Nava Swersky Sofer Istanbul 13 October 2017 1 Nava Swersky Sofer Adv 2 International expert on entrepreneurship innovation amp commercialization with over 25 years experience living amp working on three continents ID: 794902
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Slide1
Innovation, Israeli Style
Nava Swersky SoferIstanbul, 13 October, 2017
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Slide2Nava Swersky Sofer, Adv.
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International expert on entrepreneurship, innovation & commercialization with over 25 years’ experience living & working on three continents
Sought-after public speaker and visiting professor US, Europe, Asia
Board of Directors, Israel Military Industries (IMI Systems –
Taas
)
Selected public boards – INSME (Rome), KEN (Brussels), ICA (Toronto)
Boards of Governors
Ruppin
Academic Center & Tel Aviv-Jaffa Academic College
Mentor IBM Alpha Zone, Israel Air Force; Nanjing Microsoft; Spark, Thailand
Founding Managing
Director,
IDCBeyond
, leading entrepreneurship
programme
Former President & CEO,
Yissum
– Hebrew University Technology Transfer
Founder & Chair,
NanoIsrael
Venture Capital
Partner, Concord Ventures
Founder & Managing Director, Columbine Ventures
Partner, Sanderling Ventures (Silicon Valley)
Vice President, Novartis (Switzerland & US)
Selected exits: X Technologies (sold to Guidant),
Optonol
(sold to Alcon),
Dynavax
(NASDQ: DVAX),
Novagali
(floated on Euronext, then sold to Santen),
BioCancell
&
Proteologics
(TASE),
Aderis
Pharma (sold to Schwarz Pharma / UCB)
Slide3Israel: The Start-Up Nation
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Nava Swersky Sofer
Translated into >20 languages
Slide44
Source:
The Economist / GE
Lookahead
, Dec 2014
Nava Swersky Sofer
Slide5Israel Inside
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Slide6Israel: An Innovation Powerhouse
Source: IMD World Competitiveness Report, World Economic Forum Competitiveness
Report
Nava Swersky Sofer
Slide7R&D Expenditure as Percentage of GDP
Source: OECD Main Science & Technology Indicators 2016/02, published 24.3.17
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Nava Swersky Sofer
Slide880% of R&D Funding from Private Sector
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80% of total R&D investment comes from private sector
20% from government and public sources
Source: Getz, D. and others .(2013).
Measures for science, technology and innovation in Israel: Comparative infrastructure
data
.
Haifa: Shmuel Ne`eman
Institute
Nava Swersky Sofer
Slide9Only 15% Government Funded
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42% of Israeli R&D funding
financed
by foreign
entities
39
%
financed by
local private sector
15
%
financed by the Israeli
government
Source: Getz, D. and others .(2013).
Measures for science, technology and innovation in Israel: Comparative infrastructure
data
.
Haifa: Shmuel Ne`eman
Institute
Nava Swersky Sofer
Slide102016: $10 Billion in Exits
93
M&A deals, 8 buyouts and 3 IPOs
$10 Billion in exit proceeds,
incl
$4.4 B
Playtika
deal
12
% up from
2015
Average
exit multiple 4.34x, 5% higher than 2015
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Source: IVC-Meitar 2016 Exit Report
Slide112016 Israeli Hi-Tech Exit Highlights
$10B in exit proceeds in 2016 including the Playtika deal The average exit in 2016 reached $46.3M* – 21% below the $58.4M**
five year average VC-backed average exits multiple in 2016 was higher than five-year average
Semiconductors
led all exits with $1.34B***
Buyouts
and M&A deals maintained a constant share over the past five years
27
% of M&A deals involved Israeli high-tech companies on both the acquiring and acquired sides
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Nava Swersky Sofer
Source:
IVC-
Meitar 2016 Exit Report
Slide12A Good Balance of Sectors
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Source:
IVC-
Meitar
2016 Exit Report
Nava Swersky Sofer
Slide13Top 5 Deals in 5 Years: Some Diversity
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Source:
IVC-
Meitar
2016 Exit Report
Nava Swersky Sofer
Slide14VC: No.1 Per Capita, No.2 Absolute
US $69.1 Billion
Population: 320 million= $215 / person
Israel
$4.8 Billion
Population: 8.5 million
=$565 / person
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Source:
NVCA 2016 Report; IVC-
Meitar
2016 Report
Slide152016: A Record $4.8 Billion Invested In 659 Companies
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Source:
IVC-ZAG 2016 VC Report
11%
above
2015’s
previous record
Average deal size grows to $7.2m, 19% above 5 year average
VC-backed
deals
account for 56% of total
Trend continues in Q1/17 with $1.025B raised in 155 deals
Nava Swersky Sofer
Slide16Trend Continues in H1/17 with $2.3B Raised in 312 Deals
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Slide172017: Israeli Tech Comes of Age
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Slide18But: Local Technology, Foreign Capital
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Foreign Investors (%)
Israeli VCs (%)
Note: Most investors in Israeli VCs are foreign
Source:
IVC Research Center, August 2015
Investments in Israeli Hi-Tech (US$ Billions)
Nava Swersky Sofer
Slide19300 Multinational R&D Centres
Employing 50,000 People
Nava Swersky Sofer
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Slide20World pioneer in tech transfer since 1959
Two of world’s top tech transfer companies
Yeda, Weizmann Institute of Science ( est.1959)
Yissum, Hebrew University of Jerusalem (est.1964)
>$22 Billion in licensed product sales per annum
>$500 Million in tech transfer revenues annually
Hundreds of spin-off companies
Many success stories
Copaxone
®, Exelon™,
Erbitux
®,
Azilect™, Doxil™, Rebif®, Cherry tomatoes, peppers, NDS Ltd. encryption algorithm, MobilEye driver assistance system…
Successful Academic Commercialization
Source:
ITTN, Israeli Central Bureau of Statistics Aug 2014
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Slide21The Israeli Tech Transfer Model
Company, not office
Wholly-owned subsidiary with business focus & operational independenceProfessional team with relevant industry experience
Business leaders on boards
Balance academic viewpoint
Clear IP ownership…
… with generous revenue sharing (40-60%)
One-stop-shop for industry – leverage relationship
Licensing
R&D collaborations
Sponsored research
Sometimes consulting
Focused on royalties
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Slide22Smart Government Intervention
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Office of the Chief Scientist (now Innovation Authority) supporting private sector innovation since 1969
Strategic decision to create military R&D capabilities
Venture industry
created by government =>
privatised
Incubators
: from job creation scheme to pillar of national innovation eco-system
Innovative
industry/academia
support mechanismsEvolving policies addressing market needs
Early stage fundingMultinationalsStrategic initiatives, e.g. nanotechnologyNava Swersky Sofer
Slide23Some Innovation Authority Programmes
Academia/industry technology transfer
Proof of concept grants for early stage project, academia-based (100% funding)
Proof of principle grants for academia-based projects with initial industry interest (90% funding, 10% from industry for first look)
Tech transfer grants for academia/industry collaborations between one academic institution and one industry partner (66% funding, 34% industry)
Consotria
encompassing several academic institution and several companies
Initial IP protection
Early stage company formation
R&D support for both young and mature companies in the form of
grants, repayable as royalties in
the
case of successCollaborative agreements with multinationals providing matching funding
for projects with local companies and academic institutionsBi-national & European collaborations (
Matimop, ISERD)Special initiatives, e.g. military technologies for civilian use
Nava Swersky Sofer
Slide24Hardship Breeds Innovation
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Small
New
Isolated
No natural resources, not even water
Immigration – from 600k to 8 million in 65 years
Interdisciplinary
No strong traditions => Open to change
Strong military => training, innovative technology
International outlook
Brain power, education => innovation
Novel job creation schemes
Nava Swersky Sofer
Slide25This Is Israel; These Are Israelis
https://www.youtube.com/watch?v=y__KnW3aK0E#action=share
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Slide26The Innovation Recipe
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Slide27Infrastructure
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Education
Innovative research
Smart funding
Management
Facilitiess
IP system
Infra- structure
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Slide28Environment
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Regulation
Market access
Tax credits
Institutional investment
Environ-
ment
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Slide29Culture
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Breaking old habits
Encouraging entrepreneurship
Learning to embrace failure. It’s part of the package
Culture
Nava Swersky Sofer
Slide30Thank you for your attention
nava@swersky.com
@NavaSwerskySofe
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Nava Swersky Sofer