Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Investor Presentation (March 2018)
35 slides from Elron Ventures's investor presentation, March 2018
Slide 1: Discover. Innovation
DISCOVER. INNOVATION March 2018
Slide 2: Disclaimer and forward-looking statements
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. Elron may make improvements and/or changes in the features or content presented
Slide 3: Discover. Elron
DISCOVER. ELRON
Slide 4: We identify opportunities, build technology leaders and exit
+ WE HAVE MORE THAN YEARS EXPERIENCE IDENTIFYING OPPORTUNITIES, BUILDING TECHNOLOGY LEADERS, AND EXITING HOLDINGS + WE INVEST PRIMARILY IN EARLY STAGE COMPANIES + WE RELY ON A PROVEN STRATEGY OF HANDS-ON INVOLVEMENT IN THE DAY-TO-DAY OPERATIONS OF OUR GROUP COMPANIES THE IDEA: to bridge the gap betw
Slide 5: 2017: $20m invested in 11 group companies
Exit proceeds in the last 5 years * Investments in the last 5 years * Dividends distributed in the last 5 years 2017: $20m invested in 11 group companies*; exit proceeds of $21m*; liquid resources balance of $72m at year end*; loss of $25.5m * Including RDC 5
Slide 6: Medical portfolio companies and milestones
recruited last Electrical stimulation-based treatment Rapid and automated microbiology patient for FDA trial in for ischemic stroke laboratory system March 2018 30% 69% by Elron & RDC Top-line results expected in Q3/18 Our investment: $29m Our investment: $73.2m expects to Implant for cartilage and
Slide 7: Revealing our cyber investment activities
7 REVEALING OUR CYBER INVESTMENT ACTIVITIES = ¥ 9 @M@ & A
Slide 8: Global cybersecurity spending projections
ACCORDING TO PROJECTIONS WILL BE SPENT GLOBALLY ON CYBERSECURITY FROM 2017 TO 2021 AND CRIME DAMAGE COSTS WILL HIT ANNUALLY BY 2021 The cybersecurity market grew by roughly U.S. gov’t spending on cybersecurity has over 13 years, and is the fastest increased at an average annual rate of growing tech
Slide 9: Average cost of cyber crime per company
The global average cost of cyber crime per In a sample of 254 organizations, company reached $11.7M in 2017, an successful breaches per company each increase of 62% from 2013 and 27.4% from year rose more than 27%, from an average 2016 of 102 to 130 Sources: Cybersecurity Ventures: Cybersecurity Mar
Slide 10: Cybersecurity M&A and financing volume
M&A volume M&A transactions financing volume financing transactions $2B deals topped M&A activity in the cybersecurity sector in Q4 of 2017 Sources: Momentum Cyber: Cybersecurity Almanac | 2018; Cybersecurity Ventures: Cybersecurity Mergers & Acquisitions, https://cybersecurityventures.com/mergers-a
Slide 11: Cyber activity through RDC (Elron & Rafael JV)
+ Through RDC (Elron & Rafael JV) we leverage Rafael’s vast cyber knowhow & organizational footprint to evaluate technologies and support their development + Leadership- Zohar Rozenberg, VP Cyber Investments: Over 20 years of experience; previously Head of the IDF's Cyber Department; joined Elron in
Slide 12: Cyber portfolio companies
Automatic detection, investigation and remediation of security alerts 22% by RDC Our investment: $5m Cyber intelligence platform that Behavioral biometrics-based user Protecting enterprises from cyber analyzes the dark web authentication for mobile apps phishing attacks 22% 29% by RDC 24% by RDC Our
Slide 13: Discover. Secdo
DISCOVER. SECDO
Slide 14: Secdo: our investment $5M
2014 OUR INVESTMENT: 2016 $5M $13.9M Marius Nacht, Ehud (Udi) Weinstein, Ofir Shalvi, O.G. Tech Ventures To help enterprise security teams cope with the mounting intensity of cyberattacks by automating the most difficult and time-consuming aspects of OUR HOLDING: incident response Incident response
Slide 15: Too many security alerts to investigate
There are simply too many alerts to investigate in a timely manner Finding out what actually happened is complicated and takes too long When a threat is discovered, isolating it and removing it is difficult at best HOURS ARE SPENT BY CO’S OF SECURITY ALERTS EACH YEAR ANALYZING FALSE ARE DEEMED
Slide 16: Analyzer, Observer, Responder
Security for Technology and Service Providers ANALYZER Automatically investigates alerts OBSERVER RESPONDER Continuously records Automatically endpoint activity executes response DEFENDER Enforces AI lessons learned Sources: Mandiant M-Trends Report, 2017 16
Slide 17: Discover. Sixgill
DISCOVER. SIXGILL
Slide 18: Sixgill: our investment $3.5M
2014 OUR INVESTMENT: 2016 $3.5M $4.5M Terra Venture Partners To expose cybercrime within the Dark Web at the design & planning stages, and to provide enterprises with early threat signals & actionable OUR HOLDING: intelligence A cyber intelligence platform that detects & defuses threats before 22% t
Slide 19: The Dark Web can't be crawled and indexed
that requires very little technical expertise that makes it difficult for an enterprise’s threat intelligence program to determine which threat poses a realistic risk to the organization where criminals are “armed” with powerful automated tools The Dark Web can’t be crawled & Sites are rarely
Slide 20: Dark web intelligence automation is key
DARK WEB INTELLIGENCE AUTOMATION IS KEY FOR EFFICIENT SECURITY + PREVENT attacks before they occur + DETECT and CONTROL organizational data leaks + OBSERVE the attacker and planning process Sixgill is invisible to cyber SixGill traces malicious activity criminals back to their original sources + GEN
Slide 21: Discover. SecuredTouch
DISCOVER. SECUREDTOUCH
Slide 22: SecuredTouch: our investment $4.5M
2015 OUR INVESTMENT: 2016 $4.5M $11.3M Global Village Advisory, Upwest Labs To say goodbye to passwords & security questions, by providing real time identity verification for digital and mobile transactions OUR HOLDING: Solution that profiles users based on their physical behavior with devices, allo
Slide 23: Behavioral biometrics and fraud drivers
[Behavioral biometrics = the uniquely identifying and measurable patterns in human interaction with a device] 1 3 Speed and ease of use rank among REDUCE FRICTION Online shopping presents the CONTINUOUSLY the top 3 criteria to make a WITH SEAMLESS greatest fraud opportunity DETECT STOLEN payment sol
Slide 24: SecuredTouch: strengthen security and reduce fraud
SECUREDTOUCH: STRENGTHEN SECURITY AND REDUCE FRAUD WHILE IMPROVING CUSTOMERS’ DIGITAL EXPERIENCE SecuredTouch creates a dynamic digital profile to confirm the user's identity and develop ongoing authentication g Machine-leaming Model —\ me Baseline profiles 000 inger size Authenticate Block MORE THA
Slide 25: Discover. IronScales
DISCOVER. |RONSCALES
Slide 26: IronScales: our investment $2.5M
OUR INVESTMENT: $2.5M To protect enterprises from cyber phishing attacks OUR Automatic anti-phishing prevention, detection and response HOLDING: 24% platform Sales; Raised $6M in a round led by K1 Investment Management in Oct. ‘17 26
Slide 27: Phishing attack statistics
Attempt to obtain sensitive information such as usernames, passwords, and credit card details (and indirectly, money), often for malicious reasons, by disguising as a trustworthy entity in an electronic communication About 600,000 unique 90%-95% of all phishing attacks took cyberattacks begin with p
Slide 28: Combating modern email phishing attacks
COMBATING MODERN EMAIL PHISHING ATTACKS IRONSCALES combines human intelligence with machine learning to prevent, detect and respond automatically to email phishing attacks before and after they land in the inbox i ) IRONSCHOOL Benchmark users’ phishing recognition & classification habits y 4 (9) IRO
Slide 29: Discover. Alcide
DISCOVER. ALCIDE
Slide 30: Alcide: our investment $2.3M
2016 OUR INVESTMENT: 2016 $2.3M $5.2M Intel Capital To provide universal security for hybrid, multi-cloud and multi- compute data centers OUR HOLDING: Network security platform for any combination of container, VM and bare metal data centers across private and public cloud environments 26% Pre-sales
Slide 31: Fragmented computing architectures create security challenges
Nowadays, organizations’ computing processes have fragmentary architectures, are scattered across locations, and use diverse technologies – CREATING NEW SECURITY CHALLENGES + 1 APP > CONSISTED OF 1 + 1 APP > PROGRAM FILE + CONSISTS OF TENS TO + 1 NETWORK > RAN ALL APPS HUNDREDS OF MICROSERVICES > +
Slide 32: A firewall per microservice
- A firewall per microservice - > Real-time visibility of the whole data center – infrastructure and applications > Works with any combination of platforms (container, serverless, VM, bare metal) and IT environment (hybrid, multi-compute, multi-cloud ) > Secures the data center against cyber attacks
Slide 33: Other cyber holdings: healthcare and cloud encryption security
2017 2017 OUR OUR INVESTMENT: 2017 INVESTMENT: 2017 $1.5M $3M $2.5M $2.5M Accelmed To protect connected healthcare from Open up the cloud for enterprises and cyber attacks OUR OUR HOLDING: regulated organizations, overcoming risks of HOLDING: Security platform that combines device privacy, complianc
Slide 34: Elron. Opportunity. Thank you.
ELRON. OPPORTUNITY Thank you.
Slide 35: Holdings in companies and book value
Holdings in companies 1 Book value at Amount invested Dec. 31, 2017 ($m) ($m) Associates and consolidated companies: Pocared (60%) 13.1 65.3 BrainsGate (30%) 1.3 29.1 CartiHeal (32%) 6.0 16.9 PLYmedia (23%) - 2.5 Others 10.5 25.8 Companies presented at fair value: Notal Vision (17%) 12.0 13.5 Others