Private and Confidential October 2013

The Global Leader in Equity Crowdfunding

Jon Medved

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Private and Confidential October 2013

1. Israel: The Original Start-up Nation

2. Market Disruption: Crowdsourcing to raise funds

3. About OurCrowd

4. OurCrowd’s Portfolio and Performance

5. Investing on OurCrowd

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Agenda

Private and Confidential October 2013

1) IsraelThe Original Start-Up Nation

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Israeli Tech InvestmentContinuous and Unrelenting

0

100

200

300

400

500

600

700

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13

Israeli VC Share Other Investors Source: IVC 2013

$M

Israeli hi-tech capital raising

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Why Israel?

16.4

0.5

21.1

1.92.7

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3.52.7 2.6

1.2

55.6

63

25

60

5862

79

93

8884

73

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63

50

0

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100

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

M&A of Israeli firms Volume # Deals

# De

als$

(b

illio

ns)

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Why Israel?

0

20

40

60

80

100

120

2008 2009 2010 2011 2012

$ (

mill

ion

s)

Average price per M&A Average M&A size

increasing…“Recently, we are seeing Israeli companies grow, and become world leaders in their areas. We are seeing companies with revenues of over $100 million. We did not see these in the past. They were being sold much earlier, often pre-revenue.”

Rubi SulimanPwC High-Tech Partner

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Why Israel?

Between 2005 and 2012, these

companies all bought at least one

Israeli start-up.

Private and Confidential October 2013

Investments in Israeli companies from Israeli and non-Israeli angel investors are exploding …

Source: IVC VC Report 2012

Israeli dealflow grows too…

2011: $376M.

2012: $550M.

2011: 545 deals2012: 575 deals

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Israel’s Tech Sector: as Strong as Ever

“Despite a decrease in capital raising… foreign VCs … and private investors are

gradually increasing their activity.”– Koby Simana (IVC) in

“High-tech firms raise $1.92B in 2012”, 12 Feb 2013

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Culture is Key

“In the 1970s the tech communities of Silicon Valley and the area around MIT …were similar in size. But by the 1990s Silicon Valley was dominant.

The accepted explanation for the difference … is the open and collaborative culture of the Valley. This same culture is what is driving growth in … Israel.

[This can be fostered by] celebrating entrepreneurship and encouraging the broader community

to participate encouraging entrepreneurs to try again and again… and again recycling knowledge and capital back into the community”

Source: AVCAL and The Economist (2012) “What next for the Start-up Nation”)Quote: PwC The Startup Economy: How to support tech startups and accelerate Australian innovation (April 2013)

VC per capital (2010 US$)

Private and Confidential October 2013

2) Market DisruptionCrowdsourcing to Raise Funds

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Private and Confidential October 2013

Crowdfunding portals will raise $3 billion in

2013 - Double the amount raised in 2011

• Consumer Lending

• Rewards-based

• Donations

• Venture Capital

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Market Disruption: Crowdsourcing in Finance

Source: Deloitte TMT Predictions 2013 “Let's get together: crowdfunding portals bring in the bucks”

“Venture capital-type crowdfunding is the wild

card for 2013. It could raise more than a billion

dollars …”

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“The Crowdfunding Economy is About to Pop”

24 September 2013

Private and Confidential October 2013

Company Notable Investors Amount Year

Atlas Venture, Google Ventures,

Kleiner Perkins Caufield & Byers,

Draper Fisher Jurvetson

$24 M

($150 M valuation)2013

Google Ventures, Union Square

Ventures, MaveronSeries A: $7.5 M 2013

Index Ventures, Union Square Series B: $16 M 2012

Andreessen Horowitz, Intel Capital,

General Catalyst Partners Seed: $6M 2012

Google, Foundation Capital$125 M Secondary

($1.6 B valuation)2013

Index Ventures, Union Square

Ventures$12M 2013

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Recent Investments in Crowdfunding Platforms

Private and Confidential October 2013

3) OurCrowdWho We Are and What We Do

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Private and Confidential October 2013

Global leader in equity crowdfunding

Raised $24M in over 31 rounds for 28 companies

9 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

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OurCrowd Overview

Private and Confidential October 2013

Angel Investing Venture Capital

OurCrowd offers the professionalism and experience of a venture fund, plus the flexibility and choice of angel investing.

Investors’ traditional dilemma

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Private and Confidential October 2013

• Infinitely scalable• Accessibility to a wide range of

investors• Frictionless – easy and simple

investing• The promise of deal automation

CrowdfundingPromises

• Do startups need / want to manage thousands of $100 investors?

• Potentially suspect deal quality• No post-deal management or

support to companies• Emerging regulatory situation

Pitfalls

BUT

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We’ve Cracked the Crowdfunding Code

Private and Confidential October 2013

Angel Investing Venture Capital

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We’ve also Solved the Investors’ Dilemma

• Legal issues/termsheets handled by firm• Exposure to top dealflow• Professional due diligence• Preemptive/other rights

• Independence, self-selection• Low fees• No large upfront commitment• Relative speed and ease

• Large Commitment• Hefty management fees• Carried interest fees• No control, no choice

• Very limited dealflow• Term sheet negotiations• Limited due diligence capabilities• No protection, no rights

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Investing with OurCrowd

Accredit online

Browse offerings

Review diligence

Invest

Track your holdings

Crowdbuilding

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Private and Confidential October 2013

OurCrowd’s Milestones as Start-Up

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

2012 2013

Company Founded

OurCrowd.com Launched

“The 5 Most Important New Companies You Need to Know”Fireblade: $1.7M round

First follow-on financing

First US companyfunded - now $1M+

$10m

1,000+ accredited investors

$20+m

1,750 accredited investors

“…to blow up the exclusivity around tech fundraising.”

325+ unique commitments

Follow-on #2Follow-on #4

Private and Confidential October 2013

• As of September 23rd, general solicitation is permitted in the US, but investment participation continues to be limited to accredited investors

• OurCrowd is now marketing deals in the US without hands tied behind our backs

• All offerings now according to Section 506(c)

• Opens new potential:

– Deals are the best marketing tool for exciting potential investors and converting leads… open solicitation supercharges efficacy of event and deal outreach in the USA, our biggest market

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The next milestone: public solicitation in the US

Private and Confidential October 2013

Elan ZivotofskyGeneral Partner Investments- 15yrs experience in Israeli investing- Managing Partner at Prelude Israel- Former Head of Technology Banking, Lehman Brothers Israel- Top-ranked Israeli tech research analyst for Goldman Sachs

Steven BlumgartCo-Founder / Chairman- Co-director of Glencore's aluminum division- Senior executive, management committee at Glencore

1998-2012

Pini LozowickGeneral Partner / Vice Chairman- General Partner at Alta Berkeley- Among first employees at Broadcom, Dir. Marketing- Chairman of Provigent; Founder and GM of Verisense- 5 exits = total value $3B

OurCrowd’s Leadership Team

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Supported by a full-time team of over 25 industry experienced executives and investment professionals in Israel and the United States

Geoff Levy AOAdvisory Committee- Extensive experience in law, banking and investing- Non-Executive Chairman of Monash Private Capital, Specialty

Fashion Group and Cromwell Property Group- Non-Executive Deputy Chairman of Investec Bank (Australia)

Limited

Jon MedvedCo-Founder / CEO- Co-director of Glencore's aluminum division- Senior executive, management committee at Glencore

1998-201

Private and Confidential October 2013

Criteria

Profile• Seasoned entrepreneurs• Experience with board seats

Role• active role in diligence• pre-funding review of companies

Role in companies• directors in OurCrowd companies• also availability for consultation

Relationship• biannual mentor-company event started June 27

Some recently joined mentors

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Mentor Program

Eli Campo- GM Israel @ LivePerson (NASDAQ LPSN)- SVP @ Shopping.com/Ebay Israel

Dov Rubin- Co-founder of NDS (sold to Cisco, $5B)- CEO Itamar Medical

Ron Moritz- GM @Microsoft- SVP CTO @Symantec- SVP Chief Security Strategist @CA

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6 Key Investment Criteria

Great Team

Addressable Market

Simple Value

PropositionValue

Sponsorship

Traction

1. Great team: Successful startups are founded by great people.

We pay special attention to successful serial entrepreneurs.

2. Market: The startup must address huge market growing like a weed.

No arcane ideas addressing niche markets.

3. Easy to understand: a simple value proposition.

Easily understood by us AND by “our crowd”.

4. Traction: Investing in early stage companies, but not just ideas or pre-prototype.

Early product, users, customers, partners & revenues

5. Sponsorship: Investing in startups/building early stage companies is a team sport.

Board, advisors, smart investors

6. We seek “deals” and are value-sensitive.

Private and Confidential October 2013

4) OurCrowdPortfolio and Performance

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Start-ups Sucessfully Funded by OurCrowd

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Examples of Backing Serial Entrepreneurs

Zvi Schrieber

Founded TradeUM($500M exit), Unicorn (acquired by IBM), G.ho.st

Bob Rosenschein

Founded Answers.com($127M exit), Accent Software ($400M on NASDAQ)

Dr. Amit Goffer

Founded Odin Medical Technologies (acquired by Medtronic)

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Examples of Backing Serial Entrepreneurs (continued)

Eitan Bauchand Avi Yehuda

Collectively sold startups to Intel, F5, Salesforce.com

Jeff Pulver and Jacob Ner-David

VoIP pioneer, founded Vonage, VOX, FWD, investor in Twitter and Foursquare

Founded Delta Three ($1.8B NASDAQ), founded Nomadiq

Richard Demb

Founded GC Zone, Popcorn Indiana brand

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Customers

Distributors

Partners

Other markets

Press contacts

Next round funding, venture debt, loans, equity

Not just capital – we’re creating opportunities

“Capital is important, but the most important thing for a company like Lucid Energy is customers. OurCrowd has delivered on both. Not only have they exceeded our financing objectives, their network has introduced me to potential customers in China, Brazil, Italy and South Africa.”Gregg SemlerCEO, Lucid Energy

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Co-investing with leading investor groups

* Investor opting for anonymity

Private and Confidential October 2013

5) OurCrowd’s Growth

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Press Coverage in 2013

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

investment of the week goes to OurCrowd”WSJ | Feb 8th

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

“How do you invest in Israel without a lot of money? Try crowdfunding venture capitalists.”

IBT | March 22nd

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

Private and Confidential October 2013

Summary

Meeting a demand for a better online way to invest in startups

Platform works—Raised record sums for 28 companies online

Industry-leading performance to date – worldwide leadership

Recruited industry-leading team

Strong and impressive initial portfolio

Have provided real value-add for our startups

Achieving strong traction in a gigantic market

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