November 2013

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Equity Crowdfunding and the Role of Strategic Corporate Partnerships

David StarkJanuary 2014

November 2013

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Global leader in equity crowdfunding Raised $30M in over 38 rounds for 30 companies in 2013 10 deals over $1M First follow-on deal funded in 4 hours High-quality, continually improving pipeline of new deals Experienced investment team - 150 years combined VC experience Portfolio companies doing very well Starting to expand our business beyond the Israel base of our business

OurCrowd Overview

November 2013

“Crowdfunding for real investors”• Curated site—deals and investors• Select 1-2% of deals we are pitched• We always Co-invest with crowd• Accredited investors only• Managed investments via SPV• Good for companies (one check), Good for investors (protections, rights)• Truly International (investors from 19 countries)• Focus on Follow-on rounds bearing fruit• Mentors program is unique• Taking Board seats in 65-70% of companies• “Crowdbuilding” resonates and works

November 2013

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Press Coverage in 2013

“The 5 Most Important New Companies You Need to Know”Forbes Online | April 2nd

“An Israeli company trying to change the way startups are funded”CNN Business 360 | April 30th

“Medved's latest mission is to blow up the exclusivity around tech fundraising”Bloomberg BusinessWeek | August 1st

"The most interesting investment of the week goes to OurCrowd”WSJ | Feb 8th

“The platform has been an enormous success…the ultimate win-win-win situation, brought to you by an new and improved Israel – innovative & confident.”

“Crowdfunding for real investors”thestreet.com | November

November 2013

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Investing with OurCrowd

Accredit online

Browse offerings

Review diligence

Invest

Track your holdings

Crowdbuilding

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3

4

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November 2013

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Announcing Strategic Co-Investment Agreement with General Electric Ventures

Sue Siegel, GE Ventures CEO :“OurCrowd has created a unique platform for dynamic early stage origination and funding. They offer a quality investment environment and the partnership will give GE increased access to early innovation.”

• GE will co-invest with OurCrowd in select early stage companies in the areas of energy, healthcare, software and advanced manufacturing

• Investing on the same terms as our members/investors• First time major corporation has made such a commitment

to an equity crowdfunding platform

November 2013

• Strategic partner retains full discretion and control over the money• Our Crowd provides a guaranteed allocation up to xx% of a given deal or

up to $xxxK, whichever is lower• If available, Strategic partner can invest more • Allocation reserved for 10 days or until the deal is 80% funded • Advanced notice of deals going up on the site and at least 2 weeks to

make a decision• Decision made at local level (efficiency, flexibility)• No commitment on part of strategic partner to deploy any or all of this

money

Proposed Strategic Partnership

November 2013

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Partnership Workflow

OurCrowd Dealflow (100+

companies/mo.)

Meetings with Management (25-

30/mo.)

Priority Deals (10/mo.)

Deep Due Diligence (5/mo.)

Investment Decision (2-3/mo.)

OC/GE Dealflow Meeting Deep Due Diligence Investment Decision

(3-5/yr.)

OurCrowd

GE Ventures

November 2013

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• Gaining an early window on innovation• Can make small investments with minimum hassle—local and quick

decision making• Gain access to approx 50 deals per year in Israel

– If ~30-50% of dealflow is of interest to a corporate partner, they’ll be choosing from 15-25 deals/year

• Deploying up to 3-5 small investments each year • Providing an easy, frictionless way to invest• Important seat at the table with early stage companies with critical

technologies

Strategic Value for Corporate Partners

November 2013

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• Crowdfunding is emerging as the new 4th leg of the tech funding ecosystem: joining angels, VC, and corporate investors

• Strategics want to “cherry pick” their deals just like individual investors-many are tired of turning it all over to managers

• On the other hand they want curated deal flow to provide a safe environment in which to hunt and choose investments

• Strategics are challenged and attracted by the ability to move earlier and faster in innovation investments

Why Strategic partners on Crowdfunding sites?

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• Huge validation among investors and entrepreneurs• The fact that a strategic is investing at the same price and fees

as the crowd proves that “democratization” works • Shared deal flow• Ability to leverage diligence and domain expertise• Provides attractive added value to portfolio companies • Significant source of capital

The Value that Strategics Bring

November 2013

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OurCrowd’s Initial Competitive Advantage: Israel

Israel’s Competitive Edge1

Country Rank 1st 2nd 3rd 4th

Total Expenditureon R&D Finland Sweden Japan

Flexibility & Adaptability Hong Kong Australia Brazil

Entrepreneurship of Managers Malaysia Colombia Taiwan

Availability of Scientistsand Engineers Japan USA India

VentureCapital Availability USA Hong Kong Taiwan

Info Technology Skills Iceland Denmark Sweden

A highly educated workforce, smart governance, and continued international investment opportunities provides Israel with a serious competitive edge in start-up creation over other developed countries.

Israel Ranks:• 1st in the world in Medical Device patents

per capita• 1st in the world in quality of scientific

research institutions• 3rd in the world for total patents per capita• 3rd most scientific papers per capita in the

world• 2nd in the world in public expenditure on

education

Sources: 1 IMF World Competitiveness Yearbook 2011, , WEF – Global Competitiveness Report 2011

November 2013

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Target of Leading Global Corporations

Between 2005 and 2012, these

companies all bought at least one

Israeli start-up.

November 2013

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Case Study: OurCrowd Invests Alongside Strategic Corporates

Stefan Gabriel, president of 3M New Ventures: “The investment in VocalZoom will help us to complement our existing technology in the field [of voice activation], and to collaboratively develop new products for our OEM customers.”

“We see a great variety of applications in which people may prefer voice as a means to interact with their personal device environment,” said Robert Visser, vice president of research and development of 3M’s Energy and Electronics business group. “VocalZoom’s signal capturing system adds a critical component to 3M’s technology portfolio in user interfaces and acoustics to enable novel solutions for those spaces.”

“Israel is one of the most vibrant technical and entrepreneurial regions in the world and there are plenty of opportunities for 3M. VocalZoom is our very first investment and we look forward to other investments in Israeli high tech startups,” said Nir Leshem, managing director of 3M Israel.

November 2013

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Thank You

November 2013

OurCrowd’s Investment Model

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Accredited Investors

Management

OurCrowd International

(GP)OurCrowd

management company

OurCrowd investment

vehicle

GP

Special Purpose Vehicle

Control

Portfolio CompanyInvestment

Strategic Partners

Advisory