13.5 25.6 expected proceeds from the Bioventus Total Medical Holdings 15.0
Slide 10: Investing in Cybersecurity
Investing in Cybersecurity Cybersecurity Cybersecurity M&As Funding $20b x4.9 Time to exit $10.7b $2.7b in 109 rounds (4th highest all-time) 0-7 years (all-time high) (97% YOY) 45.6% of companies Total M&A Median exit Total VC investments Funding raised by Israeli co’s volume in 2020 multiple in 202
Slide 11: Building value in venture: cyber & enterprise software
CYBER & ENTERPRISE SOFTWARE Value Creation Building a portfolio from early stages BUILDING VALUE IN VENTURE Value $178m CAPITAL 8 years creation of $100M value created INVESTMENTS 18 companies $78m $110m our holdings invested in based on last cyber & 4 exits enterprise round software $68m 23 externa
Slide 12: 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 12
Slide 13: Cyber/Enterprise Software value creation in $M
PARTIAL EXIT CYBER/ENTERPRISE SOFTWARE VALUE CREATION in $M PROVEN CAPABILITIES IN BUILDING VALUE FROM SEED STAGE 13 2014 2015 2016 2017 2018 2019 2020 2021
Slide 14: 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 14
Slide 15: News
NEWS Bioventus Proceeds Sayata Raises Ping Identity with Option $17M; Broker acquires Structure Platform to Expand SecuredTouch for Agreement with Beyond Cyber bot detection CartiHeal Datadog has Cybersixgill Cynerio raises acquired Ozcode! Recognized as the $30M to secure Best Machine mission-criti
Slide 16: Our mature cyber/enterprise software companies
OUR MATURE CYBER/ ENTERPRISE SOFTWARE COMPANIES 17-Nov-21 16
Slide 17: 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 18: IRONSCALES
IRONSCALES FIRST INVESTMENT: 2015 TOTAL INVESTMENT: $22.4M* MAIN PARTNERS: K1 Investment $1.4M* Management, Jump Capital, PSG IRONSCALES 2021 milestones THE BALANCE OF OUR INVESTMENT Increased New partnerships More than 1,000 YoY revenue & expansion in 18 new customers by 96% markets (4,500 in total
Slide 19: Cybersixgill
CYBERSIXGILL FIRST INVESTMENT: 2016 TOTAL INVESTMENT: $20.1M 2020-2021 GROWTH MAIN PARTNERS: The number of The number of Sonae IM, REV Venture Partners, Between 2019 and employees clients doubled with OurCrowd, Terra Venture 2020 Cybersixgill worldwide doubled a focus on Global $6M Partners, Crowdst
Slide 20: Our 2nd generation cyber/enterprise software companies
OUR 2ND GENERATION CYBER/ ENTERPRISE SOFTWARE COMPANIES 17-Nov-21 20
Slide 21: ZenGo
ZENGO FIRST INVESTMENT: 2018 Everything you need in a crypto wallet Faster setup, easier backups and recoveries, and TOTAL INVESTMENT: $27.8M unparalleled security MAIN PARTNERS: Benson Oak $2.9M Ventures, SamsungNEXT, OUR Insight Partners ZENGO 2020-21 HIGHLIGHTS INVESTMENT Product Acquired VISION:
Slide 22: Cynerio
CYNERIO FIRST INVESTMENT: 2018 TOTAL INVESTMENT: $35.4M 2021 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 23: Sayata
SAYATA FIRST INVESTMENT: 2019 Sayata raised $17M to TOTAL INVESTMENT: $27.2M accelerate rapid expansion MAIN PARTNERS: Kamet, $6.9M OurCrowd, Vertex, Team8 OUR INVESTMENT Sayata has more than doubled its volumes each quarter since launching in Q1 of 2020 VISION: Maximizing efficiencies in the SMB in
Slide 24: Pivotal medical companies
PIVOTAL MEDICAL COMPANIES 17-Nov-21 24
Slide 25: 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 26: 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 27: 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 28: 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: In Dec. 2020
Slide 29: 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 30: Exits at a value of $1.6B
EXITS AT A VALUE OF $1.6B $600M Our share in proceeds 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 31: Summary
~$300M 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 32: Thank you
= Elron am. Ventures elron.com
Slide 33: Our cybersecurity companies
CYBERSIXGILL IRONSCALES ZENGO Cyber intelligence Automated Crypto wallet that 23% 13%* 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
Slide 34: Our software companies
OUR SOFTWARE COMPANIES OPENLEGACY ONEVIEW KEEPY AUDIOBURST Automated API AI-based HR analytics AI-powered integration 23% platform for 10% for employee 29% audio search 7% platform that by RDC analyzing & by RDC retention & by RDC platform that speeds digital extracting engagement discovers transfor
Slide 35: Our medical device companies
NOTAL CARTIHEAL BRAINSGATE VISION Implant for Electrical Remote cartilage and 27% stimulation- 28% monitoring of 11% OUR bone regeneration based treatment for patients with age-related MEDICAL Our Our Our in load-bearing investment: ischemic investment: macular investment: joints $18.4m stroke $31m
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