Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Investor Presentation (August 2022)
32 slides from Elron Ventures's investor presentation, August 2022
Slide 1: Elron Ventures - Investor Presentation
ELRON VENTURES - INVESTOR PRESENTATION August 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: 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 5: CartiHeal Sold to Bioventus for up to $500M
CARTIHEAL SOLD TO BIOVENTUS FOR UP TO $500M PAYMENT SCHEDULE COLLATERAL THE TRANSACTION Transaction consideration will be received in accordance with the table below (the amounts • Sellers received: first ranking fixed represent Elron’s share and are in principal terms. pledge was registered in favo
Slide 6: 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 7: 4 Value Circles
4 VALUE Advisory Board CIRCLES CORE TEAM Guidance and support based on investment expertise built over decades ADVISORY Gil Gur Arie Jeff Trudeau Chief Global Data, CISO at Chime in Consulting ELRONISTS Insights and Analytics Silicon Valley platform of Officer at Ford Motor (previously CISO at Guidi
Slide 8: 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 9: Long-Standing Track Record of Building New Portfolios and Scaling Investments
LONG-STANDING TRACK RECORD OF BUILDING NEW PORTFOLIOS AND SCALING INVESTMENTS 128 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 10: 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 10
Slide 11: Elron Ventures II
Elron Ventures II CYBERSECURITY & B2B SOFTWARE – GROWTH CATALYST IN THE NEXT DECADE Seed Round A Round B Round C 11
Slide 12: 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 13: 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 14: Strong Financial Position
STRONG FINANCIAL POSITION* PORTFOLIO RESOURCES Medical Portfolio Non contingent Receivables ($40.9M) from the sale of CartiHeal + ($59M) Cyber/Software Holdings- Brainsgate Current cash deposits and Mature Portfolio debentures ($93.6M) ($40.7) ($74.7M) Contingent consideration from the sale of Carti
Slide 15: Holdings book value and financing-round valuation
Book value at Our holdings based on valuation of last Holdings in companies 1 June 30, 2022 ($m) financing round 2 ($m) ^ Based on the Cyber/Software Holdings- Mature Portfolio 21.1 93.6 remaining non- Cyber/Software Holdings- New Portfolio 11.6 14.8 contingent Medical Holdings (excluding BrainsGate
Slide 16: Our Mature Cybersecurity / B2B Software Companies
OUR MATURE CYBERSECURITY / B2B SOFTWARE COMPANIES 8/9/2022 16
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 23: Medtech Companies
MEDTECH COMPANIES 8/9/2022 23
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 Pocared Nitinotes Coramaze BrainsGate • We may also exploit Biodegradable Early AMD Cult
Slide 25: 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. $18.4M >500 patients were Outstanding pivotal clinica
Slide 26: Opportunity Summary
STRONG FINANCIAL POSITION • Assets Under Management (AUM) ~$400M TRACK RECORD OF BUILDING NEW PORTFOLIOS & SCALING THEM UP • Cybersecurity & B2B Software portfolio – Net Asset Value of $166M • MedTech portfolio – Net Asset Value of $88M OPPORTUNITY • Elron Ventures II – Portfolio buildup in motion w
Slide 27: Thank You
= Elron am. Ventures elron.com
Slide 28: 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 29: 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 30: Our Software Companies
OUR SOFTWARE COMPANIES OPENLEGACY KEEPY AUDIOBURST Automated API HR analytics AI-powered integration 22% for employee 29% audio search 9% platform that by RDC and team by RDC platform that speeds digital Our retention & Our discovers Our transformation investment: engagement investment: content that
Slide 31: 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 POCARED Minimally Transcatheter Rapid and invasive
Slide 32: Our First Drone Tech Company
OUR FIRST DRONE TECH COMPANY WONDER ROBOTICS Software for safe & 28% Commercial drone operations: A autonomous by RDC landing on market waiting to take off unprepared & Our unmarked investment: The commercial use of drones will revolutionize numerous sites $2.0m applications, from package delivery t