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Getting Investments to your Getting Investments to your Online BusinessOnline Business

Dr. Orit MossinsonDr. Orit Mossinson

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Yes we know...Yes we know...In the first quarter of 2009, ninety three Israeli high-tech companies raised $265 million from venture investors –

both local and foreign. Only a 57% decrease compared to Q1 08...

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2008 M&A activity involving Israeli high-tech companies

that were either acquired or merged totaled $2.64 billion

in 84 deals. Deal number was 85 in 2007 & 88 in 2006 BUTDeal value decreased by 19 percent from that of 2007

and74 percent from that of 2006.

“Off Season Sale”

According to IVC...According to IVC...

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Quite a Dip, ha?

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Seth Godin Described a Seth Godin Described a Dip asDip as

“The long stretch between beginner’s luck and real accomplishment”.

It’s the same obstacle that gives you a competitive advantage over your competitor.

These days, crossing the Dip of convincing investors you are the next idol is one of the ways for leaving your less gutsy competitors behind.

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Why should they invest?Why should they invest?25% of US Adults spent over $500 online last year:25% of US Adults spent over $500 online last year:

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Why should they invest in Why should they invest in Affiliates related Affiliates related

companies?companies?Cause this is the best marketing method for recession timesCause this is the best marketing method for recession times

& investors know it& investors know it

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Cause monetization for a Web2 Cause monetization for a Web2 interface is considered a strategic interface is considered a strategic investment for most VCs portfolios . investment for most VCs portfolios .

Why should they invest in Why should they invest in Affiliates related Affiliates related

companies?companies?

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Why should they invest in Why should they invest in Affiliates related Affiliates related

companies?companies?Jupiter Research demonstrates that in 2008 online Affiliates Jupiter Research demonstrates that in 2008 online Affiliates revenues were over $2.1 Billion , they also predict revenues should revenues were over $2.1 Billion , they also predict revenues should be over $3.3 Billion in 2012. be over $3.3 Billion in 2012.

Marketing Sherpa's research team estimated that, in 2006, affiliates Marketing Sherpa's research team estimated that, in 2006, affiliates worldwide earned over US$6.5 billion in bounty and commissions worldwide earned over US$6.5 billion in bounty and commissions from a variety of sources in retail, personal finance, gaming and from a variety of sources in retail, personal finance, gaming and gambling, travel, telecom, education, publishing, and forms of lead gambling, travel, telecom, education, publishing, and forms of lead generation other than contextual advertising programs such as generation other than contextual advertising programs such as Google AdSense. Google AdSense. E-Consultancy’s estimated those figures were up 45% in 2007.E-Consultancy’s estimated those figures were up 45% in 2007.

11Publishers are looking for a better option and you could Publishers are looking for a better option and you could be it...be it...

Why should they invest in Why should they invest in Affiliates related Affiliates related

companies?companies?Cause Google is a monopoly we should try to break or Cause Google is a monopoly we should try to break or benefit frombenefit from

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So How could you get an investment for your online

business ?

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Tell Them...Tell Them...

-This is a Dip you are about to pass and leave all your competitors behind. You are extremely thankful there is a recession.

-Google had an 18% increase in clicks and most publishers did not see a change in their pay check. You are about to finish the Google Monopoly, unless it buys you first...

-Affiliates are the new economy. Using you they could get monetization for their hopeless Web2 investments.

-You are the answer for Twitter’s lost business model.

Affiliates * Affiliates * Affiliates

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And if it doesn’t work out?

Just write a book, that’s what you guys are usually doing with your free time, right?