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Jon Medved Opening Remarks

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OurCrowd update delivered at the OurCrowd Summit January 2016

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Page 1: Jon Medved Opening Remarks

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Page 2: Jon Medved Opening Remarks

3000Attendees

50Multinationals

50Countries represented

100Visiting journalists

70Portfolio co’s present

120Individual meetings

Page 3: Jon Medved Opening Remarks

Where have we come from?

Last year Today

$80M invested $200M invested

6,000 accredited members 11,000 accredited members

90 countries 110 countries

#22 Fintech Innovator List #10 Fintech Innovator List

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Where have we come from?

Last year Today

55 portfolio co’s 93 portfolio co’s

$5.6M record raise $14.8M record raise

1 exit 4 exits

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Portfolio growth

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Portfolio recognition“10 Hot Startups in Tel Aviv”

“49 Leading Pioneering Companies” Worldwide

100 top Fintech leaders

12 impossible ideas Israelis turned into reality

50 Best Fintech Innovators

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Sizing the opportunity

2011 2012 2013 2014 $-

$2.0

$4.0

$6.0

$8.0

$10.0

$1.5

$2.7

$5.1

$10.0

Crowdfunding has exploded to $10B in 2014, nearly doubling every year; 78% 8-yr CAGR

The World Bank October 2015 estimates global crowdfunding to grow to $95B by 2025

Bankcard Loans

Home Equity Loans

Consumer Finance Loans

Retail Loans

Venture Capital

Angel Invetors

Other Loans $(100)

$100

$300

$500

$700

$900

$1,100

$1,300

$666

$140 7268 33 24

166

Goldman Sachs “Socialization of Finance” report: VC & Angel crowdfunding is a $57B opportunity of the $1.2T overall addressable crowdfunding market

Source: H Terry, D Schwartz, T Sun “The Future of Finance Part 3: The Socialization of Finance,” Goldman Sachs. March 13, 2015

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KPMG Report

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Market shiftBloombergIPOs Get Bigger but Leave Less for Public InvestorsJuly 24, 2014

Initial public offerings used to offer investors chances to get in on the ground floor of young, fast-growing companies… These days IPO investors are more likely to get in somewhere around the sixth floor, when companies are well beyond infancy and maybe approaching middle age.

“Microsoft went out at under $1 billion.

Facebook went out at $80 billion.

Small investors are disadvantaged because by the time companies go public, their boom days are over.

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Market shift100%

75%

25%

0%

50%

Apple(1980)

Microsoft(1986)

Oracle(1986)

Amazon(1997)

Google(2004)

Salesforce(2004)

LinkedIn(2011)

Yelp(2012)

Facebook(2012)

Twitter(2013)

Private value creation

Public value creation

AAPL market capitalization rose from $1.8B to $600B+

LNKD market capitalization rose from

~$8B to $22B+

The lesson: almost all the returns are private. Get into private companies… or else

Source: Capital IQCompiled and visualized by @BenedictEvans

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Our corp dev strategy is working

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Our product team is in high gearWelcoming 12 new developers to our teamA sneak preview is coming up…

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2015: a good year in Israel

BloombergIsrael VC-backed exits break 10-year record2015 Israeli high-tech exits up 16 percent from 2014 proceeds; VC-backed exits reach $4.98B

GlobesIsraeli VC 2015 fund raising up to $1.5B18 venture capital funds closed capital in 2015, and 4 funds raised more than $100 million each, IVC-KPMG reports

Israel21C2015 was red-hot year for Israeli tech sceneEnd-of-year exit reports show rise in investments in a dazzling market

2015 Exits: $9.02B

Microsoft spends over $1B on five acquisitions

Marquee exits:Welcoming some newcomers to Israel:

$810M, Mellanox

$600M, Merck

$510M, XIO

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Chinese-Israel relations growing

The Wall Street JournalChina’s Search for Tech Investments Leads them to IsraelThey are joining American, European and Russian investors who have been shuttling in and out of Israel for years—many of whom have taken advantage of the country’s high-tech workforce to set up research and development beachheads.

Chinese investment in Israeli tech climbed 54% in 2015

Chinese investors visiting Haifa, Nov 2015

'10'11'12'13'14

Chinese visitors to Israel

0 10,000 20,000 30,000

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Tech returns in contextStarting up in a market downturnSome thoughts…Early stage capital is in it for the long-term. Venture investors are thinking on a decade-long horizon. Every one of the 34 major market corrections since the 50s has been wiped clean well within the 10-year time frame, while IPO windows come and go more frequently.

Incumbents are vulnerable. Now is when your best-funded competition is at its weakest, generally speaking. For B2B startups, now is when big companies are looking to cut costs and can take a chance on your newer, less expensive solution.

Smart, good people are looking for work. This is nearly always your #1 challenge as a founder. Go take advantage of it!

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2016’s Impact Focus

2016 will be a pivotal year for OurCrowd’s

impact-oriented investment strategy

and the growth of our impact portfolio

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