Slide 1: Elron - Investor Presentation March 2020
ELRON - INVESTOR PRESENTATION March 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: Elron: Building Value in Venture Capital Investments
ELRON: BUILDING VALUE IN VENTURE CAPITAL INVESTMENTS FINANCIAL INFO: 10 exits totaling $1.5b since Long-standing strategic 2010, including proceeds of partnership with Rafael, $570m for Elron and RDC providing our startups with tech assets & knowhow $183m Team of experienced VC Robust cyber / profes
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: Cybersecurity Facts & Figures
CYBERSECURITY FACTS & FIGURES Cybersecurity capital Cyber security budget for raisings, 2018-2019 2019 vs. 2018 $1.2b (76 deals) Nearly 9 of 10 IT buyers and users reported an increase 2018 in their infosec budget for $6.4b All 2019 compared to 2018 (402 deals) Israel On average, they indicated 22%
Slide 7: 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 8: Cybersecurity: Major Israeli Exits 2015-2020
$1.1B $2.1B $1.9B CYBERSECURITY: MA JOR ISRAELI EXITS 2015-2020 $560M $410M $430M $380M $225M $120M $40M $100M $60M 8
Slide 9: Building Cyber & Enterprise Software Value in Venture Capital Investments
BUILDING CYBER & ENTERPRISE SOFTWARE VALUE IN Growth catalyst in the next decade VENTURE CAPITAL INVESTMENTS $54m invested $35m exit Holdings Building a seed portfolio 5 years proceeds based on 15 companies last financing round: 2 exits (3.25 multiple) $93m >15 external follow-on $570m rounds aggreg
Slide 10: Cyber/Enterprise Software Value Creation: 2015-2019
CYBER/ENTERPRISE SOFTWARE VALUE CREATION: 2015-2019 in $M EXIT PROVEN CAPABILITIES IN BUILDING VALUE FROM SEED STAGE EXIT $68.4m $16.3m $19.1m Total funds 2012 2013 2014 2015 2016 2017 2018 2019 2020 raised 10
Slide 11: Cyber & Enterprise Software – Growth Catalyst in the Next Decade
Exit Exit CYBER & ENTERPRISE SOFTWARE – GROWTH CATALYST IN THE NEXT DECADE New Round Seed Round A Round B Round C (last yr) 11
Slide 12: Top Headlines on Our Cyber/Enterprise Software Companies
TOP HEADLINES ON OUR CYBER/ ENTERPRISE SOFTWARE COMPANIES 12
Slide 13: Investment & Strategic Partners
Europe Israel North America East Asia INVESTMENT & STRATEGIC PARTNERS 13
Slide 14: Our Mature Cyber/Enterprise Software Companies
OUR MATURE CYBER/ ENTERPRISE SOFTWARE COMPANIES
Slide 15: OpenLegacy: From Legacy System to Application in Record Speed
PARTNERS: FROM LEGACY SYSTEM TO APPLICATION IN RECORD SPEED $8.2M Raised $10m internal round, Team of 100 employees, in followed by $20m strategic round 8 locations worldwide (US, OUR led by SBI Holdings Latin America, Hong Kong, INVESTMENT Total investment of $68m ($8m by Japan, Europe, Israel) us)
Slide 16: Ironscales
IRONSCALES ESTABLISHED: 2014 FIRST INVESTMENT: 2015 TOTAL INVESTMENT: $16.3M 2019 IRONSCALES milestones MAIN PARTNERS: $2.9M K1 Investment Management Garnered a Raised a $15m Surpassed OUR INVESTMENT total of 6 Series B led by 1,000 awards returning customers investor K1 worldwide VISION: To protect
Slide 17: Sixgill
SIXGILL ESTABLISHED: 2014 FIRST INVESTMENT: 2016 TOTAL INVESTMENT: $19.1M 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 18: Value-Building Events in Pivotal Companies
VALUE-BUILDING EVENTS IN PIVOTAL COMPANIES
Slide 19: CartiHeal: Cartilage & Bone Regeneration in Joints Such as the Knee
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 patient enr
Slide 20: BrainsGate: 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 current treatment for stroke is very limited. ESTABLISHED: 2000 In Mar. 2018 the company completed the largest Based on the clinical $31M stroke trial ever do
Slide 21: ~$225M Invested in Companies
~$225M Holdings in companies 1 Book value at Our holdings based on valuation of last Dec. 31, 2019 ($m) INVESTED IN financing round 2 ($m) COMPANIES, Medical: BrainsGate (27%) 4.0 ~$35M CartiHeal (27%) LIQUIDITY 0.8 Pocared (55%) 7.9 10.6 BALANCE, Other medical companies 10.0 18.4 ~$55 MARKET Total
Slide 22: Exits at a Value of $1.5B
EXITS AT A VALUE OF $1.5B Our share in proceeds $570M 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 23: Summary
~$270M 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 SUCCESSFUL SHIFT TO SUMMARY in recent years SOFTWARE/CYBER INVESTMENTS MEDICAL DEVICE INVES
Slide 24: Thank You
THANK YOU. elron.com
Slide 25: Our Cyber/Enterprise Software Companies
OPENLEGACY ALCIDE OUR CYBER/ ENTERPRISE SOFTWARE Automated API integration 29% Devops to production COMPANIES platform that speeds digital by RDC Kubernetes security 28% transformation Our investment: platform Our investment: $8.2m $6.4m SIXGILL SECUREDTOUCH IRONSCALES CYNERIO Cyber Behavioral Autom
Slide 26: Our Medical Device Companies
CARTIHEAL BRAINSGATE POCARED Implant for Electrical Rapid and cartilage and stimulation- automated 71% OUR bone 29% based 30% microbiology by Elron & RDC regeneration treatment laboratory MEDICAL in load- for ischemic system DEVICE bearing Our investment: $18.4m stroke Our investment: $31m Our inves