Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Investor Presentation (November 2017)
35 slides from Elron Ventures's investor presentation, November 2017
Slide 1: Discover. Innovation
DISCOVER. INNOVATION November 2017
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: Experience identifying opportunities, building technology leaders, and exiting
+ 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 YTD investments and liquid resources
Exit proceeds in the last 5 years * Investments in the last 5 years * Aggregate profit in the last 5 years Dividends in the last 5 years 2017 YTD: $20m invested in 11 group companies*; liquid resources balance of $72m at period end*; loss of $15m * Including RDC 5
Slide 6: Key group companies and Elron's investment
Electrical stimulation-based treatment Rapid and automated microbiology Implant for cartilage and bone for ischemic stroke laboratory system regeneration in load-bearing joints 30% 69% by Elron & RDC 34% Our investment: $29m Our investment: $73.2m Our investment: $13.4m Remote monitoring of patients
Slide 7: BrainsGate
DISCOVER. BRAINSGATE
Slide 8: BrainsGate: our investment $29M
2000 OUR 2005 INVESTMENT: $29M $97M Johnson & Johnson, Boston Scientific, Medtronic, Pitango, Cipio Partners To increase the potential number of stroke victims who receive treatment from ~7% to ~80% OUR HOLDING: 30% Electrode used to electrically stimulate a nerve center behind the nasal cavity (the
Slide 9: Interruption of blood flow to the brain
INTERRUPTION OF BLOOD FLOW TO THE BRAIN When blood flow to an area of the brain is cut off When brain cells die, functions controlled by that part of the brain (e.g. memory, muscle control) Blood flow to the brain is blocked by a Blood leaks into the brain from a blood vessel of strokes are ischemic
Slide 10: Treatment options for ischemic stroke
Cells in the affected area die almost immediately, and cannot be salvaged However, surrounding the blockage are regions of viable tissue at risk – the ischemic penumbra – CLOT-BUSTING DRUG (GOLD CLOT- NEUROSTIMULATION TO STANDARD) REMOVAL WITH A STENT RETRIEVER INCREASE BLOOD FLOW The only FDA-appro
Slide 11: BrainsGate ISS neurostimulation system
5 daily stimulation sessions, of 4 hours each The neurologist performs the implantation (which is brief and simple), with the aid of a navigation system SPG (sphenopalatine ganglion) = supplies parasympathetic innervation to the anterior cerebral circulation and some of the posterior circulation
Slide 12: Pivotal trial for U.S. marketing approval of the ISS
BRAINSGATE IS CONDUCTING AN FOR U.S. MARKETING APPROVAL OF THE ISS, ON 800-1000 PATIENTS: This slide contains forward-looking information as defined in Section 21E of the U.S. Securities Exchange Act of 1934, and in Section 32A of the Israel Securities Law, 5728-1968. See Slide 2 of this presentatio
Slide 13: Pocared
DISCOVER. POCARED
Slide 14: Pocared: our investment $73M
2004 OUR INVESTMENT: 2007 $73M $117M SCP Vitalife To promote antibiotic stewardship and significantly reduce lab costs by providing a method for rapid infectious diseases diagnostics OUR HOLDING: 69% Rapid and automated microbiology lab system for infectious diseases diagnosis 14
Slide 15: Limits of traditional microbiology testing
Since the 19th century, microbiology testing has been done by culturing In the 21st century, developed a technology for automatically bacteria in petri dishes identifying bacteria in body fluids, by identifying their optical “fingerprint” Expensive: Requires reagents and skilled lab technicians Manu
Slide 16: Optical identification of micro-organisms
+ Micro-organisms are identified based on their unique optical signatures in response to different UV wavelengths + Culture-free, lab assistant operated + Gold standard accuracy + A full batch of 42 samples takes 2 hours to diagnose Filtration using “wet foam” technology to The Analyzer employs A re
Slide 17: Forward-looking information
This slide contains forward-looking information as defined in Section 21E of the U.S. Securities Exchange Act of 1934, and in Section 32A of the Israel Securities Law, 5728-1968. See Slide 2 of this presentation. 17
Slide 18: CartiHeal
DISCOVER. CARTIHEAL
Slide 19: CartiHeal: our investment $13M
2009 OUR INVESTMENT: 2012 $13M $36M Johnson & Johnson, Accelmed, aMoon (Marius Nacht) To treat joint surface lesions, and to halt the progression of knee OUR osteoarthritis and delay or prevent knee replacement HOLDING: Implant for cartilage and bone regeneration in the joint 34% 19
Slide 20: Cartilage lacks spontaneous healing potential
Cartilage does not possess spontaneous healing There are no treatments that halt the progression potential of osteoarthritis (OA) During 2004-2011 people underwent a In 2010 total knee replacements were surgical procedure addressing a cartilage defect in performed the knee Persons with knee OA spend
Slide 21: Agili-C implanted in patients to date
3 weeks post-op 6 weeks post-op 12 months post-op CARTIHEAL’S AGILI-C HAS BEEN IMPLANTED IN OVER PATIENTS TO DATE TO TREAT TRAUMATIC AND DEGENERATIVE LESIONS IN THE KNEE, GREAT TOE & ANKLE The Agili-C is investigational in the U.S., and CE-marked in the EU. 21
Slide 22: Multicenter U.S. and EU trial design
Multicenter (US and EU) Will enroll up to 500 patients, depending on interim analyses (1st interim analysis: 250 patients enrolled) Primary endpoint: superiority vs. the surgical standard of care (microfracture or debridement) over a follow-up period of 2 years Intended use: treatment of joint surfa
Slide 23: Cyber group companies and Elron's holdings
Protecting Cyber intelligence User authentication Universal security Automatic enterprises from platform that for mobile based on and management detection and cyber phishing analyzes the dark behavioral platform for hybrid investigation of attacks web biometrics data centers security alerts 24% by R
Slide 24: Secdo
DISCOVER. SECDO
Slide 25: Secdo: our investment $5M
2014 OUR INVESTMENT: 2016 $5M $13.9M Marius Nacht, Ehud (Udi) Weinstein, Ofir Shalvi, LYN Holdings To help enterprise security teams cope with the mounting intensity of OUR cyberattacks by automating the most difficult and time-consuming aspects of HOLDING: incident response 22% Incident response pl
Slide 26: 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 27: Observer, Analyzer and Responder platform
Security for Technology and Service Providers Always be aware Focus on alerts that matter Respond quickly & precisely Observer continuously records every Analyzer continuously & automatically Responder gives security and IT people the activity on every endpoint and server in connects the dots betwee
Slide 28: SaaS and API companies in the group
SaaS tools for cloud API integration platform business management that speeds digital and optimization transformation 34% by RDC 39% by RDC Our investment: $6m Our investment: $5.2m 28
Slide 29: OpenLegacy
DISCOVER. OPENLEGACY
Slide 30: OpenLegacy: our investment $5.2M
2013 OUR INVESTMENT: 2014 $5.2M $10.8M Entrepreneurs To simplify the delivery of any core application as a digital service OUR Automatic API generation for rapidly extracting the services and HOLDING: 39% information from legacy systems, and transforming them into mobile, web, & cloud applications 3
Slide 31: Legacy systems cost and risk
Legacy systems preserve In both the public and private sectors Replacing/upgrading IT systems involves significant in the U.S. (e.g. federal agencies & banks), maintaining legacy systems and (security, compatibility, data loss) consumes three-quarters of IT budgets While replacing/upgrading le
Slide 32: OpenLegacy revolutionizes legacy modernization
Magic Quadrant for Full Life Cycle API Management OPENLEGACY REVOLUTIONIZES LEGACY MODERNIZATION, OFFERING INDEPENDENCE FROM EXPENSIVE VENDORS, AND ELIMINATING HIGH COSTS AND HIGH RISK 32
Slide 33: API sector acquisitions and IPO
IBM and ANZ Bank MULESOFT goes GOOGLE complete integration public at $2b of 20 new APIs after 1 acquires APIGEE year, as part of $315m valuation (currently for $625m partnership traded at ~$2.8b) Sep 2016 Oct 2016 Mar 2017 Source: publicly available information 33
Slide 34: Elron. Opportunity. Thank you.
ELRON. OPPORTUNITY Thank you.
Slide 35: Holdings in companies
Holdings in companies 1 Book value at Amount invested Sep. 30, 2017 ($m) ($m) Associates and consolidated companies: Pocared (60%) 15.7 65.3 BrainsGate (30%) 1.8 29.1 CartiHeal (34%) 3.5 13.4 PLYmedia (23%) - 2.5 Others 8.8 22.1 Companies presented at fair value: Notal Vision (19%) 14.0 13.5 Others
Elron Ventures — Investor Presentation (November 2017) on 6ix