“Earlier this week, Jon [Medved] made good on his word by coming to Dallas and Houston to share not only the story about the opportunity to invest in the best of Israel’s startup economy through his firm’s OurCrowd equity-based crowdfunding platform, but also share in news that one of the companies he brought with him would soon be announcing the opening of a U.S. office in Houston.”
OurCrowd invites you to a behind-the-scenes look at a startup we are currently investing in.
Join us for an exclusive private tour of the company’s HQ and R&D facilities in Yavne.
The tour will include the company’s R&D lab and production floor, a live demonstration of its digital cutting and creasing machine, and a peek into the restricted materials and laser labs.
Participants will also have the opportunity to meet senior management and founders, view their presentation and participate in a Q&A session.
Wednesday, December 18th, 2013
Light refreshments will be served
For further details and registration, click here.
Space is limited to accredited investors only. If you would like to participate, please visit OurCrowd and, if you meet the criteria, click “Join” to register as an accredited investor.
About the Company:
OurCrowd’s lastest investment takes digital printing to the next level. The company manufactures a machine that is revolutionizing the packaging industry by bringing it into the digital age. Their converting solution for the Direct-to-Pack Folding Carton sector is the first production digital cutting and creasing machine. The company’s technology means faster and cheaper turnaround of projects, new market applications, shorter run lengths and reduced carbon footprint.
OurCrowd is the world’s leading equity crowdfunding company, based in Israel and led by Israeli entrepreneur and venture capitalist Jon Medved. OurCrowd has raised nearly $27 million for more than 30 companies from accredited investors in 19 countries. Read our recent press coverage in The Wall Street Journal, Forbes, Bloomberg Businessweek, and NoCamels.
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For questions, contact Danna Hochstein Mann at firstname.lastname@example.org or +972-2-636-9330.
We hope to see you on December 18th!
On his recent visit to Hong Kong, OurCrowd CEO Jonathan Medved was interviewed by Rishaad Salamat on Bloomberg Television’s “On The Move Asia.”
In the interview Jon discusses the rise of crowdfunding and investing in the Israeli startup sector. In addition, he talks about the booming trade and investment between Israel and Asia.
View the video below or play it on Bloomberg TV here.
OurCrowd founder and CEO Jonathan Medved discusses the rise of crowdfunding and investing in the Israeli startup sector. He speaks with Rishaad Salamat on Bloomberg Television’s “On The Move Asia.”
Raising money for your startup can be a challenging experience for any entrepreneur, but especially as a newbie. Not because pitching is difficult and not because VCs are hard to impress. The challenge lies in the nuances of hearing and understanding what a venture capitalist says. As is the case in every industry, there’s a certain level of jargon used in the venture capital world that can make you feel like you’re reliving the Tower of Babylon. Navigating the complicated world of money can be a mess of confusing terminology.
In a recent article, Forbes put together 10 terms you need to learn before raising venture capital. Read our abridged definitions for the terms below and study them well!
Put your money where your mouth is
- Pre-money vs. Post-money Valuation: Valuation is the monetary value of your company. Pre-money valuation refers to a company’s total value before new money is invested. Post-money valuation refers to a company’s total value after new money is invested. In other words: Post-money valuation = pre-money valuation + new funding.
- Convertible Debt: Convertible debt (also called convertible notes) is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value. Convertible debt allows startups to raise money while delaying valuation until the company is more mature.
- Uncapped Notes vs. Capped Notes: These terms relate to convertible debt and valuations. When entrepreneurs and investors agree to a capped round, this means that they place a ceiling on the valuation at which investors’ notes convert to equity. An uncapped round means that the investors get no guarantee of how much equity their money purchases.
- Preferred Stock: Venture capital firms are issued preferred stock, rather than common stock in a company. Preferred stock comes with certain rights attached. The upside: generally has dividends payed out to its owners before common stock and has priority in a liquidation event. The downside: usually does not have voting rights.
- Liquidation Preferences: Liquidation happens when a business goes bankrupt. It’s assets are sold and the money is distributed to the credit holders and then to the shareholders. Liquidation preferences determine who gets paid what and when during these events.
- Participating Preferred Vs. Non-Participating Preferred: If a company realizes a successful exit, and common stock holders are left with equity worth 4x what preferred stock owners paid per share at the time of their investment, preferred stock owners can still exercise their liquidation preference to get their money back. But if everyone else is making four times that money, it makes more sense to convert those preferred shares into common stock to enjoy the 4x gains. For non-participating stockholders, this is where it ends. Participating preferred stock, however, allows venture investors to essentially double dip in the company’s gains. Participating stockholders get to exercise both their liquidation preference and enjoy a pro-rata share of common stock gains simultaneously.
- Pro-rata Rights: Pro-rata is Latin for “in proportion.” Pro-rata rights refer to the right of investors to participate in later funding rounds so they can maintain the amount of equity they own in a company. Pro-rata rights obligate the company to leave space in subsequent funding rounds so investors can avoid dilution.
- Option Pool: Option pool is a term for shares of stock reserved for employees. The size of the option pool, as determined during a round of funding, has a direct impact on the company’s valuation and ownership. This is because the option pool is often included in the pre-money valuation of a company. Employees who get into the startup early will usually receive a greater percentage of the option pool than future hires.
- Board Control: Companies are ultimately responsible to their shareholders and to their board. So even if you manage to maintain a controlling stake of the company after a financing round, if you suddenly take on three outside board members you have effectively lost control of the company. Slip up and your board can now fire you at will.
- Vesting: A vesting schedule is imposed on employees who receive equity, and determines when they can access that equity. A typical vesting schedule takes four years and involves a one year cliff. The cliff means that none of the employee’s shares vest for at least one year. After that year, typically a quarter of the employee’s equity is released, and the rest vests on a monthly or quarterly basis.
Still confused? We’re here to help
For more detailed information on the ins and outs of investing, check out some of our previous blog posts covering these issues:
If you have any great examples or stories for the terms above, please share them with us in the comments section below!
Meet OurCrowd across the US in December at a series of roadshow events and speaking engagements featuring founder and CEO Jon Medved and the latest additions to OurCrowd’s portfolio companies, Highcon, Surgical Theater, and Abe’s Market.
Be sure to RSVP on the links below. Space is limited!
About Surgical Theater, Highcon and Abe’s Market:
Surgical Theater has developed software that combines the science of flight simulation with advanced CT/MRI imaging technology to allow surgeons to perform a 3D “flight simulation” of surgery before and during the actual operation. Its Surgery Rehearsal Platform (SRP) is uniquely positioned as the only commercial, patented and FDA cleared platform for cerebral and spine pre-surgery rehearsal on the market.
Abe’s Market is a fast growing e-commerce company focused on the explosive health, wellness, natural, and organic products market. It leverages its growing network of sellers and buyers to bring in new fans and drive growth in a vast market. They focus on quality, hand-test products and developing relationships with their customers.
Highcon is a company that takes 3-D packaging to the next level, led by the Godfather of Israel’s printing industry Benny Landa. Highcon manufactures the Euclid, a machine that is revolutionizing the packaging industry by bringing it into the digital age. Highcon’s converting solution for the Direct-to-Pack Folding Carton sector is the first production digital cutting and creasing machine. Highcon’s technology means faster and cheaper turnaround of projects, new market applications, shorter run lengths and reduced carbon footprint.
Wednesday, Dec. 4th – Boston, MA
What: Harvard Business School Association Presents Crowdfunding II featuring Zack Miller
Where: HBS: Soldiers Field Rd, Boston, MA 02163, Aldrich 111
When: Wednesday, December 4 from 5:30-8:00 pm
Monday, Dec. 9th – Los Angeles, CA
What: Faith to Green Event: Start up Nation v2.0 featuring Jonathan Medved
Where: Home in Santa Monica/Century Park West (exact address given in RSVP confirmation)
When: Monday Dec 9 from 8-9:30 am
Monday, Dec. 9th – Los Angeles, CA
What: Cross Campus Presents: Inside Startup Nation: Trends in Startup Investing
When: Monday December 9 from 7-9 pm
Where Cross Campus: 820 Broadway Santa Monica CA 90401
Tuesday, Dec. 10th – Dallas, TX
What Start up nation v2.0- How crowdfunding facilitates global investment in Israeli innovation Featuring Jonathan Medved
Where: Yavneh Academy – 12324 Merit Dr, Dallas, TX 75251
When: Tuesday December 10 from 5:30-7:30 pm
Wednesday, Dec. 11th – Houston, TX
What: Start up nation v2.0 featuring Jonathan Medved and OurCrowd companies Highcon and Surgical Theater
Where: 777 S. Post Oak Lane, One Riverway, Suite 1700, Houston, TX 77056
When: Wednesday December 11 from 8:30-10:00 am
Wednesday, Dec. 11th – Atlanta, GA
What: Crowdfunding: Changing the Investment Scene featuring Jonathan Medved and OuCrowd Companies Highcon and Surgical Theater
Where: Alston & Bird law firm at 1201 West Peachtree Street NW Atlanta, GA 30309
When: Thursday December 11 from 5:00-7:00 pm
Thursday, Dec. 12th – San Jose, CA
What: 21st Century Online Finance: Crowd Funding, Crowd Investing & P2P Lending Featuring OurCrowd Investor Dean Radetsky
Where 2161 N 1st Street (Near San Jose Airport off 101) San Jose, CA
When: Thursday, December 12 from 5:00 to 10:00 pm
Friday, Dec. 13th – Miami, Florida
What: Start up nation v2.0: Investor Lunch Featuring Jonathan Medved and OurCrowd Companies Highcon and Surgical Theater
Where: 333 SE 2nd Avenue Suite 4400 Miami, FL 33131
When: Friday December 13, 12:00-1:30 pm
Sunday, Dec. 15th – Miami, FL
What: Miami Israel Bonds Brunch – Aventura Turnberry Brunch featuring Jonathan Medved
Where: Aventura Turnberry Jewish Centre 20400 NE 30th Av, Florida
When: Sunday, December 15 at 10:30 AM
Monday, Dec. 16th – Boston, MA
What: Inside the World of Israeli Innovation featuring Jonathan Medved
Chabad of Chestnut Hill: 163 Bellingham Rd, Chestnut Hill, MA 02467
When: Monday December 16 at 7:30 pm
Tuesday, Dec. 17th – New York, NY
What: New York Crowdfinance Conference 2013 featuring Jonathan Medved
Where: Thomson Reuters Conference Center 3 Times Square, 30th Floor
When: Tuesday, December 17 at 7:30 am
We’re celebrating Hanukkah in Israel right now, a time for latke eating, dreidel spinning and candle lighting festivities. There is a lot to celebrate (and be thankful for — Thanksgivukkah FTW!) in startup land this year.
Last year OurCrowd took the opportunity to highlighted some of the tech trends seen in the Startup Nation in a series of blog posts 8 Israeli Tech Trends for 8 Crazy Nights. Since 2013 turned out to be such a successful year, we thought it would be a good time to look back at last years trends and see how far they’ve come and what we have to look forward to in the future.
So, Happy Hanukkah and enjoy!
8 Israeli tech trends for 8 crazy nights
Trend 1: Social Driving
Interestingly, many of the most popular driving apps have been developed in Israel. The solutions tend to cluster around overlaying social with driving data to aid navigation and parking. Check out the trend here.
Trend 2: The Quantified Self
This trend reflects how the tie-in between hardware and the smartphone is getting tighter and tighter. People are getting more comfortable logging their day’s activities, examining them, and in certain cases (like dieting and exercise), sharing them with others. By correctly logging our lives, we can begin to hack our behaviors.
Trend 3: Security, physical and virtual
When it comes to national security, the Internet is perceived as both a weapon and a threat. Due to its own experience, Israel has become a leader in security- both physical and digital – and is uniquely positioned for cyber challenges. For this reason big tech firms keep looking to Israel for their next acquisition. Check out the trend here.
Trend 4: Water
This trend reflects Israel’s strengthening reputation as a cutting-edge leader in water solutions. Water is a big issue in Israel and will continue to require innovative solutions. Israel is really strong at developing technologies that solve a home-grown problem. This technology, in turn, gets exported to the rest of the world.
Trend 5: NFC
There is a technology standard called Near Field Communication (NFC) that quickly allows for two-way communication between endpoints by bringing them in close contact to one another. NFC is becoming standard in handsets now and looks poised to change the way we communicate with each other, engage branded content, and transact. Check out the NFC trend here.
Trend 6: Small Business Automation
Small businesses have small marketing budgets, so they can’t afford full-service agency marketing support. This trend surveys various software solutions that automate the marketing process — from design to implementation — so businesses can scale greater and faster than ever before.
Trend 7: Social Video
The internet has made us into creators, and has let the world express themselves in ways that people could never even dream about years ago. This trend reviewed solutions that enabled users to easily create, publish, and share video content through social media and the internet as a whole.
Trend 8: Payments
This trend reflects how payments are moving away from traditional point-of-purchase and onto mobile devices, into the cloud, and within software. The technology and transactional ecosystem have to migrate from hardware to software (or at least a mix of the two).
Hanukkah 2013: Year in review
2013 has turned out to be an amazing year for the Startup Nation with several huge acquisitions and record-breaking funding raised for Israeli startups. Of last year’s trends, the ones of particular note are social driving apps and cyber-security startups.
The social driving trend saw a lot of high-profile attention this year, the most prominent example being Waze courted by giant tech companies such as Facebook and Google, eventually getting acquired by the latter for almost $1B. With social solutions to the driving problem, people are becoming more and more accustomed to sharing their location information. We’re seeing and hearing a lot about Israeli apps, startups and alternative vehicles revolutionizing the way we travel.
Internet security has experienced a similar surge in popularity. The Israeli startup scene has seen a lot of activity in the security field lately (i.e. IBM’s recent acquisition of security startup Trusteer, Cisco opening a tech incubator for cyberdefense startups, etc). Tech giants love acquiring Israeli startups, and that will be the case for years to come, especially in the security sector. The government, VC’s and angel investors are now more than ever investing in and promoting the cyber security market in Israel.
But, why are investors excited about cyber security startups? Ron Moritz, one of OurCrowd’s mentors, gave a keynote address at OWASP Israel at the IDC (400+ attendees) about investing in startup cyber security companies, addressing the recent surge in the market’s popularity among investors and highlights which products and services for the cyber security market are hot right now. View his presentation here.
OurCrowd’s portfolio company Argo (ReWalk) was featured on CNN’s “Erin Burnett OutFront”. Erin Burnett spoke with a ReWalk customer who shared his story and how the device changed his life. She also interviewed ReWalk inventor Amit Goffer on how the idea for robotic trousers came about.
The CNN piece notes that “it is nothing short of amazing” that Argo’s ReWalk exoskeleton enables to walk again.
Argo (ReWalk) raised $1,280,000 from OurCrowd investors in June 2013.
View the video below or play it on CNN here.