Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Investor Presentation (November 2022)
31 slides from Elron Ventures's investor presentation, November 2022
Slide 1: Elron Ventures - Investor Presentation
ELRON VENTURES - INVESTOR PRESENTATION November 2022
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 Ventures: 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: $34.45m dividend distribution
DIVIDEND DISTRIBUTION Committed to returning value to our shareholders In Q3 2022 we recorded a gain of approximately $84m We are sharing with our shareholders the value created and distributing our entire exit proceeds received during 2022 $34.45m dividend RECORD DATE: November 28, 2022 PAYMENT DAT
Slide 5: Building value in venture capital investments
BUILDING VALUE IN VENTURE CAPITAL INVESTMENTS 1960s Defense Elbit 14 exits totaling $2.2b Investment platform 1970s since 2010, of which based on 4 value circles: strategic design partners, Medical Imaging Elron Ventures share is Elscint advisory board, approximately $750m experienced founder networ
Slide 6: CartiHeal sold to Bioventus for up to $500M
CARTIHEAL SOLD TO BIOVENTUS FOR UP TO $500M PAYMENT SCHEDULE The transaction consideration will be received in COLLATERAL THE TRANSACTION accordance with the table below (the amounts • Sellers received: a first ranking fixed represent Elron’s share and are in principal terms. Each installment, which
Slide 7: Teamwork
TEAMWORK An experienced team which led 14 exits, dozens of investments, and follow-on financings totaling hundreds of millions of $s YARON ELAD NIV LEVY ELIK ETZION KOBI KATZ ZOHAR CEO & Managing CFO Managing Partner CTO & Partner, ROZENBERG Partner Broad experience in Lt. Col. Ret. Previously Head
Slide 8: 4 Value Circles
4 VALUE Advisory Board CISO CLUB CIRCLES A closed group of active CISOs from notable firms, backed by Elron Ventures, scouting early-stage cybersecurity startups, investing as a group ADVISORY Gil Gur Arie Jeff Trudeau Chief Global Data, CISO at Chime in Consulting ELRONISTS Insights and Analytics S
Slide 9: Validation platform for deep-tech oriented investments in early stages
VALIDATION PLATFORM FOR DEEP-TECH ORIENTED INVESTMENTS IN EARLY STAGES RDC: ELRON VENTURES & RAFAEL’S JOINT INVESTMENT VENTURE FOR INITIATING & DEVELOPING NEW CO’s EXTENSIVE ENGAGEMENT WITH START-UPS AS PART OF DUE DILIGENCE Vast experience in Well-established SUCCESSFUL CASE technological practice
Slide 10: Long-standing track record of building new portfolios and scaling investments
LONG-STANDING TRACK RECORD OF BUILDING NEW PORTFOLIOS AND SCALING INVESTMENTS 129 5 $82m 28 year year B2B software/cyber performance 24 companies portfolio construction exits exit proceeds external follow-on rounds $225m* EXIT value created EXIT EXIT EXIT EXIT $89m* invested 2014 2015 2016 2017 2018
Slide 11: Cybersecurity / B2B software: from seed to exit
CYBERSECURITY / B2B SOFTWARE: FROM SEED TO EXIT Sold to PALO ALTO NETWORKS Sold to MICROSOFT Sold to RAPID7 Sold to Sold to PING IDENTITY INTUIT July Apr. Feb. June Dec. 2017 2018 2021 2021 2021 11
Slide 12: Elron Ventures II
Elron Ventures II PORTFOLIO BUILDUP – GROWTH CATALYST IN THE NEXT FEW YEARS Seed Round A Round B Round C 12
Slide 13: Elron Ventures II - Portfolio buildup: cybersecurity
ELRON VENTURES II - PORTFOLIO BUILDUP CYBERSECURITY 18% 24% 3 co-founders, strong tech background and seasoned in the 2 co-founders, strong tech background (IDF unit 81 alumni), strong cybersecurity ecosystem. Hyped space (software supply chain entrepreneurial skills. Disruptive tech (session protec
Slide 14: Elron Ventures II - Portfolio buildup: B2B software
ELRON VENTURES II - PORTFOLIO BUILDUP B2B SOFTWARE 29% 29% 2 co-founders, strong tech & business background (IDF unit 81 2 co-founders, strong DevOps & data science background, DevOps alumni). Rapidly growing space (HR tech), uncrowded domain influencer track record. The CI/CD ‘jungle’ has bred a ne
Slide 15: Holdings at book value and last financing round valuation
Book value at Our holdings based on valuation of last Holdings in companies 1 September 30, 2022 ($m) financing round 2 ($m) Cyber/Software Holdings- Mature Portfolio 19.3 93.6 Cyber/Software Holdings- New Portfolio 11.0 15.1 ^ BrainsGate- Based Medical Holdings (excluding BrainsGate) 3 9.0 19.0 on
Slide 16: Strong financial position
STRONG FINANCIAL POSITION* PORTFOLIO RESOURCES Deferred Consideration from the sale of CartiHeal Current cash deposits, other ($50.2M) Medical Portfolio financial assets and debentures ($19) excluding dividend to distribute ($50.2m is the balance in the Financial + ($42.45M) Statements as of 30.9.22
Slide 17: Our mature cybersecurity / B2B software companies
OUR MATURE CYBERSECURITY / B2B SOFTWARE COMPANIES 11/14/2022 17
Slide 18: IRONSCALES
IRONSCALES IRONSCALES is a pioneer of a cloud-native, AI-driven messaging security, with a solution that continuously detects and remediates INVESTORS advanced threats in the intensifying messaging cyber attack vector. With its native API integrations, IRONSCALES can integrate with today’s modern em
Slide 19: Cybersixgill
CYBERSIXGILL Cybersixgill’s cyber threat intelligence (CTI) platform provides AI-based data collection and analysis. Compared to other INVESTORS vendors which combine manual services in their offering, Cybersixgill’s fully automated solutions allow businesses to perform risk assessment and make cruc
Slide 20: OpenLegacy
OPENLEGACY OpenLegacy’s cloud migration platform for legacy systems enables digital transformation by easing the challenge of moving, connecting INVESTORS and managing applications on the cloud, through a phased migration approach. OpenLegacy’s platform provides 10x faster API creation (from 6 month
Slide 21: ZenGo
ZENGO ZenGo’s “crypto wallet app for everyone” enables the storage and trading of 70+ crypto assets and secure Web3 connectivity. With ZenGo’s INVESTORS simplified wallet users set up an account in seconds, buy and sell crypto in a few taps, connect to NFT and DeFi Dapps, trade and earn interest, tr
Slide 22: Cynerio
CYNERIO Cynerio’s healthcare IoT cybersecurity platform protects healthcare institutions’ IoT and connected medical devices, while ensuring service INVESTORS availability, data confidentiality, and patient safety. Cynerio’s suite of solutions stops attacks on day one of implementation, finds critica
Slide 23: Sayata
SAYATA Sayata’s online SMB insurance marketplace automates the quote-bind-issue process, allowing brokers & carriers to place more SMB INVESTORS insurance policies in a fraction of the time. Based on a few details about the client, Sayata’s AI-based platform provides brokers with several competitive
Slide 24: Medtech portfolio
MEDTECH PORTFOLIO Strategy MIX OF EARLY-STAGE AND MATURE COMPANIES; ALL FULLY FUNDED • Our exit strategy is to realize our medtech assets by creating M&A opportunities through FDA approval CartiHeal Notal Vision Nitinotes Coramaze BrainsGate • We may also exploit Biodegradable Early AMD detection Ro
Slide 25: Opportunity summary
STRONG FINANCIAL POSITION • Assets Under Management (AUM) ~$365M TRACK RECORD OF BUILDING NEW PORTFOLIOS & SCALING THEM UP • Cybersecurity & B2B Software portfolio – Net Asset Value of $166M • MedTech portfolio – Net Asset Value of $60M (including BrainsGate) OPPORTUNITY • Elron Ventures II – Portfo
Slide 26: Thank you
= Elron am. Ventures elron.com
Slide 27: Exits at a value of $2.2B, ~$750M our share
EXITS AT A VALUE OF $2.2B ~$750M Our share Acquired by COVIDIEN Sold to ROCHE Sold to BIOVENTUS Sold to 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 INTUIT ALVARION RAPID7 CORP VOLCANO ZOLL IDENTITY Ma
Slide 28: Our cybersecurity companies
CYBERSIXGILL IRONSCALES ZENGO Cyber intelligence Automated Crypto wallet that 23% 8% 9% 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 d
Slide 29: Our software companies
OUR SOFTWARE COMPANIES OPENLEGACY KEEPY AUDIOBURST Automated API Behavioral AI-powered integration 22% analytics to 29% audio search 9% platform that by RDC optimize by RDC platform that speeds digital Our software Our discovers Our transformation investment: engineering investment: content that is
Slide 30: Our medical device companies
NOTAL BRAINSGATE VISION Electrical Remote stimulation- 28% monitoring of 10% OUR based treatment for patients with age-related MEDICAL Our Our ischemic stroke investment: macular investment: $31m degeneration $15m DEVICE COMPANIES NITINOTES CORAMAZE Minimally Transcatheter invasive 20% tricuspid 27%
Slide 31: Our first drone tech company
OUR FIRST DRONE TECH COMPANY WONDER ROBOTICS 2D & 3D computer vision 27% Commercial drone operations: A for safe & by RDC autonomous market waiting to take off landing on Our unprepared & investment: The commercial use of drones will revolutionize numerous unmarked sites $2m applications, from packa
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