1. It is all about the people, stupid! It is not about money and technology… Laurie Olivier October 8, 2009

2. PROUDLY SOUTH AFRICAN

3. A SUCCESSFUL START-UP …

4. ENTREPRENEURS MAKE THE WORLD GO ROUND ….

5. THE WORLD IS FLAT …

6. GLOBAL/SOCIAL COLLABORATION …

7. WHAT A PLACE!!

8. MANY ATTEMPTS TO CLONE SILICON VALLEY

9. GRADUAL EVOLUTION OF SILICON VALLEY HP founders Dave Packard & Bill Hewlett in front of their famous garage in Palo Alto, CA Steve Jobs in front of his garage, where he made the first Apple computer.

10. OPPORTUNITY TO LEAPFROG OLDER TECH CYCLES

11. SOME SUCCESSFUL OWN VERSIONS OF SILICON VALLEY … IT CAN BE DONE! Route 128, MA Hsinchu, TaiwanZhongguancun, Beijing Bangalore, India Israel

12. THE SILICON VALLEY COMMUNITY = SUCCESS RECIPE Academia & R&D = Technology & Manpower Government Support & Regulatory Environment VC’s = Funding & Networks Entrepreneurs & Culture of risk taking Local Networking & Social Community CLOSE PROXIMITY CROSS FERTILISATION SUCCESS STORIES CRITICAL MASS REQUIRED RELATIONSHIPS CONVERGING SOCIAL CIRCLES 1 23 4 5

13. ISRAELI SUCCES STORY: VC FUNDING = “SILVER BULLET” 1992 2002  1 VC ($24M) – Veritas/Athena  Success in R&D - Failure in marketing  No M&As  Few IPO’S  Lack of international involvement  300 Start-ups  60 VC’s (>$10B)  $17B M&A deals  >100 IPO’S  #3 in Nasdaq  Cisco, IBM, Intel, MSFT & ROW VC’s  3000 Start-ups Israeli Govt invest $8M in 10 VC funds VC partners with 5 yr option to buy out Govt YOZMA

14. ‘SECRET SAUCE” FOR ISRAELI SUCCESS Deal Flow/ Technology Technology Track Proven Track Record Success Favorable Regulatory Environment & Govt Support International Orientation VC CRITICAL MASS 2 ND TIME ENTREPRE NEURS NB!

15. TRADITIONAL SA TECHNOLOGY INTERNATIONALISATION MODEL Most common SA VC model today First proof tech on local market Then overseas clients/partners Company end-up with SA identity Disadvantages: Lower entry barriers = Competition other regions Less global market input during R&D phase Late start (behind international competition) with development of international relationships Difficult to exit on international markets

16. ISRAELI TRANSATLANTIC GLOBAL TECH START-UP MODEL CAN WORK FOR SA Proof tech on global (US) market Global (US) marketing presence on Day 1 Evolution of global management team Company has a global (US) identity Company prepares for global (US) exit from Day 1 Advantages: Focus on leading global technologies Global strategic market input from concept to exit Early development of global relationships Global (US)identity & track record (req. for US exit)

17. GOVERNMENT INVOLVEMENT IS ESSENTIAL: MAIN R&D SUPPORT PROGRAMS IN ISRAEL

18. WE HAVE THE ENTREPRENEURIAL CULTURE “Can do “ mentality Pioneering Ethos Informality is a way of life Questions authority/status quo Can be stubborn and some don’t listen well Not patient, and do not stand in line Aggressiveness is not in short supply Boot strap mentality Make due with less Learn quickly from mistakes Believe in miracles

19. OUT OF THE BOX THINKING.. MOBILE HEATER

20. CREATIVE RISK TAKING IS ESSENTIAL.. Creative risk taking is essential to success in any goal where the stakes are high. Thoughtless risks are destructive, of course, but perhaps even more wasteful is thoughtless caution which prompts inaction and promotes failure to seize opportunity.

21. YOU CAN MAKE IT HAPPEN!!!

22. LET’S MAKE IT HAPPEN!!! THANK YOU