Israel Venture Capital The Israeli Case

June 2006 IVA Overview The IVA is the organization representing the Israeli venture capital community. Venture Capital is a major source of financing for start-up and early stage technology companies. Israeli VCs have played a major role in making Israel an important global source of innovation.

June Israel’s High Tech Ecosystem Ingredients for Innovation:

June Multi Nationals with R&D Centers in Israel (Partial List) Alcatel Analog Devices AMCC Avaya BMC Software Boston Scientific Broadcom Computer Associates CEVA Cisco Conexant Freescale Semiconductor GE Medical Systems HP (including HP Labs) IBM Infineon Intel Interpharm KLA-Tencor Kollmorgen Servotronix Marvell Semiconductor Microsoft Motorola National Semiconductor Oracle Pfizer Phillips QUALCOMM Samsung SAP Siemens Silicon Graphics Sun Microsystems SunGard Texas Instruments Veritas Software

June Foreign VCs Investing in Israel Accel Partners Advent International Alice Ventures Alta Berkeley Amadeus Capital Ampersand Venture Management Apax Partners BancBoston Ventures Battery Ventures Benchmark Capital Bertelsmann Ventures Bessemer Venture Partners Boston Capital Ventures Global Catalyst Partners Greylock Partners HarbourVest Partners Hummer Winblad Venture Partners JAFCO Kodiak Venture Partners Lightspeed Venture Partners Menlo Ventures Mercator Ventures Meritech Capital Partners Merlin Biosciences Merrill Lynch Venture Capital Mission Ventures MPM Capital 133 Foreign VC Funds Invested in more than one company in Israel from (Partial List) Cont.

June Capital Raised By Israeli VCs Source: IVC research center

June Capital Raised By Israeli Companies $1.62 billion

June Israeli High Tech Companies Newly Established, by Sector In 2004, more companies were established in life sciences than in any other industry for 4th consecutive year Source: IVC online database

June Capital Raised by High Tech Companies, Israel & US ($M) Source: Israel – IVC Research Center, US – Venture One

June Capital Raised by High Tech Companies, Israel & Europe ($M) Source: Israel – IVC Research Center, Europe – Venture One

June Cont. M&A Transactions ( ) Total Number of Deals ,306 4,267 16, ,273 1,189 1,834 2,475 31,112 Total Volume ($M)Year Total

June Selected Hi Tech M&A 2005 Foreign Acquirers Acquirer HP Cisco System Broadcom McKesson eBay Juniper Networks Alcatel Intel Kodak Cadence Design UGS Israeli Company Scitex Vision Sheer Networks Siliquent Technologies Medcon Telemedicine Shopping.com Kagoor Networks Native Networks Oplus Technologies Orex Verisity Technomatix Industry Printing Technology Communications Medical Devices Internet Communications Enterprise Software Value of Acquisition

June Selected Hi Tech M&A 2005 Israeli Acquirers Israeli Acquirer Teva Comverse Amdocs Checkpoint Amdocs Retalix M-Systems Nice Foreign Acquirer Ivax CSG (GSS Division) DST Innovis Sourcefire Longshine TCI Solutions IDS Microelectronica Espanola Fast Video Security Dictaphone Industry Pharmaceutical Communications Enterprise Software Communications Enterprise Software Communications Value of Acquisition

June Selected Hi Tech M&A 2006 Foreign Acquirers (Partial List) Acquirer PMC- Sierra Johnson & Johnson EMC Stryker BMC Microsoft Dentsply TA associates Epix CA Microsoft Israeli Company Passave ColBar Kashya Sightline Identify Gteko Uri-Dent Alma Lasers Predix Xosoft Whale Industry Communications Life Science Enterprise Software Medical Devices Enterprise Software Medical Devices Pharmaceutical Enterprise Software Value of Acquisition

June Selected Hi Tech M&A 2006 Foreign Acquirers (Partial List) Acquirer Lucent Francisco partners LSI Logic Zerox Solutions 180 Fitserv AMS EMC Pricer EMC Unity Israeli Company Mobilitec Ex Libris Storage XMPies HotBar InsureWork MedImpulse nLayers Eldat ProActivity Celletra Industry Communications Enterprise Software Communications Enterprise Software Internet Enterprise Software Medical Devices Enterprise Software Communications Enterprise Software Communications Value of Acquisition

June Potential Co-operation Human Capital Large Markets for Israeli Products Capital for Israeli VC’s R&D and Innovative infrastructure Experienced VC Industry

June Спасибо за внимание