Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Investor Presentation (December 2020)
31 slides from Elron Ventures's investor presentation, December 2020
Slide 1: Elron - Investor Presentation December 2020
ELRON - INVESTOR PRESENTATION December 2020
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 10 exits totaling $1.5b since Long-standing strategic Medical Imaging 2010, including proceeds of partnership with Rafael, Elscint $580m for Elron and RDC providing our startups with tech assets & knowhow 1980s Semiconductors Or
Slide 5: Teamwork
TEAMWORK An experienced team which led 10 exits, dozens of investments, and follow-on financings totaling hundreds of millions of $s over the last decade YARON ELAD NIV LEVY ZOHAR ROZENBERG ZVIKA SLOVIN CEO CFO Head of Cyber Head of Medtech Vast experience in tech Broad experience in Col. Ret. Heade
Slide 6: Developments Over the Last Year
DEVELOPMENTS OVER THE LAST YEAR Continued to focus on cyber/enterprise software companies and ripen value of medtech companies • $20m strategic round led by SBI Holdings OPENLEGACY • Substantial growth in no. of customers; 7 new partnerships through channel sales • Closed partnerships with global co
Slide 7: Developments Over the Last Year
DEVELOPMENTS OVER THE LAST YEAR Continued to focus on cyber/enterprise software companies and ripen value of medtech companies • Transaction for investment and option to sell CartiHeal to Bioventus; Elron’s expected proceeds incl. $90-92m upon FDA approval & $36-37m at achievement of sales milestone
Slide 8: Realizing Value from Our Assets
REALIZING VALUE Book value at Our holdings based on FROM OUR ASSETS: Holdings in companies 1 valuation of last Sept. 30, 2020 ($m) financing round 2 ($m) In August we received Medical: $5m in cash from the secondary sale of a BrainsGate (25%) 2.2 40.7 portion of our shares CartiHeal (25%) 1.5 50.3 *
Slide 9: Cybersecurity Facts & Figures
CYBERSECURITY FACTS & FIGURES Cybersecurity exits of Israeli Prevailing price of Infosec acquisitions, companies, 2015-2019 by age of target company Avg. price/sales valuation for target company per founding decade $1.06b $3.45b (18 deals) (23 deals) 2010s 23 9.17 2015 2019 6.74 Avg. time Avg. time
Slide 10: Market Trends
MARKET TRENDS Consolidation Change of generations PE buyouts 10
Slide 11: Building Value in Venture Capital Investments: Cyber & Enterprise Software
BUILDING VALUE CYBER & ENTERPRISE SOFTWARE IN VENTURE Value Creation CAPITAL INVESTMENTS Building a seed portfolio 8 years 16 companies $130m value created 2.5 exits (3.4x multiple) $90m: our 16 external follow-on rounds holdings based $60m on last round invested in cyber & $40m: exit enterprise pro
Slide 12: 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 13: Cyber/Enterprise Software Value Creation
CYBER/ENTERPRISE SOFTWARE VALUE CREATION in $M EXIT PROVEN CAPABILITIES IN BUILDING VALUE FROM SEED STAGE PARTIAL EXIT EXIT 2012 2013 2014 2015 2016 2017 2018 2019 2020 13
Slide 14: Cyber & Enterprise Software – Growth Catalyst in the Next Decade
Exit Exit CYBER & ENTERPRISE SOFTWARE – GROWTH CATALYST IN THE NEXT DECADE Seed Round A Round B Round C 14
Slide 15: Top Headlines on Our Cyber/Enterprise Software Companies
TOP HEADLINES ON OUR CYBER/ ENTERPRISE SOFTWARE COMPANIES 15
Slide 16: Our Mature Cyber/Enterprise Software Companies
OUR MATURE CYBER/ ENTERPRISE SOFTWARE COMPANIES
Slide 17: OpenLegacy: From Legacy System to Application in Record Speed
PARTNERS: FROM LEGACY SYSTEM TO APPLICATION IN RECORD SPEED Raised $10m internal round, Team of 100 employees, in 8 followed by $20m strategic round locations worldwide (US, Latin led by SBI Holdings America, Hong Kong, Japan, $8.2M Europe, Israel) OUR Total investment of $68m ($8m by INVESTMENT us)
Slide 18: IRONSCALES
IRONSCALES ESTABLISHED: 2014 FIRST INVESTMENT: 2015 TOTAL INVESTMENT: $22.4M IRONSCALES recent milestones MAIN PARTNERS: $1.4M K1 Investment Management, Garnered a Surpassed Raised a $15m THE BALANCE OF total of 10 1,000 Jump Capital Series B led by OUR INVESTMENT awards since Jump and K1 customers
Slide 19: SIXGILL
SIXGILL ESTABLISHED: 2014 FIRST INVESTMENT: 2016 TOTAL INVESTMENT: $20.1M MAIN PARTNERS: AUTOMATING ALL PHASES OF THE $6M Sonae IM, REV Venture INTELLIGENCE CYCLE: COLLECTION, ANALYSIS OUR INVESTMENT Partners, OurCrowd, Terra & DISSEMINATION OF DATA Venture Partners VISION: To monitor & analyze Dark
Slide 20: Value-Building Events in Pivotal Companies
VALUE-BUILDING EVENTS IN PIVOTAL COMPANIES
Slide 21: 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 Stopped p
Slide 22: 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 Transaction • A $15-20M investment in CartiHeal at a pre-money value of $180M, of which $1
Slide 23: 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 24: Electrical Stimulation-Based Treatment for Ischemic Stroke
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 $31M FIRST In Mar. 2018 the company completed the largest In Dec. 2020 the company OUR INVESTM
Slide 25: 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 26: Exits at a Value of $1.5B
EXITS AT A VALUE OF $1.5B Our share in proceeds $580M 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 BRUKER MICROSOFT SYSTEMS Sold to CORP ALVARION VOLCANO ZOLL May June Sept. Nov. Nov. Feb. Sept. Oct. July Apr. 2010 2010
Slide 27: Summary
~$273M 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 10 EXITS A ROBUST PORTFOLIO of cyber and SUMMARY in the last decade enterprise software companies IN
Slide 28: Thank You.
THANK YOU. elron.com
Slide 29: Our Cybersecurity Companies
SIXGILL IRONSCALES ALCIDE Cyber Automated Devops to intelligence phishing production 23% 13% 30% platform that prevention, by RDC Kubernetes automatically & detection & The balance of our security covertly analyzes Our investment: response investment: platform Our investment: the dark web $6m platfo
Slide 30: Our Software Companies
OPENLEGACY OZCODE Automated Debugging- OUR API 23% as-a-Service 37% integration (DaaS) that SOFTWARE platform that by RDC cuts by RDC COMPANIES speeds digital debugging transforma- Our investment: time to Our investment: tion $8.2m minutes $4.0m ONEVIEW AUDIOBURST AI-based AI-powered platform for au
Slide 31: Our Medical Device Companies
CARTIHEAL BRAINSGATE POCARED Implant for Electrical Rapid and cartilage and stimulation- automated 10% OUR bone 27% based 28% microbiology by Elron & RDC* regeneration treatment laboratory MEDICAL in load- for ischemic system DEVICE bearing Our investment: stroke Our investment: Our investment: $87.
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