Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Investor Presentation (March 2021)
32 slides from Elron Ventures's investor presentation, March 2021
Slide 1: Elron - Investor Presentation March 2021
ELRON - INVESTOR PRESENTATION March 2021
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: Building Value in Venture Capital Investments
BUILDING VALUE IN VENTURE CAPITAL INVESTMENTS 1960s Defense Elbit 1970s Medical Imaging 11 exits totaling $1.6b since Long-standing strategic Elscint 2010, including proceeds of partnership with Rafael, $590m for Elron and RDC providing our startups with tech 1980s assets & knowhow Semiconductors Or
Slide 5: Teamwork
TEAMWORK An experienced team which led 11 exits, dozens of investments, and follow-on financings totaling hundreds of millions of $s over the last decade YARON ELAD NIV LEVY ZOHAR ROZENBERG ZVIKA SLOVIN CEO CFO Head of Cyber Head of Medtech Vast experience in tech Broad experience in Col. Ret. Heade
Slide 6: Cyber / IT Portfolio Development and Value Pipeline
GROWING OUR CYBER / IT PORTFOLIO 2020 2021 Accelerate growth in Robust products with strong Exit Alcide acquired by Rapid7 mature companies market demand 3 major external uprounds OpenLegacy | IRONSCALES Boost value of 2nd Market validation set to in our mature companies | Sixgill generation compani
Slide 7: 2021: Year of Investments
2021: YEAR OF Book value at Our holdings based on INVESTMENTS Holdings in companies 1 valuation of last Dec. 31, 2020 ($m) financing round 2 ($m) Over $50m cash on Medical: hand (incl. RDC) for new and follow-on BrainsGate (25%) 1.1 40.7 investments CartiHeal (25%) 1.3 50.3 * Other medical companies
Slide 8: Investing in Cybersecurity
Investing in Cybersecurity Cybersecurity Cybersecurity M&As Funding Time to exit $20b x4.9 0-7 years $10.7b $2.7b in 109 rounds (4th highest all-time) 45.6% of companies (all-time high) (97% YOY) Total M&A Median exit volume in 2020 multiple in 2020 0-10 years Total VC investments Funding raised by
Slide 9: Building Value in Cyber & Enterprise Software
BUILDING VALUE CYBER & ENTERPRISE SOFTWARE IN VENTURE Value Creation CAPITAL INVESTMENTS Building a seed portfolio 8 years 16 companies $134m value created 3.5 exits (2.8x multiple) $82m: our 17 external follow-on rounds holdings based $63m on last round invested in cyber & $52m: exit enterprise pro
Slide 10: RDC: Validation Platform for Deep-Tech Oriented Investments in Early Stages
RDC: VALIDATION PLATFORM FOR DEEP-TECH ORIENTED INVESTMENTS IN EARLY STAGES KOBI KATZ Chief Information Officer RDC: ELRON & RAFAEL’S JOINT INVESTMENT VENTURE RAFAEL FOR INITIATING & DEVELOPING NEW CO’s 25 years’ experience in system engineering, software Vast experience in technological projects; d
Slide 11: Cyber/Enterprise Software Value Creation
CYBER/ENTERPRISE SOFTWARE VALUE CREATION in $M EXIT PROVEN CAPABILITIES IN BUILDING VALUE FROM SEED STAGE PARTIAL EXIT EXIT EXIT 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 11
Slide 12: Cyber & Enterprise Software – Growth Catalyst in the Next Decade
Exit Exit Exit CYBER & ENTERPRISE SOFTWARE – GROWTH CATALYST IN THE NEXT DECADE Seed Round A Round B Round C 12
Slide 13: Top Headlines on Our Cyber/Enterprise Software Companies
Rapid7 is paying $50 million for Alcide, in which Elron Electronic Industries holds 24%. TOP HEADLINES ON OUR CYBER/ ENTERPRISE SOFTWARE COMPANIES 13
Slide 14: Our Mature Cyber/Enterprise Software Companies
OUR MATURE CYBER/ ENTERPRISE SOFTWARE COMPANIES
Slide 15: OpenLegacy
OPENLEGACY ESTABLISHED: 2013 FROM LEGACY SYSTEM TO APPLICATION IN RECORD SPEED FIRST INVESTMENT: 2014 Key Clients Partners TOTAL INVESTMENT: $68M $8.2M OUR MAIN PARTNERS: INVESTMENT Commerzbank, OG Tech, SBI Group, Cardif, Silverhorn, Prytek, Leumi Partners Raised $10m internal round, 23% followed b
Slide 16: IRONSCALES
IRONSCALES ESTABLISHED: 2014 FIRST INVESTMENT: 2015 TOTAL INVESTMENT: $22.4M IRONSCALES 2020 milestones MAIN PARTNERS: $1.4M K1 Investment Management, Garnered a Increased Surpassed 1,000 THE BALANCE OF Jump Capital total of 7 ARR by customers OUR INVESTMENT awards in 72% worldwide VISION: To protec
Slide 17: Sixgill
SIXGILL ESTABLISHED: 2014 FIRST INVESTMENT: 2016 2020 GROWTH TOTAL INVESTMENT: $20.1M The number of The number of Between 2019 and clients doubled with employees MAIN PARTNERS: 2020 Sixgill doubled a focus on Global worldwide doubled $6M Sonae IM, REV Venture its YoY revenue 5000 clients, MSP & with
Slide 18: Our 2nd Generation Cyber/Enterprise Software Companies
OUR 2ND GENERATION CYBER/ ENTERPRISE SOFTWARE COMPANIES
Slide 19: SecuredTouch
SECUREDTOUCH ESTABLISHED: 2015 FIRST INVESTMENT: 2016 Market-product fit validated TOTAL INVESTMENT: $12.9M 2020 4X increase in revenue MAIN PARTNERS: Global Village $5M Advisory, Upwest Labs, Arvato OUR INVESTMENT Financial Solutions VISION: To ensure early detection of account fraud, before a tran
Slide 20: ZenGo
ZENGO ESTABLISHED: 2018 Everything you need in a crypto wallet Faster setup, easier backups and recoveries, and FIRST INVESTMENT: 2018 unparalleled security TOTAL INVESTMENT: $7.8M ZENGO 2020 HIGHLIGHTS MAIN PARTNERS: Benson Oak $1.3M Ventures, SamsungNEXT OUR INVESTMENT Acquired Product global laun
Slide 21: Value-Building Events in Pivotal Companies
VALUE-BUILDING EVENTS IN PIVOTAL COMPANIES
Slide 22: 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. ESTABLISHED: 2009 $18.4M >500 patients were Stopped p
Slide 23: CartiHeal-Bioventus Transaction: Highlights
CARTIHEAL-BIOVENTUS TRANSACTION: HIGHLIGHTS On July 16, 2020 Elron announced the signing of definitive agreements for an investment in CartiHeal Announcement and an option to acquire CartiHeal by Bioventus LLC for $350M-$500M Transaction • A $15-20M investment in CartiHeal at a pre-money value of $1
Slide 24: Timeline
TIMELINE Statistical report of Investment final trial results PMA by Bioventus Expected: End of submission $100M in 7/2020 2021 to FDA FDA approval revenues Bioventus exercises break- CartiHeal CartiHeal up right Sellers CartiHeal Elron’s Sellers Elron’s $30M payment to share: share: CartiHeal PUT $
Slide 25: Electrical Stimulation-Based Treatment for Ischemic Stroke (BrainsGate)
ELECTRICAL STIMULATION-BASED TREATMENT FOR ISCHEMIC STROKE The annual number of new ischemic strokes in the USA is approximately 700,000. The ESTABLISHED: current treatment for stroke is very limited. 2000 Clinical Studies: Over In Dec. 2020 the Based on the clinical $31M FIRST company secured trial
Slide 26: Pivotal Clinical Trial
PIVOTAL CLINICAL TRIAL May 24, 2019 “The cumulative evidence indicates that, for patients with confirmed cortical ischemia 8-24h after onset, SPG stimulation reduces post-stroke disability over the entire outcome range and increases the proportion of patients alive and independent 3 months after str
Slide 27: Exits at a Value of $1.6B
EXITS AT A VALUE OF $1.6B Our share in proceeds $590M 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 Sold to SYSTEMS Sold to ALVARION RAPID7 CORP VOLCANO ZOLL May June Sept. Nov. Nov. Feb. Sept. Oct. July
Slide 28: Summary
~$283M 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 11 EXITS A ROBUST PORTFOLIO of cyber and SUMMARY in the last decade enterprise software companies IN
Slide 29: Thank You.
THANK YOU. elron.com
Slide 30: Our Cybersecurity Companies
SIXGILL IRONSCALES SECUREDTOUCH Cyber Automated Behavioral intelligence phishing biometrics- 23% 13% 28% platform that prevention, by RDC based user by RDC automatically & detection & The balance of our authentication covertly analyzes Our investment: response investment: for mobile apps Our investm
Slide 31: Our Software Companies
OPENLEGACY OZCODE Automated Debugging- OUR API 23% as-a-Service 46% integration (DaaS) that SOFTWARE platform that by RDC cuts by RDC COMPANIES speeds digital debugging transforma- Our investment: time to Our investment: tion $8.2m minutes $4.5m ONEVIEW AUDIOBURST AI-based AI-powered platform for au
Slide 32: Our Medical Device Companies
NOTAL CARTIHEAL BRAINSGATE VISION Implant for Electrical Remote cartilage and stimulation- monitoring of OUR bone 27% based 28% patients with 12% regeneration treatment age-related MEDICAL in load- for ischemic macular DEVICE bearing Our investment: stroke Our investment: degeneration Our investment