Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Elron Electronic Industries — Investor Presentation (April 2017)
43 slides from Elron Ventures's investor presentation, Apr 6, 2017
Slide 1: Discover. Innovation
DISCOVER. INNOVATION
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: Operational holding company in the VC space
OPERATIONAL HOLDING COMPANY IN THE VC SPACE WE SPECIALIZE IN TECHNOLOGIES WITH SIGNIFICANT EXIT POTENTIAL + WE HAVE MORE THAN 55YEARS EXPERIENCE IDENTIFYING OPPORTUNITIES, BUILDING TECHNOLOGY LEADERS, AND EXITING HOLDINGS + WE INVEST PRIMARILY IN EARLY STAGE COMPANIES. + WE RELY ON A PROVEN STRATEGY
Slide 5: 2016 highlights
* Including RDC * 2016: $40m invested in 11 group companies; a $15m dividend distributed; liquid resources balance of $34m at year end; loss of $27m
Slide 6: Our medical device companies
OUR MEDICAL DEVICE COMPANIES BRAINSGATE (J) 8rainsGate Electrical stimulation-based treatment for ischemic stroke 30% Ourinvestment $29M (Co t CndraL vision Remote monitoring of patients with age-related macular degeneration 21% Ourinvestment: $12.9 POCARED VY Diagnostics 7 Rapid and automated micro
Slide 7: Discover. BrainsGate
DISCOVER. BRAINSGATE
Slide 8: BrainsGate: our investment $29M, holding 30%
OUR INVESTMENT:$29M OUR HOLDING:30% *
Slide 9: Ischemic stroke need
Sources: American Heart Association: Heart Disease and Stroke Statistics Report – 2015; BrainsGate website: http://brainsgate.com/eng/page.php?id=3&instance_id=9. *
Slide 10: Stroke treatment landscape
Sources: 2015 AHA/ASA Focused Update of the 2013 Guidelines for the Early Management of Patients With Acute Ischemic Stroke Regarding Endovascular Treatment. Stroke. 2015 Oct;46(10):3020-35; American Heart Association: Heart Disease and Stroke Statistics Report – 2010; 2016; American Heart Associati
Slide 11: BrainsGate ISS system
BrainsGate’s ISS is an investigational device, not approved for marketing. GuideView SPG (sphenopalatine ganglion) = supplies parasympathetic innervation to the anterior cerebral circulation and some of the posterior circulationTransmitter = emits RF waves which energize the implantImplant = deliver
Slide 12: 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.
Slide 13: Discover. Pocared
DISCOVER. POCARED
Slide 14: Pocared: our investment $64M, holding 67%
OUR INVESTMENT:$64M OUR HOLDING:67% *
Slide 15: Microbiology testing challenges
Since the 19th century, microbiology testing has been done by culturing bacteria in petri dishes Expensive: Requires reagents and skilled lab techniciansManual: Prone to human error, limited throughputInefficient: Large lab footprintLengthy: Diagnosis that relies on culturing bacteria to reach suffi
Slide 16: P-1000 Analyzer
The Analyzer employs algorithms that determine which wavelength to choose, and detect the organism’s “optical fingerprint” P-1000 Analyzer Sample Processor User interface The P-1000 Analyzer is investigational in the U.S., and CE-marked in the EU. The Sample Processor is exempt from regulatory appro
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.
Slide 18: Discover. CartiHeal
DISCOVER. CARTIHEAL
Slide 19: CartiHeal: our investment $12M, holding 35%
OUR INVESTMENT:$12M OUR HOLDING:35% *
Slide 20: Cartilage damage and osteoarthritis
* Cartilage does not possess spontaneous healing potential There are no treatments that halt the progression of osteoarthritis (OA) Sources: CDC website: http://www.cdc.gov/arthritis/basics/osteoarthritis.htm, http://www.cdc.gov/nchs/fastats/inpatient-surgery.htm; Losina E, et al (2015) Arthritis Ca
Slide 21: Agili-C implant
* 12 months post-op 6 weeks post-op 3 weeks post-op The Agili-C is investigational in the U.S., and CE-marked in the EU.
Slide 22: 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.
Slide 23: Cyber 2016-2017
CYBER 2016-2017 1 2 NEW VP CYBERAPPOINTED 3 5 NEWINVESTMENTSIN CYBER COMPANIES 4 SYNERGISTIC WITH RAFAEL ADVANCED DEFENSE SYSTEMS’ ACTIVITIES IN CYBERSPACE ELRON-CELLCOM COOPERATION LAUNCHEDTO SEEK CYBER/IOT INVESTMENTS 23
Slide 24: Our cyber companies
OUR CYBER COMPANIES IRONSCALES Protecting enterprises from cyber phishing attacks 27% byroc Our investment: $1.5m @ IRONSCALES: ‘SIXGILL Cyber intelligence platform that analyzes the dark web 22% Our investment: $2.5m SECUREDTOUCH Real time identity verification for mobile apps and mobile websites 2
Slide 25: Discover. Secdo
DISCOVER. SECDO
Slide 26: Secdo: our investment $4M, holding 22%
OUR INVESTMENT:$4M OUR HOLDING:22% *
Slide 27: Security alert challenges
* Sources: CSA and Skyhigh: “Survey of IT leaders reveals the challenges of cloud security”, https://www.skyhighnetworks.com/csa-report-2/; betanews: Almost a third of IT professionals ignore cyber security alerts, https://betanews.com/2016/06/28/one-third-ignore-security-alerts/; SecurityWeek.com:
Slide 28: Secdo Observer, Analyzer and Responder
* Security for Technology and Service Providers Observer continuously records every activity on every endpoint and server in the network, and stores them on a centralized server where they can be retained for years.Enables investigating any alert Analyzer continuously & automatically connects the do
Slide 29: 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.
Slide 30: Our IT companies
OUR IT COMPANIES CLOUDYN OPENLEGACY platform 39% byro Sur in ent $5.2M 30
Slide 31: Discover. Cloudyn
DISCOVER. CLOUDYN
Slide 32: Cloudyn: our investment $6M, holding 40%
OUR INVESTMENT:$6M OUR HOLDING:40% *
Slide 33: Cloud management challenges
* Source: ScienceLogic Annual Report on Hybrid IT Trends, http://www.sciencelogic.com/cloud-adoption-survey/ Migrating the proper workloads and building the right mix of clouds is tough Enterprises are struggling to build a single, accurate picture to govern cloud resource usage Cost and performance
Slide 34: Cloudyn platform capabilities
* VISUALIZE CLOUDS & CLOUD METRICS:costutilizationconsumptionperformance ANALYZE, IDENTIFY & GOVERN:abnormal consumptionspiky costsunused resourcespotential savings FINANCIAL-DRIVEN OPTIMIZATION:reserved capacity mgmtcost-driven smart-sizingresources relocation, reusefor any VM, DB DYNAMIC RESOURCE
Slide 35: Selected customers
SELECTED CUSTOMERS eee =Riolinto ac Highp Co Hewlett Packard Yale Enterprise ConocoPhillips SONY = &® Microsoft technologies EG Westcon WiIX «fP ezalando DU © asos amdocs NICE re ticketmaster VERITAS 35
Slide 36: Discover. OpenLegacy
DISCOVER. OPENLEGACY
Slide 37: OpenLegacy: our investment $5.2M, holding 39%
OUR INVESTMENT:$5.2M OUR HOLDING:39% *
Slide 38: Legacy system modernization problem
* Sources: United States Government Accountability Office, Information Technology: Additional Actions and Oversight Urgently Needed to Reduce Waste and Improve Performance in Acquisitions and Operations, GAO-15-675T, Jun 10, 2015, http://www.gao.gov/assets/680/670745.pdf; Tenemos, Banks are st
Slide 39: OpenLegacy revolutionizes legacy modernization
* OPENLEGACY REVOLUTIONIZES LEGACY MODERNIZATION, OFFERING INDEPENDENCE FROM EXPENSIVE VENDORS, AND ELIMINATING HIGH COSTS AND HIGH RISK Magic Quadrant for Full Life Cycle API Management
Slide 40: API management market transactions
* Source: publicly available information GOOGLE acquires APIGEE for $625mSep 2016 IBM and ANZ Bank complete integration of 20 new APIs after 1 year, as part of $315m partnershipOct 2016 MULESOFT goes public at $2b valuation (currently traded at ~$2.8b)Mar 2017
Slide 41: 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.
Slide 42: Elron. Opportunity. Thank you.
ELRON. OPPORTUNITY Thank you.
Slide 43: Holdings in companies and book values
1 Includes Elron’s d irect holdings and its effective indirect holdings through RDC and RDSeed. Includes investments made after Dec. 31, 2016.2 Includes Elron’s balance and 50.1% of RDC’s balance.3 The above financial data are based on publicly available information and do not represent a valuation,
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