Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Investor Presentation (May 2023)
28 slides from Elron Ventures's investor presentation, May 2023
Slide 1: Elron Ventures - Investor Presentation
ELRON VENTURES - INVESTOR PRESENTATION May 2023
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 $1.8b Investment platform 1970s since 2010, of which based on value circles: strategic design partners, Medical Imaging Elron Ventures share is Elscint advisory board, approximately $660m experienced founder network,
Slide 5: CartiHeal Shares Reverted to Sellers
CARTIHEAL SHARES REVERTED TO SELLERS Bioventus Agreement and its Cancellation CartiHeal’s shareholders are considering options regarding their 2020 continued holding in CartiHeal, including its sale Our holding in CartiHeal when the investment & option agreement with Bioventus was signed CartiHeal’s
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 ELIK ETZION KOBI KATZ ZOHAR CEO & Managing Managing Partner Venture Partner ROZENBERG Partner Lt. Col. Ret. Previously Former CIO @RAFAEL; 25 Venture Partne
Slide 7: Value Circles
VALUE Advisory Board CIRCLES CYBERFUTURE (CISO CLUB) 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 Consulting Chief Global Data, CISO at Chime in ELRONISTS Insights and
Slide 8: CyberFuture – CISO Investment Alliance Powered by Elron
CYBERFUTURE – CISO INVESTMENT ALLIANCE POWERED BY ELRON CyberFuture, powered by Elron Ventures, is an exclusive global group of CISO’s and cybersecurity leaders from the world’s leading organizations across various industries seeking to invest and support promising cybersecurity early-stage startups
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: 9 year B2B software/cyber portfolio construction
LONG-STANDING TRACK RECORD OF BUILDING NEW PORTFOLIOS AND SCALING INVESTMENTS 9 year B2B software/cyber portfolio construction $228m* value created 6 25 EXITS COMPANIES $90m* $90m 28 EXTERNAL invested EXIT FOLLOW-ON PROCEEDS FINANCINGS 10 *Excluding investments in new ventures during the last 24 mon
Slide 11: Cybersecurity / B2B Software: From Seed to Exit
CYBERSECURITY / B2B SOFTWARE: FROM SEED TO EXIT Sold to PALO ALTO NETWORKS Sold to Sold to MICROSOFT Sold to RAPID7 Sold to INTUIT Sold to PING IDENTITY ZSCALER July Apr. Feb. June Dec. Feb. 2017 2018 2021 2021 2021 2023 11
Slide 12: Portfolio Buildup – Growth Catalyst in the Next Few Years
PORTFOLIO BUILDUP – GROWTH CATALYST IN THE NEXT FEW YEARS Seed Round A Round B Round C 12
Slide 13: Portfolio Buildup – Cybersecurity
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 protection vs. security) a
Slide 14: Portfolio Buildup – B2B Software
PORTFOLIO BUILDUP B2B SOFTWARE 32% SAFE 2 co-founders, strong tech & business background (IDF unit 81 Highly experienced second–time co-founders. alumni). Optimization of software engineering & team The large and growing ecommerce segment still lacks the collaboration is a huge unmet need. necessary
Slide 15: Holdings based on valuation of last financing round
Our holdings based on valuation of last financing round was determined based on the “Post-Money” valuation of our Portfolio Companies as follows: • Cyber/Software Holdings – Mature Portfolio- based on financing rounds most of which took place until the beginning of 2022. • Cyber/Software Holdings –
Slide 16: Our Mature Cybersecurity / B2B Software Companies
OUR MATURE CYBERSECURITY / B2B SOFTWARE COMPANIES 5/21/2023 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 platform enables any enterprise to become virtually cloud native, by automatically exposing legacy applications and data as INVESTORS digital services, deploying on-prem, private or public cloud. OpenLegacy’s platform provides 10x faster API creation (from 6 months to a few d
Slide 20: 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 21: 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 22: MedTech Portfolio
MEDTECH PORTFOLIO Strategy MIX OF EARLY-STAGE AND MATURE COMPANIES • Our exit strategy is to realize our MedTech assets by creating M&A CartiHeal Notal Vision Nitinotes Coramaze BrainsGate opportunities following FDA approval Biodegradable Early AMD detection Robotic bariatric Trans-catheter Neurost
Slide 23: Opportunity Summary
STRONG FINANCIAL POSITION • We have adequate cash resources on hand for follow-on and new investments • Our mature portfolio companies will require minimal follow-on financing in 2023 • Assets Under Management (AUM) ~$300M VALUE DRIVERS • CartiHeal has the resources to continue its go-to-market work
Slide 24: Thank You
= Elron am. Ventures elron.com
Slide 25: 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 26: Our Software Companies
OUR SOFTWARE COMPANIES OPENLEGACY KEEPY AUDIOBURST Automated API Behavioral AI-powered integration 22% analytics to 32% audio search 10% platform that by RDC optimize by RDC platform that speeds digital Our software Our discovers Our transformation investment: engineering investment: content that is
Slide 27: Our Medical Device Companies
NOTAL CARTIHEAL CORAMAZE VISION Biodegradable Remote Transcatheter OUR regenerative knee implant 30% monitoring of patients with 9% tricuspid valve repair 23% MEDICAL Our age-related Our system Our DEVICE For further details investment: macular investment: investment: see slide 5 above $18.4m degene
Slide 28: Our First Drone Tech Company
OUR FIRST DRONE TECH COMPANY WONDER ROBOTICS 2D & 3D computer vision 27% for safe & by RDC autonomous landing on Our unprepared & investment: unmarked sites $2m Team with a strong track record in the domain & strong technology expertise Technology validated by Rafael Potential to be a market enabler